First Substitute S.B. 187

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Mon, Mar 9, 2009 at 4:20 PM by rday. --> This document includes House Floor Amendments incorporated into the bill on Wed, Mar 11, 2009 at 8:42 PM by ddonat. -->

Senator John L. Valentine proposes the following substitute bill:

1 ALCOHOL AMENDMENTS
2 2009 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: John L. Valentine
5 House Sponsor: Gregory H. Hughes
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Alcoholic Beverage Control Act.
10 Highlighted Provisions:
11 This bill:
12 . amends definitional provisions;
13 . removes requirements related to state labels and markings;
14 . prohibits tampering with a package of an alcoholic beverage;
15 . addresses the nature of an adjudicative proceeding as a civil action including the
16 burden of proof and the general applicability of mens rea requirements;
17 . makes procedural clarifications for administrative actions;
18 . provides for electronic verification of proof of age by certain club licensees;
19 . removes restrictions related to election days;
20 . addresses quotas;
21 . addresses proximity for a restaurant liquor or limited restaurant license;
22 . addresses dispensing, storage, and bar structures for a restaurant;
23 . changes the insurance and liability limits related to dramshop;
24 . modifies the definition of a "convention center" and provides for limited
25 grandfathering;

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- 2 - 26 . creates a resort license including:
27 . defining terms;
28 . providing for licensing, including the creation of sublicenses;
29 . establishing a resort spa sublicense;
30 . imposing operational requirements for a resort license;
31 . addressing the application of operational requirements to a sublicense;
32 . providing for enforcement with relation to a resort license or a sublicense;
33 . addressing the application of the Nuisance Licensee Act to a resort license or
34 sublicense;
35 . providing for the enforcement of criminal penalties; and
36 . expanding protections for employees to encompass employees of a resort
37 licensee;
38 . establishes requirements for renting or leasing a club license premises;
39 . clarifies the application of criminal procedures, principles, and penalties;
40 . addresses training requirements for law enforcement officers;
41 . expands licenses subject to protections for employees who exercise judgment;
42 . provides for a study of penalties related to minors; and
43 . makes technical and conforming changes.
44 Monies Appropriated in this Bill:
45 None
46 Other Special Clauses:
47 This bill provides an effective date.
48 This bill provides revisor instructions.
49 This bill coordinates with H.B. 349, Heavy Beer Amendments, to merge substantive
50 amendments.
51 Utah Code Sections Affected:
52 AMENDS:
53 11-10-1, as last amended by Laws of Utah 1990, Chapter 23
54 26-38-2, as last amended by Laws of Utah 2006, Chapter 202
55 26-38-3, as last amended by Laws of Utah 2007, Chapter 20
56 32A-1-105, as last amended by Laws of Utah 2008, Chapters 317, 322, and 391

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- 3 - 57 32A-1-107, as last amended by Laws of Utah 2006, Chapter 162
58 32A-1-109, as last amended by Laws of Utah 2003, Chapter 314
59 32A-1-115, as last amended by Laws of Utah 2008, Chapter 382
60 32A-1-119, as last amended by Laws of Utah 2008, Chapters 317, 382, and 391
61 32A-1-119.5, as enacted by Laws of Utah 2008, Chapter 317
62 32A-1-603, as last amended by Laws of Utah 2008, Chapter 382
63 32A-2-103, as last amended by Laws of Utah 2007, Chapter 329
64 32A-3-106, as last amended by Laws of Utah 2008, Chapter 266
65 32A-4-101, as last amended by Laws of Utah 2008, Chapter 391
66 32A-4-102, as last amended by Laws of Utah 2008, Chapter 391
67 32A-4-106, as last amended by Laws of Utah 2008, Chapters 266 and 391
68 32A-4-202, as last amended by Laws of Utah 2004, Chapter 268
69 32A-4-302, as last amended by Laws of Utah 2008, Chapter 391
70 32A-4-303, as last amended by Laws of Utah 2008, Chapter 391
71 32A-4-307, as last amended by Laws of Utah 2008, Chapters 266 and 391
72 32A-4-401, as last amended by Laws of Utah 2008, Chapter 391
73 32A-4-402, as last amended by Laws of Utah 2008, Chapter 391
74 32A-5-101, as last amended by Laws of Utah 2008, Chapter 391
75 32A-5-102, as last amended by Laws of Utah 2008, Chapter 391
76 32A-5-103 (Effective 07/01/09), as last amended by Laws of Utah 2008, Chapters 26
77 and 382
78 32A-5-104, as last amended by Laws of Utah 2008, Chapter 391
79 32A-5-106, as renumbered and amended by Laws of Utah 1990, Chapter 23
80 32A-5-107, as last amended by Laws of Utah 2008, Chapters 266 and 391
81 32A-9-103, as last amended by Laws of Utah 2008, Chapter 382
82 32A-10-201, as last amended by Laws of Utah 2008, Chapter 391
83 32A-10-202, as last amended by Laws of Utah 2008, Chapter 391
84 32A-12-101, as renumbered and amended by Laws of Utah 1990, Chapter 23
85 32A-12-102, as last amended by Laws of Utah 2004, Chapter 268
86 32A-12-104, as last amended by Laws of Utah 2007, Chapter 322
87 32A-12-209.5, as last amended by Laws of Utah 2008, Chapter 3

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- 4 - 88 32A-12-212, as last amended by Laws of Utah 2008, Chapter 391
89 32A-12-213, as last amended by Laws of Utah 2007, Chapter 284
90 32A-12-219, as renumbered and amended by Laws of Utah 1990, Chapter 23
91 32A-12-222, as last amended by Laws of Utah 2008, Chapter 391
92 32A-12-301, as last amended by Laws of Utah 2008, Chapter 391
93 32A-14a-102, as last amended by Laws of Utah 2008, Chapter 3
94 32A-14a-103, as enacted by Laws of Utah 2000, Chapter 197
95 53-10-305, as last amended by Laws of Utah 2000, Chapter 1
96 ENACTS:
97 32A-1-304.5, Utah Code Annotated 1953
98 32A-4a-101, Utah Code Annotated 1953
99 32A-4a-102, Utah Code Annotated 1953
100 32A-4a-201, Utah Code Annotated 1953
101 32A-4a-202, Utah Code Annotated 1953
102 32A-4a-203, Utah Code Annotated 1953
103 32A-4a-204, Utah Code Annotated 1953
104 32A-4a-205, Utah Code Annotated 1953
105 32A-4a-301, Utah Code Annotated 1953
106 32A-4a-302, Utah Code Annotated 1953
107 32A-4a-303, Utah Code Annotated 1953
108 32A-4a-304, Utah Code Annotated 1953
109 32A-4a-305, Utah Code Annotated 1953
110 32A-4a-401, Utah Code Annotated 1953
111 32A-4a-402, Utah Code Annotated 1953
112 32A-4a-501, Utah Code Annotated 1953
113 32A-4a-502, Utah Code Annotated 1953
114 32A-4a-503, Utah Code Annotated 1953
115 32A-5-109, Utah Code Annotated 1953
116 REPEALS:
117 32A-12-218, as last amended by Laws of Utah 2003, Chapter 314
118 Uncodified Material Affected:

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- 5 - 119 ENACTS UNCODIFIED MATERIAL
120
121 Be it enacted by the Legislature of the state of Utah:
122 Section 1. Section 11-10-1 is amended to read:
123 11-10-1. Business license required -- Authorization for issuance, denial,
124 suspension, or revocation by local authority.
125 (1) As used in this chapter, ["club," "local authority," "restaurant," and "person"] the
126 following have the meaning set forth in Section 32A-1-105 [.]:
127 (a) "club licensee";
128 (b) "local authority";
129 (c) "person"; and
130 (d) "restaurant."
131 (2) A person may not operate an association, restaurant, club license, or similar
132 business that allows customers, members, guests, [visitors,] or other persons to possess or
133 consume alcoholic beverages on the premises of the club licensee, association, restaurant, or
134 similar business premises without a business license.
135 (3) Any local authority may issue a business license to any person who owns or
136 operates an association, restaurant, club license premise, or similar business that allows the
137 customers, members, guests, [visitors,] or other persons to hold, store, possess, or consume
138 alcoholic beverages on the premises. This license does not permit any person to hold, store,
139 possess, or consume alcoholic beverages on the premises other than as provided in Title 32A,
140 [the] Alcoholic Beverage Control Act.
141 (4) Any local authority may suspend or revoke a business license for a violation of
142 Title 32A, [the] Alcoholic Beverage Control Act.
143 (5) Each local authority shall set policy by written rules that establish criteria and
144 procedures for granting, denying, suspending, or revoking licenses issued under this chapter.
145 (6) A license issued under this section constitutes consent of the local authority within
146 the meaning of Title 32A, [the] Alcoholic Beverage Control Act.
147 Section 2. Section 26-38-2 is amended to read:
148 26-38-2. Definitions.
149 As used in this chapter:

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- 6 - 150 (1) "Place of public access" means any enclosed indoor place of business, commerce,
151 banking, financial service, or other service-related activity, whether publicly or privately owned
152 and whether operated for profit or not, to which persons not employed at the place of public
153 access have general and regular access or which the public uses, including:
154 (a) buildings, offices, shops, elevators, or restrooms;
155 (b) means of transportation or common carrier waiting rooms;
156 (c) restaurants, cafes, or cafeterias;
157 (d) taverns as defined in Section 32A-1-105 , or cabarets;
158 (e) shopping malls, retail stores, grocery stores, or arcades;
159 (f) libraries, theaters, concert halls, museums, art galleries, planetariums, historical
160 sites, auditoriums, or arenas;
161 (g) barber shops, hair salons, or laundromats;
162 (h) sports or fitness facilities;
163 (i) common areas of nursing homes, hospitals, resorts, hotels, motels, "bed and
164 breakfast" lodging facilities, and other similar lodging facilities, including the lobbies,
165 hallways, elevators, restaurants, cafeterias, other designated dining areas, and restrooms of any
166 of these;
167 (j) (i) any child care facility or program subject to licensure or certification under this
168 title, including those operated in private homes, when any child cared for under that license is
169 present; and
170 (ii) any child care, other than child care as defined in Section 26-39-102 , that is not
171 subject to licensure or certification under this title, when any child cared for by the provider,
172 other than the child of the provider, is present;
173 (k) public or private elementary or secondary school buildings and educational
174 facilities or the property on which those facilities are located;
175 (l) any building owned, rented, leased, or otherwise operated by a social, fraternal, or
176 religious organization when used solely by the organization members or their guests or
177 families;
178 (m) any facility rented or leased for private functions from which the general public is
179 excluded and arrangements for the function are under the control of the function sponsor;
180 (n) any workplace that is not a place of public access or a publicly owned building or

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- 7 - 181 office but has one or more employees who are not owner-operators of the business; [and]
182 (o) any area where the proprietor or manager of the area has posted a conspicuous sign
183 stating "no smoking", "thank you for not smoking", or similar statement[.]; and
184 (p) [any private] a club [licensed] licensee under Title 32A, Chapter 5, [Private] Club
185 [Liquor] Licenses.
186 (2) "Publicly owned building or office" means any enclosed indoor place or portion of
187 a place owned, leased, or rented by any state, county, or municipal government, or by any
188 agency supported by appropriation of, or by contracts or grants from, funds derived from the
189 collection of federal, state, county, or municipal taxes.
190 (3) "Smoking" means the possession of any lighted tobacco product in any form.
191 Section 3. Section 26-38-3 is amended to read:
192 26-38-3. Restriction on smoking in public places and in specified places --
193 Exceptions.
194 (1) Except as provided in Subsection (2), smoking is prohibited in all enclosed indoor
195 places of public access and publicly owned buildings and offices.
196 (2) Subsection (1) does not apply to:
197 (a) areas not commonly open to the public of owner-operated businesses having no
198 employees other than the owner-operator;
199 (b) guest rooms in hotels, motels, "bed and breakfast" lodging facilities, and other
200 similar lodging facilities, but smoking is prohibited under Subsection (1) in the common areas
201 of these facilities, including dining areas and lobby areas; and
202 [(c) before January 1, 2009, taverns, as defined in Section 32A-1-105 , that are:]
203 [(i) licensed on or before May 15, 2006; or]
204 [(ii) licensed on or before May 15, 2006 and after May 15, 2006 undergo a change in
205 ownership;]
206 [(d) before January 1, 2009, class D private clubs, as defined in Section 32A-5-101 ,
207 that are:]
208 [(i) licensed on or before May 15, 2006; or]
209 [(ii) licensed on or before May 15, 2006 and after May 15, 2006 undergo a change in
210 ownership;]
211 [(e) before January 1, 2009, class B private clubs, as defined in Section 32A-5-101

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- 8 - 212 that:]
213 [(i) are licensed:]
214 [(A) on or before May 15, 2006; or]
215 [(B) on or before May 15, 2006 and after May 15, 2006 undergo a change in
216 ownership; and]
217 [(ii) do not permit an individual under the age of 21 in the class B private club, unless
218 the individual is active military; and]
219 [(f)] (c) separate enclosed smoking areas:
220 (i) located in the passenger terminals of an international airport located in the city of
221 the first class;
222 (ii) vented directly to the outdoors; and
223 (iii) certified, by a heating, ventilation, and air conditioning engineer licensed by the
224 state, to prevent the drift of any smoke to any nonsmoking area of the terminal.
225 Section 4. Section 32A-1-105 is amended to read:
226 32A-1-105. Definitions.
227 As used in this title:
228 (1) "Airport lounge" means a place of business licensed to sell an alcoholic beverage,
229 at retail, for consumption on its premises located at an international airport with a United States
230 Customs office on the premises of the international airport.
231 (2) "Alcoholic beverage" means the following as the term is defined in this section:
232 (a) beer;
233 (b) flavored malt beverage; and
234 (c) liquor, which [on or after October 1, 2008,] includes a flavored malt beverage.
235 (3) (a) "Alcoholic product" means a product that:
236 (i) contains at least .5% of alcohol by volume; and
237 (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
238 process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
239 in an amount greater than the amount prescribed in Subsection (3)(a)(i).
240 (b) "Alcoholic product" does not include any of the following common items that
241 otherwise come within the definition of an alcoholic product:
242 (i) except as provided in Subsection (3)(c), extract;

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- 9 - 243 (ii) vinegar;
244 (iii) cider;
245 (iv) essence;
246 (v) tincture;
247 (vi) food preparation; or
248 (vii) an over-the-counter drug or medicine.
249 (c) An extract containing alcohol obtained by distillation is regulated as an alcoholic
250 product when it is used as a flavoring in the manufacturing of an alcoholic product.
251 (4) (a) ["Bar"] Except as provided in Subsection (4)(b), "bar" means a counter or
252 similar structure:
253 [(a)] (i) at which an alcoholic beverage or an alcoholic product is:
254 [(i)] (A) stored; or
255 [(ii)] (B) dispensed; or
256 [(b)] (ii) from which an alcoholic beverage is served.
257 (b) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
258 3, Limited Restaurant Licenses, "bar structure" means a surface or structure on the premises of
259 a restaurant if on or at any place of the surface or structure an alcoholic beverage or alcoholic
260 product is:
261 (i) stored; or
262 (ii) dispensed.
263 (5) (a) Subject to Subsection (5)(d), "beer" means a product that:
264 (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
265 volume or 3.2% by weight; and
266 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
267 (b) Beer may or may not contain hops or other vegetable products.
268 (c) Beer includes a product that:
269 (i) contains alcohol in the percentages described in Subsection (5)(a); and
270 (ii) is referred to as:
271 (A) beer;
272 (B) ale;
273 (C) porter;

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- 10 - 274 (D) stout;
275 (E) lager; or
276 (F) a malt or malted beverage.
277 (d) [On or after October 1, 2008, "beer"] "Beer" does not include a flavored malt
278 beverage.
279 (6) (a) "Beer retailer" means a business that is:
280 (i) engaged, primarily or incidentally, in the retail sale of beer to a patron, whether for
281 consumption on or off the business premises; and
282 (ii) licensed to sell beer by:
283 (A) the commission;
284 (B) a local authority; or
285 (C) both the commission and a local authority.
286 (b) (i) "Off-premise beer retailer" means a business that is engaged in the retail sale of
287 beer to a patron for consumption off the beer retailer's premises.
288 (ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
289 (c) "On-premise beer retailer" means a business that is engaged in the sale of beer to a
290 patron for consumption on the beer retailer's premises, regardless of whether the business sells
291 beer for consumption off the beer retailer's premises.
292 (7) "Billboard" means a public display used to advertise including:
293 (a) a light device;
294 (b) a painting;
295 (c) a drawing;
296 (d) a poster;
297 (e) a sign;
298 (f) a signboard; or
299 (g) a scoreboard.
300 (8) "Brewer" means a person engaged in manufacturing:
301 (a) beer;
302 (b) heavy beer; or
303 (c) a flavored malt beverage.
304 (9) "Cash bar" means the service of an alcoholic beverage:

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- 11 - 305 (a) at:
306 (i) a banquet; or
307 (ii) a temporary event for which a permit is issued under this title; and
308 (b) if an attendee at the banquet or temporary event is charged for the alcoholic
309 beverage.
310 (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
311 a bus company to a group of persons pursuant to a common purpose:
312 (a) under a single contract;
313 (b) at a fixed charge in accordance with the bus company's tariff; and
314 (c) for the purpose of giving the group of persons the exclusive use of the passenger
315 bus, coach, or other motor vehicle and a driver to travel together to one or more specified
316 destinations.
317 (11) "Church" means a building:
318 (a) set apart for the purpose of worship;
319 (b) in which religious services are held;
320 (c) with which clergy is associated; and
321 (d) which is tax exempt under the laws of this state.
322 (12) ["Club" and "private club"] "Club licensee" means [any of the following organized
323 primarily for the benefit of its members:] a person licensed under Chapter 5, Club Licenses.
324 [(a) a social club;]
325 [(b) a recreational association;]
326 [(c) a fraternal association;]
327 [(d) an athletic association; or]
328 [(e) a kindred association.]
329 (13) "Commission" means the Alcoholic Beverage Control Commission.
330 (14) "Community location" means:
331 (a) a public or private school;
332 (b) a church;
333 (c) a public library;
334 (d) a public playground; or
335 (e) a public park.

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- 12 - 336 (15) "Community location governing authority" means:
337 (a) the governing body of the community location; or
338 (b) if the commission does not know who is the governing body of a community
339 location, a person who appears to the commission to have been given on behalf of the
340 community location authority to prohibit an activity at the community location.
341 (16) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
342 3, Limited Restaurant Licenses:
343 (a) Subject to Subsection (16)(b), "counter" means a surface or structure in a dining
344 area of a restaurant where seating is provided to a patron for service of food.
345 (b) "Counter" does not include a surface or structure if on or at any point of the surface
346 or structure an alcoholic beverage or alcoholic product is:
347 (i) stored; or
348 (ii) dispensed.
349 [(16)] (17) "Department" means the Department of Alcoholic Beverage Control.
350 [(17)] (18) "Disciplinary proceeding" means an adjudicative proceeding permitted
351 under this title:
352 (a) against:
353 (i) a permittee;
354 (ii) a licensee;
355 (iii) a manufacturer;
356 (iv) a supplier;
357 (v) an importer;
358 (vi) an out-of-state brewer holding a certificate of approval under Section 32A-8-101 ;
359 or
360 (vii) an officer, employee, or agent of:
361 (A) a person listed in Subsections [(17)] (18)(a)(i) through (vi); or
362 (B) a package agent; and
363 (b) that is brought on the basis of a violation of this title.
364 [(18)] (19) "Director," unless the context requires otherwise, means the director
365 appointed under Section 32A-1-108 .
366 (20) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part

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- 13 - 367 3, Limited Restaurant Licenses, "dispense" means:
368 (a) drawing of an alcoholic beverage or alcoholic product:
369 (i) from an area where it is stored; or
370 (ii) as provided in Subsection 32A-4-106 (7)(e)(ii)(B) or 32A-4-307 (7)(e)(ii)(B); and
371 (b) using the alcoholic beverage or alcoholic product described in Subsection (20)(a)
372 on the premises of the restaurant to mix or prepare an alcoholic beverage for service to a patron
373 of the restaurant.
374 [(19)] (21) "Distressed merchandise" means an alcoholic beverage in the possession of
375 the department that is saleable, but for some reason is unappealing to the public.
376 [(20)] (22) "Flavored malt beverage" means a beverage:
377 (a) that contains at least .5% alcohol by volume;
378 (b) that is treated by processing, filtration, or another method of manufacture that is not
379 generally recognized as a traditional process in the production of a beer as described in 27
380 C.F.R. Sec. 25.55;
381 (c) to which is added a flavor or other ingredient containing alcohol, except for a hop
382 extract; and
383 (d) (i) for which the producer is required to file a formula for approval with the United
384 States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. Sec. 25.55; or
385 (ii) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
386 [(21)] (23) "Guest" means [a person accompanied by an active member or visitor of a
387 club who enjoys only those privileges derived from the host for the duration of the visit to the
388 club] an individual who meets the requirements of Subsection 32A-5-107 (1)(i) or (j).
389 [(22)] (24) (a) "Heavy beer" means a product that:
390 (i) contains more than 4% alcohol by volume; and
391 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
392 (b) "Heavy beer" is considered "liquor" for the purposes of this title.
393 [(23)] (25) "Hosted bar" means the service of an alcoholic beverage:
394 (a) without charge; and
395 (b) at a:
396 (i) banquet; or
397 (ii) privately hosted event.

