H.B. 204

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ALCOHOLIC BEVERAGES - RESTAURANT REGULATION
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Thomas Hatch
5 AN ACT RELATING TO ALCOHOLIC BEVERAGES; AMENDING THE RESTAURANT
6 OPERATIONAL RESTRICTIONS DEALING WITH MINORS; AND MAKING
7 TECHNICAL CORRECTIONS.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 32A-4-106, as last amended by Chapter 95, Laws of Utah 1994
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 32A-4-106 is amended to read:
13 32A-4-106. Operational restrictions.
14 Each person granted a restaurant liquor license and the employees and management
15 personnel of the restaurant shall comply with the following conditions and requirements. Failure
16 to comply may result in a suspension or revocation of the license or other disciplinary action taken
17 against individual employees or management personnel.
18 (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from state stores
19 or package agencies.
20 (b) Liquor purchased may be transported by the licensee from the place of purchase to the
21 licensed premises.
22 (c) Payment for liquor shall be made in accordance with rules established by the
23 commission.
24 (2) [Beginning July 1, 1991, a] A restaurant liquor licensee may not sell or provide any
25 primary liquor except in one ounce quantities dispensed through a calibrated metered dispensing
26 system approved by the department in accordance with commission rules adopted under this title,
27 except that:

1 (a) liquor need not be dispensed through a calibrated metered dispensing system if used
2 as a secondary flavoring ingredient in a beverage subject to the following restrictions:
3 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
4 a primary liquor;
5 (ii) the secondary ingredient is not the only liquor in the beverage;
6 (iii) the licensee shall designate a location where flavorings are stored on the floor plan
7 provided to the department; and
8 (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
9 (b) liquor need not be dispensed through a calibrated metered dispensing system if used
10 as a flavoring on desserts and in the preparation of flaming food dishes, drinks, and desserts;
11 (c) wine may be served by the glass in quantities not exceeding five ounces per glass; and
12 (d) heavy beer may be served in original containers not exceeding one liter.
13 (3) (a) Restaurants licensed to sell liquor may sell beer in any size container not exceeding
14 two liters, and on draft for on-premise consumption without obtaining a separate on-premise beer
15 retailer license from the commission.
16 (b) Restaurants licensed under this chapter that sell beer pursuant to Subsection (3)(a) shall
17 comply with all appropriate operational restrictions under Chapter 10, Beer Retailer Licenses, that
18 apply to on-premise beer retailers except when those restrictions are inconsistent with or less
19 restrictive than the operational restrictions under this chapter.
20 (c) Failure to comply with the operational restrictions under Chapter 10 [as set forth in],
21 Beer Retailer Licenses, required by Subsection (3)(b) may result in a suspension or revocation of
22 the restaurant's:
23 (i) state liquor license; and [its]
24 (ii) alcoholic beverage license issued by the local authority.
25 (4) Wine may be served in accordance with commission rule in containers not exceeding
26 750 ml.
27 (5) (a) Liquor may not be stored or sold in any place other than as designated in the
28 licensee's application, unless the licensee first applies for and receives approval from the
29 department for a change of location within the restaurant.
30 (b) A patron [or guest] may only make alcoholic beverage purchases in the restaurant from
31 a server designated and trained by the licensee.

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1 (c) Any alcoholic beverage may only be consumed at the patron's [or guest's] table.
2 (d) Liquor may not be stored where it is visible to patrons of the restaurant.
3 (6) (a) Alcoholic beverages may not be dispensed directly to a patron [or guest] from the
4 storage area [but].
5 (b) Alcoholic beverages shall be delivered by a server to the patron.
6 (7) The liquor storage area shall remain locked at all times other than those hours and days
7 when liquor sales are authorized by law.
8 (8) (a) Liquor may not be sold or offered for sale at a restaurant during the following days
9 or hours:
10 (i) on the day of any regular general election, regular primary election, or statewide special
11 election until after the polls are closed;
12 (ii) on the day of any municipal, special district, or school election, but only:
13 (A) within the boundaries of the municipality, special district, or school district[,]; and
14 [only]
15 (B) if closure is required by local ordinance; and
16 (iii) on any other day after 12 midnight and before 12 noon.
17 (b) The hours of beer sales are those specified in Chapter 10, Beer Retailer Licenses, for
18 on-premise beer licensees.
19 (9) Alcoholic beverages may not be sold except in connection with an order for food
20 prepared, sold, and served at the restaurant.
21 (10) Alcoholic beverages may not be sold, delivered, or furnished to any:
22 (a) minor;
23 (b) person actually, apparently, or obviously drunk;
24 (c) known habitual drunkard; or
25 (d) known interdicted person.
26 (11) (a) Liquor may not be sold except at prices fixed by the commission.
27 (b) Mixed drinks and wine may not be sold at discount prices on any date or at any time.
28 (12) A restaurant patron [or guest] may have only one alcoholic beverage at a time before
29 [him] the patron on [his] the patron's table.
30 (13) [Beginning July 1, 1991, no] No more than one ounce of primary liquor may be
31 served to a patron [or guest] at a time, except:

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1 (a) wine as provided in Subsection (2)(c); and
2 (b) heavy beer as provided in Subsection (2)(d).
3 (14) Alcoholic beverages may not be purchased by the licensee, or any employee or agent
4 of the licensee, for patrons [or guests] of the restaurant.
5 (15) Alcoholic beverages purchased in a restaurant may not be served or consumed at any
6 location where they are stored or dispensed.
7 (16) (a) A wine service may be performed and a service charge assessed by the restaurant
8 as authorized by commission rule for wine purchased at the restaurant or carried in by a patron.
9 (b) If wine is carried in by a patron, the patron shall deliver the wine to a server or other
10 representative of the licensee upon entering the licensee premises.
11 (17) (a) [Beginning January 1, 1991, a] A person may not bring onto the premises of a
12 restaurant liquor licensee any alcoholic beverage for on-premise consumption, except a person may
13 bring, subject to the discretion of the licensee, cork-finished wine onto the premises of any
14 restaurant liquor licensee and consume wine pursuant to Subsection (16).
15 (b) [Beginning January 1, 1991, a] A restaurant, whether licensed under this title or
16 unlicensed [under this title], or its officers, managers, employees, or agents may not allow:
17 (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
18 consumption; or [allow]
19 (ii) consumption of any such alcoholic beverage on its premises, except cork-finished wine
20 under Subsection (17)(a).
21 (c) [Beginning January 1, 1991, if any] If a restaurant licensee, or any of its officers,
22 managers, employees, or agents violates this Subsection (17):
23 (i) the commission may immediately suspend or revoke the restaurant's liquor license [and
24 the restaurant licensee is subject to possible criminal prosecution under Chapter 12]; and
25 (ii) the local authority may immediately suspend or revoke the restaurant's:
26 (A) local liquor license[,];
27 (B) local consent under Subsection 32A-4-102(1)(c)[,]; or
28 (C) local business license.
29 (d) If a person, whether licensed under this title or unlicensed, or any of its officers,
30 managers, employees, or its agents violate this Subsection (17), that person is subject to possible
31 criminal prosecution under Chapter 12, Criminal Offenses.

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1 (18) Alcoholic beverages purchased from the restaurant may not be removed from the
2 restaurant premises.
3 (19) (a) Minors may not be employed by a restaurant licensee to sell or dispense alcoholic
4 beverages.
5 (b) Notwithstanding Subsection (19)(a), a minor may be employed to enter the sale at a
6 cash register or other sales recording device.
7 (20) An employee of a restaurant liquor licensee, while on duty, may not:
8 (a) consume an alcoholic beverage; or
9 (b) be under the influence of alcoholic beverages.
10 (21) (a) Advertising or other reference to the sale of liquor and wine is not allowed on a
11 food menu except that a statement of availability of a liquor and wine menu on request, the content
12 and form of which is approved by the department, may be attached to or carried on a food menu.
13 The context of both food and liquor and wine menus may not in any manner attempt to promote
14 or increase the sale of alcoholic beverages.
15 (b) A server, employee, or agent of a licensee may not draw attention to the availability
16 of alcoholic beverages for sale, unless a patron or guest first inquires about it.
17 (c) Any set-up charge, service charge, chilling fee, or any other charge or fee made in
18 connection with the sale, service, or consumption of liquor may be stated in food or alcoholic
19 beverage menus.
20 (22) Each restaurant liquor licensee shall display in a prominent place in the restaurant:
21 (a) the liquor license that is issued by the department;
22 (b) a list of the types and brand names of liquor being served through its calibrated
23 metered dispensing system; and
24 (c) a sign in large letters stating: "Warning: The consumption of alcoholic beverages
25 purchased in this establishment may be hazardous to your health and the safety of others."
26 (23) The following acts or conduct in a restaurant licensed under this chapter are
27 considered contrary to the public welfare and morals, and are prohibited upon the premises:
28 (a) employing or using any person in the sale or service of alcoholic beverages while the
29 person is unclothed or in attire, costume, or clothing that exposes to view any portion of the female
30 breast below the top of the areola or any portion of the pubic hair, anus, cleft of the buttocks,
31 vulva, or genitals;

