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[Introduced][Amended][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 167 Enrolled

             1     

ALCOHOLIC BEVERAGES ON ELECTION DAY

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Scott D. McCoy

             5     
House Sponsor: Gregory H. Hughes

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions related to when alcoholic beverages may be sold, delivered,
             10      offered, served, or otherwise furnished.
             11      Highlighted Provisions:
             12          This bill:
             13          .    addresses operational restrictions related to certain package agencies, permits, and
             14      licenses imposed on the basis that an action occurs on an election day; and
             15          .    makes technical changes.
             16      Monies Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          None
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          32A-3-106, as last amended by Laws of Utah 2007, Chapter 329
             23          32A-4-106, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
             24          32A-4-307, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
             25          32A-4-406, as last amended by Laws of Utah 2007, Chapters 284, and 341
             26          32A-5-107, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
             27          32A-7-106, as last amended by Laws of Utah 2007, Chapters 284, and 341
             28     
             29      Be it enacted by the Legislature of the state of Utah:


             30          Section 1. Section 32A-3-106 is amended to read:
             31           32A-3-106. Operational restrictions.
             32          (1) (a) A package agency may not be operated until a package agency agreement has
             33      been entered into by the package agent and the department.
             34          (b) The agreement shall state the conditions of operation by which the package agent
             35      and the department are bound.
             36          (c) If the package agent violates the conditions, terms, or covenants contained in the
             37      agreement[,] or violates any provisions of this title, the department may take whatever action
             38      against the agent that is allowed by the package agency agreement.
             39          (d) Actions against the package agent are governed solely by the agreement and may
             40      include suspension or revocation of the agency.
             41          (2) (a) A package agency may not purchase liquor from any person except from the
             42      department.
             43          (b) At the discretion of the department, liquor may be provided by the department to a
             44      package agency for sale on consignment.
             45          (3) The department may pay or otherwise remunerate a package agent on any basis
             46      including sales or volume of business done by the agency.
             47          (4) Liquor may not be sold from any package agency except in a sealed package. The
             48      package may not be opened on the premises of a package agency.
             49          (5) All liquor sold shall be in packages that are properly marked and labeled in
             50      accordance with the rules adopted under this title.
             51          (6) A package agency may not display liquor or price lists in windows or showcases
             52      visible to passersby.
             53          (7) (a) An officer, agent, clerk, or employee of a package agency may not consume or
             54      allow to be consumed by any person any alcoholic beverage on the premises of a package
             55      agency.
             56          (b) Violation of this Subsection (7) is a class B misdemeanor.
             57          (8) Liquor may not be sold except at prices fixed by the commission.


             58          (9) Liquor may not be sold, delivered, or furnished to any:
             59          (a) minor;
             60          (b) person actually, apparently, or obviously intoxicated;
             61          (c) known habitual drunkard; or
             62          (d) known interdicted person.
             63          (10) (a) Subject to Subsection (10)(b), sale or delivery of liquor may not be made on or
             64      from the premises of any package agency nor may any package agency be kept open for the sale
             65      of liquor:
             66          (i) (A) on Sunday; or
             67          [(ii)] (B) on [any] a state or federal legal holiday; and
             68          [(iii) on any day on which any regular general election, regular primary election, or
             69      statewide special election is held until after the polls are closed;]
             70          [(iv) on any day on which any municipal, local district, special service district, or school
             71      election is held until after the polls are closed, but only within the boundaries of the
             72      municipality, local district, special service district, or school district holding the election and
             73      only if the municipality, local district, special service district, or school district in which the
             74      election is being held notifies the department at least 30 days prior to the date of the election;
             75      or]
             76          [(v)] (ii) except on days and during hours as the commission may direct by rule or
             77      order.
             78          (b) The restrictions in [Subsections] Subsection (10)(a)(i) [and (ii)] govern unless:
             79          (i) the package agency is located at a winery licensed under Chapter 8, Manufacturing
             80      Licenses;
             81          (ii) the winery licensed under Chapter 8, Manufacturing Licenses, holds:
             82          (A) a restaurant liquor license under Chapter 4, Part 1, Restaurant Liquor Licenses; or
             83          (B) a limited restaurant license under Chapter 4, Part 3, Limited Restaurant Licenses;
             84          (iii) the restaurant described in Subsection (10)(b)(ii) is located at the winery;
             85          (iv) the restaurant described in Subsection (10)(b)(ii) sells wines produced at the


             86      winery;
             87          (v) the winery described in Subsection (10)(b)(i):
             88          (A) owns the restaurant; or
             89          (B) operates the restaurant;
             90          (vi) the package agency only sells wine produced at the winery; and
             91          (vii) the package agency's days and hours of sale are the same as the days and hours of
             92      sale at the restaurant described in Subsection (10)(b)(ii).
             93          (c) (i) In addition to the requirements of Subsection (10)(a), the sale or delivery of
             94      liquor may not be made on or from the premises of a package agency described in Subsection
             95      (10)(c)(ii) and a package agency described in Subsection (10)(c)(ii) may not be open for the sale
             96      of liquor until after the polls are closed:
             97          (A) on a day on which is held:
             98          (I) a regular general election;
             99          (II) a regular primary election; or
             100          (III) a statewide special election; or
             101          (B) on a day on which is held a municipal, local district, special service district, or
             102      school election if:
             103          (I) the package agency is within the boundaries of the municipality, local district, special
             104      service district, or school district holding the election; and
             105          (II) the municipality, local district, special service district, or school district in which the
             106      election is held notifies the department at least 30 days before the day on which the election is
             107      held.
             108          (ii) This Subsection (10)(c) applies to a package agency that contracts with the
             109      department to sell liquor in a manner similar to a state store, whether or not the operator of the
             110      package agency has a source of income that is not from the sale of liquor.
             111          (iii) The commission may by rule made in accordance with Title 63, Chapter 46a, Utah
             112      Administrative Rulemaking Act, define what constitutes a package agency that sells liquor "in a
             113      manner similar to a state store."


             114          (11) The package agency certificate issued by the commission shall be permanently
             115      posted in a conspicuous place in the package agency.
             116          (12) Each package agent shall display in a prominent place in the package agency a sign
             117      in large letters stating: "Warning: Driving under the influence of alcohol or drugs is a serious
             118      crime that is prosecuted aggressively in Utah."
             119          (13) (a) A package agency may not close or cease operation for a period longer than 72
             120      hours, unless:
             121          (i) the package agency notifies the department in writing at least seven days before the
             122      closing; and
             123          (ii) the closure or cessation of operation is first approved by the department.
             124          (b) Notwithstanding Subsection (13)(a), in the case of emergency closure, immediate
             125      notice of closure shall be made to the department by telephone.
             126          (c) (i) The department may authorize a closure or cessation of operation for a period
             127      not to exceed 60 days.
             128          (ii) The department may extend the initial period an additional 30 days upon written
             129      request of the package agency and upon a showing of good cause.
             130          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             131      commission approval.
             132          (d) The notice required by Subsection (13)(a) shall include:
             133          (i) the dates of closure or cessation of operation;
             134          (ii) the reason for the closure or cessation of operation; and
             135          (iii) the date on which the agency will reopen or resume operation.
             136          (e) Failure of the agency to provide notice and to obtain department authorization prior
             137      to closure or cessation of operation shall result in an automatic termination of the package
             138      agency contract effective immediately.
             139          (f) Failure of the agency to reopen or resume operation by the approved date shall
             140      result in an automatic termination of the package agency contract effective on that date.
             141          (14) Liquor may not be stored or sold in any place other than as designated in the


             142      package agent's application, unless the package agent first applies for and receives approval
             143      from the department for a change of location within the package agency premises.
             144          (15) (a) Except to the extent authorized by commission rule, a minor may not be
             145      admitted into, or be on the premises of a package agency unless accompanied by a person who
             146      is:
             147          (i) 21 years of age or older; and
             148          (ii) the minor's parent, legal guardian, or spouse.
             149          (b) Any package agent or employee of the package agency that has reason to believe
             150      that a person who is on the premises of a package agency store is under the age of 21 and is not
             151      accompanied by a person described in Subsection (15)(a) may:
             152          (i) ask the suspected minor for proof of age;
             153          (ii) ask the person who accompanied the suspected minor for proof of age; and
             154          (iii) ask the suspected minor or the person who accompanied the suspected minor for
             155      proof of parental, guardianship, or spousal relationship.
             156          (c) Any package agent or employee of a package agency shall refuse to sell liquor to the
             157      suspected minor and to the person who accompanied the suspected minor into the package
             158      agency if they fail to provide any of the information specified in Subsection (15)(b).
             159          (d) Any package agent or employee of a package agency shall require the suspected
             160      minor and the person who accompanied the suspected minor into the package agency to
             161      immediately leave the premises of the package agency if they fail to provide any of the
             162      information specified in Subsection (15)(b).
             163          (16) A package agency may not transfer its operations from one location to another
             164      without prior written approval of the commission.
             165          (17) (a) A person, having been granted a package agency, may not sell, transfer, assign,
             166      exchange, barter, give, or attempt in any way to dispose of the package agency to any other
             167      person, whether for monetary gain or not.
             168          (b) A package agency has no monetary value for the purpose of any type of disposition.
             169          Section 2. Section 32A-4-106 is amended to read:


             170           32A-4-106. Operational restrictions.
             171          Each person granted a restaurant liquor license and the employees and management
             172      personnel of the restaurant shall comply with the following conditions and requirements.
             173      Failure to comply may result in a suspension or revocation of the license or other disciplinary
             174      action taken against individual employees or management personnel.
             175          (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from state
             176      stores or package agencies.
             177          (b) Liquor purchased may be transported by the restaurant liquor licensee from the
             178      place of purchase to the licensed premises.
             179          (c) Payment for liquor shall be made in accordance with rules established by the
             180      commission.
             181          (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in a
             182      quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             183      dispensing system approved by the department in accordance with commission rules adopted
             184      under this title, except that:
             185          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             186      system if used as a secondary flavoring ingredient in a beverage subject to the following
             187      restrictions:
             188          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of a
             189      primary spirituous liquor;
             190          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             191          (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
             192      on the floor plan provided to the department; and
             193          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             194          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             195      system if used:
             196          (i) as a flavoring on desserts; and
             197          (ii) in the preparation of flaming food dishes, drinks, and desserts;


             198          (c) each restaurant patron may have no more than 2.75 ounces of spirituous liquor at a
             199      time; and
             200          (d) each restaurant patron may have no more than one spirituous liquor drink at a time
             201      before the patron.
             202          (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
             203      exceed five ounces per glass or individual portion.
             204          (ii) An individual portion of wine may be served to a patron in more than one glass as
             205      long as the total amount of wine does not exceed five ounces.
             206          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             207      Subsection (7)(e).
             208          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed
             209      by the commission to tables of four or more persons.
             210          (ii) Wine may be sold and served in containers not exceeding 750 milliliters at prices
             211      fixed by the commission to tables of less than four persons.
             212          (c) A wine service may be performed and a service charge assessed by the restaurant as
             213      authorized by commission rule for wine purchased at the restaurant.
             214          (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
             215      fixed by the commission.
             216          (b) A service charge may be assessed by the restaurant as authorized by commission
             217      rule for heavy beer purchased at the restaurant.
             218          (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant licensed to sell liquor may sell
             219      beer for on-premise consumption:
             220          (A) in an open container; and
             221          (B) on draft.
             222          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             223      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             224      container that exceeds one liter.
             225          (b) A restaurant licensed under this chapter that sells beer pursuant to Subsection


             226      (5)(a):
             227          (i) may do so without obtaining a separate on-premise beer retailer license from the
             228      commission; and
             229          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             230      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             231      inconsistent with or less restrictive than the operational restrictions under this part.
             232          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             233      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             234      restaurant's:
             235          (i) state liquor license; and
             236          (ii) alcoholic beverage license issued by the local authority.
             237          (6) Alcoholic beverages may not be stored, served, or sold in any place other than as
             238      designated in the licensee's application, unless the licensee first applies for and receives approval
             239      from the department for a change of location within the restaurant.
             240          (7) (a) (i) A patron may only make alcoholic beverage purchases in the restaurant from
             241      and be served by a person employed, designated, and trained by the licensee to sell and serve
             242      alcoholic beverages.
             243          (ii) Notwithstanding Subsection (7)(a)(i), a patron who has purchased bottled wine
             244      from an employee of the restaurant or has carried bottled wine onto the premises of the
             245      restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the patron
             246      or others at the patron's table.
             247          (b) Alcoholic beverages shall be delivered by a server to the patron.
             248          (c) Any alcoholic beverage may only be consumed at the patron's table or counter.
             249          (d) Alcoholic beverages may not be served to or consumed by a patron at a bar.
             250          (e) Each restaurant patron may have no more than two alcoholic beverages of any kind
             251      at a time before the patron, subject to the limitation in Subsection (2)(d).
             252          (8) The liquor storage area shall remain locked at all times other than those hours and
             253      days when liquor sales are authorized by law.


             254          (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             255      restaurant [during the following days or hours: (i) until after the polls are closed on the day of
             256      any: (A) regular general election; (B) regular primary election; or (C) statewide special
             257      election; (ii) until after the polls are closed on the day of any municipal, local district, special
             258      service district, or school election, but only: (A) within the boundaries of the municipality, local
             259      district, special service district, or school district; and (B) if required by local ordinance; and
             260      (iii)] on any [other] day after 12 midnight [and] or before 12 noon.
             261          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             262      Licenses, for on-premise beer licensees.
             263          (10) Alcoholic beverages may not be sold except in connection with an order for food
             264      prepared, sold, and served at the restaurant.
             265          (11) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             266          (a) minor;
             267          (b) person actually, apparently, or obviously intoxicated;
             268          (c) known habitual drunkard; or
             269          (d) known interdicted person.
             270          (12) (a) (i) Liquor may be sold only at prices fixed by the commission.
             271          (ii) Liquor may not be sold at discount prices on any date or at any time.
             272          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             273      beverage to the licensee.
             274          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             275      over consumption or intoxication.
             276          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             277      hours of the restaurant's business day such as a "happy hour."
             278          (e) The sale or service of more than one alcoholic beverage for the price of a single
             279      alcoholic beverage is prohibited.
             280          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
             281      during any set period for a fixed price is prohibited.


             282          (g) A restaurant licensee may not engage in a public promotion involving or offering
             283      free alcoholic beverages to the general public.
             284          (13) Alcoholic beverages may not be purchased for a patron of a restaurant by:
             285          (a) the licensee; or
             286          (b) any employee or agent of the licensee.
             287          (14) (a) A person may not bring onto the premises of a restaurant liquor licensee any
             288      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             289      discretion of the licensee, bottled wine onto the premises of any restaurant liquor licensee for
             290      on-premise consumption.
             291          (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or its
             292      officers, managers, employees, or agents may not allow:
             293          (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
             294      consumption; or
             295          (ii) consumption of any such alcoholic beverage on its premises.
             296          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             297      or other representative of the licensee upon entering the restaurant.
             298          (d) A wine service may be performed and a service charge assessed by the restaurant as
             299      authorized by commission rule for wine carried in by a patron.
             300          (15) (a) Except as provided in Subsection (15)(b), a restaurant licensee and its
             301      employees may not permit a restaurant patron to carry from the restaurant premises an open
             302      container that:
             303          (i) is used primarily for drinking purposes; and
             304          (ii) contains any alcoholic beverage.
             305          (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
             306      restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
             307      onto the premises of the restaurant in accordance with Subsection (14), provided the bottle has
             308      been recorked or recapped before removal.
             309          (16) (a) A minor may not be employed by a restaurant licensee to sell or dispense


             310      alcoholic beverages.
             311          (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
             312      employed to enter the sale at a cash register or other sales recording device.
             313          (17) An employee of a restaurant liquor licensee, while on duty, may not:
             314          (a) consume an alcoholic beverage; or
             315          (b) be intoxicated.
             316          (18) Any charge or fee made in connection with the sale, service, or consumption of
             317      liquor may be stated in food or alcoholic beverage menus including:
             318          (a) a set-up charge;
             319          (b) a service charge; or
             320          (c) a chilling fee.
             321          (19) Each restaurant liquor licensee shall display in a prominent place in the restaurant:
             322          (a) the liquor license that is issued by the department;
             323          (b) a list of the types and brand names of liquor being served through its calibrated
             324      metered dispensing system; and
             325          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             326      drugs is a serious crime that is prosecuted aggressively in Utah."
             327          (20) A restaurant liquor licensee may not on the premises of the restaurant liquor
             328      licensee:
             329          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             330      Chapter 10, Part 11, Gambling;
             331          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             332      Part 11, Gambling; or
             333          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             334      the risking of something of value for a return or for an outcome when the return or outcome is
             335      based upon an element of chance, excluding the playing of an amusement device that confers
             336      only an immediate and unrecorded right of replay not exchangeable for value.
             337          (21) (a) Each restaurant liquor licensee shall maintain an expense ledger or record


             338      showing in detail:
             339          (i) quarterly expenditures made separately for:
             340          (A) malt or brewed beverages;
             341          (B) set-ups;
             342          (C) liquor;
             343          (D) food; and
             344          (E) all other items required by the department; and
             345          (ii) sales made separately for:
             346          (A) malt or brewed beverages;
             347          (B) set-ups;
             348          (C) food; and
             349          (D) all other items required by the department.
             350          (b) The record required by Subsection (21)(a) shall be kept:
             351          (i) in a form approved by the department; and
             352          (ii) current for each three-month period.
             353          (c) Each expenditure shall be supported by:
             354          (i) delivery tickets;
             355          (ii) invoices;
             356          (iii) receipted bills;
             357          (iv) canceled checks;
             358          (v) petty cash vouchers; or
             359          (vi) other sustaining data or memoranda.
             360          (d) In addition to a ledger or record required under Subsection (21)(a), a restaurant
             361      liquor licensee shall maintain accounting and other records and documents as the department
             362      may require.
             363          (e) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,
             364      alters, cancels, destroys, conceals, or removes the entries in any of the books of account or
             365      other documents of the restaurant required to be made, maintained, or preserved by this title or


             366      the rules of the commission for the purpose of deceiving the commission or the department, or
             367      any of their officials or employees, is subject to:
             368          (i) the suspension or revocation of the restaurant's liquor license; and
             369          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             370          (22) (a) A restaurant liquor licensee may not close or cease operation for a period
             371      longer than 240 hours, unless:
             372          (i) the restaurant liquor licensee notifies the department in writing at least seven days
             373      before the closing ; and
             374          (ii) the closure or cessation of operation is first approved by the department.
             375          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, immediate
             376      notice of closure shall be made to the department by telephone.
             377          (c) The department may authorize a closure or cessation of operation for a period not
             378      to exceed 60 days. The department may extend the initial period an additional 30 days upon
             379      written request of the restaurant licensee and upon a showing of good cause. A closure or
             380      cessation of operation may not exceed a total of 90 days without commission approval.
             381          (d) Any notice shall include:
             382          (i) the dates of closure or cessation of operation;
             383          (ii) the reason for the closure or cessation of operation; and
             384          (iii) the date on which the licensee will reopen or resume operation.
             385          (e) Failure of the licensee to provide notice and to obtain department authorization
             386      prior to closure or cessation of operation shall result in an automatic forfeiture of:
             387          (i) the license; and
             388          (ii) the unused portion of the license fee for the remainder of the license year effective
             389      immediately.
             390          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             391      result in an automatic forfeiture of:
             392          (i) the license; and
             393          (ii) the unused portion of the license fee for the remainder of the license year.