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- 14 - 398 [(24)] (26) "Identification card" means an identification card issued under Title 53,
399 Chapter 3, Part 8, Identification Card Act.
400 [(25)] (27) "Interdicted person" means a person to whom the sale, gift, or provision of
401 an alcoholic beverage is prohibited by:
402 (a) law; or
403 (b) court order.
404 [(26)] (28) "Intoxicated" means that [to a degree that is unlawful under Section
405 76-9-701 ] a person [is under the influence of]:
406 (a) is significantly impaired as to the person's mental or physical functions as a result of
407 the use of:
408 [(a)] (i) an alcoholic beverage;
409 [(b)] (ii) a controlled substance;
410 [(c)] (iii) a substance having the property of releasing toxic vapors; or
411 [(d)] (iv) a combination of Subsections [(26)] (28)(a)(i) through [(c).] (iii); and
412 (b) exhibits plain and easily observed outward manifestations of behavior or physical
413 signs produced by the over consumption of an alcoholic beverage.
414 (29) "Invitee" is as defined in Section 32A-4a-102 .
415 [(27)] (30) "Licensee" means a person [issued] granted a license by the commission to
416 sell, manufacture, store, or allow consumption of an alcoholic beverage on premises owned or
417 controlled by the person.
418 [(28)] (31) "Limousine" means a motor vehicle licensed by the state or a local
419 authority, other than a bus or taxicab:
420 (a) in which the driver and a passenger are separated by a partition, glass, or other
421 barrier; and
422 (b) that is provided by a company to one or more individuals at a fixed charge in
423 accordance with the company's tariff for the purpose of giving the one or more individuals the
424 exclusive use of the limousine and a driver to travel to one or more specified destinations.
425 [(29)] (32) (a) (i) "Liquor" means alcohol, or an alcoholic, spirituous, vinous,
426 fermented, malt, or other liquid, or combination of liquids, a part of which is spirituous,
427 vinous, or fermented, or other drink, or drinkable liquid that:
428 (A) contains at least .5% alcohol by volume; and

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- 15 - 429 (B) is suitable to use for beverage purposes.
430 (ii) [On or after October 1, 2008, "liquor"] "Liquor" includes a flavored malt beverage.
431 (b) "Liquor" does not include a beverage defined as a beer.
432 [(30)] (33) "Local authority" means:
433 (a) the governing body of the county if the premises are located in an unincorporated
434 area of a county; or
435 (b) the governing body of the city or town if the premises are located in an incorporated
436 city or a town.
437 [(31)] (34) "Manufacture" means to distill, brew, rectify, mix, compound, process,
438 ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
439 others.
440 [(32)] (35) "Member" means [a person] an individual who, after paying regular dues,
441 has full privileges of [a] an equity club licensee or fraternal club [under this title] licensee, as
442 defined in Section 32A-5-101 .
443 [(33)] (36) (a) "Military installation" means a base, air field, camp, post, station, yard,
444 center, or homeport facility for a ship:
445 (i) (A) under the control of the United States Department of Defense; or
446 (B) of the National Guard;
447 (ii) that is located within the state; and
448 (iii) including a leased facility.
449 (b) "Military installation" does not include a facility used primarily for:
450 (i) civil works;
451 (ii) a rivers and harbors project; or
452 (iii) a flood control project.
453 [(34)] (37) "Minor" means an individual under the age of 21 years.
454 [(35)] (38) "Nude," "nudity," or "state of nudity" means:
455 (a) the appearance of:
456 (i) the nipple or areola of a female human breast;
457 (ii) a human genital;
458 (iii) a human pubic area; or
459 (iv) a human anus; or

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- 16 - 460 (b) a state of dress that fails to opaquely cover:
461 (i) the nipple or areola of a female human breast;
462 (ii) a human genital;
463 (iii) a human pubic area; or
464 (iv) a human anus.
465 [(36)] (39) "Outlet" means a location other than a state store or package agency where
466 an alcoholic beverage is sold pursuant to a license [issued] granted by the commission.
467 [(37)] (40) "Package" means any of the following containing liquor:
468 (a) a container;
469 (b) a bottle;
470 (c) a vessel; or
471 (d) other receptacle.
472 [(38)] (41) "Package agency" means a retail liquor location operated:
473 (a) under a contractual agreement with the department; and
474 (b) by a person:
475 (i) other than the state; and
476 (ii) who is authorized by the commission to sell package liquor for consumption off the
477 premises of the package agency.
478 [(39)] (42) "Package agent" means a person permitted by the commission to operate a
479 package agency pursuant to a contractual agreement with the department to sell liquor from
480 premises that the package agent shall provide and maintain.
481 [(40)] (43) "Permittee" means a person issued a permit by the commission to perform
482 an act or exercise a privilege as specifically granted in the permit.
483 [(41)] (44) "Person" means an individual, partnership, firm, corporation, limited
484 liability company, association, business trust, or other form of business enterprise, including a
485 receiver or trustee, and the plural as well as the singular number, unless the intent to give a
486 more limited meaning is disclosed by the context.
487 [(42)] (45) "Premises" means a building, enclosure, room, or equipment used in
488 connection with the sale, storage, service, manufacture, distribution, or consumption of an
489 alcoholic product, unless otherwise defined in this title or in the rules adopted by the
490 commission.

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- 17 - 491 [(43)] (46) "Prescription" means a writing in legal form, signed by a physician or
492 dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
493 [(44)] (47) (a) "Privately hosted event" or "private social function" means a specific
494 social, business, or recreational event:
495 (i) for which an entire room, area, or hall is leased or rented in advance by an identified
496 group; and
497 (ii) that is limited in attendance to people who are specifically designated and their
498 guests.
499 (b) "Privately hosted event" and "private social function" does not include an event to
500 which the general public is invited, whether for an admission fee or not.
501 [(45)] (48) (a) "Proof of age" means:
502 (i) an identification card;
503 (ii) an identification that:
504 (A) is substantially similar to an identification card;
505 (B) is issued in accordance with the laws of a state other than Utah in which the
506 identification is issued;
507 (C) includes date of birth; and
508 (D) has a picture affixed;
509 (iii) a valid driver license certificate that:
510 (A) includes date of birth;
511 (B) has a picture affixed; and
512 (C) is issued:
513 (I) under Title 53, Chapter 3, Uniform Driver License Act; or
514 (II) in accordance with the laws of the state in which it is issued;
515 (iv) a military identification card that:
516 (A) includes date of birth; and
517 (B) has a picture affixed; or
518 (v) a valid passport.
519 (b) "Proof of age" does not include a driving privilege card issued in accordance with
520 Section 53-3-207 .
521 [(46)] (49) (a) "Public building" means a building or permanent structure owned or

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- 18 - 522 leased by the state, a county, or local government entity that is used for:
523 (i) public education;
524 (ii) transacting public business; or
525 (iii) regularly conducting government activities.
526 (b) "Public building" does not mean or refer to a building owned by the state or a
527 county or local government entity when the building is used by a person, in whole or in part,
528 for a proprietary function.
529 [(47)] (50) "Representative" means an individual who is compensated by salary,
530 commission, or other means for representing and selling an alcoholic beverage product of a
531 manufacturer, supplier, or importer of liquor including:
532 (a) wine;
533 (b) heavy beer; or
534 (c) [on or after October 1, 2008,] a flavored malt beverage.
535 [(48)] (51) "Residence" means a person's principal place of abode within Utah.
536 (52) "Resident," in relation to a resort, is as defined in Section 32A-4a-102 .
537 (53) "Resort" is as defined in Section 32A-4a-102 .
538 [(49)] (54) "Restaurant" means a business establishment:
539 (a) where a variety of foods [is] are prepared and complete meals are served to the
540 general public;
541 (b) located on a premises having adequate culinary fixtures for food preparation and
542 dining accommodations; and
543 (c) that is engaged primarily in serving meals to the general public.
544 [(50)] (55) "Retailer" means a person engaged in the sale or distribution of an alcoholic
545 beverage to a consumer.
546 [(51)] (56) (a) "Sample" includes:
547 (i) a department sample; and
548 (ii) an industry representative sample.
549 (b) "Department sample" means liquor that is placed in the possession of the
550 department for testing, analysis, and sampling including:
551 (i) wine;
552 (ii) heavy beer; or

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- 19 - 553 (iii) [on or after October 1, 2008,] a flavored malt beverage.
554 (c) "Industry representative sample" means liquor that is placed in the possession of the
555 department:
556 (i) for testing, analysis, and sampling by a local industry representative on the premises
557 of the department to educate the local industry representative of the quality and characteristics
558 of the product; and
559 (ii) including:
560 (A) wine;
561 (B) heavy beer; or
562 (C) [on or after October 1, 2008,] a flavored malt beverage.
563 [(52)] (57) (a) "School" means a building used primarily for the general education of
564 minors.
565 (b) "School" does not include:
566 (i) a nursery school;
567 (ii) an infant day care center; or
568 (iii) a trade or technical school.
569 [(53)] (58) "Sell," "sale," and "to sell" means a transaction, exchange, or barter
570 whereby, for consideration, an alcoholic beverage is either directly or indirectly transferred,
571 solicited, ordered, delivered for value, or by a means or under a pretext is promised or
572 obtained, whether done by a person as a principal, proprietor, or as an agent, servant, or
573 employee, unless otherwise defined in this title or the rules made by the commission.
574 [(54)] (59) "Seminude," "seminudity," or "state of seminudity" means a state of dress in
575 which opaque clothing covers no more than:
576 (a) the nipple and areola of the female human breast in a shape and color other than the
577 natural shape and color of the nipple and areola; and
578 (b) the human genitals, pubic area, and anus:
579 (i) with no less than the following at its widest point:
580 (A) four inches coverage width in the front of the human body; and
581 (B) five inches coverage width in the back of the human body; and
582 (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
583 [(55)] (60) "Sexually oriented entertainer" means a person who while in a state of

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- 20 - 584 seminudity appears at or performs:
585 (a) for the entertainment of one or more patrons;
586 (b) on the premises of:
587 (i) a [class D private] social club licensee as defined in [Subsection] Section
588 32A-5-101 [(3)]; or
589 (ii) a tavern;
590 (c) on behalf of or at the request of the licensee described in Subsection [(55)] (60)(b);
591 (d) on a contractual or voluntary basis; and
592 (e) whether or not the person is designated:
593 (i) an employee of the licensee described in Subsection [(55)] (60)(b);
594 (ii) an independent contractor of the licensee described in Subsection [(55)] (60)(b);
595 (iii) an agent of the licensee described in Subsection [(55)] (60)(b); or
596 (iv) otherwise of the licensee described in Subsection [(55)] (60)(b).
597 [(56)] (61) "Small brewer" means a brewer who manufactures less than 60,000 barrels
598 of beer, heavy beer, and flavored malt beverages per year.
599 [(57)] (62) (a) "Spirituous liquor" means liquor that is distilled.
600 (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
601 U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
602 [(58) (a) "State label" means the official label designated by the commission affixed to
603 a liquor container sold in the state.]
604 [(b) "State label" includes the department identification mark and inventory control
605 number.]
606 [(59)] (63) (a) "State store" means a facility for the sale of package liquor:
607 (i) located on premises owned or leased by the state; and
608 (ii) operated by a state employee.
609 (b) "State store" does not apply to a:
610 (i) licensee;
611 (ii) permittee; or
612 (iii) package agency.
613 (64) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
614 3, Limited Restaurant Licenses:

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- 21 - 615 (a) "Storage area" means an area on the premises of a restaurant where a licensee
616 stores an alcoholic beverage or alcoholic product.
617 (b) "Store" means to place or maintain in a location an alcoholic beverage or alcoholic
618 product from which a person draws to prepare an alcoholic beverage for service to a patron of
619 the restaurant, except as provided in Subsection 32A-4-106 (7)(e)(ii)(B) or
620 32A-4-307 (7)(e)(ii)(B).
621 (65) "Sublicense" is as defined in Section 32A-4a-102 .
622 [(60)] (66) "Supplier" means a person selling an alcoholic beverage to the department.
623 [(61)] (67) (a) "Tavern" means a business establishment that is:
624 (i) engaged primarily in the retail sale of beer to a public patron for consumption on the
625 establishment's premises; and
626 (ii) licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
627 (b) "Tavern" includes the following if the revenue from the sale of beer exceeds the
628 revenue of the sale of food, although food need not be sold in the establishment:
629 (i) a beer bar;
630 (ii) a parlor;
631 (iii) a lounge;
632 (iv) a cabaret; or
633 (v) a nightclub.
634 [(62)] (68) "Temporary domicile" means the principal place of abode within Utah of a
635 person who does not have a present intention to continue residency within Utah permanently or
636 indefinitely.
637 [(63)] (69) "Unsaleable liquor merchandise" means merchandise that:
638 (a) is unsaleable because the merchandise is:
639 (i) unlabeled;
640 (ii) leaky;
641 (iii) damaged;
642 (iv) difficult to open; or
643 (v) partly filled;
644 (b) is in a container:
645 (i) having faded labels or defective caps or corks;

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- 22 - 646 (ii) in which the contents are:
647 (A) cloudy;
648 (B) spoiled; or
649 (C) chemically determined to be impure; or
650 (iii) that contains:
651 (A) sediment; or
652 (B) a foreign substance; or
653 (c) is otherwise considered by the department as unfit for sale.
654 [(64) "Visitor" means an individual that in accordance with Section 32A-5-107 holds
655 limited privileges in a private club by virtue of a visitor card.]
656 [(65)] (70) "Warehouser" means a person, other than a licensed manufacturer, engaged
657 in the importation for sale, storage, or distribution of liquor regardless of amount.
658 [(66)] (71) (a) "Wholesaler" means a person engaged in the importation for sale, or in
659 the sale of beer in wholesale or jobbing quantities to one or more retailers.
660 (b) Notwithstanding Subsection [(66)] (71)(a), "wholesaler" does not include a small
661 brewer selling beer manufactured by that brewer.
662 [(67)] (72) (a) "Wine" means an alcoholic beverage obtained by the fermentation of the
663 natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
664 another ingredient is added.
665 (b) "Wine" is considered "liquor" for purposes of this title, except as otherwise
666 provided in this title.
667 Section 5. Section 32A-1-107 is amended to read:
668 32A-1-107. Powers and duties of the commission.
669 (1) The commission shall:
670 (a) act as a general policymaking body on the subject of alcoholic product control;
671 (b) adopt and issue policies, directives, rules, and procedures;
672 (c) set policy by written rules that establish criteria and procedures for:
673 (i) granting, denying, suspending, or revoking [permits, licenses, certificates of
674 approval, and package agencies] a permit, license, certificate of approval, or package agency;
675 (ii) controlling liquor merchandise inventory including:
676 (A) listing and delisting [products] a product;

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- 23 - 677 (B) the procedures for testing a new [products] product;
678 (C) purchasing policy;
679 (D) turnover requirements for a regularly coded [products] product to be continued;
680 and
681 (E) the disposition of discontinued, distressed, or unsaleable merchandise; and
682 (iii) determining the location of a state [stores, package agencies, and outlets] store,
683 package agency, or outlet;
684 (d) decide within the limits and under the conditions imposed by this title, the number
685 and location of state stores, package agencies, and outlets established in the state;
686 (e) issue, grant, deny, suspend, revoke, or not renew the following permits, licenses,
687 certificates of approval, and package agencies for the purchase, sale, storage, service,
688 manufacture, distribution, and consumption of an alcoholic [products] product:
689 (i) a package [agencies] agency;
690 (ii) a restaurant [licenses] license;
691 (iii) an airport lounge [licenses] license;
692 (iv) a limited restaurant [licenses] license;
693 (v) an on-premise banquet [licenses] license;
694 (vi) a resort license, under which four or more sublicenses may be included;
695 [(vi) private] (vii) a club [licenses] license;
696 [(vii)] (viii) an on-premise beer retailer [licenses] license;
697 [(viii)] (ix) a temporary special event beer [permits] permit;
698 [(ix)] (x) a special use [permits] permit;
699 [(x)] (xi) a single event [permits] permit;
700 [(xi)] (xii) a manufacturing [licenses] license;
701 [(xii)] (xiii) a liquor warehousing [licenses] license;
702 [(xiii)] (xiv) a beer wholesaling [licenses] license; and
703 [(xiv)] (xv) an out-of-state brewer [certificates] certificate of approval;
704 (f) fix prices at which [liquors are] liquor is sold that are the same at all state stores,
705 package agencies, and outlets;
706 (g) issue and distribute price lists showing the price to be paid by [purchasers] a
707 purchaser for each class, variety, or brand of liquor kept for sale by the department;

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- 24 - 708 (h) (i) require the director to follow sound management principles; and
709 (ii) require periodic reporting from the director to ensure that:
710 (A) sound management principles are being followed; and
711 (B) policies established by the commission are being observed;
712 (i) (i) receive, consider, and act in a timely manner upon [all] the reports,
713 recommendations, and matters submitted by the director to the commission; and
714 (ii) do [all] the things necessary to support the department in properly performing the
715 department's duties and responsibilities;
716 (j) obtain temporarily and for special purposes the services of [experts and persons] an
717 expert or person engaged in the practice of a profession or who possess any needed skills,
718 talents, or abilities if:
719 (i) considered expedient; and
720 (ii) approved by the governor;
721 (k) prescribe the duties of a departmental [officials] official authorized to assist the
722 commission in issuing [permits, licenses, certificates of approval, and package agencies] a
723 permit, license, certificate of approval, or package agency under this title;
724 (l) prescribe, consistent with this title, the fees payable for:
725 (i) [permits, licenses, certificates of approval, and package agencies] a permit, license,
726 certificate of approval, or package agency issued under this title; or
727 (ii) anything done or permitted to be done under this title;
728 (m) prescribe the conduct, management, and equipment of [any] premises upon which
729 an alcoholic [beverages] beverage may be sold, consumed, served, or stored;
730 (n) make rules governing the credit terms of beer sales to retailers within the state;
731 (o) require that each of the following, where required in this title, display in a
732 prominent place a sign in large letters stating: "Warning: Driving under the influence of alcohol
733 or drugs is a serious crime that is prosecuted aggressively in Utah.":
734 (i) a state store;
735 (ii) a permittee;
736 (iii) a licensee; and
737 (iv) a package agency; and
738 (p) subject to Subsection (4) and as provided in this title, impose fines against:

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- 25 - 739 (i) a permittee, licensee, certificate holder, or package agent described in Subsection
740 (1)(e); or
741 (ii) [any] an officer, employee, or agent of a permittee, licensee, certificate holder, or
742 package agent described in Subsection (1)(p)(i).
743 (2) The power of the commission to do the following is plenary, except as otherwise
744 provided by this title, and not subject to review:
745 (a) establish a state [stores] store;
746 (b) create a package [agencies] agency;
747 (c) grant authority to operate a package [agencies] agency; and
748 (d) grant or deny [permits, licenses, and certificates] a permit, license, or certificate of
749 approval.
750 (3) The commission may appoint a qualified hearing [examiners] examiner to conduct
751 [any] a suspension or revocation [hearings] hearing required by law.
752 (4) (a) In [any] a case [where] when the commission is given the power to suspend
753 [any ] a permit, license, certificate of approval, or package agency the commission may impose
754 a fine in addition to or in lieu of suspension.
755 (b) [Fines] A fine imposed may not exceed $25,000 in the aggregate for:
756 (i) [any] a single Notice of Agency Action; or
757 (ii) a single action against a package agency.
758 (c) The commission shall promulgate, by rule, a schedule setting forth a range of fines
759 for each violation.
760 Section 6. Section 32A-1-109 is amended to read:
761 32A-1-109. Powers and duties of the director.
762 Subject to the powers and responsibilities vested in the commission by this title the
763 director shall:
764 (1) prepare and propose to the commission general policies, directives, rules, and
765 procedures governing the administrative activities of the department, and may submit other
766 recommendations to the commission as the director considers in the interest of [its] the
767 commission's or the department's business;
768 (2) within the general policies, directives, rules, and procedures of the commission[,]:
769 (a) provide day-to-day direction, coordination, and delegation of responsibilities in the

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- 26 - 770 administrative activities of the department's business; and [promulgate]
771 (b) make internal department policies, directives, rules, and procedures relating to
772 department personnel matters, and the day-to-day operation of the department consistent with
773 those of the commission;
774 (3) (a) appoint or employ personnel as considered necessary in the administration of
775 this title [and];
776 (b) prescribe the conditions of [their] employment[, define their] for the personnel
777 described in Subsection (3)(a);
778 (c) define the respective duties and powers[, fix their] for the personnel described in
779 Subsection (3)(a);
780 (d) fix the remuneration in accordance with Title 67, Chapter 19, Utah State Personnel
781 Management Act, for the personnel described in Subsection (3)(a); and
782 (e) designate those employees required to give [bonds] a bond and specify the bond
783 amounts;
784 (4) establish and secure adherence to a system of reports, controls, and performance in
785 [all] matters relating to personnel, security, department property management, and operation of
786 [department offices, warehouses, state stores, package agencies, and licensees;]:
787 (a) a department office;
788 (b) a warehouse;
789 (c) a state store;
790 (d) a package agency; and
791 (e) a licensee;
792 (5) within the policies, directives, rules, and procedures approved by the commission
793 and provisions of law, buy, import, keep for sale, sell and control the sale, storage, service,
794 transportation, and delivery of an alcoholic [products] product;
795 (6) prepare for commission approval:
796 (a) recommendations regarding the location, establishment, relocation, and closure of
797 [state stores and package agencies] a state store or package agency;
798 (b) recommendations regarding the issuance, suspension, nonrenewal, and revocation
799 of [licenses and permits] a license or permit;
800 (c) an annual [budgets] budget, proposed legislation, and reports as required by law and

