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S.B. 58

             1     

ALCOHOLIC BEVERAGE CONTROL

             2     
AMENDMENTS

             3     
2004 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: John L. Valentine

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Alcoholic Beverage Control Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    amends definition provisions;
             13          .    corrects language addressing powers and duties of the commission;
             14          .    addresses the appointment and compensation and benefits for the director;
             15          .    amends provisions related to wineries;
             16          .    modifies provisions related to restaurant liquor licensees including:
             17              .    correcting language related to a patron serving wine from the bottle; and
             18              .    modifying language related to hours of service by restaurant liquor licensees in
             19      cases of local elections;
             20          .    modifies provisions related to airport lounge liquor licenses including:
             21              .    correcting language related to the commission revoking an airport lounge liquor
             22      license; and
             23              .    correcting language related to a patron serving wine from the bottle;
             24          .    modifies the operational restrictions for a limited restaurant license;
             25          .    addresses the size of containers in which beer may be sold for on-premise
             26      consumption;
             27          .    modifies provisions related to on-premise banquet licensees including:


             28              .    defining terms;
             29              .    providing for governmental entities obtaining the license;
             30              .    addressing operational restrictions applicable to room service; and
             31              .    correcting language related to an attendee serving wine from the bottle;
             32          .    modifies provisions related to private clubs including:
             33              .    providing for revocation of a private club license if the private club does not
             34      provide notice of change of ownership or other changes to the commission;
             35              .    addressing membership procedures;
             36              .    providing rulemaking authority to the commission;
             37              .    requiring hosting of minors at a dance or concert hall if it is on the premises of a
             38      class D private club;
             39              .    amending provisions related to when a dance or concert hall permit may be
             40      suspended or revoked; and
             41              .    modifying language related to hours of service in cases of local elections and
             42      hours during which alcoholic beverages may be consumed;
             43          .    modifies provisions related to single event permits including providing for
             44      governmental entities obtaining the permit;
             45          .    modifies provisions related to brewery licenses including to whom a brewer may
             46      sell beer;
             47          .    modifies provisions related to local industry representatives including:
             48              .    modifying limitations as to whom a license may be granted; and
             49              .    modifying operational restrictions;
             50          .    modifies provisions related to on-premise beer retailer license including:
             51              .    providing for a government entity to obtain the license; and
             52              .    providing for when multiple licenses are required for a building or resort
             53      facility;
             54          .    modifies provisions related to on-premise beer retailer licenses including:
             55              .    the manner by which beer can be sold; and
             56              .    the hours during which alcoholic beverages may be consumed;
             57          .    modifies provisions related to temporary special event beer permits including
             58      providing for a government entity to obtain the permit;


             59          .    modifies provisions related to beer wholesaling licenses including modifying to
             60      whom beer may be directly sold or distributed;
             61          .    modifies when there is an inference that an alcoholic beverage is an alcoholic
             62      beverage;
             63          .    corrects a reference to a brewer in the provision governing unlawful sale or
             64      furnishing;
             65          .    modifies the provision related to unlawful dispensing;
             66          .    modifies the provision related to disposition of liquor items shipped to the
             67      department;
             68          .    corrects a citation to federal regulations;
             69          .    addresses the tied house provisions including:
             70              .    clarifying when samples are charged back to an industry member; and
             71              .    modifying provisions related to visiting a state store or package agency; and
             72          .    makes technical changes including correcting cross references.
             73      Monies Appropriated in this Bill:
             74          None
             75      Other Special Clauses:
             76          None
             77      Utah Code Sections Affected:
             78      AMENDS:
             79          32A-1-105, as last amended by Chapter 314, Laws of Utah 2003
             80          32A-1-107, as last amended by Chapter 314, Laws of Utah 2003
             81          32A-1-108, as last amended by Chapter 175, Laws of Utah 1998
             82          32A-3-106, as last amended by Chapter 314, Laws of Utah 2003
             83          32A-4-106, as last amended by Chapter 314, Laws of Utah 2003
             84          32A-4-202, as last amended by Chapter 314, Laws of Utah 2003
             85          32A-4-206, as last amended by Chapter 314, Laws of Utah 2003
             86          32A-4-307, as enacted by Chapter 314, Laws of Utah 2003
             87          32A-4-303, as enacted by Chapter 314, Laws of Utah 2003
             88          32A-4-401, as enacted by Chapter 314, Laws of Utah 2003
             89          32A-4-402, as enacted by Chapter 314, Laws of Utah 2003


             90          32A-4-406, as enacted by Chapter 314, Laws of Utah 2003
             91          32A-5-102, as last amended by Chapter 314, Laws of Utah 2003
             92          32A-5-107, as last amended by Chapter 314, Laws of Utah 2003
             93          32A-7-101, as last amended by Chapter 314, Laws of Utah 2003
             94          32A-7-102, as last amended by Chapter 314, Laws of Utah 2003
             95          32A-7-106, as last amended by Chapter 314, Laws of Utah 2003
             96          32A-8-401, as last amended by Chapters 77 and 88, Laws of Utah 1994
             97          32A-8-503, as last amended by Chapter 314, Laws of Utah 2003
             98          32A-8-505, as last amended by Chapter 314, Laws of Utah 2003
             99          32A-10-202, as last amended by Chapter 314, Laws of Utah 2003
             100          32A-10-206, as last amended by Chapter 314, Laws of Utah 2003
             101          32A-10-302, as enacted by Chapter 314, Laws of Utah 2003
             102          32A-10-306, as enacted by Chapter 314, Laws of Utah 2003
             103          32A-11-101, as last amended by Chapter 314, Laws of Utah 2003
             104          32A-11-102, as last amended by Chapter 314, Laws of Utah 2003
             105          32A-11-106, as last amended by Chapter 314, Laws of Utah 2003
             106          32A-11a-107, as enacted by Chapter 328, Laws of Utah 1998
             107          32A-12-102, as renumbered and amended by Chapter 23, Laws of Utah 1990
             108          32A-12-201, as last amended by Chapter 314, Laws of Utah 2003
             109          32A-12-213, as last amended by Chapter 314, Laws of Utah 2003
             110          32A-12-222, as enacted by Chapter 314, Laws of Utah 2003
             111          32A-12-501, as last amended by Chapter 314, Laws of Utah 2003
             112          32A-12-601, as last amended by Chapter 314, Laws of Utah 2003
             113          32A-12-603, as last amended by Chapter 314, Laws of Utah 2003
             114          41-6-44.20, as last amended by Chapter 200, Laws of Utah 2002
             115          67-22-2, as last amended by Chapter 16, Laws of Utah 2003
             116          76-10-1506, as last amended by Chapter 141, Laws of Utah 1998
             117     
             118      Be it enacted by the Legislature of the state of Utah:
             119          Section 1. Section 32A-1-105 is amended to read:
             120           32A-1-105. Definitions.


             121          As used in this title:
             122          (1) "Airport lounge" means a place of business licensed to sell alcoholic beverages, at
             123      retail, for consumption on its premises located at an international airport with a United States
             124      Customs office on [its] the premises of the international airport.
             125          (2) "Alcoholic beverages" means "beer" and "liquor" as the terms are defined in this
             126      section.
             127          (3) (a) "Alcoholic products" means all products that:
             128          (i) contain:
             129          (A) at least 63/100 of 1% of alcohol by volume; or
             130          (B) at least 1/2 of 1% by weight[,]; and
             131          (ii) are obtained by fermentation, infusion, decoction, brewing, distillation, or any other
             132      process that uses any liquid or combinations of liquids, whether drinkable or not, to create
             133      alcohol in an amount greater than the amount prescribed in [this] Subsection (3)(a)(i).
             134          (b) "Alcoholic products" does not include any of the following common items that
             135      otherwise come within the definition of alcoholic products:
             136          (i) extracts[,];
             137          (ii) vinegars[,];
             138          (iii) ciders[,];
             139          (iv) essences[,];
             140          (v) tinctures[,];
             141          (vi) food preparations[,]; or
             142          (vii) over-the-counter drugs and medicines [that otherwise come within this definition].
             143          [(4) "Banquet" means an event:]
             144          [(a) for which there is a contract:]
             145          [(i) between any person and a person listed in Subsection (4)(b); and]
             146          [(ii) under which a person listed in Subsection (4)(b) is required to provide alcoholic
             147      beverages at the event;]
             148          [(b) held at one or more designated locations approved by the commission in or on the
             149      premises of a:]
             150          [(i) hotel;]
             151          [(ii) resort facility;]


             152          [(iii) sports center; or]
             153          [(iv) convention center; and]
             154          [(c) at which food and alcoholic beverages may be sold and served.]
             155          [(5)] (4) "Bar" means a counter or similar structure:
             156          (a) at which alcoholic beverages are:
             157          (i) stored; or
             158          (ii) dispensed; or
             159          (b) from which alcoholic beverages are served.
             160          [(6)] (5) (a) "Beer" means any product that contains:
             161          (i) 63/100 of 1% of alcohol by volume or 1/2 of 1% of alcohol by weight, but not more
             162      than 4% of alcohol by volume or 3.2% by weight; and
             163          (ii) is obtained by fermentation, infusion, or decoction of any malted grain.
             164          (b) Beer may or may not contain hops or other vegetable products.
             165          (c) Beer includes a product that:
             166          (i) contains alcohol in the percentages described in Subsection [(6)] (5)(a); and
             167          (ii) is referred to as:
             168          (A) malt liquor;
             169          (B) malted beverages; or
             170          (C) malt coolers.
             171          [(7)] (6) (a) "Beer retailer" means any business establishment that is:
             172          (i) engaged, primarily or incidentally, in the retail sale of beer to public patrons,
             173      whether for consumption on or off the establishment's premises; and
             174          (ii) licensed to sell beer by:
             175          (A) the commission;
             176          (B) a local authority; or
             177          (C) both the commission and a local authority.
             178          (b) (i) "On-premise beer retailer" means any beer retailer engaged, primarily or
             179      incidentally, in the sale of beer to public patrons for consumption on the beer retailer's
             180      premises.
             181          (ii) "On-premise beer retailer" includes a tavern.
             182          [(8)] (7) "Billboard" means any public display used to advertise including:


             183          (a) a light device;
             184          (b) a painting;
             185          (c) a drawing;
             186          (d) a poster;
             187          (e) a sign;
             188          (f) a signboard; or
             189          (g) a scoreboard.
             190          [(9)] (8) "Brewer" means any person engaged in manufacturing beer.
             191          [(10)] (9) "Cash bar" means the service of alcoholic beverages:
             192          (a) at:
             193          (i) a banquet; or
             194          (ii) a temporary event for which a permit is issued under this title; and
             195          (b) if an attendee at the banquet or [special] temporary event is charged for the
             196      alcoholic beverage.
             197          [(11)] (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle
             198      provided by a bus company to a group of persons pursuant to a common purpose[,]:
             199          (a) under a single contract[, and];
             200          (b) at a fixed charge in accordance with the bus company's tariff[,]; and
             201          (c) for the purpose of giving the group of persons the exclusive use of the bus and a
             202      driver to travel together to a specified destination or destinations.
             203          [(12)] (11) "Church" means a building:
             204          (a) set apart for the purpose of worship;
             205          (b) in which religious services are held;
             206          (c) with which clergy is associated; and
             207          (d) which is tax exempt under the laws of this state.
             208          [(13)] (12) "Club" and "private club" means any of the following organized primarily
             209      for the benefit of its members:
             210          (a) a social club;
             211          (b) a recreational association;
             212          (c) a fraternal association;
             213          (d) an athletic association; or


             214          (e) a kindred association.
             215          [(14)] (13) "Commission" means the Alcoholic Beverage Control Commission.
             216          [(15) "Convention center" is as defined by rule by the commission.]
             217          [(16)] (14) "Department" means the Department of Alcoholic Beverage Control.
             218          [(17)] (15) "Distressed merchandise" means any alcoholic beverage in the possession
             219      of the department that is saleable, but for some reason is unappealing to the public.
             220          [(18)] (16) "General food store" means any business establishment primarily engaged
             221      in selling food and grocery supplies to public patrons for off-premise consumption.
             222          [(19)] (17) "Guest" means a person accompanied by an active member or visitor of a
             223      club who enjoys only those privileges derived from the host for the duration of the visit to the
             224      club.
             225          [(20)] (18) (a) "Heavy beer" means any product that:
             226          (i) contains more than 4% alcohol by volume; and
             227          (ii) is obtained by fermentation, infusion, or decoction of any malted grain.
             228          (b) "Heavy beer" is considered "liquor" for the purposes of this title.
             229          [(21)] (19) "Hosted bar" means the service of alcoholic beverages:
             230          (a) without charge; and
             231          (b) at a:
             232          (i) banquet; or
             233          (ii) privately hosted event.
             234          [(22) "Hotel" is as defined by rule by the commission.]
             235          [(23)] (20) "Identification card" means the identification card issued under Title 53,
             236      Chapter 3, Part 8, Identification Card Act.
             237          [(24)] (21) "Interdicted person" means a person to whom the sale, gift, or provision of
             238      an alcoholic beverage is prohibited by:
             239          (a) law; or
             240          (b) court order.
             241          [(25)] (22) "Intoxicated" means that to a degree that is unlawful under Section
             242      76-9-701 a person is under the influence of:
             243          (a) an alcoholic beverage;
             244          (b) a controlled substance;


             245          (c) a substance having the property of releasing toxic vapors; or
             246          (d) a combination of Subsections [(25)] (22)(a) through (c).
             247          [(26)] (23) "Licensee" means any person issued a license by the commission to sell,
             248      manufacture, store, or allow consumption of alcoholic beverages on premises owned or
             249      controlled by the person.
             250          [(27)] (24) "Limousine" means any motor vehicle licensed by the state or a local
             251      authority, other than a bus or taxicab:
             252          (a) in which the driver and passengers are separated by a partition, glass, or other
             253      barrier; and
             254          (b) that is provided by a company to an individual or individuals at a fixed charge in
             255      accordance with the company's tariff for the purpose of giving the individual or individuals the
             256      exclusive use of the limousine and a driver to travel to a specified destination or destinations.
             257          [(28)] (25) (a) "Liquor" means alcohol, or any alcoholic, spirituous, vinous, fermented,
             258      malt, or other liquid, or combination of liquids, a part of which is spirituous, vinous, or
             259      fermented, and all other drinks, or drinkable liquids that contain more than 1/2 of 1% of
             260      alcohol by volume and is suitable to use for beverage purposes.
             261          (b) "Liquor" does not include any beverage defined as a beer, malt liquor, or malted
             262      beverage that has an alcohol content of less than 4% alcohol by volume.
             263          [(29)] (26) "Local authority" means:
             264          (a) the governing body of the county if the premises are located in an unincorporated
             265      area of a county; or
             266          (b) the governing body of the city or town if the premises are located in an incorporated
             267      city or a town.
             268          [(30)] (27) "Manufacture" means to distill, brew, rectify, mix, compound, process,
             269      ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
             270      others.
             271          [(31)] (28) "Member" means a person who, after paying regular dues, has full
             272      privileges of a club under this title.
             273          [(32)] (29) "Minor" means any person under the age of 21 years.
             274          [(33)] (30) "Outlet" means a location other than a state store or package agency where
             275      alcoholic beverages are sold pursuant to a license issued by the commission.


             276          [(34)] (31) "Package" means any of the following containing liquor:
             277          (a) a container[,];
             278          (b) a bottle[,];
             279          (c) a vessel[,]; or
             280          (d) other receptacle [containing liquor].
             281          [(35)] (32) "Package agency" means a retail liquor location operated under a
             282      contractual agreement with the department, by a person other than the state, who is authorized
             283      by the commission to sell package liquor for consumption off the premises of the agency.
             284          [(36)] (33) "Package agent" means any person permitted by the commission to operate
             285      a package agency pursuant to a contractual agreement with the department to sell liquor from
             286      premises that the package agent shall provide and maintain.
             287          [(37)] (34) "Permittee" means any person issued a permit by the commission to
             288      perform acts or exercise privileges as specifically granted in the permit.
             289          [(38)] (35) "Person" means any individual, partnership, firm, corporation, limited
             290      liability company, association, business trust, or other form of business enterprise, including a
             291      receiver or trustee, and the plural as well as the singular number, unless the intent to give a
             292      more limited meaning is disclosed by the context.
             293          [(39) "Policy" means a statement of principles established by the commission to guide
             294      the administration of this title and the management of the affairs of the department.]
             295          [(40)] (36) "Premises" means any building, enclosure, room, or equipment used in
             296      connection with the sale, storage, service, manufacture, distribution, or consumption of
             297      alcoholic products, unless otherwise defined in this title or in the rules adopted by the
             298      commission.
             299          [(41)] (37) "Prescription" means a writing in legal form, signed by a physician or
             300      dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
             301          [(42)] (38) (a) "Privately hosted event" or "private social function" means a specific
             302      social, business, or recreational event for which an entire room, area, or hall has been leased or
             303      rented, in advance by an identified group, and the event or function is limited in attendance to
             304      people who have been specifically designated and their guests.
             305          (b) "Privately hosted event" and "private social function" does not include events or
             306      functions to which the general public is invited, whether for an admission fee or not.


             307          [(43)] (39) "Proof of age" means:
             308          (a) an identification card;
             309          (b) an identification that:
             310          (i) is substantially similar to an identification card;
             311          (ii) is issued in accordance with the laws of a state other than Utah in which the
             312      identification is issued;
             313          (iii) includes date of birth; and
             314          (iv) has a picture affixed;
             315          (c) a valid driver license certificate that:
             316          (i) includes date of birth;
             317          (ii) has a picture affixed; and
             318          (iii) is issued:
             319          (A) under Title 53, Chapter 3, Uniform Driver License Act; or
             320          (B) in accordance with the laws of the state in which it is issued;
             321          (d) a military identification card that:
             322          (i) includes date of birth; and
             323          (ii) has a picture affixed; or
             324          (e) a valid passport.
             325          [(44)] (40) (a) "Public building" means any building or permanent structure owned or
             326      leased by the state, a county, or local government entity that is used for:
             327          (i) public education;
             328          (ii) transacting public business; or
             329          (iii) regularly conducting government activities.
             330          (b) "Public building" does not mean or refer to any building owned by the state or a
             331      county or local government entity when the building is used by anyone, in whole or in part, for
             332      proprietary functions.
             333          [(45)] (41) "Representative" means an individual who is compensated by salary,
             334      commission, or any other means for representing and selling the alcoholic beverage products of
             335      a manufacturer, supplier, or importer of liquor, wine, or heavy beer.
             336          [(46)] (42) "Residence" means the person's principal place of abode within Utah.
             337          [(47) "Resort facility" is as defined by rule by the commission.]


             338          [(48)] (43) "Restaurant" means any business establishment:
             339          (a) where a variety of foods is prepared and complete meals are served to the general
             340      public;
             341          (b) located on a premises having adequate culinary fixtures for food preparation and
             342      dining accommodations; and
             343          (c) that is engaged primarily in serving meals to the general public.
             344          [(49)] (44) "Retailer" means any person engaged in the sale or distribution of alcoholic
             345      beverages to the consumer.
             346          [(50) "Room service" includes service of alcoholic beverages to a guest room of a:]
             347          [(a) hotel; or]
             348          [(b) resort facility.]
             349          [(51) (a) (i) "Rule" means a general statement adopted by the commission:]
             350          [(A) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act;
             351      and]
             352          [(B) (I) to guide the activities of those regulated or employed by the department;]
             353          [(II) to implement or interpret this title; o]r
             354          [(III) to describe the organization, procedure, or practice requirements of the
             355      department in order to carry out the intent of the law and ensure its uniform application. ]
             356          [(ii) "Rule" includes any amendment or repeal of a prior rule.]
             357          [(b) "Rule" does not include a rule concerning only the internal management of the
             358      department that does not affect private rights or procedures available to the public, including
             359      intradepartmental memoranda.]
             360          [(52)] (45) (a) "Sample" includes:
             361          (i) a department sample; and
             362          (ii) an industry representative sample.
             363          (b) "Department sample" means liquor, wine, and heavy beer that has been placed in
             364      the possession of the department for testing, analysis, and sampling.
             365          (c) "Industry representative sample" means liquor, wine, and heavy beer that has been
             366      placed in the possession of the department for testing, analysis, and sampling by local industry
             367      representatives on the premises of the department to educate [themselves] the local industry
             368      representatives of the quality and characteristics of the product.


             369          [(53)] (46) (a) "School" means any building used primarily for the general education of
             370      minors.
             371          (b) "School" does not include:
             372          (i) a nursery school;
             373          (ii) an infant day care center; or
             374          (iii) a trade or technical school.
             375          [(54)] (47) "Sell," "sale," and "to sell" means any transaction, exchange, or barter
             376      whereby, for any consideration, an alcoholic beverage is either directly or indirectly transferred,
             377      solicited, ordered, delivered for value, or by any means or under any pretext is promised or
             378      obtained, whether done by a person as a principal, proprietor, or as an agent, servant, or
             379      employee, unless otherwise defined in this title or the rules made by the commission.
             380          [(55)] (48) "Small brewer" means a brewer who manufactures less than 60,000 barrels
             381      of beer and heavy beer per year.
             382          [(56)] (49) (a) "Spirituous liquor" means liquor that is distilled.
             383          (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
             384      U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
             385          [(57) "Sports center" is as defined by rule by the commission.]
             386          [(58)] (50) (a) "State label" means the official label designated by the commission
             387      affixed to all liquor containers sold in the state.
             388          (b) "State label" includes the department identification mark and inventory control
             389      number.
             390          [(59)] (51) (a) "State store" means a facility for the sale of package liquor:
             391          (i) located on premises owned or leased by the state; and
             392          (ii) operated by state employees.
             393          (b) "State store" does not apply to any:
             394          (i) licensee;
             395          (ii) permittee; or
             396          (iii) package agency.
             397          [(60)] (52) "Supplier" means any person selling alcoholic beverages to the department.
             398          [(61)] (53) (a) "Tavern" means any business establishment that is:
             399          (i) engaged primarily in the retail sale of beer to public patrons for consumption on the


             400      establishment's premises; and
             401          (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
             402          (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
             403      revenue of the sale of food, although food need not be sold in the establishment:
             404          (i) a beer bar;
             405          (ii) a parlor;
             406          (iii) a lounge;
             407          (iv) a cabaret; or
             408          (v) a nightclub.
             409          [(62)] (54) "Temporary domicile" means the principal place of abode within Utah of a
             410      person who does not have a present intention to continue residency within Utah permanently or
             411      indefinitely.
             412          [(63)] (55) "Unsaleable liquor merchandise" means merchandise that:
             413          (a) is unsaleable because the merchandise is:
             414          (i) unlabeled[,];
             415          (ii) leaky[,];
             416          (iii) damaged[,];
             417          (iv) difficult to open[,]; or
             418          (v) partly filled;
             419          (b) is in a container:
             420          (i) having faded labels or defective caps or corks;
             421          (ii) in which the contents are:
             422          (A) cloudy[,];
             423          (B) spoiled[,]; or
             424          (C) chemically determined to be impure; or
             425          (iii) that contains:
             426          (A) sediment; or
             427          (B) any foreign substance; or
             428          (c) is otherwise considered by the department as unfit for sale.
             429          [(64)] (56) "Visitor" means an individual that in accordance with Section 32A-5-107
             430      holds limited privileges in a private club by virtue of a visitor card.


             431          [(65)] (57) "Warehouser" means any person, other than a licensed manufacturer,
             432      engaged in the importation for sale, storage, or distribution of liquor regardless of amount.
             433          [(66)] (58) "Wholesaler" means any person engaged in the importation for sale, or in
             434      the sale of beer in wholesale or jobbing quantities to retailers, other than a small brewer selling
             435      beer manufactured by that brewer.
             436          [(67)] (59) (a) "Wine" means any alcoholic beverage obtained by the fermentation of
             437      the natural sugar content of fruits, plants, honey, or milk, or any other like substance, whether
             438      or not other ingredients are added.
             439          (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
             440      provided in this title.
             441          Section 2. Section 32A-1-107 is amended to read:
             442           32A-1-107. Powers and duties of the commission.
             443          (1) The commission shall:
             444          (a) act as a general policymaking body on the subject of alcoholic product control;
             445          (b) adopt and issue policies, directives, rules, and procedures;
             446          (c) set policy by written rules that establish criteria and procedures for:
             447          (i) granting, denying, suspending, or revoking permits, licenses, and package agencies;
             448          (ii) controlling liquor merchandise inventory including:
             449          (A) listing and delisting products;
             450          (B) the procedures for testing new products;
             451          (C) purchasing policy;
             452          (D) turnover requirements for regularly coded products to be continued; and
             453          (E) the disposition of discontinued, distressed, or unsaleable merchandise; and
             454          (iii) determining the location of state stores, package agencies, and outlets;
             455          (d) decide within the limits and under the conditions imposed by this title, the number
             456      and location of state stores, package agencies, and outlets established in the state;
             457          (e) issue, grant, deny, suspend, revoke, or not [review] renew the following permits,
             458      licenses, and package agencies for the purchase, sale, storage, service, manufacture,
             459      distribution, and consumption of alcoholic products:
             460          (i) package agencies;
             461          (ii) restaurant licenses;


             462          (iii) airport lounge licenses;
             463          (iv) limited restaurant licenses;
             464          (v) beginning on July 1, 2003 and ending June 30, 2005, on-premise banquet licenses;
             465          (vi) private club licenses;
             466          (vii) on-premise beer retailer licenses;
             467          (viii) temporary special event beer permits;
             468          (ix) special use permits;
             469          (x) single event permits;
             470          (xi) manufacturing licenses;
             471          (xii) liquor warehousing licenses; and
             472          (xiii) beer wholesaling licenses;
             473          (f) fix prices at which liquors are sold that are the same at all state stores, package
             474      agencies, and outlets;
             475          (g) issue and distribute price lists showing the price to be paid by purchasers for each
             476      class, variety, or brand of liquor kept for sale by the department;
             477          (h) (i) require the director to follow sound management principles; and
             478          (ii) require periodic reporting from the director to ensure that [these]:
             479          (A) sound management principles are being followed; and [that]
             480          (B) policies established by the commission are being observed;
             481          (i) receive, consider, and act in a timely manner upon all reports, recommendations,
             482      and matters submitted by the director to the commission, and do all things necessary to support
             483      the department in properly performing [its] the department's duties and responsibilities;
             484          (j) obtain temporarily and for special purposes the services of experts and persons
             485      engaged in the practice of a profession or who possess any needed skills, talents, or abilities if:
             486          (i) considered expedient; and [if]
             487          (ii) approved by the governor;
             488          (k) prescribe the duties of departmental officials authorized to issue permits and
             489      licenses under this title;
             490          (l) prescribe, consistent with this title, the fees payable for permits, licenses, and
             491      package agencies issued under this title, or for anything done or permitted to be done under this
             492      title;


             493          (m) prescribe the conduct, management, and equipment of any premises upon which
             494      alcoholic beverages may be sold, consumed, served, or stored;
             495          (n) make rules governing the credit terms of beer sales to retailers within the state; and
             496          (o) require that each state store, package agency, licensee, and permittee, where
             497      required in this title, display in a prominent place a sign in large letters stating: "Warning:
             498      Driving under the influence of alcohol or drugs is a serious crime that is prosecuted
             499      aggressively in Utah."
             500          (2) The power of the commission to establish state stores, to create package agencies
             501      and grant authority to operate package agencies, and to grant or deny licenses and permits is
             502      plenary, except as otherwise provided by this title, and is not subject to review.
             503          (3) The commission may appoint qualified hearing officers to conduct any suspension
             504      or revocation hearings required by law.
             505          (4) (a) In any case where the commission is given the power to suspend any license or
             506      permit, [it] the commission may impose a fine in addition to or in lieu of suspension.
             507          (b) Fines imposed may not exceed $25,000 in the aggregate for any single Notice of
             508      Agency Action.
             509          [(b)] (c) The commission shall promulgate, by rule, a schedule setting forth a range of
             510      fines for each violation.
             511          Section 3. Section 32A-1-108 is amended to read:
             512           32A-1-108. Director of alcoholic beverage control -- Qualifications -- Oath and
             513      bond -- Compensation -- Accountable to commission -- Removal from office.
             514          (1) (a) The commission by [unanimous] a vote of four of the five commissioners, with
             515      the approval of the governor, shall appoint a director of alcoholic beverage control who is the
             516      administrative head of the department.
             517          (b) The director may not be a member of the commission.
             518          (c) The director shall be qualified in administration and knowledgeable by experience
             519      and training in the field of business management and shall possess any other qualifications
             520      prescribed by the commission.
             521          (2) (a) The director shall qualify by:
             522          (i) taking the oath of office; and
             523          (ii) giving a bond for the faithful performance of the director's duties in an amount