             394          (23) Each restaurant liquor licensee shall maintain at least 70% of its total restaurant
             395      business from the sale of food, which does not include mix for alcoholic beverages or service
             396      charges.
             397          (24) A restaurant liquor license may not be transferred from one location to another,
             398      without prior written approval of the commission.
             399          (25) (a) A person, having been granted a restaurant liquor license may not sell, transfer,
             400      assign, exchange, barter, give, or attempt in any way to dispose of the license to any other
             401      person whether for monetary gain or not.
             402          (b) A restaurant liquor license has no monetary value for the purpose of any type of
             403      disposition.
             404          (26) Each server of alcoholic beverages in a licensee's establishment shall keep a written
             405      beverage tab for each table or group that orders or consumes alcoholic beverages on the
             406      premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
             407      consumed.
             408          (27) A person's willingness to serve alcoholic beverages may not be made a condition of
             409      employment as a server with a restaurant that has a restaurant liquor license.
             410          Section 3. Section 32A-4-307 is amended to read:
             411           32A-4-307. Operational restrictions.
             412          Each person granted a limited restaurant license and the employees and management
             413      personnel of the restaurant shall comply with the following conditions and requirements.
             414      Failure to comply may result in a suspension or revocation of the license or other disciplinary
             415      action taken against individual employees or management personnel.
             416          (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
             417      except from state stores or package agencies .
             418          (b) Wine and heavy beer purchased in accordance with Subsection (1)(a) may be
             419      transported by the licensee from the place of purchase to the licensed premises.
             420          (c) Payment for wine and heavy beer shall be made in accordance with rules established
             421      by the commission.


             422          (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of
             423      spirituous liquor on the premises of the restaurant.
             424          (b) Spirituous liquor may not be on the premises of the restaurant except for use:
             425          (i) as a flavoring on desserts; and
             426          (ii) in the preparation of flaming food dishes, drinks, and desserts.
             427          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             428      exceed five ounces per glass or individual portion.
             429          (ii) An individual portion may be served to a patron in more than one glass as long as
             430      the total amount of wine does not exceed five ounces.
             431          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             432      Subsection (7)(e).
             433          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed
             434      by the commission to tables of four or more persons.
             435          (ii) Wine may be sold and served in containers not exceeding 750 milliliters at prices
             436      fixed by the commission to tables of less than four persons.
             437          (c) A wine service may be performed and a service charge assessed by the limited
             438      restaurant as authorized by commission rule for wine purchased at the limited restaurant.
             439          (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
             440      fixed by the commission.
             441          (b) A service charge may be assessed by the limited restaurant as authorized by
             442      commission rule for heavy beer purchased at the restaurant.
             443          (5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer for
             444      on-premise consumption:
             445          (A) in an open container; and
             446          (B) on draft.
             447          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             448      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             449      container that exceeds one liter.


             450          (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
             451          (i) may do so without obtaining a separate on-premise beer retailer license from the
             452      commission; and
             453          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             454      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             455      inconsistent with or less restrictive than the operational restrictions under this part.
             456          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             457      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             458      restaurant's:
             459          (i) limited restaurant license; and
             460          (ii) alcoholic beverage license issued by the local authority.
             461          (6) Wine, heavy beer, and beer may not be stored, served, or sold in any place other
             462      than as designated in the licensee's application, unless the licensee first applies for and receives
             463      approval from the department for a change of location within the restaurant.
             464          (7) (a) (i) A patron may only make alcoholic beverage purchases in the limited
             465      restaurant from and be served by a person employed, designated, and trained by the licensee to
             466      sell and serve alcoholic beverages.
             467          (ii) Notwithstanding Subsection (7)(a)(i), a patron who has purchased bottled wine
             468      from an employee of the restaurant or has carried bottled wine onto the premises of the
             469      restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the patron
             470      or others at the patron's table.
             471          (b) Alcoholic beverages shall be delivered by a server to the patron.
             472          (c) Any alcoholic beverage may only be consumed at the patron's table or counter.
             473          (d) Alcoholic beverages may not be served to or consumed by a patron at a bar.
             474          (e) Each restaurant patron may have no more than two alcoholic beverages of any kind
             475      at a time before the patron.
             476          (8) The alcoholic beverage storage area shall remain locked at all times other than those
             477      hours and days when alcoholic beverage sales are authorized by law.


             478          (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
             479      furnished at a limited restaurant [during the following days or hours: (i) until after the polls are
             480      closed on the day of any: (A) regular general election; (B) regular primary election; or (C)
             481      statewide special election; (ii) until after the polls are closed on the day of any municipal, local
             482      district, special service district, or school election, but only: (A) within the boundaries of the
             483      municipality, local district, special service district, or school district; and (B) if required by local
             484      ordinance; and (iii)] on any [other] day after 12 midnight [and] or before 12 noon.
             485          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             486      Licenses, for on-premise beer licensees.
             487          (10) Alcoholic beverages may not be sold except in connection with an order of food
             488      prepared, sold, and served at the restaurant.
             489          (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to
             490      [any] a:
             491          (a) minor;
             492          (b) person actually, apparently, or obviously intoxicated;
             493          (c) known habitual drunkard; or
             494          (d) known interdicted person.
             495          (12) (a) (i) Wine and heavy beer may be sold only at prices fixed by the commission.
             496          (ii) Wine and heavy beer may not be sold at discount prices on any date or at any time.
             497          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverages
             498      to the licensee.
             499          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             500      over consumption or intoxication.
             501          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             502      hours of the limited restaurant's business day such as a "happy hour."
             503          (e) The sale or service of more than one alcoholic beverage for the price of a single
             504      alcoholic beverage is prohibited.
             505          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages


             506      during any set period for a fixed price is prohibited.
             507          (g) A limited restaurant licensee may not engage in a public promotion involving or
             508      offering free alcoholic beverages to the general public.
             509          (13) Alcoholic beverages may not be purchased for a patron of the restaurant by:
             510          (a) the licensee; or
             511          (b) any employee or agent of the licensee.
             512          (14) (a) A person may not bring onto the premises of a limited restaurant licensee any
             513      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             514      discretion of the licensee, bottled wine onto the premises of any limited restaurant licensee for
             515      on-premise consumption.
             516          (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or its
             517      officers, managers, employees, or agents may not allow:
             518          (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
             519      consumption; or
             520          (ii) consumption of any alcoholic beverage described in Subsection (14)(b)(i) on its
             521      premises.
             522          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             523      or other representative of the licensee upon entering the restaurant.
             524          (d) A wine service may be performed and a service charge assessed by the restaurant as
             525      authorized by commission rule for wine carried in by a patron.
             526          (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and its
             527      employees may not permit a restaurant patron to carry from the restaurant premises an open
             528      container that:
             529          (i) is used primarily for drinking purposes; and
             530          (ii) contains any alcoholic beverage.
             531          (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed contents
             532      of a bottle of wine if before removal the bottle has been recorked or recapped.
             533          (16) (a) A minor may not be employed by a limited restaurant licensee to sell or


             534      dispense alcoholic beverages.
             535          (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
             536      employed to enter the sale at a cash register or other sales recording device.
             537          (17) An employee of a limited restaurant licensee, while on duty, may not:
             538          (a) consume an alcoholic beverage; or
             539          (b) be intoxicated.
             540          (18) A charge or fee made in connection with the sale, service, or consumption of wine
             541      or heavy beer may be stated in food or alcoholic beverage menus including:
             542          (a) a service charge; or
             543          (b) a chilling fee.
             544          (19) Each limited restaurant licensee shall display in a prominent place in the restaurant:
             545          (a) the license that is issued by the department; and
             546          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             547      drugs is a serious crime that is prosecuted aggressively in Utah."
             548          (20) A limited restaurant licensee may not on the premises of the restaurant:
             549          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             550      Chapter 10, Part 11, Gambling;
             551          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             552      Part 11, Gambling; or
             553          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             554      the risking of something of value for a return or for an outcome when the return or outcome is
             555      based upon an element of chance, excluding the playing of an amusement device that confers
             556      only an immediate and unrecorded right of replay not exchangeable for value.
             557          (21) (a) Each limited restaurant licensee shall maintain an expense ledger or record
             558      showing in detail:
             559          (i) quarterly expenditures made separately for:
             560          (A) wine;
             561          (B) heavy beer;


             562          (C) beer;
             563          (D) food; and
             564          (E) all other items required by the department; and
             565          (ii) sales made separately for:
             566          (A) wine;
             567          (B) heavy beer;
             568          (C) beer;
             569          (D) food; and
             570          (E) all other items required by the department.
             571          (b) The record required by Subsection (21)(a) shall be kept:
             572          (i) in a form approved by the department; and
             573          (ii) current for each three-month period.
             574          (c) Each expenditure shall be supported by:
             575          (i) delivery tickets;
             576          (ii) invoices;
             577          (iii) receipted bills;
             578          (iv) canceled checks;
             579          (v) petty cash vouchers; or
             580          (vi) other sustaining data or memoranda.
             581          (d) In addition to the ledger or record maintained under Subsections (21)(a) through
             582      (c), a limited restaurant licensee shall maintain accounting and other records and documents as
             583      the department may require.
             584          (e) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,
             585      alters, cancels, destroys, conceals, or removes the entries in any of the books of account or
             586      other documents of the restaurant required to be made, maintained, or preserved by this title or
             587      the rules of the commission for the purpose of deceiving the commission or department, or any
             588      of their officials or employees, is subject to:
             589          (i) the suspension or revocation of the limited restaurant's license; and


