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

Third Substitute S.B. 211

Senator Curtis S. Bramble proposes the following substitute bill:


             1     
ALCOHOLIC BEVERAGE CONTROL

             2     
AMENDMENTS

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Curtis S. Bramble

             6     
House Sponsor: Stephen H. Urquhart

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Alcoholic Beverage Control Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies definition provisions;
             14          .    addresses presentation of proof of age;
             15          .    enacts the Malted Beverage Act, including:
             16              .    providing for the treatment of a flavored malt beverage as a liquor;
             17              .    addressing approval of the label and packaging of a malt beverage; and
             18              .    providing transition protections;
             19          .    enacts provisions related to criminal background checks;
             20          .    addresses proximity restrictions;
             21          .    addresses markups;
             22          .    adjusts quota requirements for licenses;
             23          .    addresses the dispensing of spirituous liquor;
             24          .    addresses the amount of spirituous liquor that may be before a patron or attendee;
             25          .    prohibits conduct related to controlled substances and drug paraphernalia;


             26          .    modifies requirements related to price lists and private clubs;
             27          .    establishes requirements related to the display of beer;
             28          .    expands provisions prohibiting operation without a license or permit; and
             29          .    makes technical and conforming amendments.
             30      Monies Appropriated in this Bill:
             31          This bill appropriates:
             32          .    as an ongoing appropriation subject to future budget constraints, $1,589,100 from
             33      the Liquor Control Fund for fiscal year 2008-09 to the Division of Substance Abuse
             34      and Mental Health within the Department of Human Services.
             35      Other Special Clauses:
             36          None
             37      Utah Code Sections Affected:
             38      AMENDS:
             39          32A-1-105, as last amended by Laws of Utah 2007, Chapter 284
             40          32A-1-116, as last amended by Laws of Utah 2007, Chapter 284
             41          32A-1-119, as last amended by Laws of Utah 2007, Chapter 284
             42          32A-1-122, as last amended by Laws of Utah 2007, Chapter 284
             43          32A-1-302, as last amended by Laws of Utah 2002, Chapter 161
             44          32A-1-304, as last amended by Laws of Utah 2002, Chapter 161
             45          32A-2-101, as last amended by Laws of Utah 2003, Chapters 292 and 314
             46          32A-3-101, as last amended by Laws of Utah 2003, Chapters 292 and 314
             47          32A-3-102, as last amended by Laws of Utah 2003, Chapter 314
             48          32A-4-101, as last amended by Laws of Utah 2006, Chapter 162
             49          32A-4-102, as last amended by Laws of Utah 2007, Chapter 284
             50          32A-4-104, as renumbered and amended by Laws of Utah 1990, Chapter 23
             51          32A-4-106, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
             52          32A-4-206, as last amended by Laws of Utah 2007, Chapters 284 and 341
             53          32A-4-302, as last amended by Laws of Utah 2006, Chapter 162
             54          32A-4-303, as last amended by Laws of Utah 2007, Chapter 284
             55          32A-4-305, as enacted by Laws of Utah 2003, Chapter 314
             56          32A-4-307, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341


             57          32A-4-401, as last amended by Laws of Utah 2007, Chapter 284
             58          32A-4-402, as last amended by Laws of Utah 2007, Chapter 284
             59          32A-4-406, as last amended by Laws of Utah 2007, Chapters 284 and 341
             60          32A-5-101, as last amended by Laws of Utah 2006, Chapter 162
             61          32A-5-102, as last amended by Laws of Utah 2007, Chapter 284
             62          32A-5-104, as last amended by Laws of Utah 2003, Chapter 314
             63          32A-5-107, as last amended by Laws of Utah 2007, Chapters 284, 329, and 341
             64          32A-7-101, as last amended by Laws of Utah 2004, Chapter 268
             65          32A-7-106, as last amended by Laws of Utah 2007, Chapters 284 and 341
             66          32A-8-101, as last amended by Laws of Utah 2003, Chapter 314
             67          32A-8-401, as last amended by Laws of Utah 2004, Chapter 268
             68          32A-8-501, as last amended by Laws of Utah 2003, Chapter 314
             69          32A-8-503, as last amended by Laws of Utah 2004, Chapter 268
             70          32A-8-505, as last amended by Laws of Utah 2007, Chapter 284
             71          32A-10-101, as last amended by Laws of Utah 2007, Chapter 284
             72          32A-10-102, as last amended by Laws of Utah 2007, Chapter 284
             73          32A-10-201, as last amended by Laws of Utah 2006, Chapter 162
             74          32A-10-202, as last amended by Laws of Utah 2007, Chapter 284
             75          32A-10-204, as last amended by Laws of Utah 1991, Chapter 5
             76          32A-10-206, as last amended by Laws of Utah 2007, Chapters 284 and 341
             77          32A-10-306, as last amended by Laws of Utah 2007, Chapters 284 and 341
             78          32A-11-106, as last amended by Laws of Utah 2004, Chapter 268
             79          32A-12-212, as last amended by Laws of Utah 2005, Chapter 152
             80          32A-12-222, as last amended by Laws of Utah 2004, Chapter 268
             81          32A-12-301, as last amended by Laws of Utah 2006, Chapter 162
             82          32A-12-307, as last amended by Laws of Utah 2003, Chapter 314
             83          32A-12-603, as last amended by Laws of Utah 2004, Chapter 268
             84          53-10-102, as last amended by Laws of Utah 2000, Chapter 1
             85          76-5-113, as last amended by Laws of Utah 2004, Chapter 280
             86      ENACTS:
             87          32A-1-701, Utah Code Annotated 1953


             88          32A-1-702, Utah Code Annotated 1953
             89          32A-1-703, Utah Code Annotated 1953
             90          32A-1-704, Utah Code Annotated 1953
             91          32A-1-801, Utah Code Annotated 1953
             92          32A-1-802, Utah Code Annotated 1953
             93          32A-1-803, Utah Code Annotated 1953
             94          32A-1-804, Utah Code Annotated 1953
             95          32A-1-805, Utah Code Annotated 1953
             96          32A-1-806, Utah Code Annotated 1953
             97          32A-1-807, Utah Code Annotated 1953
             98          32A-1-808, Utah Code Annotated 1953
             99          32A-1-809, Utah Code Annotated 1953
             100     
             101      Be it enacted by the Legislature of the state of Utah:
             102          Section 1. Section 32A-1-105 is amended to read:
             103           32A-1-105. Definitions.
             104          As used in this title:
             105          (1) "Airport lounge" means a place of business licensed to sell an alcoholic [beverages]
             106      beverage, at retail, for consumption on its premises located at an international airport with a
             107      United States Customs office on the premises of the international airport.
             108          (2) "Alcoholic [beverages" means "beer" and "liquor"] beverage" means the following
             109      as the [terms are] term is defined in this section[.]:
             110          (a) beer;
             111          (b) flavored malt beverage; and
             112          (c) liquor, which on or after October 1, 2008, includes a flavored malt beverage.
             113          (3) (a) "Alcoholic [products] product" means [all products] a product that:
             114          [(i) contain:]
             115          [(A)] (i) contains at least [63/100 of 1%] .5% of alcohol by volume; [or] and
             116          [(B) at least 1/2 of 1% by weight; and]
             117          (ii) [are] is obtained by fermentation, infusion, decoction, brewing, distillation, or [any]
             118      other process that uses [any] liquid or combinations of liquids, whether drinkable or not, to


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


             150          (D) stout;
             151          (E) lager; or
             152          (F) a malt or malted beverage.
             153          (d) On or after October 1, 2008, "beer" does not include a flavored malt beverage.
             154          (6) (a) "Beer retailer" means a business that is:
             155          (i) engaged, primarily or incidentally, in the retail sale of beer to [patrons] a patron,
             156      whether for consumption on or off the business premises; and
             157          (ii) licensed to sell beer by:
             158          (A) the commission;
             159          (B) a local authority; or
             160          (C) both the commission and a local authority.
             161          (b) (i) "Off-premise beer retailer" means a business that is engaged in the retail sale of
             162      beer to [patrons] a patron for consumption off the beer retailer's premises.
             163          (ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
             164          (c) "On-premise beer retailer" means a business that is engaged in the sale of beer to
             165      [patrons] a patron for consumption on the beer retailer's premises, regardless of whether the
             166      business sells beer for consumption off the beer retailer's premises.
             167          (7) "Billboard" means [any] a public display used to advertise including:
             168          (a) a light device;
             169          (b) a painting;
             170          (c) a drawing;
             171          (d) a poster;
             172          (e) a sign;
             173          (f) a signboard; or
             174          (g) a scoreboard.
             175          (8) "Brewer" means [any] a person engaged in manufacturing:
             176          (a) beer[.];
             177          (b) heavy beer; or
             178          (c) a flavored malt beverage.
             179          (9) "Cash bar" means the service of an alcoholic [beverages] beverage:
             180          (a) at:


             181          (i) a banquet; or
             182          (ii) a temporary event for which a permit is issued under this title; and
             183          (b) if an attendee at the banquet or temporary event is charged for the alcoholic
             184      beverage.
             185          (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
             186      a bus company to a group of persons pursuant to a common purpose:
             187          (a) under a single contract;
             188          (b) at a fixed charge in accordance with the bus company's tariff; and
             189          (c) for the purpose of giving the group of persons the exclusive use of the passenger
             190      bus, coach, or other motor vehicle and a driver to travel together to [a] one or more specified
             191      [destination or] destinations.
             192          (11) "Church" means a building:
             193          (a) set apart for the purpose of worship;
             194          (b) in which religious services are held;
             195          (c) with which clergy is associated; and
             196          (d) which is tax exempt under the laws of this state.
             197          (12) "Club" and "private club" means any of the following organized primarily for the
             198      benefit of its members:
             199          (a) a social club;
             200          (b) a recreational association;
             201          (c) a fraternal association;
             202          (d) an athletic association; or
             203          (e) a kindred association.
             204          (13) "Commission" means the Alcoholic Beverage Control Commission.
             205          (14) "Community location" means:
             206          (a) a public or private school;
             207          (b) a church;
             208          (c) a public library;
             209          (d) a public playground; or
             210          (e) a public park.
             211          (15) "Community location governing authority" means:


             212          (a) the governing body of the community location; or
             213          (b) if the commission does not know who is the governing body of a community
             214      location, a person who appears to the commission to have been given on behalf of the
             215      community location authority to prohibit an activity at the community location.
             216          [(14)] (16) "Department" means the Department of Alcoholic Beverage Control.
             217          (17) "Director," unless the context requires otherwise, means the director appointed
             218      under Section 32A-1-108 .
             219          [(15)] (18) "Distressed merchandise" means [any] an alcoholic beverage in the
             220      possession of the department that is saleable, but for some reason is unappealing to the public.
             221          (19) "Flavored malt beverage" means a beverage:
             222          (a) that contains at least .5% alcohol by volume;
             223          (b) that is treated by processing, filtration, or another method of manufacture that is not
             224      generally recognized as a traditional process in the production of a beer as described in 27
             225      C.F.R. Sec. 25.55;
             226          (c) to which is added a flavor or other ingredient containing alcohol, except for a hop
             227      extract; and
             228          (d) (i) for which the producer is required to file a formula for approval with the United
             229      States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec. 25.55; or
             230          (ii) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
             231          [(16)] (20) "Guest" means a person accompanied by an active member or visitor of a
             232      club who enjoys only those privileges derived from the host for the duration of the visit to the
             233      club.
             234          [(17)] (21) (a) "Heavy beer" means [any] a product that:
             235          (i) contains more than 4% alcohol by volume; and
             236          (ii) is obtained by fermentation, infusion, or decoction of [any] malted grain.
             237          (b) "Heavy beer" is considered "liquor" for the purposes of this title.
             238          [(18)] (22) "Hosted bar" means the service of an alcoholic [beverages] beverage:
             239          (a) without charge; and
             240          (b) at a:
             241          (i) banquet; or
             242          (ii) privately hosted event.


             243          [(19)] (23) "Identification card" means [the] an identification card issued under Title
             244      53, Chapter 3, Part 8, Identification Card Act.
             245          [(20)] (24) "Interdicted person" means a person to whom the sale, gift, or provision of
             246      an alcoholic beverage is prohibited by:
             247          (a) law; or
             248          (b) court order.
             249          [(21)] (25) "Intoxicated" means that to a degree that is unlawful under Section
             250      76-9-701 a person is under the influence of:
             251          (a) an alcoholic beverage;
             252          (b) a controlled substance;
             253          (c) a substance having the property of releasing toxic vapors; or
             254          (d) a combination of Subsections [(21)] (25)(a) through (c).
             255          [(22)] (26) "Licensee" means [any] a person issued a license by the commission to sell,
             256      manufacture, store, or allow consumption of an alcoholic [beverages] beverage on premises
             257      owned or controlled by the person.
             258          [(23)] (27) "Limousine" means [any] a motor vehicle licensed by the state or a local
             259      authority, other than a bus or taxicab:
             260          (a) in which the driver and [passengers] a passenger are separated by a partition, glass,
             261      or other barrier; and
             262          (b) that is provided by a company to [an individual or] one or more individuals at a
             263      fixed charge in accordance with the company's tariff for the purpose of giving the [individual
             264      or] one or more individuals the exclusive use of the limousine and a driver to travel to [a] one
             265      or more specified [destination or] destinations.
             266          [(24)] (28) (a) (i) "Liquor" means alcohol, or [any] an alcoholic, spirituous, vinous,
             267      fermented, malt, or other liquid, or combination of liquids, a part of which is spirituous,
             268      vinous, or fermented, [and all other drinks] or other drink, or drinkable [liquids] liquid that
             269      [contain more than 1/2 of 1% of]:
             270          (A) contains at least .5% alcohol by volume; and
             271          (B) is suitable to use for beverage purposes.
             272          (ii) On or after October 1, 2008, "liquor" includes a flavored malt beverage.
             273          (b) "Liquor" does not include [any] a beverage defined as a beer[, malt liquor, or


             274      malted beverage that has an alcohol content of less than 4% alcohol by volume].
             275          [(25)] (29) "Local authority" means:
             276          (a) the governing body of the county if the premises are located in an unincorporated
             277      area of a county; or
             278          (b) the governing body of the city or town if the premises are located in an incorporated
             279      city or a town.
             280          [(26)] (30) "Manufacture" means to distill, brew, rectify, mix, compound, process,
             281      ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
             282      others.
             283          [(27)] (31) "Member" means a person who, after paying regular dues, has full
             284      privileges of a club under this title.
             285          [(28)] (32) (a) "Military installation" means a base, air field, camp, post, station, yard,
             286      center, or homeport facility for [any] a ship:
             287          (i) (A) under the control of the United States Department of Defense; or
             288          (B) of the National Guard;
             289          (ii) that is located within the state; and
             290          (iii) including [any] a leased facility.
             291          (b) "Military installation" does not include [any] a facility used primarily for:
             292          (i) civil works;
             293          (ii) rivers and harbors projects; or
             294          (iii) flood control projects.
             295          [(29)] (33) "Minor" means [any person] an individual under the age of 21 years.
             296          [(30)] (34) "Nude," "nudity," or "state of nudity" means:
             297          (a) the appearance of:
             298          (i) the nipple or areola of a female human breast;
             299          (ii) a human genital;
             300          (iii) a human pubic area; or
             301          (iv) a human anus; or
             302          (b) a state of dress that fails to opaquely cover:
             303          (i) the nipple or areola of a female human breast;
             304          (ii) a human genital;


             305          (iii) a human pubic area; or
             306          (iv) a human anus.
             307          [(31)] (35) "Outlet" means a location other than a state store or package agency where
             308      an alcoholic [beverages are] beverage is sold pursuant to a license issued by the commission.
             309          [(32)] (36) "Package" means any of the following containing liquor:
             310          (a) a container;
             311          (b) a bottle;
             312          (c) a vessel; or
             313          (d) other receptacle.
             314          [(33)] (37) "Package agency" means a retail liquor location operated:
             315          (a) under a contractual agreement with the department[,]; and
             316          (b) by a person:
             317          (i) other than the state[,]; and
             318          (ii) who is authorized by the commission to sell package liquor for consumption off the
             319      premises of the package agency.
             320          [(34)] (38) "Package agent" means [any] a person permitted by the commission to
             321      operate a package agency pursuant to a contractual agreement with the department to sell liquor
             322      from premises that the package agent shall provide and maintain.
             323          [(35)] (39) "Permittee" means [any] a person issued a permit by the commission to
             324      perform [acts] an act or exercise [privileges] a privilege as specifically granted in the permit.
             325          [(36)] (40) "Person" means [any] an individual, partnership, firm, corporation, limited
             326      liability company, association, business trust, or other form of business enterprise, including a
             327      receiver or trustee, and the plural as well as the singular number, unless the intent to give a
             328      more limited meaning is disclosed by the context.
             329          [(37)] (41) "Premises" means [any] a building, enclosure, room, or equipment used in
             330      connection with the sale, storage, service, manufacture, distribution, or consumption of an
             331      alcoholic [products] product, unless otherwise defined in this title or in the rules adopted by the
             332      commission.
             333          [(38)] (42) "Prescription" means a writing in legal form, signed by a physician or
             334      dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
             335          [(39)] (43) (a) "Privately hosted event" or "private social function" means a specific


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


             367      county or local government entity when the building is used by [anyone] a person, in whole or
             368      in part, for a proprietary [functions] function.
             369          [(42)] (46) "Representative" means an individual who is compensated by salary,
             370      commission, or [any] other means for representing and selling [the] an alcoholic beverage
             371      [products] product of a manufacturer, supplier, or importer of liquor[,] including:
             372          (a) wine[, or];
             373          (b) heavy beer; or
             374          (c) on or after October 1, 2008, a flavored malt beverage.
             375          [(43)] (47) "Residence" means [the] a person's principal place of abode within Utah.
             376          [(44)] (48) "Restaurant" means [any] a business establishment:
             377          (a) where a variety of foods is prepared and complete meals are served to the general
             378      public;
             379          (b) located on a premises having adequate culinary fixtures for food preparation and
             380      dining accommodations; and
             381          (c) that is engaged primarily in serving meals to the general public.
             382          [(45)] (49) "Retailer" means [any] a person engaged in the sale or distribution of an
             383      alcoholic [beverages] beverage to [the] a consumer.
             384          [(46)] (50) (a) "Sample" includes:
             385          (i) a department sample; and
             386          (ii) an industry representative sample.
             387          (b) "Department sample" means liquor[, wine, and heavy beer] that [has been] is placed
             388      in the possession of the department for testing, analysis, and sampling including:
             389          (i) wine;
             390          (ii) heavy beer; or
             391          (iii) on or after October 1, 2008, a flavored malt beverage.
             392          (c) "Industry representative sample" means liquor[, wine, and heavy beer] that [has
             393      been] is placed in the possession of the department:
             394          (i) for testing, analysis, and sampling by a local industry [representatives]
             395      representative on the premises of the department to educate the local industry [representatives]
             396      representative of the quality and characteristics of the product[.]; and
             397          (ii) including:


             398          (A) wine;
             399          (B) heavy beer; or
             400          (C) on or after October 1, 2008, a flavored malt beverage.
             401          [(47)] (51) (a) "School" means [any] a building used primarily for the general
             402      education of minors.
             403          (b) "School" does not include:
             404          (i) a nursery school;
             405          (ii) an infant day care center; or
             406          (iii) a trade or technical school.
             407          [(48)] (52) "Sell," "sale," and "to sell" means [any] a transaction, exchange, or barter
             408      whereby, for [any] consideration, an alcoholic beverage is either directly or indirectly
             409      transferred, solicited, ordered, delivered for value, or by [any] a means or under [any] a pretext
             410      is promised or obtained, whether done by a person as a principal, proprietor, or as an agent,
             411      servant, or employee, unless otherwise defined in this title or the rules made by the
             412      commission.
             413          [(49)] (53) "Seminude," "seminudity," or "state of seminudity" means a state of dress in
             414      which opaque clothing covers no more than:
             415          (a) the nipple and areola of the female human breast in a shape and color other than the
             416      natural shape and color of the nipple and areola; and
             417          (b) the human genitals, pubic area, and anus:
             418          (i) with no less than the following at its widest point:
             419          (A) four inches coverage width in the front of the human body; and
             420          (B) five inches coverage width in the back of the human body; and
             421          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
             422          [(50)] (54) "Sexually oriented entertainer" means a person who while in a state of
             423      seminudity appears at or performs:
             424          (a) for the entertainment of one or more patrons;
             425          (b) on the premises of:
             426          (i) a class D private club as defined in Subsection 32A-5-101 (3); or
             427          (ii) a tavern;
             428          (c) on behalf of or at the request of the licensee described in Subsection [(50)] (54)(b);


