Download Zipped Enrolled WP 9 SB0153.ZIP
[Introduced][Amended][Status][Bill Documents][Fiscal Note][Bills Directory]
S.B. 153 Enrolled
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
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
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
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
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
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.
[
[
[
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 [
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
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[
(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:
(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.
[
(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[
(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 [
(i) contains alcohol in the percentages described in Subsection (6)(a); and
(ii) is referred to as:
(A) malt liquor[
(B) malted beverages[
(C) malt coolers.
[
(i) engaged, primarily or incidentally, in the retail sale [
patrons, whether for consumption on or off the establishment's premises[
(ii) licensed to sell beer by:
(A) the commission[
(B) a local authority[
(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 [
retailer's premises.
(ii) "On-premise beer retailer" includes [
[
[
[
(a) a light device[
(b) a painting[
(c) a drawing[
(d) a poster[
(e) a sign[
(f) a signboard[
(g) a scoreboard[
[
[
[
[
[
[
[
[
[
(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.
[
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.
[
(a) set apart [
(b) in which religious services are held;
(c) with which clergy is associated; and
[
[
[
following organized primarily for the benefit of its [
(a) a social club;
(b) a recreational association;
(c) a fraternal association;
(d) an athletic association; or
(e) a kindred association.
[
[
(15) "Convention center" is as defined by rule by the commission.
[
[
the department that is saleable, but for some reason is unappealing to the public.
[
selling food and grocery supplies to public patrons for off-premise consumption.
[
[
who enjoys only those privileges derived from the host for the duration of the visit to the club.
[
(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.
[
Chapter 3, Part 8, Identification Card Act.
[
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).
[
manufacture, store, or allow consumption of alcoholic beverages on premises owned or
controlled by the person.
[
authority, other than a bus or taxicab:
(a) in which the driver and passengers are separated by a partition, glass, or other barrier;
and
(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.
[
fermented, malt, or other liquid, or combination of liquids, a part of which is [
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.
[
(a) the [
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.
[
ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
others.
[
of a club under this title.
[
[
alcoholic beverages are sold pursuant to a license issued by the commission.
[
liquor.
[
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.
[
package agency pursuant to a contractual agreement with the department to sell liquor from
premises that the package agent shall provide and maintain.
[
acts or exercise privileges as specifically granted in the permit.
[
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.
[
guide the administration of this title and the management of the affairs of the department.
[
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.
[
and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
[
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.
[
(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
(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.
[
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.
[
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.
[
(47) "Resort facility" is as defined by rule by the commission.
[
(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
dining accommodations; and
(c) that is engaged primarily in serving meals to the general public.
[
beverages to the consumer.
(50) "Room service" includes service of alcoholic beverages to a guest room of a:
(a) hotel; or
(b) resort facility.
[
(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[
(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. [
(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.
[
(i) a department [
(ii) an industry representative [
[
(b) "Department sample" means liquor, wine, and heavy beer that has been placed in the
possession of the department for testing, analysis, and sampling.
[
[
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
and characteristics of the product.
[
[
[
[
[
minors.
(b) "School" does not include:
(i) a nursery [
(ii) an infant day care [
(iii) a trade or technical [
[
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.
[
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.
[
affixed to all liquor containers sold in the state.
(b) "State label" includes the department identification mark and inventory control
number.
[
(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[
(iii) package [
[
(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.
[
person who does not have a present intention to continue residency within Utah permanently or
indefinitely.
[
(a) is unsaleable because [
open, or partly filled[
(b) is in a container:
(i) having faded labels or defective caps or corks[
(ii) in which the contents are cloudy, spoiled, or chemically determined to be impure[
or
(iii) that contains:
(A) sediment[
(B) any foreign substance[
(c) is otherwise considered by the department as unfit for sale.
[
Section 32A-5-107 holds limited privileges in a private club by virtue of a visitor card [
[
in the importation for sale, storage, or distribution of liquor regardless of amount.
[
sale of beer in wholesale or jobbing quantities to retailers, other than a small brewer selling beer
manufactured by that brewer.
[
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:
(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; [
[
(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, [
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;
[
[
(viii) temporary special event beer permits;
[
[
[
[
[
(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
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
[
(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.
(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;
(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; [
[
(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;
(9) keep a current copy of the manuals containing the rules and policies of the
department and commission available for public inspection; [
(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
[
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 [
been convicted of:
[
[
concerning the sale, manufacture, distribution, warehousing, adulteration, or transportation of
alcoholic beverages; [
[
(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) [
action consistent with Title 67, Chapter 19, [
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
(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).
[
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
[
(c) Upon receiving an application the department shall determine whether the applicant
is:
(i) of good moral character; and [
(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, [
[
(5) The following are not considered an employee of the department[
(a) a package agent;
(b) a licensee;
(c) an employee of a package agent; or
(d) an employee of a licensee.
[
(a) work in:
(i) any state liquor store; or
(ii) departmental warehouse[
(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.
(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[
(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
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) [
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 [
(b) A [
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
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 the department [
(i) a report from any government agency, peace officer, examiner, or investigator
alleging that a permittee or licensee or any [
agent of a permittee or licensee has violated this title or the rules of the commission[
(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:
[
officer, employee, or agent of the permittee or licensee violated this title or rules of the
commission; and
[
(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) [
(i) if required by law[
(ii) before revoking or suspending any permit or license [
title[
(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
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 [
effective.
(c) If the commission is satisfied that a permittee [
or agent of a permittee or licensee has committed a violation of this title[
rules, [
commission may [
(i) suspend or revoke the permit or the license [
(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[
(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.
(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.
[
any compliance bond posted by the permittee or licensee.
[
for a permit or license under this title for three years from the date the permit or license was
revoked.
[
in accordance with Section 32A-1-113 .
(6) (a) [
under this section, the department may [
[
(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 [
[
(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 [
Subsection (7)(b)(i)(A) for a period determined by the commission [
(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[
(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 [
(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[
(3) [
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[
(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. [
(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 [
of any [
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 [
suspend, [
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. [
(b) 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) 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) 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) [
commission may[
(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 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 [
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 [
(ii) an infant day care [
(iii) a trade and technical [
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 [
(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;
(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 [
(ii) A seasonal package agency [
[
known as a "Seasonal A" package agency. The period of operation for a "Seasonal A" agency
[
(A) begin on May 1; and
(B) end on October 31.
[
known as a "Seasonal B" package agency. The period of operation for a "Seasonal B" agency
[
(A) begin on November 1; and
(B) end on April 30.
[
establish under this section:
(A) a seasonal package agency is counted as [
(B) each "Seasonal A" agency shall be paired with a "Seasonal B" agency[
[
(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
may not be established within 600 feet of any[
public playground, or park.
[
[
[
[
[
(b) [
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 [
[
[
[
[
[
[
[
[
[
[
[
[
[
[
(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:
(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 [
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;
(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)[
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 [
liability company, proper verification evidencing that the person or persons signing the package
agency application are authorized to so act on [
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;
[
(iii) any crime involving moral turpitude[
(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 [
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
[
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 package agency has been convicted of any offense
described in Subsection (1)(a).
(2) The commission may[
suspend or revoke the package agency[
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).
[
(3) [
package agency for the period during which the criminal matter is being adjudicated[
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 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 [
applicant that is a partnership, corporation, or limited liability company if any partner, managing
agent, manager, officer, director, [
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[
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 [
within the last three years.
(b) [
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 [
(ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
total issued and outstanding stock of the [
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 package agency if that
person was:
(i) a partner or managing agent of a partnership[
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 [
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 [
(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 [
(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[
(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
immediate termination of the package agency agreement.
[
[
[
[
[
[
(i) granted a package agency; or [
(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.
[
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
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) (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 [
(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 [
(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;
(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 [
(i) the package agency notifies the department in writing at least seven days before the
closing[
(ii) the closure or cessation of operation is first approved by the department.
(b) [
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) [
(i) the dates of closure or cessation of operation[
(ii) the reason for the closure or cessation of operation[
(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) 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.
[
without prior written approval of the commission.
[
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 [
remains unsold [
agreement terminates for any reason, shall be immediately returned to the department [
department.
Section 20. Section 32A-4-101 is amended to read:
32A-4-101. Commission's power to grant licenses -- Limitations.
(1) Before [
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) [
(i) the most recent United States decennial or special census; or [
(ii) any other population determination made by the United States or state governments.
[
areas [
(ii) A seasonal restaurant liquor license [
[
[
time [
period of operation for a "Seasonal A" restaurant liquor license [
(A) begin on May 1; and
(B) end on October 31.
[
[
of operation for a "Seasonal B" restaurant liquor license [
(A) begin on November 1; and
(B) end on April 30.
[
may issue under this section[
(A) a seasonal [
(B) each "Seasonal A" license shall be paired with a "Seasonal B" license [
[
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) [
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) [
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 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
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 [
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 [
(ii) an infant day care [
(iii) a trade and technical [
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 [
written application with the department, in a form prescribed by the department. It shall be
accompanied by:
(a) a nonrefundable [
(b) an initial license fee of [
(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)[
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 [
liability company, proper verification evidencing that the person or persons signing the restaurant
application are authorized to so act on [
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:
(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) [
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[
(b) for a [
(i) corporate officers 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 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 [
(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[
(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 [
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
[
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) 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) [
operation of [
requirements of Title 63, Chapter 46b, Administrative Procedures Act, for the period during
which the criminal matter is being adjudicated[
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
years.
(ii) The commission may not grant a restaurant liquor license to [
partner, managing agent, manager, officer, director, [
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[
license, agency, or permit issued under this title revoked within the last three years;
(B) a managing agent, officer, director, or [
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 [
within the last three years.
(b) [
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 [
(ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
total issued and outstanding stock of the [
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 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 [
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 [
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 [
$300 reinstatement fee may be assessed.
(b) No part of any cash or corporate bond so posted may be withdrawn:
(i) during the period the license is in effect[
(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 [
[
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";
(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.
[
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.
[
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.
[
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) [
Subsection [
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 [
(c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
Licenses, required by Subsection [
restaurant's:
(i) state liquor license; and
(ii) alcoholic beverage license issued by the local authority.
[
[
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.
[
from [
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) Alcoholic beverages may not be served to or consumed by a patron at a bar.
(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).
[
and days when liquor sales are authorized by law.
[
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[
(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.
[
food prepared, sold, and served at the restaurant.
[
furnished to any:
(a) minor;
(b) person actually, apparently, or obviously [
(c) known habitual drunkard; or
(d) known interdicted person.
[
(ii) Liquor may not be sold at discount prices on any date or at any time.
(b) An alcoholic beverage may not be sold [
less than the cost of the alcoholic beverage to the licensee.
[
[
[
[
[
(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.
[
or agent of the licensee, for patrons of the restaurant.
[
[
[
[
any alcoholic beverage for on-premise consumption, except a person may bring, subject to the
discretion of the licensee, [
licensee [
(b) [
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[
[
[
[
[
[
[
[
(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
(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.
[
dispense alcoholic beverages.
(b) Notwithstanding Subsection [
at a cash register or other sales recording device.
[
(a) consume an alcoholic beverage; or
(b) be [
[
[
[
made in connection with the sale, service, or consumption of liquor may be stated in food or
alcoholic beverage menus[
(a) a set-up charge;
(b) a service charge; or
(c) a chilling fee.
[
restaurant:
(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
drugs is a serious crime that is prosecuted aggressively in Utah."
[
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 [
(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 [
(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 [
(iv) scenes wherein a person displays the vulva or the anus or the genitals.
[
restrictive of acts or conduct of the type prohibited in Subsection [
[
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 [
restrictive of acts or conduct of the type prohibited in Subsection [
[
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.
[
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 [
(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.
[
restaurant liquor licensee shall maintain accounting and other records and documents as the
department may require.
[
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 [
restaurant's liquor license and possible criminal prosecution under Chapter 12, Criminal
Offenses.
[
longer than 240 hours, unless:
(i) the restaurant liquor [
days before the closing; and
(ii) the closure or cessation of operation is first approved by the department.
(b) Notwithstanding Subsection [
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
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.
[
restaurant business from the sale of food, which does not include mix for alcoholic beverages or
service charges.
[
(27) A restaurant liquor license may not be transferred from one location to another,
without prior written approval of the commission.
[
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.
[
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.
[
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 [
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 [
(b) an initial license fee of [
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;
(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 [
liability company, proper verification evidencing that the person or persons signing the airport
lounge application are authorized to so act on [
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 [
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) [
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[
(b) for a [
(i) corporate officers 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 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 [
(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[
(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 [
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
[
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
described in Subsection (1)(a).
(2) [
immediately [
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).
[
(3) [
operation of [
requirements of Title 63, Chapter 46b, Administrative Procedures Act, for the period during
which the criminal matter is being adjudicated[
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 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 [
partner, managing agent, manager, officer, director, [
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[
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 [
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 [
(ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
total issued and outstanding stock of the [
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 an airport lounge liquor
license if that person was:
(i) a partner or managing agent of a partnership[
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
[
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
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 [
liquor [
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.
[
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.
[
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.
[
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) [
[
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 [
(c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
Licenses, [
revocation of the airport lounge's:
(i) state liquor license; and [
(ii) alcoholic beverage license issued by the local authority.
[
[
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.
[
be served by a [
and serve alcoholic beverages.
[
(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.
[
and days when liquor sales and service are authorized by law.
[
furnished at an airport lounge [
[
furnished to any:
(a) minor;
(b) person actually, apparently, or obviously [
(c) known habitual drunkard; or
(d) known interdicted person.
(11) (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.
[
[
[
[
[
(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 [
(13) (a) [
airport lounge licensee any alcoholic beverage for on-premise consumption.
(b) [
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.
[
[
[
(14) [
patron to remove any alcoholic beverages from the airport lounge premises.
(15) (a) [
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) consume an alcoholic beverage; or
(b) be [
(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.
[
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
drugs is a serious crime that is prosecuted aggressively in Utah."
[
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.
[
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) [
transferred from one location to another, without prior written approval of the commission.
(21) (a) [
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.
(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:
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
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
(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
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.
(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.
(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:
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
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;
(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:
(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:
(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
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
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
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.
(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
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);
(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
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
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
(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:
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
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).
(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
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
(ii) the designated locations on the premises of the applicant from which the on-premise
banquet license applicant proposes that alcoholic beverages be sold or served, and consumed;
(h) evidence that the on-premise banquet license applicant is carrying public liability
insurance in an amount and form satisfactory to the department;
(i) evidence that the on-premise banquet license applicant 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 on-premise banquet license applicant 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 on-premise
banquet license 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.
(2) Additional locations in or on the premises of an on-premise banquet license
applicant's business from which the on-premise banquet license applicant may propose that
alcoholic beverages may be stored, sold or served, or consumed, not included in the applicant's
original application may be approved by the department upon proper application, in accordance
with guidelines approved by the commission.
(3) (a) All on-premise banquet licenses expire on October 31 of each year.
(b) Persons desiring to renew their on-premise banquet license shall submit a renewal fee
of $500 and a completed 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-4-406 (26), the commission may suspend
or revoke an on-premise banquet license if the on-premise banquet licensee fails to immediately
notify the department of any change in:
(a) ownership of the licensee;
(b) for a corporate owner, the:
(i) corporate officers 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 38. Section 32A-4-403 is enacted to read:
32A-4-403. Qualifications.
(1) (a) The commission may not grant an on-premise banquet 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 on-premise banquet licensee has been convicted of any
offense described in Subsection (1)(a).
(2) The commission may immediately suspend or revoke an on-premise banquet license
if after the day on which the on-premise banquet 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) The director may take emergency action by immediately suspending the operation of
an on-premise banquet 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 an on-premise banquet 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 on-premise banquet 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;
(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 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 an on-premise banquet 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 an on-premise banquet
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 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 an on-premise banquet license.
(b) The commission may not grant an on-premise banquet 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 39. Section 32A-4-404 is enacted to read:
32A-4-404. Commission and department duties before granting licenses.
(1) (a) Before an on-premise banquet 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 an
on-premise banquet 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 an on-premise banquet 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-4-402 and
32A-4-403 ;
(b) determine that the application is complete;
(c) consider, where appropriate, the locations the on-premise banquet license applicant
proposes to designate for use under an on-premise banquet license, including:
(i) the physical characteristics of the locations such as:
(A) the condition of the premises;
(B) square footage; and
(C) parking availability; and
(ii) operational factors such as:
(A) tourist traffic;
(B) demographics; and
(C) population to be served;
(d) consider the applicant's ability to manage and operate an on-premise banquet license,
including:
(i) past management experience;
(ii) past alcohol license experience; and
(iii) the type of management scheme to be employed by the on-premise banquet license
applicant;
(e) consider the nature or type of the on-premise banquet license applicant's business
operation; and
(f) consider any other factors or circumstances the commission considers necessary.
Section 40. Section 32A-4-405 is enacted to read:
32A-4-405. Bond.
(1) Each on-premise banquet licensee shall post a cash or corporate surety bond in the
penal sum of $10,000 payable to the department, which the licensee has procured and must
maintain for so long as the licensee continues to operate as an on-premise banquet 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 $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 during the period
the license is in effect, or while revocation proceedings are pending against the licensee.
(c) A bond filed by an on-premise banquet licensee may be forfeited if the license is
finally revoked.
Section 41. Section 32A-4-406 is enacted to read:
32A-4-406. Operational restrictions.
Each person granted an on-premise banquet license and the employees and management
personnel of the on-premise banquet licensee shall comply with this title, the rules of the
commission, and 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 person involved in the sale or service of alcoholic beverages under the on-premise
banquet license shall:
(a) be under the supervision and direction of the on-premise banquet licensee; and
(b) complete the seminar provided for in Section 62A-15-401 .
(2) (a) Liquor may not be purchased by the on-premise banquet licensee except from
state stores or package agencies.
(b) Liquor purchased in accordance with Subsection (2)(a) may be transported by the
on-premise banquet 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.
(3) Alcoholic beverages may be sold or provided at a banquet, or in connection with
room service, subject to the following restrictions:
(a) An on-premise banquet licensee may sell or provide any primary spirituous liquor
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:
(i) 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:
(A) the secondary ingredient may be dispensed only in conjunction with the purchase of
a primary spirituous liquor;
(B) the secondary ingredient may not be the only spirituous liquor in the beverage;
(C) the on-premise banquet licensee shall designate a location where flavorings are
stored on the floor plan provided to the department; and
(D) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
(ii) spirituous liquor need not be dispensed through a calibrated metered dispensing
system if used:
(A) as a flavoring on desserts; and
(B) in the preparation of flaming food dishes, drinks, and desserts;
(iii) each attendee may have no more than 2.75 ounces of spirituous liquor at a time
before the attendee; and
(iv) each attendee may have no more than one spirituous liquor drink at a time before the
attendee.
(b) (i) (A) Wine may be sold and served by the glass or an individual portion not to
exceed five ounces per glass or individual portion.
(B) An individual portion may be served to an attendee in more than one glass as long as
the total amount of wine does not exceed five ounces.
(C) An individual portion of wine is considered to be one alcoholic beverage under
Subsection (5)(c).
(ii) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed by
the commission.
(iii) A wine service may be performed and a service charge assessed by the on-premise
banquet licensee as authorized by commission rule for wine purchased on the banquet premises.
(c) (i) Heavy beer may be served in original containers not exceeding one liter at prices
fixed by the commission.
(ii) A service charge may be assessed by the on-premise banquet licensee as authorized
by commission rule for heavy beer purchased on the banquet premises.
(d) Beer may be sold and served in any size container not exceeding two liters, and on
draft for on-premise consumption.
(4) Alcoholic beverages may not be stored, served, or sold in any place other than as
designated in the on-premise banquet licensee's application, except that additional locations in or
on the premises of an on-premise banquet licensee may be approved in accordance with
guidelines approved by the commission as provided in Subsection 32A-4-402 (2).
(5) (a) An attendee may only make alcoholic beverage purchases from and be served by a
person employed, designated, and trained by the on-premise banquet licensee to sell and serve
alcoholic beverages.
(b) Notwithstanding Subsection (5)(a), an attendee who has purchased bottled wine from
an employee of the on-premise banquet licensee may thereafter serve wine from the bottle to
themselves or others at the attendee's table.
(c) Each attendee may have no more than two alcoholic beverages of any kind at a time
before the attendee.
(6) 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.
(7) (a) Except as provided in Subsection (7)(b), alcoholic beverages may be offered for
sale, sold, served, or otherwise furnished from 10 a.m. to 1 a.m. seven days a week:
(i) at a banquet; or
(ii) in connection with room service.
(b) Notwithstanding Subsection (7)(a), a sale or service of alcoholic beverages may not
occur at a banquet or in connection with room service until after the polls are closed on the day
of:
(i) a regular general election;
(ii) a regular primary election; or
(iii) a statewide special election.
(8) Alcoholic beverages 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.
(9) (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) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage to
the licensee.
(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 on-premise banquet licensee'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) An on-premise banquet licensee may not engage in a public promotion involving or
offering free alcoholic beverages to the general public.
(10) Alcoholic beverages may not be purchased by the on-premise banquet licensee, or
any employee or agent of the licensee, for an attendee.
(11) An attendee of a banquet may not bring any alcoholic beverage into or onto, or
remove any alcoholic beverage from the premises of a banquet.
(12) (a) Except as otherwise provided in this title, the sale and service of alcoholic
beverages by an on-premise banquet licensee at a banquet shall be made only for consumption at
the location of the banquet.
(b) The host of a banquet, an attendee, or any other person other than the on-premise
banquet licensee or its employees, may not remove any alcoholic beverage from the premises of
the banquet.
(13) An on-premise banquet licensee employee shall remain at the banquet at all times
when alcoholic beverages are being sold, served, or consumed at the banquet.
(14) (a) An on-premise banquet licensee may not leave any unsold alcoholic beverages at
the banquet following the conclusion of the banquet.
(b) At the conclusion of a banquet, the on-premise banquet licensee or its employees,
shall:
(i) destroy any opened and unused alcoholic beverages that are not saleable, under
conditions established by the department; and
(ii) return to the on-premise banquet licensee's approved locked storage area any:
(A) opened and unused alcoholic beverage that is saleable; and
(B) unopened containers of alcoholic beverages.
(15) Except as provided in Subsection (14), any open or sealed container of alcoholic
beverages not sold or consumed at a banquet:
(a) shall be stored by the on-premise banquet licensee in the licensee's approved locked
storage area; and
(b) may be used at more than one banquet.