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- 27 - 801 sound business principles;
802 (d) plans for reorganizing divisions of the department and [their] the functions of the
803 divisions;
804 (e) manuals containing [all] commission and department policies, directives, rules, and
805 procedures;
806 (f) an inventory control system;
807 (g) any other [reports and recommendations] report or recommendation as may be
808 requested by the commission;
809 (h) rules governing the credit terms of the sale of beer [sales] to a beer retailer
810 [licensees] licensee;
811 (i) rules governing the calibration, maintenance, and regulation of a calibrated metered
812 dispensing [systems] system;
813 (j) rules governing the posting of a list of types and brand names of liquor [being]
814 served through a calibrated metered dispensing [systems] system;
815 (k) price lists issued and distributed showing the price to be paid for each class, variety,
816 or brand of liquor kept for sale at a state [stores, package agencies, and outlets] store, package
817 agency, or outlet;
818 (l) directives prescribing the books of account kept by the department and by a state
819 [stores, package agencies, and outlets;] store, package agency, or outlet; and
820 [(m) an official state label and the manner in which the label shall be affixed to every
821 package of liquor sold under this title; and]
822 [(n)] (m) a policy prescribing the manner of giving and serving [notices] a notice
823 required by this title or rules made under this title;
824 (7) make available through the department to any person, upon request, a copy of [any]
825 a policy or directive [promulgated] made by the director;
826 [(8) adopt internal departmental policies, directives, rules, and procedures relating to
827 department personnel matters and the day-to-day operation of the department that are
828 consistent with those of the commission;]
829 [(9)] (8) keep a current copy of [the manuals containing] a manual that contains the
830 rules and policies of the department and commission available for public inspection;
831 [(10)] (9) (a) after consultation with the governor, determine whether an alcoholic

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- 28 - 832 [products] product should not be sold, offered for sale, or otherwise furnished in an area of the
833 state during a period of emergency that is proclaimed by the governor to exist in that area; and
834 (b) issue [any] a necessary public [announcements and directives] announcement or
835 directive with respect to the determination described in Subsection [(10)] (9)(a); and
836 [(11)] (10) perform other duties required by the commission and by law.
837 Section 7. Section 32A-1-115 is amended to read:
838 32A-1-115. Alcoholic Beverage Enforcement and Treatment Restricted Account
839 -- Distribution.
840 (1) As used in this section:
841 (a) "Account" means the Alcoholic Beverage Enforcement and Treatment Restricted
842 Account created in this section.
843 (b) "Alcohol-related offense" means:
844 (i) a violation of:
845 (A) Section 41-6a-502 ; or
846 (B) an ordinance that complies with the requirements of:
847 (I) Subsection 41-6a-510 (1); or
848 (II) Section 76-5-207 ; or
849 (ii) an offense involving the:
850 (A) illegal sale of alcohol;
851 (B) illegal distribution of alcohol;
852 (C) illegal transportation of alcohol;
853 (D) illegal possession of alcohol; or
854 (E) illegal consumption of alcohol.
855 (c) "Annual conviction time period" means the time period that:
856 (i) begins on July 1 and ends on June 30; and
857 (ii) immediately precedes the fiscal year for which an appropriation under this section
858 is made.
859 (d) "Coordinating council" means the Utah Substance Abuse and Anti-Violence
860 Coordinating Council created in Section 63M-7-301 .
861 (e) "Municipality" means:
862 (i) a city; or

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- 29 - 863 (ii) a town.
864 (2) (a) There is created in the General Fund a restricted account called the "Alcoholic
865 Beverage Enforcement and Treatment Restricted Account."
866 (b) The account shall be funded from:
867 (i) amounts deposited by the state treasurer in accordance with Section 59-15-109 ;
868 (ii) any appropriations made to the account by the Legislature; and
869 (iii) interest described in Subsection (2)(c).
870 (c) Interest earned on the account shall be deposited into the account.
871 (d) (i) Consistent with the policies provided in Subsection 32A-1-104 (4)(b), the
872 revenues in the account shall be used for statewide public purposes including promoting the
873 reduction of the harmful effects of over consumption of alcoholic beverages by adults and
874 alcohol consumption by minors by funding exclusively programs or projects related to
875 prevention, treatment, detection, prosecution, and control of violations of this title and other
876 offenses in which alcohol is a contributing factor except as provided in Subsection (2)(d)(ii).
877 (ii) The portion distributed under this section to counties may also be used for the
878 confinement or treatment of persons arrested for or convicted of offenses in which alcohol is a
879 contributing factor.
880 (iii) [Any] A municipality or county entitled to receive [funds] monies shall use the
881 [funds] monies exclusively as required by this Subsection (2)(d).
882 (iv) The appropriations provided for under Subsection (3) are:
883 (A) intended to supplement the budget of the appropriate agencies of each municipality
884 and county within the state to enable the municipalities and counties to more effectively fund
885 the programs and projects described in this Subsection (2)(d); and
886 (B) not intended to replace [funds] monies that would otherwise be allocated for the
887 programs and projects in this Subsection (2)(d).
888 (3) (a) The revenues deposited into the account shall be distributed to municipalities
889 and counties:
890 (i) to the extent appropriated by the Legislature except that the Legislature shall
891 appropriate each fiscal year an amount equal to at least the amount deposited in the account in
892 accordance with Section 59-15-109 ; and
893 (ii) as provided in this Subsection (3).

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- 30 - 894 (b) The amount appropriated from the account shall be distributed as follows:
895 (i) 25% to municipalities and counties based upon the percentage of the state
896 population residing in each municipality and county;
897 (ii) 30% to municipalities and counties based upon each municipality's and county's
898 percentage of the statewide convictions for all alcohol-related offenses;
899 (iii) 20% to municipalities and counties based upon the percentage of all state stores,
900 package agencies, liquor licensees, and beer licensees in the state that are located in each
901 municipality and county; and
902 (iv) 25% to the counties for confinement and treatment purposes authorized by this
903 section based upon the percentage of the state population located in each county.
904 (c) (i) Except as provided in Subsection (3)(c)(iii), a municipality that does not have a
905 law enforcement agency may not receive monies under this section.
906 (ii) The State Tax Commission:
907 (A) may not distribute the monies the municipality would receive but for the
908 municipality not having a law enforcement agency to that municipality; and
909 (B) shall distribute the monies that the municipality would have received but for it not
910 having a law enforcement agency to the county in which the municipality is located for use by
911 the county in accordance with this section.
912 (iii) Notwithstanding Subsections (3)(c)(i) and (ii), if the coordinating council finds
913 that a municipality described in Subsection (3)(c)(i) demonstrates that the municipality can use
914 the monies that the municipality is otherwise eligible to receive in accordance with this section,
915 the coordinating council may direct the State Tax Commission to distribute the money to the
916 municipality.
917 (4) To determine the distributions required by Subsection (3)(b)(ii), the State Tax
918 Commission shall annually:
919 (a) for an annual conviction time period:
920 (i) multiply by two the total number of convictions in the state obtained during the
921 annual conviction time period for violation of:
922 (A) Section 41-6a-502 ; or
923 (B) an ordinance that complies with the requirements of Subsection 41-6a-510 (1) or
924 Section 76-5-207 ; and

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- 31 - 925 (ii) add to the number calculated under Subsection (4)(a)(i) the number of convictions
926 obtained during the annual conviction time period for all alcohol-related offenses other than the
927 alcohol-related offenses described in Subsection (4)(a)(i);
928 (b) divide an amount equal to 30% of the appropriation for that fiscal year by the sum
929 obtained in Subsection (4)(a); and
930 (c) multiply the amount calculated under Subsection (4)(b), by the number of
931 convictions obtained in each municipality and county during the annual conviction time period
932 for alcohol-related offenses.
933 (5) For purposes of this section:
934 (a) the number of state stores, package agencies, and licensees located within the limits
935 of each municipality and county:
936 (i) is the number determined by the department to be so located;
937 (ii) includes all:
938 (A) [private clubs] club licenses;
939 (B) restaurants;
940 (C) limited restaurants;
941 (D) on-premise banquet licenses;
942 (E) airport lounges;
943 (F) resort licenses;
944 [(F)] (G) package agencies; and
945 [(G)] (H) state stores; and
946 (iii) does not include on-premise beer retailer licensees;
947 (b) the number of state stores, package agencies, and licensees in a county consists only
948 of that number located within unincorporated areas of the county;
949 (c) population figures shall be determined according to the most current population
950 estimates prepared by the Utah Population Estimates Committee;
951 (d) a county's population figure for the 25% distribution to municipalities and counties
952 under Subsection (3)(b)(i) shall be determined only with reference to the population in the
953 unincorporated areas of the county;
954 (e) a county's population figure under Subsection (3)(b)(iv) for the 25% distribution to
955 counties only shall be determined with reference to the total population in the county, including

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- 32 - 956 that of municipalities;
957 (f) a conviction occurs in the municipality or county that actually prosecutes the
958 offense to judgment; and
959 (g) in the case of a conviction based upon a guilty plea, the conviction is considered to
960 occur in the municipality or county that, except for the guilty plea, would have prosecuted the
961 offense.
962 (6) By not later than September 1 each year:
963 (a) the state court administrator shall certify to the State Tax Commission the number
964 of convictions obtained for alcohol-related offenses in each municipality or county in the state
965 during the annual conviction time period; and
966 (b) the coordinating council shall notify the State Tax Commission of any municipality
967 that does not have a law enforcement agency.
968 (7) By not later than December 1 of each year, the coordinating council shall notify the
969 State Tax Commission for the fiscal year of appropriation of:
970 (a) any municipality that may receive a distribution under Subsection (3)(c)(iii);
971 (b) any county that may receive a distribution allocated to a municipality described in
972 Subsection (3)(c)(ii);
973 (c) any municipality or county that may not receive a distribution because the
974 coordinating council has suspended the payment under Subsection (10)(a)(i); and
975 (d) any municipality or county that receives a distribution because the suspension of
976 payment has been cancelled under Subsection (10)(a)(ii).
977 (8) (a) By not later than January 1 of the fiscal year of appropriation, the State Tax
978 Commission shall annually distribute to each municipality and county the portion of the
979 appropriation that the municipality or county is eligible to receive under this section, except for
980 any municipality or county that the coordinating council notifies the State Tax Commission in
981 accordance with Subsection (7) may not receive a distribution in that fiscal year.
982 (b) (i) The State Tax Commission shall prepare forms for use by municipalities and
983 counties in applying for distributions under this section.
984 (ii) The forms described in this Subsection (8) may require the submission of
985 information the State Tax Commission considers necessary to enable the State Tax
986 Commission to comply with this section.

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- 33 - 987 (9) A municipality or county that receives any monies under this section during a fiscal
988 year shall by no later than October 1 following the fiscal year:
989 (a) report to the coordinating council:
990 (i) the programs or projects of the municipality or county that receive monies under
991 this section;
992 (ii) if the monies for programs or projects were exclusively used as required by
993 Subsection (2)(d);
994 (iii) indicators of whether the programs or projects that receive monies under this
995 section are effective; and
996 (iv) if [any] monies received under this section were not expended by the municipality
997 or county; and
998 (b) provide the coordinating council a statement signed by the chief executive officer
999 of the county or municipality attesting that the monies received under this section were used in
1000 addition to [any] monies appropriated or otherwise available for the county's or municipality's
1001 law enforcement and were not used to supplant those monies.
1002 (10) (a) The coordinating council may, by a majority vote:
1003 (i) suspend future payments under Subsection (8) to a municipality or county that:
1004 (A) does not file a report that meets the requirements of Subsection (9); or
1005 (B) the coordinating council finds does not use the monies as required by Subsection
1006 (2)(d) on the basis of the report filed by the municipality or county under Subsection (9); and
1007 (ii) cancel a suspension under Subsection (10)(a)(i).
1008 (b) The State Tax Commission shall:
1009 (i) retain monies that a municipality or county does not receive under Subsection
1010 (10)(a); and
1011 (ii) notify the coordinating council of the balance of retained monies under this
1012 Subsection (10)(b) after the annual distribution under Subsection (8).
1013 (11) (a) Subject to the requirements of this Subsection (11), the coordinating council
1014 shall award the balance of retained monies under Subsection (10)(b):
1015 (i) as prioritized by majority vote of the coordinating council; and
1016 (ii) as grants to:
1017 (A) a county;

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- 34 - 1018 (B) a municipality;
1019 (C) the Department of Alcoholic Beverage Control;
1020 (D) the Department of Human Services;
1021 (E) the Department of Public Safety; or
1022 (F) the Utah State Office of Education.
1023 (b) By not later than May 30 of the fiscal year of the appropriation, the coordinating
1024 council shall notify the State Tax Commission of [any] grants awarded under this Subsection
1025 (11).
1026 (c) The State Tax Commission shall make payments of [grants] a grant:
1027 (i) upon receiving notice as provided under Subsection (11)(b); and
1028 (ii) by not later than June 30 of the fiscal year of the appropriation.
1029 (d) An entity that receives a grant under this Subsection (11) shall use the grant monies
1030 exclusively for programs or projects described in Subsection (2)(d).
1031 Section 8. Section 32A-1-119 is amended to read:
1032 32A-1-119. Disciplinary proceedings -- Procedure.
1033 (1) As used in Subsection (4), "final adjudication" means an adjudication for which a
1034 final [unappealable] judgment or order is issued[.] that:
1035 (a) is not appealed, and the time to appeal the judgment has expired; or
1036 (b) is appealed, and is affirmed, in whole or in part, on appeal.
1037 (2) (a) Subject to Section 32A-1-119.5 , the following may conduct an adjudicative
1038 proceeding to inquire into a matter necessary and proper for the administration of this title and
1039 rules adopted under this title:
1040 (i) the commission;
1041 (ii) a hearing examiner appointed by the commission for the purposes provided in
1042 Subsection 32A-1-107 (3);
1043 (iii) the director; and
1044 (iv) the department.
1045 (b) Except as provided in this section or Section 32A-3-106 , the following shall
1046 comply with the procedures and requirements of Title 63G, Chapter 4, Administrative
1047 Procedures Act, in an adjudicative proceeding:
1048 (i) the commission;

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- 35 - 1049 (ii) a hearing examiner appointed by the commission;
1050 (iii) the director; and
1051 (iv) the department.
1052 (c) Except where otherwise provided by law, an adjudicative proceeding before the
1053 commission or a hearing examiner appointed by the commission shall be:
1054 (i) video or audio recorded; and
1055 (ii) subject to Subsection (5)(e), conducted in accordance with Title 52, Chapter 4,
1056 Open and Public Meetings Act.
1057 (d) A person listed in Subsection (2)(a) shall conduct an adjudicative proceeding
1058 concerning departmental personnel in accordance with Title 67, Chapter 19, Utah State
1059 Personnel Management Act.
1060 (e) A hearing that is informational, fact gathering, and nonadversarial in nature shall be
1061 conducted in accordance with rules, policies, and procedures made by the commission,
1062 director, or department.
1063 (3) (a) Subject to Section 32A-1-119.5 , a disciplinary proceeding shall be conducted
1064 under the authority of the commission, which is responsible for rendering a final decision and
1065 order on a disciplinary matter.
1066 (b) (i) Nothing in this section precludes the commission from appointing a necessary
1067 officer, including a hearing examiner, from within or without the department, to administer the
1068 disciplinary proceeding process.
1069 (ii) A hearing examiner appointed by the commission:
1070 (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
1071 (B) shall submit to the commission a report including:
1072 (I) findings of fact determined on the basis of a preponderance of the evidence
1073 presented at the hearing;
1074 (II) conclusions of law; and
1075 (III) recommendations.
1076 (c) Nothing in this section precludes the commission, after the commission renders its
1077 final decision and order, from having the director prepare, issue, and cause to be served on the
1078 parties the final written order on behalf of the commission.
1079 (4) Subject to Section 32A-1-119.5 :

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- 36 - 1080 (a) The department may initiate a disciplinary proceeding described in Subsection
1081 (4)(b) if the department receives:
1082 (i) a report from a government agency, peace officer, examiner, or investigator alleging
1083 that a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii) violated this title or
1084 the rules of the commission;
1085 (ii) a final adjudication of criminal liability against a person listed in Subsections
1086 32A-1-105 [(17)](18)(a)(i) through (vii) based on an alleged violation of this title; or
1087 (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
1088 Liability, against a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii) based
1089 on an alleged violation of this title.
1090 (b) The department may initiate a disciplinary proceeding if the department receives an
1091 item listed in Subsection (4)(a) to determine:
1092 (i) whether a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii)
1093 violated this title or rules of the commission; and
1094 (ii) if a violation is found, the appropriate sanction to be imposed.
1095 (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
1096 (i) if required by law;
1097 (ii) before revoking or suspending a permit, license, or certificate of approval issued
1098 under this title; or
1099 (iii) before imposing a fine against a person listed in Subsections
1100 32A-1-105 [(17)](18)(a)(i) through (vii).
1101 (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
1102 hearing after receiving proper notice is an admission of the charged violation.
1103 (c) The validity of a disciplinary proceeding is not affected by the failure of a person to
1104 attend or remain in attendance.
1105 (d) The commission or an appointed hearing examiner shall preside over a disciplinary
1106 proceeding hearing.
1107 (e) A disciplinary proceeding hearing may be closed only after the commission or
1108 hearing examiner makes a written finding that the public interest in an open hearing is clearly
1109 outweighed by factors enumerated in the closure order.
1110 (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding

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- 37 - 1111 hearing may:
1112 (A) administer oaths or affirmations;
1113 (B) take evidence;
1114 (C) take a deposition within or without this state; and
1115 (D) require by subpoena from a place within this state:
1116 (I) the testimony of a person at a hearing; and
1117 (II) the production of a book, record, paper, contract, agreement, document, or other
1118 evidence considered relevant to the inquiry.
1119 (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
1120 produce a book, paper, document, or tangible thing as required in the subpoena.
1121 (iii) A witness subpoenaed or called to testify or produce evidence who claims a
1122 privilege against self-incrimination may not be compelled to testify, but the commission or the
1123 hearing examiner shall file a written report with the county attorney or district attorney in the
1124 jurisdiction where the privilege is claimed or where the witness resides setting forth the
1125 circumstance of the claimed privilege.
1126 (iv) (A) A person is not excused from obeying a subpoena without just cause.
1127 (B) A district court within the judicial district in which a person alleged to be guilty of
1128 willful contempt of court or refusal to obey a subpoena is found or resides, upon application by
1129 the party issuing the subpoena, may issue an order requiring the person to:
1130 (I) appear before the issuing party; and
1131 (II) (Aa) produce documentary evidence if so ordered; or
1132 (Bb) give evidence regarding the matter in question.
1133 (C) Failure to obey an order of the court may be punished by the court as contempt.
1134 (g) (i) In a disciplinary proceeding hearing heard by a hearing examiner, the hearing
1135 examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
1136 (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
1137 recommend a penalty more severe than that initially sought by the department in the notice of
1138 agency action.
1139 (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
1140 shall be served upon the respective parties.
1141 (iv) The respondent and the department shall be given reasonable opportunity to file a

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- 38 - 1142 written objection to the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
1143 before final commission action.
1144 (h) In a case heard by the commission, it shall issue its final decision and order in
1145 accordance with Subsection (3).
1146 (6) (a) The commission shall:
1147 (i) render a final decision and order on a disciplinary action; and
1148 (ii) cause its final order to be prepared in writing, issued, and served on all parties.
1149 (b) An order of the commission is [considered] final on the date the order [becomes
1150 effective] is issued.
1151 (c) If the commission is satisfied that a person listed in Subsections
1152 32A-1-105 [(17)](18)(a)(i) through (vii) violated this title or the commission's rules, in
1153 accordance with Title 63G, Chapter 4, Administrative Procedures Act, the commission may:
1154 (i) suspend or revoke the permit, license, or certificate of approval;
1155 (ii) impose a fine against a person listed in Subsections 32A-1-105 [(17)](18)(a)(i)
1156 through (vii);
1157 (iii) assess the administrative costs of a disciplinary proceeding to the permittee, the
1158 licensee, or certificate holder; or
1159 (iv) take a combination of actions described in Subsections (6)(c)(i) through (iii).
1160 (d) A fine imposed in accordance with this Subsection (6) is subject to Subsections
1161 32A-1-107 (1)(p) and (4).
1162 (e) (i) If a permit or license is suspended under this Subsection (6), the permittee or
1163 licensee shall prominently post a sign provided by the department:
1164 (A) during the suspension; and
1165 (B) at the entrance of the premises of the permittee or licensee.
1166 (ii) The sign required by this Subsection (6)(e) shall:
1167 (A) read "The Utah Alcoholic Beverage Control Commission has suspended the
1168 alcoholic beverage license or permit of this establishment. Alcoholic beverages may not be
1169 sold, served, furnished, or consumed on these premises during the period of suspension."; and
1170 (B) include the dates of the suspension period.
1171 (iii) A permittee or licensee may not remove, alter, obscure, or destroy a sign required
1172 to be posted under this Subsection (6)(e) during the suspension period.

