Download Zipped Enrolled WordPerfect SB0205.ZIP
[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 205 Enrolled

             1     

ALCOHOLIC BEVERAGE CONTROL

             2     
AMENDMENTS

             3     
2007 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Peter C. Knudson

             6     
House Sponsor: Scott L Wyatt

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Alcoholic Beverage Control Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides for severability;
             14          .    modifies and adds definitions;
             15          .    addresses terms of commissioners;
             16          .    addresses appointment and removal of the director;
             17          .    addresses purchases of alcoholic beverages by the department;
             18          .    addresses disciplinary proceedings and judicial review of those proceedings;
             19          .    adjusts markups by the department and diverts a portion of certain gross sales
             20      revenues to the school lunch program;
             21          .    repeals the wine and liquor tax;
             22          .    addresses standards for attire, conduct, and entertainment on premises of licensees
             23      and permittees;
             24          .    addresses minors including:
             25              .    addressing hiring minors;
             26              .    addressing admitting minors onto premises; and
             27              .    addressing unlawful acts by minors;
             28          .    addresses certain licensees and permittees including on-premise banquet licenses,
             29      on-premise beer retailer, and those holding a permit for industrial or manufacturing


             30      use;
             31          .    addresses alcohol-related compliance check investigations;
             32          .    provides for suspension of driving privileges;
             33          .    addresses advertising;
             34          .    removes redundant or out-of-date language; and
             35          .    makes technical and conforming amendments.
             36      Monies Appropriated in this Bill:
             37          None
             38      Other Special Clauses:
             39          This bill has multiple effective dates.
             40      Utah Code Sections Affected:
             41      AMENDS:
             42          32A-1-102, as last amended by Chapter 314, Laws of Utah 2003
             43          32A-1-105, as last amended by Chapter 342, Laws of Utah 2006
             44          32A-1-106, as last amended by Chapter 14, Laws of Utah 2006
             45          32A-1-108, as last amended by Chapter 268, Laws of Utah 2004
             46          32A-1-116, as last amended by Chapter 314, Laws of Utah 2003
             47          32A-1-119, as last amended by Chapters 14 and 162, Laws of Utah 2006
             48          32A-1-120, as renumbered and amended by Chapter 23, Laws of Utah 1990
             49          32A-1-122, as last amended by Chapter 314, Laws of Utah 2003
             50          32A-1-401, as last amended by Chapter 342, Laws of Utah 2006
             51          32A-4-102, as last amended by Chapter 314, Laws of Utah 2003
             52          32A-4-106, as last amended by Chapter 268, Laws of Utah 2004
             53          32A-4-206, as last amended by Chapter 268, Laws of Utah 2004
             54          32A-4-303, as last amended by Chapter 268, Laws of Utah 2004
             55          32A-4-307, as last amended by Chapter 268, Laws of Utah 2004
             56          32A-4-401, as last amended by Chapter 152, Laws of Utah 2005
             57          32A-4-402, as last amended by Chapter 152, Laws of Utah 2005


             58          32A-4-406, as last amended by Chapter 152, Laws of Utah 2005
             59          32A-5-102, as last amended by Chapter 268, Laws of Utah 2004
             60          32A-5-107, as last amended by Chapter 268, Laws of Utah 2004
             61          32A-6-301, as last amended by Chapter 314, Laws of Utah 2003
             62          32A-6-302, as renumbered and amended by Chapter 23, Laws of Utah 1990
             63          32A-7-106, as last amended by Chapter 268, Laws of Utah 2004
             64          32A-8-102, as last amended by Chapter 314, Laws of Utah 2003
             65          32A-8-106, as last amended by Chapter 314, Laws of Utah 2003
             66          32A-8-505, as last amended by Chapter 268, Laws of Utah 2004
             67          32A-10-101, as last amended by Chapter 342, Laws of Utah 2006
             68          32A-10-102, as last amended by Chapter 314, Laws of Utah 2003
             69          32A-10-103, as enacted by Chapter 342, Laws of Utah 2006
             70          32A-10-202, as last amended by Chapter 268, Laws of Utah 2004
             71          32A-10-206, as last amended by Chapter 268, Laws of Utah 2004
             72          32A-10-306, as last amended by Chapter 268, Laws of Utah 2004
             73          32A-12-209, as last amended by Chapter 218, Laws of Utah 2004
             74          32A-12-213, as last amended by Chapter 268, Laws of Utah 2004
             75          32A-12-401, as last amended by Chapter 314, Laws of Utah 2003
             76          32A-14a-102, as renumbered and amended by Chapter 197, Laws of Utah 2000
             77          53-3-219, as last amended by Chapter 161, Laws of Utah 2004
             78          62A-15-401, as last amended by Chapter 342, Laws of Utah 2006
             79          76-9-701, as last amended by Chapter 365, Laws of Utah 1997
             80          78-3a-506, as repealed and reenacted by Chapter 365, Laws of Utah 1997
             81      ENACTS:
             82          32A-1-601, Utah Code Annotated 1953
             83          32A-1-602, Utah Code Annotated 1953
             84          32A-1-603, Utah Code Annotated 1953
             85          32A-1-604, Utah Code Annotated 1953


             86          32A-12-209.5, Utah Code Annotated 1953
             87      REPEALS:
             88          59-16-101, as last amended by Chapter 2, Laws of Utah 1988
             89          59-16-102, as last amended by Chapter 299, Laws of Utah 1998
             90     
             91      Be it enacted by the Legislature of the state of Utah:
             92          Section 1. Section 32A-1-102 is amended to read:
             93           32A-1-102. Application of title -- Severability.
             94          (1) This title governs alcoholic beverage control in this state except where [local
             95      authorities are] a local authority is expressly granted regulatory control by this title.
             96          (2) Nothing in this title precludes a local [authorities] authority from regulating the
             97      sale, storage, service, or consumption of alcoholic beverages if that regulation does not conflict
             98      with [the provisions of] this title.
             99          (3) If any provision of this title or the application of any provision to any person or
             100      circumstance is held invalid, the remainder of this title shall be given effect without the invalid
             101      provision or application. The provisions of this title are severable.
             102          Section 2. Section 32A-1-105 is amended to read:
             103           32A-1-105. Definitions.
             104          As used in this title:
             105          (1) "Airport lounge" means a place of business licensed to sell alcoholic beverages, at
             106      retail, for consumption on its premises located at an international airport with a United States
             107      Customs office on the premises of the international airport.
             108          (2) "Alcoholic beverages" means "beer" and "liquor" as the terms are defined in this
             109      section.
             110          (3) (a) "Alcoholic products" means all products that:
             111          (i) contain:
             112          (A) at least 63/100 of 1% of alcohol by volume; or
             113          (B) at least 1/2 of 1% by weight; and


             114          (ii) are obtained by fermentation, infusion, decoction, brewing, distillation, or any other
             115      process that uses any liquid or combinations of liquids, whether drinkable or not, to create
             116      alcohol in an amount greater than the amount prescribed in Subsection (3)(a)(i).
             117          (b) "Alcoholic products" does not include any of the following common items that
             118      otherwise come within the definition of alcoholic products:
             119          (i) extracts;
             120          (ii) vinegars;
             121          (iii) ciders;
             122          (iv) essences;
             123          (v) tinctures;
             124          (vi) food preparations; or
             125          (vii) over-the-counter drugs and medicines.
             126          (4) "Bar" means a counter or similar structure:
             127          (a) at which alcoholic beverages are:
             128          (i) stored; or
             129          (ii) dispensed; or
             130          (b) from which alcoholic beverages are served.
             131          (5) (a) "Beer" means any product that:
             132          (i) contains 63/100 of 1% of alcohol by volume or 1/2 of 1% of alcohol by weight, but
             133      not more than 4% of alcohol by volume or 3.2% by weight; and
             134          (ii) is obtained by fermentation, infusion, or decoction of any malted grain.
             135          (b) Beer may or may not contain hops or other vegetable products.
             136          (c) Beer includes a product that:
             137          (i) contains alcohol in the percentages described in Subsection (5)(a); and
             138          (ii) is referred to as:
             139          (A) malt liquor;
             140          (B) malted beverages; or
             141          (C) malt coolers.


             142          (6) (a) "Beer retailer" means [any] a business [establishment] that is:
             143          (i) engaged, primarily or incidentally, in the retail sale of beer to [public] patrons,
             144      whether for consumption on or off the [establishment's] business premises; and
             145          (ii) licensed to sell beer by:
             146          (A) the commission;
             147          (B) a local authority; or
             148          (C) both the commission and a local authority.
             149          (b) (i) "Off-premise beer retailer" means a [general food store or similar] business that
             150      is engaged in the retail sale of beer to [public] patrons for consumption off the beer retailer's
             151      premises.
             152          (ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
             153          (c) [(i)] "On-premise beer retailer" means [any beer retailer engaged, primarily or
             154      incidentally,] a business that is engaged in the sale of beer to [public] patrons for consumption
             155      on the beer retailer's premises, regardless of whether the business sells beer for consumption
             156      off the beer retailer's premises.
             157          [(ii) "On-premise beer retailer" includes a tavern.]
             158          (7) "Billboard" means any public display used to advertise including:
             159          (a) a light device;
             160          (b) a painting;
             161          (c) a drawing;
             162          (d) a poster;
             163          (e) a sign;
             164          (f) a signboard; or
             165          (g) a scoreboard.
             166          (8) "Brewer" means any person engaged in manufacturing beer.
             167          (9) "Cash bar" means the service of alcoholic beverages:
             168          (a) at:
             169          (i) a banquet; or


             170          (ii) a temporary event for which a permit is issued under this title; and
             171          (b) if an attendee at the banquet or temporary event is charged for the alcoholic
             172      beverage.
             173          (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
             174      a bus company to a group of persons pursuant to a common purpose:
             175          (a) under a single contract;
             176          (b) at a fixed charge in accordance with the bus company's tariff; and
             177          (c) for the purpose of giving the group of persons the exclusive use of the bus and a
             178      driver to travel together to a specified destination or destinations.
             179          (11) "Church" means a building:
             180          (a) set apart for the purpose of worship;
             181          (b) in which religious services are held;
             182          (c) with which clergy is associated; and
             183          (d) which is tax exempt under the laws of this state.
             184          (12) "Club" and "private club" means any of the following organized primarily for the
             185      benefit of its members:
             186          (a) a social club;
             187          (b) a recreational association;
             188          (c) a fraternal association;
             189          (d) an athletic association; or
             190          (e) a kindred association.
             191          (13) "Commission" means the Alcoholic Beverage Control Commission.
             192          (14) "Department" means the Department of Alcoholic Beverage Control.
             193          (15) "Distressed merchandise" means any alcoholic beverage in the possession of the
             194      department that is saleable, but for some reason is unappealing to the public.
             195          [(16) "General food store" means any business establishment primarily engaged in
             196      selling food and grocery supplies to public patrons for off-premise consumption.]
             197          [(17)] (16) "Guest" means a person accompanied by an active member or visitor of a


             198      club who enjoys only those privileges derived from the host for the duration of the visit to the
             199      club.
             200          [(18)] (17) (a) "Heavy beer" means any product that:
             201          (i) contains more than 4% alcohol by volume; and
             202          (ii) is obtained by fermentation, infusion, or decoction of any malted grain.
             203          (b) "Heavy beer" is considered "liquor" for the purposes of this title.
             204          [(19)] (18) "Hosted bar" means the service of alcoholic beverages:
             205          (a) without charge; and
             206          (b) at a:
             207          (i) banquet; or
             208          (ii) privately hosted event.
             209          [(20)] (19) "Identification card" means the identification card issued under Title 53,
             210      Chapter 3, Part 8, Identification Card Act.
             211          [(21)] (20) "Interdicted person" means a person to whom the sale, gift, or provision of
             212      an alcoholic beverage is prohibited by:
             213          (a) law; or
             214          (b) court order.
             215          [(22)] (21) "Intoxicated" means that to a degree that is unlawful under Section
             216      76-9-701 a person is under the influence of:
             217          (a) an alcoholic beverage;
             218          (b) a controlled substance;
             219          (c) a substance having the property of releasing toxic vapors; or
             220          (d) a combination of Subsections [(22)] (21)(a) through (c).
             221          [(23)] (22) "Licensee" means any person issued a license by the commission to sell,
             222      manufacture, store, or allow consumption of alcoholic beverages on premises owned or
             223      controlled by the person.
             224          [(24)] (23) "Limousine" means any motor vehicle licensed by the state or a local
             225      authority, other than a bus or taxicab:


             226          (a) in which the driver and passengers are separated by a partition, glass, or other
             227      barrier; and
             228          (b) that is provided by a company to an individual or individuals at a fixed charge in
             229      accordance with the company's tariff for the purpose of giving the individual or individuals the
             230      exclusive use of the limousine and a driver to travel to a specified destination or destinations.
             231          [(25)] (24) (a) "Liquor" means alcohol, or any alcoholic, spirituous, vinous, fermented,
             232      malt, or other liquid, or combination of liquids, a part of which is spirituous, vinous, or
             233      fermented, and all other drinks, or drinkable liquids that contain more than 1/2 of 1% of
             234      alcohol by volume and is suitable to use for beverage purposes.
             235          (b) "Liquor" does not include any beverage defined as a beer, malt liquor, or malted
             236      beverage that has an alcohol content of less than 4% alcohol by volume.
             237          [(26)] (25) "Local authority" means:
             238          (a) the governing body of the county if the premises are located in an unincorporated
             239      area of a county; or
             240          (b) the governing body of the city or town if the premises are located in an incorporated
             241      city or a town.
             242          [(27)] (26) "Manufacture" means to distill, brew, rectify, mix, compound, process,
             243      ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
             244      others.
             245          [(28)] (27) "Member" means a person who, after paying regular dues, has full
             246      privileges of a club under this title.
             247          [(29)] (28) (a) "Military installation" means a base, air field, camp, post, station, yard,
             248      center, or homeport facility for any ship:
             249          (i) (A) under the control of the United States Department of Defense; or
             250          (B) of the National Guard;
             251          (ii) that is located within the state; and
             252          (iii) including any leased facility.
             253          (b) "Military installation" does not include any facility used primarily for:


             254          (i) civil works;
             255          (ii) rivers and harbors projects; or
             256          (iii) flood control projects.
             257          [(30)] (29) "Minor" means any person under the age of 21 years.
             258          (30) "Nude," "nudity," or "state of nudity" means:
             259          (a) the appearance of:
             260          (i) the nipple or areola of a female human breast;
             261          (ii) a human genital;
             262          (iii) a human pubic area; or
             263          (iv) a human anus; or
             264          (b) a state of dress that fails to opaquely cover:
             265          (i) the nipple or areola of a female human breast;
             266          (ii) a human genital;
             267          (iii) a human pubic area; or
             268          (iv) a human anus.
             269          (31) "Outlet" means a location other than a state store or package agency where
             270      alcoholic beverages are sold pursuant to a license issued by the commission.
             271          (32) "Package" means any of the following containing liquor:
             272          (a) a container;
             273          (b) a bottle;
             274          (c) a vessel; or
             275          (d) other receptacle.
             276          (33) "Package agency" means a retail liquor location operated under a contractual
             277      agreement with the department, by a person other than the state, who is authorized by the
             278      commission to sell package liquor for consumption off the premises of the agency.
             279          (34) "Package agent" means any person permitted by the commission to operate a
             280      package agency pursuant to a contractual agreement with the department to sell liquor from
             281      premises that the package agent shall provide and maintain.


             282          (35) "Permittee" means any person issued a permit by the commission to perform acts
             283      or exercise privileges as specifically granted in the permit.
             284          (36) "Person" means any individual, partnership, firm, corporation, limited liability
             285      company, association, business trust, or other form of business enterprise, including a receiver
             286      or trustee, and the plural as well as the singular number, unless the intent to give a more limited
             287      meaning is disclosed by the context.
             288          (37) "Premises" means any building, enclosure, room, or equipment used in connection
             289      with the sale, storage, service, manufacture, distribution, or consumption of alcoholic products,
             290      unless otherwise defined in this title or in the rules adopted by the commission.
             291          (38) "Prescription" means a writing in legal form, signed by a physician or dentist and
             292      given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
             293          (39) (a) "Privately hosted event" or "private social function" means a specific social,
             294      business, or recreational event for which an entire room, area, or hall has been leased or rented,
             295      in advance by an identified group, and the event or function is limited in attendance to people
             296      who have been specifically designated and their guests.
             297          (b) "Privately hosted event" and "private social function" does not include events or
             298      functions to which the general public is invited, whether for an admission fee or not.
             299          (40) "Proof of age" means:
             300          (a) an identification card;
             301          (b) an identification that:
             302          (i) is substantially similar to an identification card;
             303          (ii) is issued in accordance with the laws of a state other than Utah in which the
             304      identification is issued;
             305          (iii) includes date of birth; and
             306          (iv) has a picture affixed;
             307          (c) a valid driver license certificate that:
             308          (i) includes date of birth;
             309          (ii) has a picture affixed; and


             310          (iii) is issued:
             311          (A) under Title 53, Chapter 3, Uniform Driver License Act; or
             312          (B) in accordance with the laws of the state in which it is issued;
             313          (d) a military identification card that:
             314          (i) includes date of birth; and
             315          (ii) has a picture affixed; or
             316          (e) a valid passport.
             317          (41) (a) "Public building" means any building or permanent structure owned or leased
             318      by the state, a county, or local government entity that is used for:
             319          (i) public education;
             320          (ii) transacting public business; or
             321          (iii) regularly conducting government activities.
             322          (b) "Public building" does not mean or refer to any building owned by the state or a
             323      county or local government entity when the building is used by anyone, in whole or in part, for
             324      proprietary functions.
             325          (42) "Representative" means an individual who is compensated by salary, commission,
             326      or any other means for representing and selling the alcoholic beverage products of a
             327      manufacturer, supplier, or importer of liquor, wine, or heavy beer.
             328          (43) "Residence" means the person's principal place of abode within Utah.
             329          (44) "Restaurant" means any business establishment:
             330          (a) where a variety of foods is prepared and complete meals are served to the general
             331      public;
             332          (b) located on a premises having adequate culinary fixtures for food preparation and
             333      dining accommodations; and
             334          (c) that is engaged primarily in serving meals to the general public.
             335          (45) "Retailer" means any person engaged in the sale or distribution of alcoholic
             336      beverages to the consumer.
             337          (46) (a) "Sample" includes:


             338          (i) a department sample; and
             339          (ii) an industry representative sample.
             340          (b) "Department sample" means liquor, wine, and heavy beer that has been placed in
             341      the possession of the department for testing, analysis, and sampling.
             342          (c) "Industry representative sample" means liquor, wine, and heavy beer that has been
             343      placed in the possession of the department for testing, analysis, and sampling by local industry
             344      representatives on the premises of the department to educate the local industry representatives
             345      of the quality and characteristics of the product.
             346          (47) (a) "School" means any building used primarily for the general education of
             347      minors.
             348          (b) "School" does not include:
             349          (i) a nursery school;
             350          (ii) an infant day care center; or
             351          (iii) a trade or technical school.
             352          (48) "Sell," "sale," and "to sell" means any transaction, exchange, or barter whereby,
             353      for any consideration, an alcoholic beverage is either directly or indirectly transferred, solicited,
             354      ordered, delivered for value, or by any means or under any pretext is promised or obtained,
             355      whether done by a person as a principal, proprietor, or as an agent, servant, or employee, unless
             356      otherwise defined in this title or the rules made by the commission.
             357          (49) "Seminude," "seminudity," or "state of seminudity" means a state of dress in
             358      which opaque clothing covers no more than:
             359          (a) the nipple and areola of the female human breast in a shape and color other than the
             360      natural shape and color of the nipple and areola; and
             361          (b) the human genitals, pubic area, and anus:
             362          (i) with no less than the following at its widest point:
             363          (A) four inches coverage width in the front of the human body; and
             364          (B) five inches coverage width in the back of the human body; and
             365          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.