(16) An on-premise banquet licensee may not employ a minor to sell, serve, dispense, or
otherwise furnish alcoholic beverages in connection with the licensee's banquet and room service
activities.
(17) An employee of an on-premise banquet licensee, while on duty, may not:
(a) consume an alcoholic beverage; or
(b) be intoxicated.
(18) An on-premise banquet licensee shall prominently display at each banquet at which
alcoholic beverages are sold or served:
(a) a copy of the licensee's on-premise banquet license; 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."
(19) The following acts or conduct are considered contrary to the public welfare and
morals, and are prohibited at and during the hours of a banquet:
(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 (19)(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 (19);
(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 (19); or
(iv) scenes wherein a person displays the vulva, anus, or the genitals.
(20) Nothing in Subsection (19) precludes a local authority from being more restrictive
of acts or conduct of the type prohibited in Subsection (19).
(21) (a) Although live entertainment is permitted at a banquet, an on-premise banquet
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.
(b) Nothing in Subsection (21)(a) precludes a local authority from being more restrictive
of acts or conduct of the type prohibited in Subsection (21)(a).
(22) An on-premise banquet 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:
(a) hotel;
(b) resort facility;
(c) sports center; or
(d) convention center.
(23) (a) An on-premise banquet licensee shall maintain accounting and such other
records and documents as the commission or department may require.
(b) An on-premise banquet licensee or person acting for the on-premise banquet licensee,
who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the entries in any
of the books of account or other documents of the on-premise banquet licensee 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 on-premise banquet license and possible criminal prosecution
under Chapter 12, Criminal Offenses.
(24) An on-premise banquet licensee shall maintain at least 50% of its total annual
banquet gross receipts from the sale of food, not including:
(a) mix for alcoholic beverages; and
(b) charges in connection with the service of alcoholic beverages.
(25) A person may not transfer an on-premise banquet license from one business location
to another without prior written approval of the commission.
(26) (a) An on-premise banquet 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 on-premise banquet license has no monetary value for the purpose of any type of
disposition.
(27) (a) Room service of alcoholic beverages to a guest room of a hotel or resort facility
shall be provided in person by an on-premise banquet licensee employee only to an adult guest in
the guest room.
(b) Alcoholic beverages may not be left outside a guest room for retrieval by a guest.
(c) An on-premise banquet licensee may only provide alcoholic beverages for room
service in sealed containers.
Section 42. Section 32A-4-407 is enacted to read:
32A-4-407. Report on pilot program.
On or before the November 2004 interim committee meeting of the designated interim
committee, the commission shall prepare and present a report and recommendation concerning
the on-premise banquet license pilot program to the legislative interim committee designated by
the Legislative Management Committee.
Section 43. Section 32A-5-101 is amended to read:
32A-5-101. Commission's power to license private clubs -- Limitations.
(1) Before [
beverages on its premises, [
provided in this chapter.
(2) The commission may [
recreational, athletic, or kindred associations [
beverages may be stored, sold, served, and consumed. [
(3) At the time the commission grants a private club license the commission shall
designate whether the private club license qualifies as a class A, B, C, or D license as defined in
Subsections (3)(a) through (d).
(a) A "class A licensee" is a private club licensee that:
(i) meets the requirements of this chapter;
(ii) owns, maintains, or operates a substantial recreational facility in conjunction with a
club house such as:
(A) a golf course; or
(B) a tennis facility;
(iii) has at least 50% of the total membership having:
(A) full voting rights; and
(B) an equal share of the equity of the club; and
(iv) if there is more than one class of membership, has at least one class of membership
that entitles each member in that class to:
(A) full voting rights; and
(B) an equal share of the equity of the club.
(b) A "class B licensee" is a private club licensee that:
(i) meets the requirements of this chapter;
(ii) has no capital stock;
(iii) exists solely for:
(A) the benefit of its members and their beneficiaries; and
(B) any lawful social, intellectual, educational, charitable, benevolent, moral, fraternal,
patriotic, or religious purpose for the benefit of its members or the public, carried on through
voluntary activity of its members in their local lodges;
(iv) has a representative form of government; and
(v) has a lodge system in which:
(A) there is a supreme governing body;
(B) subordinate to the supreme governing body are local lodges, however designated,
into which individuals are admitted as members in accordance with the laws of the fraternal;
(C) the local lodges are required by the laws of the fraternal to hold regular meetings at
least monthly; and
(D) the local lodges regularly engage in programs involving member participation to
implement the purposes of Subsection (3)(b)(iii).
(c) A "class C licensee" is a private club licensee that:
(i) meets the requirements of this chapter;
(ii) is a dining club, as determined by the commission in accordance with Subsection
(4)(b); and
(iii) maintains at least 50% of its total private club business from the sale of food, not
including:
(A) mix for alcoholic beverages; or
(B) service charges.
(d) A "class D licensee" is a private club licensee that:
(i) meets the requirements of this chapter; and
(ii) (A) does not meet the requirements of a class A, B, or C license; or
(B) seeks to qualify as a class D licensee.
(4) (a) (i) Notwithstanding Subsection (3), for a private club license in effect on May 5,
2003, the commission shall designate whether that license qualifies as a class A, B, C, or D
license as defined in Subsection (3) at the time the license is renewed.
(ii) Until the class of license is designated under Subsection (4)(a)(i), the private club
licensee holding a license described in Subsection (4)(a)(i) shall operate under the restrictions of
the part applicable to the class of license for which the private club licensee qualifies.
(b) In determining whether an applicant is a dining club under Subsection (3)(c), the
commission:
(i) shall determine whether the applicant maintains at least 50% of its total private club
business from the sale of food, not including:
(A) mix for alcoholic beverages;
(B) service charges; or
(C) membership and visitor card fees; and
(ii) may consider:
(A) the square footage and seating capacity of the applicant;
(B) what portion of the square footage and seating capacity will be used for a dining area
in comparison to the portion that will be used as a bar area;
(C) whether full meals including appetizers, main courses, and desserts are served;
(D) whether the applicant will maintain adequate on-premise culinary facilities to prepare
full meals, except an applicant that is located on the premise of a hotel or resort facility may use
the culinary facilities of the hotel or resort facility;
(E) whether the entertainment provided at the club is suitable for minors; and
(F) the club management's ability to manage and operate a dining club including:
(I) management experience;
(II) past dining club or restaurant management experience; and
(III) the type of management scheme employed by the private club.
[
director, managing agent, or employee of a [
may not store, sell, serve, or permit consumption of [
premises of the club, under a permit issued by local authority or otherwise, unless a private club
[
(b) Violation of this Subsection (5) is a class [
[
[
(b) The total number of private club [
than that number determined by dividing the population of the state by 7,000.
(c) [
(i) the most recent United States decennial or special census; or [
(ii) any other population determination made by the United States or state governments.
[
established in areas [
(ii) A seasonal private club [
[
[
[
operation for a "Seasonal A" club license [
(A) begin on May 1; and
(B) end on October 31.
[
[
operation for a "Seasonal B" club license [
(A) begin on November 1; and
(B) end on April 30.
[
may issue under this section[
(A) a seasonal [
private club [
(B) each "Seasonal A" license shall be paired with a "Seasonal B" license [
[
private club location within the hotel to serve the public convenience, the commission may
authorize as many as three private club 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 which are managed or operated and owned or leased by the
licensee. Facilities other than hotels may not have more than one private club location under a
single private club [
[
established within 600 feet of any public or private school, church, public library, public
playground, or park, as measured by the method in Subsection [
(b) [
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 (7)(a) and (b) govern unless one of the
following exemptions applies:
[
(i) with respect to the establishment of a private club license 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 (7)(a) or (b) if:
(A) the local governing authority has granted its written consent to the variance;
(B) alternative locations for establishing a private club 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;
(ii) with respect to the establishment of a private club [
the commission may[
(7)(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 private club license issued by the commission that
undergoes a change of ownership, the commission may waive or vary the proximity requirements
of Subsection (7)(a) or (b) in considering whether to grant a private club license to the new
owner of the premises if:
(A) the premises previously received a variance reducing the proximity requirements of
Subsection (7)(a) or (b); or
(B) a variance from proximity or distance requirements was otherwise allowed under this
title.
[
playground, or park, the 600 foot limitation is measured from the nearest entrance of the outlet by
following the shortest route of [
public or private school, church, public library, public playground, or park.
[
proximity of any educational, religious, and recreational facility, or any other relevant factor in
reaching a decision on whether to issue a private club [
(b) For purposes of this Subsection (9), "educational facility" includes:
(i) a nursery [
(ii) infant day care [
(iii) a trade and technical [
(10) If requested by a private club licensee, the commission may approve a change in the
class of private club license in accordance with rules made by the commission.
Section 44. Section 32A-5-102 is amended to read:
32A-5-102. Application and renewal requirements.
(1) A [
chapter shall file a written application with the department[
accompanied by:
(a) a nonrefundable [
(b) an initial license fee of [
(c) written consent of the local authority;
(d) a copy of the applicant's current business license;
[
[
public playground, or park, and if the proximity is within the 600 foot or 200 foot limitations of
Subsections 32A-5-101 [
accordance with those subsections;
[
and served in connection with dining accommodations;
[
[
where the applicant proposes to keep and store liquor;
[
satisfactory to the department;
[
$500,000 per occurrence and $1,000,000 in the aggregate;
[
those documents, which shall be kept on file with the department at all times;
[
authorized representative of the commission, department, or any law enforcement officer
unrestricted right to enter the club premises;
[
[
[
(m) (i) a statement as to whether the private club is seeking to qualify as a class A, B, C,
or D private club licensee; and
(ii) evidence that the private club meets the requirements for the classification for which
it is applying;
(n) in the case of a partnership, corporation, or limited liability company applicant,
proper verification evidencing that the person or persons signing the private club application are
authorized to so act on behalf of the partnership, corporation, or limited liability company; and
[
department may require [
[
[
[
determines that any provisions of the club's [
[
of the applicant and the purposes of this chapter.
(b) Club bylaws or house rules shall include provisions respecting the following:
(i) standards of eligibility for members;
(ii) limitation of members, consistent with the nature and purpose of the [
(iii) the period for which dues are paid, and the date upon which the period expires;
(iv) provisions for dropping members for the nonpayment of dues or other cause; and
(v) provisions for guests or visitors, if any, and for the issuance and use of visitor cards.
[
(b) Persons desiring to renew their private club [
(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 $10,000 $1,000
equals or exceeds $10,000 but less than $25,000 $1,250
equals or exceeds $25,000 but less than $75,000 $1,750
equals or exceeds $75,000 $2,250.
(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.
Section 45. Section 32A-5-103 is amended to read:
32A-5-103. Qualifications.
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
concerning the sale, manufacture, distribution, warehousing, adulteration, or transportation of
alcoholic beverages; [
[
[
[
[
[
[
(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 a private club has been convicted of any offense described
in Subsection (1)(a).
(2) The commission may immediately suspend or revoke a private club license if after
the day on which the private club 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) The director may take emergency action by immediately suspending the operation of
a private club 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 any 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 private club 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 private club license to any 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;
(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 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 private club 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;
(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 owned at least 20% of the applicant limited liability
company.
(c) A person acting in an individual capacity may not be granted a private club 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 private club license.
(b) The commission may not grant a private club 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.
[
longer possesses the qualifications required by this title for obtaining that license, the
commission may suspend or revoke that license.
Section 46. Section 32A-5-104 is amended to read:
32A-5-104. Commission and department duties before granting licenses.
(1) (a) Before a private club [
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 [
recommendations described in Subsection (1)(a) to the commission to aid in [
commission's determination.
(2) Before issuing any private club [
(a) determine that the applicant has complied with all basic qualifications and
requirements for making application for a license as provided by Sections 32A-5-102 and
32A-5-103 , and that the application is complete;
(b) determine whether the applicant qualifies as a class A, B, C, or D private club
licensee;
[
located including[
(i) physical characteristics such as:
(A) condition of the premises[
(B) square footage[
(C) parking availability; and
(ii) operational factors such as:
(A) tourist traffic[
(B) proximity to and density of other state stores, package agencies, and licensed
outlets[
(C) demographics[
(D) population to be served[
(E) the extent of and proximity to any school, church, public library, public playground,
or park;
[
private club [
liquor experience, and the type of management scheme employed by the private club;
[
licensee, including [
of operation, the seating capacity of the facility, and the gross sales of food items; and
[
necessary.
Section 47. Section 32A-5-107 is amended to read:
32A-5-107. Operational restrictions.
Each [
employees, [
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) Each private club shall [
(a) consists of three or more members of the club; and
(b) holds regular meetings to:
(i) review membership applications; and
(ii) conduct any other business as required by [
(2) (a) Each private club may admit [
written application signed by the applicant, following investigation and approval of the
governing body.
(b) Admissions shall be recorded in the official minutes of a regular meeting of the
governing body and the application, whether approved or disapproved, shall be filed as a part of
the official records of the licensee.
(c) An applicant may not be accorded the privileges of a member until a quorum of the
governing body has formally voted upon and approved the applicant as a member.
(d) An applicant may not be admitted to membership [
the application is submitted.
(e) The spouse of a member of any class of private club is entitled to all the rights and
privileges of the member:
(i) to the extent permitted by the bylaws or house rules of the private club; and
(ii) except to the extent restricted by this title.
(f) The minor child of a member of a class A private club is entitled to all the rights and
privileges of the member:
(i) to the extent permitted by the bylaws or house rules of the private club; and
(ii) except to the extent restricted by this title.
(3) (a) Each private club shall maintain a current and complete membership record
showing:
(i) the date of application of each proposed member[
(ii) each member's address[
(iii) the date [
member's admission;
(iv) the date initiation fees and dues were assessed and paid[
(v) the serial number of the membership card issued to each member.
(b) A current record shall also be kept indicating when members [
resigned.
(4) Each private club shall establish in the club bylaws or house rules initial fees and
monthly dues, as established by commission rules, which are collected from all members.
[
(5) (a) Each private club may, in its discretion, allow an individual to be admitted to or
use the club premises as a guest only under the following conditions:
(i) each guest must be previously authorized by one of the following who agrees to host
the guest into the club:
(A) an active member of the club; or
(B) a holder of a current visitor card;
(ii) each guest must be known by the guest's host based on a preexisting bonafide
business or personal relationship with the host prior to the guest's admittance to the club;
(iii) each guest must be accompanied by the guest's host for the duration of the guest's
visit to the club;
(iv) each guest's host must remain on the club premises for the duration of the guest's
visit to the club;
(v) each guest's host is responsible for the cost of all services extended to the guest;
(vi) each guest enjoys only those privileges derived from the guest's host for the duration
of the guest's visit to the club;
(vii) an employee of the club, while on duty, may not act as a host for a guest;
(viii) an employee of the club, while on duty, may not attempt to locate a member or
current visitor card holder to serve as a host for a guest with whom the member or visitor card
holder has no acquaintance based on a preexisting bonafide business or personal relationship
prior to the guest's arrival at the club; and
(ix) a club and its employees may not enter into an agreement or arrangement with a club
member or holder of a current visitor card to indiscriminately host members of the general public
into the club as guests.
(b) Notwithstanding Subsection (5)(a), previous authorization is not required if:
(i) the licensee is a class B private club; and
(ii) the guest [
club [
(6) Each private club [
discretion, issue visitor cards to allow individuals to enter and use the club premises on a
temporary basis under the following conditions:
(a) each visitor card shall be issued for a period not to exceed three weeks;
(b) a fee of not less than $4 shall be assessed for each visitor card issued;
(c) a visitor card shall not be issued to a minor;
(d) a holder of a visitor card may not host more than seven guests at one time;
(e) each visitor card issued shall include:
(i) the visitor's full name and signature;
(ii) the date the card was issued;
(iii) the date the card expires;
(iv) the club's name; and
(v) the serial number of the card; and
(f) (i) the club shall maintain a current record of the issuance of each visitor card on the
club premises; and
(ii) the record described in Subsection (6)(f)(i) shall:
(A) be available for inspection by the department; and
(B) include:
(I) the name of the person to whom the card was issued;
(II) the date the card was issued;
(III) the date the card expires; and
(IV) the serial number of the card.
(7) A private club may not sell alcoholic beverages to or allow any person to be admitted
to or use the club premises other than:
(a) a member[
(b) a visitor who holds a valid visitor card issued under Subsection (6)[
(c) a guest of:
(i) a member; or
(ii) a holder of a current visitor card.
(8) (a) A [
(i) a member, officer, director, or trustee of a private club[
(ii) issued a visitor card;
(iii) admitted into, use, or be on the premises of a class D private club except to the
extent authorized under Subsections (8)(b) through (g);
(iv) admitted into, use, or be on the premises of any lounge or bar area of any private
club except to the extent authorized under Subsection (8)(c)(ii); or
(v) admitted into, use, or be on the premises of any private club that:
(A) provides sexually oriented adult entertainment as defined by commission rule or by
local ordinance; or
(B) operates as a sexually oriented business as defined by commission rule or by local
ordinance.
(b) At the discretion of a class D private club, a minor may be admitted into, use, or be
on the premises of a class D private club under the following circumstances:
(i) during periods when no alcoholic beverages are sold, served, otherwise furnished, or
consumed on the premises, but in no event later than 1 p.m.;
(ii) when accompanied at all times by a member or holder of a current visitor card who is
the minor's parent, legal guardian, or spouse; and
(iii) the private club has a full kitchen and is licensed by the local jurisdiction as a food
service provider.
(c) A minor may be employed by a class D private club on the premises of the club if:
(i) the parent or legal guardian of the minor owns or operates the class D private club; or
(ii) the minor performs maintenance and cleaning services during the hours when the
club is not open for business.
(d) (i) A minor who is at least 18 years of age may be admitted into, use, or be on the
premises of a dance or concert hall if:
(A) the dance or concert hall is located:
(I) on the premises of a class D private club; or
(II) on the property that immediately adjoins the premises of and is operated by a class D
private club; and
(B) the commission has issued the class D private club a permit to operate a minor dance
or concert hall based on the criteria described in Subsection (8)(d)(ii).
(ii) The commission may issue a minor dance or concert hall permit if:
(A) the club's lounge, bar, and alcoholic beverage consumption area is:
(I) not accessible to minors;
(II) clearly defined;
(III) separated from the dance or concert hall area by walls, multiple floor levels, or other
substantial physical barriers;
(B) any bar or dispensing area is not visible to minors;
(C) no consumption of alcoholic beverages may occur in:
(I) the dance or concert hall area; or
(II) any area of the club accessible to a minor;
(D) the club maintains sufficient security personnel to prevent the passing of beverages
from the club's lounge, bar, or alcoholic beverage consumption areas to:
(I) the dance or concert hall area; or
(II) any area of the club accessible to a minor;
(E) there are separate entrances, exits, and restroom facilities from the club's lounge, bar,
and alcoholic beverage consumption areas than for:
(I) the dance or concert hall area; or
(II) any area accessible to a minor; and
(F) the club complies with any other restrictions imposed by the commission by rule.
(e) A minor under 18 years of age who is accompanied at all times by a parent or legal
guardian who is a member or holder of a current visitor card may be admitted into, use, or be on
the premises of a concert hall described in Subsection (8)(d)(i) if:
(i) all requirements of Subsection (8)(d) are met; and
(ii) all signage, product, and dispensing equipment containing recognition of alcoholic
beverages is not visible to the minor.
(f) A minor under 18 years of age but who is 14 years of age or older who is not
accompanied by a parent or legal guardian may be admitted into, use, or be on the premises of a
concert hall described in Subsection (8)(d)(i) if:
(i) all requirements of Subsections (8)(d) and (e)(ii) are met; and
(ii) there is no alcoholic beverage, sales, service, or consumption on the premises of the
class D private club.
(g) The commission may suspend or revoke a minor dance or concert permit issued to a
class D private club and suspend or revoke the license of the class D private club if:
(i) the club fails to comply with the restrictions in Subsection (8)(d), (e), or (f);
(ii) the club sells, serves, or otherwise furnishes alcoholic beverages to a minor;
(iii) the licensee or a supervisory or managerial level employee of the private club is
convicted under Title 58, Chapter 37, Utah Controlled Substances Act, on the basis of activities
that occurred on:
(A) the licensed premises; or
(B) the dance or concert hall that is located on property that immediately adjoins the
premises of and is operated by the class D private club;
(iv) there are three or more convictions of patrons of the private club under Title 58,
Chapter 37, Utah Controlled Substances Act, based on activities that occurred on:
(A) the licensed premises; or
(B) the dance or concert hall that is located on property that immediately adjoins the
premises of and is operated by the class D private club;
(v) there is more than one conviction made on the basis of lewd acts or lewd
entertainment prohibited by this title that occurred on:
(A) the licensed premises; or
(B) the dance or concert hall that is located on property that immediately adjoins the
premises of and is operated by the class D private club; or
(vi) the commission finds acts or conduct contrary to the public welfare and morals
involving lewd acts or lewd entertainment prohibited by this title that occurred on:
(A) the licensed premises; or
(B) the dance or concert hall that is located on property that immediately adjoins the
premises of and is operated by the class D private club.
(h) Nothing in this Subsection (8) shall prohibit a class D private club from selling,
serving, or otherwise furnishing alcoholic beverages in a dance or concert area located on the
club premises on days and times when the club does not allow minors into those areas.
(i) Nothing in Subsections (8)(a) through (g) precludes a local authority from being more
restrictive of a minor's admittance to, use of, or presence on the premises of any private club.
(9) An employee of a club, while on duty, may not:
(a) consume an alcoholic beverage[
(b) be intoxicated; or
(c) act as a host for a guest.
[
[
detail all expenditures separated by payments for malt or brewed beverages, liquor, food, detailed
payroll, entertainment, rent, utilities, supplies, and all other expenditures. [
(b) The record required by this Subsection (10) shall be kept in a form approved by the
department and balanced each month.
(c) Each expenditure shall be supported by delivery tickets, invoices, receipted bills,
canceled checks, petty cash vouchers, or other sustaining data or memoranda.
(d) All invoices and receipted bills for the current calendar or fiscal year documenting
purchases made by [
[
[
[
governing body [
shall also be maintained.
[
(b) Changes in the bylaws or house rules are not effective unless submitted to the
department within ten days after adoption, and become effective 15 days after received by the
department unless rejected by the department before the expiration of the 15-day period.