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- 39 - 1173 (f) If a permit or license is revoked, the commission may order the revocation of a
1174 compliance bond posted by the permittee or licensee.
1175 (g) A permittee or licensee whose permit or license is revoked may not reapply for a
1176 permit or license under this title for three years from the date on which the permit or license is
1177 revoked.
1178 (h) The commission shall transfer all costs assessed into the General Fund in
1179 accordance with Section 32A-1-113 .
1180 (7) Subject to Section 32A-1-119.5 :
1181 (a) In addition to an action taken against a permittee, licensee, or certificate holder
1182 under this section, the department may initiate disciplinary action against an officer, employee,
1183 or agent of a permittee, licensee, or certificate holder.
1184 (b) If an officer, employee, or agent is found to have violated this title, the commission
1185 may prohibit the officer, employee, or agent from serving, selling, distributing, manufacturing,
1186 wholesaling, warehousing, or handling an alcoholic beverage in the course of acting as an
1187 officer, employee, or agent with a permittee, licensee, or certificate holder under this title for a
1188 period determined by the commission.
1189 (8) Subject to Section 32A-1-119.5 :
1190 (a) The department may initiate a disciplinary proceeding for an alleged violation of
1191 this title or the rules of the commission against:
1192 (i) a manufacturer, supplier, or importer of an alcoholic beverage; or
1193 (ii) an officer, employee, agent, or representative of a person listed in Subsection
1194 (8)(a)(i).
1195 (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
1196 commission may, in addition to other penalties prescribed by this title, order:
1197 (A) the removal of the manufacturer's, supplier's, or importer's one or more products
1198 from the department's sales list; and
1199 (B) a suspension of the department's purchase of the one or more products described in
1200 Subsection (8)(b)(i)(A) for a period determined by the commission.
1201 (ii) The commission may take the action described in Subsection (8)(b)(i) if:
1202 (A) a manufacturer, supplier, or importer of liquor, wine, heavy beer, or a flavored malt
1203 beverage, or its officer, employee, agent, or representative violates this title; and

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- 40 - 1204 (B) the manufacturer, supplier, or importer:
1205 (I) directly commits the violation; or
1206 (II) solicits, requests, commands, encourages, or intentionally aids another to engage in
1207 the violation.
1208 (9) Subject to Section 32A-1-119.5 :
1209 (a) The department may initiate a disciplinary proceeding against a brewer holding a
1210 certificate of approval under Section 32A-8-101 for an alleged violation of this title or the rules
1211 of the commission.
1212 (b) If the commission makes a finding that the brewer holding a certificate of approval
1213 violates this title or rules of the commission, the commission may take an action against the
1214 brewer holding a certificate of approval that the commission could take against a licensee
1215 including:
1216 (i) suspension or revocation of the certificate of approval; and
1217 (ii) imposition of a fine.
1218 (10) (a) An adjudicative proceeding under this title, including a disciplinary
1219 proceeding, is a civil action, notwithstanding whether at issue in the adjudicative proceeding is
1220 a violation of statute that can be prosecuted criminally.
1221 (b) Unless specifically adopted in this title, a procedure or principal that is applicable
1222 to a criminal proceeding does not apply to an adjudicative proceeding permitted under this title
1223 including:
1224 (i) Title 76, Chapter 1, General Provisions;
1225 (ii) Title 76, Chapter 2, Principles of Criminal Responsibility;
1226 (iii) Title 76, Chapter 3, Punishments; and
1227 (iv) Title 76, Chapter 4, Inchoate Offenses.
1228 (c) (i) The burden of proof in an adjudicative proceeding under this title is by a
1229 preponderance of the evidence.
1230 (ii) If the subject of an adjudicative proceeding under this title asserts an affirmative
1231 defense, the subject has the burden of proof to establish the affirmative defense by the
1232 preponderance of the evidence.
1233 (d) In an adjudicative proceeding under this title, to find a violation of this title the
1234 commission:

Text Box
- 41 - 1235 (i) is required to determine whether the conduct that constitutes the violation occurred;
1236 and
1237 (ii) is not required to make a finding of knowledge or intent unless knowledge or intent
1238 is expressly made an element of the violation by statute.
1239 [(10)] (11) (a) If a respondent requests a disciplinary proceeding hearing, the hearing
1240 held by the commission or a hearing examiner appointed by the commission shall proceed
1241 formally in accordance with Sections 63G-4-204 through 63G-4-209 in a case where:
1242 (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
1243 and welfare;
1244 (ii) the alleged violation involves:
1245 (A) selling, serving, or otherwise furnishing an alcoholic product to a minor;
1246 (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
1247 Entertainment Act;
1248 (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
1249 of the respondent;
1250 (D) interfering or refusing to cooperate with:
1251 (I) an authorized official of the department or the state in the discharge of the official's
1252 duties in relation to the enforcement of this title; or
1253 (II) a peace officer in the discharge of the peace officer's duties in relation to the
1254 enforcement of this title;
1255 (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
1256 (F) unlawful importation of an alcoholic product; or
1257 (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
1258 32A-12-601 (2), to a person other than the department or a military installation, except to the
1259 extent permitted by this title; or
1260 (iii) the department determines to seek in a disciplinary proceeding hearing:
1261 (A) an administrative fine exceeding $3,000;
1262 (B) a suspension of a license, permit, or certificate of approval of more than ten days;
1263 or
1264 (C) a revocation of a license, permit, or certificate of approval.
1265 (b) If a respondent does not request a disciplinary proceeding hearing, a hearing shall

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- 42 - 1266 proceed informally unless it is designated as a formal proceeding pursuant to rules adopted by
1267 the commission in accordance with Subsection (11)(c).
1268 [(b)] (c) The commission shall make rules in accordance with Title 63G, Chapter 3,
1269 Utah Administrative Rulemaking Act, to provide a procedure to implement this Subsection
1270 [(10)] (11).
1271 (12) Notwithstanding the other provisions of this title, the commission may not order a
1272 disciplinary action or fine in accordance with this section if the disciplinary action or fine is
1273 ordered on the basis of a violation:
1274 (a) of a provision in this title related to intoxication or becoming intoxicated; and
1275 (b) if the violation is first investigated by a law enforcement officer, as defined in
1276 Section 53-13-103 , who has not received training regarding the requirements of this title
1277 related to responsible alcoholic beverage sale or service.
1278 Section 9. Section 32A-1-119.5 is amended to read:
1279 32A-1-119.5. Timing of reporting violations.
1280 (1) As used in this section:
1281 (a) "Department compliance officer" means an individual who is:
1282 (i) an auditor or inspector; and
1283 (ii) employed by the department.
1284 (b) "Nondepartment enforcement agency" means an agency that:
1285 (i) (A) is a state agency other than the department; or
1286 (B) is an agency of a county, city, or town; and
1287 (ii) has a responsibility, as provided in another provision of this title, to enforce one or
1288 more provisions of this title.
1289 (c) "Nondepartment enforcement officer" means an individual who is:
1290 (i) a peace officer, examiner, or investigator; and
1291 (ii) employed by an agency described in Subsection (1)(b).
1292 (2) A disciplinary proceeding may not be initiated or maintained by the commission or
1293 department on the basis, in whole or in part, of a violation of this title unless a person listed in
1294 Subsections 32A-1-105 [(15)](18)(a)(i) through (vi) against whom the violation is alleged is
1295 notified by the department of the violation in accordance with this section.
1296 (3) (a) A nondepartment enforcement agency or nondepartment enforcement officer

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- 43 - 1297 may not report a violation of this title to the department more than eight business days after the
1298 day on which a nondepartment enforcement officer or agency completes an investigation that
1299 finds a violation of this title.
1300 (b) If the commission or department wants the right to initiate or maintain a
1301 disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged in a
1302 report described in Subsection (3)(a), the department shall notify a person listed in Subsections
1303 32A-1-105 [(15)](18)(a)(i) through (vi) alleged by the report to have violated this title:
1304 (i) by no later than eight business days of the day on which the department receives the
1305 report described in Subsection (3)(a); and
1306 (ii) that the commission or department may initiate or maintain a disciplinary
1307 proceeding on the basis, in whole or in part, of the violation.
1308 (4) If the commission or department wants the right to initiate or maintain a
1309 disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged by
1310 report of a department compliance officer, the department shall notify a person listed in
1311 Subsections 32A-1-105 [(15)](18)(a)(i) through (vi) alleged by the report to have violated this
1312 title:
1313 (a) by no later than eight business days of the day on which the department compliance
1314 officer completes an investigation that finds a violation of this title; and
1315 (b) that the commission or department may initiate or maintain a disciplinary
1316 proceeding on the basis, in whole or in part, of the violation.
1317 (5) The notice described in Subsection (2), (3)(b), or (4) is not required with respect to
1318 a person listed in Subsection 32A-1-105 [(15)](18)(a)(vii).
1319 (6) (a) A notice required by Subsection (2), (3)(b), or (4) may be done orally, if after
1320 the oral notification the department provides written notification.
1321 (b) The written notification described in Subsection (6)(a) may be sent outside the time
1322 periods required by this section.
1323 (7) The department shall maintain a record of a notification required by Subsection (2),
1324 (3)(b), or (4) that includes:
1325 (a) the name of the person notified; and
1326 (b) the date of the notification.
1327 Section 10. Section 32A-1-304.5 is enacted to read:

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- 44 - 1328 32A-1-304.5. Verification of proof of age by certain club licensees.
1329 (1) For purposes of this section, "applicable club licensee" means the following as
1330 defined in Section 32A-5-101 :
1331 (a) a dining club licensee; or
1332 (b) a social club licensee.
1333 (2) Notwithstanding any other provision of this part, an applicable club licensee shall
1334 require that a person authorized to sell or otherwise handle an alcoholic beverage or alcoholic
1335 product under the applicable club license verify proof of age as provided in this section.
1336 (3) A person described in Subsection (2) is required to verify proof of age under this
1337 section before an individual who appears to be 35 years of age or younger:
1338 (a) gains admittance to the premises of a social club licensee; or
1339 (b) procures an alcoholic beverage or alcoholic product on the premises of a dining
1340 club licensee.
1341 (4) To comply with Subsection (3), a person shall:
1342 (a) request the individual present proof of age; and
1343 (b) (i) verify the validity of the proof of age electronically under the verification
1344 program created in Subsection (5); or
1345 (ii) if the proof of age cannot be electronically verified as provided in Subsection
1346 (4)(b)(i), request that the individual comply with a process established by the commission by
1347 rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1348 (5) The commission shall establish by rule made in accordance with Title 63G, Chapter
1349 3, Utah Administrative Rulemaking Act, an electronic verification program that includes the
1350 following:
1351 (a) the specifications for the technology used by the applicable club licensee to
1352 electronically verify proof of age, including that the technology display to the person described
1353 in Subsection (2) no more than the following for the individual who presents the proof of age:
1354 (i) the name;
1355 (ii) the age;
1356 (iii) the number assigned to the individual's proof of age by the issuing authority;
1357 (iv) the birth date;
1358 (v) the gender; and

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- 45 - 1359 (vi) the status and expiration date of the individual's proof of age; and
1360 (b) the security measures that must be used by an applicable club licensee to ensure
1361 that information obtained under this section is:
1362 (i) used by the applicable club licensee only for purposes of verifying proof of age in
1363 accordance with this section; and
1364 (ii) retained by the applicable club licensee for seven days after the day on which the
1365 applicable club licensee obtains the information.
1366 (6) (a) An applicable club licensee may not disclose information obtained under this
1367 section except as provided under this title.
1368 (b) Information obtained under this section is considered a record for any purpose
1369 under Section 32A-5-107 .
1370 Section 11. Section 32A-1-603 is amended to read:
1371 32A-1-603. Sexually oriented entertainer.
1372 (1) Subject to the restrictions of this section, live entertainment is permitted on a
1373 premises or at an event regulated by the commission.
1374 (2) Notwithstanding Subsection (1), a licensee or permittee may not permit a person to:
1375 (a) appear or perform in a state of nudity;
1376 (b) perform or simulate an act of:
1377 (i) sexual intercourse;
1378 (ii) masturbation;
1379 (iii) sodomy;
1380 (iv) bestiality;
1381 (v) oral copulation;
1382 (vi) flagellation; or
1383 (vii) a sexual act that is prohibited by Utah law; or
1384 (c) touch, caress, or fondle the breast, buttocks, anus, or genitals.
1385 (3) A sexually oriented entertainer may perform in a state of seminudity:
1386 (a) only in:
1387 (i) a tavern; or [class D private club; and]
1388 (ii) a social club license premises; and
1389 (b) only if:

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- 46 - 1390 (i) all windows, doors, and other apertures to the premises are darkened or otherwise
1391 constructed to prevent anyone outside the premises from seeing the performance; and
1392 (ii) the outside entrance doors of the premises remain unlocked.
1393 (4) A sexually oriented entertainer may perform only upon a stage or in a designated
1394 performance area that is:
1395 (a) approved by the commission in accordance with rules made by the commission in
1396 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1397 (b) configured so as to preclude a patron from:
1398 (i) touching the sexually oriented entertainer; or
1399 (ii) placing any money or object on or within the costume or the person of the sexually
1400 oriented entertainer; and
1401 (c) configured so as to preclude the sexually oriented entertainer from touching a
1402 patron.
1403 (5) A sexually oriented entertainer may not touch a patron:
1404 (a) during the sexually oriented entertainer's performance; or
1405 (b) while the sexually oriented entertainer is dressed in performance attire or costume.
1406 (6) A sexually oriented entertainer, while in the portion of the premises used by
1407 patrons, must be dressed in opaque clothing which covers and conceals the sexually oriented
1408 entertainer's performance attire or costume from the top of the breast to the knee.
1409 (7) A patron may not be on the stage or in the performance area while a sexually
1410 oriented entertainer is appearing or performing on the stage or in the performance area.
1411 (8) A patron may not:
1412 (a) touch a sexually oriented entertainer:
1413 (i) during the sexually oriented entertainer's performance; or
1414 (ii) while the sexually oriented entertainer is dressed in performance attire or costume;
1415 or
1416 (b) place money or any other object on or within the costume or the person of the
1417 sexually oriented entertainer.
1418 (9) A minor may not be on a premises described in Subsection (3) [when a sexually
1419 oriented entertainer is performing on the premises].
1420 (10) A person who appears or performs for the entertainment of patrons on a premises

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- 47 - 1421 or at an event regulated by the commission that is not a tavern or [class D private club] social
1422 club licensee:
1423 (a) may not appear or perform in a state of nudity or a state of seminudity; and
1424 (b) may appear or perform in opaque clothing that completely covers the person's
1425 genitals, pubic area, and anus if the covering:
1426 (i) is not less than the following at its widest point:
1427 (A) four inches coverage width in the front of the human body; and
1428 (B) five inches coverage width in the back of the human body;
1429 (ii) does not taper to less than one inch wide at the narrowest point; and
1430 (iii) if covering a female, completely covers the breast below the top of the areola.
1431 Section 12. Section 32A-2-103 is amended to read:
1432 32A-2-103. Operational restrictions.
1433 (1) (a) Liquor may not be sold from a state store except in a sealed package. [The]
1434 (b) A sealed package may not be opened on the premises of [any] a state store.
1435 (2) (a) An officer, agent, clerk, or employee of a state store may not consume or allow
1436 to be consumed by any person [any] an alcoholic beverage on the premises of a state store.
1437 (b) Violation of this Subsection (2) is a class B misdemeanor.
1438 [(3) All liquor sold shall be in packages that are properly marked and labeled in
1439 accordance with the rules adopted under this title.]
1440 [(4)] (3) Liquor may not be sold except at prices fixed by the commission.
1441 [(5)] (4) Liquor may not be sold, delivered, or furnished to [any] a:
1442 (a) minor;
1443 (b) person actually, apparently, or obviously intoxicated;
1444 (c) known habitual drunkard; or
1445 (d) known interdicted person.
1446 [(6)] (5) Sale or delivery of liquor may not be made on or from the premises of [any] a
1447 state store, nor may [any] a state store be kept open for the sale of liquor:
1448 (a) on Sunday;
1449 (b) on [any] a state or federal legal holiday; or
1450 [(c) on any day on which any regular general election, regular primary election, or
1451 statewide special election is held;]

Text Box
- 48 - 1452 [(d) on any day on which any municipal, local district, special service district, or school
1453 election is held, but only within the boundaries of the municipality, local district, special
1454 service district, or school district holding the election and only if the municipality, local
1455 district, special service district or school district in which the election is being held notifies the
1456 department at least 30 days prior to the date of the election; or]
1457 [(e)] (c) except on days and during hours as the commission may direct by rule or
1458 order.
1459 [(7) Each] (6) A state store shall display in a prominent place in the store a sign in
1460 large letters stating: "Warning: Driving under the influence of alcohol or drugs is a serious
1461 crime that is prosecuted aggressively in Utah."
1462 [(8)] (7) (a) A minor may not be admitted into, or be on the premises of a state store
1463 unless accompanied by a person who is:
1464 (i) 21 years of age or older; and
1465 (ii) the minor's parent, legal guardian, or spouse.
1466 (b) [Any] A state store employee that has reason to believe that a person who is on the
1467 premises of a state store is under the age of 21 and is not accompanied by a person described in
1468 Subsection [(8)] (7)(a) may:
1469 (i) ask the suspected minor for proof of age;
1470 (ii) ask the person who [accompanied] accompanies the suspected minor for proof of
1471 age; and
1472 (iii) ask the suspected minor or the person who [accompanied] accompanies the
1473 suspected minor for proof of parental, guardianship, or spousal relationship.
1474 (c) [Any] A state store employee shall refuse to sell liquor to the suspected minor and
1475 to the person who [accompanied] accompanies the suspected minor into the state store if [they
1476 fail] the suspected minor or person fails to provide [any of the] information specified in
1477 Subsection [(8)] (7)(b).
1478 (d) [Any] A state store employee shall require [the] a suspected minor and the person
1479 who [accompanied] accompanies the suspected minor into the state store to immediately leave
1480 the premises of the state store if [they fail] the suspected minor or person fails to provide [any
1481 of the] information specified in Subsection [(8)] (7)(b).
1482 Section 13. Section 32A-3-106 is amended to read:

Text Box
- 49 - 1483 32A-3-106. Operational restrictions.
1484 (1) (a) A package agency may not be operated until a package agency agreement has
1485 been entered into by the package agent and the department.
1486 (b) The agreement shall state the conditions of operation by which the package agent
1487 and the department are bound.
1488 (c) If the package agent violates the conditions, terms, or covenants contained in the
1489 agreement or violates any provisions of this title, the department may take whatever action
1490 against the agent that is allowed by the package agency agreement.
1491 (d) Actions against the package agent are governed solely by the agreement and may
1492 include suspension or revocation of the agency.
1493 (2) (a) A package agency may not purchase liquor from any person except from the
1494 department.
1495 (b) At the discretion of the department, liquor may be provided by the department to a
1496 package agency for sale on consignment.
1497 (3) The department may pay or otherwise remunerate a package agent on any basis
1498 including sales or volume of business done by the agency.
1499 (4) Liquor may not be sold from any package agency except in a sealed package. The
1500 package may not be opened on the premises of a package agency.
1501 [(5) All liquor sold shall be in packages that are properly marked and labeled in
1502 accordance with the rules adopted under this title.]
1503 [(6)] (5) A package agency may not display liquor or price lists in windows or
1504 showcases visible to passersby.
1505 [(7)] (6) (a) An officer, agent, clerk, or employee of a package agency may not
1506 consume or allow to be consumed by any person any alcoholic beverage on the premises of a
1507 package agency.
1508 (b) Violation of this Subsection [(7)] (6) is a class B misdemeanor.
1509 [(8)] (7) Liquor may not be sold except at prices fixed by the commission.
1510 [(9)] (8) Liquor may not be sold, delivered, or furnished to any:
1511 (a) minor;
1512 (b) person actually, apparently, or obviously intoxicated;
1513 (c) known habitual drunkard; or

