S.B. 13

1

ALCOHOLIC BEVERAGE SERVICE -
2 WARNING REQUIRED
3 2002 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Carlene M. Walker
6 This act modifies the Alcoholic Beverage Control Act to change the contents of warnings
7 required to be posted by licensees and others governed by the Alcoholic Beverage Control
8 Act.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 32A-1-107, as last amended by Chapters 10 and 20, Laws of Utah 1993
12 32A-2-103, as last amended by Chapter 84, Laws of Utah 1995
13 32A-3-106, as last amended by Chapter 7, Laws of Utah 1993
14 32A-4-106, as last amended by Chapter 1, Laws of Utah 2000
15 32A-4-206, as last amended by Chapter 1, Laws of Utah 2000
16 32A-5-107, as last amended by Chapter 1, Laws of Utah 2000
17 32A-6-202, as renumbered and amended by Chapter 23, Laws of Utah 1990
18 32A-10-206, as last amended by Chapter 1, Laws of Utah 2000
19 Be it enacted by the Legislature of the state of Utah:
20 Section 1. Section 32A-1-107 is amended to read:
21 32A-1-107. Powers and duties of the commission.
22 (1) The commission shall:
23 (a) act as a general policymaking body on the subject of alcoholic product control;
24 (b) adopt and issue policies, directives, rules, and procedures;
25 (c) set policy by written rules that establish criteria and procedures for:
26 (i) granting, denying, suspending, or revoking permits, licenses, and package agencies;
27 (ii) controlling liquor merchandise inventory including:

28 (A) listing and delisting products;
29 (B) the procedures for testing new products;
30 (C) purchasing policy;
31 (D) turnover requirements for regularly coded products to be continued; and
32 (E) the disposition of discontinued, distressed, or unsaleable merchandise;
33 (iii) determining the location of state stores, package agencies, and outlets; and
34 (iv) department trade shows;
35 (d) decide within the limits and under the conditions imposed by this title, the number and
36 location of state stores, package agencies, and outlets established in the state;
37 (e) issue, grant, deny, suspend, or revoke the following permits, licenses, and package
38 agencies for the purchase, sale, storage, service, manufacture, distribution, and consumption of
39 alcoholic products:
40 (i) package agencies;
41 (ii) restaurant licenses;
42 (iii) airport lounge licenses;
43 (iv) private club licenses;
44 (v) on-premise beer retailer licenses;
45 (vi) special use permits;
46 (vii) single event permits;
47 (viii) manufacturing licenses;
48 (ix) liquor warehousing licenses; and
49 (x) beer wholesaling licenses;
50 (f) fix prices at which liquors are sold that are the same at all state stores, package
51 agencies, and outlets;
52 (g) issue and distribute price lists showing the price to be paid by purchasers for each class,
53 variety, or brand of liquor kept for sale by the department;
54 (h) require the director to follow sound management principles and require periodic
55 reporting from the director to ensure that these principles are being followed and that policies
56 established by the commission are being observed;
57 (i) receive, consider, and act in a timely manner upon all reports, recommendations, and
58 matters submitted by the director to the commission, and do all things necessary to support the

59 department in properly performing its duties and responsibilities;
60 (j) obtain temporarily and for special purposes the services of experts and persons engaged
61 in the practice of a profession or who possess any needed skills, talents, or abilities if considered
62 expedient and if approved by the governor;
63 (k) prescribe the duties of departmental officials authorized to issue permits and licenses
64 and to conduct trade shows under this title;
65 (l) prescribe, consistent with this title, the fees payable for permits, licenses, and package
66 agencies issued under this title, or for anything done or permitted to be done under this title;
67 (m) prescribe the conduct, management, and equipment of any premises upon which
68 alcoholic beverages may be sold, consumed, served, or stored;
69 (n) make rules governing the credit terms of beer sales to retailers within the state; and
70 (o) require that each state store, package agency, licensee, and permittee, where required
71 in this title, display in a prominent place a sign in large letters stating: "Warning: [The
72 consumption of alcoholic beverages purchased in this premises may be hazardous to your health
73 and the safety of others.] Driving under the influence of alcohol or drugs is a serious crime that is
74 prosecuted aggressively in Utah."
75 (2) The power of the commission to establish state stores, to create package agencies and
76 grant authority to operate package agencies, and to grant or deny licenses and permits is plenary,
77 except as otherwise provided by this title, and is not subject to review.
78 (3) The commission may appoint qualified hearing officers to conduct any suspension or
79 revocation hearings required by law.
80 (4) (a) In any case where the commission is given the power to suspend any license or
81 permit, it may impose a fine in addition to or in lieu of suspension. Fines imposed may not exceed
82 $25,000 in the aggregate for any single Notice of Agency Action.
83 (b) The commission shall promulgate, by rule, a schedule setting forth a range of fines for
84 each violation.
85 Section 2. Section 32A-2-103 is amended to read:
86 32A-2-103. Operational restrictions.
87 (1) Liquor may not be sold from a state store except in a sealed package. The package may
88 not be opened on the premises of any state store.
89 (2) (a) An officer, agent, clerk, or employee of a state store may not consume or allow to

90 be consumed by any person any alcoholic beverage on the premises of a state store.
91 (b) Violation of this Subsection (2) is a class B misdemeanor.
92 (3) All liquor sold shall be in packages that are properly marked and labeled in accordance
93 with the rules adopted under this title.
94 (4) Liquor may not be sold except at prices fixed by the commission.
95 (5) Liquor may not be sold, delivered, or furnished to any:
96 (a) minor;
97 (b) person actually, apparently, or obviously drunk;
98 (c) known habitual drunkard; or
99 (d) known interdicted person.
100 (6) Sale or delivery of liquor may not be made on or from the premises of any state store,
101 nor may any state store be kept open for the sale of liquor:
102 (a) on Sunday;
103 (b) on any state or federal legal holiday;
104 (c) on any day on which any regular general election, regular primary election, or statewide
105 special election is held;
106 (d) on any day on which any municipal, special district, or school election is held, but only
107 within the boundaries of the municipality, special district, or school district holding the election
108 and only if the municipality, special district, or school district in which the election is being held
109 notifies the department at least 30 days prior to the date of the election; or
110 (e) except on days and during hours as the commission may direct by rule or order.
111 (7) Each state store shall display in a prominent place in the store a sign in large letters
112 stating: "Warning: [The consumption of alcoholic beverages purchased in this establishment may
113 be hazardous to your health and the safety of others.] Driving under the influence of alcohol or
114 drugs is a serious crime that is prosecuted aggressively in Utah."
115 Section 3. Section 32A-3-106 is amended to read:
116 32A-3-106. Operational restrictions.
117 (1) (a) A package agency may not be operated until a package agency agreement has been
118 entered into by the package agent and the department.
119 (b) The agreement shall state the conditions of operation by which the package agent and
120 the department are bound.

