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First Substitute S.B. 153

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Fri, Feb 21, 2003 at 12:13 PM by rday. --> This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Mon, Feb 24, 2003 at 12:26 PM by rday. --> This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Mon, Feb 24, 2003 at 12:33 PM by rday. --> This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Mon, Feb 24, 2003 at 1:41 PM by rday. --> This document includes House Floor Amendments incorporated into the bill on Mon, Mar 3, 2003 at 5:12 PM by kholt. -->

Senator John L. Valentine proposes the following substitute bill:


             1     
ALCOHOLIC BEVERAGE AMENDMENTS

             2     
2003 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: John L. Valentine


             5      Ron Allen

             6      This act modifies the Alcoholic Beverage Title including technical changes. The act
             7      modifies definitions. The act modifies provisions related to the administration of the title
             8      by the Alcoholic Beverage Control Commission and the Department of Alcoholic
             9      Beverage Control. The act modifies provisions related to state stores. The act modifies
             10      provisions related to package agencies. The act modifies provisions related to restaurant
             11      liquor licenses and airport lounge liquor licenses. The act enacts provisions providing for
             12      limited restaurant licenses. The act enacts provisions providing for on-premise banquet
             13      licenses. The act modifies provisions related to private club licenses including the
             14      creation of classes of private club licenses. The act modifies provisions related to special
             15      use permits. The act amends provisions related to single event permits. The act modifies
             16      provisions related to manufacturing licenses, local industry representative licenses, and
             17      warehousing licenses. The act modifies provisions related to beer retail and wholesale
             18      licenses and enacts provisions providing for temporary special event beer permits. The
             19      act modifies provisions related to criminal offenses including restrictions on sales,
             20      purchase, possession, and consumption of alcoholic beverages or products; restrictions on
             21      operations; restrictions on advertising; restrictions on transportation and distribution of
             22      alcoholic beverages or products; and restrictions on trade practices. This act repeals
             23      provisions in the Sunset Act related to wine mark-ups. The act enacts the Nuisance
             24      Licensees Act. This act appropriates for fiscal year 2002-03 only, $325,900 from the
             25      Liquor Control Fund to the Department of Alcoholic Beverage Control and $62,000 from


            
Text Box

- 2 -
Senate 3rd Reading Amendments 2-24-2003 rd/po
26
     the General Fund to the Driver License Division of the Department of Public Safety.
             27      Subject to future budget constraints, as an ongoing appropriation, this act appropriates
             28      for fiscal year 2003-04, S [ $1,396,900 ] $1,596,900 s from the Liquor Control Fund to the
             28a      Department of
             29      Alcoholic Beverage Control and S [ $143,000 ] $311,000 s from the General Fund to the Liquor Law
             30      Enforcement Unit of the Department of Public Safety.
             30a      S THIS ACT CONTAINS A COORDINATION CLAUSE THAT INCLUDES, SUBJECT TO FUTURE BUDGET
             30b      CONSTRAINTS, AN ONGOING APPROPRIATION OF $1,000,000 FOR FISCAL YEAR 2003-04 FROM THE
             30c      LIQUOR CONTROL FUND. s
             31      This act affects sections of Utah Code Annotated 1953 as follows:
             32      AMENDS:
             33          32A-1-102, as renumbered and amended by Chapter 23, Laws of Utah 1990
             34          32A-1-104, as renumbered and amended by Chapter 23, Laws of Utah 1990
             35          32A-1-105, as last amended by Chapter 161, Laws of Utah 2002
             36          32A-1-107, as last amended by Chapter 282, Laws of Utah 2002
             37          32A-1-109, as last amended by Chapter 20, Laws of Utah 1993
             38          32A-1-111, as renumbered and amended by Chapter 23, Laws of Utah 1990
             39          32A-1-113, as last amended by Chapter 1, Laws of Utah 2000
             40          32A-1-116, as renumbered and amended by Chapter 23, Laws of Utah 1990
             41          32A-1-119, as last amended by Chapter 79, Laws of Utah 1996
             42          32A-1-122, as last amended by Chapter 24, Laws of Utah 1995
             43          32A-1-123, as enacted by Chapter 132, Laws of Utah 1991
             44          32A-1-401, as last amended by Chapter 8, Laws of Utah 2002, Fifth Special Session
             45          32A-2-101, as last amended by Chapter 132, Laws of Utah 1991
             46          32A-2-103, as last amended by Chapter 282, Laws of Utah 2002
             47          32A-3-101, as last amended by Chapter 354, Laws of Utah 2001
             48          32A-3-102, as last amended by Chapter 1, Laws of Utah 2000
             49          32A-3-103, as last amended by Chapter 132, Laws of Utah 1991
             50          32A-3-106, as last amended by Chapter 282, Laws of Utah 2002
             51          32A-3-108, as renumbered and amended by Chapter 23, Laws of Utah 1990
             52          32A-4-101, as last amended by Chapter 87, Laws of Utah 2002
             53          32A-4-102, as last amended by Chapters 1 and 197, Laws of Utah 2000
             54          32A-4-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
             55          32A-4-105, as last amended by Chapter 132, Laws of Utah 1991


             56          32A-4-106, as last amended by Chapter 282, Laws of Utah 2002


             57          32A-4-201, as last amended by Chapter 19, Laws of Utah 1993
             58          32A-4-202, as last amended by Chapters 1 and 197, Laws of Utah 2000
             59          32A-4-203, as enacted by Chapter 23, Laws of Utah 1990
             60          32A-4-206, as last amended by Chapter 282, Laws of Utah 2002
             61          32A-5-101, as last amended by Chapter 132, Laws of Utah 1991
             62          32A-5-102, as last amended by Chapters 1 and 197, Laws of Utah 2000
             63          32A-5-103, as last amended by Chapter 30, Laws of Utah 1992
             64          32A-5-104, as renumbered and amended by Chapter 23, Laws of Utah 1990
             65          32A-5-107, as last amended by Chapter 282, Laws of Utah 2002
             66          32A-6-102, as last amended by Chapter 132, Laws of Utah 1991
             67          32A-6-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
             68          32A-6-105, as renumbered and amended by Chapter 23, Laws of Utah 1990
             69          32A-6-201, as renumbered and amended by Chapter 23, Laws of Utah 1990
             70          32A-6-202, as last amended by Chapter 282, Laws of Utah 2002
             71          32A-6-301, as renumbered and amended by Chapter 23, Laws of Utah 1990
             72          32A-6-401, as renumbered and amended by Chapter 23, Laws of Utah 1990
             73          32A-6-501, as renumbered and amended by Chapter 23, Laws of Utah 1990
             74          32A-7-101, as last amended by Chapter 88, Laws of Utah 1994
             75          32A-7-102, as last amended by Chapter 1, Laws of Utah 2000
             76          32A-7-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
             77          32A-7-104, as renumbered and amended by Chapter 23, Laws of Utah 1990
             78          32A-7-106, as last amended by Chapter 127, Laws of Utah 1998
             79          32A-8-101, as last amended by Chapters 77 and 88, Laws of Utah 1994
             80          32A-8-102, as last amended by Chapter 1, Laws of Utah 2000
             81          32A-8-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
             82          32A-8-106, as last amended by Chapter 1, Laws of Utah 2000
             83          32A-8-501, as enacted by Chapter 20, Laws of Utah 1993
             84          32A-8-502, as last amended by Chapter 1, Laws of Utah 2000
             85          32A-8-503, as enacted by Chapter 20, Laws of Utah 1993
             86          32A-8-505, as last amended by Chapter 1, Laws of Utah 2000
             87          32A-9-102, as last amended by Chapter 1, Laws of Utah 2000


             88          32A-9-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
             89          32A-9-106, as last amended by Chapter 1, Laws of Utah 2000
             90          32A-10-101, as last amended by Chapter 132, Laws of Utah 1991
             91          32A-10-102, as last amended by Chapters 77 and 88, Laws of Utah 1994
             92          32A-10-201, as last amended by Chapter 87, Laws of Utah 2002
             93          32A-10-202, as last amended by Chapters 1 and 197, Laws of Utah 2000
             94          32A-10-203, as enacted by Chapter 23, Laws of Utah 1990
             95          32A-10-205, as enacted by Chapter 23, Laws of Utah 1990
             96          32A-10-206, as last amended by Chapter 282, Laws of Utah 2002
             97          32A-11-101, as last amended by Chapters 77 and 88, Laws of Utah 1994
             98          32A-11-102, as last amended by Chapter 1, Laws of Utah 2000
             99          32A-11-103, as last amended by Chapter 88, Laws of Utah 1994
             100          32A-11-106, as last amended by Chapter 1, Laws of Utah 2000
             101          32A-11a-106, as enacted by Chapter 328, Laws of Utah 1998
             102          32A-12-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
             103          32A-12-105, as renumbered and amended by Chapter 23, Laws of Utah 1990
             104          32A-12-201, as last amended by Chapter 20, Laws of Utah 1993
             105          32A-12-203, as last amended by Chapter 20, Laws of Utah 1995
             106          32A-12-204, as renumbered and amended by Chapter 23, Laws of Utah 1990
             107          32A-12-207, as renumbered and amended by Chapter 23, Laws of Utah 1990
             108          32A-12-209, as last amended by Chapter 365, Laws of Utah 1997
             109          32A-12-210, as renumbered and amended by Chapter 23, Laws of Utah 1990
             110          32A-12-212, as last amended by Chapter 132, Laws of Utah 1991
             111          32A-12-213, as last amended by Chapter 141, Laws of Utah 1998
             112          32A-12-215, as last amended by Chapter 241, Laws of Utah 1991
             113          32A-12-216, as renumbered and amended by Chapter 23, Laws of Utah 1990
             114          32A-12-218, as renumbered and amended by Chapter 23, Laws of Utah 1990
             115          32A-12-301, as last amended by Chapter 241, Laws of Utah 1991
             116          32A-12-305, as last amended by Chapter 1, Laws of Utah 2000
             117          32A-12-306, as last amended by Chapter 1, Laws of Utah 2000
             118          32A-12-307, as last amended by Chapter 1, Laws of Utah 2000


             119          32A-12-308, as last amended by Chapter 1, Laws of Utah 2000
             120          32A-12-401, as last amended by Chapter 132, Laws of Utah 1991
             121          32A-12-501, as last amended by Chapter 141, Laws of Utah 1998
             122          32A-12-504, as last amended by Chapter 170, Laws of Utah 1996
             123          32A-12-505, as renumbered and amended by Chapter 23, Laws of Utah 1990
             124          32A-12-601, as enacted by Chapter 20, Laws of Utah 1993
             125          32A-12-602, as enacted by Chapter 20, Laws of Utah 1993
             126          32A-12-603, as last amended by Chapter 141, Laws of Utah 1998
             127          32A-12-604, as last amended by Chapter 88, Laws of Utah 1994
             128          32A-12-605, as last amended by Chapter 88, Laws of Utah 1994
             129          32A-12-606, as enacted by Chapter 20, Laws of Utah 1993
             130      ENACTS:
             131          32A-4-301, Utah Code Annotated 1953
             132          32A-4-302, Utah Code Annotated 1953
             133          32A-4-303, Utah Code Annotated 1953
             134          32A-4-304, Utah Code Annotated 1953
             135          32A-4-305, Utah Code Annotated 1953
             136          32A-4-306, Utah Code Annotated 1953
             137          32A-4-307, Utah Code Annotated 1953
             138          32A-4-401, Utah Code Annotated 1953
             139          32A-4-402, Utah Code Annotated 1953
             140          32A-4-403, Utah Code Annotated 1953
             141          32A-4-404, Utah Code Annotated 1953
             142          32A-4-405, Utah Code Annotated 1953
             143          32A-4-406, Utah Code Annotated 1953
             144          32A-4-407, Utah Code Annotated 1953
             145          32A-6-502, Utah Code Annotated 1953
             146          32A-6-503, Utah Code Annotated 1953
             147          32A-6-603, Utah Code Annotated 1953
             148          32A-10-301, Utah Code Annotated 1953
             149          32A-10-302, Utah Code Annotated 1953


             150          32A-10-303, Utah Code Annotated 1953
             151          32A-10-304, Utah Code Annotated 1953
             152          32A-10-305, Utah Code Annotated 1953
             153          32A-10-306, Utah Code Annotated 1953
             154          32A-12-222, Utah Code Annotated 1953
             155          32A-15a-101, Utah Code Annotated 1953
             156          32A-15a-102, Utah Code Annotated 1953
             157          32A-15a-103, Utah Code Annotated 1953
             158          32A-15a-201, Utah Code Annotated 1953
             159          32A-15a-202, Utah Code Annotated 1953
             160          32A-15a-203, Utah Code Annotated 1953
             161          63-55b-132, Utah Code Annotated 1953
             162      REPEALS:
             163          32A-1-501, as enacted by Chapter 20, Laws of Utah 1993
             164          32A-1-502, as enacted by Chapter 20, Laws of Utah 1993
             165          32A-1-503, as enacted by Chapter 20, Laws of Utah 1993
             166          32A-1-504, as last amended by Chapter 1, Laws of Utah 2000
             167          32A-4-107, as renumbered and amended by Chapter 23, Laws of Utah 1990
             168          32A-4-207, as enacted by Chapter 23, Laws of Utah 1990
             169          32A-5-105, as last amended by Chapters 132 and 241, Laws of Utah 1991
             170          32A-5-108, as renumbered and amended by Chapter 23, Laws of Utah 1990
             171          32A-12-309, as last amended by Chapter 241, Laws of Utah 1991
             172          32A-12-503, as renumbered and amended by Chapter 23, Laws of Utah 1990
             173          63-55-232, as last amended by Chapter 175, Laws of Utah 1998
             174      Be it enacted by the Legislature of the state of Utah:
             175          Section 131. Section 32A-1-102 is amended to read:
             176           32A-1-102. Application of title.
             177          [(1) Each license or permit issued by the former liquor control commission before July
             178      1, 1985, shall continue in effect until either revoked by the commission for a violation of this
             179      title, or voluntarily relinquished by the licensee or permittee.]
             180          [(2) Each violation or offense committed before July 1, 1985, shall be governed by the


             181      law, statutory and nonstatutory, existing when the violation of the title was committed. A
             182      defense or limitation on punishment under this title shall be available to any defendant tried or
             183      retried after July 1, 1985. If any of the elements of the offense occurred before July 1, 1985,
             184      the offense is considered committed before July 1, 1985.]
             185          [(3) The provisions of this] (1) This title [govern] governs alcoholic beverage control
             186      in this state except where local authorities are expressly granted regulatory control by this title.
             187          (2) Nothing in this title precludes local authorities from regulating the sale, storage,
             188      service, or consumption of alcoholic beverages if [such] that regulation does not conflict with
             189      the provisions of this title.
             190          Section 132. Section 32A-1-104 is amended to read:
             191           32A-1-104. Policy.
             192          The policies of the state are:
             193          (1) The administration of this title shall be nonpartisan and free of partisan political
             194      influence.
             195          (2) Alcoholic beverage control shall be operated as a public business using sound
             196      management principles and practices. The business shall be governed by a commission and
             197      operated by a department. The business shall function with the intent of servicing the public
             198      demand for alcoholic beverages.
             199          (3) The commission and department may not promote or encourage the sale or
             200      consumption of alcoholic beverages.
             201          (4) The commission shall conduct, license, and regulate the sale of alcoholic beverages
             202      in a manner and at prices that:
             203          (a) reasonably satisfy the public demand and protect the public interest, including the
             204      rights of citizens who do not wish to be involved with alcoholic products[.]; and
             205          (b) will promote the reduction of the harmful effects of over consumption of alcoholic
             206      beverages by adults and consumption of alcoholic beverages by minors.
             207          Section 133. Section 32A-1-105 is amended to read:
             208           32A-1-105. Definitions.
             209          As used in this title:
             210          (1) "Airport lounge" means a place of business licensed to sell alcoholic beverages, at
             211      retail, for consumption on its premises located at an international airport with a United States


             212      Customs office on its premises.
             213          (2) "Alcoholic beverages" means "beer" and "liquor" as the terms are defined in this
             214      section.
             215          (3) (a) "Alcoholic products" means all products that contain at least 63/100 of 1% of
             216      alcohol by volume or at least 1/2 of 1% by weight, and are obtained by fermentation, infusion,
             217      decoction, brewing, distillation, or any other process that uses any liquid or combinations of
             218      liquids, whether drinkable or not, to create alcohol in an amount greater than the amount
             219      prescribed in this Subsection (3)(a).
             220          (b) "Alcoholic products" does not include common extracts, vinegars, ciders, essences,
             221      tinctures, food preparations, or over-the-counter drugs and medicines that otherwise come
             222      within this definition.
             223          (4) "Banquet" means an event:
             224          (a) for which there is a contract:
             225          (i) between any person and a person listed in Subsection (4)(b); and
             226          (ii) under which a person listed in Subsection (4)(b) is required to provide alcoholic
             227      beverages at the event;
             228          (b) held at one or more designated locations approved by the commission in or on the
             229      premises of a:
             230          (i) hotel;
             231          (ii) resort facility;
             232          (iii) sports center; or
             233          (iv) convention center; and
             234          (c) at which food and alcoholic beverages may be sold and served.
             235          (5) "Bar" means a counter or similar structure:
             236          (a) at which alcoholic beverages are:
             237          (i) stored; or
             238          (ii) dispensed; or
             239          (b) from which alcoholic beverages are served.
             240          [(4)] (6) (a) "Beer" means [all products that contain] any product that contains:
             241          (i) 63/100 of 1% of alcohol by volume or 1/2 of 1% of alcohol by weight, but not more
             242      than 4% of alcohol by volume or 3.2% by weight[,]; and [are]


             243          (ii) is obtained by fermentation, infusion, or decoction of any malted grain.
             244          (b) Beer may or may not contain hops or other vegetable products.
             245          (c) Beer includes [products] a product that:
             246          (i) contains alcohol in the percentages described in Subsection (6)(a); and
             247          (ii) is referred to as:
             248          (A) malt liquor[,];
             249          (B) malted beverages[,]; or
             250          (C) malt coolers.
             251          [(5)] (7) (a) "Beer retailer" means any business establishment that is:
             252          (i) engaged, primarily or incidentally, in the retail sale [or distribution] of beer to
             253      public patrons, whether for consumption on or off the establishment's premises[,]; and [that is]
             254          (ii) licensed to sell beer by:
             255          (A) the commission[, by];
             256          (B) a local authority[,]; or
             257          (C) both the commission and a local authority.
             258          (b) (i) "On-premise beer retailer" means any beer retailer engaged, primarily or
             259      incidentally, in the sale [or distribution] of beer to public patrons for consumption on the beer
             260      retailer's premises.
             261          (ii) "On-premise beer retailer" includes [taverns] a tavern.
             262          [(c) (i) "Tavern" means any business establishment engaged primarily in the retail sale
             263      or distribution of beer to public patrons for consumption on the establishment's premises, and
             264      that is licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.]
             265          [(ii) "Tavern" includes a beer bar, parlor, lounge, cabaret, and night club where the
             266      revenue from the sale of beer exceeds the revenue of the sale of food, although food need not
             267      be sold in the establishment.]
             268          [(6)] (8) "Billboard" means any public display used to advertise including:
             269          (a) a light device[,];
             270          (b) a painting[,];
             271          (c) a drawing[,];
             272          (d) a poster[,];
             273          (e) a sign[,];


             274          (f) a signboard[,]; or
             275          (g) a scoreboard[, or other similar public display used to advertise, but does not
             276      include:].
             277          [(a) displays on beer delivery vehicles if the displays do not overtly promote the
             278      consumption of alcoholic beverages;]
             279          [(b) displays in taverns and private clubs, if the displays are not visible to persons
             280      off-premises;]
             281          [(c) point-of-sale displays, other than light devices, in retail establishments that sell
             282      beer for off-premise consumption, if the displays are not visible to persons off-premises;]
             283          [(d) private business signs on the premises of any business engaged primarily in the
             284      distribution of beer;]
             285          [(e) newspapers, magazines, circulars, programs, or other similar printed materials, if
             286      the materials are not directed primarily to minors;]
             287          [(f) menu boards in retail establishments that sell beer for on-premise consumption if
             288      the menu boards also contain food items;]
             289          [(g) handles on alcoholic beverage dispensing equipment that identify brands of
             290      products being dispensed; and]
             291          [(h) displays at the site of a temporary special event for which a single event liquor
             292      permit has been obtained from the commission or a temporary special event beer permit has
             293      been obtained from a local authority to inform attendees of the location where alcoholic
             294      beverages are being dispensed.]
             295          [(7)] (9) "Brewer" means any person engaged in manufacturing beer[, malt liquor, or
             296      malted beverages].
             297          (10) "Cash bar" means the service of alcoholic beverages:
             298          (a) at:
             299          (i) a banquet; or
             300          (ii) a temporary event for which a permit is issued under this title; and
             301          (b) if an attendee at the banquet or special event is charged for the alcoholic beverage.
             302          [(8)] (11) "Chartered bus" means a passenger bus, coach, or other motor vehicle
             303      provided by a bus company to a group of persons pursuant to a common purpose, under a
             304      single contract, and at a fixed charge in accordance with the bus company's tariff, for the


