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7 LONG TITLE
8 General Description:
9 This bill amends provisions of the Alcoholic Beverage Control Act and provisions
10 related to the Act.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines and amends terms;
14 ▸ amends proximity requirements for certain arena licensees;
15 ▸ amends provisions of the Malted Beverage Act regarding:
16 • labeling and packaging; and
17 • the power of the commission and department to classify flavored malt
18 beverages;
19 ▸ amends the time period in which a retail manager is required to complete a certain
20 training program;
21 ▸ changes the name of the "Department of Alcoholic Beverage Control" to the
22 "Department of Alcoholic Beverage Services";
23 ▸ changes the name of the "Alcoholic Beverage Control Commission" to the
24 "Alcoholic Beverage Services Commission";
25 ▸ changes the name of the "Alcoholic Beverage Control Advisory Board" to the
26 "Alcoholic Beverage Services Advisory Board";
27 ▸ amends provisions related to the late renewal of a license;
28 ▸ amends provisions regarding the liquor control fund;
29 ▸ amends provisions regarding the calculation of manufacturer production for school
30 lunch program markup purposes;
31 ▸ requires a package agency to submit any information the commission or department
32 may require for the renewal of a package agency agreement;
33 ▸ permits a package agency located at a manufacturing facility to, under certain
34 conditions, remain open on a Sunday or on a state or federal holiday;
35 ▸ amends a provision related to the furnishing of alcohol to a minor;
36 ▸ amends the application requirements for a retail license;
37 ▸ amends the requirements for a conditional retail license;
38 ▸ prohibits the commission from including certain sublicenses in the total number of
39 licenses the commission has issued for each type of retail license;
40 ▸ permits various retail licensees to sell beer for off-premise consumption under
41 certain conditions;
42 ▸ makes references to the department's auditing of a retail licensee's records
43 consistent;
44 ▸ amends provisions regarding a retail licensee's ceasing of operations;
45 ▸ permits a management agreement under certain conditions;
46 ▸ prohibits an off-premise beer retailer from:
47 • engaging in or permitting on the licensed premises gambling or fringe gambling;
48 • having certain devices or games on the licensed premises; or
49 • knowingly allowing certain drug-related activities on the licensed premises;
50 ▸ amends provisions regarding the tracking of enforcement actions to remove
51 references to and requirements related to a repealed section of statute;
52 ▸ amends the total number of resort licenses permitted at a time in the state to eight;
53 ▸ permits a hotel licensee or person applying for a hotel license to obtain a spa
54 sublicense;
55 ▸ amends the number of 72-hour single event permits the director may issue in a
56 calendar year to the same person to 24;
57 ▸ amends and renumbers the Transfer of Alcohol License Act; and
58 ▸ makes technical and conforming changes.
59 Money Appropriated in this Bill:
60 None
61 Other Special Clauses:
62 This bill provides a special effective date.
63 Utah Code Sections Affected:
64 AMENDS:
65 32B-1-102, as last amended by Laws of Utah 2021, Chapter 291
66 32B-1-202.1, as enacted by Laws of Utah 2021, Chapter 291
67 32B-1-603, as enacted by Laws of Utah 2010, Chapter 276
68 32B-1-604, as last amended by Laws of Utah 2017, Chapter 455
69 32B-1-605, as last amended by Laws of Utah 2018, Chapter 281
70 32B-1-606, as last amended by Laws of Utah 2018, Chapter 249
71 32B-1-701, as last amended by Laws of Utah 2019, Chapter 12 and renumbered and
72 amended by Laws of Utah 2019, Chapter 403
73 32B-1-704, as renumbered and amended by Laws of Utah 2019, Chapter 403
74 32B-2-101, as enacted by Laws of Utah 2010, Chapter 276
75 32B-2-201, as last amended by Laws of Utah 2020, Chapters 352 and 373
76 32B-2-202, as last amended by Laws of Utah 2020, Chapter 219
77 32B-2-203, as enacted by Laws of Utah 2010, Chapter 276
78 32B-2-205, as last amended by Laws of Utah 2020, Chapter 352
79 32B-2-210, as last amended by Laws of Utah 2018, Chapter 249
80 32B-2-301, as last amended by Laws of Utah 2021, Chapter 424
81 32B-2-304, as last amended by Laws of Utah 2021, Chapter 291
82 32B-2-602, as last amended by Laws of Utah 2011, Chapters 307 and 334
83 32B-2-605, as last amended by Laws of Utah 2021, Chapter 291
84 32B-3-202, as last amended by Laws of Utah 2020, Chapter 219
85 32B-3-205, as last amended by Laws of Utah 2018, Chapters 249 and 329
86 32B-4-403, as last amended by Laws of Utah 2021, Chapter 291
87 32B-4-415, as last amended by Laws of Utah 2020, Chapter 219
88 32B-5-102, as last amended by Laws of Utah 2019, Chapter 403
89 32B-5-201, as last amended by Laws of Utah 2020, Chapter 219
90 32B-5-202, as last amended by Laws of Utah 2021, Chapter 291
91 32B-5-205, as last amended by Laws of Utah 2021, Chapter 291
92 32B-5-304, as last amended by Laws of Utah 2019, Chapter 403
93 32B-5-307, as last amended by Laws of Utah 2021, Chapter 291
94 32B-5-309, as last amended by Laws of Utah 2020, Chapter 219
95 32B-6-205, as last amended by Laws of Utah 2020, Chapter 219
96 32B-6-205.2, as last amended by Laws of Utah 2020, Chapter 219
97 32B-6-205.3, as enacted by Laws of Utah 2017, Chapter 455
98 32B-6-305, as last amended by Laws of Utah 2019, Chapter 403
99 32B-6-305.2, as last amended by Laws of Utah 2019, Chapter 403
100 32B-6-305.3, as enacted by Laws of Utah 2017, Chapter 455
101 32B-6-404.1, as last amended by Laws of Utah 2018, Chapter 249
102 32B-6-605, as last amended by Laws of Utah 2021, Chapter 291
103 32B-6-706, as last amended by Laws of Utah 2017, Chapter 455
104 32B-6-905, as last amended by Laws of Utah 2019, Chapter 403
105 32B-6-905.1, as last amended by Laws of Utah 2019, Chapter 403
106 32B-6-905.2, as last amended by Laws of Utah 2018, Chapter 281
107 32B-6-1005, as enacted by Laws of Utah 2020, Chapter 219
108 32B-7-202, as last amended by Laws of Utah 2019, Chapter 403
109 32B-7-305, as last amended by Laws of Utah 2017, Chapters 163 and 455
110 32B-8-201, as last amended by Laws of Utah 2020, Chapter 219
111 32B-8b-301, as last amended by Laws of Utah 2020, Chapter 219
112 32B-8c-202, as enacted by Laws of Utah 2020, Chapter 219
113 32B-8d-102, as enacted by Laws of Utah 2020, Chapter 219
114 32B-8d-103, as enacted by Laws of Utah 2020, Chapter 219
115 32B-8d-104, as last amended by Laws of Utah 2021, Chapter 291
116 32B-8d-201, as enacted by Laws of Utah 2020, Chapter 219
117 32B-8d-202, as renumbered and amended by Laws of Utah 2020, Chapter 219
118 32B-8d-203, as renumbered and amended by Laws of Utah 2020, Chapter 219
119 32B-8d-204, as renumbered and amended by Laws of Utah 2020, Chapter 219
120 32B-8d-205, as renumbered and amended by Laws of Utah 2020, Chapter 219
121 32B-9-303, as last amended by Laws of Utah 2012, Chapter 365
122 32B-10-206, as last amended by Laws of Utah 2020, Sixth Special Session, Chapter 6
123 32B-11-208, as last amended by Laws of Utah 2020, Chapter 219
124 32B-11-303, as last amended by Laws of Utah 2016, Chapter 266
125 32B-11-403, as last amended by Laws of Utah 2020, Chapter 219
126 32B-11-503, as last amended by Laws of Utah 2019, Chapter 403
127 32B-11-504, as enacted by Laws of Utah 2021, Chapter 291
128 34-52-201, as last amended by Laws of Utah 2019, Chapters 371 and 479
129 53-2a-802, as last amended by Laws of Utah 2021, Chapters 184 and 344
130 53-8-105, as last amended by Laws of Utah 2016, Chapter 245
131 53-10-102, as last amended by Laws of Utah 2019, Chapter 33
132 53-10-305, as last amended by Laws of Utah 2017, Chapter 455
133 53F-9-304, as last amended by Laws of Utah 2020, Chapter 161
134 53G-10-406, as last amended by Laws of Utah 2020, Chapters 161 and 408
135 59-1-403, as last amended by Laws of Utah 2021, Chapters 282, 367, 369, and 382
136 59-15-108, as renumbered and amended by Laws of Utah 1987, Chapter 2
137 62A-1-121, as last amended by Laws of Utah 2021, Chapter 344
138 62A-15-401, as last amended by Laws of Utah 2019, Chapter 403
139 63A-17-502, as last amended by Laws of Utah 2021, Chapter 184 and renumbered and
140 amended by Laws of Utah 2021, Chapter 344
141 63A-17-807, as last amended by Laws of Utah 2021, Chapter 184 and renumbered and
142 amended by Laws of Utah 2021, Chapter 344
143 63B-3-301, as last amended by Laws of Utah 2021, Chapters 280 and 382
144 63B-5-201, as last amended by Laws of Utah 2021, Chapter 280
145 63B-10-301, as last amended by Laws of Utah 2008, Chapter 382
146 63B-11-701, as last amended by Laws of Utah 2008, Chapter 382
147 63B-13-201, as enacted by Laws of Utah 2004, Chapter 364
148 63B-14-201, as enacted by Laws of Utah 2005, Chapter 180
149 63B-15-201, as enacted by Laws of Utah 2006, Chapter 169
150 63B-16-201, as last amended by Laws of Utah 2020, Chapter 152
151 63B-17-201, as last amended by Laws of Utah 2020, Chapter 152
152 63B-18-201, as enacted by Laws of Utah 2009, Chapter 134
153 63B-24-101, as enacted by Laws of Utah 2015, Chapter 281
154 63B-26-101, as enacted by Laws of Utah 2016, Chapter 250
155 63B-27-201, as enacted by Laws of Utah 2017, Chapter 355
156 63B-28-101, as last amended by Laws of Utah 2020, Chapter 301
157 63B-29-101, as enacted by Laws of Utah 2019, Chapter 410
158 63B-31-202, as enacted by Laws of Utah 2021, Chapter 320
159 63G-12-306, as last amended by Laws of Utah 2014, Chapter 189
160 63I-5-201 (Superseded 07/01/22), as last amended by Laws of Utah 2021, Chapter 184
161 63I-5-201 (Effective 07/01/22), as last amended by Laws of Utah 2021, Second Special
162 Session, Chapter 1
163 63J-1-219, as last amended by Laws of Utah 2021, Chapters 184 and 344
164 63J-1-602.2, as last amended by Laws of Utah 2021, Chapters 179, 344, 412, 421, and
165 424
166 67-22-2, as last amended by Laws of Utah 2021, Chapters 64, 184, 344, and 382
167 ENACTS:
168 32B-18-203, Utah Code Annotated 1953
169 32B-18-205, Utah Code Annotated 1953
170 32B-18-301, Utah Code Annotated 1953
171 32B-18-302, Utah Code Annotated 1953
172 32B-18-303, Utah Code Annotated 1953
173 RENUMBERS AND AMENDS:
174 32B-18-101, (Renumbered from 32B-8a-102, as last amended by Laws of Utah 2021,
175 Chapter 291)
176 32B-18-201, (Renumbered from 32B-8a-201, as last amended by Laws of Utah 2021,
177 Chapter 291)
178 32B-18-202, (Renumbered from 32B-8a-202, as last amended by Laws of Utah 2021,
179 Chapter 291)
180 32B-18-204, (Renumbered from 32B-5-310, as last amended by Laws of Utah 2021,
181 Chapter 291)
182 32B-18-206, (Renumbered from 32B-8a-203, as last amended by Laws of Utah 2021,
183 Chapter 291)
184 32B-18-207, (Renumbered from 32B-8a-303, as last amended by Laws of Utah 2021,
185 Chapter 291)
186 32B-18-401, (Renumbered from 32B-8a-501, as last amended by Laws of Utah 2021,
187 Chapter 291)
188 32B-18-402, (Renumbered from 32B-8a-502, as last amended by Laws of Utah 2020,
189 Chapter 219)
190 REPEALS:
191 32B-8a-101, as last amended by Laws of Utah 2020, Chapter 219
192 32B-8a-302, as last amended by Laws of Utah 2021, Chapters 84, 291, and 345
193 32B-12-207, as enacted by Laws of Utah 2021, Chapter 291
194
195 Be it enacted by the Legislature of the state of Utah:
196 Section 1. Section 32B-1-102 is amended to read:
197 32B-1-102. Definitions.
198 As used in this title:
199 (1) "Airport lounge" means a business location:
200 (a) at which an alcoholic product is sold at retail for consumption on the premises; and
201 (b) that is located at an international airport.
202 (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
203 Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
204 (3) "Alcoholic beverage" means the following:
205 (a) beer; or
206 (b) liquor.
207 (4) (a) "Alcoholic product" means a product that:
208 (i) contains at least .5% of alcohol by volume; and
209 (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
210 process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
211 in an amount equal to or greater than .5% of alcohol by volume.
212 (b) "Alcoholic product" includes an alcoholic beverage.
213 (c) "Alcoholic product" does not include any of the following common items that
214 otherwise come within the definition of an alcoholic product:
215 (i) except as provided in Subsection (4)(d), an extract;
216 (ii) vinegar;
217 (iii) preserved nonintoxicating cider;
218 (iv) essence;
219 (v) tincture;
220 (vi) food preparation; or
221 (vii) an over-the-counter medicine.
222 (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
223 when it is used as a flavoring in the manufacturing of an alcoholic product.
224 (5) "Alcohol training and education seminar" means a seminar that is:
225 (a) required by Chapter 1, Part 7, Alcohol Training and Education Act; and
226 (b) described in Section 62A-15-401.
227 (6) "Arena" means an enclosed building:
228 (a) that is managed by:
229 (i) the same person who owns the enclosed building;
230 (ii) a person who has a majority interest in each person who owns or manages a space
231 in the enclosed building; or
232 (iii) a person who has authority to direct or exercise control over the management or
233 policy of each person who owns or manages a space in the enclosed building;
234 (b) that operates as a venue; and
235 (c) that has an occupancy capacity of at least 12,500.
236 (7) "Arena license" means a license issued in accordance with Chapter 5, Retail
237 License Act, and Chapter 8c, Arena License Act.
238 (8) "Banquet" means an event:
239 (a) that is a private event or a privately sponsored event;
240 (b) that is held at one or more designated locations approved by the commission in or
241 on the premises of:
242 (i) a hotel;
243 (ii) a resort facility;
244 (iii) a sports center;
245 (iv) a convention center;
246 (v) a performing arts facility; or
247 (vi) an arena;
248 (c) for which there is a contract:
249 (i) between a person operating a facility listed in Subsection (8)(b) and another person
250 that has common ownership of less than 20% with the person operating the facility; and
251 (ii) under which the person operating a facility listed in Subsection (8)(b) is required to
252 provide an alcoholic product at the event; and
253 (d) at which food and alcoholic products may be sold, offered for sale, or furnished.
254 (9) "Bar structure" means a surface or structure on a licensed premises if on or at any
255 place of the surface or structure an alcoholic product is:
256 (a) stored; or
257 (b) dispensed.
258 (10) (a) "Bar establishment license" means a license issued in accordance with Chapter
259 5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License.
260 (b) "Bar establishment license" includes:
261 (i) a dining club license;
262 (ii) an equity license;
263 (iii) a fraternal license; or
264 (iv) a bar license.
265 (11) "Bar license" means a license issued in accordance with Chapter 5, Retail License
266 Act, and Chapter 6, Part 4, Bar Establishment License.
267 (12) (a) [
268 (i) contains:
269 (A) at least .5% of alcohol by volume[
270 (B) no more than 5% of alcohol by volume or 4% by weight; [
271 (ii) is obtained by fermentation, infusion, or decoction of [
272 (A) malt; or
273 (B) a malt substitute; and
274 (iii) is clearly marketed, labeled, and identified as:
275 (A) beer;
276 (B) ale;
277 (C) porter;
278 (D) stout;
279 (E) lager;
280 (F) a malt;
281 (G) a malted beverage; or
282 (H) seltzer.
283 (b) "Beer" may [
284 (i) hops extract; or
285 (ii) caffeine, if the caffeine is a natural constituent of an added ingredient.
286 [
287 [
288 [
289 [
290 [
291 [
292 [
293 [
294 [
295 [
296 (i) a flavored malt beverage[
297 (ii) a product that contains alcohol derived from:
298 (A) spirituous liquor; or
299 (B) wine; or
300 (iii) a product that contains an additive masking or altering a physiological effect of
301 alcohol, including kratom, kava, cannabidiol, or natural or synthetic tetrahydrocannabinol.
302 (13) "Beer-only restaurant license" means a license issued in accordance with Chapter
303 5, Retail License Act, and Chapter 6, Part 9, Beer-Only Restaurant License.
304 (14) "Beer retailer" means a business that:
305 (a) is engaged, primarily or incidentally, in the retail sale of beer to a patron, whether
306 for consumption on or off the business premises; and
307 (b) is licensed as:
308 (i) an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-Premise Beer
309 Retailer Local Authority; or
310 (ii) an on-premise beer retailer, in accordance with Chapter 5, Retail License Act, and
311 Chapter 6, Part 7, On-Premise Beer Retailer License.
312 (15) "Beer wholesaling license" means a license:
313 (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
314 (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
315 retail licensees or off-premise beer retailers.
316 (16) "Billboard" means a public display used to advertise, including:
317 (a) a light device;
318 (b) a painting;
319 (c) a drawing;
320 (d) a poster;
321 (e) a sign;
322 (f) a signboard; or
323 (g) a scoreboard.
324 (17) "Brewer" means a person engaged in manufacturing:
325 (a) beer;
326 (b) heavy beer; or
327 (c) a flavored malt beverage.
328 (18) "Brewery manufacturing license" means a license issued in accordance with
329 Chapter 11, Part 5, Brewery Manufacturing License.
330 (19) "Certificate of approval" means a certificate of approval obtained from the
331 department under Section 32B-11-201.
332 (20) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
333 a bus company to a group of persons pursuant to a common purpose:
334 (a) under a single contract;
335 (b) at a fixed charge in accordance with the bus company's tariff; and
336 (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
337 motor vehicle, and a driver to travel together to one or more specified destinations.
338 (21) "Church" means a building:
339 (a) set apart for worship;
340 (b) in which religious services are held;
341 (c) with which clergy is associated; and
342 (d) that is tax exempt under the laws of this state.
343 (22) "Commission" means the Alcoholic Beverage [
344 created in Section 32B-2-201.
345 (23) "Commissioner" means a member of the commission.
346 (24) "Community location" means:
347 (a) a public or private school;
348 (b) a church;
349 (c) a public library;
350 (d) a public playground; or
351 (e) a public park.
352 (25) "Community location governing authority" means:
353 (a) the governing body of the community location; or
354 (b) if the commission does not know who is the governing body of a community
355 location, a person who appears to the commission to have been given on behalf of the
356 community location the authority to prohibit an activity at the community location.
357 (26) "Container" means a receptacle that contains an alcoholic product, including:
358 (a) a bottle;
359 (b) a vessel; or
360 (c) a similar item.
361 (27) "Controlled group of [
362 defines by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
363 Rulemaking Act.
364 (28) "Convention center" means a facility that is:
365 (a) in total at least 30,000 square feet; and
366 (b) otherwise defined as a "convention center" by the commission by rule.
367 (29) (a) "Counter" means a surface or structure in a dining area of a licensed premises
368 where seating is provided to a patron for service of food.
369 (b) "Counter" does not include a dispensing structure.
370 (30) "Crime involving moral turpitude" is as defined by the commission by rule.
371 (31) "Department" means the Department of Alcoholic Beverage [
372 created in Section 32B-2-203.
373 (32) "Department compliance officer" means an individual who is:
374 (a) an auditor or inspector; and
375 (b) employed by the department.
376 (33) "Department sample" means liquor that is placed in the possession of the
377 department for testing, analysis, and sampling.
378 (34) "Dining club license" means a license issued in accordance with Chapter 5, Retail
379 License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
380 commission as a dining club license.
381 (35) "Director," unless the context requires otherwise, means the director of the
382 department.
383 (36) "Disciplinary proceeding" means an adjudicative proceeding permitted under this
384 title:
385 (a) against a person subject to administrative action; and
386 (b) that is brought on the basis of a violation of this title.
387 (37) (a) Subject to Subsection (37)(b), "dispense" means:
388 (i) drawing an alcoholic product; and
389 (ii) using the alcoholic product at the location from which it was drawn to mix or
390 prepare an alcoholic product to be furnished to a patron of the retail licensee.
391 (b) The definition of "dispense" in this Subsection (37) applies only to:
392 (i) a full-service restaurant license;
393 (ii) a limited-service restaurant license;
394 (iii) a reception center license;
395 (iv) a beer-only restaurant license;
396 (v) a bar license;
397 (vi) an on-premise beer retailer;
398 (vii) an airport lounge license;
399 (viii) an on-premise banquet license; and
400 (ix) a hospitality amenity license.
401 (38) "Dispensing structure" means a surface or structure on a licensed premises:
402 (a) where an alcoholic product is dispensed; or
403 (b) from which an alcoholic product is served.
404 (39) "Distillery manufacturing license" means a license issued in accordance with
405 Chapter 11, Part 4, Distillery Manufacturing License.
406 (40) "Distressed merchandise" means an alcoholic product in the possession of the
407 department that is saleable, but for some reason is unappealing to the public.
408 (41) "Equity license" means a license issued in accordance with Chapter 5, Retail
409 License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
410 commission as an equity license.
411 (42) "Event permit" means:
412 (a) a single event permit; or
413 (b) a temporary beer event permit.
414 (43) "Exempt license" means a license exempt under Section 32B-1-201 from being
415 considered in determining the total number of retail licenses that the commission may issue at
416 any time.
417 (44) (a) "Flavored malt beverage" means a beverage:
418 (i) that contains at least .5% alcohol by volume;
419 [
420
421
422 [
423
424 (ii) for which the producer is required to file a formula for approval with the federal
425 Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 because the beverage
426 is treated by processing, filtration, or another method of manufacture that is not generally
427 recognized as a traditional process in the production of a beer, ale, porter, stout, lager, or malt
428 liquor; and
429 (iii) for which the producer is required to file a formula for approval with the federal
430 Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 because the beverage
431 includes an ingredient containing alcohol.
432 [
433
434 [
435 (b) "Flavored malt beverage" is considered liquor for purposes of this title.
436 (45) "Fraternal license" means a license issued in accordance with Chapter 5, Retail
437 License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
438 commission as a fraternal license.
439 (46) "Full-service restaurant license" means a license issued in accordance with
440 Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-Service Restaurant License.
441 (47) (a) "Furnish" means by any means to provide with, supply, or give an individual
442 an alcoholic product, by sale or otherwise.
443 (b) "Furnish" includes to:
444 (i) serve;
445 (ii) deliver; or
446 (iii) otherwise make available.
447 (48) "Guest" means an individual who meets the requirements of Subsection
448 32B-6-407(9).
449 (49) "Hard cider" means the same as that term is defined in 26 U.S.C. Sec. 5041.
450 (50) "Health care practitioner" means:
451 (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
452 (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
453 (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
454 (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
455 Act;
456 (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
457 Nurse Practice Act;
458 (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
459 Practice Act;
460 (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
461 Therapy Practice Act;
462 (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
463 (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
464 Professional Practice Act;
465 (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
466 (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
467 Practice Act;
468 (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
469 Hygienist Practice Act; and
470 (m) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
471 Assistant Act.
472 (51) (a) "Heavy beer" means a product that:
473 (i) contains more than 5% alcohol by volume; and
474 (ii) is obtained by fermentation, infusion, or decoction of [
475 (A) malt; or
476 (B) a malt substitute.
477 (b) "Heavy beer" is considered liquor for the purposes of this title.
478 (52) "Hospitality amenity license" means a license issued in accordance with Chapter
479 5, Retail License Act, and Chapter 6, Part 10, Hospitality Amenity License.
480 (53) (a) "Hotel" means a commercial lodging establishment that:
481 (i) offers at least 40 rooms as temporary sleeping accommodations for compensation;
482 (ii) is capable of hosting conventions, conferences, and food and beverage functions
483 under a banquet contract; and
484 (iii) (A) has adequate kitchen or culinary facilities on the premises to provide complete
485 meals;
486 (B) has at least 1,000 square feet of function space consisting of meeting or dining
487 rooms that can be reserved for [
488 least 75 individuals; or
489 (C) if the establishment is located in a small or unincorporated locality, has an
490 appropriate amount of function space consisting of meeting or dining rooms that can be
491 reserved for private use under a banquet contract, as determined by the commission.
492 (b) "Hotel" includes a commercial lodging establishment that:
493 (i) meets the requirements under Subsection (53)(a); and
494 (ii) has one or more privately owned dwelling units.
495 (54) "Hotel license" means a license issued in accordance with Chapter 5, Retail
496 License Act, and Chapter 8b, Hotel License Act.
497 (55) "Identification card" means an identification card issued under Title 53, Chapter 3,
498 Part 8, Identification Card Act.
499 (56) "Industry representative" means an individual who is compensated by salary,
500 commission, or other means for representing and selling an alcoholic product of a
501 manufacturer, supplier, or importer of liquor.
502 (57) "Industry representative sample" means liquor that is placed in the possession of
503 the department for testing, analysis, and sampling by a local industry representative on the
504 premises of the department to educate the local industry representative of the quality and
505 characteristics of the product.
506 (58) "Interdicted person" means a person to whom the sale, offer for sale, or furnishing
507 of an alcoholic product is prohibited by:
508 (a) law; or
509 (b) court order.
510 (59) "International airport" means an airport:
511 (a) with a United States Customs and Border Protection office on the premises of the
512 airport; and
513 (b) at which international flights may enter and depart.
514 (60) "Intoxicated" means that a person:
515 (a) is significantly impaired as to the person's mental or physical functions as a result of
516 the use of:
517 (i) an alcoholic product;
518 (ii) a controlled substance;
519 (iii) a substance having the property of releasing toxic vapors; or
520 (iv) a combination of Subsections (60)(a)(i) through (iii); and
521 (b) exhibits plain and easily observed outward manifestations of behavior or physical
522 signs produced by the overconsumption of an alcoholic product.
523 (61) "Investigator" means an individual who is:
524 (a) a department compliance officer; or
525 (b) a nondepartment enforcement officer.
526 (62) "License" means:
527 (a) a retail license;
528 (b) a sublicense;
529 (c) a license issued in accordance with Chapter 7, Part 4, Off-Premise Beer Retailer
530 State License;
531 [
532 Licenses Act;
533 [
534 Act;
535 [
536 or
537 [
538 (63) "Licensee" means a person who holds a license.
539 (64) "Limited-service restaurant license" means a license issued in accordance with
540 Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-Service Restaurant License.
541 (65) "Limousine" means a motor vehicle licensed by the state or a local authority, other
542 than a bus or taxicab:
543 (a) in which the driver and a passenger are separated by a partition, glass, or other
544 barrier;
545 (b) that is provided by a business entity to one or more individuals at a fixed charge in
546 accordance with the business entity's tariff; and
547 (c) to give the one or more individuals the exclusive use of the limousine and a driver
548 to travel to one or more specified destinations.
549 (66) (a) (i) "Liquor" means a liquid that:
550 (A) is:
551 (I) alcohol;
552 (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
553 (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
554 (IV) other drink or drinkable liquid; and
555 (B) (I) contains at least .5% alcohol by volume; and
556 (II) is suitable to use for beverage purposes.
557 (ii) "Liquor" includes:
558 (A) heavy beer;
559 (B) wine; and
560 (C) a flavored malt beverage.
561 (b) "Liquor" does not include beer.
562 (67) "Liquor Control Fund" means the enterprise fund created by Section 32B-2-301.
563 (68) "Liquor transport license" means a license issued in accordance with Chapter 17,
564 Liquor Transport License Act.
565 (69) "Liquor warehousing license" means a license that is issued:
566 (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
567 (b) to a person, other than a licensed manufacturer, who engages in the importation for
568 storage, sale, or distribution of liquor regardless of amount.
569 (70) "Local authority" means:
570 (a) for premises that are located in an unincorporated area of a county, the governing
571 body of a county;
572 (b) for premises that are located in an incorporated city, town, or metro township, the
573 governing body of the city, town, or metro township; or
574 (c) for premises that are located in a project area as defined in Section 63H-1-102 and
575 in a project area plan adopted by the Military Installation Development Authority under Title
576 63H, Chapter 1, Military Installation Development Authority Act, the Military Installation
577 Development Authority.
578 (71) "Lounge or bar area" is as defined by rule made by the commission.
579 (72) "Malt substitute" means:
580 (a) rice;
581 (b) grain;
582 (c) bran;
583 (d) glucose;
584 (e) sugar; or
585 (f) molasses.
586 [
587 ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
588 others.
589 [
590 privileges in an equity licensee or fraternal licensee.
591 [
592 center, or homeport facility for a ship:
593 (i) (A) under the control of the United States Department of Defense; or
594 (B) of the National Guard;
595 (ii) that is located within the state; and
596 (iii) including a leased facility.
597 (b) "Military installation" does not include a facility used primarily for:
598 (i) civil works;
599 (ii) a rivers and harbors project; or
600 (iii) a flood control project.
601 [
602 products are kept and offered for self-service sale or consumption.
603 [
604 [
605 (a) (i) is a state agency other than the department; or
606 (ii) is an agency of a county, city, town, or metro township; and
607 (b) has a responsibility to enforce one or more provisions of this title.
608 [
609 (a) a peace officer, examiner, or investigator; and
610 (b) employed by a nondepartment enforcement agency.
611 [
612 (i) licensed in accordance with Chapter 7, Off-Premise Beer Retailer Act; and
613 (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
614 premises.
615 (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
616 [
617 accordance with Chapter 7, Part 4, Off-Premise Beer Retailer State License.
618 [
619 Chapter 5, Retail License Act, and Chapter 6, Part 6, On-Premise Banquet License.
620 [
621 (a) authorized to sell, offer for sale, or furnish beer under a license issued in
622 accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-Premise Beer
623 Retailer License; and
624 (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
625 premises:
626 (i) regardless of whether the beer retailer sells beer for consumption off the licensed
627 premises; and
628 (ii) on and after March 1, 2012, operating:
629 (A) as a tavern; or
630 (B) in a manner that meets the requirements of Subsection 32B-6-703(2)(e)(i).
631 [
632 [
633 (a) under an agreement with the department; and
634 (b) by a person:
635 (i) other than the state; and
636 (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
637 Agency, to sell packaged liquor for consumption off the premises of the package agency.
638 [
639 [
640 offered for sale, or furnished, or who consumes an alcoholic product including:
641 (a) a customer;
642 (b) a member;
643 (c) a guest;
644 (d) an attendee of a banquet or event;
645 (e) an individual who receives room service;
646 (f) a resident of a resort; or
647 (g) a hospitality guest, as defined in Section 32B-6-1002, under a hospitality amenity
648 license.
649 [
650 (i) is primarily used to present various types of performing arts, including dance,
651 music, and theater;
652 (ii) contains over 2,500 seats;
653 (iii) is owned and operated by a governmental entity; and
654 (iv) is located in a city of the first class.
655 (b) "Performing arts facility" does not include a space that is used to present sporting
656 events or sporting competitions.
657 [
658 (a) Chapter 9, Event Permit Act; or
659 (b) Chapter 10, Special Use Permit Act.
660 [
661 (a) a licensee;
662 (b) a permittee;
663 (c) a manufacturer;
664 (d) a supplier;
665 (e) an importer;
666 (f) one of the following holding a certificate of approval:
667 (i) an out-of-state brewer;
668 (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
669 (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
670 (g) staff of:
671 (i) a person listed in Subsections [
672 (ii) a package agent.
673 [
674 the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic
675 product, unless otherwise defined in this title or rules made by the commission.
676 [
677 (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
678 to prescribe a controlled substance, other drug, or device for medicinal purposes;
679 (b) the order is made in the course of that health care practitioner's professional
680 practice; and
681 (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
682 [
683 (b) "Primary spirituous liquor" does not include a secondary flavoring ingredient.
684 [
685 (a) a resort license;
686 (b) a hotel license; or
687 (c) an arena license.
688 [
689 (i) for which an entire room, area, or hall is leased or rented in advance by an identified
690 group; and
691 (ii) that is limited in attendance to people who are specifically designated and their
692 guests.
693 (b) "Private event" does not include an event to which the general public is invited,
694 whether for an admission fee or not.
695 [
696 recreational event:
697 (a) that is held in or on the premises of an on-premise banquet licensee; and
698 (b) to which entry is restricted by an admission fee.
699 [
700 (i) an identification card;
701 (ii) an identification that:
702 (A) is substantially similar to an identification card;
703 (B) is issued in accordance with the laws of a state other than Utah in which the
704 identification is issued;
705 (C) includes date of birth; and
706 (D) has a picture affixed;
707 (iii) a valid driver license certificate that:
708 (A) includes date of birth;
709 (B) has a picture affixed; and
710 (C) is issued:
711 (I) under Title 53, Chapter 3, Uniform Driver License Act; [
712 (II) in accordance with the laws of the state in which it is issued; or
713 (III) in accordance with federal law by the United States Department of State;
714 (iv) a military identification card that:
715 (A) includes date of birth; and
716 (B) has a picture affixed; or
717 (v) a valid passport.
718 (b) "Proof of age" does not include a driving privilege card issued in accordance with
719 Section 53-3-207.
720 [
721 (a) for a full-service restaurant sublicense, the provisions applicable to a full-service
722 restaurant license under Chapter 6, Part 2, Full-Service Restaurant License;
723 (b) for a limited-service restaurant sublicense, the provisions applicable to a
724 limited-service restaurant license under Chapter 6, Part 3, Limited-Service Restaurant License;
725 (c) for a bar establishment sublicense, the provisions applicable to a bar establishment
726 license under Chapter 6, Part 4, Bar Establishment License;
727 (d) for an on-premise banquet sublicense, the provisions applicable to an on-premise
728 banquet license under Chapter 6, Part 6, On-Premise Banquet License;
729 (e) for an on-premise beer retailer sublicense, the provisions applicable to an
730 on-premise beer retailer license under Chapter 6, Part 7, On-Premise Beer Retailer License;
731 (f) for a beer-only restaurant sublicense, the provisions applicable to a beer-only
732 restaurant license under Chapter 6, Part 9, Beer-Only Restaurant License;
733 (g) for a hospitality amenity license, the provisions applicable to a hospitality amenity
734 license under Chapter 6, Part 10, Hospitality Amenity License; and
735 (h) for a [
736 Chapter 8d, Part 2, [
737 [
738 (i) owned or leased by:
739 (A) the state; or
740 (B) a local government entity; and
741 (ii) used for:
742 (A) public education;
743 (B) transacting public business; or
744 (C) regularly conducting government activities.
745 (b) "Public building" does not include a building owned by the state or a local
746 government entity when the building is used by a person, in whole or in part, for a proprietary
747 function.
748 [
749 the public has access to and a right to use for transportation, including an airline, railroad, bus,
750 boat, or other public conveyance.
751 [
752 (a) operates facilities that are at least 5,000 square feet; and
753 (b) has as its primary purpose the leasing of the facilities described in Subsection
754 [
755 [
756 Chapter 5, Retail License Act, and Chapter 6, Part 8, Reception Center License.
757 [
758 (i) inscribed on a tangible medium; or
759 (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
760 (b) "Record" includes:
761 (i) a book;
762 (ii) a book of account;
763 (iii) a paper;
764 (iv) a contract;
765 (v) an agreement;
766 (vi) a document; or
767 (vii) a recording in any medium.
768 [
769 [
770 in Section 32B-8-102.
771 [
772 [
773 [
774
775 (108) "Resort license" means a license issued in accordance with Chapter 5, Retail
776 License Act, and Chapter 8, Resort License Act.
777 (109) "Responsible alcohol service plan" means a written set of policies and
778 procedures that outlines measures to prevent employees from:
779 (a) over-serving alcoholic beverages to customers;
780 (b) serving alcoholic beverages to customers who are actually, apparently, or obviously
781 intoxicated; and
782 (c) serving alcoholic beverages to minors.
783 (110) "Restaurant" means a business location:
784 (a) at which a variety of foods are prepared;
785 (b) at which complete meals are served; and
786 (c) that is engaged primarily in serving meals.
787 (111) "Restaurant license" means one of the following licenses issued under this title:
788 (a) a full-service restaurant license;
789 (b) a limited-service restaurant license; or
790 (c) a beer-only restaurant license.
791 (112) "Retail license" means one of the following licenses issued under this title:
792 (a) a full-service restaurant license;
793 (b) a master full-service restaurant license;
794 (c) a limited-service restaurant license;
795 (d) a master limited-service restaurant license;
796 (e) a bar establishment license;
797 (f) an airport lounge license;
798 (g) an on-premise banquet license;
799 (h) an on-premise beer license;
800 (i) a reception center license;
801 (j) a beer-only restaurant license;
802 (k) a hospitality amenity license;
803 (l) a resort license;
804 (m) a hotel license; or
805 (n) an arena license.
806 (113) "Room service" means furnishing an alcoholic product to a person in a guest
807 room or privately owned dwelling unit of a:
808 (a) hotel; or
809 (b) resort facility.
810 (114) (a) "School" means a building in which any part is used for more than three
811 hours each weekday during a school year as a public or private:
812 (i) elementary school;
813 (ii) secondary school; or
814 (iii) kindergarten.
815 (b) "School" does not include:
816 (i) a nursery school;
817 (ii) a day care center;
818 (iii) a trade and technical school;
819 (iv) a preschool; or
820 (v) a home school.
821 (115) "Secondary flavoring ingredient" means any spirituous liquor added to a
822 beverage for additional flavoring that is different in type, flavor, or brand from the primary
823 spirituous liquor in the beverage.
824 (116) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby, for
825 consideration, an alcoholic product is either directly or indirectly transferred, solicited, ordered,
826 delivered for value, or by a means or under a pretext is promised or obtained, whether done by
827 a person as a principal, proprietor, or as staff, unless otherwise defined in this title or the rules
828 made by the commission.
829 (117) "Serve" means to place an alcoholic product before an individual.
830 (118) "Sexually oriented entertainer" means a person who while in a state of
831 seminudity appears at or performs:
832 (a) for the entertainment of one or more patrons;
833 (b) on the premises of:
834 (i) a bar licensee; or
835 (ii) a tavern;
836 (c) on behalf of or at the request of the licensee described in Subsection (118)(b);
837 (d) on a contractual or voluntary basis; and
838 (e) whether or not the person is designated as:
839 (i) an employee;
840 (ii) an independent contractor;
841 (iii) an agent of the licensee; or
842 (iv) a different type of classification.
843 (119) "Shared seating area" means the licensed premises of two or more restaurant
844 licensees that the restaurant licensees share as an area for alcoholic beverage consumption in
845 accordance with Subsection 32B-5-207(3).
846 (120) "Single event permit" means a permit issued in accordance with Chapter 9, Part
847 3, Single Event Permit.
848 (121) "Small brewer" means a brewer who manufactures less than 60,000 barrels of
849 beer, heavy beer, and flavored malt beverage per year, as the department calculates by:
850 (a) if the brewer is part of a controlled group of [
851 the combined volume totals of production for all breweries that constitute the controlled group
852 of [
853 (b) excluding beer, heavy beer, or flavored malt beverage the brewer:
854 (i) manufactures that is unfit for consumption as, or in, a beverage, as the commission
855 determines by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
856 Rulemaking Act; and
857 (ii) does not sell for consumption as, or in, a beverage.
858 (122) "Small or unincorporated locality" means:
859 (a) a city of the third, fourth, or fifth class, as classified under Section 10-2-301;
860 (b) a town, as classified under Section 10-2-301; or
861 (c) an unincorporated area in a county of the third, fourth, or fifth class, as classified
862 under Section 17-50-501.
863 (123) "Spa sublicense" means a sublicense:
864 (a) to a resort license or hotel license; and
865 (b) that the commission issues in accordance with Chapter 8d, Part 2, Spa Sublicense.
866 [
867 10, Special Use Permit Act.
868 [
869 (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
870 27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
871 [
872 [
873 title:
874 (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
875 holder;
876 (ii) at the request of the business, including a package agent, licensee, permittee, or
877 certificate holder; or
878 (iii) under the authority of the business, including a package agent, licensee, permittee,
879 or certificate holder.
880 (b) "Staff" includes:
881 (i) an officer;
882 (ii) a director;
883 (iii) an employee;
884 (iv) personnel management;
885 (v) an agent of the licensee, including a managing agent;
886 (vi) an operator; or
887 (vii) a representative.
888 [
889 (a) the appearance of:
890 (i) the nipple or areola of a female human breast;
891 (ii) a human genital;
892 (iii) a human pubic area; or
893 (iv) a human anus; or
894 (b) a state of dress that fails to opaquely cover:
895 (i) the nipple or areola of a female human breast;
896 (ii) a human genital;
897 (iii) a human pubic area; or
898 (iv) a human anus.
899 [
900 covers no more than:
901 (a) the nipple and areola of the female human breast in a shape and color other than the
902 natural shape and color of the nipple and areola; and
903 (b) the human genitals, pubic area, and anus:
904 (i) with no less than the following at its widest point:
905 (A) four inches coverage width in the front of the human body; and
906 (B) five inches coverage width in the back of the human body; and
907 (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
908 [
909 (i) located on premises owned or leased by the state; and
910 (ii) operated by a state employee.
911 (b) "State store" does not include:
912 (i) a package agency;
913 (ii) a licensee; or
914 (iii) a permittee.
915 [
916 stores an alcoholic product.
917 (b) "Store" means to place or maintain in a location an alcoholic product.
918 [
919 (a) any of the following licenses issued as a subordinate license to, and contingent on
920 the issuance of, a principal license:
921 (i) a full-service restaurant license;
922 (ii) a limited-service restaurant license;
923 (iii) a bar establishment license;
924 (iv) an on-premise banquet license;
925 (v) an on-premise beer retailer license;
926 (vi) a beer-only restaurant license; or
927 (vii) a hospitality amenity license; or
928 (b) a [
929 [
930 department.
931 [
932 (a) issued a license by the commission in accordance with Chapter 5, Retail License
933 Act, and Chapter 6, Part 7, On-Premise Beer Retailer License; and
934 (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
935 On-Premise Beer Retailer License.
936 [
937 Chapter 9, Part 4, Temporary Beer Event Permit.
938 [
939 a person who does not have a present intention to continue residency within Utah permanently
940 or indefinitely.
941 [
942 does not allow an object or person to be seen through the substance.
943 [
944 (a) is unsaleable because the container is:
945 (i) unlabeled;
946 (ii) leaky;
947 (iii) damaged;
948 (iv) difficult to open; or
949 (v) partly filled;
950 (b) (i) has faded labels or defective caps or corks;
951 (ii) has contents that are:
952 (A) cloudy;
953 (B) spoiled; or
954 (C) chemically determined to be impure; or
955 (iii) contains:
956 (A) sediment; or
957 (B) a foreign substance; or
958 (c) is otherwise considered by the department as unfit for sale.
959 [
960 the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or
961 not another ingredient is added.
962 (b) "Wine" includes:
963 (i) an alcoholic beverage defined as wine under 27 U.S.C. Sec. 211 and 27 C.F.R. Sec.
964 4.10; and
965 (ii) hard cider.
966 (c) "Wine" is considered liquor for purposes of this title, except as otherwise provided
967 in this title.
968 [
969 with Chapter 11, Part 3, Winery Manufacturing License.
970 Section 2. Section 32B-1-202.1 is amended to read:
971 32B-1-202.1. Proximity for certain and arena hotel licensees.
972 (1) As used in this section, "hotel" means the same as that term is defined in Section
973 32B-8b-102.
974 (2) The commission may issue a hotel license for a proposed location that does not
975 meet the proximity requirements under Section 32B-1-202, if:
976 (a) the proposed hotel is:
977 (i) located in a city classified as a city of the first class under Section 10-2-301;
978 (ii) within 600 feet of two community locations, as measured from the nearest patron
979 entrance of the proposed hotel by following the shortest route of ordinary pedestrian travel to
980 the property boundary of each community location;
981 (iii) not within 300 feet of a community location, as measured from the nearest patron
982 entrance of the proposed hotel by following the shortest route of ordinary pedestrian travel to
983 the property boundary of the community location; and
984 (iv) not within 200 feet of a community location, as measured in a straight line from
985 the nearest patron entrance of the proposed hotel to the nearest property boundary of the
986 community location;
987 (b) the proposed sublicensed premises of a bar establishment sublicense under the hotel
988 license:
989 (i) is on the second or higher floor of a hotel;
990 (ii) is not accessible at street level; and
991 (iii) is only accessible to an individual who passes through another area of the hotel in
992 which the bar establishment sublicense is located; and
993 (c) the applicant meets all other criteria under this title for the hotel license.
994 (3) The commission may issue authority to operate as a package agency to a hotel
995 licensee who meets the requirements described in Subsection (2).
996 (4) (a) The commission may issue an arena license for a proposed location that does
997 not meet the proximity requirements described in Section 32B-1-202, if, on the day before the
998 day on which the commission issues the license, each proposed sublicense of the arena license:
999 (i) operates as an outlet or restaurant; and
1000 (ii) (A) operates on the proposed sublicense premises under a variance to one or more
1001 proximity requirements in accordance with Section 32B-1-202; or
1002 (B) has been in operation on the proposed sublicense premises for at least 10 years.
1003 (b) After the commission issues an arena license in accordance with Subsection (4)(a),
1004 the commission may not issue the arena licensee an additional sublicense.
1005 Section 3. Section 32B-1-603 is amended to read:
1006 32B-1-603. Power of the commission and department to classify flavored malt
1007 beverages.
1008 (1) The commission and department shall regulate a flavored malt beverage as liquor.
1009 (2) (a) The department shall make available to the public on the Internet a list of the
1010 flavored malt beverages authorized to be sold in this state as liquor.
1011 (b) The list described in Subsection (2)(a) shall be updated at least quarterly.
1012 (3) (a) A manufacturer shall file, under penalty of perjury, a report with the department
1013 listing each flavored malt beverage manufactured by the manufacturer that the manufacturer
1014 wants to distribute in this state subject to the manufacturer holding:
1015 (i) a brewery manufacturing license issued in accordance with Chapter 11, Part 5,
1016 Brewery Manufacturing License; or
1017 (ii) a certificate of approval.
