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First Substitute H.B. 104

This document includes House Committee Amendments incorporated into the bill on Fri, Feb 2, 2007 at 2:12 PM by ddonat. -->

Representative Stephen E. Sandstrom proposes the following substitute bill:


             1     
ALCOHOLIC BEVERAGE LICENSEES AND

             2     
GAMBLING-LIKE ACTIVITIES

             3     
2007 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Stephen E. Sandstrom

             6     
Senate Sponsor: Curtis S. Bramble

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Alcoholic Beverage Control Act to address gambling-like
             11      activities.
             12      Highlighted Provisions:
             13          This bill:
             14          .    prohibits certain gambling-like activities;
             15          .    provides for exceptions; and
             16          .    makes technical changes.
             17      Monies Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          32A-4-106, as last amended by Chapter 268, Laws of Utah 2004
             24          32A-4-206, as last amended by Chapter 268, Laws of Utah 2004
             25          32A-4-307, as last amended by Chapter 268, Laws of Utah 2004


             26          32A-4-406, as last amended by Chapter 152, Laws of Utah 2005
             27          32A-5-107, as last amended by Chapter 268, Laws of Utah 2004
             28          32A-7-106, as last amended by Chapter 268, Laws of Utah 2004
             29          32A-10-206, as last amended by Chapter 268, Laws of Utah 2004
             30          32A-10-306, as last amended by Chapter 268, Laws of Utah 2004
             31          32A-15a-102, as enacted by Chapter 314, Laws of Utah 2003
             32     
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 32A-4-106 is amended to read:
             35           32A-4-106. Operational restrictions.
             36          Each person granted a restaurant liquor license and the employees and management
             37      personnel of the restaurant shall comply with the following conditions and requirements.
             38      Failure to comply may result in a suspension or revocation of the license or other disciplinary
             39      action taken against individual employees or management personnel.
             40          (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from state
             41      stores or package agencies.
             42          (b) Liquor purchased may be transported by the restaurant liquor licensee from the
             43      place of purchase to the licensed premises.
             44          (c) Payment for liquor shall be made in accordance with rules established by the
             45      commission.
             46          (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
             47      a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             48      dispensing system approved by the department in accordance with commission rules adopted
             49      under this title, except that:
             50          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             51      system if used as a secondary flavoring ingredient in a beverage subject to the following
             52      restrictions:
             53          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             54      a primary spirituous liquor;
             55          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             56          (iii) the restaurant liquor licensee shall designate a location where flavorings are stored


             57      on the floor plan provided to the department; and
             58          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             59          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             60      system if used:
             61          (i) as a flavoring on desserts; and
             62          (ii) in the preparation of flaming food dishes, drinks, and desserts;
             63          (c) each restaurant patron may have no more than 2.75 ounces of spirituous liquor at a
             64      time; and
             65          (d) each restaurant patron may have no more than one spirituous liquor drink at a time
             66      before the patron.
             67          (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
             68      exceed five ounces per glass or individual portion.
             69          (ii) An individual portion of wine may be served to a patron in more than one glass as
             70      long as the total amount of wine does not exceed five ounces.
             71          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             72      Subsection (7)(e).
             73          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             74      fixed by the commission to tables of four or more persons.
             75          (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
             76      the commission to tables of less than four persons.
             77          (c) A wine service may be performed and a service charge assessed by the restaurant as
             78      authorized by commission rule for wine purchased at the restaurant.
             79          (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
             80      fixed by the commission.
             81          (b) A service charge may be assessed by the restaurant as authorized by commission
             82      rule for heavy beer purchased at the restaurant.
             83          (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant licensed to sell liquor may sell
             84      beer for on-premise consumption:
             85          (A) in an open container; and
             86          (B) on draft.
             87          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does


             88      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             89      container that exceeds one liter.
             90          (b) A restaurant licensed under this chapter that sells beer pursuant to Subsection
             91      (5)(a):
             92          (i) may do so without obtaining a separate on-premise beer retailer license from the
             93      commission; and
             94          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             95      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             96      inconsistent with or less restrictive than the operational restrictions under this part.
             97          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             98      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             99      restaurant's:
             100          (i) state liquor license; and
             101          (ii) alcoholic beverage license issued by the local authority.
             102          (6) Alcoholic beverages may not be stored, served, or sold in any place other than as
             103      designated in the licensee's application, unless the licensee first applies for and receives
             104      approval from the department for a change of location within the restaurant.
             105          (7) (a) (i) A patron may only make alcoholic beverage purchases in the restaurant from
             106      and be served by a person employed, designated, and trained by the licensee to sell and serve
             107      alcoholic beverages.
             108          (ii) Notwithstanding Subsection (7)(a)(i), a patron who has purchased bottled wine
             109      from an employee of the restaurant or has carried bottled wine onto the premises of the
             110      restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the patron
             111      or others at the patron's table.
             112          (b) Alcoholic beverages shall be delivered by a server to the patron.
             113          (c) Any alcoholic beverage may only be consumed at the patron's table or counter.
             114          (d) Alcoholic beverages may not be served to or consumed by a patron at a bar.
             115          (e) Each restaurant patron may have no more than two alcoholic beverages of any kind
             116      at a time before the patron, subject to the limitation in Subsection (2)(d).
             117          (8) The liquor storage area shall remain locked at all times other than those hours and
             118      days when liquor sales are authorized by law.


             119          (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             120      restaurant during the following days or hours:
             121          (i) until after the polls are closed on the day of any:
             122          (A) regular general election;
             123          (B) regular primary election; or
             124          (C) statewide special election;
             125          (ii) until after the polls are closed on the day of any municipal, special district, or
             126      school election, but only:
             127          (A) within the boundaries of the municipality, special district, or school district; and
             128          (B) if required by local ordinance; and
             129          (iii) on any other day after 12 midnight and before 12 noon.
             130          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             131      Licenses, for on-premise beer licensees.
             132          (10) Alcoholic beverages may not be sold except in connection with an order for food
             133      prepared, sold, and served at the restaurant.
             134          (11) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             135          (a) minor;
             136          (b) person actually, apparently, or obviously intoxicated;
             137          (c) known habitual drunkard; or
             138          (d) known interdicted person.
             139          (12) (a) (i) Liquor may be sold only at prices fixed by the commission.
             140          (ii) Liquor may not be sold at discount prices on any date or at any time.
             141          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             142      beverage to the licensee.
             143          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             144      over consumption or intoxication.
             145          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             146      hours of the restaurant's business day such as a "happy hour."
             147          (e) The sale or service of more than one alcoholic beverage for the price of a single
             148      alcoholic beverage is prohibited.
             149          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages


             150      during any set period for a fixed price is prohibited.
             151          (g) A restaurant licensee may not engage in a public promotion involving or offering
             152      free alcoholic beverages to the general public.
             153          (13) Alcoholic beverages may not be purchased for a patron of a restaurant by:
             154          (a) the licensee; or
             155          (b) any employee or agent of the licensee.
             156          (14) (a) A person may not bring onto the premises of a restaurant liquor licensee any
             157      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             158      discretion of the licensee, bottled wine onto the premises of any restaurant liquor licensee for
             159      on-premise consumption.
             160          (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or its
             161      officers, managers, employees, or agents may not allow:
             162          (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
             163      consumption; or
             164          (ii) consumption of any such alcoholic beverage on its premises.
             165          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             166      or other representative of the licensee upon entering the restaurant.
             167          (d) A wine service may be performed and a service charge assessed by the restaurant as
             168      authorized by commission rule for wine carried in by a patron.
             169          (15) (a) Except as provided in Subsection (15)(b), a restaurant licensee and its
             170      employees may not permit a restaurant patron to carry from the restaurant premises an open
             171      container that:
             172          (i) is used primarily for drinking purposes; and
             173          (ii) contains any alcoholic beverage.
             174          (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
             175      restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
             176      onto the premises of the restaurant in accordance with Subsection (14), provided the bottle has
             177      been recorked or recapped before removal.
             178          (16) (a) A minor may not be employed by a restaurant licensee to sell or dispense
             179      alcoholic beverages.
             180          (b) Notwithstanding Subsection (16)(a), a minor may be employed to enter the sale at a


             181      cash register or other sales recording device.
             182          (17) An employee of a restaurant liquor licensee, while on duty, may not:
             183          (a) consume an alcoholic beverage; or
             184          (b) be intoxicated.
             185          (18) Any charge or fee made in connection with the sale, service, or consumption of
             186      liquor may be stated in food or alcoholic beverage menus including:
             187          (a) a set-up charge;
             188          (b) a service charge; or
             189          (c) a chilling fee.
             190          (19) Each restaurant liquor licensee shall display in a prominent place in the restaurant:
             191          (a) the liquor license that is issued by the department;
             192          (b) a list of the types and brand names of liquor being served through its calibrated
             193      metered dispensing system; and
             194          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             195      drugs is a serious crime that is prosecuted aggressively in Utah."
             196          (20) The following acts or conduct in a restaurant licensed under this chapter are
             197      considered contrary to the public welfare and morals, and are prohibited upon the premises:
             198          (a) employing or using any person in the sale or service of alcoholic beverages while
             199      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             200      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             201      buttocks, vulva, or genitals;
             202          (b) employing or using the services of any person to mingle with the patrons while the
             203      person is unclothed or in attire, costume, or clothing described in Subsection (20)(a);
             204          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             205      buttocks, anus, or genitals of any other person;
             206          (d) permitting any employee or person to wear or use any device or covering, exposed
             207      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
             208          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             209      the prohibited activities described in this Subsection (20);
             210          (f) permitting any person to remain in or upon the premises who exposes to public
             211      view any portion of that person's genitals or anus; or


             212          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             213      depicting:
             214          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             215      copulation, flagellation, or any sexual acts prohibited by Utah law;
             216          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             217      genitals;
             218          (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             219      drawings are used to portray, any of the prohibited activities described in this Subsection (20);
             220      or
             221          (iv) scenes wherein a person displays the vulva or the anus or the genitals.
             222          (21) Nothing in Subsection (20) precludes a local authority from being more restrictive
             223      of acts or conduct of the type prohibited in Subsection (20).
             224          (22) (a) Although live entertainment is permitted on the premises of a restaurant liquor
             225      licensee, a licensee may not allow any person to perform or simulate sexual acts prohibited by
             226      Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral copulation,
             227      flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the
             228      displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon a
             229      stage or at a designated area approved by the commission.
             230          (b) Nothing in Subsection (22)(a) precludes a local authority from being more
             231      restrictive of acts or conduct of the type prohibited in Subsection (22)(a).
             232          (23) A restaurant liquor licensee may not on the premises of the restaurant liquor
             233      licensee:
             234          (a) engage in or permit any form of gambling, [or] as defined and proscribed in Title
             235      76, Chapter 10, Part 11, Gambling;
             236          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             237      Part 11, Gambling[, on the premises of the restaurant liquor licensee.]; or
             238          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             239      H. [ or simulates ] .H the risking of something of value for a return or for an outcome when the
             239a      return or
             240      outcome is based upon an element of chance, excluding the playing of an amusement device
             241      that confers only an immediate and unrecorded right of replay not exchangeable for value.
             242          (24) (a) Each restaurant liquor licensee shall maintain an expense ledger or record


             243      showing in detail:
             244          (i) quarterly expenditures made separately for:
             245          (A) malt or brewed beverages;
             246          (B) set-ups;
             247          (C) liquor;
             248          (D) food; and
             249          (E) all other items required by the department; and
             250          (ii) sales made separately for:
             251          (A) malt or brewed beverages;
             252          (B) set-ups;
             253          (C) food; and
             254          (D) all other items required by the department.
             255          (b) The record required by Subsection (24)(a) shall be kept:
             256          (i) in a form approved by the department; and
             257          (ii) current for each three-month period.
             258          (c) Each expenditure shall be supported by:
             259          (i) delivery tickets;
             260          (ii) invoices;
             261          (iii) receipted bills;
             262          (iv) canceled checks;
             263          (v) petty cash vouchers; or
             264          (vi) other sustaining data or memoranda.
             265          (d) In addition to a ledger or record required under Subsection (24)(a), a restaurant
             266      liquor licensee shall maintain accounting and other records and documents as the department
             267      may require.
             268          (e) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,
             269      alters, cancels, destroys, conceals, or removes the entries in any of the books of account or
             270      other documents of the restaurant required to be made, maintained, or preserved by this title or
             271      the rules of the commission for the purpose of deceiving the commission or the department, or
             272      any of their officials or employees, is subject to:
             273          (i) the suspension or revocation of the restaurant's liquor license; and