[
as the department may require.
[
cancels, destroys, conceals, or removes the entries in any of the books of account or other
documents of the club 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 [
license and possible criminal prosecution under Chapter 12, Criminal Offenses.
[
section and all other books, records, receipts, and disbursements maintained or utilized by the
licensee, as the department requires, for a minimum period of three years. All records, books,
receipts, and disbursements are subject to inspection by authorized representatives of the
commission and the department. The club shall allow the department, through its auditors or
examiners, to audit all records of the club at times the department considers advisable. The
department shall audit the records of the licensee at least once annually.
[
[
activities [
[
[
conceals the club operation.
(b) Any member of the commission, authorized department personnel, or any peace
officer shall, upon presentation of credentials, be admitted immediately to the club and permitted
without hindrance or delay to inspect completely the entire club premises and all books and
records of the licensee, at any time during which the same are open for the transaction of
business to its members.
[
[
[
[
(18) Any public advertising related to a private club by the following shall clearly
identify a club as being "a private club for members":
(a) the private club;
(b) the employees or agents of the private club; or
(c) any person under a contract or agreement with the club.
(19) A private club must have food available at all times when alcoholic beverages are
sold, served, or consumed on the premises.
[
state stores or package agencies.
(b) Liquor so 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 rules established by the
commission.
[
provide any primary spirituous liquor [
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:
[
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;
[
[
on the floor plan provided to the department; and
[
[
system if used:
(i) as a flavoring on desserts; and
(ii) in the preparation of flaming food dishes, drinks, and desserts; and
(c) each club patron may have no more than 2.75 ounces of spirituous liquor at a time
before the patron.
[
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 (26)(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 private club as
authorized by commission rule for wine purchased at the private club.
[
exceeding one liter at prices fixed by the commission.
(b) A service charge may be assessed by the private club for heavy beer purchased at the
private club.
[
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.
[
pursuant to Subsection [
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.
[
Retailer Licenses, [
result in a suspension or revocation of the private club's:
(A) state liquor license; and [
(B) alcoholic beverage license issued by the local authority.
[
[
[
[
(25) 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 private club.
(26) (a) A patron may only make alcoholic beverage purchases in the private club from
and be served by a person employed, designated, and trained by the licensee to sell, dispense, and
serve alcoholic beverages.
(b) Notwithstanding Subsection (26)(a), a patron who has purchased bottled wine from
an employee of the private club or has carried bottled wine onto the premises of the private club
pursuant to Subsection (32) may thereafter serve wine from the bottle to themselves or others at
the patron's table.
(c) Each club patron may have no more than two alcoholic beverages of any kind at a
time before the patron.
(27) 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.
(28) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
private club 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 if closure is
required by local ordinance; and
(iii) on any other day after 1 a.m. and before 10 a.m.
(b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
Licenses, for on-premise beer licenses.
(c) (i) Notwithstanding Subsections (28)(a) and (b), a private club shall remain open for
one hour after the private club ceases the sale and service of alcoholic beverages during which
time a patron of the club may finish consuming:
(A) any single drink containing spirituous liquor;
(B) a single serving of wine not exceeding five ounces;
(C) a single serving of heavy beer; or
(D) a single serving of beer not exceeding 25 ounces.
(ii) A club is not required to remain open:
(A) after all patrons have vacated the premises; or
(B) during an emergency.
(29) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
(30) (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) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage to
the licensee.
(c) An alcoholic beverage may not be sold at a special or reduced price that encourages
over consumption or intoxication.
(d) The price of a single serving of a primary spirituous liquor shall be the same whether
served as a single drink or in conjunction with another alcoholic beverage.
(e) An alcoholic beverage may not be sold at a special or reduced price for only certain
hours of the private club's business day such as a "happy hour."
(f) The sale or service of more than one alcoholic beverage for the price of a single
alcoholic beverage is prohibited.
(g) The sale or service of an indefinite or unlimited number of alcoholic beverages
during any set period for a fixed price is prohibited.
(h) A private club licensee may not engage in a promotion involving or offering free
alcoholic beverages to patrons of the club.
(31) Alcoholic beverages may not be purchased by the licensee, or any employee or agent
of the licensee, for a patron of the private club.
(32) (a) A person may not bring onto the premises of a private club [
alcoholic beverage for on-premise consumption, except a person may bring, subject to the
discretion of the licensee, [
[
consumption.
[
(b) Except bottled wine under Subsection (32)(a), a private club or its officers, managers,
employees, or agents may not allow:
(i) a person to bring onto the private club premises any alcoholic beverage for
[
private club premises; or
(ii) consumption of alcoholic beverages described in Subsection (32)(b)(i) on the
premises of the private club.
[
[
[
(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 private club.
[
club as authorized by commission rule for wine [
[
[
(33) (a) Except as provided in Subsection (33)(b), a private club and its employees may
not permit a patron of the club to carry from [
(i) is used primarily for drinking purposes [
(ii) contains any alcoholic beverage.
(b) A patron may remove the unconsumed contents of a bottle of wine if before removal
the bottle has been recorked or recapped.
(34) (a) Except as provided in Subsection (34)(b), a minor may not be employed by any
class A, B, or C private club to sell, dispense, or handle any alcoholic beverage.
(b) Notwithstanding Subsection (34)(a), a minor may be employed by a class A or C
private club to enter the sale at a cash register or other sales recording device.
(c) Except to the extent authorized in Subsection 32A-5-107 (8)(c), a minor may not be
employed by or be on the premises of any class D private club.
(d) A minor may not be employed to work in any lounge or bar area of any class A, B, or
C private club.
(35) An employee of a private club, while on duty, may not:
(a) consume an alcoholic beverage; or
(b) be intoxicated.
(36) (a) A private club may not charge for the service or supply of glasses, ice, or mixers
unless:
(i) the charges are fixed in the house rules of the club; and
(ii) a copy of the house rules is kept on the club premises and available at all times for
examination by patrons of the club.
(b) A charge or fee made in connection with the sale, service, or consumption of liquor
may be stated in food or alcoholic beverage menus including:
(i) a set-up charge;
(ii) service charge; or
(iii) chilling fee.
[
private club:
[
[
metered dispensing system; and
[
or drugs is a serious crime that is prosecuted aggressively in Utah."
[
considered contrary to the public welfare and morals, and are prohibited upon the premises:
[
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;
[
the person is unclothed or in attire, costume, or clothing described in Subsection [
(38)(a);
[
buttocks, anus, or genitals of any other person;
[
exposed to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
[
of the prohibited activities described in this Subsection [
[
view any portion of his or her genitals or anus; or
[
reproductions depicting:
[
oral copulation, flagellation, or any sexual acts prohibited by Utah law;
[
genitals;
[
drawings are used to portray, any of the prohibited activities described in this Subsection [
(38); or
[
[
more restrictive of acts or conduct of the type prohibited in Subsection [
[
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, or 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.
[
more restrictive of acts or conduct of the type prohibited in Subsection [
[
any video gaming device, as defined and proscribed in Title 76, Chapter 10, Part 11, Gambling,
on the premises of the private club.
[
240 hours, unless [
(i) the private club licensee notifies the department in writing at least seven days before
the closing[
(ii) the closure or cessation of operation is first approved by the department.
(b) [
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
request of the private club 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) [
(i) the dates of closure or cessation of operation[
(ii) the reason for the closure or cessation of operation[
(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 club's license fee for the remainder of the license year.
[
[
transferred from one location to another, without prior written approval of the commission.
[
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 private club [
disposition.
Section 48. Section 32A-6-102 is amended to read:
32A-6-102. Application and renewal requirements.
(1) A person seeking a special use permit of any kind under this chapter shall file a
written application with the department in a form prescribed by the department. [
application shall be accompanied by:
(a) a nonrefundable application fee [
(b) an initial permit fee if required by any section of this chapter, which is refundable if a
permit is not granted;
[
[
permit;
[
[
[
within the premises in which the applicant proposes that alcoholic products are stored, used,
mixed, sold, or consumed;
[
representative of the commission, department, or any other law enforcement officer unrestricted
right to enter the permittee's premises;
[
limited liability company, proper verification evidencing that the person or persons signing the
special use permit application are authorized to so act on the [
partnership, corporation, or limited liability company;
[
authority of the special use permit; and
[
policy to allow complete evaluation of the application.
(2) (a) All special use permits expire on December 31 of each year unless otherwise
provided on the permit.
(b) Persons desiring to renew a renewable special use permit shall submit a completed
renewal application to the department no later than November 30.
(c) Failure to meet the renewal requirements shall result in an automatic forfeiture of the
license, effective on the date the existing permit expires.
(d) Renewal applications shall be in a form prescribed by the department.
(3) To ensure compliance with Subsection 32A-6-105 (8), the commission may suspend
or revoke a special use permit if any special use permittee does not immediately notify the
department of any change in:
(a) ownership of the permittee's business;
(b) for a corporate owner, the:
(i) corporate officers 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 49. Section 32A-6-103 is amended to read:
32A-6-103. Qualifications.
(1) Special use permits may be granted only to the following persons or organizations:
(a) [
organization;
(b) an industrial or manufacturing use permit may be granted to a person or organization
engaged in an industrial or manufacturing pursuit;
(c) a scientific or educational use permit may be granted to a person or organization
engaged in a scientific or educational pursuit;
(d) a health care facility use permit may be granted to a hospital or health care facility;
and
(e) a public service permit may be granted to an operator of an airline, railroad, or other
public conveyance.
(2) (a) The commission may not issue a special use permit to any person who has been
convicted of:
(i) [
(ii) [
the sale, manufacture, distribution, warehousing, adulteration, or transportation of alcoholic
products; [
(iii) [
(iv) on two or more occasions within the five years before the day on which the special
use permit 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 [
proscription under Subsection (2)(a) applies if any of the following has been convicted of any
offense described in Subsection (2)(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 an
applicant corporation [
(vii) a member who owns at least 20% of an applicant limited liability company.
(c) The proscription under Subsection (2)(a) applies if any person employed to act in a
supervisory or managerial capacity for a special use permittee has been convicted of any offense
described in Subsection (2)(a).
(3) [
[
granted, a person described in Subsection (2)(a), (b), or (c):
[
[
(a) is found to have been convicted of any offense described in Subsection (2)(a) prior to
the permit being granted; or
(b) on or after the day on which the permit is granted:
(i) is convicted of an offense described in Subsection (2)(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 (3)(b)(ii)(A).
(4) The director may take emergency action by immediately suspending the operation of
[
Chapter 46b, Administrative Procedures Act, for the period during which the criminal matter is
being adjudicated[
(a) is arrested on a charge described in Subsection (2)(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 (4)(b)(i).
(5) (a) (i) The commission may not grant a special use permit 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 special use permit to any 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
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 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 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 special use permit 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;
(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 special use permit 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 who owned at least 20% of a limited liability company that
had any type of license, agency, or permit revoked within the last three years.
[
(i) granted a special use permit; or [
(ii) employed by a permittee to handle alcoholic beverages.
(b) The commission may not grant a special use permit 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.
[
possesses the qualifications required by this title for obtaining that permit, the commission may
suspend or revoke that permit.
Section 50. Section 32A-6-105 is amended to read:
32A-6-105. Operational restrictions.
Each person granted a special use permit and the employees and management personnel
of the permittee shall abide by the following conditions and requirements. Failure to comply
may result in a revocation of the permit, or other disciplinary action taken against individual
employees or management personnel. Suspension or revocation of a permit may be done by the
commission with or without cause.
(1) Where authorized by the permit, a permittee may purchase and receive
non-consumable alcoholic products directly from a manufacturer for industrial, educational,
scientific, manufacturing, or health care facility use purposes.
(2) Except as otherwise provided, liquor may not be purchased by any permittee except
from state stores or package agencies. Liquor so purchased may be transported by the permittee
from the place of purchase to the permittee's premises. All liquor shall be purchased at prices set
by the commission.
(3) Alcoholic products may not be stored, used, manufactured, blended, sold, or
consumed in any place other than as designated in the permittee's application.
(4) A permittee may not purchase, store, sell, use, consume, or manufacture any alcoholic
products for any purpose other than that authorized by the special use permit.
(5) [
[
(a) minor;
(b) person actually, apparently, or obviously [
(c) known habitual drunkard; or
(d) known interdicted person.
(6) Each permittee shall keep records and accounts, as required by commission rule, of
all alcoholic products purchased, manufactured, used, and sold.
[
[
from one location to another, without prior written approval of the commission.
[
sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the permit to any
other person whether for monetary gain or not.
Section 51. Section 32A-6-201 is amended to read:
32A-6-201. Application and renewal requirements.
(1) Each application for a public service permit shall, in addition to the requirements of
Section 32A-6-102 , include:
(a) a nonrefundable [
(b) a $200 initial permit fee;
[
conveyance for which the applicant plans to use the special use permit;
[
[
department, which the permittee has procured and must maintain for so long as the permittee
continues to operate as a special use permittee;
[
hospitality room where the sale or service of alcoholic beverages is made to persons then in
transit, using the host company's airline, railroad, or other public conveyance; and
[
area used by persons traveling on the host company's airline, railroad, bus, or other public
conveyance.
(2) Each public service permittee shall remit to the department an annual public service
permit fee of [
any other regularly scheduled public conveyance upon which alcoholic beverages are sold or
served.
(3) (a) The bond required under Subsection (1) shall be in a form approved by the
attorney general, conditioned upon the permittee's faithful compliance with this title and the rules
of the commission.
(b) If the surety bond is canceled due to the permittee's negligence a $300 reinstatement
fee may be assessed.
(c) No part of any cash bond so posted may be withdrawn during the period the permit is
in effect.
(d) A bond filed by a permittee may be forfeited if the permit is finally revoked.
Section 52. Section 32A-6-202 is amended to read:
32A-6-202. Operational restrictions.
In addition to the restrictions, conditions, and requirements of Section 32A-6-105 , each
public service permit is subject to the following operating restrictions:
(1) (a) A public service permittee whose public conveyances operate on an interstate
basis may purchase alcoholic beverages outside of the state and bring it into the state and sell and
serve it to passengers traveling on the permittee's public conveyance for consumption while en
route on the conveyance.
(b) A public service permittee whose public conveyances operate solely within the state
shall purchase to sell and serve to passengers traveling on the permittee's public conveyance for
consumption while en route on the conveyance:
(i) liquor from state stores or package agencies; and
(ii) beer from a local beer wholesaler.
(2) A public service permittee may establish a hospitality room in which alcoholic
beverages may be stored, sold, served, and consumed, if:
(a) the room is located within a depot, terminal, or similar facility adjacent to and
servicing the permittee's airline, railroad, bus, boat, or other public conveyance;
(b) the room is completely enclosed and the interior is not visible to the public;
(c) the sale or service of alcoholic beverages is made only to persons then in transit using
the host company's airline, railroad, bus line, or other public conveyance, and holding a valid
boarding pass or similar travel document issued by the host company; and
(d) (i) all liquor is purchased from:
(A) a state store; or
(B) a package agency[
(ii) beer is purchased from a local licensed beer wholesaler.
(3) Each public service permittee operating a hospitality room shall display in a
prominent place in the hospitality room, 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."
(4) The operation of all hospitality rooms shall be done in accordance with this chapter
and rules adopted by the commission.
Section 53. Section 32A-6-301 is amended to read:
32A-6-301. Application requirements.
(1) Each application for an industrial or manufacturing use permit shall, in addition to the
requirements of Section 32A-6-102 , include:
(a) a nonrefundable [
(b) a $200 one-time special use permit fee;
[
department, which the permittee has procured and must maintain for so long as the permittee
continues to operate as a special use permittee;
[
[
proposes that alcoholic products be stored, used, mixed, sold, or consumed.
(2) (a) The bond required under Subsection (1) shall be:
(i) in a form approved by the attorney general[
(ii) conditioned upon the permittee's faithful compliance with this title and the rules of
the commission.
(b) If the surety bond is cancelled due to the permittee's negligence, a $300 reinstatement
fee may be assessed.
(c) No part of any cash or corporate bond so posted may be withdrawn during the period
the permit is in effect.
(d) A bond filed by a permittee may be forfeited if the permit is finally revoked.
(3) Any person desiring a special use permit to produce gasohol or any alcoholic product
shall provide evidence to the department that an approved Notice of Registration of Distilled
Spirits Plant and the appropriate permit from the Federal Bureau of Alcohol, Tobacco and
Firearms has been obtained by the person.
Section 54. Section 32A-6-401 is amended to read:
32A-6-401. Application requirements.
Each application for a scientific or educational use permit shall, in addition to the
requirements of Section 32A-6-102 , include a [
one-time special use permit fee.
Section 55. Section 32A-6-501 is amended to read:
32A-6-501. Operational restrictions.
In addition to the restrictions, conditions, and requirements of Section 32A-6-105 , each
[
(1) A [
the department may designate at the department's cost plus freight charges.
(2) A [
permit for other than religious purposes.
Section 56. Section 32A-6-502 is enacted to read:
32A-6-502. Church or religious organization exemption.
(1) A church or religious organization that provides or allows to be provided any
alcoholic product to any person as part of the church's or religious organization's religious
services:
(a) does not violate this title by providing or allowing the provision of an alcoholic
product as part of the religious service; and
(b) is not required to hold a special use permit or license to provide or allow the
provision of an alcoholic product for the religious services.
(2) This exemption does not exempt a church or religious organization from complying
with this title with respect to alcoholic beverages purchased by the church or religious
organization for purposes other than the purpose stated in Subsection (1).
Section 57. Section 32A-6-503 is enacted to read:
32A-6-503. Application requirements.
Each application for a religious wine use permit shall, in addition to the requirements of
Section 32A-6-102 , include a $100 one-time special use permit fee.
Section 58. Section 32A-6-603 is enacted to read:
32A-6-603. Application requirements.
Each application for a health care facility use permit shall, in addition to the requirements
of Section 32A-6-102 , include a $100 one-time special use permit fee.
Section 59. Section 32A-7-101 is amended to read:
32A-7-101. Commission's power to grant permits -- Limitations.
(1) The commission may issue a single event permit to a bona fide partnership,
corporation, limited liability company, church, political organization, or incorporated association,
or to a recognized subordinate lodge, chapter, or other local unit thereof that is conducting a
convention, civic, or community enterprise.
(2) [
(a) for a period not to exceed [
consumption of liquor at an event at which the storage, sale, service, or consumption of liquor is
otherwise prohibited by this title[
[
(b) the storage, sale, service, and consumption of beer at the same event for the period
that the storage, sale, service, or consumption of liquor is authorized under Subsection (2)(a) for
the permit.
(3) The commission may not issue more than [
calendar year to the same [
church, [
chapter, or other local unit thereof.
(4) (a) The 600 foot and 200 foot proximity limitations to educational, religious, and
recreational facilities that are applicable to state stores, package agencies, and licensees, do not
apply to single event permits.
(b) Nothing in this section, however, prevents the commission from considering the
proximity of any educational, religious, or recreational facility, or any other relevant factor in
deciding whether to grant a single event permit.
Section 60. Section 32A-7-102 is amended to read:
32A-7-102. Application requirements.
(1) A qualified applicant for a single event permit shall file a written application with the
department in a form as the department shall prescribe.
(2) The application shall be accompanied by:
(a) a single event permit fee of $100, which is refundable if a permit is not granted and
shall be returned to the applicant with the application;
(b) written consent of the local authority;
(c) a bond as specified by Section 32A-7-105 ;
(d) the times, dates, location, estimated attendance, nature, and purpose of the event;
(e) a description or floor plan designating:
(i) the area in which the applicant proposes that [
(ii) the site from which the applicant proposes that [
or served; and
(iii) the area in which the applicant proposes that [
to be consumed;
(f) a statement of the purpose of the [
liability company, church, [
recognized subordinate lodge, chapter, or other local unit;
(g) a signed consent form stating that authorized representatives of the commission,
department, or any law enforcement officers will have unrestricted right to enter the premises
during the event;
(h) proper verification evidencing that the person signing the application is authorized to
act on behalf of the [
political organization, or incorporated association, or recognized subordinate lodge, chapter, or
local unit thereof; and
(i) any other information as the commission or department may direct.
Section 61. Section 32A-7-103 is amended to read:
32A-7-103. Qualifications.
(1) [
for at least one year prior to the date of application.
(2) (a) The commission may not grant a single event permit to any person who has been
convicted of:
(i) [
(ii) [
the sale, manufacture, distribution, warehousing, adulteration, or transportation of alcoholic
beverages; [
(iii) [
(iv) on two or more occasions within the last five years before the day on which the
permit 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 [
proscription under Subsection (2)(a) applies if any of the following has been convicted of any
offense described in Subsection (2)(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 an
applicant corporation [
(vii) a member who owns at least 20% of an applicant limited liability company.
(c) The proscription under Subsection (2)(a) applies if any person employed to act in a
supervisory or managerial capacity for the single event permittee has been convicted of any
offense described in Subsection (2)(a).
[
(3) The commission may immediately suspend or revoke a single event permit if after the
day on which the permit is granted, a person described in Subsection (2)(a), (b), or (c):
(a) is found to have been convicted of any offense described in Subsection (2)(a) prior to
the permit being granted; or
(b) on or after the day on which the permit is granted:
(i) is convicted of an offense described in Subsection (2)(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 (3)(b)(ii)(A).
(4) The director may take emergency action by immediately revoking the permit
according to the procedures and requirements of Title 63, Chapter 46b[
Procedures Act, if a person described in Subsection (2)(a), (b), or (c):
(a) is arrested on a charge for an offense described in Subsection (2)(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 (4)(b)(i).
[
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 single event permit to any [
partner, managing agent, manager, officer, director, [
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[
license, agency, or permit issued under this title revoked within the last three years;
(B) a managing agent, officer, director, or [
of the total issued and outstanding stock of any corporation [
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 license, agency, or permit revoked within the last three years.
(b) [
limited liability company may not be granted a permit 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 [
(ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
total issued and outstanding stock of the [
or
(iii) any manager or member who owns at least 20% of the applicant limited liability
company.
[
(i) granted a single event permit; or [
(ii) employed by a single event permittee to handle alcoholic beverages.
(b) The commission may not grant a single event permit 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.
[
possesses the qualifications required by this title for obtaining that permit, the commission may
suspend or revoke that permit.
Section 62. Section 32A-7-104 is amended to read:
32A-7-104. Commission and department duties before granting permits.