1018 (b) A manufacturer may not distribute or sell in this state a flavored malt beverage if
1019 the manufacturer does not list the flavored malt beverage in a filing with the department in
1020 accordance with this Subsection (3) before distributing or selling the flavored malt beverage.
1021 (4) The department may require a manufacturer of a flavored malt beverage to provide
1022 the department with a copy of the following filed with the federal Alcohol and Tobacco Tax
1023 and Trade Bureau, pursuant to 27 C.F.R. Sec. 25.55:
1024 (a) a statement of process; or
1025 (b) a formula.
1026 (5) (a) A manufacturer of an alcoholic product that the department is classifying or
1027 proposes to classify as a flavored malt beverage may submit evidence to the department that
1028 [
1029 because [
1030 a reason described in:
1031 (i) Subsection 32B-1-102(44)(a)(ii), as shown by a determination issued by the federal
1032 Alcohol and Tobacco Tax and Trade Bureau; or
1033 (ii) Subsection 32B-1-102(44)(a)(iii).
1034 [
1035 [
1036
1037
1038 [
1039
1040 [
1041
1042
1043 [
1044 (b) The department shall review the evidence submitted by the manufacturer under this
1045 Subsection (5).
1046 (c) The department shall make available to the public on the Internet a list of the
1047 alcoholic products authorized under this Subsection (5) to be sold as beer in this state.
1048 (d) A decision of the department under this Subsection (5) may be appealed to the
1049 commission.
1050 Section 4. Section 32B-1-604 is amended to read:
1051 32B-1-604. Requirements for labeling and packaging -- Authority of the
1052 commission and department.
1053 (1) A manufacturer may not distribute or sell a malted beverage:
1054 (a) unless the label and packaging of the malted beverage:
1055 (i) complies with the federal label requirements of 27 C.F.R. Parts 7, 13, and 16; and
1056 (ii) clearly gives notice to the public that the malted beverage is an alcoholic product;
1057 and
1058 (b) until the day on which the department in accordance with this title and rules of the
1059 commission approves the label and packaging of the malted beverage.
1060 (2) The department shall review the label and packaging of a malted beverage to ensure
1061 that the label and packaging meet the requirements of Subsection (1)(a).
1062 (3) Except as otherwise required under Section 32B-1-606, a manufacturer may comply
1063 with the requirement of Subsection (1)(a)(ii) by including on a label and packaging for a
1064 malted beverage any of the following terms in obvious and clearly visible contrast to the
1065 background of the text:
1066 (a) beer;
1067 (b) ale;
1068 (c) porter;
1069 (d) stout;
1070 (e) lager;
1071 (f) lager beer; [
1072 (g) hard seltzer;
1073 (h) spiked seltzer; or
1074 [
1075 conveys by a recognized term that the product contains alcohol.
1076 Section 5. Section 32B-1-605 is amended to read:
1077 32B-1-605. General procedure for approval.
1078 (1) To obtain approval of the label and packaging of a malted beverage, the
1079 manufacturer of the malted beverage shall submit an application to the department for
1080 approval.
1081 (2) The application described in Subsection (1) shall be on a form approved by the
1082 department and include the following for each brand and label for which the manufacturer
1083 seeks approval:
1084 (a) (i) a copy of a federal certificate of label approval from the United States
1085 Department of Treasury, Alcohol and Tobacco Tax and Trade Bureau; or
1086 (ii) if the United States Department of Treasury, Alcohol and Tobacco Tax and Trade
1087 Bureau does not require label approval, a copy of formula approval from the United States
1088 Department of Treasury, Alcohol and Tobacco Tax and Trade Bureau;
1089 (b) a complete set of original labels for each size of container of the malted beverage;
1090 (c) a description of the size of the container on which a label will be placed;
1091 (d) a description of each type of container of the malted beverage; and
1092 (e) a description of any packaging for the malted beverage.
1093 (3) The department may assess a reasonable fee for reviewing a label and packaging for
1094 approval.
1095 (4) (a) The department shall notify a manufacturer within 30 days after the day on
1096 which the manufacturer submits [
1097 approved or denied.
1098 (b) If the department determines that an unusual circumstance requires additional time,
1099 the department may extend the time period described in Subsection (4)(a).
1100 (5) A manufacturer shall obtain the approval of the department of a revision of a
1101 previously approved label and packaging before a malted beverage using the revised label and
1102 packaging may be distributed or sold in this state.
1103 (6) (a) The department may revoke a label and packaging previously approved upon a
1104 finding that the label and packaging is not in compliance with this title or rules of the
1105 commission.
1106 (b) The department shall notify the [
1107 manufacturer who applied for an approved label and packaging at least [
1108 before the day on which [
1109 (c) [
1110 receives the notice under Subsection (6)(b), [
1111 or evidence to the department on why the revocation should not occur.
1112 (7) (a) A manufacturer that applies for approval of a label and packaging may appeal a
1113 denial or revocation of a label and packaging approval to the commission.
1114 (b) During the period in which a manufacturer appeals a denial or revocation of a label
1115 and packaging approval to the commission, as permitted under Subsection (7)(a), the denial or
1116 revocation shall remain in force.
1117 Section 6. Section 32B-1-606 is amended to read:
1118 32B-1-606. Special procedure for certain malted beverages.
1119 (1) A manufacturer of a malted beverage may not distribute or sell the malted beverage
1120 in the state until the day on which the manufacturer receives approval of the labeling and
1121 packaging from the department in accordance with :
1122 (a) Sections 32B-1-604 and 32B-1-605; and
1123 (b) this section, if the malted beverage is labeled or packaged in a manner that is:
1124 (i) similar to a label or packaging used for a nonalcoholic beverage; or
1125 (ii) likely to confuse or mislead a patron to believe the malted beverage is a
1126 nonalcoholic beverage.
1127 (2) The department may not approve the labeling and packaging of a malted beverage
1128 described in Subsection (1) unless in addition to the requirements of Section 32B-1-604 the
1129 labeling and packaging complies with the following:
1130 (a) the front of the label on the malted beverage bears a prominently displayed label or
1131 a firmly affixed sticker that provides the following information in a font that measures at least
1132 three millimeters high and is in obvious and clearly visible contrast to the background of the
1133 text:
1134 (i) the statement:
1135 (A) "alcoholic beverage"; or
1136 (B) "contains alcohol"; and
1137 (ii) the alcohol content of the malted beverage, if the alcohol content is not otherwise
1138 provided:
1139 (A) in a serving facts statement on the container; and
1140 (B) in a format allowed by the Federal Alcohol and Tobacco Tax Trade Bureau;
1141 (b) the packaging of the malted beverage prominently includes, either imprinted on the
1142 packaging or imprinted on a sticker firmly affixed to the packaging in a font that measures at
1143 least three millimeters high and is in obvious and clearly visible contrast to the background of
1144 the text, the statement:
1145 (i) "alcoholic beverage"; or
1146 (ii) "contains alcohol";
1147 (c) a statement required by Subsection (2)(a) or (b) appears in a format required by rule
1148 made by the commission; and
1149 (d) a statement of alcohol content required by Subsection (2)(a)(ii):
1150 (i) states the alcohol content as a percentage of alcohol by volume or by weight; and
1151 (ii) is in a format required by rule made by the commission.
1152 (3) The department may reject a label or packaging that appears designed to obscure
1153 the information required by Subsection (2).
1154 (4) To determine whether a malted beverage is described in Subsection (1) and subject
1155 to this section, the department may consider in addition to other factors one or more of the
1156 following factors:
1157 (a) whether the coloring, carbonation, and packaging of the malted beverage:
1158 (i) is similar to those of a nonalcoholic beverage or product; or
1159 (ii) can be confused with a nonalcoholic beverage;
1160 (b) whether the malted beverage possesses a character and flavor distinctive from a
1161 traditional malted beverage;
1162 (c) whether the malted beverage:
1163 (i) is prepackaged;
1164 (ii) contains high levels of caffeine and other additives; and
1165 (iii) is marketed as a beverage that is specifically designed to provide energy;
1166 (d) whether the malted beverage contains added sweetener or sugar substitutes; or
1167 (e) whether the malted beverage contains an added fruit flavor or other flavor that
1168 masks the taste of a traditional malted beverage.
1169 Section 7. Section 32B-1-701 is amended to read:
1170 32B-1-701. Definitions.
1171 As used in this part:
1172 (1) "Off-premise retail manager" means an individual who manages operations at a
1173 premises that is licensed under Chapter 7, Off-Premise Beer Retailer Act.
1174 (2) (a) "Off-premise retail staff" means an individual who sells beer at a premises that
1175 is licensed under Chapter 7, Off-Premise Beer Retailer Act.
1176 (b) "Off-premise retail staff" does not include an off-premise retail manager.
1177 (3) "Retail manager" means an individual who:
1178 (a) manages operations at a premises that is licensed under [
1179 Retail License Act; or
1180 (b) supervises the furnishing of an alcoholic product at a premises that is licensed
1181 under [
1182 (4) (a) "Retail staff" means an individual who serves an alcoholic product at a premises
1183 licensed under [
1184 (b) "Retail staff" does not include a retail manager.
1185 Section 8. Section 32B-1-704 is amended to read:
1186 32B-1-704. Department training programs.
1187 (1) No later than January 1, 2018, the department shall develop the following training
1188 programs that are provided either in-person or online:
1189 (a) a training program for retail managers that addresses:
1190 (i) the statutes and rules that govern alcohol sales and consumption in the state;
1191 (ii) the requirements for operating as a retail licensee;
1192 (iii) using compliance assistance from the department; and
1193 (iv) any other topic the department determines beneficial to a retail manager; and
1194 (b) a training program for an individual employed by a retail licensee or an off-premise
1195 beer retailer who violates a provision of this title related to the sale, service, or furnishing of an
1196 alcoholic beverage to an intoxicated individual or a minor, that addresses:
1197 (i) the statutes and rules that govern the most common types of violations under this
1198 title;
1199 (ii) how to avoid common violations; and
1200 (iii) any other topic the department determines beneficial to the training program.
1201 (2) No later than January 1, 2019, the department shall develop a training program for
1202 off-premise retail managers that is provided either in-person or online and addresses:
1203 (a) the statutes and rules that govern sales at an off-premise beer retailer;
1204 (b) the requirements for operating an off-premise beer retailer;
1205 (c) using compliance assistance from the department; and
1206 (d) any other topic the department determines beneficial to an off-premise retail
1207 manager.
1208 (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
1209 the provisions of this section, the department shall make rules to develop and implement the
1210 training programs described in this section, including rules that establish:
1211 (a) the requirements for each training program described in this section;
1212 (b) measures that accurately identify each individual who takes and completes a
1213 training program;
1214 (c) measures that ensure an individual taking a training program is focused and actively
1215 engaged in the training material throughout the training program;
1216 (d) a record that certifies that an individual has completed a training program; and
1217 (e) a fee for participation in a training program to cover the department's cost of
1218 providing the training program.
1219 (4) (a) [
1220 the training described in Subsection (1)(a) no later than the later of:
1221 (i) 30 days after the day on which the retail manager is hired; or
1222 (ii) [
1223
1224 (b) [
1225 complete the training described in Subsection (2) no later than the later of:
1226 (i) 30 days after the day on which the off-premise retail manager is hired; or
1227 (ii) 30 days after the day on which the off-premise beer retailer obtains an off-premise
1228 beer retailer state license.
1229 (c) (i) If the commission finds that a retail licensee violated a provision of this title
1230 related to the sale, service, or furnishing of an alcoholic beverage to an intoxicated individual
1231 or a minor for a second time within 36 consecutive months after the day on which the first
1232 violation was adjudicated, the violator, all retail staff, and each retail manager shall complete
1233 the training program described in Subsection (1)(b).
1234 (ii) If the commission finds that an off-premise beer retailer violated a provision of this
1235 title related to the sale, service, or furnishing of an alcoholic beverage to an intoxicated
1236 individual or a minor for a second time within 36 consecutive months after the day on which
1237 the first violation was adjudicated, the violator and each off-premise retail manager shall
1238 complete the training program described in Subsection (1)(b).
1239 [
1240
1241
1242 [
1243
1244
1245
1246 [
1247 section:
1248 (a) the commission may suspend, revoke, or not renew the retail license or off-premise
1249 beer retailer state license;
1250 (b) a city, town, metro township, or county in which the retail licensee or off-premise
1251 beer retailer is located may suspend, revoke, or not renew the retail licensee's or off-premise
1252 beer retailer's business license; or
1253 (c) a local authority may suspend, revoke, or not renew the off-premise beer retailer's
1254 license.
1255 Section 9. Section 32B-2-101 is amended to read:
1256
1257 32B-2-101. Title.
1258 This chapter is known as the "Alcoholic Beverage [
1259 Act."
1260 Section 10. Section 32B-2-201 is amended to read:
1261 32B-2-201. Alcoholic Beverage Services Commission created.
1262 (1) There is created the "Alcoholic Beverage [
1263 commission is the governing board over the department.
1264 (2) (a) The commission is composed of seven part-time commissioners appointed by
1265 the governor with the advice and consent of the Senate in accordance with Title 63G, Chapter
1266 24, Part 2, Vacancies.
1267 (b) No more than four commissioners may be of the same political party.
1268 (3) (a) Except as required by Subsection (3)(b), as terms of commissioners expire, the
1269 governor shall appoint each new commissioner or reappointed commissioner to a four-year
1270 term.
1271 (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
1272 time of appointment or reappointment, adjust the length of terms to ensure that the terms of no
1273 more than three commissioners expire in a fiscal year.
1274 (4) (a) When a vacancy occurs on the commission for any reason, the governor shall
1275 appoint a replacement for the unexpired term with the advice and consent of the Senate.
1276 (b) Unless removed in accordance with Subsection (6), a commissioner shall remain on
1277 the commission after the expiration of a term until a successor is appointed by the governor,
1278 with the advice and consent of the Senate.
1279 (5) A commissioner shall take the oath of office.
1280 (6) (a) The governor may remove a commissioner from the commission for cause,
1281 neglect of duty, inefficiency, or malfeasance after a public hearing conducted by:
1282 (i) the governor; or
1283 (ii) an impartial hearing examiner appointed by the governor to conduct the hearing.
1284 (b) At least 10 days before the hearing described in Subsection (6)(a), the governor
1285 shall provide the commissioner notice of:
1286 (i) the date, time, and place of the hearing; and
1287 (ii) the alleged grounds for the removal.
1288 (c) The commissioner shall have an opportunity to:
1289 (i) attend the hearing;
1290 (ii) present witnesses and other evidence; and
1291 (iii) confront and cross examine witnesses.
1292 (d) After a hearing under this Subsection (6):
1293 (i) the person conducting the hearing shall prepare written findings of fact and
1294 conclusions of law; and
1295 (ii) the governor shall serve a copy of the prepared findings and conclusions upon the
1296 commissioner.
1297 (e) If a hearing under this Subsection (6) is held before a hearing examiner, the hearing
1298 examiner shall issue a written recommendation to the governor in addition to complying with
1299 Subsection (6)(d).
1300 (f) A commissioner has five days from the day on which the commissioner receives the
1301 findings and conclusions described in Subsection (6)(d) to file written objections to the
1302 recommendation before the governor issues a final order.
1303 (g) The governor shall:
1304 (i) issue the final order under this Subsection (6) in writing; and
1305 (ii) serve the final order upon the commissioner.
1306 (7) A commissioner may not receive compensation or benefits for the commissioner's
1307 service, but may receive per diem and travel expenses in accordance with:
1308 (a) Section 63A-3-106;
1309 (b) Section 63A-3-107; and
1310 (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
1311 63A-3-107.
1312 (8) (a) (i) The governor shall annually appoint the chair of the commission.
1313 (ii) A commissioner serves as chair to the commission at the pleasure of the governor.
1314 (iii) If removed as chair, the commissioner continues to serve as a commissioner unless
1315 removed as a commissioner under Subsection (6).
1316 (b) The commission shall elect:
1317 (i) another commissioner to serve as vice chair; and
1318 (ii) other commission officers as the commission considers advisable.
1319 (c) A commissioner elected under Subsection (8)(b) shall serve in the office to which
1320 the commissioner is elected at the pleasure of the commission.
1321 (9) (a) Each commissioner has equal voting rights on a commission matter when in
1322 attendance at a commission meeting.
1323 (b) Four commissioners is a quorum for conducting commission business.
1324 (c) A majority vote of the quorum present at a meeting is required for the commission
1325 to act.
1326 (d) A commissioner shall comply with the conflict of interest provisions described in
1327 Title 63G, Chapter 24, Part 3, Conflicts of Interest.
1328 (10) (a) The commission shall meet at least monthly, but may hold other meetings at
1329 times and places as scheduled by:
1330 (i) the commission;
1331 (ii) the chair; or
1332 (iii) three commissioners upon filing a written request for a meeting with the chair.
1333 (b) (i) Notice of the time and place of a commission meeting shall be given to each
1334 commissioner, and to the public in compliance with Title 52, Chapter 4, Open and Public
1335 Meetings Act.
1336 (ii) A commission meeting is open to the public, except for a commission meeting or
1337 portion of a commission meeting that is closed by the commission as authorized by Sections
1338 52-4-204 and 52-4-205.
1339 Section 11. Section 32B-2-202 is amended to read:
1340 32B-2-202. Powers and duties of the commission.
1341 (1) The commission shall:
1342 (a) consistent with the policy established by the Legislature by statute, act as a general
1343 policymaking body on the subject of alcoholic product control;
1344 (b) adopt and issue policies, rules, and procedures;
1345 (c) set policy by written rules that establish criteria and procedures for:
1346 (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
1347 permit, or certificate of approval; and
1348 (ii) determining the location of a state store, package agency, or retail licensee;
1349 (d) decide within the limits, and under the conditions imposed by this title, the number
1350 and location of state stores, package agencies, and retail licensees in the state;
1351 (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
1352 sublicenses, permits, or certificates of approval for the purchase, storage, sale, offer for sale,
1353 furnishing, consumption, manufacture, and distribution of an alcoholic product:
1354 (i) a package agency;
1355 (ii) a full-service restaurant license;
1356 (iii) a master full-service restaurant license;
1357 (iv) a limited-service restaurant license;
1358 (v) a master limited-service restaurant license;
1359 (vi) a bar establishment license;
1360 (vii) an airport lounge license;
1361 (viii) an on-premise banquet license;
1362 (ix) a resort license, which includes four or more sublicenses;
1363 (x) an on-premise beer retailer license;
1364 (xi) a reception center license;
1365 (xii) a beer-only restaurant license;
1366 (xiii) a hotel license, which includes three or more sublicenses;
1367 (xiv) an arena license, which includes three or more sublicenses;
1368 (xv) a hospitality amenity license;
1369 (xvi) subject to Subsection [
1370 (xvii) subject to Subsection [
1371 (xviii) a special use permit;
1372 (xix) a manufacturing license;
1373 (xx) a liquor warehousing license;
1374 (xxi) a beer wholesaling license;
1375 (xxii) a liquor transport license;
1376 (xxiii) an off-premise beer retailer state license;
1377 (xxiv) a master off-premise beer retailer state license;
1378 (xxv) one of the following that holds a certificate of approval:
1379 (A) an out-of-state brewer;
1380 (B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and
1381 (C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; and
1382 (xxvi) a [
1383 (f) issue, deny, suspend, or revoke the following conditional licenses:
1384 (i) a conditional retail license as defined in Section 32B-5-205; and
1385 (ii) a conditional off-premise beer retailer state license as defined in Section
1386 32B-7-406;
1387 (g) prescribe the duties of the department in assisting the commission in issuing a
1388 package agency, license, permit, or certificate of approval under this title;
1389 (h) to the extent a fee is not specified in this title, establish a fee allowed under this title
1390 in accordance with Section 63J-1-504;
1391 (i) fix prices at which liquor is sold that are the same at all state stores, package
1392 agencies, and retail licensees;
1393 (j) issue and distribute price lists showing the price to be paid by a purchaser for each
1394 class, variety, or brand of liquor kept for sale by the department;
1395 (k) (i) require the director to follow sound management principles; and
1396 (ii) require periodic reporting from the director to ensure that:
1397 (A) sound management principles are being followed; and
1398 (B) policies established by the commission are being observed;
1399 (l) (i) receive, consider, and act in a timely manner upon the reports, recommendations,
1400 and matters submitted by the director to the commission; and
1401 (ii) do the things necessary to support the department in properly performing the
1402 department's duties;
1403 (m) obtain temporarily and for special purposes the services of an expert or person
1404 engaged in the practice of a profession, or a person who possesses a needed skill if:
1405 (i) considered expedient; and
1406 (ii) approved by the governor;
1407 (n) prescribe by rule the conduct, management, and equipment of premises upon which
1408 an alcoholic product may be stored, sold, offered for sale, furnished, or consumed;
1409 (o) make rules governing the credit terms of beer sales within the state to retail
1410 licensees; and
1411 (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
1412 disciplinary action against a person subject to administrative action.
1413 (2) Consistent with the policy established by the Legislature by statute, the power of
1414 the commission to do the following is plenary, except as otherwise provided by this title, and
1415 not subject to review:
1416 (a) establish a state store;
1417 (b) issue authority to act as a package agent or operate a package agency; and
1418 (c) issue, deny, or deem forfeit a license, permit, or certificate of approval.
1419 (3) (a) Subject to Subsection (3)(b), the commission may:
1420 (i) make rules permitting and establishing the parameters of a late license renewal; and
1421 (ii) establish a fee, in accordance with Section 63J-1-504, for a late license renewal.
1422 (b) The commission may not allow for the late renewal of a license after the later of:
1423 (i) the tenth day of the month after the month in which the license type is required to be
1424 renewed; or
1425 (ii) if the tenth day of the month after the month in which the license type is required to
1426 be renewed falls on a Saturday, Sunday, or state or federal holiday, the first business day after
1427 the Saturday, Sunday, or holiday.
1428 [
1429 commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
1430 Rulemaking Act.
1431 [
1432 director may issue an event permit in accordance with Chapter 9, Event Permit Act.
1433 Section 12. Section 32B-2-203 is amended to read:
1434 32B-2-203. Department of Alcoholic Beverage Services created.
1435 (1) There is created the Department of Alcoholic Beverage [
1436 department is governed by the commission.
1437 (2) The director of alcoholic beverage [
1438 32B-2-205 shall administer the department.
1439 (3) The director shall allocate the duties within the department into the divisions,
1440 bureaus, sections, offices, and committees as the director considers necessary for the
1441 administration of this title.
1442 (4) The department shall cooperate with any other recognized agency in the
1443 administration of this title and in the enforcement of a policy or rule of the commission or
1444 policy of the director.
1445 Section 13. Section 32B-2-205 is amended to read:
1446 32B-2-205. Director of alcoholic beverage services.
1447 (1) (a) In accordance with Subsection (1)(b), the governor, with the advice and consent
1448 of the Senate, shall appoint a director of alcoholic beverage [
1449 term. The director may be appointed to more than one four-year term. The director is the
1450 administrative head of the department.
1451 (b) (i) The governor shall appoint the director from nominations made by the
1452 commission.
1453 (ii) The commission shall submit the nomination of three individuals to the governor
1454 for appointment of the director.
1455 (iii) By no later than 30 calendar days from the day on which the governor receives the
1456 three nominations submitted by the commission, the governor may:
1457 (A) appoint the director; or
1458 (B) reject the three nominations.
1459 (iv) If the governor rejects the nominations or fails to take action within the 30-day
1460 period, the commission shall nominate three different individuals from which the governor may
1461 appoint the director or reject the nominations until such time as the governor appoints the
1462 director.
1463 (v) The governor may reappoint the director without seeking nominations from the
1464 commission. Reappointment of a director is subject to the advice and consent of the Senate.
1465 (c) (i) If there is a vacancy in the position of director, during the nomination process
1466 described in Subsection (1)(b), the governor may appoint an interim director for a period of up
1467 to 30 calendar days.
1468 (ii) If a director is not appointed within the 30-day period, the interim director may
1469 continue to serve beyond the 30-day period subject to the advice and consent of the Senate at
1470 the next scheduled time for the Senate giving consent to appointments of the governor.
1471 (iii) Except that if the Senate does not act on the consent to the appointment of the
1472 interim director within 60 days of the end of the initial 30-day period, the interim director may
1473 continue as the interim director.
1474 (d) The director may be terminated by:
1475 (i) the commission by a vote of four commissioners; or
1476 (ii) the governor after consultation with the commission.
1477 (e) The director may not be a commissioner.
1478 (f) The director shall:
1479 (i) be qualified in administration;
1480 (ii) be knowledgeable by experience and training in the field of business management;
1481 and
1482 (iii) possess any other qualification prescribed by the commission.
1483 (2) The governor shall establish the director's compensation within the salary range
1484 fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
1485 (3) The director shall:
1486 (a) carry out the policies of the commission;
1487 (b) carry out the policies of the department;
1488 (c) fully inform the commission of the operations and administrative activities of the
1489 department; and
1490 (d) assist the commission in the proper discharge of the commission's duties.
1491 Section 14. Section 32B-2-210 is amended to read:
1492 32B-2-210. Alcoholic Beverage Services Advisory Board.
1493 (1) There is created within the department an advisory board known as the "Alcoholic
1494 Beverage [
1495 (2) The advisory board shall consist of eight voting members and one nonvoting
1496 member as follows:
1497 (a) four voting members appointed by the commission:
1498 (i) one of whom represents the retail alcohol industry;
1499 (ii) one of whom represents the wholesale alcohol industry;
1500 (iii) one of whom represents the alcohol manufacturing industry; and
1501 (iv) one of whom represents the restaurant industry;
1502 (b) two voting members appointed by the commission, each of whom represents an
1503 organization that addresses alcohol or drug abuse prevention, alcohol or drug related
1504 enforcement, or alcohol or drug related education;
1505 (c) the director of the Division of Substance Abuse and Mental Health or the director's
1506 designee who serves as a voting member;
1507 (d) the chair of the Utah Substance Use and Mental Health Advisory Council, or the
1508 chair's designee, who serves as a voting member; and
1509 (e) the chair of the commission or the chair's designee from the members of the
1510 commission, who serves as a nonvoting member.
1511 (3) (a) Except as required by Subsection (3)(b), as terms of current voting members of
1512 the advisory board expire, the commission shall appoint each new member or reappointed
1513 member to a four-year term beginning July 1 and ending June 30.
1514 (b) Notwithstanding the requirements of Subsection (3)(a), the commission shall, at the
1515 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
1516 voting advisory board members are staggered so that approximately half of the advisory board
1517 is appointed every two years.
1518 (c) No two members of the board may be employed by the same company or nonprofit
1519 organization.
1520 (4) (a) When a vacancy occurs in the membership for any reason, the commission shall
1521 appoint a replacement for the unexpired term.
1522 (b) The commission shall terminate the term of a voting advisory board member who
1523 ceases to be representative as designated by the member's original appointment.
1524 (5) The advisory board shall meet as called by the chair for the purpose of advising the
1525 commission and the department, with discussion limited to administrative rules made under
1526 this title.
1527 (6) The chair of the commission or the chair's designee shall serve as the chair of the
1528 advisory board and call the necessary meetings.
1529 (7) (a) Five members of the board constitute a quorum of the board.
1530 (b) An action of the majority when a quorum is present is the action of the board.
1531 (8) The department shall provide staff support to the advisory board.
1532 (9) A member may not receive compensation or benefits for the member's service, but
1533 may receive per diem and travel expenses in accordance with:
1534 (a) Section 63A-3-106;
1535 (b) Section 63A-3-107; and
1536 (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
1537 63A-3-107.
1538 Section 15. Section 32B-2-301 is amended to read:
1539 32B-2-301. State property -- Liquor Control Fund -- Money to be retained by
1540 department -- Department building process.
1541 (1) As used in this section, "base budget" means the same as that term is defined in
1542 legislative rule.
1543 (2) The following are property of the state:
1544 (a) the money received in the administration of this title, except as otherwise provided;
1545 and
1546 (b) property acquired, administered, possessed, or received by the department.
1547 (3) (a) There is created an enterprise fund known as the "Liquor Control Fund."
1548 (b) Except as provided in [
1549 the department shall deposit the following into the Liquor Control Fund:
1550 (i) money received in the administration of this title; and
1551 (ii) money received from the markup described in Section 32B-2-304[
1552 [
1553 (c) The department may draw from the Liquor Control Fund only to the extent
1554 appropriated by the Legislature or provided by statute.
1555 (d) The net position of the Liquor Control Fund may not fall below zero.
1556 [
1557
1558 [
1559
1560
1561
1562 [
1563 from the Liquor Control Fund without an appropriation for an expenditure that is directly
1564 incurred by the department:
1565 (i) to purchase an alcoholic product;
1566 (ii) to transport an alcoholic product from the supplier to a warehouse of the
1567 department; or
1568 (iii) for variances related to an alcoholic product, including breakage or theft.
1569 (b) If the balance of the Liquor Control Fund is not adequate to cover a warrant that the
1570 department draws against the Liquor Control Fund, to the extent necessary to cover the
1571 warrant, the cash resources of the General Fund may be used.
1572 [
1573 Liquor Control Fund:
1574 (a) credit card related fees paid by the department;
1575 (b) package agency compensation;
1576 (c) the department's costs of shipping and warehousing alcoholic products; and
1577 (d) the amount needed, as the Division of Human Resource Management determines,
1578 to make the median department salary in the previous fiscal year equal the median market
1579 salary in the previous fiscal year for the following positions:
1580 (i) state store manager or equivalent;
1581 (ii) state store assistant manager or equivalent;
1582 (iii) full-time sales clerk at a state store or equivalent;
1583 (iv) part-time sales clerk at a state store or equivalent;
1584 (v) department warehouse manager or equivalent;
1585 (vi) department warehouse assistant manager or equivalent;
1586 (vii) full-time department warehouse worker or equivalent; and
1587 (viii) part-time department warehouse worker or equivalent.
1588 [
1589 Fund to the General Fund a sum equal to the amount of net profit earned from the sale of liquor
1590 since the preceding transfer of money under this Subsection [
1591 (b) After each fiscal year, the Division of Finance shall calculate the amount for the
1592 transfer on or before September 1 and the Division of Finance shall make the transfer on or
1593 before September 30.
1594 (c) The Division of Finance may make year-end closing entries in the Liquor Control
1595 Fund to comply with Subsection 51-5-6(2).
1596 [
1597 (i) make a deposit to a qualified depository, as defined in Section 51-7-3; and
1598 (ii) report the deposit to the state treasurer.
1599 (b) A commissioner or department employee is not personally liable for a loss caused
1600 by the default or failure of a qualified depository.
1601 (c) Money deposited in a qualified depository is entitled to the same priority of
1602 payment as other public funds of the state.
1603 [
1604 [
1605 that the department may use for:
1606 (a) capital equipment purchases;
1607 (b) salary increases for department employees;
1608 (c) performance awards for department employees; or
1609 (d) information technology enhancements because of changes or trends in technology.
1610 Section 16. Section 32B-2-304 is amended to read:
1611 32B-2-304. Liquor price -- School lunch program -- Remittance of markup.
1612 (1) For purposes of this section:
1613 (a) (i) "Landed case cost" means:
1614 (A) the cost of the product; and
1615 (B) inbound shipping costs incurred by the department.
1616 (ii) "Landed case cost" does not include the outbound shipping cost from a warehouse
1617 of the department to a state store.
1618 (b) "Proof gallon" means the same as that term is defined in 26 U.S.C. Sec. 5002.
1619 (2) Except as provided in Subsections (3) and (4):
1620 (a) spirituous liquor sold by the department within the state shall be marked up in an
1621 amount not less than 88% above the landed case cost to the department;
1622 (b) wine sold by the department within the state shall be marked up in an amount not
1623 less than 88% above the landed case cost to the department;
1624 (c) heavy beer sold by the department within the state shall be marked up in an amount
1625 not less than 66.5% above the landed case cost to the department; and
1626 (d) a flavored malt beverage sold by the department within the state shall be marked up
1627 in an amount not less than 88% above the landed case cost to the department.
1628 (3) (a) Liquor sold by the department to a military installation in Utah shall be marked
1629 up in an amount not less than 17% above the landed case cost to the department.
1630 (b) Except for spirituous liquor sold by the department to a military installation in
1631 Utah, spirituous liquor that is sold by the department within the state shall be marked up 49%
1632 above the landed case cost to the department if:
1633 (i) the spirituous liquor is manufactured by a manufacturer producing less than 30,000
1634 proof gallons of spirituous liquor in a calendar year; and
1635 (ii) the manufacturer applies to the department for a reduced markup.
1636 (c) Except for wine sold by the department to a military installation in Utah, wine that
1637 is sold by the department within the state shall be marked up 49% above the landed case cost to
1638 the department if:
1639 (i) (A) except as provided in Subsection (3)(c)(i)(B), the wine is manufactured by a
1640 manufacturer producing less than 20,000 gallons of wine in a calendar year; or
1641 (B) for hard cider, the hard cider is manufactured by a manufacturer producing less
1642 than 620,000 gallons of hard cider in a calendar year; and
1643 (ii) the manufacturer applies to the department for a reduced markup.
1644 (d) Except for heavy beer sold by the department to a military installation in Utah,
1645 heavy beer that is sold by the department within the state shall be marked up 32% above the
1646 landed case cost to the department if:
1647 (i) a small brewer manufactures the heavy beer; and
1648 (ii) the small brewer applies to the department for a reduced markup.
1649 (e) The department shall:
1650 (i) for purposes of Subsections (3)(b) and (c), calculate the production amount of a
1651 manufacturer:
1652 (A) by, if the manufacturer is part of a controlled group of manufacturers, including the
1653 combined volume totals of spirituous liquor, wine, or cider, as applicable, for all manufacturers
1654 that constitute the controlled group of manufacturers; and
1655 (B) without considering the manufacturer's production of any other type of alcoholic
1656 product; and
1657 (ii) verify [
1658 (3)(b)[
1659 other verifiable production report.
1660 [
1661
1662
1663
1664 (f) A manufacturer seeking to obtain a reduced markup under Subsection (3)(b), (c), or
1665 (d), shall provide to the department any documentation or information the department
1666 determines necessary to determine if the manufacturer is part of a controlled group of
1667 manufacturers.
1668 (g) The department may, at any time, revoke a reduced markup granted to a
1669 manufacturer under Subsection (3)(b), (c), or (d), if the department determines the
1670 manufacturer no longer qualifies for the reduced markup.
1671 (4) Wine the department purchases on behalf of a subscriber through the wine
1672 subscription program established in Section 32B-2-702 shall be marked up not less than 88%
1673 above the cost of the subscription for the interval in which the wine is purchased.
1674 (5) The department shall deposit 10% of the total gross revenue from sales of liquor
1675 with the state treasurer to be credited to the Uniform School Fund and used to support the
1676 school meals program administered by the State Board of Education under Section 53E-3-510.
1677 (6) This section does not prohibit the department from selling discontinued items at a
1678 discount.
1679 Section 17. Section 32B-2-602 is amended to read:
1680 32B-2-602. Application and renewal requirements for a package agency.
1681 (1) Before a person may store, sell, offer for sale, or furnish liquor in a sealed container
1682 on its premises under a package agency, the person shall first obtain a package agency issued
1683 by the commission in accordance with this part.
1684 (2) To obtain a package agency, a person seeking to be the package agent under this
1685 part shall submit to the department:
1686 (a) a written application in a form prescribed by the department;
1687 (b) a nonrefundable application fee of $125;
1688 (c) written consent of the local authority;
1689 (d) evidence of proximity to any community location, with proximity requirements
1690 being governed by Section 32B-1-202;
1691 (e) a bond as specified by Section 32B-2-604;
1692 (f) a floor plan of the premises, including a description and highlighting of that part of
1693 the premises in which the person proposes that the package agency be located;
1694 (g) evidence that the package agency is carrying public liability insurance in an amount
1695 and form satisfactory to the department;
1696 (h) a signed consent form stating that the package agent permits any authorized
1697 representative of the commission, department, or any law enforcement officer to have
1698 unrestricted right to enter the premises of the package agency;
1699 (i) if the person applying is an entity, verification that a person who signs the package
1700 agency application is authorized to sign on behalf of the entity; and
1701 (j) any other information the commission or department may require.
1702 (3) The commission may not issue a package agency to a person who is disqualified
1703 under Section 32B-1-304.
1704 (4) The commission may not issue a package agency for premises that do not meet the
1705 proximity requirements of Section 32B-1-202.
1706 (5) For the renewal of a package agency agreement, the package agent shall submit to
1707 the department any information the commission or department may require.
1708 Section 18. Section 32B-2-605 is amended to read:
1709 32B-2-605. Operational requirements for package agency.
1710 (1) (a) A person may not operate a package agency until a package agency agreement is
1711 entered into by the package agent and the department.
1712 (b) A package agency agreement shall state the conditions of operation by which the
1713 package agent and the department are bound.
1714 (c) (i) If a package agent or staff of the package agent violates this title, rules under this
1715 title, or the package agency agreement, the department may take any action against the package
1716 agent that is allowed by the package agency agreement.
1717 (ii) An action against a package agent is governed solely by its package agency
1718 agreement and may include suspension or revocation of the package agency.
1719 (iii) A package agency agreement shall provide procedures to be followed if a package
1720 agent fails to pay money owed to the department including a procedure for replacing the
1721 package agent or operator of the package agency.
1722 (iv) A package agency agreement shall provide that the package agency is subject to
1723 covert investigations for selling an alcoholic product to a minor.
1724 (v) Notwithstanding that this part refers to "package agency" or "package agent," staff
1725 of the package agency or package agent is subject to the same requirement or prohibition.
1726 (2) (a) A package agency shall be operated by an individual who is either:
1727 (i) the package agent; or
1728 (ii) an individual designated by the package agent.
1729 (b) An individual who is a designee under this Subsection (2) shall be:
1730 (i) an employee of the package agent; and
1731 (ii) responsible for the operation of the package agency.
1732 (c) The conduct of the designee is attributable to the package agent.
1733 (d) A package agent shall submit the name of the person operating the package agency
1734 to the department for the department's approval.
1735 (e) A package agent shall state the name and title of a designee on the application for a
1736 package agency.
1737 (f) A package agent shall:
1738 (i) inform the department of a proposed change in the individual designated to operate
1739 a package agency; and
1740 (ii) receive prior approval from the department before implementing the change
1741 described in this Subsection (2)(f).
1742 (g) Failure to comply with the requirements of this Subsection (2) may result in the
1743 immediate termination of a package agency agreement.
1744 (3) (a) A package agent shall display in a prominent place in the package agency the
1745 record issued by the commission that designates the package agency.
1746 (b) A package agent that displays or stores liquor at a location visible to the public
1747 shall display in a prominent place in the package agency a sign in large letters that consists of
1748 text in the following order:
1749 (i) a header that reads: "WARNING";
1750 (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
1751 can cause birth defects and permanent brain damage for the child.";
1752 (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
1753 [insert most current toll-free number] with questions or for more information.";
1754 (iv) a header that reads: "WARNING"; and
1755 (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
1756 serious crime that is prosecuted aggressively in Utah."
1757 (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
1758 font style than the text described in Subsections (3)(b)(iv) and (v).
1759 (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
1760 same font size.
1761 (d) The Department of Health shall work with the commission and department to
1762 facilitate consistency in the format of a sign required under this section.
1763 (4) A package agency may not display liquor or a price list in a window or showcase
1764 that is visible to passersby.
1765 (5) (a) A package agency may not purchase liquor from a person except from the
1766 department.
1767 (b) At the discretion of the department, the department may provide liquor to a package
1768 agency for sale on consignment.
1769 (6) A package agency may not store, sell, offer for sale, or furnish liquor in a place
1770 other than as designated in the package agent's application, unless the package agent first
1771 applies for and receives approval from the department for a change of location within the
1772 package agency premises.
1773 (7) (a) Except as provided in Subsection (7)(b), a package agency may not sell, offer for
1774 sale, or furnish liquor except at a price fixed by the commission.
1775 (b) A package agency may provide as room service one alcoholic product free of
1776 charge per guest reservation, per guest room, if:
1777 (i) the package agency is the type of package agency that authorizes the package
1778 agency to sell, offer for sale, or furnish an alcoholic product as part of room service;
1779 (ii) staff of the package agency provides the alcoholic product:
1780 (A) in person; and
1781 (B) only to an adult guest in the guest room;
1782 (iii) staff of the package agency does not leave the alcoholic product outside a guest
1783 room for retrieval by a guest; and
1784 (iv) the alcoholic product:
1785 (A) is not a spirituous liquor; and
1786 (B) is in an unopened container not to exceed 750 milliliters.
1787 (8) A package agency may not sell, offer for sale, or furnish liquor to:
1788 (a) a minor;
1789 (b) a person actually, apparently, or obviously intoxicated;
1790 (c) a known interdicted person; or
1791 (d) a known habitual drunkard.
1792 (9) (a) A package agency may not employ a minor to handle liquor.
1793 (b) (i) Staff of a package agency may not:
1794 (A) consume an alcoholic product on the premises of a package agency; or
1795 (B) allow any person to consume an alcoholic product on the premises of a package
1796 agency.
1797 (ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
1798 (10) (a) A package agency may not close or cease operation for a period longer than 72
1799 hours, unless:
1800 (i) the package agency notifies the department in writing at least seven days before the
1801 day on which the package agency closes or ceases operation; and
1802 (ii) the closure or cessation of operation is first approved by the department.
1803 (b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package
1804 agency shall immediately notify the department by telephone.
1805 (c) (i) The department may authorize a closure or cessation of operation for a period
1806 not to exceed 60 days.
1807 (ii) The department may extend the initial period described in Subsection (10)(c)(i) an
1808 additional 30 days upon written request of the package agency and upon a showing of good
1809 cause.
1810 (iii) A closure or cessation of operation may not exceed a total of 90 days without
1811 commission approval.
1812 (d) The notice required by Subsection (10)(a) shall include:
1813 (i) the dates of closure or cessation of operation;
1814 (ii) the reason for the closure or cessation of operation; and
1815 (iii) the date on which the package agency will reopen or resume operation.
1816 (e) Failure of a package agency to provide notice and to obtain department
1817 authorization before closure or cessation of operation results in an automatic termination of the
1818 package agency agreement effective immediately.
1819 (f) Failure of a package agency to reopen or resume operation by the approved date
1820 results in an automatic termination of the package agency agreement effective on that date.
1821 (11) A package agency may not transfer the package agency's operations from one
1822 location to another location without prior written approval of the commission.
1823 (12) (a) A person, having been issued a package agency, may not sell, transfer, assign,
1824 exchange, barter, give, or attempt in any way to dispose of the package agency to another
1825 person, whether for monetary gain or not.
1826 (b) A package agency has no monetary value for any type of disposition.
1827 (13) (a) Subject to the other provisions of this Subsection (13):
1828 (i) sale or delivery of liquor may not be made on or from the premises of a package
1829 agency, and a package agency may not be kept open for the sale of liquor:
1830 (A) on Sunday; or
1831 (B) on a state or federal legal holiday; and
1832 (ii) sale or delivery of liquor may be made on or from the premises of a package agency,
1833 and a package agency may be open for the sale of liquor, only on a day and during hours that
1834 the commission directs by rule or order.
1835 (b) A package agency located at a manufacturing facility is not subject to Subsection
1836 (13)(a) if:
1837 (i) the package agency is located at a manufacturing facility licensed in accordance
1838 with Chapter 11, Manufacturing and Related Licenses Act; and
1839 [
1840
1841 [
1842 [
1843 [
1844 [
1845 [
1846 [
1847 [
1848
1849 [
1850 [
1851 [
1852 [
1853 manufacturing facility[
1854 [
1855
1856 (c) (i) Subsection (13)(a) does not apply to a package agency held by the following if
1857 the package agent that holds the package agency to sell liquor at a resort or hotel does not sell
1858 liquor in a manner similar to a state store:
1859 (A) a resort licensee; or
1860 (B) a hotel licensee.
1861 (ii) The commission may by rule define what constitutes a package agency that sells
1862 liquor "in a manner similar to a state store."
1863 (14) (a) Except to the extent authorized by commission rule, a minor may not be
1864 admitted into, or be on the premises of, a package agency unless accompanied by a person who
1865 is:
1866 (i) 21 years [
1867 (ii) the minor's parent, legal guardian, or spouse.
1868 (b) A package agent or staff of a package agency that has reason to believe that a
1869 person who is on the premises of a package agency is under [
1870 accompanied by a person described in Subsection (14)(a) may:
1871 (i) ask the suspected minor for proof of age;
1872 (ii) ask the person who accompanies the suspected minor for proof of age; and
1873 (iii) ask the suspected minor or the person who accompanies the suspected minor for
1874 proof of parental, guardianship, or spousal relationship.
1875 (c) A package agent or staff of a package agency shall refuse to sell liquor to the
1876 suspected minor and to the person who accompanies the suspected minor into the package
1877 agency if the minor or person fails to provide any information specified in Subsection (14)(b).
1878 (d) A package agent or staff of a package agency shall require the suspected minor and
1879 the person who accompanies the suspected minor into the package agency to immediately leave
1880 the premises of the package agency if the minor or person fails to provide information specified
1881 in Subsection (14)(b).
1882 (15) (a) A package agency shall sell, offer for sale, or furnish liquor in a sealed
1883 container.
1884 (b) A person may not open a sealed container on the premises of a package agency.
1885 (c) Notwithstanding Subsection (15)(a), a package agency may sell, offer for sale, or
1886 furnish liquor in other than a sealed container:
1887 (i) if the package agency is the type of package agency that authorizes the package
1888 agency to sell, offer for sale, or furnish the liquor as part of room service;
1889 (ii) if the liquor is sold, offered for sale, or furnished as part of room service; and
1890 (iii) subject to:
1891 (A) staff of the package agency providing the liquor in person only to an adult guest in
1892 the guest room or privately owned dwelling unit;
1893 (B) staff of the package agency not leaving the liquor outside a guest room or privately
1894 owned dwelling unit for retrieval by a guest or resident; and
1895 (C) the same limits on the portions in which an alcoholic product may be sold by a
1896 retail licensee under Section 32B-5-304.
1897 (16) A package agency may not sell, offer for sale, or furnish heavy beer in a sealed
1898 container that exceeds two liters.
1899 (17) The department may pay or otherwise remunerate a package agent on any basis,
1900 including sales or volume of business done by the package agency.
1901 (18) The commission may prescribe by policy or rule general operational requirements
1902 of a package agency that are consistent with this title and relate to:
1903 (a) physical facilities;
1904 (b) conditions of operation;
1905 (c) hours of operation;
1906 (d) inventory levels;
1907 (e) payment schedules;
1908 (f) methods of payment;
1909 (g) premises security; and
1910 (h) any other matter considered appropriate by the commission.