121 (c) If the package agent violates the conditions, terms, or covenants contained in the
122 agreement, or violates any provisions of this title, the department may take whatever action against
123 the agent that is allowed by the package agency agreement.
124 (d) Actions against the package agent are governed solely by the agreement and may
125 include suspension or revocation of the agency.
126 (2) The department shall provide all liquor sold by package agencies.
127 (3) The department may pay or otherwise remunerate a package agent on any basis other
128 than sales or volume of business done by the agency.
129 (4) Liquor may not be sold from any package agency except in a sealed package. The
130 package may not be opened on the premises of a package agency.
131 (5) All liquor sold shall be in packages that are properly marked and labeled in accordance
132 with the rules adopted under this title.
133 (6) A package agency may not display liquor or price lists in windows or showcases visible
134 to passersby.
135 (7) (a) An officer, agent, clerk, or employee of a package agency may not consume or
136 allow to be consumed by any person any alcoholic beverage on the premises of a package agency.
137 (b) Violation of this Subsection (7) is a class B misdemeanor.
138 (8) Liquor may not be sold except at prices fixed by the commission.
139 (9) Liquor may not be sold, delivered, or furnished to any:
140 (a) minor;
141 (b) person actually, apparently, or obviously drunk;
142 (c) known habitual drunkard; or
143 (d) known interdicted person.
144 (10) Sale or delivery of liquor may not be made on or from the premises of any package
145 agency nor may any package agency be kept open for the sale of liquor:
146 (a) on Sunday;
147 (b) on any state or federal legal holiday;
148 (c) on any day on which any regular general election, regular primary election, or statewide
149 special election is held until after the polls are closed;
150 (d) on any day on which any municipal, special district, or school election is held until
151 after the polls are closed, but only within the boundaries of the municipality, special district, or

152 school district holding the election and only if the municipality, special district, or school district
153 in which the election is being held notifies the department at least 30 days prior to the date of the
154 election; or
155 (e) except on days and during hours as the commission may direct by rule or order.
156 (11) The package agency certificate issued by the commission shall be permanently posted
157 in a conspicuous place in the package agency.
158 (12) Each package agent shall display in a prominent place in the package agency a sign
159 in large letters stating: "Warning: [The consumption of alcoholic beverages purchased in this
160 establishment may be hazardous to your health and the safety of others.] Driving under the
161 influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah."
162 (13) (a) A package agency may not close or cease operation for a period longer than 72
163 hours, unless written notice is given to the department at least seven days before the closing, and
164 the closure or cessation of operation is first approved by the department.
165 (b) In the case of emergency closure, immediate notice of closure shall be made to the
166 department by telephone.
167 (c) The department may authorize a closure or cessation of operation for a period not to
168 exceed 60 days. The department may extend the initial period an additional 30 days upon written
169 request of the package agency and upon a showing of good cause. A closure or cessation of
170 operation may not exceed a total of 90 days without commission approval.
171 (d) Each notice shall include the dates of closure or cessation of operation, the reason for
172 the closure or cessation of operation, and the date on which the agency will reopen or resume
173 operation.
174 (e) Failure of the agency to provide notice and to obtain department authorization prior to
175 closure or cessation of operation shall result in an automatic termination of the package agency
176 contract effective immediately.
177 (f) Failure of the agency to reopen or resume operation by the approved date shall result
178 in an automatic termination of the package agency contract effective on that date.
179 (14) (a) All liquor shall be stored and sold from the location designated in the package
180 agent's application as approved by the commission.
181 (b) A package agency may not transfer its operations from one location to another without
182 prior written approval of the commission.

183 (15) (a) A person, having been granted a package agency, may not sell, exchange, barter,
184 give, or attempt in any way to dispose of the agency, whether for monetary gain or not.
185 (b) A package agency has no monetary value for the purpose of any type of disposition.
186 Section 4. Section 32A-4-106 is amended to read:
187 32A-4-106. Operational restrictions.
188 Each person granted a restaurant liquor license and the employees and management
189 personnel of the restaurant shall comply with the following conditions and requirements. Failure
190 to comply may result in a suspension or revocation of the license or other disciplinary action taken
191 against individual employees or management personnel.
192 (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from state stores
193 or package agencies.
194 (b) Liquor purchased may be transported by the licensee from the place of purchase to the
195 licensed premises.
196 (c) Payment for liquor shall be made in accordance with rules established by the
197 commission.
198 (2) A restaurant liquor licensee may not sell or provide any primary liquor except in one
199 ounce quantities dispensed through a calibrated metered dispensing system approved by the
200 department in accordance with commission rules adopted under this title, except that:
201 (a) liquor need not be dispensed through a calibrated metered dispensing system if used
202 as a secondary flavoring ingredient in a beverage subject to the following restrictions:
203 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of a
204 primary liquor;
205 (ii) the secondary ingredient is not the only liquor in the beverage;
206 (iii) the licensee shall designate a location where flavorings are stored on the floor plan
207 provided to the department; and
208 (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
209 (b) liquor need not be dispensed through a calibrated metered dispensing system if used
210 as a flavoring on desserts and in the preparation of flaming food dishes, drinks, and desserts;
211 (c) wine may be served by the glass in quantities not exceeding five ounces per glass; and
212 (d) heavy beer may be served in original containers not exceeding one liter.
213 (3) (a) Restaurants licensed to sell liquor may sell beer in any size container not exceeding

214 two liters, and on draft for on-premise consumption without obtaining a separate on-premise beer
215 retailer license from the commission.
216 (b) Restaurants licensed under this chapter that sell beer pursuant to Subsection (3)(a) shall
217 comply with all appropriate operational restrictions under Chapter 10, Beer Retailer Licenses, that
218 apply to on-premise beer retailers except when those restrictions are inconsistent with or less
219 restrictive than the operational restrictions under this chapter.
220 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
221 Licenses, required by Subsection (3)(b) may result in a suspension or revocation of the restaurant's:
222 (i) state liquor license; and
223 (ii) alcoholic beverage license issued by the local authority.
224 (4) Wine may be served in accordance with commission rule in containers not exceeding
225 750 ml.
226 (5) (a) Liquor may not be stored or sold in any place other than as designated in the
227 licensee's application, unless the licensee first applies for and receives approval from the
228 department for a change of location within the restaurant.
229 (b) A patron may only make alcoholic beverage purchases in the restaurant from a server
230 designated and trained by the licensee.
231 (c) Any alcoholic beverage may only be consumed at the patron's table.
232 (d) Liquor may not be stored where it is visible to patrons of the restaurant.
233 (6) (a) Alcoholic beverages may not be dispensed directly to a patron from the storage
234 area.
235 (b) Alcoholic beverages shall be delivered by a server to the patron.
236 (7) The liquor storage area shall remain locked at all times other than those hours and days
237 when liquor sales are authorized by law.
238 (8) (a) Liquor may not be sold or offered for sale at a restaurant during the following days
239 or hours:
240 (i) on the day of any regular general election, regular primary election, or statewide special
241 election until after the polls are closed;
242 (ii) on the day of any municipal, special district, or school election, but only:
243 (A) within the boundaries of the municipality, special district, or school district; and
244 (B) if closure is required by local ordinance; and

