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

S.B. 167

             1     

ALCOHOLIC BEVERAGES ON ELECTION DAY

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Scott D. McCoy

             5     
House Sponsor: Gregory H. Hughes

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


             28     
             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 32A-3-106 is amended to read:
             31           32A-3-106. Operational restrictions.
             32          (1) (a) A package agency may not be operated until a package agency agreement has
             33      been entered into by the package agent and the department.
             34          (b) The agreement shall state the conditions of operation by which the package agent
             35      and the department are bound.
             36          (c) If the package agent violates the conditions, terms, or covenants contained in the
             37      agreement[,] or violates any provisions of this title, the department may take whatever action
             38      against the agent that is allowed by the package agency agreement.
             39          (d) Actions against the package agent are governed solely by the agreement and may
             40      include suspension or revocation of the agency.
             41          (2) (a) A package agency may not purchase liquor from any person except from the
             42      department.
             43          (b) At the discretion of the department, liquor may be provided by the department to a
             44      package agency for sale on consignment.
             45          (3) The department may pay or otherwise remunerate a package agent on any basis
             46      including sales or volume of business done by the agency.
             47          (4) Liquor may not be sold from any package agency except in a sealed package. The
             48      package may not be opened on the premises of a package agency.
             49          (5) All liquor sold shall be in packages that are properly marked and labeled in
             50      accordance with the rules adopted under this title.
             51          (6) A package agency may not display liquor or price lists in windows or showcases
             52      visible to passersby.
             53          (7) (a) An officer, agent, clerk, or employee of a package agency may not consume or
             54      allow to be consumed by any person any alcoholic beverage on the premises of a package
             55      agency.
             56          (b) Violation of this Subsection (7) is a class B misdemeanor.
             57          (8) Liquor may not be sold except at prices fixed by the commission.
             58          (9) Liquor may not be sold, delivered, or furnished to any:


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


             90          (vi) the package agency only sells wine produced at the winery; and
             91          (vii) the package agency's days and hours of sale are the same as the days and hours of
             92      sale at the restaurant described in Subsection (10)(b)(ii).
             93          (c) (i) In addition to the requirements of Subsection (10)(a), the sale or delivery of
             94      liquor may not be made on or from the premises of a package agency described in Subsection
             95      (10)(c)(ii) and a package agency described in Subsection (10)(c)(ii) may not be open for the
             96      sale of liquor until after the polls are closed:
             97          (A) on a day on which is held:
             98          (I) a regular general election;
             99          (II) a regular primary election; or
             100          (III) a statewide special election; or
             101          (B) on a day on which is held a municipal, local district, special service district, or
             102      school election if:
             103          (I) the package agency is within the boundaries of the municipality, local district,
             104      special service district, or school district holding the election; and
             105          (II) the municipality, local district, special service district, or school district in which
             106      the election is held notifies the department at least 30 days before the day on which the election
             107      is held.
             108          (ii) This Subsection (10)(c) applies to a package agency that contracts with the
             109      department to sell liquor in a manner similar to a state store, whether or not the operator of the
             110      package agency has a source of income that is not from the sale of liquor.
             111          (iii) The commission may by rule made in accordance with Title 63, Chapter 46a, Utah
             112      Administrative Rulemaking Act, define what constitutes a package agency that sells liquor "in
             113      a manner similar to a state store."
             114          (11) The package agency certificate issued by the commission shall be permanently
             115      posted in a conspicuous place in the package agency.
             116          (12) Each package agent shall display in a prominent place in the package agency a
             117      sign in large letters stating: "Warning: Driving under the influence of alcohol or drugs is a
             118      serious crime that is prosecuted aggressively in Utah."
             119          (13) (a) A package agency may not close or cease operation for a period longer than 72
             120      hours, unless:


             121          (i) the package agency notifies the department in writing at least seven days before the
             122      closing; and
             123          (ii) the closure or cessation of operation is first approved by the department.
             124          (b) Notwithstanding Subsection (13)(a), in the case of emergency closure, immediate
             125      notice of closure shall be made to the department by telephone.
             126          (c) (i) The department may authorize a closure or cessation of operation for a period
             127      not to exceed 60 days.
             128          (ii) The department may extend the initial period an additional 30 days upon written
             129      request of the package agency and upon a showing of good cause.
             130          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             131      commission approval.
             132          (d) The notice required by Subsection (13)(a) shall include:
             133          (i) the dates of closure or cessation of operation;
             134          (ii) the reason for the closure or cessation of operation; and
             135          (iii) the date on which the agency will reopen or resume operation.
             136          (e) Failure of the agency to provide notice and to obtain department authorization prior
             137      to closure or cessation of operation shall result in an automatic termination of the package
             138      agency contract effective immediately.
             139          (f) Failure of the agency to reopen or resume operation by the approved date shall
             140      result in an automatic termination of the package agency contract effective on that date.
             141          (14) Liquor may not be stored or sold in any place other than as designated in the
             142      package agent's application, unless the package agent first applies for and receives approval
             143      from the department for a change of location within the package agency premises.
             144          (15) (a) Except to the extent authorized by commission rule, a minor may not be
             145      admitted into, or be on the premises of a package agency unless accompanied by a person who
             146      is:
             147          (i) 21 years of age or older; and
             148          (ii) the minor's parent, legal guardian, or spouse.
             149          (b) Any package agent or employee of the package agency that has reason to believe
             150      that a person who is on the premises of a package agency store is under the age of 21 and is not
             151      accompanied by a person described in Subsection (15)(a) may:


             152          (i) ask the suspected minor for proof of age;
             153          (ii) ask the person who accompanied the suspected minor for proof of age; and
             154          (iii) ask the suspected minor or the person who accompanied the suspected minor for
             155      proof of parental, guardianship, or spousal relationship.
             156          (c) Any package agent or employee of a package agency shall refuse to sell liquor to
             157      the suspected minor and to the person who accompanied the suspected minor into the package
             158      agency if they fail to provide any of the information specified in Subsection (15)(b).
             159          (d) Any package agent or employee of a package agency shall require the suspected
             160      minor and the person who accompanied the suspected minor into the package agency to
             161      immediately leave the premises of the package agency if they fail to provide any of the
             162      information specified in Subsection (15)(b).
             163          (16) A package agency may not transfer its operations from one location to another
             164      without prior written approval of the commission.
             165          (17) (a) A person, having been granted a package agency, may not sell, transfer, assign,
             166      exchange, barter, give, or attempt in any way to dispose of the package agency to any other
             167      person, whether for monetary gain or not.
             168          (b) A package agency has no monetary value for the purpose of any type of disposition.
             169          Section 2. Section 32A-4-106 is amended to read:
             170           32A-4-106. Operational restrictions.
             171          Each person granted a restaurant liquor license and the employees and management
             172      personnel of the restaurant shall comply with the following conditions and requirements.
             173      Failure to comply may result in a suspension or revocation of the license or other disciplinary
             174      action taken against individual employees or management personnel.
             175          (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from state
             176      stores or package agencies.
             177          (b) Liquor purchased may be transported by the restaurant liquor licensee from the
             178      place of purchase to the licensed premises.
             179          (c) Payment for liquor shall be made in accordance with rules established by the
             180      commission.
             181          (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
             182      a quantity not to exceed one ounce per beverage dispensed through a calibrated metered


             183      dispensing system approved by the department in accordance with commission rules adopted
             184      under this title, except that:
             185          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             186      system if used as a secondary flavoring ingredient in a beverage subject to the following
             187      restrictions:
             188          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             189      a primary spirituous liquor;
             190          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             191          (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
             192      on the floor plan provided to the department; and
             193          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             194          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             195      system if used:
             196          (i) as a flavoring on desserts; and
             197          (ii) in the preparation of flaming food dishes, drinks, and desserts;
             198          (c) each restaurant patron may have no more than 2.75 ounces of spirituous liquor at a
             199      time; and
             200          (d) each restaurant patron may have no more than one spirituous liquor drink at a time
             201      before the patron.
             202          (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
             203      exceed five ounces per glass or individual portion.
             204          (ii) An individual portion of wine may be served to a patron in more than one glass as
             205      long as the total amount of wine does not exceed five ounces.
             206          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             207      Subsection (7)(e).
             208          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             209      fixed by the commission to tables of four or more persons.
             210          (ii) Wine may be sold and served in containers not exceeding 750 milliliters at prices
             211      fixed by the commission to tables of less than four persons.
             212          (c) A wine service may be performed and a service charge assessed by the restaurant as
             213      authorized by commission rule for wine purchased at the restaurant.