             590          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             591          (22) (a) A limited restaurant licensee may not close or cease operation for a period
             592      longer than 240 hours, unless:
             593          (i) the limited restaurant licensee notifies the department in writing at least seven days
             594      before the closing ; and
             595          (ii) the closure or cessation of operation is first approved by the department.
             596          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, immediate
             597      notice of closure shall be made to the department by telephone.
             598          (c) (i) Subject to Subsection (22)(c)(iii), the department may authorize a closure or
             599      cessation of operation for a period not to exceed 60 days.
             600          (ii) The department may extend the initial period an additional 30 days upon:
             601          (A) written request of the limited restaurant licensee; and
             602          (B) a showing of good cause.
             603          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             604      commission approval.
             605          (d) Any notice required by Subsection (22)(a) shall include:
             606          (i) the dates of closure or cessation of operation;
             607          (ii) the reason for the closure or cessation of operation; and
             608          (iii) the date on which the licensee will reopen or resume operation.
             609          (e) Failure of the licensee to provide notice and to obtain department authorization
             610      before closure or cessation of operation shall result in an automatic forfeiture of:
             611          (i) the license; and
             612          (ii) the unused portion of the license fee for the remainder of the license year effective
             613      immediately.
             614          (f) Failure of the licensee to reopen or resume operation by the approved date [shall
             615      result] results in an automatic forfeiture of:
             616          (i) the license; and
             617          (ii) the unused portion of the license fee for the remainder of the license year.


             618          (23) Each limited restaurant licensee shall maintain at least 70% of its total restaurant
             619      business from the sale of food, which does not include service charges.
             620          (24) A limited restaurant license may not be transferred from one location to another,
             621      without prior written approval of the commission.
             622          (25) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,
             623      give, or attempt in any way to dispose of the license to any other person whether for monetary
             624      gain or not.
             625          (b) A limited restaurant license has no monetary value for the purpose of any type of
             626      disposition.
             627          (26) (a) Each server of wine, heavy beer, and beer in a limited restaurant licensee's
             628      establishment shall keep a written beverage tab for each table or group that orders or consumes
             629      alcoholic beverages on the premises.
             630          (b) The beverage tab required by Subsection (26)(a) shall list the type and amount of
             631      alcoholic beverages ordered or consumed.
             632          (27) A limited restaurant licensee may not make a person's willingness to serve
             633      alcoholic beverages a condition of employment as a server with the restaurant.
             634          Section 4. Section 32A-4-406 is amended to read:
             635           32A-4-406. Operational restrictions.
             636          Each person granted an on-premise banquet license and the employees and management
             637      personnel of the on-premise banquet licensee shall comply with this title, the rules of the
             638      commission, and the following conditions and requirements. Failure to comply may result in a
             639      suspension or revocation of the license or other disciplinary action taken against individual
             640      employees or management personnel.
             641          (1) A person involved in the sale or service of alcoholic beverages under the on-premise
             642      banquet license shall:
             643          (a) be under the supervision and direction of the on-premise banquet licensee; and
             644          (b) complete the seminar provided for in Section 62A-15-401 .
             645          (2) (a) Liquor may not be purchased by the on-premise banquet licensee except from


             646      state stores or package agencies.
             647          (b) Liquor purchased in accordance with Subsection (2)(a) may be transported by the
             648      on-premise banquet licensee from the place of purchase to the licensed premises.
             649          (c) Payment for liquor shall be made in accordance with rules established by the
             650      commission.
             651          (3) Alcoholic beverages may be sold or provided at a banquet subject to the restrictions
             652      set forth in this Subsection (3).
             653          (a) An on-premise banquet licensee may sell or provide any primary spirituous liquor
             654      only in a quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             655      dispensing system approved by the department in accordance with commission rules adopted
             656      under this title, except that:
             657          (i) spirituous liquor need not be dispensed through a calibrated metered dispensing
             658      system if used as a secondary flavoring ingredient in a beverage subject to the following
             659      restrictions:
             660          (A) the secondary ingredient may be dispensed only in conjunction with the purchase of
             661      a primary spirituous liquor;
             662          (B) the secondary ingredient may not be the only spirituous liquor in the beverage;
             663          (C) the on-premise banquet licensee shall designate a location where flavorings are
             664      stored on the floor plan provided to the department; and
             665          (D) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             666          (ii) spirituous liquor need not be dispensed through a calibrated metered dispensing
             667      system if used:
             668          (A) as a flavoring on desserts; and
             669          (B) in the preparation of flaming food dishes, drinks, and desserts;
             670          (iii) each attendee may have no more than 2.75 ounces of spirituous liquor at a time
             671      before the attendee; and
             672          (iv) each attendee may have no more than one spirituous liquor drink at a time before
             673      the attendee.


             674          (b) (i) (A) Wine may be sold and served by the glass or an individual portion not to
             675      exceed five ounces per glass or individual portion.
             676          (B) An individual portion may be served to an attendee in more than one glass as long
             677      as the total amount of wine does not exceed five ounces.
             678          (C) An individual portion of wine is considered to be one alcoholic beverage under
             679      Subsection (5)(c).
             680          (ii) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed by
             681      the commission.
             682          (iii) A wine service may be performed and a service charge assessed by the on-premise
             683      banquet licensee as authorized by commission rule for wine purchased on the banquet premises.
             684          (c) (i) Heavy beer may be served in original containers not exceeding one liter at prices
             685      fixed by the commission.
             686          (ii) A service charge may be assessed by the on-premise banquet licensee as authorized
             687      by commission rule for heavy beer purchased on the banquet premises.
             688          (d) (i) Except as provided in Subsection (3)(d)(ii), beer may be sold and served for
             689      on-premise consumption:
             690          (A) in an open container; and
             691          (B) on draft.
             692          (ii) Beer sold pursuant to Subsection (3)(d)(i) shall be in a size of container that does
             693      not exceed two liters, except that beer may not be sold to an individual attendee in a container
             694      size that exceeds one liter.
             695          (4) Alcoholic beverages may not be stored, served, or sold in any place other than as
             696      designated in the on-premise banquet licensee's application, except that additional locations in
             697      or on the premises of an on-premise banquet licensee may be approved in accordance with
             698      guidelines approved by the commission as provided in Subsection 32A-4-402 (2).
             699          (5) (a) An attendee may only make alcoholic beverage purchases from and be served by
             700      a person employed, designated, and trained by the on-premise banquet licensee to sell and serve
             701      alcoholic beverages.


             702          (b) Notwithstanding Subsection (5)(a), an attendee who has purchased bottled wine
             703      from an employee of the on-premise banquet licensee may thereafter serve wine from the bottle
             704      to the attendee or others at the attendee's table.
             705          (c) Each attendee may have no more than two alcoholic beverages of any kind at a time
             706      before the attendee.
             707          (6) The alcoholic beverage storage area shall remain locked at all times other than those
             708      hours and days when alcoholic beverage sales are authorized by law.
             709          (7) [(a) Except as provided in Subsection (7)(b), alcoholic] Alcoholic beverages may be
             710      offered for sale, sold, served, or otherwise furnished from 10 a.m. to 1 a.m. seven days a week:
             711          [(i)] (a) at a banquet; or
             712          [(ii)] (b) in connection with room service.
             713          [(b) Notwithstanding Subsection (7)(a), a sale or service of liquor may not occur at a
             714      banquet or in connection with room service until after the polls are closed on the day of:]
             715          [(i) a regular general election;]
             716          [(ii) a regular primary election; or]
             717          [(iii) a statewide special election.]
             718          (8) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             719          (a) minor;
             720          (b) person actually, apparently, or obviously intoxicated;
             721          (c) known habitual drunkard; or
             722          (d) known interdicted person.
             723          (9) (a) (i) Liquor may be sold only at prices fixed by the commission.
             724          (ii) Liquor may not be sold at discount prices on any date or at any time.
             725          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             726      to the licensee.
             727          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             728      over consumption or intoxication.
             729          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain


             730      hours of the on-premise banquet licensee's business day such as a "happy hour."
             731          (e) The sale or service of more than one alcoholic beverage for the price of a single
             732      alcoholic beverage is prohibited.
             733          (f) An on-premise banquet licensee may not engage in a public promotion involving or
             734      offering free alcoholic beverages to the general public.
             735          (10) Alcoholic beverages may not be purchased for an attendee by:
             736          (a) the on-premise banquet licensee; or
             737          (b) any employee or agent of the on-premise banquet licensee.
             738          (11) An attendee of a banquet may not bring any alcoholic beverage into or onto, or
             739      remove any alcoholic beverage from the premises of a banquet.
             740          (12) (a) Except as otherwise provided in this title, the sale and service of alcoholic
             741      beverages by an on-premise banquet licensee at a banquet shall be made only for consumption at
             742      the location of the banquet.
             743          (b) The host of a banquet, an attendee, or any other person other than the on-premise
             744      banquet licensee or its employees, may not remove any alcoholic beverage from the premises of
             745      the banquet.
             746          (13) An on-premise banquet licensee employee shall remain at the banquet at all times
             747      when alcoholic beverages are being sold, served, or consumed at the banquet.
             748          (14) (a) An on-premise banquet licensee may not leave any unsold alcoholic beverages
             749      at the banquet following the conclusion of the banquet.
             750          (b) At the conclusion of a banquet, the on-premise banquet licensee or its employees,
             751      shall:
             752          (i) destroy any opened and unused alcoholic beverages that are not saleable, under
             753      conditions established by the department; and
             754          (ii) return to the on-premise banquet licensee's approved locked storage area any:
             755          (A) opened and unused alcoholic beverage that is saleable; and
             756          (B) unopened containers of alcoholic beverages.
             757          (15) Except as provided in Subsection (14), any open or sealed container of alcoholic