245 (iii) on any other day after 12 midnight and before 12 noon.
246 (b) The hours of beer sales are those specified in Chapter 10, Beer Retailer Licenses, for
247 on-premise beer licensees.
248 (9) Alcoholic beverages may not be sold except in connection with an order for food
249 prepared, sold, and served at the restaurant.
250 (10) Alcoholic beverages may not be sold, delivered, or furnished to any:
251 (a) minor;
252 (b) person actually, apparently, or obviously drunk;
253 (c) known habitual drunkard; or
254 (d) known interdicted person.
255 (11) (a) Liquor may not be sold except at prices fixed by the commission.
256 (b) Mixed drinks and wine may not be sold at discount prices on any date or at any time.
257 (12) Each restaurant patron may have only one alcoholic beverage at a time before the
258 patron on the patron's table.
259 (13) No more than one ounce of primary liquor may be served to a patron at a time, except:
260 (a) wine as provided in Subsection (2)(c); and
261 (b) heavy beer as provided in Subsection (2)(d).
262 (14) Alcoholic beverages may not be purchased by the licensee, or any employee or agent
263 of the licensee, for patrons of the restaurant.
264 (15) Alcoholic beverages purchased in a restaurant may not be served or consumed at any
265 location where they are stored or dispensed.
266 (16) (a) A wine service may be performed and a service charge assessed by the restaurant
267 as authorized by commission rule for wine purchased at the restaurant or carried in by a patron.
268 (b) If wine is carried in by a patron, the patron shall deliver the wine to a server or other
269 representative of the licensee upon entering the licensee premises.
270 (17) (a) A person may not bring onto the premises of a restaurant liquor licensee any
271 alcoholic beverage for on-premise consumption, except a person may bring, subject to the
272 discretion of the licensee, cork-finished wine onto the premises of any restaurant liquor licensee
273 and consume wine pursuant to Subsection (16).
274 (b) A restaurant, whether licensed under this title or unlicensed, or its officers, managers,
275 employees, or agents may not allow:

276 (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
277 consumption; or
278 (ii) consumption of any such alcoholic beverage on its premises, except cork-finished wine
279 under Subsection (17)(a).
280 (c) If a restaurant licensee, or any of its officers, managers, employees, or agents violates
281 this Subsection (17):
282 (i) the commission may immediately suspend or revoke the restaurant's liquor license and
283 the restaurant licensee is subject to possible criminal prosecution under Chapter 12, Criminal
284 Offenses; and
285 (ii) the local authority may immediately suspend or revoke the restaurant's:
286 (A) local liquor license;
287 (B) local consent under Subsection 32A-4-102 (1); or
288 (C) local business license.
289 (18) Alcoholic beverages purchased from the restaurant may not be removed from the
290 restaurant premises.
291 (19) (a) Minors may not be employed by a restaurant licensee to sell or dispense alcoholic
292 beverages.
293 (b) Notwithstanding Subsection (19)(a), a minor may be employed to enter the sale at a
294 cash register or other sales recording device.
295 (20) An employee of a restaurant liquor licensee, while on duty, may not:
296 (a) consume an alcoholic beverage; or
297 (b) be under the influence of alcoholic beverages.
298 (21) (a) Advertising or other reference to the sale of liquor and wine is not allowed on a
299 food menu except that a statement of availability of a liquor and wine menu on request, the content
300 and form of which is approved by the department, may be attached to or carried on a food menu.
301 The context of both food and liquor and wine menus may not in any manner attempt to promote
302 or increase the sale of alcoholic beverages.
303 (b) A server, employee, or agent of a licensee may not draw attention to the availability
304 of alcoholic beverages for sale, unless a patron or guest first inquires about it.
305 (c) Any set-up charge, service charge, chilling fee, or any other charge or fee made in
306 connection with the sale, service, or consumption of liquor may be stated in food or alcoholic

307 beverage menus.
308 (22) Each restaurant liquor licensee shall display in a prominent place in the restaurant:
309 (a) the liquor license that is issued by the department;
310 (b) a list of the types and brand names of liquor being served through its calibrated metered
311 dispensing system; and
312 (c) a sign in large letters stating: "Warning: [The consumption of alcoholic beverages
313 purchased in this establishment may be hazardous to your health and the safety of others.] Driving
314 under the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah."
315 (23) The following acts or conduct in a restaurant licensed under this chapter are
316 considered contrary to the public welfare and morals, and are prohibited upon the premises:
317 (a) employing or using any person in the sale or service of alcoholic beverages while the
318 person is unclothed or in attire, costume, or clothing that exposes to view any portion of the female
319 breast below the top of the areola or any portion of the pubic hair, anus, cleft of the buttocks,
320 vulva, or genitals;
321 (b) employing or using the services of any person to mingle with the patrons while the
322 person is unclothed or in attire, costume, or clothing described in Subsection (23)(a);
323 (c) encouraging or permitting any person to touch, caress, or fondle the breasts, buttocks,
324 anus, or genitals of any other person;
325 (d) permitting any employee or person to wear or use any device or covering, exposed to
326 view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
327 (e) permitting any person to use artificial devices or inanimate objects to depict any of the
328 prohibited activities described in this Subsection (23);
329 (f) permitting any person to remain in or upon the premises who exposes to public view
330 any portion of that person's genitals or anus; or
331 (g) showing films, still pictures, electronic reproductions, or other visual reproductions
332 depicting:
333 (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
334 copulation, flagellation, or any sexual acts prohibited by Utah law;
335 (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
336 genitals;
337 (iii) scenes wherein artificial devices or inanimate objects are used to depict, or drawings

338 are used to portray, any of the prohibited activities described in this Subsection (23); or
339 (iv) scenes wherein a person displays the vulva or the anus or the genitals.
340 (24) Nothing in Subsection (23) precludes a local authority from being more restrictive
341 of acts or conduct of the type prohibited in Subsection (23).
342 (25) (a) Although live entertainment is permitted on the premises of a restaurant liquor
343 licensee, a licensee may not allow any person to perform or simulate sexual acts prohibited by Utah
344 law, including sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation,
345 the touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the displaying of
346 the pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon a stage or at a
347 designated area approved by the commission.
348 (b) Nothing in Subsection (25)(a) precludes a local authority from being more restrictive
349 of acts or conduct of the type prohibited in Subsection (25)(a).
350 (26) A restaurant liquor licensee may not engage in or permit any form of gambling, or
351 have any video gaming device, as defined and proscribed by Title 76, Chapter 10, Part 11,
352 Gambling, on the premises of the restaurant liquor licensee.
353 (27) (a) Each restaurant liquor licensee shall maintain an expense ledger or record showing
354 in detail:
355 (i) quarterly expenditures made separately for:
356 (A) malt or brewed beverages;
357 (B) set-ups;
358 (C) liquor;
359 (D) food; and
360 (E) all other items required by the department; and
361 (ii) sales made separately for:
362 (A) malt or brewed beverages;
363 (B) set-ups;
364 (C) food; and
365 (D) all other items required by the department.
366 (b) The record required by Subsection (27)(a) shall be kept:
367 (i) in a form approved by the department; and
368 (ii) current for each three-month period.