             214          (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
             215      fixed by the commission.
             216          (b) A service charge may be assessed by the restaurant as authorized by commission
             217      rule for heavy beer purchased at the restaurant.
             218          (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant licensed to sell liquor may sell
             219      beer for on-premise consumption:
             220          (A) in an open container; and
             221          (B) on draft.
             222          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             223      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             224      container that exceeds one liter.
             225          (b) A restaurant licensed under this chapter that sells beer pursuant to Subsection
             226      (5)(a):
             227          (i) may do so without obtaining a separate on-premise beer retailer license from the
             228      commission; and
             229          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             230      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             231      inconsistent with or less restrictive than the operational restrictions under this part.
             232          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             233      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             234      restaurant's:
             235          (i) state liquor license; and
             236          (ii) alcoholic beverage license issued by the local authority.
             237          (6) Alcoholic beverages may not be stored, served, or sold in any place other than as
             238      designated in the licensee's application, unless the licensee first applies for and receives
             239      approval from the department for a change of location within the restaurant.
             240          (7) (a) (i) A patron may only make alcoholic beverage purchases in the restaurant from
             241      and be served by a person employed, designated, and trained by the licensee to sell and serve
             242      alcoholic beverages.
             243          (ii) Notwithstanding Subsection (7)(a)(i), a patron who has purchased bottled wine
             244      from an employee of the restaurant or has carried bottled wine onto the premises of the


             245      restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the patron
             246      or others at the patron's table.
             247          (b) Alcoholic beverages shall be delivered by a server to the patron.
             248          (c) Any alcoholic beverage may only be consumed at the patron's table or counter.
             249          (d) Alcoholic beverages may not be served to or consumed by a patron at a bar.
             250          (e) Each restaurant patron may have no more than two alcoholic beverages of any kind
             251      at a time before the patron, subject to the limitation in Subsection (2)(d).
             252          (8) The liquor storage area shall remain locked at all times other than those hours and
             253      days when liquor sales are authorized by law.
             254          (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             255      restaurant [during the following days or hours: (i) until after the polls are closed on the day of
             256      any: (A) regular general election; (B) regular primary election; or (C) statewide special
             257      election; (ii) until after the polls are closed on the day of any municipal, local district, special
             258      service district, or school election, but only: (A) within the boundaries of the municipality,
             259      local district, special service district, or school district; and (B) if required by local ordinance;
             260      and (iii)] on any [other] day after 12 midnight [and] or before 12 noon.
             261          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             262      Licenses, for on-premise beer licensees.
             263          (10) Alcoholic beverages may not be sold except in connection with an order for food
             264      prepared, sold, and served at the restaurant.
             265          (11) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             266          (a) minor;
             267          (b) person actually, apparently, or obviously intoxicated;
             268          (c) known habitual drunkard; or
             269          (d) known interdicted person.
             270          (12) (a) (i) Liquor may be sold only at prices fixed by the commission.
             271          (ii) Liquor may not be sold at discount prices on any date or at any time.
             272          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             273      beverage to the licensee.
             274          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             275      over consumption or intoxication.


             276          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             277      hours of the restaurant's business day such as a "happy hour."
             278          (e) The sale or service of more than one alcoholic beverage for the price of a single
             279      alcoholic beverage is prohibited.
             280          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
             281      during any set period for a fixed price is prohibited.
             282          (g) A restaurant licensee may not engage in a public promotion involving or offering
             283      free alcoholic beverages to the general public.
             284          (13) Alcoholic beverages may not be purchased for a patron of a restaurant by:
             285          (a) the licensee; or
             286          (b) any employee or agent of the licensee.
             287          (14) (a) A person may not bring onto the premises of a restaurant liquor licensee any
             288      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             289      discretion of the licensee, bottled wine onto the premises of any restaurant liquor licensee for
             290      on-premise consumption.
             291          (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or its
             292      officers, managers, employees, or agents may not allow:
             293          (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
             294      consumption; or
             295          (ii) consumption of any such alcoholic beverage on its premises.
             296          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             297      or other representative of the licensee upon entering the restaurant.
             298          (d) A wine service may be performed and a service charge assessed by the restaurant as
             299      authorized by commission rule for wine carried in by a patron.
             300          (15) (a) Except as provided in Subsection (15)(b), a restaurant licensee and its
             301      employees may not permit a restaurant patron to carry from the restaurant premises an open
             302      container that:
             303          (i) is used primarily for drinking purposes; and
             304          (ii) contains any alcoholic beverage.
             305          (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
             306      restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought


             307      onto the premises of the restaurant in accordance with Subsection (14), provided the bottle has
             308      been recorked or recapped before removal.
             309          (16) (a) A minor may not be employed by a restaurant licensee to sell or dispense
             310      alcoholic beverages.
             311          (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
             312      employed to enter the sale at a cash register or other sales recording device.
             313          (17) An employee of a restaurant liquor licensee, while on duty, may not:
             314          (a) consume an alcoholic beverage; or
             315          (b) be intoxicated.
             316          (18) Any charge or fee made in connection with the sale, service, or consumption of
             317      liquor may be stated in food or alcoholic beverage menus including:
             318          (a) a set-up charge;
             319          (b) a service charge; or
             320          (c) a chilling fee.
             321          (19) Each restaurant liquor licensee shall display in a prominent place in the restaurant:
             322          (a) the liquor license that is issued by the department;
             323          (b) a list of the types and brand names of liquor being served through its calibrated
             324      metered dispensing system; and
             325          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             326      drugs is a serious crime that is prosecuted aggressively in Utah."
             327          (20) A restaurant liquor licensee may not on the premises of the restaurant liquor
             328      licensee:
             329          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             330      Chapter 10, Part 11, Gambling;
             331          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             332      Part 11, Gambling; or
             333          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             334      the risking of something of value for a return or for an outcome when the return or outcome is
             335      based upon an element of chance, excluding the playing of an amusement device that confers
             336      only an immediate and unrecorded right of replay not exchangeable for value.
             337          (21) (a) Each restaurant liquor licensee shall maintain an expense ledger or record


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


             369          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             370          (22) (a) A restaurant liquor licensee may not close or cease operation for a period
             371      longer than 240 hours, unless:
             372          (i) the restaurant liquor licensee notifies the department in writing at least seven days
             373      before the closing ; and
             374          (ii) the closure or cessation of operation is first approved by the department.
             375          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, immediate
             376      notice of closure shall be made to the department by telephone.
             377          (c) The department may authorize a closure or cessation of operation for a period not
             378      to exceed 60 days. The department may extend the initial period an additional 30 days upon
             379      written request of the restaurant licensee and upon a showing of good cause. A closure or
             380      cessation of operation may not exceed a total of 90 days without commission approval.
             381          (d) Any notice shall include:
             382          (i) the dates of closure or cessation of operation;
             383          (ii) the reason for the closure or cessation of operation; and
             384          (iii) the date on which the licensee will reopen or resume operation.
             385          (e) Failure of the licensee to provide notice and to obtain department authorization
             386      prior to closure or cessation of operation shall result in an automatic forfeiture of:
             387          (i) the license; and
             388          (ii) the unused portion of the license fee for the remainder of the license year effective
             389      immediately.
             390          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             391      result in an automatic forfeiture of:
             392          (i) the license; and
             393          (ii) the unused portion of the license fee for the remainder of the license year.
             394          (23) Each restaurant liquor licensee shall maintain at least 70% of its total restaurant
             395      business from the sale of food, which does not include mix for alcoholic beverages or service
             396      charges.
             397          (24) A restaurant liquor license may not be transferred from one location to another,
             398      without prior written approval of the commission.
             399          (25) (a) A person, having been granted a restaurant liquor license may not sell, transfer,


             400      assign, exchange, barter, give, or attempt in any way to dispose of the license to any other
             401      person whether for monetary gain or not.
             402          (b) A restaurant liquor license has no monetary value for the purpose of any type of
             403      disposition.
             404          (26) Each server of alcoholic beverages in a licensee's establishment shall keep a
             405      written beverage tab for each table or group that orders or consumes alcoholic beverages on the
             406      premises. The beverage tab shall list the type and amount of alcoholic beverages ordered or
             407      consumed.
             408          (27) A person's willingness to serve alcoholic beverages may not be made a condition
             409      of employment as a server with a restaurant that has a restaurant liquor license.
             410          Section 3. Section 32A-4-307 is amended to read:
             411           32A-4-307. Operational restrictions.
             412          Each person granted a limited restaurant license and the employees and management
             413      personnel of the restaurant shall comply with the following conditions and requirements.
             414      Failure to comply may result in a suspension or revocation of the license or other disciplinary
             415      action taken against individual employees or management personnel.
             416          (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
             417      except from state stores or package agencies .
             418          (b) Wine and heavy beer purchased in accordance with Subsection (1)(a) may be
             419      transported by the licensee from the place of purchase to the licensed premises.
             420          (c) Payment for wine and heavy beer shall be made in accordance with rules
             421      established by the commission.
             422          (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of
             423      spirituous liquor on the premises of the restaurant.
             424          (b) Spirituous liquor may not be on the premises of the restaurant except for use:
             425          (i) as a flavoring on desserts; and
             426          (ii) in the preparation of flaming food dishes, drinks, and desserts.
             427          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             428      exceed five ounces per glass or individual portion.
             429          (ii) An individual portion may be served to a patron in more than one glass as long as
             430      the total amount of wine does not exceed five ounces.


