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S.B. 153 Enrolled

                 

ALCOHOLIC BEVERAGE AMENDMENTS

                 
2003 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: John L. Valentine

                  Ron Allen                   This act modifies the Alcoholic Beverage Control Title including technical changes. The
                  act modifies definitions. The act modifies provisions related to the administration of the
                  title by the Alcoholic Beverage Control Commission and the Department of Alcoholic
                  Beverage Control. The act modifies provisions related to state stores. The act modifies
                  provisions related to package agencies. The act modifies provisions related to restaurant
                  liquor licenses and airport lounge liquor licenses. The act enacts provisions providing for
                  limited restaurant licenses. The act enacts provisions providing for on-premise banquet
                  licenses. The act modifies provisions related to private club licenses including the
                  creation of classes of private club licenses. The act modifies provisions related to special
                  use permits. The act amends provisions related to single event permits. The act modifies
                  provisions related to manufacturing licenses, local industry representative licenses, and
                  warehousing licenses. The act modifies provisions related to beer retail and wholesale
                  licenses and enacts provisions providing for temporary special event beer permits. The
                  act modifies provisions related to criminal offenses including restrictions on sales,
                  purchase, possession, and consumption of alcoholic beverages or products; restrictions on
                  operations; restrictions on advertising; restrictions on transportation and distribution of
                  alcoholic beverages or products; and restrictions on trade practices. This act repeals
                  provisions in the Sunset Act related to wine mark-ups. The act enacts the Nuisance
                  Licensees Act. This act appropriates for fiscal year 2002-03 only, $325,900 from the
                  Liquor Control Fund to the Department of Alcoholic Beverage Control and $62,000 from
                  the General Fund to the Driver License Division of the Department of Public Safety.
                  Subject to future budget constraints, as an ongoing appropriation, this act appropriates
                  for fiscal year 2003-04, $1,893,000 from the Liquor Control Fund to the Department of
                  Alcoholic Beverage Control and $811,000 from the General Fund to the Liquor Law


                  Enforcement Unit of the Department of Public Safety. This act contains a coordination
                  clause that includes, subject to future budget constraints, an ongoing appropriation of
                  $700,000 for fiscal year 2003-04 from the Liquor Control Fund.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      32A-1-102, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-1-104, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-1-105, as last amended by Chapter 161, Laws of Utah 2002
                      32A-1-107, as last amended by Chapter 282, Laws of Utah 2002
                      32A-1-109, as last amended by Chapter 20, Laws of Utah 1993
                      32A-1-111, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-1-113, as last amended by Chapter 1, Laws of Utah 2000
                      32A-1-116, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-1-119, as last amended by Chapter 79, Laws of Utah 1996
                      32A-1-122, as last amended by Chapter 24, Laws of Utah 1995
                      32A-1-123, as enacted by Chapter 132, Laws of Utah 1991
                      32A-1-401, as last amended by Chapter 8, Laws of Utah 2002, Fifth Special Session
                      32A-2-101, as last amended by Chapter 132, Laws of Utah 1991
                      32A-2-103, as last amended by Chapter 282, Laws of Utah 2002
                      32A-3-101, as last amended by Chapter 354, Laws of Utah 2001
                      32A-3-102, as last amended by Chapter 1, Laws of Utah 2000
                      32A-3-103, as last amended by Chapter 132, Laws of Utah 1991
                      32A-3-106, as last amended by Chapter 282, Laws of Utah 2002
                      32A-3-108, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-4-101, as last amended by Chapter 87, Laws of Utah 2002
                      32A-4-102, as last amended by Chapters 1 and 197, Laws of Utah 2000
                      32A-4-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-4-105, as last amended by Chapter 132, Laws of Utah 1991

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                      32A-4-106, as last amended by Chapter 282, Laws of Utah 2002
                      32A-4-201, as last amended by Chapter 19, Laws of Utah 1993
                      32A-4-202, as last amended by Chapters 1 and 197, Laws of Utah 2000
                      32A-4-203, as enacted by Chapter 23, Laws of Utah 1990
                      32A-4-206, as last amended by Chapter 282, Laws of Utah 2002
                      32A-5-101, as last amended by Chapter 132, Laws of Utah 1991
                      32A-5-102, as last amended by Chapters 1 and 197, Laws of Utah 2000
                      32A-5-103, as last amended by Chapter 30, Laws of Utah 1992
                      32A-5-104, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-5-107, as last amended by Chapter 282, Laws of Utah 2002
                      32A-6-102, as last amended by Chapter 132, Laws of Utah 1991
                      32A-6-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-6-105, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-6-201, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-6-202, as last amended by Chapter 282, Laws of Utah 2002
                      32A-6-301, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-6-401, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-6-501, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-7-101, as last amended by Chapter 88, Laws of Utah 1994
                      32A-7-102, as last amended by Chapter 1, Laws of Utah 2000
                      32A-7-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-7-104, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-7-106, as last amended by Chapter 127, Laws of Utah 1998
                      32A-8-101, as last amended by Chapters 77 and 88, Laws of Utah 1994
                      32A-8-102, as last amended by Chapter 1, Laws of Utah 2000
                      32A-8-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-8-106, as last amended by Chapter 1, Laws of Utah 2000
                      32A-8-501, as enacted by Chapter 20, Laws of Utah 1993

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                      32A-8-502, as last amended by Chapter 1, Laws of Utah 2000
                      32A-8-503, as enacted by Chapter 20, Laws of Utah 1993
                      32A-8-505, as last amended by Chapter 1, Laws of Utah 2000
                      32A-9-102, as last amended by Chapter 1, Laws of Utah 2000
                      32A-9-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-9-106, as last amended by Chapter 1, Laws of Utah 2000
                      32A-10-101, as last amended by Chapter 132, Laws of Utah 1991
                      32A-10-102, as last amended by Chapters 77 and 88, Laws of Utah 1994
                      32A-10-201, as last amended by Chapter 87, Laws of Utah 2002
                      32A-10-202, as last amended by Chapters 1 and 197, Laws of Utah 2000
                      32A-10-203, as enacted by Chapter 23, Laws of Utah 1990
                      32A-10-205, as enacted by Chapter 23, Laws of Utah 1990
                      32A-10-206, as last amended by Chapter 282, Laws of Utah 2002
                      32A-11-101, as last amended by Chapters 77 and 88, Laws of Utah 1994
                      32A-11-102, as last amended by Chapter 1, Laws of Utah 2000
                      32A-11-103, as last amended by Chapter 88, Laws of Utah 1994
                      32A-11-106, as last amended by Chapter 1, Laws of Utah 2000
                      32A-11a-106, as enacted by Chapter 328, Laws of Utah 1998
                      32A-12-103, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-12-105, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-12-201, as last amended by Chapter 20, Laws of Utah 1993
                      32A-12-203, as last amended by Chapter 20, Laws of Utah 1995
                      32A-12-204, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-12-207, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-12-209, as last amended by Chapter 365, Laws of Utah 1997
                      32A-12-210, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-12-212, as last amended by Chapter 132, Laws of Utah 1991
                      32A-12-213, as last amended by Chapter 141, Laws of Utah 1998

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                      32A-12-215, as last amended by Chapter 241, Laws of Utah 1991
                      32A-12-216, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-12-218, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-12-301, as last amended by Chapter 241, Laws of Utah 1991
                      32A-12-305, as last amended by Chapter 1, Laws of Utah 2000
                      32A-12-306, as last amended by Chapter 1, Laws of Utah 2000
                      32A-12-307, as last amended by Chapter 1, Laws of Utah 2000
                      32A-12-308, as last amended by Chapter 1, Laws of Utah 2000
                      32A-12-401, as last amended by Chapter 132, Laws of Utah 1991
                      32A-12-501, as last amended by Chapter 141, Laws of Utah 1998
                      32A-12-504, as last amended by Chapter 170, Laws of Utah 1996
                      32A-12-505, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-12-601, as enacted by Chapter 20, Laws of Utah 1993
                      32A-12-602, as enacted by Chapter 20, Laws of Utah 1993
                      32A-12-603, as last amended by Chapter 141, Laws of Utah 1998
                      32A-12-604, as last amended by Chapter 88, Laws of Utah 1994
                      32A-12-605, as last amended by Chapter 88, Laws of Utah 1994
                      32A-12-606, as enacted by Chapter 20, Laws of Utah 1993
                  ENACTS:
                      32A-4-301, Utah Code Annotated 1953
                      32A-4-302, Utah Code Annotated 1953
                      32A-4-303, Utah Code Annotated 1953
                      32A-4-304, Utah Code Annotated 1953
                      32A-4-305, Utah Code Annotated 1953
                      32A-4-306, Utah Code Annotated 1953
                      32A-4-307, Utah Code Annotated 1953
                      32A-4-401, Utah Code Annotated 1953
                      32A-4-402, Utah Code Annotated 1953

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                      32A-4-403, Utah Code Annotated 1953
                      32A-4-404, Utah Code Annotated 1953
                      32A-4-405, Utah Code Annotated 1953
                      32A-4-406, Utah Code Annotated 1953
                      32A-4-407, Utah Code Annotated 1953
                      32A-6-502, Utah Code Annotated 1953
                      32A-6-503, Utah Code Annotated 1953
                      32A-6-603, Utah Code Annotated 1953
                      32A-10-301, Utah Code Annotated 1953
                      32A-10-302, Utah Code Annotated 1953
                      32A-10-303, Utah Code Annotated 1953
                      32A-10-304, Utah Code Annotated 1953
                      32A-10-305, Utah Code Annotated 1953
                      32A-10-306, Utah Code Annotated 1953
                      32A-12-222, Utah Code Annotated 1953
                      32A-15a-101, Utah Code Annotated 1953
                      32A-15a-102, Utah Code Annotated 1953
                      32A-15a-103, Utah Code Annotated 1953
                      32A-15a-201, Utah Code Annotated 1953
                      32A-15a-202, Utah Code Annotated 1953
                      32A-15a-203, Utah Code Annotated 1953
                      63-55b-132, Utah Code Annotated 1953
                  REPEALS:
                      32A-1-501, as enacted by Chapter 20, Laws of Utah 1993
                      32A-1-502, as enacted by Chapter 20, Laws of Utah 1993
                      32A-1-503, as enacted by Chapter 20, Laws of Utah 1993
                      32A-1-504, as last amended by Chapter 1, Laws of Utah 2000
                      32A-4-107, as renumbered and amended by Chapter 23, Laws of Utah 1990

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                      32A-4-207, as enacted by Chapter 23, Laws of Utah 1990
                      32A-5-105, as last amended by Chapters 132 and 241, Laws of Utah 1991
                      32A-5-108, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      32A-12-309, as last amended by Chapter 241, Laws of Utah 1991
                      32A-12-503, as renumbered and amended by Chapter 23, Laws of Utah 1990
                      63-55-232, as last amended by Chapter 175, Laws of Utah 1998
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 32A-1-102 is amended to read:
                       32A-1-102. Application of title.
                      [(1) Each license or permit issued by the former liquor control commission before July 1,
                  1985, shall continue in effect until either revoked by the commission for a violation of this title,
                  or voluntarily relinquished by the licensee or permittee.]
                      [(2) Each violation or offense committed before July 1, 1985, shall be governed by the
                  law, statutory and nonstatutory, existing when the violation of the title was committed. A
                  defense or limitation on punishment under this title shall be available to any defendant tried or
                  retried after July 1, 1985. If any of the elements of the offense occurred before July 1, 1985, the
                  offense is considered committed before July 1, 1985.]
                      [(3) The provisions of this] (1) This title [govern] governs alcoholic beverage control in
                  this state except where local authorities are expressly granted regulatory control by this title.
                      (2) Nothing in this title precludes local authorities from regulating the sale, storage,
                  service, or consumption of alcoholic beverages if [such] that regulation does not conflict with the
                  provisions of this title.
                      Section 2. Section 32A-1-104 is amended to read:
                       32A-1-104. Policy.
                      The policies of the state are:
                      (1) The administration of this title shall be nonpartisan and free of partisan political
                  influence.
                      (2) Alcoholic beverage control shall be operated as a public business using sound

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                  management principles and practices. The business shall be governed by a commission and
                  operated by a department. The business shall function with the intent of servicing the public
                  demand for alcoholic beverages.
                      (3) The commission and department may not promote or encourage the sale or
                  consumption of alcoholic beverages.
                      (4) The commission shall conduct, license, and regulate the sale of alcoholic beverages
                  in a manner and at prices that:
                      (a) reasonably satisfy the public demand and protect the public interest, including the
                  rights of citizens who do not wish to be involved with alcoholic products[.]; and
                      (b) will promote the reduction of the harmful effects of over consumption of alcoholic
                  beverages by adults and consumption of alcoholic beverages by minors.
                      Section 3. Section 32A-1-105 is amended to read:
                       32A-1-105. Definitions.
                      As used in this title:
                      (1) "Airport lounge" means a place of business licensed to sell alcoholic beverages, at
                  retail, for consumption on its premises located at an international airport with a United States
                  Customs office on its premises.
                      (2) "Alcoholic beverages" means "beer" and "liquor" as the terms are defined in this
                  section.
                      (3) (a) "Alcoholic products" means all products that contain at least 63/100 of 1% of
                  alcohol by volume or at least 1/2 of 1% by weight, and are obtained by fermentation, infusion,
                  decoction, brewing, distillation, or any other process that uses any liquid or combinations of
                  liquids, whether drinkable or not, to create alcohol in an amount greater than the amount
                  prescribed in this Subsection (3)(a).
                      (b) "Alcoholic products" does not include common extracts, vinegars, ciders, essences,
                  tinctures, food preparations, or over-the-counter drugs and medicines that otherwise come within
                  this definition.
                      (4) "Banquet" means an event:

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                      (a) for which there is a contract:
                      (i) between any person and a person listed in Subsection (4)(b); and
                      (ii) under which a person listed in Subsection (4)(b) is required to provide alcoholic
                  beverages at the event;
                      (b) held at one or more designated locations approved by the commission in or on the
                  premises of a:
                      (i) hotel;
                      (ii) resort facility;
                      (iii) sports center; or
                      (iv) convention center; and
                      (c) at which food and alcoholic beverages may be sold and served.
                      (5) "Bar" means a counter or similar structure:
                      (a) at which alcoholic beverages are:
                      (i) stored; or
                      (ii) dispensed; or
                      (b) from which alcoholic beverages are served.
                      [(4)] (6) (a) "Beer" means [all products that contain] any product that contains:
                      (i) 63/100 of 1% of alcohol by volume or 1/2 of 1% of alcohol by weight, but not more
                  than 4% of alcohol by volume or 3.2% by weight[,]; and [are]
                      (ii) is obtained by fermentation, infusion, or decoction of any malted grain.
                      (b) Beer may or may not contain hops or other vegetable products.
                      (c) Beer includes [products] a product that:
                      (i) contains alcohol in the percentages described in Subsection (6)(a); and
                      (ii) is referred to as:
                      (A) malt liquor[,];
                      (B) malted beverages[,]; or
                      (C) malt coolers.
                      [(5)] (7) (a) "Beer retailer" means any business establishment that is:

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                      (i) engaged, primarily or incidentally, in the retail sale [or distribution] of beer to public
                  patrons, whether for consumption on or off the establishment's premises[,]; and [that is]
                      (ii) licensed to sell beer by:
                      (A) the commission[, by];
                      (B) a local authority[,]; or
                      (C) both the commission and a local authority.
                      (b) (i) "On-premise beer retailer" means any beer retailer engaged, primarily or
                  incidentally, in the sale [or distribution] of beer to public patrons for consumption on the beer
                  retailer's premises.
                      (ii) "On-premise beer retailer" includes [taverns] a tavern.
                      [(c) (i) "Tavern" means any business establishment engaged primarily in the retail sale or
                  distribution of beer to public patrons for consumption on the establishment's premises, and that is
                  licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.]
                      [(ii) "Tavern" includes a beer bar, parlor, lounge, cabaret, and night club where the
                  revenue from the sale of beer exceeds the revenue of the sale of food, although food need not be
                  sold in the establishment.]
                      [(6)] (8) "Billboard" means any public display used to advertise including:
                      (a) a light device[,];
                      (b) a painting[,];
                      (c) a drawing[,];
                      (d) a poster[,];
                      (e) a sign[,];
                      (f) a signboard[,]; or
                      (g) a scoreboard[, or other similar public display used to advertise, but does not include:].
                      [(a) displays on beer delivery vehicles if the displays do not overtly promote the
                  consumption of alcoholic beverages;]
                      [(b) displays in taverns and private clubs, if the displays are not visible to persons
                  off-premises;]

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                      [(c) point-of-sale displays, other than light devices, in retail establishments that sell beer
                  for off-premise consumption, if the displays are not visible to persons off-premises;]
                      [(d) private business signs on the premises of any business engaged primarily in the
                  distribution of beer;]
                      [(e) newspapers, magazines, circulars, programs, or other similar printed materials, if the
                  materials are not directed primarily to minors;]
                      [(f) menu boards in retail establishments that sell beer for on-premise consumption if the
                  menu boards also contain food items;]
                      [(g) handles on alcoholic beverage dispensing equipment that identify brands of products
                  being dispensed; and]
                      [(h) displays at the site of a temporary special event for which a single event liquor
                  permit has been obtained from the commission or a temporary special event beer permit has been
                  obtained from a local authority to inform attendees of the location where alcoholic beverages are
                  being dispensed.]
                      [(7)] (9) "Brewer" means any person engaged in manufacturing beer[, malt liquor, or
                  malted beverages].
                      (10) "Cash bar" means the service of alcoholic beverages:
                      (a) at:
                      (i) a banquet; or
                      (ii) a temporary event for which a permit is issued under this title; and
                      (b) if an attendee at the banquet or special event is charged for the alcoholic beverage.
                      [(8)] (11) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided
                  by a bus company to a group of persons pursuant to a common purpose, under a single contract,
                  and at a fixed charge in accordance with the bus company's tariff, for the purpose of giving the
                  group of persons the exclusive use of the bus and a driver to travel together to a specified
                  destination or destinations.
                      [(9)] (12) "Church" means a building:
                      (a) set apart [primarily] for the purpose of worship;

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                      (b) in which religious services are held;
                      (c) with which clergy is associated; and
                      [(d) the main body of which is kept for that use and not put to any other use inconsistent
                  with its primary purpose; and]
                      [(e)] (d) which is tax exempt under the laws of this state.
                      [(10)] (13) "Club" and "private club" means [any nonprofit corporation operating as a
                  social club, recreational, fraternal, or athletic association, or kindred association] any of the
                  following organized primarily for the benefit of its [stockholders or] members[.]:
                      (a) a social club;
                      (b) a recreational association;
                      (c) a fraternal association;
                      (d) an athletic association; or
                      (e) a kindred association.
                      [(11)] (14) "Commission" means the Alcoholic Beverage Control Commission.
                      [(12) "Cork-finished wine" means a container of wine stopped by a cork and finished by
                  foil, lead, or other substance by the manufacturer.]
                      (15) "Convention center" is as defined by rule by the commission.
                      [(13)] (16) "Department" means the Department of Alcoholic Beverage Control.
                      [(14)] (17) "Distressed merchandise" means any alcoholic beverage in the possession of
                  the department that is saleable, but for some reason is unappealing to the public.
                      [(15)] (18) "General food store" means any business establishment primarily engaged in
                  selling food and grocery supplies to public patrons for off-premise consumption.
                      [(16) "Governing body" means the board of not fewer than five shareholders or voting
                  members of a private club who have been elected and authorized to control or conduct the
                  business and affairs of that club.]
                      [(17)] (19) "Guest" means a person accompanied by an active member or visitor of a club
                  who enjoys only those privileges derived from the host for the duration of the visit to the club.
                      [(18)] (20) (a) "Heavy beer" means [all products that contain] any product that:

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                      (i) contains more than 4% alcohol by volume; and
                      (ii) is obtained by fermentation, infusion, or decoction of any malted grain.
                      (b) "Heavy beer" is considered "liquor" for the purposes of this title.
                      (21) "Hosted bar" means the service of alcoholic beverages:
                      (a) without charge; and
                      (b) at a:
                      (i) banquet; or
                      (ii) privately hosted event.
                      (22) "Hotel" is as defined by rule by the commission.
                      [(19)] (23) "Identification card" means the identification card issued under Title 53,
                  Chapter 3, Part 8, Identification Card Act.
                      [(20)] (24) "Interdicted person" means a person to whom the sale, gift, or provision of an
                  alcoholic beverage is prohibited by:
                      (a) law; or
                      (b) court order.
                      (25) "Intoxicated" means that to a degree that is unlawful under Section 76-9-701 a
                  person is under the influence of:
                      (a) an alcoholic beverage;
                      (b) a controlled substance;
                      (c) a substance having the property of releasing toxic vapors; or
                      (d) a combination of Subsections (25)(a) through (c).
                      [(21)] (26) "Licensee" means any person issued a license by the commission to sell,
                  manufacture, store, or allow consumption of alcoholic beverages on premises owned or
                  controlled by the person.
                      [(22)] (27) "Limousine" means any motor vehicle licensed by the state or a local
                  authority, other than a bus or taxicab:
                      (a) in which the driver and passengers are separated by a partition, glass, or other barrier;
                  and