             366          (50) "Sexually oriented entertainer" means a person who while in a state of seminudity
             367      appears at or performs:
             368          (a) for the entertainment of one or more patrons;
             369          (b) on the premises of:
             370          (i) a class D private club as defined in Subsection 32A-5-101 (3); or
             371          (ii) a tavern;
             372          (c) on behalf of or at the request of the licensee described in Subsection (50)(b);
             373          (d) on a contractual or voluntary basis; and
             374          (e) whether or not the person is designated:
             375          (i) an employee of the licensee described in Subsection (50)(b);
             376          (ii) an independent contractor of the licensee described in Subsection (50)(b);
             377          (iii) an agent of the licensee described in Subsection (50)(b); or
             378          (iv) otherwise of the licensee described in Subsection (50)(b).
             379          [(49)] (51) "Small brewer" means a brewer who manufactures less than 60,000 barrels
             380      of beer and heavy beer per year.
             381          [(50)] (52) (a) "Spirituous liquor" means liquor that is distilled.
             382          (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
             383      U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
             384          [(51)] (53) (a) "State label" means the official label designated by the commission
             385      affixed to all liquor containers sold in the state.
             386          (b) "State label" includes the department identification mark and inventory control
             387      number.
             388          [(52)] (54) (a) "State store" means a facility for the sale of package liquor:
             389          (i) located on premises owned or leased by the state; and
             390          (ii) operated by state employees.
             391          (b) "State store" does not apply to any:
             392          (i) licensee;
             393          (ii) permittee; or


             394          (iii) package agency.
             395          [(53)] (55) "Supplier" means any person selling alcoholic beverages to the department.
             396          [(54)] (56) (a) "Tavern" means any business establishment that is:
             397          (i) engaged primarily in the retail sale of beer to public patrons for consumption on the
             398      establishment's premises; and
             399          (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
             400          (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
             401      revenue of the sale of food, although food need not be sold in the establishment:
             402          (i) a beer bar;
             403          (ii) a parlor;
             404          (iii) a lounge;
             405          (iv) a cabaret; or
             406          (v) a nightclub.
             407          [(55)] (57) "Temporary domicile" means the principal place of abode within Utah of a
             408      person who does not have a present intention to continue residency within Utah permanently or
             409      indefinitely.
             410          [(56)] (58) "Unsaleable liquor merchandise" means merchandise that:
             411          (a) is unsaleable because the merchandise is:
             412          (i) unlabeled;
             413          (ii) leaky;
             414          (iii) damaged;
             415          (iv) difficult to open; or
             416          (v) partly filled;
             417          (b) is in a container:
             418          (i) having faded labels or defective caps or corks;
             419          (ii) in which the contents are:
             420          (A) cloudy;
             421          (B) spoiled; or


             422          (C) chemically determined to be impure; or
             423          (iii) that contains:
             424          (A) sediment; or
             425          (B) any foreign substance; or
             426          (c) is otherwise considered by the department as unfit for sale.
             427          [(57)] (59) "Visitor" means an individual that in accordance with Section 32A-5-107
             428      holds limited privileges in a private club by virtue of a visitor card.
             429          [(58)] (60) "Warehouser" means any person, other than a licensed manufacturer,
             430      engaged in the importation for sale, storage, or distribution of liquor regardless of amount.
             431          [(59)] (61) "Wholesaler" means any person engaged in the importation for sale, or in
             432      the sale of beer in wholesale or jobbing quantities to retailers, other than a small brewer selling
             433      beer manufactured by that brewer.
             434          [(60)] (62) (a) "Wine" means any alcoholic beverage obtained by the fermentation of
             435      the natural sugar content of fruits, plants, honey, or milk, or any other like substance, whether
             436      or not other ingredients are added.
             437          (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
             438      provided in this title.
             439          Section 3. Section 32A-1-106 is amended to read:
             440           32A-1-106. Alcoholic Beverage Control Commission -- Membership -- Oaths and
             441      bond -- Per diem -- Offices -- Removal -- Meetings.
             442          (1) The Alcoholic Beverage Control Commission shall act as a governing board over
             443      the Department of Alcoholic Beverage Control.
             444          (2) (a) The commission is composed of five part-time commissioners appointed by the
             445      governor with the consent of the Senate.
             446          (b) No more than three commissioners may be of the same political party.
             447          (3) (a) Except as required by Subsection (3)(b), as terms of current [commission
             448      members] commissioners expire, the governor shall appoint each new [member] commissioner
             449      or reappointed [member] commissioner to a four-year term.


             450          (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
             451      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             452      [commission members are staggered so that approximately half of the commission is appointed
             453      every two years] no more than two commissioners expire in a fiscal year.
             454          (4) When a vacancy occurs in the [membership] commission for any reason, the
             455      replacement shall be appointed for the unexpired term with the consent of the Senate.
             456          (5) Each commissioner shall qualify by taking the oath of office and by giving bond to
             457      the state for faithful performance of duties in an amount determined by the Division of
             458      Finance, and in a form approved by the attorney general. The bond premium shall be paid by
             459      the state.
             460          (6) (a) [Members shall receive no] A commissioner may not receive compensation or
             461      benefits for [their] the commissioner's services, but may receive per diem and expenses
             462      incurred in the performance of the [member's] commissioner's official duties at the rates
             463      established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             464          (b) [Members] A commissioner may decline to receive per diem and expenses for
             465      [their] the commissioner's service.
             466          (7) (a) The commission shall elect one of its members to serve as chair, another to
             467      serve as vice chair, and other commission officers as it considers advisable, all of whom shall
             468      serve at the pleasure of the commission.
             469          (b) All [members of] commissioners on the commission have equal voting rights on all
             470      commission matters when in attendance at a commission meeting.
             471          (c) Three [members] commissioners of the commission is a quorum for conducting
             472      commission business.
             473          (d) A majority vote of the quorum present is required for any action to be taken by the
             474      commission.
             475          (8) (a) (i) The governor may remove any commissioner from office for cause after a
             476      public hearing conducted by the governor or by an impartial hearing examiner appointed by the
             477      governor to conduct the hearing.


             478          (ii) The commissioner shall receive written notice of the date, time, and place of the
             479      hearing along with the alleged grounds for the removal at least ten days before the hearing.
             480      The commissioner shall have the opportunity to attend the hearing, present witnesses and other
             481      evidence, and confront and cross examine witnesses.
             482          (b) Following the hearing, written findings of fact and conclusions of law shall be
             483      prepared by the person conducting the hearing and a copy served upon the commissioner. If
             484      the hearing is before a hearing examiner, the hearing examiner shall also issue a written
             485      recommendation to the governor.
             486          (c) The commissioner shall have five days to file written objections to the
             487      recommendation before the governor issues a final order. The governor's order shall be in
             488      writing and served upon the commissioner.
             489          (9) (a) The commission shall meet at least monthly, but may hold other meetings at
             490      times and places as scheduled by the commission, by the chair, or by any three commissioners
             491      upon filing a written request for a meeting with the chair.
             492          (b) Notice of the time and place of each commission meeting shall be given to each
             493      commissioner, and to the public in compliance with Title 52, Chapter 4, Open and Public
             494      Meetings Act. All commission meetings shall be open to the public, except those meetings or
             495      portions of meetings that are closed by the commission as authorized by Sections 52-4-204 and
             496      52-4-205 .
             497          Section 4. Section 32A-1-108 is amended to read:
             498           32A-1-108. Director of alcoholic beverage control.
             499          (1) (a) The commission by a vote of four of the five commissioners, with the approval
             500      of the governor, shall appoint a director of alcoholic beverage control who is the administrative
             501      head of the department.
             502          (b) The director serves at the pleasure of the commission, except that the director may
             503      only be removed from office by a vote of four commissioners.
             504          [(b)] (c) The director may not be a member of the commission.
             505          [(c)] (d) The director shall:


             506          (i) be qualified in administration [and];
             507          (ii) be knowledgeable by experience and training in the field of business management;
             508      and [shall]
             509          (iii) possess any other qualifications prescribed by the commission.
             510          [(2) (a) The director shall qualify by:]
             511          [(i) taking the oath of office; and]
             512          [(ii) giving a bond for the faithful performance of the director's duties in an amount
             513      determined by the Division of Finance and in form approved by the attorney general.]
             514          [(b) The bond premium for the bond required by Subsection (2)(a) shall be paid by the
             515      state.]
             516          [(3)] (2) The director's compensation shall be established by the governor within the
             517      salary range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
             518          [(4)] (3) The director shall:
             519          (a) carry out the policies of the commission and those of the department;
             520          (b) keep the commission fully informed of all operations and administrative activities
             521      of the department; and
             522          (c) assist the commission in the proper discharge of its duties and responsibilities.
             523          [(5) (a) The director may be removed from office for cause by a majority vote of the
             524      commission after a public hearing before the full commission.]
             525          [(b) The director shall receive written notice of:]
             526          [(i) the date, time, and place of the hearing; and]
             527          [(ii) the alleged grounds for removal at least ten days before the hearing.]
             528          [(c) The director shall be afforded the opportunity to:]
             529          [(i) attend the hearing;]
             530          [(ii) present witnesses and other evidence; and]
             531          [(iii) confront and cross examine witnesses.]
             532          [(d) Following the hearing, written findings of fact, conclusions of law, and the final
             533      order of the commission shall be issued and served upon the director.]


             534          Section 5. Section 32A-1-116 is amended to read:
             535           32A-1-116. Purchase of liquor.
             536          (1) The department may not purchase or stock [alcoholic beverages] spirituous liquor
             537      in containers smaller than 200 [ml.] milliliters except as otherwise allowed by the commission.
             538          (2) (a) Each order by the department for the purchase of spirituous liquor, wine, or
             539      heavy beer, or any cancellation by the department of an order for spirituous liquor, wine, or
             540      heavy beer:
             541          (i) shall be executed in writing by the department; and
             542          (ii) is not valid or binding unless executed in writing.
             543          (b) A copy of each order or cancellation shall be kept on file by the department for at
             544      least three years.
             545          (c) An electronic record satisfies Subsections (2)(a) and (b) pursuant to Title 46,
             546      Chapter 4, Uniform Electronic Transactions Act.
             547          Section 6. Section 32A-1-119 is amended to read:
             548           32A-1-119. Disciplinary proceedings -- Procedure.
             549          (1) (a) As used in this section and Section 32A-1-120 , "disciplinary proceeding" means
             550      an adjudicative proceeding permitted under this title:
             551          (i) against:
             552          (A) a permittee;
             553          (B) a licensee;
             554          (C) a manufacturer;
             555          (D) a supplier;
             556          (E) an importer;
             557          (F) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
             558      or
             559          (G) an officer, employee, or agent of:
             560          (I) a person listed in Subsections (1)(a)(i)(A) through (F); [and] or
             561          (II) a package agent; and


             562          (ii) that is brought on the basis of a violation of this title.
             563          (b) As used in Subsection (4), "final adjudication" means an adjudication for which a
             564      final unappealable judgment or order has been issued.
             565          (2) (a) The following may conduct adjudicative proceedings to inquire into any matter
             566      necessary and proper for the administration of this title and rules adopted under this title:
             567          (i) the commission;
             568          (ii) a hearing examiner appointed by the commission for the purposes provided in
             569      Subsection 32A-1-107 (3);
             570          (iii) the director; and
             571          (iv) the department.
             572          (b) Except as provided in this section or Section 32A-3-106 , the following shall
             573      comply with the procedures and requirements of Title 63, Chapter 46b, Administrative
             574      Procedures Act, in adjudicative proceedings:
             575          (i) the commission;
             576          (ii) a hearing examiner appointed by the commission;
             577          (iii) the director; and
             578          (iv) the department.
             579          (c) Except where otherwise provided by law, all adjudicative proceedings before the
             580      commission or its appointed hearing examiner shall be:
             581          (i) video or audio recorded; and
             582          (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
             583      Open and Public Meetings Act.
             584          (d) All adjudicative proceedings concerning departmental personnel shall be conducted
             585      in accordance with Title 67, Chapter 19, Utah State Personnel Management Act.
             586          (e) All hearings that are informational, fact gathering, and nonadversarial in nature
             587      shall be conducted in accordance with rules, policies, and procedures promulgated by the
             588      commission, director, or department.
             589          (3) (a) A disciplinary proceeding shall be conducted under the authority of the


             590      commission, which is responsible for rendering a final decision and order on any disciplinary
             591      matter.
             592          (b) (i) Nothing in this section precludes the commission from appointing necessary
             593      officers, including hearing examiners, from within or without the department, to administer the
             594      disciplinary proceeding process.
             595          (ii) A hearing examiner appointed by the commission:
             596          (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
             597          (B) shall submit to the commission a report including:
             598          (I) findings of fact determined on the basis of a preponderance of the evidence
             599      presented at the hearing;
             600          (II) conclusions of law; and
             601          (III) recommendations.
             602          (c) Nothing in this section precludes the commission, after [it] the commission has
             603      rendered its final decision and order, from having the director prepare, issue, and cause to be
             604      served on the parties the final written order on behalf of the commission.
             605          (4) (a) The department may initiate a disciplinary proceeding described in Subsection
             606      (4)(b) when the department receives:
             607          (i) a report from any government agency, peace officer, examiner, or investigator
             608      alleging that any person listed in Subsections (1)(a)(i)(A) through (G) has violated this title or
             609      the rules of the commission;
             610          (ii) a final adjudication of criminal liability against any person listed in Subsections
             611      (1)(a)(i)(A) through (G) based on an alleged violation of this title; or
             612          (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
             613      Liability, against any person listed in Subsections (1)(a)(i)(A) through (G) based on an alleged
             614      violation of this title.
             615          (b) The department may initiate a disciplinary proceeding if the department receives an
             616      item listed in Subsection (4)(a) to determine:
             617          (i) whether any person listed in Subsections (1)(a)(i)(A) through (G) violated this title


             618      or rules of the commission; and
             619          (ii) if a violation is found, the appropriate sanction to be imposed.
             620          (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
             621          (i) if required by law;
             622          (ii) before revoking or suspending any permit, license, or certificate of approval issued
             623      under this title; or
             624          (iii) before imposing a fine against any person listed in Subsections (1)(a)(i)(A)
             625      through (G).
             626          (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
             627      hearing after receiving proper notice is an admission of the charged violation.
             628          (c) The validity of a disciplinary proceeding is not affected by the failure of any person
             629      to attend or remain in attendance.
             630          (d) All disciplinary proceeding hearings shall be presided over by the commission or an
             631      appointed hearing examiner.
             632          (e) A disciplinary proceeding hearing may be closed only after the commission or
             633      hearing examiner makes a written finding that the public interest in an open hearing is clearly
             634      outweighed by factors enumerated in the closure order.
             635          (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
             636      hearing may:
             637          (A) administer oaths or affirmations;
             638          (B) take evidence;
             639          (C) take depositions within or without this state; and
             640          (D) require by subpoena from any place within this state:
             641          (I) the testimony of any person at a hearing; and
             642          (II) the production of any books, records, papers, contracts, agreements, documents, or
             643      other evidence considered relevant to the inquiry.
             644          (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
             645      produce any books, papers, documents, or tangible things as required in the subpoena.


             646          (iii) Any witness subpoenaed or called to testify or produce evidence who claims a
             647      privilege against self-incrimination may not be compelled to testify, but the commission or the
             648      hearing examiner shall file a written report with the county attorney or district attorney in the
             649      jurisdiction where the privilege was claimed or where the witness resides setting forth the
             650      circumstance of the claimed privilege.
             651          (iv) (A) A person is not excused from obeying a subpoena without just cause.
             652          (B) Any district court within the judicial district in which a person alleged to be guilty
             653      of willful contempt of court or refusal to obey a subpoena is found or resides, upon application
             654      by the party issuing the subpoena, may issue an order requiring the person to:
             655          (I) appear before the issuing party; and
             656          (II) (Aa) produce documentary evidence if so ordered; or
             657          (Bb) give evidence regarding the matter in question.
             658          (C) Failure to obey an order of the court may be punished by the court as contempt.
             659          (g) (i) In all disciplinary proceeding hearings heard by a hearing examiner, the hearing
             660      examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
             661          (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
             662      recommend a penalty more severe than that initially sought by the department in the notice of
             663      agency action.
             664          (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
             665      shall be served upon the respective parties.
             666          (iv) The respondent and the department shall be given reasonable opportunity to file
             667      any written objections to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
             668      before final commission action.
             669          (h) In all cases heard by the commission, it shall issue its final decision and order in
             670      accordance with Subsection (3).
             671          (6) (a) The commission shall:
             672          (i) render a final decision and order on any disciplinary action; and
             673          (ii) cause its final order to be prepared in writing, issued, and served on all parties.


             674          (b) Any order of the commission is considered final on the date the order becomes
             675      effective.
             676          (c) If the commission is satisfied that a person listed in Subsections (1)(a)(i)(A)
             677      through (G) has committed a violation of this title or the commission's rules, in accordance
             678      with Title 63, Chapter 46b, Administrative Procedures Act, the commission may:
             679          (i) suspend or revoke the permit, license, or certificate of approval;
             680          (ii) impose a fine against a person listed in Subsections (1)(a)(i)(A) through (G);
             681          (iii) assess the administrative costs of any [hearing] disciplinary proceeding to the
             682      permittee, the licensee, or certificate holder; or
             683          (iv) any combination of Subsections (6)(c)(i) through (iii).
             684          (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
             685      32A-1-107 (1)(p) and (4).
             686          (e) (i) If a permit or license is suspended under this Subsection (6), a sign provided by
             687      the department shall be prominently posted:
             688          (A) during the suspension;
             689          (B) by the permittee or licensee; and
             690          (C) at the entrance of the premises of the permittee or licensee.
             691          (ii) The sign required by this Subsection (6)(e) shall:
             692          (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
             693      alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be
             694      sold, served, furnished, or consumed on these premises during the period of suspension."; and
             695          (B) include the dates of the suspension period.
             696          (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
             697      to be posted under this Subsection (6)(e) during the suspension period.
             698          (f) If a permit or license is revoked, the commission may order the revocation of any
             699      compliance bond posted by the permittee or licensee.
             700          (g) Any permittee or licensee whose permit or license is revoked may not reapply for a
             701      permit or license under this title for three years from the date on which the permit or license is


             702      revoked.
             703          (h) All costs assessed by the commission shall be transferred into the General Fund in
             704      accordance with Section 32A-1-113 .
             705          (7) (a) In addition to any action taken against a permittee, licensee, or certificate holder
             706      under this section, the department may initiate disciplinary action against an officer, employee,
             707      or agent of a permittee, licensee, or certificate holder.
             708          (b) If any officer, employee, or agent is found to have violated this title, the
             709      commission may prohibit the officer, employee, or agent from serving, selling, distributing,
             710      manufacturing, wholesaling, warehousing, or handling alcoholic beverages in the course of
             711      employment with any permittee, licensee, or certificate holder under this title for a period
             712      determined by the commission.
             713          (8) (a) The department may initiate a disciplinary proceeding for an alleged violation of
             714      this title or the rules of the commission against:
             715          (i) a manufacturer, supplier, or importer of alcoholic beverages; or
             716          (ii) an officer, employee, agent, or representative of a person listed in Subsection
             717      (8)(a)(i).
             718          (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
             719      commission may, in addition to other penalties prescribed by this title, order:
             720          (A) the removal of the manufacturer's, supplier's, or importer's products from the
             721      department's sales list; and
             722          (B) a suspension of the department's purchase of the products described in Subsection
             723      (8)(b)(i)(A) for a period determined by the commission.
             724          (ii) The commission may take the action described in Subsection (8)(b)(i) if:
             725          (A) any manufacturer, supplier, or importer of liquor, wine, or heavy beer or its officer,
             726      employee, agent, or representative violates any provision of this title; and
             727          (B) the manufacturer, supplier, or importer:
             728          (I) directly committed the violation; or
             729          (II) solicited, requested, commanded, encouraged, or intentionally aided another to


             730      engage in the violation.
             731          (9) (a) The department may initiate a disciplinary proceeding against a brewer holding
             732      a certificate of approval under Section 32A-8-101 for an alleged violation of this title or the
             733      rules of the commission.
             734          (b) If the commission makes a finding that the brewer holding a certificate of approval
             735      violates this title or rules of the commission, the commission may take any action against the
             736      brewer holding a certificate of approval that the commission could take against a licensee
             737      including:
             738          (i) suspension or revocation of the certificate of approval; and
             739          (ii) imposition of a fine.
             740          (10) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by
             741      the commission or a hearing examiner appointed by the commission shall proceed formally in
             742      accordance with Sections 63-46b-6 through 63-46b-11 in any case where:
             743          (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
             744      and welfare;
             745          (ii) the alleged violation involves:
             746          (A) selling, serving, or otherwise furnishing alcoholic products to a minor;
             747          (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
             748      Entertainment Act;
             749          (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
             750      of the respondent;
             751          (D) interfering or refusing to cooperate with:
             752          (I) an authorized official of the department or the state in the discharge of the official's
             753      duties in relation to the enforcement of this title; or
             754          (II) a peace officer in the discharge of the peace officer's duties in relation to the
             755      enforcement of this title;
             756          (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
             757          (F) unlawful importation of alcoholic products; or


             758          (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
             759      32A-12-601 (2), to any person other than the department or a military installation, except to the
             760      extent permitted by this title; or
             761          (iii) the department determines to seek in a disciplinary proceeding hearing:
             762          (A) an administrative fine exceeding $3,000;
             763          (B) a suspension of a license, permit, or certificate of approval of more than ten days;
             764      or
             765          (C) a revocation of a license, permit, or certificate of approval.
             766          (b) The commission shall make rules in accordance with Title 63, Chapter 46a, Utah
             767      Administrative Rulemaking Act, to provide a procedure to implement this Subsection (10).
             768          Section 7. Section 32A-1-120 is amended to read:
             769           32A-1-120. Judicial review -- Enforcement.
             770          (1) In a disciplinary proceeding, [any party named] as defined in Section 32A-1-119 , a
             771      respondent found in a final order of the commission to have violated this title or rules of the
             772      commission made under this title may seek judicial review in a court of competent jurisdiction
             773      pursuant to the judicial review provisions of Sections 63-46b-14 through 63-46b-18 .
             774          [(2) (a) The findings of the commission on questions of fact are final and are not
             775      subject to review.]
             776          [(b) "Questions of fact" include ultimate facts and findings and conclusions of the
             777      commission on reasonableness and discretion.]
             778          [(3) After the hearing, the reviewing court shall enter judgment affirming or setting
             779      aside the order of the commission.]
             780          [(4) (a) The fact that a petition is pending in a reviewing court does not stay or suspend
             781      the operation of any order of the commission.]
             782          [(b) The reviewing court may order that the commission's order be stayed or suspended
             783      during the appeal.]
             784          [(c) Before issuing an order staying or suspending the commission's order, the
             785      reviewing court shall:]


             786          [(i) give three days' notice to the parties; and]
             787          [(ii) hold a hearing to receive argument and evidence on whether or not the
             788      commission's order should be stayed or suspended.]
             789          [(d) If the reviewing court decides to stay or suspend the commission's order, it shall
             790      make a written finding that:]
             791          [(i) great or irreparable damage would result to the petitioner absent the stay or
             792      suspension;]
             793          [(ii) specifies the nature of the damage; and]
             794          [(iii) is based upon evidence submitted to the court and identified by reference.]
             795          (2) Notwithstanding Subsection 63-46b-16 (4)(g), an appellate court may not grant
             796      relief on the basis that a finding of fact by the commission in a formal disciplinary proceeding
             797      is not supported, if the commission's finding of fact is supported by any evidence of substance
             798      in the record of the formal disciplinary proceeding when viewed in light of the whole record
             799      before the court.
             800          (3) In addition to any other remedy provided by law, the commission may seek
             801      enforcement of a commission order in a disciplinary proceeding by seeking civil enforcement
             802      in a state district court in accordance with Section 63-46b-19 .
             803          Section 8. Section 32A-1-122 is amended to read:
             804           32A-1-122. Liquor prices -- School lunch program.
             805          (1) For purposes of this section:
             806          (a) "Landed case cost" means:
             807          (i) the cost of the product; and
             808          (ii) inbound shipping costs incurred by the department.
             809          (b) "Landed case cost" does not include the outbound shipping cost from a warehouse
             810      of the department to a state store.
             811          [(1)] (2) (a) Except as provided in Subsections (2)(b) and [(3)] (c), all spirituous liquor
             812      and wine sold by the department within the state shall be marked up in an amount not less than
             813      [64.5%] 86% above the landed case cost to the department.