1911 (19) A package agency may not maintain a minibar.
1912 Section 19. Section 32B-3-202 is amended to read:
1913 32B-3-202. Timing of reporting violations.
1914 (1) The department or the commission may not take administrative action against a
1915 person subject to administrative action before:
1916 (a) a nondepartment enforcement agency or enforcement officer or a department
1917 compliance officer submits to the department a report:
1918 (i) containing facts that could support a finding that the person subject to
1919 administrative action violated this title or a commission rule; and
1920 (ii) no more than eight business days after the day on which the nondepartment
1921 enforcement agency or officer or the compliance officer completes the investigation containing
1922 the facts described in Subsection (1)(a)(i); and
1923 (b) subject to Subsection (5), the department notifies the person subject to
1924 administrative action, no more than eight business days after the day on which the department
1925 receives the report described in Subsection (1)(a), that the commission or department:
1926 (i) received the report described in Subsection (1)(a); and
1927 (ii) may initiate or maintain a disciplinary proceeding on the basis, in whole or in part,
1928 on the facts contained in the report described in Subsection (1)(a).
1929 (2) (a) The department may provide the notice required under this section orally, if after
1930 the oral notification the department provides written notification.
1931 (b) The department may provide the written notification described in Subsection (2)(a)
1932 outside the time periods required under this section.
1933 (3) The department shall maintain a record of a notification required under this section
1934 that includes:
1935 (a) the name of the person notified;
1936 (b) the date of the notification; and
1937 (c) the type of notification given.
1938 (4) (a) The department may issue an order to show cause if the department receives a
1939 report described in Subsection (1)(a), containing facts that could support a finding that the
1940 person subject to administrative action violated:
1941 (i) this title regarding necessary licensing requirements; or
1942 (ii) a commission rule regarding necessary licensing requirements.
1943 (b) A necessary licensing requirement described in Subsection (4)(a) includes:
1944 (i) maintaining an approved, licensed premise;
1945 (ii) maintaining insurance;
1946 (iii) maintaining a bond;
1947 (iv) following the requirements in Section 32B-1-304, regarding qualifications;
1948 (v) maintaining required store hours;
1949 (vi) failing to utilize the license issued; or
1950 (vii) transferring a license in violation of [
1951 Chapter 18, Change of Alcohol License or Location Act.
1952 (c) The department's issuance of an order to show cause in accordance with this
1953 Subsection (4):
1954 (i) does not initiate a disciplinary proceeding; and
1955 (ii) is not subject to Title 63G, Chapter 4, Administrative Procedures Act.
1956 (5) The department is not required to provide notice as described in Subsection (1)(b)
1957 if the person subject to administrative action is staff.
1958 Section 20. Section 32B-3-205 is amended to read:
1959 32B-3-205. Penalties.
1960 (1) If the commission is satisfied that a person subject to administrative action violates
1961 this title or the commission's rules, in accordance with Title 63G, Chapter 4, Administrative
1962 Procedures Act, the commission may:
1963 (a) suspend or revoke the person's license, permit, or certificate of approval;
1964 (b) subject to Subsection (2), impose a fine against the person, including individual
1965 staff of a licensee, permittee, or certificate holder;
1966 (c) assess the administrative costs of a disciplinary proceeding to the person if the
1967 person is a licensee, permittee, or certificate holder; or
1968 (d) take a combination of actions described in this Subsection (1).
1969 (2) (a) A fine imposed may not exceed $25,000 in the aggregate for:
1970 (i) a single notice of agency action; or
1971 (ii) a single action against a package agency.
1972 (b) The commission shall by rule establish a schedule setting forth a range of fines for
1973 each violation.
1974 (c) When a presiding officer imposes a fine, the presiding officer shall consider any
1975 aggravating circumstances or mitigating circumstances in deciding where within the applicable
1976 range to set the fine.
1977 (3) The department shall transfer the costs assessed under this section into the General
1978 Fund in accordance with Section 32B-2-301.
1979 (4) (a) If a license or permit is suspended under this section, the licensee or permittee
1980 shall prominently display a sign provided by the department:
1981 (i) during the suspension; and
1982 (ii) at the entrance of the premises of the licensee or permittee.
1983 (b) The sign required by this Subsection (4) shall:
1984 (i) read "The Utah Alcoholic Beverage [
1985 the alcoholic product license or permit of this establishment. An alcoholic product may not be
1986 sold, offered for sale, furnished, or consumed on these premises during the period of
1987 suspension."; and
1988 (ii) include the dates of the suspension period.
1989 (c) A licensee or permittee may not remove, alter, obscure, or destroy a sign required to
1990 be displayed under this Subsection (4) during the suspension period.
1991 (5) (a) If a license or permit is revoked, the commission may order the revocation of a
1992 bond posted by the licensee or permittee under this title.
1993 (b) Notwithstanding Subsection (5)(a), the department may make a claim against a
1994 bond posted by a licensee or permittee for money owed the department under this title without
1995 the commission first revoking the license or permit.
1996 (6) A licensee or permittee whose license or permit is revoked may not reapply for a
1997 license or permit under this title for three years from the date on which the license or permit is
1998 revoked.
1999 (7) If a staff member of a licensee, permittee, or certificate holder is found to have
2000 violated this title, in addition to imposing another penalty authorized by this title, the
2001 commission may prohibit the staff member from handling, selling, furnishing, distributing,
2002 manufacturing, wholesaling, or warehousing an alcoholic product in the course of acting as
2003 staff with a licensee, permittee, or certificate holder under this title for a period determined by
2004 the commission.
2005 (8) (a) If the commission makes the finding described in Subsection (8)(b), in addition
2006 to other penalties prescribed by this title, the commission may order:
2007 (i) the removal of an alcoholic product of the manufacturer's, supplier's, or importer's
2008 from the department's sales list; and
2009 (ii) a suspension of the department's purchase of an alcoholic product described in
2010 Subsection (8)(a)(i) for a period determined by the commission.
2011 (b) The commission may take the action described in Subsection (8)(a) if:
2012 (i) a manufacturer, supplier, or importer of liquor or its staff or representative violates
2013 this title; and
2014 (ii) the manufacturer, supplier, or importer:
2015 (A) directly commits the violation; or
2016 (B) solicits, requests, commands, encourages, or intentionally aids another to engage in
2017 the violation.
2018 (9) If the commission makes a finding that the brewer holding a certificate of approval
2019 violates this title or rules of the commission, the commission may take an action against the
2020 brewer holding a certificate of approval that the commission could take against a licensee
2021 including:
2022 (a) suspension or revocation of the certificate of approval; and
2023 (b) imposition of a fine.
2024 (10) Notwithstanding the other provisions of this title, the commission may not order a
2025 disciplinary action or fine in accordance with this section if the disciplinary action or fine is
2026 ordered on the basis of a violation:
2027 (a) of a provision in this title related to intoxication or becoming intoxicated; and
2028 (b) if the violation is first investigated by a law enforcement officer, as defined in
2029 Section 53-13-103, who has not received training regarding the requirements of this title
2030 related to responsible alcoholic product sale or service.
2031 (11) The commission shall expunge each record that relates to an individual's violation
2032 of a provision of this title, if the individual does not violate a provision of this title for a period
2033 of 36 consecutive months from the day on which the individual's last violation was adjudicated.
2034 Section 21. Section 32B-4-403 is amended to read:
2035 32B-4-403. Unlawful sale, offer for sale, or furnishing to minor.
2036 (1) A person may not sell, offer for sale, or furnish an alcoholic product to a minor.
2037 (2) (a) (i) Except as provided in Subsection (3), a person is guilty of a class B
2038 misdemeanor if the person who violates Subsection (1) negligently or recklessly fails to
2039 determine whether the recipient of the alcoholic product is a minor.
2040 (ii) As used in this Subsection (2)(a), "negligently" means with simple negligence.
2041 (b) Except as provided in Subsection (3), a person is guilty of a class A misdemeanor if
2042 the person who violates Subsection (1) knows the [
2043 is a minor.
2044 (3) This section does not apply to the furnishing of an alcoholic product to a minor in
2045 accordance with this title:
2046 (a) for medicinal purposes by:
2047 (i) the parent or guardian of the minor; or
2048 (ii) the health care practitioner of the minor, if the health care practitioner is authorized
2049 by law to write a prescription; or
2050 (b) as part of a religious organization's religious services.
2051 Section 22. Section 32B-4-415 is amended to read:
2052 32B-4-415. Unlawful bringing onto premises for consumption.
2053 (1) Except as provided in Subsection (4) and Section 32B-5-307, a person may not
2054 bring an alcoholic product for on-premise consumption onto the premises of:
2055 (a) a retail licensee or person required to be licensed under this title as a retail licensee;
2056 (b) an establishment that conducts a business similar to a retail licensee;
2057 (c) an event where an alcoholic product is sold, offered for sale, or furnished under a
2058 single event permit or temporary beer event permit issued under this title;
2059 (d) an establishment open to the general public; or
2060 (e) the capitol hill complex.
2061 (2) Except as provided in Subsection (4) and Section 32B-5-307, the following may
2062 not allow a person to bring onto its premises an alcoholic product for on-premise consumption
2063 or allow consumption of an alcoholic product brought onto its premises in violation of this
2064 section:
2065 (a) a retail licensee or a person required to be licensed under this title as a retail
2066 licensee;
2067 (b) an establishment that conducts a business similar to a retail licensee;
2068 (c) a single event permittee or temporary beer event permittee;
2069 (d) an establishment open to the general public;
2070 (e) the State Capitol Preservation Board created in Section 63C-9-201; or
2071 (f) staff of a person listed in Subsections (2)(a) through (e).
2072 (3) Except as provided in Subsection (4)(c)(i)(A), a person may not consume an
2073 alcoholic product in a limousine or chartered bus if the limousine or chartered bus drops off a
2074 passenger at:
2075 (a) a location from which the passenger departs in a private vehicle; or
2076 (b) the capitol hill complex.
2077 (4) (a) A person may bring bottled wine onto the premises of the following and
2078 consume the wine pursuant to Section 32B-5-307:
2079 (i) a full-service restaurant licensee;
2080 (ii) a limited restaurant licensee;
2081 (iii) a bar establishment licensee; or
2082 (iv) a person operating under a [
2083 (b) A passenger of a limousine may bring onto, possess, and consume an alcoholic
2084 product in the limousine if:
2085 (i) the travel of the limousine begins and ends at:
2086 (A) the residence of the passenger;
2087 (B) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
2088 (C) the temporary domicile of the passenger;
2089 (ii) the driver of the limousine is separated from the passengers by partition or other
2090 means approved by the department; and
2091 (iii) the limousine is not located on the capitol hill complex.
2092 (c) A passenger of a chartered bus may bring onto, possess, and consume an alcoholic
2093 product on the chartered bus:
2094 (i) (A) but may consume only during travel to a specified destination of the chartered
2095 bus and not during travel back to the place where the travel begins; or
2096 (B) if the travel of the chartered bus begins and ends at:
2097 (I) the residence of the passenger;
2098 (II) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
2099 (III) the temporary domicile of the passenger;
2100 (ii) if the chartered bus has a nondrinking designee other than the driver traveling on
2101 the chartered bus to monitor consumption; and
2102 (iii) if the chartered bus is not located on the capitol hill complex.
2103 (5) A person may bring onto any premises, possess, and consume an alcoholic product
2104 at a private event.
2105 (6) Notwithstanding Subsection (5), private and public facilities may prohibit the
2106 possession or consumption of alcohol on their premises.
2107 (7) The restrictions of Subsections (2) and (3) apply to a resort licensee or hotel
2108 licensee or person operating under a sublicense in relationship to:
2109 (a) the boundary of a resort building, as defined in Section 32B-8-102, or the boundary
2110 of a hotel, as defined in Section 32B-8b-102, in an area that is open to the public; or
2111 (b) except as provided in Subsection (4), sublicensed premises.
2112 Section 23. Section 32B-5-102 is amended to read:
2113 32B-5-102. Definitions.
2114 [
2115 [
2116 [
2117 [
2118 [
2119 [
2120 [
2121
2122 [
2123 [
2124 [
2125 [
2126
2127 [
2128
2129
2130 Reserved.
2131 Section 24. Section 32B-5-201 is amended to read:
2132 32B-5-201. Application requirements for retail license.
2133 (1) (a) Before a person may store, sell, offer for sale, furnish, or permit consumption of
2134 an alcoholic product on licensed premises as a retail licensee, the person shall first obtain a
2135 retail license issued by the commission, notwithstanding whether the person holds a local
2136 license or a permit issued by a local authority.
2137 (b) Violation of this Subsection (1) is a class B misdemeanor.
2138 (2) To obtain a retail license under this title, a person shall submit to the department:
2139 (a) a written application in a form prescribed by the department;
2140 (b) a nonrefundable application fee in the amount specified in the relevant chapter or
2141 part for the type of retail license for which the person is applying;
2142 (c) an initial license fee:
2143 (i) in the amount specified in the relevant chapter or part for the type of retail license
2144 for which the person is applying; and
2145 (ii) that is refundable if a retail license is not issued;
2146 (d) written consent of the local authority, including, if applicable, consent for each
2147 proposed sublicense;
2148 (e) a copy of:
2149 (i) every license the local authority requires, including the person's current business
2150 license; and
2151 (ii) if the person is applying for a principal license, the current business license for each
2152 proposed sublicense, except if the [
2153 that the business license for a proposed sublicense is included in the person's current business
2154 license;
2155 (f) evidence of the proposed retail licensee's proximity to any community location, with
2156 proximity requirements being governed by Section 32B-1-202;
2157 (g) a bond as specified by Section 32B-5-204;
2158 (h) a floor plan, and boundary map where applicable, of the premises of the retail
2159 license and each, if any, accompanying sublicense, including any:
2160 (i) consumption area; and
2161 (ii) area where the person proposes to store, sell, offer for sale, or furnish an alcoholic
2162 beverage;
2163 (i) evidence that the retail licensee carries public liability insurance in an amount and
2164 form satisfactory to the department;
2165 (j) evidence that the retail licensee carries dramshop insurance coverage of at least:
2166 (i) $1,000,000 per occurrence and $2,000,000 in the aggregate;
2167 (ii) if the retail licensee is a hotel licensee or a resort licensee, $1,000,000 per
2168 occurrence and $2,000,000 in the aggregate to cover both the principal license and all
2169 accompanying sublicenses; or
2170 (iii) if the retail licensee is an arena licensee, $10,000,000 per occurrence and
2171 $20,000,000 in the aggregate to cover both the arena license and all accompanying sublicenses.
2172 (k) a signed consent form stating that the retail licensee will permit any authorized
2173 representative of the commission, department, or any law enforcement officer to have
2174 unrestricted right to enter:
2175 (i) the premises of the retail licensee; and
2176 (ii) if applicable, the premises of each of the retail licensee's accompanying
2177 sublicenses;
2178 (l) if the person is an entity, proper verification evidencing that a person who signs the
2179 application is authorized to sign on behalf of the entity;
2180 (m) a responsible alcohol service plan; [
2181 (n) evidence that each individual the person has hired to work as a retail manager, as
2182 defined in Section 32B-1-701, has completed the alcohol training and education seminar as
2183 required under Chapter 1, Part 7, Alcohol Training and Education Act; and
2184 [
2185 (3) The commission may not issue a retail license to a person who:
2186 (a) is disqualified under Section 32B-1-304; or
2187 (b) is not lawfully present in the United States.
2188 (4) Unless otherwise provided in the relevant chapter or part for the type of retail
2189 license for which the person is applying, the commission may not issue a retail license to a
2190 person if the proposed licensed premises does not meet the proximity requirements of Section
2191 32B-1-202.
2192 Section 25. Section 32B-5-202 is amended to read:
2193 32B-5-202. Renewal requirements.
2194 (1) A retail license expires each year on the day specified in the relevant chapter or part
2195 for that type of retail license.
2196 (2) (a) To renew a person's retail license, a retail licensee shall, on or before the day
2197 specified in the relevant chapter or part for the type of retail license that the person seeks to
2198 renew, submit:
2199 (i) a completed renewal application in a form prescribed by the department;
2200 (ii) a renewal fee in the amount specified in the relevant chapter or part for the type of
2201 retail license that the person seeks to renew; and
2202 (iii) a responsible alcohol service plan if, since the retail licensee's most recent
2203 application or renewal, the retail licensee:
2204 (A) made substantial changes to the retail licensee's responsible alcohol service plan;
2205 or
2206 (B) violated a provision of this chapter.
2207 [
2208
2209
2210 [
2211 [
2212
2213 [
2214
2215 [
2216 (3) Failure to meet the renewal requirements results in an automatic forfeiture of the
2217 retail license effective on the day on which the existing retail license expires.
2218 Section 26. Section 32B-5-205 is amended to read:
2219 32B-5-205. Conditional retail license.
2220 (1) As used in this section:
2221 (a) "Conditional retail license" means a retail license that:
2222 (i) conditions the holder's ability to [
2223
2224 the person submitting to the department:
2225 (A) a copy of every license or permit the local authority requires for the valid retail
2226 license, including the holder's current business license [
2227
2228 (B) a bond;
2229 (C) evidence that the person carries public liability insurance;
2230 (D) evidence that the person carries dramshop insurance;
2231 (E) evidence that each individual the conditional retail licensee has hired to work as a
2232 retail manager, as defined in Section 32B-1-701, has completed the alcohol training and
2233 education seminar as required under Chapter 1, Part 7, Alcohol Training and Education Act; or
2234 (F) any other information the department or commission may require for licensure; and
2235 (ii) provides that the holder will be issued a valid retail license if the holder complies
2236 with the requirements of Subsection (3).
2237 (b) "Valid retail license" means a retail license issued pursuant to this part under which
2238 the holder is permitted to sell, offer for sale, furnish, or allow the consumption of an alcoholic
2239 product on [
2240 (2) Subject to the requirements of this section, the commission may issue a conditional
2241 retail license to a person if the person:
2242 (a) meets [
2243 person is applying, except [
2244 (i) a copy of every license or permit the local authority requires for the retail license,
2245 including the person's current business license; [
2246 (ii) a bond;
2247 (iii) evidence that the person carries public liability insurance;
2248 (iv) evidence that the person carries dramshop insurance coverage;
2249 (v) evidence that each individual the conditional retail licensee has hired to work as a
2250 retail manager, as defined in Section 32B-1-701, has completed the alcohol training and
2251 education seminar as required under Chapter 1, Part 7, Alcohol Training and Education Act; or
2252 (vi) a menu; and
2253 (b) agrees not to sell, offer for sale, furnish, or allow the consumption of an alcoholic
2254 product on [
2255 license.
2256 (3) (a) A conditional retail license becomes a valid retail license on the day on which
2257 the department notifies the person who holds the conditional retail license that the department
2258 finds that the person has complied with Subsection (3)(b).
2259 (b) For a conditional retail license to become a valid retail license, a person who holds
2260 the conditional retail license shall:
2261 (i) submit to the department:
2262 (A) a copy of every license or permit the local authority requires for the retail license,
2263 including the person's current business license; [
2264 (B) a bond as specified by Section 32B-5-204;
2265 (C) evidence that the conditional retail licensee carries public liability insurance in an
2266 amount and form satisfactory to the department;
2267 (D) evidence that the conditional retail licensee carries dramshop insurance coverage as
2268 specified in Section 32B-5-201;
2269 (E) evidence that each individual the conditional retail licensee has hired to work as a
2270 retail manager, as defined in Section 32B-1-701, has completed an alcohol training and
2271 education seminar as required under Chapter 1, Part 7, Alcohol Training and Education Act;
2272 and
2273 (F) any other information the department or commission may require; and
2274 (ii) provide to the department evidence satisfactory to the department that:
2275 (A) there has been no change in the information submitted to the commission as part of
2276 the person's application for a retail license; and
2277 (B) the person continues to qualify for the retail license.
2278 (4) (a) A conditional retail license expires 18 months after the day on which the
2279 commission issues the conditional retail license, unless the conditional retail license becomes a
2280 valid retail license before that day.
2281 (b) Notwithstanding Subsection (4)(a), the commission may extend the time period of a
2282 conditional retail license an additional six months if the holder of the conditional license can
2283 show to the satisfaction of the commission that the holder of the conditional license:
2284 (i) has an active building permit related to the licensed premises; and
2285 (ii) is engaged in a good faith effort to pursue completion within the six-month period.
2286 Section 27. Section 32B-5-304 is amended to read:
2287 32B-5-304. Portions in which alcoholic product may be sold.
2288 (1) (a) A retail licensee may sell, offer for sale, or furnish spirituous liquor that is a
2289 primary spirituous liquor only in a quantity that does not exceed 1.5 ounces per beverage
2290 dispensed through a calibrated metered dispensing system approved by the department in
2291 accordance with commission rules adopted under this title[
2292 [
2293
2294
2295 [
2296
2297 [
2298 [
2299
2300 [
2301 [
2302
2303 [
2304 [
2305 (b) A retail license is not required to dispense spirituous liquor through a calibrated
2306 metered dispensing system if the spirituous liquor is:
2307 (i) a secondary flavoring ingredient;
2308 (ii) used as a flavoring on a dessert; or
2309 (iii) used to set aflame a food dish, drink, or dessert.
2310 (c) A retail licensee that dispenses spirituous liquor that is a secondary flavoring
2311 ingredient shall:
2312 (i) designate a location where the retail licensee stores secondary flavoring ingredients
2313 on the floor plan the retail licensee submits to the department; and
2314 (ii) clearly and conspicuously label each secondary flavoring ingredient's container
2315 "flavorings".
2316 [
2317 (2) (a) (i) A retail licensee may sell, offer for sale, or furnish wine by the glass or in an
2318 individual portion that does not exceed 5 ounces per glass or individual portion.
2319 (ii) A retail licensee may sell, offer for sale, or furnish an individual portion of wine to
2320 a patron in more than one glass if the total amount of wine does not exceed 5 ounces.
2321 (b) (i) A retail licensee may sell, offer for sale, or furnish wine in a container not
2322 exceeding 1.5 liters at a price fixed by the commission to a table of four or more persons.
2323 (ii) A retail licensee may sell, offer for sale, or furnish wine in a container not to
2324 exceed 750 milliliters at a price fixed by the commission to a table of less than four persons.
2325 (3) A retail licensee may sell, offer for sale, or furnish heavy beer in an original
2326 container at a price fixed by the commission, except that the original container may not exceed
2327 one liter.
2328 (4) A retail licensee may sell, offer for sale, or furnish a flavored malt beverage in an
2329 original container at a price fixed by the commission, except that the original container may not
2330 exceed one liter.
2331 (5) (a) (i) Subject to Subsection [
2332 sale, or furnish beer for on-premise consumption:
2333 [
2334 [
2335 [
2336 (5)(a)(i):
2337 [
2338 [
2339 (b) A retail licensee may sell, offer for sale, or furnish beer for off-premise
2340 consumption:
2341 (i) in a sealed container; and
2342 (ii) in a size of container that does not exceed two liters.
2343 (c) A retail licensee may sell, offer for sale, or furnish a flight of beer to an individual
2344 patron if the total amount of beer does not exceed 16 ounces.
2345 Section 28. Section 32B-5-307 is amended to read:
2346 32B-5-307. Bringing alcoholic product onto or removing alcoholic product from
2347 premises.
2348 (1) Except as provided in Subsections (3) and (4):
2349 (a) a person may not bring onto the licensed premises of a retail licensee an alcoholic
2350 product for on-premise consumption;
2351 (b) a retail licensee may not allow a person to:
2352 (i) bring onto licensed premises an alcoholic product for on-premise consumption; or
2353 (ii) consume an alcoholic product brought onto the licensed premises by a person other
2354 than the retail licensee; and
2355 (c) a retail licensee may not sell, offer for sale, or furnish an alcoholic product through
2356 a window or door to a location off the licensed premises or to a vehicular traffic area.
2357 (2) Except as provided in Subsections (3) and (4) and Subsection 32B-4-415(5):
2358 (a) a person may not carry from [
2359 container that:
2360 (i) is used primarily for drinking purposes; and
2361 (ii) contains an alcoholic product;
2362 (b) a retail licensee may not permit a patron to carry from the licensed premises an
2363 open container described in Subsection (2)(a); and
2364 (c) (i) a person may not carry from [
2365 container of liquor that has been purchased from the retail licensee; and
2366 (ii) a retail licensee may not permit a patron to carry from the licensed premises of the
2367 retail licensee a sealed container of liquor that has been purchased from the retail licensee.
2368 (3) (a) A patron may bring a bottled wine onto the premises of a retail licensee for
2369 on-premise consumption if:
2370 (i) permitted by the retail licensee; and
2371 (ii) the retail licensee is authorized to sell, offer for sale, or furnish wine.
2372 (b) If a patron carries bottled wine onto the licensed premises of a retail licensee, the
2373 patron shall deliver the bottled wine to a server or other representative of the retail licensee
2374 upon entering the licensed premises.
2375 (c) A retail licensee authorized to sell, offer for sale, or furnish wine, may provide a
2376 wine service for a bottled wine carried onto the licensed premises in accordance with this
2377 Subsection (3) or a bottled wine purchased at the licensed premises.
2378 (d) A patron may remove from a licensed premises the unconsumed contents of a bottle
2379 of wine purchased at the licensed premises, or brought onto the licensed premises in
2380 accordance with this Subsection (3), only if before removal the bottle is recorked or recapped.
2381 (4) Neither a patron nor a retail licensee violates this section if:
2382 (a) the patron is in shared seating; and
2383 (b) the patron purchased the patron's alcoholic beverage from a restaurant licensee
2384 whose licensed premises include the shared seating area the patron is in.
2385 (5) (a) A patron may carry from a retail licensee's licensed premises a sealed container
2386 of beer that has been purchased from the retail licensee.
2387 (b) A retail licensee may permit a patron to carry from the retail licensee's licensed
2388 premises a sealed container of beer that has been purchased from the retail licensee.
2389 Section 29. Section 32B-5-309 is amended to read:
2390 32B-5-309. Ceasing operation.
2391 (1) Except as provided in Subsection (8), a retail licensee may not close or cease
2392 operation for a period longer than 240 hours, unless:
2393 (a) the retail licensee notifies the department in writing at least seven days before the
2394 day on which the retail licensee closes or ceases operation; and
2395 (b) the closure or cessation of operation is first approved by the department.
2396 (2) Notwithstanding Subsection (1), in the case of emergency closure, a retail licensee
2397 shall immediately notify the department by telephone.
2398 (3) (a) The department may authorize [
2399 a retail licensee for a period not to exceed 60 days.
2400 (b) [
2401 department may extend the initial period [
2402 period not to exceed the greater of:
2403 (i) 30 days [
2404 (ii) the number of days until the day on which the commission holds the commission's
2405 next regularly scheduled meeting.
2406 [
2407 [
2408 (4) A closure or cessation of operation may not exceed [
2409 limits described in Subsection (3) without commission approval.
2410 (5) A notice required under this section shall include:
2411 (a) the dates of closure or cessation of operation;
2412 (b) the reason for the closure or cessation of operation; and
2413 (c) the date on which the retail licensee will reopen or resume operation.
2414 (6) Failure of a retail licensee to provide notice and to obtain department approval
2415 before closure or cessation of operation results in an automatic forfeiture of:
2416 (a) the retail license; and
2417 (b) the unused portion of the retail license fee for the remainder of the retail license
2418 year effective immediately.
2419 (7) Failure of a retail licensee to reopen or resume operation by the approved date
2420 results in an automatic forfeiture of:
2421 (a) the retail license; and
2422 (b) the unused portion of the retail license fee for the remainder of the retail license
2423 year.
2424 (8) This section does not apply to:
2425 (a) an on-premise beer retailer who is not a tavern; [
2426 (b) an airport lounge licensee; or
2427 (c) a hospitality amenity licensee.
2428 (9) For purposes of this section, the department may not base a determination that a
2429 retail licensee has ceased operation solely upon the retail licensee's lack of sales.
2430 Section 30. Section 32B-6-205 is amended to read:
2431 32B-6-205. Specific operational requirements for a full-service restaurant license
2432 -- Before July 1, 2018, or July 1, 2022.
2433 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2434 Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
2435 shall comply with this section.
2436 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2437 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2438 (i) a full-service restaurant licensee;
2439 (ii) individual staff of a full-service restaurant licensee; or
2440 (iii) both a full-service restaurant licensee and staff of the full-service restaurant
2441 licensee.
2442 (2) In addition to complying with Subsection 32B-5-301(3), a full-service restaurant
2443 licensee shall display in a prominent place in the restaurant a list of the types and brand names
2444 of liquor being furnished through the full-service restaurant licensee's calibrated metered
2445 dispensing system.
2446 (3) In addition to complying with Section 32B-5-303, a full-service restaurant licensee
2447 shall store an alcoholic product in a storage area described in Subsection (11)(a).
2448 (4) (a) An individual who serves an alcoholic product in a full-service restaurant
2449 licensee's premises shall make a written beverage tab for each table or group that orders or
2450 consumes an alcoholic product on the premises.
2451 (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
2452 alcoholic product ordered or consumed.
2453 (5) A person's willingness to serve an alcoholic product may not be made a condition
2454 of employment as a server with a full-service restaurant licensee.
2455 (6) (a) A full-service restaurant licensee may sell, offer for sale, or furnish liquor at the
2456 licensed premises during the following time periods only:
2457 (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
2458 (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2459 period that begins at 10:30 a.m. and ends at 11:59 p.m.
2460 (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer at the
2461 licensed premises during the following time periods only:
2462 (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
2463 (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2464 period that begins at 10:30 a.m. and ends at 12:59 a.m.
2465 (7) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
2466 alcoholic product for on-premise consumption except after the full-service restaurant licensee
2467 confirms that the patron has the intent to order food prepared, sold, and furnished at the
2468 licensed premises.
2469 (b) Notwithstanding Section 32B-5-307, a full-service restaurant licensee may not sell,
2470 offer for sale, or furnish beer for off-premise consumption except after the patron consumes on
2471 the licensed premises food prepared, sold, and furnished at the licensed premises.
2472 [
2473 adequate culinary facilities for food preparation and dining accommodations.
2474 (8) (a) Subject to the other provisions of this Subsection (8), a patron may not have
2475 more than two alcoholic products of any kind at a time before the patron.
2476 (b) A patron may not have more than one spirituous liquor drink at a time before the
2477 patron.
2478 (c) An individual portion of wine is considered to be one alcoholic product under
2479 Subsection (8)(a).
2480 (9) A patron may consume an alcoholic product on the full-service restaurant licensee's
2481 licensed premises only :
2482 (a) at:
2483 (i) the patron's table;
2484 (ii) a counter; or
2485 (iii) a seating grandfathered bar structure ; and
2486 (b) where food is served.
2487 (10) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
2488 alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
2489 structure that is not a seating grandfathered bar structure.
2490 (b) At a seating grandfathered bar structure a patron who is 21 years [
2491 older may:
2492 (i) sit;
2493 (ii) be furnished an alcoholic product; and
2494 (iii) consume an alcoholic product.
2495 (c) Except as provided in Subsection (10)(d), at a seating grandfathered bar structure a
2496 full-service restaurant licensee may not permit a minor to, and a minor may not:
2497 (i) sit; or
2498 (ii) consume food or beverages.
2499 (d) (i) A minor may be at a seating grandfathered bar structure if the minor is employed
2500 by a full-service restaurant licensee:
2501 (A) as provided in Subsection 32B-5-308(2); or
2502 (B) to perform maintenance and cleaning services during an hour when the full-service
2503 restaurant licensee is not open for business.
2504 (ii) A minor may momentarily pass by a seating grandfathered bar structure without
2505 remaining or sitting at the bar structure en route to an area of a full-service restaurant licensee's
2506 premises in which the minor is permitted to be.
2507 (11) Except as provided in Subsection 32B-5-307(3), a full-service restaurant licensee
2508 may dispense an alcoholic product only if:
2509 (a) the alcoholic product is dispensed from:
2510 (i) a grandfathered bar structure;
2511 (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
2512 the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
2513 12, 2009; or
2514 (iii) an area that is:
2515 (A) separated from an area for the consumption of food by a patron by a solid,
2516 translucent, permanent structural barrier such that the facilities for the storage or dispensing of
2517 an alcoholic product are:
2518 (I) not readily visible to a patron; and
2519 (II) not accessible by a patron; and
2520 (B) apart from an area used:
2521 (I) for dining;
2522 (II) for staging; or
2523 (III) as a lobby or waiting area;
2524 (b) the full-service restaurant licensee uses an alcoholic product that is:
2525 (i) stored in an area described in Subsection (11)(a); or
2526 (ii) in an area not described in Subsection (11)(a) on the licensed premises and:
2527 (A) immediately before the alcoholic product is dispensed it is in an unopened
2528 container;
2529 (B) the unopened container is taken to an area described in Subsection (11)(a) before it
2530 is opened; and
2531 (C) once opened, the container is stored in an area described in Subsection (11)(a); and
2532 (c) any instrument or equipment used to dispense alcoholic product is located in an
2533 area described in Subsection (11)(a).
2534 (12) A full-service restaurant licensee may state in a food or alcoholic product menu a
2535 charge or fee made in connection with the sale, service, or consumption of liquor including:
2536 (a) a set-up charge;
2537 (b) a service charge; or
2538 (c) a chilling fee.
2539 (13) Beginning on July 1, 2018, a minor may not sit, remain, or consume food or
2540 beverages within 10 feet of a grandfathered bar structure, unless:
2541 (a) seating within 10 feet of the grandfathered bar structure is the only seating available
2542 in the licensed premises; and
2543 (b) the minor is accompanied by an individual who is 21 years [
2544 (14) Except as provided in Subsection 32B-6-205.2(16) and Section 32B-6-205.3, the
2545 provisions of this section apply before July 1, 2018.
2546 Section 31. Section 32B-6-205.2 is amended to read:
2547 32B-6-205.2. Specific operational requirements for a full-service restaurant
2548 license -- On and after July 1, 2018, or July 1, 2022.
2549 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2550 Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
2551 shall comply with this section.
2552 (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in
2553 accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2554 (i) a full-service restaurant licensee;
2555 (ii) individual staff of a full-service restaurant licensee; or
2556 (iii) both a full-service restaurant licensee and staff of the full-service restaurant
2557 licensee.
2558 (2) (a) An individual who serves an alcoholic product in a full-service restaurant
2559 licensee's premises shall make a beverage tab for each table or group that orders or consumes
2560 an alcoholic product on the premises.
2561 (b) A beverage tab described in this Subsection (2) shall state the type and amount of
2562 each alcoholic product ordered or consumed.
2563 (3) A full-service restaurant licensee may not make an individual's willingness to serve
2564 an alcoholic product a condition of employment with a full-service restaurant licensee.
2565 (4) (a) A full-service restaurant licensee may sell, offer for sale, or furnish liquor at the
2566 licensed premises during the following time periods only:
2567 (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
2568 (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2569 period that begins at 10:30 a.m. and ends at 11:59 p.m.
2570 (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer at the
2571 licensed premises during the following time periods only:
2572 (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
2573 (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2574 period that begins at 10:30 a.m. and ends at 12:59 a.m.
2575 (5) (a) A full-service restaurant licensee may not furnish an alcoholic product for
2576 on-premise consumption except after:
2577 (i) the patron to whom the full-service restaurant licensee furnishes the alcoholic
2578 product is seated at:
2579 (A) a table that is located in a dining area or a dispensing area;
2580 (B) a counter that is located in a dining area or a dispensing area; or
2581 (C) a dispensing structure that is located in a dispensing area; and
2582 (ii) the full-service restaurant licensee confirms that the patron intends to:
2583 (A) order food prepared, sold, and furnished at the licensed premises; and
2584 (B) except as provided in Subsection (5)(b), consume the food at the same location
2585 where the patron is seated and furnished the alcoholic product.
2586 (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
2587 full-service restaurant licensee, the full-service restaurant licensee may sell, offer for sale, or
2588 furnish to the patron one drink that contains a single portion of an alcoholic product as
2589 described in Section 32B-5-304 if:
2590 (A) the patron is in a dispensing area and seated at a table, counter, or dispensing
2591 structure; and
2592 (B) the full-service restaurant licensee first confirms that after the patron is seated in
2593 the dining area, the patron intends to order food prepared, sold, and furnished at the licensed
2594 premises.
2595 (ii) If the patron does not finish the patron's alcoholic product before moving to a seat
2596 in the dining area, an employee of the full-service restaurant licensee who is qualified to sell
2597 and serve an alcoholic product under Section 32B-5-306 shall transport any unfinished portion
2598 of the patron's alcoholic product to the patron's seat in the dining area.
2599 (iii) For purposes of Subsection (5)(b)(i) a single portion of wine is five ounces or less.
2600 (c) Notwithstanding Section 32B-5-307, a full-service restaurant licensee may not
2601 furnish beer for off-premise consumption except after the patron consumes on the licensed
2602 premises food prepared, sold, and furnished at the licensed premises.
2603 [
2604 adequate culinary facilities for food preparation and dining accommodations.
2605 (6) A patron may consume an alcoholic product on the full-service restaurant licensee's
2606 licensed premises only if the patron is seated at:
2607 (a) a table that is located in a dining area or dispensing area;
2608 (b) a counter that is located in a dining area or dispensing area; or
2609 (c) a dispensing structure located in a dispensing area.
2610 (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have
2611 more than two alcoholic products of any kind at a time before the patron.
2612 (b) A patron may not have more than one spirituous liquor drink at a time before the
2613 patron.
2614 (c) An individual portion of wine is considered to be one alcoholic product under
2615 Subsection (7)(a).
2616 (8) In accordance with the provisions of this section, an individual who is at least 21
2617 years [
2618 (9) (a) Except as provided in Subsection (9)(b), a minor may not sit, remain, or
2619 consume food or beverages in a dispensing area.
2620 (b) (i) A minor may be in a dispensing area if the minor is:
2621 (A) at least 16 years [
2622 restaurant licensee; or
2623 (B) performing maintenance and cleaning services as an employee of the full-service
2624 restaurant licensee when the full-service restaurant licensee is not open for business.
2625 (ii) If there is no alternative route available, a minor may momentarily pass through a
2626 dispensing area without remaining or sitting in the dispensing area en route to an area of the
2627 full-service restaurant licensee's premises in which the minor is permitted to be.
2628 (10) Except as provided in Subsection 32B-5-307(3), a full-service restaurant licensee
2629 may dispense an alcoholic product only if:
2630 (a) the alcoholic product is dispensed from:
2631 (i) a dispensing structure that is located in a dispensing area;
2632 (ii) an area that is:
2633 (A) separated from an area for the consumption of food by a patron by a solid,
2634 translucent, permanent structural barrier such that the facilities for the dispensing of an
2635 alcoholic product are not readily visible to a patron and not accessible by a patron; and
2636 (B) apart from an area used for dining, for staging, or as a waiting area; or
2637 (iii) the premises of a bar licensee that is:
2638 (A) owned by the same person or persons as the full-service restaurant licensee; and
2639 (B) located immediately adjacent to the premises of the full-service restaurant licensee;
2640 and
2641 (b) any instrument or equipment used to dispense alcoholic product is located in an
2642 area described in Subsection (10)(a).
2643 (11) (a) A full-service restaurant licensee may have more than one dispensing area in
2644 the licensed premises.
2645 (b) Each dispensing area in a licensed premises may satisfy the requirements for a
2646 dispensing area under Subsection 32B-6-202(2)(a)(i), (ii), or (iii), regardless of how any other
2647 dispensing area in the licensed premises satisfies the requirements for a dispensing area.
2648 (12) A full-service restaurant licensee may not:
2649 (a) transfer, dispense, or serve an alcoholic product on or from a movable cart; or
2650 (b) display an alcoholic product or a product intended to appear like an alcoholic
2651 product by moving a cart or similar device around the licensed premises.
2652 (13) A full-service restaurant licensee may state in a food or alcoholic product menu a
2653 charge or fee made in connection with the sale, service, or consumption of liquor, including:
2654 (a) a set-up charge;
2655 (b) a service charge; or
2656 (c) a chilling fee.
2657 (14) (a) In addition to the requirements described in Section 32B-5-302, a full-service
2658 restaurant licensee shall maintain each of the following records for at least three years:
2659 (i) a record required by Section 32B-5-302; and
2660 (ii) a record that the commission requires a full-service restaurant licensee to use or
2661 maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2662 Rulemaking Act.
2663 (b) The department shall audit the records of a full-service restaurant licensee at least
2664 once [
2665 (15) A full-service restaurant licensee may lease to a patron of the full-service
2666 restaurant licensee a locked storage space:
2667 (a) that the commission considers proper for the storage of wine; and
2668 (b) for the storage of wine that:
2669 (i) the patron purchases from the full-service restaurant licensee; and
2670 (ii) only the full-service restaurant licensee or staff of the full-service restaurant
2671 licensee may remove from the locker for the patron's use in accordance with this title,
2672 including:
2673 (A) service and consumption on licensed premises as described in Section 32B-5-306;
2674 or
2675 (B) removal from the full-service retail licensee's licensed premises in accordance with
2676 Section 32B-5-307.
2677 (16) (a) In accordance with Section 32B-6-205.3, a full-service restaurant licensee:
2678 (i) may comply with the provisions of this section beginning on or after July 1, 2017;
2679 and
2680 (ii) shall comply with the provisions of this section:
2681 (A) for a full-service restaurant licensee that does not have a grandfathered bar
2682 structure, on and after July 1, 2018; or
2683 (B) for a full-service restaurant licensee that has a grandfathered bar structure, on and
2684 after July 1, 2022.
2685 (b) A full-service restaurant licensee that elects to comply with the provisions of this
2686 section before the latest applicable date described in Subsection (16)(a)(ii):
2687 (i) shall comply with each provision of this section; and
2688 (ii) is not required to comply with the provisions of Section 32B-6-205.
2689 Section 32. Section 32B-6-205.3 is amended to read:
2690 32B-6-205.3. Transition process for full-service restaurant licensees.
2691 (1) For a full-service restaurant license issued on or after July 1, 2017, the full-service
2692 restaurant licensee shall comply with the provisions of Section 32B-6-205.2.
2693 (2) For a full-service restaurant license issued before July 1, 2017, before the
2694 full-service restaurant licensee changes the full-service restaurant licensee's approved location
2695 for storage, dispensing, or consumption to comply with the provisions of Section 32B-6-205.2,
2696 the full-service restaurant licensee shall submit an application for approval to the department in
2697 accordance with Subsection 32B-5-303(3).
2698 (3) (a) Except as provided in Subsection (4), a person who holds a full-service
2699 restaurant license issued before July 1, 2017, shall comply with the provisions of Section
2700 32B-6-205.2 on or before July 1, 2018.
2701 (b) A full-service restaurant licensee described in Subsection (3)(a) that cannot comply
2702 with the provisions of Section 32B-6-205.2 without a change to the full-service restaurant
2703 licensee's approved location for storage, dispensing, or consumption:
2704 (i) may submit an application for approval described in Subsection (2) on or after May
2705 9, 2017; and
2706 (ii) shall submit an application for approval described in Subsection (2) on or before
2707 May 1, 2018.
2708 (c) If a full-service restaurant licensee described in Subsection (3)(a) submits an
2709 application for approval described in Subsection (2) on May 9, 2017, the department shall take
2710 action on the application on or before July 1, 2017.
2711 (4) (a) A person who holds a full-service restaurant license issued before July 1, 2017,
2712 and has a grandfathered bar structure shall comply with the provisions of Section 32B-6-205.2
2713 on or before the earlier of:
2714 (i) July 1, 2022;
2715 (ii) the date on which the full-service restaurant licensee remodels, as defined by
2716 commission rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2717 Rulemaking Act, the full-service restaurant licensee's grandfathered bar structure or dining
2718 area; or
2719 (iii) the date on which the full-service restaurant licensee experiences a change of
2720 ownership described in Subsection [
2721 (b) A full-service restaurant licensee described in Subsection (4)(a) that cannot comply
2722 with the provisions of Section 32B-6-205.2 without a change to the full-service restaurant
2723 licensee's approved location for storage, dispensing, or consumption:
2724 (i) may submit an application for approval described in Subsection (2) on or after May
2725 9, 2017; and
2726 (ii) shall submit an application for approval described in Subsection (2) on or before
2727 May 1, 2022.
2728 Section 33. Section 32B-6-305 is amended to read:
2729 32B-6-305. Specific operational requirements for a limited-service restaurant
2730 license -- Before July 1, 2018, or July 1, 2022.
2731 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2732 Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
2733 licensee shall comply with this section.
2734 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2735 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2736 (i) a limited-service restaurant licensee;
2737 (ii) individual staff of a limited-service restaurant licensee; or
2738 (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
2739 licensee.
2740 (2) (a) A limited-service restaurant licensee on the licensed premises may not sell, offer
2741 for sale, furnish, or allow consumption of:
2742 (i) spirituous liquor; or
2743 (ii) a flavored malt beverage.
2744 (b) A product listed in Subsection (2)(a) may not be on the premises of a
2745 limited-service restaurant licensee except for use:
2746 (i) as a flavoring on a dessert; and
2747 (ii) in the preparation of a flaming food dish, drink, or dessert.
2748 (3) In addition to complying with Section 32B-5-303, a limited-service restaurant
2749 licensee shall store an alcoholic product in a storage area described in Subsection (11)(a).
2750 (4) (a) An individual who serves an alcoholic product in a limited-service restaurant
2751 licensee's premises shall make a written beverage tab for each table or group that orders or
2752 consumes an alcoholic product on the premises.
2753 (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
2754 alcoholic product ordered or consumed.
2755 (5) A person's willingness to serve an alcoholic product may not be made a condition
2756 of employment as a server with a limited-service restaurant licensee.
2757 (6) (a) A limited-service restaurant licensee may sell, offer for sale, or furnish wine or
2758 heavy beer at the licensed premises during the following time periods only:
2759 (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
2760 (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2761 period that begins at 10:30 a.m. and ends at 11:59 p.m.
2762 (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer at the
2763 licensed premises during the following time periods only:
2764 (i) on a weekday, during the period that beings at 11:30 a.m. and ends at 12:59 a.m.; or
2765 (ii) on a weekend or state or federal legal holiday or for a private event, during the
2766 period that begins at 10:30 a.m. and ends at 12:59 a.m.
2767 (7) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
2768 alcoholic product for on-premise consumption except after the limited-service restaurant
2769 licensee confirms that the patron has the intent to order food prepared, sold, and furnished at
2770 the licensed premises.
2771 (b) Notwithstanding Section 32B-5-307, a limited-service restaurant licensee may not
2772 sell, offer for sale, or furnish beer for off-premise consumption except after the patron
2773 consumes on the licensed premises food prepared, sold, and furnished at the licensed premises.