- 13 -


                      (b) that is provided by a company to an individual or individuals at a fixed charge in
                  accordance with the company's tariff for the purpose of giving the individual or individuals the
                  exclusive use of the limousine and a driver to travel to a specified destination or destinations.
                      [(23)] (28) (a) "Liquor" means alcohol, or any alcoholic, [spiritous] spirituous, vinous,
                  fermented, malt, or other liquid, or combination of liquids, a part of which is [spiritous]
                  spirituous, vinous, or fermented, and all other drinks, or drinkable liquids that contain more than
                  1/2 of 1% of alcohol by volume and is suitable to use for beverage purposes.
                      (b) "Liquor" does not include any beverage defined as a beer, malt liquor, or malted
                  beverage that has an alcohol content of less than 4% alcohol by volume.
                      [(24)] (29) "Local authority" means:
                      (a) the [county legislative] governing body of the county if the premises are located in an
                  unincorporated area of a county; or
                      (b) the governing body of the city or town if the premises are located in an incorporated
                  city or a town.
                      [(25)] (30) "Manufacture" means to distill, brew, rectify, mix, compound, process,
                  ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
                  others.
                      [(26)] (31) "Member" means a person who, after paying regular dues, has full privileges
                  of a club under this title.
                      [(27)] (32) "Minor" means any person under the age of 21 years.
                      [(28)] (33) "Outlet" means a location other than a state store or package agency where
                  alcoholic beverages are sold pursuant to a license issued by the commission.
                      [(29)] (34) "Package" means any container, bottle, vessel, or other receptacle containing
                  liquor.
                      [(30)] (35) "Package agency" means a retail liquor location operated under a contractual
                  agreement with the department, by a person other than the state, who is authorized by the
                  commission to sell package liquor for consumption off the premises of the agency.
                      [(31)] (36) "Package agent" means any person permitted by the commission to operate a

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                  package agency pursuant to a contractual agreement with the department to sell liquor from
                  premises that the package agent shall provide and maintain.
                      [(32)] (37) "Permittee" means any person issued a permit by the commission to perform
                  acts or exercise privileges as specifically granted in the permit.
                      [(33)] (38) "Person" means any individual, partnership, firm, corporation, limited
                  liability company, association, business trust, or other form of business enterprise, including a
                  receiver or trustee, and the plural as well as the singular number, unless the intent to give a more
                  limited meaning is disclosed by the context.
                      [(34)] (39) "Policy" means a statement of principles established by the commission to
                  guide the administration of this title and the management of the affairs of the department.
                      [(35)] (40) "Premises" means any building, enclosure, room, or equipment used in
                  connection with the sale, storage, service, manufacture, distribution, or consumption of alcoholic
                  products, unless otherwise defined in this title or in the rules adopted by the commission.
                      [(36)] (41) "Prescription" means a writing in legal form, signed by a physician or dentist
                  and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
                      [(37)] (42) (a) "Privately hosted event" or "private social function" means a specific
                  social, business, or recreational event for which an entire room, area, or hall has been leased or
                  rented, in advance by an identified group, and the event or function is limited in attendance to
                  people who have been specifically designated and their guests.
                      (b) "Privately hosted event" and "private social function" does not include events or
                  functions to which the general public is invited, whether for an admission fee or not.
                      [(38)] (43) "Proof of age" means:
                      (a) an identification card;
                      (b) an identification that:
                      (i) is substantially similar to an identification card;
                      (ii) is issued in accordance with the laws of a state other than Utah in which the
                  identification is issued;
                      (iii) includes date of birth; and

- 15 -


                      (iv) has a picture affixed;
                      (c) a valid driver license certificate that:
                      (i) includes date of birth;
                      (ii) has a picture affixed; and
                      (iii) is issued:
                      (A) under Title 53, Chapter 3, Uniform Driver License Act; or
                      (B) in accordance with the laws of the state in which it is issued;
                      (d) a military identification card that:
                      (i) includes date of birth; and
                      (ii) has a picture affixed; or
                      (e) a valid passport.
                      [(39)] (44) (a) "Public building" means any building or permanent structure owned or
                  leased by the state, a county, or local government entity that is used for:
                      (i) public education;
                      (ii) transacting public business; or
                      (iii) regularly conducting government activities.
                      (b) "Public building" does not mean or refer to any building owned by the state or a
                  county or local government entity when the building is used by anyone, in whole or in part, for
                  proprietary functions.
                      [(40)] (45) "Representative" means an individual who is compensated by salary,
                  commission, or any other means for representing and selling the alcoholic beverage products of a
                  manufacturer, supplier, or importer of liquor, wine, or heavy beer.
                      [(41)] (46) "Residence" means the person's principal place of abode within Utah.
                      (47) "Resort facility" is as defined by rule by the commission.
                      [(42)] (48) "Restaurant" means any business establishment:
                      (a) where a variety of foods is prepared and complete meals are served to the general
                  public;
                      (b) located on a premises having adequate culinary fixtures for food preparation and

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                  dining accommodations; and
                      (c) that is engaged primarily in serving meals to the general public.
                      [(43)] (49) "Retailer" means any person engaged in the sale or distribution of alcoholic
                  beverages to the consumer.
                      (50) "Room service" includes service of alcoholic beverages to a guest room of a:
                      (a) hotel; or
                      (b) resort facility.
                      [(44)] (51) (a) (i) "Rule" means a general statement adopted by the commission:
                      (A) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act; and
                      (B) (I) to guide the activities of those regulated or employed by the department[,];
                      (II) to implement or interpret this title[,]; or
                      (III) to describe the organization, procedure, or practice requirements of the department
                  in order to carry out the intent of the law and ensure its uniform application. [This definition]
                      (ii) "Rule" includes any amendment or repeal of a prior rule.
                      (b) "Rule" does not include a rule concerning only the internal management of the
                  department that does not affect private rights or procedures available to the public, including
                  intradepartmental memoranda.
                      [(45)] (52) (a) "Sample" includes:
                      (i) a department [samples] sample; and
                      (ii) an industry representative [samples; and] sample.
                      [(iii) department trade show samples.]
                      (b) "Department sample" means liquor, wine, and heavy beer that has been placed in the
                  possession of the department for testing, analysis, and sampling.
                      [(c) "Department trade show sample" means liquor, wine, and heavy beer that has been
                  placed in the possession of the department for use in a trade show conducted by the department.]
                      [(d)] (c) "Industry representative sample" means liquor, wine, and heavy beer that has
                  been placed in the possession of the department for testing, analysis, and sampling by local
                  industry representatives on the premises of the department to educate themselves of the quality

- 17 -


                  and characteristics of the product.
                      [(e) "Retail licensee wine tasting" means cork-finished wine checked out under the
                  procedures provided in Section 32A-12-603 :]
                      [(i) to a local industry representative holding a license described in Section 32A-8-501 ;]
                      [(ii) to conduct the tasting of cork-finished wines to a retail licensee licensed to sell wine
                  at retail for consumption on its premises; and]
                      [(iii) for the purpose of disseminating information and educating the retail licensees
                  described in Subsection (45)(e)(ii) as to the quality and characteristics of the cork-finished
                  wines.]
                      [(46)] (53) (a) "School" means any building used primarily for the general education of
                  minors.
                      (b) "School" does not include:
                      (i) a nursery [schools,] school;
                      (ii) an infant day care [centers,] center; or
                      (iii) a trade or technical [schools] school.
                      [(47)] (54) "Sell," "sale," and "to sell" means any transaction, exchange, or barter
                  whereby, for any consideration, an alcoholic beverage is either directly or indirectly transferred,
                  solicited, ordered, delivered for value, or by any means or under any pretext is promised or
                  obtained, whether done by a person as a principal, proprietor, or as an agent, servant, or
                  employee, unless otherwise defined in this title or the rules made by the commission.
                      [(48)] (55) "Small brewer" means a brewer who manufactures less than 60,000 barrels of
                  beer and heavy beer per year.
                      (56) (a) "Spirituous liquor" means liquor that is distilled.
                      (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
                  U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
                      (57) "Sports center" is as defined by rule by the commission.
                      [(49)] (58) (a) "State label" means the official label designated by the commission
                  affixed to all liquor containers sold in the state.

- 18 -


                      (b) "State label" includes the department identification mark and inventory control
                  number.
                      [(50)] (59) (a) "State store" means a facility for the sale of package liquor:
                      (i) located on premises owned or leased by the state; and
                      (ii) operated by state employees.
                      (b) "State store" does not apply to any:
                      (i) licensee[,];
                      (ii) permittee[,]; or [to]
                      (iii) package [agencies] agency.
                      [(51)] (60) "Supplier" means any person selling alcoholic beverages to the department.
                      (61) (a) "Tavern" means any business establishment that is:
                      (i) engaged primarily in the retail sale of beer to public patrons for consumption on the
                  establishment's premises; and
                      (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
                      (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
                  revenue of the sale of food, although food need not be sold in the establishment:
                      (i) a beer bar;
                      (ii) a parlor;
                      (iii) a lounge;
                      (iv) a cabaret; or
                      (v) a nightclub.
                      [(52)] (62) "Temporary domicile" means the principal place of abode within Utah of a
                  person who does not have a present intention to continue residency within Utah permanently or
                  indefinitely.
                      [(53)] (63) "Unsaleable liquor merchandise" means merchandise that:
                      (a) is unsaleable because [it] the merchandise is unlabeled, leaky, damaged, difficult to
                  open, or partly filled[, or];
                      (b) is in a container:

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                      (i) having faded labels or defective caps or corks[, or];
                      (ii) in which the contents are cloudy, spoiled, or chemically determined to be impure[,];
                  or
                      (iii) that contains:
                      (A) sediment[,]; or
                      (B) any foreign substance[,]; or
                      (c) is otherwise considered by the department as unfit for sale.
                      [(54)] (64) "Visitor" means [a person holding] an individual that in accordance with
                  Section 32A-5-107 holds limited privileges in a private club by virtue of a visitor card [purchased
                  from the club and authorized by a sponsoring member of the club].
                      [(55)] (65) "Warehouser" means any person, other than a licensed manufacturer, engaged
                  in the importation for sale, storage, or distribution of liquor regardless of amount.
                      [(56)] (66) "Wholesaler" means any person engaged in the importation for sale, or in the
                  sale of beer in wholesale or jobbing quantities to retailers, other than a small brewer selling beer
                  manufactured by that brewer.
                      [(57)] (67) (a) "Wine" means any alcoholic beverage obtained by the fermentation of the
                  natural sugar content of fruits, plants, honey, or milk, or any other like substance, whether or not
                  other ingredients are added.
                      (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise provided
                  in this title.
                      Section 4. Section 32A-1-107 is amended to read:
                       32A-1-107. Powers and duties of the commission.
                      (1) The commission shall:
                      (a) act as a general policymaking body on the subject of alcoholic product control;
                      (b) adopt and issue policies, directives, rules, and procedures;
                      (c) set policy by written rules that establish criteria and procedures for:
                      (i) granting, denying, suspending, or revoking permits, licenses, and package agencies;
                      (ii) controlling liquor merchandise inventory including:

- 20 -


                      (A) listing and delisting products;
                      (B) the procedures for testing new products;
                      (C) purchasing policy;
                      (D) turnover requirements for regularly coded products to be continued; and
                      (E) the disposition of discontinued, distressed, or unsaleable merchandise; and
                      (iii) determining the location of state stores, package agencies, and outlets; [and]
                      [(iv) department trade shows;]
                      (d) decide within the limits and under the conditions imposed by this title, the number
                  and location of state stores, package agencies, and outlets established in the state;
                      (e) issue, grant, deny, suspend, [or] revoke, or not review the following permits, licenses,
                  and package agencies for the purchase, sale, storage, service, manufacture, distribution, and
                  consumption of alcoholic products:
                      (i) package agencies;
                      (ii) restaurant licenses;
                      (iii) airport lounge licenses;
                      (iv) limited restaurant licenses;
                      (v) beginning on July 1, 2003 and ending June 30, 2005, on-premise banquet licenses;
                      [(iv)] (vi) private club licenses;
                      [(v)] (vii) on-premise beer retailer licenses;
                      (viii) temporary special event beer permits;
                      [(vi)] (ix) special use permits;
                      [(vii)] (x) single event permits;
                      [(viii)] (xi) manufacturing licenses;
                      [(ix)] (xii) liquor warehousing licenses; and
                      [(x)] (xiii) beer wholesaling licenses;
                      (f) fix prices at which liquors are sold that are the same at all state stores, package
                  agencies, and outlets;
                      (g) issue and distribute price lists showing the price to be paid by purchasers for each

- 21 -


                  class, variety, or brand of liquor kept for sale by the department;
                      (h) require the director to follow sound management principles and require periodic
                  reporting from the director to ensure that these principles are being followed and that policies
                  established by the commission are being observed;
                      (i) receive, consider, and act in a timely manner upon all reports, recommendations, and
                  matters submitted by the director to the commission, and do all things necessary to support the
                  department in properly performing its duties and responsibilities;
                      (j) obtain temporarily and for special purposes the services of experts and persons
                  engaged in the practice of a profession or who possess any needed skills, talents, or abilities if
                  considered expedient and if approved by the governor;
                      (k) prescribe the duties of departmental officials authorized to issue permits and licenses
                  [and to conduct trade shows] under this title;
                      (l) prescribe, consistent with this title, the fees payable for permits, licenses, and package
                  agencies issued under this title, or for anything done or permitted to be done under this title;
                      (m) prescribe the conduct, management, and equipment of any premises upon which
                  alcoholic beverages may be sold, consumed, served, or stored;
                      (n) make rules governing the credit terms of beer sales to retailers within the state; and
                      (o) require that each state store, package agency, licensee, and permittee, where required
                  in this title, display in a prominent place a sign in large letters stating: "Warning: Driving under
                  the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah."
                      (2) The power of the commission to establish state stores, to create package agencies and
                  grant authority to operate package agencies, and to grant or deny licenses and permits is plenary,
                  except as otherwise provided by this title, and is not subject to review.
                      (3) The commission may appoint qualified hearing officers to conduct any suspension or
                  revocation hearings required by law.
                      (4) (a) In any case where the commission is given the power to suspend any license or
                  permit, it may impose a fine in addition to or in lieu of suspension. Fines imposed may not
                  exceed $25,000 in the aggregate for any single Notice of Agency Action.

- 22 -


                      (b) The commission shall promulgate, by rule, a schedule setting forth a range of fines
                  for each violation.
                      Section 5. Section 32A-1-109 is amended to read:
                       32A-1-109. Powers and duties of the director.
                      Subject to the powers and responsibilities vested in the commission by this title the
                  director shall:
                      (1) prepare and propose to the commission general policies, directives, rules, and
                  procedures governing the administrative activities of the department and may submit other
                  recommendations to the commission as the director considers in the interest of its or the
                  department's business;
                      (2) within the general policies, directives, rules, and procedures of the commission,
                  provide day-to-day direction, coordination, and delegation of responsibilities in the
                  administrative activities of the department's business and promulgate internal department
                  policies, directives, rules, and procedures relating to department personnel matters, and the
                  day-to-day operation of the department;
                      (3) appoint or employ personnel as considered necessary in the administration of this title
                  and prescribe the conditions of their employment, define their respective duties and powers, fix
                  their remuneration in accordance with Title 67, Chapter 19, Utah State Personnel Management
                  Act, and designate those employees required to give bonds and specify the bond amounts;
                      (4) establish and secure adherence to a system of reports, controls, and performance in all
                  matters relating to personnel, security, department property management, and operation of
                  department offices, warehouses, state stores, package agencies, and licensees;
                      (5) within the policies, directives, rules, and procedures approved by the commission and
                  provisions of law, buy, import, keep for sale, sell and control the sale, storage, service,
                  transportation, and delivery of alcoholic products;
                      (6) prepare for commission approval:
                      (a) recommendations regarding the location, establishment, relocation, and closure of
                  state stores and package agencies;

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                      (b) recommendations regarding the issuance, suspension, nonrenewal, and revocation of
                  licenses and permits;
                      (c) annual budgets, proposed legislation, and reports as required by law and sound
                  business principles;
                      (d) plans for reorganizing divisions of the department and their functions;
                      (e) manuals containing all commission and department policies, directives, rules, and
                  procedures;
                      (f) an inventory control system;
                      (g) any other reports and recommendations as may be requested by the commission;
                      (h) rules governing the credit terms of beer sales to beer retailer licensees;
                      (i) rules governing the calibration, maintenance, and regulation of calibrated metered
                  dispensing systems;
                      (j) rules governing the posting of a list of types and brand names of liquor being served
                  through calibrated metered dispensing systems;
                      (k) price lists issued and distributed showing the price to be paid for each class, variety,
                  or brand of liquor kept for sale at state stores, package agencies, and outlets;
                      (l) directives prescribing the books of account kept by the department and by state stores,
                  package agencies, and outlets;
                      (m) an official state label and the manner in which the label shall be affixed to every
                  package of liquor sold under this title; and
                      (n) a policy prescribing the manner of giving and serving notices required by this title or
                  rules made under this title; [and]
                      [(o) rules governing department trade shows;]
                      (7) make available through the department to any person, upon request, a copy of any
                  policy or directive promulgated by the director;
                      (8) adopt internal departmental policies, directives, rules, and procedures relating to
                  department personnel matters and the day-to-day operation of the department that are consistent
                  with those of the commission;

- 24 -


                      (9) keep a current copy of the manuals containing the rules and policies of the
                  department and commission available for public inspection; [and]
                      (10) (a) after consultation with the governor, determine whether alcoholic products
                  should not be sold, offered for sale, or otherwise furnished in an area of the state during a period
                  of emergency that is proclaimed by the governor to exist in that area; and
                      (b) issue any necessary public announcements and directives with respect to the
                  determination described in Subsection (10)(a); and
                      [(10)] (11) perform other duties required by the commission and by law.
                      Section 6. Section 32A-1-111 is amended to read:
                       32A-1-111. Department employees -- Requirements.
                      (1) (a) The commission may prescribe by policy, directive, or rule the qualifications of
                  persons employed by the department, subject to this title.
                      (b) A person may not obtain employment with the department [who] if that person has
                  been convicted of:
                      [(a) convicted of] (i) a felony under any federal or state law;
                      [(b) convicted of] (ii) any violation of any federal or state law or local ordinance
                  concerning the sale, manufacture, distribution, warehousing, adulteration, or transportation of
                  alcoholic beverages; [or]
                      [(c) convicted of] (iii) any crime involving moral turpitude[.]; or
                      (iv) on two or more occasions within the five years before the day on which the
                  employee is hired by the department, driving under the influence of alcohol, any drug, or the
                  combined influence of alcohol and any drug.
                      (2) [If any employee of the department is convicted of any offense as provided in
                  Subsection (1), the] The director may terminate [the] an employee or take other disciplinary
                  action consistent with Title 67, Chapter 19, [the] Utah State Personnel Management Act[.] if
                  after the day on which the employee is hired by the department, the employee of the department:
                      (a) is found to have been convicted of any offense described in Subsection (1)(b) before
                  being hired by the department; or

- 25 -


                      (b) on or after the day on which the employee is hired:
                      (i) is convicted of an offense described in Subsection (1)(b)(i), (ii), or (iii); or
                      (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug; and
                      (B) was convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug within five years before the day on which the person is
                  convicted of the offense described in Subsection (2)(b)(ii)(A).
                      (3) The director may immediately suspend an employee of the department for the period
                  during which the criminal matter is being adjudicated if the employee:
                      (a) is arrested on a charge for an offense described in Subsection (1)(b)(i), (ii), or (iii); or
                      (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
                  any drug, or the combined influence of alcohol and any drug; and
                      (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug within five years before the day on which the person is arrested
                  on a charge described in Subsection (3)(b)(i).
                      [(3)] (4) (a) A person who seeks employment with the department shall file with the
                  department an application under oath or affirmation in a form prescribed by the commission.
                      (b) The commission may not require information designating the color, race, or creed of
                  [the] an applicant.
                      (c) Upon receiving an application the department shall determine whether the applicant
                  is:
                      (i) of good moral character; and [is]
                      (ii) qualified for the position sought.
                      (d) The selection of applicants for employment or advancement with the department shall
                  be in accordance with Title 67, Chapter 19, [the] Utah State Personnel Management Act.
                      [(4) A package agent or licensee or any employee of a package agent or a licensee is]
                      (5) The following are not considered an employee of the department[.]:
                      (a) a package agent;

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                      (b) a licensee;
                      (c) an employee of a package agent; or
                      (d) an employee of a licensee.
                      [(5) Minors] (6) A minor may not be employed by the department to:
                      (a) work in:
                      (i) any state liquor store; or
                      (ii) departmental warehouse[,]; or [to]
                      (b) engage in any activity involving the handling of alcoholic beverages.
                      Section 7. Section 32A-1-113 is amended to read:
                       32A-1-113. Department expenditures and revenues -- Liquor Control Fund --
                  Exempt from Division of Finance -- Annual audits.
                      (1) (a) All money received by the department in the administration of this title, except as
                  otherwise provided, together with all property acquired, administered, possessed, or received by
                  the department, is the property of the state. Money received in the administration of this title
                  shall be paid to the department and transferred into the state treasury to the credit of the Liquor
                  Control Fund.
                      (b) All expenses, debts, and liabilities incurred by the department in connection with the
                  administration of this title shall be paid from the Liquor Control Fund.
                      (c) The fiscal officers of the department shall transfer annually from the Liquor Control
                  Fund to the General Fund a sum equal to the amount of net profit earned from the sale of liquor
                  since the preceding transfer of funds. The transfer shall be made within 90 days of the end of the
                  department's fiscal year on June 30.
                      (2) (a) Deposits made by the department shall be made to banks designated as state
                  depositories and reported to the state treasurer at the end of each day.
                      (b) Any member of the commission and any employee of the department is not
                  personally liable for any loss caused by the default or failure of depositories.
                      (c) All funds deposited in any bank or trust company are entitled to the same priority of
                  payment as other public funds of the state.