             274          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             275          (25) (a) A restaurant liquor licensee may not close or cease operation for a period
             276      longer than 240 hours, unless:
             277          (i) the restaurant liquor licensee notifies the department in writing at least seven days
             278      before the closing; and
             279          (ii) the closure or cessation of operation is first approved by the department.
             280          (b) Notwithstanding Subsection (25)(a), in the case of emergency closure, immediate
             281      notice of closure shall be made to the department by telephone.
             282          (c) The department may authorize a closure or cessation of operation for a period not to
             283      exceed 60 days. The department may extend the initial period an additional 30 days upon
             284      written request of the restaurant licensee and upon a showing of good cause. A closure or
             285      cessation of operation may not exceed a total of 90 days without commission approval.
             286          (d) Any notice shall include:
             287          (i) the dates of closure or cessation of operation;
             288          (ii) the reason for the closure or cessation of operation; and
             289          (iii) the date on which the licensee will reopen or resume operation.
             290          (e) Failure of the licensee to provide notice and to obtain department authorization
             291      prior to closure or cessation of operation shall result in an automatic forfeiture of:
             292          (i) the license; and
             293          (ii) the unused portion of the license fee for the remainder of the license year effective
             294      immediately.
             295          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             296      result in an automatic forfeiture of:
             297          (i) the license; and
             298          (ii) the unused portion of the license fee for the remainder of the license year.
             299          (26) Each restaurant liquor licensee shall maintain at least 70% of its total restaurant
             300      business from the sale of food, which does not include mix for alcoholic beverages or service
             301      charges.
             302          (27) A restaurant liquor license may not be transferred from one location to another,
             303      without prior written approval of the commission.
             304          (28) (a) A person, having been granted a restaurant liquor license may not sell, transfer,


             305      assign, exchange, barter, give, or attempt in any way to dispose of the license to any other
             306      person whether for monetary gain or not.
             307          (b) A restaurant liquor license has no monetary value for the purpose of any type of
             308      disposition.
             309          (29) Each server of alcoholic beverages in a licensee's establishment shall keep a
             310      written beverage tab for each table or group that orders or consumes alcoholic beverages on the
             311      premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
             312      consumed.
             313          (30) A person's willingness to serve alcoholic beverages may not be made a condition
             314      of employment as a server with a restaurant that has a restaurant liquor license.
             315          Section 2. Section 32A-4-206 is amended to read:
             316           32A-4-206. Operational restrictions.
             317          Each person granted an airport lounge liquor license and the employees and
             318      management personnel of the airport lounge shall comply with the following conditions and
             319      requirements. Failure to comply may result in a suspension or revocation of the license or
             320      other disciplinary action taken against individual employees or management personnel.
             321          (1) (a) Liquor may not be purchased by an airport lounge liquor licensee except from
             322      state stores or package agencies.
             323          (b) Liquor purchased may be transported by the licensee from the place of purchase to
             324      the licensed premises.
             325          (c) Payment for liquor shall be made in accordance with the rules established by the
             326      commission.
             327          (2) An airport lounge liquor licensee may sell or provide a primary spirituous liquor
             328      only in a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             329      dispensing system approved by the department in accordance with commission rules adopted
             330      under this title, except that:
             331          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             332      system if used as a secondary flavoring ingredient in a beverage subject to the following
             333      restrictions:
             334          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             335      a spirituous primary liquor;


             336          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             337          (iii) the airport lounge liquor licensee shall designate a location where flavorings are
             338      stored on the floor plan provided to the department; and
             339          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             340          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             341      system if used:
             342          (i) as a flavoring on desserts; and
             343          (ii) in the preparation of flaming food dishes, drinks, and desserts; and
             344          (c) each airport lounge patron may have no more than 2.75 ounces of spirituous liquor
             345      at a time before the patron.
             346          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             347      exceed five ounces per glass or individual portion.
             348          (ii) An individual portion may be served to a patron in more than one glass as long as
             349      the total amount of wine does not exceed five ounces.
             350          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             351      Subsection (7)(c).
             352          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             353      fixed by the commission to tables of four or more persons.
             354          (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
             355      the commission to tables of less than four persons.
             356          (c) A wine service may be performed and a service charge assessed by the airport
             357      lounge as authorized by commission rule for wine purchased at the airport lounge.
             358          (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
             359      fixed by the commission.
             360          (b) A service charge may be assessed by the airport lounge as authorized by
             361      commission rule for heavy beer purchased at the airport lounge.
             362          (5) (a) (i) Subject to Subsection (5)(a)(ii), an airport lounge licensed to sell liquor may
             363      sell beer for on-premise consumption:
             364          (A) in an open container; and
             365          (B) on draft.
             366          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does


             367      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             368      container that exceeds one liter.
             369          (b) An airport lounge that sells beer pursuant to Subsection (5)(a):
             370          (i) may do so without obtaining a separate on-premise beer retailer license from the
             371      commission; and
             372          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             373      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             374      inconsistent with or less restrictive than the operational restrictions under this part.
             375          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             376      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the airport
             377      lounge's:
             378          (i) state liquor license; and
             379          (ii) alcoholic beverage license issued by the local authority.
             380          (6) Alcoholic beverages may not be stored, served, or sold in any place other than as
             381      designated in the licensee's application, unless the licensee first applies for and receives
             382      approval from the department for a change of location within the airport lounge.
             383          (7) (a) A patron may only make purchases in the airport lounge from and be served by
             384      a person employed, designated, and trained by the licensee to sell, dispense, and serve alcoholic
             385      beverages.
             386          (b) Notwithstanding Subsection (7)(a), a patron who has purchased bottled wine from
             387      an employee of the airport lounge may serve wine from the bottle to the patron or others at the
             388      patron's table.
             389          (c) Each airport lounge patron may have no more than two alcoholic beverages of any
             390      kind at a time before the patron.
             391          (8) The liquor storage area shall remain locked at all times other than those hours and
             392      days when liquor sales and service are authorized by law.
             393          (9) Alcoholic beverages may not be sold, offered for sale, served, or otherwise
             394      furnished at an airport lounge on any day after 12 midnight and before 8 a.m.
             395          (10) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             396          (a) minor;
             397          (b) person actually, apparently, or obviously intoxicated;


             398          (c) known habitual drunkard; or
             399          (d) known interdicted person.
             400          (11) (a) (i) Liquor may be sold only at prices fixed by the commission.
             401          (ii) Liquor may not be sold at discount prices on any date or at any time.
             402          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             403      to the licensee.
             404          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             405      over consumption or intoxication.
             406          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             407      hours of the airport lounge's business day such as a "happy hour."
             408          (e) The sale or service of more than one alcoholic beverage for the price of a single
             409      alcoholic beverage is prohibited.
             410          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
             411      during any set period for a fixed price is prohibited.
             412          (g) An airport lounge licensee may not engage in a public promotion involving or
             413      offering free alcoholic beverages to the general public.
             414          (12) Alcoholic beverages may not be purchased for a patron of an airport lounge by:
             415          (a) the licensee; or
             416          (b) any employee or agent of the licensee.
             417          (13) (a) A person may not bring onto the premises of an airport lounge licensee any
             418      alcoholic beverage for on-premise consumption.
             419          (b) An airport lounge or its officers, managers, employees, or agents may not allow a
             420      person to bring onto the airport lounge premises any alcoholic beverage for on-premise
             421      consumption or allow consumption of any such alcoholic beverage on its premises.
             422          (14) An airport lounge licensee and its employees may not permit a patron to remove
             423      any alcoholic beverages from the airport lounge premises.
             424          (15) (a) A minor may not be employed by an airport lounge licensee to sell or dispense
             425      alcoholic beverages.
             426          (b) Notwithstanding Subsection (15)(a), a minor may be employed to enter the sale at a
             427      cash register or other sales recording device.
             428          (16) An employee of an airport lounge licensee, while on duty, may not:


             429          (a) consume an alcoholic beverage; or
             430          (b) be intoxicated.
             431          (17) Any charge or fee made in connection with the sale, service, or consumption of
             432      liquor may be stated in a food or alcoholic beverage menu including:
             433          (a) a set-up charge;
             434          (b) a service charge; or
             435          (c) a chilling fee.
             436          (18) Each airport lounge liquor licensee shall display in a prominent place in the airport
             437      lounge:
             438          (a) the liquor license that is issued by the department;
             439          (b) a list of the types and brand names of liquor being served through its calibrated
             440      metered dispensing system; and
             441          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             442      drugs is a serious crime that is prosecuted aggressively in Utah."
             443          (19) (a) Each airport lounge liquor licensee shall maintain an expense ledger or record
             444      showing in detail:
             445          (i) quarterly expenditures made separately for malt or brewed beverages, liquor, and all
             446      other items required by the department; and
             447          (ii) sales made separately for malt or brewed beverages, food, and all other items
             448      required by the department.
             449          (b) This record shall be kept:
             450          (i) in a form approved by the department; and
             451          (ii) current for each three-month period.
             452          (c) Each expenditure shall be supported by:
             453          (i) delivery tickets;
             454          (ii) invoices;
             455          (iii) receipted bills;
             456          (iv) canceled checks;
             457          (v) petty cash vouchers; or
             458          (vi) other sustaining data or memoranda.
             459          (d) In addition to a ledger or record required by Subsection (19)(a), each airport lounge


             460      liquor licensee shall maintain accounting and other records and documents as the department
             461      may require.
             462          (e) Any airport lounge or person acting for the airport lounge, who knowingly forges,
             463      falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the books of
             464      account or other documents of the airport lounge required to be made, maintained, or preserved
             465      by this title or the rules of the commission for the purpose of deceiving the commission or the
             466      department, or any of their officials or employees, is subject to:
             467          (i) the immediate suspension or revocation of the airport lounge's liquor license; and
             468          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             469          (20) An airport lounge liquor license may not be transferred from one location to
             470      another, without prior written approval of the commission.
             471          (21) (a) An airport lounge liquor licensee may not sell, transfer, assign, exchange,
             472      barter, give, or attempt in any way to dispose of the license to any other person, whether for
             473      monetary gain or not.
             474          (b) An airport lounge liquor license has no monetary value for the purpose of any type
             475      of disposition.
             476          (22) Each server of alcoholic beverages in a licensee's establishment shall keep a
             477      written beverage tab for each table or group that orders or consumes alcoholic beverages on the
             478      premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
             479      consumed.
             480          (23) An airport lounge liquor licensee's premises may not be leased for private
             481      functions.
             482          (24) An airport lounge liquor licensee may not on the premises of the airport lounge
             483      liquor licensee:
             484          (a) engage in or permit any form of gambling, [or] as defined and proscribed in Title
             485      76, Chapter 10, Part 11, Gambling;
             486          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             487      Part 11, Gambling[, on the premises of the airport lounge liquor licensee.]; or
             488          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             489      H. [ or simulates ] .H the risking of something of value for a return or for an outcome when the
             489a      return or
             490      outcome is based upon an element of chance, excluding the playing of an amusement device


             491      that confers only an immediate and unrecorded right of replay not exchangeable for value.
             492          Section 3. Section 32A-4-307 is amended to read:
             493           32A-4-307. Operational restrictions.
             494          Each person granted a limited restaurant license and the employees and management
             495      personnel of the restaurant shall comply with the following conditions and requirements.
             496      Failure to comply may result in a suspension or revocation of the license or other disciplinary
             497      action taken against individual employees or management personnel.
             498          (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
             499      except from state stores or package agencies.
             500          (b) Wine and heavy beer purchased in accordance with Subsection (1)(a) may be
             501      transported by the licensee from the place of purchase to the licensed premises.
             502          (c) Payment for wine and heavy beer shall be made in accordance with rules
             503      established by the commission.
             504          (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of
             505      spirituous liquor on the premises of the restaurant.
             506          (b) Spirituous liquor may not be on the premises of the restaurant except for use:
             507          (i) as a flavoring on desserts; and
             508          (ii) in the preparation of flaming food dishes, drinks, and desserts.
             509          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             510      exceed five ounces per glass or individual portion.
             511          (ii) An individual portion may be served to a patron in more than one glass as long as
             512      the total amount of wine does not exceed five ounces.
             513          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             514      Subsection (7)(e).
             515          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             516      fixed by the commission to tables of four or more persons.
             517          (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
             518      the commission to tables of less than four persons.
             519          (c) A wine service may be performed and a service charge assessed by the limited
             520      restaurant as authorized by commission rule for wine purchased at the limited restaurant.
             521          (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices


             522      fixed by the commission.
             523          (b) A service charge may be assessed by the limited restaurant as authorized by
             524      commission rule for heavy beer purchased at the restaurant.
             525          (5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer for
             526      on-premise consumption:
             527          (A) in an open container; and
             528          (B) on draft.
             529          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             530      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             531      container that exceeds one liter.
             532          (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
             533          (i) may do so without obtaining a separate on-premise beer retailer license from the
             534      commission; and
             535          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             536      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             537      inconsistent with or less restrictive than the operational restrictions under this part.
             538          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             539      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             540      restaurant's:
             541          (i) limited restaurant license; and
             542          (ii) alcoholic beverage license issued by the local authority.
             543          (6) Wine, heavy beer, and beer may not be stored, served, or sold in any place other
             544      than as designated in the licensee's application, unless the licensee first applies for and receives
             545      approval from the department for a change of location within the restaurant.
             546          (7) (a) (i) A patron may only make alcoholic beverage purchases in the limited
             547      restaurant from and be served by a person employed, designated, and trained by the licensee to
             548      sell and serve alcoholic beverages.
             549          (ii) Notwithstanding Subsection (7)(a)(i), a patron who has purchased bottled wine
             550      from an employee of the restaurant or has carried bottled wine onto the premises of the
             551      restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the patron
             552      or others at the patron's table.


