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

S.B. 211 Enrolled

             1     

ALCOHOLIC BEVERAGE CONTROL

             2     
AMENDMENTS

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Curtis S. Bramble

             6     
House Sponsor: Stephen H. Urquhart

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Alcoholic Beverage Control Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies definition provisions;
             14          .    addresses presentation of proof of age;
             15          .    enacts the Malted Beverage Act, including:
             16              .    providing for the treatment of a flavored malt beverage as a liquor;
             17              .    addressing approval of the label and packaging of a malt beverage; and
             18              .    providing transition protections;
             19          .    enacts provisions related to criminal background checks;
             20          .    addresses proximity restrictions;
             21          .    addresses markups;
             22          .    adjusts quota requirements for licenses;
             23          .    addresses the dispensing of spirituous liquor;
             24          .    addresses the amount of spirituous liquor that may be before a patron or attendee;
             25          .    prohibits conduct related to controlled substances and drug paraphernalia;
             26          .    modifies requirements related to price lists and private clubs;
             27          .    establishes requirements related to the display of beer;
             28          .    expands provisions prohibiting operation without a license or permit; and
             29          .    makes technical and conforming amendments.


             30      Monies Appropriated in this Bill:
             31          This bill appropriates:
             32          .    as an ongoing appropriation subject to future budget constraints, $1,589,100 from
             33      the Liquor Control Fund for fiscal year 2008-09 to the Division of Substance Abuse
             34      and Mental Health within the Department of Human Services.
             35      Other Special Clauses:
             36          None
             37      Utah Code Sections Affected:
             38      AMENDS:
             39          32A-1-105, as last amended by Laws of Utah 2007, Chapter 284
             40          32A-1-116, as last amended by Laws of Utah 2007, Chapter 284
             41          32A-1-119, as last amended by Laws of Utah 2007, Chapter 284
             42          32A-1-122, as last amended by Laws of Utah 2007, Chapter 284
             43          32A-1-302, as last amended by Laws of Utah 2002, Chapter 161
             44          32A-1-304, as last amended by Laws of Utah 2002, Chapter 161
             45          32A-2-101, as last amended by Laws of Utah 2003, Chapters 292 and 314
             46          32A-3-101, as last amended by Laws of Utah 2003, Chapters 292 and 314
             47          32A-3-102, as last amended by Laws of Utah 2003, Chapter 314
             48          32A-4-101, as last amended by Laws of Utah 2006, Chapter 162
             49          32A-4-102, as last amended by Laws of Utah 2007, Chapter 284
             50          32A-4-104, as renumbered and amended by Laws of Utah 1990, Chapter 23
             51          32A-4-106, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
             52          32A-4-206, as last amended by Laws of Utah 2007, Chapters 284 and 341
             53          32A-4-302, as last amended by Laws of Utah 2006, Chapter 162
             54          32A-4-303, as last amended by Laws of Utah 2007, Chapter 284
             55          32A-4-305, as enacted by Laws of Utah 2003, Chapter 314
             56          32A-4-307, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
             57          32A-4-401, as last amended by Laws of Utah 2007, Chapter 284


             58          32A-4-402, as last amended by Laws of Utah 2007, Chapter 284
             59          32A-4-406, as last amended by Laws of Utah 2007, Chapters 284 and 341
             60          32A-5-101, as last amended by Laws of Utah 2006, Chapter 162
             61          32A-5-102, as last amended by Laws of Utah 2007, Chapter 284
             62          32A-5-104, as last amended by Laws of Utah 2003, Chapter 314
             63          32A-5-107, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
             64          32A-7-101, as last amended by Laws of Utah 2004, Chapter 268
             65          32A-7-106, as last amended by Laws of Utah 2007, Chapters 284 and 341
             66          32A-8-101, as last amended by Laws of Utah 2003, Chapter 314
             67          32A-8-401, as last amended by Laws of Utah 2004, Chapter 268
             68          32A-8-501, as last amended by Laws of Utah 2003, Chapter 314
             69          32A-8-503, as last amended by Laws of Utah 2004, Chapter 268
             70          32A-8-505, as last amended by Laws of Utah 2007, Chapter 284
             71          32A-10-101, as last amended by Laws of Utah 2007, Chapter 284
             72          32A-10-102, as last amended by Laws of Utah 2007, Chapter 284
             73          32A-10-201, as last amended by Laws of Utah 2006, Chapter 162
             74          32A-10-202, as last amended by Laws of Utah 2007, Chapter 284
             75          32A-10-204, as last amended by Laws of Utah 1991, Chapter 5
             76          32A-10-206, as last amended by Laws of Utah 2007, Chapters 284 and 341
             77          32A-10-306, as last amended by Laws of Utah 2007, Chapters 284 and 341
             78          32A-11-106, as last amended by Laws of Utah 2004, Chapter 268
             79          32A-12-212, as last amended by Laws of Utah 2005, Chapter 152
             80          32A-12-222, as last amended by Laws of Utah 2004, Chapter 268
             81          32A-12-301, as last amended by Laws of Utah 2006, Chapter 162
             82          32A-12-307, as last amended by Laws of Utah 2003, Chapter 314
             83          32A-12-603, as last amended by Laws of Utah 2004, Chapter 268
             84          53-10-102, as last amended by Laws of Utah 2000, Chapter 1
             85          76-5-113, as last amended by Laws of Utah 2004, Chapter 280


             86      ENACTS:
             87          32A-1-701, Utah Code Annotated 1953
             88          32A-1-702, Utah Code Annotated 1953
             89          32A-1-703, Utah Code Annotated 1953
             90          32A-1-704, Utah Code Annotated 1953
             91          32A-1-801, Utah Code Annotated 1953
             92          32A-1-802, Utah Code Annotated 1953
             93          32A-1-803, Utah Code Annotated 1953
             94          32A-1-804, Utah Code Annotated 1953
             95          32A-1-805, Utah Code Annotated 1953
             96          32A-1-806, Utah Code Annotated 1953
             97          32A-1-807, Utah Code Annotated 1953
             98          32A-1-808, Utah Code Annotated 1953
             99          32A-1-809, Utah Code Annotated 1953
             100     
             101      Be it enacted by the Legislature of the state of Utah:
             102          Section 1. Section 32A-1-105 is amended to read:
             103           32A-1-105. Definitions.
             104          As used in this title:
             105          (1) "Airport lounge" means a place of business licensed to sell an alcoholic [beverages]
             106      beverage, at retail, for consumption on its premises located at an international airport with a
             107      United States Customs office on the premises of the international airport.
             108          (2) "Alcoholic [beverages" means "beer" and "liquor"] beverage" means the following
             109      as the [terms are] term is defined in this section[.]:
             110          (a) beer;
             111          (b) flavored malt beverage; and
             112          (c) liquor, which on or after October 1, 2008, includes a flavored malt beverage.
             113          (3) (a) "Alcoholic [products] product" means [all products] a product that:


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


             142          (i) contains alcohol in the percentages described in Subsection (5)(a); and
             143          (ii) is referred to as:
             144          [(A) malt liquor;]
             145          [(B) malted beverages; or]
             146          [(C) malt coolers.]
             147          (A) beer;
             148          (B) ale;
             149          (C) porter;
             150          (D) stout;
             151          (E) lager; or
             152          (F) a malt or malted beverage.
             153          (d) On or after October 1, 2008, "beer" does not include a flavored malt beverage.
             154          (6) (a) "Beer retailer" means a business that is:
             155          (i) engaged, primarily or incidentally, in the retail sale of beer to [patrons] a patron,
             156      whether for consumption on or off the business premises; and
             157          (ii) licensed to sell beer by:
             158          (A) the commission;
             159          (B) a local authority; or
             160          (C) both the commission and a local authority.
             161          (b) (i) "Off-premise beer retailer" means a business that is engaged in the retail sale of
             162      beer to [patrons] a patron for consumption off the beer retailer's premises.
             163          (ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
             164          (c) "On-premise beer retailer" means a business that is engaged in the sale of beer to
             165      [patrons] a patron for consumption on the beer retailer's premises, regardless of whether the
             166      business sells beer for consumption off the beer retailer's premises.
             167          (7) "Billboard" means [any] a public display used to advertise including:
             168          (a) a light device;
             169          (b) a painting;


             170          (c) a drawing;
             171          (d) a poster;
             172          (e) a sign;
             173          (f) a signboard; or
             174          (g) a scoreboard.
             175          (8) "Brewer" means [any] a person engaged in manufacturing:
             176          (a) beer[.];
             177          (b) heavy beer; or
             178          (c) a flavored malt beverage.
             179          (9) "Cash bar" means the service of an alcoholic [beverages] beverage:
             180          (a) at:
             181          (i) a banquet; or
             182          (ii) a temporary event for which a permit is issued under this title; and
             183          (b) if an attendee at the banquet or temporary event is charged for the alcoholic
             184      beverage.
             185          (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
             186      a bus company to a group of persons pursuant to a common purpose:
             187          (a) under a single contract;
             188          (b) at a fixed charge in accordance with the bus company's tariff; and
             189          (c) for the purpose of giving the group of persons the exclusive use of the passenger
             190      bus, coach, or other motor vehicle and a driver to travel together to [a] one or more specified
             191      [destination or] destinations.
             192          (11) "Church" means a building:
             193          (a) set apart for the purpose of worship;
             194          (b) in which religious services are held;
             195          (c) with which clergy is associated; and
             196          (d) which is tax exempt under the laws of this state.
             197          (12) "Club" and "private club" means any of the following organized primarily for the


             198      benefit of its members:
             199          (a) a social club;
             200          (b) a recreational association;
             201          (c) a fraternal association;
             202          (d) an athletic association; or
             203          (e) a kindred association.
             204          (13) "Commission" means the Alcoholic Beverage Control Commission.
             205          (14) "Community location" means:
             206          (a) a public or private school;
             207          (b) a church;
             208          (c) a public library;
             209          (d) a public playground; or
             210          (e) a public park.
             211          (15) "Community location governing authority" means:
             212          (a) the governing body of the community location; or
             213          (b) if the commission does not know who is the governing body of a community
             214      location, a person who appears to the commission to have been given on behalf of the
             215      community location authority to prohibit an activity at the community location.
             216          [(14)] (16) "Department" means the Department of Alcoholic Beverage Control.
             217          (17) "Director," unless the context requires otherwise, means the director appointed
             218      under Section 32A-1-108 .
             219          [(15)] (18) "Distressed merchandise" means [any] an alcoholic beverage in the
             220      possession of the department that is saleable, but for some reason is unappealing to the public.
             221          (19) "Flavored malt beverage" means a beverage:
             222          (a) that contains at least .5% alcohol by volume;
             223          (b) that is treated by processing, filtration, or another method of manufacture that is not
             224      generally recognized as a traditional process in the production of a beer as described in 27
             225      C.F.R. Sec. 25.55;


             226          (c) to which is added a flavor or other ingredient containing alcohol, except for a hop
             227      extract; and
             228          (d) (i) for which the producer is required to file a formula for approval with the United
             229      States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec. 25.55; or
             230          (ii) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
             231          [(16)] (20) "Guest" means a person accompanied by an active member or visitor of a
             232      club who enjoys only those privileges derived from the host for the duration of the visit to the
             233      club.
             234          [(17)] (21) (a) "Heavy beer" means [any] a product that:
             235          (i) contains more than 4% alcohol by volume; and
             236          (ii) is obtained by fermentation, infusion, or decoction of [any] malted grain.
             237          (b) "Heavy beer" is considered "liquor" for the purposes of this title.
             238          [(18)] (22) "Hosted bar" means the service of an alcoholic [beverages] beverage:
             239          (a) without charge; and
             240          (b) at a:
             241          (i) banquet; or
             242          (ii) privately hosted event.
             243          [(19)] (23) "Identification card" means [the] an identification card issued under Title 53,
             244      Chapter 3, Part 8, Identification Card Act.
             245          [(20)] (24) "Interdicted person" means a person to whom the sale, gift, or provision of
             246      an alcoholic beverage is prohibited by:
             247          (a) law; or
             248          (b) court order.
             249          [(21)] (25) "Intoxicated" means that to a degree that is unlawful under Section
             250      76-9-701 a person is under the influence of:
             251          (a) an alcoholic beverage;
             252          (b) a controlled substance;
             253          (c) a substance having the property of releasing toxic vapors; or


             254          (d) a combination of Subsections [(21)] (25)(a) through (c).
             255          [(22)] (26) "Licensee" means [any] a person issued a license by the commission to sell,
             256      manufacture, store, or allow consumption of an alcoholic [beverages] beverage on premises
             257      owned or controlled by the person.
             258          [(23)] (27) "Limousine" means [any] a motor vehicle licensed by the state or a local
             259      authority, other than a bus or taxicab:
             260          (a) in which the driver and [passengers] a passenger are separated by a partition, glass,
             261      or other barrier; and
             262          (b) that is provided by a company to [an individual or] one or more individuals at a
             263      fixed charge in accordance with the company's tariff for the purpose of giving the [individual or]
             264      one or more individuals the exclusive use of the limousine and a driver to travel to [a] one or
             265      more specified [destination or] destinations.
             266          [(24)] (28) (a) (i) "Liquor" means alcohol, or [any] an alcoholic, spirituous, vinous,
             267      fermented, malt, or other liquid, or combination of liquids, a part of which is spirituous, vinous,
             268      or fermented, [and all other drinks] or other drink, or drinkable [liquids] liquid that [contain
             269      more than 1/2 of 1% of]:
             270          (A) contains at least .5% alcohol by volume; and
             271          (B) is suitable to use for beverage purposes.
             272          (ii) On or after October 1, 2008, "liquor" includes a flavored malt beverage.
             273          (b) "Liquor" does not include [any] a beverage defined as a beer[, malt liquor, or malted
             274      beverage that has an alcohol content of less than 4% alcohol by volume].
             275          [(25)] (29) "Local authority" means:
             276          (a) the governing body of the county if the premises are located in an unincorporated
             277      area of a county; or
             278          (b) the governing body of the city or town if the premises are located in an incorporated
             279      city or a town.
             280          [(26)] (30) "Manufacture" means to distill, brew, rectify, mix, compound, process,
             281      ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to


             282      others.
             283          [(27)] (31) "Member" means a person who, after paying regular dues, has full privileges
             284      of a club under this title.
             285          [(28)] (32) (a) "Military installation" means a base, air field, camp, post, station, yard,
             286      center, or homeport facility for [any] a ship:
             287          (i) (A) under the control of the United States Department of Defense; or
             288          (B) of the National Guard;
             289          (ii) that is located within the state; and
             290          (iii) including [any] a leased facility.
             291          (b) "Military installation" does not include [any] a facility used primarily for:
             292          (i) civil works;
             293          (ii) rivers and harbors projects; or
             294          (iii) flood control projects.
             295          [(29)] (33) "Minor" means [any person] an individual under the age of 21 years.
             296          [(30)] (34) "Nude," "nudity," or "state of nudity" means:
             297          (a) the appearance of:
             298          (i) the nipple or areola of a female human breast;
             299          (ii) a human genital;
             300          (iii) a human pubic area; or
             301          (iv) a human anus; or
             302          (b) a state of dress that fails to opaquely cover:
             303          (i) the nipple or areola of a female human breast;
             304          (ii) a human genital;
             305          (iii) a human pubic area; or
             306          (iv) a human anus.
             307          [(31)] (35) "Outlet" means a location other than a state store or package agency where
             308      an alcoholic [beverages are] beverage is sold pursuant to a license issued by the commission.
             309          [(32)] (36) "Package" means any of the following containing liquor:


             310          (a) a container;
             311          (b) a bottle;
             312          (c) a vessel; or
             313          (d) other receptacle.
             314          [(33)] (37) "Package agency" means a retail liquor location operated:
             315          (a) under a contractual agreement with the department[,]; and
             316          (b) by a person:
             317          (i) other than the state[,]; and
             318          (ii) who is authorized by the commission to sell package liquor for consumption off the
             319      premises of the package agency.
             320          [(34)] (38) "Package agent" means [any] a person permitted by the commission to
             321      operate a package agency pursuant to a contractual agreement with the department to sell
             322      liquor from premises that the package agent shall provide and maintain.
             323          [(35)] (39) "Permittee" means [any] a person issued a permit by the commission to
             324      perform [acts] an act or exercise [privileges] a privilege as specifically granted in the permit.
             325          [(36)] (40) "Person" means [any] an individual, partnership, firm, corporation, limited
             326      liability company, association, business trust, or other form of business enterprise, including a
             327      receiver or trustee, and the plural as well as the singular number, unless the intent to give a
             328      more limited meaning is disclosed by the context.
             329          [(37)] (41) "Premises" means [any] a building, enclosure, room, or equipment used in
             330      connection with the sale, storage, service, manufacture, distribution, or consumption of an
             331      alcoholic [products] product, unless otherwise defined in this title or in the rules adopted by the
             332      commission.
             333          [(38)] (42) "Prescription" means a writing in legal form, signed by a physician or dentist
             334      and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
             335          [(39)] (43) (a) "Privately hosted event" or "private social function" means a specific
             336      social, business, or recreational event:
             337          (i) for which an entire room, area, or hall [has been] is leased or rented[,] in advance by


             338      an identified group[,]; and [the event or function]
             339          (ii) that is limited in attendance to people who [have been] are specifically designated
             340      and their guests.
             341          (b) "Privately hosted event" and "private social function" does not include [events or
             342      functions] an event to which the general public is invited, whether for an admission fee or not.
             343          [(40)] (44) "Proof of age" means:
             344          (a) an identification card;
             345          (b) an identification that:
             346          (i) is substantially similar to an identification card;
             347          (ii) is issued in accordance with the laws of a state other than Utah in which the
             348      identification is issued;
             349          (iii) includes date of birth; and
             350          (iv) has a picture affixed;
             351          (c) a valid driver license certificate that:
             352          (i) includes date of birth;
             353          (ii) has a picture affixed; and
             354          (iii) is issued:
             355          (A) under Title 53, Chapter 3, Uniform Driver License Act; or
             356          (B) in accordance with the laws of the state in which it is issued;
             357          (d) a military identification card that:
             358          (i) includes date of birth; and
             359          (ii) has a picture affixed; or
             360          (e) a valid passport.
             361          [(41)] (45) (a) "Public building" means [any] a building or permanent structure owned
             362      or leased by the state, a county, or local government entity that is used for:
             363          (i) public education;
             364          (ii) transacting public business; or
             365          (iii) regularly conducting government activities.


             366          (b) "Public building" does not mean or refer to [any] a building owned by the state or a
             367      county or local government entity when the building is used by [anyone] a person, in whole or
             368      in part, for a proprietary [functions] function.
             369          [(42)] (46) "Representative" means an individual who is compensated by salary,
             370      commission, or [any] other means for representing and selling [the] an alcoholic beverage
             371      [products] product of a manufacturer, supplier, or importer of liquor[,] including:
             372          (a) wine[, or];
             373          (b) heavy beer; or
             374          (c) on or after October 1, 2008, a flavored malt beverage.
             375          [(43)] (47) "Residence" means [the] a person's principal place of abode within Utah.
             376          [(44)] (48) "Restaurant" means [any] a business establishment:
             377          (a) where a variety of foods is prepared and complete meals are served to the general
             378      public;
             379          (b) located on a premises having adequate culinary fixtures for food preparation and
             380      dining accommodations; and
             381          (c) that is engaged primarily in serving meals to the general public.
             382          [(45)] (49) "Retailer" means [any] a person engaged in the sale or distribution of an
             383      alcoholic [beverages] beverage to [the] a consumer.
             384          [(46)] (50) (a) "Sample" includes:
             385          (i) a department sample; and
             386          (ii) an industry representative sample.
             387          (b) "Department sample" means liquor[, wine, and heavy beer] that [has been] is placed
             388      in the possession of the department for testing, analysis, and sampling including:
             389          (i) wine;
             390          (ii) heavy beer; or
             391          (iii) on or after October 1, 2008, a flavored malt beverage.
             392          (c) "Industry representative sample" means liquor[, wine, and heavy beer] that [has
             393      been] is placed in the possession of the department:


             394          (i) for testing, analysis, and sampling by a local industry [representatives] representative
             395      on the premises of the department to educate the local industry [representatives] representative
             396      of the quality and characteristics of the product[.]; and
             397          (ii) including:
             398          (A) wine;
             399          (B) heavy beer; or
             400          (C) on or after October 1, 2008, a flavored malt beverage.
             401          [(47)] (51) (a) "School" means [any] a building used primarily for the general education
             402      of minors.
             403          (b) "School" does not include:
             404          (i) a nursery school;
             405          (ii) an infant day care center; or
             406          (iii) a trade or technical school.
             407          [(48)] (52) "Sell," "sale," and "to sell" means [any] a transaction, exchange, or barter
             408      whereby, for [any] consideration, an alcoholic beverage is either directly or indirectly
             409      transferred, solicited, ordered, delivered for value, or by [any] a means or under [any] a pretext
             410      is promised or obtained, whether done by a person as a principal, proprietor, or as an agent,
             411      servant, or employee, unless otherwise defined in this title or the rules made by the commission.
             412          [(49)] (53) "Seminude," "seminudity," or "state of seminudity" means a state of dress in
             413      which opaque clothing covers no more than:
             414          (a) the nipple and areola of the female human breast in a shape and color other than the
             415      natural shape and color of the nipple and areola; and
             416          (b) the human genitals, pubic area, and anus:
             417          (i) with no less than the following at its widest point:
             418          (A) four inches coverage width in the front of the human body; and
             419          (B) five inches coverage width in the back of the human body; and
             420          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
             421          [(50)] (54) "Sexually oriented entertainer" means a person who while in a state of


             422      seminudity appears at or performs:
             423          (a) for the entertainment of one or more patrons;
             424          (b) on the premises of:
             425          (i) a class D private club as defined in Subsection 32A-5-101 (3); or
             426          (ii) a tavern;
             427          (c) on behalf of or at the request of the licensee described in Subsection [(50)] (54)(b);
             428          (d) on a contractual or voluntary basis; and
             429          (e) whether or not the person is designated:
             430          (i) an employee of the licensee described in Subsection [(50)] (54)(b);
             431          (ii) an independent contractor of the licensee described in Subsection [(50)] (54)(b);
             432          (iii) an agent of the licensee described in Subsection [(50)] (54)(b); or
             433          (iv) otherwise of the licensee described in Subsection [(50)] (54)(b).
             434          [(51)] (55) "Small brewer" means a brewer who manufactures less than 60,000 barrels
             435      of beer [and], heavy beer, and flavored malt beverages per year.
             436          [(52)] (56) (a) "Spirituous liquor" means liquor that is distilled.
             437          (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
             438      U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
             439          [(53)] (57) (a) "State label" means the official label designated by the commission
             440      affixed to [all] a liquor [containers] container sold in the state.
             441          (b) "State label" includes the department identification mark and inventory control
             442      number.
             443          [(54)] (58) (a) "State store" means a facility for the sale of package liquor:
             444          (i) located on premises owned or leased by the state; and
             445          (ii) operated by state employees.
             446          (b) "State store" does not apply to [any] a:
             447          (i) licensee;
             448          (ii) permittee; or
             449          (iii) package agency.