2774 [
2775 adequate culinary facilities for food preparation and dining accommodations.
2776 (8) (a) Subject to the other provisions of this Subsection (8), a patron may not have
2777 more than two alcoholic products of any kind at a time before the patron.
2778 (b) An individual portion of wine is considered to be one alcoholic product under
2779 Subsection (8)(a).
2780 (9) A patron may consume an alcoholic product on the limited-service restaurant
2781 licensee's licensed premises only:
2782 (a) at:
2783 (i) the patron's table;
2784 (ii) a counter; or
2785 (iii) a seating grandfathered bar structure; and
2786 (b) where food is served.
2787 (10) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
2788 alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
2789 structure that is not a seating grandfathered bar structure.
2790 (b) At a seating grandfathered bar structure a patron who is 21 years [
2791 older may:
2792 (i) sit;
2793 (ii) be furnished an alcoholic product; and
2794 (iii) consume an alcoholic product.
2795 (c) Except as provided in Subsection (10)(d), at a seating grandfathered bar structure a
2796 limited-service restaurant licensee may not permit a minor to, and a minor may not:
2797 (i) sit; or
2798 (ii) consume food or beverages.
2799 (d) (i) A minor may be at a seating grandfathered bar structure if the minor is employed
2800 by a limited-service restaurant licensee:
2801 (A) as provided in Subsection 32B-5-308(2); or
2802 (B) to perform maintenance and cleaning services during an hour when the
2803 limited-service restaurant licensee is not open for business.
2804 (ii) A minor may momentarily pass by a seating grandfathered bar structure without
2805 remaining or sitting at the bar structure en route to an area of a limited-service restaurant
2806 licensee's premises in which the minor is permitted to be.
2807 (11) Except as provided in Subsection 32B-5-307(3), a limited-service restaurant
2808 licensee may dispense an alcoholic product only if:
2809 (a) the alcoholic product is dispensed from:
2810 (i) a grandfathered bar structure;
2811 (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
2812 the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
2813 12, 2009; or
2814 (iii) an area that is:
2815 (A) separated from an area for the consumption of food by a patron by a solid,
2816 translucent, permanent structural barrier such that the facilities for the storage or dispensing of
2817 an alcoholic product are:
2818 (I) not readily visible to a patron; and
2819 (II) not accessible by a patron; and
2820 (B) apart from an area used:
2821 (I) for dining;
2822 (II) for staging; or
2823 (III) as a lobby or waiting area;
2824 (b) the limited-service restaurant licensee uses an alcoholic product that is:
2825 (i) stored in an area described in Subsection (11)(a); or
2826 (ii) in an area not described in Subsection (11)(a) on the licensed premises and:
2827 (A) immediately before the alcoholic product is dispensed it is in an unopened
2828 container;
2829 (B) the unopened container is taken to an area described in Subsection (11)(a) before it
2830 is opened; and
2831 (C) once opened, the container is stored in an area described in Subsection (11)(a); and
2832 (c) any instrument or equipment used to dispense alcoholic product is located in an
2833 area described in Subsection (11)(a).
2834 (12) A limited-service restaurant licensee may state in a food or alcoholic product
2835 menu a charge or fee made in connection with the sale, service, or consumption of wine or
2836 heavy beer including:
2837 (a) a set-up charge;
2838 (b) a service charge; or
2839 (c) a chilling fee.
2840 (13) Beginning on July 1, 2018, a minor may not sit, remain, or consume food or
2841 beverages within 10 feet of a grandfathered bar structure, unless:
2842 (a) seating within 10 feet of the grandfathered bar structure is the only seating available
2843 in the licensed premises; and
2844 (b) the minor is accompanied by an individual who is 21 years [
2845 (14) Except as provided in Subsection 32B-6-305.2(15) and Section 32B-6-305.3, the
2846 provisions of this section apply before July 1, 2018.
2847 Section 34. Section 32B-6-305.2 is amended to read:
2848 32B-6-305.2. Specific operational requirements for a limited-service restaurant
2849 license -- On and after July 1, 2018, or July 1, 2022.
2850 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2851 Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
2852 licensee shall comply with this section.
2853 (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in
2854 accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2855 (i) a limited-service restaurant licensee;
2856 (ii) individual staff of a limited-service restaurant licensee; or
2857 (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
2858 licensee.
2859 (2) (a) An individual who serves an alcoholic product in a limited-service restaurant
2860 licensee's premises shall make a beverage tab for each table or group that orders or consumes
2861 an alcoholic product on the premises.
2862 (b) A beverage tab described in this Subsection (2) shall state the type and amount of
2863 each alcoholic product ordered or consumed.
2864 (3) A limited-service restaurant licensee may not make an individual's willingness to
2865 serve an alcoholic product a condition of employment with a limited-service restaurant
2866 licensee.
2867 (4) (a) A limited-service restaurant licensee may sell, offer for sale, or furnish wine or
2868 heavy beer at the licensed premises during the following time periods only:
2869 (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
2870 (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2871 period that begins at 10:30 a.m. and ends at 11:59 p.m.
2872 (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer at the
2873 licensed premises during the following time periods only:
2874 (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
2875 (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2876 period that begins at 10:30 a.m. and ends at 12:59 a.m.
2877 (5) (a) A limited-service restaurant licensee may not furnish an alcoholic product for
2878 on-premise consumption except after:
2879 (i) the patron to whom the limited-service restaurant licensee furnishes the alcoholic
2880 product is seated at:
2881 (A) a table that is located in a dining area or a dispensing area;
2882 (B) a counter that is located in a dining area or a dispensing area; or
2883 (C) a dispensing structure that is located in a dispensing area; and
2884 (ii) the limited-service restaurant licensee confirms that the patron intends to:
2885 (A) order food prepared, sold, and furnished at the licensed premises; and
2886 (B) except as provided in Subsection (5)(b), consume the food at the same location
2887 where the patron is seated and furnished the alcoholic product.
2888 (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
2889 limited-service restaurant licensee, the limited-service restaurant licensee may sell, offer for
2890 sale, or furnish to the patron one drink that contains a single portion of an alcoholic product as
2891 described in Section 32B-5-304 if:
2892 (A) the patron is in a dispensing area and seated at a table, counter, or dispensing
2893 structure; and
2894 (B) the limited-service restaurant licensee first confirms that after the patron is seated
2895 in the dining area, the patron intends to order food prepared, sold, and furnished at the licensed
2896 premises.
2897 (ii) If the patron does not finish the patron's alcoholic product before moving to a seat
2898 in the dining area, an employee of the limited-service restaurant licensee who is qualified to
2899 sell and serve an alcoholic product under Section 32B-5-306 shall transport any unfinished
2900 portion of the patron's alcoholic product to the patron's seat in the dining area.
2901 (iii) For purposes of Subsection (5)(b)(i) a single portion of wine is 5 ounces or less.
2902 (c) Notwithstanding Section 32B-5-307, a limited-service restaurant licensee may not
2903 furnish beer for off-premise consumption except after the patron consumes on the licensed
2904 premises food prepared, sold, and furnished at the licensed premises.
2905 [
2906 adequate culinary facilities for food preparation and dining accommodations.
2907 (6) A patron may consume an alcoholic product on the limited-service restaurant
2908 licensee's licensed premises only if the patron is seated at:
2909 (a) a table that is located in a dining area or a dispensing area;
2910 (b) a counter that is located in a dining area or a dispensing area; or
2911 (c) a dispensing structure located in a dispensing area.
2912 (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have
2913 more than two alcoholic products of any kind at a time before the patron.
2914 (b) An individual portion of wine is considered to be one alcoholic product under
2915 Subsection (7)(a).
2916 (8) In accordance with the provisions of this section, an individual who is at least 21
2917 years [
2918 (9) (a) Except as provided in Subsection (9)(b), a minor may not sit, remain, or
2919 consume food or beverages in a dispensing area.
2920 (b) (i) A minor may be in a dispensing area if the minor is:
2921 (A) at least 16 years [
2922 restaurant licensee; or
2923 (B) performing maintenance and cleaning services as an employee of the
2924 limited-service restaurant licensee when the limited-service restaurant licensee is not open for
2925 business.
2926 (ii) If there is no alternative route available, a minor may momentarily pass through a
2927 dispensing area without remaining or sitting in the dispensing area en route to an area of the
2928 limited-service restaurant licensee's premises in which the minor is permitted to be.
2929 (10) Except as provided in Subsection 32B-5-307(3), a limited-service restaurant
2930 licensee may dispense an alcoholic product only if:
2931 (a) the alcoholic product is dispensed from:
2932 (i) a dispensing structure that is located in a dispensing area;
2933 (ii) an area that is:
2934 (A) separated from an area for the consumption of food by a patron by a solid,
2935 translucent, permanent structural barrier such that the facilities for the dispensing of an
2936 alcoholic product are not readily visible to a patron and not accessible by a patron; and
2937 (B) apart from an area used for dining, for staging, or as a waiting area; or
2938 (iii) the premises of a bar licensee that is:
2939 (A) owned by the same person or persons as the limited-service restaurant licensee; and
2940 (B) located immediately adjacent to the premises of the limited-service restaurant
2941 licensee; and
2942 (b) any instrument or equipment used to dispense alcoholic product is located in an
2943 area described in Subsection (10)(a).
2944 (11) (a) A limited-service restaurant licensee may have more than one dispensing area
2945 in the licensed premises.
2946 (b) Each dispensing area in a licensed premises may satisfy the requirements for a
2947 dispensing area under Subsection 32B-6-202(2)(a)(i), (ii), or (iii), regardless of how any other
2948 dispensing area in the licensed premises satisfies the requirements for a dispensing area.
2949 (12) A limited-service restaurant licensee may not:
2950 (a) transfer, dispense, or serve an alcoholic product on or from a movable cart; or
2951 (b) display an alcoholic product or a product intended to appear like an alcoholic
2952 product by moving a cart or similar device around the licensed premises.
2953 (13) A limited-service restaurant licensee may state in a food or alcoholic product
2954 menu a charge or fee made in connection with the sale, service, or consumption of wine or
2955 heavy beer, including:
2956 (a) a set-up charge;
2957 (b) a service charge; or
2958 (c) a chilling fee.
2959 (14) (a) In addition to the requirements described in Section 32B-5-302, a
2960 limited-service restaurant licensee shall maintain each of the following records for at least three
2961 years:
2962 (i) a record required by Section 32B-5-302; and
2963 (ii) a record that the commission requires a limited-service restaurant licensee to use or
2964 maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2965 Rulemaking Act.
2966 (b) The department shall audit the records of a limited-service restaurant licensee at
2967 least once each calendar year.
2968 (15) (a) In accordance with Section 32B-6-305.3, a limited-service restaurant licensee:
2969 (i) may comply with the provisions of this section beginning on or after July 1, 2017;
2970 and
2971 (ii) shall comply with the provisions of this section:
2972 (A) for a limited-service restaurant licensee that does not have a grandfathered bar
2973 structure, on and after July 1, 2018; or
2974 (B) for a limited-service restaurant licensee that has a grandfathered bar structure, on
2975 and after July 1, 2022.
2976 (b) A limited-service restaurant licensee that elects to comply with the provisions of
2977 this section before the latest applicable date described in Subsection (15)(a)(ii):
2978 (i) shall comply with each provision of this section; and
2979 (ii) is not required to comply with the provisions of Section 32B-6-305.
2980 Section 35. Section 32B-6-305.3 is amended to read:
2981 32B-6-305.3. Transition process for limited-service restaurant licensees.
2982 (1) For a limited-service restaurant license issued on or after July 1, 2017, the
2983 limited-service restaurant licensee shall comply with the provisions of Section 32B-6-305.2.
2984 (2) For a limited-service restaurant license issued before July 1, 2017, before the
2985 limited-service restaurant licensee changes the limited-service restaurant licensee's approved
2986 location for storage, dispensing, or consumption to comply with the provisions of Section
2987 32B-6-305.2, the limited-service restaurant licensee shall submit an application for approval to
2988 the department in accordance with Subsection 32B-5-303(3).
2989 (3) (a) Except as provided in Subsection (4), a person who holds a limited-service
2990 restaurant license issued before July 1, 2017, shall comply with the provisions of Section
2991 32B-6-305.2 on or before July 1, 2018.
2992 (b) A limited-service restaurant licensee described in Subsection (3)(a) that cannot
2993 comply with the provisions of Section 32B-6-305.2 without a change to the limited-service
2994 restaurant licensee's approved location for storage, dispensing, or consumption:
2995 (i) may submit an application for approval described in Subsection (2) on or after May
2996 9, 2017; and
2997 (ii) shall submit an application for approval described in Subsection (2) on or before
2998 May 1, 2018.
2999 (c) If a limited-service restaurant licensee described in Subsection (3)(a) submits an
3000 application for approval described in Subsection (2) on May 9, 2017, the department shall take
3001 action on the application on or before July 1, 2017.
3002 (4) (a) A person who holds a limited-service restaurant license issued before July 1,
3003 2017, and has a grandfathered bar structure shall comply with the provisions of Section
3004 32B-6-305.2 on or before the earlier of:
3005 (i) July 1, 2022;
3006 (ii) the date on which the limited-service restaurant licensee remodels, as defined by
3007 commission rule made in accordance with Title 63G, Chapter 3, Utah Administrative
3008 Rulemaking Act, the limited-service restaurant licensee's grandfathered bar structure or dining
3009 area; or
3010 (iii) the date on which the limited-service restaurant licensee experiences a change of
3011 ownership described in Subsection [
3012 (b) A limited-service restaurant licensee described in Subsection (4)(a) that cannot
3013 comply with the provisions of Section 32B-6-305.2 without a change to the limited-service
3014 restaurant licensee's approved location for storage, dispensing, or consumption:
3015 (i) may submit an application for approval described in Subsection (2) on or after May
3016 9, 2017; and
3017 (ii) shall submit an application for approval described in Subsection (2) on or before
3018 May 1, 2022.
3019 Section 36. Section 32B-6-404.1 is amended to read:
3020 32B-6-404.1. Transition from dining club license to full-service restaurant license.
3021 (1) As used in this section:
3022 (a) "Converted full-service restaurant licensee" means a dining club licensee that
3023 converts to a full-service restaurant licensee on or before July 1, 2018, in accordance with
3024 Subsection 32B-6-404(7).
3025 (b) "Grandfathered bar structure" means the same as that term is defined in Section
3026 32B-6-202.
3027 (2) (a) Except as provided in Subsection (2)(c) and subject to the provisions of this
3028 section, a converted full-service restaurant licensee shall operate under the provisions that
3029 govern a full-service restaurant licensee that has a grandfathered bar structure.
3030 (b) For purposes of applying the provisions that govern a full-service restaurant
3031 licensee with a grandfathered bar structure, a converted full-service restaurant licensee's bar
3032 structure is considered a grandfathered bar structure.
3033 (c) The provisions of Section 32B-6-205.3 do not apply to a converted full-service
3034 restaurant licensee.
3035 (3) (a) A converted full-service restaurant licensee shall comply with the provisions of
3036 Section 32B-6-205.2 on or before the earlier of:
3037 (i) July 1, 2022;
3038 (ii) the date on which the converted full-service restaurant licensee remodels, as
3039 defined by commission rule made in accordance with Title 63G, Chapter 3, Utah
3040 Administrative Rulemaking Act, the converted full-service restaurant licensee's bar structure or
3041 dining area; or
3042 (iii) the date on which the converted full-service restaurant licensee experiences a
3043 change of ownership described in Subsection [
3044 (b) Before a converted full-service restaurant licensee changes the converted
3045 full-service restaurant licensee's approved location for storage, dispensing, or consumption to
3046 comply with the provisions of Section 32B-6-205.2, the converted full-service restaurant
3047 licensee shall submit an application for approval to the department in accordance with
3048 Subsection 32B-5-303(3).
3049 (c) A converted full-service restaurant licensee that cannot comply with the provisions
3050 of Section 32B-6-205.2 without a change to the converted full-service restaurant licensee's
3051 approved location for storage, dispensing, or consumption shall submit an application for
3052 approval described in Subsection (3)(b) on or before May 1, 2022.
3053 (4) (a) Notwithstanding any provision to the contrary, a converted full-service
3054 restaurant licensee shall maintain at least the following percentage of the converted full-service
3055 restaurant licensee's total restaurant business from the sale of food:
3056 (i) beginning the day on which the licensee becomes a converted full-service restaurant
3057 licensee, and ending June 30, 2019, 64%;
3058 (ii) beginning July 1, 2019, and ending June 30, 2020, 68%; and
3059 (iii) on and after July 1, 2021, 70%.
3060 (b) For purposes of Subsection (4)(a), a converted full-service restaurant licensee's
3061 restaurant business from the sale of food does not include:
3062 (i) mix for an alcoholic product; or
3063 (ii) a service charge.
3064 Section 37. Section 32B-6-605 is amended to read:
3065 32B-6-605. Specific operational requirements for on-premise banquet license.
3066 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3067 Requirements, an on-premise banquet licensee and staff of the on-premise banquet licensee
3068 shall comply with this section.
3069 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
3070 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3071 (i) an on-premise banquet licensee;
3072 (ii) individual staff of an on-premise banquet licensee; or
3073 (iii) both an on-premise banquet licensee and staff of the on-premise banquet licensee.
3074 (2) An on-premise banquet licensee shall comply with Subsections 32B-5-301(4) and
3075 (5) for the entire premises of the hotel, resort facility, sports center, convention center, [
3076 performing arts facility, or arena that is the basis for the on-premise banquet license.
3077 (3) (a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee
3078 shall provide the department with advance notice of a scheduled banquet in accordance with
3079 rules made by the commission.
3080 (b) Any of the following may conduct a random inspection of a banquet:
3081 (i) an authorized representative of the commission or the department; or
3082 (ii) a law enforcement officer.
3083 (4) (a) An on-premise banquet licensee is not subject to Section 32B-5-302, but shall
3084 make and maintain the records the commission or department requires.
3085 (b) Section 32B-1-205 applies to a record required to be made or maintained in
3086 accordance with this Subsection (4).
3087 (5) (a) Except as otherwise provided in this title, an on-premise banquet licensee may
3088 sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption at the
3089 location of the banquet.
3090 (b) Except as provided in Subsection 32B-5-307(4), a host of a banquet, a patron, or a
3091 person other than the on-premise banquet licensee or staff of the on-premise banquet licensee,
3092 may not remove an alcoholic product from the premises of the banquet.
3093 (c) Notwithstanding [
3094 except as provided in Subsection 32B-5-307(4), a patron at a banquet may not bring an
3095 alcoholic product into or onto, or remove an alcoholic product from, the premises of a banquet.
3096 (6) (a) An on-premise banquet licensee may not leave an unsold alcoholic product at
3097 the banquet following the conclusion of the banquet.
3098 (b) At the conclusion of a banquet, an on-premise banquet licensee shall:
3099 (i) destroy an opened and unused alcoholic product that is not saleable, under
3100 conditions established by the department; and
3101 (ii) return to the on-premise banquet licensee's approved locked storage area any:
3102 (A) opened and unused alcoholic product that is saleable; and
3103 (B) unopened container of an alcoholic product.
3104 (c) Except as provided in Subsection (6)(b) with regard to an open or sealed container
3105 of an alcoholic product not sold or consumed at a banquet, an on-premise banquet licensee:
3106 (i) shall store the alcoholic product in the on-premise banquet licensee's approved
3107 locked storage area; and
3108 (ii) may use the alcoholic product at more than one banquet.
3109 (7) Notwithstanding Section 32B-5-308, an on-premise banquet licensee may not
3110 employ a minor to sell, furnish, or dispense an alcoholic product in connection with the
3111 on-premise banquet licensee's banquet and room service activities.
3112 (8) An on-premise banquet licensee:
3113 (a) may provide room service in portions described in Section 32B-5-304;
3114 (b) may not sell, offer for sale, or furnish an alcoholic product at a banquet or in
3115 connection with room service any day during a period that:
3116 (i) begins at 1 a.m.; and
3117 (ii) ends at 9:59 a.m.; and
3118 (c) notwithstanding Section 32B-5-305, may provide as room service one alcoholic
3119 product free of charge per guest reservation, per guest room, if the alcoholic product:
3120 (i) is not a spirituous liquor; and
3121 (ii) is in an unopened container not to exceed 750 milliliters.
3122 (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
3123 more than two alcoholic products of any kind at a time before the patron.
3124 (b) A patron may not have more than one spirituous liquor drink at a time before the
3125 patron.
3126 (c) An individual portion of wine is considered to be one alcoholic product under
3127 Subsection (9)(a).
3128 (10) (a) An on-premise banquet licensee shall supervise and direct a person involved in
3129 the sale, offer for sale, or furnishing of an alcoholic product.
3130 (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
3131 shall complete an alcohol training and education seminar.
3132 (11) A staff person of an on-premise banquet licensee shall remain at the banquet at all
3133 times when an alcoholic product is sold, offered for sale, furnished, or consumed at the
3134 banquet.
3135 (12) (a) Room service of an alcoholic product to a guest room or privately owned
3136 dwelling unit of a hotel or resort facility shall be provided in person by staff of an on-premise
3137 banquet licensee only to an adult guest in the guest room or privately owned dwelling unit.
3138 (b) An alcoholic product may not be left outside a guest room or privately owned
3139 dwelling unit for retrieval by a guest or resident.
3140 (13) An on-premise banquet licensee may not maintain a minibar.
3141 Section 38. Section 32B-6-706 is amended to read:
3142 32B-6-706. Specific operational requirements for on-premise beer retailer license.
3143 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3144 Requirements, an on-premise beer retailer and staff of the on-premise beer retailer shall comply
3145 with this section.
3146 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
3147 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3148 (i) an on-premise beer retailer;
3149 (ii) individual staff of an on-premise beer retailer; or
3150 (iii) both an on-premise beer retailer and staff of the on-premise beer retailer.
3151 (2) (a) An on-premise beer retailer is not subject to Section 32B-5-302, but shall make
3152 and maintain the records the department requires.
3153 (b) Section 32B-1-205 applies to a record required to be made or maintained in
3154 accordance with this Subsection (2).
3155 (3) Notwithstanding Section 32B-5-303, an on-premise beer retailer may not store or
3156 sell liquor on its licensed premises.
3157 [
3158
3159 [
3160 [
3161 (i) begins at 1 a.m.; and
3162 (ii) ends at 9:59 a.m.
3163 (b) (i) Notwithstanding Subsection [
3164 after the tavern ceases the sale and furnishing of beer during which time a patron of the tavern
3165 may finish consuming a single serving of beer not exceeding 26 ounces.
3166 (ii) A tavern is not required to remain open:
3167 (A) after all patrons have vacated the premises; or
3168 (B) during an emergency.
3169 [
3170 tavern.
3171 [
3172 purpose of resale, or sell beer except beer that the on-premise beer retailer lawfully purchases
3173 from:
3174 (A) a beer wholesaler licensee; or
3175 (B) a small brewer that manufactures the beer.
3176 (ii) Violation of Subsection [
3177 (b) (i) If an on-premise beer retailer purchases beer under this Subsection [
3178 a beer wholesaler licensee, the on-premise beer retailer shall purchase beer only from a beer
3179 wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area
3180 in which the on-premise beer retailer is located, unless an alternate wholesaler is authorized by
3181 the department to sell to the on-premise beer retailer as provided in Section 32B-13-301.
3182 (ii) Violation of Subsection [
3183 [
3184 Section 39. Section 32B-6-905 is amended to read:
3185 32B-6-905. Specific operational requirements for a beer-only restaurant license --
3186 Before July 1, 2018, or July 1, 2022.
3187 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3188 Requirements, a beer-only restaurant licensee and staff of the beer-only restaurant licensee
3189 shall comply with this section.
3190 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
3191 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3192 (i) a beer-only restaurant licensee;
3193 (ii) individual staff of a beer-only restaurant licensee; or
3194 (iii) both a beer-only restaurant licensee and staff of the beer-only restaurant licensee.
3195 (2) (a) A beer-only restaurant licensee on the licensed premises may not sell, offer for
3196 sale, furnish, or allow consumption of liquor.
3197 (b) Liquor may not be on the premises of a beer-only restaurant licensee except for use:
3198 (i) as a flavoring on a dessert; and
3199 (ii) in the preparation of a flaming food dish, drink, or dessert.
3200 (3) In addition to complying with Section 32B-5-303, a beer-only restaurant licensee
3201 shall store beer in a storage area described in Subsection (11)(a).
3202 (4) (a) An individual who serves beer in a beer-only restaurant licensee's premises shall
3203 make a written beverage tab for each table or group that orders or consumes an alcoholic
3204 product on the premises.
3205 (b) A beverage tab required by this Subsection (4) shall list the type and amount of
3206 beer ordered or consumed.
3207 (5) A person's willingness to serve beer may not be made a condition of employment as
3208 a server with a beer-only restaurant licensee.
3209 (6) A beer-only restaurant licensee may sell, offer for sale, or furnish beer at the
3210 licensed premises during the following time periods only:
3211 (a) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
3212 (b) on a weekend or a state or federal legal holiday or for a private event, during the
3213 period that begins at 10:30 a.m. and ends at 12:59 a.m.
3214 (7) (a) A beer-only restaurant may not sell, offer for sale, or furnish beer for on-premise
3215 consumption except after the beer-only restaurant licensee confirms that the patron has the
3216 intent to order food prepared, sold, and furnished at the licensed premises.
3217 (b) Notwithstanding Section 32B-5-307, a beer-only restaurant licensee may not sell,
3218 offer for sale, or furnish beer for off-premise consumption except after the patron consumes on
3219 the licensed premises food prepared, sold, and furnished at the licensed premises.
3220 [
3221 culinary facilities for food preparation and dining accommodations.
3222 (8) A patron may not have more than two beers at a time before the patron.
3223 (9) A patron may consume a beer on the beer-only restaurant licensee's licensed
3224 premises only:
3225 (a) at:
3226 (i) the patron's table;
3227 (ii) a grandfathered bar structure; or
3228 (iii) a counter; and
3229 (b) where food is served.
3230 (10) (a) A beer-only restaurant licensee may not sell, offer for sale, or furnish a beer to
3231 a patron, and a patron may not consume an alcoholic product at a bar structure.
3232 (b) Notwithstanding Subsection (10)(a), at a grandfathered bar structure, a patron who
3233 is 21 years [
3234 (i) sit;
3235 (ii) be furnished a beer; and
3236 (iii) consume a beer.
3237 (c) Except as provided in Subsection (10)(d), at a grandfathered bar structure, a
3238 beer-only restaurant licensee may not permit a minor to, and a minor may not:
3239 (i) sit; or
3240 (ii) consume food or beverages.
3241 (d) (i) A minor may be at a grandfathered bar structure if the minor is employed by a
3242 beer-only restaurant licensee:
3243 (A) as provided in Subsection 32B-5-308(2); or
3244 (B) to perform maintenance and cleaning services during an hour when the beer-only
3245 restaurant licensee is not open for business.
3246 (ii) A minor may momentarily pass by a grandfathered bar structure without remaining
3247 or sitting at the bar structure en route to an area of a beer-only restaurant licensee's premises in
3248 which the minor is permitted to be.
3249 (11) A beer-only restaurant licensee may dispense a beer only if:
3250 (a) the beer is dispensed from an area that is:
3251 (i) a grandfathered bar structure; or
3252 (ii) separated from an area for the consumption of food by a patron by a solid,
3253 translucent, permanent structural barrier such that the facilities for the storage or dispensing of
3254 an alcoholic product are not readily visible to a patron, not accessible by a patron, and apart
3255 from an area used for dining, for staging, or as a lobby or waiting area;
3256 (b) the beer-only restaurant licensee uses a beer that is:
3257 (i) stored in an area described in Subsection (11)(a); or
3258 (ii) in an area not described in Subsection (11)(a) on the licensed premises and:
3259 (A) immediately before the beer is dispensed it is in an unopened container;
3260 (B) the unopened container is taken to an area described in Subsection (11)(a) before it
3261 is opened; and
3262 (C) once opened, the container is stored in an area described in Subsection (11)(a) ; and
3263 (c) any instrument or equipment used to dispense the beer is located in an area
3264 described in Subsection (11)(a).
3265 (12) Beginning on July 1, 2018, a minor may not sit, remain, or consume food or
3266 beverages within 10 feet of a grandfathered bar structure, unless:
3267 (a) seating within 10 feet of the grandfathered bar structure is the only seating available
3268 in the licensed premises; and
3269 (b) the minor is accompanied by an individual who is 21 years [
3270 (13) Except as provided in Subsection 32B-6-905.1(15) and Section 32B-6-905.2, the
3271 provisions of this section apply before July 1, 2018.
3272 Section 40. Section 32B-6-905.1 is amended to read:
3273 32B-6-905.1. Specific operational requirements for a beer-only restaurant license
3274 -- On and after July 1, 2018, or July 1, 2022.
3275 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3276 Requirements, a beer-only restaurant licensee and staff of the beer-only restaurant licensee
3277 shall comply with this section.
3278 (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in
3279 accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3280 (i) a beer-only restaurant licensee;
3281 (ii) individual staff of a beer-only restaurant licensee; or
3282 (iii) both a beer-only restaurant licensee and staff of the beer-only restaurant licensee.
3283 (2) (a) A beer-only restaurant licensee on the licensed premises may not sell, offer for
3284 sale, furnish, or allow consumption of liquor.
3285 (b) Liquor may not be on the premises of a beer-only restaurant licensee except for use:
3286 (i) as a flavoring on a dessert; or
3287 (ii) in the preparation of a flaming food dish, drink, or dessert.
3288 (3) (a) An individual who serves beer in a beer-only restaurant licensee's premises shall
3289 make a beverage tab for each table or group that orders or consumes beer on the premises.
3290 (b) A beverage tab described in this Subsection (3) shall state the type and amount of
3291 each beer ordered or consumed.
3292 (4) A beer-only restaurant licensee may not make an individual's willingness to serve
3293 beer a condition of employment as a server with a beer-only restaurant licensee.
3294 (5) A beer-only restaurant licensee may sell, offer for sale, or furnish beer at the
3295 licensed premises during the following time periods only:
3296 (a) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
3297 (b) on a weekend or a state or federal legal holiday or for a private event, during the
3298 period that begins at 10:30 a.m. and ends at 12:59 a.m.
3299 (6) (a) A beer-only restaurant licensee may not furnish beer for on-premise
3300 consumption except after:
3301 (i) the patron to whom the beer-only restaurant licensee furnishes the beer is seated at:
3302 (A) a table that is located in a dining area or a dispensing area;
3303 (B) a counter that is located in a dining area or a dispensing area; or
3304 (C) a dispensing structure that is located in a dispensing area; and
3305 (ii) the beer-only restaurant licensee confirms that the patron intends to:
3306 (A) order food prepared, sold, and furnished at the licensed premises; and
3307 (B) except as provided in Subsection (6)(b), consume the food at the same location
3308 where the patron is seated and furnished the beer.
3309 (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
3310 beer-only restaurant licensee, the beer-only restaurant licensee may sell, offer for sale, or
3311 furnish to the patron one portion of beer as described in Section 32B-5-304 if:
3312 (A) the patron is in a dispensing area and seated at a table, counter, or dispensing
3313 structure; and
3314 (B) the beer-only restaurant licensee first confirms that after the patron is seated in the
3315 dining area, the patron intends to order food prepared, sold, and furnished at the licensed
3316 premises.
3317 (ii) If the patron does not finish the patron's beer before moving to a seat in the dining
3318 area, an employee of the beer-only restaurant licensee who is qualified to sell and serve an
3319 alcoholic product under Section 32B-5-306 shall transport any unfinished portion of the
3320 patron's beer to the patron's seat in the dining area.
3321 (c) Notwithstanding Section 32B-5-307, a beer-only restaurant licensee may not
3322 furnish beer for off-premise consumption except after the patron consumes on the licensed
3323 premises food prepared, sold, and furnished at the licensed premises.
3324 [
3325 adequate culinary facilities for food preparation and dining accommodations.
3326 (7) A patron may consume a beer on the beer-only licensee's licensed premises only at:
3327 (a) a table that is located in a dining area or a dispensing area;
3328 (b) a counter that is located in a dining area or a dispensing area; or
3329 (c) a dispensing structure located in a dispensing area.
3330 (8) A patron may not have more than two beers at a time before the patron.
3331 (9) In accordance with the provisions of this section, an individual who is at least 21
3332 years [
3333 (10) (a) Except as provided in Subsection (10)(b), a minor may not sit, remain, or
3334 consume food or beverages in a dispensing area.
3335 (b) (i) A minor may be in a dispensing area if the minor is:
3336 (A) at least 16 years [
3337 restaurant licensee; or
3338 (B) performing maintenance and cleaning services as an employee of the beer-only
3339 restaurant licensee when the beer-only restaurant licensee is not open for business.
3340 (ii) If there is no alternative route available, a minor may momentarily pass through a
3341 dispensing area without remaining or sitting in the dispensing area en route to an area of the
3342 beer-only restaurant licensee's premises in which the minor is permitted to be.
3343 (11) A beer-only restaurant licensee may dispense a beer only if:
3344 (a) the beer is dispensed from:
3345 (i) a dispensing structure that is located in a dispensing area;
3346 (ii) an area that is:
3347 (A) separated from an area for the consumption of food by a patron by a solid,
3348 translucent, permanent structural barrier such that the facilities for the dispensing of an
3349 alcoholic product are not readily visible to a patron and not accessible by a patron; and
3350 (B) apart from an area used for dining, for staging, or as a waiting area; or
3351 (iii) the premises of a bar licensee that is:
3352 (A) owned by the same person or persons as the beer-only restaurant licensee; and
3353 (B) located immediately adjacent to the premises of the beer-only restaurant licensee;
3354 and
3355 (b) any instrument or equipment used to dispense the beer is located in an area
3356 described in Subsection (11)(a).
3357 (12) (a) A beer-only restaurant licensee may have more than one dispensing area in the
3358 licensed premises.
3359 (b) Each dispensing area in a licensed premises may satisfy the requirements for a
3360 dispensing area under Subsection 32B-6-902(1)(b)(i)(A), (B), or (C), regardless of how any
3361 other dispensing area in the licensed premises satisfies the requirements for a dispensing area.
3362 (13) A beer-only restaurant licensee may not transfer, dispense, or serve beer on or
3363 from a movable cart.
3364 (14) (a) In addition to the requirements described in Section 32B-5-302, a beer-only
3365 restaurant licensee shall maintain each of the following records for at least three years:
3366 (i) a record required by Section 32B-5-302; and
3367 (ii) a record that the commission requires a beer-only restaurant licensee to use or
3368 maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
3369 Rulemaking Act.
3370 (b) The department shall audit the records of a beer-only restaurant licensee at least
3371 once [
3372 (15) (a) In accordance with Section 32B-6-905.2, a beer-only restaurant licensee:
3373 (i) may comply with the provisions of this section beginning on or after July 1, 2017;
3374 and
3375 (ii) shall comply with the provisions of this section:
3376 (A) for a beer-only restaurant licensee that does not have a grandfathered bar structure,
3377 on and after July 1, 2018; or
3378 (B) for a beer-only restaurant licensee that has a grandfathered bar structure, on and
3379 after July 1, 2022.
3380 (b) A beer-only restaurant licensee that elects to comply with the provisions of this
3381 section before the latest applicable date described in Subsection (15)(a)(ii):
3382 (i) shall comply with each provision of this section; and
3383 (ii) is not required to comply with the provisions of Section 32B-6-905.
3384 Section 41. Section 32B-6-905.2 is amended to read:
3385 32B-6-905.2. Transition process for beer-only restaurant licensees.
3386 (1) For a beer-only restaurant license issued on or after July 1, 2017, the beer-only
3387 restaurant licensee shall comply with the provisions of Section 32B-6-905.1.
3388 (2) For a beer-only restaurant license issued before July 1, 2017, before the beer-only
3389 restaurant licensee changes the beer-only restaurant licensee's approved location for storage,
3390 dispensing, or consumption to comply with the provisions of Section 32B-6-905.1, the
3391 beer-only restaurant licensee shall submit an application for approval to the department in
3392 accordance with Subsection 32B-5-303(3).
3393 (3) (a) Except as provided in Subsection (4), a person who holds a beer-only restaurant
3394 license issued before July 1, 2017, shall comply with the provisions of Section 32B-6-905.1 on
3395 or before July 1, 2018.
3396 (b) A beer-only restaurant licensee described in Subsection (3)(a) that cannot comply
3397 with the provisions of Section 32B-6-905.1 without a change to the beer-only restaurant
3398 licensee's approved location for storage, dispensing, or consumption:
3399 (i) may submit an application for approval described in Subsection (2) on or after May
3400 9, 2017; and
3401 (ii) shall submit an application for approval described in Subsection (2) on or before
3402 May 1, 2018.
3403 (c) If a beer-only restaurant licensee described in Subsection (3)(a) submits an
3404 application for approval described in Subsection (2) on May 9, 2017, the department shall take
3405 action on the application on or before July 1, 2017.
3406 (4) (a) A person who holds a beer-only restaurant license issued before July 1, 2017,
3407 and has a grandfathered bar structure shall comply with the provisions of Section 32B-6-905.1
3408 on or before the earlier of:
3409 (i) July 1, 2022;
3410 (ii) the date on which the beer-only restaurant licensee remodels, as defined by
3411 commission rule made in accordance with Title 63G, Chapter 3, Utah Administrative
3412 Rulemaking Act, the beer-only restaurant licensee's grandfathered bar structure or dining area;
3413 or
3414 (iii) the date on which the beer-only restaurant licensee experiences a change of
3415 ownership described in Subsection [
3416 (b) A beer-only restaurant licensee described in Subsection (4)(a) that cannot comply
3417 with the provisions of Section 32B-6-905.1 without a change to the beer-only restaurant
3418 licensee's approved location for storage, dispensing, or consumption:
3419 (i) may submit an application for approval described in Subsection (2) on or after May
3420 9, 2017; and
3421 (ii) shall submit an application for approval described in Subsection (2) on or before
3422 May 1, 2022.
3423 Section 42. Section 32B-6-1005 is amended to read:
3424 32B-6-1005. Specific operational requirements for hospitality amenity license.
3425 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3426 Requirements, a hospitality amenity licensee and staff of the hospitality amenity licensee shall
3427 comply with this section.
3428 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
3429 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3430 (i) the hospitality amenity licensee;
3431 (ii) individual staff of the hospitality amenity licensee; or
3432 (iii) both the hospitality amenity licensee and staff of the hospitality amenity licensee.
3433 (2) (a) A hospitality amenity licensee may sell, offer for sale, or furnish an alcoholic
3434 product:
3435 (i) to a hospitality guest; and
3436 (ii) for consumption in or on the hospitality amenity licensee's licensed premises.
3437 (b) (i) A hospitality amenity licensee may sell, offer for sale, or furnish an alcoholic
3438 product that is not spirituous liquor in or on:
3439 (A) licensed premises physically separated from an area to which a hospitality guest or
3440 the public has access by a permanent or temporary structure or barrier; or
3441 (B) licensed premises described in Subsection (2)(b)(ii).
3442 (ii) A hospitality amenity licensee may sell, offer for sale, or furnish spirituous liquor
3443 in or on licensed premises that:
3444 (A) allows access only through the use of a key or code; and
3445 (B) fills the entirety of a physically and permanently enclosed area within the hotel or
3446 resort.
3447 (c) Spirituous liquor may not be in or on the licensed premises described in Subsection
3448 (2)(b)(i)(A) of a hospitality amenity licensee, except for use:
3449 (i) as a flavoring on a dessert; and
3450 (ii) in the preparation of a flaming food dish or dessert.
3451 (d) A hospitality amenity licensee may not allow self-service of an alcoholic product in
3452 or on the hospitality amenity licensee's licensed premises.
3453 (3) (a) Subject to Subsections (3)(b) and (c), a hospitality guest may not have more
3454 than two alcoholic products of any kind at a time before the hospitality guest.
3455 (b) A hospitality guest may not have more than one spirituous liquor drink at a time
3456 before the hospitality guest.
3457 (c) An individual portion of wine is considered to be one alcoholic product under
3458 Subsection (3)(a).
3459 (4) A hospitality amenity licensee shall make food available at all times that the
3460 licensee sells, offers for sale, furnishes, or allows the consumption of an alcoholic product on
3461 the licensed premises.
3462 (5) (a) A hospitality amenity licensee may not sell, offer for sale, or furnish an
3463 alcoholic product any day during a period that:
3464 (i) begins at 1:00 a.m.; and
3465 (ii) ends at 9:59 a.m.
3466 (b) A hospitality amenity licensee shall remain open for one hour after the licensee
3467 ceases to sell and furnish an alcoholic product, during which time a hospitality guest in or on
3468 the hospitality amenity licensed premises may finish consuming:
3469 (i) a single drink containing spirituous liquor;
3470 (ii) a single serving of wine not exceeding five ounces;
3471 (iii) a single serving of heavy beer;
3472 (iv) a single serving of beer not exceeding 26 ounces; or
3473 (v) a single serving of a flavored malt beverage.
3474 (c) A hospitality amenity licensee is not required to remain open:
3475 (i) after all individuals have vacated the licensee's licensed premises; or
3476 (ii) during an emergency.
3477 (6) (a) Notwithstanding Section 32B-5-305, a hospitality amenity licensee may provide
3478 a hospitality guest up to two single servings of an alcoholic product free of charge or at a
3479 reduced rate, if:
3480 (i) the alcoholic product is not a spirituous liquor; and
3481 (ii) the hospitality amenity licensee offers the alcohol product:
3482 (A) to all hospitality guests;
3483 (B) during a specific time; and
3484 (C) on the hospitality amenity licensee's licensed premises.
3485 (b) Before a hospitality amenity licensee provides an alcoholic product free of charge
3486 or at a reduced rate as described in Subsection (6)(a), the licensee shall provide the department
3487 with advance notice of the event, in accordance with commission rules that permit a licensee to
3488 provide a single notice for a reoccurring event or multiple events.
3489 (7) A hospitality amenity licensee may permit a hospitality guest to purchase an
3490 alcoholic product through a charge to the hospitality guest's lodging accommodations.
3491 (8) (a) [
3492 than the hospitality amenity licensee or staff of the hospitality amenity licensee, may not
3493 remove an alcoholic product from the hospitality amenity licensee's licensed premises.
3494 (b) Notwithstanding Subsection 32B-5-307(3), a hospitality guest may not bring an
3495 alcoholic product within the hospitality amenity licensee's licensed premises.
3496 (9) A hospitality amenity licensee shall display at each entrance to the licensee's
3497 licensed premises a conspicuous sign that:
3498 (a) measures at least 8-1/2 inches long and 11 inches wide; and
3499 (b) clearly states that entry is limited to individuals who are hospitality guests, as
3500 defined in this title.
3501 (10) A hospitality amenity licensee may not permit a minor to enter the licensee's
3502 licensed premises at any time during which an alcoholic product is sold, offered for sale,
3503 furnished, or consumed, unless the minor is accompanied at all times on the licensed premises
3504 by a hospitality guest.
3505 (11) A staff person of a hospitality amenity licensee shall remain on the licensed
3506 premises at all times when an alcoholic product is sold, offered for sale, furnished, or
3507 consumed in or on the licensed premises.
3508 (12) A hospitality amenity licensee may transfer an alcoholic product to or from
3509 another licensee within the boundary of the hotel or within the boundary of the resort building,
3510 if:
3511 (a) the hospitality amenity licensee and each licensee involved in the transfer tracks the
3512 transfer of the alcoholic product; and
3513 (b) the alcoholic product is in a sealed, unopened container.
3514 (13) (a) In addition to the requirements described in Section 32B-5-302, a hospitality
3515 amenity licensee shall maintain each of the following records for at least three years:
3516 (i) a record required under Section 32B-5-302; and
3517 (ii) a record that the commission requires a hospitality amenity licensee to use or
3518 maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
3519 Rulemaking Act.
3520 (b) The department shall audit the records of a hospitality amenity licensee at least
3521 once [
3522 Section 43. Section 32B-7-202 is amended to read:
3523 32B-7-202. General operational requirements for off-premise beer retailer.
3524 (1) (a) An off-premise beer retailer or staff of the off-premise beer retailer shall comply
3525 with the provisions of this title and any applicable rules made by the commission.
3526 (b) Failure to comply with this section may result in a suspension or revocation of a
3527 local license and, on or after July 1, 2018, disciplinary action in accordance with Chapter 3,
3528 Disciplinary Actions and Enforcement Act.
3529 (2) (a) (i) An off-premise beer retailer may not purchase, acquire, possess for the
3530 purpose of resale, or sell beer, except beer that the off-premise beer retailer lawfully purchases
3531 from:
3532 (A) a beer wholesaler licensee; or
3533 (B) a small brewer that manufactures the beer.
3534 (ii) A violation of Subsection (2)(a) is a class A misdemeanor.
3535 (b) (i) If an off-premise beer retailer purchases beer under this Subsection (2) from a
3536 beer wholesaler licensee, the off-premise beer retailer shall purchase beer only from a beer
3537 wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area
3538 in which the off-premise beer retailer is located, unless an alternate wholesaler is authorized by
3539 the department to sell to the off-premise beer retailer as provided in Section 32B-13-301.
3540 (ii) A violation of Subsection (2)(b) is a class B misdemeanor.
3541 (3) An off-premise beer retailer may not possess, sell, offer for sale, or furnish beer in a
3542 container larger than two liters.
3543 (4) (a) Staff of an off-premise beer retailer, while on duty, may not:
3544 (i) consume an alcoholic product; or
3545 (ii) be intoxicated.
3546 (b) A minor may not sell beer on the licensed premises of an off-premise beer retailer
3547 unless:
3548 (i) the sale is done under the supervision of a person 21 years [
3549 is on the licensed premises; and
3550 (ii) the minor is at least 16 years [
3551 (5) An off-premise beer retailer may not sell, offer for sale, or furnish an alcoholic
3552 product to:
3553 (a) a minor;
3554 (b) a person actually, apparently, or obviously intoxicated;
3555 (c) a known interdicted person; or
3556 (d) a known habitual drunkard.
3557 (6) (a) Subject to the other provisions of this Subsection (6), an off-premise beer
3558 retailer shall:
3559 (i) display all beer accessible by and visible to a patron in no more than two locations
3560 on the retail sales floor, each of which is:
3561 (A) a display cabinet, cooler, aisle, floor display, or room where beer is the only
3562 beverage displayed; and
3563 (B) not adjacent to a display of nonalcoholic beverages, unless the location is a cooler
3564 with a door from which the nonalcoholic beverages are not accessible, or the beer is separated
3565 from the display of nonalcoholic beverages by a display of one or more nonbeverage products
3566 or another physical divider; and
3567 (ii) display a sign in the area described in Subsection (6)(a)(i) that:
3568 (A) is prominent;
3569 (B) is easily readable by a consumer;
3570 (C) meets the requirements for format established by the commission by rule; and
3571 (D) reads in print that is no smaller than .5 inches, bold type, "These beverages contain
3572 alcohol. Please read the label carefully."