             305      purpose of giving the group of persons the exclusive use of the bus and a driver to travel
             306      together to a specified destination or destinations.
             307          [(9)] (12) "Church" means a building:
             308          (a) set apart [primarily] for the purpose of worship;
             309          (b) in which religious services are held;
             310          (c) with which clergy is associated; and
             311          [(d) the main body of which is kept for that use and not put to any other use
             312      inconsistent with its primary purpose; and]
             313          [(e)] (d) which is tax exempt under the laws of this state.
             314          [(10)] (13) "Club" and "private club" means [any nonprofit corporation operating as a
             315      social club, recreational, fraternal, or athletic association, or kindred association] any of the
             316      following organized primarily for the benefit of its [stockholders or] members[.]:
             317          (a) a social club;
             318          (b) a recreational association;
             319          (c) a fraternal association;
             320          (d) an athletic association; or
             321          (e) a kindred association.
             322          [(11)] (14) "Commission" means the Alcoholic Beverage Control Commission.
             323          [(12) "Cork-finished wine" means a container of wine stopped by a cork and finished
             324      by foil, lead, or other substance by the manufacturer.]
             325          (15) "Convention center" is as defined by rule by the commission.
             326          [(13)] (16) "Department" means the Department of Alcoholic Beverage Control.
             327          [(14)] (17) "Distressed merchandise" means any alcoholic beverage in the possession
             328      of the department that is saleable, but for some reason is unappealing to the public.
             329          [(15)] (18) "General food store" means any business establishment primarily engaged
             330      in selling food and grocery supplies to public patrons for off-premise consumption.
             331          [(16) "Governing body" means the board of not fewer than five shareholders or voting
             332      members of a private club who have been elected and authorized to control or conduct the
             333      business and affairs of that club.]
             334          [(17)] (19) "Guest" means a person accompanied by an active member or visitor of a
             335      club who enjoys only those privileges derived from the host for the duration of the visit to the


             336      club.
             337          [(18)] (20) (a) "Heavy beer" means [all products that contain] any product that:
             338          (i) contains more than 4% alcohol by volume; and
             339          (ii) is obtained by fermentation, infusion, or decoction of any malted grain.
             340          (b) "Heavy beer" is considered "liquor" for the purposes of this title.
             341          (21) "Hosted bar" means the service of alcoholic beverages:
             342          (a) without charge; and
             343          (b) at a:
             344          (i) banquet; or
             345          (ii) privately hosted event.
             346          (22) "Hotel" is as defined by rule by the commission.
             347          [(19)] (23) "Identification card" means the identification card issued under Title 53,
             348      Chapter 3, Part 8, Identification Card Act.
             349          [(20)] (24) "Interdicted person" means a person to whom the sale, gift, or provision of
             350      an alcoholic beverage is prohibited by:
             351          (a) law; or
             352          (b) court order.
             353          (25) "Intoxicated" means that to a degree that is unlawful under Section 76-9-701 a
             354      person is under the influence of:
             355          (a) an alcoholic beverage;
             356          (b) a controlled substance;
             357          (c) a substance having the property of releasing toxic vapors; or
             358          (d) a combination of Subsections (25)(a) through (c).
             359          [(21)] (26) "Licensee" means any person issued a license by the commission to sell,
             360      manufacture, store, or allow consumption of alcoholic beverages on premises owned or
             361      controlled by the person.
             362          [(22)] (27) "Limousine" means any motor vehicle licensed by the state or a local
             363      authority, other than a bus or taxicab:
             364          (a) in which the driver and passengers are separated by a partition, glass, or other
             365      barrier; and
             366          (b) that is provided by a company to an individual or individuals at a fixed charge in


             367      accordance with the company's tariff for the purpose of giving the individual or individuals the
             368      exclusive use of the limousine and a driver to travel to a specified destination or destinations.
             369          [(23)] (28) (a) "Liquor" means alcohol, or any alcoholic, [spiritous] spirituous, vinous,
             370      fermented, malt, or other liquid, or combination of liquids, a part of which is [spiritous]
             371      spirituous, vinous, or fermented, and all other drinks, or drinkable liquids that contain more
             372      than 1/2 of 1% of alcohol by volume and is suitable to use for beverage purposes.
             373          (b) "Liquor" does not include any beverage defined as a beer, malt liquor, or malted
             374      beverage that has an alcohol content of less than 4% alcohol by volume.
             375          [(24)] (29) "Local authority" means:
             376          (a) the [county legislative] governing body of the county if the premises are located in
             377      an unincorporated area of a county; or
             378          (b) the governing body of the city or town if the premises are located in an incorporated
             379      city or a town.
             380          [(25)] (30) "Manufacture" means to distill, brew, rectify, mix, compound, process,
             381      ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
             382      others.
             383          [(26)] (31) "Member" means a person who, after paying regular dues, has full
             384      privileges of a club under this title.
             385          [(27)] (32) "Minor" means any person under the age of 21 years.
             386          [(28)] (33) "Outlet" means a location other than a state store or package agency where
             387      alcoholic beverages are sold pursuant to a license issued by the commission.
             388          [(29)] (34) "Package" means any container, bottle, vessel, or other receptacle
             389      containing liquor.
             390          [(30)] (35) "Package agency" means a retail liquor location operated under a
             391      contractual agreement with the department, by a person other than the state, who is authorized
             392      by the commission to sell package liquor for consumption off the premises of the agency.
             393          [(31)] (36) "Package agent" means any person permitted by the commission to operate
             394      a package agency pursuant to a contractual agreement with the department to sell liquor from
             395      premises that the package agent shall provide and maintain.
             396          [(32)] (37) "Permittee" means any person issued a permit by the commission to
             397      perform acts or exercise privileges as specifically granted in the permit.


             398          [(33)] (38) "Person" means any individual, partnership, firm, corporation, limited
             399      liability company, association, business trust, or other form of business enterprise, including a
             400      receiver or trustee, and the plural as well as the singular number, unless the intent to give a
             401      more limited meaning is disclosed by the context.
             402          [(34)] (39) "Policy" means a statement of principles established by the commission to
             403      guide the administration of this title and the management of the affairs of the department.
             404          [(35)] (40) "Premises" means any building, enclosure, room, or equipment used in
             405      connection with the sale, storage, service, manufacture, distribution, or consumption of
             406      alcoholic products, unless otherwise defined in this title or in the rules adopted by the
             407      commission.
             408          [(36)] (41) "Prescription" means a writing in legal form, signed by a physician or
             409      dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
             410          [(37)] (42) (a) "Privately hosted event" or "private social function" means a specific
             411      social, business, or recreational event for which an entire room, area, or hall has been leased or
             412      rented, in advance by an identified group, and the event or function is limited in attendance to
             413      people who have been specifically designated and their guests.
             414          (b) "Privately hosted event" and "private social function" does not include events or
             415      functions to which the general public is invited, whether for an admission fee or not.
             416          [(38)] (43) "Proof of age" means:
             417          (a) an identification card;
             418          (b) an identification that:
             419          (i) is substantially similar to an identification card;
             420          (ii) is issued in accordance with the laws of a state other than Utah in which the
             421      identification is issued;
             422          (iii) includes date of birth; and
             423          (iv) has a picture affixed;
             424          (c) a valid driver license certificate that:
             425          (i) includes date of birth;
             426          (ii) has a picture affixed; and
             427          (iii) is issued:
             428          (A) under Title 53, Chapter 3, Uniform Driver License Act; or


             429          (B) in accordance with the laws of the state in which it is issued;
             430          (d) a military identification card that:
             431          (i) includes date of birth; and
             432          (ii) has a picture affixed; or
             433          (e) a valid passport.
             434          [(39)] (44) (a) "Public building" means any building or permanent structure owned or
             435      leased by the state, a county, or local government entity that is used for:
             436          (i) public education;
             437          (ii) transacting public business; or
             438          (iii) regularly conducting government activities.
             439          (b) "Public building" does not mean or refer to any building owned by the state or a
             440      county or local government entity when the building is used by anyone, in whole or in part, for
             441      proprietary functions.
             442          [(40)] (45) "Representative" means an individual who is compensated by salary,
             443      commission, or any other means for representing and selling the alcoholic beverage products of
             444      a manufacturer, supplier, or importer of liquor, wine, or heavy beer.
             445          [(41)] (46) "Residence" means the person's principal place of abode within Utah.
             446          (47) "Resort facility" is as defined by rule by the commission.
             447          [(42)] (48) "Restaurant" means any business establishment:
             448          (a) where a variety of foods is prepared and complete meals are served to the general
             449      public;
             450          (b) located on a premises having adequate culinary fixtures for food preparation and
             451      dining accommodations; and
             452          (c) that is engaged primarily in serving meals to the general public.
             453          [(43)] (49) "Retailer" means any person engaged in the sale or distribution of alcoholic
             454      beverages to the consumer.
             455          (50) "Room service" includes service of alcoholic beverages to a guest room of a:
             456          (a) hotel; or
             457          (b) resort facility.
             458          [(44)] (51) (a) (i) "Rule" means a general statement adopted by the commission:
             459          (A) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act;


             460      and
             461          (B) (I) to guide the activities of those regulated or employed by the department[,];
             462          (II) to implement or interpret this title[,]; or
             463          (III) to describe the organization, procedure, or practice requirements of the department
             464      in order to carry out the intent of the law and ensure its uniform application. [This definition]
             465          (ii) "Rule" includes any amendment or repeal of a prior rule.
             466          (b) "Rule" does not include a rule concerning only the internal management of the
             467      department that does not affect private rights or procedures available to the public, including
             468      intradepartmental memoranda.
             469          [(45)] (52) (a) "Sample" includes:
             470          (i) a department [samples] sample; and
             471          (ii) an industry representative [samples; and] sample.
             472          [(iii) department trade show samples.]
             473          (b) "Department sample" means liquor, wine, and heavy beer that has been placed in
             474      the possession of the department for testing, analysis, and sampling.
             475          [(c) "Department trade show sample" means liquor, wine, and heavy beer that has been
             476      placed in the possession of the department for use in a trade show conducted by the
             477      department.]
             478          [(d)] (c) "Industry representative sample" means liquor, wine, and heavy beer that has
             479      been placed in the possession of the department for testing, analysis, and sampling by local
             480      industry representatives on the premises of the department to educate themselves of the quality
             481      and characteristics of the product.
             482          [(e) "Retail licensee wine tasting" means cork-finished wine checked out under the
             483      procedures provided in Section 32A-12-603 :]
             484          [(i) to a local industry representative holding a license described in Section
             485      32A-8-501 ;]
             486          [(ii) to conduct the tasting of cork-finished wines to a retail licensee licensed to sell
             487      wine at retail for consumption on its premises; and]
             488          [(iii) for the purpose of disseminating information and educating the retail licensees
             489      described in Subsection (45)(e)(ii) as to the quality and characteristics of the cork-finished
             490      wines.]


             491          [(46)] (53) (a) "School" means any building used primarily for the general education of
             492      minors.
             493          (b) "School" does not include:
             494          (i) a nursery [schools,] school;
             495          (ii) an infant day care [centers,] center; or
             496          (iii) a trade or technical [schools] school.
             497          [(47)] (54) "Sell," "sale," and "to sell" means any transaction, exchange, or barter
             498      whereby, for any consideration, an alcoholic beverage is either directly or indirectly transferred,
             499      solicited, ordered, delivered for value, or by any means or under any pretext is promised or
             500      obtained, whether done by a person as a principal, proprietor, or as an agent, servant, or
             501      employee, unless otherwise defined in this title or the rules made by the commission.
             502          [(48)] (55) "Small brewer" means a brewer who manufactures less than 60,000 barrels
             503      of beer and heavy beer per year.
             504          (56) (a) "Spirituous liquor" means liquor that is distilled.
             505          (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
             506      U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
             507          (57) "Sports center" is as defined by rule by the commission.
             508          [(49)] (58) (a) "State label" means the official label designated by the commission
             509      affixed to all liquor containers sold in the state.
             510          (b) "State label" includes the department identification mark and inventory control
             511      number.
             512          [(50)] (59) (a) "State store" means a facility for the sale of package liquor:
             513          (i) located on premises owned or leased by the state; and
             514          (ii) operated by state employees.
             515          (b) "State store" does not apply to any:
             516          (i) licensee[,];
             517          (ii) permittee[,]; or [to]
             518          (iii) package [agencies] agency.
             519          [(51)] (60) "Supplier" means any person selling alcoholic beverages to the department.
             520          (61) (a) "Tavern" means any business establishment that is:
             521          (i) engaged primarily in the retail sale of beer to public patrons for consumption on the


             522      establishment's premises; and
             523          (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
             524          (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
             525      revenue of the sale of food, although food need not be sold in the establishment:
             526          (i) a beer bar;
             527          (ii) a parlor;
             528          (iii) a lounge;
             529          (iv) a cabaret; or
             530          (v) a nightclub.
             531          [(52)] (62) "Temporary domicile" means the principal place of abode within Utah of a
             532      person who does not have a present intention to continue residency within Utah permanently or
             533      indefinitely.
             534          [(53)] (63) "Unsaleable liquor merchandise" means merchandise that:
             535          (a) is unsaleable because [it] the merchandise is unlabeled, leaky, damaged, difficult to
             536      open, or partly filled[, or];
             537          (b) is in a container:
             538          (i) having faded labels or defective caps or corks[, or];
             539          (ii) in which the contents are cloudy, spoiled, or chemically determined to be impure[,];
             540      or
             541          (iii) that contains:
             542          (A) sediment[,]; or
             543          (B) any foreign substance[,]; or
             544          (c) is otherwise considered by the department as unfit for sale.
             545          [(54)] (64) "Visitor" means [a person holding] an individual that in accordance with
             546      Section 32A-5-107 holds limited privileges in a private club by virtue of a visitor card
             547      [purchased from the club and authorized by a sponsoring member of the club].
             548          [(55)] (65) "Warehouser" means any person, other than a licensed manufacturer,
             549      engaged in the importation for sale, storage, or distribution of liquor regardless of amount.
             550          [(56)] (66) "Wholesaler" means any person engaged in the importation for sale, or in
             551      the sale of beer in wholesale or jobbing quantities to retailers, other than a small brewer selling
             552      beer manufactured by that brewer.


             553          [(57)] (67) (a) "Wine" means any alcoholic beverage obtained by the fermentation of
             554      the natural sugar content of fruits, plants, honey, or milk, or any other like substance, whether
             555      or not other ingredients are added.
             556          (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
             557      provided in this title.
             558          Section 134. Section 32A-1-107 is amended to read:
             559           32A-1-107. Powers and duties of the commission.
             560          (1) The commission shall:
             561          (a) act as a general policymaking body on the subject of alcoholic product control;
             562          (b) adopt and issue policies, directives, rules, and procedures;
             563          (c) set policy by written rules that establish criteria and procedures for:
             564          (i) granting, denying, suspending, or revoking permits, licenses, and package agencies;
             565          (ii) controlling liquor merchandise inventory including:
             566          (A) listing and delisting products;
             567          (B) the procedures for testing new products;
             568          (C) purchasing policy;
             569          (D) turnover requirements for regularly coded products to be continued; and
             570          (E) the disposition of discontinued, distressed, or unsaleable merchandise; and
             571          (iii) determining the location of state stores, package agencies, and outlets; [and]
             572          [(iv) department trade shows;]
             573          (d) decide within the limits and under the conditions imposed by this title, the number
             574      and location of state stores, package agencies, and outlets established in the state;
             575          (e) issue, grant, deny, suspend, [or] revoke, or not review the following permits,
             576      licenses, and package agencies for the purchase, sale, storage, service, manufacture,
             577      distribution, and consumption of alcoholic products:
             578          (i) package agencies;
             579          (ii) restaurant licenses;
             580          (iii) airport lounge licenses;
             581          (iv) limited restaurant licenses;
             582          (v) beginning on July 1, 2003 and ending June 30, 2005, on-premise banquet licenses;
             583          [(iv)] (vi) private club licenses;


             584          [(v)] (vii) on-premise beer retailer licenses;
             585          (viii) temporary special event beer permits;
             586          [(vi)] (ix) special use permits;
             587          [(vii)] (x) single event permits;
             588          [(viii)] (xi) manufacturing licenses;
             589          [(ix)] (xii) liquor warehousing licenses; and
             590          [(x)] (xiii) beer wholesaling licenses;
             591          (f) fix prices at which liquors are sold that are the same at all state stores, package
             592      agencies, and outlets;
             593          (g) issue and distribute price lists showing the price to be paid by purchasers for each
             594      class, variety, or brand of liquor kept for sale by the department;
             595          (h) require the director to follow sound management principles and require periodic
             596      reporting from the director to ensure that these principles are being followed and that policies
             597      established by the commission are being observed;
             598          (i) receive, consider, and act in a timely manner upon all reports, recommendations,
             599      and matters submitted by the director to the commission, and do all things necessary to support
             600      the department in properly performing its duties and responsibilities;
             601          (j) obtain temporarily and for special purposes the services of experts and persons
             602      engaged in the practice of a profession or who possess any needed skills, talents, or abilities if
             603      considered expedient and if approved by the governor;
             604          (k) prescribe the duties of departmental officials authorized to issue permits and
             605      licenses [and to conduct trade shows] under this title;
             606          (l) prescribe, consistent with this title, the fees payable for permits, licenses, and
             607      package agencies issued under this title, or for anything done or permitted to be done under this
             608      title;
             609          (m) prescribe the conduct, management, and equipment of any premises upon which
             610      alcoholic beverages may be sold, consumed, served, or stored;
             611          (n) make rules governing the credit terms of beer sales to retailers within the state; and
             612          (o) require that each state store, package agency, licensee, and permittee, where
             613      required in this title, display in a prominent place a sign in large letters stating: "Warning:
             614      Driving under the influence of alcohol or drugs is a serious crime that is prosecuted


             615      aggressively in Utah."
             616          (2) The power of the commission to establish state stores, to create package agencies
             617      and grant authority to operate package agencies, and to grant or deny licenses and permits is
             618      plenary, except as otherwise provided by this title, and is not subject to review.
             619          (3) The commission may appoint qualified hearing officers to conduct any suspension
             620      or revocation hearings required by law.
             621          (4) (a) In any case where the commission is given the power to suspend any license or
             622      permit, it may impose a fine in addition to or in lieu of suspension. Fines imposed may not
             623      exceed $25,000 in the aggregate for any single Notice of Agency Action.
             624          (b) The commission shall promulgate, by rule, a schedule setting forth a range of fines
             625      for each violation.
             626          Section 135. Section 32A-1-109 is amended to read:
             627           32A-1-109. Powers and duties of the director.
             628          Subject to the powers and responsibilities vested in the commission by this title the
             629      director shall:
             630          (1) prepare and propose to the commission general policies, directives, rules, and
             631      procedures governing the administrative activities of the department and may submit other
             632      recommendations to the commission as the director considers in the interest of its or the
             633      department's business;
             634          (2) within the general policies, directives, rules, and procedures of the commission,
             635      provide day-to-day direction, coordination, and delegation of responsibilities in the
             636      administrative activities of the department's business and promulgate internal department
             637      policies, directives, rules, and procedures relating to department personnel matters, and the
             638      day-to-day operation of the department;
             639          (3) appoint or employ personnel as considered necessary in the administration of this
             640      title and prescribe the conditions of their employment, define their respective duties and
             641      powers, fix their remuneration in accordance with Title 67, Chapter 19, Utah State Personnel
             642      Management Act, and designate those employees required to give bonds and specify the bond
             643      amounts;
             644          (4) establish and secure adherence to a system of reports, controls, and performance in
             645      all matters relating to personnel, security, department property management, and operation of


             646      department offices, warehouses, state stores, package agencies, and licensees;
             647          (5) within the policies, directives, rules, and procedures approved by the commission
             648      and provisions of law, buy, import, keep for sale, sell and control the sale, storage, service,
             649      transportation, and delivery of alcoholic products;
             650          (6) prepare for commission approval:
             651          (a) recommendations regarding the location, establishment, relocation, and closure of
             652      state stores and package agencies;
             653          (b) recommendations regarding the issuance, suspension, nonrenewal, and revocation
             654      of licenses and permits;
             655          (c) annual budgets, proposed legislation, and reports as required by law and sound
             656      business principles;
             657          (d) plans for reorganizing divisions of the department and their functions;
             658          (e) manuals containing all commission and department policies, directives, rules, and
             659      procedures;
             660          (f) an inventory control system;
             661          (g) any other reports and recommendations as may be requested by the commission;
             662          (h) rules governing the credit terms of beer sales to beer retailer licensees;
             663          (i) rules governing the calibration, maintenance, and regulation of calibrated metered
             664      dispensing systems;
             665          (j) rules governing the posting of a list of types and brand names of liquor being served
             666      through calibrated metered dispensing systems;
             667          (k) price lists issued and distributed showing the price to be paid for each class, variety,
             668      or brand of liquor kept for sale at state stores, package agencies, and outlets;
             669          (l) directives prescribing the books of account kept by the department and by state
             670      stores, package agencies, and outlets;
             671          (m) an official state label and the manner in which the label shall be affixed to every
             672      package of liquor sold under this title; and
             673          (n) a policy prescribing the manner of giving and serving notices required by this title
             674      or rules made under this title; [and]
             675          [(o) rules governing department trade shows;]
             676          (7) make available through the department to any person, upon request, a copy of any


             677      policy or directive promulgated by the director;
             678          (8) adopt internal departmental policies, directives, rules, and procedures relating to
             679      department personnel matters and the day-to-day operation of the department that are
             680      consistent with those of the commission;
             681          (9) keep a current copy of the manuals containing the rules and policies of the
             682      department and commission available for public inspection; [and]
             683          (10) (a) after consultation with the governor, determine whether alcoholic products
             684      should not be sold, offered for sale, or otherwise furnished in an area of the state during a
             685      period of emergency that is proclaimed by the governor to exist in that area; and
             686          (b) issue any necessary public announcements and directives with respect to the
             687      determination described in Subsection (10)(a); and
             688          [(10)] (11) perform other duties required by the commission and by law.
             689          Section 136. Section 32A-1-111 is amended to read:
             690           32A-1-111. Department employees -- Requirements.
             691          (1) (a) The commission may prescribe by policy, directive, or rule the qualifications of
             692      persons employed by the department, subject to this title.
             693          (b) A person may not obtain employment with the department [who] if that person has
             694      been convicted of:
             695          [(a) convicted of] (i) a felony under any federal or state law;
             696          [(b) convicted of] (ii) any violation of any federal or state law or local ordinance
             697      concerning the sale, manufacture, distribution, warehousing, adulteration, or transportation of
             698      alcoholic beverages; [or]
             699          [(c) convicted of] (iii) any crime involving moral turpitude[.]; or
             700          (iv) on two or more occasions within the five years before the day on which the
             701      employee is hired by the department, driving under the influence of alcohol, any drug, or the
             702      combined influence of alcohol and any drug.
             703          (2) [If any employee of the department is convicted of any offense as provided in
             704      Subsection (1), the] The director may terminate [the] an employee or take other disciplinary
             705      action consistent with Title 67, Chapter 19, [the] Utah State Personnel Management Act[.] if
             706      after the day on which the employee is hired by the department, the employee of the
             707      department:


             708          (a) is found to have been convicted of any offense described in Subsection (1)(b)
             709      before being hired by the department; or
             710          (b) on or after the day on which the employee is hired:
             711          (i) is convicted of an offense described in Subsection (1)(b)(i), (ii), or (iii); or
             712          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the
             713      combined influence of alcohol and any drug; and
             714          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             715      influence of alcohol and any drug within five years before the day on which the person is
             716      convicted of the offense described in Subsection (2)(b)(ii)(A).
             717          (3) The director may immediately suspend an employee of the department for the
             718      period during which the criminal matter is being adjudicated if the employee:
             719          (a) is arrested on a charge for an offense described in Subsection (1)(b)(i), (ii), or (iii);
             720      or
             721          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             722      any drug, or the combined influence of alcohol and any drug; and
             723          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             724      influence of alcohol and any drug within five years before the day on which the person is
             725      arrested on a charge described in Subsection (3)(b)(i).
             726          [(3)] (4) (a) A person who seeks employment with the department shall file with the
             727      department an application under oath or affirmation in a form prescribed by the commission.
             728          (b) The commission may not require information designating the color, race, or creed
             729      of [the] an applicant.
             730          (c) Upon receiving an application the department shall determine whether the applicant
             731      is:
             732          (i) of good moral character; and [is]
             733          (ii) qualified for the position sought.
             734          (d) The selection of applicants for employment or advancement with the department
             735      shall be in accordance with Title 67, Chapter 19, [the] Utah State Personnel Management Act.
             736          [(4) A package agent or licensee or any employee of a package agent or a licensee is]
             737          (5) The following are not considered an employee of the department[.]:
             738          (a) a package agent;


             739          (b) a licensee;
             740          (c) an employee of a package agent; or
             741          (d) an employee of a licensee.
             742          [(5) Minors] (6) A minor may not be employed by the department to:
             743          (a) work in:
             744          (i) any state liquor store; or
             745          (ii) departmental warehouse[,]; or [to]
             746          (b) engage in any activity involving the handling of alcoholic beverages.
             747          Section 137. Section 32A-1-113 is amended to read:
             748           32A-1-113. Department expenditures and revenues -- Liquor Control Fund --
             749      Exempt from Division of Finance -- Annual audits.
             750          (1) (a) All money received by the department in the administration of this title, except
             751      as otherwise provided, together with all property acquired, administered, possessed, or received
             752      by the department, is the property of the state. Money received in the administration of this
             753      title shall be paid to the department and transferred into the state treasury to the credit of the
             754      Liquor Control Fund.
             755          (b) All expenses, debts, and liabilities incurred by the department in connection with
             756      the administration of this title shall be paid from the Liquor Control Fund.
             757          (c) The fiscal officers of the department shall transfer annually from the Liquor Control
             758      Fund to the General Fund a sum equal to the amount of net profit earned from the sale of liquor
             759      since the preceding transfer of funds. The transfer shall be made within 90 days of the end of
             760      the department's fiscal year on June 30.
             761          (2) (a) Deposits made by the department shall be made to banks designated as state
             762      depositories and reported to the state treasurer at the end of each day.
             763          (b) Any member of the commission and any employee of the department is not
             764      personally liable for any loss caused by the default or failure of depositories.
             765          (c) All funds deposited in any bank or trust company are entitled to the same priority of
             766      payment as other public funds of the state.
             767          (3) All expenditures necessary for the administration of this title, including the
             768      payment of all salaries, premiums, if any, on bonds of the commissioners, the director, and the
             769      department staff in all cases where bonds are required, and all other expenditures incurred in


             770      establishing, operating, and maintaining state stores and package agencies and in the
             771      administration of this title, shall be paid by warrants drawn on the state treasurer paid out of the
             772      Liquor Control Fund.
             773          (4) If the cash balance of the Liquor Control Fund is not adequate to cover the warrants
             774      drawn against it by the state treasurer, the cash resources of the General Fund may be utilized
             775      to the extent necessary. However, at no time may the fund equity of the Liquor Control Fund
             776      fall below zero.
             777          (5) (a) When any check issued in payment of any fees or costs authorized or required
             778      by this title is returned to the department as dishonored[,]:
             779          (i) the department may assess a service charge in an amount set by commission rule
             780      against the person on whose behalf the check was tendered[.]; and
             781          (ii) if the check that is returned to the department is from a licensee, permittee, or
             782      package agent, it is grounds for:
             783          (A) the suspension or revocation of the license or permit; or
             784          (B) the suspension or termination of the operation of the package agency.
             785          (b) The revocation of a license or permit under this Subsection (5) is grounds for the
             786      forfeiture of the bond of the:
             787          (i) licensee; or
             788          (ii) permittee.
             789          (c) The termination of the operation of a package agency under this Subsection (5) is
             790      grounds for the forfeiture of the bond of the package agency.
             791          (6) The laws that govern the Division of Finance and prescribe the general powers and
             792      duties of the Division of Finance are not applicable to the Department of Alcoholic Beverage
             793      Control in the purchase and sale of alcoholic products.
             794          (7) The accounts of the department shall be audited annually by the state auditor or by
             795      any other person, firm, or corporation the state auditor appoints. The audit report shall be made
             796      to the state auditor, and copies submitted to members of the Legislature not later than January 1
             797      following the close of the fiscal year for which the report is made.
             798          Section 138. Section 32A-1-116 is amended to read:
             799           32A-1-116. Purchase of liquor.
             800          (1) [Beginning July 1, 1991, the] The department may not purchase or stock alcoholic


             801      beverages in containers smaller than 200 ml. except as otherwise allowed by the commission.
             802          (2) (a) Each order for the purchase of liquor or any cancellation of an order:
             803          (i) shall be executed in writing by the department; and
             804          (ii) is not valid or binding unless [so] executed in writing.
             805          (b) A [duplicate] copy of each order or cancellation shall be kept on file by the
             806      department for at least three years.
             807          Section 139. Section 32A-1-119 is amended to read:
             808           32A-1-119. Adjudicative proceedings -- Procedure.
             809          (1) (a) The commission, director, and department may conduct adjudicative
             810      proceedings to inquire into any matter necessary and proper for the administration of this title
             811      and rules adopted under this title.
             812          (b) The commission, director, and department shall comply with the procedures and
             813      requirements of Title 63, Chapter 46b, Administrative Procedures Act, in their adjudicative
             814      proceedings.
             815          (c) Except where otherwise provided by law, all adjudicative proceedings shall be
             816      conducted in accordance with Title 52, Chapter 4, Open and Public Meetings.
             817          (d) All adjudicative proceedings concerning departmental personnel shall be conducted
             818      in accordance with Title 67, Chapter 19, Utah State Personnel Management Act. All hearings
             819      that are informational, fact gathering, and nonadversarial in nature shall be conducted in
             820      accordance with rules, policies, and procedures promulgated by the commission, director, or
             821      department.
             822          (2) (a) Disciplinary proceedings shall be conducted under the authority of the
             823      commission, which is responsible for rendering a final decision and order on any disciplinary
             824      matter.
             825          (b) (i) Nothing in this section precludes the commission from appointing necessary
             826      officers, including hearing examiners, from within or without the department, to administer the
             827      disciplinary hearing process.
             828          (ii) Officers and examiners appointed by the commission may conduct hearings on
             829      behalf of the commission and submit findings of fact, conclusions of law, and
             830      recommendations to the commission.
             831          (3) [When] (a) The department may initiate a proceeding described in Subsection


             832      (3)(b) when the department [has on file] receives:
             833          (i) a report from any government agency, peace officer, examiner, or investigator
             834      alleging that a permittee or licensee or any [of its officers or employees] officer, employee, or
             835      agent of a permittee or licensee has violated this title or the rules of the commission[, the];
             836          (ii) a final adjudication of criminal liability against a permittee or licensee or any
             837      officer, employee, or agent of a permittee or licensee based on an alleged violation of this title;
             838      or
             839          (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
             840      Liability, against a permittee or licensee or any officer, employee, or agent of a permittee or
             841      licensee based on an alleged violation of this title.
             842          (b) The department may initiate disciplinary proceedings if the department receives an
             843      item listed in Subsection (3)(a) to determine:
             844          [(a)] (i) whether [or not] the permittee or licensee [is guilty of the violation] or any
             845      officer, employee, or agent of the permittee or licensee violated this title or rules of the
             846      commission; and
             847          [(b)] (ii) if a violation is found [guilty], the [penalty] appropriate sanction to be
             848      imposed.
             849          (c) For purposes of this Subsection (3), "final adjudication" means an adjudication for
             850      which a final unappealable judgment or order has been issued.
             851          (4) (a) [An] Unless waived by the respondent, an adjudicative proceeding shall be held:
             852          (i) if required by law[, and in all cases];
             853          (ii) before revoking or suspending any permit or license [or permit] issued under this
             854      title[, unless waived by the respondent]; or
             855          (iii) before imposing a fine against:
             856          (A) a permittee;
             857          (B) a licensee; or
             858          (C) any officer, employee, or agent of a permittee or licensee.
             859          (b) Inexcusable failure of a respondent to appear at a scheduled evidentiary hearing
             860      after receiving proper notice is an admission of the charged violation.
             861          (c) The validity of any hearing is not affected by the failure of any person to attend or
             862      remain in attendance.


             863          (d) All evidentiary hearings shall be presided over by the commission or an appointed
             864      hearing examiner.
             865          (e) A hearing may be closed only after the commission or hearing examiner makes a
             866      written finding that the public interest in an open hearing is clearly outweighed by factors
             867      enumerated in the closure order.
             868          (f) The commission or its hearing examiner may administer oaths or affirmations, take
             869      evidence, take depositions within or without this state, require by subpoena from any place
             870      within this state the testimony of any person at a hearing, and the production of any books,
             871      records, papers, contracts, agreements, documents, or other evidence considered relevant to the
             872      inquiry.
             873          (i) Persons subpoenaed shall testify and produce any books, papers, documents, or
             874      tangible things as required in the subpoena.
             875          (ii) Any witness subpoenaed or called to testify or produce evidence who claims a
             876      privilege against self-incrimination may not be compelled to testify, but the commission or the
             877      hearing examiner shall file a written report with the county attorney or district attorney in the
             878      jurisdiction where the privilege was claimed or where the witness resides setting forth the
             879      circumstance of the claimed privilege.
             880          (iii) A person is not excused from obeying a subpoena without just cause. Any district
             881      court within the judicial district in which a person alleged to be guilty of willful contempt of
             882      court or refusal to obey a subpoena is found or resides, upon application by the party issuing
             883      the subpoena, may issue an order requiring the person to appear before the issuing party, and to
             884      produce documentary evidence if so ordered, or to give evidence regarding the matter in
             885      question. Failure to obey an order of the court may be punished by the court as contempt.
             886          (g) In all cases heard by a hearing examiner, the hearing examiner shall prepare a
             887      report to the commission. The report may not recommend a penalty more severe than that
             888      initially sought by the department in the notice of violation. A copy of the report shall be
             889      served upon the respective parties, and the respondent shall be given reasonable opportunity to
             890      file any written objections to the report before final commission action.
             891          (h) In all cases heard by the commission, it shall issue its final decision and order.
             892          (5) (a) The commission shall render a decision and issue a written order on any
             893      disciplinary action, and serve a copy on all parties.


             894          (b) Any order of the commission is considered final on the date [it] the order becomes
             895      effective.
             896          (c) If the commission is satisfied that a permittee [or], licensee, or any officer,
             897      employee, or agent of a permittee or licensee has committed a violation of this title[,] or the
             898      commission's rules, [it] in accordance with Title 63, Chapter 46b, Administrative Procedures
             899      Act, the commission may [take emergency action suspending or revoking]:
             900          (i) suspend or revoke the permit or the license [according to the procedures and
             901      requirements of Title 63, Chapter 46b, Administrative Procedures Act, and];
             902          (ii) impose a fine against:
             903          (A) the permittee;
             904          (B) the licensee; or
             905          (C) any officer, employee, or agent of a permittee or licensee;
             906          (iii) assess the administrative costs of any hearing to the permittee or the licensee[.]; or
             907          (iv) any combination of Subsections (5)(c)(i) through (iii).
             908          (d) (i) A fine imposed in accordance with this Subsection (5) may not exceed $25,000
             909      in the aggregate for any single notice of agency action.
             910          (ii) The commission shall, by rule, establish a schedule of fines specifying the range of
             911      fines for each violation of this title or commission rules.
             912          (e) (i) If a permit or license is suspended under this Subsection (5), a sign provided by
             913      the department shall be prominently posted:
             914          (A) during the suspension;
             915          (B) by the permittee or licensee; and
             916          (C) at the entrance of the premises of the permittee or licensee.
             917          (ii) The sign required by this Subsection (5)(e) shall:
             918          (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
             919      alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be
             920      sold, served, furnished, or consumed on these premises during the period of suspension."; and
             921          (B) include the dates of the suspension period.
             922          (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
             923      to be posted under this Subsection (5)(e) during the suspension period.
             924          [(d)] (f) If the permit or license is revoked, the commission may order the revocation of


             925      any compliance bond posted by the permittee or licensee.
             926          [(e)] (g) Any permittee or licensee whose permit or license is revoked may not reapply
             927      for a permit or license under this title for three years from the date the permit or license was
             928      revoked.
             929          [(f)] (h) All costs assessed by the commission shall be transferred into the General
             930      Fund in accordance with Section 32A-1-113 .
             931          (6) (a) [The commission] In addition to any action taken against a permittee or licensee
             932      under this section, the department may [also] initiate disciplinary [actions] action against
             933      [employees] an officer, employee, or [agents] agent of [licensees] a permittee or licensee.
             934          (b) If any officer, employee, or agent is found to have violated this title, the
             935      commission may prohibit the officer, employee, or agent from serving, selling, distributing,
             936      manufacturing, wholesaling, warehousing, or handling alcoholic beverages in the course of
             937      employment with any permittee or licensee [licensed] under this title for a period determined
             938      by the commission.
             939          [(7) If any manufacturer, supplier, or importer of liquor, wine, or heavy beer or their
             940      employee, agent, or representative violates any provision of this title,]
             941          (7) (a) The department may initiate a disciplinary action for an alleged violation of this
             942      title or the rules of the commission against:
             943          (i) a manufacturer, supplier, or importer of alcoholic beverages; or
             944          (ii) an officer, employee, agent, or representative of a person listed in Subsection
             945      (7)(a)(i).
             946          (b) (i) If the commission makes the finding described in Subsection (7)(b)(ii), the
             947      commission may, in addition to other penalties prescribed by this title, order:
             948          (A) the removal of the manufacturer's, supplier's, or importer's products from the
             949      department's sales list; and
             950          (B) a suspension of the department's purchase of [those] the products described in
             951      Subsection (7)(b)(i)(A) for a period determined by the commission [if].
             952          (ii) The commission may take the action described in Subsection (7)(b)(i) if:
             953          (A) any manufacturer, supplier, or importer of liquor, wine, or heavy beer or its
             954      employee, agent, or representative violates any provision of this title; and
             955          (B) the manufacturer, supplier, or importer:


            
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956
         (I) directly committed the violation[,]; or
             957          (II) solicited, requested, commanded, encouraged, or intentionally aided another to
             958      engage in the violation.
             959          Section 140. Section 32A-1-122 is amended to read:
             960           32A-1-122. Liquor prices.
             961          (1) Except as provided in Subsections (2) and (3), all liquor sold within the state shall
             962      be marked up in an amount not less than [61%] h [ 64% ] 64.5% h above the cost to the department[,
             963      excluding federal excise taxes].
             964          (2) All liquor sold to military installations in Utah shall be marked up in an amount not
             965      less than 15% above the cost to the department[, excluding federal excise taxes].
             966          (3) [All wine sold in Utah by] If a wine manufacturer producing less than 20,000
             967      gallons of wine in any calendar year, as verified by the department pursuant to federal or other
             968      verifiable production reports, first applies to the department for a reduced markup, all wine
             969      sold in Utah by the wine manufacturer shall be marked up in an amount not less than 30%
             970      above the cost to the department[, excluding federal excise taxes, but only if the wine
             971      manufacturer first applies to the department for the 30% markup].
             972          (4) Nothing in this section prohibits the department from selling discontinued lines at a
             973      discount.    
             974          Section 141. Section 32A-1-123 is amended to read:
             975           32A-1-123. Licensee compliance with other laws.
             976          (1) Each applicant for a license and each licensee shall comply with all applicable
             977      federal and state laws pertaining to payment of taxes and contributions to unemployment and
             978      insurance funds to which it may be subject. [Failure to do so may result in the suspension or
             979      revocation of the licensee's license.]
             980          (2) The commission:
             981          (a) may not issue a license to an applicant that violates this section; and
             982          (b) may suspend, revoke, or not renew the license of any licensee who fails to comply
             983      with this section.
             984          Section 142. Section 32A-1-401 is amended to read:
             985           32A-1-401. Alcohol training and education -- Revocation or suspension of
             986      licenses.


             987          (1) The commission may [revoke,] suspend, [withhold] revoke, or not renew the
             988      license of any [new or renewing] licensee if any of the following persons, as defined in Section
             989      62A-15-401 , fail to complete the seminar required in Section 62A-15-401 :
             990          (a) a person who manages operations at the premises of the licensee;
             991          (b) a person who supervises the serving of alcoholic beverages to a customer for
             992      consumption on the premises of the licensee; or
             993          (c) a person who serves alcoholic beverages to a customer for consumption on the
             994      premises of the licensee.
             995          (2) A city, town, or county in which an establishment conducts its business may
             996      [revoke,] suspend, [withhold] revoke, or not renew the business license of the establishment if
             997      any person described in Subsection (1) fails to complete the seminar required in Section
             998      62A-15-401 .
             999          Section 143. Section 32A-2-101 is amended to read:
             1000           32A-2-101. Commission's power to establish state stores -- Limitations.
             1001          (1) (a) The commission may establish state stores in numbers and at places, owned or
             1002      leased by the department, it considers proper for the sale of liquor, by employees of the state, in
             1003      accordance with this title and the rules made under this title.
             1004          (b) Employees of state stores are considered employees of the department and shall
             1005      meet all qualification requirements for employment outlined in Section 32A-1-111 .
             1006          (2) (a) The total number of state stores may not at any time aggregate more than that
             1007      number determined by dividing the population of the state by 48,000. [Population]
             1008          (b) For purposes of this Subsection (2), population shall be determined by:
             1009          (i) the most recent United States decennial or special census; or [by]
             1010          (ii) any other population determination made by the United States or state
             1011      governments.
             1012          (3) (a) A state store may not be established within 600 feet of any public or private
             1013      school, church, public library, public playground, or park as measured by the method in
             1014      Subsection (4).
             1015          (b) A state store may not be established within 200 feet of any public or private school,
             1016      church, public library, public playground, or park measured in a straight line from the nearest
             1017      entrance of the proposed state store to the nearest property boundary of the public or private


             1018      school, church, public library, public playground, or park.
             1019          (c) The restrictions contained in Subsections (3)(a) and (b) govern unless one of the
             1020      following exceptions applies:
             1021          [(i) The commission finds after full investigation that the premises are located within a
             1022      city of the third class or a town, and compliance with the distance requirements would result in
             1023      peculiar and exceptional practical difficulties or exceptional and undue hardships in the
             1024      establishment of a state store. In that event, the commission may, after giving full
             1025      consideration to all of the attending circumstances, following a public hearing in the city or
             1026      town, and where practical in the neighborhood concerned, authorize a variance from the
             1027      distance requirements to relieve the difficulties or hardships if the variance may be granted
             1028      without substantial detriment to the public good and without substantially impairing the intent
             1029      and purpose of this title.]
             1030          (i) with respect to the establishment of a state store within a city of the third class, a
             1031      town, or the unincorporated area of a county, the commission may authorize a variance that
             1032      reduces the proximity requirements of Subsection (3)(a) or (b) if:
             1033          (A) alternative locations for establishing a state store in the community are limited;
             1034          (B) a public hearing has been held in the city, town, or county, and where practical in
             1035      the neighborhood concerned; and
             1036          (C) after giving full consideration to all of the attending circumstances and the policies
             1037      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1038      state store would not be detrimental to the public health, peace, safety, and welfare of the
             1039      community; or
             1040          (ii) [With] with respect to the establishment of a state store in any location, the
             1041      commission may[, after giving full consideration to all of the attending circumstances,
             1042      following a public hearing in the county, and where practical in the neighborhood concerned,
             1043      reduce the proximity requirements] authorize a variance to reduce the proximity requirements
             1044      of Subsection (3)(a) or (b) in relation to a church:
             1045          (A) if the local governing body of the church in question gives its written [approval.]
             1046      consent to the variance;
             1047          (B) following a public hearing in the county, and where practical in the neighborhood
             1048      concerned; and