369 (c) Each expenditure shall be supported by:
370 (i) delivery tickets;
371 (ii) invoices;
372 (iii) receipted bills;
373 (iv) canceled checks;
374 (v) petty cash vouchers; or
375 (vi) other sustaining data or memoranda.
376 (28) (a) Each restaurant liquor licensee shall maintain accounting and other records and
377 documents as the department may require.
378 (b) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,
379 alters, cancels, destroys, conceals, or removes the entries in any of the books of account or other
380 documents of the restaurant required to be made, maintained, or preserved by this title or the rules
381 of the commission for the purpose of deceiving the commission or the department, or any of their
382 officials or employees, is subject to the immediate suspension or revocation of the restaurant's
383 liquor license and possible criminal prosecution under Chapter 12, Criminal Offenses.
384 (29) (a) A restaurant liquor licensee may not close or cease operation for a period longer
385 than 240 hours, unless:
386 (i) the restaurant liquor license notifies the department in writing at least seven days before
387 the closing; and
388 (ii) the closure or cessation of operation is first approved by the department.
389 (b) Notwithstanding Subsection (29)(a), in the case of emergency closure, immediate notice
390 of closure shall be made to the department by telephone.
391 (c) The department may authorize a closure or cessation of operation for a period not to
392 exceed 60 days. The department may extend the initial period an additional 30 days upon written
393 request of the restaurant licensee and upon a showing of good cause. A closure or cessation of
394 operation may not exceed a total of 90 days without commission approval.
395 (d) Any notice shall include:
396 (i) the dates of closure or cessation of operation;
397 (ii) the reason for the closure or cessation of operation; and
398 (iii) the date on which the licensee will reopen or resume operation.
399 (e) Failure of the licensee to provide notice and to obtain department authorization prior

400 to closure or cessation of operation shall result in an automatic forfeiture of:
401 (i) the license; and
402 (ii) the unused portion of the license fee for the remainder of the license year effective
403 immediately.
404 (f) Failure of the licensee to reopen or resume operation by the approved date shall result
405 in an automatic forfeiture of:
406 (i) the license; and
407 (ii) the unused portion of the license fee for the remainder of the license year.
408 (30) Each restaurant liquor licensee shall maintain at least 70% of its total restaurant
409 business from the sale of food, which does not include mix for alcoholic beverages or service
410 charges.
411 (31) A person may not transfer a restaurant liquor license from one location to another,
412 without prior written approval of the commission.
413 (32) (a) A person, having been granted a restaurant liquor license may not sell, exchange,
414 barter, give, or attempt in any way to dispose of the license whether for monetary gain or not.
415 (b) A restaurant liquor license has no monetary value for the purpose of any type of
416 disposition.
417 (33) Each server of alcoholic beverages in a licensee's establishment shall keep a written
418 beverage tab for each table or group that orders or consumes alcoholic beverages on the premises.
419 The beverage tab shall list the type and amount of alcoholic beverages ordered or consumed.
420 (34) A person's willingness to serve alcoholic beverages may not be made a condition of
421 employment as a server with a restaurant that has a restaurant liquor license.
422 Section 5. Section 32A-4-206 is amended to read:
423 32A-4-206. Operational restrictions.
424 Each person granted an airport lounge liquor license and the employees and management
425 personnel of the airport lounge shall comply with the following conditions and requirements.
426 Failure to comply may result in a suspension or revocation of the license or other disciplinary
427 action taken against individual employees or management personnel.
428 (1) Liquor may not be purchased by an airport lounge liquor licensee except from state
429 stores or package agencies. Liquor purchased may be transported by the licensee from the place
430 of purchase to the licensed premises. Payment for liquor shall be made in accordance with the

431 rules established by the commission.
432 (2) An airport lounge liquor licensee may not sell or provide any primary liquor except in
433 one ounce quantities dispensed through a calibrated metered dispensing system approved by the
434 department in accordance with commission rules adopted under this title, except that:
435 (a) liquor need not be dispensed through a calibrated metered dispensing system if used
436 as a secondary flavoring ingredient in a beverage subject to the following restrictions:
437 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of a
438 primary liquor;
439 (ii) the secondary ingredient is not the only liquor in the beverage;
440 (iii) the licensee shall designate a location where flavorings are stored on the floor plan
441 provided to the department; and
442 (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
443 (b) wine may be served by the glass in quantities not exceeding five ounces per glass; and
444 (c) heavy beer may be served in original containers not exceeding one liter.
445 (3) (a) Airport lounges may sell beer in any size container not exceeding two liters, and
446 on draft without obtaining a separate on-premise beer retailer license from the commission.
447 (b) Airport lounges that sell beer pursuant to Subsection (3)(a) shall comply with all
448 appropriate operational restrictions under Chapter 10, Beer Retailer Licenses, that apply to
449 on-premise beer retailers except when those restrictions are inconsistent with or less restrictive
450 than the operational restrictions under this chapter that apply to airport lounges.
451 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
452 Licenses, as set forth in Subsection (3)(b) may result in a suspension or revocation of the airport
453 lounge's state liquor license and its alcoholic beverage license issued by the local authority.
454 (4) Wine may be served in accordance with commission rule in containers not exceeding
455 750 ml.
456 (5) (a) Liquor may not be stored or sold in any place other than as designated in the
457 licensee's application, unless the licensee first applies for and receives approval from the
458 department for a change of location within the airport lounge.
459 (b) A patron or guest may only make purchases in the airport lounge from a server
460 designated and trained by the licensee.
461 (c) Alcoholic beverages may not be stored where they are visible to persons outside the

462 airport lounge.
463 (6) The liquor storage area shall remain locked at all times other than those hours and days
464 when liquor sales are authorized by law.
465 (7) Alcoholic beverages may not be sold or offered for sale at an airport lounge during the
466 following days or hours:
467 (a) on the day of any regular general election, regular primary election, or statewide special
468 election until after the polls are closed; and
469 (b) on any other day after 12 midnight and before 8 a.m.
470 (8) Alcoholic beverages may not be sold, delivered, or furnished to any:
471 (a) minor;
472 (b) person actually, apparently, or obviously drunk;
473 (c) known habitual drunkard; or
474 (d) known interdicted person.
475 (9) Liquor may not be sold except at prices fixed by the commission. Mixed drinks and
476 wine may not be sold at discount prices on any day or at any time.
477 (10) An airport lounge patron or guest may have only one alcoholic beverage at a time
478 before him.
479 (11) No more than one ounce of primary liquor may be served to a patron or guest at a
480 time, except:
481 (a) wine as provided in Subsection (2)(b); and
482 (b) heavy beer as provided in Subsection (2)(c).
483 (12) Alcoholic beverages may not be purchased by the licensee, or any employee or agent
484 of the licensee, for patrons or guests of the airport lounge.
485 (13) (a) Beginning January 1, 1991, a person may not bring onto the premises of an airport
486 lounge licensee any alcoholic beverage for on-premise consumption.
487 (b) Beginning January 1, 1991, an airport lounge or its officers, managers, employees, or
488 agents may not allow a person to bring onto the airport lounge premises any alcoholic beverage
489 for on-premise consumption or allow consumption of any such alcoholic beverage on its premises.
490 (c) Beginning January 1, 1991, if any airport lounge liquor licensee or any of its officers,
491 managers, employees, or agents violates Subsection (13):
492 (i) the commission may immediately suspend or revoke the airport lounge's liquor license