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                      (3) All expenditures necessary for the administration of this title, including the payment
                  of all salaries, premiums, if any, on bonds of the commissioners, the director, and the department
                  staff in all cases where bonds are required, and all other expenditures incurred in establishing,
                  operating, and maintaining state stores and package agencies and in the administration of this
                  title, shall be paid by warrants drawn on the state treasurer paid out of the Liquor Control Fund.
                      (4) If the cash balance of the Liquor Control Fund is not adequate to cover the warrants
                  drawn against it by the state treasurer, the cash resources of the General Fund may be utilized to
                  the extent necessary. However, at no time may the fund equity of the Liquor Control Fund fall
                  below zero.
                      (5) (a) When any check issued in payment of any fees or costs authorized or required by
                  this title is returned to the department as dishonored[,]:
                      (i) the department may assess a service charge in an amount set by commission rule
                  against the person on whose behalf the check was tendered[.]; and
                      (ii) if the check that is returned to the department is from a licensee, permittee, or
                  package agent, it is grounds for:
                      (A) the suspension or revocation of the license or permit; or
                      (B) the suspension or termination of the operation of the package agency.
                      (b) The revocation of a license or permit under this Subsection (5) is grounds for the
                  forfeiture of the bond of the:
                      (i) licensee; or
                      (ii) permittee.
                      (c) The termination of the operation of a package agency under this Subsection (5) is
                  grounds for the forfeiture of the bond of the package agency.
                      (6) The laws that govern the Division of Finance and prescribe the general powers and
                  duties of the Division of Finance are not applicable to the Department of Alcoholic Beverage
                  Control in the purchase and sale of alcoholic products.
                      (7) The accounts of the department shall be audited annually by the state auditor or by
                  any other person, firm, or corporation the state auditor appoints. The audit report shall be made

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                  to the state auditor, and copies submitted to members of the Legislature not later than January 1
                  following the close of the fiscal year for which the report is made.
                      Section 8. Section 32A-1-116 is amended to read:
                       32A-1-116. Purchase of liquor.
                      (1) [Beginning July 1, 1991, the] The department may not purchase or stock alcoholic
                  beverages in containers smaller than 200 ml. except as otherwise allowed by the commission.
                      (2) (a) Each order for the purchase of liquor or any cancellation of an order:
                      (i) shall be executed in writing by the department; and
                      (ii) is not valid or binding unless [so] executed in writing.
                      (b) A [duplicate] copy of each order or cancellation shall be kept on file by the
                  department for at least three years.
                      Section 9. Section 32A-1-119 is amended to read:
                       32A-1-119. Adjudicative proceedings -- Procedure.
                      (1) (a) The commission, director, and department may conduct adjudicative proceedings
                  to inquire into any matter necessary and proper for the administration of this title and rules
                  adopted under this title.
                      (b) The commission, director, and department shall comply with the procedures and
                  requirements of Title 63, Chapter 46b, Administrative Procedures Act, in their adjudicative
                  proceedings.
                      (c) Except where otherwise provided by law, all adjudicative proceedings shall be
                  conducted in accordance with Title 52, Chapter 4, Open and Public Meetings.
                      (d) All adjudicative proceedings concerning departmental personnel shall be conducted
                  in accordance with Title 67, Chapter 19, Utah State Personnel Management Act. All hearings
                  that are informational, fact gathering, and nonadversarial in nature shall be conducted in
                  accordance with rules, policies, and procedures promulgated by the commission, director, or
                  department.
                      (2) (a) Disciplinary proceedings shall be conducted under the authority of the
                  commission, which is responsible for rendering a final decision and order on any disciplinary

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                  matter.
                      (b) (i) Nothing in this section precludes the commission from appointing necessary
                  officers, including hearing examiners, from within or without the department, to administer the
                  disciplinary hearing process.
                      (ii) Officers and examiners appointed by the commission may conduct hearings on behalf
                  of the commission and submit findings of fact, conclusions of law, and recommendations to the
                  commission.
                      (3) [When] (a) The department may initiate a proceeding described in Subsection (3)(b)
                  when the department [has on file] receives:
                      (i) a report from any government agency, peace officer, examiner, or investigator
                  alleging that a permittee or licensee or any [of its officers or employees] officer, employee, or
                  agent of a permittee or licensee has violated this title or the rules of the commission[, the];
                      (ii) a final adjudication of criminal liability against a permittee or licensee or any officer,
                  employee, or agent of a permittee or licensee based on an alleged violation of this title; or
                      (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
                  Liability, against a permittee or licensee or any officer, employee, or agent of a permittee or
                  licensee based on an alleged violation of this title.
                      (b) The department may initiate disciplinary proceedings if the department receives an
                  item listed in Subsection (3)(a) to determine:
                      [(a)] (i) whether [or not] the permittee or licensee [is guilty of the violation] or any
                  officer, employee, or agent of the permittee or licensee violated this title or rules of the
                  commission; and
                      [(b)] (ii) if a violation is found [guilty], the [penalty] appropriate sanction to be imposed.
                      (c) For purposes of this Subsection (3), "final adjudication" means an adjudication for
                  which a final unappealable judgment or order has been issued.
                      (4) (a) [An] Unless waived by the respondent, an adjudicative proceeding shall be held:
                      (i) if required by law[, and in all cases];
                      (ii) before revoking or suspending any permit or license [or permit] issued under this

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                  title[, unless waived by the respondent]; or
                      (iii) before imposing a fine against:
                      (A) a permittee;
                      (B) a licensee; or
                      (C) any officer, employee, or agent of a permittee or licensee.
                      (b) Inexcusable failure of a respondent to appear at a scheduled evidentiary hearing after
                  receiving proper notice is an admission of the charged violation.
                      (c) The validity of any hearing is not affected by the failure of any person to attend or
                  remain in attendance.
                      (d) All evidentiary hearings shall be presided over by the commission or an appointed
                  hearing examiner.
                      (e) A hearing may be closed only after the commission or hearing examiner makes a
                  written finding that the public interest in an open hearing is clearly outweighed by factors
                  enumerated in the closure order.
                      (f) The commission or its hearing examiner may administer oaths or affirmations, take
                  evidence, take depositions within or without this state, require by subpoena from any place
                  within this state the testimony of any person at a hearing, and the production of any books,
                  records, papers, contracts, agreements, documents, or other evidence considered relevant to the
                  inquiry.
                      (i) Persons subpoenaed shall testify and produce any books, papers, documents, or
                  tangible things as required in the subpoena.
                      (ii) Any witness subpoenaed or called to testify or produce evidence who claims a
                  privilege against self-incrimination may not be compelled to testify, but the commission or the
                  hearing examiner shall file a written report with the county attorney or district attorney in the
                  jurisdiction where the privilege was claimed or where the witness resides setting forth the
                  circumstance of the claimed privilege.
                      (iii) A person is not excused from obeying a subpoena without just cause. Any district
                  court within the judicial district in which a person alleged to be guilty of willful contempt of

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                  court or refusal to obey a subpoena is found or resides, upon application by the party issuing the
                  subpoena, may issue an order requiring the person to appear before the issuing party, and to
                  produce documentary evidence if so ordered, or to give evidence regarding the matter in
                  question. Failure to obey an order of the court may be punished by the court as contempt.
                      (g) In all cases heard by a hearing examiner, the hearing examiner shall prepare a report
                  to the commission. The report may not recommend a penalty more severe than that initially
                  sought by the department in the notice of violation. A copy of the report shall be served upon the
                  respective parties, and the respondent shall be given reasonable opportunity to file any written
                  objections to the report before final commission action.
                      (h) In all cases heard by the commission, it shall issue its final decision and order.
                      (5) (a) The commission shall render a decision and issue a written order on any
                  disciplinary action, and serve a copy on all parties.
                      (b) Any order of the commission is considered final on the date [it] the order becomes
                  effective.
                      (c) If the commission is satisfied that a permittee [or], licensee, or any officer, employee,
                  or agent of a permittee or licensee has committed a violation of this title[,] or the commission's
                  rules, [it] in accordance with Title 63, Chapter 46b, Administrative Procedures Act, the
                  commission may [take emergency action suspending or revoking]:
                      (i) suspend or revoke the permit or the license [according to the procedures and
                  requirements of Title 63, Chapter 46b, Administrative Procedures Act, and];
                      (ii) impose a fine against:
                      (A) the permittee;
                      (B) the licensee; or
                      (C) any officer, employee, or agent of a permittee or licensee;
                      (iii) assess the administrative costs of any hearing to the permittee or the licensee[.]; or
                      (iv) any combination of Subsections (5)(c)(i) through (iii).
                      (d) (i) A fine imposed in accordance with this Subsection (5) may not exceed $25,000 in
                  the aggregate for any single notice of agency action.

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                      (ii) The commission shall, by rule, establish a schedule of fines specifying the range of
                  fines for each violation of this title or commission rules.
                      (e) (i) If a permit or license is suspended under this Subsection (5), a sign provided by
                  the department shall be prominently posted:
                      (A) during the suspension;
                      (B) by the permittee or licensee; and
                      (C) at the entrance of the premises of the permittee or licensee.
                      (ii) The sign required by this Subsection (5)(e) shall:
                      (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
                  alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be sold,
                  served, furnished, or consumed on these premises during the period of suspension."; and
                      (B) include the dates of the suspension period.
                      (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required to
                  be posted under this Subsection (5)(e) during the suspension period.
                      [(d)] (f) If the permit or license is revoked, the commission may order the revocation of
                  any compliance bond posted by the permittee or licensee.
                      [(e)] (g) Any permittee or licensee whose permit or license is revoked may not reapply
                  for a permit or license under this title for three years from the date the permit or license was
                  revoked.
                      [(f)] (h) All costs assessed by the commission shall be transferred into the General Fund
                  in accordance with Section 32A-1-113 .
                      (6) (a) [The commission] In addition to any action taken against a permittee or licensee
                  under this section, the department may [also] initiate disciplinary [actions] action against
                  [employees] an officer, employee, or [agents] agent of [licensees] a permittee or licensee.
                      (b) If any officer, employee, or agent is found to have violated this title, the commission
                  may prohibit the officer, employee, or agent from serving, selling, distributing, manufacturing,
                  wholesaling, warehousing, or handling alcoholic beverages in the course of employment with any
                  permittee or licensee [licensed] under this title for a period determined by the commission.

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                      [(7) If any manufacturer, supplier, or importer of liquor, wine, or heavy beer or their
                  employee, agent, or representative violates any provision of this title,]
                      (7) (a) The department may initiate a disciplinary action for an alleged violation of this
                  title or the rules of the commission against:
                      (i) a manufacturer, supplier, or importer of alcoholic beverages; or
                      (ii) an officer, employee, agent, or representative of a person listed in Subsection
                  (7)(a)(i).
                      (b) (i) If the commission makes the finding described in Subsection (7)(b)(ii), the
                  commission may, in addition to other penalties prescribed by this title, order:
                      (A) the removal of the manufacturer's, supplier's, or importer's products from the
                  department's sales list; and
                      (B) a suspension of the department's purchase of [those] the products described in
                  Subsection (7)(b)(i)(A) for a period determined by the commission [if].
                      (ii) The commission may take the action described in Subsection (7)(b)(i) if:
                      (A) any manufacturer, supplier, or importer of liquor, wine, or heavy beer or its
                  employee, agent, or representative violates any provision of this title; and
                      (B) the manufacturer, supplier, or importer:
                      (I) directly committed the violation[,]; or
                      (II) solicited, requested, commanded, encouraged, or intentionally aided another to
                  engage in the violation.
                      Section 10. Section 32A-1-122 is amended to read:
                       32A-1-122. Liquor prices.
                      (1) Except as provided in Subsections (2) and (3), all liquor sold within the state shall be
                  marked up in an amount not less than [61%] 64.5% above the cost to the department[, excluding
                  federal excise taxes].
                      (2) All liquor sold to military installations in Utah shall be marked up in an amount not
                  less than 15% above the cost to the department[, excluding federal excise taxes].
                      (3) [All wine sold in Utah by] If a wine manufacturer producing less than 20,000 gallons

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                  of wine in any calendar year, as verified by the department pursuant to federal or other verifiable
                  production reports, first applies to the department for a reduced markup, all wine sold in Utah by
                  the wine manufacturer shall be marked up in an amount not less than 30% above the cost to the
                  department[, excluding federal excise taxes, but only if the wine manufacturer first applies to the
                  department for the 30% markup].
                      (4) Nothing in this section prohibits the department from selling discontinued lines at a
                  discount.    
                      Section 11. Section 32A-1-123 is amended to read:
                       32A-1-123. Licensee compliance with other laws.
                      (1) Each applicant for a license and each licensee shall comply with all applicable federal
                  and state laws pertaining to payment of taxes and contributions to unemployment and insurance
                  funds to which it may be subject. [Failure to do so may result in the suspension or revocation of
                  the licensee's license.]
                      (2) The commission:
                      (a) may not issue a license to an applicant that violates this section; and
                      (b) may suspend, revoke, or not renew the license of any licensee who fails to comply
                  with this section.
                      Section 12. Section 32A-1-401 is amended to read:
                       32A-1-401. Alcohol training and education -- Revocation or suspension of licenses.
                      (1) The commission may [revoke,] suspend, [withhold] revoke, or not renew the license
                  of any [new or renewing] licensee if any of the following persons, as defined in Section
                  62A-15-401 , fail to complete the seminar required in Section 62A-15-401 :
                      (a) a person who manages operations at the premises of the licensee;
                      (b) a person who supervises the serving of alcoholic beverages to a customer for
                  consumption on the premises of the licensee; or
                      (c) a person who serves alcoholic beverages to a customer for consumption on the
                  premises of the licensee.
                      (2) A city, town, or county in which an establishment conducts its business may [revoke,]

- 35 -


                  suspend, [withhold] revoke, or not renew the business license of the establishment if any person
                  described in Subsection (1) fails to complete the seminar required in Section 62A-15-401 .
                      Section 13. Section 32A-2-101 is amended to read:
                       32A-2-101. Commission's power to establish state stores -- Limitations.
                      (1) (a) The commission may establish state stores in numbers and at places, owned or
                  leased by the department, it considers proper for the sale of liquor, by employees of the state, in
                  accordance with this title and the rules made under this title.
                      (b) Employees of state stores are considered employees of the department and shall meet
                  all qualification requirements for employment outlined in Section 32A-1-111 .
                      (2) (a) The total number of state stores may not at any time aggregate more than that
                  number determined by dividing the population of the state by 48,000. [Population]
                      (b) For purposes of this Subsection (2), population shall be determined by:
                      (i) the most recent United States decennial or special census; or [by]
                      (ii) any other population determination made by the United States or state governments.
                      (3) (a) A state store may not be established within 600 feet of any public or private
                  school, church, public library, public playground, or park as measured by the method in
                  Subsection (4).
                      (b) A state store may not be established within 200 feet of any public or private school,
                  church, public library, public playground, or park measured in a straight line from the nearest
                  entrance of the proposed state store to the nearest property boundary of the public or private
                  school, church, public library, public playground, or park.
                      (c) The restrictions contained in Subsections (3)(a) and (b) govern unless one of the
                  following exceptions applies:
                      [(i) The commission finds after full investigation that the premises are located within a
                  city of the third class or a town, and compliance with the distance requirements would result in
                  peculiar and exceptional practical difficulties or exceptional and undue hardships in the
                  establishment of a state store. In that event, the commission may, after giving full consideration
                  to all of the attending circumstances, following a public hearing in the city or town, and where

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                  practical in the neighborhood concerned, authorize a variance from the distance requirements to
                  relieve the difficulties or hardships if the variance may be granted without substantial detriment
                  to the public good and without substantially impairing the intent and purpose of this title.]
                      (i) with respect to the establishment of a state store within a city of the third class, a
                  town, or the unincorporated area of a county, the commission may authorize a variance that
                  reduces the proximity requirements of Subsection (3)(a) or (b) if:
                      (A) alternative locations for establishing a state store in the community are limited;
                      (B) a public hearing has been held in the city, town, or county, and where practical in the
                  neighborhood concerned; and
                      (C) after giving full consideration to all of the attending circumstances and the policies
                  stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
                  state store would not be detrimental to the public health, peace, safety, and welfare of the
                  community; or
                      (ii) [With] with respect to the establishment of a state store in any location, the
                  commission may[, after giving full consideration to all of the attending circumstances, following
                  a public hearing in the county, and where practical in the neighborhood concerned, reduce the
                  proximity requirements] authorize a variance to reduce the proximity requirements of Subsection
                  (3)(a) or (b) in relation to a church:
                      (A) if the local governing body of the church in question gives its written [approval.]
                  consent to the variance;
                      (B) following a public hearing in the county, and where practical in the neighborhood
                  concerned; and
                      (C) after giving full consideration to all of the attending circumstances and the policies
                  stated in Subsections 32A-1-104 (3) and (4).
                      (4) With respect to any public or private school, church, public library, public
                  playground, or park, the 600 foot limitation is measured from the nearest entrance of the state
                  store by following the shortest route of [either] ordinary pedestrian [traffic or, where applicable,
                  vehicular travel along public thoroughfares, whichever is the closer,] travel to the property

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                  boundary of the public or private school, church, public library, public playground, school
                  playground, or park.
                      (5) (a) Nothing in this section prevents the commission from considering the proximity
                  of any educational, religious, and recreational facility, or any other relevant factor in reaching a
                  decision on a proposed location.
                      (b) For purposes of this Subsection (5), "educational facility" includes:
                      (i) a nursery [schools,] school;
                      (ii) an infant day care [centers,] center; and
                      (iii) a trade and technical [schools] school.
                      Section 14. Section 32A-2-103 is amended to read:
                       32A-2-103. Operational restrictions.
                      (1) Liquor may not be sold from a state store except in a sealed package. The package
                  may not be opened on the premises of any state store.
                      (2) (a) An officer, agent, clerk, or employee of a state store may not consume or allow to
                  be consumed by any person any alcoholic beverage on the premises of a state store.
                      (b) Violation of this Subsection (2) is a class B misdemeanor.
                      (3) All liquor sold shall be in packages that are properly marked and labeled in
                  accordance with the rules adopted under this title.
                      (4) Liquor may not be sold except at prices fixed by the commission.
                      (5) Liquor may not be sold, delivered, or furnished to any:
                      (a) minor;
                      (b) person actually, apparently, or obviously [drunk] intoxicated;
                      (c) known habitual drunkard; or
                      (d) known interdicted person.
                      (6) Sale or delivery of liquor may not be made on or from the premises of any state store,
                  nor may any state store be kept open for the sale of liquor:
                      (a) on Sunday;
                      (b) on any state or federal legal holiday;

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                      (c) on any day on which any regular general election, regular primary election, or
                  statewide special election is held;
                      (d) on any day on which any municipal, special district, or school election is held, but
                  only within the boundaries of the municipality, special district, or school district holding the
                  election and only if the municipality, special district, or school district in which the election is
                  being held notifies the department at least 30 days prior to the date of the election; or
                      (e) except on days and during hours as the commission may direct by rule or order.
                      (7) Each state store shall display in a prominent place in the store a sign in large letters
                  stating: "Warning: Driving under the influence of alcohol or drugs is a serious crime that is
                  prosecuted aggressively in Utah."
                      Section 15. Section 32A-3-101 is amended to read:
                       32A-3-101. Commission's power to establish package agencies -- Limitations.
                      (1) (a) The commission may, when considered necessary, create package agencies by
                  entering into contractual relationships with persons to sell liquor in sealed packages from
                  premises other than those owned or leased by the state.
                      (b) The commission shall authorize a person to operate a package agency by issuing a
                  certificate from the commission that designates the person in charge of the agency as a "package
                  agent" as defined under Section 32A-1-105 .
                      (2) (a) Subject to this Subsection (2), the total number of package agencies may not at
                  any time aggregate more than that number determined by dividing the population of the state by
                  18,000.
                      (b) For purposes of Subsection (2)(a), population shall be determined by:
                      (i) the most recent United States decennial or special census; or
                      (ii) any other population determination made by the United States or state governments.
                      (c) (i) The commission may establish seasonal package agencies established in areas [and
                  for periods it] the commission considers necessary.
                      (ii) A seasonal package agency [may not be operated] shall be for a period [longer than
                  nine] of six consecutive months [subject to the restrictions stated in Subsections (2)(c)(i) through