(1) Before any single event permit may be granted by the commission, the department
shall conduct an investigation, gather information, and make recommendations to the
commission as to whether or not a permit should be granted. The information shall be forwarded
to the commission to aid in its determination.
(2) Before issuing any single event permit, the commission shall:
(a) determine that the applicant has complied with all basic qualifications and
requirements as provided by Sections 32A-7-102 and 32A-7-103 [
(b) determine that the application is complete;
[
unit;
[
(e) to minimize the risk of minors being sold or furnished alcohol or adults being
overserved alcohol at the event, assess the adequacy of control measures for:
(i) a large-scale public event where the estimated attendance is in excess of 1,000 people;
or
(ii) for an outdoor public event; and
[
necessary.
(3) (a) The commission shall determine the maximum amount that may be charged by a
permittee for an alcoholic beverage, including any set-up fee or other charge.
(b) The maximum amount that may be charged shall be set forth in the permit.
(4) Upon commission approval of any application and upon issuance of a single event
permit, the department shall send copies of the approved application and the permit to state and
local law enforcement authorities before the scheduled event.
Section 63. Section 32A-7-106 is amended to read:
32A-7-106. Operational restrictions.
(1) (a) Any organization granted a single event permit and any person involved in the
storage, sale, or service of [
issued, shall abide by:
(i) this title[
(ii) the rules of the commission[
(iii) the special conditions and requirements provided in this section.
(b) Failure to [
(i) may result in:
(A) an immediate revocation of the permit[
(B) forfeiture of the surety bond[
(C) immediate seizure of all [
(ii) disqualifies the organization from applying for a single event permit under this
chapter, or a temporary special event beer permit under Chapter 10, Part 3, Temporary Special
Event Beer Permits, for a period of three years from the date of revocation of the permit.
(c) Any [
the organization after the event if forfeiture proceedings are not instituted under Section
32A-13-103 .
(2) Special conditions and requirements for single event permittees include[
(a) (i) All persons involved in the storage, sale, or service of [
at the event do so under the supervision and direction of the permittee.
(ii) All persons involved in the sale or service of alcoholic beverages at the event may
not, while on duty:
(A) consume an alcoholic beverage; or
(B) be intoxicated.
(b) (i) All liquor stored, sold, served, and consumed at the event shall be purchased by
the permittee from a state store or package agency[
(ii) All beer purchased by the permittee shall be purchased from:
(A) a licensed beer wholesaler; or
(B) a licensed beer retailer.
(iii) All alcoholic beverages are considered under the control of the permittee during the
event.
(iv) Attendees of the event may not bring any [
(c) A permittee may not charge more than the maximum amount set forth in the permit
for any alcoholic beverage.
(d) Each permittee shall post in a prominent place in the area in which [
alcoholic beverages are being sold, served, and consumed, a copy of the permit, together with a
list of the operational restrictions and requirements of single event permittees set forth in this
section.
(e) [
or consumed in any [
on the permit unless the permittee first applies for and receives approval from the commission
for a change of location.
[
[
[
liquor [
except that[
(A) used as a secondary flavoring ingredient[
(B) used in conjunction with the primary spirituous liquor [
(C) the secondary ingredient is not the only spirituous liquor in the beverage; and
[
[
(D) each attendee may have no more than 2.75 ounces of spirituous liquor at a time
before the attendee.
(ii) [
metered dispensing system.
[
(g) (i) (A) Wine may be sold and served by the glass or an individual portion that does
not exceed five ounces per glass or individual portion.
(B) An individual portion may be served to an attendee in more than one glass as long as
the total amount of wine does not exceed five ounces.
(C) An individual portion of wine is considered to be one alcoholic beverage under
Subsection (2)(p).
(ii) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed by
the commission.
(iii) A wine service may be performed and a service charge assessed by the single event
permittee as authorized by commission rule for wine purchased at the event.
(h) (i) Heavy beer may be served in original containers not exceeding one liter at prices
fixed by the commission.
(ii) A service charge may be assessed by the single event permittee as authorized by
commission rule for heavy beer purchased at the event.
(i) Beer may be sold in any size container not exceeding two liters and on draft.
(j) (i) Alcoholic beverages may not be sold, served, or consumed between the hours of 1
a.m. and 10 a.m.
(ii) This Subsection (2)(j) does not preclude a local authority from being more restrictive
with respect to the hours of sale, service, or consumption of alcoholic beverages at a temporary
single event.
[
until after the polls are closed on the day of any:
(i) regular general election[
(ii) regular primary election[
(iii) statewide special election [
[
furnished to any:
(i) minor;
(ii) person actually, apparently, or obviously [
(iii) known habitual drunkard; or
(iv) known interdicted person.
(m) (i) (A) Liquor may be sold only at prices fixed by the commission.
(B) Liquor may not be sold at discount prices on any date or at any time.
(ii) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage to
the permittee.
(iii) An alcoholic beverage may not be sold at a price that encourages over consumption
or intoxication.
(iv) An alcoholic beverage may not be sold at a special or reduced price for only certain
hours of the day of the permitted event.
(v) The sale or service of more than one alcoholic beverage for the price of a single
alcoholic beverage is prohibited.
(vi) The permittee may not engage in a public promotion involving or offering free
alcoholic beverages to the general public.
(n) A single event permittee and its employees may not permit an attendee to carry from
the premises an open container that:
(i) is used primarily for drinking purposes; and
(ii) contains any alcoholic beverage.
[
at the event.
[
(p) Each attendee may have no more than one alcoholic beverage of any kind at a time
before the patron.
(3) The following acts or conduct at an event for which a permit is issued 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 (3)(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 (3);
(f) permitting any person to remain in or upon the premises who exposes to public view
any portion of his or her genitals or anus;
(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 (3); or
(iv) scenes wherein a person displays the vulva or the anus or the genitals.
(4) Nothing in Subsection (3) precludes a local authority from being more restrictive of
acts or conduct of the type prohibited in Subsection (3).
(5) (a) Although live entertainment is permitted at the event for which a permit has been
issued under this chapter, a permittee 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 (5)(a) precludes a local authority from being more restrictive
of acts or conduct of the type prohibited in Subsection (5)(a).
(6) The permittee shall maintain an expense and revenue ledger or record showing:
(a) expenditures made for liquor and beer, set-ups, and other ingredients and components
of alcoholic beverages; and
(b) the revenue from sale of alcoholic beverages.
(7) [
(8) A single event permittee may not engage in or allow 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 serviced by the single event permittee.
Section 64. Section 32A-8-101 is amended to read:
32A-8-101. Commission's power to grant licenses -- Limitations.
(1) The commission may issue alcoholic beverage manufacturing licenses to
manufacturers whose businesses are located in this state for the manufacture, storage, and sale of
alcoholic beverages for each type of license provided by this chapter.
(2) The type of manufacturing licenses issued under this chapter are known as:
(a) winery licenses[
(b) distillery licenses[
(c) brewery licenses.
(3) (a) A person may not manufacture any alcoholic beverage unless an alcoholic
beverage manufacturing license has been issued by the commission.
(b) A separate license is required for each place of manufacture, storage, and sale of
alcoholic beverages.
(c) Violation of this Subsection (3) is a class B misdemeanor.
(4) Brewers located outside the state are not required to be licensed under this chapter.
However, they must obtain a certificate of approval from the department before selling or
delivering beer to licensed beer wholesalers in this state, or if a small brewer, to licensed beer
wholesalers or retailers in this state.
(a) A brewer seeking a certificate of approval shall file a written application with the
department, in a form prescribed by the department. [
by:
(i) a nonrefundable [
(ii) an initial certificate of approval fee of [
not granted;
(iii) evidence of authority from the United States Bureau of Alcohol, Tobacco, and
Firearms to brew beer and heavy beer products; and
(iv) any other information or documents the department may require.
(b) Each application shall be signed and verified by oath or affirmation by a partner if a
partnership, or by an executive officer, manager, or person specifically authorized by a
corporation or limited liability company to sign the application to which shall be attached written
evidence of this authority.
(c) (i) All certificates of approval expire on December 31 of each year.
(ii) Brewers desiring to renew their certificates shall submit a renewal fee of [
and a completed renewal application to the department no later than November 30 of the year the
certificate expires.
(iii) Failure to meet the renewal requirements shall result in an automatic forfeiture of the
certificate effective on the date the existing certificate expires.
(iv) Renewal applications shall be in a form prescribed by the department.
(5) The commission may prescribe by policy, directive, or rule, consistent with this title,
the general operational requirements of licensees relating to:
(a) physical facilities;
(b) conditions of sale, storage, or manufacture of alcoholic beverages;
(c) storage and sales quantity limitations; and
(d) other matters considered appropriate by the commission.
Section 65. Section 32A-8-102 is amended to read:
32A-8-102. Application and renewal requirements.
(1) Each person seeking an alcoholic beverage manufacturing license of any kind under
this chapter shall file a written application with the department, in a form prescribed by the
department. [
(a) a nonrefundable application fee of [
(b) an initial license fee of [
which is refundable if a license is not granted;
(c) a statement of the purpose for which the applicant has applied for the alcoholic
beverage manufacturing license;
(d) written consent of the local authority;
(e) a bond as specified by Section 32A-8-105 ;
(f) evidence that the applicant is carrying public liability insurance in an amount and
form satisfactory to the department;
(g) evidence that the applicant is authorized by the United States to manufacture
alcoholic beverages;
(h) a signed consent form stating that the licensee will permit any authorized
representative of the commission, department, or any law enforcement officer to have
unrestricted right to enter the premises; [
(i) 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 application are
authorized to so act on behalf of the partnership, corporation, or limited liability company; and
[
to allow complete evaluation of the application.
[
[
each year.
(b) Persons desiring to renew their license shall submit [
license expires[
(i) a completed renewal application to the department; and
(ii) a renewal fee in the following amount:
(A) $2,500, except for an alcoholic beverage manufacturing license described in
Subsection (2)(b)(ii)(B); or
(B) $1,200 for a winery license if the winery licensee produced less than 20,000 gallons
of wine in the calendar year preceding the year in which the licensee seeks renewal.
(c) Failure to meet the renewal requirements results in an automatic forfeiture of the
license effective on the date the existing license expires. Renewal applications shall be in a form
prescribed by the department.
[
may suspend or revoke an alcoholic beverage manufacturing license if the manufacturing
licensee does not immediately notify the department of any change in:
(a) ownership of the licensee[
(b) for a [
(i) corporate officers 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 66. Section 32A-8-103 is amended to read:
32A-8-103. Qualifications.
(1) (a) The commission may not grant an alcoholic beverage manufacturing license to
any person who has been convicted of:
(i) [
(ii) [
the sale, manufacture, distribution, warehousing, adulteration, or transportation of alcoholic
beverages; [
(iii) [
(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 [
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
[
(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 manufacturer has been convicted of any offense
described in Subsection (1)(a).
(2) [
manufacturing license [
after the day on which the alcoholic beverage manufacturing 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) The director may take emergency action by immediately suspending the operation of
the licensee 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[
(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 manufacturing 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 manufacturing license to any 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
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 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 the 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 manufacturing 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;
(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 manufacturing 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 who 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.
[
(i) granted an alcoholic beverage manufacturing license; or [
(ii) employed by a manufacturing licensee to handle [
(b) The commission may not grant an alcoholic beverage manufacturing 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.
[
any person who has not met any applicable federal requirements for the operation of wineries,
distilleries, or breweries.
[
possesses the qualifications required by this title for obtaining that license, the commission may
suspend or revoke that license.
Section 67. Section 32A-8-106 is amended to read:
32A-8-106. Operational restrictions.
(1) Each person granted an alcoholic beverage manufacturing license and the employees
and management of the licensee shall abide by the following conditions and requirements, and
any special conditions and restrictions otherwise provided in this chapter. Failure to comply may
result in a suspension or revocation of the license or other disciplinary action taken against
individual employees or management personnel:
(a) A licensee may not sell any liquor within the state except to the department and to
military installations.
(b) Each license issued under this chapter shall be conspicuously displayed on the
licensed premises.
(c) A licensee may not advertise its product in violation of this title or any other federal
or state law, except that nothing in this title prohibits the advertising or solicitation of orders for
industrial alcohol from holders of special permits.
(d) Each alcoholic beverage manufacturing licensee shall maintain accounting and other
records and documents as the department may require. Any manufacturing licensee or person
acting for the manufacturing licensee, who knowingly forges, falsifies, alters, cancels, destroys,
conceals, or removes the entries in any of the books of account or other documents of the
licensee 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 manufacturing license and
criminal prosecution under Chapter 12, Criminal Offenses.
(e) [
not be transferred from one location to another, without prior written approval of the
commission.
(f) (i) A manufacturing licensee may not sell, transfer, assign, exchange, barter, give, or
attempt in any way to dispose of the license to any other person or entity, whether for monetary
gain or not.
(ii) A manufacturing license has no monetary value for the purpose of any type of
disposition.
[
analytical purposes samples of the alcoholic products that it has for sale or that it has in the
course of manufacture for sale in this state.
(2) Nothing in this chapter prevents any manufacturer of, or dealer in, patent or
proprietary medicines containing alcohol from selling the medicines in the original and unbroken
package if the medicine contains sufficient medication to prevent its use as an alcoholic
beverage. Each manufacturer or dealer who keeps patent or proprietary medicines for sale shall,
upon request by the department, provide a sufficient sample of the medicine to enable the
department to have the medicine analyzed.
(3) (a) Nothing in this chapter prevents any person from manufacturing vinegar or
preserved nonintoxicating cider for use or sale, or the manufacture or sale for lawful purposes of
any food preparation, or any United States Pharmacopoeia or national formulary preparation in
conformity with the Utah pharmacy laws, if the preparation conforms to standards established by
the state departments of agriculture and health, and contains no more alcohol than is absolutely
necessary to preserve or extract the medicinal, flavoring, or perfumed properties of the treated
substances.
(b) Nothing in this chapter prevents the manufacture or sale of wood or denatured
alcohol under rules established by the department and in compliance with the formulas and rules
established by the United States.
Section 68. Section 32A-8-501 is amended to read:
32A-8-501. Commission's power to grant licenses.
(1) The commission may issue local industry representative licenses to individual
residents of Utah, Utah partnerships, [
companies who are employed by a manufacturer, supplier, or importer, whether compensated by
salary, commission, or any other means, to represent liquor, wine, or heavy beer products with
the department, package agencies, licensees, and permittees under this title.
(2) (a) Before any Utah resident, Utah partnership, [
liability company may represent a liquor, wine, or heavy beer product of a manufacturer,
supplier, or importer, the resident, partnership, or corporation shall first obtain a local industry
representative license from the commission as provided in this part.
(b) A violation of this Subsection (2) is a class B misdemeanor.
(3) Individual employees or agents of [
representative licensees are not required to be separately licensed.
(4) A local industry representative may represent more than one manufacturer, supplier,
or importer at a time.
(5) (a) A manufacturer, supplier, or importer is not required to use a local industry
representative to represent its products with the department, package agencies, licensees, or
permittees. [
(b) Any employee or agent of the manufacturer, supplier, or importer who is not a local
industry representative while in the state [
provided by the department, before representing alcoholic beverage products with the
department, package agencies, licensees, and permittees of the department.
(c) A manufacturer, supplier, or importer described in Subsection (5)(b) and their
employees and agents are subject to the same operational restrictions of this part and Chapter 12,
Criminal Offenses.
Section 69. Section 32A-8-502 is amended to read:
32A-8-502. Application and renewal requirements.
(1) An individual resident, partnership, [
seeking a local industry representative license under this chapter shall file a written application
with the department, in a form prescribed by the department. [
accompanied by:
(a) a nonrefundable [
(b) an initial license fee of [
(c) verification that the applicant is:
(i) a resident of Utah[
(ii) a Utah partnership [
(iii) a Utah corporation; or
(iv) a Utah limited liability company;
(d) an affidavit stating the name and address of all manufacturers, suppliers, and
importers the applicant will represent;
(e) a signed consent form stating that the local industry representative will permit any
authorized representative of the commission, department, or any law enforcement officer the
right to enter, during normal business hours, the specific premises where the representative
conducts business;
(f) in the case of [
corporation, or limited liability company, proper verification evidencing that the person or
persons signing the application are authorized to so act on [
behalf of the partnership, corporation, or a limited liability company; and
(g) any other information the commission or department may require.
(2) (a) All local industry representative licenses expire on January 1 of each year.
(b) Licensees desiring to renew their license shall submit a renewal fee of [
a completed renewal application to the department no later than November 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, but shall
require the licensee to file an affidavit stating the name and address of all manufacturers,
suppliers, and importers the licensee currently represents.
(3) A licensed local industry representative may represent more than one manufacturer,
supplier, or importer without paying additional license fees.
(4) In order to ensure compliance with Subsection 32A-8-505 (8), the commission may
suspend or revoke a local representative license if a local industry representative licensee does
not immediately notify the department of any change in:
(a) ownership of the business;
(b) for a corporate owner, the:
(i) corporate officers 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 70. Section 32A-8-503 is amended to read:
32A-8-503. Qualifications.
(1) (a) The commission may not grant a local industry representative license to [
(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, importing, warehousing, adulteration, or transportation of alcoholic
beverages; [
(iii) any crime involving moral turpitude[
(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 [
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
[
(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 local industry representative has been convicted of any
offense described in Subsection (1)(a).
(2) [
immediately [
after the day on which the local industry representative 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) The director may take emergency action by immediately suspending the operation of
the [
of Title 63, Chapter 46b, Administrative Procedures Act, for the period during which the
criminal matter is being adjudicated[
(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 local industry representative license to any
individual 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 local industry representative license to [
company if any partner, managing agent, manager, officer, director, [
least 20% of the total issued and outstanding stock of [
who owns at least 20% of an applicant limited liability company is or was:
(A) a partner or managing agent of any partnership[
license, agency, or permit issued under this title revoked within the last three years;
(B) a managing agent, officer, director, or [
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 [
within the last three years.
(b) [
limited liability company may not be granted a local industry representative 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 [
(ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
total issued and outstanding stock of the [
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 an industry
representative license if that person was:
(i) a partner or managing agent of a partnership[
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 a limited liability company that
had [
three years.
(5) (a) The commission may not grant a local industry representative license to [
(b) The commission may not grant a local industry representative 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) The commission may not grant a local industry representative license to any holder of
any retail license issued under this title, to any employee or agent of any retail license issued
under this title, or to any individual, partnership, [
who holds any interest in any retail license issued under this title except as otherwise provided.
(7) If any individual, partnership, [
a local industry representative 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 71. Section 32A-8-505 is amended to read:
32A-8-505. Operational restrictions.
(1) (a) A local industry representative licensee, employee or agent of the licensee, or
employee or agent of a manufacturer, supplier, or importer who is conducting business in the
state, shall abide by the conditions and requirements set forth in this section.
(b) If any person listed in Subsection (1)(a) knowingly violates or fails to comply with
the conditions and requirements set forth in this section, such violation or failure to comply may
result in a suspension or revocation of the license or other disciplinary action taken against
individual employees or agents of the licensee, and the commission may order the removal of the
manufacturer's, supplier's, or importer's products from the department's sales list and a
suspension of the department's purchase of those products for a period determined by the
commission if the manufacturer, supplier, or importer directly committed the violation, or
solicited, requested, commanded, encouraged, or intentionally aided another to engage in the
violation.
(2) A local industry representative licensee, employee or agent of the licensee, or
employee or agent of a manufacturer, supplier, or importer who is conducting business in the
state:
(a) may assist the department in ordering, shipping, and delivering merchandise, new
product notification, listing and delisting information, price quotations, product sales analysis,
shelf management, and educational seminars, and may, for the purpose of acquiring new listings,
solicit orders from the department and submit to the department price lists and samples of their
products, but only to the extent authorized by Chapter 12, Criminal Offenses;
(b) may not sell any liquor, wine, or heavy beer within the state except to the department
and military installations;
(c) may not ship or transport, or cause to be shipped or transported, into this state or from
one place to another within this state any liquor, wine, or heavy beer;
(d) may not sell or furnish[
department and military installations;
(e) except as otherwise provided, may not advertise products it represents in violation of
this title or any other federal or state law;
(f) shall comply with all trade practices provided in Chapter 12, Criminal Offenses; and
(g) may only provide samples of their products for tasting and sampling purposes[
provided in Section 32A-12-603 [
[
(3) (a) A local industry representative licensee shall maintain on file with the department
a current accounts list of the names and addresses of all manufacturers, suppliers, and importers
the licensee represents.
(b) The licensee shall notify the department in writing of any changes to the accounts
listed within 14 days from the date the licensee either acquired or lost the account of a particular
manufacturer, supplier, or importer.
(4) A local industry representative licensee shall maintain accounting and other records
and documents as the department may require for at least three years.
(5) Any local industry representative licensee or person acting for the licensee, who
knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the entries in any of
the books of account or other documents of the licensee 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 industry representative's license and possible criminal
prosecution under Chapter 12, Criminal Offenses.
(6) A local industry representative licensee may, for the purpose of becoming educated as
to the quality and characteristics of a liquor, wine, or heavy beer product which the licensee
represents, taste and analyze industry representative samples under the following conditions:
(a) The licensee may not receive more than two industry representative samples of a
particular type, vintage, and production lot of a particular branded product within a consecutive
120-day period.
(b) (i) Each sample of liquor may not exceed 1 liter.
(ii) Each sample of wine or heavy beer may not exceed 1.5 liters unless that exact
product is only commercially packaged in a larger size, not to exceed 5 liters.
(c) Each industry representative sample may only be of a product not presently listed on
the department's sales list.
(d) Industry representative samples shall be shipped prepaid by the manufacturer,
supplier, or importer by common carrier and not via United States mail directly to the
department's central administrative warehouse office. These samples may not be shipped to any
other location within the state.
(e) Industry representative samples shall be accompanied by a letter from the
manufacturer, supplier, or importer:
(i) clearly identifying the product as an "industry representative sample"; and
(ii) clearly stating:
(A) the FOB case price of the product; and
(B) the name of the local industry representative for who it is intended.
(f) The department shall assess a reasonable handling, labeling, and storage fee for each
industry representative sample received.
(g) The department shall affix to each bottle or container a label clearly identifying the
product as an "industry representative sample".