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- 50 - 1514 (d) known interdicted person.
1515 [(10)] (9) (a) Subject to [Subsection (10)(b)] the other provisions of this Subsection
1516 (9), sale or delivery of liquor may not be made on or from the premises of [any] a package
1517 agency nor may [any] a package agency be kept open for the sale of liquor:
1518 (i) (A) on Sunday; or
1519 (B) on a state or federal legal holiday; and
1520 (ii) except on days and during hours as the commission may direct by rule or order.
1521 (b) The restrictions in Subsection [(10)] (9)(a)(i) govern unless:
1522 (i) the package agency is located at a winery licensed under Chapter 8, Manufacturing
1523 Licenses;
1524 (ii) the winery licensed under Chapter 8, Manufacturing Licenses, holds:
1525 (A) a restaurant liquor license under Chapter 4, Part 1, Restaurant Liquor Licenses; or
1526 (B) a limited restaurant license under Chapter 4, Part 3, Limited Restaurant Licenses;
1527 (iii) the restaurant described in Subsection [(10)] (9)(b)(ii) is located at the winery;
1528 (iv) the restaurant described in Subsection [(10)] (9)(b)(ii) sells wines produced at the
1529 winery;
1530 (v) the winery described in Subsection [(10)] (9)(b)(i):
1531 (A) owns the restaurant; or
1532 (B) operates the restaurant;
1533 (vi) the package agency only sells wine produced at the winery; and
1534 (vii) the package agency's days and hours of sale are the same as the days and hours of
1535 sale at the restaurant described in Subsection [(10)] (9)(b)(ii).
1536 [(c) (i) In addition to the requirements of Subsection (10)(a), the sale or delivery of
1537 liquor may not be made on or from the premises of a package agency described in Subsection
1538 (10)(c)(ii) and a package agency described in Subsection (10)(c)(ii) may not be open for the
1539 sale of liquor until after the polls are closed:]
1540 [(A) on a day on which is held:]
1541 [(I) a regular general election;]
1542 [(II) a regular primary election; or]
1543 [(III) a statewide special election; or]
1544 [(B) on a day on which is held a municipal, local district, special service district, or

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- 51 - 1545 school election if:]
1546 [(I) the package agency is within the boundaries of the municipality, local district,
1547 special service district, or school district holding the election; and]
1548 [(II) the municipality, local district, special service district, or school district in which
1549 the election is held notifies the department at least 30 days before the day on which the election
1550 is held.]
1551 [(ii) This Subsection (10)(c) applies to a package agency that contracts with the
1552 department to sell liquor in a manner similar to a state store, whether or not the operator of the
1553 package agency has a source of income that is not from the sale of liquor.]
1554 [(iii) The commission may by rule made in accordance with Title 63G, Chapter 3, Utah
1555 Administrative Rulemaking Act, define what constitutes a package agency that sells liquor "in
1556 a manner similar to a state store."]
1557 (c) (i) Subsection (9)(a)(i) does not apply to a package agency held by a resort licensee
1558 if the package agency that contracts with the department to sell liquor does not sell liquor in a
1559 manner similar to a state store.
1560 (ii) The commission may by rule made in accordance with Title 63G, Chapter 3, Utah
1561 Administrative Rulemaking Act, define what constitutes a package agency that sells liquor "in
1562 a manner similar to a state store."
1563 [(11)] (10) The package agency certificate issued by the commission shall be
1564 permanently posted in a conspicuous place in the package agency.
1565 [(12) Each] (11) A package agent shall display in a prominent place in the package
1566 agency a sign in large letters stating: "Warning: Driving under the influence of alcohol or drugs
1567 is a serious crime that is prosecuted aggressively in Utah."
1568 [(13)] (12) (a) A package agency may not close or cease operation for a period longer
1569 than 72 hours, unless:
1570 (i) the package agency notifies the department in writing at least seven days before the
1571 closing; and
1572 (ii) the closure or cessation of operation is first approved by the department.
1573 (b) Notwithstanding Subsection [(13)] (12)(a), in the case of emergency closure,
1574 immediate notice of closure shall be made to the department by telephone.
1575 (c) (i) The department may authorize a closure or cessation of operation for a period

Text Box
- 52 - 1576 not to exceed 60 days.
1577 (ii) The department may extend the initial period an additional 30 days upon written
1578 request of the package agency and upon a showing of good cause.
1579 (iii) A closure or cessation of operation may not exceed a total of 90 days without
1580 commission approval.
1581 (d) The notice required by Subsection [(13)] (12)(a) shall include:
1582 (i) the dates of closure or cessation of operation;
1583 (ii) the reason for the closure or cessation of operation; and
1584 (iii) the date on which the agency will reopen or resume operation.
1585 (e) Failure of the agency to provide notice and to obtain department authorization prior
1586 to closure or cessation of operation shall result in an automatic termination of the package
1587 agency contract effective immediately.
1588 (f) Failure of the agency to reopen or resume operation by the approved date shall
1589 result in an automatic termination of the package agency contract effective on that date.
1590 [(14)] (13) Liquor may not be stored or sold in any place other than as designated in the
1591 package agent's application, unless the package agent first applies for and receives approval
1592 from the department for a change of location within the package agency premises.
1593 [(15)] (14) (a) Except to the extent authorized by commission rule, a minor may not be
1594 admitted into, or be on the premises of a package agency unless accompanied by a person who
1595 is:
1596 (i) 21 years of age or older; and
1597 (ii) the minor's parent, legal guardian, or spouse.
1598 (b) [Any] A package agent or employee of the package agency that has reason to
1599 believe that a person who is on the premises of a package agency store is under the age of 21
1600 and is not accompanied by a person described in Subsection [(15)] (14)(a) may:
1601 (i) ask the suspected minor for proof of age;
1602 (ii) ask the person who [accompanied] accompanies the suspected minor for proof of
1603 age; and
1604 (iii) ask the suspected minor or the person who [accompanied] accompanies the
1605 suspected minor for proof of parental, guardianship, or spousal relationship.
1606 (c) [Any] A package agent or employee of a package agency shall refuse to sell liquor

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- 53 - 1607 to the suspected minor and to the person who [accompanied] accompanies the suspected minor
1608 into the package agency if [they fail] the minor or person fails to provide any [of the]
1609 information specified in Subsection [(15)] (14)(b).
1610 (d) [Any] A package agent or employee of a package agency shall require the suspected
1611 minor and the person who [accompanied] accompanies the suspected minor into the package
1612 agency to immediately leave the premises of the package agency if [they fail] the minor or
1613 person fails to provide [any of the] information specified in Subsection [(15)] (14)(b).
1614 [(16)] (15) A package agency may not transfer its operations from one location to
1615 another location without prior written approval of the commission.
1616 [(17)] (16) (a) A person, having been granted a package agency, may not sell, transfer,
1617 assign, exchange, barter, give, or attempt in any way to dispose of the package agency to any
1618 other person, whether for monetary gain or not.
1619 (b) A package agency has no monetary value for the purpose of any type of disposition.
1620 Section 14. Section 32A-4-101 is amended to read:
1621 32A-4-101. Commission's power to grant licenses -- Limitations.
1622 (1) Before a restaurant may sell or allow the consumption of liquor on its premises, it
1623 shall first obtain a license from the commission as provided in this part.
1624 (2) The commission may [issue] grant restaurant liquor licenses for the purpose of
1625 establishing restaurant liquor outlets at places and in numbers it considers proper for the
1626 storage, sale, and consumption of liquor on premises operated as public restaurants.
1627 (3) (a) Subject to the other provisions of this Subsection (3) and Subsection
1628 32A-4a-201 (2), the total number of restaurant liquor licenses may not at any time aggregate
1629 more than that number determined by dividing the population of the state by 5,200.
1630 (b) For purposes of this Subsection (3), population shall be determined by:
1631 (i) the most recent United States decennial or special census; or
1632 (ii) another population determination made by the United States or state governments.
1633 (c) (i) The commission may [issue] grant seasonal restaurant liquor licenses established
1634 in areas the commission considers necessary.
1635 (ii) A seasonal restaurant liquor license shall be for a period of six consecutive months.
1636 (iii) A restaurant liquor license [issued] granted for operation during a summer time
1637 period is known as a "Seasonal A" restaurant liquor license. The period of operation for a

Text Box
- 54 - 1638 "Seasonal A" restaurant liquor license shall:
1639 (A) begin on May 1; and
1640 (B) end on October 31.
1641 (iv) A restaurant liquor license [issued] granted for operation during a winter time
1642 period is known as a "Seasonal B" restaurant liquor license. The period of operation for a
1643 "Seasonal B" restaurant liquor license shall:
1644 (A) begin on November 1; and
1645 (B) end on April 30.
1646 (v) In determining the number of restaurant liquor licenses that the commission may
1647 issue under this section:
1648 (A) a seasonal license is counted as [1/2] one-half of one restaurant liquor license; and
1649 (B) each "Seasonal A" license shall be paired with a "Seasonal B" license.
1650 (d) (i) If the location, design, and construction of a hotel may require more than one
1651 restaurant liquor sales location within the hotel to serve the public convenience, the
1652 commission may authorize the sale of liquor at as many as three restaurant locations within the
1653 hotel under one license if:
1654 (A) the hotel has a minimum of 150 guest rooms; and
1655 (B) all locations under the license are:
1656 (I) within the same hotel facility; and
1657 (II) on premises that are managed or operated and owned or leased by the licensee.
1658 (ii) A facility other than a hotel shall have a separate restaurant liquor license for each
1659 restaurant where liquor is sold.
1660 (4) (a) Except as otherwise provided in this Subsection (4)[(b), (c), or (d)], the
1661 premises of a restaurant liquor license may not be established:
1662 (i) within 600 feet of a community location, as measured by the method in Subsection
1663 (4)[(e)](f);
1664 (ii) within 200 feet of a community location, measured in a straight line from the
1665 nearest entrance of the proposed outlet to the nearest property boundary of the community
1666 location.
1667 (b) With respect to the establishment of a restaurant liquor license, the commission
1668 may authorize a variance to reduce the proximity requirement of Subsection (4)(a)(i) if:

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- 55 - 1669 (i) the local authority grants its written consent to the variance;
1670 (ii) the commission finds that alternative locations for establishing a restaurant liquor
1671 license in the community are limited;
1672 (iii) a public hearing is held in the city, town, or county, and where practical in the
1673 neighborhood concerned;
1674 (iv) after giving full consideration to all of the attending circumstances and the policies
1675 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
1676 restaurant liquor license would not be detrimental to the public health, peace, safety, and
1677 welfare of the community; and
1678 (v) (A) the community location governing authority gives its written consent to the
1679 variance; or
1680 (B) when written consent is not given by the community location governing authority,
1681 the commission finds that the applicant has established that:
1682 (I) there is substantial unmet public demand to consume alcohol in a public setting
1683 within the geographic boundary of the local authority in which the restaurant is to be located;
1684 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1685 described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a restaurant
1686 liquor license; and
1687 (III) there is no reasonably viable alternative location within the geographic boundary
1688 of the local authority in which the restaurant is to be located for establishing a restaurant liquor
1689 license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
1690 (c) With respect to the establishment of a restaurant liquor license, the commission
1691 may authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
1692 (i) the community location at issue is:
1693 (A) a public library; or
1694 (B) a public park;
1695 (ii) the local authority grants its written consent to the variance;
1696 (iii) the commission finds that alternative locations for establishing a restaurant liquor
1697 license in the community are limited;
1698 (iv) a public hearing is held in the city, town, or county, and where practical in the
1699 neighborhood concerned;

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- 56 - 1700 (v) after giving full consideration to all of the attending circumstances and the policies
1701 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
1702 restaurant liquor license would not be detrimental to the public health, peace, safety, and
1703 welfare of the community; and
1704 (vi) (A) the community location governing authority gives its written consent to the
1705 variance; or
1706 (B) when written consent is not given by the community location governing authority,
1707 the commission finds that the applicant has established that:
1708 (I) there is substantial unmet public demand to consume alcohol in a public setting
1709 within the geographic boundary of the local authority in which the restaurant is to be located;
1710 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1711 described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a restaurant
1712 liquor license; and
1713 (III) there is no reasonably viable alternative location within the geographic boundary
1714 of the local authority in which the restaurant is to be located for establishing a restaurant liquor
1715 license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
1716 (d) With respect to the premises of a restaurant liquor license [issued] granted by the
1717 commission that undergoes a change of ownership, the commission may waive or vary the
1718 proximity requirements of Subsection (4)(a) in considering whether to grant a restaurant liquor
1719 license to the new owner of the premises if:
1720 (i) (A) the premises previously received a variance reducing the proximity requirement
1721 of Subsection (4)(a)(i); or
1722 (B) the premises received a variance reducing the proximity requirement of Subsection
1723 (4)(a)(ii) on or before May 4, 2008; or
1724 (ii) a variance from proximity requirements was otherwise allowed under this title.
1725 (e) With respect to the premises of a restaurant liquor license granted by the
1726 commission that undergoes a change of ownership, the commission shall waive or vary the
1727 proximity requirements of Subsection (4)(a) in considering whether to grant a restaurant liquor
1728 license to the new owner of the premises if:
1729 (i) when a restaurant liquor license was granted to a previous owner, the premises met
1730 the proximity requirements of Subsection (4)(a);

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- 57 - 1731 (ii) the premises has had a restaurant liquor license at all times since the restaurant
1732 liquor license described in Subsection (4)(e)(i) was granted without a variance; and
1733 (iii) the community location located within the proximity requirements of Subsection
1734 (4)(a) after the day on which the restaurant liquor license described in Subsection (4)(e)(i) was
1735 granted.
1736 [(e)] (f) The 600 foot limitation described in Subsection (4)(a)(i) is measured from the
1737 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
1738 community location.
1739 (5) (a) Nothing in this section prevents the commission from considering the proximity
1740 of any educational, religious, and recreational facility, or any other relevant factor in reaching a
1741 decision on a proposed location.
1742 (b) For purposes of this Subsection (5), "educational facility" includes:
1743 (i) a nursery school;
1744 (ii) an infant day care center; and
1745 (iii) a trade and technical school.
1746 Section 15. Section 32A-4-102 is amended to read:
1747 32A-4-102. Application and renewal requirements.
1748 (1) A person seeking a restaurant liquor license under this part shall file a written
1749 application with the department, in a form prescribed by the department. It shall be
1750 accompanied by:
1751 (a) a nonrefundable $250 application fee;
1752 (b) an initial license fee of $1,750, which is refundable if a license is not granted;
1753 (c) written consent of the local authority;
1754 (d) a copy of the applicant's current business license;
1755 (e) evidence of proximity to any community location, with proximity requirements
1756 being governed by Section 32A-4-101 ;
1757 (f) a bond as specified by Section 32A-4-105 ;
1758 (g) a floor plan of the restaurant, including consumption areas and the area where the
1759 applicant proposes to keep, store, and sell liquor;
1760 (h) evidence that the restaurant is carrying public liability insurance in an amount and
1761 form satisfactory to the department;

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- 58 - 1762 (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
1763 [$500,000] $1,000,000 per occurrence and [$1,000,000] $2,000,000 in the aggregate;
1764 (j) a signed consent form stating that the restaurant will permit any authorized
1765 representative of the commission, department, or any law enforcement officer unrestricted right
1766 to enter the restaurant;
1767 (k) in the case of an applicant that is a partnership, corporation, or limited liability
1768 company, proper verification evidencing that the person or persons signing the restaurant
1769 application are authorized to so act on behalf of the partnership, corporation, or limited liability
1770 company; and
1771 (l) any other information the commission or department may require.
1772 (2) (a) [All] A restaurant liquor [licenses expire] license expires on October 31 of each
1773 year.
1774 (b) A person desiring to renew the person's restaurant liquor license shall by no later
1775 than September 30 submit:
1776 (i) a completed renewal application to the department; and
1777 (ii) a renewal fee in the following amount:
1778 Gross Cost of Liquor in Previous License Year for the Licensee Renewal Fee
1779 under $5,000 $750
1780 equals or exceeds $5,000 but less than $10,000 $900
1781 equals or exceeds $10,000 but less than $25,000 $1,250
1782 equals or exceeds $25,000 $1,500
1783 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
1784 the license effective on the date the existing license expires.
1785 (d) A renewal application shall be in a form as prescribed by the department.
1786 (3) To ensure compliance with Subsection 32A-4-106 (25), the commission may
1787 suspend or revoke a restaurant liquor license if the restaurant liquor licensee does not
1788 immediately notify the department of any change in:
1789 (a) ownership of the restaurant;
1790 (b) for a corporate owner, the:
1791 (i) corporate officers or directors; or
1792 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the

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- 59 - 1793 corporation; or
1794 (c) for a limited liability company:
1795 (i) managers; or
1796 (ii) members owning at least 20% of the limited liability company.
1797 Section 16. Section 32A-4-106 is amended to read:
1798 32A-4-106. Operational restrictions.
1799 A person granted a restaurant liquor license and the employees and management
1800 personnel of the restaurant shall comply with the following conditions and requirements.
1801 Failure to comply may result in a suspension or revocation of the restaurant liquor license or
1802 other disciplinary action taken against individual employees or management personnel.
1803 (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from a state
1804 store or package agency.
1805 (b) Liquor purchased from a state store or package agency may be transported by the
1806 restaurant liquor licensee from the place of purchase to the licensed premises.
1807 (c) Payment for liquor shall be made in accordance with rules established by the
1808 commission.
1809 (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
1810 a quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated metered
1811 dispensing system approved by the department in accordance with commission rules adopted
1812 under this title, except that:
1813 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
1814 system if used as a secondary flavoring ingredient in a beverage subject to the following
1815 restrictions:
1816 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
1817 a primary spirituous liquor;
1818 (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
1819 (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
1820 on the floor plan provided to the department; and
1821 (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
1822 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
1823 system if used:

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- 60 - 1824 (i) as a flavoring on a dessert; and
1825 (ii) in the preparation of a flaming food dish, drink, or dessert;
1826 (c) a restaurant patron may have no more than 2.5 ounces of spirituous liquor at a time;
1827 and
1828 (d) a restaurant patron may have no more than one spirituous liquor drink at a time
1829 before the patron.
1830 (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
1831 exceed five ounces per glass or individual portion.
1832 (ii) An individual portion of wine may be served to a patron in more than one glass as
1833 long as the total amount of wine does not exceed five ounces.
1834 (iii) An individual portion of wine is considered to be one alcoholic beverage under
1835 Subsection (7)[(e)](g).
1836 (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
1837 fixed by the commission to a table of four or more persons.
1838 (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
1839 fixed by the commission to a table of less than four persons.
1840 (c) A wine service may be performed and a service charge assessed by a restaurant
1841 liquor licensee as authorized by commission rule for wine purchased at the restaurant.
1842 (4) (a) Heavy beer may be served in an original container not exceeding one liter at a
1843 price fixed by the commission.
1844 (b) A flavored malt beverage may be served in an original container not exceeding one
1845 liter at a price fixed by the commission.
1846 (c) A service charge may be assessed by a restaurant liquor licensee as authorized by
1847 commission rule for heavy beer or a flavored malt beverage purchased at the restaurant.
1848 (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant liquor licensee may sell beer for
1849 on-premise consumption:
1850 (A) in an open container; and
1851 (B) on draft.
1852 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
1853 not exceed two liters, except that beer may not be sold to an individual patron in a size of
1854 container that exceeds one liter.

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- 61 - 1855 (b) A restaurant liquor licensee that sells beer pursuant to Subsection (5)(a):
1856 (i) may do so without obtaining a separate on-premise beer retailer license from the
1857 commission; and
1858 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
1859 Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
1860 inconsistent with or less restrictive than the operational restrictions under this part.
1861 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
1862 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
1863 restaurant's:
1864 (i) state liquor license; and
1865 (ii) alcoholic beverage license issued by the local authority.
1866 (6) An alcoholic beverage may not be stored, served, or sold in a place other than as
1867 designated in the restaurant liquor licensee's application, unless the restaurant liquor licensee
1868 first applies for and receives approval from the department for a change of location within the
1869 restaurant.
1870 (7) (a) (i) As used in this Subsection (7), and subject to Subsection (7)(a)(ii),
1871 "grandfathered bar structure" means a bar structure in a restaurant that:
1872 (A) as of May 11, 2009 has:
1873 (I) (Aa) patron seating at the bar structure;
1874 (Bb) a partition at one or more locations on the bar structure that is along the width of
1875 the bar structure; and
1876 (Cc) facilities for the dispensing or storage of an alcoholic beverage on the portion of
1877 the bar structure that is separated by the partition described in Subsection (7)(a)(i)(A)(I)(Bb); or
1878 (II) (Aa) patron seating at the bar structure;
1879 (Bb) a partition at one or more locations on the bar structure that is along the length of
1880 the bar structure; and
1881 (Cc) facilities for the dispensing or storage of an alcoholic beverage:
1882 (Ii) on the portion of the bar structure that is separated by a partition described in
1883 Subsection (7)(a)(i)(A)(II)(Bb); or
1884 (IIii) adjacent to the bar structure in a manner visible to a patron sitting at the bar
1885 structure;

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- 62 - 1886 (B) is not operational as of May 12, 2009 and:
1887 (I) an applicant for a restaurant liquor license under this chapter:
1888 (Aa) has as of May 12, 2009, a building permit to construct the restaurant;
1889 (Bb) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
1890 defined by rule made by the commission in accordance with Title 63G, Chapter 3, Utah
1891 Administrative Rulemaking Act; and
1892 (Cc) is granted a restaurant liquor license by the commission under this chapter by no
1893 later than December 31, 2009; and
1894 (II) the restaurant described in Subsection (7)(a)(i)(C)(I) has a bar structure described
1895 in Subsection (7)(a)(i)(A);
1896 (C) as of May 12, 2009, has no patron seating at the bar structure; or
1897 (D) is not operational as of May 12, 2009 and:
1898 (I) an applicant for a restaurant liquor license under this chapter:
1899 (Aa) has as of May 12, 2009, a building permit to construct the restaurant;
1900 (Bb) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
1901 defined by rule made by the commission in accordance with Title 63G, Chapter 3, Utah
1902 Administrative Rulemaking Act; and
1903 (Cc) is granted a restaurant liquor license by the commission under this chapter by no
1904 later than December 31, 2009; and
1905 (II) the restaurant described in Subsection (7)(a)(i)(D)(I) has a bar structure described
1906 in Subsection (7)(a)(i)(C).
1907 (ii) "Grandfathered bar structure" does not include a grandfathered bar structure
1908 described in Subsection (7)(a)(i) on or after the day on which a restaurant remodels the
1909 grandfathered bar structure, as defined by rule made by the commission in accordance with
1910 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1911 (iii) Subject to Subsection (7)(a)(ii), a grandfathered bar structure remains a
1912 grandfathered bar structure notwithstanding whether the restaurant undergoes a change of
1913 ownership.
1914 [(7) (a)] (b) (i) A patron may only make an alcoholic beverage purchase in the
1915 restaurant from and be served by a person employed, designated, and trained by the restaurant
1916 liquor licensee to sell and serve an alcoholic beverage.