             450          [(55)] (59) "Supplier" means [any] a person selling an alcoholic [beverages] beverage to
             451      the department.
             452          [(56)] (60) (a) "Tavern" means [any] a business establishment that is:
             453          (i) engaged primarily in the retail sale of beer to a public [patrons] patron for
             454      consumption on the establishment's premises; and
             455          (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
             456          (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
             457      revenue of the sale of food, although food need not be sold in the establishment:
             458          (i) a beer bar;
             459          (ii) a parlor;
             460          (iii) a lounge;
             461          (iv) a cabaret; or
             462          (v) a nightclub.
             463          [(57)] (61) "Temporary domicile" means the principal place of abode within Utah of a
             464      person who does not have a present intention to continue residency within Utah permanently or
             465      indefinitely.
             466          [(58)] (62) "Unsaleable liquor merchandise" means merchandise that:
             467          (a) is unsaleable because the merchandise is:
             468          (i) unlabeled;
             469          (ii) leaky;
             470          (iii) damaged;
             471          (iv) difficult to open; or
             472          (v) partly filled;
             473          (b) is in a container:
             474          (i) having faded labels or defective caps or corks;
             475          (ii) in which the contents are:
             476          (A) cloudy;
             477          (B) spoiled; or


             478          (C) chemically determined to be impure; or
             479          (iii) that contains:
             480          (A) sediment; or
             481          (B) [any] a foreign substance; or
             482          (c) is otherwise considered by the department as unfit for sale.
             483          [(59)] (63) "Visitor" means an individual that in accordance with Section 32A-5-107
             484      holds limited privileges in a private club by virtue of a visitor card.
             485          [(60)] (64) "Warehouser" means [any] a person, other than a licensed manufacturer,
             486      engaged in the importation for sale, storage, or distribution of liquor regardless of amount.
             487          [(61)] (65) (a) "Wholesaler" means [any] a person engaged in the importation for sale,
             488      or in the sale of beer in wholesale or jobbing quantities to one or more retailers[, other than a].
             489          (b) Notwithstanding Subsection (65)(a), "wholesaler" does not include a small brewer
             490      selling beer manufactured by that brewer.
             491          [(62)] (66) (a) "Wine" means [any] an alcoholic beverage obtained by the fermentation
             492      of the natural sugar content of fruits, plants, honey, or milk, or [any] other like substance,
             493      whether or not [other ingredients are] another ingredient is added.
             494          (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
             495      provided in this title.
             496          Section 2. Section 32A-1-116 is amended to read:
             497           32A-1-116. Purchase of liquor.
             498          (1) The department may not purchase or stock spirituous liquor in [containers] a
             499      container smaller than 200 milliliters except as otherwise allowed by the commission.
             500          (2) (a) Each order by the department for the purchase of spirituous liquor, wine, [or]
             501      heavy beer, or flavored malt beverage, or any cancellation by the department of an order for
             502      spirituous liquor, wine, [or] heavy beer, or flavored malt beverage:
             503          (i) shall be executed in writing by the department; and
             504          (ii) is not valid or binding unless executed in writing.
             505          (b) A copy of each order or cancellation shall be kept on file by the department for at


             506      least three years.
             507          (c) An electronic record satisfies Subsections (2)(a) and (b) pursuant to Title 46,
             508      Chapter 4, Uniform Electronic Transactions Act.
             509          Section 3. Section 32A-1-119 is amended to read:
             510           32A-1-119. Disciplinary proceedings -- Procedure.
             511          (1) (a) As used in this section and Section 32A-1-120 , "disciplinary proceeding" means
             512      an adjudicative proceeding permitted under this title:
             513          (i) against:
             514          (A) a permittee;
             515          (B) a licensee;
             516          (C) a manufacturer;
             517          (D) a supplier;
             518          (E) an importer;
             519          (F) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
             520      or
             521          (G) an officer, employee, or agent of:
             522          (I) a person listed in Subsections (1)(a)(i)(A) through (F); or
             523          (II) a package agent; and
             524          (ii) that is brought on the basis of a violation of this title.
             525          (b) As used in Subsection (4), "final adjudication" means an adjudication for which a
             526      final unappealable judgment or order has been issued.
             527          (2) (a) The following may conduct adjudicative proceedings to inquire into any matter
             528      necessary and proper for the administration of this title and rules adopted under this title:
             529          (i) the commission;
             530          (ii) a hearing examiner appointed by the commission for the purposes provided in
             531      Subsection 32A-1-107 (3);
             532          (iii) the director; and
             533          (iv) the department.


             534          (b) Except as provided in this section or Section 32A-3-106 , the following shall comply
             535      with the procedures and requirements of Title 63, Chapter 46b, Administrative Procedures Act,
             536      in adjudicative proceedings:
             537          (i) the commission;
             538          (ii) a hearing examiner appointed by the commission;
             539          (iii) the director; and
             540          (iv) the department.
             541          (c) Except where otherwise provided by law, all adjudicative proceedings before the
             542      commission or its appointed hearing examiner shall be:
             543          (i) video or audio recorded; and
             544          (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
             545      Open and Public Meetings Act.
             546          (d) [All adjudicative proceedings] An adjudicative proceeding concerning departmental
             547      personnel shall be conducted in accordance with Title 67, Chapter 19, Utah State Personnel
             548      Management Act.
             549          (e) [All hearings that are] A hearing that is informational, fact gathering, and
             550      nonadversarial in nature shall be conducted in accordance with rules, policies, and procedures
             551      promulgated by the commission, director, or department.
             552          (3) (a) A disciplinary proceeding shall be conducted under the authority of the
             553      commission, which is responsible for rendering a final decision and order on any disciplinary
             554      matter.
             555          (b) (i) Nothing in this section precludes the commission from appointing necessary
             556      officers, including hearing examiners, from within or without the department, to administer the
             557      disciplinary proceeding process.
             558          (ii) A hearing examiner appointed by the commission:
             559          (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
             560          (B) shall submit to the commission a report including:
             561          (I) findings of fact determined on the basis of a preponderance of the evidence


             562      presented at the hearing;
             563          (II) conclusions of law; and
             564          (III) recommendations.
             565          (c) Nothing in this section precludes the commission, after the commission has rendered
             566      its final decision and order, from having the director prepare, issue, and cause to be served on
             567      the parties the final written order on behalf of the commission.
             568          (4) (a) The department may initiate a disciplinary proceeding described in Subsection
             569      (4)(b) when the department receives:
             570          (i) a report from any government agency, peace officer, examiner, or investigator
             571      alleging that any person listed in Subsections (1)(a)(i)(A) through (G) has violated this title or
             572      the rules of the commission;
             573          (ii) a final adjudication of criminal liability against any person listed in Subsections
             574      (1)(a)(i)(A) through (G) based on an alleged violation of this title; or
             575          (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
             576      Liability, against any person listed in Subsections (1)(a)(i)(A) through (G) based on an alleged
             577      violation of this title.
             578          (b) The department may initiate a disciplinary proceeding if the department receives an
             579      item listed in Subsection (4)(a) to determine:
             580          (i) whether any person listed in Subsections (1)(a)(i)(A) through (G) violated this title
             581      or rules of the commission; and
             582          (ii) if a violation is found, the appropriate sanction to be imposed.
             583          (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
             584          (i) if required by law;
             585          (ii) before revoking or suspending any permit, license, or certificate of approval issued
             586      under this title; or
             587          (iii) before imposing a fine against any person listed in Subsections (1)(a)(i)(A) through
             588      (G).
             589          (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding


             590      hearing after receiving proper notice is an admission of the charged violation.
             591          (c) The validity of a disciplinary proceeding is not affected by the failure of any person
             592      to attend or remain in attendance.
             593          (d) All disciplinary proceeding hearings shall be presided over by the commission or an
             594      appointed hearing examiner.
             595          (e) A disciplinary proceeding hearing may be closed only after the commission or
             596      hearing examiner makes a written finding that the public interest in an open hearing is clearly
             597      outweighed by factors enumerated in the closure order.
             598          (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
             599      hearing may:
             600          (A) administer oaths or affirmations;
             601          (B) take evidence;
             602          (C) take depositions within or without this state; and
             603          (D) require by subpoena from any place within this state:
             604          (I) the testimony of any person at a hearing; and
             605          (II) the production of any books, records, papers, contracts, agreements, documents, or
             606      other evidence considered relevant to the inquiry.
             607          (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
             608      produce any books, papers, documents, or tangible things as required in the subpoena.
             609          (iii) Any witness subpoenaed or called to testify or produce evidence who claims a
             610      privilege against self-incrimination may not be compelled to testify, but the commission or the
             611      hearing examiner shall file a written report with the county attorney or district attorney in the
             612      jurisdiction where the privilege was claimed or where the witness resides setting forth the
             613      circumstance of the claimed privilege.
             614          (iv) (A) A person is not excused from obeying a subpoena without just cause.
             615          (B) Any district court within the judicial district in which a person alleged to be guilty
             616      of willful contempt of court or refusal to obey a subpoena is found or resides, upon application
             617      by the party issuing the subpoena, may issue an order requiring the person to:


             618          (I) appear before the issuing party; and
             619          (II) (Aa) produce documentary evidence if so ordered; or
             620          (Bb) give evidence regarding the matter in question.
             621          (C) Failure to obey an order of the court may be punished by the court as contempt.
             622          (g) (i) In all disciplinary proceeding hearings heard by a hearing examiner, the hearing
             623      examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
             624          (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
             625      recommend a penalty more severe than that initially sought by the department in the notice of
             626      agency action.
             627          (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
             628      shall be served upon the respective parties.
             629          (iv) The respondent and the department shall be given reasonable opportunity to file any
             630      written objections to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
             631      before final commission action.
             632          (h) In all cases heard by the commission, it shall issue its final decision and order in
             633      accordance with Subsection (3).
             634          (6) (a) The commission shall:
             635          (i) render a final decision and order on any disciplinary action; and
             636          (ii) cause its final order to be prepared in writing, issued, and served on all parties.
             637          (b) [Any] An order of the commission is considered final on the date the order becomes
             638      effective.
             639          (c) If the commission is satisfied that a person listed in Subsections (1)(a)(i)(A) through
             640      (G) has committed a violation of this title or the commission's rules, in accordance with Title 63,
             641      Chapter 46b, Administrative Procedures Act, the commission may:
             642          (i) suspend or revoke the permit, license, or certificate of approval;
             643          (ii) impose a fine against a person listed in Subsections (1)(a)(i)(A) through (G);
             644          (iii) assess the administrative costs of any disciplinary proceeding to the permittee, the
             645      licensee, or certificate holder; or


             646          (iv) any combination of Subsections (6)(c)(i) through (iii).
             647          (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
             648      32A-1-107 (1)(p) and (4).
             649          (e) (i) If a permit or license is suspended under this Subsection (6), a sign provided by
             650      the department shall be prominently posted:
             651          (A) during the suspension;
             652          (B) by the permittee or licensee; and
             653          (C) at the entrance of the premises of the permittee or licensee.
             654          (ii) The sign required by this Subsection (6)(e) shall:
             655          (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
             656      alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be sold,
             657      served, furnished, or consumed on these premises during the period of suspension."; and
             658          (B) include the dates of the suspension period.
             659          (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
             660      to be posted under this Subsection (6)(e) during the suspension period.
             661          (f) If a permit or license is revoked, the commission may order the revocation of any
             662      compliance bond posted by the permittee or licensee.
             663          (g) Any permittee or licensee whose permit or license is revoked may not reapply for a
             664      permit or license under this title for three years from the date on which the permit or license is
             665      revoked.
             666          (h) All costs assessed by the commission shall be transferred into the General Fund in
             667      accordance with Section 32A-1-113 .
             668          (7) (a) In addition to any action taken against a permittee, licensee, or certificate holder
             669      under this section, the department may initiate disciplinary action against an officer, employee,
             670      or agent of a permittee, licensee, or certificate holder.
             671          (b) If any officer, employee, or agent is found to have violated this title, the commission
             672      may prohibit the officer, employee, or agent from serving, selling, distributing, manufacturing,
             673      wholesaling, warehousing, or handling alcoholic beverages in the course of employment with


             674      any permittee, licensee, or certificate holder under this title for a period determined by the
             675      commission.
             676          (8) (a) The department may initiate a disciplinary proceeding for an alleged violation of
             677      this title or the rules of the commission against:
             678          (i) a manufacturer, supplier, or importer of alcoholic beverages; or
             679          (ii) an officer, employee, agent, or representative of a person listed in Subsection
             680      (8)(a)(i).
             681          (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
             682      commission may, in addition to other penalties prescribed by this title, order:
             683          (A) the removal of the manufacturer's, supplier's, or importer's products from the
             684      department's sales list; and
             685          (B) a suspension of the department's purchase of the products described in Subsection
             686      (8)(b)(i)(A) for a period determined by the commission.
             687          (ii) The commission may take the action described in Subsection (8)(b)(i) if:
             688          (A) any manufacturer, supplier, or importer of liquor, wine, [or] heavy beer, or a
             689      flavored malt beverage, or its officer, employee, agent, or representative violates any provision
             690      of this title; and
             691          (B) the manufacturer, supplier, or importer:
             692          (I) directly committed the violation; or
             693          (II) solicited, requested, commanded, encouraged, or intentionally aided another to
             694      engage in the violation.
             695          (9) (a) The department may initiate a disciplinary proceeding against a brewer holding a
             696      certificate of approval under Section 32A-8-101 for an alleged violation of this title or the rules
             697      of the commission.
             698          (b) If the commission makes a finding that the brewer holding a certificate of approval
             699      violates this title or rules of the commission, the commission may take any action against the
             700      brewer holding a certificate of approval that the commission could take against a licensee
             701      including:


             702          (i) suspension or revocation of the certificate of approval; and
             703          (ii) imposition of a fine.
             704          (10) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by
             705      the commission or a hearing examiner appointed by the commission shall proceed formally in
             706      accordance with Sections 63-46b-6 through 63-46b-11 in any case where:
             707          (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
             708      and welfare;
             709          (ii) the alleged violation involves:
             710          (A) selling, serving, or otherwise furnishing alcoholic products to a minor;
             711          (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
             712      Entertainment Act;
             713          (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
             714      of the respondent;
             715          (D) interfering or refusing to cooperate with:
             716          (I) an authorized official of the department or the state in the discharge of the official's
             717      duties in relation to the enforcement of this title; or
             718          (II) a peace officer in the discharge of the peace officer's duties in relation to the
             719      enforcement of this title;
             720          (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
             721          (F) unlawful importation of alcoholic products; or
             722          (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
             723      32A-12-601 (2), to any person other than the department or a military installation, except to the
             724      extent permitted by this title; or
             725          (iii) the department determines to seek in a disciplinary proceeding hearing:
             726          (A) an administrative fine exceeding $3,000;
             727          (B) a suspension of a license, permit, or certificate of approval of more than ten days;
             728      or
             729          (C) a revocation of a license, permit, or certificate of approval.


             730          (b) The commission shall make rules in accordance with Title 63, Chapter 46a, Utah
             731      Administrative Rulemaking Act, to provide a procedure to implement this Subsection (10).
             732          Section 4. Section 32A-1-122 is amended to read:
             733           32A-1-122. Liquor prices -- School lunch program.
             734          (1) For purposes of this section:
             735          (a) "Landed case cost" means:
             736          (i) the cost of the product; and
             737          (ii) inbound shipping costs incurred by the department.
             738          (b) "Landed case cost" does not include the outbound shipping cost from a warehouse
             739      of the department to a state store.
             740          (2) (a) Except as provided in Subsections (2)(b) and (c), [all] spirituous liquor and wine
             741      sold by the department within the state shall be marked up in an amount not less than 86%
             742      above the landed case cost to the department.
             743          (b) [All spirituous] Spirituous liquor and wine sold by the department to a military
             744      [installations] installation in Utah shall be marked up in an amount not less than 15% above the
             745      landed case cost to the department.
             746          (c) If a wine manufacturer producing less than 20,000 gallons of wine in any calendar
             747      year, as verified by the department pursuant to federal or other verifiable production reports,
             748      first applies to the department for a reduced markup, all wine produced by the wine
             749      manufacturer and sold to the department shall be marked up by the department in an amount not
             750      less than 47% above the landed case cost to the department.
             751          (3) (a) Except as provided in Subsection (3)(b), [all] heavy beer sold by the department
             752      within the state shall be marked up in an amount not less than 64.5% above the landed case cost
             753      to the department.
             754          (b) [All heavy] Heavy beer sold by the department to a military [installations]
             755      installation in Utah shall be marked up in an amount not less than 15% above the landed case
             756      cost to the department.
             757          (4) (a) Except as provided in Subsection (4)(b), a flavored malt beverage sold by the


             758      department within the state shall be marked up in an amount not less than 86% above the landed
             759      case cost to the department.
             760          (b) A flavored malt beverage sold by the department to a military installation in Utah
             761      shall be marked up in an amount not less than 15% above the landed case cost to the
             762      department.
             763          [(4)] (5) Ten percent of the total gross revenue from sales of [spiritous] spirituous
             764      liquor, wine, [and] heavy beer, and flavored malt beverages shall be deposited by the
             765      department with the state treasurer and credited to the Uniform School Fund to be used to
             766      support the school lunch program administered by the State Board of Education under Section
             767      53A-19-201 .
             768          [(5)] (6) Nothing in this section prohibits the department from selling discontinued
             769      items at a discount.
             770          Section 5. Section 32A-1-302 is amended to read:
             771           32A-1-302. Presentation of proof of age upon request.
             772          (1) To obtain one or more of the following, a person shall present proof of age at the
             773      request of a person listed in Subsection (2):
             774          (a) an alcoholic beverage or alcoholic product; [or]
             775          (b) admittance that under this title may not be obtained by a minor to a premises where
             776      an alcoholic beverage or alcoholic product is sold or consumed; or
             777          [(b)] (c) employment that under this title may not be obtained by a minor.
             778          (2) To determine whether the person described in Subsection (1) is 21 years of age, the
             779      following may request a person described in Subsection (1) to present proof of age:
             780          (a) a person authorized by law to sell or otherwise handle an alcoholic [beverages or
             781      products] beverage or alcoholic product;
             782          (b) a peace officer;
             783          (c) a representative of the State Bureau of Investigation of the Department of Public
             784      Safety, established in Section 53-10-301 ; or
             785          (d) an authorized employee of the department.


