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.

Text Box
- 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

Text Box
- 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 in Subsection (7)(a); or
3023 (ii) the resort licensee.
3024 (8) "Resort" means a location:
3025 (a) on which is located one resort building; and
3026 (b) that is affiliated with a ski area that physically touches the boundary of the resort
3027 building.
3028 (9) "Resort building" means a building:
3029 (a) that is primarily operated for the purpose of providing dwellings or lodging
3030 accommodations;
3031 (b) that has at least 150 units that consist of a dwelling or lodging accommodations;
3032 (c) that consists of at least 400,000 square feet:

Text Box
- 99 - 3033 (i) including only the building itself; and
3034 (ii) not including areas such as above ground surface parking; and
3035 (d) of which at least 50% of the units described in Subsection (9)(b) consist of
3036 dwellings owned by a person other than the resort licensee.
3037 (10) "Resort spa" means a spa, as defined by rule by the commission made in
3038 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that is within the
3039 boundary of a resort building.
3040 (11) "Sublicense" means:
3041 (a) a restaurant sublicense;
3042 (b) a limited restaurant sublicense;
3043 (c) an on-premise banquet sublicense;
3044 (d) a resort spa sublicense;
3045 (e) a club sublicense; or
3046 (f) an on-premise beer retailer sublicense.
3047 (12) "Sublicense premises" means a building, enclosure, room, or equipment used
3048 pursuant to a sublicense in connection with the sale, storage, service, furnishing, or
3049 consumption of an alcoholic product, unless otherwise defined in this title or in the rules
3050 adopted by the commission in accordance with Title 63G, Chapter 3, Utah Administrative
3051 Rulemaking Act.
3052 Section 25. Section 32A-4a-201 is enacted to read:
3053 Part 2. Licensing
3054 32A-4a-201. Commission's power to license a resort -- Limitations.
3055 (1) (a) The commission may grant to a person a resort license for the purpose of
3056 allowing the storage, sale, service, and consumption of an alcoholic beverage in connection
3057 with a resort designated in the resort license if the person operates at least four sublicenses
3058 under the resort license.
3059 (b) A resort license shall:
3060 (i) consist of:
3061 (A) a general resort license; and
3062 (B) the four or more sublicenses; and
3063 (ii) designate the boundary of the resort building.

Text Box
- 100 - 3064 (c) This chapter does not prohibit an alcoholic beverage on the boundary of the resort
3065 building to the extent otherwise permitted by this title.
3066 (d) The commission may not grant a sublicense that is separate from a resort license.
3067 (2) (a) The total number of resort licenses may not at any time aggregate more than
3068 four.
3069 (b) The commission may not include a sublicense in determining whether or not the
3070 total number of licenses granted under the provisions applicable to the sublicense aggregate
3071 more than a number calculated by dividing the population of the state by the number specified
3072 in the provisions applicable to the sublicense.
3073 (c) Notwithstanding Subsection (2)(b), the commission may not grant to a person a
3074 license under the provisions applicable to a sublicense that on May 11, 2009, was not available
3075 because the sublicense was included in determining if the total number of licenses granted
3076 under the provisions applicable to the sublicense aggregate more than the number calculated by
3077 dividing the population of the state by the number specified in the provisions applicable to the
3078 sublicense.
3079 (d) By no later than the November 2009 interim meeting of the Business and Labor
3080 Interim Committee, the department shall:
3081 (i) report to the Business and Labor Interim Committee the number and types of
3082 sublicenses under a resort license granted by the commission as of September 30, 2009; and
3083 (ii) recommend legislation to adjust the numbers in the provisions applicable to
3084 sublicenses to reflect the number of sublicenses that because of the issuance of a resort license
3085 are not included in determining whether or not the total number of licenses granted under the
3086 provisions applicable to a sublicense aggregate more than a number calculated by dividing the
3087 population of the state by the number specified in the provisions applicable to the sublicense.
3088 (3) (a) Except as provided in Subsection (3)(b), (c), or (d), a resort building may not be
3089 granted if the resort building is:
3090 (i) within 600 feet of a community location, as measured by the method in Subsection
3091 (3)(e); or
3092 (ii) within 200 feet of a community location, measured in a straight line from the
3093 nearest entrance of the proposed outlet to the nearest property boundary of the community
3094 location.

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- 101 - 3095 (b) With respect to the establishment of a resort license, the commission may authorize
3096 a variance to reduce the proximity requirement of Subsection (3)(a)(i) if:
3097 (i) the local authority grants its written consent to the variance;
3098 (ii) the commission finds that alternative locations for establishing a resort license in
3099 the community are limited;
3100 (iii) the variance is authorized after a public hearing is held in the city, town, or county,
3101 and where practical in the neighborhood concerned;
3102 (iv) after giving full consideration to all of the attending circumstances and the policies
3103 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
3104 resort license would not be detrimental to the public health, peace, safety, and welfare of the
3105 community; and
3106 (v) (A) the community location governing authority gives its written consent to the
3107 variance; or
3108 (B) when written consent is not given by the community location governing authority,
3109 the commission finds that the applicant has established that:
3110 (I) there is substantial unmet public demand to consume alcohol in a public setting
3111 within the geographic boundary of the local authority in which the resort building is to be
3112 located;
3113 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
3114 described in Subsection (3)(b)(v)(B)(I) other than through the establishment of a resort license;
3115 and
3116 (III) there is no reasonably viable alternative location within the geographic boundary
3117 of the local authority in which the resort building is to be located for establishing a resort
3118 license to satisfy the unmet demand described in Subsection (3)(b)(v)(B)(I).
3119 (c) With respect to the establishment of a resort license, the commission may authorize
3120 a variance that reduces the proximity requirement of Subsection (3)(a)(ii) if:
3121 (i) the community location at issue is:
3122 (A) a public library; or
3123 (B) a public park;
3124 (ii) the local authority grants its written consent to the variance;
3125 (iii) the commission finds that alternative locations for establishing a resort license in

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- 102 - 3126 the community are limited;
3127 (iv) a public hearing is held in the city, town, or county, and where practical in the
3128 neighborhood concerned;
3129 (v) after giving full consideration to all of the attending circumstances and the policies
3130 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
3131 resort license would not be detrimental to the public health, peace, safety, and welfare of the
3132 community; and
3133 (vi) (A) the community location governing authority gives its written consent to the
3134 variance; or
3135 (B) when written consent is not given by the community location governing authority,
3136 the commission finds that the applicant has established that:
3137 (I) there is substantial unmet public demand to consume alcohol in a public setting
3138 within the geographic boundary of the local authority in which the resort building is to be
3139 located;
3140 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
3141 described in Subsection (3)(c)(vi)(B)(I) other than through the establishment of a resort license;
3142 and
3143 (III) there is no reasonably viable alternative location within the geographic boundary
3144 of the local authority in which the resort building is to be located for establishing a resort
3145 license to satisfy the unmet demand described in Subsection (3)(c)(vi)(B)(I).
3146 (d) With respect to a resort building of a resort license granted by the commission that
3147 undergoes a change of ownership, the commission may waive or vary the proximity
3148 requirements of Subsection (3)(a) in considering whether to grant a resort license to the new
3149 owner of the resort license if the resort license previously received a variance reducing the
3150 proximity requirement of Subsection (3)(a)(i).
3151 (e) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
3152 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
3153 property boundary of the community location.
3154 (4) (a) Nothing in this section prevents the commission from considering the proximity
3155 of an educational, religious, or recreational facility, or any other relevant factor in reaching a
3156 decision on a proposed location.

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- 103 - 3157 (b) For purposes of this Subsection (4), "educational facility" includes:
3158 (i) a nursery school;
3159 (ii) an infant day care center; and
3160 (iii) a trade and technical school.
3161 Section 26. Section 32A-4a-202 is enacted to read:
3162 32A-4a-202. Application and renewal requirements.
3163 (1) A person seeking a resort license under this chapter shall file a written application
3164 with the department, in a form prescribed by the department. The application shall be
3165 accompanied by:
3166 (a) a nonrefundable $250 application fee;
3167 (b) an initial license fee, which is refundable if a resort license is not granted,
3168 calculated as follows:
3169 (i) $10,000 if four sublicenses are being applied for under the resort license; or
3170 (ii) if more than four sublicenses are being applied for under the resort license, the sum
3171 of:
3172 (A) $10,000; and
3173 (B) $2,000 for each sublicense in excess of four sublicenses for which the applicant is
3174 applying;
3175 (c) written consent of the local authority;
3176 (d) a copy of:
3177 (i) the applicant's current business license; and
3178 (ii) the current business license for each sublicense, if the business license is separate
3179 from the applicant's business license;
3180 (e) evidence:
3181 (i) of proximity of the resort building to any community location, with proximity
3182 requirements being governed by Section 32A-4a-201 ;
3183 (ii) that each of the four or more sublicense premises is entirely within the boundaries
3184 of the resort building; and
3185 (iii) that the building designated in the application as the resort building qualifies as a
3186 resort building as defined in Section 32A-4a-102 ;
3187 (f) a bond as specified by Section 32A-4a-205 ;

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- 104 - 3188 (g) a description and boundary map of the resort building;
3189 (h) a description, floor plan, and boundary map of each sublicense premises
3190 designating:
3191 (i) any location at which the resort license applicant proposes that an alcoholic
3192 beverage be stored; and
3193 (ii) a designated location on the sublicense premises from which the resort license
3194 applicant proposes that an alcoholic beverage be sold or served and consumed;
3195 (i) evidence that the resort license applicant carries public liability insurance in an
3196 amount and form satisfactory to the department;
3197 (j) evidence that the resort license applicant carries dramshop insurance coverage equal
3198 to the sum of at least $1,000,000 per occurrence and $2,000,000 in the aggregate to cover both
3199 the general resort license and each sublicense;
3200 (k) a signed consent form stating that the resort license applicant will permit any
3201 authorized representative of the commission, department, or any law enforcement officer
3202 unrestricted right to enter the boundary of the resort building and each sublicense premises;
3203 (l) if an applicant is a partnership, corporation, or limited liability company, proper
3204 verification evidencing that the one or more persons signing the resort license application are
3205 authorized to so act on behalf of the partnership, corporation, or limited liability company; and
3206 (m) any other information the commission or department may require.
3207 (2) An additional location in a sublicense premises of a resort license applicant's
3208 business from which the resort license applicant may propose that an alcoholic beverage may
3209 be stored, sold or served, or consumed, not included in the applicant's original application, may
3210 be approved by the department upon proper application.
3211 (3) (a) A resort license expires on October 31 of each year.
3212 (b) A resort licensee who wants to renew a resort license shall submit to the department
3213 by no later than September 30:
3214 (i) a renewal fee of $1,000 for each sublicense under the resort license; and
3215 (ii) a completed renewal application.
3216 (c) A resort licensee's failure to meet a renewal requirement results in an automatic
3217 forfeiture of the resort license and each sublicense effective on the date the existing license
3218 expires.

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- 105 - 3219 (d) A renewal application shall be in a form as prescribed by the department.
3220 (4) To ensure compliance with Subsection 32A-4a-401 (14), the commission may
3221 suspend or revoke a resort license if the resort licensee fails to immediately notify the
3222 department of a change in:
3223 (a) ownership of the resort licensee;
3224 (b) for a corporate owner of a resort licensee, the:
3225 (i) corporate officers or directors; or
3226 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
3227 corporation; or
3228 (c) for a limited liability company owner or a resort licensee:
3229 (i) managers; or
3230 (ii) members owning at least 20% of the limited liability company.
3231 Section 27. Section 32A-4a-203 is enacted to read:
3232 32A-4a-203. Qualifications.
3233 (1) (a) The commission may not grant a license to a person who is convicted of:
3234 (i) a felony under a federal or state law;
3235 (ii) a violation of a federal or state law or local ordinance concerning the sale,
3236 manufacture, distribution, warehousing, adulteration, or transportation of an alcoholic
3237 beverage;
3238 (iii) a crime involving moral turpitude; or
3239 (iv) on two or more occasions within the five years before the day on which the resort
3240 license is granted, driving under the influence of alcohol, a drug, or the combined influence of
3241 alcohol and a drug.
3242 (b) For a partnership, corporation, or limited liability company, the proscription under
3243 Subsection (1)(a) applies if any of the following that will be engaged in the management of the
3244 resort is convicted of an offense described in Subsection (1)(a):
3245 (i) a partner;
3246 (ii) a managing agent;
3247 (iii) a manager;
3248 (iv) an officer;
3249 (v) a director;

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- 106 - 3250 (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
3251 the applicant corporation; or
3252 (vii) a member who owns at least 20% of the applicant limited liability company.
3253 (c) The proscription under Subsection (1)(a) applies if a person employed to act in a
3254 supervisory or managerial capacity for the resort licensee or in relation to a sublicense is
3255 convicted of an offense described in Subsection (1)(a).
3256 (2) Subject to Section 32A-4a-501 , the commission may immediately suspend or
3257 revoke a resort license or a sublicense, if after the day on which the resort license is granted, a
3258 person described in Subsection (1)(a), (b), or (c):
3259 (a) is found to have been convicted of an offense described in Subsection (1)(a) before
3260 the resort license is granted; or
3261 (b) on or after the day on which the resort license is granted:
3262 (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
3263 (ii) (A) is convicted of driving under the influence of alcohol, a drug, or the combined
3264 influence of alcohol and a drug; and
3265 (B) was convicted of driving under the influence of alcohol, a drug, or the combined
3266 influence of alcohol and a drug within five years before the day on which the person is
3267 convicted of the offense described in Subsection (2)(b)(ii)(A).
3268 (3) Subject to Subsection 32A-4a-501 , the director may take emergency action by
3269 immediately suspending the operation of a resort license or sublicense in accordance with Title
3270 63G, Chapter 4, Administrative Procedures Act, for the period during which the criminal
3271 matter is being adjudicated if a person described in Subsection (1)(a), (b), or (c):
3272 (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
3273 or
3274 (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol, a
3275 drug, or the combined influence of alcohol and a drug; and
3276 (ii) was convicted of driving under the influence of alcohol, a drug, or the combined
3277 influence of alcohol and a drug within five years before the day on which the person is arrested
3278 on a charge described in Subsection (3)(b)(i).
3279 (4) (a) (i) The commission may not grant a resort license to a person who has had any
3280 type of license, agency, or permit granted under this title revoked within the three years before