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                  (iii)].
                      [(i)] (iii) A package agency established for operation during a summer time period is
                  known as a "Seasonal A" package agency. The period of operation for a "Seasonal A" agency
                  [may begin as early as February 1 and may continue until October 31.] shall:
                      (A) begin on May 1; and
                      (B) end on October 31.
                      [(ii)] (iv) A package agency established for operation during a winter time period is
                  known as a "Seasonal B" package agency. The period of operation for a "Seasonal B" agency
                  [may begin as early as September 1 and may continue until May 31.] shall:
                      (A) begin on November 1; and
                      (B) end on April 30.
                      [(iii)] (v) In determining the number of package agencies that the commission may
                  establish under this section:
                      (A) a seasonal package agency is counted as [one half] 1/2 of one package agency; and
                      (B) each "Seasonal A" agency shall be paired with a "Seasonal B" agency[; and].
                      [(C) the total number of months that each combined pair may be established for
                  operation may not exceed 12 months for each calendar year.]
                      (d) (i) If the location, design, and construction of a hotel may require more than one
                  package agency sales location to serve the public convenience, the commission may authorize a
                  single package agent to sell liquor at as many as three locations within the hotel under one
                  package agency if:
                      (A) the hotel has a minimum of 150 guest rooms; and
                      (B) all locations under the agency are:
                      (I) within the same hotel facility; and
                      (II) on premises that are managed or operated and owned or leased by the package agent.
                      (ii) Facilities other than hotels may not have more than one sales location under a single
                  package agency.
                      (3) (a) As measured by the method in Subsection (4), the premises of a package agency

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                  may not be established within 600 feet of any[:] public or private school, church, public library,
                  public playground, or park.
                      [(i) public or private school;]
                      [(ii) church;]
                      [(iii) public library;]
                      [(iv) public playground; or]
                      [(v) park.]
                      (b) [A] The premises of a package agency may not be established within 200 feet of any
                  public or private school, church, public library, public playground, or park, measured in a straight
                  line from the nearest entrance of the proposed package agency to the nearest property boundary
                  of the public or private school, church, public library, public playground, or park.
                      (c) The restrictions contained in Subsections (3)(a) and (b) govern unless [Subsection
                  (3)(c)(i) or (ii)] one of the following exemptions applies[.]:
                      [(i) If the commission finds after full investigation that the premises are located within a
                  city of the third class or a town, and compliance with the distance requirements would result in
                  peculiar and exceptional practical difficulties or exceptional and undue hardships in the
                  establishment of a package agency, the commission may authorize a variance from the distance
                  requirement to relieve the difficulties or hardships:]
                      [(A) after giving full consideration to all of the attending circumstances;]
                      [(B) following a public hearing in:]
                      [(I) the city or town concerned; and]
                      [(II) where practical, in the neighborhood concerned; and]
                      [(C) if the variance may be granted without:]
                      [(I) substantial detriment to the public good; and]
                      [(II) substantially impairing the intent and purpose of this title.]
                      [(ii) With respect to the establishment of a package agency in any location, the
                  commission may reduce the proximity requirements in relation to a church:]
                      [(A) after giving full consideration to all of the attending circumstances;]

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                      [(B) following a public hearing in:]
                      [(I) the county concerned; and]
                      [(II) where practical, in the neighborhood concerned; and]
                      [(C) if the local governing body of the church in question gives its written approval.]
                      (i) with respect to the establishment of a package agency within a city of the third class, a
                  town, or the unincorporated area of a county, the commission may authorize a variance to reduce
                  the proximity requirements of Subsection (3)(a) or (b) if:
                      (A) the local governing authority has granted its written consent to the variance;
                      (B) alternative locations for establishing a package agency in the community are limited;
                      (C) a public hearing has been held in the city, town, or county, and where practical in the
                  neighborhood concerned; and
                      (D) after giving full consideration to all of the attending circumstances and the policies
                  stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
                  package agency would not be detrimental to the public health, peace, safety, and welfare of the
                  community;
                      (ii) with respect to the establishment of a package agency in any location, the
                  commission may authorize a variance to reduce the proximity requirements of Subsection (3)(a)
                  or (b) in relation to a church:
                      (A) if the local governing body of the church in question gives its written consent to the
                  variance;
                      (B) following a public hearing in the city, town, or county and where practical in the
                  neighborhood concerned; and
                      (C) after giving full consideration to all of the attending circumstances and the policies
                  stated in Subsections 32A-1-104 (3) and (4); or
                      (iii) with respect to the premises of a package agency issued by the commission that
                  undergoes a change of ownership, the commission may waive or vary the proximity requirements
                  of Subsection (3)(a) or (b) in considering whether to grant a package agency to the new owner of
                  the premises if:

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                      (A) the premises previously received a variance reducing the proximity requirements of
                  Subsection (3)(a) or (b); or
                      (B) a variance from proximity or distance requirements was otherwise allowed under this
                  title.
                      (4) With respect to any public or private school, church, public library, public
                  playground, or park, the 600 foot limitation is measured from the nearest entrance of the package
                  agency by following the shortest route of [either] ordinary pedestrian [traffic, or where
                  applicable, vehicular travel along public thoroughfares, whichever is the closer,] travel to the
                  property boundary of the public or private school, church, public library, public playground,
                  school playground, or park.
                      (5) (a) Nothing in this section prevents the commission from considering the proximity
                  of any educational, religious, and recreational facility, or any other relevant factor in reaching a
                  decision on a proposed location.
                      (b) For purposes of Subsection (5)(a), "educational facility" includes:
                      (i) a nursery school;
                      (ii) an infant day care center; and
                      (iii) a trade and technical school.
                      (6) (a) The package agent, under the direction of the department, shall be responsible for
                  implementing and enforcing this title and the rules adopted under this title to the extent they
                  relate to the conduct of the agency and its sale of liquor.
                      (b) A package agent may not be, or construed to be, a state employee nor be otherwise
                  entitled to any benefits of employment from the state.
                      (c) A package agent, when selling liquor from a package agency, is considered an agent
                  of the state only to the extent specifically expressed in the package agency agreement.
                      (7) The commission may prescribe by policy, directive, or rule, consistent with this title,
                  general operational requirements of all package agencies relating to:
                      (a) physical facilities;
                      (b) conditions of operation;

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                      (c) hours of operation;
                      (d) inventory levels;
                      (e) payment schedules;
                      (f) methods of payment;
                      (g) premises security; and
                      (h) any other matters considered appropriate by the commission.
                      Section 16. Section 32A-3-102 is amended to read:
                       32A-3-102. Application requirements.
                      (1) A person seeking to operate a package agency as a package agent under this chapter
                  shall file a written application with the department in a form prescribed by the department.
                      (2) The application shall be accompanied by:
                      (a) a nonrefundable application fee of $100;
                      (b) written consent of the local authority;
                      (c) evidence of proximity to any public or private school, church, public library, public
                  playground, or park, and if the proximity is within the 600 foot or 200 foot limitations of
                  Subsections 32A-3-101 (3)[,] and (4)[, and (5)], the application shall be processed in accordance
                  with those subsections;
                      (d) a bond as specified by Section 32A-3-105 ;
                      (e) a floor plan of the premises, including a description and highlighting of that part of
                  the premises in which the applicant proposes that the package agency be established;
                      (f) evidence that the package agency is carrying public liability insurance in an amount
                  and form satisfactory to the department;
                      (g) a signed consent form stating that the package agent will permit any authorized
                  representative of the commission, department, or any law enforcement officer to have
                  unrestricted right to enter the package agency;
                      (h) in the case of [a corporate] an applicant that is a partnership, corporation, or limited
                  liability company, proper verification evidencing that the person or persons signing the package
                  agency application are authorized to so act on [the corporation's] behalf of the partnership,

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                  corporation, or limited liability company; and
                      (i) any other information as the commission or department may direct.
                      Section 17. Section 32A-3-103 is amended to read:
                       32A-3-103. Qualifications.
                      (1) (a) The commission may not grant a package agency to any person who has been
                  convicted of:
                      (i) a felony under any federal or state law;
                      (ii) any violation of any federal or state law or local ordinance concerning the sale,
                  manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
                  [or]
                      (iii) any crime involving moral turpitude[.]; or
                      (iv) on two or more occasions within the five years before the day on which the package
                  agency is granted, driving under the influence of alcohol, any drug, or the combined influence of
                  alcohol and any drug.
                      (b) In the case of a partnership [or], corporation, or limited liability company, the
                  proscription under Subsection (1)(a) applies if any of the following has been convicted of any
                  offense described in Subsection (1)(a):
                      (i) a partner[,];
                      (ii) a managing agent[,];
                      (iii) a manager;
                      (iv) an officer[,];
                      (v) a director[, or];
                      (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
                  [an] the applicant corporation [has been convicted of any offense as provided in Subsection (a)];
                  or
                      (vii) a member who owns at least 20% of the applicant limited liability company.
                      [(2) (a) If any employee or proprietor of a package agency is convicted of any offense
                  designated in Subsection (1)(a), the]

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                      (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
                  supervisory or managerial capacity for a package agency has been convicted of any offense
                  described in Subsection (1)(a).
                      (2) The commission may[, pursuant to a package agency agreement,] immediately
                  suspend or revoke the package agency[.] and terminate the package agency agreement
                  if after the day on which the package agency is granted a person described in Subsection (1)(a),
                  (b), or (c):
                      (a) is found to have been convicted of any offense described in Subsection (1)(a) prior to
                  the package agency being granted; or
                      (b) on or after the day on which the package agency is granted:
                      (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
                      (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug; and
                      (B) was convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug within five years before the day on which the person is
                  convicted of the offense described in Subsection (2)(b)(ii)(A).
                      [(b) In the case of a partnership or corporation that operates a package agency, if any
                  partner, managing agent, officer, director, or stockholder who holds at least 20% of the total
                  issued and outstanding stock of a corporation is convicted of any offense designated in
                  Subsection (1)(a), the commission may, pursuant to a package agency agreement, immediately
                  revoke the package agency.]
                      (3) [Upon the arrest of any package agent on any charge set forth in Subsection (1)(a),
                  the] The director may take emergency action by immediately suspending the operation of the
                  package agency for the period during which the criminal matter is being adjudicated[.] if a person
                  described in Subsection (1)(a), (b), or (c):
                      (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii); or
                      (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
                  any drug, or the combined influence of alcohol and any drug; and

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                      (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug within five years before the day on which the person is arrested
                  on a charge described in Subsection (3)(b)(i).
                      (4) (a) (i) The commission may not grant a package agency to any person who has had
                  any type of license, agency, or permit issued under this title revoked within the last three years.
                      (ii) The commission may not grant a package agency to any [corporation or partnership]
                  applicant that is a partnership, corporation, or limited liability company if any partner, managing
                  agent, manager, officer, director, [or] stockholder who holds at least 20% of the total issued and
                  outstanding stock of the applicant corporation, or member who owns at least 20% of the
                  applicant limited liability company is or was:
                      (A) a partner or managing agent of any partnership[, or is or was] that had any type of
                  license, agency, or permit issued under this title revoked within the last three years;
                      (B) a managing agent, officer, director, or stockholder who holds or held at least 20% of
                  the total issued and outstanding stock of any corporation that had any type of license, agency, or
                  permit issued under this title revoked within the last three years; or
                      (C) a manager or member who owns or owned at least 20% of any limited liability
                  company that had [a liquor] any type of license, agency, or permit issued under this title revoked
                  within the last three years.
                      (b) [A corporation or partnership] An applicant that is a partnership, corporation, or
                  limited liability company may not be granted a package agency if any of the following had any
                  type of license, agency, or permit issued under this title revoked while acting in that person's
                  individual capacity within the last three years:
                      (i) any partner or managing agent of the applicant partnership [or];
                      (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
                  total issued and outstanding stock of the [corporate] applicant [had a liquor license, agency, or
                  permit revoked while acting in their individual capacity within the last three years.] corporation;
                  or
                      (iii) any manager or member who owns at least 20% of the applicant limited liability

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                  company.
                      (c) A person acting in an individual capacity may not be granted a package agency if that
                  person was:
                      (i) a partner or managing agent of a partnership[, or] that had any type of license, agency,
                  or permit issued under this title revoked within the last three years;
                      (ii) a managing agent, officer, director, or stockholder who held at least 20% of the total
                  issued and outstanding stock of a corporation that had any type of license, agency, or permit
                  issued under this title revoked within the last three years; or
                      (iii) a manager or member who owned at least 20% of the limited liability company that
                  had [a liquor] any type of license, agency, or permit issued under this title revoked within the last
                  three years.
                      (5) (a) Each package agency shall be operated by a natural person, who is either:
                      (i) the package agent; or
                      (ii) another natural person that package agent designates.
                      (b) Each designee shall be:
                      (i) an employee of the package agent; and [shall be]
                      (ii) responsible for the operation of the agency.
                      (c) The conduct of the designee shall be attributable to the package agent.
                      (d) The package agent shall provide the name of the person operating the package agency
                  to the department for [its] the department's approval.
                      (e) The name and title of any designee shall be stated on the application for the package
                  agency.
                      (f) The package agent shall:
                      (i) inform the department of any proposed change in the person designated to operate the
                  agency[,]; and [shall]
                      (ii) receive prior approval from the department before implementing the change as
                  described in this Subsection (5)(f).
                      (g) Failure to comply with the requirements of this Subsection (5) may result in the

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                  immediate termination of the package agency agreement.
                      [(6) (a) A person having a license to sell draft beer may not be allowed to operate a
                  package agency from the same location in which the draft beer is sold.]
                      [(b) The commission may not establish a package agency in:]
                      [(i) any restaurant;]
                      [(ii) any eating place; or]
                      [(iii) any other location that is situated or arranged so as to make the agency part of the
                  restaurant or eating place.]
                      [(7)] (6) (a) A minor may not be:
                      (i) granted a package agency; or [be]
                      (ii) employed by a package agent to handle liquor.
                      (b) The commission may not grant a package agency to an applicant that is a partnership,
                  corporation, or limited liability company if any of the following is a minor:
                      (i) a partner or managing agent of the applicant partnership;
                      (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the total
                  issued and outstanding stock of the applicant corporation; or
                      (iii) a manager or member who owns at least 20% of the applicant limited liability
                  company.
                      [(8)] (7) If any package agent no longer possesses the qualifications required by this title
                  for obtaining a package agency, the commission may terminate the package agency contract.
                      Section 18. Section 32A-3-106 is amended to read:
                       32A-3-106. Operational restrictions.
                      (1) (a) A package agency may not be operated until a package agency agreement has
                  been entered into by the package agent and the department.
                      (b) The agreement shall state the conditions of operation by which the package agent and
                  the department are bound.
                      (c) If the package agent violates the conditions, terms, or covenants contained in the
                  agreement, or violates any provisions of this title, the department may take whatever action

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                  against the agent that is allowed by the package agency agreement.
                      (d) Actions against the package agent are governed solely by the agreement and may
                  include suspension or revocation of the agency.
                      [(2) The department shall provide all liquor sold by package agencies.]
                      (2) (a) A package agency may not purchase liquor from any person except from the
                  department.
                      (b) At the discretion of the department, liquor may be provided by the department to a
                  package agency for sale on consignment.
                      (3) The department may pay or otherwise remunerate a package agent on any basis [other
                  than] including sales or volume of business done by the agency.
                      (4) Liquor may not be sold from any package agency except in a sealed package. The
                  package may not be opened on the premises of a package agency.
                      (5) All liquor sold shall be in packages that are properly marked and labeled in
                  accordance with the rules adopted under this title.
                      (6) A package agency may not display liquor or price lists in windows or showcases
                  visible to passersby.
                      (7) (a) An officer, agent, clerk, or employee of a package agency may not consume or
                  allow to be consumed by any person any alcoholic beverage on the premises of a package agency.
                      (b) Violation of this Subsection (7) is a class B misdemeanor.
                      (8) Liquor may not be sold except at prices fixed by the commission.
                      (9) Liquor may not be sold, delivered, or furnished to any:
                      (a) minor;
                      (b) person actually, apparently, or obviously [drunk] intoxicated;
                      (c) known habitual drunkard; or
                      (d) known interdicted person.
                      (10) Sale or delivery of liquor may not be made on or from the premises of any package
                  agency nor may any package agency be kept open for the sale of liquor:
                      (a) on Sunday;

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                      (b) on any state or federal legal holiday;
                      (c) on any day on which any regular general election, regular primary election, or
                  statewide special election is held until after the polls are closed;
                      (d) on any day on which any municipal, special district, or school election is held until
                  after the polls are closed, but only within the boundaries of the municipality, special district, or
                  school district holding the election and only if the municipality, special district, or school district
                  in which the election is being held notifies the department at least 30 days prior to the date of the
                  election; or
                      (e) except on days and during hours as the commission may direct by rule or order.
                      (11) The package agency certificate issued by the commission shall be permanently
                  posted in a conspicuous place in the package agency.
                      (12) Each package agent shall display in a prominent place in the package agency a sign
                  in large letters stating: "Warning: Driving under the influence of alcohol or drugs is a serious
                  crime that is prosecuted aggressively in Utah."
                      (13) (a) A package agency may not close or cease operation for a period longer than 72
                  hours, unless [written notice is given to]:
                      (i) the package agency notifies the department in writing at least seven days before the
                  closing[,]; and
                      (ii) the closure or cessation of operation is first approved by the department.
                      (b) [In] Notwithstanding Subsection (13)(a), in the case of emergency closure, immediate
                  notice of closure shall be made to the department by telephone.
                      (c) (i) The department may authorize a closure or cessation of operation for a period not
                  to exceed 60 days.
                      (ii) The department may extend the initial period an additional 30 days upon written
                  request of the package agency and upon a showing of good cause.
                      (iii) A closure or cessation of operation may not exceed a total of 90 days without
                  commission approval.
                      (d) [Each] The notice required by Subsection (13)(a) shall include:

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                      (i) the dates of closure or cessation of operation[,];
                      (ii) the reason for the closure or cessation of operation[,]; and
                      (iii) the date on which the agency will reopen or resume operation.
                      (e) Failure of the agency to provide notice and to obtain department authorization prior to
                  closure or cessation of operation shall result in an automatic termination of the package agency
                  contract effective immediately.
                      (f) Failure of the agency to reopen or resume operation by the approved date shall result
                  in an automatic termination of the package agency contract effective on that date.
                      [(14) (a) All liquor shall be stored and sold from the location designated in the package
                  agent's application as approved by the commission.]
                      (14) Liquor may not be stored or sold in any place other than as designated in the
                  package agent's application, unless the package agent first applies for and receives approval from
                  the department for a change of location within the package agency premises.
                      [(b)] (15) A package agency may not transfer its operations from one location to another
                  without prior written approval of the commission.
                      [(15)] (16) (a) A person, having been granted a package agency, may not sell, transfer,
                  assign, exchange, barter, give, or attempt in any way to dispose of the package agency to any
                  other person, whether for monetary gain or not.
                      (b) A package agency has no monetary value for the purpose of any type of disposition.
                      Section 19. Section 32A-3-108 is amended to read:
                       32A-3-108. Return of inventory.
                      Any liquor previously [purchased] received from the department on consignment that
                  remains unsold [and in saleable condition] at the time the package agent's package agency
                  agreement terminates for any reason, shall be immediately returned to the department [for a
                  refund of the current value of the liquor] or the liquor is subject to immediate seizure by the
                  department.
                      Section 20. Section 32A-4-101 is amended to read:
                       32A-4-101. Commission's power to grant licenses -- Limitations.