             786          Section 6. Section 32A-1-304 is amended to read:
             787           32A-1-304. Acceptance of identification -- Evidence.
             788          (1) A person authorized by law to sell or otherwise handle an alcoholic [beverages or
             789      products] beverage or alcoholic product may accept as evidence of the legal age of the person
             790      presenting the following:
             791          (a) proof of age; or
             792          (b) if a statement of age is required under Subsection 32A-1-303 (1):
             793          (i) proof of age; and
             794          (ii) a statement of age obtained under Section 32A-1-303 .
             795          (2) A statement of age described in Section 32A-1-303 , if properly completed, signed,
             796      and filed in accordance with Section 32A-1-303 , may be offered as a defense in [any] a case
             797      where there is at issue the legality of:
             798          (a) selling or otherwise furnishing an alcoholic beverage or product to the person who
             799      signed the statement of age; [or]
             800          (b) admitting a minor to a premises where an alcoholic beverage or alcoholic product is
             801      sold or consumed; or
             802          [(b)] (c) allowing the person who signed the statement of age to be employed in any
             803      employment that under this title may not be obtained by a minor.
             804          (3) A person may not be subject to a penalty for a violation of this part if it is proved to
             805      the commission or the court hearing the matter that the person charged with the violation acted
             806      in good faith.
             807          Section 7. Section 32A-1-701 is enacted to read:
             808     
Part 7. Criminal Background Check Act

             809          32A-1-701. Title.
             810          This part is known as the "Criminal Background Check Act."
             811          Section 8. Section 32A-1-702 is enacted to read:
             812          32A-1-702. Requirement for a criminal background check.
             813          (1) The department shall require an individual listed in Subsection (2) to, in accordance


             814      with this part:
             815          (a) submit a fingerprint card in a form acceptable to the department; and
             816          (b) consent to a fingerprint criminal background check by:
             817          (i) the Utah Bureau of Criminal Identification; and
             818          (ii) the Federal Bureau of Investigation.
             819          (2) The following shall comply with Subsection (1):
             820          (a) an individual applying for employment with the department;
             821          (b) an individual applying to the commission to operate a package agency;
             822          (c) an individual applying to the commission for a license;
             823          (d) an individual who with regard to an entity that is applying to the commission to
             824      operate a package agency or for a license is:
             825          (i) a partner;
             826          (ii) a managing agent;
             827          (iii) a manager;
             828          (iv) an officer;
             829          (v) a director;
             830          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of a
             831      corporation;
             832          (vii) a member who owns at least 20% of a limited liability company; or
             833          (viii) an individual employed to act in a supervisory or managerial capacity; or
             834          (e) an individual who becomes involved in an entity listed in Subsection (2)(b) or (c) in
             835      a capacity listed in Subsection (2)(d) on or after the day on which the entity:
             836          (i) is approved to operate a package agency; or
             837          (ii) is licensed by the commission.
             838          (3) The department shall require compliance with Subsection (2)(e) as a condition of an
             839      entity's:
             840          (a) continued operation of a package agency; or
             841          (b) renewal of a license.


             842          (4) The department may require as a condition of continued employment that an
             843      employee:
             844          (a) submit a fingerprint card in a form acceptable to the department; and
             845          (b) consent to a fingerprint criminal background check by:
             846          (i) the Utah Bureau of Criminal Identification; and
             847          (ii) the Federal Bureau of Investigation.
             848          Section 9. Section 32A-1-703 is enacted to read:
             849          32A-1-703. Use of information from a criminal background check.
             850          The commission or department may use information obtained pursuant to Section
             851      32A-1-702 only for one or more of the following purposes:
             852          (1) enforcing this title;
             853          (2) determining whether or not an individual is convicted of any of the following
             854      offenses that disqualify the individual under this title from acting in a capacity described in
             855      Subsection 32A-1-702 (2):
             856          (a) a felony under federal or state law;
             857          (b) a violation of a federal law, state law, or local ordinance concerning the sale,
             858      manufacture, distribution, warehousing, adulteration, or transportation of an alcoholic beverage;
             859          (c) a crime involving moral turpitude; or
             860          (d) on two or more occasions within the previous five years, driving under the influence
             861      of alcohol, a drug, or the combined influence of alcohol and a drug;
             862          (3) determining whether or not an individual fails to accurately disclose the person's
             863      criminal history on an application or document filed with the department or commission;
             864          (4) approving or denying an application for employment with the department;
             865          (5) taking disciplinary action against an employee of the department, including possible
             866      termination of employment;
             867          (6) granting or denying an application to operate a package agency;
             868          (7) granting or denying an application for a license;
             869          (8) granting or denying the renewal of a package agency contract;


             870          (9) granting or denying the renewal of a license;
             871          (10) suspending the operation of a package agency;
             872          (11) terminating a package agency contract; or
             873          (12) suspending or revoking a license.
             874          Section 10. Section 32A-1-704 is enacted to read:
             875          32A-1-704. Criminal background check procedure.
             876          (1) (a) An individual described in Subsections 32A-1-702 (2)(b) through (e) shall
             877      provide a fingerprint card at the expense of the individual.
             878          (b) The department shall pay the expense of obtaining a fingerprint card required of:
             879          (i) an applicant for employment with the department; or
             880          (ii) an employee of the department.
             881          (2) (a) The department shall obtain information from a criminal history record
             882      maintained by the Utah Bureau of Criminal Identification pursuant to Title 53, Chapter 10, Part
             883      2, Bureau of Criminal Identification, for a purpose outlined in Section 32A-1-703 .
             884          (b) An individual described in Subsections 32A-1-702 (2)(b) through (e) shall pay to the
             885      department the expense of obtaining the criminal history record described in Subsection (2)(a).
             886          (c) The department shall pay the expense of obtaining the criminal history record
             887      required for:
             888          (i) an applicant for employment with the department; or
             889          (ii) an employee of the department.
             890          (3) (a) The department shall submit a fingerprint card obtained under Section
             891      32A-1-702 of an individual who has not resided in the state for at least two years before the day
             892      on which the fingerprint card is submitted to the Utah Bureau of Criminal Identification to be
             893      forwarded to the Federal Bureau of Investigation for a nationwide criminal history record
             894      check.
             895          (b) An individual described in Subsections 32A-1-702 (2)(b) through (e) shall pay to the
             896      department the expense of obtaining the criminal history record described in Subsection (3)(a).
             897          (c) The department shall pay the expense of obtaining the criminal history record


             898      required for:
             899          (i) an applicant for employment with the department; or
             900          (ii) an employee of the department.
             901          (4) The department shall pay the Utah Bureau of Criminal Identification the costs
             902      incurred in providing the department criminal background information.
             903          (5) (a) The commission, the department, or an official or employee of the commission
             904      or department may not disseminate a criminal history record obtained under this part to any
             905      person except for a purpose described in Section 32A-1-703 .
             906          (b) (i) Notwithstanding Subsection (5)(a), a criminal history record obtained under this
             907      part may be provided by the department to the individual who is the subject of the criminal
             908      history record.
             909          (ii) The department shall provide an individual who is the subject of a criminal history
             910      record and who requests the criminal history record an opportunity to:
             911          (A) review the criminal history record; and
             912          (B) respond to information in the criminal history record.
             913          (6) If an individual described in Subsection 32A-1-702 (2) is determined to be
             914      disqualified under Subsection 32A-1-703 (2)(b), the department shall provide the individual
             915      with:
             916          (a) notice of the reason for the disqualification; and
             917          (b) an opportunity to respond to the disqualification.
             918          (7) The department shall maintain the following in one or more separate files so that
             919      they may be accessed only for a purpose under Section 32A-1-703 :
             920          (a) a fingerprint card submitted under this part; and
             921          (b) a criminal history record received from:
             922          (i) the Utah Bureau of Criminal Identification; and
             923          (ii) the Federal Bureau of Investigation.
             924          Section 11. Section 32A-1-801 is enacted to read:
             925     
Part 8. Malted Beverages Act


             926          32A-1-801. Title.
             927          This part is known as the "Malted Beverages Act."
             928          Section 12. Section 32A-1-802 is enacted to read:
             929          32A-1-802. Definitions.
             930          As used in this part:
             931          (1) "Malted beverages" means:
             932          (a) beer;
             933          (b) a flavored malt beverage; and
             934          (c) heavy beer.
             935          (2) "Packaging" means the outer packaging that is visible to a consumer such as a
             936      carton, case, or other wrapper of a container.
             937          Section 13. Section 32A-1-803 is enacted to read:
             938          32A-1-803. Power of the commission and department to classify flavored malt
             939      beverages.
             940          (1) The commission and department shall beginning on October 1, 2008, regulate a
             941      flavored malt beverage as liquor.
             942          (2) (a) By no later than October 1, 2008, the department shall make available to the
             943      public on the Internet a list of all flavored malt beverages authorized to be sold in this state as
             944      liquor.
             945          (b) The list described in Subsection (2)(a) shall be updated at least quarterly.
             946          (3) (a) Beginning on August 1, 2008, a manufacturer shall file, under penalty of perjury,
             947      a report with the department listing each flavored malt beverage manufactured by the
             948      manufacturer that the manufacturer wants to distribute in this state on or after October 1, 2008,
             949      subject to the manufacturer holding:
             950          (i) a brewery license under Chapter 8, Part 4, Brewery Licenses; or
             951          (ii) a certificate of approval issued by the department under Subsection 32A-8-101 (4).
             952          (b) On or after October 1, 2008, a manufacturer may not distribute or sell in this state a
             953      flavored malt beverage if the manufacturer does not list the flavored malt beverage in a filing


             954      with the department in accordance with this Subsection (3) before distributing or selling the
             955      flavored malt beverage.
             956          (4) The department may require a manufacturer of a flavored malt beverage to provide
             957      the department with a copy of the following filed with the United States Alcohol and Tobacco
             958      Trade and Tax Bureau, pursuant to 27 C.F.R. Sec. 25.55:
             959          (a) a statement of process; or
             960          (b) a formula.
             961          (5) (a) A manufacturer of an alcoholic product that the department is classifying or
             962      proposes to classify as a flavored malt beverage may submit evidence to the department that its
             963      alcoholic product should not be treated as liquor under this section because the alcoholic
             964      product:
             965          (i) is obtained by fermentation, infusion, or decoction of a malted grain;
             966          (ii) is produced by processing, filtration, or another method of manufacture that is
             967      generally recognized as a traditional process in the production of beer as described in 27 C.F.R.
             968      Sec. 25.55;
             969          (iii) does not have added to it a flavor or other ingredient containing alcohol, except for
             970      a hop extract; and
             971          (iv) (A) is not one for which the producer is required to file a formula for approval with
             972      the United States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec.
             973      25.55; or
             974          (B) is exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
             975          (b) The department shall review the evidence submitted by the manufacturer under this
             976      Subsection (5).
             977          (c) The department shall make available to the public on the Internet a list of all
             978      alcoholic beverages authorized under this Subsection (5) to be sold as beer in this state.
             979          (d) A decision of the department under this Subsection (5) may be appealed to the
             980      commission.
             981          Section 14. Section 32A-1-804 is enacted to read:


             982          32A-1-804. Requirements for labeling and packaging -- Authority of the
             983      commission and department.
             984          (1) On or after October 1, 2008, a manufacturer may not distribute or sell a malted
             985      beverage:
             986          (a) unless the label and packaging of the malted beverage:
             987          (i) complies with the federal label requirements of 27 C.F.R. Parts 7, 13, and 16; and
             988          (ii) clearly gives notice to the public that the malted beverage is an alcoholic beverage;
             989      and
             990          (b) until the day on which the department in accordance with this title and rules of the
             991      commission approves the label and packaging of the malted beverage.
             992          (2) The department shall review the label and packaging of a malted beverage to ensure
             993      that the label and packaging meet the requirements of Subsection (1)(a).
             994          (3) A manufacturer may comply with the requirement of Subsection (1)(a)(ii) by
             995      including on a label and packaging for a malted beverage any of the following terms:
             996          (a) beer;
             997          (b) ale;
             998          (c) porter;
             999          (d) stout;
             1000          (e) lager;
             1001          (f) lager beer; or
             1002          (g) another class or type designation commonly applied to a malted beverage that
             1003      conveys by a recognized term that the product contains alcohol.
             1004          Section 15. Section 32A-1-805 is enacted to read:
             1005          32A-1-805. General procedure for approval.
             1006          (1) To obtain approval of the label and packaging of a malted beverage, the
             1007      manufacturer of the malted beverage shall submit an application to the department for approval.
             1008          (2) The application described in Subsection (1) shall be on a form approved by the
             1009      department and include the following:


             1010          (a) a copy of a federal certificate of label approval from the Department of Treasury,
             1011      Tax and Trade Bureau, for each brand and label for which the manufacturer is seeking approval;
             1012          (b) a complete set of original labels for each size of container of the malted beverage;
             1013          (c) a description of the size of the container on which a label will be placed;
             1014          (d) a description of each type of container of the malted beverage; and
             1015          (e) a description of any packaging for the malted beverage.
             1016          (3) The department may assess a reasonable fee for reviewing a label and packaging for
             1017      approval.
             1018          (4) (a) The department shall notify a manufacturer within 30 days after the day on
             1019      which the manufacturer submits an application whether the label and packaging is approved or
             1020      denied.
             1021          (b) If the department determines that an unusual circumstance requires additional time,
             1022      the department may extend the time period described in Subsection (4)(a).
             1023          (5) A manufacturer shall obtain the approval of the department of a revision of a
             1024      previously approved label and packaging before a malted beverage using the revised label and
             1025      packaging may be distributed or sold in this state.
             1026          (6) (a) The department may revoke a label and packaging previously approved upon a
             1027      finding that the label and packaging is not in compliance with this title or rules of the
             1028      commission.
             1029          (b) The department shall notify the person that applies for the approval of a label and
             1030      packaging at least five business days before the day on which a label and packaging approval is
             1031      considered revoked.
             1032          (c) After receiving notice under Subsection (6)(b), a manufacturer may present written
             1033      argument or evidence to the department on why the revocation should not occur.
             1034          (7) A manufacturer that applies for approval of a label and packaging may appeal a
             1035      denial or revocation of a label and packaging approval to the commission.
             1036          Section 16. Section 32A-1-806 is enacted to read:
             1037          32A-1-806. Special procedure for flavored malt beverages.


             1038          (1) If a flavored malt beverage is labeled or packaged in a manner that is similar to a
             1039      label or package used for a nonalcoholic beverage, beginning October 1, 2008, a manufacturer
             1040      of the flavored malt beverage may not distribute or sell the flavored malt beverage in this state
             1041      until the day on which the manufacturer receives approval of the labeling and packaging from
             1042      the department in accordance with:
             1043          (a) Sections 32A-1-804 and 32A-1-805 ; and
             1044          (b) this section.
             1045          (2) The department may not approve the labeling and packaging of a flavored malt
             1046      beverage described in Subsection (1) unless in addition to the requirements of Section
             1047      32A-1-804 the labeling and packaging complies with the following:
             1048          (a) The label on the flavored malt beverage shall bear a prominently displayed label or a
             1049      firmly affixed sticker that provides the following information:
             1050          (i) the statement:
             1051          (A) "alcoholic beverage"; or
             1052          (B) "contains alcohol"; and
             1053          (ii) the alcohol content of the flavored malt beverage.
             1054          (b) Any packaging of the flavored malt beverage shall prominently include, either
             1055      imprinted on the packaging or imprinted on a sticker firmly affixed to the packaging, the
             1056      statement:
             1057          (i) "alcoholic beverage"; or
             1058          (ii) "contains alcohol".
             1059          (c) A statement required by Subsection (2)(a) or (b) shall appear in a format required by
             1060      rule made by the commission in accordance with Title 63, Chapter 46a, Utah Administrative
             1061      Rulemaking Act.
             1062          (d) A statement of alcohol content required by Subsection (2)(a)(ii):
             1063          (i) shall state the alcohol content as a percentage of alcohol by volume or by weight;
             1064          (ii) may not use an abbreviation, but shall use the complete words "alcohol," "volume,"
             1065      or "weight"; and


             1066          (iii) shall be in a format required by rule made by the commission.
             1067          (3) The department may reject a label or packaging that appears designed to obscure
             1068      the information required by Subsection (2).
             1069          (4) To determine whether or not a flavored malt beverage is described in Subsection (1)
             1070      and subject to this section, the department may consider in addition to other factors one or more
             1071      of the following factors:
             1072          (a) whether the coloring, carbonation, and packaging of the flavored malt beverage:
             1073          (i) is similar to those of a nonalcoholic beverage or product; or
             1074          (ii) can be confused with a nonalcoholic beverage;
             1075          (b) whether the flavored malt beverage possesses a character and flavor distinctive from
             1076      a traditional malted beverage;
             1077          (c) whether the flavored malt beverage is:
             1078          (i) prepackaged;
             1079          (ii) contains high levels of caffeine and other additives; and
             1080          (iii) marketed as a beverage that is specifically designed to provide energy;
             1081          (d) whether the flavored malt beverage contains added sweetener or sugar substitutes;
             1082      or
             1083          (e) whether the flavored malt beverage contains an added fruit flavor or other flavor
             1084      that masks the taste of a traditional malted beverage.
             1085          Section 17. Section 32A-1-807 is enacted to read:
             1086          32A-1-807. Rulemaking authority.
             1087          The commission may adopt rules necessary to implement this part.
             1088          Section 18. Section 32A-1-808 is enacted to read:
             1089          32A-1-808. Disciplinary proceeding for violation.
             1090          A person who violates this part is subject to a disciplinary proceeding under Section
             1091      32A-1-119 .
             1092          Section 19. Section 32A-1-809 is enacted to read:
             1093          32A-1-809. Transition protections.


             1094          (1) Except as provided in Subsection (3), a manufacturer of a flavored malt beverage
             1095      may not be held liable under this title for distributing or selling a flavored malt beverage as a
             1096      beer if:
             1097          (a) the flavored malt beverage is distributed or sold on or before September 30, 2008;
             1098      and
             1099          (b) the manufacturer when distributing or selling the flavored malt beverage complies
             1100      with the requirements of this title for distributing or selling a beer including holding:
             1101          (i) a brewery license under Chapter 8, Part 4, Brewery Licenses; or
             1102          (ii) a certificate of approval issued by the department under Subsection 32A-8-101 (4).
             1103          (2) Except as provided in Subsection (3), a licensee or permittee may not be held liable
             1104      for the sale, offering, or furnishing of a flavored malt beverage as a beer if:
             1105          (a) the flavored malt beverage is sold, offered, or furnished on or before September 30,
             1106      2008; and
             1107          (b) the licensee or permittee when selling, offering, or furnishing the flavored malt
             1108      beverage complies with the requirements of this title for selling, offering, or furnishing a beer
             1109      under the license or permit held by the licensee or permittee.
             1110          (3) This section does not apply to liability under Chapter 14a, Alcoholic Beverage
             1111      Liability.
             1112          Section 20. Section 32A-2-101 is amended to read:
             1113           32A-2-101. Commission's power to establish state stores -- Limitations.
             1114          (1) (a) The commission may establish state stores in numbers and at places, owned or
             1115      leased by the department, [it] the commission considers proper for the sale of liquor, by
             1116      employees of the state, in accordance with this title and the rules made under this title.
             1117          (b) [Employees of state stores are] An employee of a state store is considered
             1118      [employees] an employee of the department and shall meet all qualification requirements for
             1119      employment [outlined] in Section 32A-1-111 .
             1120          (2) (a) The total number of state stores may not at any time aggregate more than that
             1121      number determined by dividing the population of the state by 48,000.