(h) The department shall:
(i) account for and record each industry representative sample received;
(ii) account for the sample's disposition; and
(iii) maintain a record of the sample and its disposition for a two-year period.
(i) Industry representative samples may not leave the premises of the department's central
administrative warehouse office.
(j) Licensed industry representatives and their employees and agents may, at regularly
scheduled days and times established by the department, taste and analyze industry representative
samples on the premises of the department's central administrative warehouse office.
(k) Any unused contents of an opened product remaining after the product has been
sampled shall be destroyed by the department under controlled and audited conditions established
by the department.
(l) Industry representative samples that are not tasted within 30 days of receipt by the
department shall be disposed of at the discretion of the department in one of the following ways:
(i) contents destroyed under controlled and audited conditions established by the
department; or
(ii) added to the inventory of the department for sale to the public.
(7) [
(a) the holder of any retail license issued under this title; or
(b) an employee or agent of any retail licensee issued under this title.
(8) (a) A local representative 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 local industry representative license has no monetary value for the purpose of any
type of disposition.
Section 72. Section 32A-9-102 is amended to read:
32A-9-102. Application and renewal requirements.
(1) A person seeking a warehousing license under this chapter shall file a written
application with the department, in a form prescribed by the department. [
shall be accompanied by:
(a) a nonrefundable [
(b) an initial license fee of [
(c) written consent of the local authority;
(d) a copy of the applicant's current business license;
(e) a bond as specified by Section 32A-9-105 ;
(f) evidence that the applicant is carrying public liability insurance in an amount and
form satisfactory to the department;
(g) a floor plan of the applicant's warehouse, including the area in which the applicant
proposes that liquor be stored;
(h) a signed consent form stating that the licensee will permit any authorized
representative of the commission, department, or any law enforcement officer unrestricted right
to enter the warehouse premises; [
(i) 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 warehousing
license application are authorized to so act on behalf of the partnership, corporation, or limited
liability company; and
[
to allow complete evaluation of the application.
[
[
(b) Persons desiring to renew their license shall submit a renewal fee of [
and a completed renewal application to the department no later than November 30 of the year the
license expires.
(c) Failure to meet the renewal requirements results in an automatic forfeiture of the
license effective on the date the existing license expires.
(d) Renewal applications shall be in a form prescribed by the department.
[
may suspend or revoke a warehousing license if a warehousing licensee does not immediately
notify the department of any change in:
(a) ownership of the licensee[
(b) for a [
(i) corporate officers 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 73. Section 32A-9-103 is amended to read:
32A-9-103. Qualifications.
(1) (a) The commission may not grant a warehousing license to any person who has been
convicted of:
(i) [
(ii) [
manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
[
(iii) [
(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 [
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
[
(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 warehouse has been convicted of any offense
described in Subsection (1)(a).
(2) [
[
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) The director may take emergency action by immediately suspending the operation of
the [
Chapter 46b, Administrative Procedures Act, for the period during which the criminal matter is
being adjudicated[
(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 warehousing 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 warehousing 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;
(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 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 warehousing 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;
(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 warehousing 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) any manager or member who 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.
[
(i) granted a [
(ii) employed by a warehouse to handle liquor.
(b) The commission may not grant a warehousing 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.
[
otherwise, either directly or indirectly, may not hold at the same time both a warehousing license
and any other kind of license, agency, or permit issued under Title 32A, Chapter 3, 4, 5, 6, or 7,
or Chapter 10, Part 2.
[
possesses the qualifications required by this title for obtaining that license, the commission may
suspend or revoke that license.
Section 74. Section 32A-9-106 is amended to read:
32A-9-106. Operational restrictions.
Each person granted a warehousing license and the employees and management of the
licensee shall abide by 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) All liquor warehoused in this state and sold to out-of-state consignees, shall be
transported out of the state only by a motor carrier regulated under Title 72, Chapter 9, Motor
Carrier Safety Act.
(2) All liquor warehoused in this state and sold to the department shall be transported by
motor carriers approved by the department.
(3) All liquor transported to or from the licensee's premises shall be carried in sealed
conveyances that are made available for inspection by the department while en route within the
state.
(4) A licensee may not ship, convey, distribute, or remove liquor from any warehouse in
less than full case lots.
(5) A licensee may not ship, convey, distribute, or remove any liquor from a warehouse
to any consignee outside the state that is not licensed as a liquor wholesaler or retailer by the state
in which the consignee is domiciled.
(6) A licensee may not receive, warehouse, ship, distribute, or convey any liquor that the
commission has not authorized the licensee to handle through its warehouse.
(7) Each licensee shall maintain accounting and other records and documents as the
department may require. Any licensee or person acting for the licensee, who knowingly forges,
falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the books of account
or other documents of the licensee 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
license and possible criminal prosecution under Chapter 12, Criminal Offenses.
(8) [
from one location to another, without prior written approval of the commission.
(9) (a) A liquor warehousing 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 liquor warehousing license has no monetary value for the purpose of any type of
disposition.
Section 75. Section 32A-10-101 is amended to read:
32A-10-101. State and local licensing -- Limitations.
(1) Any local authority may:
(a) tax or prohibit any retail sale of beer;
(b) issue, suspend, and revoke licenses to sell beer at retail for on-premise consumption;
(c) issue, suspend, and revoke temporary permits or licenses to sell beer for on-premise
consumption at temporary special events that do not last longer than 30 days;
(d) issue, suspend, and revoke licenses to general food stores and other establishments to
sell beer at retail for off-premise consumption; [
(e) establish proximity restrictions for establishing premises where beer is sold at retail
for off-premise consumption in relation to any public or private school, church, public library,
public playground, or park; and
[
(2) The commission shall issue licenses to sell beer at retail for on-premise consumption
as provided in Part 2, On-Premise Beer Retailer Licenses.
(3) Each licensee issued a license for on-premise consumption, by the commission under
Subsection (2) or by the local authority under Subsection (1), is subject to the operational
restrictions provided in Section 32A-10-206 , except as otherwise provided.
(4) Suspension or revocation of [
by the commission under Subsection (2) or [
local authority under Subsection (1) prohibits the establishment whose license is suspended or
revoked from continuing to operate under the other state or local license it may have.
[
(5) The commission shall issue temporary permits to sell beer at retail for on-premise
consumption at temporary special events that do not last longer than 30 days as provided in Part
3, Temporary Special Event Beer Permits.
(6) Each permittee issued a temporary permit by the commission under Subsection (5) or
by the local authority under Subsection (1), is subject to the operational restrictions provided in
Section 32A-10-306 , except as otherwise provided.
(7) Suspension or revocation of a temporary permit issued by the commission under
Subsection (5) or by a local authority under Subsection (1) prohibits the permittee whose permit
is suspended or revoked from continuing to operate under the other state or local permit the
permittee may have.
Section 76. Section 32A-10-102 is amended to read:
32A-10-102. General restrictions.
(1) (a) (i) A beer retailer licensed under this part or Part 2, On-Premise Beer Retailer
Licenses, may not purchase, acquire, possess for the purpose of resale, or sell any beer except
that which has been lawfully purchased from a wholesaler licensed under this title or from a
small brewer that manufactured the beer.
(ii) Violation of Subsection (1)(a) is a class A misdemeanor.
(b) (i) All purchases made of beer by any beer retailer from a licensed wholesaler shall be
from that wholesaler who is authorized by the commission to sell beer in the geographical area in
which the beer retailer is located, unless an alternate wholesaler is authorized by the
[
(ii) Violation of Subsection (1)(b) is a class B misdemeanor.
(2) (a) Beer may not be sold, provided, or possessed for off-premise consumption in
containers larger than two liters.
(b) [
(i) an on-premise beer retailer [
provided in this part is not required for [
(ii) a temporary beer permit must be obtained from the commission as provided in Part 3,
Temporary Special Event Beer Permits.
(3) (a) A minor may not be granted a beer retailer license.
(b) The commission may not grant a beer retailer 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.
(4) A minor may not sell beer on the premises of a beer retailer for off-premise
consumption except under the supervision of a person 21 years of age or older who is on the
premises.
(5) (a) If malt beverage coolers or malt liquor is sold by a beer retailer for off-premise
consumption, the beer retailer shall display a sign at the location on the premises where malt
beverages or malt liquor is sold stating: "Many malt beverages contain alcohol. Please read the
label."
(b) A violation of this Subsection (5) is an infraction.
Section 77. Section 32A-10-201 is amended to read:
32A-10-201. Commission's power to grant licenses -- Limitations.
(1) [
for on-premise consumption, it shall first obtain:
(a) an on-premise beer retailer license from the commission as provided in this part; and
(b) a license issued by the local authority, as provided in Section 32A-10-101 , to sell beer
at retail for on-premise consumption or other written consent of the local authority to sell beer at
retail for on-premise consumption.
(2) (a) The commission may issue on-premise beer retailer licenses for the purpose of
establishing on-premise beer retailer outlets at places and in numbers as it considers proper for
the storage, sale, and consumption of beer on premises operated as on-premise beer retailer
outlets.
(b) (i) Notwithstanding Subsection (2)(a), the total number of on-premise beer retailer
licenses that are taverns may not at any time aggregate more than that number determined by
dividing the population of the state by 22,500.
(ii) If the total number of on-premise beer retailer licenses in effect on May 5, 2003, that
are taverns equals or exceeds the limitation of Subsection (2)(b)(i):
(A) a license for a tavern that is in effect on May 5, 2003:
(I) is not invalidated by Subsection (2)(b)(i); and
(II) may be renewed in accordance with this chapter; and
(B) the commission may not grant a new on-premise beer retailer license to a tavern until
such time as the total number of licenses granted to a tavern under this chapter is less than the
limitation of Subsection (2)(b)(i).
(iii) For purposes of this Subsection (2), the population of the state shall be determined
by:
(A) the most recent United States decennial special census; or
(B) any other population determination made by the United States or state governments.
(c) (i) The commission may issue seasonal licenses for taverns established in areas the
commission considers necessary.
(ii) A seasonal license for taverns shall be for a period of six consecutive months.
(iii) An on-premise beer retailer license for a tavern issued for operation during a
summer time period is known as a "Seasonal A" on-premise beer retailer license for a tavern.
The period of operation for a "Seasonal A" on-premise beer retailer license for a tavern shall:
(A) begin on May 1; and
(B) end on October 31.
(iv) An on-premise beer retailer license for a tavern issued for operation during a winter
time period is known as a "Seasonal B" on-premise beer retailer license for a tavern. The period
of operation for a "Seasonal B" on-premise beer retailer license for a tavern shall:
(A) begin on November 1; and
(B) end on April 30.
(v) In determining the number of tavern licenses that the commission may issue under
this section:
(A) a seasonal on-premise beer retailer license for a tavern is counted as 1/2 of one
on-premise beer retailer license for a tavern; and
(B) each "Seasonal A" on-premise beer retailer license for a tavern shall be paired with a
"Seasonal B" on-premise beer retailer license for a tavern.
(3) (a) [
[
school, church, public library, public playground, or park, as measured by the method in
Subsection [
(b) [
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.
[
the following exemptions applies:
[
(i) with respect to the establishment of an on-premise beer retailer license that operates as
a tavern 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 an on-premise beer retailer tavern 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;
[
license that operates as a tavern in any location, the commission may[
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);
(iii) with respect to the establishment of an on-premise beer retailer license that does not
operate as a tavern in any location, the commission may authorize a variance that reduces 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 an on-premise beer retailer license that does not
operate as a tavern 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 a
license would not be detrimental to the public health, peace, safety, and welfare of the
community;
[
before July 1, 1991, to an establishment that undergoes a change in ownership after that date, the
commission may waive or vary the proximity [
in considering whether to grant an on-premise retailer beer license to the new owner[
(v) with respect to the premises of an on-premise beer retailer license 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 an on-premise
beer retailer license to the new owner of the premises if:
(A) the premises previously received a variance from the proximity requirements of
Subsection (3)(a) or (b); or
(B) a variance from proximity or distance requirements was otherwise allowed under this
title.
[
playground, or park, the 600 foot limitation is measured from the nearest entrance of the outlet by
following the shortest route of [
public or private school, church, public library, public playground, school playground or park.
[
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 [
(i) a nursery [
(ii) an infant day care [
(iii) a trade and technical [
Section 78. Section 32A-10-202 is amended to read:
32A-10-202. Application and renewal requirements.
(1) A person seeking an on-premise beer retailer license under this chapter shall file a
written application with the department, in a form prescribed by the department. [
application shall be accompanied by:
(a) a nonrefundable [
(b) an initial license fee [
in the following amount:
(i) if the on-premise beer retailer licensee does not operate as a tavern, the initial license
fee is $150; or
(ii) if the on-premise beer retailer licensee operates as a tavern, the initial license fee is
$1,250;
(c) written consent of the local authority or a license to sell beer at retail for on-premise
consumption granted by the local authority under Section 32A-10-101 ;
(d) a copy of the applicant's current business license;
(e) [
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-10-201 (3)[
application shall be processed in accordance with those subsections;
(f) a bond as specified by Section 32A-10-205 ;
(g) a floor plan of the premises, including consumption areas and the area where the
applicant proposes to keep, store, and sell beer;
(h) evidence that the on-premise beer retailer licensee is carrying public liability
insurance in an amount and form satisfactory to the department;
(i) for those licensees that sell more than $5,000 of beer annually, evidence that the
on-premise beer retailer licensee 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 on-premise beer retailer licensee will permit any
authorized representative of the commission, department, or any peace officer unrestricted right
to enter the licensee premises;
(k) in the case of [
liability company, proper verification evidencing that the person or persons signing the
on-premise beer retailer licensee application are authorized to so act on the [
of the partnership, corporation, or limited liability company; and
(l) any other information the department may require.
(2) (a) All on-premise beer retailer licenses expire on the last day of February of each
year[
(b) Persons desiring to renew their on-premise beer retailer license shall submit [
January 31[
(i) a completed renewal application to the department; and
(ii) a renewal fee in the following amount:
(A) if the on-premise beer retailer licensee does not operate as a tavern, the renewal fee is
$200; or
(B) if the on-premise beer retailer licensee operates as a tavern, the renewal fee is $1,000.
(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) [
suspend or revoke a beer retailer license if any beer retailer licensee does not immediately notify
the department of any change in:
(a) ownership of the beer retailer[
(b) for a [
(i) corporate officers or directors[
and
(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.
(4) If the applicant is a county, municipality, or other political subdivision, it need not
meet the requirements of Subsections (1)(a), (b), (c), (d), and (f).
(5) Only one state on-premise beer retailer license is required for each building or resort
facility owned or leased by the same applicant. Separate licenses are not required for each retail
beer dispensing outlet located in the same building or on the same resort premises owned or
operated by the same applicant.
Section 79. Section 32A-10-203 is amended to read:
32A-10-203. Qualifications.
(1) (a) The commission may not grant an on-premise beer retailer license to [
(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) of any crime involving moral turpitude[
(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 [
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
[
or
(vii) a manager or 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 on-premise beer retailer has been convicted of any
offense described in Subsection (1)(a).
(2) [
on-premise beer retailer 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) [
operation of [
requirements of Title 63, Chapter 46b, Administrative Procedures Act, for the period during
which the criminal matter is being adjudicated[
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 an on-premise beer retailer 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 on-premise beer retailer license to any [
partner, managing agent, manager, officer, director, [
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[
license, agency, or permit issued under this title revoked within the last three years;
(B) a managing agent, officer, director, or [
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 [
within the last three years.
(b) [
limited liability company may not be granted an on-premise beer retailer 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 [
(ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
total issued and outstanding stock of the [
or
(iii) any manager or member company who owns at least 20% of the applicant limited
liability company.
(c) A person acting in an individual capacity may not be granted an on-premise beer
retailer license if that person was:
(i) a partner or managing agent of a partnership[
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 any limited liability company who owned at least 20% of a
limited liability company that had [
this title revoked within the last three years.
(5) (a) A minor may not be granted an on-premise beer retailer license.
(b) The commission may not grant a on-premise beer retailer 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 80. Section 32A-10-205 is amended to read:
32A-10-205. Bond.
(1) Each on-premise beer retailer licensee shall post a cash or corporate surety bond in
the penal sum of [
must maintain for so long as the licensee continues to operate as an on-premise beer retailer
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 [
$300 reinstatement fee may be assessed.
(b) No part of any cash or corporate bond so posted may be withdrawn during the period
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 81. Section 32A-10-206 is amended to read:
32A-10-206. Operational restrictions.
Each person granted an on-premise beer retailer license and the employees and
management personnel of the on-premise beer retailer licensee 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) On-premise beer retailer licensees may sell beer in open containers, in any size not
exceeding two liters, and on draft.
(2) Liquor may not be stored or sold on the premises of any on-premise beer retailer
licensee.
(3) A patron [
designated, and trained by the licensee to sell and serve beer.
(4) (a) Beer may not be sold [
on-premise beer retailer [
(b) Beer may not be sold, [
(i) minor;
(ii) person actually, apparently, or obviously [
(iii) known habitual drunkard; or
(iv) known interdicted person.
(c) (i) Notwithstanding Subsection (4)(a), a tavern licensed under this chapter shall
remain open for one hour after the tavern ceases the sale and service of alcoholic beverages
during which time a patron of the tavern may finish consuming a single serving of beer not
exceeding 25 ounces.
(ii) A tavern is not required to remain open:
(A) after all patrons have vacated the premises; or
(B) during an emergency.
(5) (a) Beer may not be sold at less than the cost of the beer to the licensee.
(b) Beer may not be sold at a special or reduced price that encourages over consumption
or intoxication.
(c) Beer may not be sold at a special or reduced price for only certain hours of the beer
retailer's business day such as a "happy hour."
(d) The sale or service of more than one alcoholic beverage for the price of a single
alcoholic beverage is prohibited.
(e) The sale or service of an indefinite or unlimited number of alcoholic beverages during
any set period for a fixed price is prohibited.
(f) An on-premise beer licensee may not engage in a public promotion involving or
offering free alcoholic beverages to the general public.
[
removed from the on-premise beer retailer premises.
[
an on-premise beer retailer licensee any alcoholic beverage for on-premise consumption.
(b) [
managers, employees, or agents may not allow a person to bring onto the on-premise beer retailer
licensee premises any alcoholic beverage for on-premise consumption or allow consumption of
any such alcoholic beverage on its premises.
[
[
[
(8) An on-premise beer retailer licensee and its employees may not permit a patron to
carry from the premises an open container that:
(a) is used primarily for drinking purposes; and
(b) contains any alcoholic beverage.
[
(i) employed by or be on the premises of an on-premise beer retailer licensee to sell [
dispense, or otherwise furnish beer[
(ii) on the premises of any tavern.
(b) Notwithstanding Subsection (9)(a), a minor may be employed to enter the sale at a
cash register or other sales recording device on the premises of an on-premise beer retailer that is
not a tavern.
[
(a) consume an alcoholic beverage; or
(b) be [
[
on-premise beer retailer licensee:
(a) the on-premise beer retailer 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."
[
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 as described in Subsection [
(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 section;
(f) permitting any person to remain in or upon the premises who exposes to public view
any portion of his or her 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 that are 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 employed to depict, or
drawings are employed to portray, any of the prohibited activities described in this section; or
(iv) scenes wherein a person displays the vulva or the anus or the genitals.
[
restrictive of acts or conduct of the type prohibited in Subsection [
[
[
beer retailer licensee, a licensee may not permit 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 [
restrictive of acts or conduct of the type prohibited in Subsection [
(15) An on-premise beer retailer licensee may not engage in or permit any form of
gambling, or have any video gaming device, as defined and proscribed in Title 76, Chapter 10,
Part 11, Gambling, on the premises of the on-premise beer retailer licensee.
[
records and documents as the department may require.
(b) Any on-premise beer retailer licensee or person acting for the on-premise beer retailer
licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the
entries in any of the books of account or other documents of the on-premise beer retailer licensee
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 on-premise beer retailer license and
possible criminal prosecution under Chapter 12, Criminal Offenses.
[
be transferred from one location to another, without prior written approval of the commission.
[
licensee may not sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of
the license to any person, whether for monetary gain or not.
(b) An on-premise beer retailer license has no monetary value for the purpose of any type
of disposition.
Section 82. Section 32A-10-301 is enacted to read:
32A-10-301. Commission's power to grant temporary special event beer permits --
Limitations.
(1) Beginning May 5, 2003, before any person may sell beer at retail for on-premise
consumption at a temporary special event that does not last longer than 30 days, the person shall
first obtain:
(a) a temporary special event beer permit from the commission as provided in this part;
and
(b) (i) a temporary special event beer permit issued by the local authority as provided in
Section 32A-10-101 ; or
(ii) other written consent of the local authority to sell beer at retail for on-premise
consumption at a temporary special event.
(2) The commission may issue a temporary special event beer permit for the purpose of
allowing the sale of beer for on-premise consumption at a temporary special event that does not
last longer than 30 days.
(3) (a) The temporary special event beer permit shall authorize, for a period not to exceed
30 days, the storage, sale, service, and consumption of beer at the temporary special event.
(b) The sale of beer under a series of permits issued to the same person may not exceed a
total of 90 days in any one calendar year.
(c) A temporary special event beer permit may not be issued or obtained for the purpose
of avoiding or attempting to avoid the requirement of state licensing under Part 2, On-Premise
Beer Retailer License.
(4) (a) The 600 foot and 200 foot proximity limitations to educational, religious, and
recreational facilities that are applicable to state stores, package agencies, and licensees, do not
apply to a temporary special event beer permit.
(b) Notwithstanding Subsection (4)(a), nothing in this section prevents the commission
from considering the proximity of any educational, religious, or recreational facility, or any other
relevant factor in deciding whether to grant a temporary special event beer permit.
Section 83. Section 32A-10-302 is enacted to read:
32A-10-302. Application requirements.
(1) (a) A person seeking a temporary special event beer permit shall file a written
application with the department in a form prescribed by the department.