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- 63 - 1917 (ii) Only a person employed, designated, and trained by a restaurant liquor licensee
1918 may sell, serve, or deliver an alcoholic beverage to a patron of a restaurant.
1919 [(ii)] (iii) Notwithstanding Subsection (7)[(a)](b)(i) or (ii), a patron who purchases
1920 bottled wine from an employee of the restaurant or carries bottled wine onto the premises of
1921 the restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the
1922 patron or others at the patron's table.
1923 [(b) An alcoholic beverage shall be delivered by a server to the patron.]
1924 (c) [An] A patron may consume an alcoholic beverage [may] only [be consumed]:
1925 (i) at:
1926 (A) the patron's table [or];
1927 (B) a counter; or
1928 (C) a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B); and
1929 (ii) where food is served.
1930 (d) [An] (i) An alcoholic beverage may not be served to or consumed by a patron at a
1931 bar structure that is not a grandfathered bar structure described in Subsection (7)(a)(i)(A) or
1932 (B).
1933 (ii) A patron who is 21 years of age or older may:
1934 (A) sit at a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B);
1935 (B) be served an alcoholic beverage at a grandfathered bar structure described in
1936 Subsection (7)(a)(i)(A) or (B); and
1937 (C) consume an alcoholic beverage at a grandfathered bar structure described in
1938 Subsection (7)(a)(i)(A) or (B).
1939 (iii) Except as provided in Subsection (7)(d)(iv), a restaurant liquor licensee may not
1940 permit a minor to, and a minor may not:
1941 (A) sit at a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B); or
1942 (B) consume food or beverages at a bar structure described in Subsection (7)(a)(i)(A)
1943 or (B).
1944 (iv) (A) A minor may be at a grandfathered bar structure described in Subsection
1945 (7)(a)(i)(A) or (B) if the minor is employed by a restaurant liquor licensee:
1946 (I) as provided in Subsection (16)(b); or
1947 (II) to perform maintenance and cleaning services during an hour when the restaurant

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- 64 - 1948 liquor licensee is not open for business.
1949 (B) A minor may momentarily pass by a grandfathered bar structure described in
1950 Subsection (7)(a)(i)(A) or (B) without remaining or sitting at the bar structure en route to an
1951 area of a restaurant liquor licensee's premises in which the minor is permitted to be.
1952 (e) Except as provided in Subsection (14), a restaurant liquor licensee may dispense an
1953 alcoholic beverage only:
1954 (i) from:
1955 (A) a grandfathered bar structure;
1956 (B) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
1957 the grandfathered bar structure if that area is used to dispense an alcoholic beverage or
1958 alcoholic product as of May 12, 2009; or
1959 (C) an area that is:
1960 (I) separated from an area for the consumption of food by a restaurant patron by a solid,
1961 opaque, permanent structural barrier such that the facilities for the dispensing or storage of an
1962 alcoholic beverage or alcoholic product are:
1963 (Aa) not readily visible to a restaurant patron; and
1964 (Bb) not accessible by a restaurant patron; and
1965 (II) apart from an area used:
1966 (Aa) for dining;
1967 (Bb) for staging; or
1968 (Cc) as a lobby or waiting area;
1969 (ii) if the restaurant liquor licensee uses an alcoholic beverage or alcoholic product that
1970 is:
1971 (A) stored in an area described in Subsection (7)(e)(i); or
1972 (B) on the premises of the restaurant liquor licensee in an area not described in
1973 Subsection (7)(e)(i) if:
1974 (I) immediately before the alcoholic beverage or alcoholic product is dispensed it is in
1975 an unopened package;
1976 (II) the unopened package is taken to an area described in Subsection (7)(e)(i) before it
1977 is opened; and
1978 (III) once opened, the package is kept in an area described in Subsection (7)(e)(i); and

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House Floor Amendments 3-11-2009 dd/po 1979

(iii) if any instrument or equipment used to dispense an alcoholic beverage or alcoholic
1980 product is located in an area described in Subsection (7)(e)(i).
1981 (f) (i) A restaurant liquor licensee that has a grandfathered bar structure may receive a
1982 credit for purchases from a state store or package agency if:
1983 (A) the restaurant liquor licensee completes a remodel of the grandfathered bar
1984 structure by no later than December 31, 2011;
1985 (B) the remodeling described in Subsection (7)(f)(i)(A) results in the restaurant
1986 engaging in an activity described in Subsection (7)(e) only in an area described in Subsection
1987 (7)(e)(i)(C);
1988 (C) the restaurant liquor licensee requests the credit by no later than April 1, 2012;
1989 (D) the department determines that the restaurant liquor licensee has completed a
1990 remodel described in Subsections (7)(f)(i)(A) and (B); and
1991 (E) the department authorizes the credit, including the amount of the credit under
1992 Subsection (7)(f)(ii), on the basis that:
1993 (I) the restaurant liquor licensee complied with this Subsection (7); and
1994 (II) the aggregate of H. [ all ] .H credits authorized under this Subsection (7)(f) H. and
1994a Subsection 32A-4-307(7)(f) .H before the
1995 current authorization does not exceed H. [ $1,090,000 ] the amount described in Subsection
1995a (7)(f)(v)(A) .H .
1996 (ii) The amount of the credit described in this Subsection (7)(f) is the lesser of:
1997 (A) the actual costs of the remodel as evidenced by receipts, copies of which are
1998 provided to the department as part of the request for the credit; or
1999 (B) $30,000.
2000 (iii) For a restaurant liquor licensee, a credit under this Subsection (7)(f):
2001 (A) begins on the day on which the department authorizes the credit under Subsection
2002 (7)(f)(i); and
2003 (B) ends the day on which the restaurant liquor licensee uses all of the credit.
2004 (iv) The department shall by contract provide for how a package agency accounts for a
2005 credit purchase made at the package agency by a restaurant liquor licensee under this
2006 Subsection (7)(f).
2007 (v) (A) Notwithstanding the other provisions of this Subsection (7)(f), the department
2008 may not authorize a credit if the aggregate of H. [ all ] .H credits authorized under this
2008a Subsection (7)(f)
2009 H. [ before the authorization ] and Subsection 32A-4-307(7)(f) before the department

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- 65a -

House Floor Amendments 3-11-2009 dd/po 2009a

authorizes the credit .H exceeds H. :
2009b (I) $1,000,000, for the aggregate of credits under this Subsection (7)(f) and Subsection
2009c 32A-4-307(7)(f), if the credit could be used on or before June 30, 2010; and
2009d (II) subject to Subsection (7)(v)(A)(I), .H $1,090,000 H. for the aggregate of all
2009e credits that can be authorized under this Subsection (7)(f) and
2009f Subsection 32A-4-307(7)(f) .H .

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- 66 - 2010 (B) The department shall authorize credits in the order that the department receives a
2011 request described in Subsection (7)(f)(i)(C) from a restaurant liquor licensee requesting a credit
2012 under this Subsection (7)(f).
2013 [(e)] (g) A restaurant patron may have no more than two alcoholic beverages of any
2014 kind at a time before the patron, subject to the limitation in Subsection (2)(d).
2015 (8) (a) [The] A liquor storage area shall remain locked at all times other than those
2016 hours and days when liquor sales are authorized by law.
2017 (b) A restaurant liquor licensee shall store an alcoholic beverage or alcoholic product
2018 in a storage area described in Subsection (7)(e)(i).
2019 (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
2020 restaurant of a restaurant liquor licensee on any day after 12 midnight or before 12 noon.
2021 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
2022 Licenses, for on-premise beer licensees.
2023 (10) An alcoholic beverage may not be sold except in connection with an order for
2024 food prepared, sold, and served at the restaurant.
2025 (11) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
2026 (a) minor;
2027 (b) person actually, apparently, or obviously intoxicated;
2028 (c) known habitual drunkard; or
2029 (d) known interdicted person.
2030 (12) (a) (i) Liquor may be sold only at a price fixed by the commission.
2031 (ii) Liquor may not be sold at a discount price on any date or at any time.
2032 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
2033 beverage to the restaurant liquor licensee.
2034 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
2035 over consumption or intoxication.
2036 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
2037 hours of a restaurant liquor licensee's business day such as a "happy hour."
2038 (e) More than one alcoholic beverage may not be sold or served for the price of a single
2039 alcoholic beverage.
2040 (f) An indefinite or unlimited number of alcoholic beverages during a set period may

Text Box
- 67 - 2041 not be sold or served for a fixed price.
2042 (g) A restaurant liquor licensee may not engage in a public promotion involving or
2043 offering free an alcoholic beverage to the general public.
2044 (13) An alcoholic beverage may not be purchased for a patron of a restaurant by:
2045 (a) the restaurant liquor licensee; or
2046 (b) an employee or agent of the restaurant liquor licensee.
2047 (14) (a) A person may not bring onto the premises of a restaurant liquor licensee an
2048 alcoholic beverage for on-premise consumption, except a person may bring, subject to the
2049 discretion of the restaurant liquor licensee, bottled wine onto the premises of a restaurant liquor
2050 licensee for on-premise consumption.
2051 (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or an
2052 officer, manager, employee, or agent of the restaurant liquor licensee may not allow:
2053 (i) a person to bring onto the restaurant premises an alcoholic beverage for on-premise
2054 consumption; or
2055 (ii) consumption of an alcoholic beverage described in this Subsection (14) on the
2056 restaurant liquor licensee's premises.
2057 (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
2058 or other representative of the restaurant liquor licensee upon entering the restaurant.
2059 (d) A wine service may be performed and a service charge assessed by a restaurant
2060 liquor licensee as authorized by commission rule for wine carried in by a patron.
2061 (15) (a) Except as provided in Subsection (15)(b), a restaurant liquor licensee or an
2062 employee of the restaurant liquor licensee may not permit a restaurant patron to carry from the
2063 restaurant premises an open container that:
2064 (i) is used primarily for drinking purposes; and
2065 (ii) contains an alcoholic beverage.
2066 (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
2067 restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
2068 onto the premises of the restaurant in accordance with Subsection (14), only if the bottle is
2069 recorked or recapped before removal.
2070 (16) (a) A restaurant liquor licensee may not employ a minor to sell or dispense an
2071 alcoholic beverage.

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- 68 - 2072 (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
2073 employed to enter the sale at a cash register or other sales recording device.
2074 (17) An employee of a restaurant liquor licensee, while on duty, may not:
2075 (a) consume an alcoholic beverage; or
2076 (b) be intoxicated.
2077 (18) A charge or fee made in connection with the sale, service, or consumption of liquor
2078 may be stated in food or alcoholic beverage menus including:
2079 (a) a set-up charge;
2080 (b) a service charge; or
2081 (c) a chilling fee.
2082 (19) A restaurant liquor licensee shall display in a prominent place in the restaurant:
2083 (a) the liquor license that is [issued] granted by the department;
2084 (b) a list of the types and brand names of liquor being served through its calibrated
2085 metered dispensing system; and
2086 (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
2087 drugs is a serious crime that is prosecuted aggressively in Utah."
2088 (20) A restaurant liquor licensee may not on the premises of the restaurant liquor
2089 licensee:
2090 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
2091 Chapter 10, Part 11, Gambling;
2092 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
2093 Part 11, Gambling; or
2094 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
2095 the risking of something of value for a return or for an outcome when the return or outcome is
2096 based upon an element of chance, excluding the playing of an amusement device that confers
2097 only an immediate and unrecorded right of replay not exchangeable for value.
2098 (21) (a) A restaurant liquor licensee shall maintain an expense ledger or record showing
2099 in detail:
2100 (i) quarterly expenditures made separately for:
2101 (A) malt or brewed beverages;
2102 (B) set-ups;

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- 69 - 2103 (C) liquor;
2104 (D) food; and
2105 (E) all other items required by the department; and
2106 (ii) sales made separately for:
2107 (A) malt or brewed beverages;
2108 (B) set-ups;
2109 (C) food; and
2110 (D) all other items required by the department.
2111 (b) A restaurant liquor licensee shall keep a record required by Subsection (21)(a):
2112 (i) in a form approved by the department; and
2113 (ii) current for each three-month period.
2114 (c) An expenditure shall be supported by:
2115 (i) a delivery ticket;
2116 (ii) an invoice;
2117 (iii) a receipted bill;
2118 (iv) a canceled check;
2119 (v) a petty cash voucher; or
2120 (vi) other sustaining datum or memorandum.
2121 (d) In addition to a ledger or record required under Subsection (21)(a), a restaurant
2122 liquor licensee shall maintain accounting and other records and documents as the department
2123 may require.
2124 (e) A restaurant liquor licensee or person acting for the restaurant, who knowingly
2125 forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
2126 other document of the restaurant that is required to be made, maintained, or preserved by this
2127 title or the rules of the commission for the purpose of deceiving the commission or the
2128 department, or an official or employee of the commission or department, is subject to:
2129 (i) the suspension or revocation of the restaurant's liquor license; and
2130 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
2131 (22) (a) A restaurant liquor licensee may not close or cease operation for a period
2132 longer than 240 hours, unless:
2133 (i) the restaurant liquor licensee notifies the department in writing at least seven days

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- 70 - 2134 before the day on which the restaurant liquor licensee closes or ceases operation; and
2135 (ii) the closure or cessation of operation is first approved by the department.
2136 (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the
2137 restaurant liquor licensee shall immediately notify the department by telephone.
2138 (c) (i) The department may authorize a closure or cessation of operation for a period
2139 not to exceed 60 days.
2140 (ii) The department may extend the initial period an additional 30 days upon:
2141 (A) written request of the restaurant liquor licensee; and
2142 (B) a showing of good cause.
2143 (iii) A closure or cessation of operation may not exceed a total of 90 days without
2144 commission approval.
2145 (d) A notice shall include:
2146 (i) the dates of closure or cessation of operation;
2147 (ii) the reason for the closure or cessation of operation; and
2148 (iii) the date on which the restaurant liquor licensee will reopen or resume operation.
2149 (e) Failure of the restaurant liquor licensee to provide notice and to obtain department
2150 authorization before closure or cessation of operation results in an automatic forfeiture of:
2151 (i) the license; and
2152 (ii) the unused portion of the license fee for the remainder of the license year effective
2153 immediately.
2154 (f) Failure of the restaurant liquor licensee to reopen or resume operation by the
2155 approved date results in an automatic forfeiture of:
2156 (i) the license; and
2157 (ii) the unused portion of the license fee for the remainder of the license year.
2158 (23) A restaurant liquor licensee shall maintain at least 70% of its total restaurant
2159 business from the sale of food, which does not include mix for an alcoholic beverage or service
2160 charges.
2161 (24) A restaurant liquor license may not be transferred from one location to another,
2162 without prior written approval of the commission.
2163 (25) (a) A person, having been granted a restaurant liquor license may not sell, transfer,
2164 assign, exchange, barter, give, or attempt in any way to dispose of the restaurant liquor license

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- 71 - 2165 to another person whether for monetary gain or not.
2166 (b) A restaurant liquor license has no monetary value for the purpose of any type of
2167 disposition.
2168 (26) A server of an alcoholic beverage in a restaurant liquor licensee's establishment
2169 shall keep a written beverage tab for each table or group that orders or consumes an alcoholic
2170 beverage on the premises. The beverage tab shall list the type and amount of an alcoholic
2171 beverage ordered or consumed.
2172 (27) A person's willingness to serve an alcoholic beverage may not be made a
2173 condition of employment as a server with a restaurant that has a restaurant liquor license.
2174 (28) A restaurant liquor licensee or an employee of the restaurant liquor licensee may
2175 not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
2176 Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
2177 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
2178 58-37-2 ; or
2179 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
2180 Section 58-37a-3 .
2181 Section 17. Section 32A-4-202 is amended to read:
2182 32A-4-202. Application and renewal requirements.
2183 (1) A person seeking an airport lounge liquor license under this part shall file a written
2184 application with the department, in a form prescribed by the department, accompanied by:
2185 (a) a nonrefundable $250 application fee;
2186 (b) an initial license fee of $7,000, which is refundable if a license is not granted;
2187 (c) written consent of the local and airport authority;
2188 (d) a copy of the applicant's current business license;
2189 (e) a bond as specified by Section 32A-4-205 ;
2190 (f) a floor plan of the airport lounge, including consumption areas and the area where
2191 the applicant proposes to keep, store, and sell liquor;
2192 (g) a copy of the sign proposed to be used by the licensee on its premises to inform the
2193 public that alcoholic beverages are sold and consumed there;
2194 (h) evidence that the airport lounge is carrying public liability insurance in an amount
2195 and form satisfactory to the department;

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- 72 - 2196 (i) evidence that the airport lounge is carrying dramshop insurance coverage of at least
2197 [$500,000] $1,000,000 per occurrence and [$1,000,000] $2,000,000 in the aggregate;
2198 (j) a signed consent form stating that the airport lounge will permit any authorized
2199 representative of the commission, department, or any law enforcement officer unrestricted right
2200 to enter the airport lounge;
2201 (k) in the case of an applicant that is a partnership, corporation, or limited liability
2202 company, proper verification evidencing that the person or persons signing the airport lounge
2203 application are authorized to so act on behalf of the partnership, corporation, or limited liability
2204 company; and
2205 (l) any other information the commission or department may require.
2206 (2) (a) [All] An airport lounge liquor [licenses expire] license expires on October 31 of
2207 each year.
2208 (b) A person desiring to renew that person's airport lounge liquor license shall submit a
2209 renewal fee of $5,000 and a completed renewal application to the department no later than
2210 September 30.
2211 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
2212 the license, effective on the date the existing license expires.
2213 (d) Renewal applications shall be in a form as prescribed by the department.
2214 (3) To ensure compliance with Subsection 32A-4-206 (21), the commission may revoke
2215 an airport lounge liquor license if the airport liquor licensee does not immediately notify the
2216 department of any change in:
2217 (a) ownership of the licensee;
2218 (b) for a corporate owner, the:
2219 (i) corporate officers or directors; or
2220 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
2221 corporation; or
2222 (c) for a limited liability company:
2223 (i) managers; or
2224 (ii) members owning at least 20% of the limited liability company.
2225 Section 18. Section 32A-4-302 is amended to read:
2226 32A-4-302. Commission's power to grant licenses -- Limitations.