             431          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             432      Subsection (7)(e).
             433          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             434      fixed by the commission to tables of four or more persons.
             435          (ii) Wine may be sold and served in containers not exceeding 750 milliliters at prices
             436      fixed by the commission to tables of less than four persons.
             437          (c) A wine service may be performed and a service charge assessed by the limited
             438      restaurant as authorized by commission rule for wine purchased at the limited restaurant.
             439          (4) (a) Heavy beer may be served in original containers not exceeding one liter at prices
             440      fixed by the commission.
             441          (b) A service charge may be assessed by the limited restaurant as authorized by
             442      commission rule for heavy beer purchased at the restaurant.
             443          (5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer for
             444      on-premise consumption:
             445          (A) in an open container; and
             446          (B) on draft.
             447          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             448      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             449      container that exceeds one liter.
             450          (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
             451          (i) may do so without obtaining a separate on-premise beer retailer license from the
             452      commission; and
             453          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             454      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             455      inconsistent with or less restrictive than the operational restrictions under this part.
             456          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             457      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             458      restaurant's:
             459          (i) limited restaurant license; and
             460          (ii) alcoholic beverage license issued by the local authority.
             461          (6) Wine, heavy beer, and beer may not be stored, served, or sold in any place other


             462      than as designated in the licensee's application, unless the licensee first applies for and receives
             463      approval from the department for a change of location within the restaurant.
             464          (7) (a) (i) A patron may only make alcoholic beverage purchases in the limited
             465      restaurant from and be served by a person employed, designated, and trained by the licensee to
             466      sell and serve alcoholic beverages.
             467          (ii) Notwithstanding Subsection (7)(a)(i), a patron who has purchased bottled wine
             468      from an employee of the restaurant or has carried bottled wine onto the premises of the
             469      restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the patron
             470      or others at the patron's table.
             471          (b) Alcoholic beverages shall be delivered by a server to the patron.
             472          (c) Any alcoholic beverage may only be consumed at the patron's table or counter.
             473          (d) Alcoholic beverages may not be served to or consumed by a patron at a bar.
             474          (e) Each restaurant patron may have no more than two alcoholic beverages of any kind
             475      at a time before the patron.
             476          (8) The alcoholic beverage storage area shall remain locked at all times other than
             477      those hours and days when alcoholic beverage sales are authorized by law.
             478          (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
             479      furnished at a limited restaurant [during the following days or hours: (i) until after the polls are
             480      closed on the day of any: (A) regular general election; (B) regular primary election; or (C)
             481      statewide special election; (ii) until after the polls are closed on the day of any municipal, local
             482      district, special service district, or school election, but only: (A) within the boundaries of the
             483      municipality, local district, special service district, or school district; and (B) if required by
             484      local ordinance; and (iii)] on any [other] day after 12 midnight [and] or before 12 noon.
             485          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             486      Licenses, for on-premise beer licensees.
             487          (10) Alcoholic beverages may not be sold except in connection with an order of food
             488      prepared, sold, and served at the restaurant.
             489          (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to
             490      [any] a:
             491          (a) minor;
             492          (b) person actually, apparently, or obviously intoxicated;


             493          (c) known habitual drunkard; or
             494          (d) known interdicted person.
             495          (12) (a) (i) Wine and heavy beer may be sold only at prices fixed by the commission.
             496          (ii) Wine and heavy beer may not be sold at discount prices on any date or at any time.
             497          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverages
             498      to the licensee.
             499          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             500      over consumption or intoxication.
             501          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             502      hours of the limited restaurant's business day such as a "happy hour."
             503          (e) The sale or service of more than one alcoholic beverage for the price of a single
             504      alcoholic beverage is prohibited.
             505          (f) The sale or service of an indefinite or unlimited number of alcoholic beverages
             506      during any set period for a fixed price is prohibited.
             507          (g) A limited restaurant licensee may not engage in a public promotion involving or
             508      offering free alcoholic beverages to the general public.
             509          (13) Alcoholic beverages may not be purchased for a patron of the restaurant by:
             510          (a) the licensee; or
             511          (b) any employee or agent of the licensee.
             512          (14) (a) A person may not bring onto the premises of a limited restaurant licensee any
             513      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             514      discretion of the licensee, bottled wine onto the premises of any limited restaurant licensee for
             515      on-premise consumption.
             516          (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or its
             517      officers, managers, employees, or agents may not allow:
             518          (i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
             519      consumption; or
             520          (ii) consumption of any alcoholic beverage described in Subsection (14)(b)(i) on its
             521      premises.
             522          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             523      or other representative of the licensee upon entering the restaurant.


             524          (d) A wine service may be performed and a service charge assessed by the restaurant as
             525      authorized by commission rule for wine carried in by a patron.
             526          (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and its
             527      employees may not permit a restaurant patron to carry from the restaurant premises an open
             528      container that:
             529          (i) is used primarily for drinking purposes; and
             530          (ii) contains any alcoholic beverage.
             531          (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
             532      contents of a bottle of wine if before removal the bottle has been recorked or recapped.
             533          (16) (a) A minor may not be employed by a limited restaurant licensee to sell or
             534      dispense alcoholic beverages.
             535          (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
             536      employed to enter the sale at a cash register or other sales recording device.
             537          (17) An employee of a limited restaurant licensee, while on duty, may not:
             538          (a) consume an alcoholic beverage; or
             539          (b) be intoxicated.
             540          (18) A charge or fee made in connection with the sale, service, or consumption of wine
             541      or heavy beer may be stated in food or alcoholic beverage menus including:
             542          (a) a service charge; or
             543          (b) a chilling fee.
             544          (19) Each limited restaurant licensee shall display in a prominent place in the
             545      restaurant:
             546          (a) the license that is issued by the department; and
             547          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             548      drugs is a serious crime that is prosecuted aggressively in Utah."
             549          (20) A limited restaurant licensee may not on the premises of the restaurant:
             550          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             551      Chapter 10, Part 11, Gambling;
             552          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             553      Part 11, Gambling; or
             554          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires


             555      the risking of something of value for a return or for an outcome when the return or outcome is
             556      based upon an element of chance, excluding the playing of an amusement device that confers
             557      only an immediate and unrecorded right of replay not exchangeable for value.
             558          (21) (a) Each limited restaurant licensee shall maintain an expense ledger or record
             559      showing in detail:
             560          (i) quarterly expenditures made separately for:
             561          (A) wine;
             562          (B) heavy beer;
             563          (C) beer;
             564          (D) food; and
             565          (E) all other items required by the department; and
             566          (ii) sales made separately for:
             567          (A) wine;
             568          (B) heavy beer;
             569          (C) beer;
             570          (D) food; and
             571          (E) all other items required by the department.
             572          (b) The record required by Subsection (21)(a) shall be kept:
             573          (i) in a form approved by the department; and
             574          (ii) current for each three-month period.
             575          (c) Each expenditure shall be supported by:
             576          (i) delivery tickets;
             577          (ii) invoices;
             578          (iii) receipted bills;
             579          (iv) canceled checks;
             580          (v) petty cash vouchers; or
             581          (vi) other sustaining data or memoranda.
             582          (d) In addition to the ledger or record maintained under Subsections (21)(a) through
             583      (c), a limited restaurant licensee shall maintain accounting and other records and documents as
             584      the department may require.
             585          (e) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies,