493 and the airport lounge liquor licensee is subject to criminal prosecution under Chapter 12, Criminal
494 Offenses; and
495 (ii) the local authority may immediately suspend or revoke the airport lounge's local liquor
496 license, local consent under Subsection 32A-4-202 (1), or local business license.
497 (14) Alcoholic beverages purchased from the airport lounge may not be removed from the
498 airport lounge premises.
499 (15) Minors may not be employed by an airport lounge licensee to sell or dispense
500 alcoholic beverages.
501 (16) An employee of a licensee, while on duty, may not consume an alcoholic beverage
502 or be under the influence of alcoholic beverages.
503 (17) Each airport lounge liquor licensee shall display in a prominent place in the airport
504 lounge:
505 (a) the liquor license that is issued by the department;
506 (b) a list of the types and brand names of liquor being served through its calibrated metered
507 dispensing system; and
508 (c) a sign in large letters stating: "Warning: [The consumption of alcoholic beverages
509 purchased in this establishment may be hazardous to your health and the safety of others.] Driving
510 under the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah."
511 (18) (a) Each airport lounge liquor licensee shall maintain an expense ledger or record
512 showing in detail:
513 (i) quarterly expenditures made separately for malt or brewed beverages, liquor, and all
514 other items required by the department; and
515 (ii) sales made separately for malt or brewed beverages, food, and all other items required
516 by the department.
517 (b) This record shall be kept in a form approved by the department and shall be kept
518 current for each three-month period. Each expenditure shall be supported by delivery tickets,
519 invoices, receipted bills, canceled checks, petty cash vouchers, or other sustaining data or
520 memoranda.
521 (19) Each airport lounge liquor licensee shall maintain accounting and other records and
522 documents as the department may require. Any airport lounge or person acting for the airport
523 lounge, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the entries

524 in any of the books of account or other documents of the airport lounge required to be made,
525 maintained, or preserved by this title or the rules of the commission for the purpose of deceiving
526 the commission or the department, or any of their officials or employees, is subject to the
527 immediate suspension or revocation of the airport lounge's liquor license and possible criminal
528 prosecution under Chapter 12, Criminal Offenses.
529 (20) There shall be no transfer of an airport lounge liquor license from one location to
530 another, without prior written approval of the commission.
531 (21) (a) A person, having been granted an airport lounge liquor license, may not sell,
532 exchange, barter, give, or attempt in any way to dispose of the license whether for monetary gain
533 or not.
534 (b) An airport lounge liquor license has no monetary value for the purpose of any type of
535 disposition.
536 (22) Each server of alcoholic beverages in a licensee's establishment shall keep a written
537 beverage tab for each table or group that orders or consumes alcoholic beverages on the premises.
538 The beverage tab shall list the type and amount of alcoholic beverages ordered or consumed.
539 (23) An airport lounge liquor licensee's premises may not be leased for private functions.
540 (24) An airport lounge liquor licensee may not engage in or permit any form of gambling,
541 or have any video gaming device, as defined and proscribed by Title 76, Chapter 10, Part 11,
542 Gambling, on the premises of the airport lounge liquor licensee.
543 Section 6. Section 32A-5-107 is amended to read:
544 32A-5-107. Operational restrictions.
545 Each corporation or association granted a private club liquor license and its employees,
546 officers, managing agent, and members shall comply with the following conditions and
547 requirements. Failure to comply may result in a suspension or revocation of the license or other
548 disciplinary action taken against individual employees or management personnel.
549 (1) Each private club shall hold regular meetings as required by its articles or bylaws and
550 conduct its business through regularly elected officers. Within ten days following the election of
551 any officer, the department shall be notified in writing of the officer's name, address, and office
552 to which the officer has been elected, and the term of that office.
553 (2) Each private club may admit members only on written application signed by the
554 applicant, following investigation and approval of the governing body. Admissions shall be

555 recorded in the official minutes of a regular meeting of the governing body and the application,
556 whether approved or disapproved, shall be filed as a part of the official records of the licensee.
557 An applicant may not be accorded the privileges of a member until a quorum of the governing
558 body has formally voted upon and approved the applicant as a member. An applicant may not be
559 admitted to membership until seven days after the application is submitted.
560 (3) Each private club shall maintain a current and complete membership record showing
561 the date of application of each proposed member, the member's address, the date of admission
562 following application, and the date initiation fees and dues were assessed and paid. The record
563 shall also show the serial number of the membership card issued to each member. A current record
564 shall also be kept indicating when members were dropped or resigned.
565 (4) Each private club shall establish in the club bylaws initial fees and monthly dues, as
566 established by commission rules, which are collected from all members.
567 (5) Each private club may allow guests or visitors to use the premises only when
568 previously authorized by a member. A member is responsible for all services extended to guests
569 and visitors. If the guest or visitor is a member of the same fraternal organization as the private
570 club liquor licensee, no previous authorization is required.
571 (6) Each private club shall limit the issuance of visitor cards for a period not to exceed two
572 weeks and assess and collect a fee from each visitor of not less than $5 for each two-week period
573 the visitor card is issued. One dollar of every visitor card fee shall be remitted quarterly to the
574 department for the administration of this title. A current record of the issuance of each card shall
575 be maintained and shall contain the name of the member sponsoring the visitor.
576 (7) A private club may not sell alcoholic beverages to any person other than a member,
577 guest, or visitor who holds a valid visitor card issued under Subsection (6).
578 (8) A person who is under 21 years of age may not be a member, officer, director, or
579 trustee of a private club.
580 (9) An employee of a club, while on duty, may not consume an alcoholic beverage, be
581 under the influence of alcoholic beverages, sponsor a person for visitor privileges, or act as a host
582 for a guest.
583 (10) A visitor to a club may not host more than five guests at one time.
584 (11) Each private club shall maintain an expense ledger or record showing in detail all
585 expenditures separated by payments for malt or brewed beverages, liquor, food, detailed payroll,