3573 (b) Notwithstanding Subsection (6)(a), a nonalcoholic beer may be displayed with beer
3574 if the nonalcoholic beer is labeled, packaged, or advertised as a nonalcoholic beer.
3575 (c) The requirements of this Subsection (6) apply to beer notwithstanding that it is
3576 labeled, packaged, or advertised as:
3577 (i) a malt cooler; or
3578 (ii) a beverage that may provide energy.
3579 (d) A violation of this Subsection (6) is an infraction.
3580 (e) (i) Except as provided in Subsection (6)(e)(ii), the provisions of Subsection (6)(a)(i)
3581 apply on and after May 9, 2017.
3582 (ii) For a beer retailer that operates two or more off-premise beer retailers, the
3583 provisions of Subsection (6)(a)(i) apply on and after August 1, 2017.
3584 (7) (a) Staff of an off-premise beer retailer who directly supervises the sale of beer or
3585 who sells beer to a patron for consumption off the premises of the off-premise beer retailer
3586 shall wear a unique identification badge:
3587 (i) on the front of the staff's clothing;
3588 (ii) visible above the waist;
3589 (iii) bearing the staff's:
3590 (A) first or last name;
3591 (B) initials; or
3592 (C) unique identification in letters or numbers; and
3593 (iv) with the number or letters on the unique identification badge being sufficiently
3594 large to be clearly visible and identifiable while engaging in or directly supervising the retail
3595 sale of beer.
3596 (b) An off-premise beer retailer shall make and maintain a record of each current staff's
3597 unique identification badge assigned by the off-premise beer retailer that includes the staff's:
3598 (i) full name;
3599 (ii) address; and
3600 (iii) (A) driver license number; or
3601 (B) similar identification number.
3602 (c) An off-premise beer retailer shall make available a record required to be made or
3603 maintained under this Subsection (7) for immediate inspection by:
3604 (i) a peace officer;
3605 (ii) a representative of the local authority that issues the off-premise beer retailer
3606 license; or
3607 (iii) for an off-premise beer retailer state license, a representative of the commission or
3608 department.
3609 (d) A local authority may impose a fine of up to $250 against an off-premise beer
3610 retailer that does not comply or require its staff to comply with this Subsection (7).
3611 (8) (a) An off-premise beer retailer may sell, offer for sale, or furnish beer through a
3612 drive through window.
3613 (b) Subsection (8)(a) does not modify the display limitations and requirements
3614 described in Subsection (6).
3615 (9) An off-premise beer retailer may not on the licensed premises:
3616 (a) engage in or permit any form of:
3617 (i) gambling, as defined in Section 76-10-1101; or
3618 (ii) fringe gambling, as defined in Section 76-10-1101;
3619 (b) have any fringe gaming device, video gaming device, or gambling device or record
3620 as defined in Section 76-10-1101; or
3621 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
3622 the risking of something of value for a return or for an outcome when the return or outcome is
3623 based upon an element of chance, excluding the playing of an amusement device that confers
3624 only an immediate and unrecorded right of replay not exchangeable for value.
3625 (10) An off-premise beer retailer may not knowingly allow a person on the licensed
3626 premises to, in violation of Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter
3627 37a, Utah Drug Paraphernalia Act:
3628 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
3629 58-37-2; or
3630 (b) use, deliver, or possess, with the intent to deliver, drug paraphernalia, as defined in
3631 Section 58-37a-3.
3632 Section 44. Section 32B-7-305 is amended to read:
3633 32B-7-305. Tracking of enforcement actions -- Costs of enforcement actions.
3634 [
3635
3636 [
3637
3638 [
3639 [
3640 [
3641
3642 [
3643 [
3644
3645 [
3646
3647
3648 [
3649
3650 [
3651
3652 [
3653
3654 [
3655
3656
3657 [
3658
3659
3660
3661
3662
3663 [
3664
3665
3666
3667
3668
3669
3670
3671 [
3672 municipal or county law enforcement agency:
3673 (a) for the actual costs of an alcohol-related compliance check investigation conducted
3674 pursuant to Section 77-39-101 on the premises of an off-premise beer retailer;
3675 (b) for administrative costs associated with reporting the compliance check
3676 investigation described in Subsection [
3677 (c) if the municipal or county law enforcement agency completes and submits to the
3678 Department of Public Safety a report within 90 days [
3679 check investigation described in Subsection [
3680 Department of Public Safety; and
3681 (d) in the order that the municipal or county law enforcement agency submits the report
3682 required by Subsection [
3683 Safety to reimburse a municipal or county law enforcement agency is spent.
3684 [
3685
3686
3687 [
3688 [
3689
3690 (2) By no later than October 1 of each year, the Department of Public Safety shall
3691 report to the Utah Substance Use and Mental Health Advisory Council on the compliance
3692 check investigations:
3693 (a) funded during the previous fiscal year; and
3694 (b) reimbursed under Subsection (1).
3695 Section 45. Section 32B-8-201 is amended to read:
3696 32B-8-201. Commission's power to issue a resort license.
3697 (1) Before a person as a resort under a single license may store, sell, offer for sale,
3698 furnish, or allow the consumption of an alcoholic product on sublicense premises, the person
3699 shall first obtain a resort license from the commission in accordance with this part.
3700 (2) (a) The commission may issue to a person a resort license to allow the storage, sale,
3701 offer for sale, furnishing, and consumption of an alcoholic product in connection with a resort
3702 designated in the resort license if the person operates at least four sublicenses under the resort
3703 license.
3704 (b) A resort license shall:
3705 (i) consist of:
3706 (A) a general resort license; and
3707 (B) four or more sublicenses; and
3708 (ii) designate the boundary of the resort building.
3709 (c) This chapter does not prohibit an alcoholic product in or on the boundary of the
3710 resort building to the extent otherwise permitted by this title.
3711 (3) The commission may not issue a total number of resort licenses that at any time
3712 totals more than [
3713 Section 46. Section 32B-8b-301 is amended to read:
3714 32B-8b-301. Specific operational requirements for hotel license.
3715 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3716 Requirements, a hotel licensee, staff of the hotel licensee, and a sublicensee or person
3717 otherwise operating under a sublicense shall comply with this section.
3718 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
3719 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3720 (i) the hotel licensee;
3721 (ii) individual staff of the hotel licensee;
3722 (iii) a sublicensee or person otherwise operating under a sublicense of the hotel
3723 licensee;
3724 (iv) individual staff of a sublicensee or person otherwise operating under a sublicense
3725 of the hotel licensee; or
3726 (v) any combination of the persons listed in this Subsection (1)(b).
3727 (2) (a) A hotel licensee may not sell, offer for sale, or furnish an alcoholic product
3728 except:
3729 (i) on sublicensed premises;
3730 (ii) pursuant to a permit issued under this title; or
3731 (iii) under a package agency agreement with the department, subject to Chapter 2, Part
3732 6, Package Agency.
3733 (b) A hotel licensee who sells, offers for sale, or furnishes an alcoholic product as
3734 provided in Subsection (2)(a) shall sell, offer for sale, or furnish the alcoholic product:
3735 (i) if on sublicensed premises, in accordance with the operational requirements
3736 described in Section 32B-8d-104;
3737 (ii) if under a permit issued under this title, in accordance with the operational
3738 requirements under the provisions applicable to the permit; and
3739 (iii) if as a package agency, in accordance with the contract with the department and
3740 Chapter 2, Part 6, Package Agency.
3741 (c) Notwithstanding the other provisions of this Subsection (2) and except as provided
3742 in Section 32B-8d-104, a hotel licensee may not permit a patron to carry an alcoholic product
3743 off the premises of a sublicense in violation of Section 32B-5-307 or off an area designated
3744 under a permit.
3745 (3) A hotel licensee shall supervise and direct a person involved in the sale, offer for
3746 sale, or furnishing of an alcoholic product under a hotel license.
3747 (4) (a) Room service of an alcoholic product to a lodging accommodation of a hotel
3748 licensee shall be provided in person by staff of the hotel licensee only to an adult occupant in
3749 the lodging accommodation.
3750 (b) An alcoholic product may not be left outside a lodging accommodation for retrieval
3751 by an occupant.
3752 (5) A hotel licensee shall operate in a manner so that at least 70% of the annual
3753 aggregate of the gross receipts related to the sale of food or beverages for the hotel license and
3754 each of the hotel license's sublicenses is from the sale of food, not including:
3755 (a) mix for an alcoholic product; and
3756 (b) a charge in connection with the service of an alcoholic product.
3757 Section 47. Section 32B-8c-202 is amended to read:
3758 32B-8c-202. Specific licensing requirements for arena license.
3759 (1) To obtain an arena license, in addition to complying with Chapter 5, Part 2, Retail
3760 Licensing Process, a person shall submit with the person's written application:
3761 (a) evidence:
3762 (i) of proximity of the arena to any community location;
3763 (ii) that each proposed sublicense premises is entirely within the arena; and
3764 (iii) that the building designated in the application as the arena qualifies as an arena;
3765 and
3766 (b) a description and map of the arena.
3767 (2) (a) An arena license expires on October 31 of each year.
3768 (b) To renew a person's arena license, the person shall comply with the requirements of
3769 Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
3770 (3) (a) The nonrefundable application fee for an arena license is $500.
3771 (b) The initial license fee for an arena license is calculated as follows:
3772 (i) if the person applies for three sublicenses under the arena license, $5,000; or
3773 (ii) if the person applies for more than three sublicenses under the arena license, the
3774 sum of:
3775 (A) $5,000; and
3776 (B) $1,000 for each sublicense in excess of three sublicenses for which the person
3777 applies.
3778 (c) The renewal fee for an arena license is $1,000 plus $1,000 for each sublicense
3779 under the arena license.
3780 (4) (a) The bond amount required for an arena license is the penal sum of $100,000.
3781 (b) An arena licensee is not required to have a separate bond for each sublicense,
3782 except that the aggregate of the bonds posted by the arena licensee shall cover each sublicense
3783 under the arena license.
3784 (5) [
3785 32B-1-202.1(4), an arena may request to add a sublicense after the commission issues the arena
3786 licensee's arena license, in accordance with Subsection 32B-8d-103(4).
3787 Section 48. Section 32B-8d-102 is amended to read:
3788 32B-8d-102. Definitions.
3789 As used in this chapter:
3790 [
3791 (1) "Boundary of a hotel" means the same as that term is defined in Section
3792 32B-8b-102.
3793 (2) "Boundary of a resort building" means the same as that term is defined in Section
3794 32B-8b-102.
3795 (3) "Hotel" means the same as that term is defined in Section 32B-8b-102.
3796 [
3797 32B-8-102.
3798 [
3799 (a) as the commission defines by rule made in accordance with Title 63G, Chapter 3,
3800 Utah Administrative Rulemaking Act; and
3801 (b) that is within the:
3802 (i) boundary of a resort building[
3803 (ii) boundary of a hotel.
3804 Section 49. Section 32B-8d-103 is amended to read:
3805 32B-8d-103. Commission's power to issue a sublicense.
3806 (1) Before a person as a sublicensee may store, sell, offer for sale, furnish, or allow the
3807 consumption of an alcoholic product on sublicensed premises, the person shall first obtain a
3808 sublicense from the commission in accordance with:
3809 (a) this chapter;
3810 (b) Chapter 8, Resort License Act;
3811 (c) Chapter 8b, Hotel License Act; and
3812 (d) Chapter 8c, Arena License Act.
3813 (2) (a) The commission may issue to a person a sublicense to allow the storage, sale,
3814 offering for sale, furnishing, or consumption of an alcoholic product on the premises of the
3815 sublicense, if the person is:
3816 (i) a principal licensee; or
3817 (ii) a person seeking a principal license, contingent on the issuance of the principal
3818 license.
3819 (b) The commission may not:
3820 (i) issue a sublicense that is separate from a principal license; or
3821 (ii) issue a single sublicense that covers more than one outlet in or on the boundaries of
3822 the principal licensee.
3823 (3) (a) [
3824 when determining the total number of licenses the commission has issued for each type of retail
3825 license, the commission may not include a sublicense as one of the retail licenses issued under
3826 the provisions applicable to that sublicense.
3827 [
3828
3829
3830
3831 [
3832 license was a retail license that was not a bar establishment license, the commission shall
3833 include the sublicense as a license in calculating the total number of licenses issued under the
3834 provisions applicable to the sublicense.
3835 (4) If a principal licensee seeks to add a sublicense after the commission issues the
3836 person's principal license, the principal licensee shall file with the department:
3837 (a) a nonrefundable $300 application fee;
3838 (b) an initial license fee of $2,250, which the commission shall refund if the
3839 commission does not issue the proposed sublicense;
3840 (c) written consent of the local authority;
3841 (d) a copy of:
3842 (i) the principal licensee's current business; and
3843 (ii) the proposed sublicensee's current business license, if the relevant political
3844 subdivision determines that the proposed sublicensee's business license is separate from the
3845 principal licensee's business license;
3846 (e) evidence that the proposed sublicensed premises is entirely within the boundary of
3847 the principal license;
3848 (f) a description, floor plan, and boundary map of the proposed sublicensed premises
3849 designating:
3850 (i) each location at which the principal licensee proposes that an alcoholic product be
3851 stored; and
3852 (ii) each location from which the principal licensee proposes that an alcoholic product
3853 be sold, furnished, or consumed;
3854 (g) evidence that the principal licensee carries:
3855 (i) public liability insurance in an amount and form satisfactory to the department; and
3856 (ii) dramshop insurance coverage in the amount required by Section 32B-5-201 that
3857 covers the proposed sublicense;
3858 (h) a signed consent form stating that the principal licensee will permit any authorized
3859 representative of the commission or department, or any law enforcement officer, to have an
3860 unrestricted right to enter the proposed sublicensed premises;
3861 (i) if the principal licensee is an entity, proper verification evidencing that a person
3862 who signs the application is authorized to sign on behalf of the entity; and
3863 (j) any other information the commission or department may require.
3864 Section 50. Section 32B-8d-104 is amended to read:
3865 32B-8d-104. General operational requirements for a sublicense.
3866 (1) Except as provided in Subsections (2) through (4), a person operating under a
3867 sublicense is subject to the operational requirements under the provisions applicable to the
3868 sublicense.
3869 (2) Notwithstanding a requirement in the provisions applicable to the sublicense, a
3870 person operating under the sublicense is not subject to a requirement that a certain percentage
3871 of the gross receipts for the sublicense be from the sale of food, except to the extent that the
3872 gross receipts for the sublicense are included in calculating the percentages under Subsections
3873 32B-8-401(3), 32B-8b-301(5), and 32B-8c-301(3).
3874 (3) Notwithstanding Sections 32B-6-202 and 32B-6-302, a bar structure in a
3875 sublicensed premises operated under a full-service restaurant sublicense or a limited-service
3876 restaurant sublicense is considered a grandfathered bar structure if the sublicense is a
3877 sublicense to a resort license issued on or before December 31, 2010.
3878 (4) Notwithstanding Section 32B-5-307:
3879 (a) a patron may transport beer between the sublicensed premises of an arena licensee's
3880 accompanying sublicenses, if the patron transports the beer from and to an area of each
3881 sublicensed premises:
3882 (i) that is adjacent to the other; and
3883 (ii) where the consumption of beer is permitted; and
3884 (b) staff of a sublicensee or person otherwise operating under a sublicense of a hotel
3885 licensee or a resort licensee may transport an alcoholic beverage from and to sublicensed
3886 premises of the hotel license or resort license, if:
3887 (i) the sublicensee is:
3888 (A) a full-service restaurant sublicensee;
3889 (B) a limited-service restaurant sublicensee;
3890 (C) a bar establishment sublicensee;
3891 (D) a beer-only restaurant sublicensee; or
3892 (E) an on-premise beer retailer sublicensee;
3893 (ii) the individual staff carries the alcoholic beverage:
3894 (A) from the sublicensed premises of a sublicensee described in Subsection (4)(b)(i);
3895 (B) briefly through an unlicensed area or briefly through sublicensed premises on
3896 which the type of alcoholic beverage that the individual staff carries is permitted; and
3897 (C) to the sublicensed premises of a sublicensee described in Subsection (4)(b)(i); and
3898 (iii) the individual staff at all times stays within:
3899 (A) the boundary of the hotel[
3900 (B) the boundary of the resort building[
3901 (5) Except as provided in Section 32B-8-502, for purposes of interpreting an
3902 operational requirement imposed by the provisions applicable to a sublicense:
3903 (a) a requirement imposed on a sublicensee or person operating under a sublicense
3904 applies to the principal licensee; and
3905 (b) a requirement imposed on staff of a sublicensee or person operating under a
3906 sublicense applies to staff of the principal licensee.
3907 Section 51. Section 32B-8d-201 is amended to read:
3908 32B-8d-201. Title.
3909 This part is known as "[
3910 Section 52. Section 32B-8d-202 is amended to read:
3911 32B-8d-202. Commission's power to issue a spa sublicense.
3912 (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
3913 an alcoholic product on the person's premises as a [
3914 hotel licensee, or a person applying for a resort license or a hotel license shall first obtain a
3915 [
3916 (2) The commission may only issue a [
3917 (a) a resort licensee; [
3918 (b) a hotel licensee;
3919 [
3920 license[
3921 (d) a person applying for a hotel license, contingent on the issuance of the hotel license.
3922 (3) [
3923 (a) boundary of a resort building that is part of the resort to which the [
3924 sublicense is connected[
3925 (b) boundary of a hotel that is part of the hotel to which the spa sublicense is
3926 connected.
3927 Section 53. Section 32B-8d-203 is amended to read:
3928 32B-8d-203. Specific licensing requirements for spa sublicense.
3929 (1) (a) In accordance with Subsection 32B-8d-103(2), a person may not file a written
3930 application with the department to obtain a [
3931 person's application [
3932 [
3933 (b) If a resort licensee or a hotel licensee seeks to add a [
3934 [
3935 with Subsection 32B-8d-103(4).
3936 (2) (a) A [
3937 (b) [
3938 sublicense, the corresponding resort licensee or hotel licensee shall renew the [
3939 sublicense as part of renewing the licensee's resort license or hotel license.
3940 (c) (i) Failure of a resort licensee to meet the renewal requirements for a resort license
3941 results in an automatic forfeiture of the [
3942 which the resort license expires.
3943 (ii) Failure of a hotel licensee to meet the renewal requirements for a hotel license
3944 results in an automatic forfeiture of the spa sublicense effective the day on which the hotel
3945 license expires.
3946 Section 54. Section 32B-8d-204 is amended to read:
3947 32B-8d-204. Specific qualifications for a spa sublicense.
3948 (1) A person employed to act in a supervisory or managerial capacity for the [
3949 spa sublicense is subject to qualification requirements of Section 32B-1-304 for licensees.
3950 (2) If a person no longer possesses the qualifications required by Section 32B-1-304 for
3951 obtaining the [
3952 hotel license, the commission may suspend or revoke the [
3953 the resort license or hotel license.
3954 Section 55. Section 32B-8d-205 is amended to read:
3955 32B-8d-205. Specific operational requirements for a spa sublicense.
3956 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3957 Requirements, a resort licensee [
3958 the hotel licensee, shall comply with this section.
3959 (b) A [
3960 sublicense and staff of a [
3961 [
3962 (i) Chapter 5, Part 3, Retail Licensee Operational Requirements as if the [
3963 sublicensee is a retail licensee, unless a provision conflicts with this chapter; and
3964 (ii) this chapter.
3965 (c) Subject to Section 32B-8-502, failure to comply as provided in Subsection (1)(a)
3966 may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
3967 Enforcement Act, against:
3968 (i) a resort licensee;
3969 (ii) staff of [
3970 (iii) a hotel licensee;
3971 (iv) staff of a hotel licensee;
3972 [
3973 sublicense;
3974 [
3975 under a [
3976 [
3977 (vi).
3978 (2) (a) For purposes of the [
3979 hotel licensee shall ensure that a record is maintained or used for the [
3980 (i) as the department requires; and
3981 (ii) for a minimum period of three years.
3982 (b) A [
3983 representative of the commission and the department.
3984 (c) A resort licensee or a hotel licensee shall allow the department, through a
3985 compliance officer of the department, to audit the records for a [
3986 times the department considers advisable.
3987 (d) The department shall audit the records for a [
3988 annually.
3989 (e) Section 32B-1-205 applies to a record required to be made, maintained, or used in
3990 accordance with this Subsection (2).
3991 (3) (a) A [
3992 may not sell, offer for sale, or furnish liquor at a [
3993 (i) begins at 1 a.m.; and
3994 (ii) ends at 9:59 a.m.
3995 (b) A [
3996 sell, offer for sale, or furnish beer during the hours specified in Chapter 6, Part 7, On-Premise
3997 Beer Retailer License, for an on-premise beer retailer.
3998 (c) (i) Notwithstanding Subsections (3)(a) and (b), a [
3999 one hour after the [
4000 which time a person at the [
4001 (A) a single drink containing spirituous liquor;
4002 (B) a single serving of wine not exceeding five ounces;
4003 (C) a single serving of heavy beer;
4004 (D) a single serving of beer not exceeding 26 ounces; or
4005 (E) a single serving of a flavored malt beverage.
4006 (ii) A [
4007 (A) after all individuals have vacated the [
4008 premises; or
4009 (B) during an emergency.
4010 (4) (a) A minor may not be admitted into, use, or be on the sublicensed premises of a
4011 [
4012 (b) A minor permitted under Subsection (4)(a) to be admitted into, use, or be on the
4013 sublicensed premises of a [
4014 (i) may only be admitted into or be on a lounge or bar area of the [
4015 sublicensee's sublicensed premises momentarily while en route to another area of the [
4016 spa; and
4017 (ii) may not remain or sit in the lounge or bar area of the [
4018 sublicensed premises.
4019 (5) A [
4020 product is sold, offered for sale, furnished, or consumed on the [
4021 sublicensed premises.
4022 (6) (a) Subject to the other provisions of this Subsection (6), a patron may not have
4023 more than two alcoholic products of any kind at a time before the patron.
4024 (b) A [
4025 spa patron if one of the spirituous liquor drinks consists only of the primary spirituous liquor
4026 for the other spirituous liquor drink.
4027 (c) An individual portion of wine is considered to be one alcoholic product under this
4028 Subsection (6).
4029 (7) (a) An alcoholic product may only be consumed at a table or counter.
4030 (b) An alcoholic product may not be served to or consumed by a patron at a dispensing
4031 structure.
4032 (8) (a) A [
4033 shall have available on the [
4034 at the time that the patron requests it, a written alcoholic product price list or a menu containing
4035 the price of an alcoholic product sold or furnished by the [
4036 (i) a set-up charge;
4037 (ii) a service charge; or
4038 (iii) a chilling fee.
4039 (b) A charge or fee made in connection with the sale, service, or consumption of liquor
4040 may be stated in food or alcoholic product menus including:
4041 (i) a set-up charge;
4042 (ii) a service charge; or
4043 (iii) a chilling fee.
4044 (9) (a) A resort licensee or hotel licensee shall own or lease premises suitable for the
4045 [
4046 (b) A resort licensee or hotel licensee may not maintain premises in a manner that
4047 barricades or conceals the [
4048 (10) Subject to the other provisions of this section, a [
4049 operating under a [
4050 individual to be admitted to or use the [
4051 than:
4052 (a) a resident; or
4053 (b) a customer.
4054 Section 56. Section 32B-9-303 is amended to read:
4055 32B-9-303. Director's power to issue single event permit.
4056 (1) Before a person may sell, offer for sale, or furnish liquor at retail for on-premise
4057 consumption at an event, the person shall first obtain a single event permit from the director in
4058 accordance with this part.
4059 (2) (a) Subject to Subsection (5), the director may issue a single event permit to any of
4060 the following that is conducting a convention, civic, or community enterprise, a bona fide:
4061 (i) partnership;
4062 (ii) corporation;
4063 (iii) limited liability company;
4064 (iv) religious organization;
4065 (v) political organization;
4066 (vi) incorporated association;
4067 (vii) recognized subordinate lodge, chapter, or other local unit of an entity described in
4068 this Subsection (2)(a);
4069 (viii) state agency; or
4070 (ix) political subdivision of the state.
4071 (b) The director may not issue a single event permit to an entity that has not been in
4072 existence as a bona fide entity for at least one year before the day on which the entity applies
4073 for a single event permit.
4074 (3) (a) A single event permit may authorize:
4075 (i) the storage, sale, offering for sale, furnishing, and consumption of liquor at an event
4076 at which the storage, sale, offering for sale, furnishing, or consumption of liquor is otherwise
4077 prohibited by this title under either:
4078 (A) a 120 hour single event permit; or
4079 (B) a 72 hour single event permit; and
4080 (ii) the storage, sale, offer for sale, furnishing, and consumption of beer at the same
4081 event for the period that the storage, sale, offer for sale, furnishing, or consumption of liquor is
4082 authorized under Subsection (3)(a)(i) for the single event permit.
4083 (b) The single event permit shall state in writing whether [
4084 (i) a 120 hour single event permit; or
4085 (ii) a 72 hour single event permit.
4086 (4) The director may not issue more than:
4087 (a) four single event permits in any one calendar year to the same person listed in
4088 Subsection (2) if one or more of the single event permits is a 120 hour single event permit; or
4089 (b) [
4090 Subsection (2) if each of the single event permits issued to that person is a 72 hour single event
4091 permit.
4092 (5) Before the director issues or denies the issuance of a single event permit under this
4093 section, the director shall comply with Section 32B-9-202.
4094 Section 57. Section 32B-10-206 is amended to read:
4095 32B-10-206. General operational requirements for special use permit.
4096 (1) (a) A special use permittee and staff of the special use permittee shall comply with
4097 this title and rules of the commission, including the relevant part of the chapter that applies to
4098 the type of special use permit held by the special use permittee.
4099 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
4100 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
4101 (i) a special use permittee;
4102 (ii) individual staff of a special use permittee; or
4103 (iii) a special use permittee and staff of the special use permittee.
4104 (c) The commission may suspend or revoke a special use permit with or without cause.
4105 (2) (a) If there is a conflict between this part and the relevant part under this chapter for
4106 the specific type of special use permit, the relevant part under this chapter governs.
4107 (b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," a
4108 special use permittee may only purchase, use, store, sell, offer for sale, allow consumption, or
4109 manufacture an alcoholic product authorized for the special use permit that is held by the
4110 special use permittee.
4111 (c) Notwithstanding that this part or the relevant part under this chapter for the type of
4112 special use permit held by a special use permittee refers to "special use permittee," a person
4113 involved in the purchase, use, storage, sale, offering for sale, allowing consumption, or
4114 manufacture of an alcoholic product for which the special use permit is issued is subject to the
4115 same requirement or prohibition.
4116 (3) (a) A special use permittee shall make and maintain a record, as required by
4117 commission rule, of any alcoholic product purchased, used, sold, or manufactured.
4118 (b) Section 32B-1-205 applies to a record required to be made or maintained in
4119 accordance with this Subsection (3).
4120 (4) (a) Except as otherwise provided in this title, a special use permittee may not
4121 purchase liquor except from a state store or package agency.
4122 (b) A special use permittee may transport liquor purchased by the special use permittee
4123 in accordance with this Subsection (4) from the place of purchase to the special use permittee's
4124 premises.
4125 (c) A special use permittee shall purchase liquor at prices set by the commission.
4126 (d) When authorized by a special use permit, a special use permittee may purchase and
4127 receive an alcoholic product directly from a manufacturer for a purpose that is industrial,
4128 educational, scientific, or manufacturing.
4129 (e) A health care facility may purchase and receive an alcoholic product directly from a
4130 manufacturer for use at the health care facility.
4131 (5) A special use permittee may not use, mix, store, sell, offer for sale, furnish,
4132 manufacture, or allow consumption of an alcoholic product in a location other than as
4133 designated in a special use permittee's:
4134 (a) application; or
4135 (b) change of location request, as described in Section 32B-10-305, if:
4136 (i) the special use permittee is a public service permittee; and
4137 (ii) the commission approved the special use permittee's change in location request.
4138 (6) Except as otherwise provided, a special use permittee may not sell, offer for sale, or
4139 furnish an alcoholic product to:
4140 (a) a minor;
4141 (b) a person actually, apparently, or obviously intoxicated;
4142 (c) a known interdicted person; or
4143 (d) a known habitual drunkard.
4144 (7) A special use permittee may not employ a minor to handle an alcoholic product.
4145 (8) (a) The location specified in a special use permit may not be transferred from one
4146 location to another location, except as provided in [
4147
4148 (b) A special use permittee may not sell, transfer, assign, exchange, barter, give, or
4149 attempt in any way to dispose of the permit to another person whether for monetary gain or not,
4150 except as provided in [
4151 Alcohol License Changes of Ownership.
4152 (9) A special use permittee may not purchase, use, mix, store, sell, offer for sale,
4153 furnish, consume, or manufacture an alcoholic product for a purpose other than that authorized
4154 by the special use permit.
4155 (10) The commission may prescribe by policy or rule consistent with this title, the
4156 general operational requirements of a special use permittee relating to:
4157 (a) physical facilities;
4158 (b) conditions of purchase, use, storage, sale, consumption, or manufacture of an
4159 alcoholic product;
4160 (c) purchase, storage, and sales quantity limitations; and
4161 (d) other matters considered appropriate by the commission.
4162 Section 58. Section 32B-11-208 is amended to read:
4163 32B-11-208. General operational requirements for manufacturing license.
4164 (1) (a) A manufacturing licensee and staff of the manufacturing licensee shall comply
4165 with this title and the rules of the commission, including the relevant part of this chapter
4166 applicable to the type of manufacturing license held by the manufacturing licensee.
4167 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
4168 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
4169 (i) a manufacturing licensee;
4170 (ii) individual staff of a manufacturing licensee; or
4171 (iii) a manufacturing licensee and staff of the manufacturing licensee.
4172 (2) A manufacturing licensee shall prominently display the manufacturing license on
4173 the licensed premises.
4174 (3) (a) A manufacturing licensee shall make and maintain the records required by the
4175 department.
4176 (b) Section 32B-1-205 applies to a record required to be made or maintained in
4177 accordance with this Subsection (3).
4178 (4) A manufacturing licensee may not sell liquor within the state except to:
4179 (a) the department; or
4180 (b) a military installation.
4181 (5) A manufacturing license may not be transferred from one location to another
4182 location, except as provided in [
4183 3, Alcohol License Change of Location.
4184 (6) (a) A manufacturing licensee may not sell, transfer, assign, exchange, barter, give,
4185 or attempt in any way to dispose of the license to another person, whether for monetary gain or
4186 not, except as provided in [
4187 Alcohol License Changes of Ownership.
4188 (b) A manufacturing license has no monetary value for any type of disposition.
4189 (7) A manufacturing licensee may not advertise the manufacturing licensee's product in
4190 violation of this title or any other federal or state law, except that nothing in this title prohibits
4191 the advertising or solicitation of an order for industrial alcohol from a holder of a special use
4192 permit.
4193 (8) A manufacturing licensee shall from time to time, on request of the department,
4194 furnish for analytical purposes a sample of the alcoholic product that the manufacturing
4195 licensee has:
4196 (a) for sale; or
4197 (b) in the course of manufacture for sale in this state.
4198 (9) The commission may prescribe by policy or rule, consistent with this title, the
4199 general operational requirements of a manufacturing licensee relating to:
4200 (a) physical facilities;
4201 (b) conditions of storage, sale, or manufacture of an alcoholic product;
4202 (c) storage and sales quantity limitations; and
4203 (d) other matters considered appropriate by the commission.
4204 Section 59. Section 32B-11-303 is amended to read:
4205 32B-11-303. Specific authority and operational requirements for winery
4206 manufacturing license.
4207 (1) A winery manufacturing license allows a winery manufacturing licensee to:
4208 (a) store, manufacture, transport, import, or export wine;
4209 (b) sell wine at wholesale to:
4210 (i) the department; and [
4211 (ii) an out-of-state [
4212 which the customer is located permits;
4213 (c) purchase liquor for fortifying wine, if the department is notified of the purchase and
4214 date of delivery; and
4215 (d) warehouse on the licensed premises liquor that is manufactured or purchased for
4216 manufacturing purposes.
4217 (2) (a) A wine, brandy, wine spirit, or other liquor imported under authority of a winery
4218 manufacturing license shall conform to the standards of identity and quality established in the
4219 regulations issued under Federal Alcohol Administration Act, 27 U.S.C. Sec. 201 et seq.
4220 (b) The federal definitions, standards of identity, and quality and labeling requirements
4221 for wine, in regulations issued under Federal Alcohol Administration Act, 27 U.S.C. Sec. 201
4222 et seq., are adopted to the extent the regulations are not contrary to or inconsistent with the
4223 laws of this state.
4224 (3) If considered necessary, the commission or department may require:
4225 (a) the alteration of the plant, equipment, or licensed premises;
4226 (b) the alteration or removal of unsuitable wine-making equipment or material;
4227 (c) a winery manufacturing licensee to clean, disinfect, ventilate, or otherwise improve
4228 the sanitary and working conditions of the plant, licensed premises, and wine-making
4229 equipment;
4230 (d) that a marc, pomace, or fruit be destroyed, denatured, or removed from the licensed
4231 premises because it is considered:
4232 (i) unfit for wine making; or
4233 (ii) as producing or likely to produce an unsanitary condition;
4234 (e) a winery manufacturing licensee to distill or cause to be distilled or disposed of
4235 under the department's supervision:
4236 (i) any unsound, poor quality finished wine; or
4237 (ii) unfinished wine that will not be satisfactory when finished; or
4238 (f) that a record pertaining to the grapes and other materials and ingredients used in the
4239 manufacture of wine be available to the commission or department upon request.
4240 (4) A winery manufacturing licensee may not permit wine to be consumed on [
4241 winery manufacturing licensee's premises, except [
4242 (a) [
4243 licensee's on-duty staff to taste on the licensed premises the alcoholic product that the winery
4244 manufacturing licensee manufactures on [
4245 without charge, but only in connection with the on-duty staff's duties of manufacturing the
4246 alcoholic product during the manufacturing process and not otherwise[
4247 (b) [
4248 wine for wholesale or retail distribution to consume a bona fide sample of the winery
4249 manufacturing licensee's product on the licensed premises[
4250 (c) [
4251 Section 32B-11-210.
4252 Section 60. Section 32B-11-403 is amended to read:
4253 32B-11-403. Specific authority and operational requirements for distillery
4254 manufacturing license.
4255 (1) A distillery manufacturing license allows a distillery manufacturing licensee to:
4256 (a) store, manufacture, transport, import, or export liquor;
4257 (b) sell liquor to:
4258 (i) the department;
4259 (ii) an out-of-state customer who is at least 21 years old, as the state in which the
4260 customer is located permits; and
4261 (iii) as provided in Subsection (2);
4262 (c) purchase an alcoholic product for mixing and manufacturing purposes if the
4263 department is notified of:
4264 (i) the purchase; and
4265 (ii) the date of delivery;
4266 (d) warehouse on the distillery manufacturing licensee's licensed premises an alcoholic
4267 product that the distillery manufacturing licensee manufactures or purchases for manufacturing
4268 purposes;
4269 (e) if the distillery manufacturing licensee holds two or more distillery manufacturing
4270 licenses under this chapter, transport an alcoholic product from one of the distillery
4271 manufacturing licensee's licensed premises to another, if the transportation occurs for the
4272 purpose of:
4273 (i) continuing or completing the manufacturing process; or
4274 (ii) storing a bulk container or an alcoholic product that is distilled and packaged in the
4275 state, including the transport of an alcoholic product to a package agency located at any of the
4276 distillery manufacturing licensee's licensed premises; and
4277 (f) receive samples of an alcoholic product from a person outside the state for the sole
4278 purpose of performing tests and analysis, if the distillery manufacturing licensee:
4279 (i) performs the tests and analysis in accordance with 27 C.F.R. Secs. 19.434(a), (c),
4280 (d), (e), and (f), Secs. 19.435 through 19.437, and Sec. 19.616;
4281 (ii) keeps records of the samples received, including:
4282 (A) all data required under 27 C.F.R. Sec. 19.616;
4283 (B) a description of the sample; and
4284 (C) the date the distillery manufacturing licensee receives the sample; and
4285 (iii) upon request, provides the records described in Subsection (1)(f)(ii) to the
4286 department.
4287 (2) (a) Subject to the other provisions of this Subsection (2), a distillery manufacturing
4288 licensee may directly sell an alcoholic product to a person engaged within the state in:
4289 (i) a mechanical or industrial business that requires the use of an alcoholic product; or
4290 (ii) scientific pursuits that require the use of an alcoholic product.
4291 (b) A person who purchases an alcoholic product under Subsection (2)(a) shall hold a
4292 valid special use permit issued in accordance with Chapter 10, Special Use Permit Act,
4293 authorizing the use of the alcoholic product.
4294 (c) A distillery manufacturing licensee may sell to a special use permittee described in
4295 Subsection (2)(b) an alcoholic product only in the type for which the special use permit
4296 provides.
4297 (d) The sale of an alcoholic product under this Subsection (2) is subject to rules
4298 prescribed by the department and the federal government.
4299 (3) The federal definitions, standards of identity and quality, and labeling requirements
4300 for distilled liquor, in the regulations issued under Federal Alcohol Administration Act, 27
4301 U.S.C. Sec. 201 et seq., are adopted to the extent the regulations are not contrary to or
4302 inconsistent with laws of this state.
4303 (4) If considered necessary, the commission or department may require:
4304 (a) the alteration of the plant, equipment, or licensed premises;
4305 (b) the alteration or removal of unsuitable alcoholic product-making equipment or
4306 material;
4307 (c) a distillery manufacturing licensee to clean, disinfect, ventilate, or otherwise
4308 improve the sanitary and working conditions of the plant, licensed premises, and equipment; or
4309 (d) that a record pertaining to the materials and ingredients used in the manufacture of
4310 an alcoholic product be made available to the commission or department upon request.
4311 (5) A distillery manufacturing licensee may not permit an alcoholic product to be
4312 consumed on the distillery manufacturing licensee's premises, except that:
4313 (a) a distillery manufacturing licensee may allow the distillery manufacturing licensee's
4314 on-duty staff to taste on the licensed premises an alcoholic product that the distillery
4315 manufacturing licensee manufactures on the distillery manufacturing licensee's licensed
4316 premises without charge, but only in connection with the on-duty staff's duties of
4317 manufacturing the alcoholic product during the manufacturing process and not otherwise;
4318 (b) a distillery manufacturing licensee may allow a person who can lawfully purchase
4319 an alcoholic product for wholesale or retail distribution to consume a bona fide sample of the
4320 distillery manufacturing licensee's product on the licensed premises; and
4321 (c) a distillery manufacturing licensee may conduct [
4322 Section 32B-11-210.
4323 Section 61. Section 32B-11-503 is amended to read:
4324 32B-11-503. Specific authority and operational requirements for brewery
4325 manufacturing license.
4326 (1) A brewery manufacturing license allows a brewery manufacturing licensee to:
4327 (a) store, manufacture, brew, transport, or export beer, heavy beer, and flavored malt
4328 beverages;
4329 (b) sell heavy beer and a flavored malt beverage to:
4330 (i) the department;
4331 (ii) a military installation; or
4332 (iii) an out-of-state customer who is at least 21 years old, as the state in which the
4333 customer is located permits;
4334 (c) sell beer to a beer wholesaler licensee;
4335 (d) in the case of a small brewer, in accordance with Subsection (5), sell beer
4336 manufactured by the small brewer to:
4337 (i) a retail licensee;
4338 (ii) an off-premise beer retailer; or
4339 (iii) an event permittee;
4340 (e) warehouse on [
4341 product that the brewery manufacturing licensee manufactures or purchases for manufacturing
4342 purposes; and
4343 (f) if the brewery manufacturing licensee holds two or more brewery manufacturing
4344 licenses, transport beer, heavy beer, or flavored malt beverage from one of the brewery
4345 manufacturing licensee's licensed premises to another, if the transportation occurs for the
4346 purpose of:
4347 (i) continuing or completing the manufacturing process; or
4348 (ii) transferring the beer, heavy beer, or flavored malt beverage for storage at a licensed
4349 premises of the brewery manufacturing licensee that is at a package agency.
4350 (2) A brewery manufacturing licensee may not sell the following to a person within the
4351 state except the department or a military installation:
4352 (a) heavy beer; or
4353 (b) a flavored malt beverage.
4354 (3) If considered necessary, the commission or department may require:
4355 (a) the alteration of the plant, equipment, or licensed premises;
4356 (b) the alteration or removal of any unsuitable alcoholic product-making equipment or
4357 material;
4358 (c) a brewery manufacturing licensee to clean, disinfect, ventilate, or otherwise
4359 improve the sanitary and working conditions of the plant, licensed premises, and equipment; or
4360 (d) that a record pertaining to the materials and ingredients used in the manufacture of
4361 an alcoholic product be available to the commission or department upon request.
4362 (4) A brewery manufacturing licensee may not permit any beer, heavy beer, or flavored
4363 malt beverage to be consumed on the licensed premises, except [
4364
4365 (a) [
4366 licensee's on-duty staff to taste the alcoholic product that the brewery manufacturing licensee
4367 manufactures on [
4368 in connection with the on-duty staff's duties of manufacturing the alcoholic product during the
4369 manufacturing process and not otherwise[
4370 (b) [
4371 purchase the following for wholesale or retail distribution to consume a bona fide sample of the
4372 brewery manufacturing licensee's product on the licensed premises:
4373 (i) beer;
4374 (ii) heavy beer; or
4375 (iii) a flavored malt beverage[
4376 (c) [
4377 with the requirements of Chapter 7, Part 2, Off-Premise Beer Retailer Local Authority[
4378 (d) [
4379 in Section 32B-11-210.
4380 (5) (a) A small brewer shall own, lease, or maintain and control a warehouse facility
4381 located in this state for the storage of beer to be sold to a person described in Subsection (1)(d)
4382 if the small brewer:
4383 (i) (A) (I) is located in this state; and
4384 (II) holds a brewery manufacturing license; or
4385 (B) (I) is located outside this state; and
4386 (II) holds a certificate of approval to sell beer in this state; and
4387 (ii) sells beer manufactured by the small brewer directly to a person described in
4388 Subsection (1)(d).
4389 (b) A small brewer may not sell beer to a person described in Subsection (1)(d) unless
4390 the beer:
4391 (i) is manufactured by the small brewer; and
4392 (ii) is first placed in the small brewer's warehouse facility in this state.
4393 (c) (i) A small brewer warehouse shall make and maintain complete beer importation,
4394 inventory, tax, distribution, sales records, and other records as the department and State Tax
4395 Commission may require.
4396 (ii) The records described in Subsection (5)(c)(i) are subject to inspection by:
4397 (A) the department; and
4398 (B) the State Tax Commission.
4399 (iii) Section 32B-1-205 applies to a record required to be made or maintained in
4400 accordance with this Subsection (5), except that the provision is considered to include an action
4401 described in Section 32B-1-205 made for the purpose of deceiving the State Tax Commission,
4402 or an official or employee of the State Tax Commission.
4403 [
4404 (6) (a) [
4405 beer in this state except under a written agreement with a beer wholesaler licensee in this state.
4406 (b) An agreement described in Subsection (6)(a) shall:
4407 (i) create a restricted exclusive sales territory that is mutually agreed upon by the
4408 persons entering into the agreement;
4409 (ii) designate the one or more brands that may be distributed in the sales territory; and
4410 (iii) set forth the exact geographical area of the sales territory.
4411 (c) A brewery manufacturing licensee may have more than one agreement described in
4412 [
4413 exclusive sales territory.
4414 (d) A brewery manufacturing licensee may not enter into an agreement described in
4415 Subsection (6)(a) with more than one beer wholesaler licensee to distribute the same brand of
4416 beer in the same sales territory or any portion of the sales territory.
4417 (7) A small brewer is not subject to the requirements of Subsection (6).
4418 Section 62. Section 32B-11-504 is amended to read:
4419 32B-11-504. Department's authority regarding small-brewer status.
4420 (1) A brewer seeking to obtain small-brewer status shall provide to the department any
4421 documentation or information the department determines necessary to determine if the brewer
4422 is part of a controlled group of [
4423 (2) The department may revoke a brewer's small-brewer status at any time, if the
4424 department determines the brewer does not qualify as a small brewer.
4425 Section 63. Section 32B-18-101, which is renumbered from Section 32B-8a-102 is
4426 renumbered and amended to read:
4427
4428
4429 [
4430 As used in this chapter:
4431 (1) (a) "Alcohol license" means:
4432 (i) a retail license;
4433 (ii) an off-premise beer retailer state license;
4434 (iii) a brewery manufacturing license;
4435 (iv) a distillery manufacturing license;
4436 (v) a winery manufacturing license; [
4437 (vi) a liquor warehousing license; and
4438 [
4439 (b) "Alcohol license" does not include a:
4440 (i) master full-service restaurant license;
4441 (ii) master limited-service restaurant license; or
4442 (iii) master off-premise beer retailer state license.
4443 (2) "Business entity" means a corporation, partnership, limited liability company, sole
4444 proprietorship, or similar entity.
4445 [
4446 [
4447
4448
4449 [
4450
4451 (3) "Interim alcoholic beverage management agreement" means a management
4452 agreement:
4453 (a) in connection with:
4454 (i) a change of ownership in the entity holding an alcohol license; or
4455 (ii) a transfer of the management of an alcohol license to another entity; and
4456 (b) under which the new owner or new management agrees to perform the operations
4457 of the alcohol licensee during the period that:
4458 (i) begins when:
4459 (A) the change of ownership closes; or
4460 (B) the new management agreement is executed; and
4461 (ii) ends on the day after the day on which the commission approves the alcohol license
4462 for the new owner.
4463 (4) "Inventory transfer agreement" means an agreement under which an alcohol
4464 licensee agrees to sell or otherwise transfer all or part of the alcohol licensee's inventory of
4465 alcoholic products.
4466 (5) "Management agreement" means an agreement between two people regarding the
4467 operation and management of an alcohol license.
4468 Section 64. Section 32B-18-201, which is renumbered from Section 32B-8a-201 is
4469 renumbered and amended to read:
4470
4471 [
4472 (1) [
4473 (a) is not ascribed any value in the sale or transfer of a business entity or the business
4474 entity's assets;
4475 (b) is neither tangible nor intangible property to the holder of the license; and
4476 (c) is completely separate from other property of an alcohol licensee.