             524      determined by the Division of Finance and in form approved by the attorney general.
             525          (b) The bond premium for the bond required by Subsection (2)(a) shall be paid by the
             526      state.
             527          (3) The director's compensation shall be established by the governor within the salary
             528      range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
             529          (4) The director shall:
             530          (a) carry out the policies of the commission and those of the department;
             531          (b) keep the commission fully informed of all operations and administrative activities
             532      of the department; and
             533          (c) assist the commission in the proper discharge of its duties and responsibilities.
             534          (5) (a) The director may be removed from office for cause by a majority vote of the
             535      commission after a public hearing before the full commission.
             536          (b) The director shall receive written notice of:
             537          (i) the date, time, and place of the hearing; and
             538          (ii) the alleged grounds for removal at least ten days before the hearing.
             539          (c) The director shall be afforded the opportunity to:
             540          (i) attend the hearing;
             541          (ii) present witnesses and other evidence; and
             542          (iii) confront and cross examine witnesses.
             543          (d) Following the hearing, written findings of fact, conclusions of law, and the final
             544      order of the commission shall be issued and served upon the director.
             545          Section 4. Section 32A-3-106 is amended to read:
             546           32A-3-106. Operational restrictions.
             547          (1) (a) A package agency may not be operated until a package agency agreement has
             548      been entered into by the package agent and the department.
             549          (b) The agreement shall state the conditions of operation by which the package agent
             550      and the department are bound.
             551          (c) If the package agent violates the conditions, terms, or covenants contained in the
             552      agreement, or violates any provisions of this title, the department may take whatever action
             553      against the agent that is allowed by the package agency agreement.
             554          (d) Actions against the package agent are governed solely by the agreement and may


             555      include suspension or revocation of the agency.
             556          (2) (a) A package agency may not purchase liquor from any person except from the
             557      department.
             558          (b) At the discretion of the department, liquor may be provided by the department to a
             559      package agency for sale on consignment.
             560          (3) The department may pay or otherwise remunerate a package agent on any basis
             561      including sales or volume of business done by the agency.
             562          (4) Liquor may not be sold from any package agency except in a sealed package. The
             563      package may not be opened on the premises of a package agency.
             564          (5) All liquor sold shall be in packages that are properly marked and labeled in
             565      accordance with the rules adopted under this title.
             566          (6) A package agency may not display liquor or price lists in windows or showcases
             567      visible to passersby.
             568          (7) (a) An officer, agent, clerk, or employee of a package agency may not consume or
             569      allow to be consumed by any person any alcoholic beverage on the premises of a package
             570      agency.
             571          (b) Violation of this Subsection (7) is a class B misdemeanor.
             572          (8) Liquor may not be sold except at prices fixed by the commission.
             573          (9) Liquor may not be sold, delivered, or furnished to any:
             574          (a) minor;
             575          (b) person actually, apparently, or obviously intoxicated;
             576          (c) known habitual drunkard; or
             577          (d) known interdicted person.
             578          (10) (a) [Sale] Subject to Subsection (10)(b), sale or delivery of liquor may not be
             579      made on or from the premises of any package agency nor may any package agency be kept
             580      open for the sale of liquor:
             581          [(a)] (i) on Sunday;
             582          [(b)] (ii) on any state or federal legal holiday;
             583          [(c)] (iii) on any day on which any regular general election, regular primary election, or
             584      statewide special election is held until after the polls are closed;
             585          [(d)] (iv) on any day on which any municipal, special district, or school election is held


             586      until after the polls are closed, but only within the boundaries of the municipality, special
             587      district, or school district holding the election and only if the municipality, special district, or
             588      school district in which the election is being held notifies the department at least 30 days prior
             589      to the date of the election; or
             590          [(e)] (v) except on days and during hours as the commission may direct by rule or
             591      order.
             592          (b) The restrictions in Subsections (10)(a)(i) and (ii) govern unless:
             593          (i) the package agency is located at a winery licensed under Chapter 8, Manufacturing
             594      Licenses;
             595          (ii) the winery licensed under Chapter 8, Manufacturing Licenses, holds:
             596          (A) a restaurant liquor license under Chapter 4, Part 1, Restaurant Liquor Licenses; or
             597          (B) a limited restaurant license under Chapter 4, Part 3, Limited Restaurant Licenses;
             598          (iii) the restaurant described in Subsection (10)(b)(ii) is located at the winery;
             599          (iv) the restaurant described in Subsection (10)(b)(ii) sells wines produced at the
             600      winery;
             601          (v) the winery described in Subsection (10)(b)(i):
             602          (A) manages the restaurant;
             603          (B) operates and owns the restaurant; or
             604          (C) leases the restaurant;
             605          (vi) the package agency only sells wine produced at the winery; and
             606          (vii) the package agency's days and hours of sale are the same as the days and hours of
             607      sale at the restaurant described in Subsection (10)(b)(ii).
             608          (11) The package agency certificate issued by the commission shall be permanently
             609      posted in a conspicuous place in the package agency.
             610          (12) Each package agent shall display in a prominent place in the package agency a
             611      sign in large letters stating: "Warning: Driving under the influence of alcohol or drugs is a
             612      serious crime that is prosecuted aggressively in Utah."
             613          (13) (a) A package agency may not close or cease operation for a period longer than 72
             614      hours, unless:
             615          (i) the package agency notifies the department in writing at least seven days before the
             616      closing; and


             617          (ii) the closure or cessation of operation is first approved by the department.
             618          (b) Notwithstanding Subsection (13)(a), in the case of emergency closure, immediate
             619      notice of closure shall be made to the department by telephone.
             620          (c) (i) The department may authorize a closure or cessation of operation for a period
             621      not to exceed 60 days.
             622          (ii) The department may extend the initial period an additional 30 days upon written
             623      request of the package agency and upon a showing of good cause.
             624          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             625      commission approval.
             626          (d) The notice required by Subsection (13)(a) shall include:
             627          (i) the dates of closure or cessation of operation;
             628          (ii) the reason for the closure or cessation of operation; and
             629          (iii) the date on which the agency will reopen or resume operation.
             630          (e) Failure of the agency to provide notice and to obtain department authorization prior
             631      to closure or cessation of operation shall result in an automatic termination of the package
             632      agency contract effective immediately.
             633          (f) Failure of the agency to reopen or resume operation by the approved date shall
             634      result in an automatic termination of the package agency contract effective on that date.
             635          (14) Liquor may not be stored or sold in any place other than as designated in the
             636      package agent's application, unless the package agent first applies for and receives approval
             637      from the department for a change of location within the package agency premises.
             638          (15) A package agency may not transfer its operations from one location to another
             639      without prior written approval of the commission.
             640          (16) (a) A person, having been granted a package agency, may not sell, transfer, assign,
             641      exchange, barter, give, or attempt in any way to dispose of the package agency to any other
             642      person, whether for monetary gain or not.
             643          (b) A package agency has no monetary value for the purpose of any type of disposition.
             644          Section 5. Section 32A-4-106 is amended to read:
             645           32A-4-106. Operational restrictions.
             646          Each person granted a restaurant liquor license and the employees and management
             647      personnel of the restaurant shall comply with the following conditions and requirements.


             648      Failure to comply may result in a suspension or revocation of the license or other disciplinary
             649      action taken against individual employees or management personnel.
             650          (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from state
             651      stores or package agencies.
             652          (b) Liquor purchased may be transported by the restaurant liquor licensee from the
             653      place of purchase to the licensed premises.
             654          (c) Payment for liquor shall be made in accordance with rules established by the
             655      commission.
             656          (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in a
             657      quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             658      dispensing system approved by the department in accordance with commission rules adopted
             659      under this title, except that:
             660          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             661      system if used as a secondary flavoring ingredient in a beverage subject to the following
             662      restrictions:
             663          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             664      a primary spirituous liquor;
             665          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             666          (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
             667      on the floor plan provided to the department; and
             668          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             669          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             670      system if used:
             671          (i) as a flavoring on desserts; and
             672          (ii) in the preparation of flaming food dishes, drinks, and desserts;
             673          (c) each restaurant patron may have no more than 2.75 ounces of spirituous liquor at a
             674      time; and
             675          (d) each restaurant patron may have no more than one spirituous liquor drink at a time
             676      before the patron.
             677          (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
             678      exceed five ounces per glass or individual portion.


             679          (ii) An individual portion of wine may be served to a patron in more than one glass as
             680      long as the total amount of wine does not exceed five ounces.
             681          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             682      Subsection (7)(e).
             683          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             684      fixed by the commission to tables of four or more persons.
             685          (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
             686      the commission to tables of less than four persons.
             687          (c) A wine service may be performed and a service charge assessed by the restaurant as
             688      authorized by commission rule for wine purchased at the restaurant.
             689          (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
             690      fixed by the commission.
             691          (b) A service charge may be assessed by the restaurant as authorized by commission
             692      rule for heavy beer purchased at the restaurant.
             693          (5) (a) (i) [A] Subject to Subsection (5)(a)(ii), a restaurant licensed to sell liquor may
             694      sell beer [in any size container not exceeding two liters, and on draft] for on-premise
             695      consumption [without obtaining a separate on-premise beer retailer license from the
             696      commission.]:
             697          (A) in an open container; and
             698          (B) on draft.
             699          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             700      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             701      container that exceeds one liter.
             702          (b) A restaurant licensed under this chapter that sells beer pursuant to Subsection (5)(a):
             703          (i) may do so without obtaining a separate on-premise beer retailer license from the
             704      commission; and
             705          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             706      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             707      inconsistent with or less restrictive than the operational restrictions under this part.
             708          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             709      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the


             710      restaurant's:
             711          (i) state liquor license; and
             712          (ii) alcoholic beverage license issued by the local authority.
             713          (6) Alcoholic beverages may not be stored, served, or sold in any place other than as
             714      designated in the licensee's application, unless the licensee first applies for and receives
             715      approval from the department for a change of location within the restaurant.
             716          (7) (a) (i) A patron may only make alcoholic beverage purchases in the restaurant from
             717      and be served by a person employed, designated, and trained by the licensee to sell and serve
             718      alcoholic beverages.
             719          (ii) Notwithstanding Subsection (7)(a)(i), a patron who has purchased bottled wine
             720      from an employee of the restaurant or has carried bottled wine onto the premises of the
             721      restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to
             722      [themselves] the patron or others at the patron's table.
             723          (b) Alcoholic beverages shall be delivered by a server to the patron.
             724          (c) Any alcoholic beverage may only be consumed at the patron's table or counter.
             725          (d) Alcoholic beverages may not be served to or consumed by a patron at a bar.
             726          (e) Each restaurant patron may have no more than two alcoholic beverages of any kind
             727      at a time before the patron, subject to the limitation in Subsection (2)[(a)](d).
             728          (8) The liquor storage area shall remain locked at all times other than those hours and
             729      days when liquor sales are authorized by law.
             730          (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             731      restaurant during the following days or hours:
             732          (i) until after the polls are closed on the day of any:
             733          (A) regular general election;
             734          (B) regular primary election; or
             735          (C) statewide special election;
             736          (ii) until after the polls are closed on the day of any municipal, special district, or
             737      school election, but only:
             738          (A) within the boundaries of the municipality, special district, or school district; and
             739          (B) if [closure is] required by local ordinance; and
             740          (iii) on any other day after 12 midnight and before 12 noon.


             741          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             742      Licenses, for on-premise beer licensees.
             743          (10) Alcoholic beverages may not be sold except in connection with an order for food
             744      prepared, sold, and served at the restaurant.
             745          (11) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             746          (a) minor;
             747          (b) person actually, apparently, or obviously intoxicated;
             748          (c) known habitual drunkard; or
             749          (d) known interdicted person.
             750          (12) (a) (i) Liquor may be sold only at prices fixed by the commission.
             751          (ii) Liquor may not be sold at discount prices on any date or at any time.
             752          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             753      beverage to the licensee.
             754          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             755      over consumption or intoxication.
             756          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             757      hours of the restaurant's business day such as a "happy hour."
             758          (e) The sale or service of more than one alcoholic beverage for the price of a single
             759      alcoholic beverage is prohibited.
             760          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
             761      during any set period for a fixed price is prohibited.
             762          (g) A restaurant licensee may not engage in a public promotion involving or offering
             763      free alcoholic beverages to the general public.
             764          (13) Alcoholic beverages may not be purchased for a patron of a restaurant by:
             765          (a) the licensee[,]; or
             766          (b) any employee or agent of the licensee[, for patrons of the restaurant].
             767          (14) (a) A person may not bring onto the premises of a restaurant liquor licensee any
             768      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             769      discretion of the licensee, bottled wine onto the premises of any restaurant liquor licensee for
             770      on-premise consumption.
             771          (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or its


             772      officers, managers, employees, or agents may not allow:
             773          (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
             774      consumption; or
             775          (ii) consumption of any such alcoholic beverage on its premises.
             776          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             777      or other representative of the licensee upon entering the restaurant.
             778          (d) A wine service may be performed and a service charge assessed by the restaurant as
             779      authorized by commission rule for wine carried in by a patron.
             780          (15) (a) Except as provided in Subsection (15)(b), a restaurant licensee and its
             781      employees may not permit a restaurant patron to carry from the restaurant premises an open
             782      container that:
             783          (i) is used primarily for drinking purposes; and
             784          (ii) contains any alcoholic beverage.
             785          (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
             786      restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
             787      onto the premises of the restaurant in accordance with Subsection (14), provided the bottle has
             788      been recorked or recapped before removal.
             789          (16) (a) A minor may not be employed by a restaurant licensee to sell or dispense
             790      alcoholic beverages.
             791          (b) Notwithstanding Subsection (16)(a), a minor may be employed to enter the sale at a
             792      cash register or other sales recording device.
             793          (17) An employee of a restaurant liquor licensee, while on duty, may not:
             794          (a) consume an alcoholic beverage; or
             795          (b) be intoxicated.
             796          (18) Any charge or fee made in connection with the sale, service, or consumption of
             797      liquor may be stated in food or alcoholic beverage menus including:
             798          (a) a set-up charge;
             799          (b) a service charge; or
             800          (c) a chilling fee.
             801          (19) Each restaurant liquor licensee shall display in a prominent place in the restaurant:
             802          (a) the liquor license that is issued by the department;


             803          (b) a list of the types and brand names of liquor being served through its calibrated
             804      metered dispensing system; and
             805          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             806      drugs is a serious crime that is prosecuted aggressively in Utah."
             807          (20) The following acts or conduct in a restaurant licensed under this chapter are
             808      considered contrary to the public welfare and morals, and are prohibited upon the premises:
             809          (a) employing or using any person in the sale or service of alcoholic beverages while
             810      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             811      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             812      buttocks, vulva, or genitals;
             813          (b) employing or using the services of any person to mingle with the patrons while the
             814      person is unclothed or in attire, costume, or clothing described in Subsection (20)(a);
             815          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             816      buttocks, anus, or genitals of any other person;
             817          (d) permitting any employee or person to wear or use any device or covering, exposed
             818      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
             819          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             820      the prohibited activities described in this Subsection (20);
             821          (f) permitting any person to remain in or upon the premises who exposes to public
             822      view any portion of that person's genitals or anus; or
             823          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             824      depicting:
             825          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             826      copulation, flagellation, or any sexual acts prohibited by Utah law;
             827          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             828      genitals;
             829          (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             830      drawings are used to portray, any of the prohibited activities described in this Subsection (20);
             831      or
             832          (iv) scenes wherein a person displays the vulva or the anus or the genitals.
             833          (21) Nothing in Subsection (20) precludes a local authority from being more restrictive


             834      of acts or conduct of the type prohibited in Subsection (20).
             835          (22) (a) Although live entertainment is permitted on the premises of a restaurant liquor
             836      licensee, a licensee may not allow any person to perform or simulate sexual acts prohibited by
             837      Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral copulation,
             838      flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the
             839      displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon a
             840      stage or at a designated area approved by the commission.
             841          (b) Nothing in Subsection (22)(a) precludes a local authority from being more
             842      restrictive of acts or conduct of the type prohibited in Subsection (22)(a).
             843          (23) A restaurant liquor licensee may not engage in or permit any form of gambling, or
             844      have any video gaming device, as defined and proscribed by Title 76, Chapter 10, Part 11,
             845      Gambling, on the premises of the restaurant liquor licensee.
             846          (24) (a) Each restaurant liquor licensee shall maintain an expense ledger or record
             847      showing in detail:
             848          (i) quarterly expenditures made separately for:
             849          (A) malt or brewed beverages;
             850          (B) set-ups;
             851          (C) liquor;
             852          (D) food; and
             853          (E) all other items required by the department; and
             854          (ii) sales made separately for:
             855          (A) malt or brewed beverages;
             856          (B) set-ups;
             857          (C) food; and
             858          (D) all other items required by the department.
             859          (b) The record required by Subsection (24)(a) shall be kept:
             860          (i) in a form approved by the department; and
             861          (ii) current for each three-month period.
             862          (c) Each expenditure shall be supported by:
             863          (i) delivery tickets;
             864          (ii) invoices;


             865          (iii) receipted bills;
             866          (iv) canceled checks;
             867          (v) petty cash vouchers; or
             868          (vi) other sustaining data or memoranda.
             869          (d) In addition to a ledger or record required under Subsection (24)(a), a restaurant
             870      liquor licensee shall maintain accounting and other records and documents as the department
             871      may require.
             872          (e) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,
             873      alters, cancels, destroys, conceals, or removes the entries in any of the books of account or
             874      other documents of the restaurant required to be made, maintained, or preserved by this title or
             875      the rules of the commission for the purpose of deceiving the commission or the department, or
             876      any of their officials or employees, is subject to:
             877          (i) the suspension or revocation of the restaurant's liquor license; and
             878          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             879          (25) (a) A restaurant liquor licensee may not close or cease operation for a period
             880      longer than 240 hours, unless:
             881          (i) the restaurant liquor licensee notifies the department in writing at least seven days
             882      before the closing; and
             883          (ii) the closure or cessation of operation is first approved by the department.
             884          (b) Notwithstanding Subsection (25)(a), in the case of emergency closure, immediate
             885      notice of closure shall be made to the department by telephone.
             886          (c) The department may authorize a closure or cessation of operation for a period not to
             887      exceed 60 days. The department may extend the initial period an additional 30 days upon
             888      written request of the restaurant licensee and upon a showing of good cause. A closure or
             889      cessation of operation may not exceed a total of 90 days without commission approval.
             890          (d) Any notice shall include:
             891          (i) the dates of closure or cessation of operation;
             892          (ii) the reason for the closure or cessation of operation; and
             893          (iii) the date on which the licensee will reopen or resume operation.
             894          (e) Failure of the licensee to provide notice and to obtain department authorization
             895      prior to closure or cessation of operation shall result in an automatic forfeiture of:


             896          (i) the license; and
             897          (ii) the unused portion of the license fee for the remainder of the license year effective
             898      immediately.
             899          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             900      result in an automatic forfeiture of:
             901          (i) the license; and
             902          (ii) the unused portion of the license fee for the remainder of the license year.
             903          (26) Each restaurant liquor licensee shall maintain at least 70% of its total restaurant
             904      business from the sale of food, which does not include mix for alcoholic beverages or service
             905      charges.
             906          (27) A restaurant liquor license may not be transferred from one location to another,
             907      without prior written approval of the commission.
             908          (28) (a) A person, having been granted a restaurant liquor license may not sell, transfer,
             909      assign, exchange, barter, give, or attempt in any way to dispose of the license to any other
             910      person whether for monetary gain or not.
             911          (b) A restaurant liquor license has no monetary value for the purpose of any type of
             912      disposition.
             913          (29) Each server of alcoholic beverages in a licensee's establishment shall keep a
             914      written beverage tab for each table or group that orders or consumes alcoholic beverages on the
             915      premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
             916      consumed.
             917          (30) A person's willingness to serve alcoholic beverages may not be made a condition
             918      of employment as a server with a restaurant that has a restaurant liquor license.
             919          Section 6. Section 32A-4-202 is amended to read:
             920           32A-4-202. Application and renewal requirements.
             921          (1) A person seeking an airport lounge liquor license under this part shall file a written
             922      application with the department, in a form prescribed by the department, accompanied by:
             923          (a) a nonrefundable $250 application fee;
             924          (b) an initial license fee of $7,000, which is refundable if a license is not granted;
             925          (c) written consent of the local and airport authority;
             926          (d) a copy of the applicant's current business license;


             927          (e) a bond as specified by Section 32A-4-205 ;
             928          (f) a floor plan of the airport lounge, including consumption areas and the area where
             929      the applicant proposes to keep, store, and sell liquor;
             930          (g) a copy of the sign proposed to be used by the licensee on its premises to inform the
             931      public that alcoholic beverages are sold and consumed there;
             932          (h) evidence that the airport lounge is carrying public liability insurance in an amount
             933      and form satisfactory to the department;
             934          (i) evidence that the airport lounge is carrying dramshop insurance coverage of at least
             935      $500,000 per occurrence and $1,000,000 in the aggregate;
             936          (j) a signed consent form stating that the airport lounge will permit any authorized
             937      representative of the commission, department, or any law enforcement officer unrestricted right
             938      to enter the airport lounge;
             939          (k) in the case of an applicant that is a partnership, corporation, or limited liability
             940      company, proper verification evidencing that the person or persons signing the airport lounge
             941      application are authorized to so act on behalf of the partnership, corporation, or limited liability
             942      company; and
             943          (l) any other information the commission or department may require.
             944          (2) (a) All airport lounge liquor licenses expire on October 31 of each year.
             945          (b) [Persons] A person desiring to renew [their] that person's airport lounge liquor
             946      license shall submit a renewal fee of $5,000 and a completed renewal application to the
             947      department no later than September 30.
             948          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             949      the license, effective on the date the existing license expires.
             950          (d) Renewal applications shall be in a form as prescribed by the department.
             951          (3) To ensure compliance with Subsection 32A-4-206 (21), the [commissioner]
             952      commission may revoke an airport lounge liquor license if the airport liquor licensee does not
             953      immediately notify the department of any change in:
             954          (a) ownership of the licensee;
             955          (b) for a corporate owner, the:
             956          (i) corporate officers or directors; or
             957          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the


             958      corporation; or
             959          (c) for a limited liability company:
             960          (i) managers; or
             961          (ii) members owning at least 20% of the limited liability company.
             962          Section 7. Section 32A-4-206 is amended to read:
             963           32A-4-206. Operational restrictions.
             964          Each person granted an airport lounge liquor license and the employees and
             965      management personnel of the airport lounge shall comply with the following conditions and
             966      requirements. Failure to comply may result in a suspension or revocation of the license or
             967      other disciplinary action taken against individual employees or management personnel.
             968          (1) (a) Liquor may not be purchased by an airport lounge liquor licensee except from
             969      state stores or package agencies.
             970          (b) Liquor purchased may be transported by the licensee from the place of purchase to
             971      the licensed premises.
             972          (c) Payment for liquor shall be made in accordance with the rules established by the
             973      commission.
             974          (2) An airport lounge liquor licensee may sell or provide a primary spirituous liquor
             975      only in a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             976      dispensing system approved by the department in accordance with commission rules adopted
             977      under this title, except that:
             978          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             979      system if used as a secondary flavoring ingredient in a beverage subject to the following
             980      restrictions:
             981          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             982      a spirituous primary liquor;
             983          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             984          (iii) the airport lounge liquor licensee shall designate a location where flavorings are
             985      stored on the floor plan provided to the department; and
             986          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             987          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             988      system if used:


             989          (i) as a flavoring on desserts; and
             990          (ii) in the preparation of flaming food dishes, drinks, and desserts; and
             991          (c) each airport lounge patron may have no more than 2.75 ounces of spirituous liquor
             992      at a time before the patron.
             993          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             994      exceed five ounces per glass or individual portion.
             995          (ii) An individual portion may be served to a patron in more than one glass as long as
             996      the total amount of wine does not exceed five ounces.
             997          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             998      Subsection (7)(c).
             999          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             1000      fixed by the commission to tables of four or more persons.
             1001          (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
             1002      the commission to tables of less than four persons.
             1003          (c) A wine service may be performed and a service charge assessed by the airport
             1004      lounge as authorized by commission rule for wine purchased at the airport lounge.
             1005          (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
             1006      fixed by the commission.
             1007          (b) A service charge may be assessed by the airport lounge as authorized by
             1008      commission rule for heavy beer purchased at the airport lounge.
             1009          (5) (a) (i) [An] Subject to Subsection (5)(a)(ii), an airport lounge licensed to sell liquor
             1010      may sell beer [in any size container not exceeding two liters, and on draft] for on-premise
             1011      consumption [without obtaining a separate on-premise beer retailer license from the
             1012      commission.]:
             1013          (A) in an open container; and
             1014          (B) on draft.
             1015          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             1016      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1017      container that exceeds one liter.
             1018          (b) An airport lounge that sells beer pursuant to Subsection (5)(a):
             1019          (i) may do so without obtaining a separate on-premise beer retailer license from the


             1020      commission; and
             1021          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1022      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             1023      inconsistent with or less restrictive than the operational restrictions under this part.
             1024          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1025      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the airport
             1026      lounge's:
             1027          (i) state liquor license; and
             1028          (ii) alcoholic beverage license issued by the local authority.
             1029          (6) Alcoholic beverages may not be stored, served, or sold in any place other than as
             1030      designated in the licensee's application, unless the licensee first applies for and receives
             1031      approval from the department for a change of location within the airport lounge.
             1032          (7) (a) A patron may only make purchases in the airport lounge from and be served by
             1033      a person employed, designated, and trained by the licensee to sell, dispense, and serve alcoholic
             1034      beverages.
             1035          (b) Notwithstanding Subsection (7)(a), a patron who has purchased bottled wine from
             1036      an employee of the airport lounge may serve wine from the bottle to [themselves] the patron or
             1037      others at the patron's table.
             1038          (c) Each airport lounge patron may have no more than two alcoholic beverages of any
             1039      kind at a time before the patron.
             1040          (8) The liquor storage area shall remain locked at all times other than those hours and
             1041      days when liquor sales and service are authorized by law.
             1042          (9) Alcoholic beverages may not be sold, offered for sale, served, or otherwise
             1043      furnished at an airport lounge on any day after 12 midnight and before 8 a.m.
             1044          (10) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             1045          (a) minor;
             1046          (b) person actually, apparently, or obviously intoxicated;
             1047          (c) known habitual drunkard; or
             1048          (d) known interdicted person.
             1049          (11) (a) (i) Liquor may be sold only at prices fixed by the commission.
             1050          (ii) Liquor may not be sold at discount prices on any date or at any time.