             758      beverages not sold or consumed at a banquet:
             759          (a) shall be stored by the on-premise banquet licensee in the licensee's approved locked
             760      storage area; and
             761          (b) may be used at more than one banquet.
             762          (16) An on-premise banquet licensee may not employ a minor to sell, serve, dispense, or
             763      otherwise furnish alcoholic beverages in connection with the licensee's banquet and room
             764      service activities.
             765          (17) An employee of an on-premise banquet licensee, while on duty, may not:
             766          (a) consume an alcoholic beverage; or
             767          (b) be intoxicated.
             768          (18) An on-premise banquet licensee shall prominently display at each banquet at which
             769      alcoholic beverages are sold or served:
             770          (a) a copy of the licensee's on-premise banquet license; and
             771          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             772      drugs is a serious crime that is prosecuted aggressively in Utah."
             773          (19) An on-premise banquet licensee may not on the premises of the hotel, resort
             774      facility, sports center, or convention center:
             775          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             776      Chapter 10, Part 11, Gambling;
             777          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             778      Part 11, Gambling; or
             779          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             780      the risking of something of value for a return or for an outcome when the return or outcome is
             781      based upon an element of chance, excluding the playing of an amusement device that confers
             782      only an immediate and unrecorded right of replay not exchangeable for value.
             783          (20) (a) An on-premise banquet licensee shall maintain accounting and such other
             784      records and documents as the commission or department may require.
             785          (b) An on-premise banquet licensee or person acting for the on-premise banquet


             786      licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the
             787      entries in any of the books of account or other documents of the on-premise banquet licensee
             788      required to be made, maintained, or preserved by this title or the rules of the commission for the
             789      purpose of deceiving the commission or department, or any of their officials or employees, is
             790      subject to:
             791          (i) the suspension or revocation of the on-premise banquet license; and
             792          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             793          (21) (a) For the purpose described in Subsection (21)(b), an on-premise banquet
             794      licensee shall provide the department with advance notice of a scheduled banquet in accordance
             795      with rules made by the commission in accordance with Title 63, Chapter 46a, Utah
             796      Administrative Rulemaking Act.
             797          (b) The advance notice required by Subsection (21)(a) is required to provide any of the
             798      following the opportunity to conduct a random inspection of a banquet:
             799          (i) an authorized representative of the commission or the department; or
             800          (ii) a law enforcement officer.
             801          (22) An on-premise banquet licensee shall maintain at least 50% of its total annual
             802      banquet gross receipts from the sale of food, not including:
             803          (a) mix for alcoholic beverages; and
             804          (b) charges in connection with the service of alcoholic beverages.
             805          (23) A person may not transfer an on-premise banquet license from one business
             806      location to another without prior written approval of the commission.
             807          (24) (a) An on-premise banquet licensee may not sell, transfer, assign, exchange, barter,
             808      give, or attempt in any way to dispose of the license to any other person, whether for monetary
             809      gain or not.
             810          (b) An on-premise banquet license has no monetary value for the purpose of any type of
             811      disposition.
             812          (25) (a) Room service of alcoholic beverages to a guest room of a hotel or resort
             813      facility shall be provided in person by an on-premise banquet licensee employee only to an adult


             814      guest in the guest room.
             815          (b) Alcoholic beverages may not be left outside a guest room for retrieval by a guest.
             816          (c) An on-premise banquet licensee may only provide alcoholic beverages for room
             817      service in sealed containers.
             818          Section 5. Section 32A-5-107 is amended to read:
             819           32A-5-107. Operational restrictions.
             820          Each club granted a private club license and the employees, management personnel, and
             821      members of the club shall comply with the following conditions and requirements. Failure to
             822      comply may result in a suspension or revocation of the license or other disciplinary action taken
             823      against individual employees or management personnel.
             824          (1) Each private club shall have a governing body that:
             825          (a) consists of three or more members of the club; and
             826          (b) holds regular meetings to:
             827          (i) review membership applications; and
             828          (ii) conduct any other business as required by the bylaws or house rules of the private
             829      club.
             830          (2) (a) Each private club may admit an individual as a member only on written
             831      application signed by the applicant, subject to:
             832          (i) the applicant paying an application fee as required by Subsection (4); and
             833          (ii) investigation, vote, and approval of a quorum of the governing body.
             834          (b) (i) Admissions shall be recorded in the official minutes of a regular meeting of the
             835      governing body.
             836          (ii) An application, whether approved or disapproved, shall be filed as a part of the
             837      official records of the licensee.
             838          (c) Notwithstanding Subsection (2)(a), a private club, in its discretion, may admit an
             839      applicant and immediately accord the applicant temporary privileges of a member until the
             840      governing body completes its investigation and votes on the application, subject to the following
             841      conditions:


             842          (i) the applicant shall:
             843          (A) submit a written application; and
             844          (B) pay the application fee required by Subsection (4);
             845          (ii) the governing body votes on the application at its next meeting which shall take
             846      place no later than 31 days following the day on which the application was submitted; and
             847          (iii) the applicant's temporary membership privileges are terminated if the governing
             848      body disapproves the application.
             849          (d) The spouse of a member of any class of private club is entitled to all the rights and
             850      privileges of the member:
             851          (i) to the extent permitted by the bylaws or house rules of the private club; and
             852          (ii) except to the extent restricted by this title.
             853          (e) The minor child of a member of a class A private club is entitled to all the rights and
             854      privileges of the member:
             855          (i) to the extent permitted by the bylaws or house rules of the private club; and
             856          (ii) except to the extent restricted by this title.
             857          (3) (a) Each private club shall maintain a current and complete membership record
             858      showing:
             859          (i) the date of application of each proposed member;
             860          (ii) each member's address;
             861          (iii) the date the governing body approved a member's admission;
             862          (iv) the date initiation fees and dues were assessed and paid; and
             863          (v) the serial number of the membership card issued to each member.
             864          (b) A current record shall also be kept indicating when members are dropped or
             865      resigned.
             866          (4) (a) Each private club shall establish in the club bylaws or house rules application
             867      fees and membership dues:
             868          (i) as established by commission rules; and
             869          (ii) which are collected from all members.


             870          (b) An application fee:
             871          (i) shall not be less than $4;
             872          (ii) shall be paid when the applicant applies for membership; and
             873          (iii) at the discretion of the private club, may be credited toward membership dues if the
             874      governing body approves the applicant as a member.
             875          (5) (a) Each private club may, in its discretion, allow an individual to be admitted to or
             876      use the club premises as a guest only under the following conditions:
             877          (i) each guest must be previously authorized by one of the following who agrees to host
             878      the guest into the club:
             879          (A) an active member of the club; or
             880          (B) a holder of a current visitor card;
             881          (ii) each guest must be known by the guest's host based on a preexisting bonafide
             882      business or personal relationship with the host prior to the guest's admittance to the club;
             883          (iii) each guest must be accompanied by the guest's host for the duration of the guest's
             884      visit to the club;
             885          (iv) each guest's host must remain on the club premises for the duration of the guest's
             886      visit to the club;
             887          (v) each guest's host is responsible for the cost of all services extended to the guest;
             888          (vi) each guest enjoys only those privileges derived from the guest's host for the
             889      duration of the guest's visit to the club;
             890          (vii) an employee of the club, while on duty, may not act as a host for a guest;
             891          (viii) an employee of the club, while on duty, may not attempt to locate a member or
             892      current visitor card holder to serve as a host for a guest with whom the member or visitor card
             893      holder has no acquaintance based on a preexisting bonafide business or personal relationship
             894      prior to the guest's arrival at the club; and
             895          (ix) a club and its employees may not enter into an agreement or arrangement with a
             896      club member or holder of a current visitor card to indiscriminately host members of the general
             897      public into the club as guests.