             553          (b) Alcoholic beverages shall be delivered by a server to the patron.
             554          (c) Any alcoholic beverage may only be consumed at the patron's table or counter.
             555          (d) Alcoholic beverages may not be served to or consumed by a patron at a bar.
             556          (e) Each restaurant patron may have no more than two alcoholic beverages of any kind
             557      at a time before the patron.
             558          (8) The alcoholic beverage storage area shall remain locked at all times other than
             559      those hours and days when alcoholic beverage sales are authorized by law.
             560          (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
             561      furnished at a limited restaurant during the following days or hours:
             562          (i) until after the polls are closed on the day of any:
             563          (A) regular general election;
             564          (B) regular primary election; or
             565          (C) statewide special election;
             566          (ii) until after the polls are closed on the day of any municipal, special district, or
             567      school election, but only:
             568          (A) within the boundaries of the municipality, special district, or school district; and
             569          (B) if required by local ordinance; and
             570          (iii) on any other day after 12 midnight and before 12 noon.
             571          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             572      Licenses, for on-premise beer licensees.
             573          (10) Alcoholic beverages may not be sold except in connection with an order of food
             574      prepared, sold, and served at the restaurant.
             575          (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to any:
             576          (a) minor;
             577          (b) person actually, apparently, or obviously intoxicated;
             578          (c) known habitual drunkard; or
             579          (d) known interdicted person.
             580          (12) (a) (i) Wine and heavy beer may be sold only at prices fixed by the commission.
             581          (ii) Wine and heavy beer may not be sold at discount prices on any date or at any time.
             582          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverages
             583      to the licensee.


             584          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             585      over consumption or intoxication.
             586          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             587      hours of the limited restaurant's business day such as a "happy hour."
             588          (e) The sale or service of more than one alcoholic beverage for the price of a single
             589      alcoholic beverage is prohibited.
             590          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
             591      during any set period for a fixed price is prohibited.
             592          (g) A limited restaurant licensee may not engage in a public promotion involving or
             593      offering free alcoholic beverages to the general public.
             594          (13) Alcoholic beverages may not be purchased for a patron of the restaurant by:
             595          (a) the licensee; or
             596          (b) any employee or agent of the licensee.
             597          (14) (a) A person may not bring onto the premises of a limited restaurant licensee any
             598      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             599      discretion of the licensee, bottled wine onto the premises of any limited restaurant licensee for
             600      on-premise consumption.
             601          (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or its
             602      officers, managers, employees, or agents may not allow:
             603          (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
             604      consumption; or
             605          (ii) consumption of any alcoholic beverage described in Subsection (14)(b)(i) on its
             606      premises.
             607          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             608      or other representative of the licensee upon entering the restaurant.
             609          (d) A wine service may be performed and a service charge assessed by the restaurant as
             610      authorized by commission rule for wine carried in by a patron.
             611          (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and its
             612      employees may not permit a restaurant patron to carry from the restaurant premises an open
             613      container that:
             614          (i) is used primarily for drinking purposes; and


             615          (ii) contains any alcoholic beverage.
             616          (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
             617      contents of a bottle of wine if before removal the bottle has been recorked or recapped.
             618          (16) (a) A minor may not be employed by a limited restaurant licensee to sell or
             619      dispense alcoholic beverages.
             620          (b) Notwithstanding Subsection (16)(a), a minor may be employed to enter the sale at a
             621      cash register or other sales recording device.
             622          (17) An employee of a limited restaurant licensee, while on duty, may not:
             623          (a) consume an alcoholic beverage; or
             624          (b) be intoxicated.
             625          (18) A charge or fee made in connection with the sale, service, or consumption of wine
             626      or heavy beer may be stated in food or alcoholic beverage menus including:
             627          (a) a service charge; or
             628          (b) a chilling fee.
             629          (19) Each limited restaurant licensee shall display in a prominent place in the
             630      restaurant:
             631          (a) the license that is issued by the department; and
             632          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             633      drugs is a serious crime that is prosecuted aggressively in Utah."
             634          (20) The following acts or conduct in a restaurant licensed under this part are
             635      considered contrary to the public welfare and morals, and are prohibited upon the premises:
             636          (a) employing or using any person in the sale or service of alcoholic beverages while
             637      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             638      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             639      buttocks, vulva, or genitals;
             640          (b) employing or using the services of any person to mingle with the patrons while the
             641      person is unclothed or in attire, costume, or clothing described in Subsection (20)(a);
             642          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             643      buttocks, anus, or genitals of any other person;
             644          (d) permitting any employee or person to wear or use any device or covering, exposed
             645      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;


             646          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             647      the prohibited activities described in this Subsection (20);
             648          (f) permitting any person to remain in or upon the premises who exposes to public
             649      view any portion of that person's genitals or anus; or
             650          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             651      depicting:
             652          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             653      copulation, flagellation, or any sexual acts prohibited by Utah law;
             654          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             655      genitals;
             656          (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             657      drawings are used to portray, any of the prohibited activities described in this Subsection (20);
             658      or
             659          (iv) scenes wherein a person displays the vulva, anus, or the genitals.
             660          (21) Nothing in Subsection (20) precludes a local authority from being more restrictive
             661      of acts or conduct of the type prohibited in Subsection (20).
             662          (22) (a) Although live entertainment is permitted on the premises of a limited
             663      restaurant licensee, a licensee may not allow any person to perform or simulate sexual acts
             664      prohibited by Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral
             665      copulation, flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or
             666      genitals, or the displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform
             667      only upon a stage or at a designated area approved by the commission.
             668          (b) Nothing in Subsection (22)(a) precludes a local authority from being more
             669      restrictive of acts or conduct of the type prohibited in Subsection (22)(a).
             670          (23) A limited restaurant licensee may not on the premises of the restaurant:
             671          (a) engage in or permit any form of gambling, [or] as defined and proscribed in Title
             672      76, Chapter 10, Part 11, Gambling;
             673          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             674      Part 11, Gambling[, on the premises of the restaurant.]; or
             675          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             676      H. [ or simulates ] .H the risking of something of value for a return or for an outcome when the
             676a      return or


             677      outcome is based upon an element of chance, excluding the playing of an amusement device
             678      that confers only an immediate and unrecorded right of replay not exchangeable for value.
             679          (24) (a) Each limited restaurant licensee shall maintain an expense ledger or record
             680      showing in detail:
             681          (i) quarterly expenditures made separately for:
             682          (A) wine;
             683          (B) heavy beer;
             684          (C) beer;
             685          (D) food; and
             686          (E) all other items required by the department; and
             687          (ii) sales made separately for:
             688          (A) wine;
             689          (B) heavy beer;
             690          (C) beer;
             691          (D) food; and
             692          (E) all other items required by the department.
             693          (b) The record required by Subsection (24)(a) shall be kept:
             694          (i) in a form approved by the department; and
             695          (ii) current for each three-month period.
             696          (c) Each expenditure shall be supported by:
             697          (i) delivery tickets;
             698          (ii) invoices;
             699          (iii) receipted bills;
             700          (iv) canceled checks;
             701          (v) petty cash vouchers; or
             702          (vi) other sustaining data or memoranda.
             703          (d) In addition to the ledger or record maintained under Subsections (24)(a) through
             704      (c), a limited restaurant licensee shall maintain accounting and other records and documents as
             705      the department may require.
             706          (e) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,
             707      alters, cancels, destroys, conceals, or removes the entries in any of the books of account or


             708      other documents of the restaurant required to be made, maintained, or preserved by this title or
             709      the rules of the commission for the purpose of deceiving the commission or department, or any
             710      of their officials or employees, is subject to:
             711          (i) the suspension or revocation of the limited restaurant's license; and
             712          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             713          (25) (a) A limited restaurant licensee may not close or cease operation for a period
             714      longer than 240 hours, unless:
             715          (i) the limited restaurant licensee notifies the department in writing at least seven days
             716      before the closing; and
             717          (ii) the closure or cessation of operation is first approved by the department.
             718          (b) Notwithstanding Subsection (25)(a), in the case of emergency closure, immediate
             719      notice of closure shall be made to the department by telephone.
             720          (c) (i) Subject to Subsection (25)(c)(iii), the department may authorize a closure or
             721      cessation of operation for a period not to exceed 60 days.
             722          (ii) The department may extend the initial period an additional 30 days upon:
             723          (A) written request of the limited restaurant licensee; and
             724          (B) a showing of good cause.
             725          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             726      commission approval.
             727          (d) Any notice required by Subsection (25)(a) shall include:
             728          (i) the dates of closure or cessation of operation;
             729          (ii) the reason for the closure or cessation of operation; and
             730          (iii) the date on which the licensee will reopen or resume operation.
             731          (e) Failure of the licensee to provide notice and to obtain department authorization
             732      before closure or cessation of operation shall result in an automatic forfeiture of:
             733          (i) the license; and
             734          (ii) the unused portion of the license fee for the remainder of the license year effective
             735      immediately.
             736          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             737      result in an automatic forfeiture of:
             738          (i) the license; and


             739          (ii) the unused portion of the license fee for the remainder of the license year.
             740          (26) Each limited restaurant licensee shall maintain at least 70% of its total restaurant
             741      business from the sale of food, which does not include service charges.
             742          (27) A limited restaurant license may not be transferred from one location to another,
             743      without prior written approval of the commission.
             744          (28) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,
             745      give, or attempt in any way to dispose of the license to any other person whether for monetary
             746      gain or not.
             747          (b) A limited restaurant license has no monetary value for the purpose of any type of
             748      disposition.
             749          (29) (a) Each server of wine, heavy beer, and beer in a limited restaurant licensee's
             750      establishment shall keep a written beverage tab for each table or group that orders or consumes
             751      alcoholic beverages on the premises.
             752          (b) The beverage tab required by Subsection (29)(a) shall list the type and amount of
             753      alcoholic beverages ordered or consumed.
             754          (30) A limited restaurant licensee may not make a person's willingness to serve
             755      alcoholic beverages a condition of employment as a server with the restaurant.
             756          Section 4. Section 32A-4-406 is amended to read:
             757           32A-4-406. Operational restrictions.
             758          Each person granted an on-premise banquet license and the employees and management
             759      personnel of the on-premise banquet licensee shall comply with this title, the rules of the
             760      commission, and the following conditions and requirements. Failure to comply may result in a
             761      suspension or revocation of the license or other disciplinary action taken against individual
             762      employees or management personnel.
             763          (1) A person involved in the sale or service of alcoholic beverages under the
             764      on-premise banquet license shall:
             765          (a) be under the supervision and direction of the on-premise banquet licensee; and
             766          (b) complete the seminar provided for in Section 62A-15-401 .
             767          (2) (a) Liquor may not be purchased by the on-premise banquet licensee except from
             768      state stores or package agencies.
             769          (b) Liquor purchased in accordance with Subsection (2)(a) may be transported by the


             770      on-premise banquet licensee from the place of purchase to the licensed premises.
             771          (c) Payment for liquor shall be made in accordance with rules established by the
             772      commission.
             773          (3) Alcoholic beverages may be sold or provided at a banquet subject to the restrictions
             774      set forth in this Subsection (3).
             775          (a) An on-premise banquet licensee may sell or provide any primary spirituous liquor
             776      only in a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             777      dispensing system approved by the department in accordance with commission rules adopted
             778      under this title, except that:
             779          (i) spirituous liquor need not be dispensed through a calibrated metered dispensing
             780      system if used as a secondary flavoring ingredient in a beverage subject to the following
             781      restrictions:
             782          (A) the secondary ingredient may be dispensed only in conjunction with the purchase
             783      of a primary spirituous liquor;
             784          (B) the secondary ingredient may not be the only spirituous liquor in the beverage;
             785          (C) the on-premise banquet licensee shall designate a location where flavorings are
             786      stored on the floor plan provided to the department; and
             787          (D) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             788          (ii) spirituous liquor need not be dispensed through a calibrated metered dispensing
             789      system if used:
             790          (A) as a flavoring on desserts; and
             791          (B) in the preparation of flaming food dishes, drinks, and desserts;
             792          (iii) each attendee may have no more than 2.75 ounces of spirituous liquor at a time
             793      before the attendee; and
             794          (iv) each attendee may have no more than one spirituous liquor drink at a time before
             795      the attendee.
             796          (b) (i) (A) Wine may be sold and served by the glass or an individual portion not to
             797      exceed five ounces per glass or individual portion.
             798          (B) An individual portion may be served to an attendee in more than one glass as long
             799      as the total amount of wine does not exceed five ounces.
             800          (C) An individual portion of wine is considered to be one alcoholic beverage under


             801      Subsection (5)(c).
             802          (ii) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed
             803      by the commission.
             804          (iii) A wine service may be performed and a service charge assessed by the on-premise
             805      banquet licensee as authorized by commission rule for wine purchased on the banquet
             806      premises.
             807          (c) (i) Heavy beer may be served in original containers not exceeding one liter at prices
             808      fixed by the commission.
             809          (ii) A service charge may be assessed by the on-premise banquet licensee as authorized
             810      by commission rule for heavy beer purchased on the banquet premises.
             811          (d) (i) Except as provided in Subsection (3)(d)(ii), beer may be sold and served for
             812      on-premise consumption:
             813          (A) in an open container; and
             814          (B) on draft.
             815          (ii) Beer sold pursuant to Subsection (3)(d)(i) shall be in a size of container that does
             816      not exceed two liters, except that beer may not be sold to an individual attendee in a container
             817      size that exceeds one liter.
             818          (4) Alcoholic beverages may not be stored, served, or sold in any place other than as
             819      designated in the on-premise banquet licensee's application, except that additional locations in
             820      or on the premises of an on-premise banquet licensee may be approved in accordance with
             821      guidelines approved by the commission as provided in Subsection 32A-4-402 (2).
             822          (5) (a) An attendee may only make alcoholic beverage purchases from and be served by
             823      a person employed, designated, and trained by the on-premise banquet licensee to sell and
             824      serve alcoholic beverages.
             825          (b) Notwithstanding Subsection (5)(a), an attendee who has purchased bottled wine
             826      from an employee of the on-premise banquet licensee may thereafter serve wine from the bottle
             827      to the attendee or others at the attendee's table.
             828          (c) Each attendee may have no more than two alcoholic beverages of any kind at a time
             829      before the attendee.
             830          (6) The alcoholic beverage storage area shall remain locked at all times other than
             831      those hours and days when alcoholic beverage sales are authorized by law.