             1051          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             1052      to the licensee.
             1053          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1054      over consumption or intoxication.
             1055          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1056      hours of the airport lounge's business day such as a "happy hour."
             1057          (e) The sale or service of more than one alcoholic beverage for the price of a single
             1058      alcoholic beverage is prohibited.
             1059          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
             1060      during any set period for a fixed price is prohibited.
             1061          (g) An airport lounge licensee may not engage in a public promotion involving or
             1062      offering free alcoholic beverages to the general public.
             1063          (12) Alcoholic beverages may not be purchased for a patron of an airport lounge by:
             1064          (a) the licensee[,]; or
             1065          (b) any employee or agent of the licensee[, for patrons of the airport lounge].
             1066          (13) (a) A person may not bring onto the premises of an airport lounge licensee any
             1067      alcoholic beverage for on-premise consumption.
             1068          (b) An airport lounge or its officers, managers, employees, or agents may not allow a
             1069      person to bring onto the airport lounge premises any alcoholic beverage for on-premise
             1070      consumption or allow consumption of any such alcoholic beverage on its premises.
             1071          (14) An airport lounge licensee and its employees may not permit a patron to remove
             1072      any alcoholic beverages from the airport lounge premises.
             1073          (15) (a) A minor may not be employed by an airport lounge licensee to sell or dispense
             1074      alcoholic beverages.
             1075          (b) Notwithstanding Subsection (15)(a), a minor may be employed to enter the sale at a
             1076      cash register or other sales recording device.
             1077          (16) An employee of an airport lounge licensee, while on duty, may not:
             1078          (a) consume an alcoholic beverage; or
             1079          (b) be intoxicated.
             1080          (17) Any charge or fee made in connection with the sale, service, or consumption of
             1081      liquor may be stated in a food or alcoholic beverage menu including:


             1082          (a) a set-up charge;
             1083          (b) a service charge; or
             1084          (c) a chilling fee.
             1085          (18) Each airport lounge liquor licensee shall display in a prominent place in the airport
             1086      lounge:
             1087          (a) the liquor license that is issued by the department;
             1088          (b) a list of the types and brand names of liquor being served through its calibrated
             1089      metered dispensing system; and
             1090          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1091      drugs is a serious crime that is prosecuted aggressively in Utah."
             1092          (19) (a) Each airport lounge liquor licensee shall maintain an expense ledger or record
             1093      showing in detail:
             1094          (i) quarterly expenditures made separately for malt or brewed beverages, liquor, and all
             1095      other items required by the department; and
             1096          (ii) sales made separately for malt or brewed beverages, food, and all other items
             1097      required by the department.
             1098          (b) This record shall be kept:
             1099          (i) in a form approved by the department; and [shall be kept]
             1100          (ii) current for each three-month period.
             1101          (c) Each expenditure shall be supported by:
             1102          (i) delivery tickets[,];
             1103          (ii) invoices[,];
             1104          (iii) receipted bills[,];
             1105          (iv) canceled checks[,];
             1106          (v) petty cash vouchers[,]; or
             1107          (vi) other sustaining data or memoranda.
             1108          [(c)] (d) In addition to a ledger or record required by Subsection (19)(a), each airport
             1109      lounge liquor licensee shall maintain accounting and other records and documents as the
             1110      department may require.
             1111          [(d)] (e) Any airport lounge or person acting for the airport lounge, who knowingly
             1112      forges, falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the books


             1113      of account or other documents of the airport lounge required to be made, maintained, or
             1114      preserved by this title or the rules of the commission for the purpose of deceiving the
             1115      commission or the department, or any of their officials or employees, is subject to:
             1116          (i) the immediate suspension or revocation of the airport lounge's liquor license; and
             1117          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1118          (20) An airport lounge liquor license may not be transferred from one location to
             1119      another, without prior written approval of the commission.
             1120          (21) (a) An airport lounge liquor licensee may not sell, transfer, assign, exchange,
             1121      barter, give, or attempt in any way to dispose of the license to any other person, whether for
             1122      monetary gain or not.
             1123          (b) An airport lounge liquor license has no monetary value for the purpose of any type
             1124      of disposition.
             1125          (22) Each server of alcoholic beverages in a licensee's establishment shall keep a
             1126      written beverage tab for each table or group that orders or consumes alcoholic beverages on the
             1127      premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
             1128      consumed.
             1129          (23) An airport lounge liquor licensee's premises may not be leased for private
             1130      functions.
             1131          (24) An airport lounge liquor licensee may not engage in or permit any form of
             1132      gambling, or have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1133      Part 11, Gambling, on the premises of the airport lounge liquor licensee.
             1134          Section 8. Section 32A-4-303 is amended to read:
             1135           32A-4-303. Application and renewal requirements.
             1136          (1) A person seeking a limited restaurant license under this part shall file a written
             1137      application with the department, in a form prescribed by the department. The application shall
             1138      be accompanied by:
             1139          (a) a nonrefundable $250 application fee;
             1140          (b) an initial license fee of $500, which is refundable if a license is not granted;
             1141          (c) written consent of the local authority;
             1142          (d) a copy of the applicant's current business license;
             1143          (e) evidence of proximity to any public or private school, church, public library, public


             1144      playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
             1145      Subsections 32A-4-302 (4) and (5), the application shall be processed in accordance with those
             1146      subsections;
             1147          (f) a bond as specified by Section 32A-4-306 ;
             1148          (g) a floor plan of the restaurant, including:
             1149          (i) consumption areas; and
             1150          (ii) the area where the applicant proposes to keep, store, and sell wine, heavy beer, and
             1151      beer;
             1152          (h) evidence that the restaurant is carrying public liability insurance in an amount and
             1153      form satisfactory to the department;
             1154          (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
             1155      $500,000 per occurrence and $1,000,000 in the aggregate;
             1156          (j) a signed consent form stating that the restaurant will permit any authorized
             1157      representative of the commission, department, or any law enforcement officer unrestricted right
             1158      to enter the restaurant;
             1159          (k) in the case of an applicant that is a partnership, corporation, or limited liability
             1160      company, proper verification evidencing that the person or persons signing the restaurant
             1161      application are authorized to so act on behalf of the partnership, corporation, or limited liability
             1162      company; and
             1163          (l) any other information the commission or department may require.
             1164          (2) A holder of a restaurant liquor license or a private club license on May 5, 2003,
             1165      may not be required to pay the application or initial license fees for a limited restaurant license
             1166      under this chapter if the licensee:
             1167          (a) surrenders the restaurant liquor license or private club license before being granted
             1168      a limited restaurant license; and
             1169          (b) applies for a limited restaurant license in calendar year 2003:
             1170          (i) for the same premises for which the restaurant liquor license or private club license
             1171      was granted; and
             1172          (ii) before the expiration of the restaurant liquor license or private club license.
             1173          (3) (a) All limited restaurant licenses expire on October 31 of each year.
             1174          (b) [Persons] A person desiring to renew [their] that person's limited restaurant license


             1175      shall submit:
             1176          (i) a renewal fee of $300; and
             1177          (ii) a renewal application to the department no later than September 30.
             1178          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             1179      the license effective on the date the existing license expires.
             1180          (d) Renewal applications shall be in a form as prescribed by the department.
             1181          (4) To ensure compliance with Subsection 32A-4-307 [(27)](28), the commission may
             1182      suspend or revoke a limited restaurant license if the limited restaurant licensee does not
             1183      immediately notify the department of any change in:
             1184          (a) ownership of the restaurant;
             1185          (b) for a corporate owner, the:
             1186          (i) corporate officer or directors; or
             1187          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             1188      corporation; or
             1189          (c) for a limited liability company:
             1190          (i) managers; or
             1191          (ii) members owning at least 20% of the limited liability company.
             1192          Section 9. Section 32A-4-307 is amended to read:
             1193           32A-4-307. Operational restrictions.
             1194          Each person granted a limited restaurant license and the employees and management
             1195      personnel of the restaurant shall comply with the following conditions and requirements.
             1196      Failure to comply may result in a suspension or revocation of the license or other disciplinary
             1197      action taken against individual employees or management personnel.
             1198          (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
             1199      except from state stores or package agencies.
             1200          (b) Wine and heavy beer purchased in accordance with Subsection (1)(a) may be
             1201      transported by the licensee from the place of purchase to the licensed premises.
             1202          (c) Payment for wine and heavy beer shall be made in accordance with rules
             1203      established by the commission.
             1204          (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of
             1205      spirituous liquor on the premises of the restaurant.


             1206          (b) Spirituous liquor may not be on the premises of the restaurant except for use:
             1207          (i) as a flavoring on desserts; and
             1208          (ii) in the preparation of flaming food dishes, drinks, and desserts.
             1209          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             1210      exceed five ounces per glass or individual portion.
             1211          (ii) An individual portion may be served to a patron in more than one glass as long as
             1212      the total amount of wine does not exceed five ounces.
             1213          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1214      Subsection (7)[(c)](e).
             1215          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             1216      fixed by the commission to tables of four or more persons.
             1217          (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
             1218      the commission to tables of less than four persons.
             1219          (c) A wine service may be performed and a service charge assessed by the limited
             1220      restaurant as authorized by commission rule for wine purchased at the limited restaurant.
             1221          (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
             1222      fixed by the commission.
             1223          (b) A service charge may be assessed by the limited restaurant as authorized by
             1224      commission rule for heavy beer purchased at the restaurant.
             1225          (5) (a) (i) [A] Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell
             1226      beer [in any size container not exceeding two liters, and on draft] for on-premise consumption
             1227      [without obtaining a separate on-premise beer retailer license from the commission.]:
             1228          (A) in an open container; and
             1229          (B) on draft.
             1230          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             1231      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1232      container that exceeds one liter.
             1233          (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
             1234          (i) may do so without obtaining a separate on-premise beer retailer license from the
             1235      commission; and
             1236          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer


             1237      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             1238      inconsistent with or less restrictive than the operational restrictions under this part.
             1239          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1240      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             1241      restaurant's:
             1242          (i) limited restaurant license; and
             1243          (ii) alcoholic beverage license issued by the local authority.
             1244          (6) Wine, heavy beer, and beer may not be stored, served, or sold in any place other
             1245      than as designated in the licensee's application, unless the licensee first applies for and receives
             1246      approval from the department for a change of location within the restaurant.
             1247          (7) (a) (i) A patron may only make alcoholic beverage purchases in the limited
             1248      restaurant from and be served by a person employed, designated, and trained by the licensee to
             1249      sell and serve alcoholic beverages.
             1250          [(b)] (ii) Notwithstanding Subsection (7)(a)(i), a patron who has purchased bottled
             1251      wine from an employee of the restaurant or has carried bottled wine onto the premises of the
             1252      restaurant pursuant to Subsection [(13)] (14) may thereafter serve wine from the bottle to
             1253      [themselves] the patron or others at the patron's table.
             1254          (b) Alcoholic beverages shall be delivered by a server to the patron.
             1255          (c) Any alcoholic beverage may only be consumed at the patron's table or counter.
             1256          (d) Alcoholic beverages may not be served to or consumed by a patron at a bar.
             1257          [(c)] (e) Each restaurant patron may have no more than two alcoholic beverages of any
             1258      kind at a time before the patron.
             1259          (8) The alcoholic beverage storage area shall remain locked at all times other than
             1260      those hours and days when alcoholic beverage sales are authorized by law.
             1261          (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
             1262      furnished at a limited restaurant during the following days or hours:
             1263          (i) until after the polls are closed on the day of any:
             1264          (A) regular general election;
             1265          (B) regular primary election; or
             1266          (C) statewide special election;
             1267          (ii) until after the polls are closed on the day of any municipal, special district, or


             1268      school election, but only:
             1269          (A) within the boundaries of the municipality, special district, or school district; and
             1270          (B) if [closure is] required by local ordinance; and
             1271          (iii) on any other day after 12 midnight and before 12 noon.
             1272          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             1273      Licenses, for on-premise beer licensees.
             1274          (10) Alcoholic beverages may not be sold except in connection with an order of food
             1275      prepared, sold, and served at the restaurant.
             1276          (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to any:
             1277          (a) minor;
             1278          (b) person actually, apparently, or obviously intoxicated;
             1279          (c) known habitual drunkard; or
             1280          (d) known interdicted person.
             1281          (12) (a) (i) Wine and heavy beer may be sold only at prices fixed by the commission.
             1282          (ii) Wine and heavy beer may not be sold at discount prices on any date or at any time.
             1283          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverages
             1284      to the licensee.
             1285          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1286      over consumption or intoxication.
             1287          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1288      hours of the limited restaurant's business day such as a "happy hour."
             1289          (e) The sale or service of more than one alcoholic beverage for the price of a single
             1290      alcoholic beverage is prohibited.
             1291          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
             1292      during any set period for a fixed price is prohibited.
             1293          (g) A limited restaurant licensee may not engage in a public promotion involving or
             1294      offering free alcoholic beverages to the general public.
             1295          (13) Alcoholic beverages may not be purchased for a patron of the restaurant by:
             1296          (a) the licensee[,]; or
             1297          (b) any employee or agent of the licensee[, for a patron of the restaurant].
             1298          (14) (a) A person may not bring onto the premises of a limited restaurant licensee any


             1299      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             1300      discretion of the licensee, bottled wine onto the premises of any limited restaurant licensee for
             1301      on-premise consumption.
             1302          (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or its
             1303      officers, managers, employees, or agents may not allow:
             1304          (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
             1305      consumption; or
             1306          (ii) consumption of any alcoholic beverage described in Subsection (14)(b)(i) on its
             1307      premises.
             1308          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             1309      or other representative of the licensee upon entering the restaurant.
             1310          (d) A wine service may be performed and a service charge assessed by the restaurant as
             1311      authorized by commission rule for wine carried in by a patron.
             1312          (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and its
             1313      employees may not permit a restaurant patron to carry from the restaurant premises an open
             1314      container that:
             1315          (i) is used primarily for drinking purposes; and
             1316          (ii) contains any alcoholic beverage.
             1317          (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
             1318      contents of a bottle of wine if before removal the bottle has been recorked or recapped.
             1319          (16) (a) A minor may not be employed by a limited restaurant licensee to sell or
             1320      dispense alcoholic beverages.
             1321          (b) Notwithstanding Subsection (16)(a), a minor may be employed to enter the sale at a
             1322      cash register or other sales recording device.
             1323          (17) An employee of a limited restaurant licensee, while on duty, may not:
             1324          (a) consume an alcoholic beverage; or
             1325          (b) be intoxicated.
             1326          (18) A charge or fee made in connection with the sale, service, or consumption of wine
             1327      or heavy beer may be stated in food or alcoholic beverage menus including:
             1328          (a) a service charge; or
             1329          (b) a chilling fee.


             1330          (19) Each limited restaurant licensee shall display in a prominent place in the
             1331      restaurant:
             1332          (a) the license that is issued by the department; and
             1333          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1334      drugs is a serious crime that is prosecuted aggressively in Utah."
             1335          (20) The following acts or conduct in a restaurant licensed under this part are
             1336      considered contrary to the public welfare and morals, and are prohibited upon the premises:
             1337          (a) employing or using any person in the sale or service of alcoholic beverages while
             1338      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             1339      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             1340      buttocks, vulva, or genitals;
             1341          (b) employing or using the services of any person to mingle with the patrons while the
             1342      person is unclothed or in attire, costume, or clothing described in Subsection (20)(a);
             1343          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             1344      buttocks, anus, or genitals of any other person;
             1345          (d) permitting any employee or person to wear or use any device or covering, exposed
             1346      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
             1347          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             1348      the prohibited activities described in this Subsection (20);
             1349          (f) permitting any person to remain in or upon the premises who exposes to public
             1350      view any portion of that person's genitals or anus; or
             1351          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             1352      depicting:
             1353          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             1354      copulation, flagellation, or any sexual acts prohibited by Utah law;
             1355          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             1356      genitals;
             1357          (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             1358      drawings are used to portray, any of the prohibited activities described in this Subsection (20);
             1359      or
             1360          (iv) scenes wherein a person displays the vulva, anus, or the genitals.


             1361          (21) Nothing in Subsection (20) precludes a local authority from being more restrictive
             1362      of acts or conduct of the type prohibited in Subsection (20).
             1363          (22) (a) Although live entertainment is permitted on the premises of a limited
             1364      restaurant licensee, a licensee may not allow any person to perform or simulate sexual acts
             1365      prohibited by Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral
             1366      copulation, flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or
             1367      genitals, or the displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform
             1368      only upon a stage or at a designated area approved by the commission.
             1369          (b) Nothing in Subsection (22)(a) precludes a local authority from being more
             1370      restrictive of acts or conduct of the type prohibited in Subsection (22)(a).
             1371          (23) A limited restaurant licensee may not engage in or permit any form of gambling,
             1372      or have any video gaming device, as defined and proscribed by Title 76, Chapter 10, Part 11,
             1373      Gambling, on the premises of the restaurant.
             1374          (24) (a) Each limited restaurant licensee shall maintain an expense ledger or record
             1375      showing in detail:
             1376          (i) quarterly expenditures made separately for:
             1377          (A) wine;
             1378          (B) heavy beer;
             1379          (C) beer;
             1380          (D) food; and
             1381          (E) all other items required by the department; and
             1382          (ii) sales made separately for:
             1383          (A) wine;
             1384          (B) heavy beer;
             1385          (C) beer;
             1386          (D) food; and
             1387          (E) all other items required by the department.
             1388          (b) The record required by Subsection (24)(a) shall be kept:
             1389          (i) in a form approved by the department; and
             1390          (ii) current for each three-month period.
             1391          (c) Each expenditure shall be supported by:


             1392          (i) delivery tickets;
             1393          (ii) invoices;
             1394          (iii) receipted bills;
             1395          (iv) canceled checks;
             1396          (v) petty cash vouchers; or
             1397          (vi) other sustaining data or memoranda.
             1398          (d) In addition to the ledger or record maintained under Subsections (24)(a) through
             1399      (c), a limited restaurant licensee shall maintain accounting and other records and documents as
             1400      the department may require.
             1401          (e) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,
             1402      alters, cancels, destroys, conceals, or removes the entries in any of the books of account or
             1403      other documents of the restaurant required to be made, maintained, or preserved by this title or
             1404      the rules of the commission for the purpose of deceiving the commission or department, or any
             1405      of their officials or employees, is subject to:
             1406          (i) the suspension or revocation of the limited restaurant's license; and
             1407          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1408          (25) (a) A limited restaurant licensee may not close or cease operation for a period
             1409      longer than 240 hours, unless:
             1410          (i) the limited restaurant licensee notifies the department in writing at least seven days
             1411      before the closing; and
             1412          (ii) the closure or cessation of operation is first approved by the department.
             1413          (b) Notwithstanding Subsection (25)(a), in the case of emergency closure, immediate
             1414      notice of closure shall be made to the department by telephone.
             1415          (c) (i) Subject to Subsection (25)(c)(iii), the department may authorize a closure or
             1416      cessation of operation for a period not to exceed 60 days.
             1417          (ii) The department may extend the initial period an additional 30 days upon:
             1418          (A) written request of the limited restaurant licensee; and
             1419          (B) a showing of good cause.
             1420          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             1421      commission approval.
             1422          (d) Any notice required by Subsection (25)(a) shall include:


             1423          (i) the dates of closure or cessation of operation;
             1424          (ii) the reason for the closure or cessation of operation; and
             1425          (iii) the date on which the licensee will reopen or resume operation.
             1426          (e) Failure of the licensee to provide notice and to obtain department authorization
             1427      before closure or cessation of operation shall result in an automatic forfeiture of:
             1428          (i) the license; and
             1429          (ii) the unused portion of the license fee for the remainder of the license year effective
             1430      immediately.
             1431          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             1432      result in an automatic forfeiture of:
             1433          (i) the license; and
             1434          (ii) the unused portion of the license fee for the remainder of the license year.
             1435          (26) Each limited restaurant licensee shall maintain at least 70% of its total restaurant
             1436      business from the sale of food, which does not include service charges.
             1437          (27) A limited restaurant license may not be transferred from one location to another,
             1438      without prior written approval of the commission.
             1439          (28) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,
             1440      give, or attempt in any way to dispose of the license to any other person whether for monetary
             1441      gain or not.
             1442          (b) A limited restaurant license has no monetary value for the purpose of any type of
             1443      disposition.
             1444          (29) (a) Each server of wine, heavy beer, and beer in a limited restaurant licensee's
             1445      establishment shall keep a written beverage tab for each table or group that orders or consumes
             1446      alcoholic beverages on the premises.
             1447          (b) The beverage tab required by Subsection (29)(a) shall list the type and amount of
             1448      alcoholic beverages ordered or consumed.
             1449          (30) A limited restaurant licensee may not make a person's willingness to serve
             1450      alcoholic beverages a condition of employment as a server with the restaurant.
             1451          Section 10. Section 32A-4-401 is amended to read:
             1452           32A-4-401. Commission's power to grant licenses -- Limitations.
             1453          (1) (a) For purposes of this part:


             1454          (i) "Banquet" means an event:
             1455          (A) for which there is a contract:
             1456          (I) between any person and a person listed in Subsection (1)(a)(i)(B); and
             1457          (II) under which a person listed in Subsection (1)(a)(i)(B) is required to provide
             1458      alcoholic beverages at the event;
             1459          (B) held at one or more designated locations approved by the commission in or on the
             1460      premises of a:
             1461          (I) hotel;
             1462          (II) resort facility;
             1463          (III) sports center; or
             1464          (IV) convention center; and
             1465          (C) at which food and alcoholic beverages may be sold and served.
             1466          (ii) "Convention center" is as defined by the commission by rule.
             1467          (iii) "Hotel" is as defined by the commission by rule.
             1468          (iv) "Resort facility" is as defined by the commission by rule.
             1469          (v) "Room service" means service of alcoholic beverages to a guest room of a:
             1470          (A) hotel; or
             1471          (B) resort facility.
             1472          (vi) "Sports center" is as defined by the commission by rule.
             1473          [(1) (a)] (b) Beginning May 5, 2003, and ending June 30, 2005, the commission may
             1474      issue an on-premise banquet license to any of the following persons for the purpose of allowing
             1475      the storage, sale, service, and consumption of alcoholic beverages in connection with that
             1476      person's banquet and room service activities:
             1477          (i) hotel;
             1478          (ii) resort facility;
             1479          (iii) sports center; or
             1480          (iv) convention center.
             1481          [(b)] (c) This chapter is not intended to prohibit liquor on the premises of a person
             1482      listed in Subsection (1) to the extent otherwise permitted by this title.
             1483          (2) (a) Subject to this section, the total number of on-premise banquet licenses may not
             1484      at any time aggregate more than that number determined by dividing the population of the state


             1485      by 30,000.
             1486          (b) For purposes of this Subsection (2), the population of the state shall be determined
             1487      by:
             1488          (i) the most recent United States decennial or special census; or
             1489          (ii) any other population determination made by the United States or state
             1490      governments.
             1491          (3) Pursuant to a contract between the host of a banquet and an on-premise banquet
             1492      licensee:
             1493          (a) the host of a contracted banquet may request an on-premise banquet licensee to
             1494      provide alcoholic beverages served at a banquet; and
             1495          (b) an on-premise banquet licensee may provide the alcoholic beverages served at a
             1496      banquet.
             1497          (4) At a banquet, an on-premise banquet licensee may provide:
             1498          (a) a hosted bar; or
             1499          (b) a cash bar.
             1500          (5) Nothing in this section shall prohibit a qualified on-premise banquet license
             1501      applicant from applying for a package agency.
             1502          (6) (a) The premises of an on-premise banquet license may not be established within
             1503      600 feet of any public or private school, church, public library, public playground, or park, as
             1504      measured by the method in Subsection (7).
             1505          (b) The premises of an on-premise banquet license may not be established within 200
             1506      feet of any public or private school, church, public library, public playground, or park,
             1507      measured in a straight line from the nearest entrance of the proposed outlet to the nearest
             1508      property boundary of the public or private school, church, public library, public playground, or
             1509      park.
             1510          (c) The restrictions contained in Subsections (6)(a) and (b) govern unless one of the
             1511      following exemptions applies:
             1512          (i) with respect to the establishment of an on-premise banquet license within any
             1513      location, the commission may authorize a variance to reduce the proximity requirements of
             1514      Subsection (6)(a) or (b) if:
             1515          (A) the local governing authority has granted its written consent to the variance;


             1516          (B) alternative locations for establishing an on-premise banquet license in the
             1517      community are limited;
             1518          (C) a public hearing has been held in the city, town, or county, and where practical in
             1519      the neighborhood concerned; and
             1520          (D) after giving full consideration to all of the attending circumstances and the policies
             1521      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1522      license would not be detrimental to the public health, peace, safety, and welfare of the
             1523      community; or
             1524          (ii) with respect to the premises of any on-premise banquet license issued by the
             1525      commission that undergoes a change of ownership, the commission may waive or vary the
             1526      proximity requirements of Subsections (6)(a) and (b) in considering whether to grant an
             1527      on-premise banquet license to the new owner of the premises if:
             1528          (A) the premises previously received a variance reducing the proximity requirements of
             1529      Subsection (6)(a) or (b); or
             1530          (B) a variance from proximity or distance requirements was otherwise allowed under
             1531      this title.
             1532          (7) With respect to any public or private school, church, public library, public
             1533      playground, or park, the 600 foot limitation is measured from the nearest entrance of the outlet
             1534      by following the shortest route of ordinary pedestrian travel to the property boundary of the
             1535      public or private school, church, public library, public playground, school playground, or park.
             1536          (8) (a) Nothing in this section prevents the commission from considering the proximity
             1537      of any educational, religious, and recreational facility, or any other relevant factor in reaching a
             1538      decision on a proposed location.
             1539          (b) For purposes of this Subsection (8), "educational facility" includes:
             1540          (i) a nursery school;
             1541          (ii) an infant day care center; and
             1542          (iii) a trade and technical school.
             1543          Section 11. Section 32A-4-402 is amended to read:
             1544           32A-4-402. Application and renewal requirements.
             1545          (1) (a) A person seeking an on-premise banquet license under this part shall file a
             1546      written application with the department, in a form prescribed by the department. The


             1547      application shall be accompanied by:
             1548          [(a)] (i) a nonrefundable $250 application fee;
             1549          [(b)] (ii) an initial license fee of $500, which is refundable if a license is not granted;
             1550          [(c)] (iii) written consent of the local authority;
             1551          [(d)] (iv) a copy of the applicant's current business license;
             1552          [(e)] (v) evidence of proximity to any public or private school, church, public library,
             1553      public playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
             1554      Subsections 32A-4-401 [(7)](6) and [(8)] (7), the application shall be processed in accordance
             1555      with those subsections;
             1556          [(f)] (vi) a bond as specified by Section 32A-4-405 ;
             1557          [(g)] (vii) a description or floor plan and boundary map of the premises, where
             1558      appropriate, of the on-premise banquet license applicant's location, designating:
             1559          [(i)] (A) the location at which the on-premise banquet license applicant proposes that
             1560      alcoholic beverages be stored; and
             1561          [(ii)] (B) the designated locations on the premises of the applicant from which the
             1562      on-premise banquet license applicant proposes that alcoholic beverages be sold or served, and
             1563      consumed;
             1564          [(h)] (viii) evidence that the on-premise banquet license applicant is carrying public
             1565      liability insurance in an amount and form satisfactory to the department;
             1566          [(i)] (ix) evidence that the on-premise banquet license applicant is carrying dramshop
             1567      insurance coverage of at least $500,000 per occurrence and $1,000,000 in the aggregate;
             1568          [(j)] (x) a signed consent form stating that the on-premise banquet license applicant
             1569      will permit any authorized representative of the commission, department, or any law
             1570      enforcement officer unrestricted right to enter the [restaurant] on-premise banquet premises;
             1571          [(k)] (xi) in the case of an applicant that is a partnership, corporation, or limited
             1572      liability company, proper verification evidencing that the person or persons signing the
             1573      on-premise banquet license application are authorized to so act on behalf of the partnership,
             1574      corporation, or limited liability company; and
             1575          [(l)] (xii) any other information the commission or department may require.
             1576          (b) An applicant need not meet the requirements of Subsection (1)(a)(i), (ii), (iii), (iv),
             1577      and (vi) if the applicant is:


             1578          (i) a state agency; or
             1579          (ii) a political subdivision of the state including:
             1580          (A) a county; or
             1581          (B) a municipality.
             1582          (2) Additional locations in or on the premises of an on-premise banquet license
             1583      applicant's business from which the on-premise banquet license applicant may propose that
             1584      alcoholic beverages may be stored, sold or served, or consumed, not included in the applicant's
             1585      original application may be approved by the department upon proper application, in accordance
             1586      with guidelines approved by the commission.
             1587          (3) (a) All on-premise banquet licenses expire on October 31 of each year.
             1588          (b) (i) [Persons] Except as provided in Subsection (3)(b)(ii), a person desiring to renew
             1589      [their] that person's on-premise banquet license shall submit a renewal fee of $500 and a
             1590      completed renewal application to the department no later than September 30.
             1591          (ii) A licensee is not required to submit the renewal fee if the licensee is:
             1592          (A) a state agency; or
             1593          (B) a political subdivision of the state including:
             1594          (I) a county; or
             1595          (II) a municipality.
             1596          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             1597      the license effective on the date the existing license expires.
             1598          (d) Renewal applications shall be in a form as prescribed by the department.
             1599          (4) To ensure compliance with Subsection 32A-4-406 (26), the commission may
             1600      suspend or revoke an on-premise banquet license if the on-premise banquet licensee fails to
             1601      immediately notify the department of any change in:
             1602          (a) ownership of the licensee;
             1603          (b) for a corporate owner, the:
             1604          (i) corporate officers or directors; or
             1605          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             1606      corporation; or
             1607          (c) for a limited liability company:
             1608          (i) managers; or


             1609          (ii) members owning at least 20% of the limited liability company.
             1610          Section 12. Section 32A-4-406 is amended to read:
             1611           32A-4-406. Operational restrictions.
             1612          Each person granted an on-premise banquet license and the employees and management
             1613      personnel of the on-premise banquet licensee shall comply with this title, the rules of the
             1614      commission, and the following conditions and requirements. Failure to comply may result in a
             1615      suspension or revocation of the license or other disciplinary action taken against individual
             1616      employees or management personnel.
             1617          (1) A person involved in the sale or service of alcoholic beverages under the
             1618      on-premise banquet license shall:
             1619          (a) be under the supervision and direction of the on-premise banquet licensee; and
             1620          (b) complete the seminar provided for in Section 62A-15-401 .
             1621          (2) (a) Liquor may not be purchased by the on-premise banquet licensee except from
             1622      state stores or package agencies.
             1623          (b) Liquor purchased in accordance with Subsection (2)(a) may be transported by the
             1624      on-premise banquet licensee from the place of purchase to the licensed premises.
             1625          (c) Payment for liquor shall be made in accordance with rules established by the
             1626      commission.
             1627          (3) Alcoholic beverages may be sold or provided at a banquet[, or in connection with
             1628      room service,] subject to the [following] restrictions[:] set forth in this Subsection (3).
             1629          (a) An on-premise banquet licensee may sell or provide any primary spirituous liquor
             1630      only in a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             1631      dispensing system approved by the department in accordance with commission rules adopted
             1632      under this title, except that:
             1633          (i) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1634      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1635      restrictions:
             1636          (A) the secondary ingredient may be dispensed only in conjunction with the purchase
             1637      of a primary spirituous liquor;
             1638          (B) the secondary ingredient may not be the only spirituous liquor in the beverage;
             1639          (C) the on-premise banquet licensee shall designate a location where flavorings are


             1640      stored on the floor plan provided to the department; and
             1641          (D) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             1642          (ii) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1643      system if used:
             1644          (A) as a flavoring on desserts; and
             1645          (B) in the preparation of flaming food dishes, drinks, and desserts;
             1646          (iii) each attendee may have no more than 2.75 ounces of spirituous liquor at a time
             1647      before the attendee; and
             1648          (iv) each attendee may have no more than one spirituous liquor drink at a time before
             1649      the attendee.
             1650          (b) (i) (A) Wine may be sold and served by the glass or an individual portion not to
             1651      exceed five ounces per glass or individual portion.
             1652          (B) An individual portion may be served to an attendee in more than one glass as long
             1653      as the total amount of wine does not exceed five ounces.
             1654          (C) An individual portion of wine is considered to be one alcoholic beverage under
             1655      Subsection (5)(c).
             1656          (ii) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed
             1657      by the commission.
             1658          (iii) A wine service may be performed and a service charge assessed by the on-premise
             1659      banquet licensee as authorized by commission rule for wine purchased on the banquet
             1660      premises.
             1661          (c) (i) Heavy beer may be served in original containers not exceeding one liter at prices
             1662      fixed by the commission.
             1663          (ii) A service charge may be assessed by the on-premise banquet licensee as authorized
             1664      by commission rule for heavy beer purchased on the banquet premises.
             1665          (d) (i) [Beer] Except as provided in Subsection (3)(d)(ii), beer may be sold and served
             1666      for on-premise consumption:
             1667          (A) in [any size] an open container [not exceeding two liters,]; and
             1668          (B) on draft [for on-premise consumption].
             1669          (ii) Beer sold pursuant to Subsection (3)(a)(i) shall be in a size of container that does
             1670      not exceed two liters, except that beer may not be sold to an individual attendee in a container


             1671      size that exceeds one liter.
             1672          (4) Alcoholic beverages may not be stored, served, or sold in any place other than as
             1673      designated in the on-premise banquet licensee's application, except that additional locations in
             1674      or on the premises of an on-premise banquet licensee may be approved in accordance with
             1675      guidelines approved by the commission as provided in Subsection 32A-4-402 (2).
             1676          (5) (a) An attendee may only make alcoholic beverage purchases from and be served by
             1677      a person employed, designated, and trained by the on-premise banquet licensee to sell and
             1678      serve alcoholic beverages.
             1679          (b) Notwithstanding Subsection (5)(a), an attendee who has purchased bottled wine
             1680      from an employee of the on-premise banquet licensee may thereafter serve wine from the bottle
             1681      to [themselves] the attendee or others at the attendee's table.
             1682          (c) Each attendee may have no more than two alcoholic beverages of any kind at a time
             1683      before the attendee.
             1684          (6) The alcoholic beverage storage area shall remain locked at all times other than
             1685      those hours and days when alcoholic beverage sales are authorized by law.
             1686          (7) (a) Except as provided in Subsection (7)(b), alcoholic beverages may be offered for
             1687      sale, sold, served, or otherwise furnished from 10 a.m. to 1 a.m. seven days a week:
             1688          (i) at a banquet; or
             1689          (ii) in connection with room service.
             1690          (b) Notwithstanding Subsection (7)(a), a sale or service of alcoholic beverages may not
             1691      occur at a banquet or in connection with room service until after the polls are closed on the day
             1692      of:
             1693          (i) a regular general election;
             1694          (ii) a regular primary election; or
             1695          (iii) a statewide special election.
             1696          (8) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             1697          (a) minor;
             1698          (b) person actually, apparently, or obviously intoxicated;
             1699          (c) known habitual drunkard; or
             1700          (d) known interdicted person.
             1701          (9) (a) (i) Liquor may be sold only at prices fixed by the commission.