             814          [(2)] (b) All spirituous liquor and wine sold by the department to military installations
             815      in Utah shall be marked up in an amount not less than 15% above the landed case cost to the
             816      department.
             817          [(3)] (c) If a wine manufacturer producing less than 20,000 gallons of wine in any
             818      calendar year, as verified by the department pursuant to federal or other verifiable production
             819      reports, first applies to the department for a reduced markup, all wine [sold in Utah by the wine
             820      manufacturer] produced by the wine manufacturer and sold to the department shall be marked
             821      up by the department in an amount not less than [30%] 47% above the landed case cost to the
             822      department.
             823          (3) (a) Except as provided in Subsection (3)(b), all heavy beer sold by the department
             824      within the state shall be marked up in an amount not less than 64.5% above the landed case
             825      cost to the department.
             826          (b) All heavy beer sold by the department to military installations in Utah shall be
             827      marked up in an amount not less than 15% above the landed case cost to the department.
             828          (4) Ten percent of the total gross revenue from sales of spiritous liquor, wine, and
             829      heavy beer shall be deposited by the department with the state treasurer and credited to the
             830      Uniform School Fund to be used to support the school lunch program administered by the State
             831      Board of Education under Section 53A-19-201 .
             832          [(4)] (5) Nothing in this section prohibits the department from selling discontinued
             833      [lines] items at a discount.
             834          Section 9. Section 32A-1-401 is amended to read:
             835           32A-1-401. Alcohol training and education -- Revocation, suspension, or
             836      nonrenewal of licenses.
             837          (1) The commission may suspend, revoke, or not renew the license of any licensee
             838      licensed by the commission if any of the following individuals, as defined in Section
             839      62A-15-401 , fail to complete an alcohol training and education seminar required in Section
             840      62A-15-401 :
             841          (a) an individual who manages operations at the premises of the licensee engaged in the


             842      retail sale of alcoholic beverages for consumption on the premises of the licensee;
             843          (b) an individual who supervises the serving of alcoholic beverages to a customer for
             844      consumption on the premises of the licensee; or
             845          (c) an individual who serves alcoholic beverages to a customer for consumption on the
             846      premises of the licensee.
             847          (2) A city, town, or county in which an establishment conducts its business may
             848      suspend, revoke, or not renew the business license of the establishment if any individual
             849      described in Subsection (1) fails to complete an alcohol training and education seminar
             850      required in Section 62A-15-401 .
             851          (3) A local authority that issues an off-premise beer retailer license to a [general food
             852      store or similar] business that is engaged in the retail sale of beer for consumption off the beer
             853      retailer's premises may immediately suspend the license if any of the following individuals fail
             854      to complete an alcohol training and education seminar required in Sections 32A-10-103 and
             855      62A-15-401 , an individual who:
             856          (a) directly supervises the sale of beer to a customer for consumption off the premises
             857      of the off-premise beer retailer licensee; or
             858          (b) sells beer to a customer for consumption off the premises of the off-premise beer
             859      retailer licensee.
             860          Section 10. Section 32A-1-601 is enacted to read:
             861     
Part 6. Attire, Conduct, and Entertainment Act

             862          32A-1-601. Title -- Purpose -- Application to other laws.
             863          (1) This part is known as the "Attire, Conduct, and Entertainment Act."
             864          (2) This part establishes reasonable and uniform time, place, and manner of operation
             865      restrictions relating to attire, conduct, and sexually oriented entertainers on a premises or at an
             866      event at which alcoholic beverages are sold, served, or allowed to be consumed under a retail
             867      license or permit issued by the commission so as to:
             868          (a) reduce the adverse secondary effects that the attire, conduct, and sexually oriented
             869      entertainers may have upon communities of this state; and


             870          (b) protect the health, peace, safety, welfare, and morals of the residents of
             871      communities of this state.
             872          (3) Nothing in this part permits or allows the showing or display of any matter that is
             873      contrary to:
             874          (a) applicable federal or state statutes prohibiting obscenity; or
             875          (b) state statutes relating to lewdness or indecent public displays.
             876          (4) A local authority may be more restrictive of attire, conduct, or sexually oriented
             877      entertainers of the type prohibited in this part.
             878          Section 11. Section 32A-1-602 is enacted to read:
             879          32A-1-602. General restrictions on attire and conduct.
             880          The following attire and conduct on a premises or at an event regulated by the
             881      commission under this title are considered contrary to the public health, peace, safety, welfare,
             882      and morals, and are prohibited:
             883          (1) employing or using a person in the sale or service of alcoholic beverages while the
             884      person is in:
             885          (a) a state of nudity;
             886          (b) a state of seminudity; or
             887          (c) attire, costume, or clothing that exposes to view any portion of:
             888          (i) the female breast below the top of the areola; or
             889          (ii) the cleft of the buttocks;
             890          (2) employing or using the services of a person to mingle with patrons while the person
             891      is in:
             892          (a) a state of nudity;
             893          (b) a state of seminudity; or
             894          (c) attire, costume, or clothing that exposes to view any portion of:
             895          (i) the female breast below the top of the areola; or
             896          (ii) the cleft of the buttocks;
             897          (3) encouraging or permitting a person to:


             898          (a) engage in or simulate an act of:
             899          (i) sexual intercourse;
             900          (ii) masturbation;
             901          (iii) sodomy;
             902          (iv) bestiality;
             903          (v) oral copulation;
             904          (vi) flagellation; or
             905          (vii) a sexual act that is prohibited by Utah law; or
             906          (b) touch, caress, or fondle the breast, buttocks, anus, or genitals of any other person;
             907          (4) permitting a person to wear or use a device or covering that:
             908          (a) is exposed to view; and
             909          (b) simulates all or any portion of the human genitals, anus, pubic area, or female
             910      breast;
             911          (5) permitting a person to use an artificial device or inanimate object to depict an act
             912      prohibited by this section;
             913          (6) permitting a person to remain on a premises or at an event who exposes to public
             914      view any portion of that person's:
             915          (a) genitals, pubic area, or anus; or
             916          (b) in the case of a female, the areola and nipple of the breast; or
             917          (7) showing a film, still picture, electronic reproduction, or other visual reproduction
             918      depicting:
             919          (a) an act or simulated act of:
             920          (i) sexual intercourse;
             921          (ii) masturbation;
             922          (iii) sodomy;
             923          (iv) bestiality;
             924          (v) oral copulation;
             925          (vi) flagellation; or


             926          (vii) a sexual act that is prohibited by Utah law;
             927          (b) a person being touched, caressed, or fondled on the breast, buttocks, anus, or
             928      genitals;
             929          (c) a scene wherein an artificial device or inanimate object is employed to depict, or a
             930      drawing is employed to portray, an act prohibited by this section; or
             931          (d) a scene wherein a person displays the genitals or anus.
             932          Section 12. Section 32A-1-603 is enacted to read:
             933          32A-1-603. Sexually oriented entertainer.
             934          (1) Subject to the restrictions of this section, live entertainment is permitted on a
             935      premises or at an event regulated by the commission.
             936          (2) Notwithstanding Subsection (1), a licensee or permittee may not permit a person to:
             937          (a) appear or perform in a state of nudity;
             938          (b) perform or simulate an act of:
             939          (i) sexual intercourse;
             940          (ii) masturbation;
             941          (iii) sodomy;
             942          (iv) bestiality;
             943          (v) oral copulation;
             944          (vi) flagellation; or
             945          (v) a sexual act that is prohibited by Utah law; or
             946          (c) touch, caress, or fondle the breast, buttocks, anus, or genitals.
             947          (3) A sexually oriented entertainer may perform in a state of seminudity:
             948          (a) only in a tavern or class D private club; and
             949          (b) only if:
             950          (i) all windows, doors, and other apertures to the premises are darkened or otherwise
             951      constructed to prevent anyone outside the premises from seeing the performance; and
             952          (ii) the outside entrance doors of the premises remain unlocked.
             953          (4) A sexually oriented entertainer may perform only upon a stage or in a designated


             954      performance area that is:
             955          (a) approved by the commission in accordance with rules made by the commission in
             956      accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act;
             957          (b) configured so as to preclude a patron from:
             958          (i) touching the sexually oriented entertainer; or
             959          (ii) placing any money or object on or within the costume or the person of the sexually
             960      oriented entertainer; and
             961          (c) configured so as to preclude the sexually oriented entertainer from touching a
             962      patron.
             963          (5) A sexually oriented entertainer may not touch a patron:
             964          (a) during the sexually oriented entertainer's performance; or
             965          (b) while the sexually oriented entertainer is dressed in performance attire or costume.
             966          (6) A sexually oriented entertainer, while in the portion of the premises used by
             967      patrons, must be dressed in opaque clothing which covers and conceals the sexually oriented
             968      entertainer's performance attire or costume from the top of the breast to the knee.
             969          (7) A patron may not be on the stage or in the performance area while a sexually
             970      oriented entertainer is appearing or performing on the stage or in the performance area.
             971          (8) A patron may not:
             972          (a) touch a sexually oriented entertainer:
             973          (i) during the sexually oriented entertainer's performance; or
             974          (ii) while the sexually oriented entertainer is dressed in performance attire or costume;
             975      or
             976          (b) place money or any other object on or within the costume or the person of the
             977      sexually oriented entertainer.
             978          (9) A minor may not be on a premises described in Subsection (3) when a sexually
             979      oriented entertainer is performing on the premises.
             980          (10) A person who appears or performs for the entertainment of patrons on a premises
             981      or at an event regulated by the commission that is not a tavern or class D private club:


             982          (a) may not appear or perform in a state of nudity or a state of seminudity; and
             983          (b) may appear or perform in opaque clothing that completely covers the person's
             984      genitals, pubic area, and anus if the covering:
             985          (i) is not less than the following at its widest point:
             986          (A) four inches coverage width in the front of the human body; and
             987          (B) five inches coverage width in the back of the human body;
             988          (ii) does not taper to less than one inch wide at the narrowest point; and
             989          (iii) if covering a female, completely covers the breast below the top of the areola.
             990          Section 13. Section 32A-1-604 is enacted to read:
             991          32A-1-604. Compliance -- Disciplinary proceeding.
             992          (1) Each person granted a license or permit by the commission to sell, serve, or allow
             993      consumption of alcoholic beverages on a premises or at an event and each officer, employee, or
             994      agent of the licensee or permittee shall comply with the conditions and requirements of this
             995      part.
             996          (2) Failure to comply with this part may result in a disciplinary proceeding pursuant to
             997      Section 32A-1-119 against:
             998          (a) a licensee or permittee; and
             999          (b) an officer, employee, or agent of the licensee or permittee.
             1000          Section 14. Section 32A-4-102 is amended to read:
             1001           32A-4-102. Application and renewal requirements.
             1002          (1) A person seeking a restaurant liquor license under this part shall file a written
             1003      application with the department, in a form prescribed by the department. It shall be
             1004      accompanied by:
             1005          (a) a nonrefundable $250 application fee;
             1006          (b) an initial license fee of $1,750, which is refundable if a license is not granted;
             1007          (c) written consent of the local authority;
             1008          (d) a copy of the applicant's current business license;
             1009          (e) evidence of proximity to any public or private school, church, public library, public


             1010      playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
             1011      Subsections 32A-4-101 (4) and (5), the application shall be processed in accordance with those
             1012      subsections;
             1013          (f) a bond as specified by Section 32A-4-105 ;
             1014          (g) a floor plan of the restaurant, including consumption areas and the area where the
             1015      applicant proposes to keep, store, and sell liquor;
             1016          (h) evidence that the restaurant is carrying public liability insurance in an amount and
             1017      form satisfactory to the department;
             1018          (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
             1019      $500,000 per occurrence and $1,000,000 in the aggregate;
             1020          (j) a signed consent form stating that the restaurant will permit any authorized
             1021      representative of the commission, department, or any law enforcement officer unrestricted right
             1022      to enter the restaurant;
             1023          (k) in the case of an applicant that is a partnership, corporation, or limited liability
             1024      company, proper verification evidencing that the person or persons signing the restaurant
             1025      application are authorized to so act on behalf of the partnership, corporation, or limited liability
             1026      company; and
             1027          (l) any other information the commission or department may require.
             1028          (2) (a) All restaurant liquor licenses expire on October 31 of each year.
             1029          (b) Persons desiring to renew their restaurant liquor license shall by no later than
             1030      September 30 submit:
             1031          (i) a completed renewal application to the department; and
             1032          (ii) a renewal fee in the following amount:
             1033          Gross Cost of Liquor in Previous License Year for the Licensee        Renewal Fee
             1034          under $5,000                                    $750
             1035          equals or exceeds $5,000 but less than $10,000                $900
             1036          equals or exceeds $10,000 but less than $25,000                $1,250
             1037          equals or exceeds $25,000                            $1,500[.]


             1038          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             1039      the license effective on the date the existing license expires.
             1040          (d) Renewal applications shall be in a form as prescribed by the department.
             1041          (3) To ensure compliance with Subsection 32A-4-106 [(28)] (25), the commission may
             1042      suspend or revoke any restaurant liquor license if the restaurant liquor licensee does not
             1043      immediately notify the department of any change in:
             1044          (a) ownership of the restaurant;
             1045          (b) for a corporate owner, the:
             1046          (i) corporate officers or directors; or
             1047          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             1048      corporation; or
             1049          (c) for a limited liability company:
             1050          (i) managers; or
             1051          (ii) members owning at least 20% of the limited liability company.
             1052          Section 15. Section 32A-4-106 is amended to read:
             1053           32A-4-106. Operational restrictions.
             1054          Each person granted a restaurant liquor license and the employees and management
             1055      personnel of the restaurant shall comply with the following conditions and requirements.
             1056      Failure to comply may result in a suspension or revocation of the license or other disciplinary
             1057      action taken against individual employees or management personnel.
             1058          (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from state
             1059      stores or package agencies.
             1060          (b) Liquor purchased may be transported by the restaurant liquor licensee from the
             1061      place of purchase to the licensed premises.
             1062          (c) Payment for liquor shall be made in accordance with rules established by the
             1063      commission.
             1064          (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
             1065      a quantity not to exceed one ounce per beverage dispensed through a calibrated metered


             1066      dispensing system approved by the department in accordance with commission rules adopted
             1067      under this title, except that:
             1068          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1069      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1070      restrictions:
             1071          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             1072      a primary spirituous liquor;
             1073          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             1074          (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
             1075      on the floor plan provided to the department; and
             1076          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             1077          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1078      system if used:
             1079          (i) as a flavoring on desserts; and
             1080          (ii) in the preparation of flaming food dishes, drinks, and desserts;
             1081          (c) each restaurant patron may have no more than 2.75 ounces of spirituous liquor at a
             1082      time; and
             1083          (d) each restaurant patron may have no more than one spirituous liquor drink at a time
             1084      before the patron.
             1085          (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
             1086      exceed five ounces per glass or individual portion.
             1087          (ii) An individual portion of wine may be served to a patron in more than one glass as
             1088      long as the total amount of wine does not exceed five ounces.
             1089          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1090      Subsection (7)(e).
             1091          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             1092      fixed by the commission to tables of four or more persons.
             1093          (ii) Wine may be sold and served in containers not exceeding 750 [ml] milliliters at


             1094      prices fixed by the commission to tables of less than four persons.
             1095          (c) A wine service may be performed and a service charge assessed by the restaurant as
             1096      authorized by commission rule for wine purchased at the restaurant.
             1097          (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
             1098      fixed by the commission.
             1099          (b) A service charge may be assessed by the restaurant as authorized by commission
             1100      rule for heavy beer purchased at the restaurant.
             1101          (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant licensed to sell liquor may sell
             1102      beer for on-premise consumption:
             1103          (A) in an open container; and
             1104          (B) on draft.
             1105          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             1106      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1107      container that exceeds one liter.
             1108          (b) A restaurant licensed under this chapter that sells beer pursuant to Subsection
             1109      (5)(a):
             1110          (i) may do so without obtaining a separate on-premise beer retailer license from the
             1111      commission; and
             1112          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1113      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             1114      inconsistent with or less restrictive than the operational restrictions under this part.
             1115          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1116      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             1117      restaurant's:
             1118          (i) state liquor license; and
             1119          (ii) alcoholic beverage license issued by the local authority.
             1120          (6) Alcoholic beverages may not be stored, served, or sold in any place other than as
             1121      designated in the licensee's application, unless the licensee first applies for and receives


             1122      approval from the department for a change of location within the restaurant.
             1123          (7) (a) (i) A patron may only make alcoholic beverage purchases in the restaurant from
             1124      and be served by a person employed, designated, and trained by the licensee to sell and serve
             1125      alcoholic beverages.
             1126          (ii) Notwithstanding Subsection (7)(a)(i), a patron who has purchased bottled wine
             1127      from an employee of the restaurant or has carried bottled wine onto the premises of the
             1128      restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the patron
             1129      or others at the patron's table.
             1130          (b) Alcoholic beverages shall be delivered by a server to the patron.
             1131          (c) Any alcoholic beverage may only be consumed at the patron's table or counter.
             1132          (d) Alcoholic beverages may not be served to or consumed by a patron at a bar.
             1133          (e) Each restaurant patron may have no more than two alcoholic beverages of any kind
             1134      at a time before the patron, subject to the limitation in Subsection (2)(d).
             1135          (8) The liquor storage area shall remain locked at all times other than those hours and
             1136      days when liquor sales are authorized by law.
             1137          (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             1138      restaurant during the following days or hours:
             1139          (i) until after the polls are closed on the day of any:
             1140          (A) regular general election;
             1141          (B) regular primary election; or
             1142          (C) statewide special election;
             1143          (ii) until after the polls are closed on the day of any municipal, special district, or
             1144      school election, but only:
             1145          (A) within the boundaries of the municipality, special district, or school district; and
             1146          (B) if required by local ordinance; and
             1147          (iii) on any other day after 12 midnight and before 12 noon.
             1148          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             1149      Licenses, for on-premise beer licensees.


             1150          (10) Alcoholic beverages may not be sold except in connection with an order for food
             1151      prepared, sold, and served at the restaurant.
             1152          (11) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             1153          (a) minor;
             1154          (b) person actually, apparently, or obviously intoxicated;
             1155          (c) known habitual drunkard; or
             1156          (d) known interdicted person.
             1157          (12) (a) (i) Liquor may be sold only at prices fixed by the commission.
             1158          (ii) Liquor may not be sold at discount prices on any date or at any time.
             1159          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             1160      beverage to the licensee.
             1161          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1162      over consumption or intoxication.
             1163          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1164      hours of the restaurant's business day such as a "happy hour."
             1165          (e) The sale or service of more than one alcoholic beverage for the price of a single
             1166      alcoholic beverage is prohibited.
             1167          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
             1168      during any set period for a fixed price is prohibited.
             1169          (g) A restaurant licensee may not engage in a public promotion involving or offering
             1170      free alcoholic beverages to the general public.
             1171          (13) Alcoholic beverages may not be purchased for a patron of a restaurant by:
             1172          (a) the licensee; or
             1173          (b) any employee or agent of the licensee.
             1174          (14) (a) A person may not bring onto the premises of a restaurant liquor licensee any
             1175      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             1176      discretion of the licensee, bottled wine onto the premises of any restaurant liquor licensee for
             1177      on-premise consumption.