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- 107 - 3281 the day on which the application for a resort license is filed.
3282 (ii) The commission may not grant a resort license to an applicant that is a partnership,
3283 corporation, or limited liability company if a partner, managing agent, manager, officer,
3284 director, stockholder who holds at least 20% of the total issued and outstanding stock of an
3285 applicant corporation, or member who owns at least 20% of an applicant limited liability
3286 company, will engage in the management of the resort, and is or was:
3287 (A) a partner or managing agent of a partnership that had any type of license, agency,
3288 or permit issued under this title revoked within three years prior to the day on which the
3289 application for the resort license is filed;
3290 (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
3291 of the total issued and outstanding stock of a corporation that had any type of license, agency,
3292 or permit issued under this title revoked within three years before the day on which the
3293 application for the resort license is filed; or
3294 (C) a manager or member who owns or owned at least 20% of a limited liability
3295 company that had any type of license, agency, or permit issued under this title revoked within
3296 three years prior to the day on which the application for the resort license is filed.
3297 (b) The commission may not grant a resort license to an applicant that is a partnership,
3298 corporation, or limited liability company if any of the following who will engage in the
3299 management of the resort had any type of license, agency, or permit issued under this title
3300 revoked while acting in their individual capacity within three years before the day on which the
3301 application for the resort license is filed:
3302 (i) a partner or managing agent of the applicant partnership;
3303 (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
3304 total issued and outstanding stock of the applicant corporation; or
3305 (iii) a manager or member who owns at least 20% of the applicant limited liability
3306 company.
3307 (c) The commission may not grant a person acting in an individual capacity a resort
3308 license if that person was:
3309 (i) a partner or managing agent of a partnership that had any type of license, agency, or
3310 permit granted under this title revoked within three years prior to the day on which the
3311 application for the resort license is filed;

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- 108 - 3312 (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
3313 total issued and outstanding stock of a corporation that had any type of license, agency, or
3314 permit issued under this title revoked within three years prior to the day on which the
3315 application for the resort license is filed; or
3316 (iii) a manager or member who owned at least 20% of the limited liability company
3317 that had any type of license, agency, or permit issued under this title revoked within three years
3318 prior to the day on which the application for the resort license is filed.
3319 (5) (a) The commission may not grant a minor a resort license.
3320 (b) The commission may not grant a resort license to an applicant that is a partnership,
3321 corporation, or limited liability company if any of the following is a minor:
3322 (i) a partner or managing agent of the applicant partnership;
3323 (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
3324 total issued and outstanding stock of the applicant corporation; or
3325 (iii) a manager or member who owns at least 20% of the applicant limited liability
3326 company.
3327 (6) Subject to Section 32A-4a-501 , if a person to whom a resort license is granted
3328 under this chapter no longer possesses the qualifications required by this title for obtaining the
3329 resort license, the commission may suspend or revoke the resort license.
3330 (7) (a) A person employed to act in a supervisory or managerial capacity for a
3331 sublicense is subject to the qualification requirements in the provisions applicable to the
3332 sublicense.
3333 (b) If a person described under Subsection (7)(a) no longer possesses the qualifications
3334 required by this Subsection (7), the commission may suspend or revoke the sublicense that is
3335 part of the resort license.
3336 Section 28. Section 32A-4a-204 is enacted to read:
3337 32A-4a-204. Commission and department duties before granting resort license.
3338 (1) (a) Before the commission may grant a resort license, the department shall conduct
3339 an investigation, and may hold public hearings for the purpose of gathering information and
3340 making recommendations to the commission as to whether or not a resort license, including
3341 each sublicense, should be granted.
3342 (b) The department shall forward the information and recommendations described in

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- 109 - 3343 Subsection (1)(a) to the commission to aid in the commission's determination.
3344 (2) Before granting a resort license, the commission shall:
3345 (a) determine that the applicant complies with all basic qualifications and requirements
3346 for making application for a resort license as provided by Sections 32A-4a-202 and
3347 32A-4a-203 ;
3348 (b) determine that the application is complete;
3349 (c) consider, where appropriate, a location that the resort license applicant proposes to
3350 designate for use under the resort license or a sublicense, including:
3351 (i) the physical characteristics of the location such as:
3352 (A) the condition of the location;
3353 (B) square footage; and
3354 (C) parking availability; and
3355 (ii) operational factors such as:
3356 (A) tourist traffic;
3357 (B) demographics; and
3358 (C) population to be served;
3359 (d) consider the resort license applicant's ability to manage and operate a resort license
3360 and the ability of any individual who will act in a supervisory or managerial capacity for a
3361 sublicense, including:
3362 (i) past management experience;
3363 (ii) past alcohol license experience; and
3364 (iii) the type of management scheme to be employed by the resort license applicant;
3365 (e) consider the nature or type of:
3366 (i) the resort license applicant's business operation; and
3367 (ii) the business operation of each sublicense;
3368 (f) subject to Subsection (3), determine that each sublicense meets the requirements
3369 imposed under the provisions applicable to each sublicense; and
3370 (g) consider any other factor or circumstance the commission considers necessary.
3371 (3) (a) Subject to Subsection (3)(b), notwithstanding the requirements to obtain a
3372 license under the provisions applicable to a sublicense, a sublicense of a resort license is not
3373 subject to:

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- 110 - 3374 (i) a requirement to submit an application or renewal application that is separate from
3375 the resort license application;
3376 (ii) a requirement to carry public liability insurance or dramshop insurance coverage
3377 that is separate from that carried by the resort licensee; or
3378 (iii) post a bond that is separate from the bond posted by the resort licensee.
3379 (b) If a resort licensee seeks to add a sublicense after its resort license is granted, the
3380 resort licensee shall file with the department:
3381 (i) a nonrefundable $250 application fee;
3382 (ii) an initial license fee of $2,000, which is refundable if the sublicense is not granted;
3383 (iii) written consent of the local authority;
3384 (iv) a copy of:
3385 (A) the resort licensee's current business license; and
3386 (B) the current business license for the sublicense, if the business licensee is separate
3387 from the resort licensee's business license;
3388 (v) evidence that the sublicense premises is entirely within the boundary of the resort
3389 building;
3390 (vi) a description, floor plan, and boundary map of the sublicense premises
3391 designating:
3392 (A) a location at which the resort license applicant proposes that an alcoholic beverage
3393 be stored; and
3394 (B) a designated location on the sublicense premises from which the resort license
3395 applicant proposes that an alcoholic beverage be sold, dispensed, served, and consumed;
3396 (vii) evidence that the resort license applicant carries public liability insurance in an
3397 amount and form satisfactory to the department;
3398 (viii) evidence that the resort license applicant carries dramshop insurance coverage in
3399 the amount required by Section 32A-4a-202 that covers the sublicense to be added;
3400 (ix) a signed consent form stating that the resort licensee will permit any authorized
3401 representative of the commission, department, or any law enforcement officer unrestricted right
3402 to enter the sublicense premises;
3403 (x) if the resort licensee is a partnership, corporation, or limited liability company,
3404 proper verification evidencing that the one or more persons signing the sublicense application

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- 111 - 3405 are authorized to so act on behalf of the partnership, corporation, or limited liability company;
3406 and
3407 (xi) any other information the commission or department may require.
3408 Section 29. Section 32A-4a-205 is enacted to read:
3409 32A-4a-205. Bond.
3410 (1) (a) A resort licensee shall procure and post a cash or corporate surety bond payable
3411 to the department in the penal sum of $25,000.
3412 (b) A resort licensee shall maintain the bond described in Subsection (1)(a) for as long
3413 as the resort licensee operates as a resort licensee.
3414 (c) A resort licensee is not required to have a separate bond for each sublicense, except
3415 that the aggregate of any bonds posted by the resort licensee shall cover each sublicense under
3416 the resort license.
3417 (2) A bond described in Subsection (1) shall be in a form approved by the attorney
3418 general, conditioned upon the resort licensee's faithful compliance with this title and the rules
3419 of the commission.
3420 (3) (a) If a bond described in Subsection (1) is canceled due to a resort licensee's
3421 negligence, the commission may assess a $300 reinstatement fee.
3422 (b) No part of a bond described in Subsection (1) may be withdrawn:
3423 (i) during the period a resort license is in effect; or
3424 (ii) while a revocation proceeding is pending against the resort licensee that posts the
3425 bond.
3426 (c) A bond filed by a resort licensee may be forfeited if the resort license is revoked.
3427 Section 30. Section 32A-4a-301 is enacted to read:
3428 Part 3. Resort Spa Sublicense
3429 32A-4a-301. Commission's power to grant resort spa sublicense -- Limitations.
3430 (1) Before a resort spa may sell or allow the consumption of an alcoholic beverage on
3431 the resort spa sublicense premises, a resort licensee or an applicant for a resort license shall
3432 first obtain a resort spa sublicense from the commission as provided in this part.
3433 (2) The commission may grant a resort spa sublicense for the purpose of establishing a
3434 resort spa outlet within the boundary of a resort building for the storage, sale, and consumption
3435 of liquor on premises operated as a resort spa.

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- 112 - 3436 (3) The resort spa sublicense premises must fall entirely within the boundary of a resort
3437 building.
3438 Section 31. Section 32A-4a-302 is enacted to read:
3439 32A-4a-302. Application and renewal requirements.
3440 (1) A person seeking a resort spa sublicense under this part may not file a written
3441 application with the department that is separate from the application of the resort license,
3442 unless the resort spa sublicense is being sought after the granting of a resort license.
3443 (2) If a resort licensee seeks to add a resort spa sublicense after its resort license is
3444 granted, the resort licensee shall in accordance with Subsection 32A-4a-204 (3) file a written
3445 application with the department, in a form prescribed by the department. The application shall
3446 be accompanied by:
3447 (a) a nonrefundable $250 application fee;
3448 (b) an initial license fee of $2,000, which is refundable if the resort spa sublicense is
3449 not granted;
3450 (c) written consent of the local authority;
3451 (d) a copy of:
3452 (i) the resort licensee's current business license; and
3453 (ii) a business license for the resort spa, if the business license is separate from the
3454 resort licensee's business license;
3455 (e) evidence that the resort spa sublicense premises are entirely within the boundary of
3456 a resort building;
3457 (f) a floor or similar plan of the resort spa, including consumption areas and the area
3458 where the resort licensee proposes to keep, store, and sell liquor;
3459 (g) evidence that the resort licensee carries public liability insurance in an amount and
3460 form satisfactory to the department;
3461 (h) evidence that the resort licensee's dramshop insurance coverage required under
3462 Section 32A-4a-202 covers the resort spa sublicense;
3463 (i) a signed consent form stating that the resort licensee will permit any authorized
3464 representative of the commission, department, or any law enforcement officer unrestricted right
3465 to enter the resort spa sublicense premises;
3466 (j) if an applicant is a partnership, corporation, or limited liability company, proper

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- 113 - 3467 verification evidencing that the person or persons signing the application are authorized to so
3468 act on behalf of the partnership, corporation, or limited liability company; and
3469 (k) any other information the commission or department may require.
3470 (3) (a) A resort spa sublicense expires on October 31 of each year.
3471 (b) A resort licensee desiring to renew the resort licensee's resort spa sublicense shall
3472 renew the resort spa sublicense as part of renewing the resort license.
3473 (c) Failure to meet the renewal requirements for a resort license results in an automatic
3474 forfeiture of the resort spa sublicense effective on the date the resort license expires.
3475 (d) A renewal application shall be in a form as prescribed by the department.
3476 (4) To ensure compliance with Subsection 32A-4a-305 (30), the commission may
3477 suspend or revoke a resort spa sublicense if the resort licensee does not immediately notify the
3478 department of a change described in Subsection 32A-4a-202 (4).
3479 Section 32. Section 32A-4a-303 is enacted to read:
3480 32A-4a-303. Qualifications.
3481 (1) A person employed to act in a supervisory or managerial capacity for the resort spa
3482 sublicense is subject to qualification requirements of Section 32A-4a-203 .
3483 (2) If a person no longer possesses the qualifications required by Section 32A-4a-203
3484 for obtaining the resort license or resort spa sublicense, the commission may suspend or revoke
3485 the resort spa sublicense that is part of the resort license.
3486 Section 33. Section 32A-4a-304 is enacted to read:
3487 32A-4a-304. Commission and department duties before granting a resort spa
3488 sublicense.
3489 (1) (a) If a resort licensee seeks to add a resort spa sublicense after the resort license is
3490 granted, before the commission may grant a resort spa sublicense, the department shall conduct
3491 an investigation and may hold public hearings for the purpose of gathering information and
3492 making recommendations to the commission as to whether or not the resort spa sublicense
3493 should be granted.
3494 (b) The department shall forward the information and recommendations described in
3495 Subsection (1)(a) to the commission to aid in the commission's determination.
3496 (2) Before granting a resort spa sublicense, the commission shall:
3497 (a) determine that:

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- 114 - 3498 (i) the resort licensee seeking the resort spa sublicense has complied with all basic
3499 qualifications and requirements for making application for a resort spa sublicense as provided
3500 by Sections 32A-4a-302 and 32A-4a-303 ; and
3501 (ii) the application is complete;
3502 (b) consider the location within which the resort spa outlet is located, including:
3503 (i) physical characteristics such as:
3504 (A) condition of the location;
3505 (B) square footage; and
3506 (C) parking availability; and
3507 (ii) operational factors such as:
3508 (A) tourist traffic;
3509 (B) demographics;
3510 (C) population to be served; and
3511 (D) the extent of and proximity to any community location;
3512 (c) consider the resort licensee's ability to manage and operate a resort spa sublicense
3513 and the ability of any person who will act in a supervisory or managerial capacity for the resort
3514 spa to manage and operate a resort spa license, including:
3515 (i) management experience;
3516 (ii) past retail liquor experience; and
3517 (iii) the type of management scheme employed by the resort spa;
3518 (d) consider the nature or type of resort spa operation under the proposed resort spa
3519 sublicense, including:
3520 (i) the type of menu items offered and emphasized;
3521 (ii) whether the resort spa emphasizes service to an adult clientele or minors;
3522 (iii) the hours of operation;
3523 (iv) the seating capacity of the resort spa; and
3524 (v) the gross sales of food items; and
3525 (e) consider any other factors or circumstances the commission considers necessary.
3526 Section 34. Section 32A-4a-305 is enacted to read:
3527 32A-4a-305. Operational restrictions.
3528 (1) (a) A person granted a resort license and the employees and management personnel

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- 115 - 3529 of the resort licensee or otherwise related to a resort spa sublicense shall comply with this title,
3530 the rules of the commission, and the conditions and requirements in this section in the
3531 operation of the resort spa.
3532 (b) Subject to Section 32A-4a-502 , failure to comply with this section may result in a
3533 suspension or revocation of the resort license or resort spa sublicense, or other disciplinary
3534 action taken against individual employees or management personnel.
3535 (2) Subject to the other provisions of this section, a person operating under a resort spa
3536 sublicense may not sell an alcoholic beverage to or allow a person to be admitted to or use the
3537 resort spa sublicense premises other than:
3538 (a) a resident;
3539 (b) a public customer who holds a valid customer card issued under Subsection (4); or
3540 (c) an invitee.
3541 (3) A person operating under a resort spa sublicense may allow an individual to be
3542 admitted to or use the resort spa sublicense premises as an invitee subject to the following
3543 conditions:
3544 (a) the individual must be previously authorized by one of the following who agrees to
3545 host the individual as an invitee into the resort spa:
3546 (i) a resident; or
3547 (ii) a public customer who holds a valid customer card issued under Subsection (4);
3548 (b) the individual has only those privileges derived from the individual's host for the
3549 duration of the invitee's visit to the resort spa; and
3550 (c) a resort licensee, resort spa, or an employee of the resort licensee or resort spa may
3551 not enter into an agreement or arrangement with a resident or public customer to
3552 indiscriminately host a member of the general public into the resort spa as an invitee.
3553 (4) A person operating under a resort spa sublicense may issue a customer card to
3554 allow an individual to enter and use the resort spa sublicense premises on a temporary basis
3555 under the following conditions:
3556 (a) the resort spa may not issue a customer card for a time period that exceeds three
3557 weeks;
3558 (b) the resort spa shall assess a fee to a public customer for a customer card;
3559 (c) the resort spa may not issue a customer card to a minor; and

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- 116 - 3560 (d) a public customer may not host more than seven invitees at one time.
3561 (5) (a) For purposes of the resort spa sublicense, the resort licensee shall ensure that an
3562 expense ledger or record is maintained showing in detail:
3563 (i) quarterly expenditures for the resort spa separated by payments for:
3564 (A) malt or brewed beverage;
3565 (B) liquor;
3566 (C) food;
3567 (D) set-ups; and
3568 (E) any other item required by the department; and
3569 (ii) sales made separately for:
3570 (A) malt or brewed beverages;
3571 (B) liquor;
3572 (C) food;
3573 (D) set-ups; and
3574 (E) any other item required by the department.
3575 (b) For purposes of the resort spa sublicense, the resort licensee shall ensure that a
3576 record required by this Subsection (5) is kept:
3577 (i) in a form approved by the department; and
3578 (ii) current for each three-month period.
3579 (c) An expenditure under resort spa sublicense shall be supported by:
3580 (i) a delivery ticket;
3581 (ii) an invoice;
3582 (iii) a receipted bill;
3583 (iv) a canceled check;
3584 (v) a petty cash voucher; or
3585 (vi) other sustaining datum or memorandum.
3586 (d) In addition to a ledger or record required by Subsection (5)(a), for purposes of the
3587 resort spa sublicense, a resort licensee shall ensure that accounting and other records and
3588 documents as the department may require are maintained.
3589 (e) A resort licensee or an employee acting for the resort licensee or under a resort spa
3590 sublicense, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes an

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- 117 - 3591 entry in a book of account or other document for a resort spa sublicense required to be made,
3592 maintained, or preserved by this title or the rules of the commission for the purpose of
3593 deceiving the commission, the department, or an official or employee of the commission or
3594 department, is subject to:
3595 (i) the suspension or revocation of the resort spa sublicense; and
3596 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
3597 (f) (i) For purposes of the resort spa sublicense, the resort licensee shall ensure that a
3598 record required by this section is kept and maintained, and a book, record, receipt, or
3599 disbursement is maintained or used for the resort spa sublicense:
3600 (A) as the department requires; and
3601 (B) for a minimum period of three years.
3602 (ii) A record, book, receipt, or disbursement is subject to inspection by an authorized
3603 representative of the commission and the department.
3604 (iii) A resort licensee shall allow the department, through an auditor or examiner of the
3605 department, to audit the records for a resort spa sublicense at the times the department
3606 considers advisable.
3607 (iv) The department shall audit the records for a resort spa sublicense at least once
3608 annually.
3609 (6) A resort licensee shall own or lease premises suitable for the resort spa's activities.
3610 (7) (a) A resort licensee may not maintain a premises in a manner that barricades or
3611 conceals the resort spa sublicense's operation.
3612 (b) A member of the commission, authorized department personnel, or a peace officer
3613 shall, upon presentation of credentials, be admitted immediately to a resort spa sublicense
3614 premises and permitted without hindrance or delay to inspect completely the entire resort spa
3615 sublicense premises and the books and records for the resort spa sublicense, at any time during
3616 which the resort spa sublicense is open for the transaction of business with a resident.
3617 (8) A resort spa must have food available at all times when an alcoholic beverage is
3618 sold, served, or consumed on the resort spa sublicense premises.
3619 (9) (a) Liquor may not be purchased for a resort spa sublicense except from a state
3620 store or package agency.
3621 (b) Liquor purchased from a state store or package agency may be transported by the

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- 118 - 3622 resort licensee from the place of purchase to the resort spa sublicense premises.
3623 (c) Payment for liquor shall be made in accordance with rules established by the
3624 commission.
3625 (10) A person operating under a resort spa sublicense may sell or provide a primary
3626 spirituous liquor only in a quantity not to exceed 1.5 ounces per beverage dispensed through a
3627 calibrated metered dispensing system approved by the department in accordance with
3628 commission rules adopted under this title, except that:
3629 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
3630 system if used as a secondary flavoring ingredient in a beverage subject to the following
3631 restrictions:
3632 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
3633 a primary spirituous liquor;
3634 (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
3635 (iii) the resort licensee shall designate a location where flavorings are stored on the
3636 floor plan provided to the department; and
3637 (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
3638 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
3639 system if used:
3640 (i) as a flavoring on a dessert; and
3641 (ii) in the preparation of a flaming food dish, drink, or dessert; and
3642 (c) a person at a resort spa may have no more than:
3643 (i) 2.5 ounces of spirituous liquor at a time before the person; or
3644 (ii) two spirituous liquor drinks at a time before a resort spa patron, except that the
3645 resort spa patron may not have two spirituous liquor drinks before the resort spa patron if one
3646 of the spirituous liquor drinks consists only of the primary spirituous liquor for the other
3647 spirituous liquor drink.
3648 (11) (a) (i) Wine may be sold and served by the glass or an individual portion not to
3649 exceed five ounces per glass or individual portion.
3650 (ii) An individual portion may be served to a person in more than one glass as long as
3651 the total amount of wine does not exceed five ounces.
3652 (iii) An individual portion of wine is considered to be one alcoholic beverage under

Text Box
- 119 - 3653 Subsection (15)(c).
3654 (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
3655 fixed by the commission to a table of four or more persons.
3656 (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
3657 fixed by the commission to a table of less than four persons.
3658 (c) A wine service may be performed and a service charge assessed by a resort spa as
3659 authorized by commission rule for wine purchased at the resort spa.
3660 (12) (a) Heavy beer may be served in an original container not exceeding one liter at a
3661 price fixed by the commission.
3662 (b) A flavored malt beverage may be served in an original container not exceeding one
3663 liter at a price fixed by the commission.
3664 (c) A service charge may be assessed by the resort spa for heavy beer or a flavored malt
3665 beverage purchased at the resort spa.
3666 (13) (a) (i) Subject to Subsection (13)(a)(ii), a person operating under a resort spa
3667 sublicense may sell beer for on-premise consumption:
3668 (A) in an open container; and
3669 (B) on draft.
3670 (ii) Beer sold pursuant to Subsection (13)(a)(i) shall be in a size of container that does
3671 not exceed two liters, except that beer may not be sold to an individual in a size of container
3672 that exceeds one liter.
3673 (b) (i) A person operating under a resort spa sublicense who sells beer pursuant to
3674 Subsection (13)(a):
3675 (A) may do so without obtaining a separate on-premise beer retailer license from the
3676 commission; and
3677 (B) shall comply with all appropriate operational restrictions under Chapter 10, Beer
3678 Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
3679 inconsistent with or less restrictive than the operational restrictions under this part.
3680 (ii) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
3681 Licenses, required by Subsection (13)(b)(i), may result in a suspension or revocation of:
3682 (A) the resort spa sublicense; and
3683 (B) an alcoholic beverage license issued by a local authority.

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- 120 - 3684 (14) An alcoholic beverage may not be stored, served, or sold in a place other than as
3685 designated in the resort licensee's application, unless the resort licensee first applies for and
3686 receives approval from the department for a change of location within the resort spa.
3687 (15) (a) A person may only make an alcoholic beverage purchase in the resort spa from
3688 and be served by a person employed, designated, and trained by the resort licensee or an agent
3689 of the resort license to sell, dispense, and serve an alcoholic beverage.
3690 (b) Notwithstanding Subsection (15)(a), a person who purchases bottled wine from an
3691 employee described in Subsection (15)(a) or carries bottled wine onto the resort spa sublicense
3692 premises pursuant to Subsection (22) may thereafter serve wine from the bottle to the person or
3693 others at the person's table.
3694 (c) An individual furnished an alcoholic beverage at a resort spa may have no more
3695 than two alcoholic beverages of any kind at a time before the individual, subject to the
3696 limitation of Subsection (10)(c)(ii).
3697 (16) The liquor storage area shall remain locked at all times other than those hours and
3698 days when liquor sales and service are authorized by law.
3699 (17) (a) An alcoholic beverage may only be consumed at a table or counter.
3700 (b) An alcoholic beverage may not be served to or consumed by a person at a bar.
3701 (18) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
3702 resort spa after 1 a.m. or before 10 a.m.
3703 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
3704 Licenses, for on-premise beer licenses.
3705 (c) (i) Notwithstanding Subsections (18)(a) and (b), a resort spa shall remain open for
3706 one hour after the resort spa ceases the sale and service of an alcoholic beverage during which
3707 time a person at the resort spa may finish consuming:
3708 (A) a single drink containing spirituous liquor;
3709 (B) a single serving of wine not exceeding five ounces;
3710 (C) a single serving of heavy beer;
3711 (D) a single serving of beer not exceeding 26 ounces; or
3712 (E) a single serving of a flavored malt beverage.
3713 (ii) A resort spa is not required to remain open:
3714 (A) after all persons have vacated the resort spa sublicense premises; or

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- 121 - 3715 (B) during an emergency.
3716 (d) Between the hours of 2 a.m. and 10 a.m. a person operating under a resort spa
3717 sublicense may not allow a person to remain on the resort spa sublicense premises to consume
3718 an alcoholic beverage on the resort spa sublicense premises.
3719 (19) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
3720 (a) minor;
3721 (b) person actually, apparently, or obviously intoxicated;
3722 (c) known habitual drunkard; or
3723 (d) known interdicted person.
3724 (20) (a) (i) Liquor may be sold only at a price fixed by the commission.
3725 (ii) Liquor may not be sold at a discount price on any date or at any time.
3726 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
3727 beverage for the resort spa sublicense.
3728 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
3729 over consumption or intoxication.
3730 (d) The price of a single serving of a primary spirituous liquor shall be the same
3731 whether served as a single drink or in conjunction with another alcoholic beverage.
3732 (e) An alcoholic beverage may not be sold at a special or reduced price for only certain
3733 hours of the resort spa's business day such as a "happy hour."
3734 (f) More than one alcoholic beverage may not be sold or served for the price of a single
3735 alcoholic beverage.
3736 (g) An indefinite or unlimited number of alcoholic beverages may not be sold or served
3737 during a set period for a fixed price.
3738 (h) A person operating under a resort spa sublicense may not engage in a promotion
3739 involving or offering a free alcoholic beverage to a person at the resort spa.
3740 (21) An alcoholic beverage may not be purchased for a person at the resort spa by:
3741 (a) the resort licensee; or
3742 (b) an employee or agent of the resort licensee or resort spa.
3743 (22) (a) A person may not bring onto the resort spa sublicense premises an alcoholic
3744 beverage for on-premise consumption, except that a person may bring, subject to the discretion
3745 of the resort licensee, bottled wine onto the resort spa sublicense premises for on-premise