             1122          (b) For purposes of this Subsection (2), population shall be determined by:
             1123          (i) the most recent United States decennial or special census; or
             1124          (ii) [any other] another population determination made by the United States or state
             1125      governments.
             1126          (3) (a) [A] Except as provided in Subsection (3)(b) or (c), a state store may not be
             1127      established:
             1128          (i) within 600 feet of [any public or private school, church, public library, public
             1129      playground, or park] a community location, as measured by the method in Subsection [(4).]
             1130      (3)(d); or
             1131          [(b) A state store may not be established]
             1132          (ii) within 200 feet of [any public or private school, church, public library, public
             1133      playground, or park] a community location, measured in a straight line from the nearest
             1134      entrance of the proposed state store to the nearest property boundary of the [public or private
             1135      school, church, public library, public playground, or park] community location.
             1136          [(c) The restrictions contained in Subsections (3)(a) and (b) govern unless one of the
             1137      following exceptions applies:]
             1138          [(i) with] (b) With respect to the establishment of a state store [within a city of the
             1139      third, fourth, or fifth class, a town, or the unincorporated area of a county], the commission may
             1140      authorize a variance that reduces the proximity [requirements] requirement of Subsection
             1141      (3)(a)(i) [or (b)] if:
             1142          [(A)] (i) the commission finds that alternative locations for establishing a state store in
             1143      the community are limited;
             1144          [(B)] (ii) a public hearing [has been] is held in the city, town, or county, and where
             1145      practical in the neighborhood concerned; [and]
             1146          [(C)] (iii) after giving full consideration to all of the attending circumstances and the
             1147      policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
             1148      establishing the state store would not be detrimental to the public health, peace, safety, and
             1149      welfare of the community; [or] and


             1150          [(ii) with respect to the establishment of a state store in any location, the commission
             1151      may authorize a variance to reduce the proximity requirements of Subsection (3)(a) or (b) in
             1152      relation to a church:]
             1153          [(A) if the local governing body of the church in question gives its written consent to the
             1154      variance;]
             1155          [(B) following a public hearing in the county, and where practical in the neighborhood
             1156      concerned; and]
             1157          [(C) after giving full consideration to all of the attending circumstances and the policies
             1158      stated in Subsections 32A-1-104 (3) and (4).]
             1159          [(4) With respect to any public or private school, church, public library, public
             1160      playground, or park, the]
             1161          (iv) (A) the community location governing authority gives its written consent to the
             1162      variance; or
             1163          (B) when written consent is not given by the community location governing authority,
             1164      the commission finds that:
             1165          (I) there is substantial unmet public demand to consume alcohol within the geographic
             1166      boundary of the local authority in which the state store is to be located;
             1167          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1168      described in Subsection (3)(b)(iv)(B)(I) other than through the establishment of a state store;
             1169      and
             1170          (III) there is no reasonably viable alternative location within the geographic boundary of
             1171      the local authority in which the state store is to be located for establishing a state store to satisfy
             1172      the unmet demand described in Subsection (3)(b)(iv)(B)(I).
             1173          (c) With respect to the establishment of a state store, the commission may authorize a
             1174      variance that reduces the proximity requirement of Subsection (3)(a)(ii) if:
             1175          (i) the community location at issue is:
             1176          (A) a public library; or
             1177          (B) a public park;


             1178          (ii) the commission finds that alternative locations for establishing a state store in the
             1179      community are limited;
             1180          (iii) a public hearing is held in the city, town, or county, and where practical in the
             1181      neighborhood concerned;
             1182          (iv) after giving full consideration to all of the attending circumstances and the policies
             1183      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1184      state store would not be detrimental to the public health, peace, safety, and welfare of the
             1185      community; and
             1186          (v) (A) the community location governing authority gives its written consent to the
             1187      variance; or
             1188          (B) when written consent is not given by the community location governing authority,
             1189      the commission finds that:
             1190          (I) there is substantial unmet public demand to consume alcohol within the geographic
             1191      boundary of the local authority in which the state store is to be located;
             1192          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1193      described in Subsection (3)(c)(v)(B)(I) other than through the establishment of a state store;
             1194      and
             1195          (III) there is no reasonably viable alternative location within the geographic boundary of
             1196      the local authority in which the state store is to be located for establishing a state store to satisfy
             1197      the unmet demand described in Subsection (3)(c)(v)(B)(I).
             1198          (d) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
             1199      nearest entrance of the state store by following the shortest route of ordinary pedestrian travel
             1200      to the property boundary of the [public or private school, church, public library, public
             1201      playground, school playground, or park] community location.
             1202          [(5)] (4) (a) Nothing in this section prevents the commission from considering the
             1203      proximity of any educational, religious, and recreational facility, or any other relevant factor in
             1204      reaching a decision on a proposed location.
             1205          (b) For purposes of this Subsection [(5)] (4), "educational facility" includes:


             1206          (i) a nursery school;
             1207          (ii) an infant day care center; and
             1208          (iii) a trade and technical school.
             1209          Section 21. Section 32A-3-101 is amended to read:
             1210           32A-3-101. Commission's power to establish package agencies -- Limitations.
             1211          (1) (a) The commission may, when [considered] it considers necessary, create a
             1212      package [agencies] agency by entering into a contractual [relationships with persons]
             1213      relationship with a person to sell liquor in sealed packages from premises other than those
             1214      owned or leased by the state.
             1215          (b) The commission shall authorize a person to operate a package agency by issuing a
             1216      certificate from the commission that designates the person in charge of the agency as a "package
             1217      agent" as defined under Section 32A-1-105 .
             1218          (2) (a) Subject to this Subsection (2), the total number of package agencies may not at
             1219      any time aggregate more than that number determined by dividing the population of the state by
             1220      18,000.
             1221          (b) For purposes of Subsection (2)(a), population shall be determined by:
             1222          (i) the most recent United States decennial or special census; or
             1223          (ii) [any other] another population determination made by the United States or state
             1224      governments.
             1225          (c) (i) The commission may establish seasonal package agencies established in areas the
             1226      commission considers necessary.
             1227          (ii) A seasonal package agency shall be for a period of six consecutive months.
             1228          (iii) A package agency established for operation during a summer time period is known
             1229      as a "Seasonal A" package agency. The period of operation for a "Seasonal A" agency shall:
             1230          (A) begin on May 1; and
             1231          (B) end on October 31.
             1232          (iv) A package agency established for operation during a winter time period is known as
             1233      a "Seasonal B" package agency. The period of operation for a "Seasonal B" agency shall:


             1234          (A) begin on November 1; and
             1235          (B) end on April 30.
             1236          (v) In determining the number of package agencies that the commission may establish
             1237      under this section:
             1238          (A) a seasonal package agency is counted as 1/2 of one package agency; and
             1239          (B) each "Seasonal A" agency shall be paired with a "Seasonal B" agency.
             1240          (d) (i) If the location, design, and construction of a hotel may require more than one
             1241      package agency sales location to serve the public convenience, the commission may authorize a
             1242      single package agent to sell liquor at as many as three locations within the hotel under one
             1243      package agency if:
             1244          (A) the hotel has a minimum of 150 guest rooms; and
             1245          (B) all locations under the agency are:
             1246          (I) within the same hotel facility; and
             1247          (II) on premises that are managed or operated and owned or leased by the package
             1248      agent.
             1249          (ii) [Facilities] A facility other than [hotels] a hotel may not have more than one sales
             1250      location under a single package agency.
             1251          (3) (a) [As measured by the method in Subsection (4), the] Except as provided in
             1252      Subsection (3)(b), (c), or (d), the premises of a package agency may not be established:
             1253          (i) within 600 feet of [any public or private school, church, public library, public
             1254      playground, or park.] a community location, as measured by the method described in Subsection
             1255      (3)(e); or
             1256          [(b) The premises of a package agency may not be established]
             1257          (ii) within 200 feet of [any public or private school, church, public library, public
             1258      playground, or park] a community location, measured in a straight line from the nearest
             1259      entrance of the proposed package agency to the nearest property boundary of the [public or
             1260      private school, church, public library, public playground, or park] community location.
             1261          [(c) The restrictions contained in Subsections (3)(a) and (b) govern unless one of the


             1262      following exemptions applies:]
             1263          [(i) with] (b) With respect to the establishment of a package agency [within a city of
             1264      the third, fourth, or fifth class, a town, or the unincorporated area of a county], the commission
             1265      may authorize a variance to reduce the proximity [requirements] requirement of Subsection
             1266      (3)(a)(i) [or (b)] if:
             1267          [(A)] (i) the local [governing] authority [has granted] grants its written consent to the
             1268      variance;
             1269          [(B)] (ii) the commission finds that alternative locations for establishing a package
             1270      agency in the community are limited;
             1271          [(C)] (iii) a public hearing [has been] is held in the city, town, or county, and where
             1272      practical in the neighborhood concerned; [and]
             1273          [(D)] (iv) after giving full consideration to all of the attending circumstances and the
             1274      policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
             1275      establishing the package agency would not be detrimental to the public health, peace, safety,
             1276      and welfare of the community; and
             1277          [(ii) with respect to the establishment of a package agency in any location, the
             1278      commission may authorize a variance to reduce the proximity requirements of Subsection (3)(a)
             1279      or (b) in relation to a church:]
             1280          [(A) if the local governing body of the church in question gives its written consent to
             1281      the variance;]
             1282          [(B) following a public hearing in the city, town, or county and where practical in the
             1283      neighborhood concerned; and]
             1284          [(C) after giving full consideration to all of the attending circumstances and the policies
             1285      stated in Subsections 32A-1-104 (3) and (4); or]
             1286          (v) (A) the community location governing authority gives its written consent to the
             1287      variance; or
             1288          (B) when written consent is not given by the community location governing authority,
             1289      the commission finds that the applicant has established that:


             1290          (I) there is substantial unmet public demand to consume alcohol within the geographic
             1291      boundary of the local authority in which the package agency is to be located;
             1292          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1293      described in Subsection (3)(b)(v)(B)(I) other than through the establishment of a package
             1294      agency; and
             1295          (III) there is no reasonably viable alternative location within the geographic boundary of
             1296      the local authority in which the package agency is to be located for establishing a package
             1297      agency to satisfy the unmet demand described in Subsection (3)(b)(v)(B)(I).
             1298          (c) With respect to the establishment of a package agency, the commission may
             1299      authorize a variance that reduces the proximity requirement of Subsection (3)(a)(ii) if:
             1300          (i) the community location at issue is:
             1301          (A) a public library; or
             1302          (B) a public park;
             1303          (ii) the local authority grants its written consent to the variance;
             1304          (iii) the commission finds that alternative locations for establishing a package agency in
             1305      the community are limited;
             1306          (iv) a public hearing is held in the city, town, or county, and where practical in the
             1307      neighborhood concerned;
             1308          (v) after giving full consideration to all of the attending circumstances and the policies
             1309      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1310      package agency would not be detrimental to the public health, peace, safety, and welfare of the
             1311      community; and
             1312          (vi) (A) the community location governing authority gives its written consent to the
             1313      variance; or
             1314          (B) when written consent is not given by the community location governing authority,
             1315      the commission finds that the applicant has established that:
             1316          (I) there is substantial unmet public demand to consume alcohol within the geographic
             1317      boundary of the local authority in which the package agency is to be located;


             1318          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1319      described in Subsection (3)(c)(vi)(B)(I) other than through the establishment of a package
             1320      agency; and
             1321          (III) there is no reasonably viable alternative location within the geographic boundary of
             1322      the local authority in which the package agency is to be located for establishing a package
             1323      agency to satisfy the unmet demand described in Subsection (3)(c)(vi)(B)(I).
             1324          [(iii) with] (d) With respect to the premises of a package agency issued by the
             1325      commission that undergoes a change of ownership, the commission may waive or vary the
             1326      proximity requirements of Subsection (3)(a) [or (b)] in considering whether to grant a package
             1327      agency to the new owner of the premises if:
             1328          (i) (A) the premises previously received a variance reducing the proximity
             1329      [requirements] requirement of Subsection (3)(a)(i) [or (b)]; or
             1330          (B) the premises received a variance reducing the proximity requirement of Subsection
             1331      (3)(a)(ii) on or before May 4, 2008; or
             1332          [(B)] (ii) a variance from proximity [or distance] requirements was otherwise allowed
             1333      under this title.
             1334          [(4) With respect to any public or private school, church, public library, public
             1335      playground, or park, the]
             1336          (e) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
             1337      nearest entrance of the package agency by following the shortest route of ordinary pedestrian
             1338      travel to the property boundary of the [public or private school, church, public library, public
             1339      playground, school playground, or park] community location.
             1340          [(5)] (4) (a) Nothing in this section prevents the commission from considering the
             1341      proximity of any educational, religious, and recreational facility, or any other relevant factor in
             1342      reaching a decision on a proposed location.
             1343          (b) For purposes of Subsection [(5)] (4)(a), "educational facility" includes:
             1344          (i) a nursery school;
             1345          (ii) an infant day care center; and


             1346          (iii) a trade and technical school.
             1347          [(6)] (5) (a) The package agent, under the direction of the department, [shall be] is
             1348      responsible for implementing and enforcing this title and the rules adopted under this title to the
             1349      extent they relate to the conduct of the package agency and its sale of liquor.
             1350          (b) A package agent may not be, or construed to be, a state employee nor be otherwise
             1351      entitled to any benefits of employment from the state.
             1352          (c) A package agent, when selling liquor from a package agency, is considered an agent
             1353      of the state only to the extent specifically expressed in the package agency agreement.
             1354          [(7)] (6) The commission may prescribe by policy, directive, or rule, consistent with this
             1355      title, general operational requirements of all package agencies relating to:
             1356          (a) physical facilities;
             1357          (b) conditions of operation;
             1358          (c) hours of operation;
             1359          (d) inventory levels;
             1360          (e) payment schedules;
             1361          (f) methods of payment;
             1362          (g) premises security; and
             1363          (h) any other matters considered appropriate by the commission.
             1364          Section 22. Section 32A-3-102 is amended to read:
             1365           32A-3-102. Application requirements.
             1366          (1) A person seeking to operate a package agency as a package agent under this chapter
             1367      shall file a written application with the department in a form prescribed by the department.
             1368          (2) The application shall be accompanied by:
             1369          (a) a nonrefundable application fee of $100;
             1370          (b) written consent of the local authority;
             1371          (c) evidence of proximity to any [public or private school, church, public library, public
             1372      playground, or park, and if the proximity is within the 600 foot or 200 foot limitations of
             1373      Subsections 32A-3-101 (3) and (4), the application shall be processed in accordance with those


             1374      subsections] community location, with proximity requirements being governed by Section
             1375      32A-3-101 ;
             1376          (d) a bond as specified by Section 32A-3-105 ;
             1377          (e) a floor plan of the premises, including a description and highlighting of that part of
             1378      the premises in which the applicant proposes that the package agency be established;
             1379          (f) evidence that the package agency is carrying public liability insurance in an amount
             1380      and form satisfactory to the department;
             1381          (g) a signed consent form stating that the package agent will permit any authorized
             1382      representative of the commission, department, or any law enforcement officer to have
             1383      unrestricted right to enter the package agency;
             1384          (h) in the case of an applicant that is a partnership, corporation, or limited liability
             1385      company, proper verification evidencing that the person or persons signing the package agency
             1386      application are authorized to so act on behalf of the partnership, corporation, or limited liability
             1387      company; and
             1388          (i) any other information as the commission or department may direct.
             1389          Section 23. Section 32A-4-101 is amended to read:
             1390           32A-4-101. Commission's power to grant licenses -- Limitations.
             1391          (1) Before a restaurant may sell or allow the consumption of liquor on its premises, it
             1392      shall first obtain a license from the commission as provided in this part.
             1393          (2) The commission may issue restaurant liquor licenses for the purpose of establishing
             1394      restaurant liquor outlets at places and in numbers it considers proper for the storage, sale, and
             1395      consumption of liquor on premises operated as public restaurants.
             1396          (3) (a) Subject to the other provisions of this Subsection (3), the total number of
             1397      restaurant liquor licenses may not at any time aggregate more than that number determined by
             1398      dividing the population of the state by 5,200.
             1399          (b) For purposes of this Subsection (3), population shall be determined by:
             1400          (i) the most recent United States decennial or special census; or
             1401          (ii) [any other] another population determination made by the United States or state


             1402      governments.
             1403          (c) (i) The commission may issue seasonal restaurant liquor licenses established in areas
             1404      the commission considers necessary.
             1405          (ii) A seasonal restaurant liquor license shall be for a period of six consecutive months.
             1406          (iii) A restaurant liquor license issued for operation during a summer time period is
             1407      known as a "Seasonal A" restaurant liquor license. The period of operation for a "Seasonal A"
             1408      restaurant liquor license shall:
             1409          (A) begin on May 1; and
             1410          (B) end on October 31.
             1411          (iv) A restaurant liquor license issued for operation during a winter time period is
             1412      known as a "Seasonal B" restaurant liquor license. The period of operation for a "Seasonal B"
             1413      restaurant liquor license shall:
             1414          (A) begin on November 1; and
             1415          (B) end on April 30.
             1416          (v) In determining the number of restaurant liquor licenses that the commission may
             1417      issue under this section:
             1418          (A) a seasonal license is counted as 1/2 of one restaurant liquor license; and
             1419          (B) each "Seasonal A" license shall be paired with a "Seasonal B" license.
             1420          (d) (i) If the location, design, and construction of a hotel may require more than one
             1421      restaurant liquor sales location within the hotel to serve the public convenience, the commission
             1422      may authorize the sale of liquor at as many as three restaurant locations within the hotel under
             1423      one license if:
             1424          (A) the hotel has a minimum of 150 guest rooms; and
             1425          (B) all locations under the license are:
             1426          (I) within the same hotel facility; and
             1427          (II) on premises that are managed or operated and owned or leased by the licensee.
             1428          (ii) [Facilities] A facility other than [hotels] a hotel shall have a separate restaurant
             1429      liquor license for each restaurant where liquor is sold.


             1430          (4) (a) [The] Except as provided in Subsection (4)(b), (c), or (d), the premises of a
             1431      restaurant liquor license may not be established:
             1432          (i) within 600 feet of [any public or private school, church, public library, public
             1433      playground, or park,] a community location, as measured by the method in Subsection [(5).]
             1434      (4)(e);
             1435          [(b) The premises of a restaurant liquor license may not be established]
             1436          (ii) within 200 feet of [any public or private school, church, public library, public
             1437      playground, or park] a community location, measured in a straight line from the nearest
             1438      entrance of the proposed outlet to the nearest property boundary of the [public or private
             1439      school, church, public library, public playground, or park] community location.
             1440          [(c) The restrictions contained in Subsections (4)(a) and (b) govern unless one of the
             1441      following exemptions applies:]
             1442          [(i) with] (b) With respect to the establishment of a restaurant liquor license [in any
             1443      location], the commission may authorize a variance to reduce the proximity [requirements]
             1444      requirement of Subsection (4)(a)(i) [or (b)] if:
             1445          [(A)] (i) the local [governing] authority [has granted] grants its written consent to the
             1446      variance;
             1447          [(B)] (ii) the commission finds that alternative locations for establishing a restaurant
             1448      liquor license in the community are limited;
             1449          [(C)] (iii) a public hearing [has been] is held in the city, town, or county, and where
             1450      practical in the neighborhood concerned; [and]
             1451          [(D)] (iv) after giving full consideration to all of the attending circumstances and the
             1452      policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
             1453      establishing the restaurant liquor license would not be detrimental to the public health, peace,
             1454      safety, and welfare of the community; [or] and
             1455          (v) (A) the community location governing authority gives its written consent to the
             1456      variance; or
             1457          (B) when written consent is not given by the community location governing authority,


             1458      the commission finds that the applicant has established that:
             1459          (I) there is substantial unmet public demand to consume alcohol in a public setting
             1460      within the geographic boundary of the local authority in which the restaurant is to be located;
             1461          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1462      described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a restaurant
             1463      liquor license; and
             1464          (III) there is no reasonably viable alternative location within the geographic boundary of
             1465      the local authority in which the restaurant is to be located for establishing a restaurant liquor
             1466      license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
             1467          (c) With respect to the establishment of a restaurant liquor license, the commission may
             1468      authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
             1469          (i) the community location at issue is:
             1470          (A) a public library; or
             1471          (B) a public park;
             1472          (ii) the local authority grants its written consent to the variance;
             1473          (iii) the commission finds that alternative locations for establishing a restaurant liquor
             1474      license in the community are limited;
             1475          (iv) a public hearing is held in the city, town, or county, and where practical in the
             1476      neighborhood concerned;
             1477          (v) after giving full consideration to all of the attending circumstances and the policies
             1478      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1479      restaurant liquor license would not be detrimental to the public health, peace, safety, and
             1480      welfare of the community; and
             1481          (vi) (A) the community location governing authority gives its written consent to the
             1482      variance; or
             1483          (B) when written consent is not given by the community location governing authority,
             1484      the commission finds that the applicant has established that:
             1485          (I) there is substantial unmet public demand to consume alcohol in a public setting


             1486      within the geographic boundary of the local authority in which the restaurant is to be located;
             1487          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1488      described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a restaurant
             1489      liquor license; and
             1490          (III) there is no reasonably viable alternative location within the geographic boundary of
             1491      the local authority in which the restaurant is to be located for establishing a restaurant liquor
             1492      license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
             1493          [(ii) with] (d) With respect to the premises of a restaurant liquor license issued by the
             1494      commission that undergoes a change of ownership, the commission may waive or vary the
             1495      proximity requirements of Subsection (4)(a) [or (b)] in considering whether to grant a
             1496      restaurant liquor license to the new owner of the premises if:
             1497          (i) (A) the premises previously received a variance reducing the proximity
             1498      [requirements] requirement of Subsection (4)(a)(i) [or (b)]; or
             1499          (B) the premises received a variance reducing the proximity requirement of Subsection
             1500      (4)(a)(ii) on or before May 4, 2008; or
             1501          [(B)] (ii) a variance from proximity [or distance] requirements was otherwise allowed
             1502      under this title.
             1503          [(5) With respect to any public or private school, church, public library, public
             1504      playground, or park, the]
             1505          (e) The 600 foot limitation described in Subsection (4)(a)(i) is measured from the
             1506      nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
             1507      [property boundary of the public or private school, church, public library, public playground,
             1508      school playground, or park] community location.
             1509          [(6)] (5) (a) Nothing in this section prevents the commission from considering the
             1510      proximity of any educational, religious, and recreational facility, or any other relevant factor in
             1511      reaching a decision on a proposed location.
             1512          (b) For purposes of this Subsection [(6)] (5), "educational facility" includes:
             1513          (i) a nursery school;


             1514          (ii) an infant day care center; and
             1515          (iii) a trade and technical school.
             1516          Section 24. Section 32A-4-102 is amended to read:
             1517           32A-4-102. Application and renewal requirements.
             1518          (1) A person seeking a restaurant liquor license under this part shall file a written
             1519      application with the department, in a form prescribed by the department. It shall be
             1520      accompanied by:
             1521          (a) a nonrefundable $250 application fee;
             1522          (b) an initial license fee of $1,750, which is refundable if a license is not granted;
             1523          (c) written consent of the local authority;
             1524          (d) a copy of the applicant's current business license;
             1525          (e) evidence of proximity to any [public or private school, church, public library, public
             1526      playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
             1527      Subsections 32A-4-101 (4) and (5), the application shall be processed in accordance with those
             1528      subsections] community location, with proximity requirements being governed by Section
             1529      32A-4-101 ;
             1530          (f) a bond as specified by Section 32A-4-105 ;
             1531          (g) a floor plan of the restaurant, including consumption areas and the area where the
             1532      applicant proposes to keep, store, and sell liquor;
             1533          (h) evidence that the restaurant is carrying public liability insurance in an amount and
             1534      form satisfactory to the department;
             1535          (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
             1536      $500,000 per occurrence and $1,000,000 in the aggregate;
             1537          (j) a signed consent form stating that the restaurant will permit any authorized
             1538      representative of the commission, department, or any law enforcement officer unrestricted right
             1539      to enter the restaurant;
             1540          (k) in the case of an applicant that is a partnership, corporation, or limited liability
             1541      company, proper verification evidencing that the person or persons signing the restaurant


             1542      application are authorized to so act on behalf of the partnership, corporation, or limited liability
             1543      company; and
             1544          (l) any other information the commission or department may require.
             1545          (2) (a) All restaurant liquor licenses expire on October 31 of each year.
             1546          (b) [Persons] A person desiring to renew [their] the person's restaurant liquor license
             1547      shall by no later than September 30 submit:
             1548          (i) a completed renewal application to the department; and
             1549          (ii) a renewal fee in the following amount:
             1550          Gross Cost of Liquor in Previous License Year for the Licensee        Renewal Fee
             1551          under $5,000                                    $750
             1552          equals or exceeds $5,000 but less than $10,000                $900
             1553          equals or exceeds $10,000 but less than $25,000                $1,250
             1554          equals or exceeds $25,000                            $1,500
             1555          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             1556      the license effective on the date the existing license expires.
             1557          (d) [Renewal applications] A renewal application shall be in a form as prescribed by the
             1558      department.
             1559          (3) To ensure compliance with Subsection 32A-4-106 (25), the commission may
             1560      suspend or revoke [any] a restaurant liquor license if the restaurant liquor licensee does not
             1561      immediately notify the department of any change in:
             1562          (a) ownership of the restaurant;
             1563          (b) for a corporate owner, the:
             1564          (i) corporate officers or directors; or
             1565          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             1566      corporation; or
             1567          (c) for a limited liability company:
             1568          (i) managers; or
             1569          (ii) members owning at least 20% of the limited liability company.