             1049          (C) after giving full consideration to all of the attending circumstances and the policies
             1050      stated in Subsections 32A-1-104 (3) and (4).
             1051          (4) With respect to any public or private school, church, public library, public
             1052      playground, or park, the 600 foot limitation is measured from the nearest entrance of the state
             1053      store by following the shortest route of [either] ordinary pedestrian [traffic or, where
             1054      applicable, vehicular travel along public thoroughfares, whichever is the closer,] travel to the
             1055      property boundary of the public or private school, church, public library, public playground,
             1056      school playground, or park.
             1057          (5) (a) Nothing in this section prevents the commission from considering the proximity
             1058      of any educational, religious, and recreational facility, or any other relevant factor in reaching a
             1059      decision on a proposed location.
             1060          (b) For purposes of this Subsection (5), "educational facility" includes:
             1061          (i) a nursery [schools,] school;
             1062          (ii) an infant day care [centers,] center; and
             1063          (iii) a trade and technical [schools] school.
             1064          Section 144. Section 32A-2-103 is amended to read:
             1065           32A-2-103. Operational restrictions.
             1066          (1) Liquor may not be sold from a state store except in a sealed package. The package
             1067      may not be opened on the premises of any state store.
             1068          (2) (a) An officer, agent, clerk, or employee of a state store may not consume or allow
             1069      to be consumed by any person any alcoholic beverage on the premises of a state store.
             1070          (b) Violation of this Subsection (2) is a class B misdemeanor.
             1071          (3) All liquor sold shall be in packages that are properly marked and labeled in
             1072      accordance with the rules adopted under this title.
             1073          (4) Liquor may not be sold except at prices fixed by the commission.
             1074          (5) Liquor may not be sold, delivered, or furnished to any:
             1075          (a) minor;
             1076          (b) person actually, apparently, or obviously [drunk] intoxicated;
             1077          (c) known habitual drunkard; or
             1078          (d) known interdicted person.
             1079          (6) Sale or delivery of liquor may not be made on or from the premises of any state


             1080      store, nor may any state store be kept open for the sale of liquor:
             1081          (a) on Sunday;
             1082          (b) on any state or federal legal holiday;
             1083          (c) on any day on which any regular general election, regular primary election, or
             1084      statewide special election is held;
             1085          (d) on any day on which any municipal, special district, or school election is held, but
             1086      only within the boundaries of the municipality, special district, or school district holding the
             1087      election and only if the municipality, special district, or school district in which the election is
             1088      being held notifies the department at least 30 days prior to the date of the election; or
             1089          (e) except on days and during hours as the commission may direct by rule or order.
             1090          (7) Each state store shall display in a prominent place in the store a sign in large letters
             1091      stating: "Warning: Driving under the influence of alcohol or drugs is a serious crime that is
             1092      prosecuted aggressively in Utah."
             1093          Section 145. Section 32A-3-101 is amended to read:
             1094           32A-3-101. Commission's power to establish package agencies -- Limitations.
             1095          (1) (a) The commission may, when considered necessary, create package agencies by
             1096      entering into contractual relationships with persons to sell liquor in sealed packages from
             1097      premises other than those owned or leased by the state.
             1098          (b) The commission shall authorize a person to operate a package agency by issuing a
             1099      certificate from the commission that designates the person in charge of the agency as a
             1100      "package agent" as defined under Section 32A-1-105 .
             1101          (2) (a) Subject to this Subsection (2), the total number of package agencies may not at
             1102      any time aggregate more than that number determined by dividing the population of the state
             1103      by 18,000.
             1104          (b) For purposes of Subsection (2)(a), population shall be determined by:
             1105          (i) the most recent United States decennial or special census; or
             1106          (ii) any other population determination made by the United States or state
             1107      governments.
             1108          (c) (i) The commission may establish seasonal package agencies established in areas
             1109      [and for periods it] the commission considers necessary.
             1110          (ii) A seasonal package agency [may not be operated] shall be for a period [longer than


             1111      nine] of six consecutive months [subject to the restrictions stated in Subsections (2)(c)(i)
             1112      through (iii)].
             1113          [(i)] (iii) A package agency established for operation during a summer time period is
             1114      known as a "Seasonal A" package agency. The period of operation for a "Seasonal A" agency
             1115      [may begin as early as February 1 and may continue until October 31.] shall:
             1116          (A) begin on May 1; and
             1117          (B) end on October 31.
             1118          [(ii)] (iv) A package agency established for operation during a winter time period is
             1119      known as a "Seasonal B" package agency. The period of operation for a "Seasonal B" agency
             1120      [may begin as early as September 1 and may continue until May 31.] shall:
             1121          (A) begin on November 1; and
             1122          (B) end on April 30.
             1123          [(iii)] (v) In determining the number of package agencies that the commission may
             1124      establish under this section:
             1125          (A) a seasonal package agency is counted as [one half] 1/2 of one package agency; and
             1126          (B) each "Seasonal A" agency shall be paired with a "Seasonal B" agency[; and].
             1127          [(C) the total number of months that each combined pair may be established for
             1128      operation may not exceed 12 months for each calendar year.]
             1129          (d) (i) If the location, design, and construction of a hotel may require more than one
             1130      package agency sales location to serve the public convenience, the commission may authorize a
             1131      single package agent to sell liquor at as many as three locations within the hotel under one
             1132      package agency if:
             1133          (A) the hotel has a minimum of 150 guest rooms; and
             1134          (B) all locations under the agency are:
             1135          (I) within the same hotel facility; and
             1136          (II) on premises that are managed or operated and owned or leased by the package
             1137      agent.
             1138          (ii) Facilities other than hotels may not have more than one sales location under a
             1139      single package agency.
             1140          (3) (a) As measured by the method in Subsection (4), the premises of a package agency
             1141      may not be established within 600 feet of any[:] public or private school, church, public library,


             1142      public playground, or park.
             1143          [(i) public or private school;]
             1144          [(ii) church;]
             1145          [(iii) public library;]
             1146          [(iv) public playground; or]
             1147          [(v) park.]
             1148          (b) [A] The premises of a package agency may not be established within 200 feet of
             1149      any public or private school, church, public library, public playground, or park, measured in a
             1150      straight line from the nearest entrance of the proposed package agency to the nearest property
             1151      boundary of the public or private school, church, public library, public playground, or park.
             1152          (c) The restrictions contained in Subsections (3)(a) and (b) govern unless [Subsection
             1153      (3)(c)(i) or (ii)] one of the following exemptions applies[.]:
             1154          [(i) If the commission finds after full investigation that the premises are located within a
             1155      city of the third class or a town, and compliance with the distance requirements would result in
             1156      peculiar and exceptional practical difficulties or exceptional and undue hardships in the
             1157      establishment of a package agency, the commission may authorize a variance from the distance
             1158      requirement to relieve the difficulties or hardships:]
             1159          [(A) after giving full consideration to all of the attending circumstances;]
             1160          [(B) following a public hearing in:]
             1161          [(I) the city or town concerned; and]
             1162          [(II) where practical, in the neighborhood concerned; and]
             1163          [(C) if the variance may be granted without:]
             1164          [(I) substantial detriment to the public good; and]
             1165          [(II) substantially impairing the intent and purpose of this title.]
             1166          [(ii) With respect to the establishment of a package agency in any location, the
             1167      commission may reduce the proximity requirements in relation to a church:]
             1168          [(A) after giving full consideration to all of the attending circumstances;]
             1169          [(B) following a public hearing in:]
             1170          [(I) the county concerned; and]
             1171          [(II) where practical, in the neighborhood concerned; and]
             1172          [(C) if the local governing body of the church in question gives its written approval.]


             1173          (i) with respect to the establishment of a package agency within a city of the third class,
             1174      a town, or the unincorporated area of a county, the commission may authorize a variance to
             1175      reduce the proximity requirements of Subsection (3)(a) or (b) if:
             1176          (A) the local governing authority has granted its written consent to the variance;
             1177          (B) alternative locations for establishing a package agency in the community are
             1178      limited;
             1179          (C) a public hearing has been held in the city, town, or county, and where practical in
             1180      the neighborhood concerned; and
             1181          (D) after giving full consideration to all of the attending circumstances and the policies
             1182      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1183      package agency would not be detrimental to the public health, peace, safety, and welfare of the
             1184      community;
             1185          (ii) with respect to the establishment of a package agency in any location, the
             1186      commission may authorize a variance to reduce the proximity requirements of Subsection
             1187      (3)(a) or (b) in relation to a church:
             1188          (A) if the local governing body of the church in question gives its written consent to
             1189      the variance;
             1190          (B) following a public hearing in the city, town, or county and where practical in the
             1191      neighborhood concerned; and
             1192          (C) after giving full consideration to all of the attending circumstances and the policies
             1193      stated in Subsections 32A-1-104 (3) and (4); or
             1194          (iii) with respect to the premises of a package agency issued by the commission that
             1195      undergoes a change of ownership, the commission may waive or vary the proximity
             1196      requirements of Subsection (3)(a) or (b) in considering whether to grant a package agency to
             1197      the new owner of the premises if:
             1198          (A) the premises previously received a variance reducing the proximity requirements of
             1199      Subsection (3)(a) or (b); or
             1200          (B) a variance from proximity or distance requirements was otherwise allowed under
             1201      this title.
             1202          (4) With respect to any public or private school, church, public library, public
             1203      playground, or park, the 600 foot limitation is measured from the nearest entrance of the


             1204      package agency by following the shortest route of [either] ordinary pedestrian [traffic, or where
             1205      applicable, vehicular travel along public thoroughfares, whichever is the closer,] travel to the
             1206      property boundary of the public or private school, church, public library, public playground,
             1207      school playground, or park.
             1208          (5) (a) Nothing in this section prevents the commission from considering the proximity
             1209      of any educational, religious, and recreational facility, or any other relevant factor in reaching a
             1210      decision on a proposed location.
             1211          (b) For purposes of Subsection (5)(a), "educational facility" includes:
             1212          (i) a nursery school;
             1213          (ii) an infant day care center; and
             1214          (iii) a trade and technical school.
             1215          (6) (a) The package agent, under the direction of the department, shall be responsible
             1216      for implementing and enforcing this title and the rules adopted under this title to the extent they
             1217      relate to the conduct of the agency and its sale of liquor.
             1218          (b) A package agent may not be, or construed to be, a state employee nor be otherwise
             1219      entitled to any benefits of employment from the state.
             1220          (c) A package agent, when selling liquor from a package agency, is considered an agent
             1221      of the state only to the extent specifically expressed in the package agency agreement.
             1222          (7) The commission may prescribe by policy, directive, or rule, consistent with this
             1223      title, general operational requirements of all package agencies relating to:
             1224          (a) physical facilities;
             1225          (b) conditions of operation;
             1226          (c) hours of operation;
             1227          (d) inventory levels;
             1228          (e) payment schedules;
             1229          (f) methods of payment;
             1230          (g) premises security; and
             1231          (h) any other matters considered appropriate by the commission.
             1232          Section 146. Section 32A-3-102 is amended to read:
             1233           32A-3-102. Application requirements.
             1234          (1) A person seeking to operate a package agency as a package agent under this chapter


             1235      shall file a written application with the department in a form prescribed by the department.
             1236          (2) The application shall be accompanied by:
             1237          (a) a nonrefundable application fee of $100;
             1238          (b) written consent of the local authority;
             1239          (c) evidence of proximity to any public or private school, church, public library, public
             1240      playground, or park, and if the proximity is within the 600 foot or 200 foot limitations of
             1241      Subsections 32A-3-101 (3)[,] and (4)[, and (5)], the application shall be processed in
             1242      accordance with those subsections;
             1243          (d) a bond as specified by Section 32A-3-105 ;
             1244          (e) a floor plan of the premises, including a description and highlighting of that part of
             1245      the premises in which the applicant proposes that the package agency be established;
             1246          (f) evidence that the package agency is carrying public liability insurance in an amount
             1247      and form satisfactory to the department;
             1248          (g) a signed consent form stating that the package agent will permit any authorized
             1249      representative of the commission, department, or any law enforcement officer to have
             1250      unrestricted right to enter the package agency;
             1251          (h) in the case of [a corporate] an applicant that is a partnership, corporation, or limited
             1252      liability company, proper verification evidencing that the person or persons signing the package
             1253      agency application are authorized to so act on [the corporation's] behalf of the partnership,
             1254      corporation, or limited liability company; and
             1255          (i) any other information as the commission or department may direct.
             1256          Section 147. Section 32A-3-103 is amended to read:
             1257           32A-3-103. Qualifications.
             1258          (1) (a) The commission may not grant a package agency to any person who has been
             1259      convicted of:
             1260          (i) a felony under any federal or state law;
             1261          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             1262      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             1263      [or]
             1264          (iii) any crime involving moral turpitude[.]; or
             1265          (iv) on two or more occasions within the five years before the day on which the


             1266      package agency is granted, driving under the influence of alcohol, any drug, or the combined
             1267      influence of alcohol and any drug.
             1268          (b) In the case of a partnership [or], corporation, or limited liability company, the
             1269      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             1270      offense described in Subsection (1)(a):
             1271          (i) a partner[,];
             1272          (ii) a managing agent[,];
             1273          (iii) a manager;
             1274          (iv) an officer[,];
             1275          (v) a director[, or];
             1276          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             1277      [an] the applicant corporation [has been convicted of any offense as provided in Subsection
             1278      (a)]; or
             1279          (vii) a member who owns at least 20% of the applicant limited liability company.
             1280          [(2) (a) If any employee or proprietor of a package agency is convicted of any offense
             1281      designated in Subsection (1)(a), the]
             1282          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             1283      supervisory or managerial capacity for a package agency has been convicted of any offense
             1284      described in Subsection (1)(a).
             1285          (2) The commission may[, pursuant to a package agency agreement,] immediately
             1286      suspend or revoke the package agency[.] and terminate the package agency agreement
             1287      if after the day on which the package agency is granted a person described in Subsection (1)(a),
             1288      (b), or (c):
             1289          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             1290      to the package agency being granted; or
             1291          (b) on or after the day on which the package agency is granted:
             1292          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             1293          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the
             1294      combined influence of alcohol and any drug; and
             1295          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             1296      influence of alcohol and any drug within five years before the day on which the person is


             1297      convicted of the offense described in Subsection (2)(b)(ii)(A).
             1298          [(b) In the case of a partnership or corporation that operates a package agency, if any
             1299      partner, managing agent, officer, director, or stockholder who holds at least 20% of the total
             1300      issued and outstanding stock of a corporation is convicted of any offense designated in
             1301      Subsection (1)(a), the commission may, pursuant to a package agency agreement, immediately
             1302      revoke the package agency.]
             1303          (3) [Upon the arrest of any package agent on any charge set forth in Subsection (1)(a),
             1304      the] The director may take emergency action by immediately suspending the operation of the
             1305      package agency for the period during which the criminal matter is being adjudicated[.] if a
             1306      person described in Subsection (1)(a), (b), or (c):
             1307          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             1308      or
             1309          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             1310      any drug, or the combined influence of alcohol and any drug; and
             1311          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             1312      influence of alcohol and any drug within five years before the day on which the person is
             1313      arrested on a charge described in Subsection (3)(b)(i).
             1314          (4) (a) (i) The commission may not grant a package agency to any person who has had
             1315      any type of license, agency, or permit issued under this title revoked within the last three years.
             1316          (ii) The commission may not grant a package agency to any [corporation or
             1317      partnership] applicant that is a partnership, corporation, or limited liability company if any
             1318      partner, managing agent, manager, officer, director, [or] stockholder who holds at least 20% of
             1319      the total issued and outstanding stock of the applicant corporation, or member who owns at
             1320      least 20% of the applicant limited liability company is or was:
             1321          (A) a partner or managing agent of any partnership[, or is or was] that had any type of
             1322      license, agency, or permit issued under this title revoked within the last three years;
             1323          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             1324      of the total issued and outstanding stock of any corporation that had any type of license,
             1325      agency, or permit issued under this title revoked within the last three years; or
             1326          (C) a manager or member who owns or owned at least 20% of any limited liability
             1327      company that had [a liquor] any type of license, agency, or permit issued under this title


             1328      revoked within the last three years.
             1329          (b) [A corporation or partnership] An applicant that is a partnership, corporation, or
             1330      limited liability company may not be granted a package agency if any of the following had any
             1331      type of license, agency, or permit issued under this title revoked while acting in that person's
             1332      individual capacity within the last three years:
             1333          (i) any partner or managing agent of the applicant partnership [or];
             1334          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             1335      total issued and outstanding stock of the [corporate] applicant [had a liquor license, agency, or
             1336      permit revoked while acting in their individual capacity within the last three years.]
             1337      corporation; or
             1338          (iii) any manager or member who owns at least 20% of the applicant limited liability
             1339      company.
             1340          (c) A person acting in an individual capacity may not be granted a package agency if
             1341      that person was:
             1342          (i) a partner or managing agent of a partnership[, or] that had any type of license,
             1343      agency, or permit issued under this title revoked within the last three years;
             1344          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             1345      total issued and outstanding stock of a corporation that had any type of license, agency, or
             1346      permit issued under this title revoked within the last three years; or
             1347          (iii) a manager or member who owned at least 20% of the limited liability company
             1348      that had [a liquor] any type of license, agency, or permit issued under this title revoked within
             1349      the last three years.
             1350          (5) (a) Each package agency shall be operated by a natural person, who is either:
             1351          (i) the package agent; or
             1352          (ii) another natural person that package agent designates.
             1353          (b) Each designee shall be:
             1354          (i) an employee of the package agent; and [shall be]
             1355          (ii) responsible for the operation of the agency.
             1356          (c) The conduct of the designee shall be attributable to the package agent.
             1357          (d) The package agent shall provide the name of the person operating the package
             1358      agency to the department for [its] the department's approval.


             1359          (e) The name and title of any designee shall be stated on the application for the
             1360      package agency.
             1361          (f) The package agent shall:
             1362          (i) inform the department of any proposed change in the person designated to operate
             1363      the agency[,]; and [shall]
             1364          (ii) receive prior approval from the department before implementing the change as
             1365      described in this Subsection (5)(f).
             1366          (g) Failure to comply with the requirements of this Subsection (5) may result in the
             1367      immediate termination of the package agency agreement.
             1368          [(6) (a) A person having a license to sell draft beer may not be allowed to operate a
             1369      package agency from the same location in which the draft beer is sold.]
             1370          [(b) The commission may not establish a package agency in:]
             1371          [(i) any restaurant;]
             1372          [(ii) any eating place; or]
             1373          [(iii) any other location that is situated or arranged so as to make the agency part of the
             1374      restaurant or eating place.]
             1375          [(7)] (6) (a) A minor may not be:
             1376          (i) granted a package agency; or [be]
             1377          (ii) employed by a package agent to handle liquor.
             1378          (b) The commission may not grant a package agency to an applicant that is a
             1379      partnership, corporation, or limited liability company if any of the following is a minor:
             1380          (i) a partner or managing agent of the applicant partnership;
             1381          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             1382      total issued and outstanding stock of the applicant corporation; or
             1383          (iii) a manager or member who owns at least 20% of the applicant limited liability
             1384      company.
             1385          [(8)] (7) If any package agent no longer possesses the qualifications required by this
             1386      title for obtaining a package agency, the commission may terminate the package agency
             1387      contract.
             1388          Section 148. Section 32A-3-106 is amended to read:
             1389           32A-3-106. Operational restrictions.


             1390          (1) (a) A package agency may not be operated until a package agency agreement has
             1391      been entered into by the package agent and the department.
             1392          (b) The agreement shall state the conditions of operation by which the package agent
             1393      and the department are bound.
             1394          (c) If the package agent violates the conditions, terms, or covenants contained in the
             1395      agreement, or violates any provisions of this title, the department may take whatever action
             1396      against the agent that is allowed by the package agency agreement.
             1397          (d) Actions against the package agent are governed solely by the agreement and may
             1398      include suspension or revocation of the agency.
             1399          [(2) The department shall provide all liquor sold by package agencies.]
             1400          (2) (a) A package agency may not purchase liquor from any person except from the
             1401      department.
             1402          (b) At the discretion of the department, liquor may be provided by the department to a
             1403      package agency for sale on consignment.
             1404          (3) The department may pay or otherwise remunerate a package agent on any basis
             1405      [other than] including sales or volume of business done by the agency.
             1406          (4) Liquor may not be sold from any package agency except in a sealed package. The
             1407      package may not be opened on the premises of a package agency.
             1408          (5) All liquor sold shall be in packages that are properly marked and labeled in
             1409      accordance with the rules adopted under this title.
             1410          (6) A package agency may not display liquor or price lists in windows or showcases
             1411      visible to passersby.
             1412          (7) (a) An officer, agent, clerk, or employee of a package agency may not consume or
             1413      allow to be consumed by any person any alcoholic beverage on the premises of a package
             1414      agency.
             1415          (b) Violation of this Subsection (7) is a class B misdemeanor.
             1416          (8) Liquor may not be sold except at prices fixed by the commission.
             1417          (9) Liquor may not be sold, delivered, or furnished to any:
             1418          (a) minor;
             1419          (b) person actually, apparently, or obviously [drunk] intoxicated;
             1420          (c) known habitual drunkard; or


             1421          (d) known interdicted person.
             1422          (10) Sale or delivery of liquor may not be made on or from the premises of any
             1423      package agency nor may any package agency be kept open for the sale of liquor:
             1424          (a) on Sunday;
             1425          (b) on any state or federal legal holiday;
             1426          (c) on any day on which any regular general election, regular primary election, or
             1427      statewide special election is held until after the polls are closed;
             1428          (d) on any day on which any municipal, special district, or school election is held until
             1429      after the polls are closed, but only within the boundaries of the municipality, special district, or
             1430      school district holding the election and only if the municipality, special district, or school
             1431      district in which the election is being held notifies the department at least 30 days prior to the
             1432      date of the election; or
             1433          (e) except on days and during hours as the commission may direct by rule or order.
             1434          (11) The package agency certificate issued by the commission shall be permanently
             1435      posted in a conspicuous place in the package agency.
             1436          (12) Each package agent shall display in a prominent place in the package agency a
             1437      sign in large letters stating: "Warning: Driving under the influence of alcohol or drugs is a
             1438      serious crime that is prosecuted aggressively in Utah."
             1439          (13) (a) A package agency may not close or cease operation for a period longer than 72
             1440      hours, unless [written notice is given to]:
             1441          (i) the package agency notifies the department in writing at least seven days before the
             1442      closing[,]; and
             1443          (ii) the closure or cessation of operation is first approved by the department.
             1444          (b) [In] Notwithstanding Subsection (13)(a), in the case of emergency closure,
             1445      immediate notice of closure shall be made to the department by telephone.
             1446          (c) (i) The department may authorize a closure or cessation of operation for a period
             1447      not to exceed 60 days.
             1448          (ii) The department may extend the initial period an additional 30 days upon written
             1449      request of the package agency and upon a showing of good cause.
             1450          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             1451      commission approval.