(b) The application required by this section shall be accompanied by:
(i) a permit fee of $75, which:
(A) is refundable if a permit is not granted; and
(B) shall be returned to the applicant with the application if the permit is not granted;
(ii) (A) written consent of the local authority; or
(B) a temporary permit granted by the local authority under Section 32A-10-101 ;
(iii) a bond as specified by Section 32A-10-305 ;
(iv) the times, dates, location, estimated attendance, nature, and purpose of the temporary
special event;
(v) a description or floor plan designating:
(A) the area in which the applicant proposes that beer be stored;
(B) the site from which the applicant proposes that beer be sold or served; and
(C) the area in which the applicant proposes that beer be allowed to be consumed;
(vi) a statement of the purpose of the temporary special event;
(vii) a signed consent form stating that authorized representatives of the commission,
department, or any law enforcement officers will have unrestricted right to enter the premises
during the temporary special event;
(viii) 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 application are
authorized to so act on behalf of the partnership, corporation, or limited liability company; and
(ix) any other information the commission or department may require.
(2) If the applicant is a county, municipality, or other political subdivision, it need not
meet the requirements of Subsection (1)(b)(i), (ii), or (iii).
Section 84. Section 32A-10-303 is enacted to read:
32A-10-303. Qualifications.
(1) (a) The commission may not grant a temporary special event beer permit 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 permit 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 an 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 temporary special event beer permittee has been
convicted of any offense as provided in Subsection (1)(a).
(2) The commission may immediately suspend or revoke a temporary special event
permit if after the day on which the permit 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 permit being granted; or
(b) on or after the day on which the permit 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 revoking the temporary
special event permit according to the procedures and requirements of Title 63, Chapter 46b,
Administrative Procedures Act, 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 temporary special event beer permit 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 temporary special event permit 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;
(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 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 temporary special event permit 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 temporary special
event permit 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 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:
(i) granted a temporary special event permit; or
(ii) employed by a temporary special event permittee to handle alcoholic beverages.
(b) The commission may not grant a temporary special event permit 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 permit has been issued under this part no longer possesses
the qualifications required by this title for obtaining that permit, the commission may suspend or
revoke that permit.
Section 85. Section 32A-10-304 is enacted to read:
32A-10-304. Commission and department duties before granting permits.
(1) (a) Before any temporary special event beer permit may be granted by the
commission, the department shall conduct an investigation, gather information, and make
recommendations to the commission as to whether or not a permit 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 temporary special event beer permit, the commission shall:
(a) determine that the applicant has complied with all basic qualifications and
requirements as provided by Sections 32A-10-302 and 32A-10-303 ;
(b) determine that the application is complete;
(c) consider the times, dates, location, estimated attendance, and purpose of the
temporary special event;
(d) to minimize the risk of minors being sold or furnished alcohol or adults being
overserved alcohol at the temporary special event, assess the adequacy of control measures for:
(i) a large-scale public event where the estimated attendance is in excess of 1,000 people;
or
(ii) an outdoor public event; and
(e) consider any other factors or circumstances the commission considers necessary.
(3) Upon commission approval of any application and upon issuance of a temporary
special event beer permit, the department shall send copies of the approved application and the
permit to state and local law enforcement authorities before the scheduled event.
Section 86. Section 32A-10-305 is enacted to read:
32A-10-305. Bond.
(1) Any applicant for a temporary special event beer permit shall post a cash or corporate
surety bond in the penal sum of $500 payable to the department, which the applicant has
procured and must maintain for so long as the permit is in effect.
(2) The bond shall be in a form approved by the attorney general, conditioned upon the
permittee's faithful compliance with this title and the rules of the commission.
(3) (a) No part of any cash or corporate bond so posted may be withdrawn during the
period the permit is in effect.
(b) A bond filed by the permittee may be forfeited if the permit is revoked.
Section 87. Section 32A-10-306 is enacted to read:
32A-10-306. Operational restrictions.
(1) (a) Any person granted a temporary special event beer permit and any person
involved in the storage, sale, or service of beer at the event for which a temporary special event
the permit is issued, shall abide by this title, the rules of the commission, and the special
conditions and requirements provided in this section.
(b) Failure to comply as provided in Subsection (1)(a):
(i) may result in:
(A) an immediate revocation of the permit;
(B) forfeiture of the surety bond; and
(C) immediate seizure of all beer present at the event; and
(ii) disqualifies the organization from applying for a temporary special event beer permit
under this part or a single event permit under Chapter 7, Single Event Permits, for a period of
three years from the date of revocation of the temporary special event permit.
(c) Any beer seized under this Subsection (1) shall be returned to the organization after
the event if forfeiture proceedings are not instituted under Section 32A-13-103 .
(2) Special conditions and requirements for temporary special event beer permittees
include the following:
(a) (i) All persons involved in the storage, sale, or service of beer at the temporary
special event do so under the supervision and direction of the permittee.
(ii) All persons involved in the sale or service of beer at the temporary special event may
not, while on duty:
(A) consume an alcoholic beverage; or
(B) be intoxicated.
(b) (i) All beer stored, sold, served, and consumed at the temporary special event shall be
purchased by the permittee from a licensed beer wholesaler or retailer.
(ii) All beer is considered under the control of the permittee during the temporary special
event.
(iii) An attendee of the temporary special event may not bring any alcoholic beverages
onto the premises of the temporary special event.
(c) Each permittee shall post in a prominent place in the area in which beer is being sold,
served, and consumed:
(i) a copy of the permit; and
(ii) a list of the operational restrictions and requirements of temporary special event beer
permittees set forth in this section.
(d) Beer purchased for a temporary special event may not be stored, sold, served, or
consumed in any location other than that described in the application and designated on the
temporary special event permit unless the permittee first applies for and receives approval from
the commission for a change of location.
(e) Beer may be sold in any size container not exceeding two liters and on draft.
(f) (i) Beer may not be sold, offered for sale, served, otherwise furnished, or consumed
between the hours of 1 a.m. and 10 a.m.
(ii) This Subsection (2)(f) does not preclude a local authority from being more restrictive
with respect to the hours of sale, service, or consumption of beer at a temporary special event.
(g) Beer may not be sold, served, or otherwise furnished to any:
(i) minor;
(ii) person actually, apparently, or obviously intoxicated;
(iii) known habitual drunkard; or
(iv) known interdicted person.
(h) (i) Beer may not be sold at less than the cost of the beer to the permittee.
(ii) Beer may not be sold at a price that encourages over consumption or intoxication.
(iii) Beer may not be sold at a special or reduced price for only certain hours of the day of
the permitted event.
(iv) The sale or service of more than one beer beverage for the price of a single beer
beverage is prohibited.
(v) The permittee may not engage in a public promotion involving or offering free beer
to the general public.
(i) The permittee and its employees may not permit an attendee to carry from the
premises an open container that:
(i) is used for drinking purposes; and
(ii) contains any alcoholic beverage.
(j) A minor may not sell, serve, dispense, or handle any beer at a temporary special event.
(3) The following acts or conduct at an event for which a permit is issued 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 (3)(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 (3);
(f) permitting any person to remain in or upon the premises who exposes to public view
any portion of his or her 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 (3); or
(iv) scenes wherein a person displays the vulva, anus, or the genitals.
(4) Nothing in Subsection (3) precludes a local authority from being more restrictive of
acts or conduct of the type prohibited in Subsection (3).
(5) (a) Although live entertainment is permitted at the event for which a permit has been
issued under this chapter, a permittee 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 (5)(a) precludes a local authority from being more restrictive
of acts or conduct of the type prohibited in Subsection (5)(a).
(6) The permittee shall maintain an expense and revenue ledger or record showing:
(a) expenditures made for beer; and
(b) the revenue from sale of beer.
(7) A temporary special event beer permit may not be transferred.
(8) A temporary special event beer permittee may not engage in or allow 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 serviced by the permittee.
Section 88. Section 32A-11-101 is amended to read:
32A-11-101. Commission's power to issue licenses.
(1) (a) The commission may issue beer wholesaling licenses for the import, purchase,
storage, sale, and distribution of beer.
(b) The license entitles the licensee to:
(i) purchase and import beer into the state;
(ii) store beer in approved warehouses; and
(iii) sell and distribute beer directly to:
(A) licensed beer retailers; and
(B) holders of temporary retail beer permits [
by the commission for temporary special events [
Chapter 10, Part 3, Temporary Special Event Beer Permits.
(2) (a) A person may not import, purchase, store, sell, or distribute beer to retailers or act
in any way as a beer wholesaler unless the person has been issued a beer wholesaler's license by
the commission.
(b) Nothing in this section precludes a small brewer from selling beer it has
manufactured directly to a licensed beer retailer.
(c) Violation of this subsection is a class A misdemeanor.
(3) The commission may prescribe by policy, directive, or rule, consistent with this title,
the general operational requirements of wholesaling licensees relating to physical facilities,
conditions of purchase, storage, sale, importation, distribution, or transportation of beer within
the state.
Section 89. Section 32A-11-102 is amended to read:
32A-11-102. Application and renewal requirements.
(1) A person seeking a beer wholesaling license under this chapter shall file a written
application with the department, in a form prescribed by the department. [
shall be accompanied by:
(a) a nonrefundable [
(b) an initial license fee of [
(c) written consent of the local authority;
(d) a copy of the applicant's current business license;
(e) a bond as specified in Section 32A-11-105 ;
(f) evidence that the applicant is carrying public liability insurance in an amount and
form satisfactory to the department;
(g) a signed consent form stating that the licensee will permit any authorized
representative of the commission, department, or any peace officer unrestricted right to enter the
licensed premises;
(h) a statement of the brands of beer the applicant is authorized to sell and distribute;
(i) a statement of all geographical areas in which the applicant is authorized to sell and
distribute beer; [
(j) 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 beer wholesaling
license application are authorized to so act on behalf of the partnership, corporation, or limited
liability company; and
[
[
[
(ii) Persons desiring to renew their beer wholesaling license shall submit [
the year the license expires[
(A) a completed renewal application to the department; and
(B) a renewal fee in the following amount:
Case Sales in Previous License Year for the Licensee Renewal Fee
under 500,000 cases $1,000
equals or exceeds 500,000 cases but less than 1,000,000 cases $2,000
equals or exceeds 1,000,000 cases $3,000.
(iii) Failure to meet the renewal requirements results in an automatic forfeiture of the
license effective on the date the existing license expires.
(iv) Renewal applications shall be in a form prescribed by the department.
(b) The annual renewal fee prescribed in this Subsection [
like license fee which may be assessed by the local authority of the city or county in which the
wholesaler's warehouse is located. Any local fees may not exceed $300. Payment of local fees
shall be made directly to the local authority assessing them.
[
commission may suspend or revoke a beer wholesaling license if a beer wholesaling licensee
does not immediately notify the department of any change in:
(a) ownership of the licensee[
(b) for a [
(i) corporate officers 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 90. Section 32A-11-103 is amended to read:
32A-11-103. Qualifications.
(1) (a) The commission may not issue a beer wholesaling license to any person who has
been convicted of:
(i) [
(ii) [
the sale, manufacture, distribution, warehousing, adulteration, or transportation of alcoholic
products; [
(iii) [
(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 [
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[
[
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 wholesaler has been convicted of any offense as
provided in Subsection (1)(a).
(2) [
wholesaling 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) The director may take emergency action by immediately suspending the operation of
[
63, Chapter 46b, Administrative Procedures Act, for the period during which the criminal matter
is being adjudicated[
(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 beer wholesaling 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 beer wholesaling 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
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 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 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 beer wholesaling 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;
(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 beer wholesaling
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 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.
[
(i) granted a beer wholesaling license; or [
(ii) employed by a licensee to handle beer.
(b) The commission may not grant a beer wholesaling 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.
[
any wholly or partially owned subsidiaries or otherwise, a brewery license or a retail beer license
simultaneously with a wholesaling license.
(b) A retail beer licensee may not be issued, directly or indirectly, nor hold, through any
wholly or partially owned subsidiaries or otherwise, a wholesaling license.
[
has not met any applicable federal requirements for beer wholesaling.
[
possesses the qualifications required by this title for obtaining that license, the commission may
suspend or revoke that license.
Section 91. Section 32A-11-106 is amended to read:
32A-11-106. Operational restrictions.
[
and management personnel of the licensee, shall [
and requirements[
wholesaling license or other disciplinary action taken against individual employees or
management personnel of the licensee.
[
brewer who is not licensed by the commission as a manufacturing licensee.
[
who has not obtained a certificate of approval from the department.
[
except licensed beer retailers or holders of temporary retail beer permits [
(b) A violation of this Subsection (3) is a class A misdemeanor.
[
geographic area designated on its application, except that if a licensee is temporarily unable to
supply retail dealers within its authorized geographical area, the department may grant temporary
authority to another licensed wholesaler who distributes the same brand in another area to supply
retailers.
(b) A violation of this Subsection (4) is a class B misdemeanor.
[
warehouse facility located in this state for the receipt, storage, and further distribution of all beer
sold by the licensee to any person within the state.
[
department, unless the beer has first been physically removed from the vehicle used to transport
the beer from the supplier to the licensee and delivered into the actual possession and control of
the licensee in its warehouse or other facility.
[
documents as the department may require. Any licensee or person acting for the licensee, who
knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the entries in any of
the books of account or other documents of the licensee 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 beer wholesaling license and possible criminal prosecution under
Chapter 12, Criminal Offenses.
[
or attempt in any way to dispose of the beer wholesaling license to any person, whether for
monetary gain or not, unless [
(a) in accordance with the commission rules; and
(b) after written consent has been given by the commission.
[
labeled in a manner reasonably calculated to put the public on notice that the beverage is an
alcoholic beverage. The beverage shall bear the label "alcoholic beverage" or a manufacturer's
label which in common usage apprises the general public that the beverage contains alcohol.
[
Section 92. Section 32A-11a-106 is amended to read:
32A-11a-106. Prohibited conduct of wholesaler.
(1) A wholesaler may not:
(a) induce, coerce, or attempt to induce or coerce, any retailer to engage in any illegal act
or course of conduct;
(b) impose a requirement that is discriminatory by its terms or in the methods of
enforcement as compared to requirements imposed by the wholesaler on similarly situated
retailers;
(c) prohibit a retailer from selling the product of any other wholesaler;
(d) fix or maintain the price at which a retailer may resell beer;
(e) require any retailer to accept delivery of any beer or any other item that is not
voluntarily ordered by the retailer;
(f) restrict or inhibit, directly or indirectly, the right of a retailer to participate in an
organization representing interests of retailers for any lawful purpose;
(g) require a retailer to participate in or contribute to any local, regional, or national
advertising fund or other promotional activity;
(h) retaliate against a retailer that files a complaint with the department or the applicable
federal agency regarding an alleged violation by the wholesaler of a state or federal law or
administrative rule; and
(i) refuse to deliver beer products carried by the wholesaler to a properly licensed retailer
who resides within the wholesaler's sales territory:
(i) in reasonable quantities; and
(ii) within a reasonable time after receipt of the retailer's order.
(2) Notwithstanding Subsection (1)(i), the wholesaler may refuse to deliver products if
the refusal is due to:
(a) the retailer's failure to pay the wholesaler pursuant to Subsection
32A-12-603 [
(b) an unforeseeable event beyond the wholesaler's control;
(c) a work stoppage or delay due to a strike or labor problem;
(d) a bona fide shortage of materials; or
(e) a freight embargo.
Section 93. Section 32A-12-103 is amended to read:
32A-12-103. Criminal responsibility for conduct of another.
In addition to Title 76, Chapter 2, Part 2, [
the following principles apply to violations of this title:
(1) If a violation of this title is committed by any person in the employ of the occupant of
any premises in which the offense is committed, or by any person who is required by the
occupant to be or remain in or upon the premises, or to act in any way for the occupant, the
occupant is prima facie considered a party to the offense committed, and is liable as a principal
offender, notwithstanding the fact that the offense was committed by a person who is not proved
to have committed it under or by the direction of the occupant. Nothing in this section relieves
the person actually committing the offense from liability.
(2) If a violation of this title is committed by a corporation [
or limited liability company, the officer or agent of the corporation or association, partner,
manager, or member of the limited liability company in charge of the premises in which the
offense is committed is prima facie considered a party to the offense committed, and is
personally liable to the penalties prescribed for the offense as a principal offender. Nothing in
this section relieves the corporation [
the person who actually committed the offense from liability.
Section 94. Section 32A-12-105 is amended to read:
32A-12-105. Additional criminal penalties.
In addition to the penalties provided in Title 76, Chapter 3, [
Penalties:
(1) Upon any defendant's conviction of any offense defined in this title, the court may
also order the defendant to make restitution or pay costs in accordance with Title 77, Chapter
32A, [
(2) (a) Upon a corporation's [
company's conviction of any offense defined in this title, and a failure of the corporation [
partnership, association, or limited liability company to pay a fine imposed upon it, the
[
limited liability company, if it is a domestic corporation [
liability company may be suspended or revoked, and if a foreign corporation, association,
partnership, or limited liability company, it forfeits its right to do intrastate business in this state.
(b) The department shall transmit the name of each corporation [
partnership, or limited liability company to the Division of Corporations and Commercial Code,
which shall immediately record the action in a manner that makes the information available to
the public. The suspension, revocation, or forfeiture is effective from the time the record is
made, and the certificate of the Division of Corporations and Commercial Code is prima facie
evidence of the suspension, revocation, or forfeiture. Nothing contained in this section may be
construed as affecting, limiting, or restricting any proceedings that otherwise may be taken for
the imposition of any other punishment or the modes of enforcement or recovery of fines or
penalties.
(3) Upon the conviction of any business entity required to have a business license to
operate its business activities, or upon the conviction of any of its agents, employees, or officers
of any offense defined in this title, with the knowledge, consent, or acquiescence of the business
entity, the department shall forward a copy of the judgment of conviction to the appropriate
governmental entity responsible for issuing and revoking the business licenses. That
governmental entity may institute appropriate proceedings to revoke the business' license, and
upon revocation, a license may not be granted to the business entity for at least one year from the
date of revocation. Upon the conviction for a second or other offense, a license may not be
granted for at least two years from the date of revocation.
(4) Upon conviction of any physician, pharmacist, druggist, dentist, or veterinarian of
any offense defined in this title, the department shall forward a certified copy of the judgment of
conviction to the [
Licensing. That department may institute appropriate proceedings to revoke the defendant's
license, and upon revocation, a license may not be granted to the defendant by the department for
at least one year from the date of revocation. Upon the defendant's conviction for a second or
other offense, a license may not be granted for at least two years from the date of revocation.
Section 95. Section 32A-12-201 is amended to read:
32A-12-201. Unlawful sale or furnishing.
(1) It is unlawful for any person[
manufacturer, supplier, or importer of liquor, or their officers, managers, employees, or agents to
sell, ship, transport, or cause to be sold, shipped, or transported any liquor from an out-of-state
location directly or indirectly into this state except to the extent authorized by this title to:
(a) the department;
(b) a military installation;
(c) a holder of a special use permit to the extent authorized by the commission in the
permit; or
(d) a bonded liquor warehouse licensed by the commission to distribute and transport
liquor to:
(i) the department; or
(ii) an out-of-state wholesaler or retailer.
(2) (a) It is unlawful for any person in the business of selling beer, or any manufacturer,
supplier, or importer of beer, or their officers, managers, employees, or agents to sell, ship,
transport, or cause to be sold, shipped, or transported any beer from an out-of-state location
directly or indirectly into this state except to the extent authorized by this title to:
(i) a licensed beer wholesaler;
(ii) a military installation; or
(iii) a holder of a special use permit to the extent authorized by the commission in the
permit.
(b) Subsection (2)(a) does not preclude a small brewer that holds a certificate of approval
under Subsection 32A-8-101 (4) from selling, shipping, or transporting beer directly to a licensed
beer retailer to the extent authorized by Subsection 32A-8-401 (5).
(3) (a) It is unlawful for any manufacturer, supplier, or importer of liquor in this state, or
their officers, managers, employees, or agents to sell, ship, transport, or cause to be sold, shipped,
or transported any liquor directly or indirectly to any person in this state except to the extent
authorized by this title to:
(i) the department;
(ii) a military installation;
(iii) a holder of a special use permit to the extent authorized by the commission in the
permit; or
(iv) a bonded liquor warehouse licensed by the commission to distribute and transport
liquor to:
(A) the department; or
(B) an out-of-state wholesaler or retailer.
(b) Subsection (3)(a) does not preclude a winery licensed under this title and located in
this state from selling wine to persons on its winery premises:
(i) to the extent authorized by Subsection 32A-8-201 (4)(c); or
(ii) under a package agency established by the commission on the winery premises.
(4) (a) It is unlawful for any manufacturer, supplier, or importer of beer in this state, or
their officers, managers, employees, or agents to sell, ship, transport, or cause to be sold, shipped,
or transported any beer directly or indirectly to any person in this state except to the extent
authorized by this title to:
(i) a licensed beer wholesaler;
(ii) a military installation; or
(iii) a holder of a special use permit to the extent authorized by the commission in the
permit.
(b) Subsection (4)(a) does not preclude:
(i) a small brewer licensed under this title and located in this state from selling, shipping,
and transporting beer directly to a licensed beer retailer in this state to the extent authorized by
Subsection 32A-8-401 (5); or
(ii) a brewery licensed under this title from selling beer to persons on its manufacturing
premises under Subsection 32A-8-401 (4)(c).
(5) It is unlawful for any person other than a person described in Subsection (1) or (2) to
sell, ship, transport, or cause to be sold, shipped, or transported any alcoholic beverage or product
from an out-of-state location directly or indirectly into this state, except as otherwise provided by
this title.
(6) It is unlawful for any person in this state other than a person described in Subsection
(3) or (4) to sell, ship, transport, or cause to be sold, shipped, or transported any alcoholic
beverage or product directly or indirectly to any other person in this state, except as otherwise
provided by this title.
(7) It is unlawful for any retail licensee or permittee in this state, or their officers,
managers, employees, or agents to keep for sale, or to directly or indirectly, sell, offer to sell, or
otherwise furnish to another, any alcoholic beverage or product, except as otherwise provided by
this title.
(8) (a) A violation of Subsection (1), (2), (3), or (4) is a third degree felony.
(b) A violation of Subsection (5) or (6) is a class B misdemeanor.
(c) A violation of Subsection (7) is a class B misdemeanor, except where otherwise
provided by this title.
Section 96. Section 32A-12-203 is amended to read:
32A-12-203. Unlawful sale or furnishing to minors.
(1) A person may not sell, offer to sell, or otherwise furnish [
beverage or product to any [
(2) (a) Except as otherwise provided in Subsection (4), a person is guilty of a class B
misdemeanor if that person:
(i) sells, offers to sell, or otherwise furnishes any alcoholic beverage or product to any
minor; and
(ii) negligently or recklessly fails to determine whether the recipient of the alcoholic
beverage or product is a minor.