             832          (7) (a) Except as provided in Subsection (7)(b), alcoholic beverages may be offered for
             833      sale, sold, served, or otherwise furnished from 10 a.m. to 1 a.m. seven days a week:
             834          (i) at a banquet; or
             835          (ii) in connection with room service.
             836          (b) Notwithstanding Subsection (7)(a), a sale or service of alcoholic beverages may not
             837      occur at a banquet or in connection with room service until after the polls are closed on the day
             838      of:
             839          (i) a regular general election;
             840          (ii) a regular primary election; or
             841          (iii) a statewide special election.
             842          (8) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             843          (a) minor;
             844          (b) person actually, apparently, or obviously intoxicated;
             845          (c) known habitual drunkard; or
             846          (d) known interdicted person.
             847          (9) (a) (i) Liquor may be sold only at prices fixed by the commission.
             848          (ii) Liquor may not be sold at discount prices on any date or at any time.
             849          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             850      to the licensee.
             851          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             852      over consumption or intoxication.
             853          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             854      hours of the on-premise banquet licensee's business day such as a "happy hour."
             855          (e) The sale or service of more than one alcoholic beverage for the price of a single
             856      alcoholic beverage is prohibited.
             857          (f) An on-premise banquet licensee may not engage in a public promotion involving or
             858      offering free alcoholic beverages to the general public.
             859          (10) Alcoholic beverages may not be purchased for an attendee by:
             860          (a) the on-premise banquet licensee; or
             861          (b) any employee or agent of the on-premise banquet licensee.
             862          (11) An attendee of a banquet may not bring any alcoholic beverage into or onto, or


             863      remove any alcoholic beverage from the premises of a banquet.
             864          (12) (a) Except as otherwise provided in this title, the sale and service of alcoholic
             865      beverages by an on-premise banquet licensee at a banquet shall be made only for consumption
             866      at the location of the banquet.
             867          (b) The host of a banquet, an attendee, or any other person other than the on-premise
             868      banquet licensee or its employees, may not remove any alcoholic beverage from the premises
             869      of the banquet.
             870          (13) An on-premise banquet licensee employee shall remain at the banquet at all times
             871      when alcoholic beverages are being sold, served, or consumed at the banquet.
             872          (14) (a) An on-premise banquet licensee may not leave any unsold alcoholic beverages
             873      at the banquet following the conclusion of the banquet.
             874          (b) At the conclusion of a banquet, the on-premise banquet licensee or its employees,
             875      shall:
             876          (i) destroy any opened and unused alcoholic beverages that are not saleable, under
             877      conditions established by the department; and
             878          (ii) return to the on-premise banquet licensee's approved locked storage area any:
             879          (A) opened and unused alcoholic beverage that is saleable; and
             880          (B) unopened containers of alcoholic beverages.
             881          (15) Except as provided in Subsection (14), any open or sealed container of alcoholic
             882      beverages not sold or consumed at a banquet:
             883          (a) shall be stored by the on-premise banquet licensee in the licensee's approved locked
             884      storage area; and
             885          (b) may be used at more than one banquet.
             886          (16) An on-premise banquet licensee may not employ a minor to sell, serve, dispense,
             887      or otherwise furnish alcoholic beverages in connection with the licensee's banquet and room
             888      service activities.
             889          (17) An employee of an on-premise banquet licensee, while on duty, may not:
             890          (a) consume an alcoholic beverage; or
             891          (b) be intoxicated.
             892          (18) An on-premise banquet licensee shall prominently display at each banquet at
             893      which alcoholic beverages are sold or served:


             894          (a) a copy of the licensee's on-premise banquet license; and
             895          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             896      drugs is a serious crime that is prosecuted aggressively in Utah."
             897          (19) The following acts or conduct are considered contrary to the public welfare and
             898      morals, and are prohibited at and during the hours of a banquet:
             899          (a) employing or using any person in the sale or service of alcoholic beverages while
             900      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             901      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             902      buttocks, vulva, or genitals;
             903          (b) employing or using the services of any person to mingle with the patrons while the
             904      person is unclothed or in attire, costume, or clothing described in Subsection (19)(a);
             905          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             906      buttocks, anus, or genitals of any other person;
             907          (d) permitting any employee or person to wear or use any device or covering, exposed
             908      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
             909          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             910      the prohibited activities described in this Subsection (19);
             911          (f) permitting any person to remain in or upon the premises who exposes to public
             912      view any portion of that person's genitals or anus; or
             913          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             914      depicting:
             915          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             916      copulation, flagellation, or any sexual acts prohibited by Utah law;
             917          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             918      genitals;
             919          (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             920      drawings are used to portray, any of the prohibited activities described in this Subsection (19);
             921      or
             922          (iv) scenes wherein a person displays the vulva, anus, or the genitals.
             923          (20) Nothing in Subsection (19) precludes a local authority from being more restrictive
             924      of acts or conduct of the type prohibited in Subsection (19).


             925          (21) (a) Although live entertainment is permitted at a banquet, an on-premise banquet
             926      licensee may not allow any person to perform or simulate sexual acts prohibited by Utah law,
             927      including sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation, the
             928      touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the displaying of
             929      the pubic hair, anus, vulva, or genitals.
             930          (b) Nothing in Subsection (21)(a) precludes a local authority from being more
             931      restrictive of acts or conduct of the type prohibited in Subsection (21)(a).
             932          (22) An on-premise banquet licensee may not on the premises of the hotel, resort
             933      facility, sports center, or convention center:
             934          (a) engage in or permit any form of gambling, [or] as defined and proscribed in Title
             935      76, Chapter 10, Part 11, Gambling;
             936          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             937      Part 11, Gambling[, on the premises of the:]; or
             938          [(a) hotel;]
             939          [(b) resort facility;]
             940          [(c) sports center; or]
             941          [(d) convention center.]
             942          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             943      H. [ or simulates ] .H the risking of something of value for a return or for an outcome
             943a      when the return or
             944      outcome is based upon an element of chance, excluding the playing of an amusement device
             945      that confers only an immediate and unrecorded right of replay not exchangeable for value.
             946          (23) (a) An on-premise banquet licensee shall maintain accounting and such other
             947      records and documents as the commission or department may require.
             948          (b) An on-premise banquet licensee or person acting for the on-premise banquet
             949      licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the
             950      entries in any of the books of account or other documents of the on-premise banquet licensee
             951      required to be made, maintained, or preserved by this title or the rules of the commission for
             952      the purpose of deceiving the commission or department, or any of their officials or employees,
             953      is subject to:
             954          (i) the suspension or revocation of the on-premise banquet license; and
             955          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.


             956          (24) (a) For the purpose described in Subsection (24)(b), an on-premise banquet
             957      licensee shall provide the department with advance notice of a scheduled banquet in
             958      accordance with rules made by the commission in accordance with Title 63, Chapter 46a, Utah
             959      Administrative Rulemaking Act.
             960          (b) The advance notice required by Subsection (24)(a) is required to provide any of the
             961      following the opportunity to conduct a random inspection of a banquet:
             962          (i) an authorized representative of the commission or the department; or
             963          (ii) a law enforcement officer.
             964          (25) An on-premise banquet licensee shall maintain at least 50% of its total annual
             965      banquet gross receipts from the sale of food, not including:
             966          (a) mix for alcoholic beverages; and
             967          (b) charges in connection with the service of alcoholic beverages.
             968          (26) A person may not transfer an on-premise banquet license from one business
             969      location to another without prior written approval of the commission.
             970          (27) (a) An on-premise banquet licensee may not sell, transfer, assign, exchange,
             971      barter, give, or attempt in any way to dispose of the license to any other person, whether for
             972      monetary gain or not.
             973          (b) An on-premise banquet license has no monetary value for the purpose of any type
             974      of disposition.
             975          (28) (a) Room service of alcoholic beverages to a guest room of a hotel or resort
             976      facility shall be provided in person by an on-premise banquet licensee employee only to an
             977      adult guest in the guest room.
             978          (b) Alcoholic beverages may not be left outside a guest room for retrieval by a guest.
             979          (c) An on-premise banquet licensee may only provide alcoholic beverages for room
             980      service in sealed containers.
             981          Section 5. Section 32A-5-107 is amended to read:
             982           32A-5-107. Operational restrictions.
             983          Each club granted a private club license and the employees, management personnel, and
             984      members of the club shall comply with the following conditions and requirements. Failure to
             985      comply may result in a suspension or revocation of the license or other disciplinary action
             986      taken against individual employees or management personnel.


             987          (1) Each private club shall have a governing body that:
             988          (a) consists of three or more members of the club; and
             989          (b) holds regular meetings to:
             990          (i) review membership applications; and
             991          (ii) conduct any other business as required by the bylaws or house rules of the private
             992      club.
             993          (2) (a) Each private club may admit an individual as a member only on written
             994      application signed by the applicant, subject to:
             995          (i) the applicant paying an application fee as required by Subsection (4); and
             996          (ii) investigation, vote, and approval of a quorum of the governing body.
             997          (b) (i) Admissions shall be recorded in the official minutes of a regular meeting of the
             998      governing body.
             999          (ii) An application, whether approved or disapproved, shall be filed as a part of the
             1000      official records of the licensee.
             1001          (c) Notwithstanding Subsection (2)(a), a private club, in its discretion, may admit an
             1002      applicant and immediately accord the applicant temporary privileges of a member until the
             1003      governing body completes its investigation and votes on the application, subject to the
             1004      following conditions:
             1005          (i) the applicant shall:
             1006          (A) submit a written application; and
             1007          (B) pay the application fee required by Subsection (4);
             1008          (ii) the governing body votes on the application at its next meeting which shall take
             1009      place no later than 31 days following the day on which the application was submitted; and
             1010          (iii) the applicant's temporary membership privileges are terminated if the governing
             1011      body disapproves the application.
             1012          (d) The spouse of a member of any class of private club is entitled to all the rights and
             1013      privileges of the member:
             1014          (i) to the extent permitted by the bylaws or house rules of the private club; and
             1015          (ii) except to the extent restricted by this title.
             1016          (e) The minor child of a member of a class A private club is entitled to all the rights
             1017      and privileges of the member:


             1018          (i) to the extent permitted by the bylaws or house rules of the private club; and
             1019          (ii) except to the extent restricted by this title.
             1020          (3) (a) Each private club shall maintain a current and complete membership record
             1021      showing:
             1022          (i) the date of application of each proposed member;
             1023          (ii) each member's address;
             1024          (iii) the date the governing body approved a member's admission;
             1025          (iv) the date initiation fees and dues were assessed and paid; and
             1026          (v) the serial number of the membership card issued to each member.
             1027          (b) A current record shall also be kept indicating when members are dropped or
             1028      resigned.
             1029          (4) (a) Each private club shall establish in the club bylaws or house rules application
             1030      fees and membership dues:
             1031          (i) as established by commission rules; and
             1032          (ii) which are collected from all members.
             1033          (b) An application fee:
             1034          (i) shall not be less than $4;
             1035          (ii) shall be paid when the applicant applies for membership; and
             1036          (iii) at the discretion of the private club, may be credited toward membership dues if
             1037      the governing body approves the applicant as a member.
             1038          (5) (a) Each private club may, in its discretion, allow an individual to be admitted to or
             1039      use the club premises as a guest only under the following conditions:
             1040          (i) each guest must be previously authorized by one of the following who agrees to host
             1041      the guest into the club:
             1042          (A) an active member of the club; or
             1043          (B) a holder of a current visitor card;
             1044          (ii) each guest must be known by the guest's host based on a preexisting bonafide
             1045      business or personal relationship with the host prior to the guest's admittance to the club;
             1046          (iii) each guest must be accompanied by the guest's host for the duration of the guest's
             1047      visit to the club;
             1048          (iv) each guest's host must remain on the club premises for the duration of the guest's