             1570          Section 25. Section 32A-4-104 is amended to read:
             1571           32A-4-104. Commission and department duties before granting licenses.
             1572          (1) (a) Before a restaurant liquor license may be granted by the commission, the
             1573      department shall conduct an investigation and may hold public hearings for the purpose of
             1574      gathering information and making recommendations to the commission as to whether or not a
             1575      license should be granted. [This]
             1576          (b) The department shall forward the information [shall be forwarded] and
             1577      recommendations described in Subsection (1)(a) to the commission to aid in [its] the
             1578      commission's determination.
             1579          (2) Before issuing [any] a restaurant liquor license, the commission shall:
             1580          (a) determine that:
             1581          (i) the applicant has complied with all basic qualifications and requirements for making
             1582      application for a license as provided by Sections 32A-4-102 and 32A-4-103 [,]; and [that]
             1583          (ii) the application is complete;
             1584          (b) consider the locality within which the proposed restaurant liquor outlet is located,
             1585      including [but not limited to]:
             1586          (i) physical characteristics such as:
             1587          (A) condition of the premises[,];
             1588          (B) square footage[,]; and
             1589          (C) parking availability; and
             1590          (ii) operational factors such as:
             1591          (A) tourist traffic[,];
             1592          (B) proximity to and density of other state stores, package agencies, and outlets[,];
             1593          (C) demographics[,];
             1594          (D) population to be served[,]; and
             1595          (E) the extent of and proximity to any [school, church, public library, public
             1596      playground, or park] community location;
             1597          (c) consider the applicant's ability to manage and operate a restaurant liquor license,


             1598      including [but not limited to]:
             1599          (i) management experience[,];
             1600          (ii) past retail liquor experience[,]; and
             1601          (iii) the type of management scheme employed by the restaurant;
             1602          (d) consider the nature or type of restaurant operation of the proposed liquor licensee,
             1603      including [but not limited to,]:
             1604          (i) the type of menu items offered and emphasized[,];
             1605          (ii) whether the restaurant emphasizes service to an adult clientele or to minors[,];
             1606          (iii) the hours of operation[,];
             1607          (iv) the seating capacity of the facility[,]; and
             1608          (v) the gross sales of food items; and
             1609          (e) consider any other factors or circumstances [it] the commission considers necessary.
             1610          Section 26. Section 32A-4-106 is amended to read:
             1611           32A-4-106. Operational restrictions.
             1612          [Each] A person granted a restaurant liquor license and the employees and management
             1613      personnel of the restaurant shall comply with the following conditions and requirements.
             1614      Failure to comply may result in a suspension or revocation of the restaurant liquor license or
             1615      other disciplinary action taken against individual employees or management personnel.
             1616          (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from a state
             1617      [stores] store or package [agencies] agency.
             1618          (b) Liquor purchased from a state store or package agency may be transported by the
             1619      restaurant liquor licensee from the place of purchase to the licensed premises.
             1620          (c) Payment for liquor shall be made in accordance with rules established by the
             1621      commission.
             1622          (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in a
             1623      quantity not to exceed [one ounce] 1.5 ounces per beverage dispensed through a calibrated
             1624      metered dispensing system approved by the department in accordance with commission rules
             1625      adopted under this title, except that:


             1626          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1627      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1628      restrictions:
             1629          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of a
             1630      primary spirituous liquor;
             1631          (ii) the secondary ingredient [is] may not be the only spirituous liquor in the beverage;
             1632          (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
             1633      on the floor plan provided to the department; and
             1634          (iv) [all] a flavoring [containers] container shall be plainly and conspicuously labeled
             1635      "flavorings";
             1636          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1637      system if used:
             1638          (i) as a flavoring on [desserts] a dessert; and
             1639          (ii) in the preparation of a flaming food [dishes, drinks, and desserts] dish, drink, or
             1640      dessert;
             1641          (c) [each] a restaurant patron may have no more than [2.75] 2.5 ounces of spirituous
             1642      liquor at a time; and
             1643          (d) [each] a restaurant patron may have no more than one spirituous liquor drink at a
             1644      time before the patron.
             1645          (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
             1646      exceed five ounces per glass or individual portion.
             1647          (ii) An individual portion of wine may be served to a patron in more than one glass as
             1648      long as the total amount of wine does not exceed five ounces.
             1649          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1650      Subsection (7)(e).
             1651          (b) (i) Wine may be sold and served in [containers] a container not exceeding 1.5 liters
             1652      at [prices] a price fixed by the commission to [tables] a table of four or more persons.
             1653          (ii) Wine may be sold and served in [containers] a container not exceeding 750


             1654      milliliters at [prices] a price fixed by the commission to [tables] a table of less than four persons.
             1655          (c) A wine service may be performed and a service charge assessed by [the] a restaurant
             1656      liquor licensee as authorized by commission rule for wine purchased at the restaurant.
             1657          (4) (a) Heavy beer may be served in an original [containers] container not exceeding
             1658      one liter at [prices] a price fixed by the commission.
             1659          (b) A flavored malt beverage may be served in an original container not exceeding one
             1660      liter at a price fixed by the commission.
             1661          [(b)] (c) A service charge may be assessed by [the] a restaurant liquor licensee as
             1662      authorized by commission rule for heavy beer or a flavored malt beverage purchased at the
             1663      restaurant.
             1664          (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant [licensed to sell] liquor licensee
             1665      may sell beer for on-premise consumption:
             1666          (A) in an open container; and
             1667          (B) on draft.
             1668          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             1669      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1670      container that exceeds one liter.
             1671          (b) A restaurant [licensed under this chapter] liquor licensee that sells beer pursuant to
             1672      Subsection (5)(a):
             1673          (i) may do so without obtaining a separate on-premise beer retailer license from the
             1674      commission; and
             1675          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1676      Retailer Licenses, that apply to an on-premise beer [retailers] retailer except when those
             1677      restrictions are inconsistent with or less restrictive than the operational restrictions under this
             1678      part.
             1679          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1680      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             1681      restaurant's:


             1682          (i) state liquor license; and
             1683          (ii) alcoholic beverage license issued by the local authority.
             1684          (6) [Alcoholic beverages] An alcoholic beverage may not be stored, served, or sold in
             1685      [any] a place other than as designated in the restaurant liquor licensee's application, unless the
             1686      restaurant liquor licensee first applies for and receives approval from the department for a
             1687      change of location within the restaurant.
             1688          (7) (a) (i) A patron may only make an alcoholic beverage [purchases] purchase in the
             1689      restaurant from and be served by a person employed, designated, and trained by the restaurant
             1690      liquor licensee to sell and serve an alcoholic [beverages] beverage.
             1691          (ii) Notwithstanding Subsection (7)(a)(i), a patron who [has purchased] purchases
             1692      bottled wine from an employee of the restaurant or [has carried] carries bottled wine onto the
             1693      premises of the restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle
             1694      to the patron or others at the patron's table.
             1695          (b) [Alcoholic beverages] An alcoholic beverage shall be delivered by a server to the
             1696      patron.
             1697          (c) [Any] An alcoholic beverage may only be consumed at the patron's table or counter.
             1698          (d) [Alcoholic beverages] An alcoholic beverage may not be served to or consumed by
             1699      a patron at a bar.
             1700          (e) [Each] A restaurant patron may have no more than two alcoholic beverages of any
             1701      kind at a time before the patron, subject to the limitation in Subsection (2)(d).
             1702          (8) The liquor storage area shall remain locked at all times other than those hours and
             1703      days when liquor sales are authorized by law.
             1704          (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             1705      restaurant of a restaurant liquor licensee during the following days or hours:
             1706          (i) until after the polls are closed on the day of [any] a:
             1707          (A) regular general election;
             1708          (B) regular primary election; or
             1709          (C) statewide special election;


             1710          (ii) until after the polls are closed on the day of [any] a municipal, local district, special
             1711      service district, or school election, but only:
             1712          (A) within the boundaries of the municipality, local district, special service district, or
             1713      school district; and
             1714          (B) if required by local ordinance; and
             1715          (iii) on any other day after 12 midnight and before 12 noon.
             1716          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             1717      Licenses, for on-premise beer licensees.
             1718          (10) [Alcoholic beverages] An alcoholic beverage may not be sold except in connection
             1719      with an order for food prepared, sold, and served at the restaurant.
             1720          (11) [Alcoholic beverages] An alcoholic beverage may not be sold, served, or otherwise
             1721      furnished to [any] a:
             1722          (a) minor;
             1723          (b) person actually, apparently, or obviously intoxicated;
             1724          (c) known habitual drunkard; or
             1725          (d) known interdicted person.
             1726          (12) (a) (i) Liquor may be sold only at [prices] a price fixed by the commission.
             1727          (ii) Liquor may not be sold at a discount [prices] price on any date or at any time.
             1728          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             1729      beverage to the restaurant liquor licensee.
             1730          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1731      over consumption or intoxication.
             1732          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1733      hours of [the restaurant's] a restaurant liquor licensee's business day such as a "happy hour."
             1734          (e) [The sale or service of more] More than one alcoholic beverage may not be sold or
             1735      served for the price of a single alcoholic beverage [is prohibited].
             1736          (f) [The sale or service of an] An indefinite or unlimited number of alcoholic beverages
             1737      during [any] a set period may not be sold or served for a fixed price [is prohibited].


             1738          (g) A restaurant liquor licensee may not engage in a public promotion involving or
             1739      offering free an alcoholic [beverages] beverage to the general public.
             1740          (13) [Alcoholic beverages] An alcoholic beverage may not be purchased for a patron of
             1741      a restaurant by:
             1742          (a) the restaurant liquor licensee; or
             1743          (b) [any] an employee or agent of the restaurant liquor licensee.
             1744          (14) (a) A person may not bring onto the premises of a restaurant liquor licensee [any]
             1745      an alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             1746      discretion of the restaurant liquor licensee, bottled wine onto the premises of [any] a restaurant
             1747      liquor licensee for on-premise consumption.
             1748          (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or [its
             1749      officers, managers, employees, or agents] an officer, manager, employee, or agent of the
             1750      restaurant liquor licensee may not allow:
             1751          (i) a person to bring onto the restaurant premises [any] an alcoholic beverage for
             1752      on-premise consumption; or
             1753          (ii) consumption of [any such] an alcoholic beverage [on its] described in this
             1754      Subsection (14) on the restaurant liquor licensee's premises.
             1755          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             1756      or other representative of the restaurant liquor licensee upon entering the restaurant.
             1757          (d) A wine service may be performed and a service charge assessed by [the] a restaurant
             1758      liquor licensee as authorized by commission rule for wine carried in by a patron.
             1759          (15) (a) Except as provided in Subsection (15)(b), a restaurant liquor licensee [and its
             1760      employees] or an employee of the restaurant liquor licensee may not permit a restaurant patron
             1761      to carry from the restaurant premises an open container that:
             1762          (i) is used primarily for drinking purposes; and
             1763          (ii) contains [any] an alcoholic beverage.
             1764          (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
             1765      restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought


             1766      onto the premises of the restaurant in accordance with Subsection (14), [provided] only if the
             1767      bottle [has been] is recorked or recapped before removal.
             1768          (16) (a) A restaurant liquor licensee may not employ a minor [may not be employed by
             1769      a restaurant licensee] to sell or dispense an alcoholic [beverages] beverage.
             1770          (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
             1771      employed to enter the sale at a cash register or other sales recording device.
             1772          (17) An employee of a restaurant liquor licensee, while on duty, may not:
             1773          (a) consume an alcoholic beverage; or
             1774          (b) be intoxicated.
             1775          (18) [Any] A charge or fee made in connection with the sale, service, or consumption
             1776      of liquor may be stated in food or alcoholic beverage menus including:
             1777          (a) a set-up charge;
             1778          (b) a service charge; or
             1779          (c) a chilling fee.
             1780          (19) [Each] A restaurant liquor licensee shall display in a prominent place in the
             1781      restaurant:
             1782          (a) the liquor license that is issued by the department;
             1783          (b) a list of the types and brand names of liquor being served through its calibrated
             1784      metered dispensing system; and
             1785          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1786      drugs is a serious crime that is prosecuted aggressively in Utah."
             1787          (20) A restaurant liquor licensee may not on the premises of the restaurant liquor
             1788      licensee:
             1789          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             1790      Chapter 10, Part 11, Gambling;
             1791          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1792      Part 11, Gambling; or
             1793          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires


             1794      the risking of something of value for a return or for an outcome when the return or outcome is
             1795      based upon an element of chance, excluding the playing of an amusement device that confers
             1796      only an immediate and unrecorded right of replay not exchangeable for value.
             1797          (21) (a) [Each] A restaurant liquor licensee shall maintain an expense ledger or record
             1798      showing in detail:
             1799          (i) quarterly expenditures made separately for:
             1800          (A) malt or brewed beverages;
             1801          (B) set-ups;
             1802          (C) liquor;
             1803          (D) food; and
             1804          (E) all other items required by the department; and
             1805          (ii) sales made separately for:
             1806          (A) malt or brewed beverages;
             1807          (B) set-ups;
             1808          (C) food; and
             1809          (D) all other items required by the department.
             1810          (b) [The] A restaurant liquor licensee shall keep a record required by Subsection (21)(a)
             1811      [shall be kept]:
             1812          (i) in a form approved by the department; and
             1813          (ii) current for each three-month period.
             1814          (c) [Each] An expenditure shall be supported by:
             1815          (i) a delivery [tickets] ticket;
             1816          (ii) [invoices] an invoice;
             1817          (iii) a receipted [bills] bill;
             1818          (iv) a canceled [checks] check;
             1819          (v) a petty cash [vouchers] voucher; or
             1820          (vi) other sustaining [data or memoranda] datum or memorandum.
             1821          (d) In addition to a ledger or record required under Subsection (21)(a), a restaurant


             1822      liquor licensee shall maintain accounting and other records and documents as the department
             1823      may require.
             1824          (e) [Any] A restaurant liquor licensee or person acting for the restaurant, who
             1825      knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes [the entries in any of
             1826      the books] an entry in a book of account or other [documents] document of the restaurant that
             1827      is required to be made, maintained, or preserved by this title or the rules of the commission for
             1828      the purpose of deceiving the commission or the department, or [any of their officials or
             1829      employees] an official or employee of the commission or department, is subject to:
             1830          (i) the suspension or revocation of the restaurant's liquor license; and
             1831          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1832          (22) (a) A restaurant liquor licensee may not close or cease operation for a period
             1833      longer than 240 hours, unless:
             1834          (i) the restaurant liquor licensee notifies the department in writing at least seven days
             1835      before the [closing] day on which the restaurant liquor licensee closes or ceases operation; and
             1836          (ii) the closure or cessation of operation is first approved by the department.
             1837          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, [immediate
             1838      notice of closure shall be made to] the restaurant liquor licensee shall immediately notify the
             1839      department by telephone.
             1840          (c) (i) The department may authorize a closure or cessation of operation for a period
             1841      not to exceed 60 days.
             1842          (ii) The department may extend the initial period an additional 30 days upon:
             1843          (A) written request of the restaurant liquor licensee; and [upon]
             1844          (B) a showing of good cause.
             1845          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             1846      commission approval.
             1847          (d) [Any] A notice shall include:
             1848          (i) the dates of closure or cessation of operation;
             1849          (ii) the reason for the closure or cessation of operation; and


             1850          (iii) the date on which the restaurant liquor licensee will reopen or resume operation.
             1851          (e) Failure of the restaurant liquor licensee to provide notice and to obtain department
             1852      authorization [prior to] before closure or cessation of operation [shall result] results in an
             1853      automatic forfeiture of:
             1854          (i) the license; and
             1855          (ii) the unused portion of the license fee for the remainder of the license year effective
             1856      immediately.
             1857          (f) Failure of the restaurant liquor licensee to reopen or resume operation by the
             1858      approved date [shall result] results in an automatic forfeiture of:
             1859          (i) the license; and
             1860          (ii) the unused portion of the license fee for the remainder of the license year.
             1861          (23) [Each] A restaurant liquor licensee shall maintain at least 70% of its total
             1862      restaurant business from the sale of food, which does not include mix for an alcoholic
             1863      [beverages] beverage or service charges.
             1864          (24) A restaurant liquor license may not be transferred from one location to another,
             1865      without prior written approval of the commission.
             1866          (25) (a) A person, having been granted a restaurant liquor license may not sell, transfer,
             1867      assign, exchange, barter, give, or attempt in any way to dispose of the restaurant liquor license
             1868      to [any other] another person whether for monetary gain or not.
             1869          (b) A restaurant liquor license has no monetary value for the purpose of any type of
             1870      disposition.
             1871          (26) [Each] A server of an alcoholic [beverages] beverage in a restaurant liquor
             1872      licensee's establishment shall keep a written beverage tab for each table or group that orders or
             1873      consumes an alcoholic [beverages] beverage on the premises. The beverage tab shall list the
             1874      type and amount of an alcoholic [beverages] beverage ordered or consumed.
             1875          (27) A person's willingness to serve an alcoholic [beverages] beverage may not be made
             1876      a condition of employment as a server with a restaurant that has a restaurant liquor license.
             1877          (28) A restaurant liquor licensee or an employee of the restaurant liquor licensee may


             1878      not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
             1879      Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             1880          (a) sell, distribute, possess, or use a controlled substance, as defined in Section 58-37-2 ;
             1881      or
             1882          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             1883      Section 58-37a-3 .
             1884          Section 27. Section 32A-4-206 is amended to read:
             1885           32A-4-206. Operational restrictions.
             1886          [Each] A person granted an airport lounge liquor license and the employees and
             1887      management personnel of the airport lounge shall comply with the following conditions and
             1888      requirements. Failure to comply may result in a suspension or revocation of the airport lounge
             1889      liquor license or other disciplinary action taken against individual employees or management
             1890      personnel.
             1891          (1) (a) Liquor may not be purchased by an airport lounge liquor licensee except from a
             1892      state [stores] store or package [agencies] agency.
             1893          (b) Liquor purchased from a state store or package agency may be transported by the
             1894      airport lounge liquor licensee from the place of purchase to the licensed premises.
             1895          (c) Payment for liquor shall be made in accordance with the rules established by the
             1896      commission.
             1897          (2) An airport lounge liquor licensee may sell or provide a primary spirituous liquor
             1898      only in a quantity not to exceed [one ounce] 1.5 ounces per beverage dispensed through a
             1899      calibrated metered dispensing system approved by the department in accordance with
             1900      commission rules adopted under this title, except that:
             1901          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1902      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1903      restrictions:
             1904          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of a
             1905      spirituous primary liquor;


             1906          (ii) the secondary ingredient [is] may not be the only spirituous liquor in the beverage;
             1907          (iii) the airport lounge liquor licensee shall designate a location where flavorings are
             1908      stored on the floor plan provided to the department; and
             1909          (iv) [all] a flavoring [containers] container shall be plainly and conspicuously labeled
             1910      "flavorings";
             1911          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1912      system if used:
             1913          (i) as a flavoring on [desserts] a dessert; and
             1914          (ii) in the preparation of a flaming food [dishes, drinks, and desserts] dish, drink, or
             1915      dessert; [and]
             1916          (c) [each] an airport lounge patron may have no more than [2.75] 2.5 ounces of
             1917      spirituous liquor at a time before the patron; and
             1918          (d) an airport lounge patron may have no more than two spirituous liquor drinks at a
             1919      time before the patron, except that an airport lounge patron may not have two spirituous liquor
             1920      drinks before the airport lounge patron if one of the spirituous liquor drinks consists only of the
             1921      primary spirituous liquor for the other spirituous liquor drink.
             1922          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             1923      exceed five ounces per glass or individual portion.
             1924          (ii) An individual portion may be served to a patron in more than one glass as long as
             1925      the total amount of wine does not exceed five ounces.
             1926          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1927      Subsection (7)(c).
             1928          (b) (i) Wine may be sold and served in [containers] a container not exceeding 1.5 liters
             1929      at [prices] a price fixed by the commission to [tables] a table of four or more persons.
             1930          (ii) Wine may be sold and served in [containers] a container not exceeding 750
             1931      milliliters at [prices] a price fixed by the commission to [tables] a table of less than four persons.
             1932          (c) A wine service may be performed and a service charge assessed by the airport
             1933      lounge liquor licensee as authorized by commission rule for wine purchased at the airport