             1702          (ii) Liquor may not be sold at discount prices on any date or at any time.
             1703          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             1704      to the licensee.
             1705          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1706      over consumption or intoxication.
             1707          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1708      hours of the on-premise banquet licensee's business day such as a "happy hour."
             1709          (e) The sale or service of more than one alcoholic beverage for the price of a single
             1710      alcoholic beverage is prohibited.
             1711          (f) An on-premise banquet licensee may not engage in a public promotion involving or
             1712      offering free alcoholic beverages to the general public.
             1713          (10) Alcoholic beverages may not be purchased for an attendee by:
             1714          (a) the on-premise banquet licensee[,]; or
             1715          (b) any employee or agent of the on-premise banquet licensee[, for an attendee].
             1716          (11) An attendee of a banquet may not bring any alcoholic beverage into or onto, or
             1717      remove any alcoholic beverage from the premises of a banquet.
             1718          (12) (a) Except as otherwise provided in this title, the sale and service of alcoholic
             1719      beverages by an on-premise banquet licensee at a banquet shall be made only for consumption
             1720      at the location of the banquet.
             1721          (b) The host of a banquet, an attendee, or any other person other than the on-premise
             1722      banquet licensee or its employees, may not remove any alcoholic beverage from the premises
             1723      of the banquet.
             1724          (13) An on-premise banquet licensee employee shall remain at the banquet at all times
             1725      when alcoholic beverages are being sold, served, or consumed at the banquet.
             1726          (14) (a) An on-premise banquet licensee may not leave any unsold alcoholic beverages
             1727      at the banquet following the conclusion of the banquet.
             1728          (b) At the conclusion of a banquet, the on-premise banquet licensee or its employees,
             1729      shall:
             1730          (i) destroy any opened and unused alcoholic beverages that are not saleable, under
             1731      conditions established by the department; and
             1732          (ii) return to the on-premise banquet licensee's approved locked storage area any:


             1733          (A) opened and unused alcoholic beverage that is saleable; and
             1734          (B) unopened containers of alcoholic beverages.
             1735          (15) Except as provided in Subsection (14), any open or sealed container of alcoholic
             1736      beverages not sold or consumed at a banquet:
             1737          (a) shall be stored by the on-premise banquet licensee in the licensee's approved locked
             1738      storage area; and
             1739          (b) may be used at more than one banquet.
             1740          (16) An on-premise banquet licensee may not employ a minor to sell, serve, dispense,
             1741      or otherwise furnish alcoholic beverages in connection with the licensee's banquet and room
             1742      service activities.
             1743          (17) An employee of an on-premise banquet licensee, while on duty, may not:
             1744          (a) consume an alcoholic beverage; or
             1745          (b) be intoxicated.
             1746          (18) An on-premise banquet licensee shall prominently display at each banquet at
             1747      which alcoholic beverages are sold or served:
             1748          (a) a copy of the licensee's on-premise banquet license; and
             1749          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1750      drugs is a serious crime that is prosecuted aggressively in Utah."
             1751          (19) The following acts or conduct are considered contrary to the public welfare and
             1752      morals, and are prohibited at and during the hours of a banquet:
             1753          (a) employing or using any person in the sale or service of alcoholic beverages while
             1754      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             1755      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             1756      buttocks, vulva, or genitals;
             1757          (b) employing or using the services of any person to mingle with the patrons while the
             1758      person is unclothed or in attire, costume, or clothing described in Subsection (19)(a);
             1759          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             1760      buttocks, anus, or genitals of any other person;
             1761          (d) permitting any employee or person to wear or use any device or covering, exposed
             1762      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
             1763          (e) permitting any person to use artificial devices or inanimate objects to depict any of


             1764      the prohibited activities described in this Subsection (19);
             1765          (f) permitting any person to remain in or upon the premises who exposes to public
             1766      view any portion of that person's genitals or anus; or
             1767          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             1768      depicting:
             1769          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             1770      copulation, flagellation, or any sexual acts prohibited by Utah law;
             1771          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             1772      genitals;
             1773          (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             1774      drawings are used to portray, any of the prohibited activities described in this Subsection (19);
             1775      or
             1776          (iv) scenes wherein a person displays the vulva, anus, or the genitals.
             1777          (20) Nothing in Subsection (19) precludes a local authority from being more restrictive
             1778      of acts or conduct of the type prohibited in Subsection (19).
             1779          (21) (a) Although live entertainment is permitted at a banquet, an on-premise banquet
             1780      licensee may not allow any person to perform or simulate sexual acts prohibited by Utah law,
             1781      including sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation, the
             1782      touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the displaying of
             1783      the pubic hair, anus, vulva, or genitals.
             1784          (b) Nothing in Subsection (21)(a) precludes a local authority from being more
             1785      restrictive of acts or conduct of the type prohibited in Subsection (21)(a).
             1786          (22) An on-premise banquet licensee may not engage in or permit any form of
             1787      gambling, or have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1788      Part 11, Gambling, on the premises of the:
             1789          (a) hotel;
             1790          (b) resort facility;
             1791          (c) sports center; or
             1792          (d) convention center.
             1793          (23) (a) An on-premise banquet licensee shall maintain accounting and such other
             1794      records and documents as the commission or department may require.


             1795          (b) An on-premise banquet licensee or person acting for the on-premise banquet
             1796      licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the
             1797      entries in any of the books of account or other documents of the on-premise banquet licensee
             1798      required to be made, maintained, or preserved by this title or the rules of the commission for
             1799      the purpose of deceiving the commission or department, or any of their officials or employees,
             1800      is subject to:
             1801          (i) the suspension or revocation of the on-premise banquet license; and
             1802          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1803          (24) An on-premise banquet licensee shall maintain at least 50% of its total annual
             1804      banquet gross receipts from the sale of food, not including:
             1805          (a) mix for alcoholic beverages; and
             1806          (b) charges in connection with the service of alcoholic beverages.
             1807          (25) A person may not transfer an on-premise banquet license from one business
             1808      location to another without prior written approval of the commission.
             1809          (26) (a) An on-premise banquet licensee may not sell, transfer, assign, exchange,
             1810      barter, give, or attempt in any way to dispose of the license to any other person, whether for
             1811      monetary gain or not.
             1812          (b) An on-premise banquet license has no monetary value for the purpose of any type
             1813      of disposition.
             1814          (27) (a) Room service of alcoholic beverages to a guest room of a hotel or resort
             1815      facility shall be provided in person by an on-premise banquet licensee employee only to an
             1816      adult guest in the guest room.
             1817          (b) Alcoholic beverages may not be left outside a guest room for retrieval by a guest.
             1818          (c) An on-premise banquet licensee may only provide alcoholic beverages for room
             1819      service in sealed containers.
             1820          Section 13. Section 32A-5-102 is amended to read:
             1821           32A-5-102. Application and renewal requirements.
             1822          (1) A club seeking a class A, B, C, or D private club license under this chapter shall
             1823      file a written application with the department in a form prescribed by the department. The
             1824      application shall be accompanied by:
             1825          (a) a nonrefundable $250 application fee;


             1826          (b) an initial license fee of $2,500, which is refundable if a license is not granted;
             1827          (c) written consent of the local authority;
             1828          (d) a copy of the applicant's current business license;
             1829          (e) evidence of proximity to any public or private school, church, public library, public
             1830      playground, or park, and if the proximity is within the 600 foot or 200 foot limitations of
             1831      Subsections 32A-5-101 (7) and (8), the application shall be processed in accordance with those
             1832      subsections;
             1833          (f) evidence that the applicant operates a club where a variety of food is prepared and
             1834      served in connection with dining accommodations;
             1835          (g) a bond as specified by Section 32A-5-106 ;
             1836          (h) a floor plan of the club premises, including consumption areas and the area where
             1837      the applicant proposes to keep and store liquor;
             1838          (i) evidence that the club is carrying public liability insurance in an amount and form
             1839      satisfactory to the department;
             1840          (j) evidence that the club is carrying dramshop insurance coverage of at least $500,000
             1841      per occurrence and $1,000,000 in the aggregate;
             1842          (k) a copy of the club's bylaws or house rules, and any amendments to those
             1843      documents, which shall be kept on file with the department at all times;
             1844          (l) a signed consent form stating that the club and its management will permit any
             1845      authorized representative of the commission, department, or any law enforcement officer
             1846      unrestricted right to enter the club premises;
             1847          (m) (i) a statement as to whether the private club is seeking to qualify as a class A, B,
             1848      C, or D private club licensee; and
             1849          (ii) evidence that the private club meets the requirements for the classification for
             1850      which [it] the club is applying;
             1851          (n) in the case of a partnership, corporation, or limited liability company applicant,
             1852      proper verification evidencing that the person or persons signing the private club application
             1853      are authorized to so act on behalf of the partnership, corporation, or limited liability company;
             1854      and
             1855          (o) any other information the commission or department may require.
             1856          (2) (a) The commission may refuse to issue a license if the commission determines that


             1857      any provisions of the club's bylaws or house rules, or amendments to those documents are not:
             1858          (i) reasonable; and
             1859          (ii) consistent with:
             1860          (A) the declared nature and purpose of the applicant; and
             1861          (B) the purposes of this chapter.
             1862          (b) Club bylaws or house rules shall include provisions respecting the following:
             1863          (i) standards of eligibility for members;
             1864          (ii) limitation of members, consistent with the nature and purpose of the private club;
             1865          (iii) the period for which dues are paid, and the date upon which the period expires;
             1866          (iv) provisions for dropping members for the nonpayment of dues or other cause; and
             1867          (v) provisions for guests or visitors, if any, and for the issuance and use of visitor
             1868      cards.
             1869          (3) (a) All private club licenses expire on June 30 of each year.
             1870          (b) [Persons] A person desiring to renew [their] that person's private club license shall
             1871      submit by no later than May 31:
             1872          (i) a completed renewal application to the department; and
             1873          (ii) a renewal fee in the following amount:
             1874          Gross Cost of Liquor in Previous License Year for the Licensee        Renewal Fee
             1875          under $10,000                                $1,000
             1876          equals or exceeds $10,000 but less than $25,000                $1,250
             1877          equals or exceeds $25,000 but less than $75,000                $1,750
             1878          equals or exceeds $75,000                            $2,250.
             1879          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             1880      the license effective on the date the existing license expires.
             1881          (d) Renewal applications shall be in a form as prescribed by the department.
             1882          (4) To ensure compliance with Subsection 32A-5-107 (44), the commission may
             1883      suspend or revoke any private club license if the private club licensee does not immediately
             1884      notify the department of any change in:
             1885          (a) ownership of the club;
             1886          (b) for a corporate owner, the:
             1887          (i) corporate officers or directors; or


             1888          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             1889      corporation; or
             1890          (c) for a limited liability company:
             1891          (i) managers; or
             1892          (ii) members owning at least 20% of the limited liability company.
             1893          Section 14. Section 32A-5-107 is amended to read:
             1894           32A-5-107. Operational restrictions.
             1895          Each club granted a private club license and the employees, management personnel, and
             1896      members of the club shall comply with the following conditions and requirements. Failure to
             1897      comply may result in a suspension or revocation of the license or other disciplinary action
             1898      taken against individual employees or management personnel.
             1899          (1) Each private club shall have a governing body that:
             1900          (a) consists of three or more members of the club; and
             1901          (b) holds regular meetings to:
             1902          (i) review membership applications; and
             1903          (ii) conduct any other business as required by the bylaws or house rules of the private
             1904      club.
             1905          (2) (a) Each private club may admit an individual as a member only on written
             1906      application signed by the applicant, [following] subject to:
             1907          (i) the applicant paying an application fee as required by Subsection (4); and
             1908          (ii) investigation [and], vote, and approval of a quorum of the governing body.
             1909          (b) (i) Admissions shall be recorded in the official minutes of a regular meeting of the
             1910      governing body [and the].
             1911          (ii) An application, whether approved or disapproved, shall be filed as a part of the
             1912      official records of the licensee.
             1913          [(c) An applicant may not be accorded the privileges of a member until a quorum of the
             1914      governing body has formally voted upon and approved the applicant as a member.]
             1915          [(d) An applicant may not be admitted to membership sooner than seven days after the
             1916      application is submitted.]
             1917          (c) Notwithstanding Subsection (2)(a), a private club, in its discretion, may admit an
             1918      applicant and immediately accord the applicant temporary privileges of a member until the


             1919      governing body completes its investigation and votes on the application, subject to the
             1920      following conditions:
             1921          (i) the applicant shall:
             1922          (A) submit a written application; and
             1923          (B) pay the application fee required by Subsection (4);
             1924          (ii) the governing body votes on the application at its next meeting which shall take
             1925      place no later than 31 days following the day on which the application was submitted; and
             1926          (iii) the applicant's temporary membership privileges are terminated if the governing
             1927      body disapproves the application.
             1928          (e) The spouse of a member of any class of private club is entitled to all the rights and
             1929      privileges of the member:
             1930          (i) to the extent permitted by the bylaws or house rules of the private club; and
             1931          (ii) except to the extent restricted by this title.
             1932          (f) The minor child of a member of a class A private club is entitled to all the rights
             1933      and privileges of the member:
             1934          (i) to the extent permitted by the bylaws or house rules of the private club; and
             1935          (ii) except to the extent restricted by this title.
             1936          (3) (a) Each private club shall maintain a current and complete membership record
             1937      showing:
             1938          (i) the date of application of each proposed member;
             1939          (ii) each member's address;
             1940          (iii) the date the governing body approved a member's admission;
             1941          (iv) the date initiation fees and dues were assessed and paid; and
             1942          (v) the serial number of the membership card issued to each member.
             1943          (b) A current record shall also be kept indicating when members are dropped or
             1944      resigned.
             1945          (4) (a) Each private club shall establish in the club bylaws or house rules [initial]
             1946      application fees and [monthly] membership dues[,]:
             1947          (i) as established by commission rules[,]; and
             1948          (ii) which are collected from all members.
             1949          (b) An application fee:


             1950          (i) shall not be less than $4;
             1951          (ii) shall be paid when the applicant applies for membership; and
             1952          (iii) at the discretion of the private club, may be credited toward monthly membership
             1953      dues if the governing body approves the applicant as a member.
             1954          (5) (a) Each private club may, in its discretion, allow an individual to be admitted to or
             1955      use the club premises as a guest only under the following conditions:
             1956          (i) each guest must be previously authorized by one of the following who agrees to host
             1957      the guest into the club:
             1958          (A) an active member of the club; or
             1959          (B) a holder of a current visitor card;
             1960          (ii) each guest must be known by the guest's host based on a preexisting bonafide
             1961      business or personal relationship with the host prior to the guest's admittance to the club;
             1962          (iii) each guest must be accompanied by the guest's host for the duration of the guest's
             1963      visit to the club;
             1964          (iv) each guest's host must remain on the club premises for the duration of the guest's
             1965      visit to the club;
             1966          (v) each guest's host is responsible for the cost of all services extended to the guest;
             1967          (vi) each guest enjoys only those privileges derived from the guest's host for the
             1968      duration of the guest's visit to the club;
             1969          (vii) an employee of the club, while on duty, may not act as a host for a guest;
             1970          (viii) an employee of the club, while on duty, may not attempt to locate a member or
             1971      current visitor card holder to serve as a host for a guest with whom the member or visitor card
             1972      holder has no acquaintance based on a preexisting bonafide business or personal relationship
             1973      prior to the guest's arrival at the club; and
             1974          (ix) a club and its employees may not enter into an agreement or arrangement with a
             1975      club member or holder of a current visitor card to indiscriminately host members of the general
             1976      public into the club as guests.
             1977          (b) Notwithstanding Subsection (5)(a), previous authorization is not required if:
             1978          (i) the licensee is a class B private club; and
             1979          (ii) the guest is a member of the same fraternal organization as the private club
             1980      licensee.


             1981          (6) Each private club may, in its discretion, issue visitor cards to allow individuals to
             1982      enter and use the club premises on a temporary basis under the following conditions:
             1983          (a) each visitor card shall be issued for a period not to exceed three weeks;
             1984          (b) a fee of not less than $4 shall be assessed for each visitor card issued;
             1985          (c) a visitor card shall not be issued to a minor;
             1986          (d) a holder of a visitor card may not host more than seven guests at one time;
             1987          (e) each visitor card issued shall include:
             1988          (i) the visitor's full name and signature;
             1989          (ii) the date the card was issued;
             1990          (iii) the date the card expires;
             1991          (iv) the club's name; and
             1992          (v) the serial number of the card; and
             1993          (f) (i) the club shall maintain a current record of the issuance of each visitor card on the
             1994      club premises; and
             1995          (ii) the record described in Subsection (6)(f)(i) shall:
             1996          (A) be available for inspection by the department; and
             1997          (B) include:
             1998          (I) the name of the person to whom the card was issued;
             1999          (II) the date the card was issued;
             2000          (III) the date the card expires; and
             2001          (IV) the serial number of the card.
             2002          (7) A private club may not sell alcoholic beverages to or allow any [person] patron to
             2003      be admitted to or use the club premises other than:
             2004          (a) a member;
             2005          (b) a visitor who holds a valid visitor card issued under Subsection (6); or
             2006          (c) a guest of:
             2007          (i) a member; or
             2008          (ii) a holder of a current visitor card.
             2009          (8) (a) A minor may not be:
             2010          (i) a member, officer, director, or trustee of a private club;
             2011          (ii) issued a visitor card;


             2012          (iii) admitted into, use, or be on the premises of a class D private club except to the
             2013      extent authorized under Subsections (8)(b) through (g);
             2014          (iv) admitted into, use, or be on the premises of any lounge or bar area, as defined by
             2015      commission rule, of any private club except to the extent authorized under Subsection
             2016      (8)(c)(ii); or
             2017          (v) admitted into, use, or be on the premises of any private club that:
             2018          (A) provides sexually oriented adult entertainment as defined by commission rule or by
             2019      local ordinance; or
             2020          (B) operates as a sexually oriented business as defined by commission rule or by local
             2021      ordinance.
             2022          (b) At the discretion of a class D private club, a minor may be admitted into, use, or be
             2023      on the premises of a class D private club under the following circumstances:
             2024          (i) during periods when no alcoholic beverages are sold, served, otherwise furnished,
             2025      or consumed on the premises, but in no event later than 1 p.m.;
             2026          (ii) when accompanied at all times by a member or holder of a current visitor card who
             2027      is the minor's parent, legal guardian, or spouse; and
             2028          (iii) the private club has a full kitchen and is licensed by the local jurisdiction as a food
             2029      service provider.
             2030          (c) A minor may be employed by a class D private club on the premises of the club if:
             2031          (i) the parent or legal guardian of the minor owns or operates the class D private club;
             2032      or
             2033          (ii) the minor performs maintenance and cleaning services during the hours when the
             2034      club is not open for business.
             2035          (d) (i) [A] Subject to Subsection (8)(d)(ii), a minor who is at least 18 years of age may
             2036      be admitted into, use, or be on the premises of a dance or concert hall if:
             2037          (A) the dance or concert hall is located:
             2038          (I) on the premises of a class D private club; or
             2039          (II) on the property that immediately adjoins the premises of and is operated by a class
             2040      D private club; and
             2041          (B) the commission has issued the class D private club a permit to operate a minor
             2042      dance or concert hall based on the criteria described in Subsection (8)(d)[(ii)] (iii).


             2043          (ii) If the dance or concert hall is located on the premises of a class D private club, a
             2044      minor must be properly hosted in accordance with Subsection (5) by:
             2045          (A) a member; or
             2046          (B) a holder of a current visitor card.
             2047          [(ii)] (iii) The commission may issue a minor dance or concert hall permit if:
             2048          (A) the club's lounge, bar, and alcoholic beverage consumption area is:
             2049          (I) not accessible to minors;
             2050          (II) clearly defined;
             2051          (III) separated from the dance or concert hall area by walls, multiple floor levels, or
             2052      other substantial physical barriers;
             2053          (B) any bar or dispensing area is not visible to minors;
             2054          (C) no consumption of alcoholic beverages may occur in:
             2055          (I) the dance or concert hall area; or
             2056          (II) any area of the club accessible to a minor;
             2057          (D) the club maintains sufficient security personnel to prevent the passing of beverages
             2058      from the club's lounge, bar, or alcoholic beverage consumption areas to:
             2059          (I) the dance or concert hall area; or
             2060          (II) any area of the club accessible to a minor;
             2061          (E) there are separate entrances, exits, and restroom facilities from the club's lounge,
             2062      bar, and alcoholic beverage consumption areas than for:
             2063          (I) the dance or concert hall area; or
             2064          (II) any area accessible to a minor; and
             2065          (F) the club complies with any other restrictions imposed by the commission by rule.
             2066          (e) A minor under 18 years of age who is accompanied at all times by a parent or legal
             2067      guardian who is a member or holder of a current visitor card may be admitted into, use, or be
             2068      on the premises of a concert hall described in Subsection (8)(d)(i) if:
             2069          (i) all requirements of Subsection (8)(d) are met; and
             2070          (ii) all signage, product, and dispensing equipment containing recognition of alcoholic
             2071      beverages is not visible to the minor.
             2072          (f) A minor under 18 years of age but who is 14 years of age or older who is not
             2073      accompanied by a parent or legal guardian may be admitted into, use, or be on the premises of


             2074      a concert hall described in Subsection (8)(d)(i) if:
             2075          (i) all requirements of Subsections (8)(d) and (8)(e)(ii) are met; and
             2076          (ii) there is no alcoholic beverage, sales, service, or consumption on the premises of the
             2077      class D private club.
             2078          (g) The commission may suspend or revoke a minor dance or concert permit issued to
             2079      a class D private club and suspend or revoke the license of the class D private club if:
             2080          (i) the club fails to comply with the restrictions in Subsection (8)(d), (e), or (f);
             2081          (ii) the club sells, serves, or otherwise furnishes alcoholic beverages to a minor;
             2082          (iii) the licensee or a supervisory or managerial level employee of the private club is
             2083      convicted under Title 58, Chapter 37, Utah Controlled Substances Act, on the basis of activities
             2084      that occurred on:
             2085          (A) the licensed premises; or
             2086          (B) the dance or concert hall that is located on property that immediately adjoins the
             2087      premises of and is operated by the class D private club;
             2088          (iv) there are three or more convictions of patrons of the private club under Title 58,
             2089      Chapter 37, Utah Controlled Substances Act, based on activities that occurred on:
             2090          (A) the licensed premises; or
             2091          (B) the dance or concert hall that is located on property that immediately adjoins the
             2092      premises of and is operated by the class D private club;
             2093          (v) there is more than one conviction:
             2094          (A) of:
             2095          (I) the licensee;
             2096          (II) employee of the licensee;
             2097          (III) entertainer contracted by the licensee; or
             2098          (IV) patron of the private club; and
             2099          (B) made on the basis of lewd acts or lewd entertainment prohibited by this title that
             2100      occurred on:
             2101          [(A)] (I) the licensed premises; or
             2102          [(B)] (II) the dance or concert hall that is located on property that immediately adjoins
             2103      the premises of and is operated by the class D private club; or
             2104          (vi) the commission finds acts or conduct contrary to the public welfare and morals


             2105      involving lewd acts or lewd entertainment prohibited by this title that occurred on:
             2106          (A) the licensed premises; or
             2107          (B) the dance or concert hall that is located on property that immediately adjoins the
             2108      premises of and is operated by the class D private club.
             2109          (h) Nothing in this Subsection (8) shall prohibit a class D private club from selling,
             2110      serving, or otherwise furnishing alcoholic beverages in a dance or concert area located on the
             2111      club premises on days and times when the club does not allow minors into those areas.
             2112          (i) Nothing in Subsections (8)(a) through (g) precludes a local authority from being
             2113      more restrictive of a minor's admittance to, use of, or presence on the premises of any private
             2114      club.
             2115          (9) An employee of a club, while on duty, may not:
             2116          (a) consume an alcoholic beverage;
             2117          (b) be intoxicated; or
             2118          (c) act as a host for a guest.
             2119          (10) (a) Each private club shall maintain an expense ledger or record showing in detail
             2120      all expenditures separated by payments for:
             2121          (i) malt or brewed beverages[,];
             2122          (ii) liquor[,];
             2123          (iii) food[,];
             2124          (iv) detailed payroll[,];
             2125          (v) entertainment[,];
             2126          (vi) rent[,];
             2127          (vii) utilities[,];
             2128          (viii) supplies[,]; and
             2129          (ix) all other expenditures.
             2130          (b) The record required by this Subsection (10) shall be:
             2131          (i) kept in a form approved by the department; and
             2132          (ii) balanced each month.
             2133          (c) Each expenditure shall be supported by:
             2134          (i) delivery tickets[,];
             2135          (ii) invoices[,];


             2136          (iii) receipted bills[,];
             2137          (iv) canceled checks[,];
             2138          (v) petty cash vouchers[,]; or
             2139          (vi) other sustaining data or memoranda.
             2140          (d) All invoices and receipted bills for the current calendar or fiscal year documenting
             2141      purchases made by the club shall also be maintained.
             2142          (11) (a) Each private club shall maintain a minute book that is posted currently by the
             2143      club. [This record]
             2144          (b) The minute book required by this Subsection (11) shall contain the minutes of all
             2145      regular and special meetings of the governing body.
             2146          (c) Membership lists shall also be maintained.
             2147          (12) (a) Each private club shall maintain current copies of the club's current bylaws and
             2148      current house rules.
             2149          (b) Changes in the bylaws or house rules:
             2150          (i) are not effective unless submitted to the department within ten days after
             2151      adoption[,]; and
             2152          (ii) become effective 15 days after received by the department unless rejected by the
             2153      department before the expiration of the 15-day period.
             2154          (13) Each private club shall maintain accounting and other records and documents as
             2155      the department may require.
             2156          (14) Any club or person acting for the club, who knowingly forges, falsifies, alters,
             2157      cancels, destroys, conceals, or removes the entries in any of the books of account or other
             2158      documents of the club required to be made, maintained, or preserved by this title or the rules of
             2159      the commission for the purpose of deceiving the commission or the department, or any of their
             2160      officials or employees, is subject to:
             2161          (a) the suspension or revocation of the club's license; and
             2162          (b) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2163          (15) (a) Each private club shall maintain and keep all the records required by this
             2164      section and all other books, records, receipts, and disbursements maintained or [utilized] used
             2165      by the licensee, as the department requires, for a minimum period of three years.
             2166          (b) All records, books, receipts, and disbursements are subject to inspection by