             1178          (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or its
             1179      officers, managers, employees, or agents may not allow:
             1180          (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
             1181      consumption; or
             1182          (ii) consumption of any such alcoholic beverage on its premises.
             1183          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             1184      or other representative of the licensee upon entering the restaurant.
             1185          (d) A wine service may be performed and a service charge assessed by the restaurant as
             1186      authorized by commission rule for wine carried in by a patron.
             1187          (15) (a) Except as provided in Subsection (15)(b), a restaurant licensee and its
             1188      employees may not permit a restaurant patron to carry from the restaurant premises an open
             1189      container that:
             1190          (i) is used primarily for drinking purposes; and
             1191          (ii) contains any alcoholic beverage.
             1192          (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
             1193      restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
             1194      onto the premises of the restaurant in accordance with Subsection (14), provided the bottle has
             1195      been recorked or recapped before removal.
             1196          (16) (a) A minor may not be employed by a restaurant licensee to sell or dispense
             1197      alcoholic beverages.
             1198          (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
             1199      employed to enter the sale at a cash register or other sales recording device.
             1200          (17) An employee of a restaurant liquor licensee, while on duty, may not:
             1201          (a) consume an alcoholic beverage; or
             1202          (b) be intoxicated.
             1203          (18) Any charge or fee made in connection with the sale, service, or consumption of
             1204      liquor may be stated in food or alcoholic beverage menus including:
             1205          (a) a set-up charge;


             1206          (b) a service charge; or
             1207          (c) a chilling fee.
             1208          (19) Each restaurant liquor licensee shall display in a prominent place in the restaurant:
             1209          (a) the liquor license that is issued by the department;
             1210          (b) a list of the types and brand names of liquor being served through its calibrated
             1211      metered dispensing system; and
             1212          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1213      drugs is a serious crime that is prosecuted aggressively in Utah."
             1214          [(20) The following acts or conduct in a restaurant licensed under this chapter are
             1215      considered contrary to the public welfare and morals, and are prohibited upon the premises:]
             1216          [(a) employing or using any person in the sale or service of alcoholic beverages while
             1217      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             1218      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             1219      buttocks, vulva, or genitals;]
             1220          [(b) employing or using the services of any person to mingle with the patrons while the
             1221      person is unclothed or in attire, costume, or clothing described in Subsection (20)(a);]
             1222          [(c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             1223      buttocks, anus, or genitals of any other person;]
             1224          [(d) permitting any employee or person to wear or use any device or covering, exposed
             1225      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;]
             1226          [(e) permitting any person to use artificial devices or inanimate objects to depict any of
             1227      the prohibited activities described in this Subsection (20);]
             1228          [(f) permitting any person to remain in or upon the premises who exposes to public
             1229      view any portion of that person's genitals or anus; or]
             1230          [(g) showing films, still pictures, electronic reproductions, or other visual
             1231      reproductions depicting:]
             1232          [(i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             1233      copulation, flagellation, or any sexual acts prohibited by Utah law;]


             1234          [(ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             1235      genitals;]
             1236          [(iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             1237      drawings are used to portray, any of the prohibited activities described in this Subsection (20);
             1238      or]
             1239          [(iv) scenes wherein a person displays the vulva or the anus or the genitals.]
             1240          [(21) Nothing in Subsection (20) precludes a local authority from being more
             1241      restrictive of acts or conduct of the type prohibited in Subsection (20).]
             1242          [(22) (a) Although live entertainment is permitted on the premises of a restaurant liquor
             1243      licensee, a licensee may not allow any person to perform or simulate sexual acts prohibited by
             1244      Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral copulation,
             1245      flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the
             1246      displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon a
             1247      stage or at a designated area approved by the commission.]
             1248          [(b) Nothing in Subsection (22)(a) precludes a local authority from being more
             1249      restrictive of acts or conduct of the type prohibited in Subsection (22)(a).]
             1250          [(23)] (20) A restaurant liquor licensee may not engage in or permit any form of
             1251      gambling, or have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1252      Part 11, Gambling, on the premises of the restaurant liquor licensee.
             1253          [(24)] (21) (a) Each restaurant liquor licensee shall maintain an expense ledger or
             1254      record showing in detail:
             1255          (i) quarterly expenditures made separately for:
             1256          (A) malt or brewed beverages;
             1257          (B) set-ups;
             1258          (C) liquor;
             1259          (D) food; and
             1260          (E) all other items required by the department; and
             1261          (ii) sales made separately for:


             1262          (A) malt or brewed beverages;
             1263          (B) set-ups;
             1264          (C) food; and
             1265          (D) all other items required by the department.
             1266          (b) The record required by Subsection [(24)] (21)(a) shall be kept:
             1267          (i) in a form approved by the department; and
             1268          (ii) current for each three-month period.
             1269          (c) Each expenditure shall be supported by:
             1270          (i) delivery tickets;
             1271          (ii) invoices;
             1272          (iii) receipted bills;
             1273          (iv) canceled checks;
             1274          (v) petty cash vouchers; or
             1275          (vi) other sustaining data or memoranda.
             1276          (d) In addition to a ledger or record required under Subsection [(24)] (21)(a), a
             1277      restaurant liquor licensee shall maintain accounting and other records and documents as the
             1278      department may require.
             1279          (e) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,
             1280      alters, cancels, destroys, conceals, or removes the entries in any of the books of account or
             1281      other documents of the restaurant required to be made, maintained, or preserved by this title or
             1282      the rules of the commission for the purpose of deceiving the commission or the department, or
             1283      any of their officials or employees, is subject to:
             1284          (i) the suspension or revocation of the restaurant's liquor license; and
             1285          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1286          [(25)] (22) (a) A restaurant liquor licensee may not close or cease operation for a
             1287      period longer than 240 hours, unless:
             1288          (i) the restaurant liquor licensee notifies the department in writing at least seven days
             1289      before the closing; and


             1290          (ii) the closure or cessation of operation is first approved by the department.
             1291          (b) Notwithstanding Subsection [(25)] (22)(a), in the case of emergency closure,
             1292      immediate notice of closure shall be made to the department by telephone.
             1293          (c) The department may authorize a closure or cessation of operation for a period not to
             1294      exceed 60 days. The department may extend the initial period an additional 30 days upon
             1295      written request of the restaurant licensee and upon a showing of good cause. A closure or
             1296      cessation of operation may not exceed a total of 90 days without commission approval.
             1297          (d) Any notice shall include:
             1298          (i) the dates of closure or cessation of operation;
             1299          (ii) the reason for the closure or cessation of operation; and
             1300          (iii) the date on which the licensee will reopen or resume operation.
             1301          (e) Failure of the licensee to provide notice and to obtain department authorization
             1302      prior to closure or cessation of operation shall result in an automatic forfeiture of:
             1303          (i) the license; and
             1304          (ii) the unused portion of the license fee for the remainder of the license year effective
             1305      immediately.
             1306          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             1307      result in an automatic forfeiture of:
             1308          (i) the license; and
             1309          (ii) the unused portion of the license fee for the remainder of the license year.
             1310          [(26)] (23) Each restaurant liquor licensee shall maintain at least 70% of its total
             1311      restaurant business from the sale of food, which does not include mix for alcoholic beverages
             1312      or service charges.
             1313          [(27)] (24) A restaurant liquor license may not be transferred from one location to
             1314      another, without prior written approval of the commission.
             1315          [(28)] (25) (a) A person, having been granted a restaurant liquor license may not sell,
             1316      transfer, assign, exchange, barter, give, or attempt in any way to dispose of the license to any
             1317      other person whether for monetary gain or not.


             1318          (b) A restaurant liquor license has no monetary value for the purpose of any type of
             1319      disposition.
             1320          [(29)] (26) Each server of alcoholic beverages in a licensee's establishment shall keep a
             1321      written beverage tab for each table or group that orders or consumes alcoholic beverages on the
             1322      premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
             1323      consumed.
             1324          [(30)] (27) A person's willingness to serve alcoholic beverages may not be made a
             1325      condition of employment as a server with a restaurant that has a restaurant liquor license.
             1326          Section 16. Section 32A-4-206 is amended to read:
             1327           32A-4-206. Operational restrictions.
             1328          Each person granted an airport lounge liquor license and the employees and
             1329      management personnel of the airport lounge shall comply with the following conditions and
             1330      requirements. Failure to comply may result in a suspension or revocation of the license or
             1331      other disciplinary action taken against individual employees or management personnel.
             1332          (1) (a) Liquor may not be purchased by an airport lounge liquor licensee except from
             1333      state stores or package agencies.
             1334          (b) Liquor purchased may be transported by the licensee from the place of purchase to
             1335      the licensed premises.
             1336          (c) Payment for liquor shall be made in accordance with the rules established by the
             1337      commission.
             1338          (2) An airport lounge liquor licensee may sell or provide a primary spirituous liquor
             1339      only in a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             1340      dispensing system approved by the department in accordance with commission rules adopted
             1341      under this title, except that:
             1342          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1343      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1344      restrictions:
             1345          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of


             1346      a spirituous primary liquor;
             1347          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             1348          (iii) the airport lounge liquor licensee shall designate a location where flavorings are
             1349      stored on the floor plan provided to the department; and
             1350          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             1351          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1352      system if used:
             1353          (i) as a flavoring on desserts; and
             1354          (ii) in the preparation of flaming food dishes, drinks, and desserts; and
             1355          (c) each airport lounge patron may have no more than 2.75 ounces of spirituous liquor
             1356      at a time before the patron.
             1357          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             1358      exceed five ounces per glass or individual portion.
             1359          (ii) An individual portion may be served to a patron in more than one glass as long as
             1360      the total amount of wine does not exceed five ounces.
             1361          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1362      Subsection (7)(c).
             1363          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             1364      fixed by the commission to tables of four or more persons.
             1365          (ii) Wine may be sold and served in containers not exceeding 750 [ml] milliliters at
             1366      prices fixed by the commission to tables of less than four persons.
             1367          (c) A wine service may be performed and a service charge assessed by the airport
             1368      lounge as authorized by commission rule for wine purchased at the airport lounge.
             1369          (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
             1370      fixed by the commission.
             1371          (b) A service charge may be assessed by the airport lounge as authorized by
             1372      commission rule for heavy beer purchased at the airport lounge.
             1373          (5) (a) (i) Subject to Subsection (5)(a)(ii), an airport lounge licensed to sell liquor may


             1374      sell beer for on-premise consumption:
             1375          (A) in an open container; and
             1376          (B) on draft.
             1377          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             1378      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1379      container that exceeds one liter.
             1380          (b) An airport lounge that sells beer pursuant to Subsection (5)(a):
             1381          (i) may do so without obtaining a separate on-premise beer retailer license from the
             1382      commission; and
             1383          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1384      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             1385      inconsistent with or less restrictive than the operational restrictions under this part.
             1386          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1387      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the airport
             1388      lounge's:
             1389          (i) state liquor license; and
             1390          (ii) alcoholic beverage license issued by the local authority.
             1391          (6) Alcoholic beverages may not be stored, served, or sold in any place other than as
             1392      designated in the licensee's application, unless the licensee first applies for and receives
             1393      approval from the department for a change of location within the airport lounge.
             1394          (7) (a) A patron may only make purchases in the airport lounge from and be served by
             1395      a person employed, designated, and trained by the licensee to sell, dispense, and serve alcoholic
             1396      beverages.
             1397          (b) Notwithstanding Subsection (7)(a), a patron who has purchased bottled wine from
             1398      an employee of the airport lounge may serve wine from the bottle to the patron or others at the
             1399      patron's table.
             1400          (c) Each airport lounge patron may have no more than two alcoholic beverages of any
             1401      kind at a time before the patron.


             1402          (8) The liquor storage area shall remain locked at all times other than those hours and
             1403      days when liquor sales and service are authorized by law.
             1404          (9) Alcoholic beverages may not be sold, offered for sale, served, or otherwise
             1405      furnished at an airport lounge on any day after 12 midnight and before 8 a.m.
             1406          (10) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             1407          (a) minor;
             1408          (b) person actually, apparently, or obviously intoxicated;
             1409          (c) known habitual drunkard; or
             1410          (d) known interdicted person.
             1411          (11) (a) (i) Liquor may be sold only at prices fixed by the commission.
             1412          (ii) Liquor may not be sold at discount prices on any date or at any time.
             1413          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             1414      to the licensee.
             1415          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1416      over consumption or intoxication.
             1417          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1418      hours of the airport lounge's business day such as a "happy hour."
             1419          (e) The sale or service of more than one alcoholic beverage for the price of a single
             1420      alcoholic beverage is prohibited.
             1421          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
             1422      during any set period for a fixed price is prohibited.
             1423          (g) An airport lounge licensee may not engage in a public promotion involving or
             1424      offering free alcoholic beverages to the general public.
             1425          (12) Alcoholic beverages may not be purchased for a patron of an airport lounge by:
             1426          (a) the licensee; or
             1427          (b) any employee or agent of the licensee.
             1428          (13) (a) A person may not bring onto the premises of an airport lounge licensee any
             1429      alcoholic beverage for on-premise consumption.


             1430          (b) An airport lounge or its officers, managers, employees, or agents may not allow a
             1431      person to bring onto the airport lounge premises any alcoholic beverage for on-premise
             1432      consumption or allow consumption of any such alcoholic beverage on its premises.
             1433          (14) An airport lounge licensee and its employees may not permit a patron to remove
             1434      any alcoholic beverages from the airport lounge premises.
             1435          (15) (a) A minor may not be employed by an airport lounge licensee to sell or dispense
             1436      alcoholic beverages.
             1437          (b) Notwithstanding Subsection (15)(a), a minor who is at least 16 years of age may be
             1438      employed to enter the sale at a cash register or other sales recording device.
             1439          (16) An employee of an airport lounge licensee, while on duty, may not:
             1440          (a) consume an alcoholic beverage; or
             1441          (b) be intoxicated.
             1442          (17) Any charge or fee made in connection with the sale, service, or consumption of
             1443      liquor may be stated in a food or alcoholic beverage menu including:
             1444          (a) a set-up charge;
             1445          (b) a service charge; or
             1446          (c) a chilling fee.
             1447          (18) Each airport lounge liquor licensee shall display in a prominent place in the airport
             1448      lounge:
             1449          (a) the liquor license that is issued by the department;
             1450          (b) a list of the types and brand names of liquor being served through its calibrated
             1451      metered dispensing system; and
             1452          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1453      drugs is a serious crime that is prosecuted aggressively in Utah."
             1454          (19) (a) Each airport lounge liquor licensee shall maintain an expense ledger or record
             1455      showing in detail:
             1456          (i) quarterly expenditures made separately for malt or brewed beverages, liquor, and all
             1457      other items required by the department; and


             1458          (ii) sales made separately for malt or brewed beverages, food, and all other items
             1459      required by the department.
             1460          (b) This record shall be kept:
             1461          (i) in a form approved by the department; and
             1462          (ii) current for each three-month period.
             1463          (c) Each expenditure shall be supported by:
             1464          (i) delivery tickets;
             1465          (ii) invoices;
             1466          (iii) receipted bills;
             1467          (iv) canceled checks;
             1468          (v) petty cash vouchers; or
             1469          (vi) other sustaining data or memoranda.
             1470          (d) In addition to a ledger or record required by Subsection (19)(a), each airport lounge
             1471      liquor licensee shall maintain accounting and other records and documents as the department
             1472      may require.
             1473          (e) Any airport lounge or person acting for the airport lounge, who knowingly forges,
             1474      falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the books of
             1475      account or other documents of the airport lounge required to be made, maintained, or preserved
             1476      by this title or the rules of the commission for the purpose of deceiving the commission or the
             1477      department, or any of their officials or employees, is subject to:
             1478          (i) the immediate suspension or revocation of the airport lounge's liquor license; and
             1479          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1480          (20) An airport lounge liquor license may not be transferred from one location to
             1481      another, without prior written approval of the commission.
             1482          (21) (a) An airport lounge liquor licensee may not sell, transfer, assign, exchange,
             1483      barter, give, or attempt in any way to dispose of the license to any other person, whether for
             1484      monetary gain or not.
             1485          (b) An airport lounge liquor license has no monetary value for the purpose of any type


             1486      of disposition.
             1487          (22) Each server of alcoholic beverages in a licensee's establishment shall keep a
             1488      written beverage tab for each table or group that orders or consumes alcoholic beverages on the
             1489      premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
             1490      consumed.
             1491          (23) An airport lounge liquor licensee's premises may not be leased for private
             1492      functions.
             1493          (24) An airport lounge liquor licensee may not engage in or permit any form of
             1494      gambling, or have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1495      Part 11, Gambling, on the premises of the airport lounge liquor licensee.
             1496          Section 17. Section 32A-4-303 is amended to read:
             1497           32A-4-303. Application and renewal requirements.
             1498          (1) A person seeking a limited restaurant license under this part shall file a written
             1499      application with the department, in a form prescribed by the department. The application shall
             1500      be accompanied by:
             1501          (a) a nonrefundable $250 application fee;
             1502          (b) an initial license fee of $500, which is refundable if a license is not granted;
             1503          (c) written consent of the local authority;
             1504          (d) a copy of the applicant's current business license;
             1505          (e) evidence of proximity to any public or private school, church, public library, public
             1506      playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
             1507      Subsections 32A-4-302 (4) and (5), the application shall be processed in accordance with those
             1508      subsections;
             1509          (f) a bond as specified by Section 32A-4-306 ;
             1510          (g) a floor plan of the restaurant, including:
             1511          (i) consumption areas; and
             1512          (ii) the area where the applicant proposes to keep, store, and sell wine, heavy beer, and
             1513      beer;


             1514          (h) evidence that the restaurant is carrying public liability insurance in an amount and
             1515      form satisfactory to the department;
             1516          (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
             1517      $500,000 per occurrence and $1,000,000 in the aggregate;
             1518          (j) a signed consent form stating that the restaurant will permit any authorized
             1519      representative of the commission, department, or any law enforcement officer unrestricted right
             1520      to enter the restaurant;
             1521          (k) in the case of an applicant that is a partnership, corporation, or limited liability
             1522      company, proper verification evidencing that the person or persons signing the restaurant
             1523      application are authorized to so act on behalf of the partnership, corporation, or limited liability
             1524      company; and
             1525          (l) any other information the commission or department may require.
             1526          [(2) A holder of a restaurant liquor license or a private club license on May 5, 2003,
             1527      may not be required to pay the application or initial license fees for a limited restaurant license
             1528      under this chapter if the licensee:]
             1529          [(a) surrenders the restaurant liquor license or private club license before being granted
             1530      a limited restaurant license; and]
             1531          [(b) applies for a limited restaurant license in calendar year 2003:]
             1532          [(i) for the same premises for which the restaurant liquor license or private club license
             1533      was granted; and]
             1534          [(ii) before the expiration of the restaurant liquor license or private club license.]
             1535          [(3)] (2) (a) All limited restaurant licenses expire on October 31 of each year.
             1536          (b) A person desiring to renew that person's limited restaurant license shall submit:
             1537          (i) a renewal fee of $300; and
             1538          (ii) a renewal application to the department no later than September 30.
             1539          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             1540      the license effective on the date the existing license expires.
             1541          (d) Renewal applications shall be in a form as prescribed by the department.


             1542          [(4)] (3) To ensure compliance with Subsection 32A-4-307 [(28)] (25), the commission
             1543      may suspend or revoke a limited restaurant license if the limited restaurant licensee does not
             1544      immediately notify the department of any change in:
             1545          (a) ownership of the restaurant;
             1546          (b) for a corporate owner, the:
             1547          (i) corporate officer or directors; or
             1548          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             1549      corporation; or
             1550          (c) for a limited liability company:
             1551          (i) managers; or
             1552          (ii) members owning at least 20% of the limited liability company.
             1553          Section 18. Section 32A-4-307 is amended to read:
             1554           32A-4-307. Operational restrictions.
             1555          Each person granted a limited restaurant license and the employees and management
             1556      personnel of the restaurant shall comply with the following conditions and requirements.
             1557      Failure to comply may result in a suspension or revocation of the license or other disciplinary
             1558      action taken against individual employees or management personnel.
             1559          (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
             1560      except from state stores or package agencies.
             1561          (b) Wine and heavy beer purchased in accordance with Subsection (1)(a) may be
             1562      transported by the licensee from the place of purchase to the licensed premises.
             1563          (c) Payment for wine and heavy beer shall be made in accordance with rules
             1564      established by the commission.
             1565          (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of
             1566      spirituous liquor on the premises of the restaurant.
             1567          (b) Spirituous liquor may not be on the premises of the restaurant except for use:
             1568          (i) as a flavoring on desserts; and
             1569          (ii) in the preparation of flaming food dishes, drinks, and desserts.