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


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


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


             679          (C) An individual portion of wine is considered to be one alcoholic beverage under
             680      Subsection (5)(c).
             681          (ii) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed
             682      by the commission.
             683          (iii) A wine service may be performed and a service charge assessed by the on-premise
             684      banquet licensee as authorized by commission rule for wine purchased on the banquet
             685      premises.
             686          (c) (i) Heavy beer may be served in original containers not exceeding one liter at prices
             687      fixed by the commission.
             688          (ii) A service charge may be assessed by the on-premise banquet licensee as authorized
             689      by commission rule for heavy beer purchased on the banquet premises.
             690          (d) (i) Except as provided in Subsection (3)(d)(ii), beer may be sold and served for
             691      on-premise consumption:
             692          (A) in an open container; and
             693          (B) on draft.
             694          (ii) Beer sold pursuant to Subsection (3)(d)(i) shall be in a size of container that does
             695      not exceed two liters, except that beer may not be sold to an individual attendee in a container
             696      size that exceeds one liter.
             697          (4) Alcoholic beverages may not be stored, served, or sold in any place other than as
             698      designated in the on-premise banquet licensee's application, except that additional locations in
             699      or on the premises of an on-premise banquet licensee may be approved in accordance with
             700      guidelines approved by the commission as provided in Subsection 32A-4-402 (2).
             701          (5) (a) An attendee may only make alcoholic beverage purchases from and be served by
             702      a person employed, designated, and trained by the on-premise banquet licensee to sell and
             703      serve alcoholic beverages.
             704          (b) Notwithstanding Subsection (5)(a), an attendee who has purchased bottled wine
             705      from an employee of the on-premise banquet licensee may thereafter serve wine from the bottle
             706      to the attendee or others at the attendee's table.
             707          (c) Each attendee may have no more than two alcoholic beverages of any kind at a time
             708      before the attendee.
             709          (6) The alcoholic beverage storage area shall remain locked at all times other than


             710      those hours and days when alcoholic beverage sales are authorized by law.
             711          (7) [(a) Except as provided in Subsection (7)(b), alcoholic] Alcoholic beverages may
             712      be offered for sale, sold, served, or otherwise furnished from 10 a.m. to 1 a.m. seven days a
             713      week:
             714          [(i)] (a) at a banquet; or
             715          [(ii)] (b) in connection with room service.
             716          [(b) Notwithstanding Subsection (7)(a), a sale or service of liquor may not occur at a
             717      banquet or in connection with room service until after the polls are closed on the day of:]
             718          [(i) a regular general election;]
             719          [(ii) a regular primary election; or]
             720          [(iii) a statewide special election.]
             721          (8) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             722          (a) minor;
             723          (b) person actually, apparently, or obviously intoxicated;
             724          (c) known habitual drunkard; or
             725          (d) known interdicted person.
             726          (9) (a) (i) Liquor may be sold only at prices fixed by the commission.
             727          (ii) Liquor may not be sold at discount prices on any date or at any time.
             728          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             729      to the licensee.
             730          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             731      over consumption or intoxication.
             732          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             733      hours of the on-premise banquet licensee's business day such as a "happy hour."
             734          (e) The sale or service of more than one alcoholic beverage for the price of a single
             735      alcoholic beverage is prohibited.
             736          (f) An on-premise banquet licensee may not engage in a public promotion involving or
             737      offering free alcoholic beverages to the general public.
             738          (10) Alcoholic beverages may not be purchased for an attendee by:
             739          (a) the on-premise banquet licensee; or
             740          (b) any employee or agent of the on-premise banquet licensee.


             741          (11) An attendee of a banquet may not bring any alcoholic beverage into or onto, or
             742      remove any alcoholic beverage from the premises of a banquet.
             743          (12) (a) Except as otherwise provided in this title, the sale and service of alcoholic
             744      beverages by an on-premise banquet licensee at a banquet shall be made only for consumption
             745      at the location of the banquet.
             746          (b) The host of a banquet, an attendee, or any other person other than the on-premise
             747      banquet licensee or its employees, may not remove any alcoholic beverage from the premises
             748      of the banquet.
             749          (13) An on-premise banquet licensee employee shall remain at the banquet at all times
             750      when alcoholic beverages are being sold, served, or consumed at the banquet.
             751          (14) (a) An on-premise banquet licensee may not leave any unsold alcoholic beverages
             752      at the banquet following the conclusion of the banquet.
             753          (b) At the conclusion of a banquet, the on-premise banquet licensee or its employees,
             754      shall:
             755          (i) destroy any opened and unused alcoholic beverages that are not saleable, under
             756      conditions established by the department; and
             757          (ii) return to the on-premise banquet licensee's approved locked storage area any:
             758          (A) opened and unused alcoholic beverage that is saleable; and
             759          (B) unopened containers of alcoholic beverages.
             760          (15) Except as provided in Subsection (14), any open or sealed container of alcoholic
             761      beverages not sold or consumed at a banquet:
             762          (a) shall be stored by the on-premise banquet licensee in the licensee's approved locked
             763      storage area; and
             764          (b) may be used at more than one banquet.
             765          (16) An on-premise banquet licensee may not employ a minor to sell, serve, dispense,
             766      or otherwise furnish alcoholic beverages in connection with the licensee's banquet and room
             767      service activities.
             768          (17) An employee of an on-premise banquet licensee, while on duty, may not:
             769          (a) consume an alcoholic beverage; or
             770          (b) be intoxicated.
             771          (18) An on-premise banquet licensee shall prominently display at each banquet at


             772      which alcoholic beverages are sold or served:
             773          (a) a copy of the licensee's on-premise banquet license; and
             774          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             775      drugs is a serious crime that is prosecuted aggressively in Utah."
             776          (19) An on-premise banquet licensee may not on the premises of the hotel, resort
             777      facility, sports center, or convention center:
             778          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             779      Chapter 10, Part 11, Gambling;
             780          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             781      Part 11, Gambling; or
             782          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             783      the risking of something of value for a return or for an outcome when the return or outcome is
             784      based upon an element of chance, excluding the playing of an amusement device that confers
             785      only an immediate and unrecorded right of replay not exchangeable for value.
             786          (20) (a) An on-premise banquet licensee shall maintain accounting and such other
             787      records and documents as the commission or department may require.
             788          (b) An on-premise banquet licensee or person acting for the on-premise banquet
             789      licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the
             790      entries in any of the books of account or other documents of the on-premise banquet licensee
             791      required to be made, maintained, or preserved by this title or the rules of the commission for
             792      the purpose of deceiving the commission or department, or any of their officials or employees,
             793      is subject to:
             794          (i) the suspension or revocation of the on-premise banquet license; and
             795          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             796          (21) (a) For the purpose described in Subsection (21)(b), an on-premise banquet
             797      licensee shall provide the department with advance notice of a scheduled banquet in
             798      accordance with rules made by the commission in accordance with Title 63, Chapter 46a, Utah
             799      Administrative Rulemaking Act.
             800          (b) The advance notice required by Subsection (21)(a) is required to provide any of the
             801      following the opportunity to conduct a random inspection of a banquet:
             802          (i) an authorized representative of the commission or the department; or


             803          (ii) a law enforcement officer.
             804          (22) An on-premise banquet licensee shall maintain at least 50% of its total annual
             805      banquet gross receipts from the sale of food, not including:
             806          (a) mix for alcoholic beverages; and
             807          (b) charges in connection with the service of alcoholic beverages.
             808          (23) A person may not transfer an on-premise banquet license from one business
             809      location to another without prior written approval of the commission.
             810          (24) (a) An on-premise banquet licensee may not sell, transfer, assign, exchange,
             811      barter, give, or attempt in any way to dispose of the license to any other person, whether for
             812      monetary gain or not.
             813          (b) An on-premise banquet license has no monetary value for the purpose of any type
             814      of disposition.
             815          (25) (a) Room service of alcoholic beverages to a guest room of a hotel or resort
             816      facility shall be provided in person by an on-premise banquet licensee employee only to an
             817      adult guest in the guest room.
             818          (b) Alcoholic beverages may not be left outside a guest room for retrieval by a guest.
             819          (c) An on-premise banquet licensee may only provide alcoholic beverages for room
             820      service in sealed containers.
             821          Section 5. Section 32A-5-107 is amended to read:
             822           32A-5-107. Operational restrictions.
             823          Each club granted a private club license and the employees, management personnel, and
             824      members of the club shall comply with the following conditions and requirements. Failure to
             825      comply may result in a suspension or revocation of the license or other disciplinary action
             826      taken against individual employees or management personnel.
             827          (1) Each private club shall have a governing body that:
             828          (a) consists of three or more members of the club; and
             829          (b) holds regular meetings to:
             830          (i) review membership applications; and
             831          (ii) conduct any other business as required by the bylaws or house rules of the private
             832      club.
             833          (2) (a) Each private club may admit an individual as a member only on written