586 entertainment, rent, utilities, supplies, and all other expenditures. This record shall be kept in a
587 form approved by the department and balanced each month. Each expenditure shall be supported
588 by delivery tickets, invoices, receipted bills, canceled checks, petty cash vouchers, or other
589 sustaining data or memoranda. All invoices and receipted bills for the current calendar or fiscal
590 year documenting purchases made by officers of the club for the benefit of the club shall also be
591 maintained.
592 (12) Each private club shall maintain a bank account that shows all income and
593 expenditures as a control on the income and disbursements records. This account shall be balanced
594 each month under the direction of the treasurer or other officer of the licensee.
595 (13) Each private club shall maintain a minute book that is posted currently by the
596 secretary. This record shall contain the minutes of all regular and special meetings of the
597 governing body and all committee meetings held to conduct club business. Membership lists shall
598 also be maintained.
599 (14) Each private club shall maintain current copies of the club's articles of incorporation,
600 current bylaws, and current house rules. Changes in the bylaws are not effective unless submitted
601 to the department within ten days after adoption, and become effective 15 days after received by
602 the department unless rejected by the department before the expiration of the 15-day period.
603 (15) Each private club shall maintain accounting and other records and documents as the
604 department may require.
605 (16) Any club or person acting for the club, who knowingly forges, falsifies, alters,
606 cancels, destroys, conceals, or removes the entries in any of the books of account or other
607 documents of the club required to be made, maintained, or preserved by this title or the rules of
608 the commission for the purpose of deceiving the commission or the department, or any of their
609 officials or employees, is subject to the immediate suspension or revocation of the club's license
610 and possible criminal prosecution under Chapter 12, Criminal Offenses.
611 (17) Each private club shall maintain and keep all the records required by this section and
612 all other books, records, receipts, and disbursements maintained or utilized by the licensee, as the
613 department requires, for a minimum period of three years. All records, books, receipts, and
614 disbursements are subject to inspection by authorized representatives of the commission and the
615 department. The club shall allow the department, through its auditors or examiners, to audit all
616 records of the club at times the department considers advisable. The department shall audit the

617 records of the licensee at least once annually.
618 (18) Each private club shall make available to the department, upon request, verified
619 copies of any returns filed with the United States Treasury Department, Internal Revenue Service,
620 under the federal Internal Revenue Code. Failure to provide any returns and supporting documents
621 upon reasonable request by the department or, alternatively, to provide evidence of an extension
622 granted by the Internal Revenue Service, constitutes sufficient grounds for the commission to
623 suspend or revoke a license. Any return or copy of a return so filed with the department is
624 confidential and may not be used in any manner not directly connected with the enforcement of
625 this title, nor may it be disclosed to any person or any department or agency of government,
626 whether federal, state, or local.
627 (19) Each private club shall own or lease premises suitable for its activities in its own
628 name. A copy of the lease shall be filed with the department.
629 (20) Each private club shall operate the club under the supervision of a manager or house
630 committee, appointed by the governing body of the club.
631 (21) A private club may not maintain facilities in any manner that barricades or conceals
632 the club operation. Any member of the commission, authorized department personnel, or any
633 peace officer shall, upon presentation of credentials, be admitted immediately to the club and
634 permitted without hindrance or delay to inspect completely the entire club premises and all books
635 and records of the licensee, at any time during which the same are open for the transaction of
636 business to its members.
637 (22) A private club may not pay any person or entity any fee, salary, rent, or other payment
638 of any kind in excess of the fair market value for the service rendered, goods furnished, or facilities
639 or equipment rented. It is the intention of this subsection to insure that no officer, managing agent,
640 employee, or other person derives a principal economic benefit from the operation of a club.
641 (23) A private club may not engage in any public solicitation or public advertising
642 calculated to increase its membership.
643 (24) Each private club shall comply with the following operational restrictions:
644 (a) The liquor storage and sales area shall remain locked at all times when it is not open
645 for business.
646 (b) Liquor may not be purchased by a private club liquor licensee except from state stores
647 or package agencies. Liquor so purchased may be transported by the licensee from the place of

648 purchase to the licensed premises. Payment for liquor shall be made in accordance with rules
649 established by the commission.
650 (c) Beginning July 1, 1991, a private club liquor licensee may not sell or provide any
651 primary liquor except in one ounce quantities dispensed through a calibrated metered dispensing
652 system approved by the department in accordance with commission rules adopted under this title,
653 except that:
654 (i) liquor need not be dispensed through a calibrated metered dispensing system if used
655 as a secondary flavoring ingredient in a beverage subject to the following restrictions:
656 (A) the beverage shall contain liquor from a lawfully purchased container;
657 (B) the secondary ingredient is not the only liquor in the beverage;
658 (C) the licensee shall designate a location where flavorings are stored on the floor plan
659 provided to the department; and
660 (D) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
661 (ii) liquor need not be dispensed through a calibrated metered dispensing system if used
662 as a flavoring on desserts and in the preparation of flaming food dishes, drinks, and desserts;
663 (iii) wine may be served by the glass in quantities not exceeding five ounces per glass; and
664 (iv) heavy beer may be served in standard containers not exceeding one liter.
665 (d) (i) Private clubs licensed to sell liquor may sell beer in any size container not exceeding
666 two liters, and on draft without obtaining a separate on-premise beer retailer license from the
667 commission.
668 (ii) Private clubs licensed under this chapter that sell beer pursuant to Subsection (24)(d)(i)
669 shall comply with all appropriate operational restrictions under [Title 32A,] Chapter 10, Beer
670 Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
671 inconsistent with or less restrictive than the operational restrictions under this chapter.
672 (iii) Failure to comply with the operational restrictions under [Title 32A,] Chapter 10, Beer
673 Retailer Licenses, as set forth in Subsection (24)(d)(ii) may result in a suspension or revocation
674 of the private club's state liquor license and its alcoholic beverage license issued by the local
675 authority.
676 (e) Wine may be served in accordance with commission rule in containers not exceeding
677 750 ml.
678 (f) A private club may not charge for the service or supply of glasses, ice, or mixers unless

679 the charges are fixed in the house rules of the club and a copy of the rules is kept on the club
680 premises and available at all times for examination by the members, guests, and visitors to the
681 club.
682 (g) Minors may not be employed by any club to sell, dispense, or handle any alcoholic
683 beverage.
684 (h) An officer, director, managing agent, employee, and any other person employed by or
685 acting for or in behalf of any licensee, may not sell, deliver, or furnish, or cause or permit to be
686 sold, delivered, or furnished any liquor to any:
687 (i) minor;
688 (ii) person actually, apparently, or obviously drunk;
689 (iii) known habitual drunkard; or
690 (iv) known interdicted person.
691 (i) (i) Liquor may not be sold or offered for sale at any private club during the following
692 days or hours:
693 (A) on the day of any regular general election, regular primary election, or statewide
694 special election until after the polls are closed;
695 (B) on the day of any municipal, special district, or school election, but only within the
696 boundaries of the municipality, special district, or school district, and only if closure is required
697 by local ordinance; and
698 (C) on Sunday and any state or federal legal holiday after 12 midnight and before 12 noon.
699 (ii) The hours of beer sales are those specified in Chapter 10, Beer Retailer Licenses, for
700 on-premise beer licensees.
701 (j) On all other days the liquor storage and sales area in the club shall be closed from 1
702 a.m. until 10 a.m.
703 (k) Liquor may not be sold except at prices fixed by the commission. Mixed drinks and
704 wine may not be sold at discount prices on any date or at any time.
705 (l) Beginning July 1, 1991, no more than one ounce of primary liquor may be served to a
706 member, guest, or visitor at a time, except:
707 (i) wine as provided in Subsection (24)(c)(iii); and
708 (ii) heavy beer as provided in Subsection (24)(c)(iv).
709 (m) (i) Beginning January 1, 1991, a person may not bring onto the premises of a private