             1570          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             1571      exceed five ounces per glass or individual portion.
             1572          (ii) An individual portion may be served to a patron in more than one glass as long as
             1573      the total amount of wine does not exceed five ounces.
             1574          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1575      Subsection (7)(e).
             1576          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             1577      fixed by the commission to tables of four or more persons.
             1578          (ii) Wine may be sold and served in containers not exceeding 750 [ml] milliliters at
             1579      prices fixed by the commission to tables of less than four persons.
             1580          (c) A wine service may be performed and a service charge assessed by the limited
             1581      restaurant as authorized by commission rule for wine purchased at the limited restaurant.
             1582          (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
             1583      fixed by the commission.
             1584          (b) A service charge may be assessed by the limited restaurant as authorized by
             1585      commission rule for heavy beer purchased at the restaurant.
             1586          (5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer for
             1587      on-premise consumption:
             1588          (A) in an open container; and
             1589          (B) on draft.
             1590          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             1591      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1592      container that exceeds one liter.
             1593          (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
             1594          (i) may do so without obtaining a separate on-premise beer retailer license from the
             1595      commission; and
             1596          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1597      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are


             1598      inconsistent with or less restrictive than the operational restrictions under this part.
             1599          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1600      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             1601      restaurant's:
             1602          (i) limited restaurant license; and
             1603          (ii) alcoholic beverage license issued by the local authority.
             1604          (6) Wine, heavy beer, and beer may not be stored, served, or sold in any place other
             1605      than as designated in the licensee's application, unless the licensee first applies for and receives
             1606      approval from the department for a change of location within the restaurant.
             1607          (7) (a) (i) A patron may only make alcoholic beverage purchases in the limited
             1608      restaurant from and be served by a person employed, designated, and trained by the licensee to
             1609      sell and serve alcoholic beverages.
             1610          (ii) Notwithstanding Subsection (7)(a)(i), a patron who has purchased bottled wine
             1611      from an employee of the restaurant or has carried bottled wine onto the premises of the
             1612      restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the patron
             1613      or others at the patron's table.
             1614          (b) Alcoholic beverages shall be delivered by a server to the patron.
             1615          (c) Any alcoholic beverage may only be consumed at the patron's table or counter.
             1616          (d) Alcoholic beverages may not be served to or consumed by a patron at a bar.
             1617          (e) Each restaurant patron may have no more than two alcoholic beverages of any kind
             1618      at a time before the patron.
             1619          (8) The alcoholic beverage storage area shall remain locked at all times other than
             1620      those hours and days when alcoholic beverage sales are authorized by law.
             1621          (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
             1622      furnished at a limited restaurant during the following days or hours:
             1623          (i) until after the polls are closed on the day of any:
             1624          (A) regular general election;
             1625          (B) regular primary election; or


             1626          (C) statewide special election;
             1627          (ii) until after the polls are closed on the day of any municipal, special district, or
             1628      school election, but only:
             1629          (A) within the boundaries of the municipality, special district, or school district; and
             1630          (B) if required by local ordinance; and
             1631          (iii) on any other day after 12 midnight and before 12 noon.
             1632          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             1633      Licenses, for on-premise beer licensees.
             1634          (10) Alcoholic beverages may not be sold except in connection with an order of food
             1635      prepared, sold, and served at the restaurant.
             1636          (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to any:
             1637          (a) minor;
             1638          (b) person actually, apparently, or obviously intoxicated;
             1639          (c) known habitual drunkard; or
             1640          (d) known interdicted person.
             1641          (12) (a) (i) Wine and heavy beer may be sold only at prices fixed by the commission.
             1642          (ii) Wine and heavy beer may not be sold at discount prices on any date or at any time.
             1643          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverages
             1644      to the licensee.
             1645          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1646      over consumption or intoxication.
             1647          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1648      hours of the limited restaurant's business day such as a "happy hour."
             1649          (e) The sale or service of more than one alcoholic beverage for the price of a single
             1650      alcoholic beverage is prohibited.
             1651          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
             1652      during any set period for a fixed price is prohibited.
             1653          (g) A limited restaurant licensee may not engage in a public promotion involving or


             1654      offering free alcoholic beverages to the general public.
             1655          (13) Alcoholic beverages may not be purchased for a patron of the restaurant by:
             1656          (a) the licensee; or
             1657          (b) any employee or agent of the licensee.
             1658          (14) (a) A person may not bring onto the premises of a limited restaurant licensee any
             1659      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             1660      discretion of the licensee, bottled wine onto the premises of any limited restaurant licensee for
             1661      on-premise consumption.
             1662          (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or its
             1663      officers, managers, employees, or agents may not allow:
             1664          (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
             1665      consumption; or
             1666          (ii) consumption of any alcoholic beverage described in Subsection (14)(b)(i) on its
             1667      premises.
             1668          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             1669      or other representative of the licensee upon entering the restaurant.
             1670          (d) A wine service may be performed and a service charge assessed by the restaurant as
             1671      authorized by commission rule for wine carried in by a patron.
             1672          (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and its
             1673      employees may not permit a restaurant patron to carry from the restaurant premises an open
             1674      container that:
             1675          (i) is used primarily for drinking purposes; and
             1676          (ii) contains any alcoholic beverage.
             1677          (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
             1678      contents of a bottle of wine if before removal the bottle has been recorked or recapped.
             1679          (16) (a) A minor may not be employed by a limited restaurant licensee to sell or
             1680      dispense alcoholic beverages.
             1681          (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be


             1682      employed to enter the sale at a cash register or other sales recording device.
             1683          (17) An employee of a limited restaurant licensee, while on duty, may not:
             1684          (a) consume an alcoholic beverage; or
             1685          (b) be intoxicated.
             1686          (18) A charge or fee made in connection with the sale, service, or consumption of wine
             1687      or heavy beer may be stated in food or alcoholic beverage menus including:
             1688          (a) a service charge; or
             1689          (b) a chilling fee.
             1690          (19) Each limited restaurant licensee shall display in a prominent place in the
             1691      restaurant:
             1692          (a) the license that is issued by the department; and
             1693          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1694      drugs is a serious crime that is prosecuted aggressively in Utah."
             1695          [(20) The following acts or conduct in a restaurant licensed under this part are
             1696      considered contrary to the public welfare and morals, and are prohibited upon the premises:]
             1697          [(a) employing or using any person in the sale or service of alcoholic beverages while
             1698      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             1699      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             1700      buttocks, vulva, or genitals;]
             1701          [(b) employing or using the services of any person to mingle with the patrons while the
             1702      person is unclothed or in attire, costume, or clothing described in Subsection (20)(a);]
             1703          [(c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             1704      buttocks, anus, or genitals of any other person;]
             1705          [(d) permitting any employee or person to wear or use any device or covering, exposed
             1706      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;]
             1707          [(e) permitting any person to use artificial devices or inanimate objects to depict any of
             1708      the prohibited activities described in this Subsection (20);]
             1709          [(f) permitting any person to remain in or upon the premises who exposes to public


             1710      view any portion of that person's genitals or anus; or]
             1711          [(g) showing films, still pictures, electronic reproductions, or other visual
             1712      reproductions depicting:]
             1713          [(i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             1714      copulation, flagellation, or any sexual acts prohibited by Utah law;]
             1715          [(ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             1716      genitals;]
             1717          [(iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             1718      drawings are used to portray, any of the prohibited activities described in this Subsection (20);
             1719      or]
             1720          [(iv) scenes wherein a person displays the vulva, anus, or the genitals.]
             1721          [(21) Nothing in Subsection (20) precludes a local authority from being more
             1722      restrictive of acts or conduct of the type prohibited in Subsection (20).]
             1723          [(22) (a) Although live entertainment is permitted on the premises of a limited
             1724      restaurant licensee, a licensee may not allow any person to perform or simulate sexual acts
             1725      prohibited by Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral
             1726      copulation, flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or
             1727      genitals, or the displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform
             1728      only upon a stage or at a designated area approved by the commission.]
             1729          [(b) Nothing in Subsection (22)(a) precludes a local authority from being more
             1730      restrictive of acts or conduct of the type prohibited in Subsection (22)(a).]
             1731          [(23)] (20) A limited restaurant licensee may not engage in or permit any form of
             1732      gambling, or have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1733      Part 11, Gambling, on the premises of the restaurant.
             1734          [(24)] (21) (a) Each limited restaurant licensee shall maintain an expense ledger or
             1735      record showing in detail:
             1736          (i) quarterly expenditures made separately for:
             1737          (A) wine;


             1738          (B) heavy beer;
             1739          (C) beer;
             1740          (D) food; and
             1741          (E) all other items required by the department; and
             1742          (ii) sales made separately for:
             1743          (A) wine;
             1744          (B) heavy beer;
             1745          (C) beer;
             1746          (D) food; and
             1747          (E) all other items required by the department.
             1748          (b) The record required by Subsection [(24)] (21)(a) shall be kept:
             1749          (i) in a form approved by the department; and
             1750          (ii) current for each three-month period.
             1751          (c) Each expenditure shall be supported by:
             1752          (i) delivery tickets;
             1753          (ii) invoices;
             1754          (iii) receipted bills;
             1755          (iv) canceled checks;
             1756          (v) petty cash vouchers; or
             1757          (vi) other sustaining data or memoranda.
             1758          (d) In addition to the ledger or record maintained under Subsections [(24)] (21)(a)
             1759      through (c), a limited restaurant licensee shall maintain accounting and other records and
             1760      documents as the department may require.
             1761          (e) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,
             1762      alters, cancels, destroys, conceals, or removes the entries in any of the books of account or
             1763      other documents of the restaurant required to be made, maintained, or preserved by this title or
             1764      the rules of the commission for the purpose of deceiving the commission or department, or any
             1765      of their officials or employees, is subject to:


             1766          (i) the suspension or revocation of the limited restaurant's license; and
             1767          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1768          [(25)] (22) (a) A limited restaurant licensee may not close or cease operation for a
             1769      period longer than 240 hours, unless:
             1770          (i) the limited restaurant licensee notifies the department in writing at least seven days
             1771      before the closing; and
             1772          (ii) the closure or cessation of operation is first approved by the department.
             1773          (b) Notwithstanding Subsection [(25)] (22)(a), in the case of emergency closure,
             1774      immediate notice of closure shall be made to the department by telephone.
             1775          (c) (i) Subject to Subsection [(25)] (22)(c)(iii), the department may authorize a closure
             1776      or cessation of operation for a period not to exceed 60 days.
             1777          (ii) The department may extend the initial period an additional 30 days upon:
             1778          (A) written request of the limited restaurant licensee; and
             1779          (B) a showing of good cause.
             1780          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             1781      commission approval.
             1782          (d) Any notice required by Subsection [(25)] (22)(a) shall include:
             1783          (i) the dates of closure or cessation of operation;
             1784          (ii) the reason for the closure or cessation of operation; and
             1785          (iii) the date on which the licensee will reopen or resume operation.
             1786          (e) Failure of the licensee to provide notice and to obtain department authorization
             1787      before closure or cessation of operation shall result in an automatic forfeiture of:
             1788          (i) the license; and
             1789          (ii) the unused portion of the license fee for the remainder of the license year effective
             1790      immediately.
             1791          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             1792      result in an automatic forfeiture of:
             1793          (i) the license; and


             1794          (ii) the unused portion of the license fee for the remainder of the license year.
             1795          [(26)] (23) Each limited restaurant licensee shall maintain at least 70% of its total
             1796      restaurant business from the sale of food, which does not include service charges.
             1797          [(27)] (24) A limited restaurant license may not be transferred from one location to
             1798      another, without prior written approval of the commission.
             1799          [(28)] (25) (a) A limited restaurant licensee may not sell, transfer, assign, exchange,
             1800      barter, give, or attempt in any way to dispose of the license to any other person whether for
             1801      monetary gain or not.
             1802          (b) A limited restaurant license has no monetary value for the purpose of any type of
             1803      disposition.
             1804          [(29)] (26) (a) Each server of wine, heavy beer, and beer in a limited restaurant
             1805      licensee's establishment shall keep a written beverage tab for each table or group that orders or
             1806      consumes alcoholic beverages on the premises.
             1807          (b) The beverage tab required by Subsection [(29)] (26)(a) shall list the type and
             1808      amount of alcoholic beverages ordered or consumed.
             1809          [(30)] (27) A limited restaurant licensee may not make a person's willingness to serve
             1810      alcoholic beverages a condition of employment as a server with the restaurant.
             1811          Section 19. Section 32A-4-401 is amended to read:
             1812           32A-4-401. Commission's power to grant licenses -- Limitations.
             1813          (1) (a) For purposes of this part:
             1814          (i) "Banquet" means an event:
             1815          (A) for which there is a contract:
             1816          (I) between any person and a person listed in Subsection (1)(a)(i)(B); and
             1817          (II) under which a person listed in Subsection (1)(a)(i)(B) is required to provide
             1818      alcoholic beverages at the event;
             1819          (B) held at one or more designated locations approved by the commission in or on the
             1820      premises of a:
             1821          (I) hotel;


             1822          (II) resort facility;
             1823          (III) sports center; or
             1824          (IV) convention center; and
             1825          (C) at which food and alcoholic beverages may be sold and served.
             1826          (ii) "Convention center" is as defined by the commission by rule.
             1827          (iii) "Hotel" is as defined by the commission by rule.
             1828          (iv) "Resort facility" is as defined by the commission by rule.
             1829          (v) "Room service" means service of alcoholic beverages to a guest room of a:
             1830          (A) hotel; or
             1831          (B) resort facility.
             1832          (vi) "Sports center" is as defined by the commission by rule.
             1833          (b) The commission may issue an on-premise banquet license to any of the following
             1834      persons for the purpose of allowing the storage, sale, service, and consumption of alcoholic
             1835      beverages in connection with that person's banquet and room service activities:
             1836          (i) hotel;
             1837          (ii) resort facility;
             1838          (iii) sports center; or
             1839          (iv) convention center.
             1840          (c) This chapter is not intended to prohibit [liquor] alcoholic beverages on the premises
             1841      of a person listed in Subsection (1) to the extent otherwise permitted by this title.
             1842          (2) (a) Subject to this section, the total number of on-premise banquet licenses may not
             1843      at any time aggregate more than that number determined by dividing the population of the state
             1844      by 30,000.
             1845          (b) For purposes of this Subsection (2), the population of the state shall be determined
             1846      by:
             1847          (i) the most recent United States decennial or special census; or
             1848          (ii) any other population determination made by the United States or state
             1849      governments.


             1850          (3) Pursuant to a contract between the host of a banquet and an on-premise banquet
             1851      licensee:
             1852          (a) the host of a contracted banquet may request an on-premise banquet licensee to
             1853      provide alcoholic beverages served at a banquet; and
             1854          (b) an on-premise banquet licensee may provide the alcoholic beverages served at a
             1855      banquet.
             1856          (4) At a banquet, an on-premise banquet licensee may provide:
             1857          (a) a hosted bar; or
             1858          (b) a cash bar.
             1859          (5) Nothing in this section shall prohibit a qualified on-premise banquet license
             1860      applicant from applying for a package agency.
             1861          (6) (a) The premises of an on-premise banquet license may not be established within
             1862      600 feet of any public or private school, church, public library, public playground, or park, as
             1863      measured by the method in Subsection [(7)] (6)(d).
             1864          (b) The premises of an on-premise banquet license may not be established within 200
             1865      feet of any public or private school, church, public library, public playground, or park,
             1866      measured in a straight line from the nearest entrance of the proposed outlet to the nearest
             1867      property boundary of the public or private school, church, public library, public playground, or
             1868      park.
             1869          (c) The restrictions contained in Subsections (6)(a) and (b) govern unless one of the
             1870      following exemptions applies:
             1871          (i) with respect to the establishment of an on-premise banquet license within any
             1872      location, the commission may authorize a variance to reduce the proximity requirements of
             1873      Subsection (6)(a) or (b) if:
             1874          (A) the local [governing] authority [has granted] grants its written consent to the
             1875      variance;
             1876          (B) alternative locations for establishing an on-premise banquet license in the
             1877      community are limited;


             1878          (C) the variance is authorized after a public hearing [has been] is held in the city, town,
             1879      or county, and where practical in the neighborhood concerned; and
             1880          (D) after giving full consideration to all of the attending circumstances and the policies
             1881      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1882      license would not be detrimental to the public health, peace, safety, and welfare of the
             1883      community; or
             1884          (ii) with respect to the premises of any on-premise banquet license issued by the
             1885      commission that undergoes a change of ownership, the commission may waive or vary the
             1886      proximity requirements of Subsections (6)(a) and (b) in considering whether to grant an
             1887      on-premise banquet license to the new owner of the premises if:
             1888          (A) the premises previously received a variance reducing the proximity requirements of
             1889      Subsection (6)(a) or (b); or
             1890          (B) a variance from proximity or distance requirements was otherwise allowed under
             1891      this title.
             1892          [(7)] (d) With respect to any public or private school, church, public library, public
             1893      playground, or park, the 600 foot limitation described in Subsection (6)(a) is measured from
             1894      the nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to
             1895      the property boundary of the public or private school, church, public library, public playground,
             1896      school playground, or park.
             1897          [(8)] (7) (a) Nothing in this section prevents the commission from considering the
             1898      proximity of any educational, religious, and recreational facility, or any other relevant factor in
             1899      reaching a decision on a proposed location.
             1900          (b) For purposes of this Subsection [(8)] (7), "educational facility" includes:
             1901          (i) a nursery school;
             1902          (ii) an infant day care center; and
             1903          (iii) a trade and technical school.
             1904          Section 20. Section 32A-4-402 is amended to read:
             1905           32A-4-402. Application and renewal requirements.


             1906          (1) (a) A person seeking an on-premise banquet license under this part shall file a
             1907      written application with the department, in a form prescribed by the department. The
             1908      application shall be accompanied by:
             1909          (i) a nonrefundable $250 application fee;
             1910          (ii) an initial license fee of $500, which is refundable if a license is not granted;
             1911          (iii) written consent of the local authority;
             1912          (iv) a copy of the applicant's current business license;
             1913          (v) evidence of proximity to any public or private school, church, public library, public
             1914      playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
             1915      [Subsections] Subsection 32A-4-401 (6) [and (7)], the application shall be processed in
             1916      accordance with those subsections;
             1917          (vi) a bond as specified by Section 32A-4-405 ;
             1918          (vii) a description or floor plan and boundary map of the premises, where appropriate,
             1919      of the on-premise banquet license applicant's location, designating:
             1920          (A) the location at which the on-premise banquet license applicant proposes that
             1921      alcoholic beverages be stored; and
             1922          (B) the designated locations on the premises of the applicant from which the
             1923      on-premise banquet license applicant proposes that alcoholic beverages be sold or served, and
             1924      consumed;
             1925          (viii) evidence that the on-premise banquet license applicant is carrying public liability
             1926      insurance in an amount and form satisfactory to the department;
             1927          (ix) evidence that the on-premise banquet license applicant is carrying dramshop
             1928      insurance coverage of at least $500,000 per occurrence and $1,000,000 in the aggregate;
             1929          (x) a signed consent form stating that the on-premise banquet license applicant will
             1930      permit any authorized representative of the commission, department, or any law enforcement
             1931      officer unrestricted right to enter the on-premise banquet premises;
             1932          (xi) in the case of an applicant that is a partnership, corporation, or limited liability
             1933      company, proper verification evidencing that the person or persons signing the on-premise


             1934      banquet license application are authorized to so act on behalf of the partnership, corporation, or
             1935      limited liability company; and
             1936          (xii) any other information the commission or department may require.
             1937          (b) An applicant need not meet the requirements of Subsections (1)(a)(i), (ii), (iii), (iv),
             1938      and (vi) if the applicant is:
             1939          (i) a state agency; or
             1940          (ii) a political subdivision of the state including:
             1941          (A) a county; or
             1942          (B) a municipality.
             1943          (2) Additional locations in or on the premises of an on-premise banquet license
             1944      applicant's business from which the on-premise banquet license applicant may propose that
             1945      alcoholic beverages may be stored, sold or served, or consumed, not included in the applicant's
             1946      original application may be approved by the department upon proper application, in accordance
             1947      with guidelines approved by the commission.
             1948          (3) (a) All on-premise banquet licenses expire on October 31 of each year.
             1949          (b) (i) Except as provided in Subsection (3)(b)(ii), a person desiring to renew that
             1950      person's on-premise banquet license shall submit a renewal fee of $500 and a completed
             1951      renewal application to the department no later than September 30.
             1952          (ii) A licensee is not required to submit the renewal fee if the licensee is:
             1953          (A) a state agency; or
             1954          (B) a political subdivision of the state including:
             1955          (I) a county; or
             1956          (II) a municipality.
             1957          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             1958      the license effective on the date the existing license expires.
             1959          (d) Renewal applications shall be in a form as prescribed by the department.
             1960          (4) To ensure compliance with Subsection 32A-4-406 [(27)] (24), the commission may
             1961      suspend or revoke an on-premise banquet license if the on-premise banquet licensee fails to


             1962      immediately notify the department of any change in:
             1963          (a) ownership of the licensee;
             1964          (b) for a corporate owner, the:
             1965          (i) corporate officers or directors; or
             1966          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             1967      corporation; or
             1968          (c) for a limited liability company:
             1969          (i) managers; or
             1970          (ii) members owning at least 20% of the limited liability company.
             1971          Section 21. Section 32A-4-406 is amended to read:
             1972           32A-4-406. Operational restrictions.
             1973          Each person granted an on-premise banquet license and the employees and management
             1974      personnel of the on-premise banquet licensee shall comply with this title, the rules of the
             1975      commission, and the following conditions and requirements. Failure to comply may result in a
             1976      suspension or revocation of the license or other disciplinary action taken against individual
             1977      employees or management personnel.
             1978          (1) A person involved in the sale or service of alcoholic beverages under the
             1979      on-premise banquet license shall:
             1980          (a) be under the supervision and direction of the on-premise banquet licensee; and
             1981          (b) complete the seminar provided for in Section 62A-15-401 .
             1982          (2) (a) Liquor may not be purchased by the on-premise banquet licensee except from
             1983      state stores or package agencies.
             1984          (b) Liquor purchased in accordance with Subsection (2)(a) may be transported by the
             1985      on-premise banquet licensee from the place of purchase to the licensed premises.
             1986          (c) Payment for liquor shall be made in accordance with rules established by the
             1987      commission.
             1988          (3) Alcoholic beverages may be sold or provided at a banquet subject to the restrictions
             1989      set forth in this Subsection (3).