             2167      authorized representatives of the commission and the department.
             2168          (c) The club shall allow the department, through its auditors or examiners, to audit all
             2169      records of the club at times the department considers advisable.
             2170          (d) The department shall audit the records of the licensee at least once annually.
             2171          (16) Each private club shall own or lease premises suitable for the club's activities.
             2172          (17) (a) A private club may not maintain facilities in any manner that barricades or
             2173      conceals the club operation.
             2174          (b) Any member of the commission, authorized department personnel, or any peace
             2175      officer shall, upon presentation of credentials, be admitted immediately to the club and
             2176      permitted without hindrance or delay to inspect completely the entire club premises and all
             2177      books and records of the licensee, at any time during which the same are open for the
             2178      transaction of business to its members.
             2179          (18) Any public advertising related to a private club by the following shall clearly
             2180      identify a club as being "a private club for members":
             2181          (a) the private club;
             2182          (b) the employees or agents of the private club; or
             2183          (c) any person under a contract or agreement with the club.
             2184          (19) A private club must have food available at all times when alcoholic beverages are
             2185      sold, served, or consumed on the premises.
             2186          (20) (a) Liquor may not be purchased by a private club licensee except from state
             2187      stores or package agencies.
             2188          (b) Liquor [so] purchased in accordance with Subsection (20)(a) may be transported by
             2189      the licensee from the place of purchase to the licensed premises.
             2190          (c) Payment for liquor shall be made in accordance with rules established by the
             2191      commission.
             2192          (21) A private club licensee may sell or provide any primary spirituous liquor only in a
             2193      quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             2194      dispensing system approved by the department in accordance with commission rules adopted
             2195      under this title, except that:
             2196          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             2197      system if used as a secondary flavoring ingredient in a beverage subject to the following


             2198      restrictions:
             2199          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             2200      a primary spirituous liquor;
             2201          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             2202          (iii) the private club licensee shall designate a location where flavorings are stored on
             2203      the floor plan provided to the department; and
             2204          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             2205          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             2206      system if used:
             2207          (i) as a flavoring on desserts; and
             2208          (ii) in the preparation of flaming food dishes, drinks, and desserts; and
             2209          (c) each club patron may have no more than 2.75 ounces of spirituous liquor at a time
             2210      before the patron.
             2211          (22) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             2212      exceed five ounces per glass or individual portion.
             2213          (ii) An individual portion may be served to a patron in more than one glass as long as
             2214      the total amount of wine does not exceed five ounces.
             2215          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             2216      Subsection (26)(c).
             2217          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             2218      fixed by the commission to tables of four or more persons.
             2219          (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
             2220      the commission to tables of less than four persons.
             2221          (c) A wine service may be performed and a service charge assessed by the private club
             2222      as authorized by commission rule for wine purchased at the private club.
             2223          (23) (a) Heavy beer may be served in original containers not exceeding one liter at
             2224      prices fixed by the commission.
             2225          (b) A service charge may be assessed by the private club for heavy beer purchased at
             2226      the private club.
             2227          (24) (a) (i) [A] Subject to Subsection (24)(a)(ii), a private club licensed to sell liquor
             2228      may sell beer [in any size container not exceeding two liters, and on draft] for on-premise


             2229      consumption [without obtaining a separate on-premise beer retailer license from the
             2230      commission.]:
             2231          (A) in an open container; and
             2232          (B) on draft.
             2233          (ii) Beer sold pursuant to Subsection (24)(a)(i) shall be in a size of container that does
             2234      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             2235      container that exceeds one liter.
             2236          (b) (i) A private club licensed under this chapter that sells beer pursuant to Subsection
             2237      (24)(a):
             2238          (A) may do so without obtaining a separate on-premise beer retailer license from the
             2239      commission; and
             2240          (B) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             2241      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             2242      inconsistent with or less restrictive than the operational restrictions under this chapter.
             2243          (ii) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             2244      Licenses, required by Subsection (24)(b)(i) may result in a suspension or revocation of the
             2245      private club's:
             2246          (A) state liquor license; and
             2247          (B) alcoholic beverage license issued by the local authority.
             2248          (25) Alcoholic beverages may not be stored, served, or sold in any place other than as
             2249      designated in the licensee's application, unless the licensee first applies for and receives
             2250      approval from the department for a change of location within the private club.
             2251          (26) (a) A patron may only make alcoholic beverage purchases in the private club from
             2252      and be served by a person employed, designated, and trained by the licensee to sell, dispense,
             2253      and serve alcoholic beverages.
             2254          (b) Notwithstanding Subsection (26)(a), a patron who has purchased bottled wine from
             2255      an employee of the private club or has carried bottled wine onto the premises of the private
             2256      club pursuant to Subsection (32) may thereafter serve wine from the bottle to [themselves] the
             2257      patron or others at the patron's table.
             2258          (c) Each club patron may have no more than two alcoholic beverages of any kind at a
             2259      time before the patron.


             2260          (27) The liquor storage area shall remain locked at all times other than those hours and
             2261      days when liquor sales and service are authorized by law.
             2262          (28) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             2263      private club during the following days or hours:
             2264          (i) until after the polls are closed on the day of any:
             2265          (A) regular general election;
             2266          (B) regular primary election; or
             2267          (C) statewide special election;
             2268          (ii) until after the polls are closed on the day of any municipal, special district, or
             2269      school election, but only [if closure is]:
             2270          (A) within the boundaries of the municipality, special district, or school district; and
             2271          (B) if required by local ordinance; and
             2272          (iii) on any other day after 1 a.m. and before 10 a.m.
             2273          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             2274      Licenses, for on-premise beer licenses.
             2275          (c) (i) Notwithstanding Subsections (28)(a) and (b), a private club shall remain open
             2276      for one hour after the private club ceases the sale and service of alcoholic beverages during
             2277      which time a patron of the club may finish consuming:
             2278          (A) any single drink containing spirituous liquor;
             2279          (B) a single serving of wine not exceeding five ounces;
             2280          (C) a single serving of heavy beer; or
             2281          (D) a single serving of beer not exceeding [25] 26 ounces.
             2282          (ii) A club is not required to remain open:
             2283          (A) after all patrons have vacated the premises; or
             2284          (B) during an emergency.
             2285          (d) Between the hours of 2 a.m. and 10 a.m. on any day a private club may not allow a
             2286      patron to remain on the premises to consume alcoholic beverages on the premises.
             2287          (29) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             2288          (a) minor;
             2289          (b) person actually, apparently, or obviously intoxicated;
             2290          (c) known habitual drunkard; or


             2291          (d) known interdicted person.
             2292          (30) (a) (i) Liquor may be sold only at prices fixed by the commission.
             2293          (ii) Liquor may not be sold at discount prices on any date or at any time.
             2294          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             2295      to the licensee.
             2296          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             2297      over consumption or intoxication.
             2298          (d) The price of a single serving of a primary spirituous liquor shall be the same
             2299      whether served as a single drink or in conjunction with another alcoholic beverage.
             2300          (e) An alcoholic beverage may not be sold at a special or reduced price for only certain
             2301      hours of the private club's business day such as a "happy hour."
             2302          (f) The sale or service of more than one alcoholic beverage for the price of a single
             2303      alcoholic beverage is prohibited.
             2304          (g) The sale or service of an indefinite or unlimited number of alcoholic beverages
             2305      during any set period for a fixed price is prohibited.
             2306          (h) A private club licensee may not engage in a promotion involving or offering free
             2307      alcoholic beverages to patrons of the club.
             2308          (31) Alcoholic beverages may not be purchased for a patron of the private club by:
             2309          (a) the licensee[,]; or
             2310          (b) any employee or agent of the licensee[, for a patron of the private club].
             2311          (32) (a) A person may not bring onto the premises of a private club licensee any
             2312      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             2313      discretion of the licensee, bottled wine onto the premises of any private club licensee for
             2314      on-premise consumption.
             2315          (b) Except bottled wine under Subsection (32)(a), a private club or its officers,
             2316      managers, employees, or agents may not allow:
             2317          (i) a person to bring onto the private club premises any alcoholic beverage for
             2318      consumption on the private club premises; or
             2319          (ii) consumption of alcoholic beverages described in Subsection (32)(b)(i) on the
             2320      premises of the private club.
             2321          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server


             2322      or other representative of the licensee upon entering the private club.
             2323          (d) A wine service may be performed and a service charge assessed by the private club
             2324      as authorized by commission rule for wine carried in by a patron.
             2325          (33) (a) Except as provided in Subsection (33)(b), a private club and its employees may
             2326      not permit a patron of the club to carry from the club premises an open container that:
             2327          (i) is used primarily for drinking purposes; and
             2328          (ii) contains any alcoholic beverage.
             2329          (b) A patron may remove the unconsumed contents of a bottle of wine if before
             2330      removal the bottle has been recorked or recapped.
             2331          (34) (a) [Except as provided in Subsection (34)(b), a] A minor may not be employed by
             2332      any class A, B, or C private club to sell, dispense, or handle any alcoholic beverage.
             2333          (b) Notwithstanding Subsection (34)(a), a minor may be employed by a class A or C
             2334      private club to enter the sale at a cash register or other sales recording device.
             2335          (c) Except to the extent authorized in Subsection [ 32A-5-107 ](8)(c), a minor may not
             2336      be employed by or be on the premises of any class D private club.
             2337          (d) A minor may not be employed to work in any lounge or bar area of any class A, B,
             2338      or C private club.
             2339          (35) An employee of a private club, while on duty, may not:
             2340          (a) consume an alcoholic beverage; or
             2341          (b) be intoxicated.
             2342          (36) (a) A private club may not charge for the service or supply of glasses, ice, or
             2343      mixers unless:
             2344          (i) the charges are fixed in the house rules of the club; and
             2345          (ii) a copy of the house rules is kept on the club premises and available at all times for
             2346      examination by patrons of the club.
             2347          (b) A charge or fee made in connection with the sale, service, or consumption of liquor
             2348      may be stated in food or alcoholic beverage menus including:
             2349          (i) a set-up charge;
             2350          (ii) a service charge; or
             2351          (iii) a chilling fee.
             2352          (37) Each private club licensee shall display in a prominent place in the private club:


             2353          (a) the private club license that is issued by the department;
             2354          (b) a list of the types and brand names of liquor being served through its calibrated
             2355      metered dispensing system; and
             2356          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             2357      drugs is a serious crime that is prosecuted aggressively in Utah."
             2358          (38) The following acts or conduct in a private club licensed under this chapter are
             2359      considered contrary to the public welfare and morals, and are prohibited upon the premises:
             2360          (a) employing or using any person in the sale or service of alcoholic beverages while
             2361      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             2362      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             2363      buttocks, vulva, or genitals;
             2364          (b) employing or using the services of any person to mingle with the patrons while the
             2365      person is unclothed or in attire, costume, or clothing described in Subsection (38)(a);
             2366          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             2367      buttocks, anus, or genitals of any other person;
             2368          (d) permitting any employee or person to wear or use any device or covering, exposed
             2369      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
             2370          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             2371      the prohibited activities described in this Subsection (38);
             2372          (f) permitting any person to remain in or upon the premises who exposes to public
             2373      view any portion of his or her genitals or anus; or
             2374          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             2375      depicting:
             2376          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             2377      copulation, flagellation, or any sexual acts prohibited by Utah law;
             2378          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             2379      genitals;
             2380          (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             2381      drawings are used to portray, any of the prohibited activities described in this Subsection (38);
             2382      or
             2383          (iv) scenes wherein a person displays the vulva or the anus or the genitals.


             2384          (39) Nothing in Subsection (38) precludes a local authority from being more restrictive
             2385      of acts or conduct of the type prohibited in Subsection (38).
             2386          (40) (a) Although live entertainment is permitted on the premises of a club liquor
             2387      licensee, a licensee may not allow any person to perform or simulate sexual acts prohibited by
             2388      Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral copulation,
             2389      flagellation, or the touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or
             2390      the displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon
             2391      a stage or at a designated area approved by the commission.
             2392          (b) Nothing in Subsection (40)(a) precludes a local authority from being more
             2393      restrictive of acts or conduct of the type prohibited in Subsection (40)(a).
             2394          (41) A private club may not engage in or permit any form of gambling, or have any
             2395      video gaming device, as defined and proscribed in Title 76, Chapter 10, Part 11, Gambling, on
             2396      the premises of the private club.
             2397          (42) (a) A private club may not close or cease operation for a period longer than 240
             2398      hours, unless:
             2399          (i) the private club licensee notifies the department in writing at least seven days before
             2400      the closing; and
             2401          (ii) the closure or cessation of operation is first approved by the department.
             2402          (b) Notwithstanding Subsection (42)(a), in the case of emergency closure, immediate
             2403      notice of closure shall be made to the department by telephone.
             2404          (c) The department may authorize a closure or cessation of operation for a period not to
             2405      exceed 60 days. The department may extend the initial period an additional 30 days upon
             2406      written request of the private club and upon a showing of good cause. A closure or cessation of
             2407      operation may not exceed a total of 90 days without commission approval.
             2408          (d) The notice required by Subsection (42)(a) shall include:
             2409          (i) the dates of closure or cessation of operation;
             2410          (ii) the reason for the closure or cessation of operation; and
             2411          (iii) the date on which the licensee will reopen or resume operation.
             2412          (e) Failure of the licensee to provide notice and to obtain department authorization
             2413      prior to closure or cessation of operation shall result in an automatic forfeiture of:
             2414          (i) the license; and


             2415          (ii) the unused portion of the license fee for the remainder of the license year effective
             2416      immediately.
             2417          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             2418      result in an automatic forfeiture of:
             2419          (i) the license; and
             2420          (ii) the unused portion of the club's license fee for the remainder of the license year.
             2421          (43) A private club license may not be transferred from one location to another,
             2422      without prior written approval of the commission.
             2423          (44) (a) A private club licensee, may not sell, transfer, assign, exchange, barter, give, or
             2424      attempt in any way to dispose of the license to any other person, whether for monetary gain or
             2425      not.
             2426          (b) A private club license has no monetary value for the purpose of any type of
             2427      disposition.
             2428          Section 15. Section 32A-7-101 is amended to read:
             2429           32A-7-101. Commission's power to grant permits -- Limitations.
             2430          (1) The commission may issue a single event permit to any of the following that is
             2431      conducting a convention, civic, or community enterprise, a bona fide:
             2432          (a) partnership[,];
             2433          (b) corporation[,];
             2434          (c) limited liability company[,];
             2435          (d) church[,];
             2436          (e) political organization[, or];
             2437          (f) incorporated association[, or to a];
             2438          (g) recognized subordinate lodge, chapter, or other local unit [thereof that is conducting
             2439      a convention, civic, or community enterprise.] of an entity described in Subsections (1)(a)
             2440      through (f);
             2441          (h) state agency; or
             2442          (i) political subdivision of the state including:
             2443          (i) a county; or
             2444          (ii) a municipality.
             2445          (2) The single event permit may authorize:


             2446          (a) for a period not to exceed 120 consecutive hours, the storage, sale, service, and
             2447      consumption of liquor at an event at which the storage, sale, service, or consumption of liquor
             2448      is otherwise prohibited by this title; and
             2449          (b) the storage, sale, service, and consumption of beer at the same event for the period
             2450      that the storage, sale, service, or consumption of liquor is authorized under Subsection (2)(a)
             2451      for the permit.
             2452          (3) The commission may not issue more than four single event permits in any one
             2453      calendar year to the same:
             2454          (a) partnership[,];
             2455          (b) corporation[,];
             2456          (c) limited liability company[,];
             2457          (d) church[,];
             2458          (e) political organization[, or];
             2459          (f) incorporated association [or];
             2460          (g) recognized subordinate lodge, chapter, or other local unit [thereof.] of an entity
             2461      described in Subsections (3)(a) through (f);
             2462          (h) state agency; or
             2463          (i) political subdivision of the state including:
             2464          (i) a county; or
             2465          (ii) a municipality.
             2466          (4) (a) The 600 foot and 200 foot proximity limitations to educational, religious, and
             2467      recreational facilities that are applicable to state stores, package agencies, and licensees, do not
             2468      apply to single event permits.
             2469          (b) Nothing in this section, however, prevents the commission from considering the
             2470      proximity of any educational, religious, or recreational facility, or any other relevant factor in
             2471      deciding whether to grant a single event permit.
             2472          Section 16. Section 32A-7-102 is amended to read:
             2473           32A-7-102. Application requirements.
             2474          (1) A qualified applicant for a single event permit shall file a written application with
             2475      the department in a form as the department shall prescribe.
             2476          (2) The application shall be accompanied by:


             2477          (a) a single event permit fee of $100, which is refundable if a permit is not granted and
             2478      shall be returned to the applicant with the application;
             2479          (b) written consent of the local authority;
             2480          (c) a bond as specified by Section 32A-7-105 ;
             2481          (d) the times, dates, location, estimated attendance, nature, and purpose of the event;
             2482          (e) a description or floor plan designating:
             2483          (i) the area in which the applicant proposes that alcoholic beverages be stored;
             2484          (ii) the site from which the applicant proposes that alcoholic beverages be sold or
             2485      served; and
             2486          (iii) the area in which the applicant proposes that alcoholic beverages be allowed to be
             2487      consumed;
             2488          (f) a statement of the purpose of the:
             2489          (i) partnership[,];
             2490          (ii) corporation[,];
             2491          (iii) limited liability company[,];
             2492          (iv) church[,];
             2493          (v) political organization[, or];
             2494          (vi) incorporated association[,]; or
             2495          (vii) recognized subordinate lodge, chapter, or other local unit of an entity described in
             2496      Subsections (2)(f)(i) through (vi);
             2497          (g) a signed consent form stating that authorized representatives of the commission,
             2498      department, or any law enforcement officers will have unrestricted right to enter the premises
             2499      during the event;
             2500          (h) proper verification evidencing that the person signing the application is authorized
             2501      to act on behalf of the:
             2502          (i) partnership[,];
             2503          (ii) corporation[,];
             2504          (iii) limited liability company[,];
             2505          (iv) church[,];
             2506          (v) political organization[, or];
             2507          (vi) incorporated association[, or];


             2508          (vii) recognized subordinate lodge, chapter, or local unit [thereof] of an entity
             2509      described in Subsections (2)(h)(i) through (vi); [and]
             2510          (viii) state agency; or
             2511          (ix) political subdivision of the state including:
             2512          (A) a county; or
             2513          (B) a municipality.
             2514          (i) any other information as the commission or department may direct.
             2515          (3) The applicant need not meet the requirements of Subsections (2)(a), (b), (c), and (f)
             2516      if the applicant is:
             2517          (a) a state agency; or
             2518          (b) a political subdivision of the state including:
             2519          (i) a county; or
             2520          (ii) a municipality.
             2521          Section 17. Section 32A-7-106 is amended to read:
             2522           32A-7-106. Operational restrictions.
             2523          (1) (a) Any organization granted a single event permit and any person involved in the
             2524      storage, sale, or service of alcoholic beverages at the event for which the permit is issued, shall
             2525      abide by:
             2526          (i) this title;
             2527          (ii) the rules of the commission; and
             2528          (iii) the special conditions and requirements provided in this section.
             2529          (b) Failure to comply with Subsection (1)(a):
             2530          (i) may result in:
             2531          (A) an immediate revocation of the permit;
             2532          (B) forfeiture of the surety bond; and
             2533          (C) immediate seizure of all alcoholic beverages present at the event; and
             2534          (ii) disqualifies the organization from applying for a single event permit under this
             2535      chapter, or a temporary special event beer permit under Chapter 10, Part 3, Temporary Special
             2536      Event Beer Permits, for a period of three years from the date of revocation of the permit.
             2537          (c) Any alcoholic beverages seized under this Subsection (1) shall be returned to the
             2538      organization after the event if forfeiture proceedings are not instituted under Section


             2539      32A-13-103 .
             2540          (2) Special conditions and requirements for single event permittees include the
             2541      following:
             2542          (a) (i) All persons involved in the storage, sale, or service of alcoholic beverages at the
             2543      event do so under the supervision and direction of the permittee.
             2544          (ii) All persons involved in the sale or service of alcoholic beverages at the event may
             2545      not, while on duty:
             2546          (A) consume an alcoholic beverage; or
             2547          (B) be intoxicated.
             2548          (b) (i) All liquor stored, sold, served, and consumed at the event shall be purchased by
             2549      the permittee from a state store or package agency.
             2550          (ii) All beer purchased by the permittee shall be purchased from:
             2551          (A) a licensed beer wholesaler; or
             2552          (B) a licensed beer retailer.
             2553          (iii) All alcoholic beverages are considered under the control of the permittee during
             2554      the event.
             2555          (iv) Attendees of the event may not bring any alcoholic beverages onto the premises of
             2556      the event.
             2557          (c) A permittee may not charge more than the maximum amount set forth in the permit
             2558      for any alcoholic beverage.
             2559          (d) Each permittee shall post in a prominent place in the area in which alcoholic
             2560      beverages are being sold, served, and consumed, a copy of the permit, together with a list of the
             2561      operational restrictions and requirements of single event permittees set forth in this section.
             2562          (e) Alcoholic beverages purchased for the event may not be stored, sold, served, or
             2563      consumed in any location other than that described in the application and designated on the
             2564      permit unless the permittee first applies for and receives approval from the commission for a
             2565      change of location.
             2566          (f) (i) A single event permittee may sell or provide a primary spirituous liquor only in a
             2567      quantity not to exceed one ounce per beverage except that additional spirituous liquor may be
             2568      used in a beverage if:
             2569          (A) used as a secondary flavoring ingredient;


             2570          (B) used in conjunction with the primary spirituous liquor;
             2571          (C) the secondary ingredient is not the only spirituous liquor in the beverage; and
             2572          (D) each attendee may have no more than 2.75 ounces of spirituous liquor at a time
             2573      before the attendee.
             2574          (ii) Spirituous liquor need not be dispensed through a calibrated metered dispensing
             2575      system.
             2576          (g) (i) (A) Wine may be sold and served by the glass or an individual portion that does
             2577      not exceed five ounces per glass or individual portion.
             2578          (B) An individual portion may be served to an attendee in more than one glass as long
             2579      as the total amount of wine does not exceed five ounces.
             2580          (C) An individual portion of wine is considered to be one alcoholic beverage under
             2581      Subsection (2)(p).
             2582          (ii) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed
             2583      by the commission.
             2584          (iii) A wine service may be performed and a service charge assessed by the single event
             2585      permittee as authorized by commission rule for wine purchased at the event.
             2586          (h) (i) Heavy beer may be served in original containers not exceeding one liter at prices
             2587      fixed by the commission.
             2588          (ii) A service charge may be assessed by the single event permittee as authorized by
             2589      commission rule for heavy beer purchased at the event.
             2590          (i) (i) [Beer] Subject to Subsection (2)(i)(ii), beer may be sold for on-premise
             2591      consumption:
             2592          (A) in [any size] an open container [not exceeding two liters]; and
             2593          (B) on draft.
             2594          (ii) Beer sold pursuant to Subsection (2)(i)(i) shall be in a size of container that does
             2595      not exceed two liters, except that beer may not be sold to an individual attendee in a size of
             2596      container that exceeds one liter.
             2597          (j) (i) Alcoholic beverages may not be sold, served, or consumed between the hours of
             2598      1 a.m. and 10 a.m.
             2599          (ii) This Subsection (2)(j) does not preclude a local authority from being more
             2600      restrictive with respect to the hours of sale, service, or consumption of alcoholic beverages at a


             2601      temporary single event.
             2602          (k) Alcoholic beverages may not be sold, served, or otherwise furnished until after the
             2603      polls are closed on the day of any:
             2604          (i) regular general election;
             2605          (ii) regular primary election; or
             2606          (iii) statewide special election.
             2607          (l) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             2608          (i) minor;
             2609          (ii) person actually, apparently, or obviously intoxicated;
             2610          (iii) known habitual drunkard; or
             2611          (iv) known interdicted person.
             2612          (m) (i) (A) Liquor may be sold only at prices fixed by the commission.
             2613          (B) Liquor may not be sold at discount prices on any date or at any time.
             2614          (ii) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             2615      to the permittee.
             2616          (iii) An alcoholic beverage may not be sold at a price that encourages over
             2617      consumption or intoxication.
             2618          (iv) An alcoholic beverage may not be sold at a special or reduced price for only
             2619      certain hours of the day of the permitted event.
             2620          (v) The sale or service of more than one alcoholic beverage for the price of a single
             2621      alcoholic beverage is prohibited.
             2622          (vi) The permittee may not engage in a public promotion involving or offering free
             2623      alcoholic beverages to the general public.
             2624          (n) A single event permittee and its employees may not permit an attendee to carry
             2625      from the premises an open container that:
             2626          (i) is used primarily for drinking purposes; and
             2627          (ii) contains any alcoholic beverage.
             2628          (o) A minor may not sell, serve, dispense, or handle any alcoholic beverage at the event.
             2629          (p) Each attendee may have no more than one alcoholic beverage of any kind at a time
             2630      before the patron.
             2631          (3) The following acts or conduct at an event for which a permit is issued under this


             2632      chapter are considered contrary to the public welfare and morals, and are prohibited upon the
             2633      premises:
             2634          (a) employing or using any person in the sale or service of alcoholic beverages while
             2635      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             2636      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             2637      buttocks, vulva, or genitals;
             2638          (b) employing or using the services of any person to mingle with the patrons while the
             2639      person is unclothed or in attire, costume, or clothing described in Subsection (3)(a);
             2640          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             2641      buttocks, anus, or genitals of any other person;
             2642          (d) permitting any employee or person to wear or use any device or covering, exposed
             2643      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
             2644          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             2645      the prohibited activities described in this Subsection (3);
             2646          (f) permitting any person to remain in or upon the premises who exposes to public
             2647      view any portion of his or her genitals or anus;
             2648          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             2649      depicting:
             2650          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             2651      copulation, flagellation, or any sexual acts prohibited by Utah law;
             2652          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             2653      genitals;
             2654          (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             2655      drawings are used to portray, any of the prohibited activities described in this Subsection (3); or
             2656          (iv) scenes wherein a person displays the vulva or the anus or the genitals.
             2657          (4) Nothing in Subsection (3) precludes a local authority from being more restrictive of
             2658      acts or conduct of the type prohibited in Subsection (3).
             2659          (5) (a) Although live entertainment is permitted at the event for which a permit has
             2660      been issued under this chapter, a permittee may not allow any person to perform or simulate
             2661      sexual acts prohibited by Utah law, including sexual intercourse, masturbation, sodomy,
             2662      bestiality, oral copulation, flagellation, the touching, caressing, or fondling of the breast,


             2663      buttocks, anus, or genitals, or the displaying of the pubic hair, anus, vulva, or genitals.
             2664      Entertainers shall perform only upon a stage or at a designated area approved by the
             2665      commission.
             2666          (b) Nothing in Subsection (5)(a) precludes a local authority from being more restrictive
             2667      of acts or conduct of the type prohibited in Subsection (5)(a).
             2668          (6) The permittee shall maintain an expense and revenue ledger or record showing:
             2669          (a) expenditures made for liquor and beer, set-ups, and other ingredients and
             2670      components of alcoholic beverages; and
             2671          (b) the revenue from sale of alcoholic beverages.
             2672          (7) A single event permit may not be transferred.
             2673          (8) A single event permittee may not engage in or allow any form of gambling, or have
             2674      any video gaming device as defined and proscribed by Title 76, Chapter 10, Part 11, Gambling,
             2675      on the premises serviced by the single event permittee.
             2676          Section 18. Section 32A-8-401 is amended to read:
             2677           32A-8-401. Authority and operational restrictions.
             2678          (1) A brewery license allows the licensee to:
             2679          (a) manufacture, brew, store, transport, or export beer and heavy beer;
             2680          (b) sell heavy beer to the department, to military installations, and to out-of-state
             2681      customers;
             2682          (c) sell beer to licensed wholesalers;
             2683          (d) in the case of a small brewer, sell in accordance with Subsection (5) beer
             2684      manufactured by the brewer to [licensed retailers in accordance with Subsection (5); and]:
             2685          (i) a licensed retailer;
             2686          (ii) a holder of a single event permit issued by the commission pursuant to Chapter 7,
             2687      Single Event Permits; and
             2688          (iii) a holder of a temporary retail beer permit issued by the commission for a
             2689      temporary special event pursuant to Chapter 10, Part 3, Temporary Special Event Beer Permits;
             2690      and
             2691          (e) warehouse on its premises alcoholic beverages which it manufactures or purchases
             2692      for manufacturing purposes.
             2693          (2) If considered necessary, the commission or department may:


             2694          (a) require certain alterations to the plant, equipment, or premises;
             2695          (b) require the alteration or removal of any unsuitable alcoholic beverage-making
             2696      equipment or material;
             2697          (c) require the licensee to clean, disinfect, ventilate, or otherwise improve the sanitary
             2698      and working conditions of any plant, premises, and equipment; or
             2699          (d) demand that all books, records, or data pertaining to the materials and ingredients
             2700      used in the manufacture of alcoholic products are available to the commission or department
             2701      upon request.
             2702          (3) A brewery licensee may not sell heavy beer to any person within the state except
             2703      the department and military installations.
             2704          (4) A brewery licensee may not permit any beer to be consumed on its premises, except
             2705      under the [following] circumstances[:] described in this Subsection (4).
             2706          (a) A brewer may allow its off-duty employees to consume beer on its premises
             2707      without charge.
             2708          (b) A brewery licensee may allow any person who can lawfully buy beer or malted
             2709      beverages for wholesale or retail distribution to consume bona fide samples of its product on
             2710      the brewery premises.
             2711          (c) (i) A brewery licensee may operate on its manufacturing premises a retail facility
             2712      allowing consumption on premises of beer in bottles or draft as long as food is also available.
             2713          (ii) Any retail facility located on the premises of a brewery licensee shall be operated or
             2714      supervised by the brewer.
             2715          (iii) In operating an on-site retail facility, a brewery licensee shall comply with the
             2716      requirements of Sections 32A-10-101 and 32A-10-102 .
             2717          (5) (a) Every small brewer licensee located in this state, and every small brewer located
             2718      outside this state that obtains a certificate of approval from the department to sell beer in this
             2719      state under Subsection 32A-8-101 (4), that sells beer manufactured by the small brewer directly
             2720      to a retailer licensee or permittee shall own, lease, or maintain and control a warehouse facility
             2721      located in this state for the storage of all beer to be sold to any retailer licensee or permittee.
             2722          (b) A small brewer may not sell beer to a retailer licensee or permittee unless the beer:
             2723          (i) was manufactured by the small brewer; and
             2724          (ii) has first been placed in the small brewer's warehouse facility in this state.