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- 122 - 3746 consumption.
3747 (b) Except as provided in Subsection (22)(a), a person operating under a resort spa
3748 sublicense including an officer, manager, employee, or agent of a resort spa or resort licensee
3749 may not allow a person to bring onto the resort spa sublicense premises an alcoholic beverage
3750 for consumption on the resort spa license premises.
3751 (c) If bottled wine is carried in by a person, the person shall deliver the wine to a server
3752 or other representative of the resort spa upon entering the resort spa.
3753 (d) A wine service may be performed and a service charge assessed by the resort spa as
3754 authorized by commission rule for wine carried in by a person.
3755 (23) (a) Except as provided in Subsection (23)(b), a person operating under a resort spa
3756 sublicense or an employee of that person may not permit a person to carry from the resort spa
3757 sublicense premises an open container that:
3758 (i) is used primarily for drinking purposes; and
3759 (ii) contains an alcoholic beverage.
3760 (b) A person may remove the unconsumed contents of a bottle of wine, if before
3761 removal, the bottle is recorked or recapped.
3762 (24) (a) A minor may not be admitted into, use, or be on:
3763 (i) the sublicense premises of a resort spa unless accompanied by a person 21 years of
3764 age or older; or
3765 (ii) a lounge or bar area, as defined by commission rule, of the resort spa sublicense
3766 premises.
3767 (b) (i) Except as provided in Subsection (24)(b)(ii), a resort licensee or a person
3768 operating under a resort spa sublicense may not employ a minor to:
3769 (A) sell, dispense, or handle an alcoholic beverage; or
3770 (B) work in a lounge or bar area of the resort spa sublicense premises.
3771 (ii) A resort licensee or a person operating under a resort spa sublicense may employ a
3772 minor who is at least 16 years of age to enter the sale at a cash register or other sales recording
3773 device, except that a minor may not work in a lounge or bar area of the resort spa sublicense
3774 premises.
3775 (25) An employee for a resort spa, while on duty, may not:
3776 (a) consume an alcoholic beverage; or

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- 123 - 3777 (b) be intoxicated.
3778 (26) (a) A person operating under a resort spa sublicense shall have available on the
3779 resort spa sublicense premises for a person to review at the time that the customer requests it, a
3780 written alcoholic beverage price list or a menu containing the price of an alcoholic beverage
3781 sold or served by the resort spa including:
3782 (i) a set-up charge;
3783 (ii) a service charge; or
3784 (iii) a chilling fee.
3785 (b) A charge or fee made in connection with the sale, service, or consumption of liquor
3786 may be stated in food or alcoholic beverage menus including:
3787 (i) a set-up charge;
3788 (ii) a service charge; or
3789 (iii) a chilling fee.
3790 (27) For purposes of the resort spa sublicense, the resort licensee shall ensure that the
3791 following are displayed in a prominent place in the resort spa:
3792 (a) the resort spa sublicense that is issued by the department;
3793 (b) a list of the types and brand names of liquor being served through its calibrated
3794 metered dispensing system; and
3795 (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
3796 drugs is a serious crime that is prosecuted aggressively in Utah."
3797 (28) A person operating under a resort spa sublicense may not on the resort spa
3798 sublicense premises:
3799 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
3800 Chapter 10, Part 11, Gambling;
3801 (b) have any video gaming device, as defined and proscribed in Title 76, Chapter 10,
3802 Part 11, Gambling; or
3803 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
3804 the risking of something of value for a return or for an outcome when the return or outcome is
3805 based upon an element of chance, excluding the playing of an amusement device that confers
3806 only an immediate and unrecorded right of replay not exchangeable for value.
3807 (29) A resort spa sublicense may not be transferred from one location to another

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- 124 - 3808 location, without prior written approval of the commission.
3809 (30) (a) A resort licensee, may not sell, transfer, assign, exchange, barter, give, or
3810 attempt in any way to dispose of the resort spa sublicense to another person, whether for
3811 monetary gain or not.
3812 (b) A resort spa sublicense has no monetary value for the purpose of any type of
3813 disposition.
3814 (31) A person operating under a resort spa sublicense or an employee of that person
3815 may not knowingly allow a person on the resort spa sublicense premises to, in violation of Title
3816 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
3817 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
3818 58-37-2 ; or
3819 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
3820 Section 58-37a-3 .
3821 Section 35. Section 32A-4a-401 is enacted to read:
3822 Part 4. Operational Requirements
3823 32A-4a-401. Operational restrictions for resort license.
3824 (1) (a) A person granted a resort license and the employees and management personnel
3825 of the resort licensee including those operating under a sublicense shall comply with this title,
3826 the rules of the commission, and the conditions and requirements in this section.
3827 (b) Subject to Section 32A-4a-502 , failure to comply with this section may result in a
3828 suspension or revocation of the resort license or a sublicense, or other disciplinary action taken
3829 against individual employees or management personnel.
3830 (2) (a) A resort licensee may not offer for sale, sell, serve, or otherwise furnish an
3831 alcoholic beverage except:
3832 (i) on a sublicense premises;
3833 (ii) pursuant to a permit issued under this title; or
3834 (iii) under a package agency agreement with the department, subject to Chapter 3,
3835 Package Agencies.
3836 (b) A resort licensee who offers for sale, sells, serves, or otherwise furnishes an
3837 alcoholic beverage as provided in Subsection (2)(a), shall offer for sale, sell, or furnish the
3838 alcoholic beverage:

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- 125 - 3839 (i) if on a sublicense premises, in accordance with the operational requirements under
3840 the provisions applicable to the sublicense, except as provided in Section 32A-4a-402 ;
3841 (ii) if under a permit issued under this title, in accordance with the operational
3842 requirements under the provisions applicable to the permit; and
3843 (iii) if as a package agency, in accordance with the contract with the department and
3844 Chapter 3, Package Agencies.
3845 (3) A person involved in the sale or service of an alcoholic beverage under a resort
3846 license shall:
3847 (a) be under the supervision and direction of the resort licensee; and
3848 (b) complete the seminar provided for in Section 62A-15-401 .
3849 (4) (a) A resort licensee may not purchase liquor except from a state store or package
3850 agency.
3851 (b) Liquor purchased by a resort licensee in accordance with this Subsection (4) may be
3852 transported by the resort licensee from the place of purchase to the boundary of the resort
3853 building.
3854 (c) A resort licensee shall pay for liquor in accordance with rules made by the
3855 commission.
3856 (5) An alcoholic beverage may not be stored, served, or sold in a place other than as
3857 designated in the resort licensee's application, except that an additional location in the
3858 boundary of the resort building may be approved in accordance with guidelines approved by
3859 the commission.
3860 (6) An alcoholic beverage storage area on the boundary of the resort building shall
3861 remain locked at all times other than those hours and days when alcoholic beverage sales are
3862 authorized by law.
3863 (7) A resort licensee may not engage in a public promotion involving or offering a free
3864 alcoholic beverage to the general public.
3865 (8) A resort licensee may not on the boundary of the resort building:
3866 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
3867 Chapter 10, Part 11, Gambling;
3868 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
3869 Part 11, Gambling; or

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- 126 - 3870 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
3871 the risking of something of value for a return or for an outcome when the return or outcome is
3872 based upon an element of chance, excluding the playing of an amusement device that confers
3873 only an immediate and unrecorded right of replay not exchangeable for value.
3874 (9) (a) A resort licensee shall maintain accounting and such other records and
3875 documents as the commission or department may require.
3876 (b) A resort licensee or person acting for the resort licensee, who knowingly forges,
3877 falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or other
3878 document of the resort licensee required to be made, maintained, or preserved by this title or
3879 the rules of the commission for the purpose of deceiving the commission, the department, or an
3880 official or employee of the commission or department, is subject to:
3881 (i) the suspension or revocation of the resort license; and
3882 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
3883 (10) (a) Subject to Subsection (10)(b), a resort license shall operate in a manner so that
3884 at least 70% of the annual aggregate of the gross receipts related to the sale of food or
3885 beverages for the resort license and each of its sublicenses is from the sale of food, not
3886 including:
3887 (i) mix for an alcoholic beverage; and
3888 (ii) a charge in connection with the service of an alcoholic beverage.
3889 (b) In calculating the annual aggregate of the gross receipts described in Subsection
3890 (10)(a), a resort licensee is not required to include in the calculation monies from the sale of a
3891 bottle of wine by the retail licensee or under a sublicense in excess of $250.
3892 (11) (a) Room service of an alcoholic beverage to a lodging accommodation of a resort
3893 licensee shall be provided in person by a resort licensee employee only to an adult occupant in
3894 the lodging accommodation.
3895 (b) An alcoholic beverage may not be left outside a lodging accommodation for
3896 retrieval by an occupant.
3897 (c) A resort licensee may only provide an alcoholic beverage for room service in a
3898 sealed container.
3899 (12) A resort licensee or an employee of the resort licensee may not knowingly allow a
3900 person on the boundary of the resort building to, in violation of Title 58, Chapter 37, Utah

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- 127 - 3901 Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
3902 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
3903 58-37-2 ; or
3904 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
3905 Section 58-37a-3 .
3906 (13) A person may not transfer a resort license from one business location to another
3907 location without prior written approval of the commission.
3908 (14) (a) A resort licensee may not sell, transfer, assign, exchange, barter, give, or
3909 attempt in any way to dispose of the license to another person, whether for monetary gain or
3910 not.
3911 (b) A resort license has no monetary value for the purpose of any type of disposition.
3912 (15) (a) A resort licensee may not close or cease operation of a resort licensee for a
3913 period longer than 240 hours, unless:
3914 (i) the resort licensee notifies the department in writing at least seven days before the
3915 day on which the resort licensee closes or ceases operation; and
3916 (ii) the closure or cessation of operation is first approved by the department.
3917 (b) Notwithstanding Subsection (15)(a), in the case of emergency closure, the resort
3918 licensee shall immediately notify the department by telephone.
3919 (c) (i) The department may authorize a closure or cessation of operation for a period
3920 not to exceed 60 days.
3921 (ii) The department may extend the initial period an additional 30 days upon:
3922 (A) written request of the resort licensee; and
3923 (B) a showing of good cause.
3924 (iii) A closure or cessation of operation may not exceed a total of 90 days without
3925 commission approval.
3926 (d) The notice required by Subsection (15)(a) shall include:
3927 (i) the dates of closure or cessation of operation;
3928 (ii) the reason for the closure or cessation of operation; and
3929 (iii) the date on which the resort licensee will reopen or resume operation.
3930 (e) Failure of the resort licensee to provide notice and to obtain department
3931 authorization before closure or cessation of operation results in an automatic forfeiture of:

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- 128 - 3932 (i) the resort license; and
3933 (ii) the unused portion of the resort license fee for the remainder of the license year
3934 effective immediately.
3935 (f) Failure of the resort licensee to reopen or resume operation by the approved date
3936 results in an automatic forfeiture of:
3937 (i) the resort licence; and
3938 (ii) the unused portion of the resort license fee for the remainder of the license year.
3939 Section 36. Section 32A-4a-402 is enacted to read:
3940 32A-4a-402. Operational restrictions for a sublicense.
3941 (1) A person operating under a sublicense is subject to the operational restrictions
3942 under the provisions applicable to the sublicense except that, notwithstanding a requirement in
3943 the provisions applicable to the sublicense, a person operating under the sublicense is not
3944 subject to a requirement that a certain percentage of the gross receipts for the sublicense be
3945 from the sale of food, except to the extent that the gross receipts for the sublicense are included
3946 in calculating the percentages under Subsection 32A-4a-401 (10).
3947 (2) Subject to Section 32A-4a-502 , for purposes of interpreting an operational
3948 restriction imposed by the provisions applicable to a sublicense:
3949 (a) a requirement imposed on a person operating under a sublicense applies to the
3950 resort licensee; and
3951 (b) a requirement imposed on an employee or agent of a person operating under a
3952 sublicense applies to an employee or agent of the resort licensee.
3953 Section 37. Section 32A-4a-501 is enacted to read:
3954 Part 5. Enforcement
3955 32A-4a-501. Enforcement of qualifications for a resort license or sublicense.
3956 (1) The commission or department may not take an action described in Subsection (2)
3957 with regard to a resort license unless the person who is found not to meet the qualifications of
3958 Section 32A-4a-203 is one of the following who is engaged in the management of the resort:
3959 (a) a partner;
3960 (b) a managing agent;
3961 (c) a manager;
3962 (d) an officer;