             1452          (d) [Each] The notice required by Subsection (13)(a) shall include:
             1453          (i) the dates of closure or cessation of operation[,];
             1454          (ii) the reason for the closure or cessation of operation[,]; and
             1455          (iii) the date on which the agency will reopen or resume operation.
             1456          (e) Failure of the agency to provide notice and to obtain department authorization prior
             1457      to closure or cessation of operation shall result in an automatic termination of the package
             1458      agency contract effective immediately.
             1459          (f) Failure of the agency to reopen or resume operation by the approved date shall
             1460      result in an automatic termination of the package agency contract effective on that date.
             1461          [(14) (a) All liquor shall be stored and sold from the location designated in the package
             1462      agent's application as approved by the commission.]
             1463          (14) Liquor may not be stored or sold in any place other than as designated in the
             1464      package agent's application, unless the package agent first applies for and receives approval
             1465      from the department for a change of location within the package agency premises.
             1466          [(b)] (15) A package agency may not transfer its operations from one location to
             1467      another without prior written approval of the commission.
             1468          [(15)] (16) (a) A person, having been granted a package agency, may not sell, transfer,
             1469      assign, exchange, barter, give, or attempt in any way to dispose of the package agency to any
             1470      other person, whether for monetary gain or not.
             1471          (b) A package agency has no monetary value for the purpose of any type of disposition.
             1472          Section 149. Section 32A-3-108 is amended to read:
             1473           32A-3-108. Return of inventory.
             1474          Any liquor previously [purchased] received from the department on consignment that
             1475      remains unsold [and in saleable condition] at the time the package agent's package agency
             1476      agreement terminates for any reason, shall be immediately returned to the department [for a
             1477      refund of the current value of the liquor] or the liquor is subject to immediate seizure by the
             1478      department.
             1479          Section 150. Section 32A-4-101 is amended to read:
             1480           32A-4-101. Commission's power to grant licenses -- Limitations.
             1481          (1) Before [any] a restaurant may sell or allow the consumption of liquor on its
             1482      premises, it shall first obtain a license from the commission as provided in this part.


            
Text Box

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Senate 3rd Reading Amendments 2-24-2003 rd/po
1483
         (2) The commission may issue restaurant liquor licenses for the purpose of establishing
             1484      restaurant liquor outlets at places and in numbers it considers proper for the storage, sale, and
             1485      consumption of liquor on premises operated as public restaurants.
             1486          (3) (a) (i) Subject to this Subsection (3), the total number of restaurant liquor licenses
             1487      may not at any time aggregate more than that number determined S AS FOLLOWS: (A) UNTIL
             1487a      OCTOBER 31, 2003, s by dividing the population of
             1488      the state by S [ [ ] 4,500 [ ] ] ; AND (B) ON OR AFTER NOVEMBER 1, 2003, BY DIVIDING THE
             1488a      POPULATION OF THE STATE BY s 5,000.
             1489          (ii) If the total number of restaurant liquor licenses in effect on S [ May 5, 2003 ] OCTOBER
             1489a      31, 2003 s , equals or
             1490      exceeds the limitation of Subsection (3)(a)(i):
             1491          (A) a license that is in effect on S [ May 5, 2003 ] OCTOBER 31, 2003 s :
             1492          (I) is not invalidated by Subsection (3)(a)(i); and
             1493          (II) may be renewed in accordance with this chapter; and
             1494          (B) the commission may not grant a new restaurant liquor license until such time as the
             1495      total number of restaurant liquor licenses granted under this chapter is less than the limitation
             1496      of Subsection (3)(a)(i).
             1497          (b) [Population] For purposes of this Subsection (3), population shall be determined
             1498      by:
             1499          (i) the most recent United States decennial or special census; or [by]
             1500          (ii) any other population determination made by the United States or state
             1501      governments.
             1502          [(a)] (c) (i) The commission may issue seasonal restaurant liquor licenses established
             1503      in areas [and for periods it] the commission considers necessary.
             1504          (ii) A seasonal restaurant liquor license [may not be operated] shall be for a period
             1505      [longer than nine] of six consecutive months [subject to the following restrictions:].
             1506          [(i)] (iii) [Licenses] A restaurant liquor license issued for operation during a summer
             1507      time [periods are] period is known as a "Seasonal A" restaurant [licenses] liquor license. The
             1508      period of operation for a "Seasonal A" restaurant liquor license [may begin as early as February
             1509      1 and may continue until October 31.] shall:
             1510          (A) begin on May 1; and
             1511          (B) end on October 31.
             1512          [(ii)] (iv) [Licenses] A restaurant liquor license issued for operation during a winter
             1513      time [periods are] period is known as a "Seasonal B" restaurant [licenses] liquor license. The


             1514      period of operation for a "Seasonal B" restaurant liquor license [may begin as early as
             1515      September 1 and may continue until May 31.] shall:
             1516          (A) begin on November 1; and
             1517          (B) end on April 30.
             1518          [(iii)] (v) In determining the number of restaurant liquor licenses that the commission
             1519      may issue under this section[,]:
             1520          (A) a seasonal [licenses are] license is counted as 1/2 of one restaurant liquor license[.
             1521      Each]; and
             1522          (B) each "Seasonal A" license shall be paired with a "Seasonal B" license [and the total
             1523      number of months that each combined pair may be issued for operation may not exceed 12
             1524      months for each calendar year].
             1525          [(b)] (d) If the location, design, and construction of a hotel may require more than one
             1526      restaurant liquor sales location within the hotel to serve the public convenience, the
             1527      commission may authorize the sale of liquor at as many as three restaurant locations within the
             1528      hotel under one license if the hotel has a minimum of 150 guest rooms and if all locations
             1529      under the license are within the same hotel facility and on premises that are managed or
             1530      operated and owned or leased by the licensee. Facilities other than hotels shall have a separate
             1531      restaurant liquor license for each restaurant where liquor is sold.
             1532          (4) (a) [Restaurant liquor licensee] The premises of a restaurant liquor license may not
             1533      be established within 600 feet of any public or private school, church, public library, public
             1534      playground, or park, as measured by the method in Subsection (5).
             1535          (b) [Restaurant liquor licensee] The premises of a restaurant liquor license may not be
             1536      established within 200 feet of any public or private school, church, public library, public
             1537      playground, or park, measured in a straight line from the nearest entrance of the proposed
             1538      outlet to the nearest property boundary of the public or private school, church, public library,
             1539      public playground, or park.
             1540          (c) The restrictions contained in Subsections (4)(a) and (b) govern unless one of the
             1541      following exemptions applies:
             1542          [(i) The commission finds after full investigation that the premises are located within a
             1543      city of the third class, a town, or the unincorporated area of a county, and compliance with the
             1544      distance requirements would result in peculiar and exceptional practical difficulties or


             1545      exceptional and undue hardships in the granting of a restaurant liquor license. In that event, the
             1546      commission may, after giving full consideration to all of the attending circumstances,
             1547      following a public hearing in the city or town, and where practical in the neighborhood
             1548      concerned, authorize a variance from the distance requirements to relieve the difficulties or
             1549      hardships if the variance may be granted without substantial detriment to the public good and
             1550      without substantially impairing the intent and purpose of this title.]
             1551          [(ii) With respect to the establishment of a restaurant licensee in any location, the
             1552      commission may, after giving full consideration to all of the attending circumstances,
             1553      following a public hearing in the county, and where practical in the neighborhood concerned,
             1554      reduce the proximity requirements in relation to a church if the local governing body of the
             1555      church in question gives its written approval.]
             1556          [(iii) Any on-premises beer retailer licensee existing on March 1, 1990, need not
             1557      comply with the restrictions contained in Subsections (4)(a) and (b) if it applies for a restaurant
             1558      liquor license before January 1, 1991.]
             1559          (i) with respect to the establishment of a restaurant liquor license in any location, the
             1560      commission may authorize a variance to reduce the proximity requirements of Subsection
             1561      (4)(a) or (b) if:
             1562          (A) the local governing authority has granted its written consent to the variance;
             1563          (B) alternative locations for establishing a restaurant liquor license in the community
             1564      are limited;
             1565          (C) a public hearing has been held in the city, town, or county, and where practical in
             1566      the neighborhood concerned; and
             1567          (D) after giving full consideration to all of the attending circumstances and the policies
             1568      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1569      license would not be detrimental to the public health, peace, safety, and welfare of the
             1570      community; or
             1571          (ii) with respect to the premises of a restaurant liquor license issued by the commission
             1572      that undergoes a change of ownership, the commission may waive or vary the proximity
             1573      requirements of Subsection (4)(a) or (b) in considering whether to grant a restaurant liquor
             1574      license to the new owner of the premises if:
             1575          (A) the premises previously received a variance reducing the proximity requirements of


             1576      Subsection (4)(a) or (b); or
             1577          (B) a variance from proximity or distance requirements was otherwise allowed under
             1578      this title.
             1579          (5) With respect to any public or private school, church, public library, public
             1580      playground, or park, the 600 foot limitation is measured from the nearest entrance of the outlet
             1581      by following the shortest route of [either] ordinary pedestrian [traffic, or where applicable,
             1582      vehicular travel along public thoroughfares, whichever is the closer,] travel to the property
             1583      boundary of the public or private school, church, public library, public playground, school
             1584      playground, or park.
             1585          (6) (a) Nothing in this section prevents the commission from considering the proximity
             1586      of any educational, religious, and recreational facility, or any other relevant factor in reaching a
             1587      decision on a proposed location.
             1588          (b) For purposes of this Subsection (6), "educational facility" includes:
             1589          (i) a nursery [schools,] school;
             1590          (ii) an infant day care [centers,] center; and
             1591          (iii) a trade and technical [schools] school.
             1592          Section 151. Section 32A-4-102 is amended to read:
             1593           32A-4-102. Application and renewal requirements.
             1594          (1) A person seeking a restaurant liquor license under this [chapter] part shall file a
             1595      written application with the department, in a form prescribed by the department. It shall be
             1596      accompanied by:
             1597          (a) a nonrefundable [$300] $250 application fee;
             1598          (b) an initial license fee of [$300] $1,750, which is refundable if a license is not
             1599      granted;
             1600          (c) written consent of the local authority;
             1601          (d) a copy of the applicant's current business license;
             1602          (e) evidence of proximity to any public or private school, church, public library, public
             1603      playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
             1604      Subsections 32A-4-101 (4)[,] and (5)[, and (6)], the application shall be processed in
             1605      accordance with those subsections;
             1606          (f) a bond as specified by Section 32A-4-105 ;


             1607          (g) a floor plan of the restaurant, including consumption areas and the area where the
             1608      applicant proposes to keep, store, and sell liquor;
             1609          (h) evidence that the restaurant is carrying public liability insurance in an amount and
             1610      form satisfactory to the department;
             1611          (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
             1612      $500,000 per occurrence and $1,000,000 in the aggregate;
             1613          (j) a signed consent form stating that the restaurant will permit any authorized
             1614      representative of the commission, department, or any law enforcement officer unrestricted right
             1615      to enter the restaurant;
             1616          (k) in the case of [a corporate] an applicant that is a partnership, corporation, or limited
             1617      liability company, proper verification evidencing that the person or persons signing the
             1618      restaurant application are authorized to so act on [the corporation's] behalf of the partnership,
             1619      corporation, or limited liability company; and
             1620          (l) any other information the commission or department may require.
             1621          (2) (a) All restaurant liquor licenses expire on October 31 of each year.
             1622          (b) Persons desiring to renew their restaurant liquor license shall [submit a renewal fee
             1623      of $300 and a completed renewal application to the department] by no later than September
             1624      30[.] submit:
             1625          (i) a completed renewal application to the department; and
             1626          (ii) a renewal fee in the following amount:
             1627          Gross Cost of Liquor in Previous License Year for the Licensee        Renewal Fee
             1628          under $5,000                                    $750
             1629          equals or exceeds $5,000 but less than $10,000                $900
             1630          equals or exceeds $10,000 but less than $25,000                $1,250
             1631          equals or exceeds $25,000                            $1,500.
             1632          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             1633      the license effective on the date the existing license expires.
             1634          (d) Renewal applications shall be in a form as prescribed by the department.
             1635          (3) [If] To ensure compliance with Subsection 32A-4-106 (28), the commission may
             1636      suspend or revoke any restaurant liquor license if the restaurant liquor licensee does not
             1637      immediately notify the department of any change in:


             1638          (a) ownership of the restaurant[, or in the case of];
             1639          (b) for a [Utah] corporate owner, [of any change in] the:
             1640          (i) corporate officers or directors[, the commission may suspend or revoke that
             1641      license.]; or
             1642          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             1643      corporation; or
             1644          (c) for a limited liability company:
             1645          (i) managers; or
             1646          (ii) members owning at least 20% of the limited liability company.
             1647          Section 152. Section 32A-4-103 is amended to read:
             1648           32A-4-103. Qualifications.
             1649          (1) (a) The commission may not grant a restaurant liquor license to [a restaurant whose
             1650      proprietor] any person who has been convicted of:
             1651          (i) a felony under any federal or state law;
             1652          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             1653      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             1654      [or]
             1655          (iii) any crime involving moral turpitude[.]; or
             1656          (iv) on two or more occasions within the five years before the day on which the license
             1657      is granted, driving under the influence of alcohol, any drug, or the combined influence of
             1658      alcohol and any drug.
             1659          (b) In the case of a partnership [or], corporation, or limited liability company the
             1660      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             1661      offense described in Subsection (1)(a):
             1662          (i) a partner[,];
             1663          (ii) a managing agent[,];
             1664          (iii) a manager;
             1665          (iv) an officer[,];
             1666          (v) a director[, or];
             1667          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             1668      [an] the applicant corporation [has been convicted of any offense as provided in this


             1669      subsection]; or
             1670          (vii) a member who owns at least 20% of the applicant limited liability company.
             1671          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             1672      supervisory or managerial capacity for a restaurant has been convicted of any offense described
             1673      in Subsection (1)(a).
             1674          [(2) (a) If any employee or proprietor of a restaurant liquor licensee is convicted of any
             1675      offense designated in Subsection (1), the commission may take emergency action by
             1676      immediately revoking the license according to the procedures and requirements of Title 63,
             1677      Chapter 46b.]
             1678          [(b) In the case of a partnership or corporation that has been granted a restaurant liquor
             1679      license, if any partner, managing agent, officer, director, or stockholder who holds at least 20%
             1680      of the total issued and outstanding stock of a corporation is convicted of any offense designated
             1681      in Subsection (1), the commission may take emergency action by immediately revoking the
             1682      license according to the procedures and requirements of Title 63, Chapter 46b.]
             1683          (2) The commission may immediately suspend or revoke a restaurant liquor license if
             1684      after the day on which the restaurant liquor license is granted, a person described in Subsection
             1685      (1)(a), (b), or (c):
             1686          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             1687      to the license being granted; or
             1688          (b) on or after the day on which the license is granted:
             1689          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             1690          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the
             1691      combined influence of alcohol and any drug; and
             1692          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             1693      influence of alcohol and any drug within five years before the day on which the person is
             1694      convicted of the offense described in Subsection (2)(b)(ii)(A).
             1695          (3) [Upon the arrest of any restaurant liquor licensee on any charge set forth in
             1696      Subsection (1), the] The director may take emergency action by immediately suspending the
             1697      operation of [the licensee] a restaurant liquor license according to the procedures and
             1698      requirements of Title 63, Chapter 46b, Administrative Procedures Act, for the period during
             1699      which the criminal matter is being adjudicated[.] if a person described in Subsection (1)(a), (b),


             1700      or (c):
             1701          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             1702      or
             1703          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             1704      any drug, or the combined influence of alcohol and any drug; and
             1705          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             1706      influence of alcohol and any drug within five years before the day on which the person is
             1707      arrested on a charge described in Subsection (3)(b)(i).
             1708          (4) (a) (i) The commission may not grant a restaurant liquor license to any person who
             1709      has had any type of license, agency, or permit issued under this title revoked within the last
             1710      three years.
             1711          (ii) The commission may not grant a restaurant liquor license to [any corporation or
             1712      partnership] an applicant that is a partnership, corporation, or limited liability company if any
             1713      partner, managing agent, manager, officer, director, [or] stockholder who holds at least 20% of
             1714      the total issued and outstanding stock of the applicant corporation, or member who owns at
             1715      least 20% of the applicant limited liability company is or was:
             1716          (A) a partner or managing agent of any partnership[, or is or was] that had any type of
             1717      license, agency, or permit issued under this title revoked within the last three years;
             1718          (B) a managing agent, officer, director, or [a] stockholder who holds or held at least
             1719      20% of the total issued and outstanding stock of any corporation that had any type of license,
             1720      agency, or permit issued under this title revoked within the last three years; or
             1721          (C) a manager or member who owns or owned at least 20% of any limited liability
             1722      company that had [a liquor] any type of license, agency, or permit issued under this title
             1723      revoked within the last three years.
             1724          (b) [A corporation or partnership] An applicant that is a partnership, corporation, or
             1725      limited liability company may not be granted a restaurant liquor license if any of the following
             1726      had any type of license, agency, or permit issued under this title revoked while acting in that
             1727      person's individual capacity within the last three years:
             1728          (i) a partner or managing agent of the applicant partnership [or];
             1729          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             1730      total issued and outstanding stock of the [corporate applicant had a liquor license, agency, or


             1731      permit revoked while acting in their individual capacity within the last three years.] applicant
             1732      corporation; or
             1733          (iii) a manager or member who owns at least 20% of the applicant limited liability
             1734      company.
             1735          (c) A person acting in an individual capacity may not be granted a restaurant liquor
             1736      license if that person was:
             1737          (i) a partner or managing agent of a partnership[, or] that had any type of license,
             1738      agency, or permit issued under this title revoked within the last three years;
             1739          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             1740      total issued and outstanding stock of a corporation that had any type of license, agency, or
             1741      permit issued under this title revoked within the last three years; or
             1742          (iii) a manager or member of a limited liability company who owned at least 20% of
             1743      the limited liability company that had [a liquor] any type of license, agency, or permit issued
             1744      under this title revoked within the last three years.
             1745          (5) (a) A minor may not be granted a restaurant liquor license.
             1746          (b) The commission may not grant a restaurant liquor license to an applicant that is a
             1747      partnership, corporation, or limited liability company if any of the following is a minor:
             1748          (i) a partner or managing agent of the applicant partnership;
             1749          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             1750      total issued and outstanding stock of the applicant corporation; or
             1751          (iii) a manager or member who owns at least 20% of the applicant limited liability
             1752      company.
             1753          (6) If any person to whom a license has been issued under this part no longer possesses
             1754      the qualifications required by this title for obtaining that license, the commission may suspend
             1755      or revoke that license.
             1756          Section 153. Section 32A-4-105 is amended to read:
             1757           32A-4-105. Bond.
             1758          (1) Each restaurant liquor licensee shall post a cash or corporate surety bond in the
             1759      penal sum of [$5,000] $10,000 payable to the department, which the licensee has procured and
             1760      must maintain for so long as the licensee continues to operate as a restaurant liquor licensee.
             1761          (2) The bond shall be in a form approved by the attorney general, conditioned upon the


             1762      licensee's faithful compliance with this title and the rules of the commission.
             1763          (3) (a) If the [$5,000] $10,000 surety bond is canceled due to the licensee's negligence,
             1764      a $300 reinstatement fee may be assessed.
             1765          (b) No part of any cash or corporate bond so posted may be withdrawn:
             1766          (i) during the period the license is in effect[,]; or
             1767          (ii) while revocation proceedings are pending against the licensee.
             1768          (c) A bond filed by a licensee may be forfeited if the license is finally revoked.
             1769          Section 154. Section 32A-4-106 is amended to read:
             1770           32A-4-106. Operational restrictions.
             1771          Each person granted a restaurant liquor license and the employees and management
             1772      personnel of the restaurant shall comply with the following conditions and requirements.
             1773      Failure to comply may result in a suspension or revocation of the license or other disciplinary
             1774      action taken against individual employees or management personnel.
             1775          (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from state
             1776      stores or package agencies.
             1777          (b) Liquor purchased may be transported by the restaurant liquor licensee from the
             1778      place of purchase to the licensed premises.
             1779          (c) Payment for liquor shall be made in accordance with rules established by the
             1780      commission.
             1781          (2) A restaurant liquor licensee may [not] sell or provide [any] a primary spirituous
             1782      liquor [except in one ounce quantities] only in a quantity not to exceed one ounce per beverage
             1783      dispensed through a calibrated metered dispensing system approved by the department in
             1784      accordance with commission rules adopted under this title, except that:
             1785          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1786      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1787      restrictions:
             1788          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             1789      a primary spirituous liquor;
             1790          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             1791          (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
             1792      on the floor plan provided to the department; and


             1793          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             1794          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1795      system if used:
             1796          (i) as a flavoring on desserts; and
             1797          (ii) in the preparation of flaming food dishes, drinks, and desserts;
             1798          (c) each restaurant patron may have no more than 2.75 ounces of spirituous liquor at a
             1799      time; and
             1800          (d) each restaurant patron may have no more than one spirituous liquor drink at a time
             1801      before the patron.
             1802          [(c) wine] (3) (a) (i) Wine may be sold and served by the glass [in quantities not
             1803      exceeding] or in an individual portion not to exceed five ounces per glass[; and] or individual
             1804      portion.
             1805          (ii) An individual portion of wine may be served to a patron in more than one glass as
             1806      long as the total amount of wine does not exceed five ounces.
             1807          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1808      Subsection (7)(e).
             1809          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             1810      fixed by the commission to tables of four or more persons.
             1811          (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
             1812      the commission to tables of less than four persons.
             1813          (c) A wine service may be performed and a service charge assessed by the restaurant as
             1814      authorized by commission rule for wine purchased at the restaurant.
             1815          [(d) heavy] (4) (a) Heavy beer may be served in original containers not exceeding one
             1816      liter at prices fixed by the commission.
             1817          (b) A service charge may be assessed by the restaurant as authorized by commission
             1818      rule for heavy beer purchased at the restaurant.
             1819          [(3) (a) Restaurants] (5) (a) A restaurant licensed to sell liquor may sell beer in any
             1820      size container not exceeding two liters, and on draft for on-premise consumption without
             1821      obtaining a separate on-premise beer retailer license from the commission.
             1822          (b) [Restaurants] A restaurant licensed under this chapter that [sell] sells beer pursuant
             1823      to Subsection [(3)] (5)(a) shall comply with all appropriate operational restrictions under


             1824      Chapter 10, Beer Retailer Licenses, that apply to on-premise beer retailers except when those
             1825      restrictions are inconsistent with or less restrictive than the operational restrictions under this
             1826      [chapter] part.
             1827          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1828      Licenses, required by Subsection [(3)] (5)(b) may result in a suspension or revocation of the
             1829      restaurant's:
             1830          (i) state liquor license; and
             1831          (ii) alcoholic beverage license issued by the local authority.
             1832          [(4) Wine may be served in accordance with commission rule in containers not
             1833      exceeding 750 ml.]
             1834          [(5) (a) Liquor] (6) Alcoholic beverages may not be stored, served, or sold in any place
             1835      other than as designated in the licensee's application, unless the licensee first applies for and
             1836      receives approval from the department for a change of location within the restaurant.
             1837          [(b)] (7) (a) (i) A patron may only make alcoholic beverage purchases in the restaurant
             1838      from [a server] and be served by a person employed, designated, and trained by the licensee to
             1839      sell and serve alcoholic beverages.
             1840          (ii) Notwithstanding Subsection (7)(a)(i), a patron who has purchased bottled wine
             1841      from an employee of the restaurant or has carried bottled wine onto the premises of the
             1842      restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to themselves
             1843      or others at the patron's table.
             1844          (b) Alcoholic beverages shall be delivered by a server to the patron.
             1845          (c) Any alcoholic beverage may only be consumed at the patron's table or counter.
             1846          [(d) Liquor may not be stored where it is visible to patrons of the restaurant.]
             1847          [(6) (a) Alcoholic beverages may not be dispensed directly to a patron from the storage
             1848      area.]
             1849          [(b) Alcoholic beverages shall be delivered by a server to the patron.]
             1850          (d) Alcoholic beverages may not be served to or consumed by a patron at a bar.
             1851          (e) Each restaurant patron may have no more than two alcoholic beverages of any kind
             1852      at a time before the patron, subject to the limitation in Subsection (2)(a).
             1853          [(7)] (8) The liquor storage area shall remain locked at all times other than those hours
             1854      and days when liquor sales are authorized by law.