             2725          (c) (i) Each small brewer warehouse shall maintain complete beer importation,
             2726      inventory, tax, distribution, sales records, and other documents as the department and State Tax
             2727      Commission may require. [These]
             2728          (ii) The records and documents described in Subsection (5)(c)(i) are subject to
             2729      inspection by:
             2730          (A) the department; and [by]
             2731          (B) the State Tax Commission.
             2732          (iii) Any small brewer or person acting for the small brewer, who knowingly forges,
             2733      falsifies, alters, cancels, destroys, conceals, or removes the records or documents required to be
             2734      made, maintained, or preserved by this title or the rules of the commission, or State Tax
             2735      Commission for the purpose of deceiving the commission, department, State Tax Commission,
             2736      or any of their officials or employees, is subject to:
             2737          (A) the immediate suspension or revocation of:
             2738          (I) the brewery license; or
             2739          (II) certificate of approval; and
             2740          (B) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2741          Section 19. Section 32A-8-503 is amended to read:
             2742           32A-8-503. Qualifications.
             2743          (1) (a) The commission may not grant a local industry representative license to any
             2744      person who has been convicted of:
             2745          (i) a felony under any federal or state law;
             2746          (ii) any violation of any federal or state law or local ordinance concerning the sale,
             2747      manufacture, distribution, importing, warehousing, adulteration, or transportation of alcoholic
             2748      beverages;
             2749          (iii) any crime involving moral turpitude; or
             2750          (iv) on two or more occasions within the five years before the day on which the license
             2751      is granted, driving under the influence of alcohol, any drug, or the combined influence of
             2752      alcohol and any drug.
             2753          (b) In the case of a partnership, corporation, or limited liability company the
             2754      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             2755      offense described in Subsection (1)(a):


             2756          (i) a partner;
             2757          (ii) a managing agent;
             2758          (iii) a manager;
             2759          (iv) an officer;
             2760          (v) a director;
             2761          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             2762      the applicant corporation; or
             2763          (vii) a member who owns at least 20% of the applicant limited liability company.
             2764          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             2765      supervisory or managerial capacity for the local industry representative has been convicted of
             2766      any offense described in Subsection (1)(a).
             2767          (2) The commission may immediately suspend or revoke the local industry
             2768      representative license if after the day on which the local industry representative license is
             2769      granted, a person described in Subsection (1)(a), (b), or (c):
             2770          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             2771      to the license being granted; or
             2772          (b) on or after the day on which the license is granted:
             2773          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             2774          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the
             2775      combined influence of alcohol and any drug; and
             2776          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             2777      influence of alcohol and any drug within five years before the day on which the person is
             2778      convicted of the offense described in Subsection (2)(b)(ii)(A).
             2779          (3) The director may take emergency action by immediately suspending the operation
             2780      of the local industry representative license according to the procedures and requirements of
             2781      Title 63, Chapter 46b, Administrative Procedures Act, for the period during which the criminal
             2782      matter is being adjudicated if a person described in Subsection (1)(a), (b), or (c):
             2783          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             2784      or
             2785          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             2786      any drug, or the combined influence of alcohol and any drug; and


             2787          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             2788      influence of alcohol and any drug within five years before the day on which the person is
             2789      arrested on a charge described in Subsection (3)(b)(i).
             2790          (4) (a) (i) The commission may not grant a local industry representative license to any
             2791      individual who has had any type of license, agency, or permit issued under this title revoked
             2792      within the last three years.
             2793          (ii) The commission may not grant a local industry representative license to an
             2794      applicant that is a partnership, corporation, or limited liability company if any partner,
             2795      managing agent, manager, officer, director, stockholder who holds at least 20% of the total
             2796      issued and outstanding stock of an applicant corporation, or member who owns at least 20% of
             2797      an applicant limited liability company is or was:
             2798          (A) a partner or managing agent of any partnership that had any type of license, agency,
             2799      or permit issued under this title revoked within the last three years;
             2800          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             2801      of the total issued and outstanding stock of any corporation that had any type of license,
             2802      agency, or permit issued under this title revoked within the last three years; or
             2803          (C) a manager or member who owns or owned at least 20% of any limited liability
             2804      company that had any type of license, agency, or permit issued under this title revoked within
             2805      the last three years.
             2806          (b) An applicant that is a partnership, corporation, or limited liability company may not
             2807      be granted a local industry representative license if any of the following had any type of
             2808      license, agency, or permit issued under this title revoked while acting in that person's individual
             2809      capacity within the last three years:
             2810          (i) any partner or managing agent of the applicant partnership;
             2811          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             2812      total issued and outstanding stock of the applicant corporation; or
             2813          (iii) any manager or member who owns at least 20% of the applicant limited liability
             2814      company.
             2815          (c) A person acting in an individual capacity may not be granted an industry
             2816      representative license if that person was:
             2817          (i) a partner or managing agent of a partnership that had any type of license, agency, or


             2818      permit issued under this title revoked within the last three years;
             2819          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             2820      total issued and outstanding stock of a corporation that had any type of license, agency, or
             2821      permit issued under this title revoked within the last three years; or
             2822          (iii) a manager or member who owned at least 20% of a limited liability company that
             2823      had any type of license, agency, or permit issued under this title revoked within the last three
             2824      years.
             2825          (5) (a) The commission may not grant a local industry representative license to a
             2826      minor.
             2827          (b) The commission may not grant a local industry representative license to an
             2828      applicant that is a partnership, corporation, or limited liability company if any of the following
             2829      is a minor:
             2830          (i) a partner or managing agent of the applicant partnership;
             2831          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             2832      total issued and outstanding stock of the applicant corporation; or
             2833          (iii) a manager or member who owns at least 20% of the applicant limited liability
             2834      company.
             2835          (6) [The] Except as otherwise provided, the commission may not grant a local industry
             2836      representative license to:
             2837          (a) any holder of any retail license issued under this title[, to] that sells spirituous
             2838      liquor, wine, or heavy beer;
             2839          (b) any employee or agent of any retail license issued under this title[,] that sells
             2840      spirituous liquor, wine, or heavy beer; or [to]
             2841          (c) any individual, partnership, corporation, or limited liability company who holds any
             2842      interest in any retail license issued under this title [except as otherwise provided] that sells
             2843      spirituous liquor, wine, or heavy beer.
             2844          (7) If any individual, partnership, corporation, or limited liability company to whom a
             2845      local industry representative license has been issued under this part no longer possesses the
             2846      qualifications required by this title for obtaining that license, the commission may suspend or
             2847      revoke that license.
             2848          Section 20. Section 32A-8-505 is amended to read:


             2849           32A-8-505. Operational restrictions.
             2850          (1) (a) A local industry representative licensee, employee or agent of the licensee, or
             2851      employee or agent of a manufacturer, supplier, or importer who is conducting business in the
             2852      state, shall abide by the conditions and requirements set forth in this section.
             2853          (b) If any person listed in Subsection (1)(a) knowingly violates or fails to comply with
             2854      the conditions and requirements set forth in this section[,]:
             2855          (i) such violation or failure to comply may result in:
             2856          (A) a suspension or revocation of the license; or
             2857          (B) other disciplinary action taken against individual employees or agents of the
             2858      licensee[,]; and
             2859          (ii) the commission may order the removal of the manufacturer's, supplier's, or
             2860      importer's products from the department's sales list and a suspension of the department's
             2861      purchase of those products for a period determined by the commission if the manufacturer,
             2862      supplier, or importer:
             2863          (A) directly committed the violation[,] or
             2864          (B) solicited, requested, commanded, encouraged, or intentionally aided another to
             2865      engage in the violation.
             2866          (2) A local industry representative licensee, employee or agent of the licensee, or
             2867      employee or agent of a manufacturer, supplier, or importer who is conducting business in the
             2868      state:
             2869          (a) only to the extent authorized by Chapter 12, Criminal Offenses, may:
             2870          (i) assist the department in:
             2871          (A) ordering, shipping, and delivering merchandise[,];
             2872          (B) providing new product notification[,];
             2873          (C) obtaining listing and delisting information[,];
             2874          (D) receiving price quotations[,];
             2875          (E) providing product sales analysis[,];
             2876          (F) conducting shelf management[,]; and
             2877          (G) conducting educational seminars[,]; and [may,]
             2878          (ii) for the purpose of acquiring new listings[,]:
             2879          (A) solicit orders from the department; and


             2880          (B) submit to the department price lists and samples of [their] the products[, but only to
             2881      the extent authorized by Chapter 12, Criminal Offenses] of the manufacturer, supplier, or
             2882      importer;
             2883          (b) may not sell any liquor, wine, or heavy beer within the state except to the
             2884      department and military installations;
             2885          (c) may not ship or transport, or cause to be shipped or transported, into this state or
             2886      from one place to another within this state any liquor, wine, or heavy beer;
             2887          (d) may not sell or furnish any liquor, wine, or heavy beer to any person within this
             2888      state other than to the department and military installations;
             2889          (e) except as otherwise provided, may not advertise products it represents in violation
             2890      of this title or any other federal or state law;
             2891          (f) shall comply with all trade practices provided in Chapter 12, Criminal Offenses; and
             2892          (g) may only provide samples of [their] products of the manufacturer, supplier, or
             2893      importer for tasting and sampling purposes as provided in Section 32A-12-603 by the
             2894      department.
             2895          (3) (a) A local industry representative licensee shall maintain on file with the
             2896      department a current accounts list of the names and addresses of all manufacturers, suppliers,
             2897      and importers the licensee represents.
             2898          (b) The licensee shall notify the department in writing of any changes to the accounts
             2899      listed within 14 days from the date the licensee either acquired or lost the account of a
             2900      particular manufacturer, supplier, or importer.
             2901          (4) A local industry representative licensee shall maintain accounting and other records
             2902      and documents as the department may require for at least three years.
             2903          (5) Any local industry representative licensee or person acting for the licensee, who
             2904      knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the entries in any of
             2905      the books of account or other documents of the licensee required to be made, maintained, or
             2906      preserved by this title or the rules of the commission for the purpose of deceiving the
             2907      commission or the department, or any of their officials or employees, is subject to:
             2908          (a) the immediate suspension or revocation of the industry representative's license; and
             2909          (b) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2910          (6) A local industry representative licensee may, for the purpose of becoming educated


             2911      as to the quality and characteristics of a liquor, wine, or heavy beer product which the licensee
             2912      represents, taste and analyze industry representative samples under the [following]
             2913      conditions[:] listed in this Subsection (6).
             2914          (a) The licensee may not receive more than two industry representative samples of a
             2915      particular type, vintage, and production lot of a particular branded product within a consecutive
             2916      120-day period.
             2917          (b) (i) Each sample of liquor may not exceed 1 liter.
             2918          (ii) Each sample of wine or heavy beer may not exceed 1.5 liters unless that exact
             2919      product is only commercially packaged in a larger size, not to exceed 5 liters.
             2920          (c) Each industry representative sample may only be of a product not presently listed
             2921      on the department's sales list.
             2922          (d) (i) Industry representative samples shall be shipped:
             2923          (A) prepaid by the manufacturer, supplier, or importer;
             2924          (B) by common carrier and not via United States mail; and
             2925          (C) directly to the department's central administrative warehouse office.
             2926          (ii) These samples may not be shipped to any other location within the state.
             2927          (e) Industry representative samples shall be accompanied by a letter from the
             2928      manufacturer, supplier, or importer:
             2929          (i) clearly identifying the product as an "industry representative sample"; and
             2930          (ii) clearly stating:
             2931          (A) the FOB case price of the product; and
             2932          (B) the name of the local industry representative for who it is intended.
             2933          (f) The department shall assess a reasonable handling, labeling, and storage fee for
             2934      each industry representative sample received.
             2935          (g) The department shall affix to each bottle or container a label clearly identifying the
             2936      product as an "industry representative sample".
             2937          (h) The department shall:
             2938          (i) account for and record each industry representative sample received;
             2939          (ii) account for the sample's disposition; and
             2940          (iii) maintain a record of the sample and its disposition for a two-year period.
             2941          (i) Industry representative samples may not leave the premises of the department's


             2942      central administrative warehouse office.
             2943          (j) Licensed industry representatives and their employees and agents may, at regularly
             2944      scheduled days and times established by the department, taste and analyze industry
             2945      representative samples on the premises of the department's central administrative warehouse
             2946      office.
             2947          (k) Any unused contents of an opened product remaining after the product has been
             2948      sampled shall be destroyed by the department under controlled and audited conditions
             2949      established by the department.
             2950          (l) Industry representative samples that are not tasted within 30 days of receipt by the
             2951      department shall be disposed of at the discretion of the department in one of the following
             2952      ways:
             2953          (i) contents destroyed under controlled and audited conditions established by the
             2954      department; or
             2955          (ii) added to the inventory of the department for sale to the public.
             2956          (7) An employee or agent of a local industry representative licensee may not be:
             2957          (a) the holder of any retail license issued under this title that sells spirituous liquor,
             2958      wine, or heavy beer; or
             2959          (b) an employee or agent of any retail licensee issued under this title that sells
             2960      spirituous liquor, wine, or heavy beer.
             2961          (8) (a) A local representative licensee may not sell, transfer, assign, exchange, barter,
             2962      give, or attempt in any way to dispose of the license to any other person, whether for monetary
             2963      gain or not.
             2964          (b) A local industry representative license has no monetary value for the purpose of any
             2965      type of disposition.
             2966          Section 21. Section 32A-10-202 is amended to read:
             2967           32A-10-202. Application and renewal requirements.
             2968          (1) A person seeking an on-premise beer retailer license under this chapter shall file a
             2969      written application with the department, in a form prescribed by the department. The
             2970      application shall be accompanied by:
             2971          (a) a nonrefundable $250 application fee;
             2972          (b) an initial license fee that is refundable if a license is not granted in the following


             2973      amount:
             2974          (i) if the on-premise beer retailer licensee does not operate as a tavern, the initial
             2975      license fee is $150; or
             2976          (ii) if the on-premise beer retailer licensee operates as a tavern, the initial license fee is
             2977      $1,250;
             2978          (c) written consent of the local authority or a license to sell beer at retail for on-premise
             2979      consumption granted by the local authority under Section 32A-10-101 ;
             2980          (d) a copy of the applicant's current business license;
             2981          (e) evidence of proximity to any public or private school, church, public library, public
             2982      playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
             2983      Subsections 32A-10-201 (3) and (4), the application shall be processed in accordance with
             2984      those subsections;
             2985          (f) a bond as specified by Section 32A-10-205 ;
             2986          (g) a floor plan of the premises, including consumption areas and the area where the
             2987      applicant proposes to keep, store, and sell beer;
             2988          (h) evidence that the on-premise beer retailer licensee is carrying public liability
             2989      insurance in an amount and form satisfactory to the department;
             2990          (i) for those licensees that sell more than $5,000 of beer annually, evidence that the
             2991      on-premise beer retailer licensee is carrying dramshop insurance coverage of at least $500,000
             2992      per occurrence and $1,000,000 in the aggregate;
             2993          (j) a signed consent form stating that the on-premise beer retailer licensee will permit
             2994      any authorized representative of the commission, department, or any peace officer unrestricted
             2995      right to enter the licensee premises;
             2996          (k) in the case of an applicant that is a partnership, corporation, or limited liability
             2997      company, proper verification evidencing that the person or persons signing the on-premise beer
             2998      retailer licensee application are authorized to so act on the behalf of the partnership,
             2999      corporation, or limited liability company; and
             3000          (l) any other information the department may require.
             3001          (2) (a) All on-premise beer retailer licenses expire on the last day of February of each
             3002      year.
             3003          (b) (i) [Persons] Except as provided in Subsection (2)(b)(ii), a person desiring to renew


             3004      [their] the person's on-premise beer retailer license shall submit by no later than January 31:
             3005          [(i)] (A) a completed renewal application to the department; and
             3006          [(ii)] (B) a renewal fee in the following amount:
             3007          [(A)] (I) if the on-premise beer retailer licensee does not operate as a tavern, the
             3008      renewal fee is $200; or
             3009          [(B)] (II) if the on-premise beer retailer licensee operates as a tavern, the renewal fee is
             3010      $1,000.
             3011          (ii) A licensee is not required to submit a renewal fee if the licensee is:
             3012          (A) a state agency; or
             3013          (B) a political subdivision of the state including:
             3014          (I) a county; or
             3015          (II) a municipality.
             3016          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             3017      the license, effective on the date the existing license expires.
             3018          (d) Renewal applications shall be in a form as prescribed by the department.
             3019          (3) To ensure compliance with Subsection 32A-10-206 (18), the commission may
             3020      suspend or revoke a beer retailer license if any beer retailer licensee does not immediately
             3021      notify the department of any change in:
             3022          (a) ownership of the beer retailer;
             3023          (b) for a corporate owner, the:
             3024          (i) corporate officers or directors; and
             3025          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             3026      corporation; or
             3027          (c) for a limited liability company:
             3028          (i) managers; or
             3029          (ii) members owning at least 20% of the limited liability company.
             3030          (4) [If the applicant is a county, municipality, or other political subdivision, it] An
             3031      applicant need not meet the requirements of Subsections (1)(a), (b), (c), (d), and (f)[.] if the
             3032      applicant is:
             3033          (a) a state agency; or
             3034          (b) a political subdivision of the state including:


             3035          (i) a county; or
             3036          (ii) a municipality.
             3037          (5) (a) [Only] Except as provided in Subsection (5)(c), only one state on-premise beer
             3038      retailer license is required for each building or resort facility owned or leased by the same
             3039      applicant. [Separate]
             3040          (b) Except as provided in Subsection (5)(c), separate licenses are not required for each
             3041      retail beer dispensing outlet located in the same building or on the same resort premises owned
             3042      or operated by the same applicant.
             3043          (c) (i) Subsections (5)(a) and (5)(b) apply only if all of the retail beer dispensing outlets
             3044      in the building or resort facility operate in the same manner.
             3045          (ii) If the condition described in Subsection (5)(c)(i) is not met:
             3046          (A) one state on-premise beer retailer tavern license is required for all outlets in the
             3047      same building or on the same resort premises that operate as a tavern; and
             3048          (B) one state on-premise beer retailer license is required for all outlets in the same
             3049      building or on the same resort premises that do not operate as a tavern.
             3050          Section 22. Section 32A-10-206 is amended to read:
             3051           32A-10-206. Operational restrictions.
             3052          Each person granted an on-premise beer retailer license and the employees and
             3053      management personnel of the on-premise beer retailer licensee shall comply with the following
             3054      conditions and requirements. Failure to comply may result in a suspension or revocation of the
             3055      license or other disciplinary action taken against individual employees or management
             3056      personnel.
             3057          (1) (a) [On-premise] Subject to Subsection (1)(b), a beer retailer [licensees] licensee
             3058      may sell beer for on-premise consumption:
             3059          (i) in an open [containers, in any size not exceeding two liters,] container; and
             3060          (ii) on draft.
             3061          (b) Beer sold pursuant to Subsection (1)(a) shall be in a size of container that does not
             3062      exceed two liters, except that beer may not be sold to an individual patron in a size of container
             3063      that exceeds one liter.
             3064          (2) Liquor may not be stored or sold on the premises of any on-premise beer retailer
             3065      licensee.


             3066          (3) A patron of the on-premise beer retailer may only make purchases from and be
             3067      served by a person employed, designated, and trained by the licensee to sell and serve beer.
             3068          (4) (a) Beer may not be sold, offered for sale, served, or otherwise furnished at any
             3069      on-premise beer retailer establishment after 1 a.m. and before 10 a.m.
             3070          (b) Beer may not be sold, served, or otherwise furnished to any:
             3071          (i) minor;
             3072          (ii) person actually, apparently, or obviously intoxicated;
             3073          (iii) known habitual drunkard; or
             3074          (iv) known interdicted person.
             3075          (c) (i) Notwithstanding Subsection (4)(a), a tavern licensed under this chapter shall
             3076      remain open for one hour after the tavern ceases the sale and service of alcoholic beverages
             3077      during which time a patron of the tavern may finish consuming a single serving of beer not
             3078      exceeding [25] 26 ounces.
             3079          (ii) A tavern is not required to remain open:
             3080          (A) after all patrons have vacated the premises; or
             3081          (B) during an emergency.
             3082          (d) Between the hours of 2 a.m. and 10 a.m. on any day a tavern may not allow a patron
             3083      to remain on the premises to consume alcoholic beverages on the premises.
             3084          (5) (a) Beer may not be sold at less than the cost of the beer to the licensee.
             3085          (b) Beer may not be sold at a special or reduced price that encourages over
             3086      consumption or intoxication.
             3087          (c) Beer may not be sold at a special or reduced price for only certain hours of the beer
             3088      retailer's business day such as a "happy hour."
             3089          (d) The sale or service of more than one alcoholic beverage for the price of a single
             3090      alcoholic beverage is prohibited.
             3091          (e) The sale or service of an indefinite or unlimited number of alcoholic beverages
             3092      during any set period for a fixed price is prohibited.
             3093          (f) An on-premise beer licensee may not engage in a public promotion involving or
             3094      offering free alcoholic beverages to the general public.
             3095          (6) Beer sold in sealed containers by the on-premise beer retailer licensee may be
             3096      removed from the on-premise beer retailer premises.


             3097          (7) (a) A person may not bring onto the premises of an on-premise beer retailer licensee
             3098      any alcoholic beverage for on-premise consumption.
             3099          (b) An on-premise beer retailer licensee or its officers, managers, employees, or agents
             3100      may not:
             3101          (i) allow a person to bring onto the on-premise beer retailer licensee premises any
             3102      alcoholic beverage for on-premise consumption; or
             3103          (ii) allow consumption of any such alcoholic beverage on its premises.
             3104          (8) An on-premise beer retailer licensee and its employees may not permit a patron to
             3105      carry from the premises an open container that:
             3106          (a) is used primarily for drinking purposes; and
             3107          (b) contains any alcoholic beverage.
             3108          (9) (a) Except as provided in Subsection (9)(b), a minor may not be:
             3109          (i) employed by or be on the premises of an on-premise beer retailer licensee to sell,
             3110      dispense, or otherwise furnish beer; or
             3111          (ii) on the premises of any tavern.
             3112          (b) Notwithstanding Subsection (9)(a), a minor may be employed to enter the sale at a
             3113      cash register or other sales recording device on the premises of an on-premise beer retailer that
             3114      is not a tavern.
             3115          (10) An employee of a licensee, while on duty, may not:
             3116          (a) consume an alcoholic beverage; or
             3117          (b) be intoxicated.
             3118          (11) Each on-premise beer retailer licensee shall display in a prominent place in the
             3119      on-premise beer retailer licensee:
             3120          (a) the on-premise beer retailer license that is issued by the department; and
             3121          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             3122      drugs is a serious crime that is prosecuted aggressively in Utah."
             3123          (12) The following acts or conduct in an on-premise beer retailer outlet licensed under
             3124      this part are considered contrary to the public welfare and morals, and are prohibited upon the
             3125      premises:
             3126          (a) employing or using any person in the sale or service of alcoholic beverages while
             3127      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the


             3128      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             3129      buttocks, vulva, or genitals;
             3130          (b) employing or using the services of any person to mingle with the patrons while the
             3131      person is unclothed or in attire, costume, or clothing as described in Subsection (12)(a);
             3132          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             3133      buttocks, anus, or genitals of any other person;
             3134          (d) permitting any employee or person to wear or use any device or covering, exposed
             3135      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
             3136          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             3137      the prohibited activities described in this section;
             3138          (f) permitting any person to remain in or upon the premises who exposes to public
             3139      view any portion of his or her genitals or anus; or
             3140          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             3141      depicting:
             3142          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             3143      copulation, flagellation, or any sexual acts that are prohibited by Utah law;
             3144          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             3145      genitals;
             3146          (iii) scenes wherein artificial devices or inanimate objects are employed to depict, or
             3147      drawings are employed to portray, any of the prohibited activities described in this section; or
             3148          (iv) scenes wherein a person displays the vulva or the anus or the genitals.
             3149          (13) Nothing in Subsection (12) precludes a local authority from being more restrictive
             3150      of acts or conduct of the type prohibited in Subsection (12).
             3151          (14) (a) Although live entertainment is permitted on the premises of an on-premise
             3152      beer retailer licensee, a licensee may not permit any person to perform or simulate sexual acts
             3153      prohibited by Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral
             3154      copulation, flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or
             3155      genitals, or the displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform
             3156      only upon a stage or at a designated area approved by the commission.
             3157          (b) Nothing in Subsection (14)(a) precludes a local authority from being more
             3158      restrictive of acts or conduct of the type prohibited in Subsection (14)(a).