             898          (b) Notwithstanding Subsection (5)(a), previous authorization is not required if:
             899          (i) the licensee is a class B private club; and
             900          (ii) the guest is a member of the same fraternal organization as the private club licensee.
             901          (6) Each private club may, in its discretion, issue visitor cards to allow individuals to
             902      enter and use the club premises on a temporary basis under the following conditions:
             903          (a) each visitor card shall be issued for a period not to exceed three weeks;
             904          (b) a fee of not less than $4 shall be assessed for each visitor card issued;
             905          (c) a visitor card shall not be issued to a minor;
             906          (d) a holder of a visitor card may not host more than seven guests at one time;
             907          (e) each visitor card issued shall include:
             908          (i) the visitor's full name and signature;
             909          (ii) the date the card was issued;
             910          (iii) the date the card expires;
             911          (iv) the club's name; and
             912          (v) the serial number of the card; and
             913          (f) (i) the club shall maintain a current record of the issuance of each visitor card on the
             914      club premises; and
             915          (ii) the record described in Subsection (6)(f)(i) shall:
             916          (A) be available for inspection by the department; and
             917          (B) include:
             918          (I) the name of the person to whom the card was issued;
             919          (II) the date the card was issued;
             920          (III) the date the card expires; and
             921          (IV) the serial number of the card.
             922          (7) A private club may not sell alcoholic beverages to or allow any patron to be
             923      admitted to or use the club premises other than:
             924          (a) a member;
             925          (b) a visitor who holds a valid visitor card issued under Subsection (6); or


             926          (c) a guest of:
             927          (i) a member; or
             928          (ii) a holder of a current visitor card.
             929          (8) (a) A minor may not be:
             930          (i) a member, officer, director, or trustee of a private club;
             931          (ii) issued a visitor card;
             932          (iii) admitted into, use, or be on the premises of any lounge or bar area, as defined by
             933      commission rule, of any private club except to the extent authorized under Subsection (8)(c)(ii);
             934          (iv) admitted into, use, or be on the premises of any class D private club:
             935          (A) that operates as a sexually oriented business as defined by local ordinance; or
             936          (B) when a sexually oriented entertainer is performing on the premises; or
             937          (v) admitted into, use, or be on the premises of a class D private club except to the
             938      extent authorized under Subsections (8)(b) through (g).
             939          (b) Except as provided in Subsection (8)(a)(iv), at the discretion of a class D private
             940      club, a minor may be admitted into, use, or be on the premises of a class D private club under
             941      the following circumstances:
             942          (i) during periods when no alcoholic beverages are sold, served, otherwise furnished, or
             943      consumed on the premises, but in no event later than 1 p.m.;
             944          (ii) when accompanied at all times by a member or holder of a current visitor card who
             945      is the minor's parent, legal guardian, or spouse; and
             946          (iii) the private club has a full kitchen and is licensed by the local jurisdiction as a food
             947      service provider.
             948          (c) A minor may be employed by a class D private club on the premises of the club if:
             949          (i) the parent or legal guardian of the minor owns or operates the class D private club;
             950      or
             951          (ii) the minor performs maintenance and cleaning services during the hours when the
             952      club is not open for business.
             953          (d) (i) Subject to Subsection (8)(d)(ii), a minor who is at least 18 years of age may be


             954      admitted into, use, or be on the premises of a dance or concert hall if:
             955          (A) the dance or concert hall is located:
             956          (I) on the premises of a class D private club; or
             957          (II) on the property that immediately adjoins the premises of and is operated by a class
             958      D private club; and
             959          (B) the commission has issued the class D private club a permit to operate a minor
             960      dance or concert hall based on the criteria described in Subsection (8)(d)(iii).
             961          (ii) If the dance or concert hall is located on the premises of a class D private club, a
             962      minor must be properly hosted in accordance with Subsection (5) by:
             963          (A) a member; or
             964          (B) a holder of a current visitor card.
             965          (iii) The commission may issue a minor dance or concert hall permit if:
             966          (A) the club's lounge, bar, and alcoholic beverage consumption area is:
             967          (I) not accessible to minors;
             968          (II) clearly defined; and
             969          (III) separated from the dance or concert hall area by walls, multiple floor levels, or
             970      other substantial physical barriers;
             971          (B) any bar or dispensing area is not visible to minors;
             972          (C) no consumption of alcoholic beverages may occur in:
             973          (I) the dance or concert hall area; or
             974          (II) any area of the club accessible to a minor;
             975          (D) the club maintains sufficient security personnel to prevent the passing of beverages
             976      from the club's lounge, bar, or alcoholic beverage consumption areas to:
             977          (I) the dance or concert hall area; or
             978          (II) any area of the club accessible to a minor;
             979          (E) there are separate entrances, exits, and restroom facilities from the club's lounge,
             980      bar, and alcoholic beverage consumption areas than for:
             981          (I) the dance or concert hall area; or


             982          (II) any area accessible to a minor; and
             983          (F) the club complies with any other restrictions imposed by the commission by rule.
             984          (e) A minor under 18 years of age who is accompanied at all times by a parent or legal
             985      guardian who is a member or holder of a current visitor card may be admitted into, use, or be on
             986      the premises of a concert hall described in Subsection (8)(d)(i) if:
             987          (i) all requirements of Subsection (8)(d) are met; and
             988          (ii) all signage, product, and dispensing equipment containing recognition of alcoholic
             989      beverages is not visible to the minor.
             990          (f) A minor under 18 years of age but who is 14 years of age or older who is not
             991      accompanied by a parent or legal guardian may be admitted into, use, or be on the premises of a
             992      concert hall described in Subsection (8)(d)(i) if:
             993          (i) all requirements of Subsections (8)(d) and (8)(e)(ii) are met; and
             994          (ii) there is no alcoholic beverage, sales, service, or consumption on the premises of the
             995      class D private club.
             996          (g) The commission may suspend or revoke a minor dance or concert permit issued to a
             997      class D private club and suspend or revoke the license of the class D private club if:
             998          (i) the club fails to comply with the restrictions in Subsection (8)(d), (e), or (f);
             999          (ii) the club sells, serves, or otherwise furnishes alcoholic beverages to a minor;
             1000          (iii) the licensee or a supervisory or managerial level employee of the private club is
             1001      convicted under Title 58, Chapter 37, Utah Controlled Substances Act, on the basis of activities
             1002      that occurred on:
             1003          (A) the licensed premises; or
             1004          (B) the dance or concert hall that is located on property that immediately adjoins the
             1005      premises of and is operated by the class D private club;
             1006          (iv) there are three or more convictions of patrons of the private club under Title 58,
             1007      Chapter 37, Utah Controlled Substances Act, based on activities that occurred on:
             1008          (A) the licensed premises; or
             1009          (B) the dance or concert hall that is located on property that immediately adjoins the


             1010      premises of and is operated by the class D private club;
             1011          (v) there is more than one conviction:
             1012          (A) of:
             1013          (I) the licensee;
             1014          (II) an employee of the licensee;
             1015          (III) an entertainer contracted by the licensee; or
             1016          (IV) a patron of the private club; and
             1017          (B) made on the basis of lewd acts or lewd entertainment prohibited by this title that
             1018      occurred on:
             1019          (I) the licensed premises; or
             1020          (II) the dance or concert hall that is located on property that immediately adjoins the
             1021      premises of and is operated by the class D private club; or
             1022          (vi) the commission finds acts or conduct contrary to the public welfare and morals
             1023      involving lewd acts or lewd entertainment prohibited by this title that occurred on:
             1024          (A) the licensed premises; or
             1025          (B) the dance or concert hall that is located on property that immediately adjoins the
             1026      premises of and is operated by the class D private club.
             1027          (h) Nothing in this Subsection (8) shall prohibit a class D private club from selling,
             1028      serving, or otherwise furnishing alcoholic beverages in a dance or concert area located on the
             1029      club premises on days and times when the club does not allow minors into those areas.
             1030          (i) Nothing in Subsections (8)(a) through (g) precludes a local authority from being
             1031      more restrictive of a minor's admittance to, use of, or presence on the premises of any private
             1032      club.
             1033          (9) (a) Each private club shall maintain an expense ledger or record showing in detail all
             1034      expenditures separated by payments for:
             1035          (i) malt or brewed beverages;
             1036          (ii) liquor;
             1037          (iii) food;


             1038          (iv) detailed payroll;
             1039          (v) entertainment;
             1040          (vi) rent;
             1041          (vii) utilities;
             1042          (viii) supplies; and
             1043          (ix) all other expenditures.
             1044          (b) The record required by this Subsection (9) shall be:
             1045          (i) kept in a form approved by the department; and
             1046          (ii) balanced each month.
             1047          (c) Each expenditure shall be supported by:
             1048          (i) delivery tickets;
             1049          (ii) invoices;
             1050          (iii) receipted bills;
             1051          (iv) canceled checks;
             1052          (v) petty cash vouchers; or
             1053          (vi) other sustaining data or memoranda.
             1054          (d) All invoices and receipted bills for the current calendar or fiscal year documenting
             1055      purchases made by the club shall also be maintained.
             1056          (10) (a) Each private club shall maintain a minute book that is posted currently by the
             1057      club.
             1058          (b) The minute book required by this Subsection (10) shall contain the minutes of all
             1059      regular and special meetings of the governing body.
             1060          (c) Membership lists shall also be maintained.
             1061          (11) (a) Each private club shall maintain current copies of the club's current bylaws and
             1062      current house rules.
             1063          (b) Changes in the bylaws or house rules:
             1064          (i) are not effective unless submitted to the department within ten days after adoption;
             1065      and


             1066          (ii) become effective 15 days after received by the department unless rejected by the
             1067      department before the expiration of the 15-day period.
             1068          (12) Each private club shall maintain accounting and other records and documents as
             1069      the department may require.
             1070          (13) Any club or person acting for the club, who knowingly forges, falsifies, alters,
             1071      cancels, destroys, conceals, or removes the entries in any of the books of account or other
             1072      documents of the club required to be made, maintained, or preserved by this title or the rules of
             1073      the commission for the purpose of deceiving the commission or the department, or any of their
             1074      officials or employees, is subject to:
             1075          (a) the suspension or revocation of the club's license; and
             1076          (b) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1077          (14) (a) Each private club shall maintain and keep all the records required by this
             1078      section and all other books, records, receipts, and disbursements maintained or used by the
             1079      licensee, as the department requires, for a minimum period of three years.
             1080          (b) All records, books, receipts, and disbursements are subject to inspection by
             1081      authorized representatives of the commission and the department.
             1082          (c) The club shall allow the department, through its auditors or examiners, to audit all
             1083      records of the club at times the department considers advisable.
             1084          (d) The department shall audit the records of the licensee at least once annually.
             1085          (15) Each private club shall own or lease premises suitable for the club's activities.
             1086          (16) (a) A private club may not maintain facilities in any manner that barricades or
             1087      conceals the club operation.
             1088          (b) Any member of the commission, authorized department personnel, or any peace
             1089      officer shall, upon presentation of credentials, be admitted immediately to the club and
             1090      permitted without hindrance or delay to inspect completely the entire club premises and all
             1091      books and records of the licensee, at any time during which the same are open for the
             1092      transaction of business to its members.
             1093          (17) Any public advertising related to a private club by the following shall clearly