(b) As used in this Subsection (2), "negligently" means with simple negligence.
[
sells, offers to sell, or otherwise furnishes [
[
product is a minor is guilty of a class A misdemeanor.
[
beverage or product to a minor in accordance with this title:
(a) for medicinal purposes by:
(i) the parent or guardian of the minor; or [
(ii) the minor's physician or dentist[
(b) as part of a church's or religious organization's religious services.
Section 97. Section 32A-12-204 is amended to read:
32A-12-204. Unlawful sale or furnishing to intoxicated persons.
(1) A person may not sell, offer to sell, or otherwise furnish [
beverage or product to:
(a) any person who is actually or apparently [
(b) a person whom the person furnishing the alcoholic beverage knew or should have
known from the circumstances was [
(2) (a) A person who negligently or recklessly violates Subsection (1) is guilty of a class
B misdemeanor.
(b) A person who knowingly violates Subsection (1) is guilty of a class A misdemeanor.
(3) As used in Subsection (2)(a), "negligently" means with simple negligence.
Section 98. Section 32A-12-207 is amended to read:
32A-12-207. Unlawful sale or furnishing during emergency.
[
exist in an area of the state, it is unlawful for a person to sell, offer to sell, or otherwise furnish
[
announced and directed that alcoholic products may not be sold, offered for sale, or otherwise
furnished in that area during the period of emergency.
Section 99. Section 32A-12-209 is amended to read:
32A-12-209. Unlawful purchase, possession, or consumption by minors.
(1) It is unlawful for any [
purchase, solicit another person to purchase, possess, or consume any alcoholic beverage or
product, unless specifically authorized by this title.
(2) It is unlawful for [
obtaining an alcoholic beverage or product for a minor[
(a) any minor to misrepresent the minor's age; or
(b) any other person to misrepresent the age of a minor.
(3) It is unlawful for [
consume any alcoholic beverage while riding in a limousine or chartered bus.
(4) When a person who is at least 13 years old, but younger than 18 years old, is found by
the court to have violated this section, the provisions regarding suspension of the driver's license
under Section 78-3a-506 apply to the violation.
(5) When the court has issued an order suspending a person's driving privileges for a
violation of this section, the Driver License Division shall suspend the person's license under the
provisions of Section 53-3-219 .
(6) When the Department of Public Safety receives the arrest or conviction record of a
person for a driving offense committed while [
this section, the department shall extend the suspension for an additional like period of time.
[
Section 100. Section 32A-12-210 is amended to read:
32A-12-210. Unlawful purchase by intoxicated persons.
A person may not purchase any alcoholic beverage or product when [
[
Section 101. Section 32A-12-212 is amended to read:
32A-12-212. Unlawful possession -- Exceptions.
(1) A person may not have or possess within this state any liquor unless authorized by
this title or the rules of the commission, except that:
(a) a person who clears United States Customs when entering this country may have or
possess for personal consumption and not for sale or resale, a maximum of [
of liquor purchased from without the United States; [
(b) a person who moves [
may have or possess for personal consumption and not for sale or resale, any liquor previously
purchased outside the state and brought into this state during the move, if:
(i) the person first obtains department approval prior to moving the liquor into the state;
(ii) the department affixes the official state label to the liquor; and
(iii) the person pays the department a reasonable administrative handling fee as
determined by the commission[
(c) a person who as a beneficiary inherits as part of an estate liquor that is located outside
the state, may have or possess the liquor and transport or cause the liquor to be transported into
the state if:
(i) the person first obtains department approval prior to moving the liquor into the state;
(ii) the person provides sufficient documentation to the department to establish the
person's legal right to the liquor as a beneficiary;
(iii) the department affixes the official state label to the liquor; and
(iv) the person pays the department a reasonable administrative handling fee as
determined by the commission.
(2) (a) Approval under Subsection (1)(b) may be obtained by [
person who:
(i) is transferring [
[
(ii) maintains separate residences both in and out of this state.
(b) A person may not obtain approval to transfer liquor under [
Subsection (1)(b) more than once.
Section 102. Section 32A-12-213 is amended to read:
32A-12-213. Unlawful bringing onto premises for consumption.
[
(1) Except as provided in Subsection (3), a person may not bring for on-premise
consumption any alcoholic beverage onto the premises of any:
(a) licensed or unlicensed restaurant;
(b) licensed or unlicensed private club;
(c) airport lounge licensee;
(d) on-premise banquet licensee;
(e) on-premise beer retailer licensee;
(f) event where alcoholic beverages are sold or served under a single event permit or
temporary special event beer permit issued under this title; or
(g) any establishment open to the general public.
(2) Except as provided in Subsection (3), a licensed or unlicensed restaurant or private
club, airport lounge licensee, on-premise banquet licensee, on-premise beer retailer licensee, or
holder of a single event permit or temporary special event beer permit issued under this title, or
its officers, managers, employees, or agents may not allow a person to bring onto its premises
any alcoholic beverage for on-premise consumption or allow consumption of any such alcoholic
beverage in violation of this section.
(3) (a) [
any restaurant liquor licensee, limited restaurant licensee, or private club [
consume the wine pursuant to the applicable restrictions contained in Subsection
32A-4-106 [
(b) a passenger of a limousine may bring onto, have, and consume any alcoholic
beverage on the limousine if:
(i) the travel of the limousine begins and ends at:
(A) the residence of the passenger;
(B) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
(C) the temporary domicile of the passenger; and
(ii) the driver of the limousine is separated from the passengers by partition or other
means approved by the department;
(c) a passenger of a chartered bus may bring onto, have, and consume any alcoholic
beverage on the chartered bus:
(i) (A) but may consume only during travel to a specified destination of the chartered bus
and not during travel back to the place where the travel begins; or
(B) if the travel of the chartered bus begins and ends at:
(I) the residence of the passenger;
(II) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
(III) the temporary domicile of the passenger; and
(ii) the chartered bus has a nondrinking designee other than the driver traveling on the
chartered bus to monitor consumption; and
(d) a person may bring onto any premises, have, and consume any alcoholic beverage at a
privately hosted event that is not open to the general public.
[
alcoholic beverages in limousines and chartered buses is not allowed if the limousine or
chartered bus drops off passengers at locations from which they depart in private vehicles.
[
[
Section 103. Section 32A-12-215 is amended to read:
32A-12-215. Unlawful storage.
[
to sell beer for on-premise consumption but is not licensed by the commission to sell liquor.
[
Section 104. Section 32A-12-216 is amended to read:
32A-12-216. Unlawful permitting of intoxication.
[
[
(a) any premises of which the person is the owner, tenant, or occupant[
(b) in any chartered bus or limousine of which the person is the owner or operator.
[
Section 105. Section 32A-12-218 is amended to read:
32A-12-218. Unlawful labeling or lack of label.
(1) [
unlawful for any person to possess any liquor unless [
(a) the liquor is contained in its original package; and [
(b) the package has affixed to it the official commission label and markings as required
by this title and the rules of the commission[
[
(2) Unless authorized by the department, it is unlawful for any person to be in possession
of or use an official commission label, marking, or equipment that is used by the department, a
state store, or a package agency to label or mark original liquor bottles or packages.
(3) A violation of Subsection (2) is a third degree felony.
Section 106. Section 32A-12-222 is enacted to read:
32A-12-222. Unlawful dispensing.
(1) For purposes of this section:
(a) "primary spirituous liquor" means the main distilled spirit in a beverage; and
(b) "primary spirituous liquor" does not include any secondary alcoholic product used as
flavorings in conjunction with the primary distilled spirit in the beverage.
(2) A licensee licensed under this title to sell, serve, or otherwise furnish spirituous
liquor for consumption on the licensed premises, or any officer, manager, employee, or agent of
the licensee may not:
(a) sell, serve, dispense, or otherwise furnish any primary spirituous liquor to any person
on the licensed premises except in a quantity that does not exceed one ounce per beverage
dispensed through a calibrated metered dispensing system approved by the department;
(b) sell, serve, dispense, or otherwise furnish more than a total of 1.75 ounces of
spirituous liquors as secondary flavoring ingredients per beverage;
(c) allow any person on the licensed premises to have more than two alcoholic beverages
containing spirituous liquor at a time; or
(d) allow any person on the licensed premises to have more than a total of 2.75 ounces of
spirituous liquor at a time.
(3) Any of the following or an officer, manager, employee, or agent of the following may
not allow any person on the premises of the following to have more than one spirituous liquor
beverage at a time:
(a) a restaurant liquor licensee;
(b) limited restaurant licensee;
(c) an on-premise banquet licensee; or
(d) a single event permitee.
(4) A violation of this section is a class C misdemeanor.
Section 107. Section 32A-12-301 is amended to read:
32A-12-301. Operating without a license or permit.
[
retailer outlet, or similar establishment that allows patrons, customers, members, guests, visitors,
or other persons to purchase or consume alcoholic beverages on the premises, except as provided
by this title or the rules of the commission.
[
Section 108. Section 32A-12-305 is amended to read:
32A-12-305. Obstructing an officer making a search or an official proceeding or
investigation.
(1) A person in or having charge of any premises may not refuse or fail to admit to the
premises or obstruct the entry of any member of the commission, authorized representative of the
commission or department, or any law enforcement officer who demands entry when acting
under this title.
(2) A person in or having charge of any premises may not interfere with any of the
following who is conducting an investigation under this title at the premises:
(a) a member of the commission;
(b) an authorized representative of the commission or department; or
(c) any law enforcement officer.
[
proceeding or investigation is pending or about to be instituted under this title, that person:
(a) alters, destroys, conceals, or removes any writing or record with a purpose to impair
its verity or availability in the proceeding or investigation; or
(b) makes, presents, or uses anything that the person knows to be false with a purpose to
deceive any commissioner, department official or employee, law enforcement official, or other
person who may be engaged in a proceeding or investigation under this title.
Section 109. Section 32A-12-306 is amended to read:
32A-12-306. Conflicting interests.
(1) A member of the commission, the department director, or [
department may not be directly or indirectly interested or engaged in any other business or
undertaking dealing in alcoholic products, whether as owner, part owner, partner, member of
syndicate, shareholder, agent, or employee and whether for the member's own benefit or in a
fiduciary capacity for some other person or entity.
(2) A member of the commission, the department director, or [
department may not enter into or participate in any business transaction as a partner, co-owner,
joint venturer, or shareholder with any agent, representative, employee, or officer of any supplier
of alcoholic products to the department.
(3) The following are governed by Title 67, Chapter 16, Utah Public Officers' and
Employees' Ethics Act:
(a) a member of the commission;
(b) the department director; or
(c) any employee of the department.
[
commission member, the department director, or any employee of the department as authorized
by this title.
Section 110. Section 32A-12-307 is amended to read:
32A-12-307. Interfering with suppliers.
A member of the commission, the department director, or an employee of the department
may not directly or indirectly participate in any manner, by recommendation or otherwise, in the
appointment, employment, or termination of appointment or employment of any agent,
representative, employee, or officer of any manufacturer, supplier, or importer of liquor, wine, or
heavy beer to the department except to determine qualifications for licensing under Chapter 8,
Part 5, Local Industry Representative Licenses, and to enforce compliance with this title.
Section 111. Section 32A-12-308 is amended to read:
32A-12-308. Offering or soliciting bribes or gifts.
(1) A person[
product for sale to the commission or department may not offer, make, tender, or in any way
deliver or transfer any bribe, gift as defined in Section 67-16-5 , or share of profits to:
(a) any commissioner[
(b) the department director[
(c) any department employee[
(d) any law enforcement officer responsible for the enforcement of this title.
(2) A commissioner, the department director, any department employee, [
knowingly solicit, receive, accept, take, or seek, directly or indirectly, any commission,
[
or loan whatsoever from any person, association, or corporation having sold, selling, or offering
any alcoholic product for sale.
(3) A violation of this section is [
of Section 67-16-12 .
[
Section 112. Section 32A-12-401 is amended to read:
32A-12-401. Advertising prohibited -- Exceptions.
(1) The advertising of liquor by the department is prohibited, except:
(a) the department may provide for an appropriate sign in the window or on the front of a
state store or package agency denoting that it is a state authorized liquor outlet;
(b) the department may provide printed price lists to the public; and
(c) the department may authorize the use of price posting and floor stacking of liquor
within state stores.
[
[
[
[
[
[
[
[
billboards [
(b) A package agency may not advertise alcoholic beverages on billboards except to the
extent allowed by the commission by rule.
[
showcases visible to passersby [
[
(b) A package agency may not display liquor or price lists in windows or showcases
visible to passersby except to the extent allowed by the commission by rule.
(4) Except to the extent prohibited by this title, the advertising of alcoholic beverages is
allowed under guidelines established by the commission by rule.
[
general public without charge is prohibited.
Section 113. Section 32A-12-501 is amended to read:
32A-12-501. Disposition of liquor items shipped to the department.
(1) All liquor items received by the department from suppliers[
with and subject to Subsection 32A-12-603 [
(a) a sample; or
(b) an item not specifically listed on a department purchase order.
(2) Funds of the department may not be used to pay freight or charges on samples or any
liquor items:
(a) shipped to the department by suppliers; and
(b) not listed on its purchase orders.
Section 114. Section 32A-12-504 is amended to read:
32A-12-504. Unlawful transportation.
It is unlawful for any person, including a motor carrier, or any officer, agent, or employee
of a motor carrier, [
any alcoholic product to be shipped, carried, or transported into this state, or from one place to
another within this state[
Section 115. Section 32A-12-505 is amended to read:
32A-12-505. Lawful transportation.
Nothing contained in Sections 32A-12-503 and 32A-12-504 prohibits any carrier from:
(1) transporting [
[
(2) transporting [
pursuant to a bona fide consignment of the [
state.
Section 116. Section 32A-12-601 is amended to read:
32A-12-601. Definitions.
[
(1) (a) For purposes of Section 32A-12-602 , "exclusion" is as defined in 27 C.F.R.
Sections 8.51 through 8.54.
(b) For purposes of Section 32A-12-603 , "exclusion" is as defined in 27 C.F.R. Sections
8.151 through 8.153.
[
supplier, importer, wholesaler, bottler, or warehouser and bottler, or any of its affiliates,
subsidiaries, officers, directors, partners, agents, employees, or representatives.
(b) "Industry member" does not include the commission or the department or any of its
officers or employees.
[
the commission or by local authority to allow the holder to engage in the sale of alcoholic
beverages to consumers whether for consumption on or off the premises or any of the holder's,
agents, officers, directors, shareholders, partners, or employees.
Section 117. Section 32A-12-602 is amended to read:
32A-12-602. Exclusive outlets.
(1) It is unlawful for any industry member, directly or indirectly or through an affiliate, to
require, by agreement or otherwise, that the department or a retailer purchase any alcoholic
beverage products from the industry member or the department to the exclusion in whole or in
part of any of those products sold or offered for sale by other persons.
(2) (a) Subsection (1) applies only to a transaction between:
(i) one or more industry members; and
(ii) (A) the department; or
(B) one or more retailers.
(b) Subsection (1) does not apply to a transaction between two or more industry members
including between a manufacturer and a wholesaler.
[
members through acts or threats of physical or economic harm, as well as voluntary industry
member-retailer purchase agreements.
(4) (a) Subsection (1) includes any contract or agreement, written or unwritten, that has
the effect of requiring the department or retailer to purchase alcoholic beverages from the
industry member beyond a single sales transaction.
(b) Examples of a contract described in Subsection (4)(a) include:
(i) an advertising contract between an industry member and a retailer with the express or
implied requirement of the purchase of the advertiser's products; or
(ii) a sales contract awarded on a competitive bid basis that has the effect of prohibiting
the department or retailer from purchasing from other industry members by:
(A) requiring that the retailer purchase a product or line of products exclusively from the
industry member for the period of the agreement; or
(B) requiring that the retailer purchase a specific or minimum quantity during the period
of the agreement.
(5) (a) Subsection (1) includes any contract, agreement, or other arrangement between an
industry member and a third party nonretailer that requires the department or a retailer to
purchase the industry member's products to the exclusion in whole or in part of any alcoholic
beverage products sold or offered for sale by other persons.
(b) This Subsection (5) applies whether the contract, agreement, or other arrangement
originates with the industry member or the third party.
(c) Examples of a contract, agreement, or other arrangement described in this Subsection
(5) include:
(i) a contract, agreement, or arrangement:
(A) with a third party such as a ball club or municipal or private corporation that is not a
retailer;
(B) under which the third party leases the concession rights and is able to control the
purchasing decisions of a retailer; and
(C) that requires the retailer to purchase the industry member's products to the exclusion
in whole or in part of any alcoholic beverage products sold or offered for sale by other persons;
or
(ii) a contract, agreement, or arrangement with a third party nonretailer that in return
requires a retailer to purchase the industry member's products to the exclusion in whole or in part
of any alcoholic beverage products sold or offered for sale by other persons in return for which
the third party provides a service or other thing of value such as:
(A) sponsoring radio or television broadcasting;
(B) paying for advertising; or
(C) providing other services or things of value.
Section 118. Section 32A-12-603 is amended to read:
32A-12-603. Tied house -- Prohibitions.
(1) (a) It is unlawful for any industry member, directly or indirectly or through an
affiliate, to induce[
beverages from the industry member or from the department to the exclusion in whole or in part
of any of those products sold or offered for sale by other persons[
any interest in any [
license is held by a retailer that is completely owned by the industry member[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
(b) Interest in any retail license includes any interest acquired by a corporate official,
partner, employee, or other representative of the industry member.
(c) Any interest in a retail license acquired by a separate corporation in which the
industry member or the industry member's officials hold ownership or are otherwise affiliated is
an interest in a retail license.
(d) Less than complete ownership of a retail business by an industry member constitutes
an interest in a retail license within the meaning of Subsection (1)(a).
(2) (a) It is unlawful for any industry member, directly or indirectly or through an
affiliate, to induce any retailer to purchase any alcoholic beverages from the industry member or
from the department to the exclusion in whole or in part of any of those products sold or offered
for sale by other persons by acquiring any interest in real or personal property owned, occupied,
or used by the retailer in the conduct of the retailer's business.
(b) For purposes of Subsection (2)(a):
(i) "interest" does not include complete ownership of a retail business by an industry
member;
(ii) interest in retail property includes any interest acquired by a corporate official,
partner, employee, or other representative of the industry member;
(iii) any interest in a retail license acquired by a separate corporation in which the
industry member or its officials hold ownership or are otherwise affiliated is an interest in the
retailer's property;
(iv) less than complete ownership of a retail business by an industry member constitutes
an interest in retail property;
(v) the acquisition of a mortgage on a retailer's real or personal property by an industry
member constitutes an interest in the retailer's property; and
(vi) the renting of display space by an industry member at a retail establishment
constitutes an interest in the retailer's property.
(3) (a) It is unlawful for any industry member, directly or indirectly or through an
affiliate, to induce any retailer to purchase any alcoholic beverages from the industry member or
from the department to the exclusion in whole or in part of any of those products sold or offered
for sale by other persons by furnishing, giving, renting, lending, or selling to the retailer any
equipment, fixtures, signs, supplies, money, services, or other thing of value, subject to the
exceptions enumerated in Subsection (4).
(b) (i) For purposes of this Subsection (3), indirect inducement includes:
(A) furnishing things of value to a third party where the benefits resulting from the things
of value flow to individual retailers; and
(B) making payments for advertising to a retailer association or a display company where
the resulting benefits flow to individual retailers.
(ii) Notwithstanding Subsection (3)(b)(i), an indirect inducement does not arise if:
(A) the thing of value was furnished to a retailer by the third party without the knowledge
or intent of the industry member; or
(B) the industry member did not reasonably foresee that the thing of value would have
been furnished to a retailer.
(iii) Anything that may lawfully be furnished, given, rented, lent, or sold by industry
members to retailers under Subsection (4) may be furnished directly by a third party to a retailer.
(c) (i) A transaction in which equipment is sold to a retailer by an industry member,
except as provided in Subsection (4), is the selling of equipment within the meaning of
Subsection (3)(a) regardless of how the equipment is sold.
(ii) The negotiation by an industry member of a special price to a retailer for equipment
from an equipment company is the furnishing of a thing of value within the meaning of
Subsection (3)(a).
(d) The furnishing of free warehousing by delaying delivery of alcoholic beverages
beyond the time that payment for the product is received, or if a retailer is purchasing on credit,
delaying final delivery of products beyond the close of the period of time for which credit is
lawfully extended, is the furnishing of a service or thing of value within the meaning of
Subsection (3)(a).
(e) Any financial, legal, administrative, or influential assistance given a retailer by an
industry member in the retailer's acquisition of the retailer's license is the furnishing of a service
or thing of value within the meaning of Subsection (3)(a).
(4) (a) Notwithstanding Subsection (3), things of value may be furnished by industry
members to retailers under the conditions and within the limitations prescribed in:
(i) this Subsection (4); and
(ii) the applicable federal laws cited in this Subsection (4).
(b) (i) The following may be furnished by an industry member:
(A) a product display as provided in 27 C.F.R. Sec. 6.83;
(B) point of sale advertising materials and consumer advertising specialties as provided
in 27 C.F.R. Sec. 6.84;
(C) things of value to a temporary retailer to the extent allowed in 27 C.F.R. Sec. 6.85;
(D) equipment and supplies as provided in 27 C.F.R. Sec. 6.88;
(E) combination packaging as provided in 27 C.F.R. Sec. 6.93;
(F) educational seminars as provided in 27 C.F.R. Sec. 6.94;
(G) consumer promotions as provided in 27 C.F.R. Sec. 6.96;
(H) advertising service as provided in 27 C.F.R. Sec. 6.98;
(I) stocking, rotation, and pricing service as provided in 27 C.F.R. Sec. 6.99;
(J) merchandise as provided in 27 C.F.R. Sec. 6.101; and
(K) outside signs as provided in 27 C.F.R. Sec. 6.102.
(ii) The following exceptions provided in federal law are not adopted:
(A) the exception for samples provided in 27 C.F.R. Sec. 6.91;
(B) the exception for consumer tasting or sampling at retail establishments provided in
27 C.F.R. Sec. 6.95; and
(C) the exception for participation in retailer association activities provided in 27 C.F.R.
Sec. 6.100.