             1934      lounge.
             1935          (4) (a) Heavy beer may be served in an original [containers] container not exceeding
             1936      one liter at [prices] a price fixed by the commission.
             1937          (b) A flavored malt beverage may be served in an original container not exceeding one
             1938      liter at a price fixed by the commission.
             1939          [(b)] (c) A service charge may be assessed by the airport lounge liquor licensee as
             1940      authorized by commission rule for heavy beer or a flavored malt beverage purchased at the
             1941      airport lounge.
             1942          (5) (a) (i) Subject to Subsection (5)(a)(ii), an airport lounge [licensed to sell] liquor
             1943      licensee may sell beer for on-premise consumption:
             1944          (A) in an open container; and
             1945          (B) on draft.
             1946          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             1947      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1948      container that exceeds one liter.
             1949          (b) An airport lounge liquor licensee that sells beer pursuant to Subsection (5)(a):
             1950          (i) may do so without obtaining a separate on-premise beer retailer license from the
             1951      commission; and
             1952          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1953      Retailer Licenses, that apply to an on-premise beer [retailers] retailer except when those
             1954      restrictions are inconsistent with or less restrictive than the operational restrictions under this
             1955      part.
             1956          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1957      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the airport
             1958      lounge's:
             1959          (i) state liquor license; and
             1960          (ii) alcoholic beverage license issued by the local authority.
             1961          (6) [Alcoholic beverages] An alcoholic beverage may not be stored, served, or sold in


             1962      [any] a place other than as designated in the airport lounge liquor licensee's application, unless
             1963      the airport lounge liquor licensee first applies for and receives approval from the department for
             1964      a change of location within the airport lounge.
             1965          (7) (a) A patron may only make [purchases] a purchase in the airport lounge from and
             1966      be served by a person employed, designated, and trained by the airport lounge liquor licensee to
             1967      sell, dispense, and serve an alcoholic [beverages] beverage.
             1968          (b) Notwithstanding Subsection (7)(a), a patron who [has purchased] purchases bottled
             1969      wine from an employee of the airport lounge may serve wine from the bottle to the patron or
             1970      others at the patron's table.
             1971          (c) [Each] An airport lounge patron may have no more than two alcoholic beverages of
             1972      any kind at a time before the patron, subject to the limitation in Subsection (2)(d).
             1973          (8) The liquor storage area shall remain locked at all times other than those hours and
             1974      days when liquor sales and service are authorized by law.
             1975          (9) [Alcoholic beverages] An alcoholic beverage may not be sold, offered for sale,
             1976      served, or otherwise furnished at an airport lounge on any day after 12 midnight and before 8
             1977      a.m.
             1978          (10) [Alcoholic beverages] An alcoholic beverage may not be sold, served, or otherwise
             1979      furnished to [any] a:
             1980          (a) minor;
             1981          (b) person actually, apparently, or obviously intoxicated;
             1982          (c) known habitual drunkard; or
             1983          (d) known interdicted person.
             1984          (11) (a) (i) Liquor may be sold only at [prices] a price fixed by the commission.
             1985          (ii) Liquor may not be sold at a discount [prices] price on any date or at any time.
             1986          (b) [Alcoholic beverages] An alcoholic beverage may not be sold at less than the cost of
             1987      the alcoholic beverage to the airport lounge liquor licensee.
             1988          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1989      over consumption or intoxication.


             1990          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1991      hours of the airport [lounge's] lounge liquor licensee's business day such as a "happy hour."
             1992          (e) [The sale or service of more] More than one alcoholic beverage may not be sold or
             1993      served for the price of a single alcoholic beverage [is prohibited].
             1994          (f) [The sale or service of an] An indefinite or unlimited number of alcoholic beverages
             1995      during [any] a set period may not be sold or served for a fixed price [is prohibited].
             1996          (g) An airport lounge liquor licensee may not engage in a public promotion involving or
             1997      offering free an alcoholic [beverages] beverage to the general public.
             1998          (12) [Alcoholic beverages] An alcoholic beverage may not be purchased for a patron of
             1999      an airport lounge by:
             2000          (a) the airport lounge liquor licensee; or
             2001          (b) [any] an employee or agent of the airport lounge liquor licensee.
             2002          (13) (a) A person may not bring onto the premises of an airport lounge liquor licensee
             2003      [any] an alcoholic beverage for on-premise consumption.
             2004          (b) An airport lounge [or its officers, managers, employees, or agents] liquor licensee or
             2005      an officer, manager, employee, or agent of the airport lounge liquor licensee may not allow a
             2006      person to bring onto the airport lounge premises [any] an alcoholic beverage for on-premise
             2007      consumption or allow consumption of [any such] the alcoholic beverage on [its] the airport
             2008      lounge liquor licensee's premises.
             2009          (14) An airport lounge liquor licensee and [its employees] an employee of the airport
             2010      lounge liquor licensee may not permit a patron to remove [any] an alcoholic [beverages]
             2011      beverage from the airport lounge premises.
             2012          (15) (a) [A minor may not be employed by an] An airport lounge liquor licensee may
             2013      not employ a minor to sell or dispense an alcoholic [beverages] beverage.
             2014          (b) Notwithstanding Subsection (15)(a), a minor who is at least 16 years of age may be
             2015      employed to enter the sale at a cash register or other sales recording device.
             2016          (16) An employee of an airport lounge liquor licensee, while on duty, may not:
             2017          (a) consume an alcoholic beverage; or


             2018          (b) be intoxicated.
             2019          (17) [Any] A charge or fee made in connection with the sale, service, or consumption
             2020      of liquor may be stated in a food or alcoholic beverage menu including:
             2021          (a) a set-up charge;
             2022          (b) a service charge; or
             2023          (c) a chilling fee.
             2024          (18) [Each] An airport lounge liquor licensee shall display in a prominent place in the
             2025      airport lounge:
             2026          (a) the liquor license that is issued by the department;
             2027          (b) a list of the types and brand names of liquor being served through its calibrated
             2028      metered dispensing system; and
             2029          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             2030      drugs is a serious crime that is prosecuted aggressively in Utah."
             2031          (19) (a) [Each] An airport lounge liquor licensee shall maintain an expense ledger or
             2032      record showing in detail:
             2033          (i) quarterly expenditures made separately for malt or brewed beverages, liquor, and all
             2034      other items required by the department; and
             2035          (ii) sales made separately for malt or brewed beverages, food, and all other items
             2036      required by the department.
             2037          [(b) This record shall be kept:]
             2038          (b) An airport lounge liquor licensee shall keep a record required by Subsection (19)(a):
             2039          (i) in a form approved by the department; and
             2040          (ii) current for each three-month period.
             2041          (c) [Each] An expenditure shall be supported by:
             2042          (i) a delivery [tickets] ticket;
             2043          (ii) [invoices] an invoice;
             2044          (iii) a receipted [bills] bill;
             2045          (iv) a canceled [checks] check;


             2046          (v) a petty cash [vouchers] voucher; or
             2047          (vi) other sustaining [data or memoranda] datum or memorandum.
             2048          (d) In addition to a ledger or record required by Subsection (19)(a), [each] an airport
             2049      lounge liquor licensee shall maintain accounting and other records and documents as the
             2050      department may require.
             2051          (e) [Any] An airport lounge liquor licensee or person acting for the airport lounge, who
             2052      knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes [the entries in any of
             2053      the books] an entry in a book of account or other [documents] document of the airport lounge
             2054      required to be made, maintained, or preserved by this title or the rules of the commission for the
             2055      purpose of deceiving the commission [or], the department, or [any of their officials or
             2056      employees] an official or employee of the commission or department, is subject to:
             2057          (i) the immediate suspension or revocation of the airport lounge's liquor license; and
             2058          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2059          (20) An airport lounge liquor license may not be transferred from one location to
             2060      another, without prior written approval of the commission.
             2061          (21) (a) An airport lounge liquor licensee may not sell, transfer, assign, exchange,
             2062      barter, give, or attempt in any way to dispose of the airport lounge liquor license to [any other]
             2063      another person, whether for monetary gain or not.
             2064          (b) An airport lounge liquor license has no monetary value for the purpose of any type
             2065      of disposition.
             2066          (22) [Each] A server of an alcoholic [beverages] beverage in [a] an airport lounge
             2067      liquor licensee's establishment shall keep a written beverage tab for each table or group that
             2068      orders or consumes an alcoholic [beverages] beverage on the premises. The beverage tab shall
             2069      list the type and amount of an alcoholic [beverages] beverage ordered or consumed.
             2070          (23) An airport lounge liquor licensee's premises may not be leased for a private
             2071      [functions] function.
             2072          (24) An airport lounge liquor licensee may not on the premises of the airport lounge
             2073      liquor licensee:


             2074          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             2075      Chapter 10, Part 11, Gambling;
             2076          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             2077      Part 11, Gambling; or
             2078          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             2079      the risking of something of value for a return or for an outcome when the return or outcome is
             2080      based upon an element of chance, excluding the playing of an amusement device that confers
             2081      only an immediate and unrecorded right of replay not exchangeable for value.
             2082          (25) An airport lounge liquor licensee or an employee of the airport lounge liquor
             2083      licensee may not knowingly allow a person on the licensed premises to, in violation of Title 58,
             2084      Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             2085          (a) sell, distribute, possess, or use a controlled substance, as defined in Section 58-37-2 ;
             2086      or
             2087          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             2088      Section 58-37a-3 .
             2089          Section 28. Section 32A-4-302 is amended to read:
             2090           32A-4-302. Commission's power to grant licenses -- Limitations.
             2091          (1) A restaurant wanting to sell and allow the consumption of only wine, heavy beer,
             2092      and beer on its premises, but not spirituous liquor[,] or, on or after October 1, 2008, a flavored
             2093      malt beverage, shall obtain a limited restaurant license from the commission as provided in this
             2094      part before selling or allowing the consumption of wine, heavy beer, or beer on its premises.
             2095          (2) (a) Subject to the other provisions of this section, the commission may issue limited
             2096      restaurant licenses for the purpose of establishing limited restaurant outlets at places and in
             2097      numbers the commission considers proper for the storage, sale, and consumption of wine, heavy
             2098      beer, and beer on premises operated as public restaurants.
             2099          (b) The total number of limited restaurant licenses issued under this part may not at any
             2100      time aggregate more than that number determined by dividing the population of the state by
             2101      [11,000] 9,300.


             2102          (c) For purposes of this Subsection (2), population shall be determined by:
             2103          (i) the most recent United States decennial or special census; or
             2104          (ii) [any other] another population determination made by the United States or state
             2105      governments.
             2106          (3) (a) (i) The commission may issue seasonal limited restaurant licenses established in
             2107      areas the commission considers necessary.
             2108          (ii) A seasonal limited restaurant license shall be for a period of six consecutive months.
             2109          (b) (i) A limited restaurant license issued for operation during a summer time period is
             2110      known as a "Seasonal A" limited restaurant license. The period of operation for a "Seasonal A"
             2111      limited restaurant license shall:
             2112          (A) begin on May 1; and
             2113          (B) end on October 31.
             2114          (ii) A limited restaurant license issued for operation during a winter time period is
             2115      known as a "Seasonal B" limited restaurant license. The period of operation for a "Seasonal B"
             2116      limited restaurant license shall:
             2117          (A) begin on November 1; and
             2118          (B) end on April 30.
             2119          (iii) In determining the number of limited restaurant licenses that the commission may
             2120      issue under this section:
             2121          (A) a seasonal limited restaurant license is counted as 1/2 of one limited restaurant
             2122      license; and
             2123          (B) each "Seasonal A" limited restaurant license shall be paired with a "Seasonal B"
             2124      limited restaurant license.
             2125          (c) If the location, design, and construction of a hotel may require more than one
             2126      limited restaurant sales location within the hotel to serve the public convenience, the
             2127      commission may authorize the sale of wine, heavy beer, and beer at as many as three limited
             2128      restaurant locations within the hotel under one license if:
             2129          (i) the hotel has a minimum of 150 guest rooms; and


             2130          (ii) all locations under the license are:
             2131          (A) within the same hotel facility; and
             2132          (B) on premises that are:
             2133          (I) managed or operated by the licensee; and
             2134          (II) owned or leased by the licensee.
             2135          (d) [Facilities] A facility other than [hotels] a hotel shall have a separate limited
             2136      restaurant license for each restaurant where wine, heavy beer, and beer are sold.
             2137          (4) (a) [The] Except as provided in Subsection (4)(b), (c), or (d), the premises of a
             2138      limited restaurant license may not be established:
             2139          (i) within 600 feet of [any public or private school, church, public library, public
             2140      playground, or park] a community location, as measured by the method in Subsection [(5).]
             2141      (4)(e); or
             2142          [(b) The premises of a limited restaurant license may not be established]
             2143          (ii) within 200 feet of [any public or private school, church, public library, public
             2144      playground, or park] a community location, measured in a straight line from the nearest
             2145      entrance of the proposed outlet to the nearest property boundary of the [public or private
             2146      school, church, public library, public playground, or park] community location.
             2147          [(c) The restrictions contained in Subsections (4)(a) and (b) govern unless one of the
             2148      following exemptions applies:]
             2149          [(i) with] (b) With respect to the establishment of a limited restaurant license [in any
             2150      location], the commission may authorize a variance to reduce the proximity [requirements]
             2151      requirement of Subsection (4)(a)(i) [or (b)] if:
             2152          [(A)] (i) the local [governing] authority [has granted] grants its written consent to the
             2153      variance;
             2154          [(B)] (ii) the commission finds that alternative locations for establishing a limited
             2155      restaurant license in the community are limited;
             2156          [(C)] (iii) a public hearing [has been] is held in the city, town, or county, and where
             2157      practical in the neighborhood concerned; [and]


             2158          [(D)] (iv) after giving full consideration to all of the attending circumstances and the
             2159      policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
             2160      establishing the license would not be detrimental to the public health, peace, safety, and welfare
             2161      of the community; [or] and
             2162          (v) (A) the community location governing authority gives its written consent to the
             2163      variance; or
             2164          (B) when written consent is not given by the community location governing authority,
             2165      the commission finds that the applicant has established that:
             2166          (I) there is substantial unmet public demand to consume alcohol in a public setting
             2167      within the geographic boundary of the local authority in which the limited restaurant licensee is
             2168      to be located;
             2169          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             2170      described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a limited
             2171      restaurant license; and
             2172          (III) there is no reasonably viable alternative location within the geographic boundary of
             2173      the local authority in which the limited restaurant licensee is to be located for establishing a
             2174      limited restaurant license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
             2175          (c) With respect to the establishment of a limited restaurant license, the commission
             2176      may authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
             2177          (i) the community location at issue is:
             2178          (A) a public library; or
             2179          (B) a public park;
             2180          (ii) the local authority grants its written consent to the variance;
             2181          (iii) the commission finds that alternative locations for establishing a limited restaurant
             2182      license in the community are limited;
             2183          (iv) a public hearing is held in the city, town, or county, and where practical in the
             2184      neighborhood concerned;
             2185          (v) after giving full consideration to all of the attending circumstances and the policies


             2186      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             2187      limited restaurant license would not be detrimental to the public health, peace, safety, and
             2188      welfare of the community; and
             2189          (vi) (A) the community location governing authority gives its written consent to the
             2190      variance; or
             2191          (B) when written consent is not given by the community location governing authority,
             2192      the commission finds that the applicant has established that:
             2193          (I) there is substantial unmet public demand to consume alcohol in a public setting
             2194      within the geographic boundary of the local authority in which the limited restaurant licensee is
             2195      to be located;
             2196          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             2197      described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a limited
             2198      restaurant license; and
             2199          (III) there is no reasonably viable alternative location within the geographic boundary of
             2200      the local authority in which the limited restaurant licensee is to be located for establishing a
             2201      limited restaurant license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
             2202          [(ii) with] (d) With respect to the premises of [any] a limited restaurant license issued
             2203      by the commission that undergoes a change of ownership, the commission may waive or vary
             2204      the proximity requirements of [Subsections] Subsection (4)(a) [and (b)] in considering whether
             2205      to grant a limited restaurant license to the new owner of the premises if:
             2206          (i) (A) the premises previously received a variance reducing the proximity
             2207      [requirements] requirement of Subsection (4)(a)(i) [or (b)]; or
             2208          (B) the premises received a variance reducing the proximity requirement of Subsection
             2209      (4)(a)(ii) on or before May 4, 2008; or
             2210          [(B)] (ii) a variance from proximity [or distance requirement] requirements was
             2211      otherwise allowed under this title.
             2212          [(5) With respect to any public or private school, church, public library, public
             2213      playground, or park, the]


             2214          (e) The 600 foot limitation as described in Subsection (4)(a)(i) is measured from the
             2215      nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
             2216      property boundary of the [public or private school, church, public library, public playground,
             2217      school playground, or park] community location.
             2218          [(6)] (5) (a) Nothing in this section prevents the commission from considering the
             2219      proximity of any educational, religious, and recreational facility, or any other relevant factor in
             2220      reaching a decision on a proposed location.
             2221          (b) For purposes of this Subsection [(6)] (5), "educational facility" includes:
             2222          (i) a nursery school;
             2223          (ii) an infant day care center; and
             2224          (iii) a trade and technical school.
             2225          Section 29. Section 32A-4-303 is amended to read:
             2226           32A-4-303. Application and renewal requirements.
             2227          (1) A person seeking a limited restaurant license under this part shall file a written
             2228      application with the department, in a form prescribed by the department. The application shall
             2229      be accompanied by:
             2230          (a) a nonrefundable $250 application fee;
             2231          (b) an initial license fee of $500, which is refundable if a license is not granted;
             2232          (c) written consent of the local authority;
             2233          (d) a copy of the applicant's current business license;
             2234          (e) evidence of proximity to any [public or private school, church, public library, public
             2235      playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
             2236      Subsections 32A-4-302 (4) and (5), the application shall be processed in accordance with those
             2237      subsections] community location, with proximity requirements being governed by Section
             2238      32A-4-302 ;
             2239          (f) a bond as specified by Section 32A-4-306 ;
             2240          (g) a floor plan of the restaurant, including:
             2241          (i) consumption areas; and


             2242          (ii) the area where the applicant proposes to keep, store, and sell wine, heavy beer, and
             2243      beer;
             2244          (h) evidence that the restaurant is carrying public liability insurance in an amount and
             2245      form satisfactory to the department;
             2246          (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
             2247      $500,000 per occurrence and $1,000,000 in the aggregate;
             2248          (j) a signed consent form stating that the restaurant will permit any authorized
             2249      representative of the commission, department, or any law enforcement officer unrestricted right
             2250      to enter the restaurant;
             2251          (k) in the case of an applicant that is a partnership, corporation, or limited liability
             2252      company, proper verification evidencing that the person or persons signing the restaurant
             2253      application are authorized to so act on behalf of the partnership, corporation, or limited liability
             2254      company; and
             2255          (l) any other information the commission or department may require.
             2256          (2) (a) All limited restaurant licenses expire on October 31 of each year.
             2257          (b) A person desiring to renew that person's limited restaurant license shall submit:
             2258          (i) a renewal fee of $300; and
             2259          (ii) a renewal application to the department no later than September 30.
             2260          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             2261      the license effective on the date the existing license expires.
             2262          (d) [Renewal applications] A renewal application shall be in a form as prescribed by the
             2263      department.
             2264          (3) To ensure compliance with Subsection 32A-4-307 (25), the commission may
             2265      suspend or revoke a limited restaurant license if the limited restaurant licensee does not
             2266      immediately notify the department of any change in:
             2267          (a) ownership of the restaurant;
             2268          (b) for a corporate owner, the:
             2269          (i) corporate officer or directors; or


             2270          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             2271      corporation; or
             2272          (c) for a limited liability company:
             2273          (i) managers; or
             2274          (ii) members owning at least 20% of the limited liability company.
             2275          Section 30. Section 32A-4-305 is amended to read:
             2276           32A-4-305. Commission and department duties before granting licenses.
             2277          (1) (a) Before a limited restaurant license may be granted by the commission, the
             2278      department shall conduct an investigation and may hold public hearings for the purpose of
             2279      gathering information and making recommendations to the commission as to whether or not a
             2280      license should be granted.
             2281          (b) The department shall forward the information and recommendations described in
             2282      Subsection (1)(a) to the commission to aid in the commission's determination.
             2283          (2) Before issuing [any] a limited restaurant license, the commission shall:
             2284          (a) determine that the applicant has complied with all basic qualifications and
             2285      requirements for making application for a license as provided by Sections 32A-4-302 and
             2286      32A-4-303 ;
             2287          (b) determine that the application is complete;
             2288          (c) consider the locality within which the proposed limited restaurant outlet is located,
             2289      including:
             2290          (i) physical characteristics such as:
             2291          (A) the condition of the premises;
             2292          (B) square footage; and
             2293          (C) parking availability; and
             2294          (ii) operational factors such as:
             2295          (A) tourist traffic;
             2296          (B) proximity to and density of other state stores, package agencies, and outlets;
             2297          (C) demographics;


             2298          (D) population to be served; and
             2299          (E) the extent of and proximity to any [school, church, public library, public
             2300      playground, or park] community location;
             2301          (d) consider the applicant's ability to manage and operate a limited restaurant license,
             2302      including:
             2303          (i) management experience;
             2304          (ii) past retail liquor experience; and
             2305          (iii) the type of management scheme employed by the restaurant;
             2306          (e) consider the nature or type of restaurant operation, including:
             2307          (i) the type of menu items offered and emphasized;
             2308          (ii) whether the restaurant emphasizes service to an adult clientele or to minors;
             2309          (iii) the hours of operation;
             2310          (iv) the seating capacity of the facility; and
             2311          (v) the gross sales of food items; and
             2312          (f) consider any other factors or circumstances the commission considers necessary.
             2313          Section 31. Section 32A-4-307 is amended to read:
             2314           32A-4-307. Operational restrictions.
             2315          [Each] A person granted a limited restaurant license and the employees and management
             2316      personnel of the limited restaurant shall comply with the following conditions and requirements.
             2317      Failure to comply may result in a suspension or revocation of the license or other disciplinary
             2318      action taken against individual employees or management personnel.
             2319          (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
             2320      except from a state [stores] store or package [agencies] agency.
             2321          (b) Wine and heavy beer purchased [in accordance with Subsection (1)(a)] from a state
             2322      store or package agency may be transported by the limited restaurant licensee from the place of
             2323      purchase to the licensed premises.
             2324          (c) Payment for wine and heavy beer shall be made in accordance with rules established
             2325      by the commission.