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1 (b) employing or using the services of any person to mingle with the patrons while the
2 person is unclothed or in attire, costume, or clothing described in Subsection (23)(a);
3 (c) encouraging or permitting any person to touch, caress, or fondle the breasts, buttocks,
4 anus, or genitals of any other person;
5 (d) permitting any employee or person to wear or use any device or covering, exposed to
6 view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
7 (e) permitting any person to use artificial devices or inanimate objects to depict any of the
8 prohibited activities described in this subsection;
9 (f) permitting any person to remain in or upon the premises who exposes to public view
10 any portion of [his or her] that person's genitals or anus; or
11 (g) showing films, still pictures, electronic reproductions, or other visual reproductions
12 depicting:
13 (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
14 copulation, flagellation, or any sexual acts prohibited by Utah law;
15 (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
16 genitals;
17 (iii) scenes wherein artificial devices or inanimate objects are used to depict, or drawings
18 are used to portray, any of the prohibited activities described in this subsection; or
19 (iv) scenes wherein a person displays the vulva or the anus or the genitals.
20 (24) Nothing in Subsection (23) precludes a local authority from being more restrictive
21 of acts or conduct of the type prohibited in Subsection (23).
22 (25) (a) Although live entertainment is permitted on the premises of a restaurant liquor
23 licensee, a licensee may not allow any person to perform or simulate sexual acts prohibited by
24 Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral copulation,
25 flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the
26 displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon a stage
27 or at a designated area approved by the commission.
28 (b) Nothing in Subsection (25)(a) precludes a local authority from being more restrictive
29 of acts or conduct of the type prohibited in Subsection (25)(a).
30 (26) A restaurant liquor licensee may not engage in or permit any form of gambling, as
31 defined and proscribed by Title 76, Chapter 10, Part 11, Gambling, on the premises of the

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1 restaurant liquor licensee.
2 (27) (a) Each restaurant liquor licensee shall maintain an expense ledger or record showing
3 in detail:
4 (i) quarterly expenditures made separately for:
5 (A) malt or brewed beverages[,];
6 (B) set-ups[,];
7 (C) liquor[,];
8 (D) food[,]; and
9 (E) all other items required by the department; and
10 (ii) sales made separately for:
11 (A) malt or brewed beverages[,];
12 (B) set-ups[,];
13 (C) food[,]; and
14 (D) all other items required by the department.
15 (b) [This] The record required by Subsection (27)(a) shall be kept:
16 (i) in a form approved by the department; and [shall be kept]
17 (ii) current for each three-month period.
18 (c) Each expenditure shall be supported by:
19 (i) delivery tickets[,];
20 (ii) invoices[,];
21 (iii) receipted bills[,];
22 (iv) canceled checks[,];
23 (v) petty cash vouchers[,]; or
24 (vi) other sustaining data or memoranda.
25 (28) (a) Each restaurant liquor licensee shall maintain accounting and other records and
26 documents as the department may require.
27 (b) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,
28 alters, cancels, destroys, conceals, or removes the entries in any of the books of account or other
29 documents of the restaurant required to be made, maintained, or preserved by this title or the rules
30 of the commission for the purpose of deceiving the commission, council, or department, or any
31 of their officials or employees, is subject to the immediate suspension or revocation of the

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1 restaurant's liquor license and possible criminal prosecution under Chapter 12, Criminal Offenses.
2 (29) (a) A restaurant liquor licensee may not close or cease operation for a period longer
3 than 240 hours, unless [written notice is given to]:
4 (i) the restaurant liquor license notifies the department in writing at least seven days before
5 the closing[,]; and
6 (ii) the closure or cessation of operation is first approved by the department.
7 (b) [In] Notwithstanding Subsection (29)(a), in the case of emergency closure, immediate
8 notice of closure shall be made to the department by telephone.
9 (c) The department may authorize a closure or cessation of operation for a period not to
10 exceed 60 days. The department may extend the initial period an additional 30 days upon written
11 request of the restaurant licensee and upon a showing of good cause. A closure or cessation of
12 operation may not exceed a total of 90 days without commission approval.
13 (d) Any notice shall include:
14 (i) the dates of closure or cessation of operation[,];
15 (ii) the reason for the closure or cessation of operation[,]; and
16 (iii) the date on which the licensee will reopen or resume operation.
17 (e) Failure of the licensee to provide notice and to obtain department authorization prior
18 to closure or cessation of operation shall result in an automatic forfeiture of:
19 (i) the license; and [the forfeiture of]
20 (ii) the unused portion of the license fee for the remainder of the license year effective
21 immediately.
22 (f) Failure of the licensee to reopen or resume operation by the approved date shall result
23 in an automatic forfeiture of:
24 (i) the license; and [the forfeiture of]
25 (ii) the unused portion of the license fee for the remainder of the license year.
26 (30) Each restaurant liquor licensee shall maintain at least 70% of its total restaurant
27 business from the sale of food, which does not include mix for alcoholic beverages or service
28 charges.
29 (31) [There shall be no] A person may not transfer [of] a restaurant liquor license from one
30 location to another, without prior written approval of the commission.
31 (32) (a) A person, having been granted a restaurant liquor license may not sell, exchange,

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1 barter, give, or attempt in any way to dispose of the license whether for monetary gain or not.
2 (b) A restaurant liquor license has no monetary value for the purpose of any type of
3 disposition.
4 (33) Each server of alcoholic beverages in a licensee's establishment shall keep a written
5 beverage tab for each table or group that orders or consumes alcoholic beverages on the premises.
6 The beverage tab shall list the type and amount of alcoholic beverages ordered or consumed.
7 (34) A person's willingness to serve alcoholic beverages may not be made a condition of
8 employment as a server with a restaurant that has a restaurant liquor license.




Legislative Review Note
as of 12-20-96 7:51 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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