(iii) To the extent required by 27 C.F.R. Sec. 6.81(b) an industry member shall keep and
maintain a record:
(A) of all items furnished to a retailer;
(B) on premises of the industry member; and
(C) for a three-year period.
(c) Samples of liquor, wine, and heavy beer may be provided to the department under the
conditions listed in this Subsection (4)(c).
[
department samples to the department for product testing, analysis, and sampling[
[
production lot of a particular branded product may be submitted to the department for department
testing, analysis, and sampling within a consecutive 120-day period.
[
[
product is only commercially packaged in a larger size, not to exceed 5 liters.
[
(I) shall be shipped prepaid by the industry member by common carrier; and [
(II) may not be shipped by United States mail directly to the department's central
administrative warehouse office.
[
[
letter from the industry member:
[
[
[
comparison control samples or to verify product spoilage as deemed appropriate.
[
billed back, debited, to [
[
[
[
[
(I) of the samples and their disposition; and
(II) for a two-year period.
[
identifying the product as a "department sample".
[
department's current stock shall be disposed of at the discretion of the department in one of the
following ways:
[
audited conditions established by the department;
[
the department; or
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department [
[
(i) Samples of beer may be provided by an industry member only to a retailer who has
not purchased the brand of beer from that industry member within the last 12 months.
[
industry member may give not more than [
particular product is not available in a size within the quantity limitation an industry member
may furnish the next largest size.
[
[
conditions[
[
(A) involving:
(I) the department [
(II) retailers[
(III) holders of educational or scientific special use permits[
(IV) other industry members; or
(V) employees of the persons listed in Subsections (4)(e)(i)(A)(I) through (IV); and
(B) regarding such topics as:
(I) merchandising and product knowledge[
(II) use of equipment; and
(III) tours of alcoholic beverage manufacturing facilities.
(ii) An industry member may not pay a department employee's, retailer's, or permittee's
expenses or compensate them for attending [
described in Subsection (4)(e)(i).
[
of the industry member's products:
(I) for the department, at the department's request[
(II) for licensed industry representatives, but only at the department's central
administrative warehouse office[
(B) The industry member may only use department[
representative samples when conducting any tasting of the industry member's products.
(iv) A beer industry member may conduct tastings of beer products for a licensed beer
retailer either at:
(A) the industry member's premises; or
(B) a retail establishment.
(v) Except to the extent authorized by commission rule, an alcoholic beverage industry
member may not conduct tasting or sampling activities with:
(A) a retailer; or
(B) a member of the general public.
[
activities[
[
[
[
[
[
[
fraternal, educational, or community activities. [
(ii) A contribution described in Subsection (4)(g)(i) may not be given to influence a
retailer in the selection of the alcoholic beverage products [
activities and events.
[
(A) the industry member's contribution described in Subsection [
influences, directly or indirectly, the retailer in the selection of alcoholic beverage products[
and
(B) a competitor's alcoholic beverage products are excluded in whole or in part from sale
at the activity or event[
[
[
[
[
[
(h) (i) An industry member may lease or furnish equipment listed in Subsection (4)(h)(ii)
to a retailer if:
(A) the equipment is leased or furnished for a special event;
(B) a reasonable rental or service fee is charged for the equipment; and
(C) the period for which the equipment is leased or furnished does not exceed 30 days.
(ii) This Subsection (4)(h) applies to the following equipment:
(A) a picnic pump;
(B) a cold plate;
(C) a tub;
(D) a keg box;
(E) a refrigerated trailer;
(F) a refrigerated van; or
(G) a refrigerated draft system.
[
department in:
(A) ordering, shipping, and delivering merchandise[
(B) new product notification[
(C) listing and delisting information[
(D) price quotations[
(E) product sales analysis[
(F) shelf management[
(G) educational seminars[
(ii) (A) Subject to Subsection (4)(i)(ii)(B), a liquor, wine, and heavy beer industry
member may, for the purpose of acquiring new listings, solicit orders from the department and
submit to the department samples of their products under Subsection (4)(c) and price lists.
[
(B) An industry member may not solicit either in person, by mail, or otherwise, any state
store personnel for the purpose or with the intent of furthering the sale of a particular brand or
brands of alcoholic beverage product as against another brand or brands.
(iii) Any visitations to a state store or package agency by an industry member shall be
confined to the customer areas of the store. Calls on the state warehouse by industry members
are to be confined to the office area only unless otherwise approved.
[
(A) ordering, shipping, and delivering beer merchandise[
(B) new product notification[
(C) listing and delisting information[
(D) price quotations[
(E) product sales analysis[
(F) shelf management[
(G) educational seminars[
(v) A beer industry member may, for the purpose of acquiring new listings[
(A) solicit orders from [
(B) submit to [
(4)(c) and price lists.
[
[
affiliate, to [
member or from the department to the exclusion in whole or in part of any of those products sold
or offered for sale by other persons by paying or crediting the retailer for any advertising, display,
or distribution service:
(a) as defined [
through 6.56[
(b) subject to the exceptions:
(i) for newspaper cuts listed in 27 C.F.R. Sec. 6.92; and
(ii) for advertising services listed in 27 C.F.R. Sec. 6.98.
[
[
[
affiliate, to [
member or from the department to the exclusion in whole or in part of any of those products sold
or offered for sale by other persons by guaranteeing any loan or the repayment of any financial
obligation of the retailer.
[
affiliate, to induce [
the exclusion in whole or in part of any beer products sold or offered for sale by other persons by
extending to any [
to the date of full legal discharge of the retailer through the payment of cash or its equivalent,
from all indebtedness arising from the transaction, so long as that beer purchased or delivered
during the first 15 days of any month is paid for in cash or its equivalent on or before the 25th
day of the same month, and beer purchased or delivered after the 15th day of any month is paid
for in cash or its equivalent on or before the 10th day of the next succeeding month.
(b) First party in-state checks [
(i) are honored on presentment; and [
(ii) received under the terms prescribed in Subsection [
(c) An extension of credit for product purchased by an industry member to a retailer
whose account is in arrears does not constitute a violation of Subsection (7)(a) if the retailer pays
in advance or on delivery an amount equal to or greater than the value of each order, regardless
of the manner in which the industry member applies the payment in its records.
[
affiliate, to [
member or from the department to the exclusion in whole or in part of any of those products sold
or offered for sale by other persons by requiring:
(i) the department to take and dispose of a certain quota of any alcoholic products; or [
(ii) a beer retailer [
products.
(b) (i) [
(A) the department to purchase one product in order to purchase another; or [
(B) a beer retailer [
another [
(ii) This Subsection (8)(b) includes:
(A) the requirement to take a minimum quantity of a product in standard packaging in
order to obtain the same product in some type of premium package such as:
(I) a distinctive decanter; or
(II) a wooden or tin box; or
(B) combination sales if one or more products may be purchased only in combination
with other products and not individually.
(c) This Subsection [
price, two or more kinds or brands of products so long as the department or beer retailer:
(i) has the option of purchasing either product at the usual price; and
(ii) is not required to purchase any product [
does not want.
(d) An industry member may package and distribute alcoholic beverages in combination
with other nonalcoholic items or products.
(e) The combination package shall be designed to be delivered intact to the consumer and
the additional cost incurred by the industry member shall be included in the cost to the
department or beer retailer.
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Section 119. Section 32A-12-604 is amended to read:
32A-12-604. Commercial bribery.
[
including beer industry members, doing business in this state 27 U.S.C. Section 205(c) and 27
C.F.R. Sections 10.1 through [
member, directly or indirectly or through an affiliate, to induce a wholesaler or retailer engaged
in the sale of alcoholic beverages[
or partial exclusion of alcoholic beverages sold or offered for sale by other persons, by
commercial bribery, or by offering or giving a bonus, premium, compensation, or other thing of
value, to any officer, employee, or representative of the wholesaler or retailer [
Section 120. Section 32A-12-605 is amended to read:
32A-12-605. Consignment sales.
(1) [
including beer industry members, doing business in this state 27 U.S.C. Section 205(d) and 27
C.F.R. Sections 11.1 through 11.46, which [
directly or indirectly or through an affiliate to sell, offer for sale, or contract to sell to any
wholesaler or retailer engaged in the sale of alcoholic beverages, or for any wholesaler or retailer
to purchase, offer to purchase, or contract to purchase any of those products on consignment or
under conditional sale or with the privilege of return or on any basis otherwise than a bona fide
sale, or where any part of the transaction involves, directly or indirectly, the acquisition by that
person from the wholesaler or retailer or [
wholesaler or retailer other alcoholic beverages, if the sale, purchase, offer, or contract is made in
the course of interstate or foreign commerce, or if the person or wholesaler or retailer engages in
such practice to an extent so as substantially to restrain or prevent transactions in interstate or
foreign commerce in any of those products or if the direct effect of the sale, purchase, offer, or
contract is to prevent, deter, hinder, or restrict other persons from selling or offering for sale any
of those products to the wholesaler or retailer in interstate or foreign commerce [
(2) This section does not apply to transactions involving solely the bona fide return of
merchandise for ordinary and usual commercial reasons arising after the merchandise has been
sold.
Section 121. Section 32A-12-606 is amended to read:
32A-12-606. Unlawful acts involving consumers.
(1) (a) It is unlawful for any industry member, directly or indirectly or through an
affiliate, to give away any of its alcoholic products to any person except for testing, analysis, and
sampling purposes by the department[
(b) This Subsection (1) does not preclude an industry member from serving its alcoholic
products to others at private social functions hosted by the industry member in the member's
home or elsewhere so long as the product is not served:
(i) as part of a promotion of [
(ii) as a subterfuge to provide samples to others for product testing, analysis, or sampling
purposes.
(2) It shall be unlawful for any industry member or retailer, directly or indirectly or
through an affiliate, to engage in any advertisement or promotional scheme that requires the
purchase or sale of an alcoholic beverage, or consumption of an alcoholic beverage in order to
participate in any promotion, program, or other activity.
(3) It shall be unlawful for any industry member or retailer, directly or indirectly or
through an affiliate, to pay, give, or deliver to any person any money or any other thing of value,
including rebates, refunds, or prizes, based upon the purchase, display, use, sale, or consumption
of alcoholic beverages.
(4) It shall be unlawful for any industry member or retailer to sponsor or underwrite any
athletic, theatrical, scholastic, artistic, or scientific event that:
[
[
[
[
institution.
Section 122. Section 32A-15a-101 is enacted to read:
32A-15a-101. Title.
This chapter is known as the "Nuisance Licensee Act."
Section 123. Section 32A-15a-102 is enacted to read:
32A-15a-102. Definitions.
(1) As used in this chapter:
(a) "Objecting governmental entity" means:
(i) a local government entity;
(ii) a prosecutor's office; or
(iii) a law enforcement agency.
(b) "Nuisance activity" means:
(i) a judicial finding that a licensed establishment is a common public nuisance under
Section 32A-13-106 ;
(ii) a single felony conviction within the last two years of:
(A) a retail licensee; or
(B) any supervisory or managerial level employee of the licensee;
(iii) a single conviction under Title 58, Chapter 37, Utah Controlled Substances Act:
(A) (I) of a retail licensee; or
(II) an employee of the licensee;
(B) within the last two years; and
(C) made on the basis of activities that occurred on the licensed premises;
(iv) three or more convictions of patrons of a retail licensee under Title 58, Chapter 37,
Utah Controlled Substances Act, if:
(A) the convictions are made on the basis of activities that occurred on the licensed
premises; and
(B) there is evidence that the licensee knew or should have known of the illegal activity;
(v) a single conviction within the last two years of a retail licensee or any employee of
the licensee that is made on the basis of:
(A) pornographic and harmful materials:
(I) that are in violation of Title 76, Chapter 10, Part 12, Pornographic and Harmful
Materials and Performances; and
(II) if the violation occurs on the licensed premises;
(B) prostitution;
(C) engaging in or permitting gambling, or having any video gaming device, as defined
and proscribed by Title 76, Chapter 10, Part 11, Gambling, on the licensed premises;
(D) a disturbance of the peace that occurs on the licensed premises; or
(E) disorderly conduct that occurs on the licensed premises; or
(vi) three or more adjudicated violations of this title within the last two years by a retail
licensee or by the retail licensee's employees that result in a criminal citation or an administrative
referral to the department relating to:
(A) the sale, service, or furnishing of alcohol to a minor;
(B) the sale, service, or furnishing of alcohol to a person actually, apparently, or
obviously intoxicated;
(C) the sale or service of alcohol after lawful sales or service hours; or
(D) acts or conduct on the licensed premises contrary to the public welfare and morals
involving lewd acts or lewd entertainment prohibited by this title.
(2) For purposes of Subsection (1)(b), "retail licensee" means:
(a) a person to whom a retail license has been issued by the commission; and
(b) in the case of a licensee that is a partnership, corporation, or limited liability company
any of the following that is convicted of any offense described in Subsection (1)(b):
(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 a
corporate licensee; or
(vii) a member who owns at least 20% of a limited liability company licensee.
Section 124. Section 32A-15a-103 is enacted to read:
32A-15a-103. Rulemaking.
In accordance with this chapter and Title 63, Chapter 46a, Utah Administrative
Rulemaking Act, the commission may make rules that govern the filing under this chapter of:
(1) a formal objection to the renewal of a retail license; and
(2) a request for hearing filed by a retail licensee.
Section 125. Section 32A-15a-201 is enacted to read:
32A-15a-201. Commission to prohibit nuisance activities by licensees -- License not
renewed.
(1) In accordance with Section 32A-1-103 , the commission shall require a retail licensee
as a condition of being licensed under this title to operate in a manner so as not to endanger the
public health, peace, safety, welfare, or morals of the community.
(2) (a) In accordance with Title 63, Chapter 46b, Administrative Procedures Act, and
Sections 32A-15a-202 and 32A-15a-203 , the commission may deny the renewal of any retail
license issued under this title if:
(i) a formal objection to the renewal is filed; and
(ii) the commission determines that the retail licensee has engaged in nuisance activities
to such an extent that the nuisance activities have adversely impacted the public health, peace,
safety, welfare, or morals of the neighboring community of the licensed premises.
(b) In making a determination under this Subsection (2), the commission may consider:
(i) the types of nuisance activities in which a licensee has engaged;
(ii) the frequency or pattern of the nuisance activities; and
(iii) the retail licensee's notice of and failure to abate or correct the nuisance activities.
Section 126. Section 32A-15a-202 is enacted to read:
32A-15a-202. Formal objections to renewal.
(1) The department shall notify governmental entities that in accordance with this part an
objecting governmental entity may file with the commission an objection to the renewal of a
retail licensee's alcoholic beverage license in the objecting governmental entity's community.
(2) The department or an objecting governmental entity may file with the commission a
formal objection to any license being renewed by the commission if the formal objection:
(a) is filed on the basis of nuisance activity;
(b) is filed no later than 60 days before the expiration date of the retail licensee's license;
and
(c) states with particularity all relevant facts and circumstances relating to the nuisance
activity that forms the basis for the formal objection.
Section 127. Section 32A-15a-203 is enacted to read:
32A-15a-203. Hearing on formal objections to renewal.
(1) Upon receipt of a formal objection that meets the requirements of Section
32A-15a-202 , the department shall:
(a) issue a notice of agency action; and
(b) serve on the retail licensee no later than 30 days before the expiration of the retail
licensee's license:
(i) the notice of agency action; and
(ii) a copy of the formal objection.
(2) (a) A retail licensee against whom a notice of agency action is served under
Subsection (1) may request a hearing.
(b) The request for hearing described in Subsection (2)(a) shall be:
(i) in writing; and
(ii) filed with the commission within ten days of the day on which the notice of agency
action is served on the retail licensee.
(c) If a retail licensee fails to file a request for hearing in accordance with this Subsection
(2), the commission may not renew the license of the retail licensee.
(3) (a) Upon receipt of a request for hearing meeting the requirements of Subsection (2),
the department shall immediately schedule a hearing that shall be:
(i) held no later than ten days before the expiration date of the retail licensee's license;
and
(ii) electronically recorded by the department.
(b) The retail licensee or an objecting governmental entity, at its own expense, may have
a reporter approved by the department prepare a transcript from the department's record of the
hearing.
(c) (i) The department shall present information at the hearing that supports a finding that
nuisance activities occurred.
(ii) The information described in Subsection (3)(c)(i) shall be made a part of the record
of the hearing.
(d) The retail licensee shall:
(i) have the opportunity to challenge or explain whether any of the nuisance activities
that form the basis for the formal objection occurred; and
(ii) be permitted to:
(A) testify;
(B) present evidence; and
(C) comment on the issues at the hearing.
(4) (a) Any hearing held under this chapter shall be conducted under the authority of the
commission.
(b) The commission is responsible for rendering a final order on whether a retail
licensee's license shall be renewed.
(c) Notwithstanding Subsections (4)(a) and (b), the commission may appoint necessary
hearing examiners to administer the hearing process.
(d) The commission or the hearing examiner appointed by the commission shall serve as
the presiding officer at a hearing held under this section.
(e) The presiding officer at a hearing held under this section:
(i) shall evaluate:
(A) the information presented at the hearing in support of the formal objection; and
(B) any explanation and evidence offered by the retail licensee; and
(ii) may consider such factors as:
(A) the length of time the retail licensee has operated the licensed premises;
(B) the condition of the premises;
(C) whether the retail licensee knew or should have known of the nuisance activities in
question;
(D) whether the retail licensee failed to:
(I) make a substantial effort to correct the nuisance activities; and
(II) work with law enforcement to curtail the nuisance activity;
(E) whether the nuisance activities have been ongoing or temporary;
(F) whether the retail licensee or the licensee's employees:
(I) initiated contact with the law enforcement agency on the nuisance activities; and
(II) cooperated with the law enforcement agency's investigation; and
(G) whether prior efforts to stop the nuisance activities by the community or the retail
licensee have been unsuccessful.
(5) An order issued under this section shall:
(a) be based on the evidence presented at the hearing; and
(b) state whether:
(i) the continued operation of the licensed establishment will endanger the public health,
peace, safety, welfare, or morals of the community; and
(ii) the license should or should not be renewed.
(6) (a) If the presiding officer is a hearing examiner appointed by the commission, the
hearing officer shall issue a signed order in writing that:
(i) complies with Subsection (5);
(ii) recommends to the commission whether the license should or should not be renewed;
(iii) states the reasons for the hearing officer's decision; and
(iv) notifies the retail licensee and the objecting governmental entity that the hearing
examiner's order will be considered by the commission at the next regularly scheduled meeting of
the commission.
(b) The department shall promptly mail a copy of the hearing examiner's order to:
(i) the retail licensee; and
(ii) any objecting governmental entity.
(c) The commission at its next regularly scheduled meeting after receipt of a hearing
examiner's order, shall decide whether to renew or not renew the license on the basis of:
(i) the record and evidence presented at the hearing; and
(ii) the hearing examiner's recommendation.
(7) (a) As an alternative to ordering in accordance with this section that a retail license
not be renewed, the commission may conditionally renew a retail license by requiring that:
(i) the licensee and the licensed premises be closely monitored during the licensing year
by:
(A) the department;
(B) local government officials; and
(C) law enforcement; and
(ii) the matter be reviewed prior to the next renewal period.
(b) The commission may conditionally renew a retail license contingent on any person
listed in Subsection (7)(b)(ii) divesting all interest in the retail licensed business if:
(i) the retail licensee is a partnership, corporation, or limited liability company; and
(ii) the formal objection filed under this section if filed solely on the basis of a felony
conviction:
(A) of:
(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 a
corporate licensee; or
(VII) a member who owns at least 20% of a limited liability company licensee; and
(B) for illegal activity that occurred off of the licensed premises.
(8) (a) In accordance with this section, the commission shall issue a written order setting
forth the commission's decision and the reason for the commission's decision.
(b) The order described in Subsection (8)(a) is considered final on the date the order
becomes effective.
(c) The department shall serve a copy of the order on the retail licensee.
(9) A licensee whose license has not been renewed by order of the commission may seek
judicial review under the procedures provided in Section 32A-1-120 .
(10) A licensee whose license is not renewed may not reapply for a license under this
title for three years from the date the license is not renewed.
Section 128. Section 63-55b-132 is enacted to read:
63-55b-132. Repeal dates -- Title 32.
Title 32A, Chapter 4, Part 4, On-Premise Banquet License is repealed July 1, 2005.
Section 129. Repealer.
This act repeals:
Section 32A-1-501, Definitions.
Section 32A-1-502, Purpose.
Section 32A-1-503, Procedures.
Section 32A-1-504, Operational restrictions.
Section 32A-4-107, Return of inventory.
Section 32A-4-207, Return of inventory.
Section 32A-5-105, Utah Nonprofit Corporation and Cooperative Association Act
applicable -- Exceptions.
Section 32A-5-108, Return of inventory.
Section 32A-12-309, Organizing for pecuniary profit.
Section 32A-12-503, Unlawful importations.
Section 63-55-232, Repeal dates, Title 32A.
Section 130. Appropriations.
(1) For fiscal year 2002-03 only, there is appropriated $325,900 from the Liquor Control
Fund to the Department of Alcoholic Beverage Control.
(2) For fiscal year 2002-03 only, there is appropriated $62,000 from the General Fund to
the Driver License Division of the Department of Public Safety.
(3) Subject to future budget constraints, as an ongoing appropriation, there is
appropriated $1,893,000 for fiscal year 2003-04 from the Liquor Control Fund to the Department
of Alcoholic Beverage Control.
(4) Subject to future budget constraints, as an ongoing appropriation, there is
appropriated $811,000 for fiscal year 2003-04 from the General Fund to the Liquor Law
Enforcement Unit of the Department of Public Safety.
Section 131. Coordination clause.
It is the intent of the Legislature that if this bill, and S.B. 66, Alcoholic Beverage
Enforcement and Treatment, both pass that:
(1) in preparing the Utah Code database for publication the Office of Legislative
Research and General Counsel modify Subsection 32A-1-115(2)(b) in S.B. 66 to read:
"(b) The account shall be funded from:
(i) amounts deposited by the state treasurer in accordance with Section 59-15-109 ;
(ii) any appropriations made to the account by the Legislature; and
(iii) interest described in Subsection (2)(c)."; and
(2) subject to future budget constraints, as an ongoing appropriation, there is
appropriated for fiscal year 2003-04 from the Liquor Control Fund $700,000 to the Alcoholic
Beverage Enforcement and Treatment Restricted Account created in the General Fund.
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