             834      application signed by the applicant, subject to:
             835          (i) the applicant paying an application fee as required by Subsection (4); and
             836          (ii) investigation, vote, and approval of a quorum of the governing body.
             837          (b) (i) Admissions shall be recorded in the official minutes of a regular meeting of the
             838      governing body.
             839          (ii) An application, whether approved or disapproved, shall be filed as a part of the
             840      official records of the licensee.
             841          (c) Notwithstanding Subsection (2)(a), a private club, in its discretion, may admit an
             842      applicant and immediately accord the applicant temporary privileges of a member until the
             843      governing body completes its investigation and votes on the application, subject to the
             844      following conditions:
             845          (i) the applicant shall:
             846          (A) submit a written application; and
             847          (B) pay the application fee required by Subsection (4);
             848          (ii) the governing body votes on the application at its next meeting which shall take
             849      place no later than 31 days following the day on which the application was submitted; and
             850          (iii) the applicant's temporary membership privileges are terminated if the governing
             851      body disapproves the application.
             852          (d) The spouse of a member of any class of private club is entitled to all the rights and
             853      privileges of the member:
             854          (i) to the extent permitted by the bylaws or house rules of the private club; and
             855          (ii) except to the extent restricted by this title.
             856          (e) The minor child of a member of a class A private club is entitled to all the rights
             857      and privileges of the member:
             858          (i) to the extent permitted by the bylaws or house rules of the private club; and
             859          (ii) except to the extent restricted by this title.
             860          (3) (a) Each private club shall maintain a current and complete membership record
             861      showing:
             862          (i) the date of application of each proposed member;
             863          (ii) each member's address;
             864          (iii) the date the governing body approved a member's admission;


             865          (iv) the date initiation fees and dues were assessed and paid; and
             866          (v) the serial number of the membership card issued to each member.
             867          (b) A current record shall also be kept indicating when members are dropped or
             868      resigned.
             869          (4) (a) Each private club shall establish in the club bylaws or house rules application
             870      fees and membership dues:
             871          (i) as established by commission rules; and
             872          (ii) which are collected from all members.
             873          (b) An application fee:
             874          (i) shall not be less than $4;
             875          (ii) shall be paid when the applicant applies for membership; and
             876          (iii) at the discretion of the private club, may be credited toward membership dues if
             877      the governing body approves the applicant as a member.
             878          (5) (a) Each private club may, in its discretion, allow an individual to be admitted to or
             879      use the club premises as a guest only under the following conditions:
             880          (i) each guest must be previously authorized by one of the following who agrees to host
             881      the guest into the club:
             882          (A) an active member of the club; or
             883          (B) a holder of a current visitor card;
             884          (ii) each guest must be known by the guest's host based on a preexisting bonafide
             885      business or personal relationship with the host prior to the guest's admittance to the club;
             886          (iii) each guest must be accompanied by the guest's host for the duration of the guest's
             887      visit to the club;
             888          (iv) each guest's host must remain on the club premises for the duration of the guest's
             889      visit to the club;
             890          (v) each guest's host is responsible for the cost of all services extended to the guest;
             891          (vi) each guest enjoys only those privileges derived from the guest's host for the
             892      duration of the guest's visit to the club;
             893          (vii) an employee of the club, while on duty, may not act as a host for a guest;
             894          (viii) an employee of the club, while on duty, may not attempt to locate a member or
             895      current visitor card holder to serve as a host for a guest with whom the member or visitor card


             896      holder has no acquaintance based on a preexisting bonafide business or personal relationship
             897      prior to the guest's arrival at the club; and
             898          (ix) a club and its employees may not enter into an agreement or arrangement with a
             899      club member or holder of a current visitor card to indiscriminately host members of the general
             900      public into the club as guests.
             901          (b) Notwithstanding Subsection (5)(a), previous authorization is not required if:
             902          (i) the licensee is a class B private club; and
             903          (ii) the guest is a member of the same fraternal organization as the private club
             904      licensee.
             905          (6) Each private club may, in its discretion, issue visitor cards to allow individuals to
             906      enter and use the club premises on a temporary basis under the following conditions:
             907          (a) each visitor card shall be issued for a period not to exceed three weeks;
             908          (b) a fee of not less than $4 shall be assessed for each visitor card issued;
             909          (c) a visitor card shall not be issued to a minor;
             910          (d) a holder of a visitor card may not host more than seven guests at one time;
             911          (e) each visitor card issued shall include:
             912          (i) the visitor's full name and signature;
             913          (ii) the date the card was issued;
             914          (iii) the date the card expires;
             915          (iv) the club's name; and
             916          (v) the serial number of the card; and
             917          (f) (i) the club shall maintain a current record of the issuance of each visitor card on the
             918      club premises; and
             919          (ii) the record described in Subsection (6)(f)(i) shall:
             920          (A) be available for inspection by the department; and
             921          (B) include:
             922          (I) the name of the person to whom the card was issued;
             923          (II) the date the card was issued;
             924          (III) the date the card expires; and
             925          (IV) the serial number of the card.
             926          (7) A private club may not sell alcoholic beverages to or allow any patron to be


             927      admitted to or use the club premises other than:
             928          (a) a member;
             929          (b) a visitor who holds a valid visitor card issued under Subsection (6); or
             930          (c) a guest of:
             931          (i) a member; or
             932          (ii) a holder of a current visitor card.
             933          (8) (a) A minor may not be:
             934          (i) a member, officer, director, or trustee of a private club;
             935          (ii) issued a visitor card;
             936          (iii) admitted into, use, or be on the premises of any lounge or bar area, as defined by
             937      commission rule, of any private club except to the extent authorized under Subsection
             938      (8)(c)(ii);
             939          (iv) admitted into, use, or be on the premises of any class D private club:
             940          (A) that operates as a sexually oriented business as defined by local ordinance; or
             941          (B) when a sexually oriented entertainer is performing on the premises; or
             942          (v) admitted into, use, or be on the premises of a class D private club except to the
             943      extent authorized under Subsections (8)(b) through (g).
             944          (b) Except as provided in Subsection (8)(a)(iv), at the discretion of a class D private
             945      club, a minor may be admitted into, use, or be on the premises of a class D private club under
             946      the following circumstances:
             947          (i) during periods when no alcoholic beverages are sold, served, otherwise furnished,
             948      or consumed on the premises, but in no event later than 1 p.m.;
             949          (ii) when accompanied at all times by a member or holder of a current visitor card who
             950      is the minor's parent, legal guardian, or spouse; and
             951          (iii) the private club has a full kitchen and is licensed by the local jurisdiction as a food
             952      service provider.
             953          (c) A minor may be employed by a class D private club on the premises of the club if:
             954          (i) the parent or legal guardian of the minor owns or operates the class D private club;
             955      or
             956          (ii) the minor performs maintenance and cleaning services during the hours when the
             957      club is not open for business.


             958          (d) (i) Subject to Subsection (8)(d)(ii), a minor who is at least 18 years of age may be
             959      admitted into, use, or be on the premises of a dance or concert hall if:
             960          (A) the dance or concert hall is located:
             961          (I) on the premises of a class D private club; or
             962          (II) on the property that immediately adjoins the premises of and is operated by a class
             963      D private club; and
             964          (B) the commission has issued the class D private club a permit to operate a minor
             965      dance or concert hall based on the criteria described in Subsection (8)(d)(iii).
             966          (ii) If the dance or concert hall is located on the premises of a class D private club, a
             967      minor must be properly hosted in accordance with Subsection (5) by:
             968          (A) a member; or
             969          (B) a holder of a current visitor card.
             970          (iii) The commission may issue a minor dance or concert hall permit if:
             971          (A) the club's lounge, bar, and alcoholic beverage consumption area is:
             972          (I) not accessible to minors;
             973          (II) clearly defined; and
             974          (III) separated from the dance or concert hall area by walls, multiple floor levels, or
             975      other substantial physical barriers;
             976          (B) any bar or dispensing area is not visible to minors;
             977          (C) no consumption of alcoholic beverages may occur in:
             978          (I) the dance or concert hall area; or
             979          (II) any area of the club accessible to a minor;
             980          (D) the club maintains sufficient security personnel to prevent the passing of beverages
             981      from the club's lounge, bar, or alcoholic beverage consumption areas to:
             982          (I) the dance or concert hall area; or
             983          (II) any area of the club accessible to a minor;
             984          (E) there are separate entrances, exits, and restroom facilities from the club's lounge,
             985      bar, and alcoholic beverage consumption areas than for:
             986          (I) the dance or concert hall area; or
             987          (II) any area accessible to a minor; and
             988          (F) the club complies with any other restrictions imposed by the commission by rule.