             1855          [(8)] (9) (a) Liquor may not be sold [or], offered for sale, served, or otherwise
             1856      furnished at a restaurant during the following days or hours:
             1857          (i) until after the polls are closed on the day of any:
             1858          (A) regular general election[,];
             1859          (B) regular primary election[,]; or
             1860          (C) statewide special election [until after the polls are closed];
             1861          (ii) on the day of any municipal, special district, or school election, but only:
             1862          (A) within the boundaries of the municipality, special district, or school district; and
             1863          (B) if closure is required by local ordinance; and
             1864          (iii) on any other day after 12 midnight and before 12 noon.
             1865          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             1866      Licenses, for on-premise beer licensees.
             1867          [(9)] (10) Alcoholic beverages may not be sold except in connection with an order for
             1868      food prepared, sold, and served at the restaurant.
             1869          [(10)] (11) Alcoholic beverages may not be sold, [delivered,] served, or otherwise
             1870      furnished to any:
             1871          (a) minor;
             1872          (b) person actually, apparently, or obviously [drunk] intoxicated;
             1873          (c) known habitual drunkard; or
             1874          (d) known interdicted person.
             1875          [(11)] (12) (a) (i) Liquor may be sold only at prices fixed by the commission.
             1876          (ii) Liquor may not be sold at discount prices on any date or at any time.
             1877          (b) An alcoholic beverage may not be sold [except at prices fixed by the commission]
             1878      at less than the cost of the alcoholic beverage to the licensee.
             1879          [(b) Mixed drinks and wine may not be sold at discount prices on any date or at any
             1880      time.]
             1881          [(12) Each restaurant patron may have only one alcoholic beverage at a time before the
             1882      patron on the patron's table.]
             1883          [(13) No more than one ounce of primary liquor may be served to a patron at a time,
             1884      except:]
             1885          [(a) wine as provided in Subsection (2)(c); and]


             1886          [(b) heavy beer as provided in Subsection (2)(d).]
             1887          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1888      over consumption or intoxication.
             1889          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1890      hours of the restaurant's business day such as a "happy hour."
             1891          (e) The sale or service of more than one alcoholic beverage for the price of a single
             1892      alcoholic beverage is prohibited.
             1893          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
             1894      during any set period for a fixed price is prohibited.
             1895          (g) A restaurant licensee may not engage in a public promotion involving or offering
             1896      free alcoholic beverages to the general public.
             1897          [(14)] (13) Alcoholic beverages may not be purchased by the licensee, or any employee
             1898      or agent of the licensee, for patrons of the restaurant.
             1899          [(15) Alcoholic beverages purchased in a restaurant may not be served or consumed at
             1900      any location where they are stored or dispensed.]
             1901          [(16) (a) A wine service may be performed and a service charge assessed by the
             1902      restaurant as authorized by commission rule for wine purchased at the restaurant or carried in
             1903      by a patron.]
             1904          [(b) If wine is carried in by a patron, the patron shall deliver the wine to a server or
             1905      other representative of the licensee upon entering the licensee premises.]
             1906          [(17)] (14) (a) A person may not bring onto the premises of a restaurant liquor licensee
             1907      any alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             1908      discretion of the licensee, [cork-finished] bottled wine onto the premises of any restaurant
             1909      liquor licensee [and consume wine pursuant to Subsection (16)] for on-premise consumption.
             1910          (b) [A] Except bottled wine under Subsection (14)(a), a restaurant[, whether licensed
             1911      under this title or unlicensed,] liquor licensee or its officers, managers, employees, or agents
             1912      may not allow:
             1913          (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
             1914      consumption; or
             1915          (ii) consumption of any such alcoholic beverage on its premises[, except cork-finished
             1916      wine under Subsection (17)(a)].


             1917          [(c) If a restaurant licensee, or any of its officers, managers, employees, or agents
             1918      violates this Subsection (17):]
             1919          [(i) the commission may immediately suspend or revoke the restaurant's liquor license
             1920      and the restaurant licensee is subject to possible criminal prosecution under Chapter 12,
             1921      Criminal Offenses; and]
             1922          [(ii) the local authority may immediately suspend or revoke the restaurant's:]
             1923          [(A) local liquor license;]
             1924          [(B) local consent under Subsection 32A-4-102 (1); or]
             1925          [(C) local business license.]
             1926          [(18) Alcoholic beverages purchased from the restaurant may not be removed from the
             1927      restaurant premises.]
             1928          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             1929      or other representative of the licensee upon entering the restaurant.
             1930          (d) A wine service may be performed and a service charge assessed by the restaurant as
             1931      authorized by commission rule for wine carried in by a patron.
             1932          (15) (a) Except as provided in Subsection (15)(b), a restaurant licensee and its
             1933      employees may not permit a restaurant patron to carry from the restaurant premises an open
             1934      container that:
             1935          (i) is used primarily for drinking purposes; and
             1936          (ii) contains any alcoholic beverage.
             1937          (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
             1938      restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
             1939      onto the premises of the restaurant in accordance with Subsection (14), provided the bottle has
             1940      been recorked or recapped before removal.
             1941          [(19)] (16) (a) [Minors] A minor may not be employed by a restaurant licensee to sell
             1942      or dispense alcoholic beverages.
             1943          (b) Notwithstanding Subsection [(19)] (16)(a), a minor may be employed to enter the
             1944      sale at a cash register or other sales recording device.
             1945          [(20)] (17) An employee of a restaurant liquor licensee, while on duty, may not:
             1946          (a) consume an alcoholic beverage; or
             1947          (b) be [under the influence of alcoholic beverages] intoxicated.


             1948          [(21) (a) Advertising or other reference to the sale of liquor and wine is not allowed on
             1949      a food menu except that a statement of availability of a liquor and wine menu on request, the
             1950      content and form of which is approved by the department, may be attached to or carried on a
             1951      food menu. The context of both food and liquor and wine menus may not in any manner
             1952      attempt to promote or increase the sale of alcoholic beverages.]
             1953          [(b) A server, employee, or agent of a licensee may not draw attention to the
             1954      availability of alcoholic beverages for sale, unless a patron or guest first inquires about it.]
             1955          [(c)] (18) Any [set-up charge, service charge, chilling fee, or any other] charge or fee
             1956      made in connection with the sale, service, or consumption of liquor may be stated in food or
             1957      alcoholic beverage menus[.] including:
             1958          (a) a set-up charge;
             1959          (b) a service charge; or
             1960          (c) a chilling fee.
             1961          [(22)] (19) Each restaurant liquor licensee shall display in a prominent place in the
             1962      restaurant:
             1963          (a) the liquor license that is issued by the department;
             1964          (b) a list of the types and brand names of liquor being served through its calibrated
             1965      metered dispensing system; and
             1966          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1967      drugs is a serious crime that is prosecuted aggressively in Utah."
             1968          [(23)] (20) The following acts or conduct in a restaurant licensed under this chapter are
             1969      considered contrary to the public welfare and morals, and are prohibited upon the premises:
             1970          (a) employing or using any person in the sale or service of alcoholic beverages while
             1971      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             1972      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             1973      buttocks, vulva, or genitals;
             1974          (b) employing or using the services of any person to mingle with the patrons while the
             1975      person is unclothed or in attire, costume, or clothing described in Subsection [(23)] (20)(a);
             1976          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             1977      buttocks, anus, or genitals of any other person;
             1978          (d) permitting any employee or person to wear or use any device or covering, exposed


             1979      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
             1980          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             1981      the prohibited activities described in this Subsection [(23)] (20);
             1982          (f) permitting any person to remain in or upon the premises who exposes to public
             1983      view any portion of that person's genitals or anus; or
             1984          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             1985      depicting:
             1986          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             1987      copulation, flagellation, or any sexual acts prohibited by Utah law;
             1988          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             1989      genitals;
             1990          (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             1991      drawings are used to portray, any of the prohibited activities described in this Subsection [(23)]
             1992      (20); or
             1993          (iv) scenes wherein a person displays the vulva or the anus or the genitals.
             1994          [(24)] (21) Nothing in Subsection [(23)] (20) precludes a local authority from being
             1995      more restrictive of acts or conduct of the type prohibited in Subsection [(23)] (20).
             1996          [(25)] (22) (a) Although live entertainment is permitted on the premises of a restaurant
             1997      liquor licensee, a licensee may not allow any person to perform or simulate sexual acts
             1998      prohibited by Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral
             1999      copulation, flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or
             2000      genitals, or the displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform
             2001      only upon a stage or at a designated area approved by the commission.
             2002          (b) Nothing in Subsection [(25)] (22)(a) precludes a local authority from being more
             2003      restrictive of acts or conduct of the type prohibited in Subsection [(25)] (22)(a).
             2004          [(26)] (23) A restaurant liquor licensee may not engage in or permit any form of
             2005      gambling, or have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             2006      Part 11, Gambling, on the premises of the restaurant liquor licensee.
             2007          [(27)] (24) (a) Each restaurant liquor licensee shall maintain an expense ledger or
             2008      record showing in detail:
             2009          (i) quarterly expenditures made separately for:


             2010          (A) malt or brewed beverages;
             2011          (B) set-ups;
             2012          (C) liquor;
             2013          (D) food; and
             2014          (E) all other items required by the department; and
             2015          (ii) sales made separately for:
             2016          (A) malt or brewed beverages;
             2017          (B) set-ups;
             2018          (C) food; and
             2019          (D) all other items required by the department.
             2020          (b) The record required by Subsection [(27)] (24)(a) shall be kept:
             2021          (i) in a form approved by the department; and
             2022          (ii) current for each three-month period.
             2023          (c) Each expenditure shall be supported by:
             2024          (i) delivery tickets;
             2025          (ii) invoices;
             2026          (iii) receipted bills;
             2027          (iv) canceled checks;
             2028          (v) petty cash vouchers; or
             2029          (vi) other sustaining data or memoranda.
             2030          [(28) (a) Each] (d) In addition to a ledger or record required under Subsection (24)(a),
             2031      a restaurant liquor licensee shall maintain accounting and other records and documents as the
             2032      department may require.
             2033          [(b)] (e) Any restaurant or person acting for the restaurant, who knowingly forges,
             2034      falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the books of
             2035      account or other documents of the restaurant required to be made, maintained, or preserved by
             2036      this title or the rules of the commission for the purpose of deceiving the commission or the
             2037      department, or any of their officials or employees, is subject to the [immediate] suspension or
             2038      revocation of the restaurant's liquor license and possible criminal prosecution under Chapter
             2039      12, Criminal Offenses.
             2040          [(29)] (25) (a) A restaurant liquor licensee may not close or cease operation for a


             2041      period longer than 240 hours, unless:
             2042          (i) the restaurant liquor [license] licensee notifies the department in writing at least
             2043      seven days before the closing; and
             2044          (ii) the closure or cessation of operation is first approved by the department.
             2045          (b) Notwithstanding Subsection [(29)] (25)(a), in the case of emergency closure,
             2046      immediate notice of closure shall be made to the department by telephone.
             2047          (c) The department may authorize a closure or cessation of operation for a period not to
             2048      exceed 60 days. The department may extend the initial period an additional 30 days upon
             2049      written request of the restaurant licensee and upon a showing of good cause. A closure or
             2050      cessation of operation may not exceed a total of 90 days without commission approval.
             2051          (d) Any notice shall include:
             2052          (i) the dates of closure or cessation of operation;
             2053          (ii) the reason for the closure or cessation of operation; and
             2054          (iii) the date on which the licensee will reopen or resume operation.
             2055          (e) Failure of the licensee to provide notice and to obtain department authorization
             2056      prior to closure or cessation of operation shall result in an automatic forfeiture of:
             2057          (i) the license; and
             2058          (ii) the unused portion of the license fee for the remainder of the license year effective
             2059      immediately.
             2060          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             2061      result in an automatic forfeiture of:
             2062          (i) the license; and
             2063          (ii) the unused portion of the license fee for the remainder of the license year.
             2064          [(30)] (26) Each restaurant liquor licensee shall maintain at least 70% of its total
             2065      restaurant business from the sale of food, which does not include mix for alcoholic beverages
             2066      or service charges.
             2067          [(31) A person may not transfer a]
             2068          (27) A restaurant liquor license may not be transferred from one location to another,
             2069      without prior written approval of the commission.
             2070          [(32)] (28) (a) A person, having been granted a restaurant liquor license may not sell,
             2071      transfer, assign, exchange, barter, give, or attempt in any way to dispose of the license to any


             2072      other person whether for monetary gain or not.
             2073          (b) A restaurant liquor license has no monetary value for the purpose of any type of
             2074      disposition.
             2075          [(33)] (29) Each server of alcoholic beverages in a licensee's establishment shall keep a
             2076      written beverage tab for each table or group that orders or consumes alcoholic beverages on the
             2077      premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
             2078      consumed.
             2079          [(34)] (30) A person's willingness to serve alcoholic beverages may not be made a
             2080      condition of employment as a server with a restaurant that has a restaurant liquor license.
             2081          Section 155. Section 32A-4-201 is amended to read:
             2082           32A-4-201. Commission's power to grant licenses -- Limitations.
             2083          (1) Before [any] an airport lounge may sell or allow the consumption of liquor on its
             2084      premises, it shall first obtain a license from the commission as provided in this part.
             2085          (2) The commission may issue airport lounge liquor licenses for the purpose of
             2086      establishing airport liquor outlets at international airports for the storage, sale, and consumption
             2087      of liquor on premises operated as public airport lounges.
             2088          (3) The total number of airport lounge liquor licenses may not exceed one lounge per
             2089      terminal plus one lounge per concourse located beyond the security point at that international
             2090      airport.
             2091          Section 156. Section 32A-4-202 is amended to read:
             2092           32A-4-202. Application and renewal requirements.
             2093          (1) A person seeking an airport lounge liquor license under this part shall file a written
             2094      application with the department, in a form prescribed by the department, accompanied by:
             2095          (a) a nonrefundable [$1,000] $250 application fee;
             2096          (b) an initial license fee of [$1,000] $7,000, which is refundable if a license is not
             2097      granted;
             2098          (c) written consent of the local and airport authority;
             2099          (d) a copy of the applicant's current business license;
             2100          (e) a bond as specified by Section 32A-4-205 ;
             2101          (f) a floor plan of the airport lounge, including consumption areas and the area where
             2102      the applicant proposes to keep, store, and sell liquor;


             2103          (g) a copy of the sign proposed to be used by the licensee on its premises to inform the
             2104      public that alcoholic beverages are sold and consumed there;
             2105          (h) evidence that the airport lounge is carrying public liability insurance in an amount
             2106      and form satisfactory to the department;
             2107          (i) evidence that the airport lounge is carrying dramshop insurance coverage of at least
             2108      $500,000 per occurrence and $1,000,000 in the aggregate;
             2109          (j) a signed consent form stating that the airport lounge will permit any authorized
             2110      representative of the commission, department, or any law enforcement officer unrestricted right
             2111      to enter the airport lounge;
             2112          (k) in the case of [a corporate] an applicant that is a partnership, corporation, or limited
             2113      liability company, proper verification evidencing that the person or persons signing the airport
             2114      lounge application are authorized to so act on [the corporation's] behalf of the partnership,
             2115      corporation, or limited liability company; and
             2116          (l) any other information the commission or department may require.
             2117          (2) All airport lounge liquor licenses expire on October 31 of each year. Persons
             2118      desiring to renew their airport lounge liquor license shall submit a renewal fee of [$1,000]
             2119      $5,000 and a completed renewal application to the department no later than September 30.
             2120      Failure to meet the renewal requirements shall result in an automatic forfeiture of the license,
             2121      effective on the date the existing license expires. Renewal applications shall be in a form as
             2122      prescribed by the department.
             2123          (3) [If any] To ensure compliance with Subsection 32A-4-206 (21), the commissioner
             2124      may revoke an airport lounge liquor license if the airport liquor licensee does not immediately
             2125      notify the department of any change in:
             2126          (a) ownership of the licensee[, or in the case of];
             2127          (b) for a [Utah] corporate owner [of any change in], the:
             2128          (i) corporate officers or directors[, the commission may suspend or revoke that
             2129      license.]; or
             2130          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             2131      corporation; or
             2132          (c) for a limited liability company:
             2133          (i) managers; or


             2134          (ii) members owning at least 20% of the limited liability company.
             2135          Section 157. Section 32A-4-203 is amended to read:
             2136           32A-4-203. Qualifications.
             2137          (1) (a) The commission may not grant an airport lounge liquor license to [an airport
             2138      lounge whose proprietor] any person who has been convicted of:
             2139          (i) a felony under any federal or state law;
             2140          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             2141      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             2142      [or]
             2143          (iii) any crime involving moral turpitude[.]; or
             2144          (iv) on two or more occasions within the five years before the day on which the license
             2145      is granted, driving under the influence of alcohol, any drug, or the combined influence of
             2146      alcohol and any drug.
             2147          (b) In the case of a partnership [or], corporation, or limited liability company the
             2148      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             2149      offense described in Subsection (1)(a):
             2150          (i) a partner[,];
             2151          (ii) a managing agent[,];
             2152          (iii) a manager;
             2153          (iv) an officer[,];
             2154          (v) a director[, or];
             2155          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             2156      [an] the applicant corporation [has been convicted of any offense as provided in this
             2157      subsection.]; or
             2158          (vii) a member who owns at least 20% of the limited liability company.
             2159          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             2160      supervisory or managerial capacity for an airport lounge has been convicted of any offense
             2161      described in Subsection (1)(a).
             2162          (2) [(a) If any employee or proprietor of an airport lounge liquor licensee is convicted
             2163      of any offense designated in Subsection (1), the] The commission may [take emergency action
             2164      by] immediately [revoking the] suspend or revoke an airport lounge license [according to the


             2165      procedures and requirements of Title 63, Chapter 46b.] if after the day on which the airport
             2166      lounge license is granted, a person described in Subsection (1)(a), (b), or (c):
             2167          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             2168      to the license being granted; or
             2169          (b) on or after the day on which the license is granted:
             2170          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             2171          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the
             2172      combined influence of alcohol and any drug; and
             2173          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             2174      influence of alcohol and any drug within five years before the day on which the person is
             2175      convicted of the offense described in Subsection (2)(b)(ii)(A).
             2176          [(b) In the case of a partnership or corporation that has been granted an airport lounge
             2177      liquor license, if any partner, managing agent, officer, director, or stockholder who holds at
             2178      least 20% of the total issued and outstanding stock of a corporation is convicted of any offense
             2179      designated in Subsection (1), the commission may take emergency action by immediately
             2180      revoking the license according to the procedures and requirements of Title 63, Chapter 46b.]
             2181          (3) [Upon the arrest of any airport lounge liquor licensee on any charge set forth in
             2182      Subsection (1), the] The director may take emergency action by immediately suspending the
             2183      operation of [the licensee] an airport lounge liquor license according to the procedures and
             2184      requirements of Title 63, Chapter 46b, Administrative Procedures Act, for the period during
             2185      which the criminal matter is being adjudicated[.] if a person described in Subsection (1)(a), (b),
             2186      or (c):
             2187          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             2188      or
             2189          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             2190      any drug, or the combined influence of alcohol and any drug; and
             2191          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             2192      influence of alcohol and any drug within five years before the day on which the person is
             2193      arrested on a charge described in Subsection (3)(b)(i).
             2194          (4) (a) (i) The commission may not grant an airport lounge liquor license to any person
             2195      who has had any type of license, agency, or permit issued under this title revoked within the