4477 [
4478 modify the existence of any type of alcohol license.
4479 [
4480
4481 barter, give, or attempt in any way to dispose of the alcohol license to another person whether
4482 for monetary gain or not.
4483 [
4484
4485 [
4486
4487 [
4488
4489 [
4490
4491
4492 [
4493
4494
4495
4496 [
4497
4498
4499 [
4500
4501
4502 [
4503 [
4504 [
4505 [
4506
4507
4508
4509 Section 65. Section 32B-18-202, which is renumbered from Section 32B-8a-202 is
4510 renumbered and amended to read:
4511 [
4512 (1) (a) When the ownership of 51% or more of the shares of stock of a corporation is
4513 [
4514 ownership of 51% of those shares of stock on the [
4515 issued to the corporation, the corporation shall comply with this chapter to [
4516
4517 (b) When there is a new general partner or when the ownership of 51% or more of the
4518 capital or profits of a limited partnership is [
4519 include one or more persons as general or limited partners and who did not hold ownership of
4520 51% or more of the capital or profits of the limited partnership on the [
4521 alcohol license is issued to the limited partnership, the limited partnership shall comply with
4522 this chapter to [
4523
4524 (c) When the ownership of 51% or more of the interests in a limited liability company
4525 is [
4526 did not hold ownership of 51% or more of the interests in the limited liability company on the
4527 [
4528 liability company shall comply with this chapter to [
4529
4530 restructuring.
4531 (2) A business entity shall comply with this section within 60 days after the day on
4532 which a [
4533 becomes effective.
4534 Section 66. Section 32B-18-203 is enacted to read:
4535 32B-18-203. Application -- Approval process.
4536 (1) (a) A person seeking an alcohol license in accordance with this part that is currently
4537 held by another person shall submit to the department:
4538 (i) a written application for a new license in a form prescribed by the department; and
4539 (ii) a fee in accordance with Section 32B-18-207.
4540 (b) If the person seeking an alcohol license as described in Subsection (1) seeks to take
4541 over the daily operations of the alcohol license before the commission grants the transfer, the
4542 person and the alcohol licensee shall enter into an interim alcoholic beverage management
4543 agreement that:
4544 (i) provides for all proceeds from the sale of alcohol, less cost of goods sold, to accrue
4545 to the current alcohol licensee;
4546 (ii) provides for the duration of the agreement, that the current alcohol licensee:
4547 (A) shall comply with the requirements of this title that are applicable to the alcohol
4548 license; and
4549 (B) in accordance with this title, is subject to disciplinary action by the commission for
4550 a violation of this title; and
4551 (iii) the department approves.
4552 (c) If the person seeking an alcohol license as described in Subsection (1) seeks to buy
4553 the inventory from the existing licensee, the person and the alcohol licensee shall enter into an
4554 inventory transfer agreement that the department approves.
4555 (2) An alcohol licensee seeking to restructure the alcohol licensee's internal ownership
4556 of 51% or more shall submit to the department:
4557 (a) a written application in a form prescribed by the department; and
4558 (b) a fee in accordance with Section 32B-18-207.
4559 (3) A person or business entity shall comply with this section within 60 days after the
4560 day on which the sale of the business's assets closes or the restructuring of the business entity
4561 becomes effective.
4562 (4) In accordance with this section and Title 63G, Chapter 3, Utah Administrative
4563 Rulemaking Act, the commission may make rules governing the requirements of an interim
4564 alcoholic beverage management agreement.
4565 Section 67. Section 32B-18-204, which is renumbered from Section 32B-5-310 is
4566 renumbered and amended to read:
4567 [
4568 [
4569 alcohol licensee does not notify the department, within 60 days after the day on which the
4570 change occurs, of a change in:
4571 [
4572 [
4573
4574 [
4575 [
4576 [
4577 the corporation; or
4578 [
4579 [
4580 [
4581 [
4582
4583
4584 [
4585
4586 [
4587
4588 [
4589 [
4590
4591 [
4592
4593 [
4594
4595 [
4596 [
4597 Section 68. Section 32B-18-205 is enacted to read:
4598 32B-18-205. Management agreements -- Inventory transfers.
4599 (1) (a) A management agreement may provide for the sharing of revenue from a
4600 business utilizing an alcohol license if, regardless of which party holds the alcohol license, all
4601 parties to the management agreement qualify under Section 32B-1-304 to hold the license.
4602 (b) The parties to a management agreement shall submit to the department:
4603 (i) a copy of the management agreement; and
4604 (ii) any other information the department requires.
4605 (c) If there is a material change to the management agreement submitted to the
4606 department under Subsection (1)(b), the parties to the management agreement shall submit to
4607 the department the following within 30 days after the day on which the change occurs:
4608 (i) a copy of the changed management agreement; and
4609 (ii) any other information the department requires.
4610 (2) Notwithstanding any other provision of this title, in connection with a change of
4611 ownership described in Section 32B-18-202 or an asset sale of an alcohol licensee, the parties
4612 to the transaction may enter into an inventory transfer agreement.
4613 (3) In accordance with this section and Title 63G, Chapter 3, Utah Administrative
4614 Rulemaking Act, the commission may make rules governing the requirements of:
4615 (a) a management agreement; or
4616 (b) an inventory transfer agreement.
4617 Section 69. Section 32B-18-206, which is renumbered from Section 32B-8a-203 is
4618 renumbered and amended to read:
4619 [
4620 ownership or location.
4621 (1) (a) [
4622 provided in Subsections (1)(b) and (c), operations of an alcohol licensee shall begin within 30
4623 days after the day on which [
4624 a change of ownership for the alcohol license.
4625 [
4626 in Subsection (1)(a) for a period not to exceed the greater of:
4627 (i) 30 days; [
4628 (ii) the number of days until the day on which the commission holds the commission's
4629 next regularly scheduled commission meeting.
4630 [
4631 an extension described in Subsection [
4632 additional extensions [
4633
4634 (i) the alcohol licensee demonstrates to the commission that the [
4635
4636 licensee:
4637 (A) is improving the licensed premises;
4638 (B) has obtained a building permit for the improvements described in Subsection
4639 [
4640 building permit for the improvements; and
4641 (C) is working expeditiously to complete the improvements to the licensed premises[
4642 or
4643 (ii) the commission determines that circumstances beyond the control of the alcohol
4644 licensee negate the licensee's ability to begin operations in a timely manner.
4645 [
4646 operations of the alcohol license if the [
4647 [
4648 [
4649 patron on the licensed premises described in Subsection [
4650 [
4651 Subsection [
4652 [
4653 licensed premises described in Subsection [
4654 (iv) warehouses liquor on the licensed premises described in Subsection (2)(a); and
4655 [
4656 [
4657 alcohol license within the time period required by Subsection (1), the following are
4658 automatically forfeited effective immediately:
4659 (a) the alcohol license; and
4660 (b) the [
4661 [
4662 commission approves a change of ownership, the new owner of the alcohol license shall begin
4663 operations of the alcohol license at the location to which the [
4664 before the [
4665 a different location in accordance with Part 3, Alcohol License Change of Location.
4666 (b) Subsection (4)(a) does not apply to a new owner of an alcohol license if the
4667 commission determines that a bona fide exigent circumstance exists that warrants a change in
4668 location before operations begin.
4669 [
4670 license unless the requirements of Section 32B-5-205 are met, except that the time periods
4671 required by this section supersede the time period provided in Section 32B-5-205.
4672 Section 70. Section 32B-18-207, which is renumbered from Section 32B-8a-303 is
4673 renumbered and amended to read:
4674 [
4675 (1) [
4676 following [
4677 (a) for a [
4678 to another person, the [
4679 relevant chapter or part for the type of alcohol license [
4680 change of ownership occurs; and
4681 [
4682
4683 [
4684 described in Section [
4685 amount specified in the relevant chapter or part for the type of alcohol license [
4686
4687 [
4688
4689
4690 [
4691
4692 [
4693
4694 [
4695 [
4696 [
4697
4698 [
4699
4700 [
4701
4702 [
4703
4704 [
4705
4706 [
4707
4708 [
4709
4710 [
4711
4712 [
4713
4714 [
4715
4716 [
4717 [
4718 [
4719
4720 [
4721 [
4722 [
4723
4724 [
4725
4726
4727 [
4728
4729
4730
4731 [
4732
4733
4734 [
4735
4736 (2) The department shall deposit a fee collected under Subsection (1) into the Liquor
4737 Control Fund.
4738 Section 71. Section 32B-18-301 is enacted to read:
4739
4740 32B-18-301. Change of location provisions.
4741 (1) Except as provided in this part, a person may not move an alcohol license from one
4742 location to another.
4743 (2) Before an alcohol licensee moves the alcohol licensee's license from one location to
4744 another, the alcohol licensee shall submit to the department:
4745 (a) an application for a change of location, in the form the department determines; and
4746 (b) a change of location fee.
4747 (3) Before the commission approves a change of location requested in accordance with
4748 this part, the commission shall:
4749 (a) ensure that the new location meets the physical requirements for the type of license
4750 for which the change of location is requested, including any proximity requirement; and
4751 (b) consider the locality within which the proposed licensed premises is located,
4752 including the relevant factors for the type of license for which the change of location is
4753 requested.
4754 Section 72. Section 32B-18-302 is enacted to read:
4755 32B-18-302. Operational requirements for change of location.
4756 (1) (a) Except as permitted under Subsections (1)(b) and (c), operations of an alcohol
4757 licensee shall begin within 30 days after the day on which the commission approves a change
4758 of location for the alcohol license.
4759 (b) The department may grant an extension to the 30 days described in Subsection
4760 (1)(a), not to exceed the greater of:
4761 (i) 30 days; or
4762 (ii) the number of days until the next regularly scheduled commission meeting.
4763 (c) After the department authorizes an extension described in Subsection (1)(b), the
4764 commission may grant one or more additional extensions, if:
4765 (i) the alcohol licensee demonstrates to the commission that the alcohol licensee cannot
4766 begin operations because the alcohol licensee:
4767 (A) is improving the licensed premises;
4768 (B) has obtained a building permit for the improvements described in Subsection
4769 (1)(c)(i)(A), if the respective local authority requires a building permit for the improvements;
4770 and
4771 (C) is working expeditiously to complete the improvements to the licensed premises;
4772 or
4773 (ii) the commission determines that circumstances beyond the control of the alcohol
4774 licensee negate the licensee's ability to begin operations in a timely manner.
4775 (2) An alcohol licensee is considered to have begun operations of the alcohol license if
4776 the alcohol licensee:
4777 (a) has a licensed premises that is open for business;
4778 (b) (i) sells, offers for sale, or furnishes an alcoholic product to a patron on the licensed
4779 premises described in Subsection (1)(a);
4780 (ii) manufactures an alcoholic product on the licensed premises described in
4781 Subsection (2)(a);
4782 (iii) engages in an industrial or manufacturing pursuit containing alcohol on the
4783 licensed premises described in Subsection (2)(a); or
4784 (iv) warehouses liquor on the licensed premises described in Subsection (2)(a); and
4785 (c) has a valid business license.
4786 (3) If an alcohol licensee fails to begin operations of the alcohol license within the time
4787 period required under Subsection (1), the following are automatically forfeited effective
4788 immediately:
4789 (a) the alcohol license; and
4790 (b) the change of location fee.
4791 Section 73. Section 32B-18-303 is enacted to read:
4792 32B-18-303. Change of location fees.
4793 (1) The department shall charge a $300 fee for a change in location of an alcohol
4794 licensee's licensed premises.
4795 (2) The department shall deposit a fee collected under Subsection (1) in the Liquor
4796 Control Fund.
4797 Section 74. Section 32B-18-401, which is renumbered from Section 32B-8a-501 is
4798 renumbered and amended to read:
4799
4800 [
4801 Prohibited changes, transfers, and moves.
4802 (1) An alcohol licensee may not enter into any agreement under which the alcohol
4803 licensee pledges the alcohol license as security for a loan or as security for the fulfillment of
4804 any agreement.
4805 [
4806 [
4807
4808 [
4809
4810 [
4811 [
4812
4813 [
4814 except [
4815 Section 75. Section 32B-18-402, which is renumbered from Section 32B-8a-502 is
4816 renumbered and amended to read:
4817 [
4818 of this chapter.
4819 (1) If an alcohol license is changed, transferred, or moved in violation of this chapter,
4820 the commission may:
4821 (a) void the change, transfer, or move; and
4822 (b) require the alcohol license to be forfeited.
4823 (2) Subsection (1) is in addition to any other penalty under this title that is applicable to
4824 the person who violates this chapter.
4825 Section 76. Section 34-52-201 is amended to read:
4826 34-52-201. Public employer requirements.
4827 (1) A public employer may not exclude an applicant from an initial interview because
4828 of a past criminal conviction.
4829 (2) A public employer excludes an applicant from an initial interview if the public
4830 employer:
4831 (a) requires an applicant to disclose, on an employment application, a criminal
4832 conviction;
4833 (b) requires an applicant to disclose, before an initial interview, a criminal conviction;
4834 or
4835 (c) if no interview is conducted, requires an applicant to disclose, before making a
4836 conditional offer of employment, a criminal conviction.
4837 (3) (a) A public employer may not make any inquiry related to an applicant's expunged
4838 criminal history.
4839 (b) An applicant seeking employment from a public employer may answer a question
4840 related to an expunged criminal record as though the action underlying the expunged criminal
4841 record never occurred.
4842 (4) Subject to Subsections (1) through (3), nothing in this section prevents a public
4843 employer from:
4844 (a) asking an applicant for information about an applicant's criminal conviction history
4845 during an initial interview or after an initial interview; or
4846 (b) considering an applicant's conviction history when making a hiring decision.
4847 (5) Subsections (1) through (3) do not apply:
4848 (a) if federal, state, or local law, including corresponding administrative rules, requires
4849 the consideration of an applicant's criminal conviction history;
4850 (b) to a public employer that is a law enforcement agency;
4851 (c) to a public employer that is part of the criminal or juvenile justice system;
4852 (d) to a public employer seeking a nonemployee volunteer;
4853 (e) to a public employer that works with children or vulnerable adults;
4854 (f) to the Department of Alcoholic Beverage [
4855 32B-2-203;
4856 (g) to the State Tax Commission;
4857 (h) to a public employer whose primary purpose is performing financial or fiduciary
4858 functions; and
4859 (i) to a public transit district hiring or promoting an individual for a safety sensitive
4860 position described in Section 17B-2a-825.
4861 Section 77. Section 53-2a-802 is amended to read:
4862 53-2a-802. Definitions.
4863 (1) (a) "Absent" means:
4864 (i) not physically present or not able to be communicated with for 48 hours; or
4865 (ii) for local government officers, as defined by local ordinances.
4866 (b) "Absent" does not include a person who can be communicated with via telephone,
4867 radio, or telecommunications.
4868 (2) "Department" means the Department of Government Operations, the Department of
4869 Agriculture and Food, the Alcoholic Beverage [
4870 of Commerce, the Department of Cultural and Community Engagement, the Department of
4871 Corrections, the Department of Environmental Quality, the Department of Financial
4872 Institutions, the Department of Health, the Department of Workforce Services, the Labor
4873 Commission, the National Guard, the Department of Insurance, the Department of Natural
4874 Resources, the Department of Public Safety, the Public Service Commission, the Department
4875 of Human Services, the State Tax Commission, the Department of Transportation, any other
4876 major administrative subdivisions of state government, the State Board of Education, the Utah
4877 Board of Higher Education, the Utah Housing Corporation, the State Retirement Board, and
4878 each institution of higher education within the system of higher education.
4879 (3) "Division" means the Division of Emergency Management established in Title 53,
4880 Chapter 2a, Part 1, Emergency Management Act.
4881 (4) "Emergency interim successor" means a person designated by this part to exercise
4882 the powers and discharge the duties of an office when the person legally exercising the powers
4883 and duties of the office is unavailable.
4884 (5) "Executive director" means the person with ultimate responsibility for managing
4885 and overseeing the operations of each department, however denominated.
4886 (6) (a) "Office" includes all state and local offices, the powers and duties of which are
4887 defined by constitution, statutes, charters, optional plans, ordinances, articles, or by-laws.
4888 (b) "Office" does not include the office of governor or the legislative or judicial offices.
4889 (7) "Place of governance" means the physical location where the powers of an office
4890 are being exercised.
4891 (8) "Political subdivision" includes counties, cities, towns, metro townships, districts,
4892 authorities, and other public corporations and entities whether organized and existing under
4893 charter or general law.
4894 (9) "Political subdivision officer" means a person holding an office in a political
4895 subdivision.
4896 (10) "State officer" means the attorney general, the state treasurer, the state auditor, and
4897 the executive director of each department.
4898 (11) "Unavailable" means:
4899 (a) absent from the place of governance during a disaster that seriously disrupts normal
4900 governmental operations, whether or not that absence or inability would give rise to a vacancy
4901 under existing constitutional or statutory provisions; or
4902 (b) as otherwise defined by local ordinance.
4903 Section 78. Section 53-8-105 is amended to read:
4904 53-8-105. Duties of Highway Patrol.
4905 In addition to the duties in this chapter, the Highway Patrol shall:
4906 (1) enforce the state laws and rules governing use of the state highways;
4907 (2) regulate traffic on all highways and roads of the state;
4908 (3) assist the governor in an emergency or at other times at his discretion;
4909 (4) in cooperation with federal, state, and local agencies, enforce and assist in the
4910 enforcement of all state and federal laws related to the operation of a motor carrier on a
4911 highway, including all state and federal rules and regulations;
4912 (5) inspect certain vehicles to determine road worthiness and safe condition as
4913 provided in Section 41-6a-1630;
4914 (6) upon request, assist with any condition of unrest existing or developing on a
4915 campus or related facility of an institution of higher education;
4916 (7) assist the Alcoholic Beverage [
4917 enforce the state liquor laws;
4918 (8) provide security and protection for both houses of the Legislature while in session
4919 as the speaker of the House of Representatives and the president of the Senate find necessary;
4920 (9) enforce the state laws and rules governing use of the capitol hill complex as defined
4921 in Section 63C-9-102; and
4922 (10) carry out the following for the Supreme Court and the Court of Appeals:
4923 (a) provide security and protection to those courts when in session in the capital city of
4924 the state;
4925 (b) execute orders issued by the courts; and
4926 (c) carry out duties as directed by the courts.
4927 Section 79. Section 53-10-102 is amended to read:
4928 53-10-102. Definitions.
4929 As used in this chapter:
4930 (1) "Administration of criminal justice" means performance of any of the following:
4931 detection, apprehension, detention, pretrial release, posttrial release, prosecution, adjudication,
4932 correctional supervision, or rehabilitation of accused persons or criminal offenders.
4933 (2) "Alcoholic beverage" is as defined in Section 32B-1-102.
4934 (3) "Alcoholic product" is as defined in Section 32B-1-102.
4935 (4) "Commission" means the Alcoholic Beverage [
4936 (5) "Communications services" means the technology of reception, relay, and
4937 transmission of information required by public safety agencies in the performance of their duty.
4938 (6) "Conviction record" means criminal history information indicating a record of a
4939 criminal charge which has led to a declaration of guilt of an offense.
4940 (7) "Criminal history record information" means information on individuals consisting
4941 of identifiable descriptions and notations of:
4942 (a) arrests, detentions, indictments, informations, or other formal criminal charges, and
4943 any disposition arising from any of them; and
4944 (b) sentencing, correctional supervision, and release.
4945 (8) "Criminal justice agency" means courts or a government agency or subdivision of a
4946 government agency that administers criminal justice under a statute, executive order, or local
4947 ordinance and that allocates greater than 50% of its annual budget to the administration of
4948 criminal justice.
4949 (9) "Criminalist" means the scientific discipline directed to the recognition,
4950 identification, individualization, and evaluation of physical evidence by application of the
4951 natural sciences in law-science matters.
4952 (10) "Department" means the Department of Public Safety.
4953 (11) "Director" means the division director appointed under Section 53-10-103.
4954 (12) "Division" means the Criminal Investigations and Technical Services Division
4955 created in Section 53-10-103.
4956 (13) "Executive order" means an order of the president of the United States or the chief
4957 executive of a state that has the force of law and that is published in a manner permitting
4958 regular public access to it.
4959 (14) "Forensic" means dealing with the application of scientific knowledge relating to
4960 criminal evidence.
4961 (15) "Mental defective" means an individual who, by a district court, as a result of
4962 marked subnormal intelligence, or mental illness, incompetency, condition, or disease, is
4963 found:
4964 (a) to be a danger to himself or herself or others;
4965 (b) to lack the mental capacity to contract or manage the individual's own affairs;
4966 (c) to be incompetent by a court in a criminal case; or
4967 (d) to be incompetent to stand trial or found not guilty by reason or lack of mental
4968 responsibility.
4969 (16) "Missing child" means any person under the age of 18 years who is missing from
4970 the person's home environment or a temporary placement facility for any reason and whose
4971 location cannot be determined by the person responsible for the child's care.
4972 (17) "Missing person" is as defined in Section 26-2-27.
4973 (18) "Pathogens" means disease-causing agents.
4974 (19) "Physical evidence" means something submitted to the bureau to determine the
4975 truth of a matter using scientific methods of analysis.
4976 (20) "Qualifying entity" means a business, organization, or a governmental entity that
4977 employs persons or utilizes volunteers who deal with:
4978 (a) national security interests;
4979 (b) care, custody, or control of children;
4980 (c) fiduciary trust over money;
4981 (d) health care to children or vulnerable adults; or
4982 (e) the provision of any of the following to a vulnerable adult:
4983 (i) care;
4984 (ii) protection;
4985 (iii) food, shelter, or clothing;
4986 (iv) assistance with the activities of daily living; or
4987 (v) assistance with financial resource management.
4988 Section 80. Section 53-10-305 is amended to read:
4989 53-10-305. Duties of bureau chief.
4990 The bureau chief, with the consent of the commissioner, shall do the following:
4991 (1) conduct in conjunction with the state boards of education and higher education in
4992 state schools, colleges, and universities, an educational program concerning alcoholic
4993 beverages and alcoholic products, and work in conjunction with civic organizations, churches,
4994 local units of government, and other organizations in the prevention of alcoholic beverage,
4995 alcoholic product, and drug violations;
4996 (2) coordinate law enforcement programs throughout the state and accumulate and
4997 disseminate information related to the prevention, detection, and control of violations of this
4998 chapter and Title 32B, Alcoholic Beverage Control Act, as it relates to storage or consumption
4999 of an alcoholic beverage or alcoholic product on premises maintained by a bar establishment
5000 licensee, or a person required to obtain a bar establishment license, as defined in Section
5001 32B-1-102;
5002 (3) make inspections and investigations as required by the commission and the
5003 Department of Alcoholic Beverage [
5004 (4) perform other acts as may be necessary or appropriate concerning control of the use
5005 of an alcoholic beverage or alcoholic product and drugs; and
5006 (5) make reports and recommendations to the Legislature, the governor, the
5007 commissioner, the commission, and the Department of Alcoholic Beverage [
5008 as may be required or requested.
5009 Section 81. Section 53F-9-304 is amended to read:
5010 53F-9-304. Underage Drinking and Substance Abuse Prevention Program
5011 Restricted Account.
5012 (1) As used in this section, "account" means the Underage Drinking and Substance
5013 Abuse Prevention Program Restricted Account created in this section.
5014 (2) There is created within the Education Fund a restricted account known as the
5015 "Underage Drinking and Substance Abuse Prevention Program Restricted Account."
5016 (3) (a) Before the Department of Alcoholic Beverage [
5017 portion of the markup collected under Section 32B-2-304 into the Liquor Control Fund in
5018 accordance with Section 32B-2-301, the Department of Alcoholic Beverage [
5019 shall deposit into the account:
5020 (i) for the fiscal year that begins July 1, 2017, $1,750,000; or
5021 (ii) for each fiscal year that begins on or after July 1, 2018, an amount equal to the
5022 amount that the Department of Alcoholic Beverage [
5023 account during the preceding fiscal year increased or decreased by a percentage equal to the
5024 percentage difference between the Consumer Price Index for the second preceding calendar
5025 year and the Consumer Price Index for the preceding calendar year.
5026 (b) For purposes of this Subsection (3), the Department of Alcoholic Beverage
5027 [
5028 Secs. 1(f)(4) and 1(f)(5).
5029 (4) The account shall be funded:
5030 (a) in accordance with Subsection (3);
5031 (b) by appropriations made to the account by the Legislature; and
5032 (c) by interest earned on money in the account.
5033 (5) The state board shall use money in the account for the Underage Drinking and
5034 Substance Abuse Prevention Program described in Section 53G-10-406.
5035 Section 82. Section 53G-10-406 is amended to read:
5036 53G-10-406. Underage Drinking and Substance Abuse Prevention Program --
5037 State board rules.
5038 (1) As used in this section:
5039 (a) "Advisory council" means the Underage Drinking and Substance Abuse Prevention
5040 Program Advisory Council created in this section.
5041 (b) "Program" means the Underage Drinking and Substance Abuse Prevention Program
5042 created in this section.
5043 (c) "School-based prevention program" means an evidence-based program that:
5044 (i) is aimed at preventing underage consumption of alcohol and underage use of
5045 electronic cigarette products;
5046 (ii) is delivered by methods that engage students in storytelling and visualization;
5047 (iii) addresses the behavioral risk factors associated with underage drinking and use of
5048 electronic cigarette products; and
5049 (iv) provides practical tools to address the dangers of underage drinking and use of
5050 electronic cigarette products.
5051 (2) There is created the Underage Drinking and Substance Abuse Prevention Program
5052 that consists of:
5053 (a) a school-based prevention program for students in grade 4 or 5;
5054 (b) a school-based prevention program for students in grade 7 or 8; and
5055 (c) a school-based prevention program for students in grade 9 or 10 that increases
5056 awareness of the dangers of driving under the influence of alcohol.
5057 (3) (a) Beginning with the 2018-19 school year, an LEA shall offer the program each
5058 school year to each student in grade 7 or 8 and grade 9 or 10.
5059 (b) In addition to Subsection (3)(a), beginning with the 2020-21 school year, an LEA
5060 shall offer the program each school year to each student in grade 4 or 5.
5061 (c) An LEA shall select from the providers qualified by the state board under
5062 Subsection (6) to offer the program.
5063 (4) The state board shall administer the program with input from the advisory council.
5064 (5) There is created the Underage Drinking and Substance Abuse Prevention Program
5065 Advisory Council comprised of the following members:
5066 (a) the executive director of the Department of Alcoholic Beverage [
5067 or the executive director's designee;
5068 (b) the executive director of the Department of Health or the executive director's
5069 designee;
5070 (c) the director of the Division of Substance Abuse and Mental Health or the director's
5071 designee;
5072 (d) the director of the Division of Child and Family Services or the director's designee;
5073 (e) the director of the Division of Juvenile Justice Services or the director's designee;
5074 (f) the state superintendent or the state superintendent's designee; and
5075 (g) two members of the state board, appointed by the chair of the state board.
5076 (6) (a) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the state
5077 board shall qualify one or more providers to provide the program to an LEA.
5078 (b) In selecting a provider described in Subsection (6)(a), the state board shall consider:
5079 (i) whether the provider's program complies with the requirements described in this
5080 section;
5081 (ii) the extent to which the provider's prevention program aligns with core standards for
5082 Utah public schools; and
5083 (iii) the provider's experience in providing a program that is effective.
5084 (7) (a) The state board shall use money from the Underage Drinking and Substance
5085 Abuse Prevention Program Restricted Account described in Section 53F-9-304 for the
5086 program.
5087 (b) The state board may use money from the Underage Drinking Prevention Program
5088 Restricted Account to fund up to .5 of a full-time equivalent position to administer the
5089 program.
5090 (8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
5091 state board shall make rules that:
5092 (a) beginning with the 2018-19 school year, require an LEA to offer the Underage
5093 Drinking and Substance Abuse Prevention Program each school year to each student in grade 7
5094 or 8 and grade 9 or 10;
5095 (b) beginning with the 2020-21 school year, require an LEA to offer the Underage
5096 Drinking and Substance Abuse Prevention Program each school year to each student in grade 4
5097 or 5; and
5098 (c) establish criteria for the state board to use in selecting a provider described in
5099 Subsection (6).
5100 Section 83. Section 59-1-403 is amended to read:
5101 59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
5102 (1) As used in this section:
5103 (a) "Distributed tax, fee, or charge" means a tax, fee, or charge:
5104 (i) the commission administers under:
5105 (A) this title, other than a tax under Chapter 12, Part 2, Local Sales and Use Tax Act;
5106 (B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
5107 (C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
5108 (D) Section 19-6-805;
5109 (E) Section 63H-1-205; or
5110 (F) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges;
5111 and
5112 (ii) with respect to which the commission distributes the revenue collected from the
5113 tax, fee, or charge to a qualifying jurisdiction.
5114 (b) "Qualifying jurisdiction" means:
5115 (i) a county, city, town, or metro township; or
5116 (ii) the military installation development authority created in Section 63H-1-201.
5117 (2) (a) Any of the following may not divulge or make known in any manner any
5118 information gained by that person from any return filed with the commission:
5119 (i) a tax commissioner;
5120 (ii) an agent, clerk, or other officer or employee of the commission; or
5121 (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
5122 town.
5123 (b) An official charged with the custody of a return filed with the commission is not
5124 required to produce the return or evidence of anything contained in the return in any action or
5125 proceeding in any court, except:
5126 (i) in accordance with judicial order;
5127 (ii) on behalf of the commission in any action or proceeding under:
5128 (A) this title; or
5129 (B) other law under which persons are required to file returns with the commission;
5130 (iii) on behalf of the commission in any action or proceeding to which the commission
5131 is a party; or
5132 (iv) on behalf of any party to any action or proceeding under this title if the report or
5133 facts shown by the return are directly involved in the action or proceeding.
5134 (c) Notwithstanding Subsection (2)(b), a court may require the production of, and may
5135 admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
5136 pertinent to the action or proceeding.
5137 (3) This section does not prohibit:
5138 (a) a person or that person's duly authorized representative from receiving a copy of
5139 any return or report filed in connection with that person's own tax;
5140 (b) the publication of statistics as long as the statistics are classified to prevent the
5141 identification of particular reports or returns; and
5142 (c) the inspection by the attorney general or other legal representative of the state of the
5143 report or return of any taxpayer:
5144 (i) who brings action to set aside or review a tax based on the report or return;
5145 (ii) against whom an action or proceeding is contemplated or has been instituted under
5146 this title; or
5147 (iii) against whom the state has an unsatisfied money judgment.
5148 (4) (a) Notwithstanding Subsection (2) and for purposes of administration, the
5149 commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative
5150 Rulemaking Act, provide for a reciprocal exchange of information with:
5151 (i) the United States Internal Revenue Service; or
5152 (ii) the revenue service of any other state.
5153 (b) Notwithstanding Subsection (2) and for all taxes except individual income tax and
5154 corporate franchise tax, the commission may by rule, made in accordance with Title 63G,
5155 Chapter 3, Utah Administrative Rulemaking Act, share information gathered from returns and
5156 other written statements with the federal government, any other state, any of the political
5157 subdivisions of another state, or any political subdivision of this state, except as limited by
5158 Sections 59-12-209 and 59-12-210, if the political subdivision, other state, or the federal
5159 government grant substantially similar privileges to this state.
5160 (c) Notwithstanding Subsection (2) and for all taxes except individual income tax and
5161 corporate franchise tax, the commission may by rule, in accordance with Title 63G, Chapter 3,
5162 Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
5163 identity and other information of taxpayers who have failed to file tax returns or to pay any tax
5164 due.
5165 (d) Notwithstanding Subsection (2), the commission shall provide to the director of the
5166 Division of Environmental Response and Remediation, as defined in Section 19-6-402, as
5167 requested by the director of the Division of Environmental Response and Remediation, any
5168 records, returns, or other information filed with the commission under Chapter 13, Motor and
5169 Special Fuel Tax Act, or Section 19-6-410.5 regarding the environmental assurance program
5170 participation fee.
5171 (e) Notwithstanding Subsection (2), at the request of any person the commission shall
5172 provide that person sales and purchase volume data reported to the commission on a report,
5173 return, or other information filed with the commission under:
5174 (i) Chapter 13, Part 2, Motor Fuel; or
5175 (ii) Chapter 13, Part 4, Aviation Fuel.
5176 (f) Notwithstanding Subsection (2), upon request from a tobacco product manufacturer,
5177 as defined in Section 59-22-202, the commission shall report to the manufacturer:
5178 (i) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
5179 manufacturer and reported to the commission for the previous calendar year under Section
5180 59-14-407; and
5181 (ii) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
5182 manufacturer for which a tax refund was granted during the previous calendar year under
5183 Section 59-14-401 and reported to the commission under Subsection 59-14-401(1)(a)(v).
5184 (g) Notwithstanding Subsection (2), the commission shall notify manufacturers,
5185 distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
5186 from selling cigarettes to consumers within the state under Subsection 59-14-210(2).
5187 (h) Notwithstanding Subsection (2), the commission may:
5188 (i) provide to the Division of Consumer Protection within the Department of
5189 Commerce and the attorney general data:
5190 (A) reported to the commission under Section 59-14-212; or
5191 (B) related to a violation under Section 59-14-211; and
5192 (ii) upon request, provide to any person data reported to the commission under
5193 Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).
5194 (i) Notwithstanding Subsection (2), the commission shall, at the request of a committee
5195 of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's Office of
5196 Planning and Budget, provide to the committee or office the total amount of revenues collected
5197 by the commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period
5198 specified by the committee or office.
5199 (j) Notwithstanding Subsection (2), the commission shall make the directory required
5200 by Section 59-14-603 available for public inspection.
5201 (k) Notwithstanding Subsection (2), the commission may share information with
5202 federal, state, or local agencies as provided in Subsection 59-14-606(3).
5203 (l) (i) Notwithstanding Subsection (2), the commission shall provide the Office of
5204 Recovery Services within the Department of Human Services any relevant information
5205 obtained from a return filed under Chapter 10, Individual Income Tax Act, regarding a taxpayer
5206 who has become obligated to the Office of Recovery Services.
5207 (ii) The information described in Subsection (4)(l)(i) may be provided by the Office of
5208 Recovery Services to any other state's child support collection agency involved in enforcing
5209 that support obligation.
5210 (m) (i) Notwithstanding Subsection (2), upon request from the state court
5211 administrator, the commission shall provide to the state court administrator, the name, address,
5212 telephone number, county of residence, and social security number on resident returns filed
5213 under Chapter 10, Individual Income Tax Act.
5214 (ii) The state court administrator may use the information described in Subsection
5215 (4)(m)(i) only as a source list for the master jury list described in Section 78B-1-106.
5216 (n) (i) As used in this Subsection (4)(n):
5217 (A) "GO Utah office" means the Governor's Office of Economic Opportunity created in
5218 Section 63N-1a-301.
5219 (B) "Income tax information" means information gained by the commission that is
5220 required to be attached to or included in a return filed with the commission under Chapter 7,
5221 Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
5222 (C) "Other tax information" means information gained by the commission that is
5223 required to be attached to or included in a return filed with the commission except for a return
5224 filed under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual
5225 Income Tax Act.
5226 (D) "Tax information" means income tax information or other tax information.
5227 (ii) (A) Notwithstanding Subsection (2) and except as provided in Subsection
5228 (4)(n)(ii)(B) or (C), the commission shall at the request of the GO Utah office provide to the
5229 GO Utah office all income tax information.
5230 (B) For purposes of a request for income tax information made under Subsection
5231 (4)(n)(ii)(A), the GO Utah office may not request and the commission may not provide to the
5232 GO Utah office a person's address, name, social security number, or taxpayer identification
5233 number.
5234 (C) In providing income tax information to the GO Utah office, the commission shall
5235 in all instances protect the privacy of a person as required by Subsection (4)(n)(ii)(B).
5236 (iii) (A) Notwithstanding Subsection (2) and except as provided in Subsection
5237 (4)(n)(iii)(B), the commission shall at the request of the GO Utah office provide to the GO
5238 Utah office other tax information.
5239 (B) Before providing other tax information to the GO Utah office, the commission
5240 shall redact or remove any name, address, social security number, or taxpayer identification
5241 number.
5242 (iv) The GO Utah office may provide tax information received from the commission in
5243 accordance with this Subsection (4)(n) only:
5244 (A) as a fiscal estimate, fiscal note information, or statistical information; and
5245 (B) if the tax information is classified to prevent the identification of a particular
5246 return.
5247 (v) (A) A person may not request tax information from the GO Utah office under Title
5248 63G, Chapter 2, Government Records Access and Management Act, or this section, if the GO
5249 Utah office received the tax information from the commission in accordance with this
5250 Subsection (4)(n).
5251 (B) The GO Utah office may not provide to a person that requests tax information in
5252 accordance with Subsection (4)(n)(v)(A) any tax information other than the tax information the
5253 GO Utah office provides in accordance with Subsection (4)(n)(iv).
5254 (o) Notwithstanding Subsection (2), the commission may provide to the governing
5255 board of the agreement or a taxing official of another state, the District of Columbia, the United
5256 States, or a territory of the United States:
5257 (i) the following relating to an agreement sales and use tax:
5258 (A) information contained in a return filed with the commission;
5259 (B) information contained in a report filed with the commission;
5260 (C) a schedule related to Subsection (4)(o)(i)(A) or (B); or
5261 (D) a document filed with the commission; or
5262 (ii) a report of an audit or investigation made with respect to an agreement sales and
5263 use tax.
5264 (p) Notwithstanding Subsection (2), the commission may provide information
5265 concerning a taxpayer's state income tax return or state income tax withholding information to
5266 the Driver License Division if the Driver License Division:
5267 (i) requests the information; and
5268 (ii) provides the commission with a signed release form from the taxpayer allowing the
5269 Driver License Division access to the information.
5270 (q) Notwithstanding Subsection (2), the commission shall provide to the Utah
5271 Communications Authority, or a division of the Utah Communications Authority, the
5272 information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and
5273 63H-7a-502.
5274 (r) Notwithstanding Subsection (2), the commission shall provide to the Utah
5275 Educational Savings Plan information related to a resident or nonresident individual's
5276 contribution to a Utah Educational Savings Plan account as designated on the resident or
5277 nonresident's individual income tax return as provided under Section 59-10-1313.
5278 (s) Notwithstanding Subsection (2), for the purpose of verifying eligibility under
5279 Sections 26-18-2.5 and 26-40-105, the commission shall provide an eligibility worker with the
5280 Department of Health or its designee with the adjusted gross income of an individual if:
5281 (i) an eligibility worker with the Department of Health or its designee requests the
5282 information from the commission; and
5283 (ii) the eligibility worker has complied with the identity verification and consent
5284 provisions of Sections 26-18-2.5 and 26-40-105.
5285 (t) Notwithstanding Subsection (2), the commission may provide to a county, as
5286 determined by the commission, information declared on an individual income tax return in
5287 accordance with Section 59-10-103.1 that relates to eligibility to claim a residential exemption
5288 authorized under Section 59-2-103.
5289 (u) Notwithstanding Subsection (2), the commission shall provide a report regarding
5290 any access line provider that is over 90 days delinquent in payment to the commission of
5291 amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid Wireless
5292 Telecommunications Service Charges, to the board of the Utah Communications Authority
5293 created in Section 63H-7a-201.
5294 (v) Notwithstanding Subsection (2), the commission shall provide the Department of
5295 Environmental Quality a report on the amount of tax paid by a radioactive waste facility for the
5296 previous calendar year under Section 59-24-103.5.
5297 (w) Notwithstanding Subsection (2), the commission may, upon request, provide to the
5298 Department of Workforce Services any information received under Chapter 10, Part 4,
5299 Withholding of Tax, that is relevant to the duties of the Department of Workforce Services.
5300 (x) Notwithstanding Subsection (2), the commission may provide the Public Service
5301 Commission or the Division of Public Utilities information related to a seller that collects and
5302 remits to the commission a charge described in Subsection 69-2-405(2), including the seller's
5303 identity and the number of charges described in Subsection 69-2-405(2) that the seller collects.
5304 (y) (i) Notwithstanding Subsection (2), the commission shall provide to each qualifying
5305 jurisdiction the collection data necessary to verify the revenue collected by the commission for
5306 a distributed tax, fee, or charge collected within the qualifying jurisdiction.
5307 (ii) In addition to the information provided under Subsection (4)(y)(i), the commission
5308 shall provide a qualifying jurisdiction with copies of returns and other information relating to a
5309 distributed tax, fee, or charge collected within the qualifying jurisdiction.
5310 (iii) (A) To obtain the information described in Subsection (4)(y)(ii), the chief
5311 executive officer or the chief executive officer's designee of the qualifying jurisdiction shall
5312 submit a written request to the commission that states the specific information sought and how
5313 the qualifying jurisdiction intends to use the information.
5314 (B) The information described in Subsection (4)(y)(ii) is available only in official
5315 matters of the qualifying jurisdiction.
5316 (iv) Information that a qualifying jurisdiction receives in response to a request under
5317 this subsection is:
5318 (A) classified as a private record under Title 63G, Chapter 2, Government Records
5319 Access and Management Act; and
5320 (B) subject to the confidentiality requirements of this section.
5321 (z) Notwithstanding Subsection (2), the commission shall provide the Alcoholic
5322 Beverage [
5323 related to state tax obligations necessary to comply with the requirements described in Section
5324 32B-1-203.
5325 (5) (a) Each report and return shall be preserved for at least three years.
5326 (b) After the three-year period provided in Subsection (5)(a) the commission may
5327 destroy a report or return.
5328 (6) (a) Any individual who violates this section is guilty of a class A misdemeanor.
5329 (b) If the individual described in Subsection (6)(a) is an officer or employee of the
5330 state, the individual shall be dismissed from office and be disqualified from holding public
5331 office in this state for a period of five years thereafter.
5332 (c) Notwithstanding Subsection (6)(a) or (b), the GO Utah office, when requesting
5333 information in accordance with Subsection (4)(n)(iii), or an individual who requests
5334 information in accordance with Subsection (4)(n)(v):
5335 (i) is not guilty of a class A misdemeanor; and
5336 (ii) is not subject to:
5337 (A) dismissal from office in accordance with Subsection (6)(b); or
5338 (B) disqualification from holding public office in accordance with Subsection (6)(b).
5339 (7) Except as provided in Section 59-1-404, this part does not apply to the property tax.
5340 Section 84. Section 59-15-108 is amended to read:
5341 59-15-108. Construction and equipment of establishments.
5342 No brewery or other establishment may be constructed or equipped in a manner which
5343 facilitates any breach of this chapter or the rules of the Alcoholic Beverage [
5344 Commission or State Tax Commission. Any structure or equipment in violation of this section
5345 shall be removed by order of the Alcoholic Beverage Control Commission or the State Tax
5346 Commission.
5347 Section 85. Section 62A-1-121 is amended to read:
5348 62A-1-121. Tracking effects of abuse of alcoholic products.
5349 (1) There is created a committee within the department known as the "Alcohol Abuse
5350 Tracking Committee" that consists of:
5351 (a) the executive director or the executive director's designee;
5352 (b) the executive director of the Department of Health or that executive director's
5353 designee;
5354 (c) the commissioner of the Department of Public Safety or the commissioner's
5355 designee;
5356 (d) the director of the Department of Alcoholic Beverage [
5357 director's designee;
5358 (e) the executive director of the Department of Workforce Services or that executive
5359 director's designee;
5360 (f) the chair of the Utah Substance Use and Mental Health Advisory Council or the
5361 chair's designee;
5362 (g) the state court administrator or the state court administrator's designee; and
5363 (h) the director of the Division of Technology Services or that director's designee.
5364 (2) The executive director or the executive director's designee shall chair the
5365 committee.
5366 (3) (a) Four members of the committee constitute a quorum.
5367 (b) A vote of the majority of the committee members present when a quorum is present
5368 is an action of the committee.
5369 (4) The committee shall meet at the call of the chair, except that the chair shall call a
5370 meeting at least twice a year:
5371 (a) with one meeting held each year to develop the report required under Subsection
5372 (7); and
5373 (b) with one meeting held to review and finalize the report before the report is issued.
5374 (5) The committee may adopt additional procedures or requirements for:
5375 (a) voting, when there is a tie of the committee members;
5376 (b) how meetings are to be called; and
5377 (c) the frequency of meetings.
5378 (6) The committee shall establish a process to collect for each calendar year the
5379 following information:
5380 (a) the number of individuals statewide who are convicted of, plead guilty to, plead no
5381 contest to, plead guilty in a similar manner to, or resolve by diversion or its equivalent to a
5382 violation related to underage drinking of alcohol;
5383 (b) the number of individuals statewide who are convicted of, plead guilty to, plead no
5384 contest to, plead guilty in a similar manner to, or resolve by diversion or its equivalent to a
5385 violation related to driving under the influence of alcohol;
5386 (c) the number of violations statewide of Title 32B, Alcoholic Beverage Control Act,
5387 related to over-serving or over-consumption of an alcoholic product;
5388 (d) the cost of social services provided by the state related to abuse of alcohol,
5389 including services provided by the Division of Child and Family Services;
5390 (e) the location where the alcoholic products that result in the violations or costs
5391 described in Subsections (6)(a) through (d) are obtained; and
5392 (f) any information the committee determines can be collected and relates to the abuse
5393 of alcoholic products.
5394 (7) The committee shall report the information collected under Subsection (6) annually
5395 to the governor and the Legislature by no later than the July 1 immediately following the
5396 calendar year for which the information is collected.
5397 Section 86. Section 62A-15-401 is amended to read:
5398 62A-15-401. Alcohol training and education seminar.
5399 (1) As used in this part:
5400 (a) "Instructor" means a person that directly provides the instruction during an alcohol
5401 training and education seminar for a seminar provider.
5402 (b) "Licensee" means a person who is:
5403 (i) (A) a new or renewing licensee under Title 32B, Alcoholic Beverage Control Act;
5404 and
5405 (B) engaged in the retail sale of an alcoholic product for consumption on the premises
5406 of the licensee; or
5407 (ii) a business that is:
5408 (A) a new or renewing licensee licensed by a city, town, or county; and
5409 (B) engaged in the retail sale of beer for consumption off the premises of the licensee.
5410 (c) "Off-premise beer retailer" is as defined in Section 32B-1-102.
5411 (d) "Seminar provider" means a person other than the division who provides an alcohol
5412 training and education seminar meeting the requirements of this section.