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                      (1) Before [any] a restaurant may sell or allow the consumption of liquor on its premises,
                  it shall first obtain a license from the commission as provided in this part.
                      (2) The commission may issue restaurant liquor licenses for the purpose of establishing
                  restaurant liquor outlets at places and in numbers it considers proper for the storage, sale, and
                  consumption of liquor on premises operated as public restaurants.
                      (3) (a) (i) Subject to this Subsection (3), the total number of restaurant liquor licenses
                  may not at any time aggregate more than that number determined as follows:
                      (A) until October 31, 2003, by dividing the population of the state by 4,500; and
                      (B) on or after November 1, 2003, by dividing the population of the state by 5,000.
                      (ii) If the total number of restaurant liquor licenses in effect on October 31, 2003, equals
                  or exceeds the limitation of Subsection (3)(a)(i):
                      (A) a license that is in effect on October 31, 2003:
                      (I) is not invalidated by Subsection (3)(a)(i); and
                      (II) may be renewed in accordance with this chapter; and
                      (B) the commission may not grant a new restaurant liquor license until such time as the
                  total number of restaurant liquor licenses granted under this chapter is less than the limitation of
                  Subsection (3)(a)(i).
                      (b) [Population] For purposes of this Subsection (3), population shall be determined by:
                      (i) the most recent United States decennial or special census; or [by]
                      (ii) any other population determination made by the United States or state governments.
                      [(a)] (c) (i) The commission may issue seasonal restaurant liquor licenses established in
                  areas [and for periods it] the commission considers necessary.
                      (ii) A seasonal restaurant liquor license [may not be operated] shall be for a period
                  [longer than nine] of six consecutive months [subject to the following restrictions:].
                      [(i)] (iii) [Licenses] A restaurant liquor license issued for operation during a summer
                  time [periods are] period is known as a "Seasonal A" restaurant [licenses] liquor license. The
                  period of operation for a "Seasonal A" restaurant liquor license [may begin as early as February 1
                  and may continue until October 31.] shall:

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                      (A) begin on May 1; and
                      (B) end on October 31.
                      [(ii)] (iv) [Licenses] A restaurant liquor license issued for operation during a winter time
                  [periods are] period is known as a "Seasonal B" restaurant [licenses] liquor license. The period
                  of operation for a "Seasonal B" restaurant liquor license [may begin as early as September 1 and
                  may continue until May 31.] shall:
                      (A) begin on November 1; and
                      (B) end on April 30.
                      [(iii)] (v) In determining the number of restaurant liquor licenses that the commission
                  may issue under this section[,]:
                      (A) a seasonal [licenses are] license is counted as 1/2 of one restaurant liquor license[.
                  Each]; and
                      (B) each "Seasonal A" license shall be paired with a "Seasonal B" license [and the total
                  number of months that each combined pair may be issued for operation may not exceed 12
                  months for each calendar year].
                      [(b)] (d) If the location, design, and construction of a hotel may require more than one
                  restaurant liquor sales location within the hotel to serve the public convenience, the commission
                  may authorize the sale of liquor at as many as three restaurant locations within the hotel under
                  one license if the hotel has a minimum of 150 guest rooms and if all locations under the license
                  are within the same hotel facility and on premises that are managed or operated and owned or
                  leased by the licensee. Facilities other than hotels shall have a separate restaurant liquor license
                  for each restaurant where liquor is sold.
                      (4) (a) [Restaurant liquor licensee] The premises of a restaurant liquor license may not
                  be established within 600 feet of any public or private school, church, public library, public
                  playground, or park, as measured by the method in Subsection (5).
                      (b) [Restaurant liquor licensee] The premises of a restaurant liquor license may not be
                  established within 200 feet of any public or private school, church, public library, public
                  playground, or park, measured in a straight line from the nearest entrance of the proposed outlet

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                  to the nearest property boundary of the public or private school, church, public library, public
                  playground, or park.
                      (c) The restrictions contained in Subsections (4)(a) and (b) govern unless one of the
                  following exemptions applies:
                      [(i) The commission finds after full investigation that the premises are located within a
                  city of the third class, a town, or the unincorporated area of a county, and compliance with the
                  distance requirements would result in peculiar and exceptional practical difficulties or
                  exceptional and undue hardships in the granting of a restaurant liquor license. In that event, the
                  commission may, after giving full consideration to all of the attending circumstances, following a
                  public hearing in the city or town, and where practical in the neighborhood concerned, authorize
                  a variance from the distance requirements to relieve the difficulties or hardships if the variance
                  may be granted without substantial detriment to the public good and without substantially
                  impairing the intent and purpose of this title.]
                      [(ii) With respect to the establishment of a restaurant licensee in any location, the
                  commission may, after giving full consideration to all of the attending circumstances, following a
                  public hearing in the county, and where practical in the neighborhood concerned, reduce the
                  proximity requirements in relation to a church if the local governing body of the church in
                  question gives its written approval.]
                      [(iii) Any on-premises beer retailer licensee existing on March 1, 1990, need not comply
                  with the restrictions contained in Subsections (4)(a) and (b) if it applies for a restaurant liquor
                  license before January 1, 1991.]
                      (i) with respect to the establishment of a restaurant liquor license in any location, the
                  commission may authorize a variance to reduce the proximity requirements of Subsection (4)(a)
                  or (b) if:
                      (A) the local governing authority has granted its written consent to the variance;
                      (B) alternative locations for establishing a restaurant liquor license in the community are
                  limited;
                      (C) a public hearing has been held in the city, town, or county, and where practical in the

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                  neighborhood concerned; and
                      (D) after giving full consideration to all of the attending circumstances and the policies
                  stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
                  license would not be detrimental to the public health, peace, safety, and welfare of the
                  community; or
                      (ii) with respect to the premises of a restaurant liquor license issued by the commission
                  that undergoes a change of ownership, the commission may waive or vary the proximity
                  requirements of Subsection (4)(a) or (b) in considering whether to grant a restaurant liquor
                  license to the new owner of the premises if:
                      (A) the premises previously received a variance reducing the proximity requirements of
                  Subsection (4)(a) or (b); or
                      (B) a variance from proximity or distance requirements was otherwise allowed under this
                  title.
                      (5) With respect to any public or private school, church, public library, public
                  playground, or park, the 600 foot limitation is measured from the nearest entrance of the outlet by
                  following the shortest route of [either] ordinary pedestrian [traffic, or where applicable, vehicular
                  travel along public thoroughfares, whichever is the closer,] travel to the property boundary of the
                  public or private school, church, public library, public playground, school playground, or park.
                      (6) (a) Nothing in this section prevents the commission from considering the proximity
                  of any educational, religious, and recreational facility, or any other relevant factor in reaching a
                  decision on a proposed location.
                      (b) For purposes of this Subsection (6), "educational facility" includes:
                      (i) a nursery [schools,] school;
                      (ii) an infant day care [centers,] center; and
                      (iii) a trade and technical [schools] school.
                      Section 21. Section 32A-4-102 is amended to read:
                       32A-4-102. Application and renewal requirements.
                      (1) A person seeking a restaurant liquor license under this [chapter] part shall file a

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                  written application with the department, in a form prescribed by the department. It shall be
                  accompanied by:
                      (a) a nonrefundable [$300] $250 application fee;
                      (b) an initial license fee of [$300] $1,750, which is refundable if a license is not granted;
                      (c) written consent of the local authority;
                      (d) a copy of the applicant's current business license;
                      (e) evidence of proximity to any public or private school, church, public library, public
                  playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
                  Subsections 32A-4-101 (4)[,] and (5)[, and (6)], the application shall be processed in accordance
                  with those subsections;
                      (f) a bond as specified by Section 32A-4-105 ;
                      (g) a floor plan of the restaurant, including consumption areas and the area where the
                  applicant proposes to keep, store, and sell liquor;
                      (h) evidence that the restaurant is carrying public liability insurance in an amount and
                  form satisfactory to the department;
                      (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
                  $500,000 per occurrence and $1,000,000 in the aggregate;
                      (j) a signed consent form stating that the restaurant will permit any authorized
                  representative of the commission, department, or any law enforcement officer unrestricted right
                  to enter the restaurant;
                      (k) in the case of [a corporate] an applicant that is a partnership, corporation, or limited
                  liability company, proper verification evidencing that the person or persons signing the restaurant
                  application are authorized to so act on [the corporation's] behalf of the partnership, corporation,
                  or limited liability company; and
                      (l) any other information the commission or department may require.
                      (2) (a) All restaurant liquor licenses expire on October 31 of each year.
                      (b) Persons desiring to renew their restaurant liquor license shall [submit a renewal fee of
                  $300 and a completed renewal application to the department] by no later than September 30[.]

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                  submit:
                      (i) a completed renewal application to the department; and
                      (ii) a renewal fee in the following amount:
                      Gross Cost of Liquor in Previous License Year for the Licensee        Renewal Fee
                      under $5,000                                    $750
                      equals or exceeds $5,000 but less than $10,000                $900
                      equals or exceeds $10,000 but less than $25,000                $1,250
                      equals or exceeds $25,000                            $1,500.
                      (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of the
                  license effective on the date the existing license expires.
                      (d) Renewal applications shall be in a form as prescribed by the department.
                      (3) [If] To ensure compliance with Subsection 32A-4-106 (28), the commission may
                  suspend or revoke any restaurant liquor license if the restaurant liquor licensee does not
                  immediately notify the department of any change in:
                      (a) ownership of the restaurant[, or in the case of];
                      (b) for a [Utah] corporate owner, [of any change in] the:
                      (i) corporate officers or directors[, the commission may suspend or revoke that license.];
                  or
                      (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
                  corporation; or
                      (c) for a limited liability company:
                      (i) managers; or
                      (ii) members owning at least 20% of the limited liability company.
                      Section 22. Section 32A-4-103 is amended to read:
                       32A-4-103. Qualifications.
                      (1) (a) The commission may not grant a restaurant liquor license to [a restaurant whose
                  proprietor] any person who has been convicted of:
                      (i) a felony under any federal or state law;

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                      (ii) any violation of any federal or state law or local ordinance concerning the sale,
                  manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
                  [or]
                      (iii) any crime involving moral turpitude[.]; or
                      (iv) on two or more occasions within the five years before the day on which the license is
                  granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol
                  and any drug.
                      (b) In the case of a partnership [or], corporation, or limited liability company the
                  proscription under Subsection (1)(a) applies if any of the following has been convicted of any
                  offense described in Subsection (1)(a):
                      (i) a partner[,];
                      (ii) a managing agent[,];
                      (iii) a manager;
                      (iv) an officer[,];
                      (v) a director[, or];
                      (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
                  [an] the applicant corporation [has been convicted of any offense as provided in this subsection];
                  or
                      (vii) a member who owns at least 20% of the applicant limited liability company.
                      (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
                  supervisory or managerial capacity for a restaurant has been convicted of any offense described
                  in Subsection (1)(a).
                      [(2) (a) If any employee or proprietor of a restaurant liquor licensee is convicted of any
                  offense designated in Subsection (1), the commission may take emergency action by immediately
                  revoking the license according to the procedures and requirements of Title 63, Chapter 46b.]
                      [(b) In the case of a partnership or corporation that has been granted a restaurant liquor
                  license, if any partner, managing agent, officer, director, or stockholder who holds at least 20%
                  of the total issued and outstanding stock of a corporation is convicted of any offense designated

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                  in Subsection (1), the commission may take emergency action by immediately revoking the
                  license according to the procedures and requirements of Title 63, Chapter 46b.]
                      (2) The commission may immediately suspend or revoke a restaurant liquor license if
                  after the day on which the restaurant liquor license is granted, a person described in Subsection
                  (1)(a), (b), or (c):
                      (a) is found to have been convicted of any offense described in Subsection (1)(a) prior to
                  the license being granted; or
                      (b) on or after the day on which the license is granted:
                      (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
                      (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug; and
                      (B) was convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug within five years before the day on which the person is
                  convicted of the offense described in Subsection (2)(b)(ii)(A).
                      (3) [Upon the arrest of any restaurant liquor licensee on any charge set forth in
                  Subsection (1), the] The director may take emergency action by immediately suspending the
                  operation of [the licensee] a restaurant liquor license according to the procedures and
                  requirements of Title 63, Chapter 46b, Administrative Procedures Act, for the period during
                  which the criminal matter is being adjudicated[.] if a person described in Subsection (1)(a), (b),
                  or (c):
                      (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii); or
                      (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
                  any drug, or the combined influence of alcohol and any drug; and
                      (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug within five years before the day on which the person is arrested
                  on a charge described in Subsection (3)(b)(i).
                      (4) (a) (i) The commission may not grant a restaurant liquor license to any person who
                  has had any type of license, agency, or permit issued under this title revoked within the last three

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                  years.
                      (ii) The commission may not grant a restaurant liquor license to [any corporation or
                  partnership] an applicant that is a partnership, corporation, or limited liability company if any
                  partner, managing agent, manager, officer, director, [or] stockholder who holds at least 20% of
                  the total issued and outstanding stock of the applicant corporation, or member who owns at least
                  20% of the applicant limited liability company is or was:
                      (A) a partner or managing agent of any partnership[, or is or was] that had any type of
                  license, agency, or permit issued under this title revoked within the last three years;
                      (B) a managing agent, officer, director, or [a] stockholder who holds or held at least 20%
                  of the total issued and outstanding stock of any corporation that had any type of license, agency,
                  or permit issued under this title revoked within the last three years; or
                      (C) a manager or member who owns or owned at least 20% of any limited liability
                  company that had [a liquor] any type of license, agency, or permit issued under this title revoked
                  within the last three years.
                      (b) [A corporation or partnership] An applicant that is a partnership, corporation, or
                  limited liability company may not be granted a restaurant liquor license if any of the following
                  had any type of license, agency, or permit issued under this title revoked while acting in that
                  person's individual capacity within the last three years:
                      (i) a partner or managing agent of the applicant partnership [or];
                      (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
                  total issued and outstanding stock of the [corporate applicant had a liquor license, agency, or
                  permit revoked while acting in their individual capacity within the last three years.] applicant
                  corporation; or
                      (iii) a manager or member who owns at least 20% of the applicant limited liability
                  company.
                      (c) A person acting in an individual capacity may not be granted a restaurant liquor
                  license if that person was:
                      (i) a partner or managing agent of a partnership[, or] that had any type of license, agency,

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                  or permit issued under this title revoked within the last three years;
                      (ii) a managing agent, officer, director, or stockholder who held at least 20% of the total
                  issued and outstanding stock of a corporation that had any type of license, agency, or permit
                  issued under this title revoked within the last three years; or
                      (iii) a manager or member of a limited liability company who owned at least 20% of the
                  limited liability company that had [a liquor] any type of license, agency, or permit issued under
                  this title revoked within the last three years.
                      (5) (a) A minor may not be granted a restaurant liquor license.
                      (b) The commission may not grant a restaurant liquor license to an applicant that is a
                  partnership, corporation, or limited liability company if any of the following is a minor:
                      (i) a partner or managing agent of the applicant partnership;
                      (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the total
                  issued and outstanding stock of the applicant corporation; or
                      (iii) a manager or member who owns at least 20% of the applicant limited liability
                  company.
                      (6) If any person to whom a license has been issued under this part no longer possesses
                  the qualifications required by this title for obtaining that license, the commission may suspend or
                  revoke that license.
                      Section 23. Section 32A-4-105 is amended to read:
                       32A-4-105. Bond.
                      (1) Each restaurant liquor licensee shall post a cash or corporate surety bond in the penal
                  sum of [$5,000] $10,000 payable to the department, which the licensee has procured and must
                  maintain for so long as the licensee continues to operate as a restaurant liquor licensee.
                      (2) The bond shall be in a form approved by the attorney general, conditioned upon the
                  licensee's faithful compliance with this title and the rules of the commission.
                      (3) (a) If the [$5,000] $10,000 surety bond is canceled due to the licensee's negligence, a
                  $300 reinstatement fee may be assessed.
                      (b) No part of any cash or corporate bond so posted may be withdrawn:

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                      (i) during the period the license is in effect[,]; or
                      (ii) while revocation proceedings are pending against the licensee.
                      (c) A bond filed by a licensee may be forfeited if the license is finally revoked.
                      Section 24. Section 32A-4-106 is amended to read:
                       32A-4-106. Operational restrictions.
                      Each person granted a restaurant liquor license and the employees and management
                  personnel of the restaurant shall comply with the following conditions and requirements. Failure
                  to comply may result in a suspension or revocation of the license or other disciplinary action
                  taken against individual employees or management personnel.
                      (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from state
                  stores or package agencies.
                      (b) Liquor purchased may be transported by the restaurant liquor licensee from the place
                  of purchase to the licensed premises.
                      (c) Payment for liquor shall be made in accordance with rules established by the
                  commission.
                      (2) A restaurant liquor licensee may [not] sell or provide [any] a primary spirituous liquor
                  [except in one ounce quantities] only in a quantity not to exceed one ounce per beverage
                  dispensed through a calibrated metered dispensing system approved by the department in
                  accordance with commission rules adopted under this title, except that:
                      (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
                  system if used as a secondary flavoring ingredient in a beverage subject to the following
                  restrictions:
                      (i) the secondary ingredient may be dispensed only in conjunction with the purchase of a
                  primary spirituous liquor;
                      (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
                      (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
                  on the floor plan provided to the department; and
                      (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";

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                      (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
                  system if used:
                      (i) as a flavoring on desserts; and
                      (ii) in the preparation of flaming food dishes, drinks, and desserts;
                      (c) each restaurant patron may have no more than 2.75 ounces of spirituous liquor at a
                  time; and
                      (d) each restaurant patron may have no more than one spirituous liquor drink at a time
                  before the patron.
                      [(c) wine] (3) (a) (i) Wine may be sold and served by the glass [in quantities not
                  exceeding] or in an individual portion not to exceed five ounces per glass[; and] or individual
                  portion.
                      (ii) An individual portion of wine may be served to a patron in more than one glass as
                  long as the total amount of wine does not exceed five ounces.
                      (iii) An individual portion of wine is considered to be one alcoholic beverage under
                  Subsection (7)(e).
                      (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed
                  by the commission to tables of four or more persons.
                      (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
                  the commission to tables of less than four persons.
                      (c) A wine service may be performed and a service charge assessed by the restaurant as
                  authorized by commission rule for wine purchased at the restaurant.
                      [(d) heavy] (4) (a) Heavy beer may be served in original containers not exceeding one
                  liter at prices fixed by the commission.
                      (b) A service charge may be assessed by the restaurant as authorized by commission rule
                  for heavy beer purchased at the restaurant.
                      [(3) (a) Restaurants] (5) (a) A restaurant licensed to sell liquor may sell beer in any size
                  container not exceeding two liters, and on draft for on-premise consumption without obtaining a
                  separate on-premise beer retailer license from the commission.

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                      (b) [Restaurants] A restaurant licensed under this chapter that [sell] sells beer pursuant to
                  Subsection [(3)] (5)(a) shall comply with all appropriate operational restrictions under Chapter
                  10, Beer Retailer Licenses, that apply to on-premise beer retailers except when those restrictions
                  are inconsistent with or less restrictive than the operational restrictions under this [chapter] part.
                      (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
                  Licenses, required by Subsection [(3)] (5)(b) may result in a suspension or revocation of the
                  restaurant's:
                      (i) state liquor license; and
                      (ii) alcoholic beverage license issued by the local authority.
                      [(4) Wine may be served in accordance with commission rule in containers not
                  exceeding 750 ml.]
                      [(5) (a) Liquor] (6) Alcoholic beverages may not be stored, served, or sold in any place
                  other than as designated in the licensee's application, unless the licensee first applies for and
                  receives approval from the department for a change of location within the restaurant.
                      [(b)] (7) (a) (i) A patron may only make alcoholic beverage purchases in the restaurant
                  from [a server] and be served by a person employed, designated, and trained by the licensee to
                  sell and serve alcoholic beverages.
                      (ii) Notwithstanding Subsection (7)(a)(i), a patron who has purchased bottled wine from
                  an employee of the restaurant or has carried bottled wine onto the premises of the restaurant
                  pursuant to Subsection (14) may thereafter serve wine from the bottle to themselves or others at
                  the patron's table.
                      (b) Alcoholic beverages shall be delivered by a server to the patron.
                      (c) Any alcoholic beverage may only be consumed at the patron's table or counter.
                      [(d) Liquor may not be stored where it is visible to patrons of the restaurant.]
                      [(6) (a) Alcoholic beverages may not be dispensed directly to a patron from the storage
                  area.]
                      [(b) Alcoholic beverages shall be delivered by a server to the patron.]
                      (d) Alcoholic beverages may not be served to or consumed by a patron at a bar.

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                      (e) Each restaurant patron may have no more than two alcoholic beverages of any kind at
                  a time before the patron, subject to the limitation in Subsection (2)(a).
                      [(7)] (8) The liquor storage area shall remain locked at all times other than those hours
                  and days when liquor sales are authorized by law.
                      [(8)] (9) (a) Liquor may not be sold [or], offered for sale, served, or otherwise furnished
                  at a restaurant during the following days or hours:
                      (i) until after the polls are closed on the day of any:
                      (A) regular general election[,];
                      (B) regular primary election[,]; or
                      (C) statewide special election [until after the polls are closed];
                      (ii) on the day of any municipal, special district, or school election, but only:
                      (A) within the boundaries of the municipality, special district, or school district; and
                      (B) if closure is required by local ordinance; and
                      (iii) on any other day after 12 midnight and before 12 noon.
                      (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
                  Licenses, for on-premise beer licensees.
                      [(9)] (10) Alcoholic beverages may not be sold except in connection with an order for
                  food prepared, sold, and served at the restaurant.
                      [(10)] (11) Alcoholic beverages may not be sold, [delivered,] served, or otherwise
                  furnished to any:
                      (a) minor;
                      (b) person actually, apparently, or obviously [drunk] intoxicated;
                      (c) known habitual drunkard; or
                      (d) known interdicted person.
                      [(11)] (12) (a) (i) Liquor may be sold only at prices fixed by the commission.
                      (ii) Liquor may not be sold at discount prices on any date or at any time.
                      (b) An alcoholic beverage may not be sold [except at prices fixed by the commission] at
                  less than the cost of the alcoholic beverage to the licensee.