             989          (e) A minor under 18 years of age who is accompanied at all times by a parent or legal
             990      guardian who is a member or holder of a current visitor card may be admitted into, use, or be
             991      on the premises of a concert hall described in Subsection (8)(d)(i) if:
             992          (i) all requirements of Subsection (8)(d) are met; and
             993          (ii) all signage, product, and dispensing equipment containing recognition of alcoholic
             994      beverages is not visible to the minor.
             995          (f) A minor under 18 years of age but who is 14 years of age or older who is not
             996      accompanied by a parent or legal guardian may be admitted into, use, or be on the premises of
             997      a concert hall described in Subsection (8)(d)(i) if:
             998          (i) all requirements of Subsections (8)(d) and (8)(e)(ii) are met; and
             999          (ii) there is no alcoholic beverage, sales, service, or consumption on the premises of the
             1000      class D private club.
             1001          (g) The commission may suspend or revoke a minor dance or concert permit issued to
             1002      a class D private club and suspend or revoke the license of the class D private club if:
             1003          (i) the club fails to comply with the restrictions in Subsection (8)(d), (e), or (f);
             1004          (ii) the club sells, serves, or otherwise furnishes alcoholic beverages to a minor;
             1005          (iii) the licensee or a supervisory or managerial level employee of the private club is
             1006      convicted under Title 58, Chapter 37, Utah Controlled Substances Act, on the basis of activities
             1007      that occurred on:
             1008          (A) the licensed premises; or
             1009          (B) the dance or concert hall that is located on property that immediately adjoins the
             1010      premises of and is operated by the class D private club;
             1011          (iv) there are three or more convictions of patrons of the private club under Title 58,
             1012      Chapter 37, Utah Controlled Substances Act, based on activities that occurred on:
             1013          (A) the licensed premises; or
             1014          (B) the dance or concert hall that is located on property that immediately adjoins the
             1015      premises of and is operated by the class D private club;
             1016          (v) there is more than one conviction:
             1017          (A) of:
             1018          (I) the licensee;
             1019          (II) an employee of the licensee;


             1020          (III) an entertainer contracted by the licensee; or
             1021          (IV) a patron of the private club; and
             1022          (B) made on the basis of lewd acts or lewd entertainment prohibited by this title that
             1023      occurred on:
             1024          (I) the licensed premises; or
             1025          (II) the dance or concert hall that is located on property that immediately adjoins the
             1026      premises of and is operated by the class D private club; or
             1027          (vi) the commission finds acts or conduct contrary to the public welfare and morals
             1028      involving lewd acts or lewd entertainment prohibited by this title that occurred on:
             1029          (A) the licensed premises; or
             1030          (B) the dance or concert hall that is located on property that immediately adjoins the
             1031      premises of and is operated by the class D private club.
             1032          (h) Nothing in this Subsection (8) shall prohibit a class D private club from selling,
             1033      serving, or otherwise furnishing alcoholic beverages in a dance or concert area located on the
             1034      club premises on days and times when the club does not allow minors into those areas.
             1035          (i) Nothing in Subsections (8)(a) through (g) precludes a local authority from being
             1036      more restrictive of a minor's admittance to, use of, or presence on the premises of any private
             1037      club.
             1038          (9) (a) Each private club shall maintain an expense ledger or record showing in detail
             1039      all expenditures separated by payments for:
             1040          (i) malt or brewed beverages;
             1041          (ii) liquor;
             1042          (iii) food;
             1043          (iv) detailed payroll;
             1044          (v) entertainment;
             1045          (vi) rent;
             1046          (vii) utilities;
             1047          (viii) supplies; and
             1048          (ix) all other expenditures.
             1049          (b) The record required by this Subsection (9) shall be:
             1050          (i) kept in a form approved by the department; and


             1051          (ii) balanced each month.
             1052          (c) Each expenditure shall be supported by:
             1053          (i) delivery tickets;
             1054          (ii) invoices;
             1055          (iii) receipted bills;
             1056          (iv) canceled checks;
             1057          (v) petty cash vouchers; or
             1058          (vi) other sustaining data or memoranda.
             1059          (d) All invoices and receipted bills for the current calendar or fiscal year documenting
             1060      purchases made by the club shall also be maintained.
             1061          (10) (a) Each private club shall maintain a minute book that is posted currently by the
             1062      club.
             1063          (b) The minute book required by this Subsection (10) shall contain the minutes of all
             1064      regular and special meetings of the governing body.
             1065          (c) Membership lists shall also be maintained.
             1066          (11) (a) Each private club shall maintain current copies of the club's current bylaws and
             1067      current house rules.
             1068          (b) Changes in the bylaws or house rules:
             1069          (i) are not effective unless submitted to the department within ten days after adoption;
             1070      and
             1071          (ii) become effective 15 days after received by the department unless rejected by the
             1072      department before the expiration of the 15-day period.
             1073          (12) Each private club shall maintain accounting and other records and documents as
             1074      the department may require.
             1075          (13) Any club or person acting for the club, who knowingly forges, falsifies, alters,
             1076      cancels, destroys, conceals, or removes the entries in any of the books of account or other
             1077      documents of the club required to be made, maintained, or preserved by this title or the rules of
             1078      the commission for the purpose of deceiving the commission or the department, or any of their
             1079      officials or employees, is subject to:
             1080          (a) the suspension or revocation of the club's license; and
             1081          (b) possible criminal prosecution under Chapter 12, Criminal Offenses.


             1082          (14) (a) Each private club shall maintain and keep all the records required by this
             1083      section and all other books, records, receipts, and disbursements maintained or used by the
             1084      licensee, as the department requires, for a minimum period of three years.
             1085          (b) All records, books, receipts, and disbursements are subject to inspection by
             1086      authorized representatives of the commission and the department.
             1087          (c) The club shall allow the department, through its auditors or examiners, to audit all
             1088      records of the club at times the department considers advisable.
             1089          (d) The department shall audit the records of the licensee at least once annually.
             1090          (15) Each private club shall own or lease premises suitable for the club's activities.
             1091          (16) (a) A private club may not maintain facilities in any manner that barricades or
             1092      conceals the club operation.
             1093          (b) Any member of the commission, authorized department personnel, or any peace
             1094      officer shall, upon presentation of credentials, be admitted immediately to the club and
             1095      permitted without hindrance or delay to inspect completely the entire club premises and all
             1096      books and records of the licensee, at any time during which the same are open for the
             1097      transaction of business to its members.
             1098          (17) Any public advertising related to a private club by the following shall clearly
             1099      identify a club as being "a private club for members":
             1100          (a) the private club;
             1101          (b) the employees or agents of the private club; or
             1102          (c) any person under a contract or agreement with the club.
             1103          (18) A private club must have food available at all times when alcoholic beverages are
             1104      sold, served, or consumed on the premises.
             1105          (19) (a) Liquor may not be purchased by a private club licensee except from state
             1106      stores or package agencies.
             1107          (b) Liquor purchased in accordance with Subsection (19)(a) may be transported by the
             1108      licensee from the place of purchase to the licensed premises.
             1109          (c) Payment for liquor shall be made in accordance with rules established by the
             1110      commission.
             1111          (20) A private club licensee may sell or provide any primary spirituous liquor only in a
             1112      quantity not to exceed one ounce per beverage dispensed through a calibrated metered


             1113      dispensing system approved by the department in accordance with commission rules adopted
             1114      under this title, except that:
             1115          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1116      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1117      restrictions:
             1118          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             1119      a primary spirituous liquor;
             1120          (ii) the secondary ingredient is not the only spirituous liquor in the beverage;
             1121          (iii) the private club licensee shall designate a location where flavorings are stored on
             1122      the floor plan provided to the department; and
             1123          (iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
             1124          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1125      system if used:
             1126          (i) as a flavoring on desserts; and
             1127          (ii) in the preparation of flaming food dishes, drinks, and desserts; and
             1128          (c) each club patron may have no more than 2.75 ounces of spirituous liquor at a time
             1129      before the patron.
             1130          (21) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             1131      exceed five ounces per glass or individual portion.
             1132          (ii) An individual portion may be served to a patron in more than one glass as long as
             1133      the total amount of wine does not exceed five ounces.
             1134          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1135      Subsection (25)(c).
             1136          (b) (i) Wine may be sold and served in containers not exceeding 1.5 liters at prices
             1137      fixed by the commission to tables of four or more persons.
             1138          (ii) Wine may be sold and served in containers not exceeding 750 milliliters at prices
             1139      fixed by the commission to tables of less than four persons.
             1140          (c) A wine service may be performed and a service charge assessed by the private club
             1141      as authorized by commission rule for wine purchased at the private club.
             1142          (22) (a) Heavy beer may be served in original containers not exceeding one liter at
             1143      prices fixed by the commission.