             1049      visit to the club;
             1050          (v) each guest's host is responsible for the cost of all services extended to the guest;
             1051          (vi) each guest enjoys only those privileges derived from the guest's host for the
             1052      duration of the guest's visit to the club;
             1053          (vii) an employee of the club, while on duty, may not act as a host for a guest;
             1054          (viii) an employee of the club, while on duty, may not attempt to locate a member or
             1055      current visitor card holder to serve as a host for a guest with whom the member or visitor card
             1056      holder has no acquaintance based on a preexisting bonafide business or personal relationship
             1057      prior to the guest's arrival at the club; and
             1058          (ix) a club and its employees may not enter into an agreement or arrangement with a
             1059      club member or holder of a current visitor card to indiscriminately host members of the general
             1060      public into the club as guests.
             1061          (b) Notwithstanding Subsection (5)(a), previous authorization is not required if:
             1062          (i) the licensee is a class B private club; and
             1063          (ii) the guest is a member of the same fraternal organization as the private club
             1064      licensee.
             1065          (6) Each private club may, in its discretion, issue visitor cards to allow individuals to
             1066      enter and use the club premises on a temporary basis under the following conditions:
             1067          (a) each visitor card shall be issued for a period not to exceed three weeks;
             1068          (b) a fee of not less than $4 shall be assessed for each visitor card issued;
             1069          (c) a visitor card shall not be issued to a minor;
             1070          (d) a holder of a visitor card may not host more than seven guests at one time;
             1071          (e) each visitor card issued shall include:
             1072          (i) the visitor's full name and signature;
             1073          (ii) the date the card was issued;
             1074          (iii) the date the card expires;
             1075          (iv) the club's name; and
             1076          (v) the serial number of the card; and
             1077          (f) (i) the club shall maintain a current record of the issuance of each visitor card on the
             1078      club premises; and
             1079          (ii) the record described in Subsection (6)(f)(i) shall:


             1080          (A) be available for inspection by the department; and
             1081          (B) include:
             1082          (I) the name of the person to whom the card was issued;
             1083          (II) the date the card was issued;
             1084          (III) the date the card expires; and
             1085          (IV) the serial number of the card.
             1086          (7) A private club may not sell alcoholic beverages to or allow any patron to be
             1087      admitted to or use the club premises other than:
             1088          (a) a member;
             1089          (b) a visitor who holds a valid visitor card issued under Subsection (6); or
             1090          (c) a guest of:
             1091          (i) a member; or
             1092          (ii) a holder of a current visitor card.
             1093          (8) (a) A minor may not be:
             1094          (i) a member, officer, director, or trustee of a private club;
             1095          (ii) issued a visitor card;
             1096          (iii) admitted into, use, or be on the premises of a class D private club except to the
             1097      extent authorized under Subsections (8)(b) through (g);
             1098          (iv) admitted into, use, or be on the premises of any lounge or bar area, as defined by
             1099      commission rule, of any private club except to the extent authorized under Subsection
             1100      (8)(c)(ii); or
             1101          (v) admitted into, use, or be on the premises of any private club that:
             1102          (A) provides sexually oriented adult entertainment as defined by commission rule or by
             1103      local ordinance; or
             1104          (B) operates as a sexually oriented business as defined by commission rule or by local
             1105      ordinance.
             1106          (b) At the discretion of a class D private club, a minor may be admitted into, use, or be
             1107      on the premises of a class D private club under the following circumstances:
             1108          (i) during periods when no alcoholic beverages are sold, served, otherwise furnished,
             1109      or consumed on the premises, but in no event later than 1 p.m.;
             1110          (ii) when accompanied at all times by a member or holder of a current visitor card who


             1111      is the minor's parent, legal guardian, or spouse; and
             1112          (iii) the private club has a full kitchen and is licensed by the local jurisdiction as a food
             1113      service provider.
             1114          (c) A minor may be employed by a class D private club on the premises of the club if:
             1115          (i) the parent or legal guardian of the minor owns or operates the class D private club;
             1116      or
             1117          (ii) the minor performs maintenance and cleaning services during the hours when the
             1118      club is not open for business.
             1119          (d) (i) Subject to Subsection (8)(d)(ii), a minor who is at least 18 years of age may be
             1120      admitted into, use, or be on the premises of a dance or concert hall if:
             1121          (A) the dance or concert hall is located:
             1122          (I) on the premises of a class D private club; or
             1123          (II) on the property that immediately adjoins the premises of and is operated by a class
             1124      D private club; and
             1125          (B) the commission has issued the class D private club a permit to operate a minor
             1126      dance or concert hall based on the criteria described in Subsection (8)(d)(iii).
             1127          (ii) If the dance or concert hall is located on the premises of a class D private club, a
             1128      minor must be properly hosted in accordance with Subsection (5) by:
             1129          (A) a member; or
             1130          (B) a holder of a current visitor card.
             1131          (iii) The commission may issue a minor dance or concert hall permit if:
             1132          (A) the club's lounge, bar, and alcoholic beverage consumption area is:
             1133          (I) not accessible to minors;
             1134          (II) clearly defined; and
             1135          (III) separated from the dance or concert hall area by walls, multiple floor levels, or
             1136      other substantial physical barriers;
             1137          (B) any bar or dispensing area is not visible to minors;
             1138          (C) no consumption of alcoholic beverages may occur in:
             1139          (I) the dance or concert hall area; or
             1140          (II) any area of the club accessible to a minor;
             1141          (D) the club maintains sufficient security personnel to prevent the passing of beverages


             1142      from the club's lounge, bar, or alcoholic beverage consumption areas to:
             1143          (I) the dance or concert hall area; or
             1144          (II) any area of the club accessible to a minor;
             1145          (E) there are separate entrances, exits, and restroom facilities from the club's lounge,
             1146      bar, and alcoholic beverage consumption areas than for:
             1147          (I) the dance or concert hall area; or
             1148          (II) any area accessible to a minor; and
             1149          (F) the club complies with any other restrictions imposed by the commission by rule.
             1150          (e) A minor under 18 years of age who is accompanied at all times by a parent or legal
             1151      guardian who is a member or holder of a current visitor card may be admitted into, use, or be
             1152      on the premises of a concert hall described in Subsection (8)(d)(i) if:
             1153          (i) all requirements of Subsection (8)(d) are met; and
             1154          (ii) all signage, product, and dispensing equipment containing recognition of alcoholic
             1155      beverages is not visible to the minor.
             1156          (f) A minor under 18 years of age but who is 14 years of age or older who is not
             1157      accompanied by a parent or legal guardian may be admitted into, use, or be on the premises of
             1158      a concert hall described in Subsection (8)(d)(i) if:
             1159          (i) all requirements of Subsections (8)(d) and (8)(e)(ii) are met; and
             1160          (ii) there is no alcoholic beverage, sales, service, or consumption on the premises of the
             1161      class D private club.
             1162          (g) The commission may suspend or revoke a minor dance or concert permit issued to
             1163      a class D private club and suspend or revoke the license of the class D private club if:
             1164          (i) the club fails to comply with the restrictions in Subsection (8)(d), (e), or (f);
             1165          (ii) the club sells, serves, or otherwise furnishes alcoholic beverages to a minor;
             1166          (iii) the licensee or a supervisory or managerial level employee of the private club is
             1167      convicted under Title 58, Chapter 37, Utah Controlled Substances Act, on the basis of activities
             1168      that occurred on:
             1169          (A) the licensed premises; or
             1170          (B) the dance or concert hall that is located on property that immediately adjoins the
             1171      premises of and is operated by the class D private club;
             1172          (iv) there are three or more convictions of patrons of the private club under Title 58,


             1173      Chapter 37, Utah Controlled Substances Act, based on activities that occurred on:
             1174          (A) the licensed premises; or
             1175          (B) the dance or concert hall that is located on property that immediately adjoins the
             1176      premises of and is operated by the class D private club;
             1177          (v) there is more than one conviction:
             1178          (A) of:
             1179          (I) the licensee;
             1180          (II) an employee of the licensee;
             1181          (III) an entertainer contracted by the licensee; or
             1182          (IV) a patron of the private club; and
             1183          (B) made on the basis of lewd acts or lewd entertainment prohibited by this title that
             1184      occurred on:
             1185          (I) the licensed premises; or
             1186          (II) the dance or concert hall that is located on property that immediately adjoins the
             1187      premises of and is operated by the class D private club; or
             1188          (vi) the commission finds acts or conduct contrary to the public welfare and morals
             1189      involving lewd acts or lewd entertainment prohibited by this title that occurred on:
             1190          (A) the licensed premises; or
             1191          (B) the dance or concert hall that is located on property that immediately adjoins the
             1192      premises of and is operated by the class D private club.
             1193          (h) Nothing in this Subsection (8) shall prohibit a class D private club from selling,
             1194      serving, or otherwise furnishing alcoholic beverages in a dance or concert area located on the
             1195      club premises on days and times when the club does not allow minors into those areas.
             1196          (i) Nothing in Subsections (8)(a) through (g) precludes a local authority from being
             1197      more restrictive of a minor's admittance to, use of, or presence on the premises of any private
             1198      club.
             1199          (9) An employee of a club, while on duty, may not:
             1200          (a) consume an alcoholic beverage;
             1201          (b) be intoxicated; or
             1202          (c) act as a host for a guest.
             1203          (10) (a) Each private club shall maintain an expense ledger or record showing in detail


             1204      all expenditures separated by payments for:
             1205          (i) malt or brewed beverages;
             1206          (ii) liquor;
             1207          (iii) food;
             1208          (iv) detailed payroll;
             1209          (v) entertainment;
             1210          (vi) rent;
             1211          (vii) utilities;
             1212          (viii) supplies; and
             1213          (ix) all other expenditures.
             1214          (b) The record required by this Subsection (10) shall be:
             1215          (i) kept in a form approved by the department; and
             1216          (ii) balanced each month.
             1217          (c) Each expenditure shall be supported by:
             1218          (i) delivery tickets;
             1219          (ii) invoices;
             1220          (iii) receipted bills;
             1221          (iv) canceled checks;
             1222          (v) petty cash vouchers; or
             1223          (vi) other sustaining data or memoranda.
             1224          (d) All invoices and receipted bills for the current calendar or fiscal year documenting
             1225      purchases made by the club shall also be maintained.
             1226          (11) (a) Each private club shall maintain a minute book that is posted currently by the
             1227      club.
             1228          (b) The minute book required by this Subsection (11) shall contain the minutes of all
             1229      regular and special meetings of the governing body.
             1230          (c) Membership lists shall also be maintained.
             1231          (12) (a) Each private club shall maintain current copies of the club's current bylaws and
             1232      current house rules.
             1233          (b) Changes in the bylaws or house rules:
             1234          (i) are not effective unless submitted to the department within ten days after adoption;


             1235      and
             1236          (ii) become effective 15 days after received by the department unless rejected by the
             1237      department before the expiration of the 15-day period.
             1238          (13) Each private club shall maintain accounting and other records and documents as
             1239      the department may require.
             1240          (14) Any club or person acting for the club, who knowingly forges, falsifies, alters,
             1241      cancels, destroys, conceals, or removes the entries in any of the books of account or other
             1242      documents of the club required to be made, maintained, or preserved by this title or the rules of
             1243      the commission for the purpose of deceiving the commission or the department, or any of their
             1244      officials or employees, is subject to:
             1245          (a) the suspension or revocation of the club's license; and
             1246          (b) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1247          (15) (a) Each private club shall maintain and keep all the records required by this
             1248      section and all other books, records, receipts, and disbursements maintained or used by the
             1249      licensee, as the department requires, for a minimum period of three years.
             1250          (b) All records, books, receipts, and disbursements are subject to inspection by
             1251      authorized representatives of the commission and the department.
             1252          (c) The club shall allow the department, through its auditors or examiners, to audit all
             1253      records of the club at times the department considers advisable.
             1254          (d) The department shall audit the records of the licensee at least once annually.
             1255          (16) Each private club shall own or lease premises suitable for the club's activities.
             1256          (17) (a) A private club may not maintain facilities in any manner that barricades or
             1257      conceals the club operation.
             1258          (b) Any member of the commission, authorized department personnel, or any peace
             1259      officer shall, upon presentation of credentials, be admitted immediately to the club and
             1260      permitted without hindrance or delay to inspect completely the entire club premises and all
             1261      books and records of the licensee, at any time during which the same are open for the
             1262      transaction of business to its members.
             1263          (18) Any public advertising related to a private club by the following shall clearly
             1264      identify a club as being "a private club for members":
             1265          (a) the private club;


             1266          (b) the employees or agents of the private club; or
             1267          (c) any person under a contract or agreement with the club.
             1268          (19) A private club must have food available at all times when alcoholic beverages are
             1269      sold, served, or consumed on the premises.
             1270          (20) (a) Liquor may not be purchased by a private club licensee except from state
             1271      stores or package agencies.
             1272          (b) Liquor purchased in accordance with Subsection (20)(a) may be transported by the
             1273      licensee from the place of purchase to the licensed premises.
             1274          (c) Payment for liquor shall be made in accordance with rules established by the
             1275      commission.
             1276          (21) A private club licensee may sell or provide any primary spirituous liquor only in a
             1277      quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             1278      dispensing system approved by the department in accordance with commission rules adopted
             1279      under this title, except that:
             1280          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1281      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1282      restrictions:
             1283          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             1284      a primary spirituous liquor;
             1285          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             1286          (iii) the private club licensee shall designate a location where flavorings are stored on
             1287      the floor plan provided to the department; and
             1288          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             1289          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1290      system if used:
             1291          (i) as a flavoring on desserts; and
             1292          (ii) in the preparation of flaming food dishes, drinks, and desserts; and
             1293          (c) each club patron may have no more than 2.75 ounces of spirituous liquor at a time
             1294      before the patron.
             1295          (22) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             1296      exceed five ounces per glass or individual portion.