             1990          (a) An on-premise banquet licensee may sell or provide any primary spirituous liquor
             1991      only in a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             1992      dispensing system approved by the department in accordance with commission rules adopted
             1993      under this title, except that:
             1994          (i) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1995      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1996      restrictions:
             1997          (A) the secondary ingredient may be dispensed only in conjunction with the purchase
             1998      of a primary spirituous liquor;
             1999          (B) the secondary ingredient may not be the only spirituous liquor in the beverage;
             2000          (C) the on-premise banquet licensee shall designate a location where flavorings are
             2001      stored on the floor plan provided to the department; and
             2002          (D) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             2003          (ii) spirituous liquor need not be dispensed through a calibrated metered dispensing
             2004      system if used:
             2005          (A) as a flavoring on desserts; and
             2006          (B) in the preparation of flaming food dishes, drinks, and desserts;
             2007          (iii) each attendee may have no more than 2.75 ounces of spirituous liquor at a time
             2008      before the attendee; and
             2009          (iv) each attendee may have no more than one spirituous liquor drink at a time before
             2010      the attendee.
             2011          (b) (i) (A) Wine may be sold and served by the glass or an individual portion not to
             2012      exceed five ounces per glass or individual portion.
             2013          (B) An individual portion may be served to an attendee in more than one glass as long
             2014      as the total amount of wine does not exceed five ounces.
             2015          (C) An individual portion of wine is considered to be one alcoholic beverage under
             2016      Subsection (5)(c).
             2017          (ii) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed


             2018      by the commission.
             2019          (iii) A wine service may be performed and a service charge assessed by the on-premise
             2020      banquet licensee as authorized by commission rule for wine purchased on the banquet
             2021      premises.
             2022          (c) (i) Heavy beer may be served in original containers not exceeding one liter at prices
             2023      fixed by the commission.
             2024          (ii) A service charge may be assessed by the on-premise banquet licensee as authorized
             2025      by commission rule for heavy beer purchased on the banquet premises.
             2026          (d) (i) Except as provided in Subsection (3)(d)(ii), beer may be sold and served for
             2027      on-premise consumption:
             2028          (A) in an open container; and
             2029          (B) on draft.
             2030          (ii) Beer sold pursuant to Subsection (3)(d)(i) shall be in a size of container that does
             2031      not exceed two liters, except that beer may not be sold to an individual attendee in a container
             2032      size that exceeds one liter.
             2033          (4) Alcoholic beverages may not be stored, served, or sold in any place other than as
             2034      designated in the on-premise banquet licensee's application, except that additional locations in
             2035      or on the premises of an on-premise banquet licensee may be approved in accordance with
             2036      guidelines approved by the commission as provided in Subsection 32A-4-402 (2).
             2037          (5) (a) An attendee may only make alcoholic beverage purchases from and be served by
             2038      a person employed, designated, and trained by the on-premise banquet licensee to sell and
             2039      serve alcoholic beverages.
             2040          (b) Notwithstanding Subsection (5)(a), an attendee who has purchased bottled wine
             2041      from an employee of the on-premise banquet licensee may thereafter serve wine from the bottle
             2042      to the attendee or others at the attendee's table.
             2043          (c) Each attendee may have no more than two alcoholic beverages of any kind at a time
             2044      before the attendee.
             2045          (6) The alcoholic beverage storage area shall remain locked at all times other than


             2046      those hours and days when alcoholic beverage sales are authorized by law.
             2047          (7) (a) Except as provided in Subsection (7)(b), alcoholic beverages may be offered for
             2048      sale, sold, served, or otherwise furnished from 10 a.m. to 1 a.m. seven days a week:
             2049          (i) at a banquet; or
             2050          (ii) in connection with room service.
             2051          (b) Notwithstanding Subsection (7)(a), a sale or service of [alcoholic beverages] liquor
             2052      may not occur at a banquet or in connection with room service until after the polls are closed
             2053      on the day of:
             2054          (i) a regular general election;
             2055          (ii) a regular primary election; or
             2056          (iii) a statewide special election.
             2057          (8) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             2058          (a) minor;
             2059          (b) person actually, apparently, or obviously intoxicated;
             2060          (c) known habitual drunkard; or
             2061          (d) known interdicted person.
             2062          (9) (a) (i) Liquor may be sold only at prices fixed by the commission.
             2063          (ii) Liquor may not be sold at discount prices on any date or at any time.
             2064          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             2065      to the licensee.
             2066          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             2067      over consumption or intoxication.
             2068          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             2069      hours of the on-premise banquet licensee's business day such as a "happy hour."
             2070          (e) The sale or service of more than one alcoholic beverage for the price of a single
             2071      alcoholic beverage is prohibited.
             2072          (f) An on-premise banquet licensee may not engage in a public promotion involving or
             2073      offering free alcoholic beverages to the general public.


             2074          (10) Alcoholic beverages may not be purchased for an attendee by:
             2075          (a) the on-premise banquet licensee; or
             2076          (b) any employee or agent of the on-premise banquet licensee.
             2077          (11) An attendee of a banquet may not bring any alcoholic beverage into or onto, or
             2078      remove any alcoholic beverage from the premises of a banquet.
             2079          (12) (a) Except as otherwise provided in this title, the sale and service of alcoholic
             2080      beverages by an on-premise banquet licensee at a banquet shall be made only for consumption
             2081      at the location of the banquet.
             2082          (b) The host of a banquet, an attendee, or any other person other than the on-premise
             2083      banquet licensee or its employees, may not remove any alcoholic beverage from the premises
             2084      of the banquet.
             2085          (13) An on-premise banquet licensee employee shall remain at the banquet at all times
             2086      when alcoholic beverages are being sold, served, or consumed at the banquet.
             2087          (14) (a) An on-premise banquet licensee may not leave any unsold alcoholic beverages
             2088      at the banquet following the conclusion of the banquet.
             2089          (b) At the conclusion of a banquet, the on-premise banquet licensee or its employees,
             2090      shall:
             2091          (i) destroy any opened and unused alcoholic beverages that are not saleable, under
             2092      conditions established by the department; and
             2093          (ii) return to the on-premise banquet licensee's approved locked storage area any:
             2094          (A) opened and unused alcoholic beverage that is saleable; and
             2095          (B) unopened containers of alcoholic beverages.
             2096          (15) Except as provided in Subsection (14), any open or sealed container of alcoholic
             2097      beverages not sold or consumed at a banquet:
             2098          (a) shall be stored by the on-premise banquet licensee in the licensee's approved locked
             2099      storage area; and
             2100          (b) may be used at more than one banquet.
             2101          (16) An on-premise banquet licensee may not employ a minor to sell, serve, dispense,


             2102      or otherwise furnish alcoholic beverages in connection with the licensee's banquet and room
             2103      service activities.
             2104          (17) An employee of an on-premise banquet licensee, while on duty, may not:
             2105          (a) consume an alcoholic beverage; or
             2106          (b) be intoxicated.
             2107          (18) An on-premise banquet licensee shall prominently display at each banquet at
             2108      which alcoholic beverages are sold or served:
             2109          (a) a copy of the licensee's on-premise banquet license; and
             2110          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             2111      drugs is a serious crime that is prosecuted aggressively in Utah."
             2112          [(19) The following acts or conduct are considered contrary to the public welfare and
             2113      morals, and are prohibited at and during the hours of a banquet:]
             2114          [(a) employing or using any person in the sale or service of alcoholic beverages while
             2115      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             2116      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             2117      buttocks, vulva, or genitals;]
             2118          [(b) employing or using the services of any person to mingle with the patrons while the
             2119      person is unclothed or in attire, costume, or clothing described in Subsection (19)(a);]
             2120          [(c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             2121      buttocks, anus, or genitals of any other person;]
             2122          [(d) permitting any employee or person to wear or use any device or covering, exposed
             2123      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;]
             2124          [(e) permitting any person to use artificial devices or inanimate objects to depict any of
             2125      the prohibited activities described in this Subsection (19);]
             2126          [(f) permitting any person to remain in or upon the premises who exposes to public
             2127      view any portion of that person's genitals or anus; or]
             2128          [(g) showing films, still pictures, electronic reproductions, or other visual
             2129      reproductions depicting:]


             2130          [(i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             2131      copulation, flagellation, or any sexual acts prohibited by Utah law;]
             2132          [(ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             2133      genitals;]
             2134          [(iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             2135      drawings are used to portray, any of the prohibited activities described in this Subsection (19);
             2136      or]
             2137          [(iv) scenes wherein a person displays the vulva, anus, or the genitals.]
             2138          [(20) Nothing in Subsection (19) precludes a local authority from being more
             2139      restrictive of acts or conduct of the type prohibited in Subsection (19).]
             2140          [(21) (a) Although live entertainment is permitted at a banquet, an on-premise banquet
             2141      licensee may not allow any person to perform or simulate sexual acts prohibited by Utah law,
             2142      including sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation, the
             2143      touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the displaying of
             2144      the pubic hair, anus, vulva, or genitals.]
             2145          [(b) Nothing in Subsection (21)(a) precludes a local authority from being more
             2146      restrictive of acts or conduct of the type prohibited in Subsection (21)(a).]
             2147          [(22)] (19) An on-premise banquet licensee may not engage in or permit any form of
             2148      gambling, or have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             2149      Part 11, Gambling, on the premises of the:
             2150          (a) hotel;
             2151          (b) resort facility;
             2152          (c) sports center; or
             2153          (d) convention center.
             2154          [(23)] (20) (a) An on-premise banquet licensee shall maintain accounting and such
             2155      other records and documents as the commission or department may require.
             2156          (b) An on-premise banquet licensee or person acting for the on-premise banquet
             2157      licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the


             2158      entries in any of the books of account or other documents of the on-premise banquet licensee
             2159      required to be made, maintained, or preserved by this title or the rules of the commission for
             2160      the purpose of deceiving the commission or department, or any of their officials or employees,
             2161      is subject to:
             2162          (i) the suspension or revocation of the on-premise banquet license; and
             2163          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2164          [(24)] (21) (a) For the purpose described in Subsection [(24)] (21)(b), an on-premise
             2165      banquet licensee shall provide the department with advance notice of a scheduled banquet in
             2166      accordance with rules made by the commission in accordance with Title 63, Chapter 46a, Utah
             2167      Administrative Rulemaking Act.
             2168          (b) The advance notice required by Subsection [(24)] (21)(a) is required to provide any
             2169      of the following the opportunity to conduct a random inspection of a banquet:
             2170          (i) an authorized representative of the commission or the department; or
             2171          (ii) a law enforcement officer.
             2172          [(25)] (22) An on-premise banquet licensee shall maintain at least 50% of its total
             2173      annual banquet gross receipts from the sale of food, not including:
             2174          (a) mix for alcoholic beverages; and
             2175          (b) charges in connection with the service of alcoholic beverages.
             2176          [(26)] (23) A person may not transfer an on-premise banquet license from one business
             2177      location to another without prior written approval of the commission.
             2178          [(27)] (24) (a) An on-premise banquet licensee may not sell, transfer, assign, exchange,
             2179      barter, give, or attempt in any way to dispose of the license to any other person, whether for
             2180      monetary gain or not.
             2181          (b) An on-premise banquet license has no monetary value for the purpose of any type
             2182      of disposition.
             2183          [(28)] (25) (a) Room service of alcoholic beverages to a guest room of a hotel or resort
             2184      facility shall be provided in person by an on-premise banquet licensee employee only to an
             2185      adult guest in the guest room.


             2186          (b) Alcoholic beverages may not be left outside a guest room for retrieval by a guest.
             2187          (c) An on-premise banquet licensee may only provide alcoholic beverages for room
             2188      service in sealed containers.
             2189          Section 22. Section 32A-5-102 is amended to read:
             2190           32A-5-102. Application and renewal requirements.
             2191          (1) A club seeking a class A, B, C, or D private club license under this chapter shall
             2192      file a written application with the department in a form prescribed by the department. The
             2193      application shall be accompanied by:
             2194          (a) a nonrefundable $250 application fee;
             2195          (b) an initial license fee of $2,500, which is refundable if a license is not granted;
             2196          (c) written consent of the local authority;
             2197          (d) a copy of the applicant's current business license;
             2198          (e) evidence of proximity to any public or private school, church, public library, public
             2199      playground, or park, and if the proximity is within the 600 foot or 200 foot limitations of
             2200      Subsections 32A-5-101 (7) and (8), the application shall be processed in accordance with those
             2201      subsections;
             2202          (f) evidence that the applicant operates a club where a variety of food is prepared and
             2203      served in connection with dining accommodations;
             2204          (g) a bond as specified by Section 32A-5-106 ;
             2205          (h) a floor plan of the club premises, including consumption areas and the area where
             2206      the applicant proposes to keep and store liquor;
             2207          (i) evidence that the club is carrying public liability insurance in an amount and form
             2208      satisfactory to the department;
             2209          (j) evidence that the club is carrying dramshop insurance coverage of at least $500,000
             2210      per occurrence and $1,000,000 in the aggregate;
             2211          (k) a copy of the club's bylaws or house rules, and any amendments to those
             2212      documents, which shall be kept on file with the department at all times;
             2213          (l) a signed consent form stating that the club and its management will permit any


             2214      authorized representative of the commission, department, or any law enforcement officer
             2215      unrestricted right to enter the club premises;
             2216          (m) (i) a statement as to whether the private club is seeking to qualify as a class A, B,
             2217      C, or D private club licensee; and
             2218          (ii) evidence that the private club meets the requirements for the classification for
             2219      which the club is applying;
             2220          (n) in the case of a partnership, corporation, or limited liability company applicant,
             2221      proper verification evidencing that the person or persons signing the private club application
             2222      are authorized to so act on behalf of the partnership, corporation, or limited liability company;
             2223      and
             2224          (o) any other information the commission or department may require.
             2225          (2) (a) The commission may refuse to issue a license if the commission determines that
             2226      any provisions of the club's bylaws or house rules, or amendments to those documents are not:
             2227          (i) reasonable; and
             2228          (ii) consistent with:
             2229          (A) the declared nature and purpose of the applicant; and
             2230          (B) the purposes of this chapter.
             2231          (b) Club bylaws or house rules shall include provisions respecting the following:
             2232          (i) standards of eligibility for members;
             2233          (ii) limitation of members, consistent with the nature and purpose of the private club;
             2234          (iii) the period for which dues are paid, and the date upon which the period expires;
             2235          (iv) provisions for dropping members for the nonpayment of dues or other cause; and
             2236          (v) provisions for guests or visitors, if any, and for the issuance and use of visitor
             2237      cards.
             2238          (3) (a) All private club licenses expire on June 30 of each year.
             2239          (b) A person desiring to renew that person's private club license shall submit by no later
             2240      than May 31:
             2241          (i) a completed renewal application to the department; and


             2242          (ii) a renewal fee in the following amount:
             2243          Gross Cost of Liquor in Previous License Year for the Licensee        Renewal Fee
             2244          under $10,000                                $1,000
             2245          equals or exceeds $10,000 but less than $25,000                $1,250
             2246          equals or exceeds $25,000 but less than $75,000                $1,750
             2247          equals or exceeds $75,000                            $2,250[.]
             2248          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             2249      the license effective on the date the existing license expires.
             2250          (d) Renewal applications shall be in a form as prescribed by the department.
             2251          (4) To ensure compliance with Subsection 32A-5-107 [(44)] (40), the commission may
             2252      suspend or revoke any private club license if the private club licensee does not immediately
             2253      notify the department of any change in:
             2254          (a) ownership of the club;
             2255          (b) for a corporate owner, the:
             2256          (i) corporate officers or directors; or
             2257          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             2258      corporation; or
             2259          (c) for a limited liability company:
             2260          (i) managers; or
             2261          (ii) members owning at least 20% of the limited liability company.
             2262          Section 23. Section 32A-5-107 is amended to read:
             2263           32A-5-107. Operational restrictions.
             2264          Each club granted a private club license and the employees, management personnel, and
             2265      members of the club shall comply with the following conditions and requirements. Failure to
             2266      comply may result in a suspension or revocation of the license or other disciplinary action
             2267      taken against individual employees or management personnel.
             2268          (1) Each private club shall have a governing body that:
             2269          (a) consists of three or more members of the club; and


             2270          (b) holds regular meetings to:
             2271          (i) review membership applications; and
             2272          (ii) conduct any other business as required by the bylaws or house rules of the private
             2273      club.
             2274          (2) (a) Each private club may admit an individual as a member only on written
             2275      application signed by the applicant, subject to:
             2276          (i) the applicant paying an application fee as required by Subsection (4); and
             2277          (ii) investigation, vote, and approval of a quorum of the governing body.
             2278          (b) (i) Admissions shall be recorded in the official minutes of a regular meeting of the
             2279      governing body.
             2280          (ii) An application, whether approved or disapproved, shall be filed as a part of the
             2281      official records of the licensee.
             2282          (c) Notwithstanding Subsection (2)(a), a private club, in its discretion, may admit an
             2283      applicant and immediately accord the applicant temporary privileges of a member until the
             2284      governing body completes its investigation and votes on the application, subject to the
             2285      following conditions:
             2286          (i) the applicant shall:
             2287          (A) submit a written application; and
             2288          (B) pay the application fee required by Subsection (4);
             2289          (ii) the governing body votes on the application at its next meeting which shall take
             2290      place no later than 31 days following the day on which the application was submitted; and
             2291          (iii) the applicant's temporary membership privileges are terminated if the governing
             2292      body disapproves the application.
             2293          (d) The spouse of a member of any class of private club is entitled to all the rights and
             2294      privileges of the member:
             2295          (i) to the extent permitted by the bylaws or house rules of the private club; and
             2296          (ii) except to the extent restricted by this title.
             2297          (e) The minor child of a member of a class A private club is entitled to all the rights


             2298      and privileges of the member:
             2299          (i) to the extent permitted by the bylaws or house rules of the private club; and
             2300          (ii) except to the extent restricted by this title.
             2301          (3) (a) Each private club shall maintain a current and complete membership record
             2302      showing:
             2303          (i) the date of application of each proposed member;
             2304          (ii) each member's address;
             2305          (iii) the date the governing body approved a member's admission;
             2306          (iv) the date initiation fees and dues were assessed and paid; and
             2307          (v) the serial number of the membership card issued to each member.
             2308          (b) A current record shall also be kept indicating when members are dropped or
             2309      resigned.
             2310          (4) (a) Each private club shall establish in the club bylaws or house rules application
             2311      fees and membership dues:
             2312          (i) as established by commission rules; and
             2313          (ii) which are collected from all members.
             2314          (b) An application fee:
             2315          (i) shall not be less than $4;
             2316          (ii) shall be paid when the applicant applies for membership; and
             2317          (iii) at the discretion of the private club, may be credited toward membership dues if
             2318      the governing body approves the applicant as a member.
             2319          (5) (a) Each private club may, in its discretion, allow an individual to be admitted to or
             2320      use the club premises as a guest only under the following conditions:
             2321          (i) each guest must be previously authorized by one of the following who agrees to host
             2322      the guest into the club:
             2323          (A) an active member of the club; or
             2324          (B) a holder of a current visitor card;
             2325          (ii) each guest must be known by the guest's host based on a preexisting bonafide


             2326      business or personal relationship with the host prior to the guest's admittance to the club;
             2327          (iii) each guest must be accompanied by the guest's host for the duration of the guest's
             2328      visit to the club;
             2329          (iv) each guest's host must remain on the club premises for the duration of the guest's
             2330      visit to the club;
             2331          (v) each guest's host is responsible for the cost of all services extended to the guest;
             2332          (vi) each guest enjoys only those privileges derived from the guest's host for the
             2333      duration of the guest's visit to the club;
             2334          (vii) an employee of the club, while on duty, may not act as a host for a guest;
             2335          (viii) an employee of the club, while on duty, may not attempt to locate a member or
             2336      current visitor card holder to serve as a host for a guest with whom the member or visitor card
             2337      holder has no acquaintance based on a preexisting bonafide business or personal relationship
             2338      prior to the guest's arrival at the club; and
             2339          (ix) a club and its employees may not enter into an agreement or arrangement with a
             2340      club member or holder of a current visitor card to indiscriminately host members of the general
             2341      public into the club as guests.
             2342          (b) Notwithstanding Subsection (5)(a), previous authorization is not required if:
             2343          (i) the licensee is a class B private club; and
             2344          (ii) the guest is a member of the same fraternal organization as the private club
             2345      licensee.
             2346          (6) Each private club may, in its discretion, issue visitor cards to allow individuals to
             2347      enter and use the club premises on a temporary basis under the following conditions:
             2348          (a) each visitor card shall be issued for a period not to exceed three weeks;
             2349          (b) a fee of not less than $4 shall be assessed for each visitor card issued;
             2350          (c) a visitor card shall not be issued to a minor;
             2351          (d) a holder of a visitor card may not host more than seven guests at one time;
             2352          (e) each visitor card issued shall include:
             2353          (i) the visitor's full name and signature;


             2354          (ii) the date the card was issued;
             2355          (iii) the date the card expires;
             2356          (iv) the club's name; and
             2357          (v) the serial number of the card; and
             2358          (f) (i) the club shall maintain a current record of the issuance of each visitor card on the
             2359      club premises; and
             2360          (ii) the record described in Subsection (6)(f)(i) shall:
             2361          (A) be available for inspection by the department; and
             2362          (B) include:
             2363          (I) the name of the person to whom the card was issued;
             2364          (II) the date the card was issued;
             2365          (III) the date the card expires; and
             2366          (IV) the serial number of the card.
             2367          (7) A private club may not sell alcoholic beverages to or allow any patron to be
             2368      admitted to or use the club premises other than:
             2369          (a) a member;
             2370          (b) a visitor who holds a valid visitor card issued under Subsection (6); or
             2371          (c) a guest of:
             2372          (i) a member; or
             2373          (ii) a holder of a current visitor card.
             2374          (8) (a) A minor may not be:
             2375          (i) a member, officer, director, or trustee of a private club;
             2376          (ii) issued a visitor card;
             2377          [(iii) admitted into, use, or be on the premises of a class D private club except to the
             2378      extent authorized under Subsections (8)(b) through (g);]
             2379          [(iv)] (iii) admitted into, use, or be on the premises of any lounge or bar area, as
             2380      defined by commission rule, of any private club except to the extent authorized under
             2381      Subsection (8)(c)(ii); [or]