             429          (d) on a contractual or voluntary basis; and
             430          (e) whether or not the person is designated:
             431          (i) an employee of the licensee described in Subsection [(50)] (54)(b);
             432          (ii) an independent contractor of the licensee described in Subsection [(50)] (54)(b);
             433          (iii) an agent of the licensee described in Subsection [(50)] (54)(b); or
             434          (iv) otherwise of the licensee described in Subsection [(50)] (54)(b).
             435          [(51)] (55) "Small brewer" means a brewer who manufactures less than 60,000 barrels
             436      of beer [and], heavy beer, and flavored malt beverages per year.
             437          [(52)] (56) (a) "Spirituous liquor" means liquor that is distilled.
             438          (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
             439      U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
             440          [(53)] (57) (a) "State label" means the official label designated by the commission
             441      affixed to [all] a liquor [containers] container sold in the state.
             442          (b) "State label" includes the department identification mark and inventory control
             443      number.
             444          [(54)] (58) (a) "State store" means a facility for the sale of package liquor:
             445          (i) located on premises owned or leased by the state; and
             446          (ii) operated by state employees.
             447          (b) "State store" does not apply to [any] a:
             448          (i) licensee;
             449          (ii) permittee; or
             450          (iii) package agency.
             451          [(55)] (59) "Supplier" means [any] a person selling an alcoholic [beverages] beverage
             452      to the department.
             453          [(56)] (60) (a) "Tavern" means [any] a business establishment that is:
             454          (i) engaged primarily in the retail sale of beer to a public [patrons] patron for
             455      consumption on the establishment's premises; and
             456          (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
             457          (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
             458      revenue of the sale of food, although food need not be sold in the establishment:
             459          (i) a beer bar;


             460          (ii) a parlor;
             461          (iii) a lounge;
             462          (iv) a cabaret; or
             463          (v) a nightclub.
             464          [(57)] (61) "Temporary domicile" means the principal place of abode within Utah of a
             465      person who does not have a present intention to continue residency within Utah permanently or
             466      indefinitely.
             467          [(58)] (62) "Unsaleable liquor merchandise" means merchandise that:
             468          (a) is unsaleable because the merchandise is:
             469          (i) unlabeled;
             470          (ii) leaky;
             471          (iii) damaged;
             472          (iv) difficult to open; or
             473          (v) partly filled;
             474          (b) is in a container:
             475          (i) having faded labels or defective caps or corks;
             476          (ii) in which the contents are:
             477          (A) cloudy;
             478          (B) spoiled; or
             479          (C) chemically determined to be impure; or
             480          (iii) that contains:
             481          (A) sediment; or
             482          (B) [any] a foreign substance; or
             483          (c) is otherwise considered by the department as unfit for sale.
             484          [(59)] (63) "Visitor" means an individual that in accordance with Section 32A-5-107
             485      holds limited privileges in a private club by virtue of a visitor card.
             486          [(60)] (64) "Warehouser" means [any] a person, other than a licensed manufacturer,
             487      engaged in the importation for sale, storage, or distribution of liquor regardless of amount.
             488          [(61)] (65) (a) "Wholesaler" means [any] a person engaged in the importation for sale,
             489      or in the sale of beer in wholesale or jobbing quantities to one or more retailers[, other than a].
             490          (b) Notwithstanding Subsection (65)(a), "wholesaler" does not include a small brewer


             491      selling beer manufactured by that brewer.
             492          [(62)] (66) (a) "Wine" means [any] an alcoholic beverage obtained by the fermentation
             493      of the natural sugar content of fruits, plants, honey, or milk, or [any] other like substance,
             494      whether or not [other ingredients are] another ingredient is added.
             495          (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
             496      provided in this title.
             497          Section 2. Section 32A-1-116 is amended to read:
             498           32A-1-116. Purchase of liquor.
             499          (1) The department may not purchase or stock spirituous liquor in [containers] a
             500      container smaller than 200 milliliters except as otherwise allowed by the commission.
             501          (2) (a) Each order by the department for the purchase of spirituous liquor, wine, [or]
             502      heavy beer, or flavored malt beverage, or any cancellation by the department of an order for
             503      spirituous liquor, wine, [or] heavy beer, or flavored malt beverage:
             504          (i) shall be executed in writing by the department; and
             505          (ii) is not valid or binding unless executed in writing.
             506          (b) A copy of each order or cancellation shall be kept on file by the department for at
             507      least three years.
             508          (c) An electronic record satisfies Subsections (2)(a) and (b) pursuant to Title 46,
             509      Chapter 4, Uniform Electronic Transactions Act.
             510          Section 3. Section 32A-1-119 is amended to read:
             511           32A-1-119. Disciplinary proceedings -- Procedure.
             512          (1) (a) As used in this section and Section 32A-1-120 , "disciplinary proceeding" means
             513      an adjudicative proceeding permitted under this title:
             514          (i) against:
             515          (A) a permittee;
             516          (B) a licensee;
             517          (C) a manufacturer;
             518          (D) a supplier;
             519          (E) an importer;
             520          (F) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
             521      or


             522          (G) an officer, employee, or agent of:
             523          (I) a person listed in Subsections (1)(a)(i)(A) through (F); or
             524          (II) a package agent; and
             525          (ii) that is brought on the basis of a violation of this title.
             526          (b) As used in Subsection (4), "final adjudication" means an adjudication for which a
             527      final unappealable judgment or order has been issued.
             528          (2) (a) The following may conduct adjudicative proceedings to inquire into any matter
             529      necessary and proper for the administration of this title and rules adopted under this title:
             530          (i) the commission;
             531          (ii) a hearing examiner appointed by the commission for the purposes provided in
             532      Subsection 32A-1-107 (3);
             533          (iii) the director; and
             534          (iv) the department.
             535          (b) Except as provided in this section or Section 32A-3-106 , the following shall
             536      comply with the procedures and requirements of Title 63, Chapter 46b, Administrative
             537      Procedures Act, in adjudicative proceedings:
             538          (i) the commission;
             539          (ii) a hearing examiner appointed by the commission;
             540          (iii) the director; and
             541          (iv) the department.
             542          (c) Except where otherwise provided by law, all adjudicative proceedings before the
             543      commission or its appointed hearing examiner shall be:
             544          (i) video or audio recorded; and
             545          (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
             546      Open and Public Meetings Act.
             547          (d) [All adjudicative proceedings] An adjudicative proceeding concerning departmental
             548      personnel shall be conducted in accordance with Title 67, Chapter 19, Utah State Personnel
             549      Management Act.
             550          (e) [All hearings that are] A hearing that is informational, fact gathering, and
             551      nonadversarial in nature shall be conducted in accordance with rules, policies, and procedures
             552      promulgated by the commission, director, or department.


             553          (3) (a) A disciplinary proceeding shall be conducted under the authority of the
             554      commission, which is responsible for rendering a final decision and order on any disciplinary
             555      matter.
             556          (b) (i) Nothing in this section precludes the commission from appointing necessary
             557      officers, including hearing examiners, from within or without the department, to administer the
             558      disciplinary proceeding process.
             559          (ii) A hearing examiner appointed by the commission:
             560          (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
             561          (B) shall submit to the commission a report including:
             562          (I) findings of fact determined on the basis of a preponderance of the evidence
             563      presented at the hearing;
             564          (II) conclusions of law; and
             565          (III) recommendations.
             566          (c) Nothing in this section precludes the commission, after the commission has
             567      rendered its final decision and order, from having the director prepare, issue, and cause to be
             568      served on the parties the final written order on behalf of the commission.
             569          (4) (a) The department may initiate a disciplinary proceeding described in Subsection
             570      (4)(b) when the department receives:
             571          (i) a report from any government agency, peace officer, examiner, or investigator
             572      alleging that any person listed in Subsections (1)(a)(i)(A) through (G) has violated this title or
             573      the rules of the commission;
             574          (ii) a final adjudication of criminal liability against any person listed in Subsections
             575      (1)(a)(i)(A) through (G) based on an alleged violation of this title; or
             576          (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
             577      Liability, against any person listed in Subsections (1)(a)(i)(A) through (G) based on an alleged
             578      violation of this title.
             579          (b) The department may initiate a disciplinary proceeding if the department receives an
             580      item listed in Subsection (4)(a) to determine:
             581          (i) whether any person listed in Subsections (1)(a)(i)(A) through (G) violated this title
             582      or rules of the commission; and
             583          (ii) if a violation is found, the appropriate sanction to be imposed.


             584          (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
             585          (i) if required by law;
             586          (ii) before revoking or suspending any permit, license, or certificate of approval issued
             587      under this title; or
             588          (iii) before imposing a fine against any person listed in Subsections (1)(a)(i)(A)
             589      through (G).
             590          (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
             591      hearing after receiving proper notice is an admission of the charged violation.
             592          (c) The validity of a disciplinary proceeding is not affected by the failure of any person
             593      to attend or remain in attendance.
             594          (d) All disciplinary proceeding hearings shall be presided over by the commission or an
             595      appointed hearing examiner.
             596          (e) A disciplinary proceeding hearing may be closed only after the commission or
             597      hearing examiner makes a written finding that the public interest in an open hearing is clearly
             598      outweighed by factors enumerated in the closure order.
             599          (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding
             600      hearing may:
             601          (A) administer oaths or affirmations;
             602          (B) take evidence;
             603          (C) take depositions within or without this state; and
             604          (D) require by subpoena from any place within this state:
             605          (I) the testimony of any person at a hearing; and
             606          (II) the production of any books, records, papers, contracts, agreements, documents, or
             607      other evidence considered relevant to the inquiry.
             608          (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
             609      produce any books, papers, documents, or tangible things as required in the subpoena.
             610          (iii) Any witness subpoenaed or called to testify or produce evidence who claims a
             611      privilege against self-incrimination may not be compelled to testify, but the commission or the
             612      hearing examiner shall file a written report with the county attorney or district attorney in the
             613      jurisdiction where the privilege was claimed or where the witness resides setting forth the
             614      circumstance of the claimed privilege.


             615          (iv) (A) A person is not excused from obeying a subpoena without just cause.
             616          (B) Any district court within the judicial district in which a person alleged to be guilty
             617      of willful contempt of court or refusal to obey a subpoena is found or resides, upon application
             618      by the party issuing the subpoena, may issue an order requiring the person to:
             619          (I) appear before the issuing party; and
             620          (II) (Aa) produce documentary evidence if so ordered; or
             621          (Bb) give evidence regarding the matter in question.
             622          (C) Failure to obey an order of the court may be punished by the court as contempt.
             623          (g) (i) In all disciplinary proceeding hearings heard by a hearing examiner, the hearing
             624      examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
             625          (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
             626      recommend a penalty more severe than that initially sought by the department in the notice of
             627      agency action.
             628          (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
             629      shall be served upon the respective parties.
             630          (iv) The respondent and the department shall be given reasonable opportunity to file
             631      any written objections to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
             632      before final commission action.
             633          (h) In all cases heard by the commission, it shall issue its final decision and order in
             634      accordance with Subsection (3).
             635          (6) (a) The commission shall:
             636          (i) render a final decision and order on any disciplinary action; and
             637          (ii) cause its final order to be prepared in writing, issued, and served on all parties.
             638          (b) [Any] An order of the commission is considered final on the date the order
             639      becomes effective.
             640          (c) If the commission is satisfied that a person listed in Subsections (1)(a)(i)(A)
             641      through (G) has committed a violation of this title or the commission's rules, in accordance
             642      with Title 63, Chapter 46b, Administrative Procedures Act, the commission may:
             643          (i) suspend or revoke the permit, license, or certificate of approval;
             644          (ii) impose a fine against a person listed in Subsections (1)(a)(i)(A) through (G);
             645          (iii) assess the administrative costs of any disciplinary proceeding to the permittee, the


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


             677          (8) (a) The department may initiate a disciplinary proceeding for an alleged violation of
             678      this title or the rules of the commission against:
             679          (i) a manufacturer, supplier, or importer of alcoholic beverages; or
             680          (ii) an officer, employee, agent, or representative of a person listed in Subsection
             681      (8)(a)(i).
             682          (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
             683      commission may, in addition to other penalties prescribed by this title, order:
             684          (A) the removal of the manufacturer's, supplier's, or importer's products from the
             685      department's sales list; and
             686          (B) a suspension of the department's purchase of the products described in Subsection
             687      (8)(b)(i)(A) for a period determined by the commission.
             688          (ii) The commission may take the action described in Subsection (8)(b)(i) if:
             689          (A) any manufacturer, supplier, or importer of liquor, wine, [or] heavy beer, or a
             690      flavored malt beverage, or its officer, employee, agent, or representative violates any provision
             691      of this title; and
             692          (B) the manufacturer, supplier, or importer:
             693          (I) directly committed the violation; or
             694          (II) solicited, requested, commanded, encouraged, or intentionally aided another to
             695      engage in the violation.
             696          (9) (a) The department may initiate a disciplinary proceeding against a brewer holding
             697      a certificate of approval under Section 32A-8-101 for an alleged violation of this title or the
             698      rules of the commission.
             699          (b) If the commission makes a finding that the brewer holding a certificate of approval
             700      violates this title or rules of the commission, the commission may take any action against the
             701      brewer holding a certificate of approval that the commission could take against a licensee
             702      including:
             703          (i) suspension or revocation of the certificate of approval; and
             704          (ii) imposition of a fine.
             705          (10) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by
             706      the commission or a hearing examiner appointed by the commission shall proceed formally in
             707      accordance with Sections 63-46b-6 through 63-46b-11 in any case where:


             708          (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
             709      and welfare;
             710          (ii) the alleged violation involves:
             711          (A) selling, serving, or otherwise furnishing alcoholic products to a minor;
             712          (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
             713      Entertainment Act;
             714          (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
             715      of the respondent;
             716          (D) interfering or refusing to cooperate with:
             717          (I) an authorized official of the department or the state in the discharge of the official's
             718      duties in relation to the enforcement of this title; or
             719          (II) a peace officer in the discharge of the peace officer's duties in relation to the
             720      enforcement of this title;
             721          (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
             722          (F) unlawful importation of alcoholic products; or
             723          (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
             724      32A-12-601 (2), to any person other than the department or a military installation, except to the
             725      extent permitted by this title; or
             726          (iii) the department determines to seek in a disciplinary proceeding hearing:
             727          (A) an administrative fine exceeding $3,000;
             728          (B) a suspension of a license, permit, or certificate of approval of more than ten days;
             729      or
             730          (C) a revocation of a license, permit, or certificate of approval.
             731          (b) The commission shall make rules in accordance with Title 63, Chapter 46a, Utah
             732      Administrative Rulemaking Act, to provide a procedure to implement this Subsection (10).
             733          Section 4. Section 32A-1-122 is amended to read:
             734           32A-1-122. Liquor prices -- School lunch program.
             735          (1) For purposes of this section:
             736          (a) "Landed case cost" means:
             737          (i) the cost of the product; and
             738          (ii) inbound shipping costs incurred by the department.


             739          (b) "Landed case cost" does not include the outbound shipping cost from a warehouse
             740      of the department to a state store.
             741          (2) (a) Except as provided in Subsections (2)(b) and (c), [all] spirituous liquor and
             742      wine sold by the department within the state shall be marked up in an amount not less than
             743      86% above the landed case cost to the department.
             744          (b) [All spirituous] Spirituous liquor and wine sold by the department to a military
             745      [installations] installation in Utah shall be marked up in an amount not less than 15% above the
             746      landed case cost to the department.
             747          (c) If a wine manufacturer producing less than 20,000 gallons of wine in any calendar
             748      year, as verified by the department pursuant to federal or other verifiable production reports,
             749      first applies to the department for a reduced markup, all wine produced by the wine
             750      manufacturer and sold to the department shall be marked up by the department in an amount
             751      not less than 47% above the landed case cost to the department.
             752          (3) (a) Except as provided in Subsection (3)(b), [all] heavy beer sold by the department
             753      within the state shall be marked up in an amount not less than 64.5% above the landed case
             754      cost to the department.
             755          (b) [All heavy] Heavy beer sold by the department to a military [installations]
             756      installation in Utah shall be marked up in an amount not less than 15% above the landed case
             757      cost to the department.
             758          (4) (a) Except as provided in Subsection (4)(b), a flavored malt beverage sold by the
             759      department within the state shall be marked up in an amount not less than 86% above the
             760      landed case cost to the department.
             761          (b) A flavored malt beverage sold by the department to a military installation in Utah
             762      shall be marked up in an amount not less than 15% above the landed case cost to the
             763      department.
             764          [(4)] (5) Ten percent of the total gross revenue from sales of [spiritous] spirituous
             765      liquor, wine, [and] heavy beer, and flavored malt beverages shall be deposited by the
             766      department with the state treasurer and credited to the Uniform School Fund to be used to
             767      support the school lunch program administered by the State Board of Education under Section
             768      53A-19-201 .
             769          [(5)] (6) Nothing in this section prohibits the department from selling discontinued


             770      items at a discount.
             771          Section 5. Section 32A-1-302 is amended to read:
             772           32A-1-302. Presentation of proof of age upon request.
             773          (1) To obtain one or more of the following, a person shall present proof of age at the
             774      request of a person listed in Subsection (2):
             775          (a) an alcoholic beverage or alcoholic product; [or]
             776          (b) admittance that under this title may not be obtained by a minor to a premises where
             777      an alcoholic beverage or alcoholic product is sold or consumed; or
             778          [(b)] (c) employment that under this title may not be obtained by a minor.
             779          (2) To determine whether the person described in Subsection (1) is 21 years of age, the
             780      following may request a person described in Subsection (1) to present proof of age:
             781          (a) a person authorized by law to sell or otherwise handle an alcoholic [beverages or
             782      products] beverage or alcoholic product;
             783          (b) a peace officer;
             784          (c) a representative of the State Bureau of Investigation of the Department of Public
             785      Safety, established in Section 53-10-301 ; or
             786          (d) an authorized employee of the department.
             787          Section 6. Section 32A-1-304 is amended to read:
             788           32A-1-304. Acceptance of identification -- Evidence.
             789          (1) A person authorized by law to sell or otherwise handle an alcoholic [beverages or
             790      products] beverage or alcoholic product may accept as evidence of the legal age of the person
             791      presenting the following:
             792          (a) proof of age; or
             793          (b) if a statement of age is required under Subsection 32A-1-303 (1):
             794          (i) proof of age; and
             795          (ii) a statement of age obtained under Section 32A-1-303 .
             796          (2) A statement of age described in Section 32A-1-303 , if properly completed, signed,
             797      and filed in accordance with Section 32A-1-303 , may be offered as a defense in [any] a case
             798      where there is at issue the legality of:
             799          (a) selling or otherwise furnishing an alcoholic beverage or product to the person who
             800      signed the statement of age; [or]


             801          (b) admitting a minor to a premises where an alcoholic beverage or alcoholic product is
             802      sold or consumed; or
             803          [(b)] (c) allowing the person who signed the statement of age to be employed in any
             804      employment that under this title may not be obtained by a minor.
             805          (3) A person may not be subject to a penalty for a violation of this part if it is proved to
             806      the commission or the court hearing the matter that the person charged with the violation acted
             807      in good faith.
             808          Section 7. Section 32A-1-701 is enacted to read:
             809     
Part 7. Criminal Background Check Act

             810          32A-1-701. Title.
             811          This part is known as the "Criminal Background Check Act."
             812          Section 8. Section 32A-1-702 is enacted to read:
             813          32A-1-702. Requirement for a criminal background check.
             814          (1) The department shall require an individual listed in Subsection (2) to, in accordance
             815      with this part:
             816          (a) submit a fingerprint card in a form acceptable to the department; and
             817          (b) consent to a fingerprint criminal background check by:
             818          (i) the Utah Bureau of Criminal Identification; and
             819          (ii) the Federal Bureau of Investigation.
             820          (2) The following shall comply with Subsection (1):
             821          (a) an individual applying for employment with the department;
             822          (b) an individual applying to the commission to operate a package agency;
             823          (c) an individual applying to the commission for a license;
             824          (d) an individual who with regard to an entity that is applying to the commission to
             825      operate a package agency or for a license is:
             826          (i) a partner;
             827          (ii) a managing agent;
             828          (iii) a manager;
             829          (iv) an officer;
             830          (v) a director;
             831          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of a