             3159          (15) An on-premise beer retailer licensee may not engage in or permit any form of
             3160      gambling, or have any video gaming device, as defined and proscribed in Title 76, Chapter 10,
             3161      Part 11, Gambling, on the premises of the on-premise beer retailer licensee.
             3162          (16) (a) Each on-premise beer retailer licensee shall maintain accounting and other
             3163      records and documents as the department may require.
             3164          (b) Any on-premise beer retailer licensee or person acting for the on-premise beer
             3165      retailer licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes
             3166      the entries in any of the books of account or other documents of the on-premise beer retailer
             3167      licensee required to be made, maintained, or preserved by this title or the rules of the
             3168      commission for the purpose of deceiving the commission or the department, or any of their
             3169      officials or employees, is subject to:
             3170          (i) the immediate suspension or revocation of the on-premise beer retailer license; and
             3171          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             3172          (17) An on-premise beer retailer license may not be transferred from one location to
             3173      another, without prior written approval of the commission.
             3174          (18) (a) An on-premise beer retailer licensee may not sell, transfer, assign, exchange,
             3175      barter, give, or attempt in any way to dispose of the license to any person, whether for
             3176      monetary gain or not.
             3177          (b) An on-premise beer retailer license has no monetary value for the purpose of any
             3178      type of disposition.
             3179          Section 23. Section 32A-10-302 is amended to read:
             3180           32A-10-302. Application requirements.
             3181          (1) (a) A person seeking a temporary special event beer permit shall file a written
             3182      application with the department in a form prescribed by the department.
             3183          (b) The application required by this section shall be accompanied by:
             3184          (i) a permit fee of $75, which:
             3185          (A) is refundable if a permit is not granted; and
             3186          (B) shall be returned to the applicant with the application if the permit is not granted;
             3187          (ii) (A) written consent of the local authority; or
             3188          (B) a temporary permit granted by the local authority under Section 32A-10-101 ;
             3189          (iii) a bond as specified by Section 32A-10-305 ;


             3190          (iv) the times, dates, location, estimated attendance, nature, and purpose of the
             3191      temporary special event;
             3192          (v) a description or floor plan designating:
             3193          (A) the area in which the applicant proposes that beer be stored;
             3194          (B) the site from which the applicant proposes that beer be sold or served; and
             3195          (C) the area in which the applicant proposes that beer be allowed to be consumed;
             3196          (vi) a statement of the purpose of the temporary special event;
             3197          (vii) a signed consent form stating that authorized representatives of the commission,
             3198      department, or any law enforcement officers will have unrestricted right to enter the premises
             3199      during the temporary special event;
             3200          (viii) in the case of an applicant that is a partnership, corporation, or limited liability
             3201      company, proper verification evidencing that the person or persons signing the application are
             3202      authorized to so act on behalf of the partnership, corporation, or limited liability company; and
             3203          (ix) any other information the commission or department may require.
             3204          (2) [If the applicant is a county, municipality, or other political subdivision, it] An
             3205      applicant need not meet the requirements of Subsection (1)(b)(i), (ii), or (iii)[.] if the applicant
             3206      is:
             3207          (a) a state agency; or
             3208          (b) a political subdivision of the state including:
             3209          (i) a county; or
             3210          (ii) a municipality.
             3211          Section 24. Section 32A-10-306 is amended to read:
             3212           32A-10-306. Operational restrictions.
             3213          (1) (a) Any person granted a temporary special event beer permit and any person
             3214      involved in the storage, sale, or service of beer at the event for which a temporary special event
             3215      the permit is issued, shall abide by this title, the rules of the commission, and the special
             3216      conditions and requirements provided in this section.
             3217          (b) Failure to comply as provided in Subsection (1)(a):
             3218          (i) may result in:
             3219          (A) an immediate revocation of the permit;
             3220          (B) forfeiture of the surety bond; and


             3221          (C) immediate seizure of all beer present at the event; and
             3222          (ii) disqualifies the organization from applying for a temporary special event beer
             3223      permit under this part or a single event permit under Chapter 7, Single Event Permits, for a
             3224      period of three years from the date of revocation of the temporary special event permit.
             3225          (c) Any beer seized under this Subsection (1) shall be returned to the organization after
             3226      the event if forfeiture proceedings are not instituted under Section 32A-13-103 .
             3227          (2) Special conditions and requirements for temporary special event beer permittees
             3228      include the following:
             3229          (a) (i) All persons involved in the storage, sale, or service of beer at the temporary
             3230      special event do so under the supervision and direction of the permittee.
             3231          (ii) All persons involved in the sale or service of beer at the temporary special event
             3232      may not, while on duty:
             3233          (A) consume an alcoholic beverage; or
             3234          (B) be intoxicated.
             3235          (b) (i) All beer stored, sold, served, and consumed at the temporary special event shall
             3236      be purchased by the permittee from a licensed beer wholesaler or retailer.
             3237          (ii) All beer is considered under the control of the permittee during the temporary
             3238      special event.
             3239          (iii) An attendee of the temporary special event may not bring any alcoholic beverages
             3240      onto the premises of the temporary special event.
             3241          (c) Each permittee shall post in a prominent place in the area in which beer is being
             3242      sold, served, and consumed:
             3243          (i) a copy of the permit; and
             3244          (ii) a list of the operational restrictions and requirements of temporary special event
             3245      beer permittees set forth in this section.
             3246          (d) Beer purchased for a temporary special event may not be stored, sold, served, or
             3247      consumed in any location other than that described in the application and designated on the
             3248      temporary special event permit unless the permittee first applies for and receives approval from
             3249      the commission for a change of location.
             3250          (e) (i) [Beer] Subject to Subsection (2)(e)(ii), beer may be sold for on-premise
             3251      consumption:


             3252          (A) in [any size] an open container [not exceeding two liters]; and
             3253          (B) on draft.
             3254          (ii) Beer sold pursuant to Subsection (2)(e)(i) shall be in a size of container that does
             3255      not exceed two liters, except that beer may not be sold to an individual attendee in a size of
             3256      container that exceeds one liter.
             3257          (f) (i) Beer may not be sold, offered for sale, served, otherwise furnished, or consumed
             3258      between the hours of 1 a.m. and 10 a.m.
             3259          (ii) This Subsection (2)(f) does not preclude a local authority from being more
             3260      restrictive with respect to the hours of sale, service, or consumption of beer at a temporary
             3261      special event.
             3262          (g) Beer may not be sold, served, or otherwise furnished to any:
             3263          (i) minor;
             3264          (ii) person actually, apparently, or obviously intoxicated;
             3265          (iii) known habitual drunkard; or
             3266          (iv) known interdicted person.
             3267          (h) (i) Beer may not be sold at less than the cost of the beer to the permittee.
             3268          (ii) Beer may not be sold at a price that encourages over consumption or intoxication.
             3269          (iii) Beer may not be sold at a special or reduced price for only certain hours of the day
             3270      of the permitted event.
             3271          (iv) The sale or service of more than one beer beverage for the price of a single beer
             3272      beverage is prohibited.
             3273          (v) The permittee may not engage in a public promotion involving or offering free beer
             3274      to the general public.
             3275          (i) The permittee and its employees may not permit an attendee to carry from the
             3276      premises an open container that:
             3277          (i) is used for drinking purposes; and
             3278          (ii) contains any alcoholic beverage.
             3279          (j) A minor may not sell, serve, dispense, or handle any beer at a temporary special
             3280      event.
             3281          (3) The following acts or conduct at an event for which a permit is issued under this
             3282      part are considered contrary to the public welfare and morals, and are prohibited upon the


             3283      premises:
             3284          (a) employing or using any person in the sale or service of alcoholic beverages while
             3285      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             3286      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             3287      buttocks, vulva, or genitals;
             3288          (b) employing or using the services of any person to mingle with the patrons while the
             3289      person is unclothed or in attire, costume, or clothing described in Subsection (3)(a);
             3290          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             3291      buttocks, anus, or genitals of any other person;
             3292          (d) permitting any employee or person to wear or use any device or covering, exposed
             3293      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
             3294          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             3295      the prohibited activities described in this Subsection (3);
             3296          (f) permitting any person to remain in or upon the premises who exposes to public
             3297      view any portion of his or her genitals or anus; or
             3298          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             3299      depicting:
             3300          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             3301      copulation, flagellation, or any sexual acts prohibited by Utah law;
             3302          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             3303      genitals;
             3304          (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             3305      drawings are used to portray, any of the prohibited activities described in this Subsection (3); or
             3306          (iv) scenes wherein a person displays the vulva, anus, or the genitals.
             3307          (4) Nothing in Subsection (3) precludes a local authority from being more restrictive of
             3308      acts or conduct of the type prohibited in Subsection (3).
             3309          (5) (a) Although live entertainment is permitted at the event for which a permit has
             3310      been issued under this chapter, a permittee may not allow any person to perform or simulate
             3311      sexual acts prohibited by Utah law, including sexual intercourse, masturbation, sodomy,
             3312      bestiality, oral copulation, flagellation, the touching, caressing, or fondling of the breast,
             3313      buttocks, anus, or genitals, or the displaying of the pubic hair, anus, vulva, or genitals.


             3314      Entertainers shall perform only upon a stage or at a designated area approved by the
             3315      commission.
             3316          (b) Nothing in Subsection (5)(a) precludes a local authority from being more restrictive
             3317      of acts or conduct of the type prohibited in Subsection (5)(a).
             3318          (6) The permittee shall maintain an expense and revenue ledger or record showing:
             3319          (a) expenditures made for beer; and
             3320          (b) the revenue from sale of beer.
             3321          (7) A temporary special event beer permit may not be transferred.
             3322          (8) A temporary special event beer permittee may not engage in or allow any form of
             3323      gambling, or have any video gaming device as defined and proscribed by Title 76, Chapter 10,
             3324      Part 11, Gambling, on the premises serviced by the permittee.
             3325          Section 25. Section 32A-11-101 is amended to read:
             3326           32A-11-101. Commission's power to issue licenses.
             3327          (1) (a) The commission may issue beer wholesaling licenses for the import, purchase,
             3328      storage, sale, and distribution of beer.
             3329          (b) The license entitles the licensee to:
             3330          (i) purchase and import beer into the state;
             3331          (ii) store beer in approved warehouses; and
             3332          (iii) sell and distribute beer directly to:
             3333          (A) a licensed beer [retailers; and] retailer;
             3334          (B) a holder of a single event permit issued by the commission pursuant to Chapter 7,
             3335      Single Event Permits; and
             3336          [(B) holders] (C) a holder of a temporary retail beer [permits] permit issued by the
             3337      commission for a temporary special [events] event pursuant to Chapter 10, Part 3, Temporary
             3338      Special Event Beer Permits.
             3339          (2) (a) A person may not import, purchase, store, sell, or distribute beer to retailers or
             3340      act in any way as a beer wholesaler unless the person has been issued a beer wholesaler's
             3341      license by the commission.
             3342          (b) Nothing in this section precludes a small brewer from selling beer it has
             3343      manufactured directly to a licensed beer retailer.
             3344          (c) Violation of this subsection is a class A misdemeanor.


             3345          (3) The commission may prescribe by policy, directive, or rule, consistent with this
             3346      title, the general operational requirements of wholesaling licensees relating to physical
             3347      facilities, conditions of purchase, storage, sale, importation, distribution, or transportation of
             3348      beer within the state.
             3349          Section 26. Section 32A-11-102 is amended to read:
             3350           32A-11-102. Application and renewal requirements.
             3351          (1) A person seeking a beer wholesaling license under this chapter shall file a written
             3352      application with the department, in a form prescribed by the department. The application shall
             3353      be accompanied by:
             3354          (a) a nonrefundable $250 application fee;
             3355          (b) an initial license fee of $2,000, which is refundable if a license is not granted;
             3356          (c) written consent of the local authority;
             3357          (d) a copy of the applicant's current business license;
             3358          (e) a bond as specified in Section 32A-11-105 ;
             3359          (f) evidence that the applicant is carrying public liability insurance in an amount and
             3360      form satisfactory to the department;
             3361          (g) a signed consent form stating that the licensee will permit any authorized
             3362      representative of the commission, department, or any peace officer unrestricted right to enter
             3363      the licensed premises;
             3364          (h) a statement of the brands of beer the applicant is authorized to sell and distribute;
             3365          (i) a statement of all geographical areas in which the applicant is authorized to sell and
             3366      distribute beer;
             3367          (j) in the case of an applicant that is a partnership, corporation, or limited liability
             3368      company, proper verification evidencing that the person or persons signing the beer
             3369      wholesaling license application are authorized to so act on behalf of the partnership,
             3370      corporation, or limited liability company; and
             3371          (k) any other documents and evidence as the department may direct.
             3372          (2) (a) (i) All beer wholesaling licenses expire on December 31 of each year.
             3373          (ii) [Persons] A person desiring to renew [their] that person's beer wholesaling license
             3374      shall submit by no later than November 30 of the year the license expires:
             3375          (A) a completed renewal application to the department; and


             3376          (B) a renewal fee in the following amount:
             3377          Case Sales in Previous License Year for the Licensee            Renewal Fee
             3378          under 500,000 cases                                $1,000
             3379          equals or exceeds 500,000 cases but less than 1,000,000 cases        $2,000
             3380          equals or exceeds 1,000,000 cases                        $3,000.
             3381          (iii) Failure to meet the renewal requirements results in an automatic forfeiture of the
             3382      license effective on the date the existing license expires.
             3383          (iv) Renewal applications shall be in a form prescribed by the department.
             3384          (b) The annual renewal fee prescribed in this Subsection (2) is independent of any like
             3385      license fee which may be assessed by the local authority of the city or county in which the
             3386      wholesaler's warehouse is located. Any local fees may not exceed $300. Payment of local fees
             3387      shall be made directly to the local authority assessing [them] the local fees.
             3388          (3) To ensure compliance with Subsection 32A-11-106 [(1)(g)] (7), the commission
             3389      may suspend or revoke a beer wholesaling license if a beer wholesaling licensee does not
             3390      immediately notify the department of any change in:
             3391          (a) ownership of the licensee;
             3392          (b) for a corporate owner, the:
             3393          (i) corporate officers or directors; or
             3394          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             3395      corporation; or
             3396          (c) for a limited liability company:
             3397          (i) managers; or
             3398          (ii) members owning at least 20% of the limited liability company.
             3399          Section 27. Section 32A-11-106 is amended to read:
             3400           32A-11-106. Operational restrictions.
             3401          Each person granted a beer wholesaling license, and the employees and management
             3402      personnel of the licensee, shall comply with the following conditions and requirements.
             3403      Failure to comply may result in a suspension or revocation of the beer wholesaling license or
             3404      other disciplinary action taken against individual employees or management personnel of the
             3405      licensee.
             3406          (1) A licensee may not wholesale any beer manufactured within the state by a brewer


             3407      who is not licensed by the commission as a manufacturing licensee.
             3408          (2) A licensee may not wholesale any beer manufactured out of state by a brewer who
             3409      has not obtained a certificate of approval from the department.
             3410          (3) (a) A licensee may not sell or distribute beer to any person within the state except:
             3411          (i) a licensed beer [retailers or holders] retailer;
             3412          (ii) a holder of a single event permit issued by the commission pursuant to Chapter 7,
             3413      Single Event Permits; or
             3414          (iii) a holder of a temporary retail beer [permits] permit issued by the commission for a
             3415      temporary special [events] event pursuant to Chapter 10, Part 3, Temporary Special Event Beer
             3416      Permits.
             3417          (b) A violation of this Subsection (3) is a class A misdemeanor.
             3418          (4) (a) A licensee may not sell or distribute any beer to any retailer outside of the
             3419      geographic area designated on its application, except that if a licensee is temporarily unable to
             3420      supply retail dealers within its authorized geographical area, the department may grant
             3421      temporary authority to another licensed wholesaler who distributes the same brand in another
             3422      area to supply retailers.
             3423          (b) A violation of this Subsection (4) is a class B misdemeanor.
             3424          (5) (a) Every licensee shall own, lease, or otherwise control and maintain a warehouse
             3425      facility located in this state for the receipt, storage, and further distribution of all beer sold by
             3426      the licensee to any person within the state.
             3427          (b) A licensee may not sell beer to any person in this state, other than the department,
             3428      unless the beer has first been:
             3429          (i) physically removed from the vehicle used to transport the beer from the supplier to
             3430      the licensee; and
             3431          (ii) delivered into the actual possession and control of the licensee in its warehouse or
             3432      other facility.
             3433          (6) (a) Each beer wholesaling licensee shall maintain accounting and other records and
             3434      documents as the department may require.
             3435          (b) Any licensee or person acting for the licensee, who knowingly forges, falsifies,
             3436      alters, cancels, destroys, conceals, or removes the entries in any of the books of account or
             3437      other documents of the licensee required to be made, maintained, or preserved by this title or


             3438      the rules of the commission for the purpose of deceiving the commission or the department, or
             3439      any of their officials or employees, is subject to:
             3440          (i) the immediate suspension or revocation of the beer wholesaling license; and
             3441          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             3442          (7) A licensee may not sell, transfer, assign, exchange, barter, give, or attempt in any
             3443      way to dispose of the beer wholesaling license to any person, whether for monetary gain or not,
             3444      unless it is done:
             3445          (a) in accordance with the commission rules; and
             3446          (b) after written consent has been given by the commission.
             3447          (8) A licensee may not sell or distribute any alcoholic beverage that is not clearly
             3448      labeled in a manner reasonably calculated to put the public on notice that the beverage is an
             3449      alcoholic beverage. The beverage shall bear the label "alcoholic beverage" or a manufacturer's
             3450      label which in common usage apprises the general public that the beverage contains alcohol.
             3451          Section 28. Section 32A-11a-107 is amended to read:
             3452           32A-11a-107. Sale or transfer of business assets or ownership.
             3453          (1) Without the prior written approval of a sale or transfer by the supplier:
             3454          (a) a wholesaler may not sell or transfer its business, or any portion of its business,
             3455      including the distributorship agreement to a successor in interest; and
             3456          (b) the owner of an interest in a wholesaler may not sell or transfer all or part of the
             3457      owner's interest in the wholesaler to a successor in interest.
             3458          (2) A supplier may not unreasonably withhold or delay its approval of a sale or
             3459      transfer, including the wholesaler's rights and obligations under the terms of the distributorship
             3460      agreement, if the person to be substituted meets reasonable standards that are imposed:
             3461          (a) by the supplier pursuant to the distributorship agreement; and
             3462          (b) on other wholesalers of that supplier of the same general class, taking into account
             3463      the size and location of the sales territory and market to be served.
             3464          (3) Notwithstanding Subsection (1), a wholesaler may not assign or transfer its license
             3465      in violation of Subsection 32A-11-106 [(1)(g)](7).
             3466          Section 29. Section 32A-12-102 is amended to read:
             3467           32A-12-102. Special burdens of proof -- Inferences and presumptions.
             3468          (1) In any prosecution of an offense defined in this title or in any proceeding brought to


             3469      enforce this title:
             3470          (a) it is not necessary that the state or commission establish the precise description or
             3471      quantity of the alcoholic beverages or products or the precise consideration, if any, given or
             3472      received for the alcoholic beverages or products;
             3473          (b) there is an inference, absent proof to the contrary, that the alcoholic beverage or
             3474      product in question is [intoxicating] an alcoholic beverage or product if the witness describes it
             3475      [as intoxicating or]:
             3476          (i) as an alcoholic beverage or product;
             3477          (ii) by a name that is commonly applied to an [intoxicating] alcoholic beverage or
             3478      product; or
             3479          (iii) as intoxicating;
             3480          (c) if it is alleged that an association or corporation has violated this title, the fact of the
             3481      incorporation of the association or corporation is presumed absent proof to the contrary;
             3482          (d) a certificate or report signed or purporting to be signed by any state chemist,
             3483      assistant state chemist, or state crime laboratory chemist, as to the analysis or ingredients of any
             3484      alcoholic beverage or product is:
             3485          (i) prima facie evidence:
             3486          (A) of the facts stated in that certificate or report; and
             3487          (B) of the authority of the person giving or making the report[,]; and [is]
             3488          (ii) admissible in evidence without any proof of appointment or signature absent proof
             3489      to the contrary; and
             3490          (e) a copy of entries made in the records of the United States internal revenue collector,
             3491      certified by the collector or a qualified notary public, showing the payment of the United States
             3492      internal revenue special tax for the manufacture or sale of alcoholic beverages or products is
             3493      prima facie evidence of the manufacture or sale by the party named in the entry within the
             3494      period set forth in the record.
             3495          (2) (a) In proving the unlawful sale, disposal, gift, or purchase, gratuitous or otherwise,
             3496      or consumption of alcoholic beverages or products, it is not necessary that the state or
             3497      commission establish that any money or other consideration actually passed or that an alcoholic
             3498      beverage or product was actually consumed if the court or trier of fact is satisfied that:
             3499          (i) a transaction in the nature of a sale, disposal, gift, or purchase actually occurred; or


             3500      [that]
             3501          (ii) any consumption of alcoholic beverages or products was about to occur.
             3502          (b) Proof of consumption or intended consumption of an alcoholic beverage or product
             3503      on premises on which consumption is prohibited, by some person not authorized to consume
             3504      alcoholic beverages or products on those premises, is evidence that an alcoholic beverage or
             3505      product was sold or given to or purchased by the person consuming, about to consume, or
             3506      carrying away the alcoholic beverage or product as against the occupant of the premises.
             3507          Section 30. Section 32A-12-201 is amended to read:
             3508           32A-12-201. Unlawful sale or furnishing.
             3509          (1) It is unlawful for any person in the business of selling liquor, or any manufacturer,
             3510      supplier, or importer of liquor, or their officers, managers, employees, or agents to sell, ship,
             3511      transport, or cause to be sold, shipped, or transported any liquor from an out-of-state location
             3512      directly or indirectly into this state except to the extent authorized by this title to:
             3513          (a) the department;
             3514          (b) a military installation;
             3515          (c) a holder of a special use permit to the extent authorized by the commission in the
             3516      permit; or
             3517          (d) a bonded liquor warehouse licensed by the commission to distribute and transport
             3518      liquor to:
             3519          (i) the department; or
             3520          (ii) an out-of-state wholesaler or retailer.
             3521          (2) (a) It is unlawful for any person in the business of selling beer, or any manufacturer,
             3522      supplier, or importer of beer, or their officers, managers, employees, or agents to sell, ship,
             3523      transport, or cause to be sold, shipped, or transported any beer from an out-of-state location
             3524      directly or indirectly into this state except to the extent authorized by this title to:
             3525          (i) a licensed beer wholesaler;
             3526          (ii) a military installation; or
             3527          (iii) a holder of a special use permit to the extent authorized by the commission in the
             3528      permit.
             3529          (b) Subsection (2)(a) does not preclude a small brewer that holds a certificate of
             3530      approval under Subsection 32A-8-101 (4) from selling, shipping, or transporting beer directly to


             3531      a licensed beer retailer to the extent authorized by Subsection 32A-8-401 (5).
             3532          (3) (a) It is unlawful for any manufacturer, supplier, or importer of liquor in this state,
             3533      or their officers, managers, employees, or agents to sell, ship, transport, or cause to be sold,
             3534      shipped, or transported any liquor directly or indirectly to any person in this state except to the
             3535      extent authorized by this title to:
             3536          (i) the department;
             3537          (ii) a military installation;
             3538          (iii) a holder of a special use permit to the extent authorized by the commission in the
             3539      permit; or
             3540          (iv) a bonded liquor warehouse licensed by the commission to distribute and transport
             3541      liquor to:
             3542          (A) the department; or
             3543          (B) an out-of-state wholesaler or retailer.
             3544          (b) Subsection (3)(a) does not preclude a winery licensed under this title and located in
             3545      this state from selling wine to persons on its winery premises:
             3546          (i) to the extent authorized by Subsection 32A-8-201 (4)(c); or
             3547          (ii) under a package agency established by the commission on the winery premises.
             3548          (4) (a) It is unlawful for any manufacturer, supplier, or importer of beer in this state, or
             3549      their officers, managers, employees, or agents to sell, ship, transport, or cause to be sold,
             3550      shipped, or transported any beer directly or indirectly to any person in this state except to the
             3551      extent authorized by this title to:
             3552          (i) a licensed beer wholesaler;
             3553          (ii) a military installation; or
             3554          (iii) a holder of a special use permit to the extent authorized by the commission in the
             3555      permit.
             3556          (b) Subsection (4)(a) does not preclude:
             3557          (i) a small brewer licensed under this title and located in this state from selling,
             3558      shipping, and transporting beer directly to a licensed beer retailer in this state to the extent
             3559      authorized by Subsection 32A-8-401 (5); or
             3560          (ii) a [brewery] brewer licensed under this title from selling beer to persons on its
             3561      manufacturing premises under Subsection 32A-8-401 (4)(c).


             3562          (5) It is unlawful for any person other than a person described in Subsection (1) or (2)
             3563      to sell, ship, transport, or cause to be sold, shipped, or transported any alcoholic beverage or
             3564      product from an out-of-state location directly or indirectly into this state, except as otherwise
             3565      provided by this title.
             3566          (6) It is unlawful for any person in this state other than a person described in
             3567      Subsection (3) or (4) to sell, ship, transport, or cause to be sold, shipped, or transported any
             3568      alcoholic beverage or product directly or indirectly to any other person in this state, except as
             3569      otherwise provided by this title.
             3570          (7) It is unlawful for any retail licensee or permittee in this state, or their officers,
             3571      managers, employees, or agents to keep for sale, or to directly or indirectly, sell, offer to sell, or
             3572      otherwise furnish to another, any alcoholic beverage or product, except as otherwise provided
             3573      by this title.
             3574          (8) (a) A violation of Subsection (1), (2), (3), or (4) is a third degree felony.
             3575          (b) A violation of Subsection (5) or (6) is a class B misdemeanor.
             3576          (c) A violation of Subsection (7) is a class B misdemeanor, except where otherwise
             3577      provided by this title.
             3578          Section 31. Section 32A-12-213 is amended to read:
             3579           32A-12-213. Unlawful bringing onto premises for consumption.
             3580          (1) Except as provided in Subsection (3), a person may not bring for on-premise
             3581      consumption any alcoholic beverage onto the premises of any:
             3582          (a) licensed or unlicensed restaurant;
             3583          (b) licensed or unlicensed private club;
             3584          (c) airport lounge licensee;
             3585          (d) on-premise banquet licensee;
             3586          (e) on-premise beer retailer licensee;
             3587          (f) event where alcoholic beverages are sold or served under a single event permit or
             3588      temporary special event beer permit issued under this title; or
             3589          (g) any establishment open to the general public.
             3590          (2) Except as provided in Subsection (3), a licensed or unlicensed restaurant or private
             3591      club, airport lounge licensee, on-premise banquet licensee, on-premise beer retailer licensee, or
             3592      holder of a single event permit or temporary special event beer permit issued under this title, or


             3593      its officers, managers, employees, or agents may not allow a person to bring onto its premises
             3594      any alcoholic beverage for on-premise consumption or allow consumption of any such
             3595      alcoholic beverage in violation of this section.
             3596          (3) (a) A person may bring bottled wine onto the premises of any restaurant liquor
             3597      licensee, limited restaurant licensee, or private club licensee and consume the wine pursuant to
             3598      the applicable restrictions contained in Subsection 32A-4-106 (14), 32A-4-307 [(13)](14), or
             3599      32A-5-107 (32);
             3600          (b) a passenger of a limousine may bring onto, have, and consume any alcoholic
             3601      beverage on the limousine if:
             3602          (i) the travel of the limousine begins and ends at:
             3603          (A) the residence of the passenger;
             3604          (B) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
             3605          (C) the temporary domicile of the passenger; and
             3606          (ii) the driver of the limousine is separated from the passengers by partition or other
             3607      means approved by the department;
             3608          (c) a passenger of a chartered bus may bring onto, have, and consume any alcoholic
             3609      beverage on the chartered bus:
             3610          (i) (A) but may consume only during travel to a specified destination of the chartered
             3611      bus and not during travel back to the place where the travel begins; or
             3612          (B) if the travel of the chartered bus begins and ends at:
             3613          (I) the residence of the passenger;
             3614          (II) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
             3615          (III) the temporary domicile of the passenger; and
             3616          (ii) the chartered bus has a nondrinking designee other than the driver traveling on the
             3617      chartered bus to monitor consumption; and
             3618          (d) a person may bring onto any premises, have, and consume any alcoholic beverage
             3619      at a privately hosted event that is not open to the general public.
             3620          (4) Except as provided in Subsection (3)(c)(i)(A), the consumption of alcoholic
             3621      beverages in limousines and chartered buses is not allowed if the limousine or chartered bus
             3622      drops off passengers at locations from which they depart in private vehicles.
             3623          Section 32. Section 32A-12-222 is amended to read:


             3624           32A-12-222. Unlawful dispensing.
             3625          (1) For purposes of this section:
             3626          (a) "primary spirituous liquor" means the main distilled spirit in a beverage; and
             3627          (b) "primary spirituous liquor" does not include any secondary alcoholic product used
             3628      as flavorings in conjunction with the primary distilled spirit in the beverage.
             3629          (2) A licensee licensed under this title to sell, serve, or otherwise furnish spirituous
             3630      liquor for consumption on the licensed premises, or any officer, manager, employee, or agent
             3631      of the licensee may not:
             3632          (a) sell, serve, dispense, or otherwise furnish any primary spirituous liquor to any
             3633      person on the licensed premises except in a quantity that does not exceed one ounce per
             3634      beverage dispensed through a calibrated metered dispensing system approved by the
             3635      department;
             3636          (b) sell, serve, dispense, or otherwise furnish more than a total of [1.75] 2.75 ounces of
             3637      spirituous [liquors as secondary flavoring ingredients] liquor per beverage;
             3638          (c) allow any person on the licensed premises to have more than two alcoholic
             3639      beverages containing spirituous liquor at a time; or
             3640          (d) allow any person on the licensed premises to have more than a total of 2.75 ounces
             3641      of spirituous liquor at a time.
             3642          (3) Any of the following or an officer, manager, employee, or agent of the following
             3643      may not allow any person on the premises of the following to have more than one spirituous
             3644      liquor beverage at a time:
             3645          (a) a restaurant liquor licensee;
             3646          (b) limited restaurant licensee;
             3647          (c) an on-premise banquet licensee; or
             3648          (d) a single event permitee.
             3649          (4) A violation of this section is a class C misdemeanor.
             3650          Section 33. Section 32A-12-501 is amended to read:
             3651           32A-12-501. Disposition of liquor items shipped to the department.
             3652          (1) [All] Any liquor [items] item received by the department from [suppliers] a
             3653      supplier as a sample or as an item not specifically listed on a department purchase order shall
             3654      be handled in accordance with and subject to Subsection 32A-12-603 (4)(c)(ix)[, except for:].