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                      [(b) Mixed drinks and wine may not be sold at discount prices on any date or at any
                  time.]
                      [(12) Each restaurant patron may have only one alcoholic beverage at a time before the
                  patron on the patron's table.]
                      [(13) No more than one ounce of primary liquor may be served to a patron at a time,
                  except:]
                      [(a) wine as provided in Subsection (2)(c); and]
                      [(b) heavy beer as provided in Subsection (2)(d).]
                      (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
                  over consumption or intoxication.
                      (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
                  hours of the restaurant's business day such as a "happy hour."
                      (e) The sale or service of more than one alcoholic beverage for the price of a single
                  alcoholic beverage is prohibited.
                      (f) The sale or service of an indefinite or unlimited number of alcoholic beverages during
                  any set period for a fixed price is prohibited.
                      (g) A restaurant licensee may not engage in a public promotion involving or offering free
                  alcoholic beverages to the general public.
                      [(14)] (13) Alcoholic beverages may not be purchased by the licensee, or any employee
                  or agent of the licensee, for patrons of the restaurant.
                      [(15) Alcoholic beverages purchased in a restaurant may not be served or consumed at
                  any location where they are stored or dispensed.]
                      [(16) (a) A wine service may be performed and a service charge assessed by the
                  restaurant as authorized by commission rule for wine purchased at the restaurant or carried in by
                  a patron.]
                      [(b) If wine is carried in by a patron, the patron shall deliver the wine to a server or other
                  representative of the licensee upon entering the licensee premises.]
                      [(17)] (14) (a) A person may not bring onto the premises of a restaurant liquor licensee

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                  any alcoholic beverage for on-premise consumption, except a person may bring, subject to the
                  discretion of the licensee, [cork-finished] bottled wine onto the premises of any restaurant liquor
                  licensee [and consume wine pursuant to Subsection (16)] for on-premise consumption.
                      (b) [A] Except bottled wine under Subsection (14)(a), a restaurant[, whether licensed
                  under this title or unlicensed,] liquor licensee or its officers, managers, employees, or agents may
                  not allow:
                      (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
                  consumption; or
                      (ii) consumption of any such alcoholic beverage on its premises[, except cork-finished
                  wine under Subsection (17)(a)].
                      [(c) If a restaurant licensee, or any of its officers, managers, employees, or agents violates
                  this Subsection (17):]
                      [(i) the commission may immediately suspend or revoke the restaurant's liquor license
                  and the restaurant licensee is subject to possible criminal prosecution under Chapter 12, Criminal
                  Offenses; and]
                      [(ii) the local authority may immediately suspend or revoke the restaurant's:]
                      [(A) local liquor license;]
                      [(B) local consent under Subsection 32A-4-102 (1); or]
                      [(C) local business license.]
                      [(18) Alcoholic beverages purchased from the restaurant may not be removed from the
                  restaurant premises.]
                      (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server or
                  other representative of the licensee upon entering the restaurant.
                      (d) A wine service may be performed and a service charge assessed by the restaurant as
                  authorized by commission rule for wine carried in by a patron.
                      (15) (a) Except as provided in Subsection (15)(b), a restaurant licensee and its employees
                  may not permit a restaurant patron to carry from the restaurant premises an open container that:
                      (i) is used primarily for drinking purposes; and

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                      (ii) contains any alcoholic beverage.
                      (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
                  restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
                  onto the premises of the restaurant in accordance with Subsection (14), provided the bottle has
                  been recorked or recapped before removal.
                      [(19)] (16) (a) [Minors] A minor may not be employed by a restaurant licensee to sell or
                  dispense alcoholic beverages.
                      (b) Notwithstanding Subsection [(19)] (16)(a), a minor may be employed to enter the sale
                  at a cash register or other sales recording device.
                      [(20)] (17) An employee of a restaurant liquor licensee, while on duty, may not:
                      (a) consume an alcoholic beverage; or
                      (b) be [under the influence of alcoholic beverages] intoxicated.
                      [(21) (a) Advertising or other reference to the sale of liquor and wine is not allowed on a
                  food menu except that a statement of availability of a liquor and wine menu on request, the
                  content and form of which is approved by the department, may be attached to or carried on a food
                  menu. The context of both food and liquor and wine menus may not in any manner attempt to
                  promote or increase the sale of alcoholic beverages.]
                      [(b) A server, employee, or agent of a licensee may not draw attention to the availability
                  of alcoholic beverages for sale, unless a patron or guest first inquires about it.]
                      [(c)] (18) Any [set-up charge, service charge, chilling fee, or any other] charge or fee
                  made in connection with the sale, service, or consumption of liquor may be stated in food or
                  alcoholic beverage menus[.] including:
                      (a) a set-up charge;
                      (b) a service charge; or
                      (c) a chilling fee.
                      [(22)] (19) Each restaurant liquor licensee shall display in a prominent place in the
                  restaurant:
                      (a) the liquor license that is issued by the department;

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                      (b) a list of the types and brand names of liquor being served through its calibrated
                  metered dispensing system; and
                      (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
                  drugs is a serious crime that is prosecuted aggressively in Utah."
                      [(23)] (20) The following acts or conduct in a restaurant licensed under this chapter are
                  considered contrary to the public welfare and morals, and are prohibited upon the premises:
                      (a) employing or using any person in the sale or service of alcoholic beverages while the
                  person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
                  female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
                  buttocks, vulva, or genitals;
                      (b) employing or using the services of any person to mingle with the patrons while the
                  person is unclothed or in attire, costume, or clothing described in Subsection [(23)] (20)(a);
                      (c) encouraging or permitting any person to touch, caress, or fondle the breasts, buttocks,
                  anus, or genitals of any other person;
                      (d) permitting any employee or person to wear or use any device or covering, exposed to
                  view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
                      (e) permitting any person to use artificial devices or inanimate objects to depict any of
                  the prohibited activities described in this Subsection [(23)] (20);
                      (f) permitting any person to remain in or upon the premises who exposes to public view
                  any portion of that person's genitals or anus; or
                      (g) showing films, still pictures, electronic reproductions, or other visual reproductions
                  depicting:
                      (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
                  copulation, flagellation, or any sexual acts prohibited by Utah law;
                      (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
                  genitals;
                      (iii) scenes wherein artificial devices or inanimate objects are used to depict, or drawings
                  are used to portray, any of the prohibited activities described in this Subsection [(23)] (20); or

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                      (iv) scenes wherein a person displays the vulva or the anus or the genitals.
                      [(24)] (21) Nothing in Subsection [(23)] (20) precludes a local authority from being more
                  restrictive of acts or conduct of the type prohibited in Subsection [(23)] (20).
                      [(25)] (22) (a) Although live entertainment is permitted on the premises of a restaurant
                  liquor licensee, a licensee may not allow any person to perform or simulate sexual acts prohibited
                  by Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral copulation,
                  flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the
                  displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon a
                  stage or at a designated area approved by the commission.
                      (b) Nothing in Subsection [(25)] (22)(a) precludes a local authority from being more
                  restrictive of acts or conduct of the type prohibited in Subsection [(25)] (22)(a).
                      [(26)] (23) A restaurant liquor licensee may not engage in or permit any form of
                  gambling, or have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
                  Part 11, Gambling, on the premises of the restaurant liquor licensee.
                      [(27)] (24) (a) Each restaurant liquor licensee shall maintain an expense ledger or record
                  showing in detail:
                      (i) quarterly expenditures made separately for:
                      (A) malt or brewed beverages;
                      (B) set-ups;
                      (C) liquor;
                      (D) food; and
                      (E) all other items required by the department; and
                      (ii) sales made separately for:
                      (A) malt or brewed beverages;
                      (B) set-ups;
                      (C) food; and
                      (D) all other items required by the department.
                      (b) The record required by Subsection [(27)] (24)(a) shall be kept:

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                      (i) in a form approved by the department; and
                      (ii) current for each three-month period.
                      (c) Each expenditure shall be supported by:
                      (i) delivery tickets;
                      (ii) invoices;
                      (iii) receipted bills;
                      (iv) canceled checks;
                      (v) petty cash vouchers; or
                      (vi) other sustaining data or memoranda.
                      [(28) (a) Each] (d) In addition to a ledger or record required under Subsection (24)(a), a
                  restaurant liquor licensee shall maintain accounting and other records and documents as the
                  department may require.
                      [(b)] (e) Any restaurant or person acting for the restaurant, who knowingly forges,
                  falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the books of account
                  or other documents of the restaurant required to be made, maintained, or preserved by this title or
                  the rules of the commission for the purpose of deceiving the commission or the department, or
                  any of their officials or employees, is subject to the [immediate] suspension or revocation of the
                  restaurant's liquor license and possible criminal prosecution under Chapter 12, Criminal
                  Offenses.
                      [(29)] (25) (a) A restaurant liquor licensee may not close or cease operation for a period
                  longer than 240 hours, unless:
                      (i) the restaurant liquor [license] licensee notifies the department in writing at least seven
                  days before the closing; and
                      (ii) the closure or cessation of operation is first approved by the department.
                      (b) Notwithstanding Subsection [(29)] (25)(a), in the case of emergency closure,
                  immediate notice of closure shall be made to the department by telephone.
                      (c) The department may authorize a closure or cessation of operation for a period not to
                  exceed 60 days. The department may extend the initial period an additional 30 days upon written

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                  request of the restaurant licensee and upon a showing of good cause. A closure or cessation of
                  operation may not exceed a total of 90 days without commission approval.
                      (d) Any notice shall include:
                      (i) the dates of closure or cessation of operation;
                      (ii) the reason for the closure or cessation of operation; and
                      (iii) the date on which the licensee will reopen or resume operation.
                      (e) Failure of the licensee to provide notice and to obtain department authorization prior
                  to closure or cessation of operation shall result in an automatic forfeiture of:
                      (i) the license; and
                      (ii) the unused portion of the license fee for the remainder of the license year effective
                  immediately.
                      (f) Failure of the licensee to reopen or resume operation by the approved date shall result
                  in an automatic forfeiture of:
                      (i) the license; and
                      (ii) the unused portion of the license fee for the remainder of the license year.
                      [(30)] (26) Each restaurant liquor licensee shall maintain at least 70% of its total
                  restaurant business from the sale of food, which does not include mix for alcoholic beverages or
                  service charges.
                      [(31) A person may not transfer a]
                      (27) A restaurant liquor license may not be transferred from one location to another,
                  without prior written approval of the commission.
                      [(32)] (28) (a) A person, having been granted a restaurant liquor license may not sell,
                  transfer, assign, exchange, barter, give, or attempt in any way to dispose of the license to any
                  other person whether for monetary gain or not.
                      (b) A restaurant liquor license has no monetary value for the purpose of any type of
                  disposition.
                      [(33)] (29) Each server of alcoholic beverages in a licensee's establishment shall keep a
                  written beverage tab for each table or group that orders or consumes alcoholic beverages on the

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                  premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
                  consumed.
                      [(34)] (30) A person's willingness to serve alcoholic beverages may not be made a
                  condition of employment as a server with a restaurant that has a restaurant liquor license.
                      Section 25. Section 32A-4-201 is amended to read:
                       32A-4-201. Commission's power to grant licenses -- Limitations.
                      (1) Before [any] an airport lounge may sell or allow the consumption of liquor on its
                  premises, it shall first obtain a license from the commission as provided in this part.
                      (2) The commission may issue airport lounge liquor licenses for the purpose of
                  establishing airport liquor outlets at international airports for the storage, sale, and consumption
                  of liquor on premises operated as public airport lounges.
                      (3) The total number of airport lounge liquor licenses may not exceed one lounge per
                  terminal plus one lounge per concourse located beyond the security point at that international
                  airport.
                      Section 26. Section 32A-4-202 is amended to read:
                       32A-4-202. Application and renewal requirements.
                      (1) A person seeking an airport lounge liquor license under this part shall file a written
                  application with the department, in a form prescribed by the department, accompanied by:
                      (a) a nonrefundable [$1,000] $250 application fee;
                      (b) an initial license fee of [$1,000] $7,000, which is refundable if a license is not
                  granted;
                      (c) written consent of the local and airport authority;
                      (d) a copy of the applicant's current business license;
                      (e) a bond as specified by Section 32A-4-205 ;
                      (f) a floor plan of the airport lounge, including consumption areas and the area where the
                  applicant proposes to keep, store, and sell liquor;
                      (g) a copy of the sign proposed to be used by the licensee on its premises to inform the
                  public that alcoholic beverages are sold and consumed there;

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                      (h) evidence that the airport lounge is carrying public liability insurance in an amount
                  and form satisfactory to the department;
                      (i) evidence that the airport lounge is carrying dramshop insurance coverage of at least
                  $500,000 per occurrence and $1,000,000 in the aggregate;
                      (j) a signed consent form stating that the airport lounge will permit any authorized
                  representative of the commission, department, or any law enforcement officer unrestricted right
                  to enter the airport lounge;
                      (k) in the case of [a corporate] an applicant that is a partnership, corporation, or limited
                  liability company, proper verification evidencing that the person or persons signing the airport
                  lounge application are authorized to so act on [the corporation's] behalf of the partnership,
                  corporation, or limited liability company; and
                      (l) any other information the commission or department may require.
                      (2) All airport lounge liquor licenses expire on October 31 of each year. Persons desiring
                  to renew their airport lounge liquor license shall submit a renewal fee of [$1,000] $5,000 and a
                  completed renewal application to the department no later than September 30. Failure to meet the
                  renewal requirements shall result in an automatic forfeiture of the license, effective on the date
                  the existing license expires. Renewal applications shall be in a form as prescribed by the
                  department.
                      (3) [If any] To ensure compliance with Subsection 32A-4-206 (21), the commissioner
                  may revoke an airport lounge liquor license if the airport liquor licensee does not immediately
                  notify the department of any change in:
                      (a) ownership of the licensee[, or in the case of];
                      (b) for a [Utah] corporate owner [of any change in], the:
                      (i) corporate officers or directors[, the commission may suspend or revoke that license.];
                  or
                      (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
                  corporation; or
                      (c) for a limited liability company:

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                      (i) managers; or
                      (ii) members owning at least 20% of the limited liability company.
                      Section 27. Section 32A-4-203 is amended to read:
                       32A-4-203. Qualifications.
                      (1) (a) The commission may not grant an airport lounge liquor license to [an airport
                  lounge whose proprietor] any person who has been convicted of:
                      (i) a felony under any federal or state law;
                      (ii) any violation of any federal or state law or local ordinance concerning the sale,
                  manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
                  [or]
                      (iii) any crime involving moral turpitude[.]; or
                      (iv) on two or more occasions within the five years before the day on which the license is
                  granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol
                  and any drug.
                      (b) In the case of a partnership [or], corporation, or limited liability company the
                  proscription under Subsection (1)(a) applies if any of the following has been convicted of any
                  offense described in Subsection (1)(a):
                      (i) a partner[,];
                      (ii) a managing agent[,];
                      (iii) a manager;
                      (iv) an officer[,];
                      (v) a director[, or];
                      (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
                  [an] the applicant corporation [has been convicted of any offense as provided in this subsection.];
                  or
                      (vii) a member who owns at least 20% of the limited liability company.
                      (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
                  supervisory or managerial capacity for an airport lounge has been convicted of any offense

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                  described in Subsection (1)(a).
                      (2) [(a) If any employee or proprietor of an airport lounge liquor licensee is convicted of
                  any offense designated in Subsection (1), the] The commission may [take emergency action by]
                  immediately [revoking the] suspend or revoke an airport lounge license [according to the
                  procedures and requirements of Title 63, Chapter 46b.] if after the day on which the airport
                  lounge license is granted, a person described in Subsection (1)(a), (b), or (c):
                      (a) is found to have been convicted of any offense described in Subsection (1)(a) prior to
                  the license being granted; or
                      (b) on or after the day on which the license is granted:
                      (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
                      (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug; and
                      (B) was convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug within five years before the day on which the person is
                  convicted of the offense described in Subsection (2)(b)(ii)(A).
                      [(b) In the case of a partnership or corporation that has been granted an airport lounge
                  liquor license, if any partner, managing agent, officer, director, or stockholder who holds at least
                  20% of the total issued and outstanding stock of a corporation is convicted of any offense
                  designated in Subsection (1), the commission may take emergency action by immediately
                  revoking the license according to the procedures and requirements of Title 63, Chapter 46b.]
                      (3) [Upon the arrest of any airport lounge liquor licensee on any charge set forth in
                  Subsection (1), the] The director may take emergency action by immediately suspending the
                  operation of [the licensee] an airport lounge liquor license according to the procedures and
                  requirements of Title 63, Chapter 46b, Administrative Procedures Act, for the period during
                  which the criminal matter is being adjudicated[.] if a person described in Subsection (1)(a), (b),
                  or (c):
                      (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii); or
                      (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,

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                  any drug, or the combined influence of alcohol and any drug; and
                      (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug within five years before the day on which the person is arrested
                  on a charge described in Subsection (3)(b)(i).
                      (4) (a) (i) The commission may not grant an airport lounge liquor license to any person
                  who has had any type of license, agency, or permit issued under this title revoked within the last
                  three years.
                      (ii) The commission may not grant an airport lounge liquor license to any [corporation or
                  partnership] applicant that is a partnership, corporation, or limited liability company if any
                  partner, managing agent, manager, officer, director, [or] stockholder who holds at least 20% of
                  the total issued and outstanding stock of the applicant corporation, or member who owns at least
                  20% of the applicant limited liability company is or was:
                      (A) a partner or managing agent of any partnership[, or is or was] that had any type of
                  license, agency, or permit issued under this title revoked within the last three years;
                      (B) a managing agent, officer, director, or a stockholder who holds or held at least 20%
                  of the total issued and outstanding stock of any corporation that had any type of license, agency,
                  or permit issued under this title revoked within the last three years; or
                      (C) a manager or member who owns or owned at least 20% of the limited liability
                  company that had [a liquor] any type of license, agency, or permit issued under this title revoked
                  within the last three years.
                      (b) A corporation or partnership applicant may not be granted an airport lounge liquor
                  license if any of the following had any type of license, agency, or permit issued under this title
                  revoked while acting in that person's individual capacity within the last three years:
                      (i) any partner or managing agent of the applicant partnership [or];
                      (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
                  total issued and outstanding stock of the [corporate] applicant [had a liquor license, agency, or
                  permit revoked while acting in their individual capacity within the last three years.] corporation;
                  or

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                      (iii) any manager or member who owns at least 20% of the applicant limited liability
                  company.
                      (c) A person acting in an individual capacity may not be granted an airport lounge liquor
                  license if that person was:
                      (i) a partner or managing agent of a partnership[, or] that had any type of license, agency,
                  or permit issued under this title revoked within the last three years;
                      (ii) a managing agent, officer, director, or stockholder who held at least 20% of the total
                  issued and outstanding stock of a corporation that had any type of license, agency, or permit
                  issued under this title revoked within the last three years; or
                      (iii) a manager or member who owns at least 20% of a limited liability company that had
                  [a liquor] any type of license, agency, or permit issued under this title revoked within the last
                  three years.
                      (5) (a) A minor may not be granted an airport lounge liquor license.
                      (b) The commission may not grant an airport lounge liquor license to an applicant that is
                  a partnership, corporation, or limited liability company if any of the following is a minor:
                      (i) a partner or managing agent of the applicant partnership;
                      (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the total
                  issued and outstanding stock of the applicant corporation; or
                      (iii) a manager or member who owns at least 20% of the applicant limited liability
                  company.
                      (6) If any person to whom a license has been issued under this part no longer possesses
                  the qualifications required by this title for obtaining that license, the commission may suspend or
                  revoke that license.
                      Section 28. Section 32A-4-206 is amended to read:
                       32A-4-206. Operational restrictions.
                      Each person granted an airport lounge liquor license and the employees and management
                  personnel of the airport lounge shall comply with the following conditions and requirements.
                  Failure to comply may result in a suspension or revocation of the license or other disciplinary

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                  action taken against individual employees or management personnel.
                      (1) (a) Liquor may not be purchased by an airport lounge liquor licensee except from
                  state stores or package agencies.
                      (b) Liquor purchased may be transported by the licensee from the place of purchase to
                  the licensed premises.
                      (c) Payment for liquor shall be made in accordance with the rules established by the
                  commission.
                      (2) An airport lounge liquor licensee may [not] sell or provide [any] a primary spirituous
                  liquor [except in one ounce quantities] only in a quantity not to exceed one ounce per beverage
                  dispensed through a calibrated metered dispensing system approved by the department in
                  accordance with commission rules adopted under this title, except that:
                      (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
                  system if used as a secondary flavoring ingredient in a beverage subject to the following
                  restrictions:
                      (i) the secondary ingredient may be dispensed only in conjunction with the purchase of a
                  spirituous primary liquor;
                      (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
                      (iii) the airport lounge liquor licensee shall designate a location where flavorings are
                  stored on the floor plan provided to the department; and
                      (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
                      (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
                  system if used:
                      (i) as a flavoring on desserts; and
                      (ii) in the preparation of flaming food dishes, drinks, and desserts; and
                      (c) each airport lounge patron may have no more than 2.75 ounces of spirituous liquor at
                  a time before the patron.
                      [(b) wine] (3) (a) (i) Wine may be sold and served by the glass [in quantities not
                  exceeding] or an individual portion not to exceed five ounces per glass[; and] or individual

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                  portion.
                      (ii) An individual portion may be served to a patron in more than one glass as long as the
                  total amount of wine does not exceed five ounces.
                      (iii) An individual portion of wine is considered to be one alcoholic beverage under
                  Subsection (7)(c).
                      (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed
                  by the commission to tables of four or more persons.
                      (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
                  the commission to tables of less than four persons.
                      (c) A wine service may be performed and a service charge assessed by the airport lounge
                  as authorized by commission rule for wine purchased at the airport lounge.
                      [(c) heavy] (4) (a) Heavy beer may be served in original containers not exceeding one
                  liter at prices fixed by the commission.
                      (b) A service charge may be assessed by the airport lounge as authorized by commission
                  rule for heavy beer purchased at the airport lounge.
                      [(3) (a) Airport lounges] (5) (a) An airport lounge licensed to sell liquor may sell beer in
                  any size container not exceeding two liters, and on draft for on-premise consumption without
                  obtaining a separate on-premise beer retailer license from the commission.
                      (b) [Airport lounges that sell] An airport lounge that sells beer pursuant to Subsection
                  [(3)] (5)(a) shall comply with all appropriate operational restrictions under Chapter 10, Beer
                  Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
                  inconsistent with or less restrictive than the operational restrictions under this [chapter that apply
                  to airport lounges] part.
                      (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
                  Licenses, [as set forth in] required by Subsection [(3)] (5)(b) may result in a suspension or
                  revocation of the airport lounge's:
                      (i) state liquor license; and [its]
                      (ii) alcoholic beverage license issued by the local authority.