5413 (2) (a) This section applies to:
5414 (i) a retail manager as defined in Section 32B-1-701;
5415 (ii) retail staff as defined in Section 32B-1-701; and
5416 (iii) an individual who, as defined by division rule:
5417 (A) directly supervises the sale of beer to a customer for consumption off the premises
5418 of an off-premise beer retailer; or
5419 (B) sells beer to a customer for consumption off the premises of an off-premise beer
5420 retailer.
5421 (b) If the individual does not have a valid record that the individual has completed an
5422 alcohol training and education seminar, an individual described in Subsection (2)(a) shall:
5423 (i) (A) complete an alcohol training and education seminar within 30 days of the
5424 following if the individual is described in Subsection (2)(a)(i) or (ii):
5425 (I) if the individual is an employee, the day the individual begins employment;
5426 (II) if the individual is an independent contractor, the day the individual is first hired;
5427 or
5428 (III) if the individual holds an ownership interest in the licensee, the day that the
5429 individual first engages in an activity that would result in that individual being required to
5430 complete an alcohol training and education seminar; or
5431 (B) complete an alcohol training and education seminar within the time periods
5432 specified in Subsection 32B-1-703(1) if the individual is described in Subsection (2)(a)(iii)(A)
5433 or (B); and
5434 (ii) pay a fee:
5435 (A) to the seminar provider; and
5436 (B) that is equal to or greater than the amount established under Subsection (4)(h).
5437 (c) An individual shall have a valid record that the individual completed an alcohol
5438 training and education seminar within the time period provided in this Subsection (2) to engage
5439 in an activity described in Subsection (2)(a).
5440 (d) A record that an individual has completed an alcohol training and education
5441 seminar is valid for:
5442 (i) three years from the day on which the record is issued for an individual described in
5443 Subsection (2)(a)(i) or (ii); and
5444 (ii) five years from the day on which the record is issued for an individual described in
5445 Subsection (2)(a)(iii)(A) or (B).
5446 (e) On and after July 1, 2011, to be considered as having completed an alcohol training
5447 and education seminar, an individual shall:
5448 (i) attend the alcohol training and education seminar and take any test required to
5449 demonstrate completion of the alcohol training and education seminar in the physical presence
5450 of an instructor of the seminar provider; or
5451 (ii) complete the alcohol training and education seminar and take any test required to
5452 demonstrate completion of the alcohol training and education seminar through an online course
5453 or testing program that meets the requirements described in Subsection (2)(f).
5454 (f) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
5455 Administrative Rulemaking Act, establish one or more requirements for an online course or
5456 testing program described in Subsection (2)(e) that are designed to inhibit fraud in the use of
5457 the online course or testing program. In developing the requirements by rule the division shall
5458 consider whether to require:
5459 (i) authentication that the an individual accurately identifies the individual as taking the
5460 online course or test;
5461 (ii) measures to ensure that an individual taking the online course or test is focused on
5462 training material throughout the entire training period;
5463 (iii) measures to track the actual time an individual taking the online course or test is
5464 actively engaged online;
5465 (iv) a seminar provider to provide technical support, such as requiring a telephone
5466 number, email, or other method of communication that allows an individual taking the online
5467 course or test to receive assistance if the individual is unable to participate online because of
5468 technical difficulties;
5469 (v) a test to meet quality standards, including randomization of test questions and
5470 maximum time limits to take a test;
5471 (vi) a seminar provider to have a system to reduce fraud as to who completes an online
5472 course or test, such as requiring a distinct online certificate with information printed on the
5473 certificate that identifies the person taking the online course or test, or requiring measures to
5474 inhibit duplication of a certificate;
5475 (vii) measures for the division to audit online courses or tests;
5476 (viii) measures to allow an individual taking an online course or test to provide an
5477 evaluation of the online course or test;
5478 (ix) a seminar provider to track the Internet protocol address or similar electronic
5479 location of an individual who takes an online course or test;
5480 (x) an individual who takes an online course or test to use an e-signature; or
5481 (xi) a seminar provider to invalidate a certificate if the seminar provider learns that the
5482 certificate does not accurately reflect the individual who took the online course or test.
5483 (3) (a) A licensee may not permit an individual who is not in compliance with
5484 Subsection (2) to:
5485 (i) serve or supervise the serving of an alcoholic product to a customer for
5486 consumption on the premises of the licensee;
5487 (ii) engage in any activity that would constitute managing operations at the premises of
5488 a licensee that engages in the retail sale of an alcoholic product for consumption on the
5489 premises of the licensee;
5490 (iii) directly supervise the sale of beer to a customer for consumption off the premises
5491 of an off-premise beer retailer; or
5492 (iv) sell beer to a customer for consumption off the premises of an off-premise beer
5493 retailer.
5494 (b) A licensee that violates Subsection (3)(a) is subject to Section 32B-1-702.
5495 (4) The division shall:
5496 (a) (i) provide alcohol training and education seminars; or
5497 (ii) certify one or more seminar providers;
5498 (b) establish the curriculum for an alcohol training and education seminar that includes
5499 the following subjects:
5500 (i) (A) alcohol as a drug; and
5501 (B) alcohol's effect on the body and behavior;
5502 (ii) recognizing the problem drinker or signs of intoxication;
5503 (iii) an overview of state alcohol laws related to responsible beverage sale or service,
5504 as determined in consultation with the Department of Alcoholic Beverage [
5505 (iv) dealing with the problem customer, including ways to terminate sale or service;
5506 and
5507 (v) for those supervising or engaging in the retail sale of an alcoholic product for
5508 consumption on the premises of a licensee, alternative means of transportation to get the
5509 customer safely home;
5510 (c) recertify each seminar provider every three years;
5511 (d) monitor compliance with the curriculum described in Subsection (4)(b);
5512 (e) maintain for at least five years a record of every person who has completed an
5513 alcohol training and education seminar;
5514 (f) provide the information described in Subsection (4)(e) on request to:
5515 (i) the Department of Alcoholic Beverage [
5516 (ii) law enforcement; or
5517 (iii) a person licensed by the state or a local government to sell an alcoholic product;
5518 (g) provide the Department of Alcoholic Beverage [
5519 of any seminar provider certified by the division; and
5520 (h) establish a fee amount for each person attending an alcohol training and education
5521 seminar that is sufficient to offset the division's cost of administering this section.
5522 (5) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
5523 Administrative Rulemaking Act:
5524 (a) define what constitutes under this section an individual who:
5525 (i) manages operations at the premises of a licensee engaged in the retail sale of an
5526 alcoholic product for consumption on the premises of the licensee;
5527 (ii) supervises the serving of an alcoholic product to a customer for consumption on the
5528 premises of a licensee;
5529 (iii) serves an alcoholic product to a customer for consumption on the premises of a
5530 licensee;
5531 (iv) directly supervises the sale of beer to a customer for consumption off the premises
5532 of an off-premise beer retailer; or
5533 (v) sells beer to a customer for consumption off the premises of an off-premise beer
5534 retailer;
5535 (b) establish criteria for certifying and recertifying a seminar provider; and
5536 (c) establish guidelines for the manner in which an instructor provides an alcohol
5537 education and training seminar.
5538 (6) A seminar provider shall:
5539 (a) obtain recertification by the division every three years;
5540 (b) ensure that an instructor used by the seminar provider:
5541 (i) follows the curriculum established under this section; and
5542 (ii) conducts an alcohol training and education seminar in accordance with the
5543 guidelines established by rule;
5544 (c) ensure that any information provided by the seminar provider or instructor of a
5545 seminar provider is consistent with:
5546 (i) the curriculum established under this section; and
5547 (ii) this section;
5548 (d) provide the division with the names of all persons who complete an alcohol training
5549 and education seminar provided by the seminar provider;
5550 (e) (i) collect a fee for each person attending an alcohol training and education seminar
5551 in accordance with Subsection (2); and
5552 (ii) forward to the division the portion of the fee that is equal to the amount described
5553 in Subsection (4)(h); and
5554 (f) issue a record to an individual that completes an alcohol training and education
5555 seminar provided by the seminar provider.
5556 (7) (a) If after a hearing conducted in accordance with Title 63G, Chapter 4,
5557 Administrative Procedures Act, the division finds that a seminar provider violates this section
5558 or that an instructor of the seminar provider violates this section, the division may:
5559 (i) suspend the certification of the seminar provider for a period not to exceed 90 days;
5560 (ii) revoke the certification of the seminar provider;
5561 (iii) require the seminar provider to take corrective action regarding an instructor; or
5562 (iv) prohibit the seminar provider from using an instructor until such time that the
5563 seminar provider establishes to the satisfaction of the division that the instructor is in
5564 compliance with Subsection (6)(b).
5565 (b) The division may certify a seminar provider whose certification is revoked:
5566 (i) no sooner than 90 days from the date the certification is revoked; and
5567 (ii) if the seminar provider establishes to the satisfaction of the division that the
5568 seminar provider will comply with this section.
5569 Section 87. Section 63A-17-502 is amended to read:
5570 63A-17-502. Overtime policies for state employees.
5571 (1) As used in this section:
5572 (a) "Accrued overtime hours" means:
5573 (i) for nonexempt employees, overtime hours earned during a fiscal year that, at the end
5574 of the fiscal year, have not been paid and have not been taken as time off by the nonexempt
5575 state employee who accrued them; and
5576 (ii) for exempt employees, overtime hours earned during an overtime year.
5577 (b) "Appointed official" means:
5578 (i) each department executive director and deputy director, each division director, and
5579 each member of a board or commission; and
5580 (ii) any other person employed by a department who is appointed by, or whose
5581 appointment is required by law to be approved by, the governor and who:
5582 (A) is paid a salary by the state; and
5583 (B) who exercises managerial, policy-making, or advisory responsibility.
5584 (c) "Department" means the Department of Government Operations, the Department of
5585 Corrections, the Department of Financial Institutions, the Department of Alcoholic Beverage
5586 [
5587 Commission, the Department of Agriculture and Food, the Department of Human Services, the
5588 Department of Natural Resources, the Department of Transportation, the Department of
5589 Commerce, the Department of Workforce Services, the State Tax Commission, the Department
5590 of Cultural and Community Engagement, the Department of Health, the National Guard, the
5591 Department of Environmental Quality, the Department of Public Safety, the Commission on
5592 Criminal and Juvenile Justice, all merit employees except attorneys in the Office of the
5593 Attorney General, merit employees in the Office of the State Treasurer, merit employees in the
5594 Office of the State Auditor, Department of Veterans and Military Affairs, and the Board of
5595 Pardons and Parole.
5596 (d) "Elected official" means any person who is an employee of the state because the
5597 person was elected by the registered voters of Utah to a position in state government.
5598 (e) "Exempt employee" means a state employee who is exempt as defined by the Fair
5599 Labor Standards Act of 1978, 29 U.S.C. Sec. 201 et seq.
5600 (f) "FLSA" means the Fair Labor Standards Act of 1978, 29 U.S.C. Sec. 201 et seq.
5601 (g) "FLSA agreement" means the agreement authorized by the Fair Labor Standards
5602 Act of 1978, 29 U.S.C. Sec. 201 et seq., by which a nonexempt employee elects the form of
5603 compensation the nonexempt employee will receive for overtime.
5604 (h) "Nonexempt employee" means a state employee who is nonexempt as defined by
5605 the division applying FLSA requirements.
5606 (i) "Overtime" means actual time worked in excess of the employee's defined work
5607 period.
5608 (j) "Overtime year" means the year determined by a department under Subsection
5609 (4)(b) at the end of which an exempt employee's accrued overtime lapses.
5610 (k) "State employee" means every person employed by a department who is not:
5611 (i) an appointed official;
5612 (ii) an elected official; or
5613 (iii) a member of a board or commission who is paid only for per diem or travel
5614 expenses.
5615 (l) "Uniform annual date" means the date when an exempt employee's accrued
5616 overtime lapses.
5617 (m) "Work period" means:
5618 (i) for all nonexempt employees, except law enforcement and hospital employees, a
5619 consecutive seven day 24 hour work period of 40 hours;
5620 (ii) for all exempt employees, a 14 day, 80 hour payroll cycle; and
5621 (iii) for nonexempt law enforcement and hospital employees, the period established by
5622 each department by rule for those employees according to the requirements of the Fair Labor
5623 Standards Act of 1978, 29 U.S.C. Sec. 201 et seq.
5624 (2) Each department shall compensate each state employee who works overtime by
5625 complying with the requirements of this section.
5626 (3) (a) Each department shall negotiate and obtain a signed FLSA agreement from each
5627 nonexempt employee.
5628 (b) In the FLSA agreement, the nonexempt employee shall elect either to be
5629 compensated for overtime by:
5630 (i) taking time off work at the rate of one and one-half hour off for each overtime hour
5631 worked; or
5632 (ii) being paid for the overtime worked at the rate of one and one-half times the rate per
5633 hour that the state employee receives for nonovertime work.
5634 (c) Any nonexempt employee who elects to take time off under this Subsection (3)
5635 shall be paid for any overtime worked in excess of the cap established by the division.
5636 (d) Before working any overtime, each nonexempt employee shall obtain authorization
5637 to work overtime from the employee's immediate supervisor.
5638 (e) Each department shall:
5639 (i) for employees who elect to be compensated with time off for overtime, allow
5640 overtime earned during a fiscal year to be accumulated; and
5641 (ii) for employees who elect to be paid for overtime worked, pay them for overtime
5642 worked in the paycheck for the pay period in which the employee worked the overtime.
5643 (f) If a department pays a nonexempt employee for overtime, that department shall
5644 charge that payment to that department's budget.
5645 (g) At the end of each fiscal year, the Division of Finance shall total all the accrued
5646 overtime hours for nonexempt employees and charge that total against the appropriate fund or
5647 subfund.
5648 (4) (a) (i) Except as provided in Subsection (4)(a)(ii), each department shall
5649 compensate exempt employees who work overtime by granting them time off at the rate of one
5650 hour off for each hour of overtime worked.
5651 (ii) The director of the division may grant limited exceptions to this requirement,
5652 where work circumstances dictate, by authorizing a department to pay employees for overtime
5653 worked at the rate per hour that the employee receives for nonovertime work, if that department
5654 has funds available.
5655 (b) (i) Each department shall:
5656 (A) establish in its written human resource policies a uniform annual date for each
5657 division that is at the end of any pay period; and
5658 (B) communicate the uniform annual date to its employees.
5659 (ii) If any department fails to establish a uniform annual date as required by this
5660 Subsection (4), the director of the division, in conjunction with the director of the Division of
5661 Finance, shall establish the date for that department.
5662 (c) (i) Any overtime earned under this Subsection (4) is not an entitlement, is not a
5663 benefit, and is not a vested right.
5664 (ii) A court may not construe the overtime for exempt employees authorized by this
5665 Subsection (4) as an entitlement, a benefit, or as a vested right.
5666 (d) At the end of the overtime year, upon transfer to another department at any time,
5667 and upon termination, retirement, or other situations where the employee will not return to
5668 work before the end of the overtime year:
5669 (i) any of an exempt employee's overtime that is more than the maximum established
5670 by division rule lapses; and
5671 (ii) unless authorized by the director of the division under Subsection (4)(a)(ii), a
5672 department may not compensate the exempt employee for that lapsed overtime by paying the
5673 employee for the overtime or by granting the employee time off for the lapsed overtime.
5674 (e) Before working any overtime, each exempt employee shall obtain authorization to
5675 work overtime from the exempt employee's immediate supervisor.
5676 (f) If a department pays an exempt employee for overtime under authorization from the
5677 director of the division, that department shall charge that payment to that department's budget
5678 in the pay period earned.
5679 (5) The division shall:
5680 (a) ensure that the provisions of the FLSA and this section are implemented throughout
5681 state government;
5682 (b) determine, for each state employee, whether that employee is exempt, nonexempt,
5683 law enforcement, or has some other status under the FLSA;
5684 (c) in coordination with modifications to the systems operated by the Division of
5685 Finance, make rules:
5686 (i) establishing procedures for recording overtime worked that comply with FLSA
5687 requirements;
5688 (ii) establishing requirements governing overtime worked while traveling and
5689 procedures for recording that overtime that comply with FLSA requirements;
5690 (iii) establishing requirements governing overtime worked if the employee is "on call"
5691 and procedures for recording that overtime that comply with FLSA requirements;
5692 (iv) establishing requirements governing overtime worked while an employee is being
5693 trained and procedures for recording that overtime that comply with FLSA requirements;
5694 (v) subject to the FLSA, establishing the maximum number of hours that a nonexempt
5695 employee may accrue before a department is required to pay the employee for the overtime
5696 worked;
5697 (vi) subject to the FLSA, establishing the maximum number of overtime hours for an
5698 exempt employee that do not lapse; and
5699 (vii) establishing procedures for adjudicating appeals of any FLSA determinations
5700 made by the division as required by this section;
5701 (d) monitor departments for compliance with the FLSA; and
5702 (e) recommend to the Legislature and the governor any statutory changes necessary
5703 because of federal government action.
5704 (6) (a) In coordination with the procedures for recording overtime worked established
5705 in rule by the division, the Division of Finance shall modify its payroll and human resource
5706 systems to accommodate those procedures.
5707 (b) Notwithstanding the procedures and requirements of Title 63G, Chapter 4,
5708 Administrative Procedures Act, Section 63A-17-602, and Section 67-19a-301, any employee
5709 who is aggrieved by the FLSA designation made by the division as required by this section may
5710 appeal that determination to the director of the division by following the procedures and
5711 requirements established in division rule.
5712 (c) Upon receipt of an appeal under this section, the director shall notify the executive
5713 director of the employee's department that the appeal has been filed.
5714 (d) If the employee is aggrieved by the decision of the director, the employee shall
5715 appeal that determination to the Department of Labor, Wage and Hour Division, according to
5716 the procedures and requirements of federal law.
5717 Section 88. Section 63A-17-807 is amended to read:
5718 63A-17-807. Department award program.
5719 (1) As used in this section:
5720 (a) "Department" means the Department of Government Operations, the Department of
5721 Agriculture and Food, the Department of Alcoholic Beverage [
5722 Department of Commerce, the Department of Cultural and Community Engagement, the
5723 Department of Corrections, the Department of Workforce Services, the Department of
5724 Environmental Quality, the Department of Financial Institutions, the Department of Health, the
5725 Department of Human Services, the Insurance Department, the National Guard, the Department
5726 of Natural Resources, the Department of Public Safety, the Public Service Commission, the
5727 Labor Commission, the State Board of Education, the Utah Board of Higher Education, the
5728 State Tax Commission, and the Department of Transportation.
5729 (b) "Department head" means the individual or body of individuals in whom the
5730 ultimate legal authority of the department is vested by law.
5731 (2) There is created a department awards program to award an outstanding employee in
5732 each department of state government.
5733 (3) (a) On or before April 1 of each year, each department head shall solicit
5734 nominations for outstanding employee of the year for that department from the employees in
5735 that department.
5736 (b) On or before July 1 of each year, the department head shall:
5737 (i) select a person from the department to receive the outstanding employee of the year
5738 award using the criteria established in Subsection (3)(c); and
5739 (ii) announce the recipient of the award to the employees of the department.
5740 (c) Department heads shall make the award to an employee who demonstrates:
5741 (i) extraordinary competence in performing the employee's function;
5742 (ii) creativity in identifying problems and devising workable, cost-effective solutions;
5743 (iii) excellent relationships with the public and other employees;
5744 (iv) a commitment to serving the public as the client; and
5745 (v) a commitment to economy and efficiency in government.
5746 (4) (a) The division shall divide any appropriation for outstanding department
5747 employee awards that the division receives from the Legislature equally among the
5748 departments.
5749 (b) If a department receives money from the division or if a department budget allows,
5750 that department head shall provide the employee with a bonus, a plaque, or some other suitable
5751 acknowledgement of the award.
5752 (5) (a) A department head may name the award after an exemplary present or former
5753 employee of the department.
5754 (b) A department head may not name the award for oneself or for any relative as
5755 defined in Section 52-3-1.
5756 Section 89. Section 63B-3-301 is amended to read:
5757 63B-3-301. Legislative intent -- Additional projects.
5758 (1) It is the intent of the Legislature that, for any lease purchase agreement that the
5759 Legislature may authorize the Division of Facilities Construction and Management to enter into
5760 during its 1994 Annual General Session, the State Building Ownership Authority, at the
5761 reasonable rates and amounts it may determine, and with technical assistance from the state
5762 treasurer, the director of the Division of Finance, and the executive director of the Governor's
5763 Office of Planning and Budget, may seek out the most cost effective and prudent lease
5764 purchase plans available to the state and may, pursuant to Chapter 1, Part 3, State Building
5765 Ownership Authority Act, certificate out interests in, or obligations of the authority pertaining
5766 to:
5767 (a) the lease purchase obligation; or
5768 (b) lease rental payments under the lease purchase obligation.
5769 (2) It is the intent of the Legislature that the Department of Transportation dispose of
5770 surplus real properties and use the proceeds from those properties to acquire or construct
5771 through the Division of Facilities Construction and Management a new District Two Complex.
5772 (3) It is the intent of the Legislature that the State Building Board allocate funds from
5773 the Capital Improvement appropriation and donations to cover costs associated with the
5774 upgrade of the Governor's Residence that go beyond the restoration costs which can be covered
5775 by insurance proceeds.
5776 (4) (a) It is the intent of the Legislature to authorize the State Building Ownership
5777 Authority under authority of Chapter 1, Part 3, State Building Ownership Authority Act, to
5778 issue or execute obligations or enter into or arrange for a lease purchase agreement in which
5779 participation interests may be created, to provide up to $10,600,000 for the construction of a
5780 Natural Resources Building in Salt Lake City, together with additional amounts necessary to:
5781 (i) pay costs of issuance;
5782 (ii) pay capitalized interest; and
5783 (iii) fund any debt service reserve requirements.
5784 (b) It is the intent of the Legislature that the authority seek out the most cost effective
5785 and prudent lease purchase plan available with technical assistance from the state treasurer, the
5786 director of the Division of Finance, and the executive director of the Governor's Office of
5787 Planning and Budget.
5788 (c) It is the intent of the Legislature that the operating budget for the Department of
5789 Natural Resources not be increased to fund these lease payments.
5790 (5) (a) It is the intent of the Legislature to authorize the State Building Ownership
5791 Authority under authority of Chapter 1, Part 3, State Building Ownership Authority Act, to
5792 issue or execute obligations or enter into or arrange for a lease purchase agreement in which
5793 participation interests may be created, to provide up to $8,300,000 for the acquisition of the
5794 office buildings currently occupied by the Department of Environmental Quality and
5795 approximately 19 acres of additional vacant land at the Airport East Business Park in Salt Lake
5796 City, together with additional amounts necessary to:
5797 (i) pay costs of issuance;
5798 (ii) pay capitalized interest; and
5799 (iii) fund any debt service reserve requirements.
5800 (b) It is the intent of the Legislature that the authority seek out the most cost effective
5801 and prudent lease purchase plan available with technical assistance from the state treasurer, the
5802 director of the Division of Finance, and the executive director of the Governor's Office of
5803 Planning and Budget.
5804 (6) (a) It is the intent of the Legislature to authorize the State Building Ownership
5805 Authority under authority of Chapter 1, Part 3, State Building Ownership Authority Act, to
5806 issue or execute obligations or enter into or arrange for a lease purchase agreement in which
5807 participation interests may be created, to provide up to $9,000,000 for the acquisition or
5808 construction of up to two field offices for the Department of Human Services in the
5809 southwestern portion of Salt Lake County, together with additional amounts necessary to:
5810 (i) pay costs of issuance;
5811 (ii) pay capitalized interest; and
5812 (iii) fund any debt service reserve requirements.
5813 (b) It is the intent of the Legislature that the authority seek out the most cost effective
5814 and prudent lease purchase plan available with technical assistance from the state treasurer, the
5815 director of the Division of Finance, and the executive director of the Governor's Office of
5816 Planning and Budget.
5817 (7) (a) It is the intent of the Legislature to authorize the State Building Ownership
5818 Authority under authority of Chapter 1, Part 3, State Building Ownership Authority Act, to
5819 issue or execute obligations or enter into or arrange for lease purchase agreements in which
5820 participation interests may be created, to provide up to $5,000,000 for the acquisition or
5821 construction of up to 13 stores for the Department of Alcoholic Beverage [
5822 together with additional amounts necessary to:
5823 (i) pay costs of issuance;
5824 (ii) pay capitalized interest; and
5825 (iii) fund any debt service reserve requirements.
5826 (b) It is the intent of the Legislature that the authority seek out the most cost effective
5827 and prudent lease purchase plan available with technical assistance from the state treasurer, the
5828 director of the Division of Finance, and the executive director of the Governor's Office of
5829 Planning and Budget.
5830 (c) It is the intent of the Legislature that the operating budget for the Department of
5831 Alcoholic Beverage [
5832 (8) (a) It is the intent of the Legislature to authorize the State Building Ownership
5833 Authority under authority of Chapter 1, Part 3, State Building Ownership Authority Act, to
5834 issue or execute obligations or enter into or arrange for a lease purchase agreement in which
5835 participation interests may be created, to provide up to $6,800,000 for the construction of a
5836 Prerelease and Parole Center for the Department of Corrections, containing a minimum of 300
5837 beds, together with additional amounts necessary to:
5838 (i) pay costs of issuance;
5839 (ii) pay capitalized interest; and
5840 (iii) fund any debt service reserve requirements.
5841 (b) It is the intent of the Legislature that the authority seek out the most cost effective
5842 and prudent lease purchase plan available with technical assistance from the state treasurer, the
5843 director of the Division of Finance, and the executive director of the Governor's Office of
5844 Planning and Budget.
5845 (9) If S.B. 275, 1994 General Session, which authorizes funding for a Courts Complex
5846 in Salt Lake City, becomes law, it is the intent of the Legislature that:
5847 (a) the Legislative Management Committee, the Interim Appropriation Subcommittees
5848 for General Government and Capital Facilities and Executive Offices, Courts, and Corrections,
5849 the Office of the Legislative Fiscal Analyst, the Governor's Office of Planning and Budget, and
5850 the State Building Board participate in a review of the proposed facility design for the Courts
5851 Complex no later than December 1994; and
5852 (b) although this review will not affect the funding authorization issued by the 1994
5853 Legislature, it is expected that Division of Facilities Construction and Management will give
5854 proper attention to concerns raised in these reviews and make appropriate design changes
5855 pursuant to the review.
5856 (10) It is the intent of the Legislature that:
5857 (a) the Division of Facilities Construction and Management, in cooperation with the
5858 Division of Youth Corrections renamed in 2003 to the Division of Juvenile Justice Services,
5859 develop a flexible use prototype facility for the Division of Youth Corrections renamed in 2003
5860 to the Division of Juvenile Justice Services;
5861 (b) the development process use existing prototype proposals unless it can be
5862 quantifiably demonstrated that the proposals cannot be used;
5863 (c) the facility is designed so that with minor modifications, it can accommodate
5864 detention, observation and assessment, transition, and secure programs as needed at specific
5865 geographical locations;
5866 (d) (i) funding as provided in the fiscal year 1995 bond authorization for the Division
5867 of Youth Corrections renamed in 2003 to the Division of Juvenile Justice Services is used to
5868 design and construct one facility and design the other;
5869 (ii) the Division of Youth Corrections renamed in 2003 to the Division of Juvenile
5870 Justice Services shall:
5871 (A) determine the location for the facility for which design and construction are fully
5872 funded; and
5873 (B) in conjunction with the Division of Facilities Construction and Management,
5874 determine the best methodology for design and construction of the fully funded facility;
5875 (e) the Division of Facilities Construction and Management submit the prototype as
5876 soon as possible to the Infrastructure and General Government Appropriations Subcommittee
5877 and Executive Offices, Criminal Justice, and Legislature Appropriation Subcommittee for
5878 review;
5879 (f) the Division of Facilities Construction and Management issue a Request for
5880 Proposal for one of the facilities, with that facility designed and constructed entirely by the
5881 winning firm;
5882 (g) the other facility be designed and constructed under the existing Division of
5883 Facilities Construction and Management process;
5884 (h) that both facilities follow the program needs and specifications as identified by
5885 Division of Facilities Construction and Management and the Division of Youth Corrections
5886 renamed in 2003 to the Division of Juvenile Justice Services in the prototype; and
5887 (i) the fully funded facility should be ready for occupancy by September 1, 1995.
5888 (11) It is the intent of the Legislature that the fiscal year 1995 funding for the State Fair
5889 Park Master Study be used by the Division of Facilities Construction and Management to
5890 develop a master plan for the State Fair Park that:
5891 (a) identifies capital facilities needs, capital improvement needs, building
5892 configuration, and other long term needs and uses of the State Fair Park and its buildings; and
5893 (b) establishes priorities for development, estimated costs, and projected timetables.
5894 (12) It is the intent of the Legislature that:
5895 (a) the Division of Facilities Construction and Management, in cooperation with the
5896 Division of State Parks, formerly known as the Division of Parks and Recreation, and
5897 surrounding counties, develop a master plan and general program for the phased development
5898 of Antelope Island;
5899 (b) the master plan:
5900 (i) establish priorities for development;
5901 (ii) include estimated costs and projected time tables; and
5902 (iii) include recommendations for funding methods and the allocation of
5903 responsibilities between the parties; and
5904 (c) the results of the effort be reported to the Natural Resources, Agriculture, and
5905 Environmental Quality Appropriations Subcommittee and Infrastructure and General
5906 Government Appropriations Subcommittee.
5907 (13) It is the intent of the Legislature to authorize the University of Utah to use:
5908 (a) bond reserves to plan, design, and construct the Kingsbury Hall renovation under
5909 the supervision of the director of the Division of Facilities Construction and Management
5910 unless supervisory authority is delegated by the director; and
5911 (b) donated and other nonappropriated funds to plan, design, and construct the Biology
5912 Research Building under the supervision of the director of the Division of Facilities
5913 Construction and Management unless supervisory authority is delegated by the director.
5914 (14) It is the intent of the Legislature to authorize Utah State University to use:
5915 (a) federal and other funds to plan, design, and construct the Bee Lab under the
5916 supervision of the director of the Division of Facilities Construction and Management unless
5917 supervisory authority is delegated by the director;
5918 (b) donated and other nonappropriated funds to plan, design, and construct an Athletic
5919 Facility addition and renovation under the supervision of the director of the Division of
5920 Facilities Construction and Management unless supervisory authority is delegated by the
5921 director;
5922 (c) donated and other nonappropriated funds to plan, design, and construct a renovation
5923 to the Nutrition and Food Science Building under the supervision of the director of the
5924 Division of Facilities Construction and Management unless supervisory authority is delegated
5925 by the director; and
5926 (d) federal and private funds to plan, design, and construct the Millville Research
5927 Facility under the supervision of the director of the Division of Facilities Construction and
5928 Management unless supervisory authority is delegated by the director.
5929 (15) It is the intent of the Legislature to authorize Salt Lake Community College to use:
5930 (a) institutional funds to plan, design, and construct a remodel to the Auto Trades
5931 Office and Learning Center under the supervision of the director of the Division of Facilities
5932 Construction and Management unless supervisory authority is delegated by the director;
5933 (b) institutional funds to plan, design, and construct the relocation and expansion of a
5934 temporary maintenance compound under the supervision of the director of the Division of
5935 Facilities Construction and Management unless supervisory authority is delegated by the
5936 director; and
5937 (c) institutional funds to plan, design, and construct the Alder Amphitheater under the
5938 supervision of the director of the Division of Facilities Construction and Management unless
5939 supervisory authority is delegated by the director.
5940 (16) It is the intent of the Legislature to authorize Southern Utah University to use:
5941 (a) federal funds to plan, design, and construct a Community Services Building under
5942 the supervision of the director of the Division of Facilities Construction and Management
5943 unless supervisory authority is delegated by the director; and
5944 (b) donated and other nonappropriated funds to plan, design, and construct a stadium
5945 expansion under the supervision of the director of the Division of Facilities Construction and
5946 Management unless supervisory authority is delegated by the director.
5947 (17) It is the intent of the Legislature to authorize the Department of Corrections to use
5948 donated funds to plan, design, and construct a Prison Chapel at the Central Utah Correctional
5949 Facility in Gunnison under the supervision of the director of the Division of Facilities
5950 Construction and Management unless supervisory authority is delegated by the director.
5951 (18) If the Utah National Guard does not relocate in the Signetics Building, it is the
5952 intent of the Legislature to authorize the Guard to use federal funds and funds from Provo City
5953 to plan and design an Armory in Provo, Utah, under the supervision of the director of the
5954 Division of Facilities Construction and Management unless supervisory authority is delegated
5955 by the director.
5956 (19) It is the intent of the Legislature that the Utah Department of Transportation use
5957 $250,000 of the fiscal year 1995 highway appropriation to fund an environmental study in
5958 Ogden, Utah of the 2600 North Corridor between Washington Boulevard and I-15.
5959 (20) It is the intent of the Legislature that the Ogden-Weber Applied Technology
5960 Center use the money appropriated for fiscal year 1995 to design the Metal Trades Building
5961 and purchase equipment for use in that building that could be used in metal trades or other
5962 programs in other Applied Technology Centers.
5963 (21) It is the intent of the Legislature that the Bridgerland Applied Technology Center
5964 and the Ogden-Weber Applied Technology Center projects as designed in fiscal year 1995 be
5965 considered as the highest priority projects for construction funding in fiscal year 1996.
5966 (22) It is the intent of the Legislature that:
5967 (a) the Division of Facilities Construction and Management complete physical space
5968 utilization standards by June 30, 1995, for the use of technology education activities;
5969 (b) these standards are to be developed with and approved by the State Board of
5970 Education, the Board of Regents, and the Utah State Building Board;
5971 (c) these physical standards be used as the basis for:
5972 (i) determining utilization of any technology space based on number of stations capable
5973 and occupied for any given hour of operation; and
5974 (ii) requests for any new space or remodeling;
5975 (d) the fiscal year 1995 projects at the Bridgerland Applied Technology Center and the
5976 Ogden-Weber Applied Technology Center are exempt from this process; and
5977 (e) the design of the Davis Applied Technology Center take into account the utilization
5978 formulas established by the Division of Facilities Construction and Management.
5979 (23) It is the intent of the Legislature that Utah Valley State College may use the
5980 money from the bond allocated to the remodel of the Signetics building to relocate its technical
5981 education programs at other designated sites or facilities under the supervision of the director
5982 of the Division of Facilities Construction and Management unless supervisory authority is
5983 delegated by the director.
5984 (24) It is the intent of the Legislature that the money provided for the fiscal year 1995
5985 project for the Bridgerland Applied Technology Center be used to design and construct the
5986 space associated with Utah State University and design the technology center portion of the
5987 project.
5988 (25) It is the intent of the Legislature that the governor provide periodic reports on the
5989 expenditure of the funds provided for electronic technology, equipment, and hardware to the
5990 Infrastructure and General Government Appropriations Subcommittee, and the Legislative
5991 Management Committee.
5992 Section 90. Section 63B-5-201 is amended to read:
5993 63B-5-201. Legislative intent statements.
5994 (1) If the United States Department of Defense has not provided matching funds to
5995 construct the National Guard Armory in Orem by December 31, 1997, the Division of Facilities
5996 Construction and Management shall transfer any funds received from issuance of a General
5997 Obligation Bond for benefit of the Orem Armory to the Provo Armory for capital
5998 improvements.
5999 (2) It is the intent of the Legislature that the University of Utah use institutional funds
6000 to plan, design, and construct:
6001 (a) the Health Science East parking structure under the supervision of the director of
6002 the Division of Facilities Construction and Management unless supervisory authority is
6003 delegated by the director;
6004 (b) the Health Science Office Building under the supervision of the director of the
6005 Division of Facilities Construction and Management unless supervisory authority is delegated
6006 by the director; and
6007 (c) the new Student Housing/Olympic Athletes Village under the supervision of the
6008 director of the Division of Facilities Construction and Management unless supervisory
6009 authority is delegated by the director.
6010 (3) It is the intent of the Legislature that Utah State University use institutional funds to
6011 plan, design, and construct a multipurpose facility under the supervision of the director of the
6012 Division of Facilities Construction and Management unless supervisory authority is delegated
6013 by the director.
6014 (4) It is the intent of the Legislature that the Utah Geologic Survey use agency internal
6015 funding to plan, design, and construct a sample library facility under the supervision of the
6016 director of the Division of Facilities Construction and Management unless supervisory
6017 authority is delegated by the director.
6018 (5) (a) If legislation introduced in the 1996 General Session to fund the Wasatch State
6019 Park Club House does not pass, the State Building Ownership Authority, under authority of
6020 Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act, may issue or execute
6021 obligations, or enter into or arrange for a lease purchase agreement in which participation
6022 interests may be created, to provide up to $1,500,000 for the remodel and expansion of the
6023 clubhouse at Wasatch Mountain State Park for the Division of State Parks, formerly known as
6024 the Division of Parks and Recreation, together with additional amounts necessary to:
6025 (i) pay costs of issuance;
6026 (ii) pay capitalized interest; and
6027 (iii) fund any debt service reserve requirements.
6028 (b) The State Building Ownership Authority shall work cooperatively with the
6029 Division of State Parks, formerly known as the Division of Parks and Recreation, to seek out
6030 the most cost effective and prudent lease purchase plan available.
6031 (6) (a) The State Building Ownership Authority, under authority of Title 63B, Chapter
6032 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
6033 into or arrange for a lease purchase agreement in which participation interests may be created,
6034 to provide up to $835,300 for the construction of a liquor store in the Snyderville area, together
6035 with additional amounts necessary to:
6036 (i) pay costs of issuance;
6037 (ii) pay capitalized interest; and
6038 (iii) fund any debt service reserve requirements.
6039 (b) The State Building Ownership Authority shall work cooperatively with the
6040 Department of Alcoholic Beverage [
6041 prudent lease purchase plan available.
6042 (7) (a) The State Building Ownership Authority, under authority of Title 63B, Chapter
6043 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
6044 into or arrange for a lease purchase agreement in which participation interests may be created,
6045 to provide up to $15,000,000 for the construction of the Huntsman Cancer Institute, together
6046 with additional amounts necessary to:
6047 (i) pay costs of issuance;
6048 (ii) pay capitalized interest; and
6049 (iii) fund any debt service reserve requirements.
6050 (b) The State Building Ownership Authority shall work cooperatively with the
6051 University of Utah to seek out the most cost effective and prudent lease purchase plan
6052 available.
6053 (c) It is the intent of the Legislature that the University of Utah lease land to the State
6054 Building Ownership Authority for the construction of the Huntsman Cancer Institute facility.
6055 (8) (a) The State Building Ownership Authority, under authority of Title 63B, Chapter
6056 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
6057 into or arrange for a lease purchase agreement in which participation interests may be created,
6058 to provide up to $857,600 for the construction of an addition to the Human Services facility in
6059 Vernal, Utah together with additional amounts necessary to:
6060 (i) pay costs of issuance;
6061 (ii) pay capitalized interest; and
6062 (iii) fund any debt service reserve requirements.
6063 (b) The State Building Ownership Authority shall work cooperatively with the
6064 Department of Human Services to seek out the most cost effective and prudent lease purchase
6065 plan available.
6066 (9) (a) The State Building Ownership Authority, under authority of Title 63B, Chapter
6067 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
6068 into or arrange for a lease purchase agreement in which participation interests may be created,
6069 to provide up to $3,470,200 for the construction of the Student Services Center, at Utah State
6070 University Eastern, together with additional amounts necessary to:
6071 (i) pay costs of issuance;
6072 (ii) pay capitalized interest; and
6073 (iii) fund any debt service reserve requirements.
6074 (b) The State Building Ownership Authority shall work cooperatively with Utah State
6075 University Eastern to seek out the most cost effective and prudent lease purchase plan
6076 available.
6077 (10) (a) Notwithstanding anything to the contrary in Title 53B, Chapter 21, Revenue
6078 Bonds, which prohibits the issuance of revenue bonds payable from legislative appropriations,
6079 the State Board of Regents, on behalf of Dixie College, may issue, sell, and deliver revenue
6080 bonds or other evidences of indebtedness of Dixie College to borrow money on the credit of
6081 the income and revenues, including legislative appropriations, of Dixie College, to finance the
6082 acquisition of the Dixie Center.
6083 (b) (i) The bonds or other evidences of indebtedness authorized by this section shall be
6084 issued in accordance with Title 53B, Chapter 21, Revenue Bonds, under terms and conditions
6085 and in amounts that the board, by resolution, determines are reasonable and necessary and may
6086 not exceed $6,000,000 together with additional amounts necessary to:
6087 (A) pay cost of issuance;
6088 (B) pay capitalized interest; and
6089 (C) fund any debt service reserve requirements.
6090 (ii) To the extent that future legislative appropriations will be required to provide for
6091 payment of debt service in full, the board shall ensure that the revenue bonds are issued
6092 containing a clause that provides for payment from future legislative appropriations that are
6093 legally available for that purpose.
6094 (11) (a) The State Building Ownership Authority, under authority of Title 63B, Chapter
6095 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
6096 into or arrange for a lease purchase agreement in which participation interests may be created,
6097 to provide up to $10,479,000 for the construction of a facility for the Courts - Davis County
6098 Regional Expansion, together with additional amounts necessary to:
6099 (i) pay costs of issuance;
6100 (ii) pay capitalized interest; and
6101 (iii) fund any debt service reserve requirements.
6102 (b) The State Building Ownership Authority shall work cooperatively with the
6103 Administrative Office of the Courts to seek out the most cost effective and prudent lease
6104 purchase plan available.
6105 (12) (a) The State Building Ownership Authority, under authority of Title 63B, Chapter
6106 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
6107 into or arrange for a lease purchase agreement in which participation interests may be created,
6108 to provide up to $4,200,000 for the purchase and remodel of the Washington County
6109 Courthouse, together with additional amounts necessary to:
6110 (i) pay costs of issuance;
6111 (ii) pay capitalized interest; and
6112 (iii) fund any debt service reserve requirements.
6113 (b) The State Building Ownership Authority shall work cooperatively with the
6114 Administrative Office of the Courts to seek out the most cost effective and prudent lease
6115 purchase plan available.
6116 (13) (a) The State Building Ownership Authority, under authority of Title 63B, Chapter
6117 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
6118 into or arrange for a lease purchase agreement in which participation interests may be created,
6119 to provide up to $14,299,700 for the construction of a facility for the State Library and the
6120 Division of Services for the Blind and Visually Impaired, together with additional amounts
6121 necessary to:
6122 (i) pay costs of issuance;
6123 (ii) pay capitalized interest; and
6124 (iii) fund any debt service reserve requirements.
6125 (b) The State Building Ownership Authority shall work cooperatively with the State
6126 Board of Education and the Governor's Office of Economic Opportunity to seek out the most
6127 cost effective and prudent lease purchase plan available.
6128 Section 91. Section 63B-10-301 is amended to read:
6129 63B-10-301. Revenue bond authorizations.
6130 (1) (a) It is the intent of the Legislature that the State Building Ownership Authority,
6131 under the authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act,
6132 may issue or execute obligations, or enter into or arrange for a lease purchase agreement in
6133 which participation interests may be created, to provide up to $8,281,000 for the construction
6134 of an expansion of the Department of Alcoholic Beverage [
6135 together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
6136 and fund any debt service reserve requirements.
6137 (b) It is the intent of the Legislature that enhanced revenues of the Department of
6138 Alcoholic Beverage [
6139 any obligation created under authority of this Subsection (1).
6140 (2) (a) It is the intent of the Legislature that the State Building Ownership Authority,
6141 under the authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act,
6142 may issue or execute obligations, or enter into or arrange for a lease purchase agreement in
6143 which participation interests may be created, to provide up to $957,100 for the acquisition of a
6144 site and construction of a store in the western part of Salt Lake County for the Department of
6145 Alcoholic Beverage [
6146 of issuance, pay capitalized interest, and fund any debt service reserve requirements.
6147 (b) It is the intent of the Legislature that enhanced revenues of the Department of
6148 Alcoholic Beverage [
6149 any obligation created under authority of this Subsection (2).
6150 (3) (a) It is the intent of the Legislature that the State Building Ownership Authority,
6151 under the authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act,
6152 may issue or execute obligations, or enter into or arrange for a lease purchase agreement in
6153 which participation interests may be created, to provide up to $1,497,700 for the acquisition of
6154 a site and construction of a store in the southern part of Salt Lake County for the Department of
6155 Alcoholic Beverage [
6156 of issuance, pay capitalized interest, and fund any debt service reserve requirements.
6157 (b) It is the intent of the Legislature that enhanced revenues of the Department of
6158 Alcoholic Beverage [
6159 any obligation created under authority of this Subsection (3).
6160 (4) (a) It is the intent of the Legislature that the State Building Ownership Authority,
6161 under the authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act,
6162 may issue or execute obligations, or enter into or arrange for a lease purchase agreement in
6163 which participation interests may be created, to provide up to $100,000,000 for the acquisition
6164 and construction of a cancer clinical research hospital facility adjacent to the University of
6165 Utah Medical Center, together with additional amounts necessary to pay costs of issuance, pay
6166 capitalized interest, and fund any debt service reserve requirements.
6167 (b) The State Building Ownership Authority shall work cooperatively with the
6168 Division of Facilities Construction and Management and the University of Utah to seek out the
6169 most cost effective and prudent lease purchase plan available.
6170 (c) It is the intent of the Legislature that the University of Utah lease land to the State
6171 Building Ownership Authority for the construction of a cancer clinical research hospital facility
6172 adjacent to the University of Utah Medical Center.
6173 (d) The anticipated revenue sources for repayment of any obligation created under
6174 authority of this section are:
6175 (i) the institutional funds of the University of Utah, including the University's annual
6176 distribution of tobacco settlement funds from the state; and
6177 (ii) donations from the Huntsman Cancer Foundation and other donors.
6178 (e) By September 1 of each year of the existence of this revenue bond, the University
6179 of Utah shall give an annual report regarding the status of the bond and the bond payments to
6180 the Legislative Fiscal Analyst. This report shall be reviewed by the Higher Education
6181 Appropriations Subcommittee and the Capital Facilities Appropriation Subcommittee.
6182 (5) It is the intent of the Legislature that:
6183 (a) the Board of Regents, on behalf of the University of Utah, issue, sell, and deliver
6184 revenue bonds or other evidences of indebtedness of the University of Utah to borrow money
6185 on the credit, revenues, and reserves of the University of Utah, other than appropriations of the
6186 Legislature, to finance the cost of acquiring, constructing, furnishing, and equipping an
6187 expansion of the University Hospital;
6188 (b) University Hospital revenues be used as the primary revenue source for repayment
6189 of any obligation created under authority of this section; and
6190 (c) the bonds or other evidences of indebtedness authorized by this section may provide
6191 up to $25,000,000, together with other amounts necessary to pay costs of issuance, pay
6192 capitalized interest, and fund any debt service reserve requirements.