Text Box
- 129 - 3963 (e) a director;
3964 (f) a stockholder who holds at least 20% of the total issued and outstanding stock of the
3965 applicant corporation;
3966 (g) a member who owns at least 20% of the applicant limited liability company; or
3967 (h) a person employed to act in a supervisory or managerial capacity for the resort
3968 licensee.
3969 (2) Subsection (1) applies to:
3970 (a) the commission immediately suspending or revoking a resort license, if after the
3971 day on which the resort license is granted, a person described in Subsection 32A-4a-203 (1)(a),
3972 (b), or (c):
3973 (i) is found to have been convicted of an offense described in Subsection
3974 32A-4a-203 (1)(a) before the resort license is granted; or
3975 (ii) on or after the day on which the resort license is granted:
3976 (A) is convicted of an offense described in Subsection 32A-4a-203 (1)(a)(i), (ii), or (iii);
3977 or
3978 (B) (I) is convicted of driving under the influence of alcohol, a drug, or the combined
3979 influence of alcohol and a drug; and
3980 (II) was convicted of driving under the influence of alcohol, a drug, or the combined
3981 influence of alcohol and a drug within five years before the day on which the person is
3982 convicted of the offense described in Subsection 32A-4a-203 (2)(b)(ii)(A);
3983 (b) the director taking an emergency action by immediately suspending the operation of
3984 a resort license in accordance with Title 63G, Chapter 4, Administrative Procedures Act, for
3985 the period during which the criminal matter is being adjudicated if a person described in
3986 Subsection 32A-4a-203 (1)(a), (b), or (c):
3987 (i) is arrested on a charge for an offense described in Subsection 32A-4a-203 (1)(a)(i),
3988 (ii), or (iii); or
3989 (ii) (A) is arrested on a charge for the offense of driving under the influence of alcohol,
3990 a drug, or the combined influence of alcohol and a drug; and
3991 (B) was convicted of driving under the influence of alcohol, a drug, or the combined
3992 influence of alcohol and a drug within five years before the day on which the person is arrested
3993 on a charge described in Subsection (2)(b)(i); and

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- 130 - 3994 (c) the commission suspending or revoking a resort license because a person to whom a
3995 resort license is granted under this chapter no longer possesses the qualifications required by
3996 this title for obtaining the resort license.
3997 (3) This section does not prevent the commission from suspending or revoking a
3998 sublicense that is part of a resort license if a person employed to act in a supervisory or
3999 managerial capacity for a sublicense no longer meets the qualification requirements in the
4000 provisions applicable to the sublicense.
4001 Section 38. Section 32A-4a-502 is enacted to read:
4002 32A-4a-502. Enforcement of operational restrictions for a resort license or
4003 sublicense.
4004 (1) (a) Except as provided in Subsection (2) and in addition to Subsection (3), failure
4005 by a person described in Subsection (1)(b) to comply with this chapter or an operational
4006 restriction under a provision applicable to a sublicense may result in:
4007 (i) a suspension or revocation of the resort license;
4008 (ii) a fine or other administrative sanction permitted under this title; or
4009 (iii) other disciplinary action taken against an individual employee or management
4010 personnel of a resort licensee.
4011 (b) This Subsection (1) applies to:
4012 (i) a resort licensee;
4013 (ii) a person operating under a sublicense;
4014 (iii) an employee of a resort licensee or other person operating under a sublicense;
4015 (iv) an agent of a resort licensee or other person operating under a sublicense; or
4016 (v) personnel management of a resort licensee or other person operating under a
4017 sublicense.
4018 (2) (a) Notwithstanding the other provisions of this chapter and Section 32A-1-119 , if
4019 the failure to comply with this chapter described in Subsection (1) relates to an offer to sell,
4020 sell, service, or furnishing of an alcoholic beverage on a sublicense premises, a resort licensee
4021 or an individual member of the resort licensee's management personnel is subject to a sanction
4022 described in Subsection (1), only if the commission finds that:
4023 (i) during the three years before the day on which the commission makes the finding,
4024 there is three or more disciplinary proceedings against any person operating under a sublicense

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- 131 - 4025 of the resort licensee for failure to comply with an operational restriction applicable to the
4026 sublicense; and
4027 (ii) the resort licensee has not taken reasonable steps to prevent persons operating
4028 under a sublicense of the resort licensee from failing to comply with operational restrictions
4029 applicable to the sublicense.
4030 (b) This Subsection (2) applies if the three or more disciplinary proceedings described
4031 in Subsection (2)(a) are against:
4032 (i) the same person operating under a sublicense of the resort licensee; or
4033 (ii) two or more different persons operating under a sublicense of the resort licensee.
4034 (3) An operational restriction applicable to a person operating under a sublicense is
4035 enforced as provided by the provisions applicable to the sublicense.
4036 Section 39. Section 32A-4a-503 is enacted to read:
4037 32A-4a-503. Enforcement of Nuisance Licensee Act.
4038 Chapter 15a, Nuisance Licensee Act, applies to a resort license only if three or more of
4039 the sublicenses of the resort license have not been renewed under Chapter 15a, Nuisance
4040 Licensee Act, within three years from the day on which a resort licensee applies for the renewal
4041 of its resort license.
4042 Section 40. Section 32A-5-101 is amended to read:
4043 CHAPTER 5. CLUB LICENSES
4044 32A-5-101. Commission's power to license clubs -- Limitations.
4045 (1) As used in this chapter:
4046 (a) "Club license" means a license granted under this chapter.
4047 (b) "Club licensee" means a person granted a club license under this chapter.
4048 (c) "Dining club licensee" means a person who qualifies as a club licensee under
4049 Subsection (3)(a)(ii)(C).
4050 (d) "Equity club licensee" means a person who qualifies as a club licensee under
4051 Subsection (3)(a)(ii)(A).
4052 (e) "Fraternal club licensee" means a person who qualifies as a club licensee under
4053 Subsection (3)(a)(ii)(B).
4054 (f) "Social club licensee" means a person who qualifies as a club licensee under
4055 Subsection (3)(a)(ii)(D).

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- 132 - 4056 [(1)] (2) Before a [private club] person may sell or allow the consumption of an
4057 alcoholic [beverages] beverage on its premises as a club licensee, the [private club] person
4058 shall first obtain a license from the commission as provided in this chapter.
4059 [(2)] (3) (a) The commission may grant [private club licenses to social clubs,
4060 recreational, athletic, or kindred associations that desire to maintain premises upon which
4061 alcoholic beverages may be stored, sold, served, and consumed.] a club license to a person that:
4062 [(3) At the time the commission grants a private club license the commission shall
4063 designate whether the private club license qualifies as a class A, B, C, or D license as defined
4064 in Subsections (3)(a) through (d).]
4065 [(a) A "class A licensee" is a private club licensee that:]
4066 (i) meets the requirements of this chapter; and
4067 (ii) (A) for an equity club licensee, meets the following requirements:
4068 (I) whether incorporated or unincorporated:
4069 (Aa) is organized and operated solely for a social, recreational, patriotic, or fraternal
4070 purpose;
4071 (Bb) has members;
4072 (Cc) limits access to its premises to a member or a guest of the member; and
4073 (Dd) desires to maintain premises upon which an alcoholic beverage may be stored,
4074 sold to, served to, and consumed by a member or a guest of a member;
4075 [(ii)] (II) owns, maintains, or operates a substantial recreational facility in conjunction
4076 with a club house such as:
4077 [(A)] (Aa) a golf course; or
4078 [(B)] (Bb) a tennis facility;
4079 [(iii)] (III) has at least 50% of the total membership having:
4080 [(A)] (Aa) full voting rights; and
4081 [(B)] (Bb) an equal share of the equity of the club; and
4082 [(iv)] (IV) if there is more than one class of membership, has at least one class of
4083 membership that entitles each member in that class to:
4084 [(A)] (Aa) full voting rights; and
4085 [(B)] (Bb) an equal share of the equity of the club[.];
4086 [(b) A "class B licensee" is a private club licensee that:]

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- 133 - 4087 [(i) meets the requirements of this chapter;]
4088 (B) for a fraternal club licensee, meets the following requirements:
4089 (I) whether incorporated or unincorporated:
4090 (Aa) is organized and operated solely for a social, recreational, patriotic, or fraternal
4091 purpose;
4092 (Bb) has members;
4093 (Cc) limits access to its premises to a member or a guest of the member; and
4094 (Dd) desires to maintain premises upon which an alcoholic beverage may be stored,
4095 sold to, served to, and consumed by a member or a guest of a member;
4096 [(ii)] (II) has no capital stock;
4097 [(iii)] (III) exists solely for:
4098 [(A)] (Aa) the benefit of its members and their beneficiaries; and
4099 [(B)] (Bb) a lawful social, intellectual, educational, charitable, benevolent, moral,
4100 fraternal, patriotic, or religious purpose for the benefit of its members or the public, carried on
4101 through voluntary activity of its members in their local lodges;
4102 [(iv)] (IV) has a representative form of government; and
4103 [(v)] (V) has a lodge system in which:
4104 [(A)] (Aa) there is a supreme governing body;
4105 [(B)] (Bb) subordinate to the supreme governing body are local lodges, however
4106 designated, into which individuals are admitted as members in accordance with the laws of the
4107 fraternal;
4108 [(C)] (Cc) the local lodges are required by the laws of the fraternal to hold regular
4109 meetings at least monthly; [and]
4110 [(D)] (Dd) the local lodges regularly engage in one or more programs involving
4111 member participation to implement the purposes of Subsection (3)[(b)(iii).] (a)(ii)(B)(III); and
4112 (Ee) owns or leases a building or space in a building used for lodge activities;
4113 (C) for a dining club licensee, meets the following requirements:
4114 [(c) A "class C licensee" is a private club licensee that:]
4115 [(i) meets the requirements of this chapter;]
4116 [(ii) is a dining club, as] (I) is determined by the commission [in accordance with
4117 Subsection (4); and] to be a dining club licensee, as part of which the commission may

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- 134 - 4118 consider:
4119 (Aa) the square footage and seating capacity of an applicant;
4120 (Bb) what portion of the square footage and seating capacity will be used for a dining
4121 area in comparison to the portion that will be used as a bar area;
4122 (Cc) whether full meals including appetizers, main courses, and desserts are served;
4123 (Dd) whether the applicant will maintain adequate on-premise culinary facilities to
4124 prepare full meals, except an applicant that is located on the premise of a hotel or resort facility
4125 may use the culinary facilities of the hotel or resort facility;
4126 (Ee) whether the entertainment provided at the club is suitable for minors; and
4127 (Ff) the club management's ability to manage and operate a dining club license
4128 including management experience, past dining club licensee or restaurant management
4129 experience, and the type of management scheme employed by the dining club license; and
4130 [(iii)] (II) maintains at least 50% of its total [private] club business from the sale of
4131 food, not including:
4132 [(A)] (Aa) mix for alcoholic beverages; or
4133 [(B)] (Bb) service charges[.]; or
4134 [(d) A "class D licensee" is a private club licensee that:]
4135 [(i) meets the requirements of this chapter; and]
4136 (D) for a social club licensee:
4137 [(ii) (A)] (I) does not meet the requirements of a [class A, B, or C] license under
4138 Subsections (3)(a)(ii)(A) through (C); or
4139 [(B)] (II) seeks to qualify as a [class D] social club licensee.
4140 [(4) In determining whether an applicant is a dining club under Subsection (3)(c), the
4141 commission:]
4142 [(a) shall determine whether the applicant maintains at least 50% of its total private
4143 club business from the sale of food, not including:]
4144 [(i) mix for alcoholic beverages;]
4145 [(ii) service charges; or]
4146 [(iii) membership and visitor card fees; and]
4147 [(b) may consider:]
4148 [(i) the square footage and seating capacity of the applicant;]

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- 135 - 4149 [(ii) what portion of the square footage and seating capacity will be used for a dining
4150 area in comparison to the portion that will be used as a bar area;]
4151 [(iii) whether full meals including appetizers, main courses, and desserts are served;]
4152 [(iv) whether the applicant will maintain adequate on-premise culinary facilities to
4153 prepare full meals, except an applicant that is located on the premise of a hotel or resort facility
4154 may use the culinary facilities of the hotel or resort facility;]
4155 [(v) whether the entertainment provided at the club is suitable for minors; and]
4156 [(vi) the club management's ability to manage and operate a dining club including:]
4157 [(A) management experience;]
4158 [(B) past dining club or restaurant management experience; and]
4159 [(C) the type of management scheme employed by the private club.]
4160 (b) At the time that the commission grants a club license, the commission shall
4161 designate the type of club license for which the person qualifies.
4162 [(5)] (4) (a) A [private] club licensee or [any] an officer, director, managing agent, or
4163 employee of a [private] club licensee may not store, sell, serve, or permit consumption of an
4164 alcoholic [beverages] beverage upon the premises of the club licensee, under a permit issued by
4165 local authority or otherwise, unless a [private] club license is first [issued] granted by the
4166 commission.
4167 (b) Violation of this Subsection [(5)] (4) is a class B misdemeanor.
4168 [(6)] (5) (a) Subject to the other provisions of this Subsection [(6)] (5) and Subsection
4169 32A-4a-201 (2), the commission may [issue private] grant club licenses at places and in
4170 numbers as the commission considers necessary.
4171 (b) The total number of [private] club licenses may not at any time aggregate more than
4172 that number determined by dividing the population of the state by 7,850.
4173 (c) For purposes of this Subsection [(6)] (5), population shall be determined by:
4174 (i) the most recent United States decennial or special census; or
4175 (ii) another population determination made by the United States or state governments.
4176 (d) (i) The commission may issue seasonal [private] club licenses to be established in
4177 areas the commission considers necessary[.] to:
4178 (A) a dining club licensee; or
4179 (B) a social club licensee.