             2326          (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of
             2327      [spirituous liquor] the products listed in Subsection (2)(c) on the premises of the limited
             2328      restaurant.
             2329          (b) [Spirituous liquor] A product listed in Subsection (2)(c) may not be on the premises
             2330      of the limited restaurant except for use:
             2331          (i) as a flavoring on [desserts] a dessert; and
             2332          (ii) in the preparation of a flaming food [dishes, drinks, and desserts] dish, drink, or
             2333      dessert.
             2334          (c) This Subsection (2) applies to:
             2335          (i) spirituous liquor; and
             2336          (ii) on or after October 1, 2008, a flavored malt beverage.
             2337          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             2338      exceed five ounces per glass or individual portion.
             2339          (ii) An individual portion may be served to a patron in more than one glass as long as
             2340      the total amount of wine does not exceed five ounces.
             2341          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             2342      Subsection (7)(e).
             2343          (b) (i) Wine may be sold and served in [containers] a container not exceeding 1.5 liters
             2344      at [prices] a price fixed by the commission to [tables] a table of four or more persons.
             2345          (ii) Wine may be sold and served in [containers] a container not exceeding 750
             2346      milliliters at [prices] a price fixed by the commission to [tables] a table of less than four persons.
             2347          (c) A wine service may be performed and a service charge assessed by the limited
             2348      restaurant licensee as authorized by commission rule for wine purchased at the limited
             2349      restaurant.
             2350          (4) (a) Heavy beer may be served in an original [containers] container not exceeding
             2351      one liter at [prices] a price fixed by the commission.
             2352          (b) A service charge may be assessed by the limited restaurant licensee as authorized by
             2353      commission rule for heavy beer purchased at the limited restaurant.


             2354          (5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer for
             2355      on-premise consumption:
             2356          (A) in an open container; and
             2357          (B) on draft.
             2358          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             2359      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             2360      container that exceeds one liter.
             2361          (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
             2362          (i) may do so without obtaining a separate on-premise beer retailer license from the
             2363      commission; and
             2364          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             2365      Retailer Licenses, that apply to an on-premise beer [retailers] retailer except when those
             2366      restrictions are inconsistent with or less restrictive than the operational restrictions under this
             2367      part.
             2368          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             2369      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the limited
             2370      restaurant's:
             2371          (i) limited restaurant license; and
             2372          (ii) alcoholic beverage license issued by the local authority.
             2373          (6) Wine, heavy beer, and beer may not be stored, served, or sold in [any] a place other
             2374      than as designated in the limited restaurant licensee's application, unless the limited restaurant
             2375      licensee first applies for and receives approval from the department for a change of location
             2376      within the limited restaurant.
             2377          (7) (a) (i) A patron may only make an alcoholic beverage [purchases] purchase in [the]
             2378      a limited restaurant from and be served by a person employed, designated, and trained by the
             2379      limited restaurant licensee to sell and serve an alcoholic [beverages] beverage.
             2380          (ii) Notwithstanding Subsection (7)(a)(i), a patron who [has purchased] purchases
             2381      bottled wine from an employee of the limited restaurant [or has carried] licensee or carries


             2382      bottled wine onto the premises of the limited restaurant pursuant to Subsection (14) may
             2383      thereafter serve wine from the bottle to the patron or others at the patron's table.
             2384          (b) [Alcoholic beverages] An alcoholic beverage shall be delivered by a server to the
             2385      patron.
             2386          (c) [Any] An alcoholic beverage may only be consumed at the patron's table or counter.
             2387          (d) [Alcoholic beverages] An alcoholic beverage may not be served to or consumed by
             2388      a patron at a bar.
             2389          (e) [Each] A limited restaurant patron may have no more than two alcoholic beverages
             2390      of any kind at a time before the patron.
             2391          (8) The alcoholic beverage storage area shall remain locked at all times other than those
             2392      hours and days when alcoholic beverage sales are authorized by law.
             2393          (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
             2394      furnished at a limited restaurant during the following days or hours:
             2395          (i) until after the polls are closed on the day of [any] a:
             2396          (A) regular general election;
             2397          (B) regular primary election; or
             2398          (C) statewide special election;
             2399          (ii) until after the polls are closed on the day of [any] a municipal, local district, special
             2400      service district, or school election, but only:
             2401          (A) within the boundaries of the municipality, local district, special service district, or
             2402      school district; and
             2403          (B) if required by local ordinance; and
             2404          (iii) on any other day after 12 midnight and before 12 noon.
             2405          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             2406      Licenses, for on-premise beer licensees.
             2407          (10) [Alcoholic beverages] An alcoholic beverage may not be sold except in connection
             2408      with an order of food prepared, sold, and served at the limited restaurant.
             2409          (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to


             2410      [any] a:
             2411          (a) minor;
             2412          (b) person actually, apparently, or obviously intoxicated;
             2413          (c) known habitual drunkard; or
             2414          (d) known interdicted person.
             2415          (12) (a) (i) Wine and heavy beer may be sold only at [prices] a price fixed by the
             2416      commission.
             2417          (ii) Wine and heavy beer may not be sold at a discount [prices] price on any date or at
             2418      any time.
             2419          (b) [Alcoholic beverages] An alcoholic beverage may not be sold at less than the cost of
             2420      the alcoholic [beverages] beverage to the limited restaurant licensee.
             2421          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             2422      over consumption or intoxication.
             2423          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             2424      hours of the limited [restaurant's] restaurant licensee's business day such as a "happy hour."
             2425          (e) [The sale or service of more] More than one alcoholic beverage may not be sold or
             2426      served for the price of a single alcoholic beverage [is prohibited].
             2427          (f) [The sale or service of an] An indefinite or unlimited number of alcoholic beverages
             2428      during [any] a set period may not be sold or served for a fixed price [is prohibited].
             2429          (g) A limited restaurant licensee may not engage in a public promotion involving or
             2430      offering free alcoholic beverages to the general public.
             2431          (13) [Alcoholic beverages] An alcoholic beverage may not be purchased for a patron of
             2432      the limited restaurant by:
             2433          (a) the limited restaurant licensee; or
             2434          (b) [any] an employee or agent of the limited restaurant licensee.
             2435          (14) (a) A person may not bring onto the premises of a limited restaurant licensee [any]
             2436      an alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             2437      discretion of the limited restaurant licensee, bottled wine onto the premises of [any] a limited


             2438      restaurant licensee for on-premise consumption.
             2439          (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee [or its
             2440      officers, managers, employees, or agents] or an officer, manager, employee, or agent of a
             2441      limited restaurant licensee may not allow:
             2442          (i) a person to bring onto the limited restaurant premises [any] an alcoholic beverage for
             2443      on-premise consumption; or
             2444          (ii) consumption of [any] an alcoholic beverage described in Subsection (14)(b)(i) on
             2445      [its] the limited restaurant licensee's premises.
             2446          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             2447      or other representative of the limited restaurant licensee upon entering the limited restaurant.
             2448          (d) A wine service may be performed and a service charge assessed by the limited
             2449      restaurant licensee as authorized by commission rule for wine carried in by a patron.
             2450          (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee [and its
             2451      employees] and an employee of the limited restaurant licensee may not permit a restaurant
             2452      patron to carry from the limited restaurant premises an open container that:
             2453          (i) is used primarily for drinking purposes; and
             2454          (ii) contains [any] an alcoholic beverage.
             2455          (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed contents
             2456      of a bottle of wine if before removal, the bottle [has been] is recorked or recapped.
             2457          (16) (a) A [minor may not be employed by a] limited restaurant licensee may not
             2458      employ a minor to sell or dispense an alcoholic [beverages] beverage.
             2459          (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
             2460      employed to enter the sale at a cash register or other sales recording device.
             2461          (17) An employee of a limited restaurant licensee, while on duty, may not:
             2462          (a) consume an alcoholic beverage; or
             2463          (b) be intoxicated.
             2464          (18) A charge or fee made in connection with the sale, service, or consumption of wine
             2465      or heavy beer may be stated in food or alcoholic beverage menus including:


             2466          (a) a service charge; or
             2467          (b) a chilling fee.
             2468          (19) [Each] A limited restaurant licensee shall display in a prominent place in the
             2469      restaurant:
             2470          (a) the limited restaurant license that is issued by the department; and
             2471          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             2472      drugs is a serious crime that is prosecuted aggressively in Utah."
             2473          (20) A limited restaurant licensee may not on the premises of the restaurant:
             2474          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             2475      Chapter 10, Part 11, Gambling;
             2476          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             2477      Part 11, Gambling; or
             2478          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             2479      the risking of something of value for a return or for an outcome when the return or outcome is
             2480      based upon an element of chance, excluding the playing of an amusement device that confers
             2481      only an immediate and unrecorded right of replay not exchangeable for value.
             2482          (21) (a) [Each] A limited restaurant licensee shall maintain an expense ledger or record
             2483      showing in detail:
             2484          (i) quarterly expenditures made separately for:
             2485          (A) wine;
             2486          (B) heavy beer;
             2487          (C) beer;
             2488          (D) food; and
             2489          (E) all other items required by the department; and
             2490          (ii) sales made separately for:
             2491          (A) wine;
             2492          (B) heavy beer;
             2493          (C) beer;


             2494          (D) food; and
             2495          (E) all other items required by the department.
             2496          (b) [The] A limited restaurant licensee shall keep a record required by Subsection
             2497      (21)(a) [shall be kept]:
             2498          (i) in a form approved by the department; and
             2499          (ii) current for each three-month period.
             2500          (c) [Each] An expenditure shall be supported by:
             2501          (i) a delivery [tickets] ticket;
             2502          (ii) [invoices] an invoice;
             2503          (iii) a receipted [bills] bill;
             2504          (iv) a canceled [checks] check;
             2505          (v) a petty cash [vouchers] voucher; or
             2506          (vi) other sustaining [data or memoranda] datum or memorandum.
             2507          (d) In addition to the ledger or record maintained under Subsections (21)(a) through
             2508      (c), a limited restaurant licensee shall maintain accounting and other records and documents as
             2509      the department may require.
             2510          (e) Any limited restaurant licensee or person acting for the restaurant, who knowingly
             2511      forges, falsifies, alters, cancels, destroys, conceals, or removes [the entries in any of the books]
             2512      an entry in a book of account or other [documents] document of the limited restaurant that is
             2513      required to be made, maintained, or preserved by this title or the rules of the commission for the
             2514      purpose of deceiving the commission [or], the department, or [any of their officials or
             2515      employees] an official or employee of the commission or department, is subject to:
             2516          (i) the suspension or revocation of the limited restaurant's license; and
             2517          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2518          (22) (a) A limited restaurant licensee may not close or cease operation for a period
             2519      longer than 240 hours, unless:
             2520          (i) the limited restaurant licensee notifies the department in writing at least seven days
             2521      before the [closing] day on which the limited restaurant licensee closes or ceases operation; and


             2522          (ii) the closure or cessation of operation is first approved by the department.
             2523          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, [immediate
             2524      notice of closure shall be made to] the limited restaurant licensee shall immediately notify the
             2525      department by telephone.
             2526          (c) (i) Subject to Subsection (22)(c)(iii), the department may authorize a closure or
             2527      cessation of operation for a period not to exceed 60 days.
             2528          (ii) The department may extend the initial period an additional 30 days upon:
             2529          (A) written request of the limited restaurant licensee; and
             2530          (B) a showing of good cause.
             2531          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             2532      commission approval.
             2533          (d) [Any] A notice required by Subsection (22)(a) shall include:
             2534          (i) the dates of closure or cessation of operation;
             2535          (ii) the reason for the closure or cessation of operation; and
             2536          (iii) the date on which the limited restaurant licensee will reopen or resume operation.
             2537          (e) Failure of the limited restaurant licensee to provide notice and to obtain department
             2538      authorization before closure or cessation of operation [shall result] results in an automatic
             2539      forfeiture of:
             2540          (i) the limited restaurant license; and
             2541          (ii) the unused portion of the license fee for the remainder of the license year effective
             2542      immediately.
             2543          (f) Failure of the limited restaurant licensee to reopen or resume operation by the
             2544      approved date [shall result] results in an automatic forfeiture of:
             2545          (i) the limited restaurant license; and
             2546          (ii) the unused portion of the license fee for the remainder of the license year.
             2547          (23) [Each] A limited restaurant licensee shall maintain at least 70% of its total
             2548      restaurant business from the sale of food, which does not include service charges.
             2549          (24) A limited restaurant license may not be transferred from one location to another,


             2550      without prior written approval of the commission.
             2551          (25) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,
             2552      give, or attempt in any way to dispose of the limited restaurant license to [any other] another
             2553      person whether for monetary gain or not.
             2554          (b) A limited restaurant license has no monetary value for the purpose of any type of
             2555      disposition.
             2556          (26) (a) [Each] A server of wine, heavy beer, and beer in a limited restaurant licensee's
             2557      establishment shall keep a written beverage tab for each table or group that orders or consumes
             2558      an alcoholic [beverages] beverage on the premises.
             2559          (b) The beverage tab required by Subsection (26)(a) shall list the type and amount of an
             2560      alcoholic [beverages] beverage ordered or consumed.
             2561          (27) A limited restaurant licensee may not make a person's willingness to serve an
             2562      alcoholic [beverages] beverage a condition of employment as a server with the limited
             2563      restaurant.
             2564          (28) A limited restaurant licensee or an employee of the limited restaurant licensee may
             2565      not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
             2566      Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             2567          (a) sell, distribute, possess, or use a controlled substance, as defined in Section 58-37-2 ;
             2568      or
             2569          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             2570      Section 58-37a-3 .
             2571          Section 32. Section 32A-4-401 is amended to read:
             2572           32A-4-401. Definitions -- Commission's power to grant licenses -- Limitations.
             2573          (1) (a) For purposes of this part:
             2574          (i) "Banquet" means an event:
             2575          (A) for which there is a contract:
             2576          (I) between any person and a person listed in Subsection (1)(a)(i)(B); and
             2577          (II) under which a person listed in Subsection (1)(a)(i)(B) is required to provide


             2578      alcoholic beverages at the event;
             2579          (B) held at one or more designated locations approved by the commission in or on the
             2580      premises of a:
             2581          (I) hotel;
             2582          (II) resort facility;
             2583          (III) sports center; or
             2584          (IV) convention center; and
             2585          (C) at which food and alcoholic beverages may be sold and served.
             2586          (ii) "Convention center" is as defined by the commission by rule.
             2587          (iii) "Hotel" is as defined by the commission by rule.
             2588          (iv) "Resort facility" is as defined by the commission by rule.
             2589          (v) "Room service" means service of alcoholic beverages to a guest room of a:
             2590          (A) hotel; or
             2591          (B) resort facility.
             2592          (vi) "Sports center" is as defined by the commission by rule.
             2593          (b) The commission may issue an on-premise banquet license to any of the following
             2594      persons for the purpose of allowing the storage, sale, service, and consumption of alcoholic
             2595      beverages in connection with that person's banquet and room service activities:
             2596          (i) hotel;
             2597          (ii) resort facility;
             2598          (iii) sports center; or
             2599          (iv) convention center.
             2600          (c) This chapter is not intended to prohibit alcoholic beverages on the premises of a
             2601      person listed in Subsection (1) to the extent otherwise permitted by this title.
             2602          (2) (a) Subject to this section, the total number of on-premise banquet licenses may not
             2603      at any time aggregate more than that number determined by dividing the population of the state
             2604      by 30,000.
             2605          (b) For purposes of this Subsection (2), the population of the state shall be determined


             2606      by:
             2607          (i) the most recent United States decennial or special census; or
             2608          (ii) [any other] another population determination made by the United States or state
             2609      governments.
             2610          (3) Pursuant to a contract between the host of a banquet and an on-premise banquet
             2611      licensee:
             2612          (a) the host of a contracted banquet may request an on-premise banquet licensee to
             2613      provide alcoholic beverages served at a banquet; and
             2614          (b) an on-premise banquet licensee may provide the alcoholic beverages served at a
             2615      banquet.
             2616          (4) At a banquet, an on-premise banquet licensee may provide:
             2617          (a) a hosted bar; or
             2618          (b) a cash bar.
             2619          (5) Nothing in this section shall prohibit a qualified on-premise banquet license
             2620      applicant from applying for a package agency.
             2621          (6) (a) [The] Except as provided in Subsection (6)(b), (c), or (d), the premises of an
             2622      on-premise banquet license may not be established:
             2623          (i) within 600 feet of [any public or private school, church, public library, public
             2624      playground, or park] a community location, as measured by the method in Subsection
             2625      (6)[(d).](e); or
             2626          [(b) The premises of an on-premise banquet license may not be established]
             2627          (ii) within 200 feet of [any public or private school, church, public library, public
             2628      playground, or park] a community location, measured in a straight line from the nearest
             2629      entrance of the proposed outlet to the nearest property boundary of the [public or private
             2630      school, church, public library, public playground, or park] community location.
             2631          [(c) The restrictions contained in Subsections (6)(a) and (b) govern unless one of the
             2632      following exemptions applies:]
             2633          [(i) with] (b) With respect to the establishment of an on-premise banquet license


             2634      [within any location], the commission may authorize a variance to reduce the proximity
             2635      [requirements] requirement of Subsection (6)(a)(i) [or (b)] if:
             2636          [(A)] (i) the local authority grants its written consent to the variance;
             2637          [(B)] (ii) the commission finds that alternative locations for establishing an on-premise
             2638      banquet license in the community are limited;
             2639          [(C)] (iii) the variance is authorized after a public hearing is held in the city, town, or
             2640      county, and where practical in the neighborhood concerned; [and]
             2641          [(D)] (iv) after giving full consideration to all of the attending circumstances and the
             2642      policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
             2643      establishing the license would not be detrimental to the public health, peace, safety, and welfare
             2644      of the community; [or] and
             2645          (v) (A) the community location governing authority gives its written consent to the
             2646      variance; or
             2647          (B) when written consent is not given by the community location governing authority,
             2648      the commission finds that the applicant has established that:
             2649          (I) there is substantial unmet public demand to consume alcohol in a public setting
             2650      within the geographic boundary of the local authority in which the on-premise banquet license
             2651      premises is to be located;
             2652          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             2653      described in Subsection (6)(b)(v)(B)(I) other than through the establishment of an on-premise
             2654      banquet license; and
             2655          (III) there is no reasonably viable alternative location within the geographic boundary of
             2656      the local authority in which the on-premise banquet license premises is to be located for
             2657      establishing an on-premise banquet license to satisfy the unmet demand described in Subsection
             2658      (6)(b)(v)(B)(I).
             2659          (c) With respect to the establishment of an on-premise banquet license, the commission
             2660      may authorize a variance that reduces the proximity requirement of Subsection (6)(a)(ii) if:
             2661          (i) the community location at issue is:


             2662          (A) a public library; or
             2663          (B) a public park;
             2664          (ii) the local authority grants its written consent to the variance;
             2665          (iii) the commission finds that alternative locations for establishing an on-premise
             2666      banquet license in the community are limited;
             2667          (iv) a public hearing is held in the city, town, or county, and where practical in the
             2668      neighborhood concerned;
             2669          (v) after giving full consideration to all of the attending circumstances and the policies
             2670      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             2671      on-premise banquet license would not be detrimental to the public health, peace, safety, and
             2672      welfare of the community; and
             2673          (vi) (A) the community location governing authority gives its written consent to the
             2674      variance; or
             2675          (B) when written consent is not given by the community location governing authority,
             2676      the commission finds that the applicant has established that:
             2677          (I) there is substantial unmet public demand to consume alcohol in a public setting
             2678      within the geographic boundary of the local authority in which the on-premise banquet license
             2679      premises is to be located;
             2680          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             2681      described in Subsection (6)(c)(vi)(B)(I) other than through the establishment of an on-premise
             2682      banquet license; and
             2683          (III) there is no reasonably viable alternative location within the geographic boundary of
             2684      the local authority in which the on-premise banquet license premises is to be located for
             2685      establishing an on-premise banquet license to satisfy the unmet demand described in Subsection
             2686      (6)(c)(vi)(B)(I).
             2687          [(ii) with] (d) With respect to the premises of any on-premise banquet license issued by
             2688      the commission that undergoes a change of ownership, the commission may waive or vary the
             2689      proximity requirements of [Subsections] Subsection (6)(a) [and (b)] in considering whether to


             2690      grant an on-premise banquet license to the new owner of the premises if:
             2691          (i) (A) the premises previously received a variance reducing the proximity
             2692      [requirements] requirement of Subsection (6)(a)(i) [or (b)]; or
             2693          (B) the premises received a variance reducing the proximity requirement of Subsection
             2694      (6)(a)(ii) on or before May 4, 2008; or
             2695          [(B)] (ii) a variance from proximity [or distance] requirements was otherwise allowed
             2696      under this title.
             2697          [(d)] (e) [With respect to any public or private school, church, public library, public
             2698      playground, or park, the] The 600 foot limitation described in Subsection (6)(a)(i) is measured
             2699      from the nearest entrance of the outlet by following the shortest route of ordinary pedestrian
             2700      travel to the property boundary of the [public or private school, church, public library, public
             2701      playground, school playground, or park] community location.
             2702          (7) (a) Nothing in this section prevents the commission from considering the proximity
             2703      of any educational, religious, and recreational facility, or any other relevant factor in reaching a
             2704      decision on a proposed location.
             2705          (b) For purposes of this Subsection (7), "educational facility" includes:
             2706          (i) a nursery school;
             2707          (ii) an infant day care center; and
             2708          (iii) a trade and technical school.
             2709          Section 33. Section 32A-4-402 is amended to read:
             2710           32A-4-402. Application and renewal requirements.
             2711          (1) (a) A person seeking an on-premise banquet license under this part shall file a
             2712      written application with the department, in a form prescribed by the department. The
             2713      application shall be accompanied by:
             2714          (i) a nonrefundable $250 application fee;
             2715          (ii) an initial license fee of $500, which is refundable if a license is not granted;
             2716          (iii) written consent of the local authority;
             2717          (iv) a copy of the applicant's current business license;


             2718          (v) evidence of proximity to any [public or private school, church, public library, public
             2719      playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
             2720      Subsection 32A-4-401 (6), the application shall be processed in accordance with those
             2721      subsections] community location, with proximity requirements being governed by Section
             2722      32A-4-401 ;
             2723          (vi) a bond as specified by Section 32A-4-405 ;
             2724          (vii) a description or floor plan and boundary map of the premises, where appropriate,
             2725      of the on-premise banquet license applicant's location, designating:
             2726          (A) the location at which the on-premise banquet license applicant proposes that
             2727      alcoholic beverages be stored; and
             2728          (B) the designated locations on the premises of the applicant from which the on-premise
             2729      banquet license applicant proposes that alcoholic beverages be sold or served, and consumed;
             2730          (viii) evidence that the on-premise banquet license applicant is carrying public liability
             2731      insurance in an amount and form satisfactory to the department;
             2732          (ix) evidence that the on-premise banquet license applicant is carrying dramshop
             2733      insurance coverage of at least $500,000 per occurrence and $1,000,000 in the aggregate;
             2734          (x) a signed consent form stating that the on-premise banquet license applicant will
             2735      permit any authorized representative of the commission, department, or any law enforcement
             2736      officer unrestricted right to enter the on-premise banquet premises;
             2737          (xi) in the case of an applicant that is a partnership, corporation, or limited liability
             2738      company, proper verification evidencing that the person or persons signing the on-premise
             2739      banquet license application are authorized to so act on behalf of the partnership, corporation, or
             2740      limited liability company; and
             2741          (xii) any other information the commission or department may require.
             2742          (b) An applicant need not meet the requirements of Subsections (1)(a)(i), (ii), (iii), (iv),
             2743      and (vi) if the applicant is:
             2744          (i) a state agency; or
             2745          (ii) a political subdivision of the state including:


             2746          (A) a county; or
             2747          (B) a municipality.
             2748          (2) Additional locations in or on the premises of an on-premise banquet license
             2749      applicant's business from which the on-premise banquet license applicant may propose that
             2750      alcoholic beverages may be stored, sold or served, or consumed, not included in the applicant's
             2751      original application may be approved by the department upon proper application, in accordance
             2752      with guidelines approved by the commission.
             2753          (3) (a) All on-premise banquet licenses expire on October 31 of each year.
             2754          (b) (i) Except as provided in Subsection (3)(b)(ii), a person desiring to renew that
             2755      person's on-premise banquet license shall submit a renewal fee of $500 and a completed renewal
             2756      application to the department no later than September 30.
             2757          (ii) A licensee is not required to submit the renewal fee if the licensee is:
             2758          (A) a state agency; or
             2759          (B) a political subdivision of the state including:
             2760          (I) a county; or
             2761          (II) a municipality.
             2762          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             2763      the license effective on the date the existing license expires.
             2764          (d) [Renewal applications] A renewal application shall be in a form as prescribed by the
             2765      department.
             2766          (4) To ensure compliance with Subsection 32A-4-406 (24), the commission may
             2767      suspend or revoke an on-premise banquet license if the on-premise banquet licensee fails to
             2768      immediately notify the department of any change in:
             2769          (a) ownership of the licensee;
             2770          (b) for a corporate owner, the:
             2771          (i) corporate officers or directors; or
             2772          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             2773      corporation; or


             2774          (c) for a limited liability company:
             2775          (i) managers; or
             2776          (ii) members owning at least 20% of the limited liability company.
             2777          Section 34. Section 32A-4-406 is amended to read:
             2778           32A-4-406. Operational restrictions.
             2779          [Each] A person granted an on-premise banquet license and the employees and
             2780      management personnel of the on-premise banquet licensee shall comply with this title, the rules
             2781      of the commission, and the following conditions and requirements. Failure to comply may
             2782      result in a suspension or revocation of the on-premise banquet license or other disciplinary
             2783      action taken against individual employees or management personnel.
             2784          (1) A person involved in the sale or service of an alcoholic [beverages] beverage under
             2785      the on-premise banquet license shall:
             2786          (a) be under the supervision and direction of the on-premise banquet licensee; and
             2787          (b) complete the seminar provided for in Section 62A-15-401 .
             2788          (2) (a) Liquor may not be purchased by [the] an on-premise banquet licensee except
             2789      from a state [stores] store or package [agencies] agency.
             2790          (b) Liquor purchased [in accordance with Subsection (2)(a)] from a state store or
             2791      package agency may be transported by the on-premise banquet licensee from the place of
             2792      purchase to the licensed premises.
             2793          (c) Payment for liquor shall be made in accordance with rules established by the
             2794      commission.
             2795          (3) [Alcoholic beverages] An alcoholic beverage may be sold or provided at a banquet
             2796      by an on-premise banquet licensee subject to the restrictions set forth in this Subsection (3).
             2797          (a) An on-premise banquet licensee may sell or provide [any] a primary spirituous liquor
             2798      only in a quantity not to exceed [one ounce] 1.5 ounces per beverage dispensed through a
             2799      calibrated metered dispensing system approved by the department in accordance with
             2800      commission rules adopted under this title, except that:
             2801          (i) spirituous liquor need not be dispensed through a calibrated metered dispensing


             2802      system if used as a secondary flavoring ingredient in a beverage subject to the following
             2803      restrictions:
             2804          (A) the secondary ingredient may be dispensed only in conjunction with the purchase of
             2805      a primary spirituous liquor;
             2806          (B) the secondary ingredient may not be the only spirituous liquor in the beverage;
             2807          (C) the on-premise banquet licensee shall designate a location where flavorings are
             2808      stored on the floor plan provided to the department; and
             2809          (D) [all] a flavoring [containers] container shall be plainly and conspicuously labeled
             2810      "flavorings";
             2811          (ii) spirituous liquor need not be dispensed through a calibrated metered dispensing
             2812      system if used:
             2813          (A) as a flavoring on [desserts] a dessert; and
             2814          (B) in the preparation of a flaming food [dishes, drinks, and desserts] dish, drink, or
             2815      dessert;
             2816          (iii) [each] an attendee may have no more than [2.75] 2.5 ounces of spirituous liquor at
             2817      a time before the attendee; and
             2818          (iv) [each] an attendee may have no more than one spirituous liquor drink at a time
             2819      before the attendee.
             2820          (b) (i) (A) Wine may be sold and served by the glass or an individual portion not to
             2821      exceed five ounces per glass or individual portion.
             2822          (B) An individual portion may be served to an attendee in more than one glass as long
             2823      as the total amount of wine does not exceed five ounces.
             2824          (C) An individual portion of wine is considered to be one alcoholic beverage under
             2825      Subsection (5)(c).
             2826          (ii) Wine may be sold and served in [containers] a container not exceeding 1.5 liters at
             2827      [prices] a price fixed by the commission.
             2828          (iii) A wine service may be performed and a service charge assessed by the on-premise
             2829      banquet licensee as authorized by commission rule for wine purchased on the banquet premises.


             2830          (c) (i) Heavy beer may be served in an original [containers] container not exceeding one
             2831      liter at [prices] a price fixed by the commission.
             2832          (ii) A flavored malt beverage may be served in an original container not exceeding one
             2833      liter at a price fixed by the commission.
             2834          [(ii)] (iii) A service charge may be assessed by the on-premise banquet licensee as
             2835      authorized by commission rule for heavy beer or a flavored malt beverage purchased on the
             2836      banquet premises.
             2837          (d) (i) Except as provided in Subsection (3)(d)(ii), beer may be sold and served for
             2838      on-premise consumption:
             2839          (A) in an open container; and
             2840          (B) on draft.
             2841          (ii) Beer sold pursuant to Subsection (3)(d)(i) shall be in a size of container that does
             2842      not exceed two liters, except that beer may not be sold to an individual attendee in a container
             2843      size that exceeds one liter.
             2844          (4) [Alcoholic beverages] An alcoholic beverage may not be stored, served, or sold in
             2845      any place other than as designated in the on-premise banquet licensee's application, except that
             2846      additional locations in or on the premises of an on-premise banquet licensee may be approved in
             2847      accordance with guidelines approved by the commission as provided in Subsection
             2848      32A-4-402 (2).
             2849          (5) (a) An attendee may only make an alcoholic beverage [purchases] purchase from
             2850      and be served by a person employed, designated, and trained by the on-premise banquet licensee
             2851      to sell and serve an alcoholic [beverages] beverage.
             2852          (b) Notwithstanding Subsection (5)(a), an attendee who [has purchased] purchases
             2853      bottled wine from an employee of the on-premise banquet licensee may thereafter serve wine
             2854      from the bottle to the attendee or others at the attendee's table.
             2855          (c) [Each] An attendee may have no more than two alcoholic beverages of any kind at a
             2856      time before the attendee, subject to the limitation of Subsection (3)(a)(iv).
             2857          (6) The alcoholic beverage storage area shall remain locked at all times other than those


             2858      hours and days when alcoholic beverage sales are authorized by law.
             2859          (7) (a) Except as provided in Subsection (7)(b), an alcoholic [beverages] beverage may
             2860      be offered for sale, sold, served, or otherwise furnished by an on-premise banquet licensee from
             2861      10 a.m. to 1 a.m. seven days a week:
             2862          (i) at a banquet; or
             2863          (ii) in connection with room service.
             2864          (b) Notwithstanding Subsection (7)(a), a sale or service of liquor may not occur at a
             2865      banquet or in connection with room service until after the polls are closed on the day of:
             2866          (i) a regular general election;
             2867          (ii) a regular primary election; or
             2868          (iii) a statewide special election.
             2869          (8) [Alcoholic beverages] An alcoholic beverage may not be sold, served, or otherwise
             2870      furnished to [any] a:
             2871          (a) minor;
             2872          (b) person actually, apparently, or obviously intoxicated;
             2873          (c) known habitual drunkard; or
             2874          (d) known interdicted person.
             2875          (9) (a) (i) Liquor may be sold only at [prices] a price fixed by the commission.
             2876          (ii) Liquor may not be sold at a discount [prices] price on any date or at any time.
             2877          (b) [Alcoholic beverages] An alcoholic beverage may not be sold at less than the cost of
             2878      the alcoholic beverage to the on-premise banquet licensee.
             2879          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             2880      over consumption or intoxication.
             2881          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             2882      hours of the on-premise banquet licensee's business day such as a "happy hour."
             2883          (e) [The sale or service of more] More than one alcoholic beverage may not be sold or
             2884      served for the price of a single alcoholic beverage [is prohibited].
             2885          (f) An on-premise banquet licensee may not engage in a public promotion involving or


             2886      offering free alcoholic beverages to the general public.
             2887          (10) [Alcoholic beverages] An alcoholic beverage may not be purchased for an attendee
             2888      by:
             2889          (a) the on-premise banquet licensee; or
             2890          (b) [any] an employee or agent of the on-premise banquet licensee.
             2891          (11) An attendee of a banquet may not bring [any] an alcoholic beverage into or onto,
             2892      or remove [any] an alcoholic beverage from the premises of a banquet.
             2893          (12) (a) Except as otherwise provided in this title, the sale and service of an alcoholic
             2894      [beverages] beverage by an on-premise banquet licensee at a banquet shall be made only for
             2895      consumption at the location of the banquet.
             2896          (b) The host of a banquet, an attendee, or [any other] a person other than the
             2897      on-premise banquet licensee or [its employees] an employee of the on-premise banquet licensee,
             2898      may not remove [any] an alcoholic beverage from the premises of the banquet.
             2899          (13) An on-premise banquet licensee employee shall remain at the banquet at all times
             2900      when an alcoholic [beverages are being] beverage is sold, served, or consumed at the banquet.
             2901          (14) (a) An on-premise banquet licensee may not leave [any] an unsold alcoholic
             2902      [beverages] beverage at the banquet following the conclusion of the banquet.
             2903          (b) At the conclusion of a banquet, the on-premise banquet licensee or [its employees]
             2904      an employee of the on-premise banquet licensee, shall:
             2905          (i) destroy [any] an opened and unused alcoholic [beverages] beverage that [are] is not
             2906      saleable, under conditions established by the department; and
             2907          (ii) return to the on-premise banquet licensee's approved locked storage area any:
             2908          (A) opened and unused alcoholic beverage that is saleable; and
             2909          (B) unopened [containers] container of an alcoholic [beverages] beverage.
             2910          (15) Except as provided in Subsection (14), [any] an open or sealed container of an
             2911      alcoholic [beverages] beverage not sold or consumed at a banquet:
             2912          (a) shall be stored by the on-premise banquet licensee in the on-premise banquet
             2913      licensee's approved locked storage area; and


             2914          (b) may be used at more than one banquet.
             2915          (16) An on-premise banquet licensee may not employ a minor to sell, serve, dispense, or
             2916      otherwise furnish an alcoholic [beverages] beverage in connection with the on-premise banquet
             2917      licensee's banquet and room service activities.
             2918          (17) An employee of an on-premise banquet licensee, while on duty, may not:
             2919          (a) consume an alcoholic beverage; or
             2920          (b) be intoxicated.
             2921          (18) An on-premise banquet licensee shall prominently display at [each] a banquet at
             2922      which an alcoholic [beverages are] beverage is sold or served:
             2923          (a) a copy of the licensee's on-premise banquet license; and
             2924          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             2925      drugs is a serious crime that is prosecuted aggressively in Utah."
             2926          (19) An on-premise banquet licensee may not on the premises of the hotel, resort
             2927      facility, sports center, or convention center:
             2928          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             2929      Chapter 10, Part 11, Gambling;
             2930          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             2931      Part 11, Gambling; or
             2932          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             2933      the risking of something of value for a return or for an outcome when the return or outcome is
             2934      based upon an element of chance, excluding the playing of an amusement device that confers
             2935      only an immediate and unrecorded right of replay not exchangeable for value.
             2936          (20) (a) An on-premise banquet licensee shall maintain accounting and such other
             2937      records and documents as the commission or department may require.
             2938          (b) An on-premise banquet licensee or person acting for the on-premise banquet
             2939      licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes [the
             2940      entries in any of the books] an entry in a book of account or other [documents] document of the
             2941      on-premise banquet licensee required to be made, maintained, or preserved by this title or the


             2942      rules of the commission for the purpose of deceiving the commission [or], the department, or
             2943      [any of their officials or employees] an official or employee of the commission or department, is
             2944      subject to:
             2945          (i) the suspension or revocation of the on-premise banquet license; and
             2946          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2947          (21) (a) For the purpose described in Subsection (21)(b), an on-premise banquet
             2948      licensee shall provide the department with advance notice of a scheduled banquet in accordance
             2949      with rules made by the commission in accordance with Title 63, Chapter 46a, Utah
             2950      Administrative Rulemaking Act.
             2951          (b) The advance notice required by Subsection (21)(a) is required to provide any of the
             2952      following the opportunity to conduct a random inspection of a banquet:
             2953          (i) an authorized representative of the commission or the department; or
             2954          (ii) a law enforcement officer.
             2955          (22) An on-premise banquet licensee shall maintain at least 50% of its total annual
             2956      banquet gross receipts from the sale of food, not including:
             2957          (a) mix for an alcoholic [beverages] beverage; and
             2958          (b) [charges] a charge in connection with the service of an alcoholic [beverages]
             2959      beverage.
             2960          (23) A person may not transfer an on-premise banquet license from one business
             2961      location to another without prior written approval of the commission.
             2962          (24) (a) An on-premise banquet licensee may not sell, transfer, assign, exchange, barter,
             2963      give, or attempt in any way to dispose of the license to [any other] another person, whether for
             2964      monetary gain or not.
             2965          (b) An on-premise banquet license has no monetary value for the purpose of any type of
             2966      disposition.
             2967          (25) (a) Room service of an alcoholic [beverages] beverage to a guest room of a hotel
             2968      or resort facility shall be provided in person by an on-premise banquet licensee employee only to
             2969      an adult guest in the guest room.


             2970          (b) [Alcoholic beverages] An alcoholic beverage may not be left outside a guest room
             2971      for retrieval by a guest.
             2972          (c) An on-premise banquet licensee may only provide an alcoholic [beverages] beverage
             2973      for room service in a sealed [containers] container.
             2974          (26) An on-premise banquet licensee or an employee of the on-premise banquet licensee
             2975      may not knowingly allow a person on a banquet location of a hotel, resort facility, sports center,
             2976      or convention center to, in violation of Title 58, Chapter 37, Utah Controlled Substances Act,
             2977      or Chapter 37a, Utah Drug Paraphernalia Act:
             2978          (a) sell, distribute, possess, or use a controlled substance, as defined in Section 58-37-2 ;
             2979      or
             2980          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             2981      Section 58-37a-3 .
             2982          Section 35. Section 32A-5-101 is amended to read:
             2983           32A-5-101. Commission's power to license private clubs -- Limitations.
             2984          (1) Before a private club may sell or allow the consumption of alcoholic beverages on
             2985      its premises, the private club shall first obtain a license from the commission as provided in this
             2986      chapter.
             2987          (2) The commission may grant private club licenses to social clubs, recreational,
             2988      athletic, or kindred associations that desire to maintain premises upon which alcoholic
             2989      beverages may be stored, sold, served, and consumed.
             2990          (3) At the time the commission grants a private club license the commission shall
             2991      designate whether the private club license qualifies as a class A, B, C, or D license as defined in
             2992      Subsections (3)(a) through (d).
             2993          (a) A "class A licensee" is a private club licensee that:
             2994          (i) meets the requirements of this chapter;
             2995          (ii) owns, maintains, or operates a substantial recreational facility in conjunction with a
             2996      club house such as:
             2997          (A) a golf course; or


             2998          (B) a tennis facility;
             2999          (iii) has at least 50% of the total membership having:
             3000          (A) full voting rights; and
             3001          (B) an equal share of the equity of the club; and
             3002          (iv) if there is more than one class of membership, has at least one class of membership
             3003      that entitles each member in that class to:
             3004          (A) full voting rights; and
             3005          (B) an equal share of the equity of the club.
             3006          (b) A "class B licensee" is a private club licensee that:
             3007          (i) meets the requirements of this chapter;
             3008          (ii) has no capital stock;
             3009          (iii) exists solely for:
             3010          (A) the benefit of its members and their beneficiaries; and
             3011          (B) [any] a lawful social, intellectual, educational, charitable, benevolent, moral,
             3012      fraternal, patriotic, or religious purpose for the benefit of its members or the public, carried on
             3013      through voluntary activity of its members in their local lodges;
             3014          (iv) has a representative form of government; and
             3015          (v) has a lodge system in which:
             3016    &nbs