             1297          (ii) An individual portion may be served to a patron in more than one glass as long as
             1298      the total amount of wine does not exceed five ounces.
             1299          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1300      Subsection (26)(c).
             1301          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             1302      fixed by the commission to tables of four or more persons.
             1303          (ii) Wine may be sold and served in containers not exceeding 750 ml at prices fixed by
             1304      the commission to tables of less than four persons.
             1305          (c) A wine service may be performed and a service charge assessed by the private club
             1306      as authorized by commission rule for wine purchased at the private club.
             1307          (23) (a) Heavy beer may be served in original containers not exceeding one liter at
             1308      prices fixed by the commission.
             1309          (b) A service charge may be assessed by the private club for heavy beer purchased at
             1310      the private club.
             1311          (24) (a) (i) Subject to Subsection (24)(a)(ii), a private club licensed to sell liquor may
             1312      sell beer for on-premise consumption:
             1313          (A) in an open container; and
             1314          (B) on draft.
             1315          (ii) Beer sold pursuant to Subsection (24)(a)(i) shall be in a size of container that does
             1316      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1317      container that exceeds one liter.
             1318          (b) (i) A private club licensed under this chapter that sells beer pursuant to Subsection
             1319      (24)(a):
             1320          (A) may do so without obtaining a separate on-premise beer retailer license from the
             1321      commission; and
             1322          (B) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1323      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             1324      inconsistent with or less restrictive than the operational restrictions under this chapter.
             1325          (ii) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1326      Licenses, required by Subsection (24)(b)(i) may result in a suspension or revocation of the
             1327      private club's:


             1328          (A) state liquor license; and
             1329          (B) alcoholic beverage license issued by the local authority.
             1330          (25) Alcoholic beverages may not be stored, served, or sold in any place other than as
             1331      designated in the licensee's application, unless the licensee first applies for and receives
             1332      approval from the department for a change of location within the private club.
             1333          (26) (a) A patron may only make alcoholic beverage purchases in the private club from
             1334      and be served by a person employed, designated, and trained by the licensee to sell, dispense,
             1335      and serve alcoholic beverages.
             1336          (b) Notwithstanding Subsection (26)(a), a patron who has purchased bottled wine from
             1337      an employee of the private club or has carried bottled wine onto the premises of the private
             1338      club pursuant to Subsection (32) may thereafter serve wine from the bottle to the patron or
             1339      others at the patron's table.
             1340          (c) Each club patron may have no more than two alcoholic beverages of any kind at a
             1341      time before the patron.
             1342          (27) The liquor storage area shall remain locked at all times other than those hours and
             1343      days when liquor sales and service are authorized by law.
             1344          (28) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             1345      private club during the following days or hours:
             1346          (i) until after the polls are closed on the day of any:
             1347          (A) regular general election;
             1348          (B) regular primary election; or
             1349          (C) statewide special election;
             1350          (ii) until after the polls are closed on the day of any municipal, special district, or
             1351      school election, but only:
             1352          (A) within the boundaries of the municipality, special district, or school district; and
             1353          (B) if required by local ordinance; and
             1354          (iii) on any other day after 1 a.m. and before 10 a.m.
             1355          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             1356      Licenses, for on-premise beer licenses.
             1357          (c) (i) Notwithstanding Subsections (28)(a) and (b), a private club shall remain open
             1358      for one hour after the private club ceases the sale and service of alcoholic beverages during


             1359      which time a patron of the club may finish consuming:
             1360          (A) any single drink containing spirituous liquor;
             1361          (B) a single serving of wine not exceeding five ounces;
             1362          (C) a single serving of heavy beer; or
             1363          (D) a single serving of beer not exceeding 26 ounces.
             1364          (ii) A club is not required to remain open:
             1365          (A) after all patrons have vacated the premises; or
             1366          (B) during an emergency.
             1367          (d) Between the hours of 2 a.m. and 10 a.m. on any day a private club may not allow a
             1368      patron to remain on the premises to consume alcoholic beverages on the premises.
             1369          (29) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             1370          (a) minor;
             1371          (b) person actually, apparently, or obviously intoxicated;
             1372          (c) known habitual drunkard; or
             1373          (d) known interdicted person.
             1374          (30) (a) (i) Liquor may be sold only at prices fixed by the commission.
             1375          (ii) Liquor may not be sold at discount prices on any date or at any time.
             1376          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             1377      to the licensee.
             1378          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1379      over consumption or intoxication.
             1380          (d) The price of a single serving of a primary spirituous liquor shall be the same
             1381      whether served as a single drink or in conjunction with another alcoholic beverage.
             1382          (e) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1383      hours of the private club's business day such as a "happy hour."
             1384          (f) The sale or service of more than one alcoholic beverage for the price of a single
             1385      alcoholic beverage is prohibited.
             1386          (g) The sale or service of an indefinite or unlimited number of alcoholic beverages
             1387      during any set period for a fixed price is prohibited.
             1388          (h) A private club licensee may not engage in a promotion involving or offering free
             1389      alcoholic beverages to patrons of the club.


             1390          (31) Alcoholic beverages may not be purchased for a patron of the private club by:
             1391          (a) the licensee; or
             1392          (b) any employee or agent of the licensee.
             1393          (32) (a) A person may not bring onto the premises of a private club licensee any
             1394      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             1395      discretion of the licensee, bottled wine onto the premises of any private club licensee for
             1396      on-premise consumption.
             1397          (b) Except bottled wine under Subsection (32)(a), a private club or its officers,
             1398      managers, employees, or agents may not allow:
             1399          (i) a person to bring onto the private club premises any alcoholic beverage for
             1400      consumption on the private club premises; or
             1401          (ii) consumption of alcoholic beverages described in Subsection (32)(b)(i) on the
             1402      premises of the private club.
             1403          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             1404      or other representative of the licensee upon entering the private club.
             1405          (d) A wine service may be performed and a service charge assessed by the private club
             1406      as authorized by commission rule for wine carried in by a patron.
             1407          (33) (a) Except as provided in Subsection (33)(b), a private club and its employees may
             1408      not permit a patron of the club to carry from the club premises an open container that:
             1409          (i) is used primarily for drinking purposes; and
             1410          (ii) contains any alcoholic beverage.
             1411          (b) A patron may remove the unconsumed contents of a bottle of wine if before
             1412      removal the bottle has been recorked or recapped.
             1413          (34) (a) A minor may not be employed by any class A, B, or C private club to sell,
             1414      dispense, or handle any alcoholic beverage.
             1415          (b) Notwithstanding Subsection (34)(a), a minor may be employed by a class A or C
             1416      private club to enter the sale at a cash register or other sales recording device.
             1417          (c) Except to the extent authorized in Subsection (8)(c), a minor may not be employed
             1418      by or be on the premises of any class D private club.
             1419          (d) A minor may not be employed to work in any lounge or bar area of any class A, B,
             1420      or C private club.


             1421          (35) An employee of a private club, while on duty, may not:
             1422          (a) consume an alcoholic beverage; or
             1423          (b) be intoxicated.
             1424          (36) (a) A private club may not charge for the service or supply of glasses, ice, or
             1425      mixers unless:
             1426          (i) the charges are fixed in the house rules of the club; and
             1427          (ii) a copy of the house rules is kept on the club premises and available at all times for
             1428      examination by patrons of the club.
             1429          (b) A charge or fee made in connection with the sale, service, or consumption of liquor
             1430      may be stated in food or alcoholic beverage menus including:
             1431          (i) a set-up charge;
             1432          (ii) a service charge; or
             1433          (iii) a chilling fee.
             1434          (37) Each private club licensee shall display in a prominent place in the private club:
             1435          (a) the private club license that is issued by the department;
             1436          (b) a list of the types and brand names of liquor being served through its calibrated
             1437      metered dispensing system; and
             1438          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1439      drugs is a serious crime that is prosecuted aggressively in Utah."
             1440          (38) The following acts or conduct in a private club licensed under this chapter are
             1441      considered contrary to the public welfare and morals, and are prohibited upon the premises:
             1442          (a) employing or using any person in the sale or service of alcoholic beverages while
             1443      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             1444      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             1445      buttocks, vulva, or genitals;
             1446          (b) employing or using the services of any person to mingle with the patrons while the
             1447      person is unclothed or in attire, costume, or clothing described in Subsection (38)(a);
             1448          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             1449      buttocks, anus, or genitals of any other person;
             1450          (d) permitting any employee or person to wear or use any device or covering, exposed
             1451      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;


             1452          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             1453      the prohibited activities described in this Subsection (38);
             1454          (f) permitting any person to remain in or upon the premises who exposes to public
             1455      view any portion of his or her genitals or anus; or
             1456          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             1457      depicting:
             1458          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             1459      copulation, flagellation, or any sexual acts prohibited by Utah law;
             1460          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             1461      genitals;
             1462          (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             1463      drawings are used to portray, any of the prohibited activities described in this Subsection (38);
             1464      or
             1465          (iv) scenes wherein a person displays the vulva or the anus or the genitals.
             1466          (39) Nothing in Subsection (38) precludes a local authority from being more restrictive
             1467      of acts or conduct of the type prohibited in Subsection (38).
             1468          (40) (a) Although live entertainment is permitted on the premises of a club liquor
             1469      licensee, a licensee may not allow any person to perform or simulate sexual acts prohibited by
             1470      Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral copulation,
             1471      flagellation, or the touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or
             1472      the displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon
             1473      a stage or at a designated area approved by the commission.
             1474          (b) Nothing in Subsection (40)(a) precludes a local authority from being more
             1475      restrictive of acts or conduct of the type prohibited in Subsection (40)(a).
             1476          (41) A private club may not on the premises of the private club:
             1477          (a) engage in or permit any form of gambling, [or] as defined and proscribed in Title
             1478      76, Chapter 10, Part 11, Gambling;
             1479          (b) have any video gaming device, as defined and proscribed in Title 76, Chapter 10,
             1480      Part 11, Gambling[, on the premises of the private club.]; or
             1481          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1482      H. [ or simulates ] .H the risking of something of value for a return or for an outcome
             1482a      when the return or


             1483      outcome is based upon an element of chance, excluding the playing of an amusement device
             1484      that confers only an immediate and unrecorded right of replay not exchangeable for value.
             1485          (42) (a) A private club may not close or cease operation for a period longer than 240
             1486      hours, unless:
             1487          (i) the private club licensee notifies the department in writing at least seven days before
             1488      the closing; and
             1489          (ii) the closure or cessation of operation is first approved by the department.
             1490          (b) Notwithstanding Subsection (42)(a), in the case of emergency closure, immediate
             1491      notice of closure shall be made to the department by telephone.
             1492          (c) The department may authorize a closure or cessation of operation for a period not to
             1493      exceed 60 days. The department may extend the initial period an additional 30 days upon
             1494      written request of the private club and upon a showing of good cause. A closure or cessation of
             1495      operation may not exceed a total of 90 days without commission approval.
             1496          (d) The notice required by Subsection (42)(a) shall include:
             1497          (i) the dates of closure or cessation of operation;
             1498          (ii) the reason for the closure or cessation of operation; and
             1499          (iii) the date on which the licensee will reopen or resume operation.
             1500          (e) Failure of the licensee to provide notice and to obtain department authorization
             1501      prior to closure or cessation of operation shall result in an automatic forfeiture of:
             1502          (i) the license; and
             1503          (ii) the unused portion of the license fee for the remainder of the license year effective
             1504      immediately.
             1505          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             1506      result in an automatic forfeiture of:
             1507          (i) the license; and
             1508          (ii) the unused portion of the club's license fee for the remainder of the license year.
             1509          (43) A private club license may not be transferred from one location to another,
             1510      without prior written approval of the commission.
             1511          (44) (a) A private club licensee, may not sell, transfer, assign, exchange, barter, give, or
             1512      attempt in any way to dispose of the license to any other person, whether for monetary gain or
             1513      not.


             1514          (b) A private club license has no monetary value for the purpose of any type of
             1515      disposition.
             1516          Section 6. Section 32A-7-106 is amended to read:
             1517           32A-7-106. Operational restrictions.
             1518          (1) (a) Any organization granted a single event permit and any person involved in the
             1519      storage, sale, or service of alcoholic beverages at the event for which the permit is issued, shall
             1520      abide by:
             1521          (i) this title;
             1522          (ii) the rules of the commission; and
             1523          (iii) the special conditions and requirements provided in this section.
             1524          (b) Failure to comply with Subsection (1)(a):
             1525          (i) may result in:
             1526          (A) an immediate revocation of the permit;
             1527          (B) forfeiture of the surety bond; and
             1528          (C) immediate seizure of all alcoholic beverages present at the event; and
             1529          (ii) disqualifies the organization from applying for a single event permit under this
             1530      chapter, or a temporary special event beer permit under Chapter 10, Part 3, Temporary Special
             1531      Event Beer Permits, for a period of three years from the date of revocation of the permit.
             1532          (c) Any alcoholic beverages seized under this Subsection (1) shall be returned to the
             1533      organization after the event if forfeiture proceedings are not instituted under Section
             1534      32A-13-103 .
             1535          (2) Special conditions and requirements for single event permittees include the
             1536      following:
             1537          (a) (i) All persons involved in the storage, sale, or service of alcoholic beverages at the
             1538      event do so under the supervision and direction of the permittee.
             1539          (ii) All persons involved in the sale or service of alcoholic beverages at the event may
             1540      not, while on duty:
             1541          (A) consume an alcoholic beverage; or
             1542          (B) be intoxicated.
             1543          (b) (i) All liquor stored, sold, served, and consumed at the event shall be purchased by
             1544      the permittee from a state store or package agency.