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- 73 - 2227 (1) A restaurant wanting to sell and allow the consumption of only wine, heavy beer,
2228 and beer on its premises, but not spirituous liquor or[, on or after October 1, 2008,] a flavored
2229 malt beverage, shall obtain a limited restaurant license from the commission as provided in this
2230 part before selling or allowing the consumption of wine, heavy beer, or beer on its premises.
2231 (2) (a) Subject to the other provisions of this section and Subsection 32A-4a-201 (2),
2232 the commission may [issue] grant limited restaurant licenses for the purpose of establishing
2233 limited restaurant outlets at places and in numbers the commission considers proper for the
2234 storage, sale, and consumption of wine, heavy beer, and beer on premises operated as public
2235 restaurants.
2236 (b) The total number of limited restaurant licenses [issued] granted under this part may
2237 not at any time aggregate more than that number determined by dividing the population of the
2238 state by 9,300.
2239 (c) For purposes of this Subsection (2), population shall be determined by:
2240 (i) the most recent United States decennial or special census; or
2241 (ii) another population determination made by the United States or state governments.
2242 (3) (a) (i) The commission may [issue] grant seasonal limited restaurant licenses
2243 established in areas the commission considers necessary.
2244 (ii) A seasonal limited restaurant license shall be for a period of six consecutive
2245 months.
2246 (b) (i) A limited restaurant license [issued] granted for operation during a summer time
2247 period is known as a "Seasonal A" limited restaurant license. The period of operation for a
2248 "Seasonal A" limited restaurant license shall:
2249 (A) begin on May 1; and
2250 (B) end on October 31.
2251 (ii) A limited restaurant license [issued] granted for operation during a winter time
2252 period is known as a "Seasonal B" limited restaurant license. The period of operation for a
2253 "Seasonal B" limited restaurant license shall:
2254 (A) begin on November 1; and
2255 (B) end on April 30.
2256 (iii) In determining the number of limited restaurant licenses that the commission may
2257 [issue] grant under this section:

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- 74 - 2258 (A) a seasonal limited restaurant license is counted as [1/2] one-half of one limited
2259 restaurant license; and
2260 (B) each "Seasonal A" limited restaurant license shall be paired with a "Seasonal B"
2261 limited restaurant license.
2262 (c) If the location, design, and construction of a hotel may require more than one
2263 limited restaurant sales location within the hotel to serve the public convenience, the
2264 commission may authorize the sale of wine, heavy beer, and beer at as many as three limited
2265 restaurant locations within the hotel under one license if:
2266 (i) the hotel has a minimum of 150 guest rooms; and
2267 (ii) all locations under the license are:
2268 (A) within the same hotel facility; and
2269 (B) on premises that are:
2270 (I) managed or operated by the licensee; and
2271 (II) owned or leased by the licensee.
2272 (d) A facility other than a hotel shall have a separate limited restaurant license for each
2273 restaurant where wine, heavy beer, and beer are sold.
2274 (4) (a) Except as otherwise provided in this Subsection (4)[(b), (c), or (d)], the
2275 premises of a limited restaurant license may not be established:
2276 (i) within 600 feet of a community location, as measured by the method in Subsection
2277 (4)[(e)](f); or
2278 (ii) within 200 feet of a community location, measured in a straight line from the
2279 nearest entrance of the proposed outlet to the nearest property boundary of the community
2280 location.
2281 (b) With respect to the establishment of a limited restaurant license, the commission
2282 may authorize a variance to reduce the proximity requirement of Subsection (4)(a)(i) if:
2283 (i) the local authority grants its written consent to the variance;
2284 (ii) the commission finds that alternative locations for establishing a limited restaurant
2285 license in the community are limited;
2286 (iii) a public hearing is held in the city, town, or county, and where practical in the
2287 neighborhood concerned;
2288 (iv) after giving full consideration to all of the attending circumstances and the policies

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- 75 - 2289 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
2290 license would not be detrimental to the public health, peace, safety, and welfare of the
2291 community; and
2292 (v) (A) the community location governing authority gives its written consent to the
2293 variance; or
2294 (B) when written consent is not given by the community location governing authority,
2295 the commission finds that the applicant has established that:
2296 (I) there is substantial unmet public demand to consume alcohol in a public setting
2297 within the geographic boundary of the local authority in which the limited restaurant licensee is
2298 to be located;
2299 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
2300 described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a limited
2301 restaurant license; and
2302 (III) there is no reasonably viable alternative location within the geographic boundary
2303 of the local authority in which the limited restaurant licensee is to be located for establishing a
2304 limited restaurant license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
2305 (c) With respect to the establishment of a limited restaurant license, the commission
2306 may authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
2307 (i) the community location at issue is:
2308 (A) a public library; or
2309 (B) a public park;
2310 (ii) the local authority grants its written consent to the variance;
2311 (iii) the commission finds that alternative locations for establishing a limited restaurant
2312 license in the community are limited;
2313 (iv) a public hearing is held in the city, town, or county, and where practical in the
2314 neighborhood concerned;
2315 (v) after giving full consideration to all of the attending circumstances and the policies
2316 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
2317 limited restaurant license would not be detrimental to the public health, peace, safety, and
2318 welfare of the community; and
2319 (vi) (A) the community location governing authority gives its written consent to the

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- 76 - 2320 variance; or
2321 (B) when written consent is not given by the community location governing authority,
2322 the commission finds that the applicant has established that:
2323 (I) there is substantial unmet public demand to consume alcohol in a public setting
2324 within the geographic boundary of the local authority in which the limited restaurant licensee is
2325 to be located;
2326 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
2327 described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a limited
2328 restaurant license; and
2329 (III) there is no reasonably viable alternative location within the geographic boundary
2330 of the local authority in which the limited restaurant licensee is to be located for establishing a
2331 limited restaurant license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
2332 (d) With respect to the premises of a limited restaurant license [issued] granted by the
2333 commission that undergoes a change of ownership, the commission may waive or vary the
2334 proximity requirements of Subsection (4)(a) in considering whether to grant a limited
2335 restaurant license to the new owner of the premises if:
2336 (i) (A) the premises previously received a variance reducing the proximity requirement
2337 of Subsection (4)(a)(i); or
2338 (B) the premises received a variance reducing the proximity requirement of Subsection
2339 (4)(a)(ii) on or before May 4, 2008; or
2340 (ii) a variance from proximity requirements was otherwise allowed under this title.
2341 (e) With respect to the premises of a limited restaurant license granted by the
2342 commission that undergoes a change of ownership, the commission shall waive or vary the
2343 proximity requirements of Subsection (4)(a) in considering whether to grant a limited
2344 restaurant license to the new owner of the premises if:
2345 (i) when a limited restaurant license was granted to a previous owner, the premises met
2346 the proximity requirements of Subsection (4)(a);
2347 (ii) the premises has had a limited restaurant license at all times since the limited
2348 restaurant license described in Subsection (4)(e)(i) was granted without a variance; and
2349 (iii) the community location located within the proximity requirements of Subsection
2350 (4)(a) after the day on which the limited restaurant license described in Subsection (4)(e)(i) was

Text Box
- 77 - 2351 granted.
2352 [(e)] (f) The 600 foot limitation as described in Subsection (4)(a)(i) is measured from
2353 the nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to
2354 the property boundary of the community location.
2355 (5) (a) Nothing in this section prevents the commission from considering the proximity
2356 of any educational, religious, and recreational facility, or any other relevant factor in reaching a
2357 decision on a proposed location.
2358 (b) For purposes of this Subsection (5), "educational facility" includes:
2359 (i) a nursery school;
2360 (ii) an infant day care center; and
2361 (iii) a trade and technical school.
2362 Section 19. Section 32A-4-303 is amended to read:
2363 32A-4-303. Application and renewal requirements.
2364 (1) A person seeking a limited restaurant license under this part shall file a written
2365 application with the department, in a form prescribed by the department. The application shall
2366 be accompanied by:
2367 (a) a nonrefundable $250 application fee;
2368 (b) an initial license fee of $500, which is refundable if a license is not granted;
2369 (c) written consent of the local authority;
2370 (d) a copy of the applicant's current business license;
2371 (e) evidence of proximity to any community location, with proximity requirements
2372 being governed by Section 32A-4-302 ;
2373 (f) a bond as specified by Section 32A-4-306 ;
2374 (g) a floor plan of the restaurant, including:
2375 (i) consumption areas; and
2376 (ii) the area where the applicant proposes to keep, store, and sell wine, heavy beer, and
2377 beer;
2378 (h) evidence that the restaurant is carrying public liability insurance in an amount and
2379 form satisfactory to the department;
2380 (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
2381 [$500,000] $1,000,000 per occurrence and [$1,000,000] $2,000,000 in the aggregate;

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- 78 - 2382 (j) a signed consent form stating that the restaurant will permit any authorized
2383 representative of the commission, department, or any law enforcement officer unrestricted right
2384 to enter the restaurant;
2385 (k) in the case of an applicant that is a partnership, corporation, or limited liability
2386 company, proper verification evidencing that the person or persons signing the restaurant
2387 application are authorized to so act on behalf of the partnership, corporation, or limited liability
2388 company; and
2389 (l) any other information the commission or department may require.
2390 (2) (a) [All] A limited restaurant [licenses expire] license expires on October 31 of
2391 each year.
2392 (b) A person desiring to renew that person's limited restaurant license shall submit:
2393 (i) a renewal fee of $300; and
2394 (ii) a renewal application to the department no later than September 30.
2395 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
2396 the license effective on the date the existing license expires.
2397 (d) A renewal application shall be in a form as prescribed by the department.
2398 (3) To ensure compliance with Subsection 32A-4-307 (25), the commission may
2399 suspend or revoke a limited restaurant license if the limited restaurant licensee does not
2400 immediately notify the department of any change in:
2401 (a) ownership of the restaurant;
2402 (b) for a corporate owner, the:
2403 (i) corporate officer or directors; or
2404 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
2405 corporation; or
2406 (c) for a limited liability company:
2407 (i) managers; or
2408 (ii) members owning at least 20% of the limited liability company.
2409 Section 20. Section 32A-4-307 is amended to read:
2410 32A-4-307. Operational restrictions.
2411 A person granted a limited restaurant license and the employees and management
2412 personnel of the limited restaurant shall comply with the following conditions and

Text Box
- 79 - 2413 requirements. Failure to comply may result in a suspension or revocation of the license or
2414 other disciplinary action taken against individual employees or management personnel.
2415 (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
2416 except from a state store or package agency.
2417 (b) Wine and heavy beer purchased from a state store or package agency may be
2418 transported by the limited restaurant licensee from the place of purchase to the licensed
2419 premises.
2420 (c) Payment for wine and heavy beer shall be made in accordance with rules
2421 established by the commission.
2422 (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of the
2423 products listed in Subsection (2)(c) on the premises of the limited restaurant.
2424 (b) A product listed in Subsection (2)(c) may not be on the premises of the limited
2425 restaurant except for use:
2426 (i) as a flavoring on a dessert; and
2427 (ii) in the preparation of a flaming food dish, drink, or dessert.
2428 (c) This Subsection (2) applies to:
2429 (i) spirituous liquor; and
2430 (ii) [on or after October 1, 2008,] a flavored malt beverage.
2431 (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
2432 exceed five ounces per glass or individual portion.
2433 (ii) An individual portion may be served to a patron in more than one glass as long as
2434 the total amount of wine does not exceed five ounces.
2435 (iii) An individual portion of wine is considered to be one alcoholic beverage under
2436 Subsection (7)[(e)](g).
2437 (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
2438 fixed by the commission to a table of four or more persons.
2439 (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
2440 fixed by the commission to a table of less than four persons.
2441 (c) A wine service may be performed and a service charge assessed by the limited
2442 restaurant licensee as authorized by commission rule for wine purchased at the limited
2443 restaurant.

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- 80 - 2444 (4) (a) Heavy beer may be served in an original container not exceeding one liter at a
2445 price fixed by the commission.
2446 (b) A service charge may be assessed by the limited restaurant licensee as authorized
2447 by commission rule for heavy beer purchased at the limited restaurant.
2448 (5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer for
2449 on-premise consumption:
2450 (A) in an open container; and
2451 (B) on draft.
2452 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
2453 not exceed two liters, except that beer may not be sold to an individual patron in a size of
2454 container that exceeds one liter.
2455 (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
2456 (i) may do so without obtaining a separate on-premise beer retailer license from the
2457 commission; and
2458 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
2459 Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
2460 inconsistent with or less restrictive than the operational restrictions under this part.
2461 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
2462 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the limited
2463 restaurant's:
2464 (i) limited restaurant license; and
2465 (ii) alcoholic beverage license issued by the local authority.
2466 (6) Wine, heavy beer, and beer may not be stored, served, or sold in a place other than
2467 as designated in the limited restaurant licensee's application, unless the limited restaurant
2468 licensee first applies for and receives approval from the department for a change of location
2469 within the limited restaurant.
2470 (7) (a) (i) As used in this Subsection (7), and subject to Subsection (7)(a)(ii),
2471 "grandfathered bar structure" means a bar structure in a restaurant that:
2472 (A) as of May 11, 2009 has:
2473 (I) (Aa) patron seating at the bar structure;
2474 (Bb) a partition at one or more locations on the bar structure that is along the width of

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- 81 - 2475 the bar structure; and
2476 (Cc) facilities for the dispensing or storage of an alcoholic beverage on the portion of
2477 the bar structure that is separated by the partition described in Subsection (7)(a)(i)(A)(I)(Bb); or
2478 (II) (Aa) patron seating at the bar structure;
2479 (Bb) a partition at one or more locations on the bar structure that is along the length of
2480 the bar structure; and
2481 (Cc) facilities for the dispensing or storage of an alcoholic beverage:
2482 (Ii) on the portion of the bar structure that is separated by a partition described in
2483 Subsection (7)(a)(i)(A)(II)(Bb); or
2484 (IIii) adjacent to the bar structure in a manner visible to a patron sitting at the bar
2485 structure;
2486 (B) is not operational as of May 12, 2009 and:
2487 (I) an applicant for a limited restaurant license under this chapter:
2488 (Aa) has as of May 12, 2009, a building permit to construct the restaurant;
2489 (Bb) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
2490 defined by rule made by the commission in accordance with Title 63G, Chapter 3, Utah
2491 Administrative Rulemaking Act; and
2492 (Cc) is granted a limited restaurant license by the commission under this chapter by no
2493 later than December 31, 2009; and
2494 (II) the restaurant described in Subsection (7)(a)(i)(C)(I) has a bar structure described
2495 in Subsection (7)(a)(i)(A);
2496 (C) as of May 12, 2009, has no patron seating at the bar structure; or
2497 (D) is not operational as of May 12, 2009 and:
2498 (I) an applicant for a limited restaurant license under this chapter:
2499 (Aa) has as of May 12, 2009, a building permit to construct the restaurant;
2500 (Bb) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
2501 defined by rule made by the commission in accordance with Title 63G, Chapter 3, Utah
2502 Administrative Rulemaking Act; and
2503 (Cc) is granted a limited restaurant license by the commission under this chapter by no
2504 later than December 31, 2009; and
2505 (II) the restaurant described in Subsection (7)(a)(i)(D)(I) has a bar structure described

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- 82 - 2506 in Subsection (7)(a)(i)(C).
2507 (ii) "Grandfathered bar structure" does not include a grandfathered bar structure
2508 described in Subsection (7)(a)(i) on or after the day on which a restaurant remodels the
2509 grandfathered bar structure, as defined by rule made by the commission in accordance with
2510 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
2511 (iii) Subject to Subsection (7)(a)(ii), a grandfathered bar structure remains a
2512 grandfathered bar structure notwithstanding whether the restaurant undergoes a change of
2513 ownership.
2514 [(7) (a)] (b) (i) A patron may only make an alcoholic beverage purchase in a limited
2515 restaurant from and be served by a person employed, designated, and trained by the limited
2516 restaurant licensee to sell and serve an alcoholic beverage.
2517 (ii) Only a person employed, designated, and trained by a limited restaurant licensee
2518 may sell, serve, or deliver an alcoholic beverage to a patron of a restaurant.
2519 [(ii)] (iii) Notwithstanding Subsection (7)[(a)](b)(i) or (ii), a patron who purchases
2520 bottled wine from an employee of the limited restaurant licensee or carries bottled wine onto
2521 the premises of the limited restaurant pursuant to Subsection (14) may thereafter serve wine
2522 from the bottle to the patron or others at the patron's table.
2523 [(b) An alcoholic beverage shall be delivered by a server to the patron.]
2524 (c) [An] A patron may consume an alcoholic beverage [may] only [be consumed]:
2525 (i) at:
2526 (A) the patron's table [or];
2527 (B) a counter;
2528 (C) a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B); and
2529 (ii) where food is served.
2530 (d) [An] (i) An alcoholic beverage may not be served to or consumed by a patron at a
2531 bar structure that is not a grandfathered bar structure described in Subsection (7)(a)(i)(A) or
2532 (B).
2533 (ii) A patron who is 21 years of age or older may:
2534 (A) sit at a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B);
2535 (B) be served an alcoholic beverage at a grandfathered bar structure described in
2536 Subsection (7)(a)(i)(A) or (B); and

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- 83 - 2537 (C) consume an alcoholic beverage at a grandfathered bar structure described in
2538 Subsection (7)(a)(i)(A) or (B).
2539 (iii) Except as provided in Subsection (7)(d)(iv), a limited restaurant licensee may not
2540 permit a minor to, and a minor may not:
2541 (A) sit at a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B); or
2542 (B) consume food or beverages at a bar structure described in Subsection (7)(a)(i)(A)
2543 or (B).
2544 (iv) (A) A minor may be at a grandfathered bar structure described in Subsection
2545 (7)(a)(i)(A) or (B) if the minor is employed by a limited restaurant licensee:
2546 (I) as provided in Subsection (16)(b); or
2547 (II) to perform maintenance and cleaning services during an hour when the limited
2548 restaurant licensee is not open for business.
2549 (B) A minor may momentarily pass by a grandfathered bar structure described in
2550 Subsection (7)(a)(i)(A) or (B) without remaining or sitting at the bar structure en route to an
2551 area of a limited restaurant licensee's premises in which the minor is permitted to be.
2552 (e) Except as provided in Subsection (14), a limited restaurant licensee may dispense
2553 an alcoholic beverage only:
2554 (i) from:
2555 (A) a grandfathered bar structure;
2556 (B) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
2557 the grandfathered bar structure if that area is used to dispense an alcoholic beverage or
2558 alcoholic product as of May 12, 2009; or
2559 (C) an area that is:
2560 (I) separated from an area for the consumption of food by a restaurant patron by a solid,
2561 opaque, permanent structural barrier such that the facilities for the dispensing or storage of an
2562 alcoholic beverage or alcoholic product are:
2563 (Aa) not readily visible to a restaurant patron; and
2564 (Bb) not accessible by a restaurant patron; and
2565 (II) apart from an area used for:
2566 (Aa) dining;
2567 (Bb) staging; or

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House Floor Amendments 3-11-2009 dd/po 2568

(Cc) as a lobby or waiting area;
2569 (ii) if the limited restaurant licensee uses an alcoholic beverage or alcoholic product
2570 that is:
2571 (A) stored in an area described in Subsection (7)(e)(i); or
2572 (B) on the premises of the limited restaurant licensee in an area not described in
2573 Subsection (7)(e)(i) if:
2574 (I) immediately before the alcoholic beverage or alcoholic product is dispensed it is in
2575 an unopened package;
2576 (II) the unopened package is taken to an area described in Subsection (7)(e)(i) before it
2577 is opened; and
2578 (III) once opened, the package is kept in an area described in Subsection (7)(e)(i); and
2579 (iii) if any instrument or equipment used to dispense an alcoholic beverage is located in
2580 an area described in Subsection (7)(e)(i).
2581 (f) (i) A limited restaurant licensee that has a grandfathered bar structure may receive a
2582 credit for purchases from a state store or package agency if:
2583 (A) the limited restaurant licensee completes a remodel of the grandfathered bar
2584 structure by no later than December 31, 2011;
2585 (B) the remodeling described in Subsection (7)(f)(i)(A) results in the restaurant
2586 engaging in an activity described in Subsection (7)(e) only in an area described in Subsection
2587 (7)(e)(i)(C);
2588 (C) the limited restaurant licensee requests the credit by no later than April 1, 2012;
2589 (D) the department determines that the limited restaurant licensee has completed a
2590 remodel described in Subsections (7)(f)(i)(A) and (B); and
2591 (E) the department authorizes the credit, including the amount of the credit under
2592 Subsection (7)(f)(ii), on the basis that:
2593 (I) the limited restaurant licensee complied with this Subsection (7); and
2594 (II) the aggregate of H. [ all ] .H credits authorized under this Subsection (7)(f) H. and
2594a Subsection 32A-4-106(7)(f) .H before the
2595 current authorization does not exceed H. [ $1,090,000 ] the amount described in Subsection
2595a (7)(f)(v)(A) .H .
2596 (ii) The amount of the credit described in this Subsection (7)(f) is the lesser of:
2597 (A) the actual costs of the remodel as evidenced by receipts, copies of which are
2598 provided to the department as part of the request for the credit; or

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House Floor Amendments 3-11-2009 dd/po 2599

(B) $30,000.
2600 (iii) For a limited restaurant licensee, a credit under this Subsection (7)(f):
2601 (A) begins on the day on which the department authorizes the credit under Subsection
2602 (7)(f)(i); and
2603 (B) ends the day on which the limited restaurant licensee uses all of the credit.
2604 (iv) The department shall by contract provide for how a package agency accounts for a
2605 credit purchase made at the package agency by a limited restaurant licensee under this
2606 Subsection (7)(f).
2607 (v) (A) Notwithstanding the other provisions of this Subsection (7)(f), the department
2608 may not authorize a credit if the aggregate of H. [ all ] .H credits authorized under this
2608a Subsection (7)(f)
2609 H. [ before the authorization ] and Subsection 32A-4-106(7)(f) before the department authorizes
2609a the credit .H exceeds H. :
2609b (I) $1,000,000, for the aggregate of credits under this Subsection (7)(f) and Subsection
2609c 32A-4-106(7)(f), if the credit could be used on or before June 30, 2010; and
2609d (II) subject to Subsection (7)(v)(A)(I), .H
2609e $1,090,000 H. for the aggregate of all credits that can be authorized under this Subsection
2609f (7)(f) and Subsection 32A-4-106(7)(f) .H .
2610 (B) The department shall authorize credits in the order that the department receives a
2611 request described in Subsection (7)(f)(i)(C) from a limited restaurant licensee requesting a
2612 credit under this Subsection (7)(f).
2613 [(e)] (g) A limited restaurant patron may have no more than two alcoholic beverages of
2614 any kind at a time before the patron.
2615 (8) (a) [The] An alcoholic beverage storage area shall remain locked at all times other
2616 than those hours and days when alcoholic beverage sales are authorized by law.
2617 (b) A limited restaurant licensee shall store an alcoholic beverage or alcoholic product
2618 in a storage area described in Subsection (7)(e)(i).
2619 (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
2620 furnished at a limited restaurant on any day after 12 midnight or before 12 noon.
2621 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
2622 Licenses, for on-premise beer licensees.
2623 (10) An alcoholic beverage may not be sold except in connection with an order of food
2624 prepared, sold, and served at the limited restaurant.
2625 (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to a:
2626 (a) minor;
2627 (b) person actually, apparently, or obviously intoxicated;
2628 (c) known habitual drunkard; or
2629 (d) known interdicted person.