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                      [(4) Wine may be served in accordance with commission rule in containers not
                  exceeding 750 ml.]
                      [(5) (a) Liquor] (6) Alcoholic beverages may not be stored, served, or sold in any place
                  other than as designated in the licensee's application, unless the licensee first applies for and
                  receives approval from the department for a change of location within the airport lounge.
                      [(b)] (7) (a) A patron [or guest] may only make purchases in the airport lounge from and
                  be served by a [server] person employed, designated, and trained by the licensee to sell, dispense,
                  and serve alcoholic beverages.
                      [(c) Alcoholic beverages may not be stored where they are visible to persons outside the
                  airport lounge.]
                      (b) Notwithstanding Subsection (7)(a), a patron who has purchased bottled wine from an
                  employee of the airport lounge may serve wine from the bottle to themselves or others at the
                  patron's table.
                      (c) Each airport lounge patron may have no more than two alcoholic beverages of any
                  kind at a time before the patron.
                      [(6)] (8) The liquor storage area shall remain locked at all times other than those hours
                  and days when liquor sales and service are authorized by law.
                      [(7)] (9) Alcoholic beverages may not be sold [or], offered for sale, served, or otherwise
                  furnished at an airport lounge [during the following days or hours: (a) on the day of any regular
                  general election, regular primary election, or statewide special election until after the polls are
                  closed; and (b)] on any [other] day after 12 midnight and before 8 a.m.
                      [(8)] (10) Alcoholic beverages may not be sold, [delivered,] served, or otherwise
                  furnished to any:
                      (a) minor;
                      (b) person actually, apparently, or obviously [drunk] intoxicated;
                      (c) known habitual drunkard; or
                      (d) known interdicted person.
                      (11) (a) (i) Liquor may be sold only at prices fixed by the commission.

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                      (ii) Liquor may not be sold at discount prices on any date or at any time.
                      [(9) Liquor] (b) Alcoholic beverages may not be sold [except at prices fixed by the
                  commission. Mixed drinks and wine may not be sold at discount prices on any day or at any
                  time.] at less than the cost of the alcoholic beverage to the licensee.
                      [(10) An airport lounge patron or guest may have only one alcoholic beverage at a time
                  before him.]
                      [(11) No more than one ounce of primary liquor may be served to a patron or guest at a
                  time, except:]
                      [(a) wine as provided in Subsection (2)(b); and]
                      [(b) heavy beer as provided in Subsection (2)(c).]
                      (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
                  over consumption or intoxication.
                      (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
                  hours of the airport lounge's business day such as a "happy hour."
                      (e) The sale or service of more than one alcoholic beverage for the price of a single
                  alcoholic beverage is prohibited.
                      (f) The sale or service of an indefinite or unlimited number of alcoholic beverages during
                  any set period for a fixed price is prohibited.
                      (g) An airport lounge licensee may not engage in a public promotion involving or
                  offering free alcoholic beverages to the general public.
                      (12) Alcoholic beverages may not be purchased by the licensee, or any employee or agent
                  of the licensee, for patrons [or guests] of the airport lounge.
                      (13) (a) [Beginning January 1, 1991, a] A person may not bring onto the premises of an
                  airport lounge licensee any alcoholic beverage for on-premise consumption.
                      (b) [Beginning January 1, 1991, an] An airport lounge or its officers, managers,
                  employees, or agents may not allow a person to bring onto the airport lounge premises any
                  alcoholic beverage for on-premise consumption or allow consumption of any such alcoholic
                  beverage on its premises.

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                      [(c) Beginning January 1, 1991, if any airport lounge liquor licensee or any of its officers,
                  managers, employees, or agents violates Subsection (13):]
                      [(i) the commission may immediately suspend or revoke the airport lounge's liquor
                  license and the airport lounge liquor licensee is subject to criminal prosecution under Chapter 12,
                  Criminal Offenses; and]
                      [(ii) the local authority may immediately suspend or revoke the airport lounge's local
                  liquor license, local consent under Subsection 32A-4-202 (1), or local business license.]
                      (14) [Alcoholic beverages purchased from the airport lounge may not be removed from
                  the airport lounge premises] An airport lounge licensee and its employees may not permit a
                  patron to remove any alcoholic beverages from the airport lounge premises.
                      (15) (a) [Minors] A minor may not be employed by an airport lounge licensee to sell or
                  dispense alcoholic beverages.
                      (b) Notwithstanding Subsection (15)(a), a minor may be employed to enter the sale at a
                  cash register or other sales recording device.
                      (16) An employee of [a] an airport lounge licensee, while on duty, may not:
                      (a) consume an alcoholic beverage; or
                      (b) be [under the influence of alcoholic beverages] intoxicated.
                      (17) Any charge or fee made in connection with the sale, service, or consumption of
                  liquor may be stated in a food or alcoholic beverage menu including:
                      (a) a set-up charge;
                      (b) a service charge; or
                      (c) a chilling fee.
                      [(17)] (18) Each airport lounge liquor licensee shall display in a prominent place in the
                  airport lounge:
                      (a) the liquor license that is issued by the department;
                      (b) a list of the types and brand names of liquor being served through its calibrated
                  metered dispensing system; and
                      (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or

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                  drugs is a serious crime that is prosecuted aggressively in Utah."
                      [(18)] (19) (a) Each airport lounge liquor licensee shall maintain an expense ledger or
                  record showing in detail:
                      (i) quarterly expenditures made separately for malt or brewed beverages, liquor, and all
                  other items required by the department; and
                      (ii) sales made separately for malt or brewed beverages, food, and all other items
                  required by the department.
                      (b) This record shall be kept in a form approved by the department and shall be kept
                  current for each three-month period. Each expenditure shall be supported by delivery tickets,
                  invoices, receipted bills, canceled checks, petty cash vouchers, or other sustaining data or
                  memoranda.
                      [(19) Each] (c) In addition to a ledger or record required by Subsection (19)(a), each
                  airport lounge liquor licensee shall maintain accounting and other records and documents as the
                  department may require.
                      (d) Any airport lounge or person acting for the airport lounge, who knowingly forges,
                  falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the books of account
                  or other documents of the airport lounge required to be made, maintained, or preserved by this
                  title or the rules of the commission for the purpose of deceiving the commission or the
                  department, or any of their officials or employees, is subject to the immediate suspension or
                  revocation of the airport lounge's liquor license and possible criminal prosecution under Chapter
                  12, Criminal Offenses.
                      (20) [There shall be no transfer of an] An airport lounge liquor license may not be
                  transferred from one location to another, without prior written approval of the commission.
                      (21) (a) [A person, having been granted an] An airport lounge liquor [license,] licensee
                  may not sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the
                  license to any other person, whether for monetary gain or not.
                      (b) An airport lounge liquor license has no monetary value for the purpose of any type of
                  disposition.

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                      (22) Each server of alcoholic beverages in a licensee's establishment shall keep a written
                  beverage tab for each table or group that orders or consumes alcoholic beverages on the
                  premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
                  consumed.
                      (23) An airport lounge liquor licensee's premises may not be leased for private functions.
                      (24) An airport lounge liquor licensee may not engage in or permit any form of
                  gambling, or have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
                  Part 11, Gambling, on the premises of the airport lounge liquor licensee.
                      Section 29. Section 32A-4-301 is enacted to read:
                 
Part 3. Limited Restaurant Licenses

                      32A-4-301. Definitions.
                      For purposes of this part, wine includes all alcoholic beverages defined as wine under 27
                  U.S.C. 211 and 27 C.F.R. Section 4.10 including the following alcoholic beverages made in the
                  manner of wine containing not less than 7% and not more than 24% of alcohol by volume:
                      (1) sparkling and carbonated wine;
                      (2) wine made from condensed grape must;
                      (3) wine made from other agricultural products than the juice of sound, ripe grapes;
                      (4) imitation wine;
                      (5) compounds sold as wine;
                      (6) vermouth;
                      (7) cider;
                      (8) perry; and
                      (9) sake.
                      Section 30. Section 32A-4-302 is enacted to read:
                      32A-4-302. Commission's power to grant licenses -- Limitations.
                      (1) A restaurant wanting to sell and allow the consumption of only wine, heavy beer, and
                  beer on its premises, but not spirituous liquor, must obtain a limited restaurant license from the
                  commission as provided in this part before selling or allowing the consumption of wine, heavy

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                  beer, or beer on its premises.
                      (2) (a) Subject to the other provisions of this section, the commission may issue limited
                  restaurant licenses for the purpose of establishing limited restaurant outlets at places and in
                  numbers the commission considers proper for the storage, sale, and consumption of wine, heavy
                  beer, and beer on premises operated as public restaurants.
                      (b) The total number of limited restaurant licenses issued under this part may not at any
                  time aggregate more than that number determined by dividing the population of the state by
                  13,000.
                      (c) For purposes of this Subsection (2), population shall be determined by:
                      (i) the most recent United States decennial or special census; or
                      (ii) any other population determination made by the United States or state governments.
                      (3) (a) (i) The commission may issue seasonal limited restaurant licenses established in
                  areas the commission considers necessary.
                      (ii) A seasonal limited restaurant license shall be for a period of six consecutive months.
                      (b) (i) A limited restaurant license issued for operation during a summer time period is
                  known as a "Seasonal A" limited restaurant license. The period of operation for a "Seasonal A"
                  limited restaurant license shall:
                      (A) begin on May 1; and
                      (B) end on October 31.
                      (ii) A limited restaurant license issued for operation during a winter time period is known
                  as a "Seasonal B" limited restaurant license. The period of operation for a "Seasonal B" limited
                  restaurant license shall:
                      (A) begin on November 1; and
                      (B) end on April 30.
                      (iii) In determining the number of limited restaurant licenses that the commission may
                  issue under this section:
                      (A) a seasonal limited restaurant license is counted as 1/2 of one limited restaurant
                  license; and

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                      (B) each "Seasonal A" limited restaurant license shall be paired with a "Seasonal B"
                  limited restaurant license.
                      (c) If the location, design, and construction of a hotel may require more than one limited
                  restaurant sales location within the hotel to serve the public convenience, the commission may
                  authorize the sale of wine, heavy beer, and beer at as many as three limited restaurant locations
                  within the hotel under one license if:
                      (i) the hotel has a minimum of 150 guest rooms; and
                      (ii) all locations under the license are:
                      (A) within the same hotel facility; and
                      (B) on premises that are:
                      (I) managed or operated by the licensee; and
                      (II) owned or leased by the licensee.
                      (d) Facilities other than hotels shall have a separate limited restaurant license for each
                  restaurant where wine, heavy beer, and beer are sold.
                      (4) (a) The premises of a limited restaurant license may not be established within 600
                  feet of any public or private school, church, public library, public playground, or park, as
                  measured by the method in Subsection (5).
                      (b) The premises of a limited restaurant license may not be established within 200 feet of
                  any public or private school, church, public library, public playground, or park, measured in a
                  straight line from the nearest entrance of the proposed outlet to the nearest property boundary of
                  the public or private school, church, public library, public playground, or park.
                      (c) The restrictions contained in Subsections (4)(a) and (b) govern unless one of the
                  following exemptions applies:
                      (i) with respect to the establishment of a limited restaurant license in any location, the
                  commission may authorize a variance to reduce the proximity requirements of Subsection (4)(a)
                  or (b) if:
                      (A) the local governing authority has granted its written consent to the variance;
                      (B) alternative locations for establishing a limited restaurant license in the community

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                  are limited;
                      (C) a public hearing has been held in the city, town, or county, and where practical in the
                  neighborhood concerned; and
                      (D) after giving full consideration to all of the attending circumstances and the policies
                  stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
                  license would not be detrimental to the public health, peace, safety, and welfare of the
                  community; or
                      (ii) with respect to the premises of any limited restaurant license issued by the
                  commission that undergoes a change of ownership, the commission may waive or vary the
                  proximity requirements of Subsections (4)(a) and (b) in considering whether to grant a limited
                  restaurant license to the new owner of the premises if:
                      (A) the premises previously received a variance reducing the proximity requirements of
                  Subsection (4)(a) or (b); or
                      (B) a variance from proximity or distance requirement was otherwise allowed under this
                  title.
                      (5) With respect to any public or private school, church, public library, public
                  playground, or park, the 600 foot limitation is measured from the nearest entrance of the outlet by
                  following the shortest route of ordinary pedestrian travel to the property boundary of the public
                  or private school, church, public library, public playground, school playground, or park.
                      (6) (a) Nothing in this section prevents the commission from considering the proximity
                  of any educational, religious, and recreational facility, or any other relevant factor in reaching a
                  decision on a proposed location.
                      (b) For purposes of this Subsection (6), "educational facility" includes:
                      (i) a nursery school;
                      (ii) an infant day care center; and
                      (iii) a trade and technical school.
                      Section 31. Section 32A-4-303 is enacted to read:
                      32A-4-303. Application and renewal requirements.

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                      (1) A person seeking a limited restaurant license under this part shall file a written
                  application with the department, in a form prescribed by the department. The application shall be
                  accompanied by:
                      (a) a nonrefundable $250 application fee;
                      (b) an initial license fee of $500, which is refundable if a license is not granted;
                      (c) written consent of the local authority;
                      (d) a copy of the applicant's current business license;
                      (e) evidence of proximity to any public or private school, church, public library, public
                  playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
                  Subsections 32A-4-302 (4) and (5), the application shall be processed in accordance with those
                  subsections;
                      (f) a bond as specified by Section 32A-4-306 ;
                      (g) a floor plan of the restaurant, including:
                      (i) consumption areas; and
                      (ii) the area where the applicant proposes to keep, store, and sell wine, heavy beer, and
                  beer;
                      (h) evidence that the restaurant is carrying public liability insurance in an amount and
                  form satisfactory to the department;
                      (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
                  $500,000 per occurrence and $1,000,000 in the aggregate;
                      (j) a signed consent form stating that the restaurant will permit any authorized
                  representative of the commission, department, or any law enforcement officer unrestricted right
                  to enter the restaurant;
                      (k) in the case of an applicant that is a partnership, corporation, or limited liability
                  company, proper verification evidencing that the person or persons signing the restaurant
                  application are authorized to so act on behalf of the partnership, corporation, or limited liability
                  company; and
                      (l) any other information the commission or department may require.

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                      (2) A holder of a restaurant liquor license or a private club license on May 5, 2003, may
                  not be required to pay the application or initial license fees for a limited restaurant license under
                  this chapter if the licensee:
                      (a) surrenders the restaurant liquor license or private club license before being granted a
                  limited restaurant license; and
                      (b) applies for a limited restaurant license in calendar year 2003:
                      (i) for the same premises for which the restaurant liquor license or private club license
                  was granted; and
                      (ii) before the expiration of the restaurant liquor license or private club license.
                      (3) (a) All limited restaurant licenses expire on October 31 of each year.
                      (b) Persons desiring to renew their limited restaurant license shall submit:
                      (i) a renewal fee of $300; and
                      (ii) a renewal application to the department no later than September 30.
                      (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of the
                  license effective on the date the existing license expires.
                      (d) Renewal applications shall be in a form as prescribed by the department.
                      (4) To ensure compliance with Subsection 32A-4-307 (27), the commission may suspend
                  or revoke a limited restaurant license if the limited restaurant licensee does not immediately
                  notify the department of any change in:
                      (a) ownership of the restaurant;
                      (b) for a corporate owner, the:
                      (i) corporate officer or directors; or
                      (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
                  corporation; or
                      (c) for a limited liability company:
                      (i) managers; or
                      (ii) members owning at least 20% of the limited liability company.
                      Section 32. Section 32A-4-304 is enacted to read:

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                      32A-4-304. Qualifications.
                      (1) (a) The commission may not grant a limited restaurant license to any person who has
                  been convicted of:
                      (i) a felony under any federal or state law;
                      (ii) any violation of any federal or state law or local ordinance concerning the sale,
                  manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
                      (iii) any crime involving moral turpitude; or
                      (iv) on two or more occasions within the five years before the day on which the license is
                  granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol
                  and any drug.
                      (b) In the case of a partnership, corporation, or limited liability company, the proscription
                  under Subsection (1)(a) applies if any of the following has been convicted of any offense
                  described in Subsection (1)(a):
                      (i) a partner;
                      (ii) a managing agent;
                      (iii) a manager;
                      (iv) an officer;
                      (v) a director;
                      (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of the
                  applicant corporation; or
                      (vii) a member who owns at least 20% of the applicant limited liability company.
                      (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
                  supervisory or managerial capacity for the limited restaurant has been convicted of any offense
                  described in Subsection (1)(a).
                      (2) The commission may immediately suspend or revoke a limited restaurant license if
                  after the day on which the limited restaurant license is granted, a person described in Subsection
                  (1)(a), (b), or (c):
                      (a) is found to have been convicted of any offense described in Subsection (1)(a) prior to

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                  the license being granted; or
                      (b) on or after the day on which the license is granted:
                      (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
                      (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug; and
                      (B) was convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug within five years before the day on which the person is
                  convicted of the offense described in Subsection (2)(b)(ii)(A).
                      (3) The director may take emergency action by immediately suspending the operation of
                  the limited restaurant license according to the procedures and requirements of Title 63, Chapter
                  46b, Administrative Procedures Act, for the period during which the criminal matter is being
                  adjudicated if a person described in Subsection (1)(a), (b), or (c):
                      (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii) or (iii); or
                      (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
                  any drug, or the combined influence of alcohol and any drug; and
                      (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
                  influence of alcohol and any drug within five years before the day on which the person is arrested
                  on a charge described in Subsection (3)(b)(i).
                      (4) (a) (i) The commission may not grant a limited restaurant license to any person who
                  has had any type of license, agency, or permit issued under this title revoked within the last three
                  years.
                      (ii) The commission may not grant a limited restaurant license to an applicant that is a
                  partnership, corporation, or limited liability company if any partner, managing agent, manager,
                  officer, director, stockholder who holds at least 20% of the total issued and outstanding stock of
                  an applicant corporation, or member who owns at least 20% of an applicant limited liability
                  company is or was:
                      (A) a partner or managing agent of any partnership that had any type of license, agency,
                  or permit issued under this title revoked within the last three years;