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- 136 - 4180 (ii) A seasonal [private] club license shall be for a period of six consecutive months.
4181 (iii) A [private] club license issued for operation during a summer time period is
4182 known as a "Seasonal A" [private] club license. The period of operation for a "Seasonal A"
4183 club license shall:
4184 (A) begin on May 1; and
4185 (B) end on October 31.
4186 (iv) A [private] club license issued for operation during a winter time period is known
4187 as a "Seasonal B" [private] club license. The period of operation for a "Seasonal B" club
4188 license shall:
4189 (A) begin on November 1; and
4190 (B) end on April 30.
4191 (v) In determining the number of [private] club licenses that the commission may issue
4192 under this section:
4193 (A) a seasonal [private] club license is counted as [1/2] one-half of one [private] club
4194 license; and
4195 (B) each "Seasonal A" club license shall be paired with a "Seasonal B" club license.
4196 (e) (i) If the location, design, and construction of a hotel may require more than one
4197 [private] club license location within the hotel to serve the public convenience, the commission
4198 may authorize as many as three [private] club license locations within the hotel under one club
4199 license if:
4200 (A) the hotel has a minimum of 150 guest rooms; and
4201 (B) all locations under the club license are:
4202 (I) within the same hotel facility; and
4203 (II) on premises [which] that are:
4204 (Aa) managed or operated by the club licensee; and
4205 (Bb) owned or leased by the club licensee.
4206 (ii) A facility other than a hotel may not have more than one [private] club license
4207 location under a single [private] club license.
4208 [(7)] (6) (a) Except as provided in Subsection [(7)] (6)(b), (c), or (d), the premises of a
4209 [private] club license may not be established:
4210 (i) within 600 feet of a community location, as measured by the method in Subsection

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- 137 - 4211 [(7)] (6)(e); or
4212 (ii) within 200 feet of a community location, measured in a straight line from the
4213 nearest entrance of the proposed outlet to the nearest property boundary of the community
4214 location.
4215 (b) With respect to the establishment of a [private] club license, the commission may
4216 authorize a variance to reduce the proximity requirement of Subsection [(7)] (6)(a)(i) if:
4217 (i) the local authority grants its written consent to the variance;
4218 (ii) the commission finds that alternative locations for establishing a [private] club
4219 license in the community are limited;
4220 (iii) a public hearing is held in the city, town, or county, and where practical in the
4221 neighborhood concerned;
4222 (iv) after giving full consideration to all of the attending circumstances and the policies
4223 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
4224 club license would not be detrimental to the public health, peace, safety, and welfare of the
4225 community; and
4226 (v) (A) the community location governing authority gives its written consent to the
4227 variance; or
4228 (B) when written consent is not given by the community location governing authority,
4229 the commission finds that the applicant has established that:
4230 (I) there is substantial unmet public demand to consume alcohol in a public setting
4231 within the geographic boundary of the local authority in which the [private] club licensee is to
4232 be located;
4233 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
4234 described in Subsection [(7)] (6)(b)(v)(B)(I) other than through the establishment of a [private]
4235 club licensee; and
4236 (III) there is no reasonably viable alternative location within the geographic boundary
4237 of the local authority in which the [private] club licensee is to be located for establishing a
4238 [private] club license to satisfy the unmet demand described in Subsection [(7)] (6)(b)(v)(B)(I).
4239 (c) With respect to the establishment of a [private] club license, the commission may
4240 authorize a variance that reduces the proximity requirement of Subsection [(7)] (6)(a)(ii) if:
4241 (i) the community location at issue is:

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- 138 - 4242 (A) a public library; or
4243 (B) a public park;
4244 (ii) the local authority grants its written consent to the variance;
4245 (iii) the commission finds that alternative locations for establishing a [private] club
4246 license in the community are limited;
4247 (iv) a public hearing is held in the city, town, or county, and where practical in the
4248 neighborhood concerned;
4249 (v) after giving full consideration to all of the attending circumstances and the policies
4250 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
4251 [private] club license would not be detrimental to the public health, peace, safety, and welfare
4252 of the community; and
4253 (vi) (A) the community location governing authority gives its written consent to the
4254 variance; or
4255 (B) when written consent is not given by the community location governing authority,
4256 the commission finds that the applicant has established that:
4257 (I) there is substantial unmet public demand to consume alcohol in a public setting
4258 within the geographic boundary of the local authority in which the [private] club licensee is to
4259 be located;
4260 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
4261 described in Subsection [(7)] (6)(c)(vi)(B)(I) other than through the establishment of a [private]
4262 club license; and
4263 (III) there is no reasonably viable alternative location within the geographic boundary
4264 of the local authority in which the [private] club licensee is to be located for establishing a
4265 [private] club license to satisfy the unmet demand described in Subsection [(7)]
4266 (6)(c)(vi)(B)(I).
4267 (d) With respect to the premises of a [private] club license issued by the commission
4268 that undergoes a change of ownership, the commission may waive or vary the proximity
4269 requirements of Subsection [(7)] (6)(a) in considering whether to grant a [private] club license
4270 to the new owner of the premises if:
4271 (i) (A) the premises previously received a variance reducing the proximity requirement
4272 of Subsection [(7)] (6)(a)(i); or

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- 139 - 4273 (B) the premises received a variance reducing the proximity requirement of Subsection
4274 [(7)] (6)(a)(ii) on or before May 4, 2008; or
4275 (ii) a variance from proximity requirements was otherwise allowed under this title.
4276 (e) The 600 foot limitation described in Subsection [(7)] (6)(a)(i) is measured from the
4277 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
4278 property boundary of the community location.
4279 [(8)] (7) (a) Nothing in this section prevents the commission from considering the
4280 proximity of any educational, religious, and recreational facility, or any other relevant factor in
4281 reaching a decision on whether to issue a [private] club license.
4282 (b) For purposes of this Subsection [(8)] (7), "educational facility" includes:
4283 (i) a nursery school;
4284 (ii) infant day care center; and
4285 (iii) a trade and technical school.
4286 [(9)] (8) If requested by a [private] club licensee, the commission may approve a
4287 change in the [class] type of [private] club license in accordance with rules made by the
4288 commission.
4289 (9) To the extent not prohibited by law other than this chapter, this chapter does not
4290 prevent a dining club licensee or social club licensee from restricting access to the club license
4291 premises on the basis of an individual:
4292 (a) paying a fee; or
4293 (b) agreeing to being on a list of individuals who have access to the club license
4294 premises.
4295 Section 41. Section 32A-5-102 is amended to read:
4296 32A-5-102. Application and renewal requirements.
4297 (1) A [club] person seeking a [class A, B, C, or D private] club license under this
4298 chapter shall file a written application with the department in a form prescribed by the
4299 department. The application shall be accompanied by:
4300 (a) a nonrefundable $250 application fee;
4301 (b) an initial license fee of $2,500, which is refundable if a club license is not granted;
4302 (c) written consent of the local authority;
4303 (d) a copy of the applicant's current business license;

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- 140 - 4304 (e) evidence of proximity to any community location, with proximity requirements
4305 being governed by Section 32A-5-101 ;
4306 (f) evidence that the applicant operates a club where a variety of food is prepared and
4307 served in connection with dining accommodations;
4308 (g) a bond as specified by Section 32A-5-106 ;
4309 (h) a floor plan of the club license premises, including:
4310 (i) consumption areas; and
4311 (ii) the area where the applicant proposes to keep and store liquor;
4312 (i) evidence that the club is carrying public liability insurance in an amount and form
4313 satisfactory to the department;
4314 (j) evidence that the club is carrying dramshop insurance coverage of at least
4315 [$500,000] $1,000,000 per occurrence and [$1,000,000] $2,000,000 in the aggregate;
4316 (k) if the applicant is applying for an equity club license or fraternal club license, a
4317 copy of the club's bylaws or house rules, and any amendments to those documents[, which shall
4318 be kept on file with the department at all times];
4319 (l) a signed consent form stating that the club licensee and its management will permit
4320 any authorized representative of the commission, department, or any law enforcement officer
4321 unrestricted right to enter the club license premises;
4322 (m) (i) a statement as to whether the [private club] applicant is seeking to qualify as [a
4323 class A, B, C, or D private club licensee; and]:
4324 (A) an equity club licensee;
4325 (B) a fraternal club licensee;
4326 (C) a dining club licensee; or
4327 (D) a social club licensee; and
4328 (ii) evidence that the [private club] applicant meets the requirements for the
4329 [classification] type of club license described in Subsection (1)(m)(i) for which the [club]
4330 applicant is applying;
4331 (n) in the case of a partnership, corporation, or limited liability company applicant,
4332 proper verification evidencing that the person or persons signing the [private] club license
4333 application are authorized to so act on behalf of the partnership, corporation, or limited liability
4334 company; and

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- 141 - 4335 (o) any other information the commission or department may require.
4336 (2) (a) The commission may refuse to issue a club license to an applicant for an equity
4337 club licensee or fraternal club licensee if the commission determines that any provisions of the
4338 [club's] applicant's bylaws or house rules, or amendments to those documents are not:
4339 (i) reasonable; and
4340 (ii) consistent with:
4341 (A) the declared nature and purpose of the applicant; and
4342 (B) the purposes of this chapter.
4343 (b) [Club] An equity club licensee's or fraternal club licensee's bylaws or house rules
4344 shall include provisions respecting the following:
4345 (i) standards of eligibility for members;
4346 (ii) limitation of members, consistent with the nature and purpose of the [private] club;
4347 (iii) the period for which dues are paid, and the date upon which the period expires;
4348 (iv) provisions for [dropping members] removing a member from the club membership
4349 for the nonpayment of dues or other cause; and
4350 (v) provisions for guests [or visitors, if any, and for the issuance and use of visitor
4351 cards].
4352 (c) An equity club licensee or fraternal club licensee shall keep its bylaws or house
4353 rules, and any amendments to those documents, on file with the department at all times.
4354 (3) (a) [All private club licenses expire] A club license expires on June 30 of each year.
4355 (b) A person desiring to renew that person's [private] club license shall submit by no
4356 later than May 31:
4357 (i) a completed renewal application to the department; and
4358 (ii) a renewal fee [in the following amount:] of $1,600.
4359 [Gross Cost of Liquor in Previous License Year for the Licensee Renewal Fee]
4360 [under $10,000 $1,000]
4361 [equals or exceeds $10,000 but less than $25,000 $1,250]
4362 [equals or exceeds $25,000 but less than $75,000 $1,750]
4363 [equals or exceeds $75,000 $2,250]
4364 (c) Failure to meet the renewal requirements [shall result] results in an automatic
4365 forfeiture of the club license effective on the date the existing club license expires.

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- 142 - 4366 (d) A renewal application shall be in a form as prescribed by the department.
4367 (4) To ensure compliance with Subsection 32A-5-107 [(40)] (26), the commission may
4368 suspend or revoke [any private] a club license if the [private] club licensee does not
4369 immediately notify the department of any change in:
4370 (a) ownership of the club licensee;
4371 (b) for a corporate owner, the:
4372 (i) corporate officers or directors; or
4373 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
4374 corporation; or
4375 (c) for a limited liability company:
4376 (i) managers; or
4377 (ii) members owning at least 20% of the limited liability company.
4378 Section 42. Section 32A-5-103 (Effective 07/01/09) is amended to read:
4379 32A-5-103 (Effective 07/01/09). Qualifications.
4380 (1) (a) The commission may not grant a [private] club license to a person who has been
4381 convicted of:
4382 (i) a felony under a federal or state law;
4383 (ii) a violation of a federal or state law or local ordinance concerning the sale,
4384 manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
4385 (iii) a crime involving moral turpitude; or
4386 (iv) on two or more occasions within the five years before the day on which the license
4387 is granted, driving under the influence of alcohol, a drug, or the combined influence of alcohol
4388 and a drug.
4389 (b) In the case of a partnership, corporation, or limited liability company, the
4390 proscription under Subsection (1)(a) applies if any of the following has been convicted of an
4391 offense described in Subsection (1)(a):
4392 (i) a partner;
4393 (ii) a managing agent;
4394 (iii) a manager;
4395 (iv) an officer;
4396 (v) a director;

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- 143 - 4397 (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
4398 the applicant corporation; or
4399 (vii) a member who owns at least 20% of the applicant limited liability company.
4400 (c) The proscription under Subsection (1)(a) applies if a person employed to act in a
4401 supervisory or managerial capacity for a [private] club has been convicted of an offense
4402 described in Subsection (1)(a).
4403 (2) The commission may immediately suspend or revoke a [private] club license if
4404 after the day on which the [private] club license is granted, a person described in Subsection
4405 (1)(a), (b), or (c):
4406 (a) is found to have been convicted of an offense described in Subsection (1)(a) prior to
4407 the club license being granted; or
4408 (b) on or after the day on which the club license is granted:
4409 (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
4410 (ii) (A) is convicted of driving under the influence of alcohol, a drug, or the combined
4411 influence of alcohol and a drug; and
4412 (B) was convicted of driving under the influence of alcohol, a drug, or the combined
4413 influence of alcohol and a drug within five years before the day on which the person is
4414 convicted of the offense described in Subsection (2)(b)(ii)(A).
4415 (3) The director may take emergency action by immediately suspending the operation
4416 of a [private] club license according to the procedures and requirements of Title 63G, Chapter
4417 4, Administrative Procedures Act, for the period during which the criminal matter is being
4418 adjudicated if a person described in Subsection (1)(a), (b), or (c):
4419 (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
4420 or
4421 (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol, a
4422 drug, or the combined influence of alcohol and a drug; and
4423 (ii) was convicted of driving under the influence of alcohol, a drug, or the combined
4424 influence of alcohol and a drug within five years before the day on which the person is arrested
4425 on a charge described in Subsection (3)(b)(i).
4426 (4) (a) (i) The commission may not grant a [private] club license to a person who has
4427 had any type of license, agency, or permit issued under this title revoked within the last three