6193 (6) It is the intent of the Legislature that:
6194 (a) the Board of Regents, on behalf of Salt Lake Community College, issue, sell, and
6195 deliver revenue bonds or other evidences of indebtedness of Salt Lake Community College to
6196 borrow money on the credit, revenues, and reserves of Salt Lake Community College, other
6197 than appropriations of the Legislature, to finance the cost of acquiring, constructing, furnishing,
6198 and equipping the remodel of the cafeteria and expansion of the Student Center;
6199 (b) student fees be used as the primary revenue source for repayment of any obligation
6200 created under authority of this section; and
6201 (c) the bonds or other evidences of indebtedness authorized by this section may provide
6202 up to $6,000,000, together with other amounts necessary to pay costs of issuance, pay
6203 capitalized interest, and fund any debt service reserve requirements.
6204 (7) It is the intent of the Legislature that:
6205 (a) the Board of Regents, on behalf of Dixie College, issue, sell, and deliver revenue
6206 bonds or other evidences of indebtedness of Dixie College to borrow money on the credit,
6207 revenues, and reserves of Dixie College, other than appropriations of the Legislature, to finance
6208 the cost of acquiring, constructing, furnishing, and equipping an expansion of the Gardner
6209 Student Center;
6210 (b) student fees be used as the primary revenue source for repayment of any obligation
6211 created under authority of this section; and
6212 (c) the bonds or other evidences of indebtedness authorized by this section may provide
6213 up to $1,500,000, together with other amounts necessary to pay costs of issuance, pay
6214 capitalized interest, and fund any debt service reserve requirements.
6215 Section 92. Section 63B-11-701 is amended to read:
6216 63B-11-701. Revenue bond authorizations.
6217 (1) It is the intent of the Legislature that:
6218 (a) the Board of Regents, on behalf of the University of Utah, issue, sell, and deliver
6219 revenue bonds or other evidences of indebtedness of the University of Utah to borrow money
6220 on the credit, revenues, and reserves of the University of Utah, other than appropriations of the
6221 Legislature, to refinance the cost of acquiring, constructing, furnishing, and equipping the
6222 East-Campus Central Plant and related energy improvements;
6223 (b) savings in heating and cooling costs be used as the primary revenue source for
6224 repayment of any obligation created under authority of this section; and
6225 (c) the bonds or other evidences of indebtedness authorized by this section may provide
6226 up to $33,000,000, together with other amounts necessary to pay costs of issuance, pay
6227 capitalized interest, and fund any debt service reserve requirements.
6228 (2) It is the intent of the Legislature that:
6229 (a) the Board of Regents, on behalf of Utah State University, issue, sell, and deliver
6230 revenue bonds or other evidences of indebtedness of Utah State University to borrow money on
6231 the credit, revenues, and reserves of Utah State University, other than appropriations of the
6232 Legislature, to finance the cost of acquiring, constructing, furnishing, and equipping research
6233 and office facilities at its Research Park;
6234 (b) revenues from research activities, the Utah State University Research Foundation,
6235 and other institutional funds be used as the primary revenue source for repayment of any
6236 obligation created under authority of this section; and
6237 (c) the bonds or other evidences of indebtedness authorized by this section may provide
6238 up to $19,000,000, together with other amounts necessary to pay costs of issuance, pay
6239 capitalized interest, and fund any debt service reserve requirements.
6240 (3) It is the intent of the Legislature that:
6241 (a) the Board of Regents, on behalf of Southern Utah University, issue, sell, and deliver
6242 revenue bonds or other evidences of indebtedness of Southern Utah University to borrow
6243 money on the credit, revenues, and reserves of Southern Utah University, other than
6244 appropriations of the Legislature, to finance the cost of acquiring, constructing, furnishing, and
6245 equipping a Student Living and Learning Facility;
6246 (b) student housing and other auxiliary revenues and student building fees be used as
6247 the primary revenue source for repayment of any obligation created under authority of this
6248 section; and
6249 (c) the bonds or other evidences of indebtedness authorized by this section may provide
6250 up to $9,000,000, together with other amounts necessary to pay costs of issuance, pay
6251 capitalized interest, and fund any debt service reserve requirements.
6252 (4) It is the intent of the Legislature that:
6253 (a) the Board of Regents, on behalf of Snow College, issue, sell, and deliver revenue
6254 bonds or other evidences of indebtedness of Snow College to borrow money on the credit,
6255 revenues, and reserves of Snow College, other than appropriations of the Legislature, to finance
6256 the cost of acquiring, constructing, furnishing, and equipping a Multi-Event Center in
6257 Richfield;
6258 (b) usage fees and other operating revenues be used as the primary revenue source for
6259 repayment of any obligation created under authority of this section; and
6260 (c) the bonds or other evidences of indebtedness authorized by this section may provide
6261 up to $2,500,000, together with other amounts necessary to pay costs of issuance, pay
6262 capitalized interest, and fund any debt service reserve requirements.
6263 (5) It is the intent of the Legislature that the State Building Ownership Authority, under
6264 the authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act, may
6265 issue or execute obligations, or enter into or arrange for a lease purchase agreement in which
6266 participation interests may be created, to provide up to $1,836,000 for the acquisition of a site
6267 and construction of a store in Tooele for the Department of Alcoholic Beverage [
6268 Services, together with additional amounts necessary to pay costs of issuance, pay capitalized
6269 interest, and fund any debt service reserve requirements.
6270 Section 93. Section 63B-13-201 is amended to read:
6271 63B-13-201. Revenue bond authorizations -- State Building Ownership
6272 Authority.
6273 (1) (a) It is the intent of the Legislature that the State Building Ownership Authority,
6274 under the authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act,
6275 may issue or execute obligations, or enter into or arrange for a lease purchase agreement in
6276 which participation interests may be created, to provide up to $8,205,000 for the acquisition
6277 and construction of five stores for the Department of Alcoholic Beverage [
6278 together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
6279 and fund any debt service reserve requirements.
6280 (b) It is the intent of the Legislature that the stores to be addressed through this
6281 authorization are:
6282 (i) a new Park City store;
6283 (ii) replacement of the Mount Olympus store;
6284 (iii) replacement of the Ogden City 2nd Street store;
6285 (iv) replacement of the Ogden Patterson Street store; and
6286 (v) expansion of the Provo store.
6287 (c) It is the intent of the Legislature that proceeds from the sale of stores replaced
6288 through this authorization shall be deposited in the General Fund.
6289 (d) It is further the intent of the Legislature that increased sales revenues be used as the
6290 primary revenue source for repayment of any obligation created under authority of this
6291 Subsection (1).
6292 (2) (a) It is the intent of the Legislature that the State Building Ownership Authority,
6293 under the authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act,
6294 may issue or execute obligations, or enter into or arrange for a lease purchase agreement in
6295 which participation interests may be created, to provide up to $8,914,000 for the acquisition
6296 and construction of a new regional office building in Ogden, together with additional amounts
6297 necessary to pay costs of issuance, pay capitalized interest, and fund any debt service reserve
6298 requirements.
6299 (b) It is further the intent of the Legislature that existing rent budgets be used as the
6300 primary revenue source for repayment of any obligation created under authority of this
6301 Subsection (2).
6302 (3) (a) It is the intent of the Legislature that the State Building Ownership Authority,
6303 under the authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act,
6304 may issue or execute obligations, or enter into or arrange for a lease-purchase agreement in
6305 which participation interests may be created, to provide up to $1,450,000 for the acquisition of
6306 the leased regional office building and adjacent land in Moab, together with additional amounts
6307 necessary to pay costs of issuance, pay capitalized interest, and fund any debt service reserve
6308 requirements.
6309 (b) It is further the intent of the Legislature that existing rent budgets be used as the
6310 primary revenue source for repayment of any obligation created under authority of this
6311 Subsection (3).
6312 (4) (a) It is the intent of the Legislature that the State Building Ownership Authority,
6313 under the authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act,
6314 may issue or execute obligations, or enter into or arrange for a lease-purchase agreement in
6315 which participation interests may be created, to provide up to $7,103,000 for the acquisition of
6316 the Tooele Courts building and adjacent land in Tooele City, together with additional amounts
6317 necessary to pay costs of issuance, pay capitalized interest, and fund any debt service reserve
6318 requirements.
6319 (b) It is further the intent of the Legislature that court fees be used as the primary
6320 revenue source for repayment of any obligation created under authority of this Subsection (4).
6321 Section 94. Section 63B-14-201 is amended to read:
6322 63B-14-201. Revenue bond authorizations -- State Building Ownership
6323 Authority.
6324 (1) It is the intent of the Legislature that the State Building Ownership Authority, under
6325 the authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act, may
6326 issue or execute obligations, or enter into or arrange for a lease-purchase agreement in which
6327 participation interests may be created, to provide up to $7,867,000 for the acquisition and
6328 construction of three stores for the Department of Alcoholic Beverage [
6329 together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
6330 and fund any debt service reserve requirements.
6331 (2) It is the intent of the Legislature that the stores to be addressed through this
6332 authorization are:
6333 (a) a new wine store in the downtown Salt Lake City area;
6334 (b) a new store in Washington County; and
6335 (c) a new store in southwest Salt Lake County.
6336 (3) It is the intent of the Legislature that:
6337 (a) increased sales revenues be used as the primary revenue source for repayment of
6338 any obligation created under authority of this subsection; and
6339 (b) the Department of Alcoholic Beverage [
6340 and maintenance funding from sales revenues.
6341 Section 95. Section 63B-15-201 is amended to read:
6342 63B-15-201. Revenue bond authorizations -- State Building Ownership
6343 Authority.
6344 (1) It is the intent of the Legislature that the State Building Ownership Authority, under
6345 the authority of Title 63B, Chapter 1, Part 3, State Building Ownership Authority Act, may
6346 issue or execute obligations, or enter into or arrange for a lease-purchase agreement in which
6347 participation interests may be created, to provide up to $7,371,000 for the acquisition and
6348 construction of three stores for the Department of Alcoholic Beverage [
6349 together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
6350 and fund any debt service reserve requirements.
6351 (2) It is the intent of the Legislature that the stores to be addressed through this
6352 authorization are:
6353 (a) a new store in the Holladay/Cottonwood area of Salt Lake County;
6354 (b) expansion and remodel of the Kimball Junction store in Summit County; and
6355 (c) expansion and remodel of the Redwood Road store in Salt Lake County.
6356 (3) It is the intent of the Legislature that:
6357 (a) increased sales revenues be used as the primary revenue source for repayment of
6358 any obligation created under authority of this section; and
6359 (b) the Department of Alcoholic Beverage [
6360 and maintenance funding from sales revenues.
6361 Section 96. Section 63B-16-201 is amended to read:
6362 63B-16-201. Revenue bond authorizations -- State Building Ownership
6363 Authority.
6364 (1) It is the intent of the Legislature that:
6365 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6366 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
6367 into or arrange for a lease-purchase agreement in which participation interests may be created,
6368 to provide up to $5,662,000 for the acquisition and construction of three stores for the
6369 Department of Alcoholic Beverage [
6370 necessary to pay costs of issuance, pay capitalized interest, and fund any debt service reserve
6371 requirements;
6372 (b) the stores to be addressed through this authorization are:
6373 (i) expansion of the North Temple store in Salt Lake County;
6374 (ii) expansion of the Taylorsville store in Salt Lake County; and
6375 (iii) reconstruction of the Bountiful store in Davis County;
6376 (c) increased sales revenues be used as the primary revenue source for repayment of
6377 any obligation created under authority of this section; and
6378 (d) the Department of Alcoholic Beverage [
6379 and maintenance funding from sales revenues.
6380 (2) It is the intent of the Legislature that:
6381 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6382 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
6383 into or arrange for a lease-purchase agreement in which participation interests may be created,
6384 to provide up to $1,476,000 for the acquisition and construction of a production warehouse for
6385 Utah Correctional Industries, together with additional amounts necessary to pay costs of
6386 issuance, pay capitalized interest, and fund any debt service reserve requirements;
6387 (b) Utah Correctional Industries' revenues be used as the primary revenue source for
6388 repayment of any obligation created under authority of this section;
6389 (c) Utah Correctional Industries may plan, design, and construct the production
6390 warehouse subject to requirements in Section 63A-5b-604; and
6391 (d) Utah Correctional Industries may not request state funds for operation and
6392 maintenance costs or capital improvements.
6393 Section 97. Section 63B-17-201 is amended to read:
6394 63B-17-201. Revenue bond authorizations -- State Building Ownership
6395 Authority.
6396 (1) The Legislature intends that:
6397 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6398 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
6399 into or arrange for a lease purchase agreement in which participation interests may be created,
6400 to provide up to $90,000,000 for the acquisition and construction of phase II-B of a cancer
6401 clinical research hospital facility adjacent to the University of Utah Medical Center, together
6402 with additional amounts necessary to pay costs of issuance, pay capitalized interest, and fund
6403 any debt service reserve requirements;
6404 (b) the University of Utah use institutional funds as the primary revenue source for
6405 repayment of any obligation created under authority of this section;
6406 (c) the university may plan, design, and construct phase II-B of a cancer clinical
6407 research hospital facility subject to the requirements of Section 63A-5b-604; and
6408 (d) the university may not request state funds for operation and maintenance costs or
6409 capital improvements.
6410 (2) The Legislature intends that:
6411 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6412 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
6413 into or arrange for a lease-purchase agreement in which participation interests may be created,
6414 to provide up to $23,700,000 for the acquisition and construction of five stores for the
6415 Department of Alcoholic Beverage [
6416 necessary to pay costs of issuance, pay capitalized interest, and fund any debt service reserve
6417 requirements;
6418 (b) the stores to be addressed through this authorization are:
6419 (i) the replacement of a liquor store in Cedar City;
6420 (ii) a new Utah County North liquor store;
6421 (iii) a new Utah County South liquor store;
6422 (iv) a new Washington County South liquor store; and
6423 (v) a new Wasatch County Heber/Midway liquor store;
6424 (c) the Department of Alcoholic Beverage [
6425 revenues as the primary revenue source for repayment of any obligation created under authority
6426 of this section; and
6427 (d) the Department of Alcoholic Beverage [
6428 and maintenance funding from sales revenues.
6429 Section 98. Section 63B-18-201 is amended to read:
6430 63B-18-201. Revenue bond authorizations -- State Building Ownership
6431 Authority.
6432 (1) The Legislature intends that:
6433 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6434 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
6435 into or arrange for a lease-purchase agreement in which participation interests may be created,
6436 to provide up to $3,800,000 for the acquisition of property in the Salt Lake City, Utah area on
6437 which to construct a Department of Alcoholic Beverage [
6438 expansion, together with additional amounts necessary to pay costs of issuance, pay capitalized
6439 interest, and fund any debt service reserve requirements; and
6440 (b) the Department of Alcoholic Beverage [
6441 revenues as the primary revenue source for repayment of any obligation created under authority
6442 of this section.
6443 (2) The Legislature intends that:
6444 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6445 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
6446 into or arrange for a lease-purchase agreement in which participation interests may be created,
6447 to provide up to $19,904,000 for the construction of a warehouse expansion for the Department
6448 of Alcoholic Beverage [
6449 costs of issuance, pay capitalized interest, and fund any debt service reserve requirements;
6450 (b) the Department of Alcoholic Beverage [
6451 revenues as the primary revenue source for repayment of any obligation created under authority
6452 of this section; and
6453 (c) the Department of Alcoholic Beverage [
6454 and maintenance funding from sales revenues.
6455 Section 99. Section 63B-24-101 is amended to read:
6456 63B-24-101. Revenue bond authorizations -- State Building Ownership
6457 Authority.
6458 (1) The Legislature intends that:
6459 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6460 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
6461 enter into or arrange for a lease-purchase agreement in which participation interests may be
6462 created, to provide up to $86,936,000 for the Fourth District Provo Courthouse Expansion,
6463 together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
6464 and fund any existing debt service reserve requirements;
6465 (b) the judicial branch use court fees and existing lease budgets as the primary revenue
6466 sources for repayment of any obligation created under authority of this Subsection (1); and
6467 (c) the judicial branch may use state funds for operation and maintenance costs or
6468 capital improvements.
6469 (2) The Legislature intends that:
6470 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6471 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
6472 enter into or arrange for a lease-purchase agreement in which participation interests may be
6473 created, to provide up to $4,447,900 for a West Valley Liquor Store, together with additional
6474 amounts necessary to pay costs of issuance, pay capitalized interest, and fund any existing debt
6475 service reserve requirements;
6476 (b) the Department of Alcoholic Beverage [
6477 revenues as the primary revenue source for repayment of any obligation created under authority
6478 of this Subsection (2); and
6479 (c) the Department of Alcoholic Beverage [
6480 and maintenance funding from sales revenues.
6481 Section 100. Section 63B-26-101 is amended to read:
6482 63B-26-101. Revenue bond authorizations -- State Building Ownership
6483 Authority.
6484 (1) The Legislature intends that:
6485 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6486 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
6487 enter into or arrange for a lease-purchase agreement in which participation interests may be
6488 created, to provide up to $3,000,000 for the Fourth District Provo Courthouse parking lot,
6489 together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
6490 and fund any existing debt service reserve requirements;
6491 (b) the judicial branch use court fees and existing lease budgets as the primary revenue
6492 sources for repayment of any obligation created under authority of this Subsection (1);
6493 (c) the judicial branch may use state funds for operation and maintenance costs or
6494 capital improvements; and
6495 (d) the revenue bond authorized under this Subsection (1) may not be issued until on or
6496 after March 1, 2017.
6497 (2) The Legislature intends that:
6498 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6499 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
6500 enter into or arrange for a lease-purchase agreement in which participation interests may be
6501 created, to provide up to $5,043,400 for a Syracuse liquor store, together with additional
6502 amounts necessary to pay costs of issuance, pay capitalized interest, and fund any existing debt
6503 service reserve requirements;
6504 (b) the Department of Alcoholic Beverage [
6505 primary revenue source for repayment of any obligation created under authority of this
6506 Subsection (2); and
6507 (c) the Department of Alcoholic Beverage [
6508 and maintenance funding from sales revenues.
6509 Section 101. Section 63B-27-201 is amended to read:
6510 63B-27-201. Revenue bond authorizations -- State Building Ownership
6511 Authority.
6512 (1) The Legislature intends that:
6513 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6514 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
6515 enter into or arrange for a lease-purchase agreement in which participation interests may be
6516 created, to provide up to $5,451,800 for a Farmington liquor store, together with additional
6517 amounts necessary to pay costs of issuance, pay capitalized interest, and fund any existing debt
6518 service reserve requirements;
6519 (b) the Department of Alcoholic Beverage [
6520 primary revenue source for repayment of any obligation created under authority of this
6521 Subsection (1); and
6522 (c) the Department of Alcoholic Beverage [
6523 and maintenance funding from sales revenues.
6524 (2) The Legislature intends that:
6525 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6526 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
6527 enter into or arrange for a lease-purchase agreement in which participation interests may be
6528 created, to provide up to $5,451,800 for a southwest Salt Lake County liquor store, together
6529 with additional amounts necessary to pay costs of issuance, pay capitalized interest, and fund
6530 any existing debt service reserve requirements;
6531 (b) the Department of Alcoholic Beverage [
6532 primary revenue source for repayment of any obligation created under authority of this
6533 Subsection (2); and
6534 (c) the Department of Alcoholic Beverage [
6535 and maintenance funding from sales revenues.
6536 Section 102. Section 63B-28-101 is amended to read:
6537 63B-28-101. Revenue bond authorizations -- State Building Ownership
6538 Authority.
6539 (1) The Legislature intends that:
6540 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6541 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
6542 enter into or arrange for a lease-purchase agreement in which participation interests may be
6543 created, to provide up to $5,451,800 for a Pleasant Grove or Lehi market area liquor store,
6544 together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
6545 and fund any existing debt service reserve requirements;
6546 (b) the Department of Alcoholic Beverage [
6547 primary revenue source for repayment of any obligation created under authority of this
6548 Subsection (1); and
6549 (c) the Department of Alcoholic Beverage [
6550 and maintenance funding from sales revenues.
6551 (2) The Legislature intends that:
6552 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6553 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
6554 enter into or arrange for a lease-purchase agreement in which participation interests may be
6555 created, to provide up to $10,759,000 for reconstructing the Store 4: Foothill liquor store,
6556 together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
6557 and fund any existing debt service reserve requirements;
6558 (b) the Department of Alcoholic Beverage [
6559 primary revenue source for repayment of any obligation created under authority of this
6560 Subsection (2); and
6561 (c) the Department of Alcoholic Beverage [
6562 and maintenance funding from sales revenues.
6563 Section 103. Section 63B-29-101 is amended to read:
6564 63B-29-101. Revenue bond authorizations -- State Building Ownership
6565 Authority.
6566 (1) The Legislature intends that:
6567 (a) the State Building Ownership Authority, under the authority of Chapter 1, Part 3,
6568 State Building Ownership Authority Act, may issue or execute obligations, or may enter into or
6569 arrange for a lease-purchase agreement in which participation interests may be created, to
6570 provide up to $10,091,100 for the downtown liquor store relocation, together with additional
6571 amounts necessary to pay costs of issuance, pay capitalized interest, and fund any existing debt
6572 service reserve requirements;
6573 (b) the Department of Alcoholic Beverage [
6574 primary revenue source for repayment of any obligation created under authority of this
6575 Subsection (1); and
6576 (c) the Department of Alcoholic Beverage [
6577 and maintenance funding from sales revenue.
6578 (2) The Legislature intends that:
6579 (a) the State Building Ownership Authority, under the authority of Chapter 1, Part 3,
6580 State Building Ownership Authority Act, may issue or execute obligations, or may enter into or
6581 arrange for a lease-purchase agreement in which participation interests may be created, to
6582 provide up to $14,000,000 for two liquor stores in the Taylorsville and West Valley City
6583 market areas, together with additional amounts necessary to pay costs of issuance, pay
6584 capitalized interest, and fund any existing debt service reserve requirements;
6585 (b) the Department of Alcoholic Beverage [
6586 primary revenue source for repayment of any obligation created under authority of this
6587 Subsection (2); and
6588 (c) the Department of Alcoholic Beverage [
6589 and maintenance funding from sales revenue.
6590 Section 104. Section 63B-31-202 is amended to read:
6591 63B-31-202. State Building Ownership Authority obligations for new state liquor
6592 stores.
6593 (1) The Legislature intends that:
6594 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6595 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations or may
6596 enter into or arrange for a lease-purchase agreement in which participation interests may be
6597 created, to provide up to $11,725,700 for a Salt Lake City market area liquor store in
6598 Sugarhouse, together with additional amounts necessary to pay costs of issuance, pay
6599 capitalized interest, and fund any existing debt service reserve requirements;
6600 (b) the Department of Alcoholic Beverage [
6601 primary revenue source for repayment of any obligation created under authority of this
6602 Subsection (1);
6603 (c) the Department of Alcoholic Beverage [
6604 and maintenance funding from sales revenues; and
6605 (d) the Department of Alcoholic Beverage [
6606 repay the State Store Land Acquisition Fund under Section 32B-2-307.
6607 (2) The Legislature intends that:
6608 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
6609 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations or may
6610 enter into or arrange for a lease-purchase agreement in which participation interests may be
6611 created, to provide up to $5,524,000 for a Salt Lake City area market liquor store in east Sandy,
6612 together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
6613 and fund any existing debt service reserve requirements;
6614 (b) the Department of Alcoholic Beverage [
6615 primary revenue source for repayment of any obligation created under authority of this
6616 Subsection (2); and
6617 (c) the Department of Alcoholic Beverage [
6618 and maintenance funding from sales revenues.
6619 Section 105. Section 63G-12-306 is amended to read:
6620 63G-12-306. Penalties.
6621 (1) As used in this section:
6622 (a) "Applicable license" means a license issued under:
6623 (i) Title 32B, Alcoholic Beverage Control Act;
6624 (ii) Title 58, Occupations and Professions; or
6625 (iii) Title 61, Securities Division - Real Estate Division.
6626 (b) "First violation" means the first time the department imposes a penalty under this
6627 section, regardless of the number of individuals the private employer hired in violation of
6628 Subsection 63G-12-301(1).
6629 (c) "Second violation" means the second time the department imposes a penalty under
6630 this section, regardless of the number of individuals the private employer hired in violation of
6631 Subsection 63G-12-301(1).
6632 (d) "Third or subsequent violation" means a violation of Subsection 63G-12-301(1)
6633 committed after a second violation.
6634 (2) (a) On or after the program start date, a private employer who violates Subsection
6635 63G-12-301(1) is subject to a penalty provided in this section under an action brought by the
6636 department in accordance with Section 63G-12-305.
6637 (b) For a first violation of Subsection 63G-12-301(1), the department shall impose a
6638 civil penalty on the private employer not to exceed $100 for each individual employed by the
6639 private employer during the time period specified in the notice of agency action who is an
6640 unauthorized alien who does not hold a valid permit.
6641 (c) For a second violation of Subsection 63G-12-301(1), the department shall impose a
6642 civil penalty on the private employer not to exceed $500 for each individual employed by the
6643 private employer during the time period specified in the notice of agency action who is an
6644 unauthorized alien who does not hold a valid permit.
6645 (d) For a third or subsequent violation of Subsection 63G-12-301(1), the department
6646 shall:
6647 (i) order the revocation of the one or more applicable licenses that are issued to an
6648 owner, officer, director, manager, or other individual in a similar position for the private
6649 employer for a period not to exceed one year; or
6650 (ii) if no individual described in Subsection (2)(d)(i) holds an applicable license,
6651 impose a civil penalty on the private employer not to exceed $10,000.
6652 (3) (a) If the department finds a third or subsequent violation, the department shall
6653 notify the Department of Commerce and the Department of Alcoholic Beverage [
6654 Services once the department's order:
6655 (i) is not appealed, and the time to appeal has expired; or
6656 (ii) is appealed, and is affirmed, in whole or in part on appeal.
6657 (b) The notice required under Subsection (3)(a) shall state:
6658 (i) that the department has found a third or subsequent violation;
6659 (ii) that any applicable license held by an individual described in Subsection (2)(d)(i) is
6660 to be revoked; and
6661 (iii) the time period for the revocation, not to exceed one year.
6662 (c) The department shall base its determination of the length of revocation under this
6663 section on evidence or information submitted to the department during the action under which
6664 a third or subsequent violation is found, and shall consider the following factors, if relevant:
6665 (i) the number of unauthorized aliens who do not hold a permit that are employed by
6666 the private employer;
6667 (ii) prior misconduct by the private employer;
6668 (iii) the degree of harm resulting from the violation;
6669 (iv) whether the private employer made good faith efforts to comply with any
6670 applicable requirements;
6671 (v) the duration of the violation;
6672 (vi) the role of the individuals described in Subsection (2)(d)(i) in the violation; and
6673 (vii) any other factor the department considers appropriate.
6674 (4) Within 10 business days of receipt of notice under Subsection (3), the Department
6675 of Commerce and the Department of Alcoholic Beverage [
6676 (a) (i) if the Department of Commerce or Alcoholic Beverage [
6677 Commission has issued an applicable license to an individual described in Subsection (2)(d)(i),
6678 notwithstanding any other law, revoke the applicable license; and
6679 (ii) notify the department that the applicable license is revoked; or
6680 (b) if the Department of Commerce or Alcoholic Beverage [
6681 Commission has not issued an applicable license to an individual described in Subsection
6682 (2)(d)(i), notify the department that an applicable license has not been issued to an individual
6683 described in Subsection (2)(d)(i).
6684 (5) If an individual described in Subsection (2)(d)(i) is licensed to practice law in the
6685 state and the department finds a third or subsequent violation of Subsection 63G-12-301(1), the
6686 department shall notify the Utah State Bar of the third and subsequent violation.
6687 Section 106. Section 63I-5-201 (Superseded 07/01/22) is amended to read:
6688 63I-5-201 (Superseded 07/01/22). Internal auditing programs -- State agencies.
6689 (1) (a) The departments of Administrative Services, Agriculture, Commerce, Cultural
6690 and Community Engagement, Corrections, Workforce Services, Environmental Quality,
6691 Health, Human Services, Natural Resources, Public Safety, and Transportation, and the State
6692 Tax Commission shall conduct various types of auditing procedures as determined by the
6693 agency head or governor.
6694 (b) The governor may, by executive order, require a state agency not described in
6695 Subsection (1)(a) to establish an internal audit program.
6696 (c) The governor shall ensure that each state agency that reports to the governor has
6697 adequate internal audit coverage.
6698 (2) (a) The Administrative Office of the Courts shall establish an internal audit
6699 program under the direction of the Judicial Council, including auditing procedures for courts
6700 not of record.
6701 (b) The Judicial Council may, by rule, require other judicial agencies to establish an
6702 internal audit program.
6703 (3) (a) Dixie State University, the University of Utah, Utah State University, Salt Lake
6704 Community College, Southern Utah University, Utah Valley University, Weber State
6705 University, and Snow College shall establish an internal audit program under the direction of
6706 the Utah Board of Higher Education.
6707 (b) The Utah Board of Higher Education may issue policies requiring other higher
6708 education entities or programs to establish an internal audit program.
6709 (4) The State Board of Education shall establish an internal audit program that provides
6710 internal audit services for each program administered by the State Board of Education.
6711 (5) Subject to Section 32B-2-302.5, the internal audit division of the Department of
6712 Alcoholic Beverage [
6713 direction of the Alcoholic Beverage [
6714 Section 107. Section 63I-5-201 (Effective 07/01/22) is amended to read:
6715 63I-5-201 (Effective 07/01/22). Internal auditing programs -- State agencies.
6716 (1) (a) The departments of Administrative Services, Agriculture, Commerce, Cultural
6717 and Community Engagement, Corrections, Workforce Services, Environmental Quality,
6718 Health, Human Services, Natural Resources, Public Safety, and Transportation, and the State
6719 Tax Commission shall conduct various types of auditing procedures as determined by the
6720 agency head or governor.
6721 (b) The governor may, by executive order, require a state agency not described in
6722 Subsection (1)(a) to establish an internal audit program.
6723 (c) The governor shall ensure that each state agency that reports to the governor has
6724 adequate internal audit coverage.
6725 (2) (a) The Administrative Office of the Courts shall establish an internal audit
6726 program under the direction of the Judicial Council, including auditing procedures for courts
6727 not of record.
6728 (b) The Judicial Council may, by rule, require other judicial agencies to establish an
6729 internal audit program.
6730 (3) (a) Utah Tech University, the University of Utah, Utah State University, Salt Lake
6731 Community College, Southern Utah University, Utah Valley University, Weber State
6732 University, and Snow College shall establish an internal audit program under the direction of
6733 the Utah Board of Higher Education.
6734 (b) The Utah Board of Higher Education may issue policies requiring other higher
6735 education entities or programs to establish an internal audit program.
6736 (4) The State Board of Education shall establish an internal audit program that provides
6737 internal audit services for each program administered by the State Board of Education.
6738 (5) Subject to Section 32B-2-302.5, the internal audit division of the Department of
6739 Alcoholic Beverage [
6740 direction of the Alcoholic Beverage [
6741 Section 108. Section 63J-1-219 is amended to read:
6742 63J-1-219. Definitions -- Federal receipts reporting requirements.
6743 (1) As used in this section:
6744 (a) (i) "Designated state agency" means the Department of Government Operations, the
6745 Department of Agriculture and Food, the Department of Alcoholic Beverage [
6746 Services, the Department of Commerce, the Department of Cultural and Community
6747 Engagement, the Department of Corrections, the Department of Environmental Quality, the
6748 Department of Financial Institutions, the Department of Health, the Department of Human
6749 Services, the Department of Insurance, the Department of Natural Resources, the Department
6750 of Public Safety, the Department of Transportation, the Department of Veterans and Military
6751 Affairs, the Department of Workforce Services, the Labor Commission, the Office of
6752 Economic Opportunity, the Public Service Commission, the Utah Board of Higher Education,
6753 the State Board of Education, the State Tax Commission, or the Utah National Guard.
6754 (ii) "Designated state agency" does not include the judicial branch, the legislative
6755 branch, or an office or other entity within the judicial branch or the legislative branch.
6756 (b) "Federal receipts" means the federal financial assistance, as defined in 31 U.S.C.
6757 Sec. 7501, that is reported as part of a single audit.
6758 (c) "Single audit" is as defined in 31 U.S.C. Sec. 7501.
6759 (2) Subject to Subsections (3) and (4), a designated state agency shall each year, on or
6760 before October 31, prepare a report that:
6761 (a) reports the aggregate value of federal receipts the designated state agency received
6762 for the preceding fiscal year;
6763 (b) reports the aggregate amount of federal funds appropriated by the Legislature to the
6764 designated state agency for the preceding fiscal year;
6765 (c) calculates the percentage of the designated state agency's total budget for the
6766 preceding fiscal year that constitutes federal receipts that the designated state agency received
6767 for that fiscal year; and
6768 (d) develops plans for operating the designated state agency if there is a reduction of:
6769 (i) 5% or more in the federal receipts that the designated state agency receives; and
6770 (ii) 25% or more in the federal receipts that the designated state agency receives.
6771 (3) (a) The report required by Subsection (2) that the Utah Board of Higher Education
6772 prepares shall include the information required by Subsections (2)(a) through (c) for each state
6773 institution of higher education listed in Section 53B-2-101.
6774 (b) The report required by Subsection (2) that the State Board of Education prepares
6775 shall include the information required by Subsections (2)(a) through (c) for each school district
6776 and each charter school within the public education system.
6777 (4) A designated state agency that prepares a report in accordance with Subsection (2)
6778 shall submit the report to the Division of Finance on or before November 1 of each year.
6779 (5) (a) The Division of Finance shall, on or before November 30 of each year, prepare a
6780 report that:
6781 (i) compiles and summarizes the reports the Division of Finance receives in accordance
6782 with Subsection (4); and
6783 (ii) compares the aggregate value of federal receipts each designated state agency
6784 received for the previous fiscal year to the aggregate amount of federal funds appropriated by
6785 the Legislature to that designated state agency for that fiscal year.
6786 (b) The Division of Finance shall, as part of the report required by Subsection (5)(a),
6787 compile a list of designated state agencies that do not submit a report as required by this
6788 section.
6789 (6) The Division of Finance shall submit the report required by Subsection (5) to the
6790 Executive Appropriations Committee on or before December 1 of each year.
6791 (7) Upon receipt of the report required by Subsection (5), the chairs of the Executive
6792 Appropriations Committee shall place the report on the agenda for review and consideration at
6793 the next Executive Appropriations Committee meeting.
6794 (8) When considering the report required by Subsection (5), the Executive
6795 Appropriations Committee may elect to:
6796 (a) recommend that the Legislature reduce or eliminate appropriations for a designated
6797 state agency;
6798 (b) take no action; or
6799 (c) take another action that a majority of the committee approves.
6800 Section 109. Section 63J-1-602.2 is amended to read:
6801 63J-1-602.2. List of nonlapsing appropriations to programs.
6802 Appropriations made to the following programs are nonlapsing:
6803 (1) The Legislature and the Legislature's committees.
6804 (2) The State Board of Education, including all appropriations to agencies, line items,
6805 and programs under the jurisdiction of the State Board of Education, in accordance with
6806 Section 53F-9-103.
6807 (3) The Percent-for-Art Program created in Section 9-6-404.
6808 (4) The LeRay McAllister Critical Land Conservation Program created in Section
6809 11-38-301.
6810 (5) Dedicated credits accrued to the Utah Marriage Commission as provided under
6811 Subsection 17-16-21(2)(d)(ii).
6812 (6) The Trip Reduction Program created in Section 19-2a-104.
6813 (7) The Division of Wildlife Resources for the appraisal and purchase of lands under
6814 the Pelican Management Act, as provided in Section 23-21a-6.
6815 (8) The emergency medical services grant program in Section 26-8a-207.
6816 (9) The primary care grant program created in Section 26-10b-102.
6817 (10) Sanctions collected as dedicated credits from Medicaid provider under Subsection
6818 26-18-3(7).
6819 (11) The Utah Health Care Workforce Financial Assistance Program created in Section
6820 26-46-102.
6821 (12) The Rural Physician Loan Repayment Program created in Section 26-46a-103.
6822 (13) The Opiate Overdose Outreach Pilot Program created in Section 26-55-107.
6823 (14) Funds that the Department of Alcoholic Beverage [
6824 accordance with Subsection [
6825 (15) The General Assistance program administered by the Department of Workforce
6826 Services, as provided in Section 35A-3-401.
6827 (16) The Utah National Guard, created in Title 39, Militia and Armories.
6828 (17) The State Tax Commission under Section 41-1a-1201 for the:
6829 (a) purchase and distribution of license plates and decals; and
6830 (b) administration and enforcement of motor vehicle registration requirements.
6831 (18) The Search and Rescue Financial Assistance Program, as provided in Section
6832 53-2a-1102.
6833 (19) The Motorcycle Rider Education Program, as provided in Section 53-3-905.
6834 (20) The Utah Board of Higher Education for teacher preparation programs, as
6835 provided in Section 53B-6-104.
6836 (21) The Medical Education Program administered by the Medical Education Council,
6837 as provided in Section 53B-24-202.
6838 (22) The Division of Services for People with Disabilities, as provided in Section
6839 62A-5-102.
6840 (23) The Division of Fleet Operations for the purpose of upgrading underground
6841 storage tanks under Section 63A-9-401.
6842 (24) The Utah Seismic Safety Commission, as provided in Section 63C-6-104.
6843 (25) Appropriations to the Division of Technology Services for technology innovation
6844 as provided under Section 63A-16-903.
6845 (26) The Office of Administrative Rules for publishing, as provided in Section
6846 63G-3-402.
6847 (27) The Colorado River Authority of Utah, created in Title 63M, Chapter 14,
6848 Colorado River Authority of Utah Act.
6849 (28) The Governor's Office of Economic Opportunity to fund the Enterprise Zone Act,
6850 as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
6851 (29) Appropriations to fund the Governor's Office of Economic Opportunity's Rural
6852 Employment Expansion Program, as described in Title 63N, Chapter 4, Part 4, Rural
6853 Employment Expansion Program.
6854 (30) Appropriations to fund programs for the Jordan River Recreation Area as
6855 described in Section 65A-2-8.
6856 (31) The Division of Human Resource Management user training program, as provided
6857 in Section 63A-17-106.
6858 (32) A public safety answering point's emergency telecommunications service fund, as
6859 provided in Section 69-2-301.
6860 (33) The Traffic Noise Abatement Program created in Section 72-6-112.
6861 (34) The money appropriated from the Navajo Water Rights Negotiation Account to
6862 the Division of Water Rights, created in Section 73-2-1.1, for purposes of participating in a
6863 settlement of federal reserved water right claims.
6864 (35) The Judicial Council for compensation for special prosecutors, as provided in
6865 Section 77-10a-19.
6866 (36) A state rehabilitative employment program, as provided in Section 78A-6-210.
6867 (37) The Utah Geological Survey, as provided in Section 79-3-401.
6868 (38) The Bonneville Shoreline Trail Program created under Section 79-5-503.
6869 (39) Adoption document access as provided in Sections 78B-6-141, 78B-6-144, and
6870 78B-6-144.5.
6871 (40) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent
6872 Defense Commission.
6873 (41) The program established by the Division of Facilities Construction and
6874 Management under Section 63A-5b-703 under which state agencies receive an appropriation
6875 and pay lease payments for the use and occupancy of buildings owned by the Division of
6876 Facilities Construction and Management.
6877 Section 110. Section 67-22-2 is amended to read:
6878 67-22-2. Compensation -- Other state officers.
6879 (1) As used in this section:
6880 (a) "Appointed executive" means the:
6881 (i) commissioner of the Department of Agriculture and Food;
6882 (ii) commissioner of the Insurance Department;
6883 (iii) commissioner of the Labor Commission;
6884 (iv) director, Department of Alcoholic Beverage [
6885 (v) commissioner of the Department of Financial Institutions;
6886 (vi) executive director, Department of Commerce;
6887 (vii) executive director, Commission on Criminal and Juvenile Justice;
6888 (viii) adjutant general;
6889 (ix) executive director, Department of Cultural and Community Engagement;
6890 (x) executive director, Department of Corrections;
6891 (xi) commissioner, Department of Public Safety;
6892 (xii) executive director, Department of Natural Resources;
6893 (xiii) executive director, Governor's Office of Planning and Budget;
6894 (xiv) executive director, Department of Government Operations;
6895 (xv) executive director, Department of Environmental Quality;
6896 (xvi) executive director, Governor's Office of Economic Opportunity;
6897 (xvii) executive director, Department of Workforce Services;
6898 (xviii) executive director, Department of Health, Nonphysician;
6899 (xix) executive director, Department of Human Services;
6900 (xx) executive director, Department of Transportation; [
6901 (xxi) executive director, Department of Veterans and Military Affairs; and
6902 (xxii) executive director, Public Lands Policy Coordinating Office, created in Section
6903 63L-11-201.
6904 (b) "Board or commission executive" means:
6905 (i) members, Board of Pardons and Parole;
6906 (ii) chair, State Tax Commission;
6907 (iii) commissioners, State Tax Commission;
6908 (iv) executive director, State Tax Commission;
6909 (v) chair, Public Service Commission; and
6910 (vi) commissioners, Public Service Commission.
6911 (c) "Deputy" means the person who acts as the appointed executive's second in
6912 command as determined by the Division of Human Resource Management.
6913 (2) (a) The director of the Division of Human Resource Management shall:
6914 (i) before October 31 of each year, recommend to the governor a compensation plan for
6915 the appointed executives and the board or commission executives; and
6916 (ii) base those recommendations on market salary studies conducted by the Division of
6917 Human Resource Management.
6918 (b) (i) The Division of Human Resource Management shall determine the salary range
6919 for the appointed executives by:
6920 (A) identifying the salary range assigned to the appointed executive's deputy;
6921 (B) designating the lowest minimum salary from those deputies' salary ranges as the
6922 minimum salary for the appointed executives' salary range; and
6923 (C) designating 105% of the highest maximum salary range from those deputies' salary
6924 ranges as the maximum salary for the appointed executives' salary range.
6925 (ii) If the deputy is a medical doctor, the Division of Human Resource Management
6926 may not consider that deputy's salary range in designating the salary range for appointed
6927 executives.
6928 (c) (i) Except as provided in Subsection (2)(c)(ii), in establishing the salary ranges for
6929 board or commission executives, the Division of Human Resource Management shall set the
6930 maximum salary in the salary range for each of those positions at 90% of the salary for district
6931 judges as established in the annual appropriation act under Section 67-8-2.
6932 (ii) In establishing the salary ranges for an individual described in Subsection (1)(b)(ii)
6933 or (iii), the Division of Human Resource Management shall set the maximum salary in the
6934 salary range for each of those positions at 100% of the salary for district judges as established
6935 in the annual appropriation act under Section 67-8-2.
6936 (3) (a) (i) Except as provided in Subsection (3)(a)(ii), the governor shall establish a
6937 specific salary for each appointed executive within the range established under Subsection
6938 (2)(b).
6939 (ii) If the executive director of the Department of Health is a physician, the governor
6940 shall establish a salary within the highest physician salary range established by the Division of
6941 Human Resource Management.
6942 (iii) The governor may provide salary increases for appointed executives within the
6943 range established by Subsection (2)(b) and identified in Subsection (3)(a)(ii).
6944 (b) The governor shall apply the same overtime regulations applicable to other FLSA
6945 exempt positions.
6946 (c) The governor may develop standards and criteria for reviewing the appointed
6947 executives.
6948 (4) Salaries for other Schedule A employees, as defined in Section 63A-17-301, that
6949 are not provided for in this chapter, or in Title 67, Chapter 8, Utah Elected Official and Judicial
6950 Salary Act, shall be established as provided in Section 63A-17-301.
6951 (5) (a) The Legislature fixes benefits for the appointed executives and the board or
6952 commission executives as follows:
6953 (i) the option of participating in a state retirement system established by Title 49, Utah
6954 State Retirement and Insurance Benefit Act, or in a deferred compensation plan administered
6955 by the State Retirement Office in accordance with the Internal Revenue Code and its
6956 accompanying rules and regulations;
6957 (ii) health insurance;
6958 (iii) dental insurance;
6959 (iv) basic life insurance;
6960 (v) unemployment compensation;
6961 (vi) workers' compensation;
6962 (vii) required employer contribution to Social Security;
6963 (viii) long-term disability income insurance;
6964 (ix) the same additional state-paid life insurance available to other noncareer service
6965 employees;
6966 (x) the same severance pay available to other noncareer service employees;
6967 (xi) the same leave, holidays, and allowances granted to Schedule B state employees as
6968 follows:
6969 (A) sick leave;
6970 (B) converted sick leave if accrued prior to January 1, 2014;
6971 (C) educational allowances;
6972 (D) holidays; and
6973 (E) annual leave except that annual leave shall be accrued at the maximum rate
6974 provided to Schedule B state employees;
6975 (xii) the option to convert accumulated sick leave to cash or insurance benefits as
6976 provided by law or rule upon resignation or retirement according to the same criteria and
6977 procedures applied to Schedule B state employees;
6978 (xiii) the option to purchase additional life insurance at group insurance rates according
6979 to the same criteria and procedures applied to Schedule B state employees; and
6980 (xiv) professional memberships if being a member of the professional organization is a
6981 requirement of the position.
6982 (b) Each department shall pay the cost of additional state-paid life insurance for its
6983 executive director from its existing budget.
6984 (6) The Legislature fixes the following additional benefits:
6985 (a) for the executive director of the State Tax Commission a vehicle for official and
6986 personal use;
6987 (b) for the executive director of the Department of Transportation a vehicle for official
6988 and personal use;
6989 (c) for the executive director of the Department of Natural Resources a vehicle for
6990 commute and official use;
6991 (d) for the commissioner of Public Safety:
6992 (i) an accidental death insurance policy if POST certified; and
6993 (ii) a public safety vehicle for official and personal use;
6994 (e) for the executive director of the Department of Corrections:
6995 (i) an accidental death insurance policy if POST certified; and
6996 (ii) a public safety vehicle for official and personal use;
6997 (f) for the adjutant general a vehicle for official and personal use; and
6998 (g) for each member of the Board of Pardons and Parole a vehicle for commute and
6999 official use.
7000 Section 111. Repealer.
7001 This bill repeals:
7002 Section 32B-8a-101, Title.
7003 Section 32B-8a-302, Application -- Approval process.
7004 Section 32B-12-207, Changing location of a warehousing facility.
7005 Section 112. Effective date.
7006 This bill takes effect on June 1, 2022, with the exception of Section 63I-5-201
7007 (Effective 07/01/22) which takes effect on July 1, 2022.