             2382          [(v)] (iv) admitted into, use, or be on the premises of any class D private club [that]:
             2383          [(A) provides sexually oriented adult entertainment as defined by commission rule or
             2384      by local ordinance; or]
             2385          [(B)] (A) that operates as a sexually oriented business as defined [by commission rule
             2386      or] by local ordinance[.]; or
             2387          (B) when a sexually oriented entertainer is performing on the premises; or
             2388          (v) admitted into, use, or be on the premises of a class D private club except to the
             2389      extent authorized under Subsections (8)(b) through (g).
             2390          (b) [At] Except as provided in Subsection (8)(a)(iv), at the discretion of a class D
             2391      private club, a minor may be admitted into, use, or be on the premises of a class D private club
             2392      under the following circumstances:
             2393          (i) during periods when no alcoholic beverages are sold, served, otherwise furnished,
             2394      or consumed on the premises, but in no event later than 1 p.m.;
             2395          (ii) when accompanied at all times by a member or holder of a current visitor card who
             2396      is the minor's parent, legal guardian, or spouse; and
             2397          (iii) the private club has a full kitchen and is licensed by the local jurisdiction as a food
             2398      service provider.
             2399          (c) A minor may be employed by a class D private club on the premises of the club if:
             2400          (i) the parent or legal guardian of the minor owns or operates the class D private club;
             2401      or
             2402          (ii) the minor performs maintenance and cleaning services during the hours when the
             2403      club is not open for business.
             2404          (d) (i) Subject to Subsection (8)(d)(ii), a minor who is at least 18 years of age may be
             2405      admitted into, use, or be on the premises of a dance or concert hall if:
             2406          (A) the dance or concert hall is located:
             2407          (I) on the premises of a class D private club; or
             2408          (II) on the property that immediately adjoins the premises of and is operated by a class
             2409      D private club; and


             2410          (B) the commission has issued the class D private club a permit to operate a minor
             2411      dance or concert hall based on the criteria described in Subsection (8)(d)(iii).
             2412          (ii) If the dance or concert hall is located on the premises of a class D private club, a
             2413      minor must be properly hosted in accordance with Subsection (5) by:
             2414          (A) a member; or
             2415          (B) a holder of a current visitor card.
             2416          (iii) The commission may issue a minor dance or concert hall permit if:
             2417          (A) the club's lounge, bar, and alcoholic beverage consumption area is:
             2418          (I) not accessible to minors;
             2419          (II) clearly defined; and
             2420          (III) separated from the dance or concert hall area by walls, multiple floor levels, or
             2421      other substantial physical barriers;
             2422          (B) any bar or dispensing area is not visible to minors;
             2423          (C) no consumption of alcoholic beverages may occur in:
             2424          (I) the dance or concert hall area; or
             2425          (II) any area of the club accessible to a minor;
             2426          (D) the club maintains sufficient security personnel to prevent the passing of beverages
             2427      from the club's lounge, bar, or alcoholic beverage consumption areas to:
             2428          (I) the dance or concert hall area; or
             2429          (II) any area of the club accessible to a minor;
             2430          (E) there are separate entrances, exits, and restroom facilities from the club's lounge,
             2431      bar, and alcoholic beverage consumption areas than for:
             2432          (I) the dance or concert hall area; or
             2433          (II) any area accessible to a minor; and
             2434          (F) the club complies with any other restrictions imposed by the commission by rule.
             2435          (e) A minor under 18 years of age who is accompanied at all times by a parent or legal
             2436      guardian who is a member or holder of a current visitor card may be admitted into, use, or be
             2437      on the premises of a concert hall described in Subsection (8)(d)(i) if:


             2438          (i) all requirements of Subsection (8)(d) are met; and
             2439          (ii) all signage, product, and dispensing equipment containing recognition of alcoholic
             2440      beverages is not visible to the minor.
             2441          (f) A minor under 18 years of age but who is 14 years of age or older who is not
             2442      accompanied by a parent or legal guardian may be admitted into, use, or be on the premises of
             2443      a concert hall described in Subsection (8)(d)(i) if:
             2444          (i) all requirements of Subsections (8)(d) and (8)(e)(ii) are met; and
             2445          (ii) there is no alcoholic beverage, sales, service, or consumption on the premises of the
             2446      class D private club.
             2447          (g) The commission may suspend or revoke a minor dance or concert permit issued to
             2448      a class D private club and suspend or revoke the license of the class D private club if:
             2449          (i) the club fails to comply with the restrictions in Subsection (8)(d), (e), or (f);
             2450          (ii) the club sells, serves, or otherwise furnishes alcoholic beverages to a minor;
             2451          (iii) the licensee or a supervisory or managerial level employee of the private club is
             2452      convicted under Title 58, Chapter 37, Utah Controlled Substances Act, on the basis of activities
             2453      that occurred on:
             2454          (A) the licensed premises; or
             2455          (B) the dance or concert hall that is located on property that immediately adjoins the
             2456      premises of and is operated by the class D private club;
             2457          (iv) there are three or more convictions of patrons of the private club under Title 58,
             2458      Chapter 37, Utah Controlled Substances Act, based on activities that occurred on:
             2459          (A) the licensed premises; or
             2460          (B) the dance or concert hall that is located on property that immediately adjoins the
             2461      premises of and is operated by the class D private club;
             2462          (v) there is more than one conviction:
             2463          (A) of:
             2464          (I) the licensee;
             2465          (II) an employee of the licensee;


             2466          (III) an entertainer contracted by the licensee; or
             2467          (IV) a patron of the private club; and
             2468          (B) made on the basis of lewd acts or lewd entertainment prohibited by this title that
             2469      occurred on:
             2470          (I) the licensed premises; or
             2471          (II) the dance or concert hall that is located on property that immediately adjoins the
             2472      premises of and is operated by the class D private club; or
             2473          (vi) the commission finds acts or conduct contrary to the public welfare and morals
             2474      involving lewd acts or lewd entertainment prohibited by this title that occurred on:
             2475          (A) the licensed premises; or
             2476          (B) the dance or concert hall that is located on property that immediately adjoins the
             2477      premises of and is operated by the class D private club.
             2478          (h) Nothing in this Subsection (8) shall prohibit a class D private club from selling,
             2479      serving, or otherwise furnishing alcoholic beverages in a dance or concert area located on the
             2480      club premises on days and times when the club does not allow minors into those areas.
             2481          (i) Nothing in Subsections (8)(a) through (g) precludes a local authority from being
             2482      more restrictive of a minor's admittance to, use of, or presence on the premises of any private
             2483      club.
             2484          [(9) An employee of a club, while on duty, may not:]
             2485          [(a) consume an alcoholic beverage;]
             2486          [(b) be intoxicated; or]
             2487          [(c) act as a host for a guest.]
             2488          [(10)] (9) (a) Each private club shall maintain an expense ledger or record showing in
             2489      detail all expenditures separated by payments for:
             2490          (i) malt or brewed beverages;
             2491          (ii) liquor;
             2492          (iii) food;
             2493          (iv) detailed payroll;


             2494          (v) entertainment;
             2495          (vi) rent;
             2496          (vii) utilities;
             2497          (viii) supplies; and
             2498          (ix) all other expenditures.
             2499          (b) The record required by this Subsection [(10)] (9) shall be:
             2500          (i) kept in a form approved by the department; and
             2501          (ii) balanced each month.
             2502          (c) Each expenditure shall be supported by:
             2503          (i) delivery tickets;
             2504          (ii) invoices;
             2505          (iii) receipted bills;
             2506          (iv) canceled checks;
             2507          (v) petty cash vouchers; or
             2508          (vi) other sustaining data or memoranda.
             2509          (d) All invoices and receipted bills for the current calendar or fiscal year documenting
             2510      purchases made by the club shall also be maintained.
             2511          [(11)] (10) (a) Each private club shall maintain a minute book that is posted currently
             2512      by the club.
             2513          (b) The minute book required by this Subsection [(11)] (10) shall contain the minutes
             2514      of all regular and special meetings of the governing body.
             2515          (c) Membership lists shall also be maintained.
             2516          [(12)] (11) (a) Each private club shall maintain current copies of the club's current
             2517      bylaws and current house rules.
             2518          (b) Changes in the bylaws or house rules:
             2519          (i) are not effective unless submitted to the department within ten days after adoption;
             2520      and
             2521          (ii) become effective 15 days after received by the department unless rejected by the


             2522      department before the expiration of the 15-day period.
             2523          [(13)] (12) Each private club shall maintain accounting and other records and
             2524      documents as the department may require.
             2525          [(14)] (13) Any club or person acting for the club, who knowingly forges, falsifies,
             2526      alters, cancels, destroys, conceals, or removes the entries in any of the books of account or
             2527      other documents of the club required to be made, maintained, or preserved by this title or the
             2528      rules of the commission for the purpose of deceiving the commission or the department, or any
             2529      of their officials or employees, is subject to:
             2530          (a) the suspension or revocation of the club's license; and
             2531          (b) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2532          [(15)] (14) (a) Each private club shall maintain and keep all the records required by this
             2533      section and all other books, records, receipts, and disbursements maintained or used by the
             2534      licensee, as the department requires, for a minimum period of three years.
             2535          (b) All records, books, receipts, and disbursements are subject to inspection by
             2536      authorized representatives of the commission and the department.
             2537          (c) The club shall allow the department, through its auditors or examiners, to audit all
             2538      records of the club at times the department considers advisable.
             2539          (d) The department shall audit the records of the licensee at least once annually.
             2540          [(16)] (15) Each private club shall own or lease premises suitable for the club's
             2541      activities.
             2542          [(17)] (16) (a) A private club may not maintain facilities in any manner that barricades
             2543      or conceals the club operation.
             2544          (b) Any member of the commission, authorized department personnel, or any peace
             2545      officer shall, upon presentation of credentials, be admitted immediately to the club and
             2546      permitted without hindrance or delay to inspect completely the entire club premises and all
             2547      books and records of the licensee, at any time during which the same are open for the
             2548      transaction of business to its members.
             2549          [(18)] (17) Any public advertising related to a private club by the following shall


             2550      clearly identify a club as being "a private club for members":
             2551          (a) the private club;
             2552          (b) the employees or agents of the private club; or
             2553          (c) any person under a contract or agreement with the club.
             2554          [(19)] (18) A private club must have food available at all times when alcoholic
             2555      beverages are sold, served, or consumed on the premises.
             2556          [(20)] (19) (a) Liquor may not be purchased by a private club licensee except from
             2557      state stores or package agencies.
             2558          (b) Liquor purchased in accordance with Subsection [(20)] (19)(a) may be transported
             2559      by the licensee from the place of purchase to the licensed premises.
             2560          (c) Payment for liquor shall be made in accordance with rules established by the
             2561      commission.
             2562          [(21)] (20) A private club licensee may sell or provide any primary spirituous liquor
             2563      only in a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             2564      dispensing system approved by the department in accordance with commission rules adopted
             2565      under this title, except that:
             2566          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             2567      system if used as a secondary flavoring ingredient in a beverage subject to the following
             2568      restrictions:
             2569          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             2570      a primary spirituous liquor;
             2571          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             2572          (iii) the private club licensee shall designate a location where flavorings are stored on
             2573      the floor plan provided to the department; and
             2574          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             2575          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             2576      system if used:
             2577          (i) as a flavoring on desserts; and


             2578          (ii) in the preparation of flaming food dishes, drinks, and desserts; and
             2579          (c) each club patron may have no more than 2.75 ounces of spirituous liquor at a time
             2580      before the patron.
             2581          [(22)] (21) (a) (i) Wine may be sold and served by the glass or an individual portion
             2582      not to exceed five ounces per glass or individual portion.
             2583          (ii) An individual portion may be served to a patron in more than one glass as long as
             2584      the total amount of wine does not exceed five ounces.
             2585          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             2586      Subsection [(26)] (25)(c).
             2587          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             2588      fixed by the commission to tables of four or more persons.
             2589          (ii) Wine may be sold and served in containers not exceeding 750 [ml] milliliters at
             2590      prices fixed by the commission to tables of less than four persons.
             2591          (c) A wine service may be performed and a service charge assessed by the private club
             2592      as authorized by commission rule for wine purchased at the private club.
             2593          [(23)] (22) (a) Heavy beer may be served in original containers not exceeding one liter
             2594      at prices fixed by the commission.
             2595          (b) A service charge may be assessed by the private club for heavy beer purchased at
             2596      the private club.
             2597          [(24)] (23) (a) (i) Subject to Subsection [(24)] (23)(a)(ii), a private club licensed to sell
             2598      liquor may sell beer for on-premise consumption:
             2599          (A) in an open container; and
             2600          (B) on draft.
             2601          (ii) Beer sold pursuant to Subsection [(24)] (23)(a)(i) shall be in a size of container that
             2602      does not exceed two liters, except that beer may not be sold to an individual patron in a size of
             2603      container that exceeds one liter.
             2604          (b) (i) A private club licensed under this chapter that sells beer pursuant to Subsection
             2605      [(24)] (23)(a):


             2606          (A) may do so without obtaining a separate on-premise beer retailer license from the
             2607      commission; and
             2608          (B) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             2609      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             2610      inconsistent with or less restrictive than the operational restrictions under this chapter.
             2611          (ii) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             2612      Licenses, required by Subsection [(24)] (23)(b)(i) may result in a suspension or revocation of
             2613      the private club's:
             2614          (A) state liquor license; and
             2615          (B) alcoholic beverage license issued by the local authority.
             2616          [(25)] (24) Alcoholic beverages may not be stored, served, or sold in any place other
             2617      than as designated in the licensee's application, unless the licensee first applies for and receives
             2618      approval from the department for a change of location within the private club.
             2619          [(26)] (25) (a) A patron may only make alcoholic beverage purchases in the private
             2620      club from and be served by a person employed, designated, and trained by the licensee to sell,
             2621      dispense, and serve alcoholic beverages.
             2622          (b) Notwithstanding Subsection [(26)] (25)(a), a patron who has purchased bottled
             2623      wine from an employee of the private club or has carried bottled wine onto the premises of the
             2624      private club pursuant to Subsection [(32)] (31) may thereafter serve wine from the bottle to the
             2625      patron or others at the patron's table.
             2626          (c) Each club patron may have no more than two alcoholic beverages of any kind at a
             2627      time before the patron.
             2628          [(27)] (26) The liquor storage area shall remain locked at all times other than those
             2629      hours and days when liquor sales and service are authorized by law.
             2630          [(28)] (27) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished
             2631      at a private club during the following days or hours:
             2632          (i) until after the polls are closed on the day of any:
             2633          (A) regular general election;


             2634          (B) regular primary election; or
             2635          (C) statewide special election;
             2636          (ii) until after the polls are closed on the day of any municipal, special district, or
             2637      school election, but only:
             2638          (A) within the boundaries of the municipality, special district, or school district; and
             2639          (B) if required by local ordinance; and
             2640          (iii) on any other day after 1 a.m. and before 10 a.m.
             2641          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             2642      Licenses, for on-premise beer licenses.
             2643          (c) (i) Notwithstanding Subsections [(28)] (27)(a) and (b), a private club shall remain
             2644      open for one hour after the private club ceases the sale and service of alcoholic beverages
             2645      during which time a patron of the club may finish consuming:
             2646          (A) any single drink containing spirituous liquor;
             2647          (B) a single serving of wine not exceeding five ounces;
             2648          (C) a single serving of heavy beer; or
             2649          (D) a single serving of beer not exceeding 26 ounces.
             2650          (ii) A club is not required to remain open:
             2651          (A) after all patrons have vacated the premises; or
             2652          (B) during an emergency.
             2653          (d) Between the hours of 2 a.m. and 10 a.m. on any day a private club may not allow a
             2654      patron to remain on the premises to consume alcoholic beverages on the premises.
             2655          [(29)] (28) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             2656          (a) minor;
             2657          (b) person actually, apparently, or obviously intoxicated;
             2658          (c) known habitual drunkard; or
             2659          (d) known interdicted person.
             2660          [(30)] (29) (a) (i) Liquor may be sold only at prices fixed by the commission.
             2661          (ii) Liquor may not be sold at discount prices on any date or at any time.


             2662          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             2663      to the licensee.
             2664          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             2665      over consumption or intoxication.
             2666          (d) The price of a single serving of a primary spirituous liquor shall be the same
             2667      whether served as a single drink or in conjunction with another alcoholic beverage.
             2668          (e) An alcoholic beverage may not be sold at a special or reduced price for only certain
             2669      hours of the private club's business day such as a "happy hour."
             2670          (f) The sale or service of more than one alcoholic beverage for the price of a single
             2671      alcoholic beverage is prohibited.
             2672          (g) The sale or service of an indefinite or unlimited number of alcoholic beverages
             2673      during any set period for a fixed price is prohibited.
             2674          (h) A private club licensee may not engage in a promotion involving or offering free
             2675      alcoholic beverages to patrons of the club.
             2676          [(31)] (30) Alcoholic beverages may not be purchased for a patron of the private club
             2677      by:
             2678          (a) the licensee; or
             2679          (b) any employee or agent of the licensee.
             2680          [(32)] (31) (a) A person may not bring onto the premises of a private club licensee any
             2681      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             2682      discretion of the licensee, bottled wine onto the premises of any private club licensee for
             2683      on-premise consumption.
             2684          (b) Except bottled wine under Subsection [(32)] (31)(a), a private club or its officers,
             2685      managers, employees, or agents may not allow:
             2686          (i) a person to bring onto the private club premises any alcoholic beverage for
             2687      consumption on the private club premises; or
             2688          (ii) consumption of alcoholic beverages described in Subsection [(32)] (31)(b)(i) on the
             2689      premises of the private club.


             2690          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             2691      or other representative of the licensee upon entering the private club.
             2692          (d) A wine service may be performed and a service charge assessed by the private club
             2693      as authorized by commission rule for wine carried in by a patron.
             2694          [(33)] (32) (a) Except as provided in Subsection [(33)] (32)(b), a private club and its
             2695      employees may not permit a patron of the club to carry from the club premises an open
             2696      container that:
             2697          (i) is used primarily for drinking purposes; and
             2698          (ii) contains any alcoholic beverage.
             2699          (b) A patron may remove the unconsumed contents of a bottle of wine if before
             2700      removal the bottle has been recorked or recapped.
             2701          [(34)] (33) (a) A minor may not be employed by any class A, B, or C private club to
             2702      sell, dispense, or handle any alcoholic beverage.
             2703          (b) Notwithstanding Subsection [(34)] (33)(a), a minor who is at least 16 years of age
             2704      may be employed by a class A or C private club to enter the sale at a cash register or other sales
             2705      recording device.
             2706          (c) Except to the extent authorized in Subsection (8)(c), a minor may not be employed
             2707      by or be on the premises of any class D private club.
             2708          (d) A minor may not be employed to work in any lounge or bar area of any class A, B,
             2709      or C private club.
             2710          [(35)] (34) An employee of a private club, while on duty, may not:
             2711          (a) consume an alcoholic beverage; or
             2712          (b) be intoxicated.
             2713          [(36)] (35) (a) A private club may not charge for the service or supply of glasses, ice,
             2714      or mixers unless:
             2715          (i) the charges are fixed in the house rules of the club; and
             2716          (ii) a copy of the house rules is kept on the club premises and available at all times for
             2717      examination by patrons of the club.


             2718          (b) A charge or fee made in connection with the sale, service, or consumption of liquor
             2719      may be stated in food or alcoholic beverage menus including:
             2720          (i) a set-up charge;
             2721          (ii) a service charge; or
             2722          (iii) a chilling fee.
             2723          [(37)] (36) Each private club licensee shall display in a prominent place in the private
             2724      club:
             2725          (a) the private club license that is issued by the department;
             2726          (b) a list of the types and brand names of liquor being served through its calibrated
             2727      metered dispensing system; and
             2728          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             2729      drugs is a serious crime that is prosecuted aggressively in Utah."
             2730          [(38) The following acts or conduct in a private club licensed under this chapter are
             2731      considered contrary to the public welfare and morals, and are prohibited upon the premises:]
             2732          [(a) employing or using any person in the sale or service of alcoholic beverages while
             2733      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             2734      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             2735      buttocks, vulva, or genitals;]
             2736          [(b) employing or using the services of any person to mingle with the patrons while the
             2737      person is unclothed or in attire, costume, or clothing described in Subsection (38)(a);]
             2738          [(c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             2739      buttocks, anus, or genitals of any other person;]
             2740          [(d) permitting any employee or person to wear or use any device or covering, exposed
             2741      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;]
             2742          [(e) permitting any person to use artificial devices or inanimate objects to depict any of
             2743      the prohibited activities described in this Subsection (38);]
             2744          [(f) permitting any person to remain in or upon the premises who exposes to public
             2745      view any portion of his or her genitals or anus; or]


             2746          [(g) showing films, still pictures, electronic reproductions, or other visual
             2747      reproductions depicting:]
             2748          [(i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             2749      copulation, flagellation, or any sexual acts prohibited by Utah law;]
             2750          [(ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             2751      genitals;]
             2752          [(iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             2753      drawings are used to portray, any of the prohibited activities described in this Subsection (38);
             2754      or]
             2755          [(iv) scenes wherein a person displays the vulva or the anus or the genitals.]
             2756          [(39) Nothing in Subsection (38) precludes a local authority from being more
             2757      restrictive of acts or conduct of the type prohibited in Subsection (38).]
             2758          [(40) (a) Although live entertainment is permitted on the premises of a club liquor
             2759      licensee, a licensee may not allow any person to perform or simulate sexual acts prohibited by
             2760      Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral copulation,
             2761      flagellation, or the touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or
             2762      the displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon
             2763      a stage or at a designated area approved by the commission.]
             2764          [(b) Nothing in Subsection (40)(a) precludes a local authority from being more
             2765      restrictive of acts or conduct of the type prohibited in Subsection (40)(a).]
             2766          [(41)] (37) A private club may not engage in or permit any form of gambling, or have
             2767      any video gaming device, as defined and proscribed in Title 76, Chapter 10, Part 11, Gambling,
             2768      on the premises of the private club.
             2769          [(42)] (38) (a) A private club may not close or cease operation for a period longer than
             2770      240 hours, unless:
             2771          (i) the private club licensee notifies the department in writing at least seven days before
             2772      the closing; and
             2773          (ii) the closure or cessation of operation is first approved by the department.