             2196      last three years.
             2197          (ii) The commission may not grant an airport lounge liquor license to any [corporation
             2198      or partnership] applicant that is a partnership, corporation, or limited liability company if any
             2199      partner, managing agent, manager, officer, director, [or] stockholder who holds at least 20% of
             2200      the total issued and outstanding stock of the applicant corporation, or member who owns at
             2201      least 20% of the applicant limited liability company is or was:
             2202          (A) a partner or managing agent of any partnership[, or is or was] that had any type of
             2203      license, agency, or permit issued under this title revoked within the last three years;
             2204          (B) a managing agent, officer, director, or a stockholder who holds or held at least 20%
             2205      of the total issued and outstanding stock of any corporation that had any type of license,
             2206      agency, or permit issued under this title revoked within the last three years; or
             2207          (C) a manager or member who owns or owned at least 20% of the limited liability
             2208      company that had [a liquor] any type of license, agency, or permit issued under this title
             2209      revoked within the last three years.
             2210          (b) A corporation or partnership applicant may not be granted an airport lounge liquor
             2211      license if any of the following had any type of license, agency, or permit issued under this title
             2212      revoked while acting in that person's individual capacity within the last three years:
             2213          (i) any partner or managing agent of the applicant partnership [or];
             2214          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             2215      total issued and outstanding stock of the [corporate] applicant [had a liquor license, agency, or
             2216      permit revoked while acting in their individual capacity within the last three years.]
             2217      corporation; or
             2218          (iii) any manager or member who owns at least 20% of the applicant limited liability
             2219      company.
             2220          (c) A person acting in an individual capacity may not be granted an airport lounge
             2221      liquor license if that person was:
             2222          (i) a partner or managing agent of a partnership[, or] that had any type of license,
             2223      agency, or permit issued under this title revoked within the last three years;
             2224          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             2225      total issued and outstanding stock of a corporation that had any type of license, agency, or
             2226      permit issued under this title revoked within the last three years; or


             2227          (iii) a manager or member who owns at least 20% of a limited liability company that
             2228      had [a liquor] any type of license, agency, or permit issued under this title revoked within the
             2229      last three years.
             2230          (5) (a) A minor may not be granted an airport lounge liquor license.
             2231          (b) The commission may not grant a airport lounge liquor license to an applicant that is
             2232      a partnership, corporation, or limited liability company if any of the following is a minor:
             2233          (i) a partner or managing agent of the applicant partnership;
             2234          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             2235      total issued and outstanding stock of the applicant corporation; or
             2236          (iii) a manager or member who owns at least 20% of the applicant limited liability
             2237      company.
             2238          (6) If any person to whom a license has been issued under this part no longer possesses
             2239      the qualifications required by this title for obtaining that license, the commission may suspend
             2240      or revoke that license.
             2241          Section 158. Section 32A-4-206 is amended to read:
             2242           32A-4-206. Operational restrictions.
             2243          Each person granted an airport lounge liquor license and the employees and
             2244      management personnel of the airport lounge shall comply with the following conditions and
             2245      requirements. Failure to comply may result in a suspension or revocation of the license or
             2246      other disciplinary action taken against individual employees or management personnel.
             2247          (1) (a) Liquor may not be purchased by an airport lounge liquor licensee except from
             2248      state stores or package agencies.
             2249          (b) Liquor purchased may be transported by the licensee from the place of purchase to
             2250      the licensed premises.
             2251          (c) Payment for liquor shall be made in accordance with the rules established by the
             2252      commission.
             2253          (2) An airport lounge liquor licensee may [not] sell or provide [any] a primary
             2254      spirituous liquor [except in one ounce quantities] only in a quantity not to exceed one ounce
             2255      per beverage dispensed through a calibrated metered dispensing system approved by the
             2256      department in accordance with commission rules adopted under this title, except that:
             2257          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing


             2258      system if used as a secondary flavoring ingredient in a beverage subject to the following
             2259      restrictions:
             2260          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             2261      a spirituous primary liquor;
             2262          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             2263          (iii) the airport lounge liquor licensee shall designate a location where flavorings are
             2264      stored on the floor plan provided to the department; and
             2265          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             2266          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             2267      system if used:
             2268          (i) as a flavoring on desserts; and
             2269          (ii) in the preparation of flaming food dishes, drinks, and desserts; and
             2270          (c) each airport lounge patron may have no more than 2.75 ounces of spirituous liquor
             2271      at a time before the patron.
             2272          [(b) wine] (3) (a) (i) Wine may be sold and served by the glass [in quantities not
             2273      exceeding] or an individual portion not to exceed five ounces per glass[; and] or individual
             2274      portion.
             2275          (ii) An individual portion may be served to a patron in more than one glass as long as
             2276      the total amount of wine does not exceed five ounces.
             2277          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             2278      Subsection (7)(c).
             2279          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             2280      fixed by the commission to tables of four or more persons.
             2281          (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
             2282      the commission to tables of less than four persons.
             2283          (c) A wine service may be performed and a service charge assessed by the airport
             2284      lounge as authorized by commission rule for wine purchased at the airport lounge.
             2285          [(c) heavy] (4) (a) Heavy beer may be served in original containers not exceeding one
             2286      liter at prices fixed by the commission.
             2287          (b) A service charge may be assessed by the airport lounge as authorized by
             2288      commission rule for heavy beer purchased at the airport lounge.


             2289          [(3) (a) Airport lounges] (5) (a) An airport lounge licensed to sell liquor may sell beer
             2290      in any size container not exceeding two liters, and on draft for on-premise consumption
             2291      without obtaining a separate on-premise beer retailer license from the commission.
             2292          (b) [Airport lounges that sell] An airport lounge that sells beer pursuant to Subsection
             2293      [(3)] (5)(a) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             2294      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             2295      inconsistent with or less restrictive than the operational restrictions under this [chapter that
             2296      apply to airport lounges] part.
             2297          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             2298      Licenses, [as set forth in] required by Subsection [(3)] (5)(b) may result in a suspension or
             2299      revocation of the airport lounge's:
             2300          (i) state liquor license; and [its]
             2301          (ii) alcoholic beverage license issued by the local authority.
             2302          [(4) Wine may be served in accordance with commission rule in containers not
             2303      exceeding 750 ml.]
             2304          [(5) (a) Liquor] (6) Alcoholic beverages may not be stored, served, or sold in any place
             2305      other than as designated in the licensee's application, unless the licensee first applies for and
             2306      receives approval from the department for a change of location within the airport lounge.
             2307          [(b)] (7) (a) A patron [or guest] may only make purchases in the airport lounge from
             2308      and be served by a [server] person employed, designated, and trained by the licensee to sell,
             2309      dispense, and serve alcoholic beverages.
             2310          [(c) Alcoholic beverages may not be stored where they are visible to persons outside
             2311      the airport lounge.]
             2312          (b) Notwithstanding Subsection (7)(a), a patron who has purchased bottled wine from
             2313      an employee of the airport lounge may serve wine from the bottle to themselves or others at the
             2314      patron's table.
             2315          (c) Each airport lounge patron may have no more than two alcoholic beverages of any
             2316      kind at a time before the patron.
             2317          [(6)] (8) The liquor storage area shall remain locked at all times other than those hours
             2318      and days when liquor sales and service are authorized by law.
             2319          [(7)] (9) Alcoholic beverages may not be sold [or], offered for sale, served, or


             2320      otherwise furnished at an airport lounge [during the following days or hours: (a) on the day of
             2321      any regular general election, regular primary election, or statewide special election until after
             2322      the polls are closed; and (b)] on any [other] day after 12 midnight and before 8 a.m.
             2323          [(8)] (10) Alcoholic beverages may not be sold, [delivered,] served, or otherwise
             2324      furnished to any:
             2325          (a) minor;
             2326          (b) person actually, apparently, or obviously [drunk] intoxicated;
             2327          (c) known habitual drunkard; or
             2328          (d) known interdicted person.
             2329          (11) (a) (i) Liquor may be sold only at prices fixed by the commission.
             2330          (ii) Liquor may not be sold at discount prices on any date or at any time.
             2331          [(9) Liquor] (b) Alcoholic beverages may not be sold [except at prices fixed by the
             2332      commission. Mixed drinks and wine may not be sold at discount prices on any day or at any
             2333      time.] at less than the cost of the alcoholic beverage to the licensee.
             2334          [(10) An airport lounge patron or guest may have only one alcoholic beverage at a time
             2335      before him.]
             2336          [(11) No more than one ounce of primary liquor may be served to a patron or guest at a
             2337      time, except:]
             2338          [(a) wine as provided in Subsection (2)(b); and]
             2339          [(b) heavy beer as provided in Subsection (2)(c).]
             2340          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             2341      over consumption or intoxication.
             2342          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             2343      hours of the airport lounge's business day such as a "happy hour."
             2344          (e) The sale or service of more than one alcoholic beverage for the price of a single
             2345      alcoholic beverage is prohibited.
             2346          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
             2347      during any set period for a fixed price is prohibited.
             2348          (g) An airport lounge licensee may not engage in a public promotion involving or
             2349      offering free alcoholic beverages to the general public.
             2350          (12) Alcoholic beverages may not be purchased by the licensee, or any employee or


             2351      agent of the licensee, for patrons [or guests] of the airport lounge.
             2352          (13) (a) [Beginning January 1, 1991, a] A person may not bring onto the premises of an
             2353      airport lounge licensee any alcoholic beverage for on-premise consumption.
             2354          (b) [Beginning January 1, 1991, an] An airport lounge or its officers, managers,
             2355      employees, or agents may not allow a person to bring onto the airport lounge premises any
             2356      alcoholic beverage for on-premise consumption or allow consumption of any such alcoholic
             2357      beverage on its premises.
             2358          [(c) Beginning January 1, 1991, if any airport lounge liquor licensee or any of its
             2359      officers, managers, employees, or agents violates Subsection (13):]
             2360          [(i) the commission may immediately suspend or revoke the airport lounge's liquor
             2361      license and the airport lounge liquor licensee is subject to criminal prosecution under Chapter
             2362      12, Criminal Offenses; and]
             2363          [(ii) the local authority may immediately suspend or revoke the airport lounge's local
             2364      liquor license, local consent under Subsection 32A-4-202 (1), or local business license.]
             2365          (14) [Alcoholic beverages purchased from the airport lounge may not be removed from
             2366      the airport lounge premises] An airport lounge licensee and its employees may not permit a
             2367      patron to remove any alcoholic beverages from the airport lounge premises.
             2368          (15) (a) [Minors] A minor may not be employed by an airport lounge licensee to sell or
             2369      dispense alcoholic beverages.
             2370          (b) Notwithstanding Subsection (15)(a), a minor may be employed to enter the sale at a
             2371      cash register or other sales recording device.
             2372          (16) An employee of [a] an airport lounge licensee, while on duty, may not:
             2373          (a) consume an alcoholic beverage; or
             2374          (b) be [under the influence of alcoholic beverages] intoxicated.
             2375          (17) Any charge or fee made in connection with the sale, service, or consumption of
             2376      liquor may be stated in a food or alcoholic beverage menu including:
             2377          (a) a set-up charge;
             2378          (b) a service charge; or
             2379          (c) a chilling fee.
             2380          [(17)] (18) Each airport lounge liquor licensee shall display in a prominent place in the
             2381      airport lounge:


             2382          (a) the liquor license that is issued by the department;
             2383          (b) a list of the types and brand names of liquor being served through its calibrated
             2384      metered dispensing system; and
             2385          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             2386      drugs is a serious crime that is prosecuted aggressively in Utah."
             2387          [(18)] (19) (a) Each airport lounge liquor licensee shall maintain an expense ledger or
             2388      record showing in detail:
             2389          (i) quarterly expenditures made separately for malt or brewed beverages, liquor, and all
             2390      other items required by the department; and
             2391          (ii) sales made separately for malt or brewed beverages, food, and all other items
             2392      required by the department.
             2393          (b) This record shall be kept in a form approved by the department and shall be kept
             2394      current for each three-month period. Each expenditure shall be supported by delivery tickets,
             2395      invoices, receipted bills, canceled checks, petty cash vouchers, or other sustaining data or
             2396      memoranda.
             2397          [(19) Each] (c) In addition to a ledger or record required by Subsection (19)(a), each
             2398      airport lounge liquor licensee shall maintain accounting and other records and documents as the
             2399      department may require.
             2400          (d) Any airport lounge or person acting for the airport lounge, who knowingly forges,
             2401      falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the books of
             2402      account or other documents of the airport lounge required to be made, maintained, or preserved
             2403      by this title or the rules of the commission for the purpose of deceiving the commission or the
             2404      department, or any of their officials or employees, is subject to the immediate suspension or
             2405      revocation of the airport lounge's liquor license and possible criminal prosecution under
             2406      Chapter 12, Criminal Offenses.
             2407          (20) [There shall be no transfer of an] An airport lounge liquor license may not be
             2408      transferred from one location to another, without prior written approval of the commission.
             2409          (21) (a) [A person, having been granted an] An airport lounge liquor [license] licensee,
             2410      may not sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the
             2411      license to any other person, whether for monetary gain or not.
             2412          (b) An airport lounge liquor license has no monetary value for the purpose of any type


             2413      of disposition.
             2414          (22) Each server of alcoholic beverages in a licensee's establishment shall keep a
             2415      written beverage tab for each table or group that orders or consumes alcoholic beverages on the
             2416      premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
             2417      consumed.
             2418          (23) An airport lounge liquor licensee's premises may not be leased for private
             2419      functions.
             2420          (24) An airport lounge liquor licensee may not engage in or permit any form of
             2421      gambling, or have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             2422      Part 11, Gambling, on the premises of the airport lounge liquor licensee.
             2423          Section 159. Section 32A-4-301 is enacted to read:
             2424     
Part 3. Limited Restaurant Licenses

             2425          32A-4-301. Definitions.
             2426          For purposes of this part, wine includes all alcoholic beverages defined as wine under
             2427      27 U.S.C. 211 and 27 C.F.R. Section 4.10 including the following alcoholic beverages made
             2428      in the manner of wine containing not less than 7% and not more than 24% of alcohol by
             2429      volume:
             2430          (1) sparkling and carbonated wine;
             2431          (2) wine made from condensed grape must;
             2432          (3) wine made from other agricultural products than the juice of sound, ripe grapes;
             2433          (4) imitation wine;
             2434          (5) compounds sold as wine;
             2435          (6) vermouth;
             2436          (7) cider;
             2437          (8) perry; and
             2438          (9) sake.
             2439          Section 160. Section 32A-4-302 is enacted to read:
             2440          32A-4-302. Commission's power to grant licenses -- Limitations.
             2441          (1) A restaurant wanting to sell and allow the consumption of only wine, heavy beer,
             2442      and beer on its premises, but not spirituous liquor, must obtain a limited restaurant license from
             2443      the commission as provided in this part before selling or allowing the consumption of wine,


             2444      heavy beer, or beer on its premises.
             2445          (2) (a) Subject to the other provisions of this section, the commission may issue limited
             2446      restaurant licenses for the purpose of establishing limited restaurant outlets at places and in
             2447      numbers the commission considers proper for the storage, sale, and consumption of wine,
             2448      heavy beer, and beer on premises operated as public restaurants.
             2449          (b) The total number of limited restaurant licenses issued under this part may not at any
             2450      time aggregate more than that number determined by dividing the population of the state by
             2451      13,000.
             2452          (c) For purposes of this Subsection (2), population shall be determined by:
             2453          (i) the most recent United States decennial or special census; or
             2454          (ii) any other population determination made by the United States or state
             2455      governments.
             2456          (3) (a) (i) The commission may issue seasonal limited restaurant licenses established in
             2457      areas the commission considers necessary.
             2458          (ii) A seasonal limited restaurant license shall be for a period of six consecutive
             2459      months.
             2460          (b) (i) A limited restaurant license issued for operation during a summer time period is
             2461      known as a "Seasonal A" limited restaurant license. The period of operation for a "Seasonal A"
             2462      limited restaurant license shall:
             2463          (A) begin on May 1; and
             2464          (B) end on October 31.
             2465          (ii) A limited restaurant license issued for operation during a winter time period is
             2466      known as a "Seasonal B" limited restaurant license. The period of operation for a "Seasonal B"
             2467      limited restaurant license shall:
             2468          (A) begin on November 1; and
             2469          (B) end on April 30.
             2470          (iii) In determining the number of limited restaurant licenses that the commission may
             2471      issue under this section:
             2472          (A) a seasonal limited restaurant license is counted as 1/2 of one limited restaurant
             2473      license; and
             2474          (B) each "Seasonal A" limited restaurant license shall be paired with a "Seasonal B"


             2475      limited restaurant license.
             2476          (c) If the location, design, and construction of a hotel may require more than one
             2477      limited restaurant sales location within the hotel to serve the public convenience, the
             2478      commission may authorize the sale of wine, heavy beer, and beer at as many as three limited
             2479      restaurant locations within the hotel under one license if:
             2480          (i) the hotel has a minimum of 150 guest rooms; and
             2481          (ii) all locations under the license are:
             2482          (A) within the same hotel facility; and
             2483          (B) on premises that are:
             2484          (I) managed or operated by the licensee; and
             2485          (II) owned or leased by the licensee.
             2486          (d) Facilities other than hotels shall have a separate limited restaurant license for each
             2487      restaurant where wine, heavy beer, and beer are sold.
             2488          (4) (a) The premises of a limited restaurant license may not be established within 600
             2489      feet of any public or private school, church, public library, public playground, or park, as
             2490      measured by the method in Subsection (5).
             2491          (b) The premises of a limited restaurant license may not be established within 200 feet
             2492      of any public or private school, church, public library, public playground, or park, measured in
             2493      a straight line from the nearest entrance of the proposed outlet to the nearest property boundary
             2494      of the public or private school, church, public library, public playground, or park.
             2495          (c) The restrictions contained in Subsections (4)(a) and (b) govern unless one of the
             2496      following exemptions applies:
             2497          (i) with respect to the establishment of a limited restaurant license in any location, the
             2498      commission may authorize a variance to reduce the proximity requirements of Subsection
             2499      (4)(a) or (b) if:
             2500          (A) the local governing authority has granted its written consent to the variance;
             2501          (B) alternative locations for establishing a limited restaurant license in the community
             2502      are limited;
             2503          (C) a public hearing has been held in the city, town, or county, and where practical in
             2504      the neighborhood concerned; and
             2505          (D) after giving full consideration to all of the attending circumstances and the policies


             2506      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             2507      license would not be detrimental to the public health, peace, safety, and welfare of the
             2508      community; or
             2509          (ii) with respect to the premises of any limited restaurant license issued by the
             2510      commission that undergoes a change of ownership, the commission may waive or vary the
             2511      proximity requirements of Subsections (4)(a) and (b) in considering whether to grant a limited
             2512      restaurant license to the new owner of the premises if:
             2513          (A) the premises previously received a variance reducing the proximity requirements of
             2514      Subsection (4)(a) or (b); or
             2515          (B) a variance from proximity or distance requirement was otherwise allowed under
             2516      this title.
             2517          (5) With respect to any public or private school, church, public library, public
             2518      playground, or park, the 600 foot limitation is measured from the nearest entrance of the outlet
             2519      by following the shortest route of ordinary pedestrian travel to the property boundary of the
             2520      public or private school, church, public library, public playground, school playground, or park.
             2521          (6) (a) Nothing in this section prevents the commission from considering the proximity
             2522      of any educational, religious, and recreational facility, or any other relevant factor in reaching a
             2523      decision on a proposed location.
             2524          (b) For purposes of this Subsection (6), "educational facility" includes:
             2525          (i) a nursery school;
             2526          (ii) an infant day care center; and
             2527          (iii) a trade and technical school.
             2528          Section 161. Section 32A-4-303 is enacted to read:
             2529          32A-4-303. Application and renewal requirements.
             2530          (1) A person seeking a limited restaurant license under this part shall file a written
             2531      application with the department, in a form prescribed by the department. The application shall
             2532      be accompanied by:
             2533          (a) a nonrefundable $250 application fee;
             2534          (b) an initial license fee of $500, which is refundable if a license is not granted;
             2535          (c) written consent of the local authority;
             2536          (d) a copy of the applicant's current business license;


             2537          (e) evidence of proximity to any public or private school, church, public library, public
             2538      playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
             2539      Subsections 32A-4-302 (4) and (5), the application shall be processed in accordance with those
             2540      subsections;
             2541          (f) a bond as specified by Section 32A-4-306 ;
             2542          (g) a floor plan of the restaurant, including:
             2543          (i) consumption areas; and
             2544          (ii) the area where the applicant proposes to keep, store, and sell wine, heavy beer, and
             2545      beer;
             2546          (h) evidence that the restaurant is carrying public liability insurance in an amount and
             2547      form satisfactory to the department;
             2548          (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
             2549      $500,000 per occurrence and $1,000,000 in the aggregate;
             2550          (j) a signed consent form stating that the restaurant will permit any authorized
             2551      representative of the commission, department, or any law enforcement officer unrestricted right
             2552      to enter the restaurant;
             2553          (k) in the case of an applicant that is a partnership, corporation, or limited liability
             2554      company, proper verification evidencing that the person or persons signing the restaurant
             2555      application are authorized to so act on behalf of the partnership, corporation, or limited liability
             2556      company; and
             2557          (l) any other information the commission or department may require.
             2558          (2) A holder of a restaurant liquor license or a private club license on May 5, 2003,
             2559      may not be required to pay the application or initial license fees for a limited restaurant license
             2560      under this chapter if the licensee:
             2561          (a) surrenders the restaurant liquor license or private club license before being granted
             2562      a limited restaurant license; and
             2563          (b) applies for a limited restaurant license in calendar year 2003:
             2564          (i) for the same premises for which the restaurant liquor license or private club license
             2565      was granted; and
             2566          (ii) before the expiration of the restaurant liquor license or private club license.
             2567          (3) (a) All limited restaurant licenses expire on October 31 of each year.