             832      corporation;
             833          (vii) a member who owns at least 20% of a limited liability company; or
             834          (viii) an individual employed to act in a supervisory or managerial capacity; or
             835          (e) an individual who becomes involved in an entity listed in Subsection (2)(b) or (c) in
             836      a capacity listed in Subsection (2)(d) on or after the day on which the entity:
             837          (i) is approved to operate a package agency; or
             838          (ii) is licensed by the commission.
             839          (3) The department shall require compliance with Subsection (2)(e) as a condition of
             840      an entity's:
             841          (a) continued operation of a package agency; or
             842          (b) renewal of a license.
             843          (4) The department may require as a condition of continued employment that an
             844      employee:
             845          (a) submit a fingerprint card in a form acceptable to the department; and
             846          (b) consent to a fingerprint criminal background check by:
             847          (i) the Utah Bureau of Criminal Identification; and
             848          (ii) the Federal Bureau of Investigation.
             849          Section 9. Section 32A-1-703 is enacted to read:
             850          32A-1-703. Use of information from a criminal background check.
             851          The commission or department may use information obtained pursuant to Section
             852      32A-1-702 only for one or more of the following purposes:
             853          (1) enforcing this title;
             854          (2) determining whether or not an individual is convicted of any of the following
             855      offenses that disqualify the individual under this title from acting in a capacity described in
             856      Subsection 32A-1-702 (2):
             857          (a) a felony under federal or state law;
             858          (b) a violation of a federal law, state law, or local ordinance concerning the sale,
             859      manufacture, distribution, warehousing, adulteration, or transportation of an alcoholic
             860      beverage;
             861          (c) a crime involving moral turpitude; or
             862          (d) on two or more occasions within the previous five years, driving under the


             863      influence of alcohol, a drug, or the combined influence of alcohol and a drug;
             864          (3) determining whether or not an individual fails to accurately disclose the person's
             865      criminal history on an application or document filed with the department or commission;
             866          (4) approving or denying an application for employment with the department;
             867          (5) taking disciplinary action against an employee of the department, including
             868      possible termination of employment;
             869          (6) granting or denying an application to operate a package agency;
             870          (7) granting or denying an application for a license;
             871          (8) granting or denying the renewal of a package agency contract;
             872          (9) granting or denying the renewal of a license;
             873          (10) suspending the operation of a package agency;
             874          (11) terminating a package agency contract; or
             875          (12) suspending or revoking a license.
             876          Section 10. Section 32A-1-704 is enacted to read:
             877          32A-1-704. Criminal background check procedure.
             878          (1) (a) An individual described in Subsections 32A-1-702 (2)(b) through (e) shall
             879      provide a fingerprint card at the expense of the individual.
             880          (b) The department shall pay the expense of obtaining a fingerprint card required of:
             881          (i) an applicant for employment with the department; or
             882          (ii) an employee of the department.
             883          (2) (a) The department shall obtain information from a criminal history record
             884      maintained by the Utah Bureau of Criminal Identification pursuant to Title 53, Chapter 10, Part
             885      2, Bureau of Criminal Identification, for a purpose outlined in Section 32A-1-703 .
             886          (b) An individual described in Subsections 32A-1-702 (2)(b) through (e) shall pay to
             887      the department the expense of obtaining the criminal history record described in Subsection
             888      (2)(a).
             889          (c) The department shall pay the expense of obtaining the criminal history record
             890      required for:
             891          (i) an applicant for employment with the department; or
             892          (ii) an employee of the department.
             893          (3) (a) The department shall submit a fingerprint card obtained under Section


             894      32A-1-702 of an individual who has not resided in the state for at least two years before the day
             895      on which the fingerprint card is submitted to the Utah Bureau of Criminal Identification to be
             896      forwarded to the Federal Bureau of Investigation for a nationwide criminal history record
             897      check.
             898          (b) An individual described in Subsections 32A-1-702 (2)(b) through (e) shall pay to
             899      the department the expense of obtaining the criminal history record described in Subsection
             900      (3)(a).
             901          (c) The department shall pay the expense of obtaining the criminal history record
             902      required for:
             903          (i) an applicant for employment with the department; or
             904          (ii) an employee of the department.
             905          (4) The department shall pay the Utah Bureau of Criminal Identification the costs
             906      incurred in providing the department criminal background information.
             907          (5) (a) The commission, the department, or an official or employee of the commission
             908      or department may not disseminate a criminal history record obtained under this part to any
             909      person except for a purpose described in Section 32A-1-703 .
             910          (b) (i) Notwithstanding Subsection (5)(a), a criminal history record obtained under this
             911      part may be provided by the department to the individual who is the subject of the criminal
             912      history record.
             913          (ii) The department shall provide an individual who is the subject of a criminal history
             914      record and who requests the criminal history record an opportunity to:
             915          (A) review the criminal history record; and
             916          (B) respond to information in the criminal history record.
             917          (6) If an individual described in Subsection 32A-1-702 (2) is determined to be
             918      disqualified under Subsection 32A-1-703 (2)(b), the department shall provide the individual
             919      with:
             920          (a) notice of the reason for the disqualification; and
             921          (b) an opportunity to respond to the disqualification.
             922          (7) The department shall maintain the following in one or more separate files so that
             923      they may be accessed only for a purpose under Section 32A-1-703 :
             924          (a) a fingerprint card submitted under this part; and


             925          (b) a criminal history record received from:
             926          (i) the Utah Bureau of Criminal Identification; and
             927          (ii) the Federal Bureau of Investigation.
             928          Section 11. Section 32A-1-801 is enacted to read:
             929     
Part 8. Malted Beverages Act

             930          32A-1-801. Title.
             931          This part is known as the "Malted Beverages Act."
             932          Section 12. Section 32A-1-802 is enacted to read:
             933          32A-1-802. Definitions.
             934          As used in this part:
             935          (1) "Malted beverages" means:
             936          (a) beer;
             937          (b) a flavored malt beverage; and
             938          (c) heavy beer.
             939          (2) "Packaging" means the outer packaging that is visible to a consumer such as a
             940      carton, case, or other wrapper of a container.
             941          Section 13. Section 32A-1-803 is enacted to read:
             942          32A-1-803. Power of the commission and department to classify flavored malt
             943      beverages.
             944          (1) The commission and department shall beginning on October 1, 2008, regulate a
             945      flavored malt beverage as liquor.
             946          (2) (a) By no later than October 1, 2008, the department shall make available to the
             947      public on the Internet a list of all flavored malt beverages authorized to be sold in this state as
             948      liquor.
             949          (b) The list described in Subsection (2)(a) shall be updated at least quarterly.
             950          (3) (a) Beginning on August 1, 2008, a manufacturer shall file, under penalty of
             951      perjury, a report with the department listing each flavored malt beverage manufactured by the
             952      manufacturer that the manufacturer wants to distribute in this state on or after October 1, 2008,
             953      subject to the manufacturer holding:
             954          (i) a brewery license under Chapter 8, Part 4, Brewery Licenses; or
             955          (ii) a certificate of approval issued by the department under Subsection 32A-8-101 (4).


             956          (b) On or after October 1, 2008, a manufacturer may not distribute or sell in this state a
             957      flavored malt beverage if the manufacturer does not list the flavored malt beverage in a filing
             958      with the department in accordance with this Subsection (3) before distributing or selling the
             959      flavored malt beverage.
             960          (4) The department may require a manufacturer of a flavored malt beverage to provide
             961      the department with a copy of the following filed with the United States Alcohol and Tobacco
             962      Trade and Tax Bureau, pursuant to 27 C.F.R. Sec. 25.55:
             963          (a) a statement of process; or
             964          (b) a formula.
             965          (5) (a) A manufacturer of an alcoholic product that the department is classifying or
             966      proposes to classify as a flavored malt beverage may submit evidence to the department that its
             967      alcoholic product should not be treated as liquor under this section because the alcoholic
             968      product:
             969          (i) is obtained by fermentation, infusion, or decoction of a malted grain;
             970          (ii) is produced by processing, filtration, or another method of manufacture that is
             971      generally recognized as a traditional process in the production of beer as described in 27 C.F.R.
             972      Sec. 25.55;
             973          (iii) does not have added to it a flavor or other ingredient containing alcohol, except for
             974      a hop extract; and
             975          (iv) (A) is not one for which the producer is required to file a formula for approval with
             976      the United States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec.
             977      25.55; or
             978          (B) is exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
             979          (b) The department shall review the evidence submitted by the manufacturer under this
             980      Subsection (5).
             981          (c) The department shall make available to the public on the Internet a list of all
             982      alcoholic beverages authorized under this Subsection (5) to be sold as beer in this state.
             983          (d) A decision of the department under this Subsection (5) may be appealed to the
             984      commission.
             985          Section 14. Section 32A-1-804 is enacted to read:
             986          32A-1-804. Requirements for labeling and packaging -- Authority of the


             987      commission and department.
             988          (1) On or after October 1, 2008, a manufacturer may not distribute or sell a malted
             989      beverage:
             990          (a) unless the label and packaging of the malted beverage:
             991          (i) complies with the federal label requirements of 27 C.F.R. Parts 7, 13, and 16; and
             992          (ii) clearly gives notice to the public that the malted beverage is an alcoholic beverage;
             993      and
             994          (b) until the day on which the department in accordance with this title and rules of the
             995      commission approves the label and packaging of the malted beverage.
             996          (2) The department shall review the label and packaging of a malted beverage to ensure
             997      that the label and packaging meet the requirements of Subsection (1)(a).
             998          (3) A manufacturer may comply with the requirement of Subsection (1)(a)(ii) by
             999      including on a label and packaging for a malted beverage any of the following terms:
             1000          (a) beer;
             1001          (b) ale;
             1002          (c) porter;
             1003          (d) stout;
             1004          (e) lager;
             1005          (f) lager beer; or
             1006          (g) another class or type designation commonly applied to a malted beverage that
             1007      conveys by a recognized term that the product contains alcohol.
             1008          Section 15. Section 32A-1-805 is enacted to read:
             1009          32A-1-805. General procedure for approval.
             1010          (1) To obtain approval of the label and packaging of a malted beverage, the
             1011      manufacturer of the malted beverage shall submit an application to the department for
             1012      approval.
             1013          (2) The application described in Subsection (1) shall be on a form approved by the
             1014      department and include the following:
             1015          (a) a copy of a federal certificate of label approval from the Department of Treasury,
             1016      Tax and Trade Bureau, for each brand and label for which the manufacturer is seeking
             1017      approval;


             1018          (b) a complete set of original labels for each size of container of the malted beverage;
             1019          (c) a description of the size of the container on which a label will be placed;
             1020          (d) a description of each type of container of the malted beverage; and
             1021          (e) a description of any packaging for the malted beverage.
             1022          (3) The department may assess a reasonable fee for reviewing a label and packaging for
             1023      approval.
             1024          (4) (a) The department shall notify a manufacturer within 30 days after the day on
             1025      which the manufacturer submits an application whether the label and packaging is approved or
             1026      denied.
             1027          (b) If the department determines that an unusual circumstance requires additional time,
             1028      the department may extend the time period described in Subsection (4)(a).
             1029          (5) A manufacturer shall obtain the approval of the department of a revision of a
             1030      previously approved label and packaging before a malted beverage using the revised label and
             1031      packaging may be distributed or sold in this state.
             1032          (6) (a) The department may revoke a label and packaging previously approved upon a
             1033      finding that the label and packaging is not in compliance with this title or rules of the
             1034      commission.
             1035          (b) The department shall notify the person that applies for the approval of a label and
             1036      packaging at least five business days before the day on which a label and packaging approval is
             1037      considered revoked.
             1038          (c) After receiving notice under Subsection (6)(b), a manufacturer may present written
             1039      argument or evidence to the department on why the revocation should not occur.
             1040          (7) A manufacturer that applies for approval of a label and packaging may appeal a
             1041      denial or revocation of a label and packaging approval to the commission.
             1042          Section 16. Section 32A-1-806 is enacted to read:
             1043          32A-1-806. Special procedure for flavored malt beverages.
             1044          (1) If a flavored malt beverage is labeled or packaged in a manner that is similar to a
             1045      label or package used for a nonalcoholic beverage, beginning October 1, 2008, a manufacturer
             1046      of the flavored malt beverage may not distribute or sell the flavored malt beverage in this state
             1047      until the day on which the manufacturer receives approval of the labeling and packaging from
             1048      the department in accordance with:


             1049          (a) Sections 32A-1-804 and 32A-1-805 ; and
             1050          (b) this section.
             1051          (2) The department may not approve the labeling and packaging of a flavored malt
             1052      beverage described in Subsection (1) unless in addition to the requirements of Section
             1053      32A-1-804 the labeling and packaging complies with the following:
             1054          (a) The label on the flavored malt beverage shall bear a prominently displayed label or
             1055      a firmly affixed sticker that provides the following information:
             1056          (i) the statement:
             1057          (A) "alcoholic beverage"; or
             1058          (B) "contains alcohol"; and
             1059          (ii) the alcohol content of the flavored malt beverage.
             1060          (b) Any packaging of the flavored malt beverage shall prominently include, either
             1061      imprinted on the packaging or imprinted on a sticker firmly affixed to the packaging, the
             1062      statement:
             1063          (i) "alcoholic beverage"; or
             1064          (ii) "contains alcohol".
             1065          (c) A statement required by Subsection (2)(a) or (b) shall appear in a format required
             1066      by rule made by the commission in accordance with Title 63, Chapter 46a, Utah Administrative
             1067      Rulemaking Act.
             1068          (d) A statement of alcohol content required by Subsection (2)(a)(ii):
             1069          (i) shall state the alcohol content as a percentage of alcohol by volume or by weight;
             1070          (ii) may not use an abbreviation, but shall use the complete words "alcohol," "volume,"
             1071      or "weight"; and
             1072          (iii) shall be in a format required by rule made by the commission:
             1073          (3) The department may reject a label or packaging that appears designed to obscure
             1074      the information required by Subsection (2).
             1075          (4) To determine whether or not a flavored malt beverage is described in Subsection
             1076      (1) and subject to this section, the department may consider in addition to other factors one or
             1077      more of the following factors:
             1078          (a) whether the coloring, carbonation, and packaging of the flavored malt beverage:
             1079          (i) is similar to those of a nonalcoholic beverage or product; or


             1080          (ii) can be confused with a nonalcoholic beverage;
             1081          (b) whether the flavored malt beverage possesses a character and flavor distinctive
             1082      from a traditional malted beverage;
             1083          (c) whether the flavored malt beverage is:
             1084          (i) prepackaged;
             1085          (ii) contains high levels of caffeine and other additives; and
             1086          (iii) marketed as a beverage that is specifically designed to provide energy;
             1087          (d) whether the flavored malt beverage contains added sweetener or sugar substitutes;
             1088      or
             1089          (e) whether the flavored malt beverage contains an added fruit flavor or other flavor
             1090      that masks the taste of a traditional malted beverage.
             1091          Section 17. Section 32A-1-807 is enacted to read:
             1092          32A-1-807. Rulemaking authority.
             1093          The commission may adopt rules necessary to implement this part.
             1094          Section 18. Section 32A-1-808 is enacted to read:
             1095          32A-1-808. Disciplinary proceeding for violation.
             1096          A person who violates this part is subject to a disciplinary proceeding under Section
             1097      32A-1-119 .
             1098          Section 19. Section 32A-1-809 is enacted to read:
             1099          32A-1-809. Transition protections.
             1100          (1) Except as provided in Subsection (3), a manufacturer of a flavored malt beverage
             1101      may not be held liable under this title for distributing or selling a flavored malt beverage as a
             1102      beer if:
             1103          (a) the flavored malt beverage is distributed or sold on or before September 30, 2008;
             1104      and
             1105          (b) the manufacturer when distributing or selling the flavored malt beverage complies
             1106      with the requirements of this title for distributing or selling a beer including holding:
             1107          (i) a brewery license under Chapter 8, Part 4, Brewery Licenses; or
             1108          (ii) a certificate of approval issued by the department under Subsection 32A-8-101 (4).
             1109          (2) Except as provided in Subsection (3), a licensee or permittee may not be held liable
             1110      for the sale, offering, or furnishing of a flavored malt beverage as a beer if:


             1111          (a) the flavored malt beverage is sold, offered, or furnished on or before September 30,
             1112      2008; and
             1113          (b) the licensee or permittee when selling, offering, or furnishing the flavored malt
             1114      beverage complies with the requirements of this title for selling, offering, or furnishing a beer
             1115      under the license or permit held by the licensee or permittee.
             1116          (3) This section does not apply to liability under Chapter 14a, Alcoholic Beverage
             1117      Liability.
             1118          Section 20. Section 32A-2-101 is amended to read:
             1119           32A-2-101. Commission's power to establish state stores -- Limitations.
             1120          (1) (a) The commission may establish state stores in numbers and at places, owned or
             1121      leased by the department, [it] the commission considers proper for the sale of liquor, by
             1122      employees of the state, in accordance with this title and the rules made under this title.
             1123          (b) [Employees of state stores are] An employee of a state store is considered
             1124      [employees] an employee of the department and shall meet all qualification requirements for
             1125      employment [outlined] in Section 32A-1-111 .
             1126          (2) (a) The total number of state stores may not at any time aggregate more than that
             1127      number determined by dividing the population of the state by 48,000.
             1128          (b) For purposes of this Subsection (2), population shall be determined by:
             1129          (i) the most recent United States decennial or special census; or
             1130          (ii) [any other] another population determination made by the United States or state
             1131      governments.
             1132          (3) (a) [A] Except as provided in Subsection (3)(b) or (c), a state store may not be
             1133      established:
             1134          (i) within 600 feet of [any public or private school, church, public library, public
             1135      playground, or park] a community location, as measured by the method in Subsection [(4).]
             1136      (3)(d); or
             1137          [(b) A state store may not be established]
             1138          (ii) within 200 feet of [any public or private school, church, public library, public
             1139      playground, or park] a community location, measured in a straight line from the nearest
             1140      entrance of the proposed state store to the nearest property boundary of the [public or private
             1141      school, church, public library, public playground, or park] community location.


             1142          [(c) The restrictions contained in Subsections (3)(a) and (b) govern unless one of the
             1143      following exceptions applies:]
             1144          [(i) with] (b) With respect to the establishment of a state store [within a city of the
             1145      third, fourth, or fifth class, a town, or the unincorporated area of a county], the commission
             1146      may authorize a variance that reduces the proximity [requirements] requirement of Subsection
             1147      (3)(a)(i) [or (b)] if:
             1148          [(A)] (i) the commission finds that alternative locations for establishing a state store in
             1149      the community are limited;
             1150          [(B)] (ii) a public hearing [has been] is held in the city, town, or county, and where
             1151      practical in the neighborhood concerned; [and]
             1152          [(C)] (iii) after giving full consideration to all of the attending circumstances and the
             1153      policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
             1154      establishing the state store would not be detrimental to the public health, peace, safety, and
             1155      welfare of the community; [or] and
             1156          [(ii) with respect to the establishment of a state store in any location, the commission
             1157      may authorize a variance to reduce the proximity requirements of Subsection (3)(a) or (b) in
             1158      relation to a church:]
             1159          [(A) if the local governing body of the church in question gives its written consent to
             1160      the variance;]
             1161          [(B) following a public hearing in the county, and where practical in the neighborhood
             1162      concerned; and]
             1163          [(C) after giving full consideration to all of the attending circumstances and the
             1164      policies stated in Subsections 32A-1-104 (3) and (4).]
             1165          [(4) With respect to any public or private school, church, public library, public
             1166      playground, or park, the]
             1167          (iv) (A) the community location governing authority gives its written consent to the
             1168      variance; or
             1169          (B) when written consent is not given by the community location governing authority,
             1170      the commission finds that:
             1171          (I) there is substantial unmet public demand to consume alcohol within the geographic
             1172      boundary of the local authority in which the state store is to be located;


             1173          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1174      described in Subsection (3)(b)(iv)(B)(I) other than through the establishment of a state store;
             1175      and
             1176          (III) there is no reasonably viable alternative location within the geographic boundary
             1177      of the local authority in which the state store is to be located for establishing a state store to
             1178      satisfy the unmet demand described in Subsection (3)(b)(iv)(B)(I).
             1179          (c) With respect to the establishment of a state store, the commission may authorize a
             1180      variance that reduces the proximity requirement of Subsection (3)(a)(ii) if:
             1181          (i) the community location at issue is:
             1182          (A) a public library; or
             1183          (B) a public park;
             1184          (ii) the commission finds that alternative locations for establishing a state store in the
             1185      community are limited;
             1186          (iii) a public hearing is held in the city, town, or county, and where practical in the
             1187      neighborhood concerned;
             1188          (iv) after giving full consideration to all of the attending circumstances and the policies
             1189      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1190      state store would not be detrimental to the public health, peace, safety, and welfare of the
             1191      community; and
             1192          (v) (A) the community location governing authority gives its written consent to the
             1193      variance; or
             1194          (B) when written consent is not given by the community location governing authority,
             1195      the commission finds that:
             1196          (I) there is substantial unmet public demand to consume alcohol within the geographic
             1197      boundary of the local authority in which the state store is to be located;
             1198          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1199      described in Subsection (3)(c)(v)(B)(I) other than through the establishment of a state store;
             1200      and
             1201          (III) there is no reasonably viable alternative location within the geographic boundary
             1202      of the local authority in which the state store is to be located for establishing a state store to
             1203      satisfy the unmet demand described in Subsection (3)(c)(v)(B)(I).