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                      (B) a managing agent, officer, director, or stockholder who holds or held at least 20% of
                  the total issued and outstanding stock of any corporation that had any type of license, agency, or
                  permit issued under this title revoked within the last three years; or
                      (C) a manager or member of any limited liability company who owns or owned at least
                  20% of a limited liability company that had any type of license, agency, or permit issued under
                  this title revoked within the last three years.
                      (b) An applicant that is a partnership, corporation, or limited liability company may not
                  be granted a limited restaurant license if any of the following had any type of license, agency, or
                  permit issued under this title revoked while acting in their individual capacity within the last
                  three years:
                      (i) any partner or managing agent of the applicant partnership;
                      (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
                  total issued and outstanding stock of the applicant corporation; or
                      (iii) any manager or member who owns at least 20% of the applicant limited liability
                  company.
                      (c) A person acting in an individual capacity may not be granted a limited restaurant
                  license if that person was:
                      (i) a partner or managing agent of a partnership that had any type of license, agency, or
                  permit issued under this title revoked within the last three years;
                      (ii) a managing agent, officer, director, or stockholder who held at least 20% of the total
                  issued and outstanding stock of a corporation that had any type of license, agency, or permit
                  issued under this title revoked within the last three years; or
                      (iii) a manager or member of a limited liability company who owned at least 20% of the
                  limited liability company that had any type of license, agency, or permit issued under this title
                  revoked within the last three years.
                      (5) (a) A minor may not be granted a limited restaurant license.
                      (b) The commission may not grant a limited restaurant license to an applicant that is a
                  partnership, corporation, or limited liability company if any of the following is a minor:

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                      (i) a partner or managing agent of the applicant partnership;
                      (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the total
                  issued and outstanding stock of the applicant corporation; or
                      (iii) a manager or member who owns at least 20% of the applicant limited liability
                  company.
                      (6) If any person to whom a license has been issued under this part no longer possesses
                  the qualifications required by this title for obtaining that license, the commission may suspend or
                  revoke that license.
                      Section 33. Section 32A-4-305 is enacted to read:
                      32A-4-305. Commission and department duties before granting licenses.
                      (1) (a) Before a limited restaurant license may be granted by the commission, the
                  department shall conduct an investigation and may hold public hearings for the purpose of
                  gathering information and making recommendations to the commission as to whether or not a
                  license should be granted.
                      (b) The department shall forward the information and recommendations described in
                  Subsection (1)(a) to the commission to aid in the commission's determination.
                      (2) Before issuing any limited restaurant license, the commission shall:
                      (a) determine that the applicant has complied with all basic qualifications and
                  requirements for making application for a license as provided by Sections 32A-4-302 and
                  32A-4-303 ;
                      (b) determine that the application is complete;
                      (c) consider the locality within which the proposed limited restaurant outlet is located,
                  including:
                      (i) physical characteristics such as:
                      (A) the condition of the premises;
                      (B) square footage; and
                      (C) parking availability; and
                      (ii) operational factors such as:

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                      (A) tourist traffic;
                      (B) proximity to and density of other state stores, package agencies, and outlets;
                      (C) demographics;
                      (D) population to be served; and
                      (E) the extent of and proximity to any school, church, public library, public playground,
                  or park;
                      (d) consider the applicant's ability to manage and operate a limited restaurant license,
                  including:
                      (i) management experience;
                      (ii) past retail liquor experience; and
                      (iii) the type of management scheme employed by the restaurant;
                      (e) consider the nature or type of restaurant operation, including:
                      (i) the type of menu items offered and emphasized;
                      (ii) whether the restaurant emphasizes service to an adult clientele or to minors;
                      (iii) the hours of operation;
                      (iv) the seating capacity of the facility; and
                      (v) the gross sales of food items; and
                      (f) consider any other factors or circumstances the commission considers necessary.
                      Section 34. Section 32A-4-306 is enacted to read:
                      32A-4-306. Bond.
                      (1) Each limited restaurant licensee shall post a cash or corporate surety bond in the
                  penal sum of $5,000 payable to the department, which the licensee has procured and must
                  maintain for so long as the licensee continues to operate as a limited restaurant licensee.
                      (2) The bond shall be in a form approved by the attorney general, conditioned upon the
                  licensee's faithful compliance with this title and the rules of the commission.
                      (3) (a) If the $5,000 surety bond is canceled due to the licensee's negligence, a $300
                  reinstatement fee may be assessed.
                      (b) No part of any cash or corporate bond so posted may be withdrawn during the period

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                  the license is in effect, or while revocation proceedings are pending against the licensee.
                      (c) A bond filed by a licensee may be forfeited if the license is finally revoked.
                      Section 35. Section 32A-4-307 is enacted to read:
                      32A-4-307. Operational restrictions.
                      Each person granted a limited restaurant license and the employees and management
                  personnel of the restaurant shall comply with the following conditions and requirements. Failure
                  to comply may result in a suspension or revocation of the license or other disciplinary action
                  taken against individual employees or management personnel.
                      (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee except
                  from state stores or package agencies.
                      (b) Wine and heavy beer purchased in accordance with Subsection (1)(a) may be
                  transported by the licensee from the place of purchase to the licensed premises.
                      (c) Payment for wine and heavy beer shall be made in accordance with rules established
                  by the commission.
                      (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of
                  spirituous liquor on the premises of the restaurant.
                      (b) Spirituous liquor may not be on the premises of the restaurant except for use:
                      (i) as a flavoring on desserts; and
                      (ii) in the preparation of flaming food dishes, drinks, and desserts.
                      (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
                  exceed five ounces per glass or individual portion.
                      (ii) An individual portion may be served to a patron in more than one glass as long as the
                  total amount of wine does not exceed five ounces.

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

                      (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed
                  by the commission to tables of four or more persons.
                      (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by

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                  the commission to tables of less than four persons.
                      (c) A wine service may be performed and a service charge assessed by the limited
                  restaurant as authorized by commission rule for wine purchased at the limited restaurant.
                      (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
                  fixed by the commission.
                      (b) A service charge may be assessed by the limited restaurant as authorized by
                  commission rule for heavy beer purchased at the restaurant.
                      (5) (a) A limited restaurant licensee may sell beer in any size container not exceeding
                  two liters, and on draft for on-premise consumption without obtaining a separate on-premise beer
                  retailer license from the commission.
                      (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a) shall
                  comply with all appropriate operational restrictions under Chapter 10, Beer Retailer Licenses,
                  that apply to on-premise beer retailers except when those restrictions are inconsistent with or less
                  restrictive than the operational restrictions under this part.
                      (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
                  Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
                  restaurant's:
                      (i) limited restaurant license; and
                      (ii) alcoholic beverage license issued by the local authority.
                      (6) Wine, heavy beer, and beer may not be stored, served, or sold in any place other than
                  as designated in the licensee's application, unless the licensee first applies for and receives
                  approval from the department for a change of location within the restaurant.
                      (7) (a) A patron may only make alcoholic beverage purchases in the limited restaurant
                  from and be served by a person employed, designated, and trained by the licensee to sell and
                  serve alcoholic beverages.
                      (b) Notwithstanding Subsection (7)(a), a patron who has purchased bottled wine from an
                  employee of the restaurant or has carried bottled wine onto the premises of the restaurant
                  pursuant to Subsection (13) may thereafter serve wine from the bottle to themselves or others at

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                  the patron's table.
                      (c) Each restaurant patron may have no more than two alcoholic beverages of any kind at
                  a time before the patron.
                      (8) The alcoholic beverage storage area shall remain locked at all times other than those
                  hours and days when alcoholic beverage sales are authorized by law.
                      (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
                  furnished at a limited restaurant during the following days or hours:
                      (i) until after the polls are closed on the day of any:
                      (A) regular general election;
                      (B) regular primary election; or
                      (C) statewide special election;
                      (ii) on the day of any municipal, special district, or school election, but only:
                      (A) within the boundaries of the municipality, special district, or school district; and
                      (B) if closure is required by local ordinance; and
                      (iii) on any other day after 12 midnight and before 12 noon.
                      (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
                  Licenses, for on-premise beer licensees.
                      (10) Alcoholic beverages may not be sold except in connection with an order of food
                  prepared, sold, and served at the restaurant.
                      (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to any:
                      (a) minor;
                      (b) person actually, apparently, or obviously intoxicated;
                      (c) known habitual drunkard; or
                      (d) known interdicted person.
                      (12) (a) (i) Wine and heavy beer may be sold only at prices fixed by the commission.
                      (ii) Wine and heavy beer may not be sold at discount prices on any date or at any time.
                      (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverages
                  to the licensee.

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                      (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
                  over consumption or intoxication.
                      (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
                  hours of the limited restaurant's business day such as a "happy hour."
                      (e) The sale or service of more than one alcoholic beverage for the price of a single
                  alcoholic beverage is prohibited.
                      (f) The sale or service of an indefinite or unlimited number of alcoholic beverages during
                  any set period for a fixed price is prohibited.
                      (g) A limited restaurant licensee may not engage in a public promotion involving or
                  offering free alcoholic beverages to the general public.
                      (13) Alcoholic beverages may not be purchased by the licensee, or any employee or agent
                  of the licensee, for a patron of the restaurant.
                      (14) (a) A person may not bring onto the premises of a limited restaurant licensee any
                  alcoholic beverage for on-premise consumption, except a person may bring, subject to the
                  discretion of the licensee, bottled wine onto the premises of any limited restaurant licensee for
                  on-premise consumption.
                      (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or its
                  officers, managers, employees, or agents may not allow:
                      (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
                  consumption; or
                      (ii) consumption of any alcoholic beverage described in Subsection (14)(b)(i) on its
                  premises.
                      (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server or
                  other representative of the licensee upon entering the restaurant.
                      (d) A wine service may be performed and a service charge assessed by the restaurant as
                  authorized by commission rule for wine carried in by a patron.
                      (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and its
                  employees may not permit a restaurant patron to carry from the restaurant premises an open

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                  container that:
                      (i) is used primarily for drinking purposes; and
                      (ii) contains any alcoholic beverage.
                      (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed contents
                  of a bottle of wine if before removal the bottle has been recorked or recapped.
                      (16) (a) A minor may not be employed by a limited restaurant licensee to sell or dispense
                  alcoholic beverages.
                      (b) Notwithstanding Subsection (16)(a), a minor may be employed to enter the sale at a
                  cash register or other sales recording device.
                      (17) An employee of a limited restaurant licensee, while on duty, may not:
                      (a) consume an alcoholic beverage; or
                      (b) be intoxicated.
                      (18) A charge or fee made in connection with the sale, service, or consumption of wine
                  or heavy beer may be stated in food or alcoholic beverage menus including:
                      (a) a service charge; or
                      (b) a chilling fee.
                      (19) Each limited restaurant licensee shall display in a prominent place in the restaurant:
                      (a) the license that is issued by the department; and
                      (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
                  drugs is a serious crime that is prosecuted aggressively in Utah."
                      (20) The following acts or conduct in a restaurant licensed under this part are considered
                  contrary to the public welfare and morals, and are prohibited upon the premises:
                      (a) employing or using any person in the sale or service of alcoholic beverages while the
                  person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
                  female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
                  buttocks, vulva, or genitals;
                      (b) employing or using the services of any person to mingle with the patrons while the
                  person is unclothed or in attire, costume, or clothing described in Subsection (20)(a);

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                      (c) encouraging or permitting any person to touch, caress, or fondle the breasts, buttocks,
                  anus, or genitals of any other person;
                      (d) permitting any employee or person to wear or use any device or covering, exposed to
                  view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
                      (e) permitting any person to use artificial devices or inanimate objects to depict any of
                  the prohibited activities described in this Subsection (20);
                      (f) permitting any person to remain in or upon the premises who exposes to public view
                  any portion of that person's genitals or anus; or
                      (g) showing films, still pictures, electronic reproductions, or other visual reproductions
                  depicting:
                      (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
                  copulation, flagellation, or any sexual acts prohibited by Utah law;
                      (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
                  genitals;
                      (iii) scenes wherein artificial devices or inanimate objects are used to depict, or drawings
                  are used to portray, any of the prohibited activities described in this Subsection (20); or
                      (iv) scenes wherein a person displays the vulva, anus, or the genitals.
                      (21) Nothing in Subsection (20) precludes a local authority from being more restrictive
                  of acts or conduct of the type prohibited in Subsection (20).
                      (22) (a) Although live entertainment is permitted on the premises of a limited restaurant
                  licensee, a licensee may not allow any person to perform or simulate sexual acts prohibited by
                  Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral copulation,
                  flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the
                  displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon a
                  stage or at a designated area approved by the commission.
                      (b) Nothing in Subsection (22)(a) precludes a local authority from being more restrictive
                  of acts or conduct of the type prohibited in Subsection (22)(a).
                      (23) A limited restaurant licensee may not engage in or permit any form of gambling, or

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                  have any video gaming device, as defined and proscribed by Title 76, Chapter 10, Part 11,
                  Gambling, on the premises of the restaurant.
                      (24) (a) Each limited restaurant licensee shall maintain an expense ledger or record
                  showing in detail:
                      (i) quarterly expenditures made separately for:
                      (A) wine;
                      (B) heavy beer;
                      (C) beer;
                      (D) food; and
                      (E) all other items required by the department; and
                      (ii) sales made separately for:
                      (A) wine;
                      (B) heavy beer;
                      (C) beer;
                      (D) food; and
                      (E) all other items required by the department.
                      (b) The record required by Subsection (24)(a) shall be kept:
                      (i) in a form approved by the department; and
                      (ii) current for each three-month period.
                      (c) Each expenditure shall be supported by:
                      (i) delivery tickets;
                      (ii) invoices;
                      (iii) receipted bills;
                      (iv) canceled checks;
                      (v) petty cash vouchers; or
                      (vi) other sustaining data or memoranda.
                      (d) In addition to the ledger or record maintained under Subsections (24)(a) through (c), a
                  limited restaurant licensee shall maintain accounting and other records and documents as the

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                  department may require.
                      (e) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,
                  alters, cancels, destroys, conceals, or removes the entries in any of the books of account or other
                  documents of the restaurant required to be made, maintained, or preserved by this title or the
                  rules of the commission for the purpose of deceiving the commission or department, or any of
                  their officials or employees, is subject to the suspension or revocation of the limited restaurant's
                  license and possible criminal prosecution under Chapter 12, Criminal Offenses.
                      (25) (a) A limited restaurant licensee may not close or cease operation for a period longer
                  than 240 hours, unless:
                      (i) the limited restaurant licensee notifies the department in writing at least seven days
                  before the closing; and
                      (ii) the closure or cessation of operation is first approved by the department.
                      (b) Notwithstanding Subsection (25)(a), in the case of emergency closure, immediate
                  notice of closure shall be made to the department by telephone.
                      (c) (i) Subject to Subsection (25)(c)(iii), the department may authorize a closure or
                  cessation of operation for a period not to exceed 60 days.
                      (ii) The department may extend the initial period an additional 30 days upon:
                      (A) written request of the limited restaurant licensee; and
                      (B) a showing of good cause.
                      (iii) A closure or cessation of operation may not exceed a total of 90 days without
                  commission approval.
                      (d) Any notice required by Subsection (25)(a) shall include:
                      (i) the dates of closure or cessation of operation;
                      (ii) the reason for the closure or cessation of operation; and
                      (iii) the date on which the licensee will reopen or resume operation.
                      (e) Failure of the licensee to provide notice and to obtain department authorization before
                  closure or cessation of operation shall result in an automatic forfeiture of:
                      (i) the license; and

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                      (ii) the unused portion of the license fee for the remainder of the license year effective
                  immediately.
                      (f) Failure of the licensee to reopen or resume operation by the approved date shall result
                  in an automatic forfeiture of:
                      (i) the license; and
                      (ii) the unused portion of the license fee for the remainder of the license year.
                      (26) Each limited restaurant licensee shall maintain at least 70% of its total restaurant
                  business from the sale of food, which does not include service charges.
                      (27) A limited restaurant license may not be transferred from one location to another,
                  without prior written approval of the commission.
                      (28) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,
                  give, or attempt in any way to dispose of the license to any other person whether for monetary
                  gain or not.
                      (b) A limited restaurant license has no monetary value for the purpose of any type of
                  disposition.
                      (29) (a) Each server of wine, heavy beer, and beer in a limited restaurant licensee's
                  establishment shall keep a written beverage tab for each table or group that orders or consumes
                  alcoholic beverages on the premises.
                      (b) The beverage tab required by Subsection (29)(a) shall list the type and amount of
                  alcoholic beverages ordered or consumed.
                      (30) A limited restaurant licensee may not make a person's willingness to serve alcoholic
                  beverages a condition of employment as a server with the restaurant.
                      Section 36. Section 32A-4-401 is enacted to read:
                 
Part 4. On-Premise Banquet License

                      32A-4-401. Commission's power to grant licenses -- Limitations.
                      (1) (a) Beginning May 5, 2003, and ending June 30, 2005, the commission may issue an
                  on-premise banquet license to any of the following persons for the purpose of allowing the
                  storage, sale, service, and consumption of alcoholic beverages in connection with that person's

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                  banquet and room service activities:
                      (i) hotel;
                      (ii) resort facility;
                      (iii) sports center; or
                      (iv) convention center.
                      (b) This chapter is not intended to prohibit liquor on the premises of a person listed in
                  Subsection (1) to the extent otherwise permitted by this title.
                      (2) (a) Subject to this section, the total number of on-premise banquet licenses may not at
                  any time aggregate more than that number determined by dividing the population of the state by
                  30,000.
                      (b) For purposes of this Subsection (2), the population of the state shall be determined
                  by:
                      (i) the most recent United States decennial or special census; or
                      (ii) any other population determination made by the United States or state governments.
                      (3) Pursuant to a contract between the host of a banquet and an on-premise banquet
                  licensee:
                      (a) the host of a contracted banquet may request an on-premise banquet licensee to
                  provide alcoholic beverages served at a banquet; and
                      (b) an on-premise banquet licensee may provide the alcoholic beverages served at a
                  banquet.
                      (4) At a banquet, an on-premise banquet licensee may provide:
                      (a) a hosted bar; or
                      (b) a cash bar.
                      (5) Nothing in this section shall prohibit a qualified on-premise banquet license applicant
                  from applying for a package agency.
                      (6) (a) The premises of an on-premise banquet license may not be established within 600
                  feet of any public or private school, church, public library, public playground, or park, as
                  measured by the method in Subsection (7).

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                      (b) The premises of an on-premise banquet license may not be established within 200
                  feet of any public or private school, church, public library, public playground, or park, measured
                  in a straight line from the nearest entrance of the proposed outlet to the nearest property boundary
                  of the public or private school, church, public library, public playground, or park.
                      (c) The restrictions contained in Subsections (6)(a) and (b) govern unless one of the
                  following exemptions applies:
                      (i) with respect to the establishment of an on-premise banquet license within any
                  location, the commission may authorize a variance to reduce the proximity requirements of
                  Subsection (6)(a) or (b) if:
                      (A) the local governing authority has granted its written consent to the variance;
                      (B) alternative locations for establishing an on-premise banquet license in the community
                  are limited;
                      (C) a public hearing has been held in the city, town, or county, and where practical in the
                  neighborhood concerned; and
                      (D) after giving full consideration to all of the attending circumstances and the policies
                  stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
                  license would not be detrimental to the public health, peace, safety, and welfare of the
                  community; or
                      (ii) with respect to the premises of any on-premise banquet license issued by the
                  commission that undergoes a change of ownership, the commission may waive or vary the
                  proximity requirements of Subsections (6)(a) and (b) in considering whether to grant an
                  on-premise banquet license to the new owner of the premises if:
                      (A) the premises previously received a variance reducing the proximity requirements of
                  Subsection (6)(a) or (b); or
                      (B) a variance from proximity or distance requirements was otherwise allowed under this
                  title.
                      (7) With respect to any public or private school, church, public library, public
                  playground, or park, the 600 foot limitation is measured from the nearest entrance of the outlet by

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                  following the shortest route of ordinary pedestrian travel to the property boundary of the public
                  or private school, church, public library, public playground, school playground, or park.
                      (8) (a) Nothing in this section prevents the commission from considering the proximity
                  of any educational, religious, and recreational facility, or any other relevant factor in reaching a
                  decision on a proposed location.
                      (b) For purposes of this Subsection (8), "educational facility" includes:
                      (i) a nursery school;
                      (ii) an infant day care center; and
                      (iii) a trade and technical school.
                      Section 37. Section 32A-4-402 is enacted to read:
                      32A-4-402. Application and renewal requirements.
                      (1) A person seeking an on-premise banquet license under this part shall file a written
                  application with the department, in a form prescribed by the department. The application shall be
                  accompanied by:
                      (a) a nonrefundable $250 application fee;
                      (b) an initial license fee of $500, which is refundable if a license is not granted;
                      (c) written consent of the local authority;
                      (d) a copy of the applicant's current business license;
                      (e) evidence of proximity to any public or private school, church, public library, public
                  playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
                  Subsections 32A-4-401 (7) and (8), the application shall be processed in accordance with those
                  subsections;
                      (f) a bond as specified by Section 32A-4-405 ;
                      (g) a description or floor plan and boundary map of the premises, where appropriate, of
                  the on-premise banquet license applicant's location, designating:
                      (i) the location at which the on-premise banquet license applicant proposes that alcoholic
                  beverages be stored; and