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- 144 - 4428 years.
4429 (ii) The commission may not grant a [private] club license to an applicant that is a
4430 partnership, corporation, or limited liability company if a partner, managing agent, manager,
4431 officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
4432 of an applicant corporation, or member who owns at least 20% of an applicant limited liability
4433 company is or was:
4434 (A) a partner or managing agent of a partnership that had any type of license, agency,
4435 or permit issued under this title revoked within the last three years;
4436 (B) a managing agent, officer, director, or a stockholder who holds or held at least 20%
4437 of the total issued and outstanding stock of a corporation that had any type of license, agency,
4438 or permit issued under this title revoked within the last three years; or
4439 (C) a manager or member who owns or owned at least 20% of a limited liability
4440 company that had any type of license, agency, or permit issued under this title revoked within
4441 the last three years.
4442 (b) An applicant that is a partnership, corporation, or limited liability company may not
4443 be granted a [private] club license if any of the following had any type of license, agency, or
4444 permit issued under this title revoked while acting in that person's individual capacity within
4445 the last three years:
4446 (i) a partner or managing agent of the applicant partnership;
4447 (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
4448 total issued and outstanding stock of the applicant corporation; or
4449 (iii) a manager or member who owned at least 20% of the applicant limited liability
4450 company.
4451 (c) A person acting in an individual capacity may not be granted a [private] club
4452 license if that person was:
4453 (i) a partner or managing agent of a partnership that had any type of license, agency, or
4454 permit issued under this title revoked within the last three years;
4455 (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
4456 total issued and outstanding stock of a corporation that had any type of license, agency, or
4457 permit issued under this title revoked within the last three years; or
4458 (iii) a manager or member of a limited liability company who owned at least 20% of

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- 145 - 4459 the limited liability company that had any type of license, agency, or permit issued under this
4460 title revoked within the last three years.
4461 (5) (a) A minor may not be granted a [private] club license.
4462 (b) The commission may not grant a [private] club license to an applicant that is a
4463 partnership, corporation, or limited liability company if any of the following is a minor:
4464 (i) a partner or managing agent of the applicant partnership;
4465 (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
4466 total issued and outstanding stock of the applicant corporation; or
4467 (iii) a manager or member who owns at least 20% of the applicant limited liability
4468 company.
4469 (6) If a person [or entity] to whom a club license [has been issued] is granted under this
4470 chapter no longer possesses the qualifications required by this title for obtaining that license,
4471 the commission may suspend or revoke that license.
4472 (7) The commission may not grant a [private] club license to an applicant who is not
4473 lawfully present in the United States.
4474 Section 43. Section 32A-5-104 is amended to read:
4475 32A-5-104. Commission and department duties before granting licenses.
4476 (1) (a) Before a [private] club license may be granted by the commission, the
4477 department shall conduct an investigation and may hold public hearings for the purpose of
4478 gathering information and making recommendations to the commission as to whether or not a
4479 club license should be granted.
4480 (b) The department shall forward the information and recommendations described in
4481 Subsection (1)(a) to the commission to aid in the commission's determination.
4482 (2) Before [issuing a private] granting a club license, the commission shall:
4483 (a) determine that:
4484 (i) the applicant has complied with all basic qualifications and requirements for making
4485 application for a club license as provided by Sections 32A-5-102 and 32A-5-103 ; and
4486 (ii) the application is complete;
4487 (b) determine [whether the applicant qualifies as a class A, B, C, or D private club
4488 licensee] the type of club license for which the applicant qualifies;
4489 (c) consider the locality within which the proposed [private] club license outlet is

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- 146 - 4490 located including:
4491 (i) physical characteristics such as:
4492 (A) condition of the premises;
4493 (B) square footage; and
4494 (C) parking availability; and
4495 (ii) operational factors such as:
4496 (A) tourist traffic;
4497 (B) proximity to and density of other state stores, package agencies, and licensed
4498 outlets;
4499 (C) demographics;
4500 (D) population to be served; and
4501 (E) the extent of and proximity to any community location;
4502 (d) consider the club license management's ability to manage and operate a [private]
4503 club license, including:
4504 (i) management experience;
4505 (ii) past retail liquor experience; and
4506 (iii) the type of management scheme employed by the [private] club licensee;
4507 (e) consider the nature or type of [private] club [operation] operations of the proposed
4508 [liquor] club licensee, including:
4509 (i) the type of menu items offered and emphasized;
4510 (ii) the hours of operation;
4511 (iii) the seating capacity of the [facility] premises; and
4512 (iv) the gross sales of food items; and
4513 (f) consider any other factor or circumstance the commission considers necessary.
4514 Section 44. Section 32A-5-106 is amended to read:
4515 32A-5-106. Bond.
4516 (1) Each [private] club [liquor] licensee shall post a cash or corporate surety bond in
4517 the penal sum of $10,000 payable to the department, which the club licensee has procured and
4518 must maintain for so long as the club licensee continues to operate as a [private] club [liquor]
4519 licensee.
4520 (2) The bond shall be in a form approved by the attorney general, conditioned upon

Text Box
- 147 - 4521 [the] a club licensee's faithful compliance with this title and the rules of the commission.
4522 (3) (a) If [the] a $10,000 corporate surety bond is canceled due to [the] a club licensee's
4523 negligence, a $300 reinstatement fee may be assessed.
4524 (b) No part of any cash or corporate bond [so] posted under this section may be
4525 withdrawn:
4526 (i) during the period the club license is in effect[,]; or
4527 (ii) while revocation proceedings are pending against the club licensee.
4528 (c) A bond filed by a club licensee may be forfeited if the club license is finally
4529 revoked.
4530 Section 45. Section 32A-5-107 is amended to read:
4531 32A-5-107. Operational restrictions.
4532 A [club] person granted a [private] club license and the employees, management
4533 personnel, and members of [the] an equity club licensee or fraternal club licensee shall comply
4534 with the following conditions and requirements. Failure to comply may result in a suspension
4535 or revocation of the [private] club license or other disciplinary action taken against individual
4536 employees or management personnel.
4537 (1) [A private] An equity club licensee or fraternal club licensee shall comply with the
4538 following:
4539 (a) A club licensee shall have a governing body that:
4540 [(a)] (i) consists of three or more members of the [private] club; and
4541 [(b)] (ii) holds regular meetings to:
4542 [(i)] (A) review membership applications; and
4543 [(ii)] (B) conduct other business as required by the bylaws or house rules of the
4544 [private] club.
4545 [(2) (a) A private] (b) A club licensee may admit an individual as a member only on
4546 written application signed by the applicant, subject to:
4547 (i) the applicant paying an application fee [as required by Subsection (4)]; and
4548 (ii) investigation, vote, and approval of a quorum of the governing body.
4549 [(b) (i) An] (c) A club licensee shall:
4550 (i) record an admission of a member [shall be recorded] in the official minutes of a
4551 regular meeting of the governing body[.]; and

Text Box
- 148 - 4552 (ii) [An application,] whether approved or disapproved, [shall be filed] file an
4553 application as a part of the official records of the [private] club licensee.
4554 [(c) Notwithstanding Subsection (2)(a), a private club, in its discretion, may admit an
4555 applicant and immediately accord the applicant temporary privileges of a member until the
4556 governing body completes its investigation and votes on the application, subject to the
4557 following conditions:]
4558 [(i) the applicant shall:]
4559 [(A) submit a written application; and]
4560 [(B) pay the application fee required by Subsection (4);]
4561 [(ii) the governing body votes on the application at its next meeting, which shall take
4562 place no later than 31 days following the day on which the application is submitted; and]
4563 [(iii) the applicant's temporary membership privileges terminate if the governing body
4564 disapproves the application.]
4565 (d) The spouse of a member of [any class of private] a club licensee has the rights and
4566 privileges of the member:
4567 (i) to the extent permitted by the bylaws or house rules of the [private] club licensee;
4568 and
4569 (ii) except to the extent restricted by this title.
4570 (e) [The] A minor child of a member of [a class A private] a club licensee has the
4571 rights and privileges of the member:
4572 (i) to the extent permitted by the bylaws or house rules of the [private] club licensee;
4573 and
4574 (ii) except to the extent restricted by this title.
4575 [(3) (a) A private] (f) A club licensee shall maintain a current and complete
4576 membership record showing:
4577 (i) the date of application of a proposed member;
4578 (ii) a member's address;
4579 (iii) the date the governing body approved a member's admission;
4580 (iv) the date initiation fees and dues are assessed and paid; and
4581 (v) the serial number of the membership card issued to a member.
4582 [(b) A] (g) A club licensee shall keep a current record [shall be kept] indicating when

Text Box
- 149 - 4583 a member is [dropped] removed as a member or resigns.
4584 [(4) (a) A private] (h) A club licensee shall establish in the [private] club licensee's
4585 bylaws or house rules application fees and membership dues[:].
4586 [(i) as established by commission rules; and]
4587 [(ii) that are collected from all members.]
4588 [(b) An application fee:]
4589 [(i) may not be less than $4;]
4590 [(ii) shall be paid when the applicant applies for membership; and]
4591 [(iii) at the discretion of the private club, may be credited toward membership dues if
4592 the governing body approves the applicant as a member.]
4593 [(5) (a) A private] (i) A club licensee may, in its discretion, allow an individual to be
4594 admitted to or use the [private] club license premises as a guest [only under] subject to the
4595 following conditions:
4596 (i) the individual is allowed to use the club license premises only to the extent
4597 permitted by the club licensee's bylaws or house rules;
4598 [(i) a guest] (ii) the individual must be previously authorized by [one of the following]
4599 a member of the club who agrees to host the individual as a guest into the [private] club[:];
4600 [(A) an active member of the private club; or]
4601 [(B) a holder of a current visitor card;]
4602 [(ii) a guest must be known by the guest's host based on a preexisting bonafide business
4603 or personal relationship with the host before the guest's admittance to the private club;]
4604 [(iii) a guest must be accompanied by the guest's host for the duration of the guest's visit
4605 to the private club;]
4606 [(iv) a guest's host must remain on the private club premises for the duration of the
4607 guest's visit to the private club;]
4608 [(v) a guest's host is responsible for the cost of services extended to the guest;]
4609 [(vi) a guest] (iii) the individual has only those privileges derived from the [guest's]
4610 individual's host for the duration of the [guest's] individual's visit to the [private] club license
4611 premises; and
4612 [(vii) an employee of the private club, while on duty, may not act as a host for a guest;]
4613 [(viii) an employee of the private club, while on duty, may not attempt to locate a

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- 150 - 4614 member or current visitor card holder to serve as a host for a guest with whom the member or
4615 visitor card holder has no acquaintance based on a preexisting bonafide business or personal
4616 relationship prior to the guest's arrival at the private club; and]
4617 [(ix) a private] (iv) a club licensee or an employee of the [private] club licensee may
4618 not enter into an agreement or arrangement with a club member [or holder of a current visitor
4619 card] to indiscriminately host a member of the general public into the [private] club license
4620 premises as a guest.
4621 [(b)] (j) Notwithstanding Subsection [(5)(a), previous authorization is not required]
4622 (1)(i), an individual may be allowed as a guest in a club license premises without a host if:
4623 [(i) the private club licensee is a class B private club; and]
4624 (i) (A) the club licensee is an equity club licensee; and
4625 (B) the individual is a member of an equity club licensee that has reciprocal guest
4626 privileges with the equity club licensee for which the individual is a guest; or
4627 (ii) (A) the club licensee is a fraternal club licensee; and
4628 [(ii) the guest] (B) the individual is a member of the same fraternal organization as the
4629 [private] fraternal club licensee for which the individual is a guest.
4630 [(6) A private club may, in its discretion, issue a visitor card to allow an individual to
4631 enter and use the private club premises on a temporary basis under the following conditions:]
4632 [(a) a visitor card shall be issued for a period not to exceed three weeks;]
4633 [(b) a fee of not less than $4 shall be assessed for a visitor card that is issued;]
4634 [(c) a visitor card may not be issued to a minor;]
4635 [(d) a holder of a visitor card may not host more than seven guests at one time;]
4636 [(e) a visitor card issued shall include:]
4637 [(i) the visitor's full name and signature;]
4638 [(ii) the date the visitor card is issued;]
4639 [(iii) the date the visitor card expires;]
4640 [(iv) the club's name; and]
4641 [(v) the serial number of the visitor card; and]
4642 [(f) (i) the private club shall maintain a current record of the issuance of a visitor card
4643 on the private club premises; and]
4644 [(ii) the record described in Subsection (6)(f)(i) shall:]