             1204          (d) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
             1205      nearest entrance of the state store by following the shortest route of ordinary pedestrian travel
             1206      to the property boundary of the [public or private school, church, public library, public
             1207      playground, school playground, or park] community location.
             1208          [(5)] (4) (a) Nothing in this section prevents the commission from considering the
             1209      proximity of any educational, religious, and recreational facility, or any other relevant factor in
             1210      reaching a decision on a proposed location.
             1211          (b) For purposes of this Subsection [(5)] (4), "educational facility" includes:
             1212          (i) a nursery school;
             1213          (ii) an infant day care center; and
             1214          (iii) a trade and technical school.
             1215          Section 21. Section 32A-3-101 is amended to read:
             1216           32A-3-101. Commission's power to establish package agencies -- Limitations.
             1217          (1) (a) The commission may, when [considered] it considers necessary, create a
             1218      package [agencies] agency by entering into a contractual [relationships with persons]
             1219      relationship with a person to sell liquor in sealed packages from premises other than those
             1220      owned or leased by the state.
             1221          (b) The commission shall authorize a person to operate a package agency by issuing a
             1222      certificate from the commission that designates the person in charge of the agency as a
             1223      "package agent" as defined under Section 32A-1-105 .
             1224          (2) (a) Subject to this Subsection (2), the total number of package agencies may not at
             1225      any time aggregate more than that number determined by dividing the population of the state
             1226      by 18,000.
             1227          (b) For purposes of Subsection (2)(a), population shall be determined by:
             1228          (i) the most recent United States decennial or special census; or
             1229          (ii) [any other] another population determination made by the United States or state
             1230      governments.
             1231          (c) (i) The commission may establish seasonal package agencies established in areas
             1232      the commission considers necessary.
             1233          (ii) A seasonal package agency shall be for a period of six consecutive months.
             1234          (iii) A package agency established for operation during a summer time period is known


             1235      as a "Seasonal A" package agency. The period of operation for a "Seasonal A" agency shall:
             1236          (A) begin on May 1; and
             1237          (B) end on October 31.
             1238          (iv) A package agency established for operation during a winter time period is known as
             1239      a "Seasonal B" package agency. The period of operation for a "Seasonal B" agency shall:
             1240          (A) begin on November 1; and
             1241          (B) end on April 30.
             1242          (v) In determining the number of package agencies that the commission may establish
             1243      under this section:
             1244          (A) a seasonal package agency is counted as 1/2 of one package agency; and
             1245          (B) each "Seasonal A" agency shall be paired with a "Seasonal B" agency.
             1246          (d) (i) If the location, design, and construction of a hotel may require more than one
             1247      package agency sales location to serve the public convenience, the commission may authorize a
             1248      single package agent to sell liquor at as many as three locations within the hotel under one
             1249      package agency if:
             1250          (A) the hotel has a minimum of 150 guest rooms; and
             1251          (B) all locations under the agency are:
             1252          (I) within the same hotel facility; and
             1253          (II) on premises that are managed or operated and owned or leased by the package
             1254      agent.
             1255          (ii) [Facilities] A facility other than [hotels] a hotel may not have more than one sales
             1256      location under a single package agency.
             1257          (3) (a) [As measured by the method in Subsection (4), the] Except as provided in
             1258      Subsection (3)(b), (c), or (d), the premises of a package agency may not be established:
             1259          (i) within 600 feet of [any public or private school, church, public library, public
             1260      playground, or park.] a community location, as measured by the method described in
             1261      Subsection (3)(e); or
             1262          [(b) The premises of a package agency may not be established]
             1263          (ii) within 200 feet of [any public or private school, church, public library, public
             1264      playground, or park] a community location, measured in a straight line from the nearest
             1265      entrance of the proposed package agency to the nearest property boundary of the [public or


             1266      private school, church, public library, public playground, or park] community location.
             1267          [(c) The restrictions contained in Subsections (3)(a) and (b) govern unless one of the
             1268      following exemptions applies:]
             1269          [(i) with] (b) With respect to the establishment of a package agency [within a city of
             1270      the third, fourth, or fifth class, a town, or the unincorporated area of a county], the commission
             1271      may authorize a variance to reduce the proximity [requirements] requirement of Subsection
             1272      (3)(a)(i) [or (b)] if:
             1273          [(A)] (i) the local [governing] authority [has granted] grants its written consent to the
             1274      variance;
             1275          [(B)] (ii) the commission finds that alternative locations for establishing a package
             1276      agency in the community are limited;
             1277          [(C)] (iii) a public hearing [has been] is held in the city, town, or county, and where
             1278      practical in the neighborhood concerned; [and]
             1279          [(D)] (iv) after giving full consideration to all of the attending circumstances and the
             1280      policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
             1281      establishing the package agency would not be detrimental to the public health, peace, safety,
             1282      and welfare of the community; and
             1283          [(ii) with respect to the establishment of a package agency in any location, the
             1284      commission may authorize a variance to reduce the proximity requirements of Subsection
             1285      (3)(a) or (b) in relation to a church:]
             1286          [(A) if the local governing body of the church in question gives its written consent to
             1287      the variance;]
             1288          [(B) following a public hearing in the city, town, or county and where practical in the
             1289      neighborhood concerned; and]
             1290          [(C) after giving full consideration to all of the attending circumstances and the
             1291      policies stated in Subsections 32A-1-104 (3) and (4); or]
             1292          (v) (A) the community location governing authority gives its written consent to the
             1293      variance; or
             1294          (B) when written consent is not given by the community location governing authority,
             1295      the commission finds that the applicant has established that:
             1296          (I) there is substantial unmet public demand to consume alcohol within the geographic


             1297      boundary of the local authority in which the package agency is to be located;
             1298          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1299      described in Subsection (3)(b)(v)(B)(I) other than through the establishment of a package
             1300      agency; and
             1301          (III) there is no reasonably viable alternative location within the geographic boundary
             1302      of the local authority in which the package agency is to be located for establishing a package
             1303      agency to satisfy the unmet demand described in Subsection (3)(b)(v)(B)(I).
             1304          (c) With respect to the establishment of a package agency, the commission may
             1305      authorize a variance that reduces the proximity requirement of Subsection (3)(a)(ii) if:
             1306          (i) the community location at issue is:
             1307          (A) a public library; or
             1308          (B) a public park;
             1309          (ii) the local authority grants its written consent to the variance;
             1310          (iii) the commission finds that alternative locations for establishing a package agency
             1311      in the community are limited;
             1312          (iv) a public hearing is held in the city, town, or county, and where practical in the
             1313      neighborhood concerned;
             1314          (v) after giving full consideration to all of the attending circumstances and the policies
             1315      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1316      package agency would not be detrimental to the public health, peace, safety, and welfare of the
             1317      community; and
             1318          (vi) (A) the community location governing authority gives its written consent to the
             1319      variance; or
             1320          (B) when written consent is not given by the community location governing authority,
             1321      the commission finds that the applicant has established that:
             1322          (I) there is substantial unmet public demand to consume alcohol within the geographic
             1323      boundary of the local authority in which the package agency is to be located;
             1324          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1325      described in Subsection (3)(c)(vi)(B)(I) other than through the establishment of a package
             1326      agency; and
             1327          (III) there is no reasonably viable alternative location within the geographic boundary


             1328      of the local authority in which the package agency is to be located for establishing a package
             1329      agency to satisfy the unmet demand described in Subsection (3)(c)(vi)(B)(I).
             1330          [(iii) with] (d) With respect to the premises of a package agency issued by the
             1331      commission that undergoes a change of ownership, the commission may waive or vary the
             1332      proximity requirements of Subsection (3)(a) [or (b)] in considering whether to grant a package
             1333      agency to the new owner of the premises if:
             1334          (i) (A) the premises previously received a variance reducing the proximity
             1335      [requirements] requirement of Subsection (3)(a)(i) [or (b)]; or
             1336          (B) the premises received a variance reducing the proximity requirement of Subsection
             1337      (3)(a)(ii) on or before May 4, 2008; or
             1338          [(B)] (ii) a variance from proximity [or distance] requirements was otherwise allowed
             1339      under this title.
             1340          [(4) With respect to any public or private school, church, public library, public
             1341      playground, or park, the]
             1342          (e) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
             1343      nearest entrance of the package agency by following the shortest route of ordinary pedestrian
             1344      travel to the property boundary of the [public or private school, church, public library, public
             1345      playground, school playground, or park] community location.
             1346          [(5)] (4) (a) Nothing in this section prevents the commission from considering the
             1347      proximity of any educational, religious, and recreational facility, or any other relevant factor in
             1348      reaching a decision on a proposed location.
             1349          (b) For purposes of Subsection [(5)] (4)(a), "educational facility" includes:
             1350          (i) a nursery school;
             1351          (ii) an infant day care center; and
             1352          (iii) a trade and technical school.
             1353          [(6)] (5) (a) The package agent, under the direction of the department, [shall be] is
             1354      responsible for implementing and enforcing this title and the rules adopted under this title to
             1355      the extent they relate to the conduct of the package agency and its sale of liquor.
             1356          (b) A package agent may not be, or construed to be, a state employee nor be otherwise
             1357      entitled to any benefits of employment from the state.
             1358          (c) A package agent, when selling liquor from a package agency, is considered an agent


             1359      of the state only to the extent specifically expressed in the package agency agreement.
             1360          [(7)] (6) The commission may prescribe by policy, directive, or rule, consistent with
             1361      this title, general operational requirements of all package agencies relating to:
             1362          (a) physical facilities;
             1363          (b) conditions of operation;
             1364          (c) hours of operation;
             1365          (d) inventory levels;
             1366          (e) payment schedules;
             1367          (f) methods of payment;
             1368          (g) premises security; and
             1369          (h) any other matters considered appropriate by the commission.
             1370          Section 22. Section 32A-3-102 is amended to read:
             1371           32A-3-102. Application requirements.
             1372          (1) A person seeking to operate a package agency as a package agent under this chapter
             1373      shall file a written application with the department in a form prescribed by the department.
             1374          (2) The application shall be accompanied by:
             1375          (a) a nonrefundable application fee of $100;
             1376          (b) written consent of the local authority;
             1377          (c) evidence of proximity to any [public or private school, church, public library,
             1378      public playground, or park, and if the proximity is within the 600 foot or 200 foot limitations of
             1379      Subsections 32A-3-101 (3) and (4), the application shall be processed in accordance with those
             1380      subsections] community location, with proximity requirements being governed by Section
             1381      32A-3-101 ;
             1382          (d) a bond as specified by Section 32A-3-105 ;
             1383          (e) a floor plan of the premises, including a description and highlighting of that part of
             1384      the premises in which the applicant proposes that the package agency be established;
             1385          (f) evidence that the package agency is carrying public liability insurance in an amount
             1386      and form satisfactory to the department;
             1387          (g) a signed consent form stating that the package agent will permit any authorized
             1388      representative of the commission, department, or any law enforcement officer to have
             1389      unrestricted right to enter the package agency;


             1390          (h) in the case of an applicant that is a partnership, corporation, or limited liability
             1391      company, proper verification evidencing that the person or persons signing the package agency
             1392      application are authorized to so act on behalf of the partnership, corporation, or limited liability
             1393      company; and
             1394          (i) any other information as the commission or department may direct.
             1395          Section 23. Section 32A-4-101 is amended to read:
             1396           32A-4-101. Commission's power to grant licenses -- Limitations.
             1397          (1) Before a restaurant may sell or allow the consumption of liquor on its premises, it
             1398      shall first obtain a license from the commission as provided in this part.
             1399          (2) The commission may issue restaurant liquor licenses for the purpose of establishing
             1400      restaurant liquor outlets at places and in numbers it considers proper for the storage, sale, and
             1401      consumption of liquor on premises operated as public restaurants.
             1402          (3) (a) Subject to the other provisions of this Subsection (3), the total number of
             1403      restaurant liquor licenses may not at any time aggregate more than that number determined by
             1404      dividing the population of the state by 5,200.
             1405          (b) For purposes of this Subsection (3), population shall be determined by:
             1406          (i) the most recent United States decennial or special census; or
             1407          (ii) [any other] another population determination made by the United States or state
             1408      governments.
             1409          (c) (i) The commission may issue seasonal restaurant liquor licenses established in
             1410      areas the commission considers necessary.
             1411          (ii) A seasonal restaurant liquor license shall be for a period of six consecutive months.
             1412          (iii) A restaurant liquor license issued for operation during a summer time period is
             1413      known as a "Seasonal A" restaurant liquor license. The period of operation for a "Seasonal A"
             1414      restaurant liquor license shall:
             1415          (A) begin on May 1; and
             1416          (B) end on October 31.
             1417          (iv) A restaurant liquor license issued for operation during a winter time period is
             1418      known as a "Seasonal B" restaurant liquor license. The period of operation for a "Seasonal B"
             1419      restaurant liquor license shall:
             1420          (A) begin on November 1; and


             1421          (B) end on April 30.
             1422          (v) In determining the number of restaurant liquor licenses that the commission may
             1423      issue under this section:
             1424          (A) a seasonal license is counted as 1/2 of one restaurant liquor license; and
             1425          (B) each "Seasonal A" license shall be paired with a "Seasonal B" license.
             1426          (d) (i) If the location, design, and construction of a hotel may require more than one
             1427      restaurant liquor sales location within the hotel to serve the public convenience, the
             1428      commission may authorize the sale of liquor at as many as three restaurant locations within the
             1429      hotel under one license if:
             1430          (A) the hotel has a minimum of 150 guest rooms; and
             1431          (B) all locations under the license are:
             1432          (I) within the same hotel facility; and
             1433          (II) on premises that are managed or operated and owned or leased by the licensee.
             1434          (ii) [Facilities] A facility other than [hotels] a hotel shall have a separate restaurant
             1435      liquor license for each restaurant where liquor is sold.
             1436          (4) (a) [The] Except as provided in Subsection (4)(b), (c), or (d), the premises of a
             1437      restaurant liquor license may not be established:
             1438          (i) within 600 feet of [any public or private school, church, public library, public
             1439      playground, or park,] a community location, as measured by the method in Subsection [(5).]
             1440      (4)(e);
             1441          [(b) The premises of a restaurant liquor license may not be established]
             1442          (ii) within 200 feet of [any public or private school, church, public library, public
             1443      playground, or park] a community location, measured in a straight line from the nearest
             1444      entrance of the proposed outlet to the nearest property boundary of the [public or private
             1445      school, church, public library, public playground, or park] community location.
             1446          [(c) The restrictions contained in Subsections (4)(a) and (b) govern unless one of the
             1447      following exemptions applies:]
             1448          [(i) with] (b) With respect to the establishment of a restaurant liquor license [in any
             1449      location], the commission may authorize a variance to reduce the proximity [requirements]
             1450      requirement of Subsection (4)(a)(i) [or (b)] if:
             1451          [(A)] (i) the local [governing] authority [has granted] grants its written consent to the


             1452      variance;
             1453          [(B)] (ii) the commission finds that alternative locations for establishing a restaurant
             1454      liquor license in the community are limited;
             1455          [(C)] (iii) a public hearing [has been] is held in the city, town, or county, and where
             1456      practical in the neighborhood concerned; [and]
             1457          [(D)] (iv) after giving full consideration to all of the attending circumstances and the
             1458      policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
             1459      establishing the restaurant liquor license would not be detrimental to the public health, peace,
             1460      safety, and welfare of the community; [or] and
             1461          (v) (A) the community location governing authority gives its written consent to the
             1462      variance; or
             1463          (B) when written consent is not given by the community location governing authority,
             1464      the commission finds that the applicant has established that:
             1465          (I) there is substantial unmet public demand to consume alcohol in a public setting
             1466      within the geographic boundary of the local authority in which the restaurant is to be located;
             1467          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1468      described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a restaurant
             1469      liquor license; and
             1470          (III) there is no reasonably viable alternative location within the geographic boundary
             1471      of the local authority in which the restaurant is to be located for establishing a restaurant liquor
             1472      license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
             1473          (c) With respect to the establishment of a restaurant liquor license, the commission
             1474      may authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
             1475          (i) the community location at issue is:
             1476          (A) a public library; or
             1477          (B) a public park;
             1478          (ii) the local authority grants its written consent to the variance;
             1479          (iii) the commission finds that alternative locations for establishing a restaurant liquor
             1480      license in the community are limited;
             1481          (iv) a public hearing is held in the city, town, or county, and where practical in the
             1482      neighborhood concerned;


             1483          (v) after giving full consideration to all of the attending circumstances and the policies
             1484      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1485      restaurant liquor license would not be detrimental to the public health, peace, safety, and
             1486      welfare of the community; and
             1487          (vi) (A) the community location governing authority gives its written consent to the
             1488      variance; or
             1489          (B) when written consent is not given by the community location governing authority,
             1490      the commission finds that the applicant has established that:
             1491          (I) there is substantial unmet public demand to consume alcohol in a public setting
             1492      within the geographic boundary of the local authority in which the restaurant is to be located;
             1493          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1494      described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a restaurant
             1495      liquor license; and
             1496          (III) there is no reasonably viable alternative location within the geographic boundary
             1497      of the local authority in which the restaurant is to be located for establishing a restaurant liquor
             1498      license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
             1499          [(ii) with] (d) With respect to the premises of a restaurant liquor license issued by the
             1500      commission that undergoes a change of ownership, the commission may waive or vary the
             1501      proximity requirements of Subsection (4)(a) [or (b)] in considering whether to grant a
             1502      restaurant liquor license to the new owner of the premises if:
             1503          (i) (A) the premises previously received a variance reducing the proximity
             1504      [requirements] requirement of Subsection (4)(a)(i) [or (b)]; or
             1505          (B) the premises received a variance reducing the proximity requirement of Subsection
             1506      (4)(a)(ii) on or before May 4, 2008; or
             1507          [(B)] (ii) a variance from proximity [or distance] requirements was otherwise allowed
             1508      under this title.
             1509          [(5) With respect to any public or private school, church, public library, public
             1510      playground, or park, the]
             1511          (e) The 600 foot limitation described in Subsection (4)(a)(i) is measured from the
             1512      nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
             1513      [property boundary of the public or private school, church, public library, public playground,


             1514      school playground, or park] community location.
             1515          [(6)] (5) (a) Nothing in this section prevents the commission from considering the
             1516      proximity of any educational, religious, and recreational facility, or any other relevant factor in
             1517      reaching a decision on a proposed location.
             1518          (b) For purposes of this Subsection [(6)] (5), "educational facility" includes:
             1519          (i) a nursery school;
             1520          (ii) an infant day care center; and
             1521          (iii) a trade and technical school.
             1522          Section 24. Section 32A-4-102 is amended to read:
             1523           32A-4-102. Application and renewal requirements.
             1524          (1) A person seeking a restaurant liquor license under this part shall file a written
             1525      application with the department, in a form prescribed by the department. It shall be
             1526      accompanied by:
             1527          (a) a nonrefundable $250 application fee;
             1528          (b) an initial license fee of $1,750, which is refundable if a license is not granted;
             1529          (c) written consent of the local authority;
             1530          (d) a copy of the applicant's current business license;
             1531          (e) evidence of proximity to any [public or private school, church, public library,
             1532      public playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
             1533      Subsections 32A-4-101 (4) and (5), the application shall be processed in accordance with those
             1534      subsections] community location, with proximity requirements being governed by Section
             1535      32A-4-101 ;
             1536          (f) a bond as specified by Section 32A-4-105 ;
             1537          (g) a floor plan of the restaurant, including consumption areas and the area where the
             1538      applicant proposes to keep, store, and sell liquor;
             1539          (h) evidence that the restaurant is carrying public liability insurance in an amount and
             1540      form satisfactory to the department;
             1541          (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
             1542      $500,000 per occurrence and $1,000,000 in the aggregate;
             1543          (j) a signed consent form stating that the restaurant will permit any authorized
             1544      representative of the commission, department, or any law enforcement officer unrestricted right


             1545      to enter the restaurant;
             1546          (k) in the case of an applicant that is a partnership, corporation, or limited liability
             1547      company, proper verification evidencing that the person or persons signing the restaurant
             1548      application are authorized to so act on behalf of the partnership, corporation, or limited liability
             1549      company; and
             1550          (l) any other information the commission or department may require.
             1551          (2) (a) All restaurant liquor licenses expire on October 31 of each year.
             1552          (b) [Persons] A person desiring to renew [their] the person's restaurant liquor license
             1553      shall by no later than September 30 submit:
             1554          (i) a completed renewal application to the department; and
             1555          (ii) a renewal fee in the following amount:
             1556          Gross Cost of Liquor in Previous License Year for the Licensee        Renewal Fee
             1557          under $5,000                                    $750
             1558          equals or exceeds $5,000 but less than $10,000                $900
             1559          equals or exceeds $10,000 but less than $25,000                $1,250
             1560          equals or exceeds $25,000                            $1,500
             1561          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             1562      the license effective on the date the existing license expires.
             1563          (d) [Renewal applications] A renewal application shall be in a form as prescribed by
             1564      the department.
             1565          (3) To ensure compliance with Subsection 32A-4-106 (25), the commission may
             1566      suspend or revoke [any] a restaurant liquor license if the restaurant liquor licensee does not
             1567      immediately notify the department of any change in:
             1568          (a) ownership of the restaurant;
             1569          (b) for a corporate owner, the:
             1570          (i) corporate officers or directors; or
             1571          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             1572      corporation; or
             1573          (c) for a limited liability company:
             1574          (i) managers; or
             1575          (ii) members owning at least 20% of the limited liability company.