             2568          (b) Persons desiring to renew their limited restaurant license shall submit:
             2569          (i) a renewal fee of $300; and
             2570          (ii) renewal application to the department no later than September 30.
             2571          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             2572      the license effective on the date the existing license expires.
             2573          (d) Renewal applications shall be in a form as prescribed by the department.
             2574          (4) To ensure compliance with Subsection 32A-4-307 (27), the commission may
             2575      suspend or revoke a limited restaurant license if the limited restaurant licensee does not
             2576      immediately notify the department of any change in:
             2577          (a) ownership of the restaurant;
             2578          (b) for a corporate owner, the:
             2579          (i) corporate officer or directors; or
             2580          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             2581      corporation; or
             2582          (c) for a limited liability company:
             2583          (i) managers; or
             2584          (ii) members owning at least 20% of the limited liability company.
             2585          Section 162. Section 32A-4-304 is enacted to read:
             2586          32A-4-304. Qualifications.
             2587          (1) (a) The commission may not grant a limited restaurant license to any person who
             2588      has been convicted of:
             2589          (i) a felony under any federal or state law;
             2590          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             2591      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             2592          (iii) any crime involving moral turpitude; or
             2593          (iv) on two or more occasions within the five years before the day on which the license
             2594      is granted, driving under the influence of alcohol, any drug, or the combined influence of
             2595      alcohol and any drug.
             2596          (b) In the case of a partnership, corporation, or limited liability company, the
             2597      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             2598      offense described in Subsection (1)(a):


             2599          (i) a partner;
             2600          (ii) a managing agent;
             2601          (iii) a manager;
             2602          (iv) an officer;
             2603          (v) a director;
             2604          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             2605      the applicant corporation; or
             2606          (vii) a member who owns at least 20% of the applicant limited liability company.
             2607          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             2608      supervisory or managerial capacity for the limited restaurant has been convicted of any offense
             2609      described in Subsection (1)(a).
             2610          (2) The commission may immediately suspend or revoke a limited restaurant license if
             2611      after the day on which the limited restaurant license is granted, a person described in
             2612      Subsection (1)(a), (b), or (c):
             2613          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             2614      to the license being granted; or
             2615          (b) on or after the day on which the license is granted:
             2616          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             2617          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the
             2618      combined influence of alcohol and any drug; and
             2619          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             2620      influence of alcohol and any drug within five years before the day on which the person is
             2621      convicted of the offense described in Subsection (2)(b)(ii)(A).
             2622          (3) The director may take emergency action by immediately suspending the operation
             2623      of the limited restaurant license according to the procedures and requirements of Title 63,
             2624      Chapter 46b, Administrative Procedures Act, for the period during which the criminal matter is
             2625      being adjudicated if a person described in Subsection (1)(a), (b), or (c):
             2626          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii) or (iii);
             2627      or
             2628          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             2629      any drug, or the combined influence of alcohol and any drug; and


             2630          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             2631      influence of alcohol and any drug within five years before the day on which the person is
             2632      arrested on a charge described in Subsection (3)(b)(i).
             2633          (4) (a) (i) The commission may not grant a limited restaurant license to any person who
             2634      has had any type of license, agency, or permit issued under this title revoked within the last
             2635      three years.
             2636          (ii) The commission may not grant a limited restaurant license to an applicant that is a
             2637      partnership, corporation, or limited liability company if any partner, managing agent, manager,
             2638      officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
             2639      of an applicant corporation, or member who owns at least 20% of an applicant limited liability
             2640      company is or was:
             2641          (A) a partner or managing agent of any partnership that had any type of license, agency,
             2642      or permit issued under this title revoked within the last three years;
             2643          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             2644      of the total issued and outstanding stock of any corporation that had any type of license,
             2645      agency, or permit issued under this title revoked within the last three years; or
             2646          (C) a manager or member of any limited liability company who owns or owned at least
             2647      20% of a limited liability company that had any type of license, agency, or permit issued under
             2648      this title revoked within the last three years.
             2649          (b) An applicant that is a partnership, corporation, or limited liability company may not
             2650      be granted a limited restaurant license if any of the following had any type of license, agency,
             2651      or permit issued under this title revoked while acting in their individual capacity within the last
             2652      three years:
             2653          (i) any partner or managing agent of the applicant partnership;
             2654          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             2655      total issued and outstanding stock of the applicant corporation; or
             2656          (iii) any manager or member who owns at least 20% of the applicant limited liability
             2657      company.
             2658          (c) A person acting in an individual capacity may not be granted a limited restaurant
             2659      license if that person was:
             2660          (i) a partner or managing agent of a partnership that had any type of license, agency, or


             2661      permit issued under this title revoked within the last three years;
             2662          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             2663      total issued and outstanding stock of a corporation that had any type of license, agency, or
             2664      permit issued under this title revoked within the last three years; or
             2665          (iii) a manager or member of a limited liability company who owned at least 20% of
             2666      the limited liability company that had any type of license, agency, or permit issued under this
             2667      title revoked within the last three years.
             2668          (5) (a) A minor may not be granted a limited restaurant license.
             2669          (b) The commission may not grant a limited restaurant license to an applicant that is a
             2670      partnership, corporation, or limited liability company if any of the following is a minor:
             2671          (i) a partner or managing agent of the applicant partnership;
             2672          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             2673      total issued and outstanding stock of the applicant corporation; or
             2674          (iii) a manager or member who owns at least 20% of the applicant limited liability
             2675      company.
             2676          (6) If any person to whom a license has been issued under this part no longer possesses
             2677      the qualifications required by this title for obtaining that license, the commission may suspend
             2678      or revoke that license.
             2679          Section 163. Section 32A-4-305 is enacted to read:
             2680          32A-4-305. Commission and department duties before granting licenses.
             2681          (1) (a) Before a limited restaurant license may be granted by the commission, the
             2682      department shall conduct an investigation and may hold public hearings for the purpose of
             2683      gathering information and making recommendations to the commission as to whether or not a
             2684      license should be granted.
             2685          (b) The department shall forward the information and recommendations described in
             2686      Subsection (1)(a) to the commission to aid in the commission's determination.
             2687          (2) Before issuing any limited restaurant license, the commission shall:
             2688          (a) determine that the applicant has complied with all basic qualifications and
             2689      requirements for making application for a license as provided by Sections 32A-4-302 and
             2690      32A-4-303 ;
             2691          (b) determine that the application is complete;


             2692          (c) consider the locality within which the proposed limited restaurant outlet is located,
             2693      including:
             2694          (i) physical characteristics such as:
             2695          (A) the condition of the premises;
             2696          (B) square footage; and
             2697          (C) parking availability; and
             2698          (ii) operational factors such as:
             2699          (A) tourist traffic;
             2700          (B) proximity to and density of other state stores, package agencies, and outlets;
             2701          (C) demographics;
             2702          (D) population to be served; and
             2703          (E) the extent of and proximity to any school, church, public library, public
             2704      playground, or park;
             2705          (d) consider the applicant's ability to manage and operate a limited restaurant license,
             2706      including:
             2707          (i) management experience;
             2708          (ii) past retail liquor experience; and
             2709          (iii) the type of management scheme employed by the restaurant;
             2710          (e) consider the nature or type of restaurant operation, including:
             2711          (i) the type of menu items offered and emphasized;
             2712          (ii) whether the restaurant emphasizes service to an adult clientele or to minors;
             2713          (iii) the hours of operation;
             2714          (iv) the seating capacity of the facility; and
             2715          (v) the gross sales of food items; and
             2716          (f) consider any other factors or circumstances the commission considers necessary.
             2717          Section 164. Section 32A-4-306 is enacted to read:
             2718          32A-4-306. Bond.
             2719          (1) Each limited restaurant licensee shall post a cash or corporate surety bond in the
             2720      penal sum of $5,000 payable to the department, which the licensee has procured and must
             2721      maintain for so long as the licensee continues to operate as a limited restaurant licensee.
             2722          (2) The bond shall be in a form approved by the attorney general, conditioned upon the


             2723      licensee's faithful compliance with this title and the rules of the commission.
             2724          (3) (a) If the $5,000 surety bond is canceled due to the licensee's negligence, a $300
             2725      reinstatement fee may be assessed.
             2726          (b) No part of any cash or corporate bond so posted may be withdrawn during the
             2727      period the license is in effect, or while revocation proceedings are pending against the licensee.
             2728          (c) A bond filed by a licensee may be forfeited if the license is finally revoked.
             2729          Section 165. Section 32A-4-307 is enacted to read:
             2730          32A-4-307. Operational restrictions.
             2731          Each person granted a limited restaurant license and the employees and management
             2732      personnel of the restaurant shall comply with the following conditions and requirements.
             2733      Failure to comply may result in a suspension or revocation of the license or other disciplinary
             2734      action taken against individual employees or management personnel.
             2735          (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
             2736      except from state stores or package agencies.
             2737          (b) Wine and heavy beer purchased in accordance with Subsection (1)(a) may be
             2738      transported by the licensee from the place of purchase to the licensed premises.
             2739          (c) Payment for wine and heavy beer shall be made in accordance with rules
             2740      established by the commission.
             2741          (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of
             2742      spirituous liquor on the premises of the restaurant.
             2743          (b) Spirituous liquor may not be on the premises of the restaurant except for use:
             2744          (i) as a flavoring on desserts; and
             2745          (ii) in the preparation of flaming food dishes, drinks, and desserts.
             2746          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             2747      exceed five ounces per glass or individual portion.
             2748          (ii) An individual portion may be served to a patron in more than one glass as long as
             2749      the total amount of wine does not exceed five ounces.

             2750          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             2751      Subsection (7)(c).

             2752          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             2753      fixed by the commission to tables of four or more persons.


             2754          (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
             2755      the commission to tables of less than four persons.
             2756          (c) A wine service may be performed and a service charge assessed by the limited
             2757      restaurant as authorized by commission rule for wine purchased at the limited restaurant.
             2758          (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
             2759      fixed by the commission.
             2760          (b) A service charge may be assessed by the limited restaurant as authorized by
             2761      commission rule for heavy beer purchased at the restaurant.
             2762          (5) (a) A limited restaurant licensee may sell beer in any size container not exceeding
             2763      two liters, and on draft for on-premise consumption without obtaining a separate on-premise
             2764      beer retailer license from the commission.
             2765          (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a) shall
             2766      comply with all appropriate operational restrictions under Chapter 10, Beer Retailer Licenses,
             2767      that apply to on-premise beer retailers except when those restrictions are inconsistent with or
             2768      less restrictive than the operational restrictions under this part.
             2769          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             2770      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             2771      restaurant's:
             2772          (i) limited restaurant license; and
             2773          (ii) alcoholic beverage license issued by the local authority.
             2774          (6) Wine, heavy beer, and beer may not be stored, served, or sold in any place other
             2775      than as designated in the licensee's application, unless the licensee first applies for and receives
             2776      approval from the department for a change of location within the restaurant.
             2777          (7) (a) A patron may only make alcoholic beverage purchases in the limited restaurant
             2778      from and be served by a person employed, designated, and trained by the licensee to sell and
             2779      serve alcoholic beverages.
             2780          (b) Notwithstanding Subsection (7)(a), a patron who has purchased bottled wine from
             2781      an employee of the restaurant or has carried bottled wine onto the premises of the restaurant
             2782      pursuant to Subsection (13) may thereafter serve wine from the bottle to themselves or others at
             2783      the patron's table.
             2784          (c) Each restaurant patron may have no more than two alcoholic beverages of any kind


             2785      at a time before the patron.
             2786          (8) The alcoholic beverage storage area shall remain locked at all times other than
             2787      those hours and days when alcoholic beverage sales are authorized by law.
             2788          (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
             2789      furnished at a limited restaurant during the following days or hours:
             2790          (i) until after the polls are closed on the day of any:
             2791          (A) regular general election;
             2792          (B) regular primary election; or
             2793          (C) statewide special election;
             2794          (ii) on the day of any municipal, special district, or school election, but only:
             2795          (A) within the boundaries of the municipality, special district, or school district; and
             2796          (B) if closure is required by local ordinance; and
             2797          (iii) on any other day after 12 midnight and before 12 noon.
             2798          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             2799      Licenses, for on-premise beer licensees.
             2800          (10) Alcoholic beverages may not be sold except in connection with an order of food
             2801      prepared, sold, and served at the restaurant.
             2802          (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to any:
             2803          (a) minor;
             2804          (b) person actually, apparently, or obviously intoxicated;
             2805          (c) known habitual drunkard; or
             2806          (d) known interdicted person.
             2807          (12) (a) (i) Wine and heavy beer may be sold only at prices fixed by the commission.
             2808          (ii) Wine and heavy beer may not be sold at discount prices on any date or at any time.
             2809          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverages
             2810      to the licensee.
             2811          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             2812      over-consumption or intoxication.
             2813          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             2814      hours of the limited restaurant's business day such as a "happy hour."
             2815          (e) The sale or service of more than one alcoholic beverage for the price of a single


             2816      alcoholic beverage is prohibited.
             2817          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
             2818      during any set period for a fixed price is prohibited.
             2819          (g) A limited restaurant licensee may not engage in a public promotion involving or
             2820      offering free alcoholic beverages to the general public.
             2821          (13) Alcoholic beverages may not be purchased by the licensee, or any employee or
             2822      agent of the licensee, for a patron of the restaurant.
             2823          (14) (a) A person may not bring onto the premises of a limited restaurant licensee any
             2824      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             2825      discretion of the licensee, bottled wine onto the premises of any limited restaurant licensee for
             2826      on-premise consumption.
             2827          (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or its
             2828      officers, managers, employees, or agents may not allow:
             2829          (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
             2830      consumption; or
             2831          (ii) consumption of any alcoholic beverage described in Subsection (14)(b)(i) on its
             2832      premises.
             2833          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             2834      or other representative of the licensee upon entering the restaurant.
             2835          (d) A wine service may be performed and a service charge assessed by the restaurant as
             2836      authorized by commission rule for wine carried in by a patron.
             2837          (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and its
             2838      employees may not permit a restaurant patron to carry from the restaurant premises an open
             2839      container that:
             2840          (i) is used primarily for drinking purposes; and
             2841          (ii) contains any alcoholic beverage.
             2842          (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
             2843      contents of a bottle of wine if before removal the bottle has been recorked or recapped.
             2844          (16) (a) A minor may not be employed by a limited restaurant licensee to sell or
             2845      dispense alcoholic beverages.
             2846          (b) Notwithstanding Subsection (16)(a), a minor may be employed to enter the sale at a


             2847      cash register or other sales recording device.
             2848          (17) An employee of a limited restaurant licensee, while on duty, may not:
             2849          (a) consume an alcoholic beverage; or
             2850          (b) be intoxicated.
             2851          (18) A charge or fee made in connection with the sale, service, or consumption of wine
             2852      or heavy beer may be stated in food or alcoholic beverage menus including:
             2853          (a) a service charge; or
             2854          (b) a chilling fee.
             2855          (19) Each limited restaurant licensee shall display in a prominent place in the
             2856      restaurant:
             2857          (a) the license that is issued by the department; and
             2858          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             2859      drugs is a serious crime that is prosecuted aggressively in Utah."
             2860          (20) The following acts or conduct in a restaurant licensed under this part are
             2861      considered contrary to the public welfare and morals, and are prohibited upon the premises:
             2862          (a) employing or using any person in the sale or service of alcoholic beverages while
             2863      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             2864      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             2865      buttocks, vulva, or genitals;
             2866          (b) employing or using the services of any person to mingle with the patrons while the
             2867      person is unclothed or in attire, costume, or clothing described in Subsection (20)(a);
             2868          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             2869      buttocks, anus, or genitals of any other person;
             2870          (d) permitting any employee or person to wear or use any device or covering, exposed
             2871      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
             2872          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             2873      the prohibited activities described in this Subsection (20);
             2874          (f) permitting any person to remain in or upon the premises who exposes to public
             2875      view any portion of that person's genitals or anus; or
             2876          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             2877      depicting:


             2878          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             2879      copulation, flagellation, or any sexual acts prohibited by Utah law;
             2880          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             2881      genitals;
             2882          (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             2883      drawings are used to portray, any of the prohibited activities described in this Subsection (20);
             2884      or
             2885          (iv) scenes wherein a person displays the vulva, anus, or the genitals.
             2886          (21) Nothing in Subsection (20) precludes a local authority from being more restrictive
             2887      of acts or conduct of the type prohibited in Subsection (20).
             2888          (22) (a) Although live entertainment is permitted on the premises of a limited
             2889      restaurant licensee, a licensee may not allow any person to perform or simulate sexual acts
             2890      prohibited by Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral
             2891      copulation, flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or
             2892      genitals, or the displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform
             2893      only upon a stage or at a designated area approved by the commission.
             2894          (b) Nothing in Subsection (22)(a) precludes a local authority from being more
             2895      restrictive of acts or conduct of the type prohibited in Subsection (22)(a).
             2896          (23) A limited restaurant licensee may not engage in or permit any form of gambling,
             2897      or have any video gaming device, as defined and proscribed by Title 76, Chapter 10, Part 11,
             2898      Gambling, on the premises of the restaurant.
             2899          (24) (a) Each limited restaurant licensee shall maintain an expense ledger or record
             2900      showing in detail:
             2901          (i) quarterly expenditures made separately for:
             2902          (A) wine;
             2903          (B) heavy beer;
             2904          (C) beer;
             2905          (D) food; and
             2906          (E) all other items required by the department; and
             2907          (ii) sales made separately for:
             2908          (A) wine;


             2909          (B) heavy beer;
             2910          (C) beer;
             2911          (D) food; and
             2912          (E) all other items required by the department.
             2913          (b) The record required by Subsection (24)(a) shall be kept:
             2914          (i) in a form approved by the department; and
             2915          (ii) current for each three-month period.
             2916          (c) Each expenditure shall be supported by:
             2917          (i) delivery tickets;
             2918          (ii) invoices;
             2919          (iii) receipted bills;
             2920          (iv) canceled checks;
             2921          (v) petty cash vouchers; or
             2922          (vi) other sustaining data or memoranda.
             2923          (d) In addition to the ledger or record maintained under Subsections (24)(a) through
             2924      (c), a limited restaurant licensee shall maintain accounting and other records and documents as
             2925      the department may require.
             2926          (e) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,
             2927      alters, cancels, destroys, conceals, or removes the entries in any of the books of account or
             2928      other documents of the restaurant required to be made, maintained, or preserved by this title or
             2929      the rules of the commission for the purpose of deceiving the commission or department, or any
             2930      of their officials or employees, is subject to the suspension or revocation of the limited
             2931      restaurant's license and possible criminal prosecution under Chapter 12, Criminal Offenses.
             2932          (25) (a) A limited restaurant licensee may not close or cease operation for a period
             2933      longer than 240 hours, unless:
             2934          (i) the limited restaurant licensee notifies the department in writing at least seven days
             2935      before the closing; and
             2936          (ii) the closure or cessation of operation is first approved by the department.
             2937          (b) Notwithstanding Subsection (25)(a), in the case of emergency closure, immediate
             2938      notice of closure shall be made to the department by telephone.
             2939          (c) (i) Subject to Subsection (25)(c)(iii), the department may authorize a closure or


             2940      cessation of operation for a period not to exceed 60 days.
             2941          (ii) The department may extend the initial period an additional 30 days upon:
             2942          (A) written request of the limited restaurant licensee; and
             2943          (B) a showing of good cause.
             2944          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             2945      commission approval.
             2946          (d) Any notice required by Subsection (25)(a) shall include:
             2947          (i) the dates of closure or cessation of operation;
             2948          (ii) the reason for the closure or cessation of operation; and
             2949          (iii) the date on which the licensee will reopen or resume operation.
             2950          (e) Failure of the licensee to provide notice and to obtain department authorization
             2951      before closure or cessation of operation shall result in an automatic forfeiture of:
             2952          (i) the license; and
             2953          (ii) the unused portion of the license fee for the remainder of the license year effective
             2954      immediately.
             2955          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             2956      result in an automatic forfeiture of:
             2957          (i) the license; and
             2958          (ii) the unused portion of the license fee for the remainder of the license year.
             2959          (26) Each limited restaurant licensee shall maintain at least 70% of its total restaurant
             2960      business from the sale of food, which does not include service charges.
             2961          (27) A limited restaurant license may not be transferred from one location to another,
             2962      without prior written approval of the commission.
             2963          (28) (a) A limited restaurant license may not sell, transfer, assign, exchange, barter,
             2964      give, or attempt in any way to dispose of the license to any other person whether for monetary
             2965      gain or not.
             2966          (b) A limited restaurant license has no monetary value for the purpose of any type of
             2967      disposition.
             2968          (29) (a) Each server of wine, heavy beer, and beer in a limited restaurant licensee's
             2969      establishment shall keep a written beverage tab for each table or group that orders or consumes
             2970      alcoholic beverages on the premises.


             2971          (b) The beverage tab required by Subsection (29)(a) shall list the type and amount of
             2972      alcoholic beverages ordered or consumed.
             2973          (30) A limited restaurant licensee may not make a person's willingness to serve
             2974      alcoholic beverages a condition of employment as a server with the restaurant.
             2975          Section 166. Section 32A-4-401 is enacted to read:
             2976     
Part 4. On-Premise Banquet License

             2977          32A-4-401. Commission's power to grant licenses -- Limitations.
             2978          (1) (a) Beginning May 5, 2003, and ending June 30, 2005, the commission may issue
             2979      an on-premise banquet license to any of the following persons for the purpose of allowing the
             2980      storage, sale, service, and consumption of alcoholic beverages in connection with that person's
             2981      banquet and room service activities:
             2982          (i) hotel;
             2983          (ii) resort facility;
             2984          (iii) sports center; or
             2985          (iv) convention center.
             2986          (b) This chapter is not intended to prohibit liquor on the premises of a person listed in
             2987      Subsection (1) to the extent otherwise permitted by this title.
             2988          (2) (a) Subject to this section, the total numbe