             1144          (b) A service charge may be assessed by the private club for heavy beer purchased at
             1145      the private club.
             1146          (23) (a) (i) Subject to Subsection (23)(a)(ii), a private club licensed to sell liquor may
             1147      sell beer for on-premise consumption:
             1148          (A) in an open container; and
             1149          (B) on draft.
             1150          (ii) Beer sold pursuant to Subsection (23)(a)(i) shall be in a size of container that does
             1151      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1152      container that exceeds one liter.
             1153          (b) (i) A private club licensed under this chapter that sells beer pursuant to Subsection
             1154      (23)(a):
             1155          (A) may do so without obtaining a separate on-premise beer retailer license from the
             1156      commission; and
             1157          (B) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1158      Retailer Licenses, that apply to on-premise beer retailers except when those restrictions are
             1159      inconsistent with or less restrictive than the operational restrictions under this chapter.
             1160          (ii) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1161      Licenses, required by Subsection (23)(b)(i) may result in a suspension or revocation of the
             1162      private club's:
             1163          (A) state liquor license; and
             1164          (B) alcoholic beverage license issued by the local authority.
             1165          (24) Alcoholic beverages may not be stored, served, or sold in any place other than as
             1166      designated in the licensee's application, unless the licensee first applies for and receives
             1167      approval from the department for a change of location within the private club.
             1168          (25) (a) A patron may only make alcoholic beverage purchases in the private club from
             1169      and be served by a person employed, designated, and trained by the licensee to sell, dispense,
             1170      and serve alcoholic beverages.
             1171          (b) Notwithstanding Subsection (25)(a), a patron who has purchased bottled wine from
             1172      an employee of the private club or has carried bottled wine onto the premises of the private
             1173      club pursuant to Subsection (31) may thereafter serve wine from the bottle to the patron or
             1174      others at the patron's table.


             1175          (c) Each club patron may have no more than two alcoholic beverages of any kind at a
             1176      time before the patron.
             1177          (26) The liquor storage area shall remain locked at all times other than those hours and
             1178      days when liquor sales and service are authorized by law.
             1179          (27) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             1180      private club [during the following days or hours: (i) until after the polls are closed on the day
             1181      of any: (A) regular general election; (B) regular primary election; or (C) statewide special
             1182      election; (ii) until after the polls are closed on the day of any municipal, local district, special
             1183      service district, or school election, but only: (A) within the boundaries of the municipality,
             1184      local district, special service district, or school district; and (B) if required by local ordinance;
             1185      and (iii)] on any [other] day after 1 a.m. [and] or before 10 a.m.
             1186          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             1187      Licenses, for on-premise beer licenses.
             1188          (c) (i) Notwithstanding Subsections (27)(a) and (b), a private club shall remain open
             1189      for one hour after the private club ceases the sale and service of alcoholic beverages during
             1190      which time a patron of the club may finish consuming:
             1191          (A) any single drink containing spirituous liquor;
             1192          (B) a single serving of wine not exceeding five ounces;
             1193          (C) a single serving of heavy beer; or
             1194          (D) a single serving of beer not exceeding 26 ounces.
             1195          (ii) A club is not required to remain open:
             1196          (A) after all patrons have vacated the premises; or
             1197          (B) during an emergency.
             1198          (d) Between the hours of 2 a.m. and 10 a.m. on any day a private club may not allow a
             1199      patron to remain on the premises to consume alcoholic beverages on the premises.
             1200          (28) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             1201          (a) minor;
             1202          (b) person actually, apparently, or obviously intoxicated;
             1203          (c) known habitual drunkard; or
             1204          (d) known interdicted person.
             1205          (29) (a) (i) Liquor may be sold only at prices fixed by the commission.


             1206          (ii) Liquor may not be sold at discount prices on any date or at any time.
             1207          (b) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             1208      to the licensee.
             1209          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1210      over consumption or intoxication.
             1211          (d) The price of a single serving of a primary spirituous liquor shall be the same
             1212      whether served as a single drink or in conjunction with another alcoholic beverage.
             1213          (e) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1214      hours of the private club's business day such as a "happy hour."
             1215          (f) The sale or service of more than one alcoholic beverage for the price of a single
             1216      alcoholic beverage is prohibited.
             1217          (g) The sale or service of an indefinite or unlimited number of alcoholic beverages
             1218      during any set period for a fixed price is prohibited.
             1219          (h) A private club licensee may not engage in a promotion involving or offering free
             1220      alcoholic beverages to patrons of the club.
             1221          (30) Alcoholic beverages may not be purchased for a patron of the private club by:
             1222          (a) the licensee; or
             1223          (b) any employee or agent of the licensee.
             1224          (31) (a) A person may not bring onto the premises of a private club licensee any
             1225      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             1226      discretion of the licensee, bottled wine onto the premises of any private club licensee for
             1227      on-premise consumption.
             1228          (b) Except bottled wine under Subsection (31)(a), a private club or its officers,
             1229      managers, employees, or agents may not allow:
             1230          (i) a person to bring onto the private club premises any alcoholic beverage for
             1231      consumption on the private club premises; or
             1232          (ii) consumption of alcoholic beverages described in Subsection (31)(b)(i) on the
             1233      premises of the private club.
             1234          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             1235      or other representative of the licensee upon entering the private club.
             1236          (d) A wine service may be performed and a service charge assessed by the private club


             1237      as authorized by commission rule for wine carried in by a patron.
             1238          (32) (a) Except as provided in Subsection (32)(b), a private club and its employees may
             1239      not permit a patron of the club to carry from the club premises an open container that:
             1240          (i) is used primarily for drinking purposes; and
             1241          (ii) contains any alcoholic beverage.
             1242          (b) A patron may remove the unconsumed contents of a bottle of wine if before
             1243      removal the bottle has been recorked or recapped.
             1244          (33) (a) A minor may not be employed by any class A, B, or C private club to sell,
             1245      dispense, or handle any alcoholic beverage.
             1246          (b) Notwithstanding Subsection (33)(a), a minor who is at least 16 years of age may be
             1247      employed by a class A or C private club to enter the sale at a cash register or other sales
             1248      recording device.
             1249          (c) Except to the extent authorized in Subsection (8)(c), a minor may not be employed
             1250      by or be on the premises of any class D private club.
             1251          (d) A minor may not be employed to work in any lounge or bar area of any class A, B,
             1252      or C private club.
             1253          (34) An employee of a private club, while on duty, may not:
             1254          (a) consume an alcoholic beverage; or
             1255          (b) be intoxicated.
             1256          (35) (a) A private club may not charge for the service or supply of glasses, ice, or
             1257      mixers unless:
             1258          (i) the charges are fixed in the house rules of the club; and
             1259          (ii) a copy of the house rules is kept on the club premises and available at all times for
             1260      examination by patrons of the club.
             1261          (b) A charge or fee made in connection with the sale, service, or consumption of liquor
             1262      may be stated in food or alcoholic beverage menus including:
             1263          (i) a set-up charge;
             1264          (ii) a service charge; or
             1265          (iii) a chilling fee.
             1266          (36) Each private club licensee shall display in a prominent place in the private club:
             1267          (a) the private club license that is issued by the department;


             1268          (b) a list of the types and brand names of liquor being served through its calibrated
             1269      metered dispensing system; and
             1270          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1271      drugs is a serious crime that is prosecuted aggressively in Utah."
             1272          (37) A private club may not on the premises of the private club:
             1273          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             1274      Chapter 10, Part 11, Gambling;
             1275          (b) have any video gaming device, as defined and proscribed in Title 76, Chapter 10,
             1276      Part 11, Gambling; or
             1277          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1278      the risking of something of value for a return or for an outcome when the return or outcome is
             1279      based upon an element of chance, excluding the playing of an amusement device that confers
             1280      only an immediate and unrecorded right of replay not exchangeable for value.
             1281          (38) (a) A private club may not close or cease operation for a period longer than 240
             1282      hours, unless:
             1283          (i) the private club licensee notifies the department in writing at least seven days before
             1284      the closing; and
             1285          (ii) the closure or cessation of operation is first approved by the department.
             1286          (b) Notwithstanding Subsection (38)(a), in the case of emergency closure, immediate
             1287      notice of closure shall be made to the department by telephone.
             1288          (c) The department may authorize a closure or cessation of operation for a period not to
             1289      exceed 60 days. The department may extend the initial period an additional 30 days upon
             1290      written request of the private club and upon a showing of good cause. A closure or cessation of
             1291      operation may not exceed a total of 90 days without commission approval.
             1292          (d) The notice required by Subsection (38)(a) shall include:
             1293          (i) the dates of closure or cessation of operation;
             1294          (ii) the reason for the closure or cessation of operation; and
             1295          (iii) the date on which the licensee will reopen or resume operation.
             1296          (e) Failure of the licensee to provide notice and to obtain department authorization
             1297      prior to closure or cessation of operation shall result in an automatic forfeiture of:
             1298          (i) the license; and