710 club liquor licensee any alcoholic beverage for on-premise consumption, except a person may
711 bring, subject to the discretion of the licensee, cork-finished wine onto the premises of any private
712 club liquor licensee and consume wine pursuant to Subsection (24)(n).
713 (ii) Beginning January 1, 1991, a private club or its officers, managers, employees, or
714 agents may not allow a person to bring onto the private club premises any alcoholic beverage for
715 on-premise consumption, except cork-finished wine under Subsection (24)(m)(i).
716 (iii) Beginning January 1, 1991, if any private club licensee or any of its officers,
717 managers, employees, or agents violates this Subsection (24):
718 (A) the commission may immediately suspend or revoke the private club's liquor license
719 and the private club licensee is subject to criminal prosecution under Chapter 12, Criminal
720 Offenses; and
721 (B) the local authority may immediately suspend or revoke the private club's local liquor
722 license, local consent under Subsection 32A-5-102 (1), or local business license.
723 (n) A wine service may be performed and a service charge assessed by the private club as
724 authorized by commission rule for wine purchased at the private club or carried in by a member,
725 guest, or visitor. If wine is carried in by a member, guest, or visitor, the member, guest, or visitor
726 shall deliver the wine to a server or other representative of the licensee upon entering the licensee
727 premises.
728 (o) A member, guest, or visitor to a club may not carry from a club premises an open
729 container used primarily for drinking purposes containing any alcoholic beverage.
730 (p) Each private club liquor licensee shall display in a prominent place in the private club:
731 (i) the private club liquor license that is issued by the department;
732 (ii) a list of the types and brand names of liquor being served through its calibrated
733 metered dispensing system; and
734 (iii) a sign in large letters stating: "Warning: [The consumption of alcoholic beverages
735 purchased in this establishment may be hazardous to your health and the safety of others.] Driving
736 under the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah."
737 (q) The following acts or conduct in a private club licensed under this chapter are
738 considered contrary to the public welfare and morals, and are prohibited upon the premises:
739 (i) employing or using any person in the sale or service of alcoholic beverages while the
740 person is unclothed or in attire, costume, or clothing that exposes to view any portion of the female

741 breast below the top of the areola or any portion of the pubic hair, anus, cleft of the buttocks,
742 vulva, or genitals;
743 (ii) employing or using the services of any person to mingle with the patrons while the
744 person is unclothed or in attire, costume, or clothing described in Subsection (24)(q)(i);
745 (iii) encouraging or permitting any person to touch, caress, or fondle the breasts, buttocks,
746 anus, or genitals of any other person;
747 (iv) permitting any employee or person to wear or use any device or covering, exposed to
748 view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
749 (v) permitting any person to use artificial devices or inanimate objects to depict any of the
750 prohibited activities described in this Subsection (24);
751 (vi) permitting any person to remain in or upon the premises who exposes to public view
752 any portion of his or her genitals or anus; or
753 (vii) showing films, still pictures, electronic reproductions, or other visual reproductions
754 depicting:
755 (A) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
756 copulation, flagellation, or any sexual acts prohibited by Utah law;
757 (B) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
758 genitals;
759 (C) scenes wherein artificial devices or inanimate objects are used to depict, or drawings
760 are used to portray, any of the prohibited activities described in this Subsection (24); or
761 (D) scenes wherein a person displays the vulva or the anus or the genitals.
762 (r) Nothing in Subsection (24)(q) precludes a local authority from being more restrictive
763 of acts or conduct of the type prohibited in Subsection (24)(q).
764 (s) (i) Although live entertainment is permitted on the premises of a club liquor licensee,
765 a licensee may not allow any person to perform or simulate sexual acts prohibited by Utah law,
766 including sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation, or the
767 touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the displaying of the
768 pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon a stage or at a designated
769 area approved by the commission.
770 (ii) Nothing in Subsection (24)(s)(i) precludes a local authority from being more restrictive
771 of acts or conduct of the type prohibited in Subsection (24)(s)(i).

772 (25) A private club may not engage in or permit any form of gambling, or have any video
773 gaming device, as defined and proscribed in Title 76, Chapter 10, Part 11, Gambling, on the
774 premises of the private club.
775 (26) (a) A private club may not close or cease operation for a period longer than 240 hours,
776 unless written notice is given to the department at least seven days before the closing, and the
777 closure or cessation of operation is first approved by the department.
778 (b) In the case of emergency closure, immediate notice of closure shall be made to the
779 department by telephone.
780 (c) The department may authorize a closure or cessation of operation for a period not to
781 exceed 60 days. The department may extend the initial period an additional 30 days upon written
782 request of the private club and upon a showing of good cause. A closure or cessation of operation
783 may not exceed a total of 90 days without commission approval.
784 (d) Any notice shall include the dates of closure or cessation of operation, the reason for
785 the closure or cessation of operation, and the date on which the licensee will reopen or resume
786 operation.
787 (e) Failure of the licensee to provide notice and to obtain department authorization prior
788 to closure or cessation of operation shall result in an automatic forfeiture of the license and the
789 forfeiture of the unused portion of the license fee for the remainder of the license year effective
790 immediately.
791 (f) Failure of the licensee to reopen or resume operation by the approved date shall result
792 in an automatic forfeiture of the license and the forfeiture of the unused portion of the club's
793 license fee for the remainder of the license year.
794 (27) Each private club shall conduct its affairs so that it is not operated for a pecuniary
795 profit.
796 (28) A private club may not transfer a private club liquor license from one location to
797 another, without prior written approval of the commission.
798 (29) A person, having been granted a private club liquor license, may not sell, exchange,
799 barter, give, or attempt in any way to dispose of the license, whether for monetary gain or not. A
800 private club liquor license has no monetary value for the purpose of any type of disposition.
801 Section 7. Section 32A-6-202 is amended to read:
802 32A-6-202. Operational restrictions.

803 In addition to the restrictions, conditions, and requirements of Section 32A-6-105 , each
804 public service permit is subject to the following operating restrictions:
805 (1) A public service permittee may purchase alcoholic beverages outside of the state and
806 bring it into the state and sell and serve it to passengers traveling on the permittee's public
807 conveyance for consumption while en route on the conveyance.
808 (2) A public service permittee may establish a hospitality room in which alcoholic
809 beverages may be stored, sold, served, and consumed, if:
810 (a) the room is located within a depot, terminal, or similar facility adjacent to and servicing
811 the permittee's airline, railroad, bus, boat, or other public conveyance;
812 (b) the room is completely enclosed and the interior is not visible to the public;
813 (c) the sale or service of alcoholic beverages is made only to persons then in transit using
814 the host company's airline, railroad, bus line, or other public conveyance, and holding a valid
815 boarding pass or similar travel document issued by the host company; and
816 (d) all liquor is purchased from a state store or package agency.
817 (3) Each public service permittee operating a hospitality room shall display in a prominent
818 place in the hospitality room, a sign in large letters stating: "Warning: [The consumption of
819 alcoholic beverages purchased in this establishment may be hazardous to your health and the safety
820 of others.] Driving under the influence of alcohol or drugs is a serious crime that is prosecuted
821 aggressively in Utah."
822 (4) The operation of all hospitality rooms shall be done in accordance with this chapter and
823 rules adopted by the commission.
824 Section 8. Section 32A-10-206 is amended to read:
825 32A-10-206. Operational restrictions.
826 Each person granted an on-premise beer retailer license and the employees and
827 management personnel of the on-premise beer retailer licensee shall comply with the following
828 conditions and requirements. Failure to comply may result in a suspension or revocation of the
829 license or other disciplinary action taken against individual employees or management personnel.
830 (1) On-premise beer retailer licensees may sell beer in open containers, in any size not
831 exceeding two liters, and on draft.
832 (2) Liquor may not be stored or sold on the premises of any on-premise beer retailer
833 licensee.