             1094      identify a club as being "a private club for members":
             1095          (a) the private club;
             1096          (b) the employees or agents of the private club; or
             1097          (c) any person under a contract or agreement with the club.
             1098          (18) A private club must have food available at all times when alcoholic beverages are
             1099      sold, served, or consumed on the premises.
             1100          (19) (a) Liquor may not be purchased by a private club licensee except from state stores
             1101      or package agencies.
             1102          (b) Liquor purchased in accordance with Subsection (19)(a) may be transported by the
             1103      licensee from the place of purchase to the licensed premises.
             1104          (c) Payment for liquor shall be made in accordance with rules established by the
             1105      commission.
             1106          (20) A private club licensee may sell or provide any primary spirituous liquor only in a
             1107      quantity not to exceed one ounce per beverage dispensed through a calibrated metered
             1108      dispensing system approved by the department in accordance with commission rules adopted
             1109      under this title, except that:
             1110          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1111      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1112      restrictions:
             1113          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of a
             1114      primary spirituous liquor;
             1115          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             1116          (iii) the private club licensee shall designate a location where flavorings are stored on
             1117      the floor plan provided to the department; and
             1118          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             1119          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1120      system if used:
             1121          (i) as a flavoring on desserts; and


             1122          (ii) in the preparation of flaming food dishes, drinks, and desserts; and
             1123          (c) each club patron may have no more than 2.75 ounces of spirituous liquor at a time
             1124      before the patron.
             1125          (21) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             1126      exceed five ounces per glass or individual portion.
             1127          (ii) An individual portion may be served to a patron in more than one glass as long as
             1128      the total amount of wine does not exceed five ounces.
             1129          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1130      Subsection (25)(c).
             1131          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed
             1132      by the commission to tables of four or more persons.
             1133          (ii) Wine may be sold and served in containers not exceeding 750 milliliters at prices
             1134      fixed by the commission to tables of less than four persons.
             1135          (c) A wine service may be performed and a service charge assessed by the private club
             1136      as authorized by commission rule for wine purchased at the private club.
             1137          (22) (a) Heavy beer may be served in original containers not exceeding one liter at
             1138      prices fixed by the commission.
             1139          (b) A service charge may be assessed by the private club for heavy beer purchased at
             1140      the private club.
             1141          (23) (a) (i) Subject to Subsection (23)(a)(ii), a private club licensed to sell liquor may
             1142      sell beer for on-premise consumption:
             1143          (A) in an open container; and
             1144          (B) on draft.
             1145          (ii) Beer sold pursuant to Subsection (23)(a)(i) shall be in a size of container that does
             1146      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1147      container that exceeds one liter.
             1148          (b) (i) A private club licensed under this chapter that sells beer pursuant to Subsection
             1149      (23)(a):


             1150          (A) may do so without obtaining a separate on-premise beer retailer license from the
             1151      commission; and
             1152          (B) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1153      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             1154      inconsistent with or less restrictive than the operational restrictions under this chapter.
             1155          (ii) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1156      Licenses, required by Subsection (23)(b)(i) may result in a suspension or revocation of the
             1157      private club's:
             1158          (A) state liquor license; and
             1159          (B) alcoholic beverage license issued by the local authority.
             1160          (24) Alcoholic beverages may not be stored, served, or sold in any place other than as
             1161      designated in the licensee's application, unless the licensee first applies for and receives approval
             1162      from the department for a change of location within the private club.
             1163          (25) (a) A patron may only make alcoholic beverage purchases in the private club from
             1164      and be served by a person employed, designated, and trained by the licensee to sell, dispense,
             1165      and serve alcoholic beverages.
             1166          (b) Notwithstanding Subsection (25)(a), a patron who has purchased bottled wine from
             1167      an employee of the private club or has carried bottled wine onto the premises of the private club
             1168      pursuant to Subsection (31) may thereafter serve wine from the bottle to the patron or others at
             1169      the patron's table.
             1170          (c) Each club patron may have no more than two alcoholic beverages of any kind at a
             1171      time before the patron.
             1172          (26) The liquor storage area shall remain locked at all times other than those hours and
             1173      days when liquor sales and service are authorized by law.
             1174          (27) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             1175      private club [during the following days or hours: (i) until after the polls are closed on the day of
             1176      any: (A) regular general election; (B) regular primary election; or (C) statewide special
             1177      election; (ii) until after the polls are closed on the day of any municipal, local district, special


             1178      service district, or school election, but only: (A) within the boundaries of the municipality, local
             1179      district, special service district, or school district; and (B) if required by local ordinance; and
             1180      (iii)] on any [other] day after 1 a.m. [and] or before 10 a.m.
             1181          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             1182      Licenses, for on-premise beer licenses.
             1183          (c) (i) Notwithstanding Subsections (27)(a) and (b), a private club shall remain open for
             1184      one hour after the private club ceases the sale and service of alcoholic beverages during which
             1185      time a patron of the club may finish consuming:
             1186          (A) any single drink containing spirituous liquor;
             1187          (B) a single serving of wine not exceeding five ounces;
             1188          (C) a single serving of heavy beer; or
             1189          (D) a single serving of beer not exceeding 26 ounces.
             1190          (ii) A club is not required to remain open:
             1191          (A) after all patrons have vacated the premises; or
             1192          (B) during an emergency.
             1193          (d) Between the hours of 2 a.m. and 10 a.m. on any day a private club may not allow a
             1194      patron to remain on the premises to consume alcoholic beverages on the premises.
             1195          (28) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             1196          (a) minor;
             1197          (b) person actually, apparently, or obviously intoxicated;
             1198          (c) known habitual drunkard; or
             1199          (d) known interdicted person.
             1200          (29) (a) (i) Liquor may be sold only at prices fixed by the commission.
             1201          (ii) Liquor may not be sold at discount prices on any date or at any time.
             1202          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             1203      to the licensee.
             1204          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1205      over consumption or intoxication.


             1206          (d) The price of a single serving of a primary spirituous liquor shall be the same whether
             1207      served as a single drink or in conjunction with another alcoholic beverage.
             1208          (e) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1209      hours of the private club's business day such as a "happy hour."
             1210          (f) The sale or service of more than one alcoholic beverage for the price of a single
             1211      alcoholic beverage is prohibited.
             1212          (g) The sale or service of an indefinite or unlimited number of alcoholic beverages
             1213      during any set period for a fixed price is prohibited.
             1214          (h) A private club licensee may not engage in a promotion involving or offering free
             1215      alcoholic beverages to patrons of the club.
             1216          (30) Alcoholic beverages may not be purchased for a patron of the private club by:
             1217          (a) the licensee; or
             1218          (b) any employee or agent of the licensee.
             1219          (31) (a) A person may not bring onto the premises of a private club licensee any
             1220      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             1221      discretion of the licensee, bottled wine onto the premises of any private club licensee for
             1222      on-premise consumption.
             1223          (b) Except bottled wine under Subsection (31)(a), a private club or its officers,
             1224      managers, employees, or agents may not allow:
             1225          (i) a person to bring onto the private club premises any alcoholic beverage for
             1226      consumption on the private club premises; or
             1227          (ii) consumption of alcoholic beverages described in Subsection (31)(b)(i) on the
             1228      premises of the private club.
             1229          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             1230      or other representative of the licensee upon entering the private club.
             1231          (d) A wine service may be performed and a service charge assessed by the private club
             1232      as authorized by commission rule for wine carried in by a patron.
             1233          (32) (a) Except as provided in Subsection (32)(b), a private club and its employees may


             1234      not permit a patron of the club to carry from the club premises an open container that:
             1235          (i) is used primarily for drinking purposes; and
             1236          (ii) contains any alcoholic beverage.
             1237          (b) A patron may remove the unconsumed contents of a bottle of wine if before
             1238      removal the bottle has been recorked or recapped.
             1239          (33) (a) A minor may not be employed by any class A, B, or C private club to sell,
             1240      dispense, or handle any alcoholic beverage.
             1241          (b) Notwithstanding Subsection (33)(a), a minor who is at least 16 years of age may be
             1242      employed by a class A or C private club to enter the sale at a cash register or other sales
             1243      recording device.
             1244          (c) Except to the extent authorized in Subsection (8)(c), a minor may not be employed
             1245      by or be on the premises of any class D private club.
             1246          (d) A minor may not be employed to work in any lounge or bar area of any class A, B,
             1247      or C private club.
             1248          (34) An employee of a private club, while on duty, may not:
             1249          (a) consume an alcoholic beverage; or
             1250          (b) be intoxicated.
             1251          (35) (a) A private club may not charge for the service or supply of glasses, ice, or
             1252      mixers unless:
             1253          (i) the charges are fixed in the house rules of the club; and
             1254          (ii) a copy of the house rules is kept on the club premises and available at all times for
             1255      examination by patrons of the club.
             1256          (b) A charge or fee made in connection with the sale, service, or consumption of liquor
             1257      may be stated in food or alcoholic beverage menus including:
             1258          (i) a set-up charge;
             1259          (ii) a service charge; or
             1260          (iii) a chilling fee.
             1261          (36) Each private club licensee shall display in a prominent place in the private club:


             1262          (a) the private club license that is issued by the department;
             1263          (b) a list of the types and brand names of liquor being served through its calibrated
             1264      metered dispensing system; and
             1265          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1266      drugs is a serious crime that is prosecuted aggressively in Utah."
             1267          (37) A private club may not on the premises of the private club:
             1268          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             1269      Chapter 10, Part 11, Gambling;
             1270          (b) have any video gaming device, as defined and proscribed in Title 76, Chapter 10,
             1271      Part 11, Gambling; or
             1272          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1273      the risking of something of value for a return or for an outcome when the return or outcome is
             1274      based upon an element of chance, excluding the playing of an amusement device that confers
             1275      only an immediate and unrecorded right of replay not exchangeable for value.
             1276          (38) (a) A private club may not close or cease operation for a period longer than 240
             1277      hours, unless:
             1278          (i) the private club licensee notifies the department in writing at least seven days before
             1279      the closing; and
             1280          (ii) the closure or cessation of operation is first approved by the department.
             1281          (b) Notwithstanding Subsection (38)(a), in the case of emergency closure, immediate
             1282      notice of closure shall be made to the department by telephone.
             1283          (c) The department may authorize a closure or cessation of operation for a period not
             1284      to exceed 60 days. The department may extend the initial period an additional 30 days upon
             1285      written request of the private club and upon a showing of good cause. A closure or cessation of
             1286      operation may not exceed a total of 90 days without commission approval.
             1287          (d) The notice required by Subsection (38)(a) shall include:
             1288          (i) the dates of closure or cessation of operation;
             1289          (ii) the reason for the closure or cessation of operation; and


             1290          (iii) the date on which the licensee will reopen or resume operation.
             1291          (e) Failure of the licensee to provide notice and to obtain department authorization
             1292      prior to closure or cessation of operation shall result in an automatic forfeiture of:
             1293          (i) the license; and
             1294          (ii) the unused portion of the license fee for the remainder of the license year effective
             1295      immediately.
             1296          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             1297      result in an automatic forfeiture of:
             1298          (i) the license; and
             1299          (ii) the unused portion of the club's license fee for the remainder of the license year.
             1300          (39) A private club license may not be transferred from one location to another, without
             1301      prior written approval of the commission.
             1302          (40) (a) A private club licensee, may not sell, transfer, assign, exchange, barter, give, or
             1303      attempt in any way to dispose of the license to any other person, whether for monetary gain or
             1304      not.
             1305          (b) A private club license has no monetary value for the purpose of any type of
             1306      disposition.
             1307          Section 6. Section 32A-7-106 is amended to read:
             1308           32A-7-106. Operational restrictions.
             1309          (1) (a) Any organization granted a single event permit and any person involved in the
             1310      storage, sale, or service of alcoholic beverages at the event for which the permit is issued, shall
             1311      abide by:
             1312          (i) this title;
             1313          (ii) the rules of the commission; and
             1314          (iii) the special conditions and requirements provided in this section.
             1315          (b) Failure to comply with Subsection (1)(a):
             1316          (i) may result in:
             1317          (A) an immediate revocation of the permit;


             1318          (B) forfeiture of the surety bond; and
             1319          (C) immediate seizure of all alcoholic beverages present at the event; and
             1320          (ii) disqualifies the organization from applying for a single event permit under this
             1321      chapter, or a temporary special event beer permit under Chapter 10, Part 3, Temporary Special
             1322      Event Beer Permits, for a period of three years from the date of revocation of the permit.
             1323          (c) Any alcoholic beverages seized under this Subsection (1) shall be returned to the
             1324      organization after the event if forfeiture proceedings are not instituted under Section
             1325      32A-13-103 .
             1326          (2) Special conditions and requirements for single event permittees include the
             1327      following:
             1328          (a) (i) All persons involved in the storage, sale, or service of alcoholic beverages at the
             1329      event do so under the supervision and direction of the permittee.
             1330          (ii) All persons involved in the sale or service of alcoholic beverages at the event may
             1331      not, while on duty:
             1332          (A) consume an alcoholic beverage; or
             1333          (B) be intoxicated.
             1334          (b) (i) All liquor stored, sold, served, and consumed at the event shall be purchased by
             1335      the permittee from a state store or package agency.
             1336          (ii) All beer purchased by the permittee shall be purchased from:
             1337          (A) a licensed beer wholesaler; or
             1338          (B) a licensed beer retailer.
             1339          (iii) All alcoholic beverages are considered under the control of the permittee during the
             1340      event.
             1341          (iv) Attendees of the event may not bring any alcoholic beverages onto the premises of
             1342      the event.
             1343          (c) A permittee may not charge more than the maximum amount set forth in the permit
             1344      for any alcoholic beverage.
             1345          (d) Each permittee shall post in a prominent place in the area in which alcoholic


             1346      beverages are being sold, served, and consumed, a copy of the permit, together with a list of the
             1347      operational restrictions and requirements of single event permittees set forth in this section.
             1348          (e) Alcoholic beverages purchased for the event may not be stored, sold, served, or
             1349      consumed in any location other than that described in the application and designated on the
             1350      permit unless the permittee first applies for and receives approval from the commission for a
             1351      change of location.
             1352          (f) (i) A single event permittee may sell or provide a primary spirituous liquor only in a
             1353      quantity not to exceed one ounce per beverage except that additional spirituous liquor may be
             1354      used in a beverage if:
             1355          (A) used as a secondary flavoring ingredient;
             1356          (B) used in conjunction with the primary spirituous liquor;
             1357          (C) the secondary ingredient is not the only spirituous liquor in the beverage; and
             1358          (D) each attendee may have no more than 2.75 ounces of spirituous liquor at a time
             1359      before the attendee.
             1360          (ii) Spirituous liquor need not be dispensed through a calibrated metered dispensing
             1361      system.
             1362          (g) (i) (A) Wine may be sold and served by the glass or an individual portion that does
             1363      not exceed five ounces per glass or individual portion.
             1364          (B) An individual portion may be served to an attendee in more than one glass as long
             1365      as the total amount of wine does not exceed five ounces.
             1366          (C) An individual portion of wine is considered to be one alcoholic beverage under
             1367      Subsection (2)(p).
             1368          (ii) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed by
             1369      the commission.
             1370          (iii) A wine service may be performed and a service charge assessed by the single event
             1371      permittee as authorized by commission rule for wine purchased at the event.
             1372          (h) (i) Heavy beer may be served in original containers not exceeding one liter at prices
             1373      fixed by the commission.


             1374          (ii) A service charge may be assessed by the single event permittee as authorized by
             1375      commission rule for heavy beer purchased at the event.
             1376          (i) (i) Subject to Subsection (2)(i)(ii), beer may be sold for on-premise consumption:
             1377          (A) in an open container; and
             1378          (B) on draft.
             1379          (ii) Beer sold pursuant to Subsection (2)(i)(i) shall be in a size of container that does
             1380      not exceed two liters, except that beer may not be sold to an individual attendee in a size of
             1381      container that exceeds one liter.
             1382          (j) (i) Alcoholic beverages may not be sold, served, or consumed between the hours of
             1383      1 a.m. and 10 a.m.
             1384          (ii) This Subsection (2)(j) does not preclude a local authority from being more
             1385      restrictive with respect to the hours of sale, service, or consumption of alcoholic beverages at a
             1386      temporary single event.
             1387          [(k) Alcoholic beverages may not be sold, served, or otherwise furnished until after the
             1388      polls are closed on the day of any:]
             1389          [(i) regular general election;]
             1390          [(ii) regular primary election; or]
             1391          [(iii) statewide special election.]
             1392          [(l)] (k) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             1393          (i) minor;
             1394          (ii) person actually, apparently, or obviously intoxicated;
             1395          (iii) known habitual drunkard; or
             1396          (iv) known interdicted person.
             1397          [(m)] (l) (i) (A) Liquor may be sold only at prices fixed by the commission.
             1398          (B) Liquor may not be sold at discount prices on any date or at any time.
             1399          (ii) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             1400      to the permittee.
             1401          (iii) An alcoholic beverage may not be sold at a price that encourages over consumption


             1402      or intoxication.
             1403          (iv) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1404      hours of the day of the permitted event.
             1405          (v) The sale or service of more than one alcoholic beverage for the price of a single
             1406      alcoholic beverage is prohibited.
             1407          (vi) The permittee may not engage in a public promotion involving or offering free
             1408      alcoholic beverages to the general public.
             1409          [(n)] (m) A single event permittee and its employees may not permit an attendee to
             1410      carry from the premises an open container that:
             1411          (i) is used primarily for drinking purposes; and
             1412          (ii) contains any alcoholic beverage.
             1413          [(o)] (n) A minor may not sell, serve, dispense, or handle any alcoholic beverage at the
             1414      event.
             1415          [(p) Each] (o) An attendee may have no more than one alcoholic beverage of any kind
             1416      at a time before the patron.
             1417          (3) The permittee shall maintain an expense and revenue ledger or record showing:
             1418          (a) expenditures made for liquor and beer, set-ups, and other ingredients and
             1419      components of alcoholic beverages; and
             1420          (b) the revenue from sale of alcoholic beverages.
             1421          (4) A single event permit may not be transferred.
             1422          (5) A single event permittee may not on the premises serviced by the single event
             1423      permittee:
             1424          (a) engage in or allow any form of gambling, as defined and proscribed in Title 76,
             1425      Chapter 10, Part 11, Gambling;
             1426          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1427      Part 11, Gambling; or
             1428          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1429      the risking of something of value for a return or for an outcome when the return or outcome is


             1430      based upon an element of chance, excluding the playing of an amusement device that confers
             1431      only an immediate and unrecorded right of replay not exchangeable for value.


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