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- 86 - 2630 (12) (a) (i) Wine and heavy beer may be sold only at a price fixed by the commission.
2631 (ii) Wine and heavy beer may not be sold at a discount price on any date or at any time.
2632 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
2633 beverage to the limited restaurant licensee.
2634 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
2635 over consumption or intoxication.
2636 (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
2637 hours of the limited restaurant licensee's business day such as a "happy hour."
2638 (e) More than one alcoholic beverage may not be sold or served for the price of a single
2639 alcoholic beverage.
2640 (f) An indefinite or unlimited number of alcoholic beverages during a set period may
2641 not be sold or served for a fixed price.
2642 (g) A limited restaurant licensee may not engage in a public promotion involving or
2643 offering free alcoholic beverages to the general public.
2644 (13) An alcoholic beverage may not be purchased for a patron of the limited restaurant
2645 by:
2646 (a) the limited restaurant licensee; or
2647 (b) an employee or agent of the limited restaurant licensee.
2648 (14) (a) A person may not bring onto the premises of a limited restaurant licensee an
2649 alcoholic beverage for on-premise consumption, except a person may bring, subject to the
2650 discretion of the limited restaurant licensee, bottled wine onto the premises of a limited
2651 restaurant licensee for on-premise consumption.
2652 (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or an
2653 officer, manager, employee, or agent of a limited restaurant licensee may not allow:
2654 (i) a person to bring onto the limited restaurant premises an alcoholic beverage for
2655 on-premise consumption; or
2656 (ii) consumption of an alcoholic beverage described in Subsection (14)(b)(i) on the
2657 limited restaurant licensee's premises.
2658 (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
2659 or other representative of the limited restaurant licensee upon entering the limited restaurant.
2660 (d) A wine service may be performed and a service charge assessed by the limited

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- 87 - 2661 restaurant licensee as authorized by commission rule for wine carried in by a patron.
2662 (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and an
2663 employee of the limited restaurant licensee may not permit a restaurant patron to carry from the
2664 limited restaurant premises an open container that:
2665 (i) is used primarily for drinking purposes; and
2666 (ii) contains an alcoholic beverage.
2667 (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
2668 contents of a bottle of wine if before removal, the bottle is recorked or recapped.
2669 (16) (a) A limited restaurant licensee may not employ a minor to sell or dispense an
2670 alcoholic beverage.
2671 (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
2672 employed to enter the sale at a cash register or other sales recording device.
2673 (17) An employee of a limited restaurant licensee, while on duty, may not:
2674 (a) consume an alcoholic beverage; or
2675 (b) be intoxicated.
2676 (18) A charge or fee made in connection with the sale, service, or consumption of wine
2677 or heavy beer may be stated in food or alcoholic beverage menus including:
2678 (a) a service charge; or
2679 (b) a chilling fee.
2680 (19) A limited restaurant licensee shall display in a prominent place in the restaurant:
2681 (a) the limited restaurant license that is [issued] granted by the department; and
2682 (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
2683 drugs is a serious crime that is prosecuted aggressively in Utah."
2684 (20) A limited restaurant licensee may not on the premises of the restaurant:
2685 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
2686 Chapter 10, Part 11, Gambling;
2687 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
2688 Part 11, Gambling; or
2689 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
2690 the risking of something of value for a return or for an outcome when the return or outcome is
2691 based upon an element of chance, excluding the playing of an amusement device that confers

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- 88 - 2692 only an immediate and unrecorded right of replay not exchangeable for value.
2693 (21) (a) A limited restaurant licensee shall maintain an expense ledger or record
2694 showing in detail:
2695 (i) quarterly expenditures made separately for:
2696 (A) wine;
2697 (B) heavy beer;
2698 (C) beer;
2699 (D) food; and
2700 (E) all other items required by the department; and
2701 (ii) sales made separately for:
2702 (A) wine;
2703 (B) heavy beer;
2704 (C) beer;
2705 (D) food; and
2706 (E) all other items required by the department.
2707 (b) A limited restaurant licensee shall keep a record required by Subsection (21)(a):
2708 (i) in a form approved by the department; and
2709 (ii) current for each three-month period.
2710 (c) An expenditure shall be supported by:
2711 (i) a delivery ticket;
2712 (ii) an invoice;
2713 (iii) a receipted bill;
2714 (iv) a canceled check;
2715 (v) a petty cash voucher; or
2716 (vi) other sustaining datum or memorandum.
2717 (d) In addition to the ledger or record maintained under Subsections (21)(a) through
2718 (c), a limited restaurant licensee shall maintain accounting and other records and documents as
2719 the department may require.
2720 (e) Any limited restaurant licensee or person acting for the restaurant, who knowingly
2721 forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
2722 other document of the limited restaurant that is required to be made, maintained, or preserved

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- 89 - 2723 by this title or the rules of the commission for the purpose of deceiving the commission, the
2724 department, or an official or employee of the commission or department, is subject to:
2725 (i) the suspension or revocation of the limited restaurant's license; and
2726 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
2727 (22) (a) A limited restaurant licensee may not close or cease operation for a period
2728 longer than 240 hours, unless:
2729 (i) the limited restaurant licensee notifies the department in writing at least seven days
2730 before the day on which the limited restaurant licensee closes or ceases operation; and
2731 (ii) the closure or cessation of operation is first approved by the department.
2732 (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the limited
2733 restaurant licensee shall immediately notify the department by telephone.
2734 (c) (i) Subject to Subsection (22)(c)(iii), the department may authorize a closure or
2735 cessation of operation for a period not to exceed 60 days.
2736 (ii) The department may extend the initial period an additional 30 days upon:
2737 (A) written request of the limited restaurant licensee; and
2738 (B) a showing of good cause.
2739 (iii) A closure or cessation of operation may not exceed a total of 90 days without
2740 commission approval.
2741 (d) A notice required by Subsection (22)(a) shall include:
2742 (i) the dates of closure or cessation of operation;
2743 (ii) the reason for the closure or cessation of operation; and
2744 (iii) the date on which the limited restaurant licensee will reopen or resume operation.
2745 (e) Failure of the limited restaurant licensee to provide notice and to obtain department
2746 authorization before closure or cessation of operation results in an automatic forfeiture of:
2747 (i) the limited restaurant license; and
2748 (ii) the unused portion of the license fee for the remainder of the license year effective
2749 immediately.
2750 (f) Failure of the limited restaurant licensee to reopen or resume operation by the
2751 approved date results in an automatic forfeiture of:
2752 (i) the limited restaurant license; and
2753 (ii) the unused portion of the license fee for the remainder of the license year.

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- 90 - 2754 (23) A limited restaurant licensee shall maintain at least 70% of its total restaurant
2755 business from the sale of food, which does not include service charges.
2756 (24) A limited restaurant license may not be transferred from one location to another,
2757 without prior written approval of the commission.
2758 (25) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,
2759 give, or attempt in any way to dispose of the limited restaurant license to another person
2760 whether for monetary gain or not.
2761 (b) A limited restaurant license has no monetary value for the purpose of any type of
2762 disposition.
2763 (26) (a) A server of wine, heavy beer, and beer in a limited restaurant licensee's
2764 establishment shall keep a written beverage tab for each table or group that orders or consumes
2765 an alcoholic beverage on the premises.
2766 (b) The beverage tab required by Subsection (26)(a) shall list the type and amount of an
2767 alcoholic beverage ordered or consumed.
2768 (27) A limited restaurant licensee may not make a person's willingness to serve an
2769 alcoholic beverage a condition of employment as a server with the limited restaurant.
2770 (28) A limited restaurant licensee or an employee of the limited restaurant licensee may
2771 not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
2772 Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
2773 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
2774 58-37-2 ; or
2775 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
2776 Section 58-37a-3 .
2777 Section 21. Section 32A-4-401 is amended to read:
2778 32A-4-401. Definitions -- Commission's power to grant licenses -- Limitations.
2779 (1) (a) For purposes of this part:
2780 (i) "Banquet" means an event:
2781 (A) for which there is a contract:
2782 (I) between any person and a person listed in Subsection (1)(a)(i)(B); and
2783 (II) under which a person listed in Subsection (1)(a)(i)(B) is required to provide an
2784 alcoholic [beverages] beverage at the event;

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- 91 - 2785 (B) held at one or more designated locations approved by the commission in or on the
2786 premises of a:
2787 (I) hotel;
2788 (II) resort facility;
2789 (III) sports center; or
2790 (IV) convention center; and
2791 (C) at which food and alcoholic beverages may be sold and served.
2792 (ii) "Convention center" is [as] a facility that:
2793 (A) is in total at least 30,000 square feet; and
2794 (B) is otherwise defined as a "convention center" by the commission by rule.
2795 (iii) "Hotel" is as defined by the commission by rule.
2796 (iv) "Resort facility" is as defined by the commission by rule.
2797 (v) "Room service" means service of an alcoholic [beverages] beverage to a guest room
2798 of a:
2799 (A) hotel; or
2800 (B) resort facility.
2801 (vi) "Sports center" is as defined by the commission by rule.
2802 (b) The commission may [issue] grant an on-premise banquet license to any of the
2803 following persons for the purpose of allowing the storage, sale, service, and consumption of an
2804 alcoholic [beverages] beverage in connection with that person's banquet and room service
2805 activities:
2806 (i) a hotel;
2807 (ii) a resort facility;
2808 (iii) a sports center; or
2809 (iv) a convention center.
2810 (c) This chapter [is not intended to] does not prohibit an alcoholic [beverages]
2811 beverage on the premises of a person listed in Subsection (1) to the extent otherwise permitted
2812 by this title.
2813 (2) (a) Subject to this section and Subsection 32A-4a-201 (2), the total number of
2814 on-premise banquet licenses may not at any time aggregate more than that number determined
2815 by dividing the population of the state by 30,000.

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- 92 - 2816 (b) For purposes of this Subsection (2), the population of the state shall be determined
2817 by:
2818 (i) the most recent United States decennial or special census; or
2819 (ii) another population determination made by the United States or state governments.
2820 (3) Pursuant to a contract between the host of a banquet and an on-premise banquet
2821 licensee:
2822 (a) the host of a contracted banquet may request an on-premise banquet licensee to
2823 provide an alcoholic [beverages] beverage served at a banquet; and
2824 (b) an on-premise banquet licensee may provide [the] an alcoholic [beverages]
2825 beverage served at a banquet.
2826 (4) At a banquet, an on-premise banquet licensee may provide:
2827 (a) a hosted bar; or
2828 (b) a cash bar.
2829 (5) Nothing in this section [shall prohibit] prohibits a qualified on-premise banquet
2830 license applicant from applying for a package agency.
2831 (6) (a) Except as provided in Subsection (6)(b), (c), or (d), the premises of an
2832 on-premise banquet license may not be established:
2833 (i) within 600 feet of a community location, as measured by the method in Subsection
2834 (6)(e); or
2835 (ii) within 200 feet of a community location, measured in a straight line from the
2836 nearest entrance of the proposed outlet to the nearest property boundary of the community
2837 location.
2838 (b) With respect to the establishment of an on-premise banquet license, the
2839 commission may authorize a variance to reduce the proximity requirement of Subsection
2840 (6)(a)(i) if:
2841 (i) the local authority grants its written consent to the variance;
2842 (ii) the commission finds that alternative locations for establishing an on-premise
2843 banquet license in the community are limited;
2844 (iii) the variance is authorized after a public hearing is held in the city, town, or county,
2845 and where practical in the neighborhood concerned;
2846 (iv) after giving full consideration to all of the attending circumstances and the policies

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- 93 - 2847 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
2848 license would not be detrimental to the public health, peace, safety, and welfare of the
2849 community; and
2850 (v) (A) the community location governing authority gives its written consent to the
2851 variance; or
2852 (B) when written consent is not given by the community location governing authority,
2853 the commission finds that the applicant has established that:
2854 (I) there is substantial unmet public demand to consume alcohol in a public setting
2855 within the geographic boundary of the local authority in which the on-premise banquet license
2856 premises is to be located;
2857 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
2858 described in Subsection (6)(b)(v)(B)(I) other than through the establishment of an on-premise
2859 banquet license; and
2860 (III) there is no reasonably viable alternative location within the geographic boundary
2861 of the local authority in which the on-premise banquet license premises is to be located for
2862 establishing an on-premise banquet license to satisfy the unmet demand described in
2863 Subsection (6)(b)(v)(B)(I).
2864 (c) With respect to the establishment of an on-premise banquet license, the commission
2865 may authorize a variance that reduces the proximity requirement of Subsection (6)(a)(ii) if:
2866 (i) the community location at issue is:
2867 (A) a public library; or
2868 (B) a public park;
2869 (ii) the local authority grants its written consent to the variance;
2870 (iii) the commission finds that alternative locations for establishing an on-premise
2871 banquet license in the community are limited;
2872 (iv) a public hearing is held in the city, town, or county, and where practical in the
2873 neighborhood concerned;
2874 (v) after giving full consideration to all of the attending circumstances and the policies
2875 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
2876 on-premise banquet license would not be detrimental to the public health, peace, safety, and
2877 welfare of the community; and

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- 94 - 2878 (vi) (A) the community location governing authority gives its written consent to the
2879 variance; or
2880 (B) when written consent is not given by the community location governing authority,
2881 the commission finds that the applicant has established that:
2882 (I) there is substantial unmet public demand to consume alcohol in a public setting
2883 within the geographic boundary of the local authority in which the on-premise banquet license
2884 premises is to be located;
2885 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
2886 described in Subsection (6)(c)(vi)(B)(I) other than through the establishment of an on-premise
2887 banquet license; and
2888 (III) there is no reasonably viable alternative location within the geographic boundary
2889 of the local authority in which the on-premise banquet license premises is to be located for
2890 establishing an on-premise banquet license to satisfy the unmet demand described in
2891 Subsection (6)(c)(vi)(B)(I).
2892 (d) With respect to the premises of any on-premise banquet license [issued] granted by
2893 the commission that undergoes a change of ownership, the commission may waive or vary the
2894 proximity requirements of Subsection (6)(a) in considering whether to grant an on-premise
2895 banquet license to the new owner of the premises if:
2896 (i) (A) the premises previously received a variance reducing the proximity requirement
2897 of Subsection (6)(a)(i); or
2898 (B) the premises received a variance reducing the proximity requirement of Subsection
2899 (6)(a)(ii) on or before May 4, 2008; or
2900 (ii) a variance from proximity requirements was otherwise allowed under this title.
2901 (e) The 600 foot limitation described in Subsection (6)(a)(i) is measured from the
2902 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
2903 property boundary of the community location.
2904 (7) (a) Nothing in this section prevents the commission from considering the proximity
2905 of any educational, religious, and recreational facility, or any other relevant factor in reaching a
2906 decision on a proposed location.
2907 (b) For purposes of this Subsection (7), "educational facility" includes:
2908 (i) a nursery school;

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- 95 - 2909 (ii) an infant day care center; and
2910 (iii) a trade and technical school.
2911 (8) (a) As used in this Subsection (8), "grandfathered facility" means a facility:
2912 (i) for which the commission granted an on-premise banquet license that is in effect on
2913 May 11, 2009, on the basis that the facility is a convention center; and
2914 (ii) that no longer qualifies as a convention center under Subsection (1)(a)(ii) solely
2915 because it is in total less than 30,000 square feet.
2916 (b) Notwithstanding Subsection (1)(a)(ii), the on-premise banquet license applicable to
2917 a grandfathered facility may be renewed until October 31, 2011, if the on-premise banquet
2918 license is qualified for the on-premise banquet license except for the requirement of Subsection
2919 (1)(a)(ii)(A).
2920 Section 22. Section 32A-4-402 is amended to read:
2921 32A-4-402. Application and renewal requirements.
2922 (1) (a) A person seeking an on-premise banquet license under this part shall file a
2923 written application with the department, in a form prescribed by the department. The
2924 application shall be accompanied by:
2925 (i) a nonrefundable $250 application fee;
2926 (ii) an initial license fee of $500, which is refundable if a license is not granted;
2927 (iii) written consent of the local authority;
2928 (iv) a copy of the applicant's current business license;
2929 (v) evidence of proximity to any community location, with proximity requirements
2930 being governed by Section 32A-4-401 ;
2931 (vi) a bond as specified by Section 32A-4-405 ;
2932 (vii) a description or floor plan and boundary map of the premises, where appropriate,
2933 of the on-premise banquet license applicant's location, designating:
2934 (A) the location at which the on-premise banquet license applicant proposes that
2935 alcoholic beverages be stored; and
2936 (B) the designated locations on the premises of the applicant from which the
2937 on-premise banquet license applicant proposes that alcoholic beverages be sold or served, and
2938 consumed;
2939 (viii) evidence that the on-premise banquet license applicant is carrying public liability

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- 96 - 2940 insurance in an amount and form satisfactory to the department;
2941 (ix) evidence that the on-premise banquet license applicant is carrying dramshop
2942 insurance coverage of at least [$500,000] $1,000,000 per occurrence and [$1,000,000]
2943 $2,000,000 in the aggregate;
2944 (x) a signed consent form stating that the on-premise banquet license applicant will
2945 permit any authorized representative of the commission, department, or any law enforcement
2946 officer unrestricted right to enter the on-premise banquet premises;
2947 (xi) in the case of an applicant that is a partnership, corporation, or limited liability
2948 company, proper verification evidencing that the person or persons signing the on-premise
2949 banquet license application are authorized to so act on behalf of the partnership, corporation, or
2950 limited liability company; and
2951 (xii) any other information the commission or department may require.
2952 (b) An applicant need not meet the requirements of Subsections (1)(a)(i), (ii), (iii), (iv),
2953 and (vi) if the applicant is:
2954 (i) a state agency; or
2955 (ii) a political subdivision of the state including:
2956 (A) a county; or
2957 (B) a municipality.
2958 (2) Additional locations in or on the premises of an on-premise banquet license
2959 applicant's business from which the on-premise banquet license applicant may propose that
2960 alcoholic beverages may be stored, sold or served, or consumed, not included in the applicant's
2961 original application may be approved by the department upon proper application, in accordance
2962 with guidelines approved by the commission.
2963 (3) (a) [All] An on-premise banquet [licenses expire] license expires on October 31 of
2964 each year.
2965 (b) (i) Except as provided in Subsection (3)(b)(ii), a person desiring to renew that
2966 person's on-premise banquet license shall submit a renewal fee of $500 and a completed
2967 renewal application to the department no later than September 30.
2968 (ii) A licensee is not required to submit the renewal fee if the licensee is:
2969 (A) a state agency; or
2970 (B) a political subdivision of the state including:

Text Box
- 97 - 2971 (I) a county; or
2972 (II) a municipality.
2973 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
2974 the license effective on the date the existing license expires.
2975 (d) A renewal application shall be in a form as prescribed by the department.
2976 (4) To ensure compliance with Subsection 32A-4-406 (24), the commission may
2977 suspend or revoke an on-premise banquet license if the on-premise banquet licensee fails to
2978 immediately notify the department of any change in:
2979 (a) ownership of the licensee;
2980 (b) for a corporate owner, the:
2981 (i) corporate officers or directors; or
2982 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
2983 corporation; or
2984 (c) for a limited liability company:
2985 (i) managers; or
2986 (ii) members owning at least 20% of the limited liability company.
2987 Section 23. Section 32A-4a-101 is enacted to read:
2988 CHAPTER 4a. RESORT LICENSE ACT
2989 Part 1. General Provisions
2990 32A-4a-101. Title.
2991 This chapter is known as the "Resort License Act."
2992 Section 24. Section 32A-4a-102 is enacted to read:
2993 32A-4a-102. Definitions.
2994 As used in this chapter:
2995 (1) "Boundary of a resort building" means the physical boundary of the land reasonably
2996 related to a resort building and any structure or improvement to that land as determined by the
2997 commission.
2998 (2) "Dwelling" means a portion of a resort building:
2999 (a) owned by one or more individuals;
3000 (b) that is used or designated for use as a residence by one or more persons; and
3001 (c) that may be rented, loaned, leased, or hired out for a period of no longer than 30

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- 98 - 3002 consecutive days by a person who uses it for a residence.
3003 (3) "Engaged in the management of the resort" may be defined by the commission by
3004 rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
3005 (4) "Invitee" means an individual who in accordance with Subsection 32A-4a-305 (3) is
3006 authorized to use a resort spa by a host who is:
3007 (a) a resident; or
3008 (b) a public customer.
3009 (5) "Provisions applicable to a sublicense" means:
3010 (a) for a restaurant sublicense, Chapter 4, Part 1, Restaurant Liquor Licenses;
3011 (b) for a limited restaurant sublicense, Chapter 4, Part 3, Limited Restaurant Licenses;
3012 (c) for an on-premise banquet sublicense, Chapter 4, Part 4, On-Premises Banquet
3013 License;
3014 (d) for a resort spa sublicense, Chapter 4a, Part 3, Resort Spa Sublicense;
3015 (e) for a club sublicense, Chapter 5, Club Licenses; and
3016 (f) for an on-premise beer retailer sublicense, Chapter 10, Beer Retailer Licenses.
3017 (6) "Public customer" means an individual who holds a customer card in accordance
3018 with Subsection 32A-4a-305 (4).
3019 (7) "Resident" means an individual who:
3020 (a) owns a dwelling located within a resort building; or
3021 (b) rents lodging accommodations for 30 consecutive days or less from:
3022 (i) an owner of a dwelling described i