834 (3) A patron or guest may only make purchases in the on-premise beer retailer licensee
835 from a server designated and trained by the licensee.
836 (4) (a) Beer may not be sold or offered for sale at any on-premise beer retailer licensee
837 after 1 a.m. and before 10 a.m.
838 (b) Beer may not be sold, delivered, or furnished to any:
839 (i) minor;
840 (ii) person actually, apparently, or obviously drunk;
841 (iii) known habitual drunkard; or
842 (iv) known interdicted person.
843 (5) Beer sold in sealed containers by the on-premise beer retailer licensee may be removed
844 from the on-premise beer retailer premises.
845 (6) (a) Beginning January 1, 1991, a person may not bring onto the premises of an
846 on-premise beer retailer licensee any alcoholic beverage for on-premise consumption.
847 (b) Beginning January 1, 1991, an on-premise beer retailer licensee or its officers,
848 managers, employees, or agents may not allow a person to bring onto the on-premise beer retailer
849 licensee premises any alcoholic beverage for on-premise consumption or allow consumption of
850 any such alcoholic beverage on its premises.
851 (c) Beginning January 1, 1991, if any on-premise beer retailer licensee or any of its
852 officers, managers, employees, or agents violates this Subsection (6):
853 (i) the commission may immediately suspend or revoke the on-premise beer retailer license
854 and the on-premise beer retailer licensee is subject to possible criminal prosecution under Chapter
855 12, Criminal Offenses; and
856 (ii) the local authority may immediately suspend or revoke the business license of the
857 on-premise beer retailer licensee.
858 (7) Minors may not be employed by or be on the premises of an on-premise beer retailer
859 licensee to sell or dispense beer. Minors may not be employed by or be on the premises of any
860 tavern.
861 (8) An employee of a licensee, while on duty, may not consume an alcoholic beverage or
862 be under the influence of alcoholic beverages.
863 (9) Each on-premise beer retailer licensee shall display in a prominent place in the
864 on-premise beer retailer licensee:

865 (a) the on-premise beer retailer license that is issued by the department; and
866 (b) a sign in large letters stating: "Warning: [The consumption of alcoholic beverages
867 purchased in this establishment may be hazardous to your health and the safety of others.] Driving
868 under the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah."
869 (10) The following acts or conduct in an on-premise beer retailer outlet licensed under this
870 part are considered contrary to the public welfare and morals, and are prohibited upon the
871 premises:
872 (a) employing or using any person in the sale or service of alcoholic beverages while the
873 person is unclothed or in attire, costume, or clothing that exposes to view any portion of the female
874 breast below the top of the areola or any portion of the pubic hair, anus, cleft of the buttocks,
875 vulva, or genitals;
876 (b) employing or using the services of any person to mingle with the patrons while the
877 person is unclothed or in attire, costume, or clothing as described in Subsection (10)(a);
878 (c) encouraging or permitting any person to touch, caress, or fondle the breasts, buttocks,
879 anus, or genitals of any other person;
880 (d) permitting any employee or person to wear or use any device or covering, exposed to
881 view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
882 (e) permitting any person to use artificial devices or inanimate objects to depict any of the
883 prohibited activities described in this section;
884 (f) permitting any person to remain in or upon the premises who exposes to public view
885 any portion of his or her genitals or anus; or
886 (g) showing films, still pictures, electronic reproductions, or other visual reproductions
887 depicting:
888 (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
889 copulation, flagellation, or any sexual acts that are prohibited by Utah law;
890 (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
891 genitals;
892 (iii) scenes wherein artificial devices or inanimate objects are employed to depict, or
893 drawings are employed to portray, any of the prohibited activities described in this section; or
894 (iv) scenes wherein a person displays the vulva or the anus or the genitals.
895 (11) Nothing in Subsection (10) precludes a local authority from being more restrictive

896 of acts or conduct of the type prohibited in Subsection (10).
897 (12) An on-premise beer retailer licensee may not engage in or permit any form of
898 gambling, or have any video gaming device, as defined and proscribed in Title 76, Chapter 10, Part
899 11, Gambling, on the premises of the on-premise beer retailer licensee.
900 (13) (a) Although live entertainment is permitted on the premises of an on-premise beer
901 retailer licensee, a licensee may not permit any person to perform or simulate sexual acts
902 prohibited by Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral
903 copulation, flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or
904 genitals, or the displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform
905 only upon a stage or at a designated area approved by the commission.
906 (b) Nothing in Subsection (13)(a) precludes a local authority from being more restrictive
907 of acts or conduct of the type prohibited in Subsection (13)(a).
908 (14) Each on-premise beer retailer licensee shall maintain accounting and other records
909 and documents as the department may require. Any on-premise beer retailer licensee or person
910 acting for the on-premise beer retailer licensee, who knowingly forges, falsifies, alters, cancels,
911 destroys, conceals, or removes the entries in any of the books of account or other documents of the
912 on-premise beer retailer licensee required to be made, maintained, or preserved by this title or the
913 rules of the commission for the purpose of deceiving the commission or the department, or any of
914 their officials or employees, is subject to the immediate suspension or revocation of the on-premise
915 beer retailer license and possible criminal prosecution under Chapter 12, Criminal Offenses.
916 (15) There shall be no transfer of an on-premise beer retailer license from one location to
917 another, without prior written approval of the commission.
918 (16) (a) A person having been granted an on-premise beer retailer license may not sell,
919 exchange, barter, give, or attempt in any way to dispose of the license whether for monetary gain
920 or not.
921 (b) An on-premise beer retailer license has no monetary value for the purpose of any type
922 of disposition.

Legislative Review Note
as of 10-4-01 2:54 PM


This legislation modifies the warning that is required to be posted in a prominent location when
alcoholic beverages are being provided. If determined to be speech that government requires a
person to express, any legislation modifying this warning or a posting requirement may raise issues
of free speech under the First Amendment. If viewed as a subsidy of government speech, courts
look to factors such as whether a person is compelled to express views the person disfavors or to
express political or ideological views, whether the regulation of speech is part of a larger
regulatory marketing scheme, and whether the speech is tied to mandatory participation in a group.
In examining the constitutionality of restrictions on commercial speech, courts generally assess
whether the speech is protected by the First Amendment, whether the state has a substantial
interest in the speech, whether the regulation advances the state's interest, and whether the
regulation is more extensive than is necessary to serve the state's interest.

Office of Legislative Research and General Counsel

Committee Note

The Transportation Interim Committee recommended this bill.