             1299          (ii) the unused portion of the license fee for the remainder of the license year effective
             1300      immediately.
             1301          (f) Failure of the licensee to reopen or resume operation by the approved date shall
             1302      result in an automatic forfeiture of:
             1303          (i) the license; and
             1304          (ii) the unused portion of the club's license fee for the remainder of the license year.
             1305          (39) A private club license may not be transferred from one location to another,
             1306      without prior written approval of the commission.
             1307          (40) (a) A private club licensee, may not sell, transfer, assign, exchange, barter, give, or
             1308      attempt in any way to dispose of the license to any other person, whether for monetary gain or
             1309      not.
             1310          (b) A private club license has no monetary value for the purpose of any type of
             1311      disposition.
             1312          Section 6. Section 32A-7-106 is amended to read:
             1313           32A-7-106. Operational restrictions.
             1314          (1) (a) Any organization granted a single event permit and any person involved in the
             1315      storage, sale, or service of alcoholic beverages at the event for which the permit is issued, shall
             1316      abide by:
             1317          (i) this title;
             1318          (ii) the rules of the commission; and
             1319          (iii) the special conditions and requirements provided in this section.
             1320          (b) Failure to comply with Subsection (1)(a):
             1321          (i) may result in:
             1322          (A) an immediate revocation of the permit;
             1323          (B) forfeiture of the surety bond; and
             1324          (C) immediate seizure of all alcoholic beverages present at the event; and
             1325          (ii) disqualifies the organization from applying for a single event permit under this
             1326      chapter, or a temporary special event beer permit under Chapter 10, Part 3, Temporary Special
             1327      Event Beer Permits, for a period of three years from the date of revocation of the permit.
             1328          (c) Any alcoholic beverages seized under this Subsection (1) shall be returned to the
             1329      organization after the event if forfeiture proceedings are not instituted under Section


             1330      32A-13-103 .
             1331          (2) Special conditions and requirements for single event permittees include the
             1332      following:
             1333          (a) (i) All persons involved in the storage, sale, or service of alcoholic beverages at the
             1334      event do so under the supervision and direction of the permittee.
             1335          (ii) All persons involved in the sale or service of alcoholic beverages at the event may
             1336      not, while on duty:
             1337          (A) consume an alcoholic beverage; or
             1338          (B) be intoxicated.
             1339          (b) (i) All liquor stored, sold, served, and consumed at the event shall be purchased by
             1340      the permittee from a state store or package agency.
             1341          (ii) All beer purchased by the permittee shall be purchased from:
             1342          (A) a licensed beer wholesaler; or
             1343          (B) a licensed beer retailer.
             1344          (iii) All alcoholic beverages are considered under the control of the permittee during
             1345      the event.
             1346          (iv) Attendees of the event may not bring any alcoholic beverages onto the premises of
             1347      the event.
             1348          (c) A permittee may not charge more than the maximum amount set forth in the permit
             1349      for any alcoholic beverage.
             1350          (d) Each permittee shall post in a prominent place in the area in which alcoholic
             1351      beverages are being sold, served, and consumed, a copy of the permit, together with a list of the
             1352      operational restrictions and requirements of single event permittees set forth in this section.
             1353          (e) Alcoholic beverages purchased for the event may not be stored, sold, served, or
             1354      consumed in any location other than that described in the application and designated on the
             1355      permit unless the permittee first applies for and receives approval from the commission for a
             1356      change of location.
             1357          (f) (i) A single event permittee may sell or provide a primary spirituous liquor only in a
             1358      quantity not to exceed one ounce per beverage except that additional spirituous liquor may be
             1359      used in a beverage if:
             1360          (A) used as a secondary flavoring ingredient;


             1361          (B) used in conjunction with the primary spirituous liquor;
             1362          (C) the secondary ingredient is not the only spirituous liquor in the beverage; and
             1363          (D) each attendee may have no more than 2.75 ounces of spirituous liquor at a time
             1364      before the attendee.
             1365          (ii) Spirituous liquor need not be dispensed through a calibrated metered dispensing
             1366      system.
             1367          (g) (i) (A) Wine may be sold and served by the glass or an individual portion that does
             1368      not exceed five ounces per glass or individual portion.
             1369          (B) An individual portion may be served to an attendee in more than one glass as long
             1370      as the total amount of wine does not exceed five ounces.
             1371          (C) An individual portion of wine is considered to be one alcoholic beverage under
             1372      Subsection (2)(p).
             1373          (ii) Wine may be sold and served in containers not exceeding 1.5 liters at prices fixed
             1374      by the commission.
             1375          (iii) A wine service may be performed and a service charge assessed by the single event
             1376      permittee as authorized by commission rule for wine purchased at the event.
             1377          (h) (i) Heavy beer may be served in original containers not exceeding one liter at prices
             1378      fixed by the commission.
             1379          (ii) A service charge may be assessed by the single event permittee as authorized by
             1380      commission rule for heavy beer purchased at the event.
             1381          (i) (i) Subject to Subsection (2)(i)(ii), beer may be sold for on-premise consumption:
             1382          (A) in an open container; and
             1383          (B) on draft.
             1384          (ii) Beer sold pursuant to Subsection (2)(i)(i) shall be in a size of container that does
             1385      not exceed two liters, except that beer may not be sold to an individual attendee in a size of
             1386      container that exceeds one liter.
             1387          (j) (i) Alcoholic beverages may not be sold, served, or consumed between the hours of
             1388      1 a.m. and 10 a.m.
             1389          (ii) This Subsection (2)(j) does not preclude a local authority from being more
             1390      restrictive with respect to the hours of sale, service, or consumption of alcoholic beverages at a
             1391      temporary single event.


             1392          [(k) Alcoholic beverages may not be sold, served, or otherwise furnished until after the
             1393      polls are closed on the day of any:]
             1394          [(i) regular general election;]
             1395          [(ii) regular primary election; or]
             1396          [(iii) statewide special election.]
             1397          [(l)] (k) Alcoholic beverages may not be sold, served, or otherwise furnished to any:
             1398          (i) minor;
             1399          (ii) person actually, apparently, or obviously intoxicated;
             1400          (iii) known habitual drunkard; or
             1401          (iv) known interdicted person.
             1402          [(m)] (l) (i) (A) Liquor may be sold only at prices fixed by the commission.
             1403          (B) Liquor may not be sold at discount prices on any date or at any time.
             1404          (ii) Alcoholic beverages may not be sold at less than the cost of the alcoholic beverage
             1405      to the permittee.
             1406          (iii) An alcoholic beverage may not be sold at a price that encourages over
             1407      consumption or intoxication.
             1408          (iv) An alcoholic beverage may not be sold at a special or reduced price for only
             1409      certain hours of the day of the permitted event.
             1410          (v) The sale or service of more than one alcoholic beverage for the price of a single
             1411      alcoholic beverage is prohibited.
             1412          (vi) The permittee may not engage in a public promotion involving or offering free
             1413      alcoholic beverages to the general public.
             1414          [(n)] (m) A single event permittee and its employees may not permit an attendee to
             1415      carry from the premises an open container that:
             1416          (i) is used primarily for drinking purposes; and
             1417          (ii) contains any alcoholic beverage.
             1418          [(o)] (n) A minor may not sell, serve, dispense, or handle any alcoholic beverage at the
             1419      event.
             1420          [(p) Each] (o) An attendee may have no more than one alcoholic beverage of any kind
             1421      at a time before the patron.
             1422          (3) The permittee shall maintain an expense and revenue ledger or record showing:


             1423          (a) expenditures made for liquor and beer, set-ups, and other ingredients and
             1424      components of alcoholic beverages; and
             1425          (b) the revenue from sale of alcoholic beverages.
             1426          (4) A single event permit may not be transferred.
             1427          (5) A single event permittee may not on the premises serviced by the single event
             1428      permittee:
             1429          (a) engage in or allow any form of gambling, as defined and proscribed in Title 76,
             1430      Chapter 10, Part 11, Gambling;
             1431          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1432      Part 11, Gambling; or
             1433          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1434      the risking of something of value for a return or for an outcome when the return or outcome is
             1435      based upon an element of chance, excluding the playing of an amusement device that confers
             1436      only an immediate and unrecorded right of replay not exchangeable for value.




Legislative Review Note
    as of 1-25-08 9:43 AM


Office of Legislative Research and General Counsel


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