             1576          Section 25. Section 32A-4-104 is amended to read:
             1577           32A-4-104. Commission and department duties before granting licenses.
             1578          (1) (a) Before a restaurant liquor license may be granted by the commission, the
             1579      department shall conduct an investigation and may hold public hearings for the purpose of
             1580      gathering information and making recommendations to the commission as to whether or not a
             1581      license should be granted. [This]
             1582          (b) The department shall forward the information [shall be forwarded] and
             1583      recommendations described in Subsection (1)(a) to the commission to aid in [its] the
             1584      commission's determination.
             1585          (2) Before issuing [any] a restaurant liquor license, the commission shall:
             1586          (a) determine that:
             1587          (i) the applicant has complied with all basic qualifications and requirements for making
             1588      application for a license as provided by Sections 32A-4-102 and 32A-4-103 [,]; and [that]
             1589          (ii) the application is complete;
             1590          (b) consider the locality within which the proposed restaurant liquor outlet is located,
             1591      including [but not limited to]:
             1592          (i) physical characteristics such as:
             1593          (A) condition of the premises[,];
             1594          (B) square footage[,]; and
             1595          (C) parking availability; and
             1596          (ii) operational factors such as:
             1597          (A) tourist traffic[,];
             1598          (B) proximity to and density of other state stores, package agencies, and outlets[,];
             1599          (C) demographics[,];
             1600          (D) population to be served[,]; and
             1601          (E) the extent of and proximity to any [school, church, public library, public
             1602      playground, or park] community location;
             1603          (c) consider the applicant's ability to manage and operate a restaurant liquor license,
             1604      including [but not limited to]:
             1605          (i) management experience[,];
             1606          (ii) past retail liquor experience[,]; and


             1607          (iii) the type of management scheme employed by the restaurant;
             1608          (d) consider the nature or type of restaurant operation of the proposed liquor licensee,
             1609      including [but not limited to,]:
             1610          (i) the type of menu items offered and emphasized[,];
             1611          (ii) whether the restaurant emphasizes service to an adult clientele or to minors[,];
             1612          (iii) the hours of operation[,];
             1613          (iv) the seating capacity of the facility[,]; and
             1614          (v) the gross sales of food items; and
             1615          (e) consider any other factors or circumstances [it] the commission considers
             1616      necessary.
             1617          Section 26. Section 32A-4-106 is amended to read:
             1618           32A-4-106. Operational restrictions.
             1619          [Each] A person granted a restaurant liquor license and the employees and management
             1620      personnel of the restaurant shall comply with the following conditions and requirements.
             1621      Failure to comply may result in a suspension or revocation of the restaurant liquor license or
             1622      other disciplinary action taken against individual employees or management personnel.
             1623          (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from a state
             1624      [stores] store or package [agencies] agency.
             1625          (b) Liquor purchased from a state store or package agency may be transported by the
             1626      restaurant liquor licensee from the place of purchase to the licensed premises.
             1627          (c) Payment for liquor shall be made in accordance with rules established by the
             1628      commission.
             1629          (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
             1630      a quantity not to exceed [one ounce] 1.5 ounces per beverage dispensed through a calibrated
             1631      metered dispensing system approved by the department in accordance with commission rules
             1632      adopted under this title, except that:
             1633          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1634      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1635      restrictions:
             1636          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             1637      a primary spirituous liquor;


             1638          (ii) the secondary ingredient [is] may not be the only spirituous liquor in the beverage;
             1639          (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
             1640      on the floor plan provided to the department; and
             1641          (iv) [all] a flavoring [containers] container shall be plainly and conspicuously labeled
             1642      "flavorings";
             1643          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1644      system if used:
             1645          (i) as a flavoring on [desserts] a dessert; and
             1646          (ii) in the preparation of a flaming food [dishes, drinks, and desserts] dish, drink, or
             1647      dessert;
             1648          (c) [each] a restaurant patron may have no more than [2.75] 2.5 ounces of spirituous
             1649      liquor at a time; and
             1650          (d) [each] a restaurant patron may have no more than one spirituous liquor drink at a
             1651      time before the patron.
             1652          (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
             1653      exceed five ounces per glass or individual portion.
             1654          (ii) An individual portion of wine may be served to a patron in more than one glass as
             1655      long as the total amount of wine does not exceed five ounces.
             1656          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1657      Subsection (7)(e).
             1658          (b) (i) Wine may be sold and served in [containers] a container not exceeding 1.5 liters
             1659      at [prices] a price fixed by the commission to [tables] a table of four or more persons.
             1660          (ii) Wine may be sold and served in [containers] a container not exceeding 750
             1661      milliliters at [prices] a price fixed by the commission to [tables] a table of less than four
             1662      persons.
             1663          (c) A wine service may be performed and a service charge assessed by [the] a
             1664      restaurant liquor licensee as authorized by commission rule for wine purchased at the
             1665      restaurant.
             1666          (4) (a) Heavy beer may be served in an original [containers] container not exceeding
             1667      one liter at [prices] a price fixed by the commission.
             1668          (b) A flavored malt beverage may be served in an original container not exceeding one


             1669      liter at a price fixed by the commission.
             1670          [(b)] (c) A service charge may be assessed by [the] a restaurant liquor licensee as
             1671      authorized by commission rule for heavy beer or a flavored malt beverage purchased at the
             1672      restaurant.
             1673          (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant [licensed to sell] liquor licensee
             1674      may sell beer for on-premise consumption:
             1675          (A) in an open container; and
             1676          (B) on draft.
             1677          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             1678      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1679      container that exceeds one liter.
             1680          (b) A restaurant [licensed under this chapter] liquor licensee that sells beer pursuant to
             1681      Subsection (5)(a):
             1682          (i) may do so without obtaining a separate on-premise beer retailer license from the
             1683      commission; and
             1684          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1685      Retailer Licenses, that apply to an on-premise beer [retailers] retailer except when those
             1686      restrictions are inconsistent with or less restrictive than the operational restrictions under this
             1687      part.
             1688          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1689      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             1690      restaurant's:
             1691          (i) state liquor license; and
             1692          (ii) alcoholic beverage license issued by the local authority.
             1693          (6) [Alcoholic beverages] An alcoholic beverage may not be stored, served, or sold in
             1694      [any] a place other than as designated in the restaurant liquor licensee's application, unless the
             1695      restaurant liquor licensee first applies for and receives approval from the department for a
             1696      change of location within the restaurant.
             1697          (7) (a) (i) A patron may only make an alcoholic beverage [purchases] purchase in the
             1698      restaurant from and be served by a person employed, designated, and trained by the restaurant
             1699      liquor licensee to sell and serve an alcoholic [beverages] beverage.


             1700          (ii) Notwithstanding Subsection (7)(a)(i), a patron who [has purchased] purchases
             1701      bottled wine from an employee of the restaurant or [has carried] carries bottled wine onto the
             1702      premises of the restaurant pursuant to Subsection (14) may thereafter serve wine from the
             1703      bottle to the patron or others at the patron's table.
             1704          (b) [Alcoholic beverages] An alcoholic beverage shall be delivered by a server to the
             1705      patron.
             1706          (c) [Any] An alcoholic beverage may only be consumed at the patron's table or counter.
             1707          (d) [Alcoholic beverages] An alcoholic beverage may not be served to or consumed by
             1708      a patron at a bar.
             1709          (e) [Each] A restaurant patron may have no more than two alcoholic beverages of any
             1710      kind at a time before the patron, subject to the limitation in Subsection (2)(d).
             1711          (8) The liquor storage area shall remain locked at all times other than those hours and
             1712      days when liquor sales are authorized by law.
             1713          (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             1714      restaurant of a restaurant liquor licensee during the following days or hours:
             1715          (i) until after the polls are closed on the day of [any] a:
             1716          (A) regular general election;
             1717          (B) regular primary election; or
             1718          (C) statewide special election;
             1719          (ii) until after the polls are closed on the day of [any] a municipal, local district, special
             1720      service district, or school election, but only:
             1721          (A) within the boundaries of the municipality, local district, special service district, or
             1722      school district; and
             1723          (B) if required by local ordinance; and
             1724          (iii) on any other day after 12 midnight and before 12 noon.
             1725          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             1726      Licenses, for on-premise beer licensees.
             1727          (10) [Alcoholic beverages] An alcoholic beverage may not be sold except in
             1728      connection with an order for food prepared, sold, and served at the restaurant.
             1729          (11) [Alcoholic beverages] An alcoholic beverage may not be sold, served, or
             1730      otherwise furnished to [any] a:


             1731          (a) minor;
             1732          (b) person actually, apparently, or obviously intoxicated;
             1733          (c) known habitual drunkard; or
             1734          (d) known interdicted person.
             1735          (12) (a) (i) Liquor may be sold only at [prices] a price fixed by the commission.
             1736          (ii) Liquor may not be sold at a discount [prices] price on any date or at any time.
             1737          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             1738      beverage to the restaurant liquor licensee.
             1739          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             1740      over consumption or intoxication.
             1741          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             1742      hours of [the restaurant's] a restaurant liquor licensee's business day such as a "happy hour."
             1743          (e) [The sale or service of more] More than one alcoholic beverage may not be sold or
             1744      served for the price of a single alcoholic beverage [is prohibited].
             1745          (f) [The sale or service of an] An indefinite or unlimited number of alcoholic beverages
             1746      during [any] a set period may not be sold or served for a fixed price [is prohibited].
             1747          (g) A restaurant liquor licensee may not engage in a public promotion involving or
             1748      offering free an alcoholic [beverages] beverage to the general public.
             1749          (13) [Alcoholic beverages] An alcoholic beverage may not be purchased for a patron of
             1750      a restaurant by:
             1751          (a) the restaurant liquor licensee; or
             1752          (b) [any] an employee or agent of the restaurant liquor licensee.
             1753          (14) (a) A person may not bring onto the premises of a restaurant liquor licensee [any]
             1754      an alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             1755      discretion of the restaurant liquor licensee, bottled wine onto the premises of [any] a restaurant
             1756      liquor licensee for on-premise consumption.
             1757          (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or [its
             1758      officers, managers, employees, or agents] an officer, manager, employee, or agent of the
             1759      restaurant liquor licensee may not allow:
             1760          (i) a person to bring onto the restaurant premises [any] an alcoholic beverage for
             1761      on-premise consumption; or


             1762          (ii) consumption of [any such] an alcoholic beverage [on its] described in this
             1763      Subsection (14) on the restaurant liquor licensee's premises.
             1764          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             1765      or other representative of the restaurant liquor licensee upon entering the restaurant.
             1766          (d) A wine service may be performed and a service charge assessed by [the] a
             1767      restaurant liquor licensee as authorized by commission rule for wine carried in by a patron.
             1768          (15) (a) Except as provided in Subsection (15)(b), a restaurant liquor licensee [and its
             1769      employees] or an employee of the restaurant liquor licensee may not permit a restaurant patron
             1770      to carry from the restaurant premises an open container that:
             1771          (i) is used primarily for drinking purposes; and
             1772          (ii) contains [any] an alcoholic beverage.
             1773          (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
             1774      restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
             1775      onto the premises of the restaurant in accordance with Subsection (14), [provided] only if the
             1776      bottle [has been] is recorked or recapped before removal.
             1777          (16) (a) A restaurant liquor licensee may not employ a minor [may not be employed by
             1778      a restaurant licensee] to sell or dispense an alcoholic [beverages] beverage.
             1779          (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
             1780      employed to enter the sale at a cash register or other sales recording device.
             1781          (17) An employee of a restaurant liquor licensee, while on duty, may not:
             1782          (a) consume an alcoholic beverage; or
             1783          (b) be intoxicated.
             1784          (18) [Any] A charge or fee made in connection with the sale, service, or consumption
             1785      of liquor may be stated in food or alcoholic beverage menus including:
             1786          (a) a set-up charge;
             1787          (b) a service charge; or
             1788          (c) a chilling fee.
             1789          (19) [Each] A restaurant liquor licensee shall display in a prominent place in the
             1790      restaurant:
             1791          (a) the liquor license that is issued by the department;
             1792          (b) a list of the types and brand names of liquor being served through its calibrated


             1793      metered dispensing system; and
             1794          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             1795      drugs is a serious crime that is prosecuted aggressively in Utah."
             1796          (20) A restaurant liquor licensee may not on the premises of the restaurant liquor
             1797      licensee:
             1798          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             1799      Chapter 10, Part 11, Gambling;
             1800          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1801      Part 11, Gambling; or
             1802          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1803      the risking of something of value for a return or for an outcome when the return or outcome is
             1804      based upon an element of chance, excluding the playing of an amusement device that confers
             1805      only an immediate and unrecorded right of replay not exchangeable for value.
             1806          (21) (a) [Each] A restaurant liquor licensee shall maintain an expense ledger or record
             1807      showing in detail:
             1808          (i) quarterly expenditures made separately for:
             1809          (A) malt or brewed beverages;
             1810          (B) set-ups;
             1811          (C) liquor;
             1812          (D) food; and
             1813          (E) all other items required by the department; and
             1814          (ii) sales made separately for:
             1815          (A) malt or brewed beverages;
             1816          (B) set-ups;
             1817          (C) food; and
             1818          (D) all other items required by the department.
             1819          (b) [The] A restaurant liquor licensee shall keep a record required by Subsection
             1820      (21)(a) [shall be kept]:
             1821          (i) in a form approved by the department; and
             1822          (ii) current for each three-month period.
             1823          (c) [Each] An expenditure shall be supported by:


             1824          (i) a delivery [tickets] ticket;
             1825          (ii) [invoices] an invoice;
             1826          (iii) a receipted [bills] bill;
             1827          (iv) a canceled [checks] check;
             1828          (v) a petty cash [vouchers] voucher; or
             1829          (vi) other sustaining [data or memoranda] datum or memorandum.
             1830          (d) In addition to a ledger or record required under Subsection (21)(a), a restaurant
             1831      liquor licensee shall maintain accounting and other records and documents as the department
             1832      may require.
             1833          (e) [Any] A restaurant liquor licensee or person acting for the restaurant, who
             1834      knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes [the entries in any of
             1835      the books] an entry in a book of account or other [documents] document of the restaurant that
             1836      is required to be made, maintained, or preserved by this title or the rules of the commission for
             1837      the purpose of deceiving the commission or the department, or [any of their officials or
             1838      employees] an official or employee of the commission or department, is subject to:
             1839          (i) the suspension or revocation of the restaurant's liquor license; and
             1840          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             1841          (22) (a) A restaurant liquor licensee may not close or cease operation for a period
             1842      longer than 240 hours, unless:
             1843          (i) the restaurant liquor licensee notifies the department in writing at least seven days
             1844      before the [closing] day on which the restaurant liquor licensee closes or ceases operation; and
             1845          (ii) the closure or cessation of operation is first approved by the department.
             1846          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, [immediate
             1847      notice of closure shall be made to] the restaurant liquor licensee shall immediately notify the
             1848      department by telephone.
             1849          (c) (i) The department may authorize a closure or cessation of operation for a period
             1850      not to exceed 60 days.
             1851          (ii) The department may extend the initial period an additional 30 days upon:
             1852          (A) written request of the restaurant liquor licensee; and [upon]
             1853          (B) a showing of good cause.
             1854          (iii) A closure or cessation of operation may not exceed a total of 90 days without


             1855      commission approval.
             1856          (d) [Any] A notice shall include:
             1857          (i) the dates of closure or cessation of operation;
             1858          (ii) the reason for the closure or cessation of operation; and
             1859          (iii) the date on which the restaurant liquor licensee will reopen or resume operation.
             1860          (e) Failure of the restaurant liquor licensee to provide notice and to obtain department
             1861      authorization [prior to] before closure or cessation of operation [shall result] results in an
             1862      automatic forfeiture of:
             1863          (i) the license; and
             1864          (ii) the unused portion of the license fee for the remainder of the license year effective
             1865      immediately.
             1866          (f) Failure of the restaurant liquor licensee to reopen or resume operation by the
             1867      approved date [shall result] results in an automatic forfeiture of:
             1868          (i) the license; and
             1869          (ii) the unused portion of the license fee for the remainder of the license year.
             1870          (23) [Each] A restaurant liquor licensee shall maintain at least 70% of its total
             1871      restaurant business from the sale of food, which does not include mix for an alcoholic
             1872      [beverages] beverage or service charges.
             1873          (24) A restaurant liquor license may not be transferred from one location to another,
             1874      without prior written approval of the commission.
             1875          (25) (a) A person, having been granted a restaurant liquor license may not sell, transfer,
             1876      assign, exchange, barter, give, or attempt in any way to dispose of the restaurant liquor license
             1877      to [any other] another person whether for monetary gain or not.
             1878          (b) A restaurant liquor license has no monetary value for the purpose of any type of
             1879      disposition.
             1880          (26) [Each] A server of an alcoholic [beverages] beverage in a restaurant liquor
             1881      licensee's establishment shall keep a written beverage tab for each table or group that orders or
             1882      consumes an alcoholic [beverages] beverage on the premises. The beverage tab shall list the
             1883      type and amount of an alcoholic [beverages] beverage ordered or consumed.
             1884          (27) A person's willingness to serve an alcoholic [beverages] beverage may not be
             1885      made a condition of employment as a server with a restaurant that has a restaurant liquor


             1886      license.
             1887          (28) A restaurant liquor licensee or an employee of the restaurant liquor licensee may
             1888      not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
             1889      Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             1890          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             1891      58-37-2 ; or
             1892          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             1893      Section 58-37a-3 .
             1894          Section 27. Section 32A-4-206 is amended to read:
             1895           32A-4-206. Operational restrictions.
             1896          [Each] A person granted an airport lounge liquor license and the employees and
             1897      management personnel of the airport lounge shall comply with the following conditions and
             1898      requirements. Failure to comply may result in a suspension or revocation of the airport lounge
             1899      liquor license or other disciplinary action taken against individual employees or management
             1900      personnel.
             1901          (1) (a) Liquor may not be purchased by an airport lounge liquor licensee except from a
             1902      state [stores] store or package [agencies] agency.
             1903          (b) Liquor purchased from a state store or package agency may be transported by the
             1904      airport lounge liquor licensee from the place of purchase to the licensed premises.
             1905          (c) Payment for liquor shall be made in accordance with the rules established by the
             1906      commission.
             1907          (2) An airport lounge liquor licensee may sell or provide a primary spirituous liquor
             1908      only in a quantity not to exceed [one ounce] 1.5 ounces per beverage dispensed through a
             1909      calibrated metered dispensing system approved by the department in accordance with
             1910      commission rules adopted under this title, except that:
             1911          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1912      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1913      restrictions:
             1914          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             1915      a spirituous primary liquor;
             1916          (ii) the secondary ingredient [is] may not be the only spirituous liquor in the beverage;


             1917          (iii) the airport lounge liquor licensee shall designate a location where flavorings are
             1918      stored on the floor plan provided to the department; and
             1919          (iv) [all] a flavoring [containers] container shall be plainly and conspicuously labeled
             1920      "flavorings";
             1921          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1922      system if used:
             1923          (i) as a flavoring on [desserts] a dessert; and
             1924          (ii) in the preparation of a flaming food [dishes, drinks, and desserts] dish, drink, or
             1925      dessert; [and]
             1926          (c) [each] an airport lounge patron may have no more than [2.75] 2.5 ounces of
             1927      spirituous liquor at a time before the patron; and
             1928          (d) an airport lounge patron may have no more than two spirituous liquor drinks at a
             1929      time before the patron, except that an airport lounge patron may not have two spirituous liquor
             1930      drinks before the airport lounge patron if one of the spirituous liquor drinks consists only of the
             1931      primary spirituous liquor for the other spirituous liquor drink.
             1932          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             1933      exceed five ounces per glass or individual portion.
             1934          (ii) An individual portion may be served to a patron in more than one glass as long as
             1935      the total amount of wine does not exceed five ounces.
             1936          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1937      Subsection (7)(c).
             1938          (b) (i) Wine may be sold and served in [containers] a container not exceeding 1.5 liters
             1939      at [prices] a price fixed by the commission to [tables] a table of four or more persons.
             1940          (ii) Wine may be sold and served in [containers] a container not exceeding 750
             1941      milliliters at [prices] a price fixed by the commission to [tables] a table of less than four
             1942      persons.
             1943          (c) A wine service may be performed and a service charge assessed by the airport
             1944      lounge liquor licensee as authorized by commission rule for wine purchased at the airport
             1945      lounge.
             1946          (4) (a) Heavy beer may be served in an original [containers] container not exceeding
             1947      one liter at [prices] a price fixed by the commission.