             1545          (ii) All beer purchased by the permittee shall be purchased from:
             1546          (A) a licensed beer wholesaler; or
             1547          (B) a licensed beer retailer.
             1548          (iii) All alcoholic beverages are considered under the control of the permittee during
             1549      the event.
             1550          (iv) Attendees of the event may not bring any alcoholic beverages onto the premises of
             1551      the event.
             1552          (c) A permittee may not charge more than the maximum amount set forth in the permit
             1553      for any alcoholic beverage.
             1554          (d) Each permittee shall post in a prominent place in the area in which alcoholic
             1555      beverages are being sold, served, and consumed, a copy of the permit, together with a list of the
             1556      operational restrictions and requirements of single event permittees set forth in this section.
             1557          (e) Alcoholic beverages purchased for the event may not be stored, sold, served, or
             1558      consumed in any location other than that described in the application and designated on the
             1559      permit unless the permittee first applies for and receives approval from the commission for a
             1560      change of location.
             1561          (f) (i) A single event permittee may sell or provide a primary spirituous liquor only in a
             1562      quantity not to exceed one ounce per beverage except that additional spirituous liquor may be
             1563      used in a beverage if:
             1564          (A) used as a secondary flavoring ingredient;
             1565          (B) used in conjunction with the primary spirituous liquor;
             1566          (C) the secondary ingredient is not the only spirituous liquor in the beverage; and
             1567          (D) each attendee may have no more than 2.75 ounces of spirituous liquor at a time
             1568      before the attendee.
             1569          (ii) Spirituous liquor need not be dispensed through a calibrated metered dispensing
             1570      system.
             1571          (g) (i) (A) Wine may be sold and served by the glass or an individual portion that does
             1572      not exceed five ounces per glass or individual portion.
             1573          (B) An individual portion may be served to an attendee in more than one glass as long
             1574      as the total amount of wine does not exceed five ounces.
             1575          (C) An individual portion of wine is considered to be one alcoholic beverage under


             1576      Subsection (2)(p).
             1577          (ii) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed
             1578      by the commission.
             1579          (iii) A wine service may be performed and a service charge assessed by the single event
             1580      permittee as authorized by commission rule for wine purchased at the event.
             1581          (h) (i) Heavy beer may be served in original containers not exceeding one liter at prices
             1582      fixed by the commission.
             1583          (ii) A service charge may be assessed by the single event permittee as authorized by
             1584      commission rule for heavy beer purchased at the event.
             1585          (i) (i) Subject to Subsection (2)(i)(ii), beer may be sold for on-premise consumption:
             1586          (A) in an open container; and
             1587          (B) on draft.
             1588          (ii) Beer sold pursuant to Subsection (2)(i)(i) shall be in a size of container that does
             1589      not exceed two liters, except that beer may not be sold to an individual attendee in a size of
             1590      container that exceeds one liter.
             1591          (j) (i) Alcoholic beverages may not be sold, served, or consumed between the hours of
             1592      1 a.m. and 10 a.m.
             1593          (ii) This Subsection (2)(j) does not preclude a local authority from being more
             1594      restrictive with respect to the hours of sale, service, or consumption of alcoholic beverages at a
             1595      temporary single event.
             1596          (k) Alcoholic beverages may not be sold, served, or otherwise furnished until after the
             1597      polls are closed on the day of any:
             1598          (i) regular general election;
             1599          (ii) regular primary election; or
             1600          (iii) statewide special election.
             1601          (l) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             1602          (i) minor;
             1603          (ii) person actually, apparently, or obviously intoxicated;
             1604          (iii) known habitual drunkard; or
             1605          (iv) known interdicted person.
             1606          (m) (i) (A) Liquor may be sold only at prices fixed by the commission.


             1607          (B) Liquor may not be sold at discount prices on any date or at any time.
             1608          (ii) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             1609      to the permittee.
             1610          (iii) An alcoholic beverage may not be sold at a price that encourages over
             1611      consumption or intoxication.
             1612          (iv) An alcoholic beverage may not be sold at a special or reduced price for only
             1613      certain hours of the day of the permitted event.
             1614          (v) The sale or service of more than one alcoholic beverage for the price of a single
             1615      alcoholic beverage is prohibited.
             1616          (vi) The permittee may not engage in a public promotion involving or offering free
             1617      alcoholic beverages to the general public.
             1618          (n) A single event permittee and its employees may not permit an attendee to carry
             1619      from the premises an open container that:
             1620          (i) is used primarily for drinking purposes; and
             1621          (ii) contains any alcoholic beverage.
             1622          (o) A minor may not sell, serve, dispense, or handle any alcoholic beverage at the
             1623      event.
             1624          (p) Each attendee may have no more than one alcoholic beverage of any kind at a time
             1625      before the patron.
             1626          (3) The following acts or conduct at an event for which a permit is issued under this
             1627      chapter are considered contrary to the public welfare and morals, and are prohibited upon the
             1628      premises:
             1629          (a) employing or using any person in the sale or service of alcoholic beverages while
             1630      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             1631      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             1632      buttocks, vulva, or genitals;
             1633          (b) employing or using the services of any person to mingle with the patrons while the
             1634      person is unclothed or in attire, costume, or clothing described in Subsection (3)(a);
             1635          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             1636      buttocks, anus, or genitals of any other person;
             1637          (d) permitting any employee or person to wear or use any device or covering, exposed


             1638      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
             1639          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             1640      the prohibited activities described in this Subsection (3);
             1641          (f) permitting any person to remain in or upon the premises who exposes to public
             1642      view any portion of his or her genitals or anus;
             1643          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             1644      depicting:
             1645          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             1646      copulation, flagellation, or any sexual acts prohibited by Utah law;
             1647          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             1648      genitals;
             1649          (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             1650      drawings are used to portray, any of the prohibited activities described in this Subsection (3); or
             1651          (iv) scenes wherein a person displays the vulva or the anus or the genitals.
             1652          (4) Nothing in Subsection (3) precludes a local authority from being more restrictive of
             1653      acts or conduct of the type prohibited in Subsection (3).
             1654          (5) (a) Although live entertainment is permitted at the event for which a permit has
             1655      been issued under this chapter, a permittee may not allow any person to perform or simulate
             1656      sexual acts prohibited by Utah law, including sexual intercourse, masturbation, sodomy,
             1657      bestiality, oral copulation, flagellation, the touching, caressing, or fondling of the breast,
             1658      buttocks, anus, or genitals, or the displaying of the pubic hair, anus, vulva, or genitals.
             1659      Entertainers shall perform only upon a stage or at a designated area approved by the
             1660      commission.
             1661          (b) Nothing in Subsection (5)(a) precludes a local authority from being more restrictive
             1662      of acts or conduct of the type prohibited in Subsection (5)(a).
             1663          (6) The permittee shall maintain an expense and revenue ledger or record showing:
             1664          (a) expenditures made for liquor and beer, set-ups, and other ingredients and
             1665      components of alcoholic beverages; and
             1666          (b) the revenue from sale of alcoholic beverages.
             1667          (7) A single event permit may not be transferred.
             1668          (8) A single event permittee may not on the premises serviced by the single event


             1669      permittee:
             1670          (a) engage in or allow any form of gambling, [or] as defined and proscribed in Title 76,
             1671      Chapter 10, Part 11, Gambling;
             1672          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1673      Part 11, Gambling[, on the premises serviced by the single event permittee.]; or
             1674          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1675      H. [ or simulates ] .H the risking of something of value for a return or for an outcome when the
             1675a      return or
             1676      outcome is based upon an element of chance, excluding the playing of an amusement device
             1677      that confers only an immediate and unrecorded right of replay not exchangeable for value.
             1678          Section 7. Section 32A-10-206 is amended to read:
             1679           32A-10-206. Operational restrictions.
             1680          Each person granted an on-premise beer retailer license and the employees and
             1681      management personnel of the on-premise beer retailer licensee shall comply with the following
             1682      conditions and requirements. Failure to comply may result in a suspension or revocation of the
             1683      license or other disciplinary action taken against individual employees or management
             1684      personnel.
             1685          (1) (a) Subject to Subsection (1)(b), a beer retailer licensee may sell beer for
             1686      on-premise consumption:
             1687          (i) in an open container; and
             1688          (ii) on draft.
             1689          (b) Beer sold pursuant to Subsection (1)(a) shall be in a size of container that does not
             1690      exceed two liters, except that beer may not be sold to an individual patron in a size of container
             1691      that exceeds one liter.
             1692          (2) Liquor may not be stored or sold on the premises of any on-premise beer retailer
             1693      licensee.
             1694          (3) A patron of the on-premise beer retailer may only make purchases from and be
             1695      served by a person employed, designated, and trained by the licensee to sell and serve beer.
             1696          (4) (a) Beer may not be sold, offered for sale, served, or otherwise furnished at any
             1697      on-premise beer retailer establishment after 1 a.m. and before 10 a.m.
             1698          (b) Beer may not be sold, served, or otherwise furnished to any:
             1699          (i) minor;


             1700          (ii) person actually, apparently, or obviously intoxicated;
             1701          (iii) known habitual drunkard; or
             1702          (iv) known interdicted person.
             1703          (c) (i) Notwithstanding Subsection (4)(a), a tavern licensed under this chapter shall
             1704      remain open for one hour after the tavern ceases the sale and service of alcoholic beverages
             1705      during which time a patron of the tavern may finish consuming a single serving of beer not
             1706      exceeding 26 ounces.
             1707          (ii) A tavern is not required to remain open:
             1708          (A) after all patrons have vacated the premises; or
             1709          (B) during an emergency.
             1710          (d) Between the hours of 2 a.m. and 10 a.m. on any day a tavern may not allow a patron
             1711      to remain on the premises to consume alcoholic beverages on the premises.
             1712          (5) (a) Beer may not be sold at less than the cost of the beer to the licensee.
             1713          (b) Beer may not be sold at a special or reduced price that encourages over
             1714      consumption or intoxication.
             1715          (c) Beer may not be sold at a special or reduced price for only certain hours of the beer
             1716      retailer's business day such as a "happy hour."
             1717          (d) The sale or service of more than one alcoholic beverage for the price of a single
             1718      alcoholic beverage is prohibited.
             1719          (e) The sale or service of an indefinite or unlimited number of alcoholic beverages
             1720      during any set period for a fixed price is prohibited.
             1721          (f) An on-premise beer licensee may not engage in a public promotion involving or
             1722      offering free alcoholic beverages to the general public.
             1723          (6) Beer sold in sealed containers by the on-premise beer retailer licensee may be
             1724      removed from the on-premise beer retailer premises.
             1725          (7) (a) A person may not bring onto the premises of an on-premise beer retailer
             1726      licensee any alcoholic beverage for on-premise consumption.
             1727          (b) An on-premise beer retailer licensee or its officers, managers, employees, or agents
             1728      may not:
             1729          (i) allow a person to bring onto the on-premise beer retailer licensee premises any
             1730      alcoholic beverage for on-premise consumption; or


             1731          (ii) allow consumption of any such alcoholic beverage on its premises.
             1732          (8) An on-premise beer retailer licensee and its employees may not permit a patron to
             1733      carry from the premises an open container that:
             1734          (a) is used primarily for drinking purposes; and
             1735          (b) contains any alcoholic beverage.
             1736          (9) (a) Except as provided in Subsection (9)(b), a minor may not be:
             1737          (i) employed by or be on the premises of an on-premise beer retailer licensee to sell,
             1738      dispense, or otherwise furnish beer; or
             1739          (ii) on the premises of any tavern.
             1740          (b) Notwithstanding Subsection (9)(a), a minor may be employed to enter the sale at a
             1741      cash register or other sales recording device on the premises of an on-premise beer retailer that
             1742      is not a tavern.
             1743          (10) An employee of a licensee, while on duty, may not:
             1744          (a) consume an alcoholic beverage; or
             1745          (b) be intoxicated.
             1746          (11) Each on-premise beer retailer licensee shall display in a prominent place in the
             1747      on-premise beer retailer licensee:
             1748          (a) the on-premise beer retailer license that is issued by the department; 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          (12) The following acts or conduct in an on-premise beer retailer outlet licensed under
             1752      this part are considered contrary to the public welfare and morals, and are prohibited upon the
             1753      premises:
             1754          (a) employing or using any person in the sale or service of alcoholic beverages while
             1755      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             1756      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             1757      buttocks, vulva, or genitals;
             1758          (b) employing or using the services of any person to mingle with the patrons while the
             1759      person is unclothed or in attire, costume, or clothing as described in Subsection (12)(a);
             1760          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             1761      buttocks, anus, or genitals of any other person;