             3655          [(a) a sample; or]
             3656          [(b) an item not specifically listed on a department purchase order.]
             3657          (2) Funds of the department may not be used to pay freight or charges on [samples] a
             3658      sample or any liquor [items] item:
             3659          (a) shipped to the department by suppliers; and
             3660          (b) not listed on [its] a department purchase [orders] order.
             3661          Section 34. Section 32A-12-601 is amended to read:
             3662           32A-12-601. Definitions.
             3663          As used in this part:
             3664          (1) (a) For purposes of Section 32A-12-602 , "exclusion" is as defined in 27 C.F.R.
             3665      Sections 8.51 through 8.54.
             3666          (b) For purposes of Section 32A-12-603 , "exclusion" is as defined in 27 C.F.R.
             3667      Sections [8.151 through 8.153] 6.151 through 6.153.
             3668          (2) (a) "Industry member" means:
             3669          (i) an alcoholic beverage manufacturer[,];
             3670          (ii) a producer[,];
             3671          (iii) a supplier[,];
             3672          (iv) an importer[,];
             3673          (v) a wholesaler[,];
             3674          (vi) a bottler[,]; or
             3675          (vii) a warehouser and bottler[,]; or
             3676          (viii) for a person described in Subsection (2)(a)(i) through (vii), any of its:
             3677          (A) affiliates[,];
             3678          (B) subsidiaries[,];
             3679          (C) officers[,];
             3680          (D) directors[,];
             3681          (E) partners[,];
             3682          (F) agents[,];
             3683          (G) employees[,]; or
             3684          (H) representatives.
             3685          (b) "Industry member" does not include:


             3686          (i) the commission [or];
             3687          (ii) the department; or
             3688          (iii) any of [its] the commission's or department's officers or employees.
             3689          (3) "Retailer" means:
             3690          (a) the holder of an alcoholic beverage license or permit issued by the commission or
             3691      by local authority to allow the holder to engage in the sale of alcoholic beverages to consumers
             3692      whether for consumption on or off the premises; or
             3693          (b) any of the holder's, agents, officers, directors, shareholders, partners, or employees.
             3694          Section 35. Section 32A-12-603 is amended to read:
             3695           32A-12-603. Tied house -- Prohibitions.
             3696          (1) (a) It is unlawful for any industry member, directly or indirectly or through an
             3697      affiliate, to induce any retailer to purchase any alcoholic beverages from the industry member
             3698      or from the department to the exclusion in whole or in part of any of those products sold or
             3699      offered for sale by other persons by acquiring or holding any interest in any license with respect
             3700      to the premises of a retailer, except where the license is held by a retailer that is completely
             3701      owned by the industry member.
             3702          (b) Interest in any retail license includes any interest acquired by a corporate official,
             3703      partner, employee, or other representative of the industry member.
             3704          (c) Any interest in a retail license acquired by a separate corporation in which the
             3705      industry member or the industry member's officials hold ownership or are otherwise affiliated
             3706      is an interest in a retail license.
             3707          (d) Less than complete ownership of a retail business by an industry member
             3708      constitutes an interest in a retail license within the meaning of Subsection (1)(a).
             3709          (2) (a) It is unlawful for any industry member, directly or indirectly or through an
             3710      affiliate, to induce any retailer to purchase any alcoholic beverages from the industry member
             3711      or from the department to the exclusion in whole or in part of any of those products sold or
             3712      offered for sale by other persons by acquiring any interest in real or personal property owned,
             3713      occupied, or used by the retailer in the conduct of the retailer's business.
             3714          (b) For purposes of Subsection (2)(a):
             3715          (i) "interest" does not include complete ownership of a retail business by an industry
             3716      member;


             3717          (ii) interest in retail property includes any interest acquired by a corporate official,
             3718      partner, employee, or other representative of the industry member;
             3719          (iii) any interest in a retail license acquired by a separate corporation in which the
             3720      industry member or its officials hold ownership or are otherwise affiliated is an interest in the
             3721      retailer's property;
             3722          (iv) less than complete ownership of a retail business by an industry member
             3723      constitutes an interest in retail property;
             3724          (v) the acquisition of a mortgage on a retailer's real or personal property by an industry
             3725      member constitutes an interest in the retailer's property; and
             3726          (vi) the renting of display space by an industry member at a retail establishment
             3727      constitutes an interest in the retailer's property.
             3728          (3) (a) It is unlawful for any industry member, directly or indirectly or through an
             3729      affiliate, to induce any retailer to purchase any alcoholic beverages from the industry member
             3730      or from the department to the exclusion in whole or in part of any of those products sold or
             3731      offered for sale by other persons by furnishing, giving, renting, lending, or selling to the retailer
             3732      any equipment, fixtures, signs, supplies, money, services, or other thing of value, subject to the
             3733      exceptions enumerated in Subsection (4).
             3734          (b) (i) For purposes of this Subsection (3), indirect inducement includes:
             3735          (A) furnishing things of value to a third party where the benefits resulting from the
             3736      things of value flow to individual retailers; and
             3737          (B) making payments for advertising to a retailer association or a display company
             3738      where the resulting benefits flow to individual retailers.
             3739          (ii) Notwithstanding Subsection (3)(b)(i), an indirect inducement does not arise if:
             3740          (A) the thing of value was furnished to a retailer by the third party without the
             3741      knowledge or intent of the industry member; or
             3742          (B) the industry member did not reasonably foresee that the thing of value would have
             3743      been furnished to a retailer.
             3744          (iii) Anything that may lawfully be furnished, given, rented, lent, or sold by industry
             3745      members to retailers under Subsection (4) may be furnished directly by a third party to a
             3746      retailer.
             3747          (c) (i) A transaction in which equipment is sold to a retailer by an industry member,


             3748      except as provided in Subsection (4), is the selling of equipment within the meaning of
             3749      Subsection (3)(a) regardless of how the equipment is sold.
             3750          (ii) The negotiation by an industry member of a special price to a retailer for equipment
             3751      from an equipment company is the furnishing of a thing of value within the meaning of
             3752      Subsection (3)(a).
             3753          (d) The furnishing of free warehousing by delaying delivery of alcoholic beverages
             3754      beyond the time that payment for the product is received, or if a retailer is purchasing on credit,
             3755      delaying final delivery of products beyond the close of the period of time for which credit is
             3756      lawfully extended, is the furnishing of a service or thing of value within the meaning of
             3757      Subsection (3)(a).
             3758          (e) Any financial, legal, administrative, or influential assistance given a retailer by an
             3759      industry member in the retailer's acquisition of the retailer's license is the furnishing of a
             3760      service or thing of value within the meaning of Subsection (3)(a).
             3761          (4) (a) Notwithstanding Subsection (3), things of value may be furnished by industry
             3762      members to retailers under the conditions and within the limitations prescribed in:
             3763          (i) this Subsection (4); and
             3764          (ii) the applicable federal laws cited in this Subsection (4).
             3765          (b) (i) The following may be furnished by an industry member:
             3766          (A) a product display as provided in 27 C.F.R. Sec. 6.83;
             3767          (B) point of sale advertising materials and consumer advertising specialties as provided
             3768      in 27 C.F.R. Sec. 6.84;
             3769          (C) things of value to a temporary retailer to the extent allowed in 27 C.F.R. Sec. 6.85;
             3770          (D) equipment and supplies as provided in 27 C.F.R. Sec. 6.88;
             3771          (E) combination packaging as provided in 27 C.F.R. Sec. 6.93;
             3772          (F) educational seminars as provided in 27 C.F.R. Sec. 6.94;
             3773          (G) consumer promotions as provided in 27 C.F.R. Sec. 6.96;
             3774          (H) advertising service as provided in 27 C.F.R. Sec. 6.98;
             3775          (I) stocking, rotation, and pricing service as provided in 27 C.F.R. Sec. 6.99;
             3776          (J) merchandise as provided in 27 C.F.R. Sec. 6.101; and
             3777          (K) outside signs as provided in 27 C.F.R. Sec. 6.102.
             3778          (ii) The following exceptions provided in federal law are not adopted:


             3779          (A) the exception for samples provided in 27 C.F.R. Sec. 6.91;
             3780          (B) the exception for consumer tasting or sampling at retail establishments provided in
             3781      27 C.F.R. Sec. 6.95; and
             3782          (C) the exception for participation in retailer association activities provided in 27
             3783      C.F.R. Sec. 6.100.
             3784          (iii) To the extent required by 27 C.F.R. Sec. 6.81(b) an industry member shall keep
             3785      and maintain a record:
             3786          (A) of all items furnished to a retailer;
             3787          (B) on premises of the industry member; and
             3788          (C) for a three-year period.
             3789          (c) Samples of liquor, wine, and heavy beer may be provided to the department under
             3790      the conditions listed in this Subsection (4)(c).
             3791          (i) With the department's permission, an industry member may submit department
             3792      samples to the department for product testing, analysis, and sampling.
             3793          (ii) No more than two department samples of a particular type, vintage, and production
             3794      lot of a particular branded product may be submitted to the department for department testing,
             3795      analysis, and sampling within a consecutive 120-day period.
             3796          (iii) (A) Each sample of liquor may not exceed 1 liter.
             3797          (B) Each sample of wine and heavy beer may not exceed 1.5 liters unless that exact
             3798      product is only commercially packaged in a larger size, not to exceed 5 liters.
             3799          (iv) (A) Department samples submitted to the department:
             3800          (I) shall be shipped prepaid by the industry member by common carrier; and
             3801          (II) may not be shipped by United States mail directly to the department's central
             3802      administrative warehouse office.
             3803          (B) Department samples may not be shipped to any other location within the state.
             3804          (v) Department samples submitted to the department shall be accompanied by a letter
             3805      from the industry member:
             3806          (A) clearly identifying the product as a "department sample"; and
             3807          (B) clearly stating the FOB case price of the product.
             3808          (vi) (A) The department may transfer listed items from current stock for use as
             3809      comparison control samples or to verify product spoilage as deemed appropriate.


             3810          (B) Each sample transferred under Subsection (4)(c)(vi)(A) shall be [billed back,
             3811      debited,] charged back to the respective industry [members] member.
             3812          (vii) The department shall:
             3813          (A) account for, label, and record all department samples received or transferred;
             3814          (B) account for the department sample's disposition; and
             3815          (C) maintain a record:
             3816          (I) of the samples and their disposition; and
             3817          (II) for a two-year period.
             3818          (viii) The department shall affix to each bottle or container a label clearly identifying
             3819      the product as a "department sample".
             3820          (ix) Each department sample delivered to the department or transferred from the
             3821      department's current stock shall be disposed of at the discretion of the department in one of the
             3822      following ways:
             3823          (A) tested and analyzed with the remaining contents destroyed under controlled and
             3824      audited conditions established by the department;
             3825          (B) entire contents destroyed under controlled and audited conditions established by
             3826      the department; or
             3827          (C) added to the inventory of the department for sale to the public.
             3828          (x) Persons other than authorized department officials may not be in possession of
             3829      department samples except as otherwise provided.
             3830          (d) Samples of beer may be provided by a beer industry member to a retailer under the
             3831      conditions listed in this Subsection (4)(d).
             3832          (i) Samples of beer may be provided by an industry member only to a retailer who has
             3833      not purchased the brand of beer from that industry member within the last 12 months.
             3834          (ii) For each retailer, the industry member may give not more than three gallons of any
             3835      brand of beer, except that if a particular product is not available in a size within the quantity
             3836      limitation an industry member may furnish the next largest size.
             3837          (e) Educational seminars may involve an industry member under the conditions listed
             3838      in this Subsection (4)(e).
             3839          (i) An industry member may provide or participate in educational seminars:
             3840          (A) involving:


             3841          (I) the department;
             3842          (II) retailers;
             3843          (III) holders of educational or scientific special use permits;
             3844          (IV) other industry members; or
             3845          (V) employees of the persons listed in Subsections (4)(e)(i)(A)(I) through (IV); and
             3846          (B) regarding such topics as:
             3847          (I) merchandising and product knowledge;
             3848          (II) use of equipment; and
             3849          (III) tours of alcoholic beverage manufacturing facilities.
             3850          (ii) An industry member may not pay a department employee's, retailer's, or permittee's
             3851      expenses or compensate them for attending a seminar or tour described in Subsection (4)(e)(i).
             3852          (iii) (A) A liquor, wine, and heavy beer industry member may conduct tastings of the
             3853      industry member's products:
             3854          (I) for the department, at the department's request; and
             3855          (II) for licensed industry representatives, but only at the department's central
             3856      administrative warehouse office.
             3857          (B) The industry member may only use department or industry representative samples
             3858      when conducting any tasting of the industry member's products.
             3859          (iv) A beer industry member may conduct tastings of beer products for a licensed beer
             3860      retailer either at:
             3861          (A) the industry member's premises; or
             3862          (B) a retail establishment.
             3863          (v) Except to the extent authorized by commission rule, an alcoholic beverage industry
             3864      member may not conduct tasting or sampling activities with:
             3865          (A) a retailer; or
             3866          (B) a member of the general public.
             3867          (f) A beer industry member may participate in beer retailer association activities to the
             3868      extent authorized by 27 C.F.R. Sec. 6.100.
             3869          (g) (i) An industry member may contribute to charitable, civic, religious, fraternal,
             3870      educational, or community activities.
             3871          (ii) A contribution described in Subsection (4)(g)(i) may not be given to influence a


             3872      retailer in the selection of the alcoholic beverage products that may be sold at these activities
             3873      and events.
             3874          (iii) An industry member or retailer violates this section if:
             3875          (A) the industry member's contribution described in Subsection (4)(g)(i) influences,
             3876      directly or indirectly, the retailer in the selection of alcoholic beverage products; and
             3877          (B) a competitor's alcoholic beverage products are excluded in whole or in part from
             3878      sale at the activity or event.
             3879          (h) (i) An industry member may lease or furnish equipment listed in Subsection
             3880      (4)(h)(ii) to a retailer if:
             3881          (A) the equipment is leased or furnished for a special event;
             3882          (B) a reasonable rental or service fee is charged for the equipment; and
             3883          (C) the period for which the equipment is leased or furnished does not exceed 30 days.
             3884          (ii) This Subsection (4)(h) applies to the following equipment:
             3885          (A) a picnic pump;
             3886          (B) a cold plate;
             3887          (C) a tub;
             3888          (D) a keg box;
             3889          (E) a refrigerated trailer;
             3890          (F) a refrigerated van; or
             3891          (G) a refrigerated draft system.
             3892          (i) (i) A liquor, wine, and heavy beer industry member may assist the department in:
             3893          (A) ordering, shipping, and delivering merchandise;
             3894          (B) new product notification;
             3895          (C) listing and delisting information;
             3896          (D) price quotations;
             3897          (E) product sales analysis;
             3898          (F) shelf management; and
             3899          (G) educational seminars.
             3900          (ii) (A) Subject to Subsection (4)(i)(ii)(B), a liquor, wine, and heavy beer industry
             3901      member may, for the purpose of acquiring new listings[,]:
             3902          (I) solicit orders from the department; and


             3903          (II) submit to the department samples of their products under Subsection (4)(c) and
             3904      price lists.
             3905          (B) An industry member may not solicit either in person, by mail, or otherwise, any
             3906      state store personnel for the purpose or with the intent of furthering the sale of a particular
             3907      brand or brands of alcoholic beverage product as against another brand or brands.
             3908          (iii) (A) Any visitations to a state store or package agency by an industry member shall
             3909      be confined to the customer areas of the store unless otherwise approved.
             3910          (B) Calls on the state warehouse by industry members are to be confined to the office
             3911      area only unless otherwise approved.
             3912          (iv) A beer industry member may assist licensed retailers in:
             3913          (A) ordering, shipping, and delivering beer merchandise;
             3914          (B) new product notification;
             3915          (C) listing and delisting information;
             3916          (D) price quotations;
             3917          (E) product sales analysis;
             3918          (F) shelf management; and
             3919          (G) educational seminars.
             3920          (v) A beer industry member may, for the purpose of acquiring new listings:
             3921          (A) solicit orders from licensed retailers; and
             3922          (B) submit to licensed retailers samples of their beer products under Subsection (4)(c)
             3923      and price lists.
             3924          (5) It is unlawful for any industry member, directly or indirectly or through an affiliate,
             3925      to induce any retailer to purchase any alcoholic beverages from the industry member or from
             3926      the department to the exclusion in whole or in part of any of those products sold or offered for
             3927      sale by other persons by paying or crediting the retailer for any advertising, display, or
             3928      distribution service:
             3929          (a) as defined in and to the extent restricted by 27 C.F.R. Sections 6.51 through 6.56;
             3930      and
             3931          (b) subject to the exceptions:
             3932          (i) for newspaper cuts listed in 27 C.F.R. Sec. 6.92; and
             3933          (ii) for advertising services listed in 27 C.F.R. Sec. 6.98.


             3934          (6) It is unlawful for any industry member, directly or indirectly or through an affiliate,
             3935      to induce any retailer to purchase any alcoholic beverages from the industry member or from
             3936      the department to the exclusion in whole or in part of any of those products sold or offered for
             3937      sale by other persons by guaranteeing any loan or the repayment of any financial obligation of
             3938      the retailer.
             3939          (7) (a) It is unlawful for any industry member, directly or indirectly or through an
             3940      affiliate, to induce any retailer to purchase any beer from the industry member to the exclusion
             3941      in whole or in part of any beer products sold or offered for sale by other persons by extending
             3942      to any retailer credit for a period in excess of 15 days from the date of delivery to the date of
             3943      full legal discharge of the retailer through the payment of cash or its equivalent, from all
             3944      indebtedness arising from the transaction, so long as that beer purchased or delivered during
             3945      the first 15 days of any month is paid for in cash or its equivalent on or before the 25th day of
             3946      the same month, and beer purchased or delivered after the 15th day of any month is paid for in
             3947      cash or its equivalent on or before the 10th day of the next succeeding month.
             3948          (b) First party in-state checks are considered cash payment if the checks:
             3949          (i) are honored on presentment; and
             3950          (ii) received under the terms prescribed in Subsection (7)(a).
             3951          (c) An extension of credit for product purchased by an industry member to a retailer
             3952      whose account is in arrears does not constitute a violation of Subsection (7)(a) if the retailer
             3953      pays in advance or on delivery an amount equal to or greater than the value of each order,
             3954      regardless of the manner in which the industry member applies the payment in its records.
             3955          (8) (a) It is unlawful for any industry member, directly or indirectly or through an
             3956      affiliate, to induce any retailer to purchase any alcoholic beverages from the industry member
             3957      or from the department to the exclusion in whole or in part of any of those products sold or
             3958      offered for sale by other persons by requiring:
             3959          (i) the department to take and dispose of a certain quota of any alcoholic products; or
             3960          (ii) a beer retailer to take and dispose of a certain quota of any beer products.
             3961          (b) (i) It is an unlawful means to induce to require:
             3962          (A) the department to purchase one product in order to purchase another; or
             3963          (B) a beer retailer to purchase one beer product in order to purchase another.
             3964          (ii) This Subsection (8)(b) includes:


             3965          (A) the requirement to take a minimum quantity of a product in standard packaging in
             3966      order to obtain the same product in some type of premium package such as:
             3967          (I) a distinctive decanter; or
             3968          (II) a wooden or tin box; or
             3969          (B) combination sales if one or more products may be purchased only in combination
             3970      with other products and not individually.
             3971          (c) This Subsection (8) does not preclude the selling, at a special combination price,
             3972      two or more kinds or brands of products so long as the department or beer retailer:
             3973          (i) has the option of purchasing either product at the usual price; and
             3974          (ii) is not required to purchase any product the department or beer retailer does not
             3975      want.
             3976          (d) An industry member may package and distribute alcoholic beverages in
             3977      combination with other nonalcoholic items or products.
             3978          (e) The combination package shall be designed to be delivered intact to the consumer
             3979      and the additional cost incurred by the industry member shall be included in the cost to the
             3980      department or beer retailer.
             3981          Section 36. Section 41-6-44.20 is amended to read:
             3982           41-6-44.20. Drinking alcoholic beverage and open containers in motor vehicle
             3983      prohibited -- Definitions -- Exceptions.
             3984          (1) A person may not drink any alcoholic beverage while operating a motor vehicle or
             3985      while a passenger in a motor vehicle, whether the vehicle is moving, stopped, or parked on any
             3986      highway.
             3987          (2) A person may not keep, carry, possess, transport, or allow another to keep, carry,
             3988      possess, or transport in the passenger compartment of a motor vehicle, when the vehicle is on
             3989      any highway, any container which contains any alcoholic beverage if the container has been
             3990      opened, its seal broken, or the contents of the container partially consumed.
             3991          (3) In this section:
             3992          (a) "Alcoholic beverage" has the meaning given in Section 32A-1-105 .
             3993          (b) "Chartered bus" has the meaning given in Section 32A-1-105 .
             3994          (c) "Limousine" has the meaning given in Section 32A-1-105 .
             3995          (d) "Passenger compartment" means the area of the vehicle normally occupied by the


             3996      operator and passengers and includes areas accessible to them while traveling, such as a utility
             3997      or glove compartment, but does not include a separate front or rear trunk compartment or other
             3998      area of the vehicle not accessible to the operator or passengers while inside the vehicle.
             3999          (4) Subsections (1) and (2) do not apply to passengers in the living quarters of a motor
             4000      home or camper.
             4001          (5) Subsection (2) does not apply to passengers traveling in any licensed taxicab or bus.
             4002          (6) Subsections (1) and (2) do not apply to passengers who have carried their own
             4003      alcoholic beverage onto a limousine or chartered bus that is in compliance with Subsections
             4004      32A-12-213 [(1)] (3)(b) and (c).
             4005          (7) Subsections (1) and (2) do not apply to a passenger in a motorboat on the waters of
             4006      this state as these terms are defined in Section 73-18-2 .
             4007          Section 37. Section 67-22-2 is amended to read:
             4008           67-22-2. Compensation -- Other state officers.
             4009          (1) The governor shall establish salaries for the following state officers within the
             4010      following salary ranges fixed by the Legislature:
             4011              State Officer                     Salary Range
             4012          Commissioner of Agriculture and Food         $64,600 - $87,500
             4013          Commissioner of Insurance                 $64,600 - $87,500
             4014          Commissioner of the Labor Commission         $64,600 - $87,500
             4015          [Director, Alcoholic Beverage Control]
             4016              [Commission]                     [$64,600 - $87,500]
             4017          Commissioner, Department of
             4018              Financial Institutions                 $64,600 - $87,500
             4019          Members, Board of Pardons and Parole         $64,600 - $87,500
             4020          Executive Director, Department
             4021              of Commerce                     $64,600 - $87,500
             4022          Executive Director, Commission on
             4023              Criminal and Juvenile Justice         $64,600 - $87,500
             4024          Adjutant General                     $64,600 - $87,500
             4025          Chair, Tax Commission                 $69,900 - $94,300
             4026          Commissioners, Tax Commission             $69,900 - $94,300


             4027          Executive Director, Department of
             4028              Community and Economic
             4029              Development                     $69,900 - $94,300
             4030          Executive Director, Tax Commission         $69,900 - $94,300
             4031          Chair, Public Service Commission             $69,900 - $94,300
             4032          Commissioner, Public Service Commission          $69,900 - $94,300
             4033          Executive Director, Department
             4034              of Corrections                     $76,000 - $102,600
             4035          Commissioner, Department of Public Safety         $76,000 - $102,600
             4036          Executive Director, Department of
             4037              Natural Resources                 $76,000 - $102,600
             4038          Director, Governor's Office of Planning
             4039              and Budget                     $76,000 - $102,600
             4040          Executive Director, Department of
             4041              Administrative Services              $76,000 - $102,600
             4042          Executive Director, Department of
             4043              Human Resource Management          $76,000 - $102,600
             4044          Executive Director, Department of
             4045              Environmental Quality             $76,000 - $102,600
             4046          Director, Department of Alcoholic
             4047               Beverage Control                 $82,800 - $111,800
             4048          State Olympic Officer                  $82,800 - $111,800
             4049          Executive Director, Department of
             4050              Workforce Services                 $82,800 - $111,800
             4051          Executive Director, Department of
             4052              Health                          $82,800 - $111,800
             4053          Executive Director, Department
             4054              of Human Services                 $82,800 - $111,800
             4055          Executive Director, Department
             4056              of Transportation                 $82,800 - $111,800
             4057          Chief Information Officer                 $82,800 - $111,800


             4058          (2) (a) The Legislature fixes benefits for the state offices outlined in Subsection (1) as
             4059      follows:
             4060          (i) the option of participating in a state retirement system established by Title 49, Utah
             4061      State Retirement and Insurance Benefit Act, or in a deferred compensation plan administered
             4062      by the State Retirement Office in accordance with the Internal Revenue Code and its
             4063      accompanying rules and regulations;
             4064          (ii) health insurance;
             4065          (iii) dental insurance;
             4066          (iv) basic life insurance;
             4067          (v) unemployment compensation;
             4068          (vi) workers' compensation;
             4069          (vii) required employer contribution to Social Security;
             4070          (viii) long-term disability income insurance;
             4071          (ix) the same additional state-paid life insurance available to other noncareer service
             4072      employees;
             4073          (x) the same severance pay available to other noncareer service employees;
             4074          (xi) the same sick leave, converted sick leave, educational allowances, and holidays
             4075      granted to Schedule B state employees, and the same annual leave granted to Schedule B state
             4076      employees with more than ten years of state service;
             4077          (xii) the option to convert accumulated sick leave to cash or insurance benefits as
             4078      provided by law or rule upon resignation or retirement according to the same criteria and
             4079      procedures applied to Schedule B state employees;
             4080          (xiii) the option to purchase additional life insurance at group insurance rates according
             4081      to the same criteria and procedures applied to Schedule B state employees; and
             4082          (xiv) professional memberships if being a member of the professional organization is a
             4083      requirement of the position.
             4084          (b) Each department shall pay the cost of additional state-paid life insurance for its
             4085      executive director from its existing budget.
             4086          (3) The Legislature fixes the following additional benefits:
             4087          (a) for the executive director of the State Tax Commission a vehicle for official and
             4088      personal use;


             4089          (b) for the executive director of the Department of Transportation a vehicle for official
             4090      and personal use;
             4091          (c) for the executive director of the Department of Natural Resources a vehicle for
             4092      commute and official use;
             4093          (d) for the Commissioner of Public Safety:
             4094          (i) an accidental death insurance policy if POST certified; and
             4095          (ii) a public safety vehicle for official and personal use;
             4096          (e) for the executive director of the Department of Corrections:
             4097          (i) an accidental death insurance policy if POST certified; and
             4098          (ii) a public safety vehicle for official and personal use;
             4099          (f) for the Adjutant General a vehicle for official and personal use; [and]
             4100          (g) for each member of the Board of Pardons and Parole a vehicle for commute and
             4101      official use[.]; and
             4102          (h) for the director of the Department of Alcoholic Beverage Control a vehicle for
             4103      official and personal use.
             4104          (4) (a) The governor has the discretion to establish a specific salary for each office
             4105      listed in Subsection (1), and, within that discretion, may provide salary increases within the
             4106      range fixed by the Legislature.
             4107          (b) The governor shall apply the same overtime regulations applicable to other FLSA
             4108      exempt positions.
             4109          (c) The governor may develop standards and criteria for reviewing the performance of
             4110      the state officers listed in Subsection (1).
             4111          (5) Salaries for other Schedule A employees, as defined in Section 67-19-15 , which are
             4112      not provided for in this chapter, or in Title 67, Chapter 8, Utah Executive and Judicial Salary
             4113      Act, shall be established as provided in Section 67-19-15 .
             4114          Section 38. Section 76-10-1506 is amended to read:
             4115           76-10-1506. Threatening breach of peace -- Disorderly conduct -- Foul language
             4116      -- Refusing requests -- Use of controlled substance, liquor, or tobacco -- Ejection of
             4117      passenger.
             4118          (1) A person is guilty of a class C misdemeanor, if he:
             4119          (a) threatens a breach of the peace, is disorderly, or uses obscene, profane, or vulgar


             4120      language on a bus;
             4121          (b) is in or upon any bus while unlawfully under the influence of a controlled substance
             4122      as defined in Section 58-37-2 ;
             4123          (c) fails to obey a reasonable request or order of a bus driver, bus company
             4124      representative, a nondrinking designee other than the driver as provided in Subsection
             4125      32A-12-213 [(1)] (3)(c)(ii), or other person in charge or control of a bus or terminal;
             4126          (d) ingests any controlled substance, unless prescribed by a physician or medical
             4127      facility, in or upon any bus, or drinks intoxicating liquor in or upon any bus, except a chartered
             4128      bus as defined and provided in Sections 32A-1-105 and 41-6-44.20 ; or
             4129          (e) smokes tobacco or other products in or upon any bus, except a chartered bus.
             4130          (2) If any person violates Subsection (1), the driver of the bus or person in charge
             4131      thereof may stop at the place where the offense is committed or at the next regular or
             4132      convenient stopping place and remove such person, using only such force as may be necessary
             4133      to accomplish the removal, and the driver or person in charge may request the assistance of
             4134      passengers to assist in the removal. The driver or person in charge may cause the person so
             4135      removed to be detained and delivered to the proper authorities.




Legislative Review Note
    as of 2-5-04 6:30 PM


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

Office of Legislative Research and General Counsel


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