             1948          (b) A flavored malt beverage may be served in an original container not exceeding one
             1949      liter at a price fixed by the commission.
             1950          [(b)] (c) A service charge may be assessed by the airport lounge liquor licensee as
             1951      authorized by commission rule for heavy beer or a flavored malt beverage purchased at the
             1952      airport lounge.
             1953          (5) (a) (i) Subject to Subsection (5)(a)(ii), an airport lounge [licensed to sell] liquor
             1954      licensee may sell beer for on-premise consumption:
             1955          (A) in an open container; and
             1956          (B) on draft.
             1957          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             1958      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1959      container that exceeds one liter.
             1960          (b) An airport lounge liquor licensee that sells beer pursuant to Subsection (5)(a):
             1961          (i) may do so without obtaining a separate on-premise beer retailer license from the
             1962      commission; and
             1963          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1964      Retailer Licenses, that apply to an on-premise beer [retailers] retailer except when those
             1965      restrictions are inconsistent with or less restrictive than the operational restrictions under this
             1966      part.
             1967          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1968      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the airport
             1969      lounge's:
             1970          (i) state liquor license; and
             1971          (ii) alcoholic beverage license issued by the local authority.
             1972          (6) [Alcoholic beverages] An alcoholic beverage may not be stored, served, or sold in
             1973      [any] a place other than as designated in the airport lounge liquor licensee's application, unless
             1974      the airport lounge liquor licensee first applies for and receives approval from the department
             1975      for a change of location within the airport lounge.
             1976          (7) (a) A patron may only make [purchases] a purchase in the airport lounge from and
             1977      be served by a person employed, designated, and trained by the airport lounge liquor licensee to
             1978      sell, dispense, and serve an alcoholic [beverages] beverage.


             1979          (b) Notwithstanding Subsection (7)(a), a patron who [has purchased] purchases bottled
             1980      wine from an employee of the airport lounge may serve wine from the bottle to the patron or
             1981      others at the patron's table.
             1982          (c) [Each] An airport lounge patron may have no more than two alcoholic beverages of
             1983      any kind at a time before the patron, subject to the limitation in Subsection (2)(d).
             1984          (8) The liquor storage area shall remain locked at all times other than those hours and
             1985      days when liquor sales and service are authorized by law.
             1986          (9) [Alcoholic beverages] An alcoholic beverage may not be sold, offered for sale,
             1987      served, or otherwise furnished at an airport lounge on any day after 12 midnight and before 8
             1988      a.m.
             1989          (10) [Alcoholic beverages] An alcoholic beverage may not be sold, served, or
             1990      otherwise furnished to [any] a:
             1991          (a) minor;
             1992          (b) person actually, apparently, or obviously intoxicated;
             1993          (c) known habitual drunkard; or
             1994          (d) known interdicted person.
             1995          (11) (a) (i) Liquor may be sold only at [prices] a price fixed by the commission.
             1996          (ii) Liquor may not be sold at a discount [prices] price on any date or at any time.
             1997          (b) [Alcoholic beverages] An alcoholic beverage may not be sold at less than the cost
             1998      of the alcoholic beverage to the airport lounge liquor licensee.
             1999          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             2000      over consumption or intoxication.
             2001          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             2002      hours of the airport [lounge's] lounge liquor licensee's business day such as a "happy hour."
             2003          (e) [The sale or service of more] More than one alcoholic beverage may not be sold or
             2004      served for the price of a single alcoholic beverage [is prohibited].
             2005          (f) [The sale or service of an] An indefinite or unlimited number of alcoholic beverages
             2006      during [any] a set period may not be sold or served for a fixed price [is prohibited].
             2007          (g) An airport lounge liquor licensee may not engage in a public promotion involving
             2008      or offering free an alcoholic [beverages] beverage to the general public.
             2009          (12) [Alcoholic beverages] An alcoholic beverage may not be purchased for a patron of


             2010      an airport lounge by:
             2011          (a) the airport lounge liquor licensee; or
             2012          (b) [any] an employee or agent of the airport lounge liquor licensee.
             2013          (13) (a) A person may not bring onto the premises of an airport lounge liquor licensee
             2014      [any] an alcoholic beverage for on-premise consumption.
             2015          (b) An airport lounge [or its officers, managers, employees, or agents] liquor licensee
             2016      or an officer, manager, employee, or agent of the airport lounge liquor licensee may not allow a
             2017      person to bring onto the airport lounge premises [any] an alcoholic beverage for on-premise
             2018      consumption or allow consumption of [any such] the alcoholic beverage on [its] the airport
             2019      lounge liquor licensee's premises.
             2020          (14) An airport lounge liquor licensee and [its employees] an employee of the airport
             2021      lounge liquor licensee may not permit a patron to remove [any] an alcoholic [beverages]
             2022      beverage from the airport lounge premises.
             2023          (15) (a) [A minor may not be employed by an] An airport lounge liquor licensee may
             2024      not employ a minor to sell or dispense an alcoholic [beverages] beverage.
             2025          (b) Notwithstanding Subsection (15)(a), a minor who is at least 16 years of age may be
             2026      employed to enter the sale at a cash register or other sales recording device.
             2027          (16) An employee of an airport lounge liquor licensee, while on duty, may not:
             2028          (a) consume an alcoholic beverage; or
             2029          (b) be intoxicated.
             2030          (17) [Any] A charge or fee made in connection with the sale, service, or consumption
             2031      of liquor may be stated in a food or alcoholic beverage menu including:
             2032          (a) a set-up charge;
             2033          (b) a service charge; or
             2034          (c) a chilling fee.
             2035          (18) [Each] An airport lounge liquor licensee shall display in a prominent place in the
             2036      airport lounge:
             2037          (a) the liquor license that is issued by the department;
             2038          (b) a list of the types and brand names of liquor being served through its calibrated
             2039      metered dispensing system; and
             2040          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or


             2041      drugs is a serious crime that is prosecuted aggressively in Utah."
             2042          (19) (a) [Each] An airport lounge liquor licensee shall maintain an expense ledger or
             2043      record showing in detail:
             2044          (i) quarterly expenditures made separately for malt or brewed beverages, liquor, and all
             2045      other items required by the department; and
             2046          (ii) sales made separately for malt or brewed beverages, food, and all other items
             2047      required by the department.
             2048          [(b) This record shall be kept:]
             2049          (b) An airport lounge liquor licensee shall keep a record required by Subsection
             2050      (19)(a):
             2051          (i) in a form approved by the department; and
             2052          (ii) current for each three-month period.
             2053          (c) [Each] An expenditure shall be supported by:
             2054          (i) a delivery [tickets] ticket;
             2055          (ii) [invoices] an invoice;
             2056          (iii) a receipted [bills] bill;
             2057          (iv) a canceled [checks] check;
             2058          (v) a petty cash [vouchers] voucher; or
             2059          (vi) other sustaining [data or memoranda] datum or memorandum.
             2060          (d) In addition to a ledger or record required by Subsection (19)(a), [each] an airport
             2061      lounge liquor licensee shall maintain accounting and other records and documents as the
             2062      department may require.
             2063          (e) [Any] An airport lounge liquor licensee or person acting for the airport lounge, who
             2064      knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes [the entries in any of
             2065      the books] an entry in a book of account or other [documents] document of the airport lounge
             2066      required to be made, maintained, or preserved by this title or the rules of the commission for
             2067      the purpose of deceiving the commission [or], the department, or [any of their officials or
             2068      employees] an official or employee of the commission or department, is subject to:
             2069          (i) the immediate suspension or revocation of the airport lounge's liquor license; and
             2070          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2071          (20) An airport lounge liquor license may not be transferred from one location to


             2072      another, without prior written approval of the commission.
             2073          (21) (a) An airport lounge liquor licensee may not sell, transfer, assign, exchange,
             2074      barter, give, or attempt in any way to dispose of the airport lounge liquor license to [any other]
             2075      another person, whether for monetary gain or not.
             2076          (b) An airport lounge liquor license has no monetary value for the purpose of any type
             2077      of disposition.
             2078          (22) [Each] A server of an alcoholic [beverages] beverage in [a] an airport lounge
             2079      liquor licensee's establishment shall keep a written beverage tab for each table or group that
             2080      orders or consumes an alcoholic [beverages] beverage on the premises. The beverage tab shall
             2081      list the type and amount of an alcoholic [beverages] beverage ordered or consumed.
             2082          (23) An airport lounge liquor licensee's premises may not be leased for a private
             2083      [functions] function.
             2084          (24) An airport lounge liquor licensee may not on the premises of the airport lounge
             2085      liquor licensee:
             2086          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             2087      Chapter 10, Part 11, Gambling;
             2088          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             2089      Part 11, Gambling; or
             2090          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             2091      the risking of something of value for a return or for an outcome when the return or outcome is
             2092      based upon an element of chance, excluding the playing of an amusement device that confers
             2093      only an immediate and unrecorded right of replay not exchangeable for value.
             2094          (25) An airport lounge liquor licensee or an employee of the airport lounge liquor
             2095      licensee may not knowingly allow a person on the licensed premises to, in violation of Title 58,
             2096      Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             2097          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             2098      58-37-2 ; or
             2099          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             2100      Section 58-37a-3 .
             2101          Section 28. Section 32A-4-302 is amended to read:
             2102           32A-4-302. Commission's power to grant licenses -- Limitations.


             2103          (1) A restaurant wanting to sell and allow the consumption of only wine, heavy beer,
             2104      and beer on its premises, but not spirituous liquor[,] or, on or after October 1, 2008, a flavored
             2105      malt beverage, shall obtain a limited restaurant license from the commission as provided in this
             2106      part before selling or allowing the consumption of wine, heavy beer, or beer on its premises.
             2107          (2) (a) Subject to the other provisions of this section, the commission may issue limited
             2108      restaurant licenses for the purpose of establishing limited restaurant outlets at places and in
             2109      numbers the commission considers proper for the storage, sale, and consumption of wine,
             2110      heavy beer, and beer on premises operated as public restaurants.
             2111          (b) The total number of limited restaurant licenses issued under this part may not at any
             2112      time aggregate more than that number determined by dividing the population of the state by
             2113      [11,000] 9,300.
             2114          (c) For purposes of this Subsection (2), population shall be determined by:
             2115          (i) the most recent United States decennial or special census; or
             2116          (ii) [any other] another population determination made by the United States or state
             2117      governments.
             2118          (3) (a) (i) The commission may issue seasonal limited restaurant licenses established in
             2119      areas the commission considers necessary.
             2120          (ii) A seasonal limited restaurant license shall be for a period of six consecutive
             2121      months.
             2122          (b) (i) A limited restaurant license issued for operation during a summer time period is
             2123      known as a "Seasonal A" limited restaurant license. The period of operation for a "Seasonal A"
             2124      limited restaurant license shall:
             2125          (A) begin on May 1; and
             2126          (B) end on October 31.
             2127          (ii) A limited restaurant license issued for operation during a winter time period is
             2128      known as a "Seasonal B" limited restaurant license. The period of operation for a "Seasonal B"
             2129      limited restaurant license shall:
             2130          (A) begin on November 1; and
             2131          (B) end on April 30.
             2132          (iii) In determining the number of limited restaurant licenses that the commission may
             2133      issue under this section:


             2134          (A) a seasonal limited restaurant license is counted as 1/2 of one limited restaurant
             2135      license; and
             2136          (B) each "Seasonal A" limited restaurant license shall be paired with a "Seasonal B"
             2137      limited restaurant license.
             2138          (c) If the location, design, and construction of a hotel may require more than one
             2139      limited restaurant sales location within the hotel to serve the public convenience, the
             2140      commission may authorize the sale of wine, heavy beer, and beer at as many as three limited
             2141      restaurant locations within the hotel under one license if:
             2142          (i) the hotel has a minimum of 150 guest rooms; and
             2143          (ii) all locations under the license are:
             2144          (A) within the same hotel facility; and
             2145          (B) on premises that are:
             2146          (I) managed or operated by the licensee; and
             2147          (II) owned or leased by the licensee.
             2148          (d) [Facilities] A facility other than [hotels] a hotel shall have a separate limited
             2149      restaurant license for each restaurant where wine, heavy beer, and beer are sold.
             2150          (4) (a) [The] Except as provided in Subsection (4)(b), (c), or (d), the premises of a
             2151      limited restaurant license may not be established:
             2152          (i) within 600 feet of [any public or private school, church, public library, public
             2153      playground, or park] a community location, as measured by the method in Subsection [(5).]
             2154      (4)(e); or
             2155          [(b) The premises of a limited restaurant license may not be established]
             2156          (ii) within 200 feet of [any public or private school, church, public library, public
             2157      playground, or park] a community location, measured in a straight line from the nearest
             2158      entrance of the proposed outlet to the nearest property boundary of the [public or private
             2159      school, church, public library, public playground, or park] community location.
             2160          [(c) The restrictions contained in Subsections (4)(a) and (b) govern unless one of the
             2161      following exemptions applies:]
             2162          [(i) with] (b) With respect to the establishment of a limited restaurant license [in any
             2163      location], the commission may authorize a variance to reduce the proximity [requirements]
             2164      requirement of Subsection (4)(a)(i) [or (b)] if:


             2165          [(A)] (i) the local [governing] authority [has granted] grants its written consent to the
             2166      variance;
             2167          [(B)] (ii) the commission finds that alternative locations for establishing a limited
             2168      restaurant license in the community are limited;
             2169          [(C)] (iii) a public hearing [has been] is held in the city, town, or county, and where
             2170      practical in the neighborhood concerned; [and]
             2171          [(D)] (iv) after giving full consideration to all of the attending circumstances and the
             2172      policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
             2173      establishing the license would not be detrimental to the public health, peace, safety, and
             2174      welfare of the community; [or] and
             2175          (v) (A) the community location governing authority gives its written consent to the
             2176      variance; or
             2177          (B) when written consent is not given by the community location governing authority,
             2178      the commission finds that the applicant has established that:
             2179          (I) there is substantial unmet public demand to consume alcohol in a public setting
             2180      within the geographic boundary of the local authority in which the limited restaurant licensee is
             2181      to be located;
             2182          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             2183      described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a limited
             2184      restaurant license; and
             2185          (III) there is no reasonably viable alternative location within the geographic boundary
             2186      of the local authority in which the limited restaurant licensee is to be located for establishing a
             2187      limited restaurant license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
             2188          (c) With respect to the establishment of a limited restaurant license, the commission
             2189      may authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
             2190          (i) the community location at issue is:
             2191          (A) a public library; or
             2192          (B) a public park;
             2193          (ii) the local authority grants its written consent to the variance;
             2194          (iii) the commission finds that alternative locations for establishing a limited restaurant
             2195      license in the community are limited;


             2196          (iv) a public hearing is held in the city, town, or county, and where practical in the
             2197      neighborhood concerned;
             2198          (v) after giving full consideration to all of the attending circumstances and the policies
             2199      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             2200      limited restaurant license would not be detrimental to the public health, peace, safety, and
             2201      welfare of the community; and
             2202          (vi) (A) the community location governing authority gives its written consent to the
             2203      variance; or
             2204          (B) when written consent is not given by the community location governing authority,
             2205      the commission finds that the applicant has established that:
             2206          (I) there is substantial unmet public demand to consume alcohol in a public setting
             2207      within the geographic boundary of the local authority in which the limited restaurant licensee is
             2208      to be located;
             2209          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             2210      described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a limited
             2211      restaurant license; and
             2212          (III) there is no reasonably viable alternative location within the geographic boundary
             2213      of the local authority in which the limited restaurant licensee is to be located for establishing a
             2214      limited restaurant license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
             2215          [(ii) with] (d) With respect to the premises of [any] a limited restaurant license issued
             2216      by the commission that undergoes a change of ownership, the commission may waive or vary
             2217      the proximity requirements of [Subsections] Subsection (4)(a) [and (b)] in considering whether
             2218      to grant a limited restaurant license to the new owner of the premises if:
             2219          (i) (A) the premises previously received a variance reducing the proximity
             2220      [requirements] requirement of Subsection (4)(a)(i) [or (b)]; or
             2221          (B) the premises received a variance reducing the proximity requirement of Subsection
             2222      (4)(a)(ii) on or before May 4, 2008; or
             2223          [(B)] (ii) a variance from proximity [or distance requirement] requirements was
             2224      otherwise allowed under this title.
             2225          [(5) With respect to any public or private school, church, public library, public
             2226      playground, or park, the]


             2227          (e) The 600 foot limitation as described in Subsection (4)(a)(i) is measured from the
             2228      nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
             2229      property boundary of the [public or private school, church, public library, public playground,
             2230      school playground, or park] community location.
             2231          [(6)] (5) (a) Nothing in this section prevents the commission from considering the
             2232      proximity of any educational, religious, and recreational facility, or any other relevant factor in
             2233      reaching a decision on a proposed location.
             2234          (b) For purposes of this Subsection [(6)] (5), "educational facility" includes:
             2235          (i) a nursery school;
             2236          (ii) an infant day care center; and
             2237          (iii) a trade and technical school.
             2238          Section 29. Section 32A-4-303 is amended to read:
             2239           32A-4-303. Application and renewal requirements.
             2240          (1) A person seeking a limited restaurant license under this part shall file a written
             2241      application with the department, in a form prescribed by the department. The application shall
             2242      be accompanied by:
             2243          (a) a nonrefundable $250 application fee;
             2244          (b) an initial license fee of $500, which is refundable if a license is not granted;
             2245          (c) written consent of the local authority;
             2246          (d) a copy of the applicant's current business license;
             2247          (e) evidence of proximity to any [public or private school, church, public library,
             2248      public playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
             2249      Subsections 32A-4-302 (4) and (5), the application shall be processed in accordance with those
             2250      subsections] community location, with proximity requirements being governed by Section
             2251      32A-4-302 ;
             2252          (f) a bond as specified by Section 32A-4-306 ;
             2253          (g) a floor plan of the restaurant, including:
             2254          (i) consumption areas; and
             2255          (ii) the area where the applicant proposes to keep, store, and sell wine, heavy beer, and
             2256      beer;
             2257          (h) evidence that the restaurant is carrying public liability insurance in an amount and


             2258      form satisfactory to the department;
             2259          (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
             2260      $500,000 per occurrence and $1,000,000 in the aggregate;
             2261          (j) a signed consent form stating that the restaurant will permit any authorized
             2262      representative of the commission, department, or any law enforcement officer unrestricted right
             2263      to enter the restaurant;
             2264          (k) in the case of an applicant that is a partnership, corporation, or limited liability
             2265      company, proper verification evidencing that the person or persons signing the restaurant
             2266      application are authorized to so act on behalf of the partnership, corporation, or limited liability
             2267      company; and
             2268          (l) any other information the commission or department may require.
             2269          (2) (a) All limited restaurant licenses expire on October 31 of each year.
             2270          (b) A person desiring to renew that person's limited restaurant license shall submit:
             2271          (i) a renewal fee of $300; and
             2272          (ii) a renewal application to the department no later than September 30.
             2273          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             2274      the license effective on the date the existing license expires.
             2275          (d) [Renewal applications] A renewal application shall be in a form as prescribed by
             2276      the department.
             2277          (3) To ensure compliance with Subsection 32A-4-307 (25), the commission may
             2278      suspend or revoke a limited restaurant license if the limited restaurant licensee does not
             2279      immediately notify the department of any change in:
             2280          (a) ownership of the restaurant;
             2281          (b) for a corporate owner, the:
             2282          (i) corporate officer or directors; or
             2283          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             2284      corporation; or
             2285          (c) for a limited liability company:
             2286          (i) managers; or
             2287          (ii) members owning at least 20% of the limited liability company.
             2288          Section 30. Section 32A-4-305 is amended to read:


             2289           32A-4-305. Commission and department duties before granting licenses.
             2290          (1) (a) Before a limited restaurant license may be granted by the commission, the
             2291      department shall conduct an investigation and may hold public hearings for the purpose of
             2292      gathering information and making recommendations to the commission as to whether or not a
             2293      license should be granted.
             2294          (b) The department shall forward the information and recommendations described in
             2295      Subsection (1)(a) to the commission to aid in the commission's determination.
             2296          (2) Before issuing [any] a limited restaurant license, the commission shall:
             2297          (a) determine that the applicant has complied with all basic qualifications and
             2298      requirements for making application for a license as provided by Sections 32A-4-302 and
             2299      32A-4-303 ;
             2300          (b) determine that the application is complete;
             2301          (c) consider the locality within which the proposed limited restaurant outlet is located,
             2302      including:
             2303          (i) physical characteristics such as:
             2304          (A) the condition of the premises;
             2305          (B) square footage; and
             2306          (C) parking availability; and
             2307          (ii) operational factors such as:
             2308          (A) tourist traffic;
             2309          (B) proximity to and density of other state stores, package agencies, and outlets;
             2310          (C) demographics;
             2311          (D) population to be served; and
             2312          (E) the extent of and proximity to any [school, church, public library, public
             2313      playground, or park] community location;
             2314          (d) consider the applicant's ability to manage and operate a limited restaurant license,
             2315      including:
             2316          (i) management experience;
             2317          (ii) past retail liquor experience; and
             2318          (iii) the type of management scheme employed by the restaurant;
             2319          (e) consider the nature or type of restaurant operation, including:


             2320          (i) the type of menu items offered and emphasized;
             2321          (ii) whether the restaurant emphasizes service to an adult clientele or to minors;
             2322          (iii) the hours of operation;
             2323          (iv) the seating capacity of the facility; and
             2324          (v) the gross sales of food items; and
             2325          (f) consider any other factors or circumstances the commission considers necessary.
             2326          Section 31. Section 32A-4-307 is amended to read:
             2327           32A-4-307. Operational restrictions.
             2328          [Each] A person granted a limited restaurant license and the employees and
             2329      management personnel of the limited restaurant shall comply with the following conditions and
             2330      requirements. Failure to comply may result in a suspension or revocation of the license or
             2331      other disciplinary action taken against individual employees or management personnel.
             2332          (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
             2333      except from a state [stores] store or package [agencies] agency.
             2334          (b) Wine and heavy beer purchased [in accordance with Subsection (1)(a)] from a state
             2335      store or package agency may be transported by the limited restaurant licensee from the place of
             2336      purchase to the licensed premises.
             2337          (c) Payment for wine and heavy beer shall be made in accordance with rules
             2338      established by the commission.
             2339          (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of
             2340      [spirituous liquor] the products listed in Subsection (2)(c) on the premises of the limited
             2341      restaurant.
             2342          (b) [Spirituous liquor] A product listed in Subsection (2)(c) may not be on the premises
             2343      of the limited restaurant except for use:
             2344          (i) as a flavoring on [desserts] a dessert; and
             2345          (ii) in the preparation of a flaming food [dishes, drinks, and desserts] dish, drink, or
             2346      dessert.
             2347          (c) This Subsection (2) applies to:
             2348          (i) spirituous liquor; and
             2349          (ii) on or after October 1, 2008, a flavored malt beverage.
             2350          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to


             2351      exceed five ounces per glass or individual portion.
             2352          (ii) An individual portion may be served to a patron in more than one glass as long as
             2353      the total amount of wine does not exceed five ounces.
             2354          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             2355      Subsection (7)(e).
             2356          (b) (i) Wine may be sold and served in [containers] a container not exceeding 1.5 liters
             2357      at [prices] a price fixed by the commission to [tables] a table of four or more persons.
             2358          (ii) Wine may be sold and served in [containers] a container not exceeding 750
             2359      milliliters at [prices] a price fixed by the commission to [tables] a table of less than four
             2360      persons.
             2361          (c) A wine service may be performed and a service charge assessed by the limited
             2362      restaurant licensee as authorized by commission rule for wine purchased at the limited
             2363      restaurant.
             2364          (4) (a) Heavy beer may be served in an original [containers] container not exceeding
             2365      one liter at [prices] a price fixed by the commission.
             2366          (b) A service charge may be assessed by the limited restaurant licensee as authorized
             2367      by commission rule for heavy beer purchased at the limited restaurant.
             2368          (5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer for
             2369      on-premise consumption:
             2370          (A) in an open container; and
             2371          (B) on draft.
             2372          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             2373      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             2374      container that exceeds one liter.
             2375          (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
             2376          (i) may do so without obtaining a separate on-premise beer retailer license from the
             2377      commission; and
             2378          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             2379      Retailer Licenses, that apply to an on-premise beer [retailers] retailer except when those
             2380      restrictions are inconsistent with or less restrictive than the operational restrictions under this
             2381      part.


             2382          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             2383      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the limited
             2384      restaurant's:
             2385          (i) limited restaurant license; and
             2386          (ii) alcoholic beverage license issued by the local authority.
             2387          (6) Wine, heavy beer, and beer may not be stored, served, or sold in [any] a place other
             2388      than as designated in the limited restaurant licensee's application, unless the limited restaurant
             2389      licensee first applies for and receives approval from the department for a change of location
             2390      within the limited restaurant.
             2391          (7) (a) (i) A patron may only make an alcoholic beverage [purchases] purchase in [the]
             2392      a limited restaurant from and be served by a person employed, designated, and trained by the
             2393      limited restaurant licensee to sell and serve an alcoholic [beverages] beverage.
             2394          (ii) Notwithstanding Subsection (7)(a)(i), a patron who [has purchased] purchases
             2395      bottled wine from an employee of the limited restaurant [or has carried] licensee or carries
             2396      bottled wine onto the premises of the limited restaurant pursuant to Subsection (14) may
             2397      thereafter serve wine from the bottle to the patron or others at the patron's table.
             2398          (b) [Alcoholic beverages] An alcoholic beverage shall be delivered by a server to the
             2399      patron.
             2400          (c) [Any] An alcoholic beverage may only be consumed at the patron's table or counter.
             2401          (d) [Alcoholic beverages] An alcoholic beverage may not be served to or consumed by
             2402      a patron at a bar.
             2403          (e) [Each] A limited restaurant patron may have no more than two alcoholic beverages
             2404      of any kind at a time before the patron.
             2405          (8) The alcoholic beverage storage area shall remain locked at all times other than
             2406      those hours and days when alcoholic beverage sales are authorized by law.
             2407          (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
             2408      furnished at a limited restaurant during the following days or hours:
             2409          (i) until after the polls are closed on the day of [any] a:
             2410          (A) regular general election;
             2411          (B) regular primary election; or
             2412          (C) statewide special election;


             2413          (ii) until after the polls are closed on the day of [any] a municipal, local district, special
             2414      service district, or school election, but only:
             2415          (A) within the boundaries of the municipality, local district, special service district, or
             2416      school district; and
             2417          (B) if required by local ordinance; and
             2418          (iii) on any other day after 12 midnight and before 12 noon.
             2419          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             2420      Licenses, for on-premise beer licensees.
             2421          (10) [Alcoholic beverages] An alcoholic beverage may not be sold except in
             2422      connection with an order of food prepared, sold, and served at the limited restaurant.
             2423          (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to
             2424      [any] a:
             2425          (a) minor;
             2426          (b) person actually, apparently, or obviously intoxicated;
             2427          (c) known habitual drunkard; or
             2428          (d) known interdicted person.
             2429          (12) (a) (i) Wine and heavy beer may be sold only at [prices] a price fixed by the
             2430      commission.
             2431          (ii) Wine and heavy beer may not be sold at a discount [prices] price on any date or at
             2432      any time.
             2433          (b) [Alcoholic beverages] An alcoholic beverage may not be sold at less than the cost
             2434      of the alcoholic [beverages] beverage to the limited restaurant licensee.
             2435          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             2436      over consumption or intoxication.
             2437          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             2438      hours of the limited [restaurant's] restaurant licensee's business day such as a "happy hour."
             2439          (e) [The sale or service of more] More than one alcoholic beverage may not be sold or
             2440      served for the price of a single alcoholic beverage [is prohibited].
             2441          (f) [The sale or service of an] An indefinite or unlimited number of alcoholic beverages
             2442      during [any] a set period may not be sold or served for a fixed price [is prohibited].
             2443          (g) A limited restaurant licensee may not engage in a public promotion involving or


             2444      offering free alcoholic beverages to the general public.
             2445          (13) [Alcoholic beverages] An alcoholic beverage may not be purchased for a patron of
             2446      the limited restaurant by:
             2447          (a) the limited restaurant licensee; or
             2448          (b) [any] an employee or agent of the limited restaurant licensee.
             2449          (14) (a) A person may not bring onto the premises of a limited restaurant licensee [any]
             2450      an alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             2451      discretion of the limited restaurant licensee, bottled wine onto the premises of [any] a limited
             2452      restaurant licensee for on-premise consumption.
             2453          (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee [or its
             2454      officers, managers, employees, or agents] or an officer, manager, employee, or agent of a
             2455      limited restaurant licensee may not allow:
             2456          (i) a person to bring onto the limited restaurant premises [any] an alcoholic beverage
             2457      for on-premise consumption; or
             2458          (ii) consumption of [any] an alcoholic beverage described in Subsection (14)(b)(i) on
             2459      [its] the limited restaurant licensee's premises.
             2460          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             2461      or other representative of the limited restaurant licensee upon entering the limited restaurant.
             2462          (d) A wine service may be performed and a service charge assessed by the limited
             2463      restaurant licensee as authorized by commission rule for wine carried in by a patron.
             2464          (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee [and its
             2465      employees] and an employee of the limited restaurant licensee may not permit a restaurant
             2466      patron to carry from the limited restaurant premises an open container that:
             2467          (i) is used primarily for drinking purposes; and
             2468          (ii) contains [any] an alcoholic beverage.
             2469          (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
             2470      contents of a bottle of wine if before removal, the bottle [has been] is recorked or recapped.
             2471          (16) (a) A [minor may not be employed by a] limited restaurant licensee may not
             2472      employ a minor to sell or dispense an alcoholic [beverages] beverage.
             2473          (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
             2474      employed to enter the sale at a cash register or other sales recording device.


             2475          (17) An employee of a limited restaurant licensee, while on duty, may not:
             2476          (a) consume an alcoholic beverage; or
             2477          (b) be intoxicated.
             2478          (18) A charge or fee made in connection with the sale, service, or consumption of wine
             2479      or heavy beer may be stated in food or alcoholic beverage menus including:
             2480          (a) a service charge; or
             2481          (b) a chilling fee.
             2482          (19) [Each] A limited restaurant licensee shall display in a prominent place in the
             2483      restaurant:
             2484          (a) the limited restaurant license that is issued by the department; and
             2485          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             2486      drugs is a serious crime that is prosecuted aggressively in Utah."
             2487          (20) A limited restaurant licensee may not on the premises of the restaurant:
             2488          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             2489      Chapter 10, Part 11, Gambling;
             2490          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             2491      Part 11, Gambling; or
             2492          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             2493      the risking of something of value for a return or for an outcome when the return or outcome is
             2494      based upon an element of chance, excluding the playing of an amusement device that confers
             2495      only an immediate and unrecorded right of replay not exchangeable for value.
             2496          (21) (a) [Each] A limited restaurant licensee shall maintain an expense ledger or record
             2497      showing in detail:
             2498          (i) quarterly expenditures made separately for:
             2499          (A) wine;
             2500          (B) heavy beer;
             2501          (C) beer;
             2502          (D) food; and
             2503          (E) all other items required by the department; and
             2504          (ii) sales made separately for:
             2505          (A) wine;


             2506          (B) heavy beer;
             2507          (C) beer;
             2508          (D) food; and
             2509          (E) all other items required by the department.
             2510          (b) [The] A limited restaurant licensee shall keep a record required by Subsection
             2511      (21)(a) [shall be kept]:
             2512          (i) in a form approved by the department; and
             2513          (ii) current for each three-month period.
             2514          (c) [Each] An expenditure shall be supported by:
             2515          (i) a delivery [tickets] ticket;
             2516          (ii) [invoices] an invoice;
             2517          (iii) a receipted [bills] bill;
             2518          (iv) a canceled [checks] check;
             2519          (v) a petty cash [vouchers] voucher; or
             2520          (vi) other sustaining [data or memoranda] datum or memorandum.
             2521          (d) In addition to the ledger or record maintained under Subsections (21)(a) through
             2522      (c), a limited restaurant licensee shall maintain accounting and other records and documents as
             2523      the department may require.
             2524          (e) Any limited restaurant licensee or person acting for the restaurant, who knowingly
             2525      forges, falsifies, alters, cancels, destroys, conceals, or removes [the entries in any of the books]
             2526      an entry in a book of account or other [documents] document of the limited restaurant that is
             2527      required to be made, maintained, or preserved by this title or the rules of the commission for
             2528      the purpose of deceiving the commission [or], the department, or [any of their officials or
             2529      employees] an official or employee of the commission or department, is subject to:
             2530          (i) the suspension or revocation of the limited restaurant's license; and
             2531          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2532          (22) (a) A limited restaurant licensee may not close or cease operation for a period
             2533      longer than 240 hours, unless:
             2534          (i) the limited restaurant licensee notifies the department in writing at least seven days
             2535      before the [closing] day on which the limited restaurant licensee closes or ceases operation; and
             2536          (ii) the closure or cessation of operation is first approved by the department.


             2537          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, [immediate
             2538      notice of closure shall be made to] the limited restaurant licensee shall immediately notify the
             2539      department by telephone.
             2540          (c) (i) Subject to Subsection (22)(c)(iii), the department may authorize a closure or
             2541      cessation of operation for a period not to exceed 60 days.
             2542          (ii) The department may extend the initial period an additional 30 days upon:
             2543          (A) written request of the limited restaurant licensee; and
             2544          (B) a showing of good cause.
             2545          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             2546      commission approval.
             2547          (d) [Any] A notice required by Subsection (22)(a) shall include:
             2548          (i) the dates of closure or cessation of operation;
             2549          (ii) the reason for the closure or cessation of operation; and
             2550          (iii) the date on which the limited restaurant licensee will reopen or resume operation.
             2551          (e) Failure of the limited restaurant licensee to provide notice and to obtain department
             2552      authorization before closure or cessation of operation [shall result] results in an automatic
             2553      forfeiture of:
             2554          (i) the limited restaurant license; and
             2555          (ii) the unused portion of the license fee for the remainder of the license year effective
             2556      immediately.
             2557          (f) Failure of the limited restaurant licensee to reopen or resume operation by the
             2558      approved date [shall result] results in an automatic forfeiture of:
             2559          (i) the limited restaurant license; and
             2560          (ii) the unused portion of the license fee for the remainder of the license year.
             2561          (23) [Each] A limited restaurant licensee shall maintain at least 70% of its total
             2562      restaurant business from the sale of food, which does not include service charges.
             2563          (24) A limited restaurant license may not be transferred from one location to another,
             2564      without prior written approval of the commission.
             2565          (25) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,
             2566      give, or attempt in any way to dispose of the limited restaurant license to [any other] another
             2567      person whether for monetary gain or not.


             2568          (b) A limited restaurant license has no monetary value for the purpose of any type of
             2569      disposition.
             2570          (26) (a) [Each] A server of wine, heavy beer, and beer in a limited restaurant licensee's
             2571      establishment shall keep a written beverage tab for each table or group that orders or consumes
             2572      an alcoholic [beverages] beverage on the premises.
             2573          (b) The beverage tab required by Subsection (26)(a) shall list the type and amount of an
             2574      alcoholic [beverages] beverage ordered or consumed.
             2575          (27) A limited restaurant licensee may not make a person's willingness to serve an
             2576      alcoholic [beverages] beverage a condition of employment as a server with the limited
             2577      restaurant.
             2578          (28) A limited restaurant licensee or an employee of the limited restaurant licensee may
             2579      not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
             2580      Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             2581          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             2582      58-37-2 ; or
             2583          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             2584      Section 58-37a-3 .
             2585          Section 32. Section 32A-4-401 is amended to read:
             2586           32A-4-401. Definitions -- Commission's power to grant licenses -- Limitations.
             2587          (1) (a) For purposes of this part:
             2588          (i) "Banquet" means an event:
             2589          (A) for which there is a contract:
             2590          (I) between any person and a person listed in Subsection (1)(a)(i)(B); and
             2591          (II) under which a person listed in Subsection (1)(a)(i)(B) is required to provide
             2592      alcoholic beverages at the event;
             2593          (B) held at one or more designated locations approved by the commission in or on the
             2594      premises of a:
             2595          (I) hotel;
             2596          (II) resort facility;
             2597          (III) sports center; or
             2598          (IV) convention center; and


             2599          (C) at which food and alcoholic beverages may be sold and served.
             2600          (ii) "Convention center" is as defined by the commission by rule.
             2601          (iii) "Hotel" is as defined by the commission by rule.
             2602          (iv) "Resort facility" is as defined by the commission by rule.
             2603          (v) "Room service" means service of alcoholic beverages to a guest room of a:
             2604          (A) hotel; or
             2605          (B) resort facility.
             2606          (vi) "Sports center" is as defined by the commission by rule.
             2607          (b) The commission may issue an on-premise banquet license to any of the following
             2608      persons for the purpose of allowing the storage, sale, service, and consumption of alcoholic
             2609      beverages in connection with that person's banquet and room service activities:
             2610          (i) hotel;
             2611          (ii) resort facility;
             2612          (iii) sports center; or
             2613          (iv) convention center.
             2614          (c) This chapter is not intended to prohibit alcoholic beverages on the premises of a
             2615      person listed in Subsection (1) to the extent otherwise permitted by this title.
             2616          (2) (a) Subject to this section, the total number of on-premise banquet licenses may not
             2617      at any time aggregate more than that number determined by dividing the population of the state
             2618      by 30,000.
             2619          (b) For purposes of this Subsection (2), the population of the state shall be determined
             2620      by:
             2621          (i) the most recent United States decennial or special census; or
             2622          (ii) [any other] another population determination made by the United States or state
             2623      governments.
             2624          (3) Pursuant to a contract between the host of a banquet and an on-premise banquet
             2625      licensee:
             2626          (a) the host of a contracted banquet may request an on-premise banquet licensee to
             2627      provide alcoholic beverages served at a banquet; and
             2628          (b) an on-premise banquet licensee may provide the alcoholic beverages served at a
             2629      banquet.


             2630          (4) At a banquet, an on-premise banquet licensee may provide:
             2631          (a) a hosted bar; or
             2632          (b) a cash bar.
             2633          (5) Nothing in this section shall prohibit a qualified on-premise banquet license
             2634      applicant from applying for a package agency.
             2635          (6) (a) [The] Except as provided in Subsection (6)(b), (c), or (d), the premises of an
             2636      on-premise banquet license may not be established:
             2637          (i) within 600 feet of [any public or private school, church, public library, public
             2638      playground, or park] a community location, as measured by the method in Subsection
             2639      (6)[(d).](e); or
             2640          [(b) The premises of an on-premise banquet license may not be established]
             2641          (ii) within 200 feet of [any public or private school, church, public library, public
             2642      playground, or park] a community location, measured in a straight line from the nearest
             2643      entrance of the proposed outlet to the nearest property boundary of the [public or private
             2644      school, church, public library, public playground, or park] community location.
             2645          [(c) The restrictions contained in Subsections (6)(a) and (b) govern unless one of the
             2646      following exemptions applies:]
             2647          [(i) with] (b) With respect to the establishment of an on-premise banquet license
             2648      [within any location], the commission may authorize a variance to reduce the proximity
             2649      [requirements] requirement of Subsection (6)(a)(i) [or (b)] if:
             2650          [(A)] (i) the local authority grants its written consent to the variance;
             2651          [(B)] (ii) the commission finds that alternative locations for establishing an on-premise
             2652      banquet license in the community are limited;
             2653          [(C)] (iii) the variance is authorized after a public hearing is held in the city, town, or
             2654      county, and where practical in the neighborhood concerned; [and]
             2655          [(D)] (iv) after giving full consideration to all of the attending circumstances and the
             2656      policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
             2657      establishing the license would not be detrimental to the public health, peace, safety, and
             2658      welfare of the community; [or] and
             2659          (v) (A) the community location governing authority gives its written consent to the
             2660      variance; or


             2661          (B) when written consent is not given by the community location governing authority,
             2662      the commission finds that the applicant has established that:
             2663          (I) there is substantial unmet public demand to consume alcohol in a public setting
             2664      within the geographic boundary of the local authority in which the on-premise banquet license
             2665      premises is to be located;
             2666          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             2667      described in Subsection (6)(b)(v)(B)(I) other than through the establishment of an on-premise
             2668      banquet license; and
             2669          (III) there is no reasonably viable alternative location within the geographic boundary
             2670      of the local authority in which the on-premise banquet license premises is to be located for
             2671      establishing an on-premise banquet license to satisfy the unmet demand described in
             2672      Subsection (6)(b)(v)(B)(I).
             2673          (c) With respect to the establishment of an on-premise banquet license, the commission
             2674      may authorize a variance that reduces the proximity requirement of Subsection (6)(a)(ii) if:
             2675          (i) the community location at issue is:
             2676          (A) a public library; or
             2677          (B) a public park;
             2678          (ii) the local authority grants its written consent to the variance;
             2679          (iii) the commission finds that alternative locations for establishing an on-premise
             2680      banquet license in the community are limited;
             2681          (iv) a public hearing is held in the city, town, or county, and where practical in the
             2682      neighborhood concerned;
             2683          (v) after giving full consideration to all of the attending circumstances and the policies
             2684      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             2685      on-premise banquet license would not be detrimental to the public health, peace, safety, and
             2686      welfare of the community; and
             2687          (vi) (A) the community location governing authority gives its written consent to the
             2688      variance; or
             2689          (B) when written consent is not given by the community location governing authority,
             2690      the commission finds that the applicant has established that:
             2691          (I) there is substantial unmet public demand to consume alcohol in a public setting


             2692      within the geographic boundary of the local authority in which the on-premise banquet license
             2693      premises is to be located;
             2694          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             2695      described in Subsection (6)(c)(vi)(B)(I) other than through the establishment of an on-premise
             2696      banquet license; and
             2697          (III) there is no reasonably viable alternative location within the geographic boundary
             2698      of the local authority in which the on-premise banquet license premises is to be located for
             2699      establishing an on-premise banquet license to satisfy the unmet demand described in
             2700      Subsection (6)(c)(vi)(B)(I).
             2701          [(ii) with] (d) With respect to the premises of any on-premise banquet license issued
             2702      by the commission that undergoes a change of ownership, the commission may waive or vary
             2703      the proximity requirements of [Subsections] Subsection (6)(a) [and (b)] in considering whether
             2704      to grant an on-premise banquet license to the new owner of the premises if:
             2705          (i) (A) the premises previously received a variance reducing the proximity
             2706      [requirements] requirement of Subsection (6)(a)(i) [or (b)]; or
             2707          (B) the premises received a variance reducing the proximity requirement of Subsection
             2708      (6)(a)(ii) on or before May 4, 2008; or
             2709          [(B)] (ii) a variance from proximity [or distance] requirements was otherwise allowed
             2710      under this title.
             2711          [(d)] (e) [With respect to any public or private school, church, public library, public
             2712      playground, or park, the] The 600 foot limitation described in Subsection (6)(a)(i) is measured
             2713      from the nearest entrance of the outlet by following the shortest route of ordinary pedestrian
             2714      travel to the property boundary of the [public or private school, church, public library, public
             2715      playground, school playground, or park] community location.
             2716          (7) (a) Nothing in this section prevents the commission from considering the proximity
             2717      of any educational, religious, and recreational facility, or any other relevant factor in reaching a
             2718      decision on a proposed location.
             2719          (b) For purposes of this Subsection (7), "educational facility" includes:
             2720          (i) a nursery school;
             2721          (ii) an infant day care center; and
             2722          (iii) a trade and technical school.