             1762          (d) permitting any employee or person to wear or use any device or covering, exposed
             1763      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
             1764          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             1765      the prohibited activities described in this section;
             1766          (f) permitting any person to remain in or upon the premises who exposes to public
             1767      view any portion of his or her genitals or anus; or
             1768          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             1769      depicting:
             1770          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             1771      copulation, flagellation, or any sexual acts that are prohibited by Utah law;
             1772          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             1773      genitals;
             1774          (iii) scenes wherein artificial devices or inanimate objects are employed to depict, or
             1775      drawings are employed to portray, any of the prohibited activities described in this section; or
             1776          (iv) scenes wherein a person displays the vulva or the anus or the genitals.
             1777          (13) Nothing in Subsection (12) precludes a local authority from being more restrictive
             1778      of acts or conduct of the type prohibited in Subsection (12).
             1779          (14) (a) Although live entertainment is permitted on the premises of an on-premise
             1780      beer retailer licensee, a licensee may not permit any person to perform or simulate sexual acts
             1781      prohibited by Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral
             1782      copulation, flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or
             1783      genitals, or the displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform
             1784      only upon a stage or at a designated area approved by the commission.
             1785          (b) Nothing in Subsection (14)(a) precludes a local authority from being more
             1786      restrictive of acts or conduct of the type prohibited in Subsection (14)(a).
             1787          (15) An on-premise beer retailer licensee may not on the premises of the on-premise
             1788      beer retailer licensee:
             1789          (a) engage in or permit any form of gambling, [or] as defined and proscribed in Title
             1790      76, Chapter 10, Part 11, Gambling;
             1791          (b) have any video gaming device, as defined and proscribed in Title 76, Chapter 10,
             1792      Part 11, Gambling[, on the premises of the on-premise beer retailer licensee.]; or


             1793          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1794      H. [ or simulates ] .H the risking of something of value for a return or for an outcome when the
             1794a      return or
             1795      outcome is based upon an element of chance, excluding the playing of an amusement device
             1796      that confers only an immediate and unrecorded right of replay not exchangeable for value.
             1797          (16) (a) Each on-premise beer retailer licensee shall maintain accounting and other
             1798      records and documents as the department may require.
             1799          (b) Any on-premise beer retailer licensee or person acting for the on-premise beer
             1800      retailer licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes
             1801      the entries in any of the books of account or other documents of the on-premise beer retailer
             1802      licensee required to be made, maintained, or preserved by this title or the rules of the
             1803      commission for the purpose of deceiving the commission or the department, or any of their
             1804      officials or employees, is subject to:
             1805          (i) the immediate suspension or revocation of the on-premise beer retailer license; and
             1806          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1807          (17) An on-premise beer retailer license may not be transferred from one location to
             1808      another, without prior written approval of the commission.
             1809          (18) (a) An on-premise beer retailer licensee may not sell, transfer, assign, exchange,
             1810      barter, give, or attempt in any way to dispose of the license to any person, whether for
             1811      monetary gain or not.
             1812          (b) An on-premise beer retailer license has no monetary value for the purpose of any
             1813      type of disposition.
             1814          Section 8. Section 32A-10-306 is amended to read:
             1815           32A-10-306. Operational restrictions.
             1816          (1) (a) Any person granted a temporary special event beer permit and any person
             1817      involved in the storage, sale, or service of beer at the event for which a temporary special event
             1818      the permit is issued, shall abide by this title, the rules of the commission, and the special
             1819      conditions and requirements provided in this section.
             1820          (b) Failure to comply as provided in Subsection (1)(a):
             1821          (i) may result in:
             1822          (A) an immediate revocation of the permit;
             1823          (B) forfeiture of the surety bond; and


             1824          (C) immediate seizure of all beer present at the event; and
             1825          (ii) disqualifies the organization from applying for a temporary special event beer
             1826      permit under this part or a single event permit under Chapter 7, Single Event Permits, for a
             1827      period of three years from the date of revocation of the temporary special event permit.
             1828          (c) Any beer seized under this Subsection (1) shall be returned to the organization after
             1829      the event if forfeiture proceedings are not instituted under Section 32A-13-103 .
             1830          (2) Special conditions and requirements for temporary special event beer permittees
             1831      include the following:
             1832          (a) (i) All persons involved in the storage, sale, or service of beer at the temporary
             1833      special event do so under the supervision and direction of the permittee.
             1834          (ii) All persons involved in the sale or service of beer at the temporary special event
             1835      may not, while on duty:
             1836          (A) consume an alcoholic beverage; or
             1837          (B) be intoxicated.
             1838          (b) (i) All beer stored, sold, served, and consumed at the temporary special event shall
             1839      be purchased by the permittee from a licensed beer wholesaler or retailer.
             1840          (ii) All beer is considered under the control of the permittee during the temporary
             1841      special event.
             1842          (iii) An attendee of the temporary special event may not bring any alcoholic beverages
             1843      onto the premises of the temporary special event.
             1844          (c) Each permittee shall post in a prominent place in the area in which beer is being
             1845      sold, served, and consumed:
             1846          (i) a copy of the permit; and
             1847          (ii) a list of the operational restrictions and requirements of temporary special event
             1848      beer permittees set forth in this section.
             1849          (d) Beer purchased for a temporary special event may not be stored, sold, served, or
             1850      consumed in any location other than that described in the application and designated on the
             1851      temporary special event permit unless the permittee first applies for and receives approval from
             1852      the commission for a change of location.
             1853          (e) (i) Subject to Subsection (2)(e)(ii), beer may be sold for on-premise consumption:
             1854          (A) in an open container; and


             1855          (B) on draft.
             1856          (ii) Beer sold pursuant to Subsection (2)(e)(i) shall be in a size of container that does
             1857      not exceed two liters, except that beer may not be sold to an individual attendee in a size of
             1858      container that exceeds one liter.
             1859          (f) (i) Beer may not be sold, offered for sale, served, otherwise furnished, or consumed
             1860      between the hours of 1 a.m. and 10 a.m.
             1861          (ii) This Subsection (2)(f) does not preclude a local authority from being more
             1862      restrictive with respect to the hours of sale, service, or consumption of beer at a temporary
             1863      special event.
             1864          (g) Beer may not be sold, served, or otherwise furnished to any:
             1865          (i) minor;
             1866          (ii) person actually, apparently, or obviously intoxicated;
             1867          (iii) known habitual drunkard; or
             1868          (iv) known interdicted person.
             1869          (h) (i) Beer may not be sold at less than the cost of the beer to the permittee.
             1870          (ii) Beer may not be sold at a price that encourages over consumption or intoxication.
             1871          (iii) Beer may not be sold at a special or reduced price for only certain hours of the day
             1872      of the permitted event.
             1873          (iv) The sale or service of more than one beer beverage for the price of a single beer
             1874      beverage is prohibited.
             1875          (v) The permittee may not engage in a public promotion involving or offering free beer
             1876      to the general public.
             1877          (i) The permittee and its employees may not permit an attendee to carry from the
             1878      premises an open container that:
             1879          (i) is used for drinking purposes; and
             1880          (ii) contains any alcoholic beverage.
             1881          (j) A minor may not sell, serve, dispense, or handle any beer at a temporary special
             1882      event.
             1883          (3) The following acts or conduct at an event for which a permit is issued under this
             1884      part are considered contrary to the public welfare and morals, and are prohibited upon the
             1885      premises:


             1886          (a) employing or using any person in the sale or service of alcoholic beverages while
             1887      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             1888      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             1889      buttocks, vulva, or genitals;
             1890          (b) employing or using the services of any person to mingle with the patrons while the
             1891      person is unclothed or in attire, costume, or clothing described in Subsection (3)(a);
             1892          (c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             1893      buttocks, anus, or genitals of any other person;
             1894          (d) permitting any employee or person to wear or use any device or covering, exposed
             1895      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
             1896          (e) permitting any person to use artificial devices or inanimate objects to depict any of
             1897      the prohibited activities described in this Subsection (3);
             1898          (f) permitting any person to remain in or upon the premises who exposes to public
             1899      view any portion of his or her genitals or anus; or
             1900          (g) showing films, still pictures, electronic reproductions, or other visual reproductions
             1901      depicting:
             1902          (i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             1903      copulation, flagellation, or any sexual acts prohibited by Utah law;
             1904          (ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             1905      genitals;
             1906          (iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             1907      drawings are used to portray, any of the prohibited activities described in this Subsection (3); or
             1908          (iv) scenes wherein a person displays the vulva, anus, or the genitals.
             1909          (4) Nothing in Subsection (3) precludes a local authority from being more restrictive of
             1910      acts or conduct of the type prohibited in Subsection (3).
             1911          (5) (a) Although live entertainment is permitted at the event for which a permit has
             1912      been issued under this chapter, a permittee may not allow any person to perform or simulate
             1913      sexual acts prohibited by Utah law, including sexual intercourse, masturbation, sodomy,
             1914      bestiality, oral copulation, flagellation, the touching, caressing, or fondling of the breast,
             1915      buttocks, anus, or genitals, or the displaying of the pubic hair, anus, vulva, or genitals.
             1916      Entertainers shall perform only upon a stage or at a designated area approved by the


             1917      commission.
             1918          (b) Nothing in Subsection (5)(a) precludes a local authority from being more restrictive
             1919      of acts or conduct of the type prohibited in Subsection (5)(a).
             1920          (6) The permittee shall maintain an expense and revenue ledger or record showing:
             1921          (a) expenditures made for beer; and
             1922          (b) the revenue from sale of beer.
             1923          (7) A temporary special event beer permit may not be transferred.
             1924          (8) A temporary special event beer permittee may not on the premises serviced by the
             1925      permittee:
             1926          (a) engage in or allow any form of gambling, [or] as defined and proscribed in Title 76,
             1927      Chapter 10, Part 11, Gambling;
             1928          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1929      Part 11, Gambling[, on the premises serviced by the permittee.]; or
             1930          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1931      H. [ or simulates ] .H the risking of something of value for a return or for an outcome when the
             1931a      return or
             1932      outcome is based upon an element of chance, excluding the playing of an amusement device
             1933      that confers only an immediate and unrecorded right of replay not exchangeable for value.
             1934          Section 9. Section 32A-15a-102 is amended to read:
             1935           32A-15a-102. Definitions.
             1936          (1) As used in this chapter:
             1937          (a) "Objecting governmental entity" means:
             1938          (i) a local government entity;
             1939          (ii) a prosecutor's office; or
             1940          (iii) a law enforcement agency.
             1941          (b) "Nuisance activity" means:
             1942          (i) a judicial finding that a licensed establishment is a common public nuisance under
             1943      Section 32A-13-106 ;
             1944          (ii) a single felony conviction within the last two years of:
             1945          (A) a retail licensee; or
             1946          (B) any supervisory or managerial level employee of the licensee;
             1947          (iii) a single conviction under Title 58, Chapter 37, Utah Controlled Substances Act:


             1948          (A) (I) of a retail licensee; or
             1949          (II) an employee of the licensee;
             1950          (B) within the last two years; and
             1951          (C) made on the basis of activities that occurred on the licensed premises;
             1952          (iv) three or more convictions of patrons of a retail licensee under Title 58, Chapter 37,
             1953      Utah Controlled Substances Act, if:
             1954          (A) the convictions are made on the basis of activities that occurred on the licensed
             1955      premises; and
             1956          (B) there is evidence that the licensee knew or should have known of the illegal
             1957      activity;
             1958          (v) a single conviction within the last two years of a retail licensee or any employee of
             1959      the licensee that is made on the basis of:
             1960          (A) pornographic and harmful materials:
             1961          (I) that are in violation of Title 76, Chapter 10, Part 12, Pornographic and Harmful
             1962      Materials and Performances; and
             1963          (II) if the violation occurs on the licensed premises;
             1964          (B) prostitution;
             1965          (C) engaging in or permitting gambling, [or] as defined and proscribed in Title 76,
             1966      Chapter 10, Part 11, Gambling, on the licensed premises;
             1967          (D) having any video gaming device, as defined and proscribed by Title 76, Chapter
             1968      10, Part 11, Gambling, on the licensed premises;
             1969          (E) on the licensed premises engaging in or permitting a contest, game, gaming
             1970      scheme, or gaming device that requires H. [ or simulates ] .H the risking of something
             1970a      of value for a
             1971      return or for an outcome when the return or outcome is based upon an element of chance,
             1972      excluding the playing of an amusement device that confers only an immediate and unrecorded
             1973      right of replay not exchangeable for value;
             1974          [(D)] (F) a disturbance of the peace that occurs on the licensed premises; or
             1975          [(E)] (G) disorderly conduct that occurs on the licensed premises; or
             1976          (vi) three or more adjudicated violations of this title within the last two years by a retail
             1977      licensee or by the retail licensee's employees that result in a criminal citation or an
             1978      administrative referral to the department relating to:


             1979          (A) the sale, service, or furnishing of alcohol to a minor;
             1980          (B) the sale, service, or furnishing of alcohol to a person actually, apparently, or
             1981      obviously intoxicated;
             1982          (C) the sale or service of alcohol after lawful sales or service hours; or
             1983          (D) acts or conduct on the licensed premises contrary to the public welfare and morals
             1984      involving lewd acts or lewd entertainment prohibited by this title.
             1985          (2) For purposes of Subsection (1)(b), "retail licensee" means:
             1986          (a) a person to whom a retail license has been issued by the commission; and
             1987          (b) in the case of a licensee that is a partnership, corporation, or limited liability
             1988      company any of the following that is convicted of any offense described in Subsection (1)(b):
             1989          (i) a partner;
             1990          (ii) a managing agent;
             1991          (iii) a manager;
             1992          (iv) an officer;
             1993          (v) a director;
             1994          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of a
             1995      corporate licensee; or
             1996          (vii) a member who owns at least 20% of a limited liability company licensee.


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