             2774          (b) Notwithstanding Subsection [(42)] (38)(a), in the case of emergency closure,
             2775      immediate notice of closure shall be made to the department by telephone.
             2776          (c) The department may authorize a closure or cessation of operation for a period not to
             2777      exceed 60 days. The department may extend the initial period an additional 30 days upon
             2778      written request of the private club and upon a showing of good cause. A closure or cessation of
             2779      operation may not exceed a total of 90 days without commission approval.
             2780          (d) The notice required by Subsection [(42)] (38)(a) shall include:
             2781          (i) the dates of closure or cessation of operation;
             2782          (ii) the reason for the closure or cessation of operation; and
             2783          (iii) the date on which the licensee will reopen or resume operation.
             2784          (e) Failure of the licensee to provide notice and to obtain department authorization
             2785      prior to closure or cessation of operation shall result in an automatic forfeiture of:
             2786          (i) the license; and
             2787          (ii) the unused portion of the license fee for the remainder of the license year effective
             2788      immediately.
             2789          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             2790      result in an automatic forfeiture of:
             2791          (i) the license; and
             2792          (ii) the unused portion of the club's license fee for the remainder of the license year.
             2793          [(43)] (39) A private club license may not be transferred from one location to another,
             2794      without prior written approval of the commission.
             2795          [(44)] (40) (a) A private club licensee, may not sell, transfer, assign, exchange, barter,
             2796      give, or attempt in any way to dispose of the license to any other person, whether for monetary
             2797      gain or not.
             2798          (b) A private club license has no monetary value for the purpose of any type of
             2799      disposition.
             2800          Section 24. Section 32A-6-301 is amended to read:
             2801           32A-6-301. Application requirements.


             2802          (1) Each application for an industrial or manufacturing use permit shall, in addition to
             2803      the requirements of Section 32A-6-102 , include:
             2804          (a) a nonrefundable $50 application fee;
             2805          (b) a $200 one-time special use permit fee;
             2806          (c) a cash or corporate surety bond in the penal sum of $1,000 payable to the
             2807      department, which the permittee has procured and must maintain for so long as the permittee
             2808      continues to operate as a special use permittee;
             2809          (d) written consent of the local authority; and
             2810          (e) a floor plan of the immediate area within the premises in which the applicant
             2811      proposes that alcoholic products be stored, used, mixed, sold, or consumed.
             2812          (2) (a) The bond required under Subsection (1) shall be:
             2813          (i) in a form approved by the attorney general; and
             2814          (ii) conditioned upon the permittee's faithful compliance with this title and the rules of
             2815      the commission.
             2816          (b) If the surety bond is cancelled due to the permittee's negligence, a $300
             2817      reinstatement fee may be assessed.
             2818          (c) No part of any cash or corporate bond [so] posted under this section may be
             2819      withdrawn during the period the permit is in effect.
             2820          (d) A bond filed by a permittee may be forfeited if the permit is finally revoked.
             2821          (3) Any person desiring a special use permit to produce gasohol or any alcoholic
             2822      product shall provide evidence to the department that an approved Notice of Registration of
             2823      Distilled Spirits Plant and the appropriate permit from the Federal Alcohol and Tobacco Tax
             2824      and Trade Bureau [of Alcohol, Tobacco and Firearms] has been obtained by the person.
             2825          Section 25. Section 32A-6-302 is amended to read:
             2826           32A-6-302. Operational restrictions.
             2827          [A permittee may not denature alcohol for the purpose of experimentation, testing, or
             2828      fuel use, except and unless done] In addition to the restrictions, conditions, and requirements of
             2829      Section 32A-6-105 , each industrial or manufacturing use permit is subject to the following


             2830      operating restrictions:
             2831          (1) An industrial or manufacturer permittee may produce for lawful use and sale the
             2832      following:
             2833          (a) vinegar;
             2834          (b) preserved nonintoxicating cider;
             2835          (c) food preparations;
             2836          (d) a United States Pharmacopoeia or national formulary preparation in conformity
             2837      with Title 58, Chapters 17b, 37, 37a, 37b, and 37c, if the preparation:
             2838          (i) conforms to standards established by:
             2839          (A) the Department of Agriculture and Food; and
             2840          (B) the Department of Health; and
             2841          (ii) contains no more alcohol than is necessary to preserve or extract the medicinal,
             2842      flavoring, or perfumed properties of the treated substances; and
             2843          (e) wood and denatured alcohol if manufactured in compliance with the formulas and
             2844      regulations under Title 27, Code of Federal Regulations, [Sections 212.10 through 212.38]
             2845      Parts 19, 20, and 21.
             2846          (2) (a) An industrial or manufacturer permittee that produces patent or proprietary
             2847      medicines containing alcohol may sell the medicines in the original and unbroken package if
             2848      the medicine contains sufficient medication to prevent its use as an alcoholic beverage.
             2849          (b) An industrial or manufacturer permittee described in this Subsection (2) shall, upon
             2850      request by the department, provide a sufficient sample of the medicine to enable the department
             2851      to have the medicine analyzed for purposes of this section.
             2852          Section 26. Section 32A-7-106 is amended to read:
             2853           32A-7-106. Operational restrictions.
             2854          (1) (a) Any organization granted a single event permit and any person involved in the
             2855      storage, sale, or service of alcoholic beverages at the event for which the permit is issued, shall
             2856      abide by:
             2857          (i) this title;


             2858          (ii) the rules of the commission; and
             2859          (iii) the special conditions and requirements provided in this section.
             2860          (b) Failure to comply with Subsection (1)(a):
             2861          (i) may result in:
             2862          (A) an immediate revocation of the permit;
             2863          (B) forfeiture of the surety bond; and
             2864          (C) immediate seizure of all alcoholic beverages present at the event; and
             2865          (ii) disqualifies the organization from applying for a single event permit under this
             2866      chapter, or a temporary special event beer permit under Chapter 10, Part 3, Temporary Special
             2867      Event Beer Permits, for a period of three years from the date of revocation of the permit.
             2868          (c) Any alcoholic beverages seized under this Subsection (1) shall be returned to the
             2869      organization after the event if forfeiture proceedings are not instituted under Section
             2870      32A-13-103 .
             2871          (2) Special conditions and requirements for single event permittees include the
             2872      following:
             2873          (a) (i) All persons involved in the storage, sale, or service of alcoholic beverages at the
             2874      event do so under the supervision and direction of the permittee.
             2875          (ii) All persons involved in the sale or service of alcoholic beverages at the event may
             2876      not, while on duty:
             2877          (A) consume an alcoholic beverage; or
             2878          (B) be intoxicated.
             2879          (b) (i) All liquor stored, sold, served, and consumed at the event shall be purchased by
             2880      the permittee from a state store or package agency.
             2881          (ii) All beer purchased by the permittee shall be purchased from:
             2882          (A) a licensed beer wholesaler; or
             2883          (B) a licensed beer retailer.
             2884          (iii) All alcoholic beverages are considered under the control of the permittee during
             2885      the event.


             2886          (iv) Attendees of the event may not bring any alcoholic beverages onto the premises of
             2887      the event.
             2888          (c) A permittee may not charge more than the maximum amount set forth in the permit
             2889      for any alcoholic beverage.
             2890          (d) Each permittee shall post in a prominent place in the area in which alcoholic
             2891      beverages are being sold, served, and consumed, a copy of the permit, together with a list of the
             2892      operational restrictions and requirements of single event permittees set forth in this section.
             2893          (e) Alcoholic beverages purchased for the event may not be stored, sold, served, or
             2894      consumed in any location other than that described in the application and designated on the
             2895      permit unless the permittee first applies for and receives approval from the commission for a
             2896      change of location.
             2897          (f) (i) A single event permittee may sell or provide a primary spirituous liquor only in a
             2898      quantity not to exceed one ounce per beverage except that additional spirituous liquor may be
             2899      used in a beverage if:
             2900          (A) used as a secondary flavoring ingredient;
             2901          (B) used in conjunction with the primary spirituous liquor;
             2902          (C) the secondary ingredient is not the only spirituous liquor in the beverage; and
             2903          (D) each attendee may have no more than 2.75 ounces of spirituous liquor at a time
             2904      before the attendee.
             2905          (ii) Spirituous liquor need not be dispensed through a calibrated metered dispensing
             2906      system.
             2907          (g) (i) (A) Wine may be sold and served by the glass or an individual portion that does
             2908      not exceed five ounces per glass or individual portion.
             2909          (B) An individual portion may be served to an attendee in more than one glass as long
             2910      as the total amount of wine does not exceed five ounces.
             2911          (C) An individual portion of wine is considered to be one alcoholic beverage under
             2912      Subsection (2)(p).
             2913          (ii) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed


             2914      by the commission.
             2915          (iii) A wine service may be performed and a service charge assessed by the single event
             2916      permittee as authorized by commission rule for wine purchased at the event.
             2917          (h) (i) Heavy beer may be served in original containers not exceeding one liter at prices
             2918      fixed by the commission.
             2919          (ii) A service charge may be assessed by the single event permittee as authorized by
             2920      commission rule for heavy beer purchased at the event.
             2921          (i) (i) Subject to Subsection (2)(i)(ii), beer may be sold for on-premise consumption:
             2922          (A) in an open container; and
             2923          (B) on draft.
             2924          (ii) Beer sold pursuant to Subsection (2)(i)(i) shall be in a size of container that does
             2925      not exceed two liters, except that beer may not be sold to an individual attendee in a size of
             2926      container that exceeds one liter.
             2927          (j) (i) Alcoholic beverages may not be sold, served, or consumed between the hours of
             2928      1 a.m. and 10 a.m.
             2929          (ii) This Subsection (2)(j) does not preclude a local authority from being more
             2930      restrictive with respect to the hours of sale, service, or consumption of alcoholic beverages at a
             2931      temporary single event.
             2932          (k) Alcoholic beverages may not be sold, served, or otherwise furnished until after the
             2933      polls are closed on the day of any:
             2934          (i) regular general election;
             2935          (ii) regular primary election; or
             2936          (iii) statewide special election.
             2937          (l) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             2938          (i) minor;
             2939          (ii) person actually, apparently, or obviously intoxicated;
             2940          (iii) known habitual drunkard; or
             2941          (iv) known interdicted person.


             2942          (m) (i) (A) Liquor may be sold only at prices fixed by the commission.
             2943          (B) Liquor may not be sold at discount prices on any date or at any time.
             2944          (ii) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             2945      to the permittee.
             2946          (iii) An alcoholic beverage may not be sold at a price that encourages over
             2947      consumption or intoxication.
             2948          (iv) An alcoholic beverage may not be sold at a special or reduced price for only
             2949      certain hours of the day of the permitted event.
             2950          (v) The sale or service of more than one alcoholic beverage for the price of a single
             2951      alcoholic beverage is prohibited.
             2952          (vi) The permittee may not engage in a public promotion involving or offering free
             2953      alcoholic beverages to the general public.
             2954          (n) A single event permittee and its employees may not permit an attendee to carry
             2955      from the premises an open container that:
             2956          (i) is used primarily for drinking purposes; and
             2957          (ii) contains any alcoholic beverage.
             2958          (o) A minor may not sell, serve, dispense, or handle any alcoholic beverage at the
             2959      event.
             2960          (p) Each attendee may have no more than one alcoholic beverage of any kind at a time
             2961      before the patron.
             2962          [(3) The following acts or conduct at an event for which a permit is issued under this
             2963      chapter are considered contrary to the public welfare and morals, and are prohibited upon the
             2964      premises:]
             2965          [(a) employing or using any person in the sale or service of alcoholic beverages while
             2966      the person is unclothed or in attire, costume, or clothing that exposes to view any portion of the
             2967      female breast below the top of the areola or any portion of the pubic hair, anus, cleft of the
             2968      buttocks, vulva, or genitals;]
             2969          [(b) employing or using the services of any person to mingle with the patrons while the


             2970      person is unclothed or in attire, costume, or clothing described in Subsection (3)(a);]
             2971          [(c) encouraging or permitting any person to touch, caress, or fondle the breasts,
             2972      buttocks, anus, or genitals of any other person;]
             2973          [(d) permitting any employee or person to wear or use any device or covering, exposed
             2974      to view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;]
             2975          [(e) permitting any person to use artificial devices or inanimate objects to depict any of
             2976      the prohibited activities described in this Subsection (3);]
             2977          [(f) permitting any person to remain in or upon the premises who exposes to public
             2978      view any portion of his or her genitals or anus;]
             2979          [(g) showing films, still pictures, electronic reproductions, or other visual
             2980      reproductions depicting:]
             2981          [(i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
             2982      copulation, flagellation, or any sexual acts prohibited by Utah law;]
             2983          [(ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or
             2984      genitals;]
             2985          [(iii) scenes wherein artificial devices or inanimate objects are used to depict, or
             2986      drawings are used to portray, any of the prohibited activities described in this Subsection (3);
             2987      or]
             2988          [(iv) scenes wherein a person displays the vulva or the anus or the genitals.]
             2989          [(4) Nothing in Subsection (3) precludes a local authority from being more restrictive
             2990      of acts or conduct of the type prohibited in Subsection (3).]
             2991          [(5) (a) Although live entertainment is permitted at the event for which a permit has
             2992      been issued under this chapter, a permittee may not allow any person to perform or simulate
             2993      sexual acts prohibited by Utah law, including sexual intercourse, masturbation, sodomy,
             2994      bestiality, oral copulation, flagellation, the touching, caressing, or fondling of the breast,
             2995      buttocks, anus, or genitals, or the displaying of the pubic hair, anus, vulva, or genitals.
             2996      Entertainers shall perform only upon a stage or at a designated area approved by the
             2997      commission.]


             2998          [(b) Nothing in Subsection (5)(a) precludes a local authority from being more
             2999      restrictive of acts or conduct of the type prohibited in Subsection (5)(a).]
             3000          [(6)] (3) The permittee shall maintain an expense and revenue ledger or record
             3001      showing:
             3002          (a) expenditures made for liquor and beer, set-ups, and other ingredients and
             3003      components of alcoholic beverages; and
             3004          (b) the revenue from sale of alcoholic beverages.
             3005          [(7)] (4) A single event permit may not be transferred.
             3006          [(8)] (5) A single event permittee may not engage in or allow any form of gambling, or
             3007      have any video gaming device as defined and proscribed by Title 76, Chapter 10, Part 11,
             3008      Gambling, on the premises serviced by the single event permittee.
             3009          Section 27. Section 32A-8-102 is amended to read:
             3010           32A-8-102. Application and renewal requirements.
             3011          (1) Each person seeking an alcoholic beverage manufacturing license of any kind under
             3012      this chapter shall file a written application with the department, in a form prescribed by the
             3013      department. The application shall be accompanied by:
             3014          (a) a nonrefundable application fee of $250;
             3015          (b) an initial license fee of $3,250 unless otherwise provided in this chapter, which is
             3016      refundable if a license is not granted;
             3017          (c) a statement of the purpose for which the applicant has applied for the alcoholic
             3018      beverage manufacturing license;
             3019          (d) written consent of the local authority;
             3020          (e) a bond as specified by Section 32A-8-105 ;
             3021          (f) evidence that the applicant is carrying public liability insurance in an amount and
             3022      form satisfactory to the department;
             3023          (g) evidence that the applicant is authorized by the United States to manufacture
             3024      alcoholic beverages;
             3025          (h) a signed consent form stating that the licensee will permit any authorized


             3026      representative of the commission, department, or any law enforcement officer to have
             3027      unrestricted right to enter the premises;
             3028          (i) in the case of an applicant that is a partnership, corporation, or limited liability
             3029      company, proper verification evidencing that the person or persons signing the application are
             3030      authorized to so act on behalf of the partnership, corporation, or limited liability company; and
             3031          (j) any other documents and evidence the department may require by rule or policy to
             3032      allow complete evaluation of the application.
             3033          (2) (a) All alcoholic beverage manufacturing licenses expire on December 31 of each
             3034      year.
             3035          (b) Persons desiring to renew their license shall submit by no later than November 30
             3036      of the year the license expires:
             3037          (i) a completed renewal application to the department; and
             3038          (ii) a renewal fee in the following amount:
             3039          (A) $2,500, except for an alcoholic beverage manufacturing license described in
             3040      Subsection (2)(b)(ii)(B); or
             3041          (B) $1,200 for a winery license if the winery licensee produced less than 20,000
             3042      gallons of wine in the calendar year preceding the year in which the licensee seeks renewal.
             3043          (c) Failure to meet the renewal requirements results in an automatic forfeiture of the
             3044      license effective on the date the existing license expires. Renewal applications shall be in a
             3045      form prescribed by the department.
             3046          (3) To ensure compliance with Subsection 32A-8-106 [(1)(f)] (6), the commission may
             3047      suspend or revoke an alcoholic beverage manufacturing license if the manufacturing licensee
             3048      does not immediately notify the department of any change in:
             3049          (a) ownership of the licensee;
             3050          (b) for a corporate owner, the:
             3051          (i) corporate officers or directors; or
             3052          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             3053      corporation; or


             3054          (c) for a limited liability company:
             3055          (i) managers; or
             3056          (ii) members owning at least 20% of the limited liability company.
             3057          Section 28. Section 32A-8-106 is amended to read:
             3058           32A-8-106. Operational restrictions.
             3059          [(1)] Each person granted an alcoholic beverage manufacturing license and the
             3060      employees and management of the licensee shall abide by the following conditions and
             3061      requirements, and any special conditions and restrictions otherwise provided in this chapter.
             3062      Failure to comply may result in a suspension or revocation of the license or other disciplinary
             3063      action taken against individual employees or management personnel[:].
             3064          [(a)] (1) A licensee may not sell any liquor within the state except to the department
             3065      and to military installations.
             3066          [(b)] (2) Each license issued under this chapter shall be conspicuously displayed on the
             3067      licensed premises.
             3068          [(c)] (3) A licensee may not advertise its product in violation of this title or any other
             3069      federal or state law, except that nothing in this title prohibits the advertising or solicitation of
             3070      orders for industrial alcohol from holders of special permits.
             3071          [(d)] (4) (a) Each alcoholic beverage manufacturing licensee shall maintain accounting
             3072      and other records and documents as the department may require. [Any]
             3073          (b) A manufacturing licensee or person acting for the manufacturing licensee, who
             3074      knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the entries in any of
             3075      the books of account or other documents of the licensee required to be made, maintained, or
             3076      preserved by this title or the rules of the commission for the purpose of deceiving the
             3077      commission, or the department, or any of their officials or employees, is subject to:
             3078          (i) the immediate suspension or revocation of the manufacturing license; and
             3079          (ii) criminal prosecution under Chapter 12, Criminal Offenses.
             3080          [(e)] (5) An alcoholic beverage manufacturing license may not be transferred from one
             3081      location to another, without prior written approval of the commission.


             3082          [(f) (i)] (6) (a) A manufacturing licensee may not sell, transfer, assign, exchange,
             3083      barter, give, or attempt in any way to dispose of the license to any other person or entity,
             3084      whether for monetary gain or not.
             3085          [(ii)] (b) A manufacturing license has no monetary value for the purpose of any type of
             3086      disposition.
             3087          [(g)] (7) Each licensee shall from time to time, on request of the department, furnish
             3088      for analytical purposes samples of the alcoholic products that it has for sale or that it has in the
             3089      course of manufacture for sale in this state.
             3090          [(2) Nothing in this chapter prevents any manufacturer of, or dealer in, patent or
             3091      proprietary medicines containing alcohol from selling the medicines in the original and
             3092      unbroken package if the medicine contains sufficient medication to prevent its use as an
             3093      alcoholic beverage. Each manufacturer or dealer who keeps patent or proprietary medicines for
             3094      sale shall, upon request by the department, provide a sufficient sample of the medicine to
             3095      enable the department to have the medicine analyzed.]
             3096          [(3) (a) Nothing in this chapter prevents any person from manufacturing vinegar or
             3097      preserved nonintoxicating cider for use or sale, or the manufacture or sale for lawful purposes
             3098      of any food preparation, or any United States Pharmacopoeia or national formulary preparation
             3099      in conformity with the Utah pharmacy laws, if the preparation conforms to standards
             3100