             2723          Section 33. Section 32A-4-402 is amended to read:
             2724           32A-4-402. Application and renewal requirements.
             2725          (1) (a) A person seeking an on-premise banquet license under this part shall file a
             2726      written application with the department, in a form prescribed by the department. The
             2727      application shall be accompanied by:
             2728          (i) a nonrefundable $250 application fee;
             2729          (ii) an initial license fee of $500, which is refundable if a license is not granted;
             2730          (iii) written consent of the local authority;
             2731          (iv) a copy of the applicant's current business license;
             2732          (v) evidence of proximity to any [public or private school, church, public library,
             2733      public playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of
             2734      Subsection 32A-4-401 (6), the application shall be processed in accordance with those
             2735      subsections] community location, with proximity requirements being governed by Section
             2736      32A-4-401 ;
             2737          (vi) a bond as specified by Section 32A-4-405 ;
             2738          (vii) a description or floor plan and boundary map of the premises, where appropriate,
             2739      of the on-premise banquet license applicant's location, designating:
             2740          (A) the location at which the on-premise banquet license applicant proposes that
             2741      alcoholic beverages be stored; and
             2742          (B) the designated locations on the premises of the applicant from which the
             2743      on-premise banquet license applicant proposes that alcoholic beverages be sold or served, and
             2744      consumed;
             2745          (viii) evidence that the on-premise banquet license applicant is carrying public liability
             2746      insurance in an amount and form satisfactory to the department;
             2747          (ix) evidence that the on-premise banquet license applicant is carrying dramshop
             2748      insurance coverage of at least $500,000 per occurrence and $1,000,000 in the aggregate;
             2749          (x) a signed consent form stating that the on-premise banquet license applicant will
             2750      permit any authorized representative of the commission, department, or any law enforcement
             2751      officer unrestricted right to enter the on-premise banquet premises;
             2752          (xi) in the case of an applicant that is a partnership, corporation, or limited liability
             2753      company, proper verification evidencing that the person or persons signing the on-premise


             2754      banquet license application are authorized to so act on behalf of the partnership, corporation, or
             2755      limited liability company; and
             2756          (xii) any other information the commission or department may require.
             2757          (b) An applicant need not meet the requirements of Subsections (1)(a)(i), (ii), (iii), (iv),
             2758      and (vi) if the applicant is:
             2759          (i) a state agency; or
             2760          (ii) a political subdivision of the state including:
             2761          (A) a county; or
             2762          (B) a municipality.
             2763          (2) Additional locations in or on the premises of an on-premise banquet license
             2764      applicant's business from which the on-premise banquet license applicant may propose that
             2765      alcoholic beverages may be stored, sold or served, or consumed, not included in the applicant's
             2766      original application may be approved by the department upon proper application, in accordance
             2767      with guidelines approved by the commission.
             2768          (3) (a) All on-premise banquet licenses expire on October 31 of each year.
             2769          (b) (i) Except as provided in Subsection (3)(b)(ii), a person desiring to renew that
             2770      person's on-premise banquet license shall submit a renewal fee of $500 and a completed
             2771      renewal application to the department no later than September 30.
             2772          (ii) A licensee is not required to submit the renewal fee if the licensee is:
             2773          (A) a state agency; or
             2774          (B) a political subdivision of the state including:
             2775          (I) a county; or
             2776          (II) a municipality.
             2777          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             2778      the license effective on the date the existing license expires.
             2779          (d) [Renewal applications] A renewal application shall be in a form as prescribed by
             2780      the department.
             2781          (4) To ensure compliance with Subsection 32A-4-406 (24), the commission may
             2782      suspend or revoke an on-premise banquet license if the on-premise banquet licensee fails to
             2783      immediately notify the department of any change in:
             2784          (a) ownership of the licensee;


             2785          (b) for a corporate owner, the:
             2786          (i) corporate officers or directors; or
             2787          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             2788      corporation; or
             2789          (c) for a limited liability company:
             2790          (i) managers; or
             2791          (ii) members owning at least 20% of the limited liability company.
             2792          Section 34. Section 32A-4-406 is amended to read:
             2793           32A-4-406. Operational restrictions.
             2794          [Each] A person granted an on-premise banquet license and the employees and
             2795      management personnel of the on-premise banquet licensee shall comply with this title, the rules
             2796      of the commission, and the following conditions and requirements. Failure to comply may
             2797      result in a suspension or revocation of the on-premise banquet license or other disciplinary
             2798      action taken against individual employees or management personnel.
             2799          (1) A person involved in the sale or service of an alcoholic [beverages] beverage under
             2800      the on-premise banquet license shall:
             2801          (a) be under the supervision and direction of the on-premise banquet licensee; and
             2802          (b) complete the seminar provided for in Section 62A-15-401 .
             2803          (2) (a) Liquor may not be purchased by [the] an on-premise banquet licensee except
             2804      from a state [stores] store or package [agencies] agency.
             2805          (b) Liquor purchased [in accordance with Subsection (2)(a)] from a state store or
             2806      package agency may be transported by the on-premise banquet licensee from the place of
             2807      purchase to the licensed premises.
             2808          (c) Payment for liquor shall be made in accordance with rules established by the
             2809      commission.
             2810          (3) [Alcoholic beverages] An alcoholic beverage may be sold or provided at a banquet
             2811      by an on-premise banquet licensee subject to the restrictions set forth in this Subsection (3).
             2812          (a) An on-premise banquet licensee may sell or provide [any] a primary spirituous
             2813      liquor only in a quantity not to exceed [one ounce] 1.5 ounces per beverage dispensed through
             2814      a calibrated metered dispensing system approved by the department in accordance with
             2815      commission rules adopted under this title, except that:


             2816          (i) spirituous liquor need not be dispensed through a calibrated metered dispensing
             2817      system if used as a secondary flavoring ingredient in a beverage subject to the following
             2818      restrictions:
             2819          (A) the secondary ingredient may be dispensed only in conjunction with the purchase
             2820      of a primary spirituous liquor;
             2821          (B) the secondary ingredient may not be the only spirituous liquor in the beverage;
             2822          (C) the on-premise banquet licensee shall designate a location where flavorings are
             2823      stored on the floor plan provided to the department; and
             2824          (D) [all] a flavoring [containers] container shall be plainly and conspicuously labeled
             2825      "flavorings";
             2826          (ii) spirituous liquor need not be dispensed through a calibrated metered dispensing
             2827      system if used:
             2828          (A) as a flavoring on [desserts] a dessert; and
             2829          (B) in the preparation of a flaming food [dishes, drinks, and desserts] dish, drink, or
             2830      dessert;
             2831          (iii) [each] an attendee may have no more than [2.75] 2.5 ounces of spirituous liquor at
             2832      a time before the attendee; and
             2833          (iv) [each] an attendee may have no more than one spirituous liquor drink at a time
             2834      before the attendee.
             2835          (b) (i) (A) Wine may be sold and served by the glass or an individual portion not to
             2836      exceed five ounces per glass or individual portion.
             2837          (B) An individual portion may be served to an attendee in more than one glass as long
             2838      as the total amount of wine does not exceed five ounces.
             2839          (C) An individual portion of wine is considered to be one alcoholic beverage under
             2840      Subsection (5)(c).
             2841          (ii) Wine may be sold and served in [containers] a container not exceeding 1.5 liters at
             2842      [prices] a price fixed by the commission.
             2843          (iii) A wine service may be performed and a service charge assessed by the on-premise
             2844      banquet licensee as authorized by commission rule for wine purchased on the banquet
             2845      premises.
             2846          (c) (i) Heavy beer may be served in an original [containers] container not exceeding


             2847      one liter at [prices] a price fixed by the commission.
             2848          (ii) A flavored malt beverage may be served in an original container not exceeding one
             2849      liter at a price fixed by the commission.
             2850          [(ii)] (iii) A service charge may be assessed by the on-premise banquet licensee as
             2851      authorized by commission rule for heavy beer or a flavored malt beverage purchased on the
             2852      banquet premises.
             2853          (d) (i) Except as provided in Subsection (3)(d)(ii), beer may be sold and served for
             2854      on-premise consumption:
             2855          (A) in an open container; and
             2856          (B) on draft.
             2857          (ii) Beer sold pursuant to Subsection (3)(d)(i) shall be in a size of container that does
             2858      not exceed two liters, except that beer may not be sold to an individual attendee in a container
             2859      size that exceeds one liter.
             2860          (4) [Alcoholic beverages] An alcoholic beverage may not be stored, served, or sold in
             2861      any place other than as designated in the on-premise banquet licensee's application, except that
             2862      additional locations in or on the premises of an on-premise banquet licensee may be approved
             2863      in accordance with guidelines approved by the commission as provided in Subsection
             2864      32A-4-402 (2).
             2865          (5) (a) An attendee may only make an alcoholic beverage [purchases] purchase from
             2866      and be served by a person employed, designated, and trained by the on-premise banquet
             2867      licensee to sell and serve an alcoholic [beverages] beverage.
             2868          (b) Notwithstanding Subsection (5)(a), an attendee who [has purchased] purchases
             2869      bottled wine from an employee of the on-premise banquet licensee may thereafter serve wine
             2870      from the bottle to the attendee or others at the attendee's table.
             2871          (c) [Each] An attendee may have no more than two alcoholic beverages of any kind at a
             2872      time before the attendee, subject to the limitation of Subsection (3)(a)(iv).
             2873          (6) The alcoholic beverage storage area shall remain locked at all times other than
             2874      those hours and days when alcoholic beverage sales are authorized by law.
             2875          (7) (a) Except as provided in Subsection (7)(b), an alcoholic [beverages] beverage may
             2876      be offered for sale, sold, served, or otherwise furnished by an on-premise banquet licensee
             2877      from 10 a.m. to 1 a.m. seven days a week:


             2878          (i) at a banquet; or
             2879          (ii) in connection with room service.
             2880          (b) Notwithstanding Subsection (7)(a), a sale or service of liquor may not occur at a
             2881      banquet or in connection with room service until after the polls are closed on the day of:
             2882          (i) a regular general election;
             2883          (ii) a regular primary election; or
             2884          (iii) a statewide special election.
             2885          (8) [Alcoholic beverages] An alcoholic beverage may not be sold, served, or otherwise
             2886      furnished to [any] a:
             2887          (a) minor;
             2888          (b) person actually, apparently, or obviously intoxicated;
             2889          (c) known habitual drunkard; or
             2890          (d) known interdicted person.
             2891          (9) (a) (i) Liquor may be sold only at [prices] a price fixed by the commission.
             2892          (ii) Liquor may not be sold at a discount [prices] price on any date or at any time.
             2893          (b) [Alcoholic beverages] An alcoholic beverage may not be sold at less than the cost
             2894      of the alcoholic beverage to the on-premise banquet licensee.
             2895          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             2896      over consumption or intoxication.
             2897          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             2898      hours of the on-premise banquet licensee's business day such as a "happy hour."
             2899          (e) [The sale or service of more] More than one alcoholic beverage may not be sold or
             2900      served for the price of a single alcoholic beverage [is prohibited].
             2901          (f) An on-premise banquet licensee may not engage in a public promotion involving or
             2902      offering free alcoholic beverages to the general public.
             2903          (10) [Alcoholic beverages] An alcoholic beverage may not be purchased for an
             2904      attendee by:
             2905          (a) the on-premise banquet licensee; or
             2906          (b) [any] an employee or agent of the on-premise banquet licensee.
             2907          (11) An attendee of a banquet may not bring [any] an alcoholic beverage into or onto,
             2908      or remove [any] an alcoholic beverage from the premises of a banquet.


             2909          (12) (a) Except as otherwise provided in this title, the sale and service of an alcoholic
             2910      [beverages] beverage by an on-premise banquet licensee at a banquet shall be made only for
             2911      consumption at the location of the banquet.
             2912          (b) The host of a banquet, an attendee, or [any other] a person other than the
             2913      on-premise banquet licensee or [its employees] an employee of the on-premise banquet
             2914      licensee, may not remove [any] an alcoholic beverage from the premises of the banquet.
             2915          (13) An on-premise banquet licensee employee shall remain at the banquet at all times
             2916      when an alcoholic [beverages are being] beverage is sold, served, or consumed at the banquet.
             2917          (14) (a) An on-premise banquet licensee may not leave [any] an unsold alcoholic
             2918      [beverages] beverage at the banquet following the conclusion of the banquet.
             2919          (b) At the conclusion of a banquet, the on-premise banquet licensee or [its employees]
             2920      an employee of the on-premise banquet licensee, shall:
             2921          (i) destroy [any] an opened and unused alcoholic [beverages] beverage that [are] is not
             2922      saleable, under conditions established by the department; and
             2923          (ii) return to the on-premise banquet licensee's approved locked storage area any:
             2924          (A) opened and unused alcoholic beverage that is saleable; and
             2925          (B) unopened [containers] container of an alcoholic [beverages] beverage.
             2926          (15) Except as provided in Subsection (14), [any] an open or sealed container of an
             2927      alcoholic [beverages] beverage not sold or consumed at a banquet:
             2928          (a) shall be stored by the on-premise banquet licensee in the on-premise banquet
             2929      licensee's approved locked storage area; and
             2930          (b) may be used at more than one banquet.
             2931          (16) An on-premise banquet licensee may not employ a minor to sell, serve, dispense,
             2932      or otherwise furnish an alcoholic [beverages] beverage in connection with the on-premise
             2933      banquet licensee's banquet and room service activities.
             2934          (17) An employee of an on-premise banquet licensee, while on duty, may not:
             2935          (a) consume an alcoholic beverage; or
             2936          (b) be intoxicated.
             2937          (18) An on-premise banquet licensee shall prominently display at [each] a banquet at
             2938      which an alcoholic [beverages are] beverage is sold or served:
             2939          (a) a copy of the licensee's on-premise banquet license; and


             2940          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             2941      drugs is a serious crime that is prosecuted aggressively in Utah."
             2942          (19) An on-premise banquet licensee may not on the premises of the hotel, resort
             2943      facility, sports center, or convention center:
             2944          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             2945      Chapter 10, Part 11, Gambling;
             2946          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             2947      Part 11, Gambling; or
             2948          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             2949      the risking of something of value for a return or for an outcome when the return or outcome is
             2950      based upon an element of chance, excluding the playing of an amusement device that confers
             2951      only an immediate and unrecorded right of replay not exchangeable for value.
             2952          (20) (a) An on-premise banquet licensee shall maintain accounting and such other
             2953      records and documents as the commission or department may require.
             2954          (b) An on-premise banquet licensee or person acting for the on-premise banquet
             2955      licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes [the
             2956      entries in any of the books] an entry in a book of account or other [documents] document of the
             2957      on-premise banquet licensee required to be made, maintained, or preserved by this title or the
             2958      rules of the commission for the purpose of deceiving the commission [or], the department, or
             2959      [any of their officials or employees] an official or employee of the commission or department,
             2960      is subject to:
             2961          (i) the suspension or revocation of the on-premise banquet license; and
             2962          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2963          (21) (a) For the purpose described in Subsection (21)(b), an on-premise banquet
             2964      licensee shall provide the department with advance notice of a scheduled banquet in
             2965      accordance with rules made by the commission in accordance with Title 63, Chapter 46a, Utah
             2966      Administrative Rulemaking Act.
             2967          (b) The advance notice required by Subsection (21)(a) is required to provide any of the
             2968      following the opportunity to conduct a random inspection of a banquet:
             2969          (i) an authorized representative of the commission or the department; or
             2970          (ii) a law enforcement officer.


             2971          (22) An on-premise banquet licensee shall maintain at least 50% of its total annual
             2972      banquet gross receipts from the sale of food, not including:
             2973          (a) mix for an alcoholic [beverages] beverage; and
             2974          (b) [charges] a charge in connection with the service of an alcoholic [beverages]
             2975      beverage.
             2976          (23) A person may not transfer an on-premise banquet license from one business
             2977      location to another without prior written approval of the commission.
             2978          (24) (a) An on-premise banquet licensee may not sell, transfer, assign, exchange,
             2979      barter, give, or attempt in any way to dispose of the license to [any other] another person,
             2980      whether for monetary gain or not.
             2981          (b) An on-premise banquet license has no monetary value for the purpose of any type
             2982      of disposition.
             2983          (25) (a) Room service of an alcoholic [beverages] beverage to a guest room of a hotel
             2984      or resort facility shall be provided in person by an on-premise banquet licensee employee only
             2985      to an adult guest in the guest room.
             2986          (b) [Alcoholic beverages] An alcoholic beverage may not be left outside a guest room
             2987      for retrieval by a guest.
             2988          (c) An on-premise banquet licensee may only provide an alcoholic [beverages]
             2989      beverage for room service in a sealed [containers] container.
             2990          (26) An on-premise banquet licensee or an employee of the on-premise banquet
             2991      licensee may not knowingly allow a person on a banquet location of a hotel, resort facility,
             2992      sports center, or convention center to, in violation of Title 58, Chapter 37, Utah Controlled
             2993      Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             2994          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             2995      58-37-2 ; or
             2996          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             2997      Section 58-37a-3 .
             2998          Section 35. Section 32A-5-101 is amended to read:
             2999           32A-5-101. Commission's power to license private clubs -- Limitations.
             3000          (1) Before a private club may sell or allow the consumption of alcoholic beverages on
             3001      its premises, the private club shall first obtain a license from the commission as provided in


             3002      this chapter.
             3003          (2) The commission may grant private club licenses to social clubs, recreational,
             3004      athletic, or kindred associations that desire to maintain premises upon which alcoholic
             3005      beverages may be stored, sold, served, and consumed.
             3006          (3) At the time the commission grants a private club license the commission shall
             3007      designate whether the private club license qualifies as a class A, B, C, or D license as defined
             3008      in Subsections (3)(a) through (d).
             3009          (a) A "class A licensee" is a private club licensee that:
             3010          (i) meets the requirements of this chapter;
             3011          (ii) owns, maintains, or operates a substantial recreational facility in conjunction with a
             3012      club house such as:
             3013          (A) a golf course; or
             3014          (B) a tennis facility;
             3015          (iii) has at least 50% of the total membership having:
             3016          (A) full voting rights; and
             3017          (B) an equal share of the equity of the club; and
             3018          (iv) if there is more than one class of membership, has at least one class of membership
             3019      that entitles each member in that class to:
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