Text Box
- 151 - 4645 [(A) be available for inspection by the department; and]
4646 [(B) include:]
4647 [(I) the name of the person to whom the visitor card is issued;]
4648 [(II) the date the visitor card is issued;]
4649 [(III) the date the visitor card expires; and]
4650 [(IV) the serial number of the visitor card.]
4651 [(7) A private] (k) A club licensee may not sell an alcoholic beverage to or allow a
4652 patron to be admitted to or use the [private] club license premises other than:
4653 [(a)] (i) a member; or
4654 (ii) a guest under Subsection (1)(i) or (j).
4655 [(b) a visitor who holds a valid visitor card issued under Subsection (6); or]
4656 [(c) a guest of: (i) a member; or (ii) a holder of a valid visitor card.]
4657 [(8) (a)] (l) A minor may not be[: (i)] a member, officer, director, or trustee of a
4658 [private] club[;] licensee.
4659 [(ii) issued a visitor card;]
4660 [(iii) admitted into, use, or be on the premises of a lounge or bar area, as defined by
4661 commission rule, of a private club except to the extent authorized under Subsection (8)(c)(ii);]
4662 (m) (i) A club licensee shall maintain a minute book that is posted currently by the club
4663 licensee.
4664 (ii) The minute book required by this Subsection (1)(m) shall contain the minutes of a
4665 regular or special meeting of the governing body.
4666 (n) A club licensee shall maintain a membership list.
4667 (o) A club licensee shall maintain a current copy of the club licensee's current bylaws
4668 and current house rules.
4669 (p) Public advertising related to a club licensee by the following shall clearly identify a
4670 club as being "a club for members":
4671 (i) the club licensee;
4672 (ii) an employee or agent of the club licensee; or
4673 (iii) a person under a contract or agreement with the club licensee.
4674 [(iv) admitted into, use, or be on the premises of a class D private club:]
4675 [(A) that operates as a sexually oriented business as defined by local ordinance; or]

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- 152 -

House Floor Amendments 3-11-2009 dd/po 4676

[(B) when a sexually oriented entertainer is performing on the premises; or]
4677 [(v) admitted into, use, or be on the premises of a class D private club except to the
4678 extent authorized under Subsections (8)(b) through (g).]
4679 [(b) Except as provided in Subsection (8)(a)(iv), at the discretion of a class D private
4680 club, a minor may be admitted into, use, or be on the premises of a class D private club under
4681 the following circumstances:]
4682 [(i) during a period when no alcoholic beverages are sold, served, otherwise furnished,
4683 or consumed on the premises, but in no event later than 1 p.m.;]
4684 [(ii) when accompanied at all times by a member or holder of a current visitor card
4685 who is the minor's parent, legal guardian, or spouse; and]
4686 [(iii) the private club has a full kitchen and is licensed by the local jurisdiction as a
4687 food service provider.]
4688 [(c) A class D private club may employ a minor on the premises of the private club if:]
4689 [(i) the parent or legal guardian of the minor owns or operates the class D private club;
4690 or]
4691 [(ii) the minor performs maintenance and cleaning services during the hours when the
4692 private club is not open for business.]
4693 (2) (a) A minor may not be admitted into, use, or be on:
4694 (i) a lounge or bar area, as defined by commission rule, of the premises of:
4695 (A) an equity club licensee;
4696 (B) a fraternal club licensee; or
4697 (C) a dining club licensee; or
4698 (ii) the premises of H. :
4698a (A) a dining club licensee unless accompanied by an individual who is 21 years of age or
4698b older; or
4698c (B) .H a social club licensee, except to the extent provided for under
4699 Subsection (2)(d).
4700 (b) (i) Except as provided in Subsection (2)(b)(ii), a club licensee may not employ a
4701 minor to:
4702 (A) sell, dispense, or handle an alcoholic beverage; or
4703 (B) work in a lounge or bar area of an equity club licensee, fraternal club licensee, or
4704 dining club licensee.
4705 (ii) An equity club licensee or dining club licensee may employ a minor who is at least

4706 16 years of age to enter the sale at a cash register or other sales recording device, except that a

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- 153 - 4707 minor may not work in a lounge or bar area of the club licensee.
4708 (c) A minor may not be employed on the premises of a social club licensee.
4709 (d) (i) [Subject to Subsection (8)(d)(ii), a] A minor who is at least 18 years of age may
4710 be admitted into, use, or be on the premises of a dance or concert hall if:
4711 (A) the dance or concert hall is located:
4712 (I) on the premises of a [class D private] social club licensee; or
4713 (II) on the property that immediately adjoins the premises of and is operated by a [class
4714 D private] social club licensee; and
4715 (B) the social club licensee holds a permit to operate a dance or concert hall that was
4716 granted on or before May 11, 2009:
4717 (I) on the basis of the operational requirements described in Subsection (2)(d)(ii); and
4718 (II) when the social club licensee was licensed as a class D private club.
4719 [(B) the commission issues the class D private club a permit to operate a minor dance
4720 or concert hall based on the criteria described in Subsection (8)(d)(iii).]
4721 [(ii) If the dance or concert hall is located on the premises of a class D private club, a
4722 minor must be properly hosted in accordance with Subsection (5) by:]
4723 [(A) a member; or]
4724 [(B) a holder of a current visitor card.]
4725 [(iii) The commission may issue a minor dance or concert hall permit if:]
4726 (ii) A social club licensee that holds a dance or concert hall permit shall operate in such
4727 a way that:
4728 (A) the [private club's] social club licensee's lounge, bar, [and] or other area for
4729 alcoholic beverage consumption [area] is:
4730 (I) not accessible to a minor;
4731 (II) clearly defined; and
4732 (III) separated from the dance or concert hall area by one or more walls, multiple floor
4733 levels, or other substantial physical barriers;
4734 (B) a bar or dispensing area is not visible to a minor;
4735 (C) consumption of an alcoholic beverage may not occur in:
4736 (I) the dance or concert hall area; or
4737 (II) an area of the [private] social club license premises accessible to a minor;

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- 154 - 4738 (D) the [private] social club licensee maintains sufficient security personnel to prevent
4739 the passing of beverages from the [private club's] social club licensee's lounge, bar, or [an]
4740 other area for alcoholic beverage consumption [area] to:
4741 (I) the dance or concert hall area; or
4742 (II) an area of the [private] social club license premises accessible to a minor;
4743 (E) there are one or more separate entrances, exits, and restroom facilities from the
4744 [private club's] social club licensee's lounge, bar, [and] or other area for alcoholic beverage
4745 consumption [areas] than for:
4746 (I) the dance or concert hall area; or
4747 (II) an area accessible to a minor; and
4748 (F) the [private] social club licensee complies with any other restrictions imposed by
4749 the commission by rule.
4750 [(e)] (iii) A minor under 18 years of age who is accompanied at all times by a parent or
4751 legal guardian [who is a member or holder of a current visitor card] may be admitted into, use,
4752 or be on the premises of a concert hall described in Subsection [(8)(d)(i)] (2)(d)(ii) if:
4753 [(i)] (A) the requirements of Subsection [(8)] (2)(d) are met; and
4754 [(ii)] (B) signage, product, and dispensing equipment containing recognition of an
4755 alcoholic beverage is not visible to the minor.
4756 [(f)] (iv) A minor under 18 years of age but who is 14 years of age or older who is not
4757 accompanied by a parent or legal guardian may be admitted into, use, or be on the premises of
4758 a concert hall described in Subsection [(8)(d)(i)] (2)(d)(ii) if:
4759 [(i)] (A) the requirements of Subsections [(8)(d) and (8)(e)(ii)] (2)(d)(ii) and (iii) are
4760 met; and
4761 [(ii)] (B) there is no alcoholic beverage, sales, service, or consumption on the premises
4762 of the [class D private] social club licensee.
4763 [(g)] (v) The commission may suspend or revoke a [minor] dance or concert permit
4764 issued to a [class D private] social club licensee and suspend or revoke the license of the [class
4765 D private] social club licensee if:
4766 [(i)] (A) the [private] social club licensee fails to comply with the restrictions in this
4767 Subsection [(8)(d), (e), or (f)] (2)(d);
4768 [(ii)] (B) the [private] social club licensee sells, serves, or otherwise furnishes an

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- 155 - 4769 alcoholic beverage to a minor;
4770 [(iii)] (C) the [private] social club licensee or a supervisory or managerial level
4771 employee of the [private] social club licensee is convicted under Title 58, Chapter 37, Utah
4772 Controlled Substances Act, on the basis of an activity that occurs on:
4773 [(A)] (I) the licensed premises; or
4774 [(B)] (II) the dance or concert hall that is located on property that immediately adjoins
4775 the premises of and is operated by the [class D private] social club licensee;
4776 [(iv)] (D) there are three or more convictions of patrons of the [private] social club
4777 licensee under Title 58, Chapter 37, Utah Controlled Substances Act, [based on] on the basis of
4778 activities that occur on:
4779 [(A)] (I) the licensed premises; or
4780 [(B)] (II) the dance or concert hall that is located on property that immediately adjoins
4781 the premises of and is operated by the [class D private] social club licensee;
4782 [(v)] (E) there is more than one conviction:
4783 [(A)] (I) of:
4784 [(I)] (Aa) the [private] social club licensee;
4785 [(II)] (Bb) an employee of the [private] social club licensee;
4786 [(III)] (Cc) an entertainer contracted by the [private] social club licensee; or
4787 [(IV)] (Dd) a patron of the [private] social club licensee; and
4788 [(B)] (II) made on the basis of a lewd act or lewd entertainment prohibited by this title
4789 that occurs on:
4790 [(I)] (A) the licensed premises; or
4791 [(II)] (B) the dance or concert hall that is located on property that immediately adjoins
4792 the premises of and is operated by the [class D private] social club licensee; or
4793 [(vi)] (F) the commission finds acts or conduct contrary to the public welfare and
4794 morals involving lewd acts or lewd entertainment prohibited by this title that occurs on:
4795 [(A)] (I) the licensed premises; or
4796 [(B)] (II) the dance or concert hall that is located on property that immediately adjoins
4797 the premises of and is operated by the [class D private] social club licensee.
4798 [(h)] (vi) Nothing in this Subsection [(8)] (2) prohibits a [class D private] social club
4799 licensee from selling, serving, or otherwise furnishing an alcoholic beverage in a dance or

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- 156 - 4800 concert area located on the [private] social club license premises on days and times when the
4801 [private] social club licensee does not allow a minor into those areas.
4802 [(i)] (e) Nothing in [Subsections (8)(a) through (g)] this Subsection (2) precludes a
4803 local authority from being more restrictive of a minor's admittance to, use of, or presence on
4804 the premises of a [private] club licensee.
4805 [(9)] (3) (a) A [private] club license shall maintain an expense ledger or record showing
4806 in detail [all]:
4807 (i) quarterly expenditures separated by payments for:
4808 [(i)] (A) malt or brewed beverages;
4809 [(ii)] (B) liquor;
4810 [(iii)] (C) food;
4811 [(iv) detailed payroll;]
4812 [(v) entertainment;]
4813 [(vi) rent;]
4814 [(vii) utilities;]
4815 [(viii) supplies; and]
4816 [(ix) other expenditures.]
4817 (D) set-ups; and
4818 (E) any other item required by the department; and
4819 (ii) sales made separately for:
4820 (A) malt or brewed beverages;
4821 (B) liquor;
4822 (C) food;
4823 (D) set-ups; and
4824 (E) any other item required by the department.
4825 (b) A [private] club licensee shall keep a record required by this Subsection [(9)] (3):
4826 (i) in a form approved by the department; and
4827 [(ii) balanced each month.]
4828 (ii) current for each three-month period.
4829 (c) An expenditure of a club licensee shall be supported by:
4830 (i) a delivery ticket;

Text Box
- 157 - 4831 (ii) an invoice;
4832 (iii) a receipted bill;
4833 (iv) a canceled check;
4834 (v) a petty cash voucher; or
4835 (vi) other sustaining datum or memorandum.
4836 [(d) An invoice or receipted bill for the current calendar or fiscal year documenting a
4837 purchase made by the private club shall be maintained.]
4838 [(10) (a) A private club shall maintain a minute book that is posted currently by the
4839 private club.]
4840 [(b) The minute book required by this Subsection (10) shall contain the minutes of a
4841 regular or special meeting of the governing body.]
4842 [(c) A private club shall maintain a membership list.]
4843 [(11) (a) A private club shall maintain a current copy of the private club's current
4844 bylaws and current house rules.]
4845 [(b) A change in the bylaws or house rules:]
4846 [(i) is not effective unless submitted to the department within ten days after adoption;
4847 and]
4848 [(ii) becomes effective 15 days after received by the department unless rejected by the
4849 department before the expiration of the 15-day period.]
4850 [(12) A private club] (d) In addition to a ledger or record required by Subsection (3)(a),
4851 a club licensee shall maintain accounting and other records and documents as the department
4852 may require.
4853 [(13)] (e) A [private] club licensee or person acting for the [private] club licensee, who
4854 knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of
4855 account or other document of the [private] club licensee required to be made, maintained, or
4856 preserved by this title or the rules of the commission for the purpose of deceiving the
4857 commission, the department, or an official or employee of the commission or department, is
4858 subject to:
4859 [(a)] (i) the suspension or revocation of the [private club's] club license; and
4860 [(b)] (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
4861 [(14) (a)] (f) A [private] club licensee shall maintain and keep a record required by this

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- 158 - 4862 section and a book, record, receipt, or disbursement maintained or used by the club licensee, as
4863 the department requires, for a minimum period of three years.
4864 [(b)] (g) A record, book, receipt, or disbursement is subject to inspection by an
4865 authorized representative of the commission and the department.
4866 [(c)] (h) A [private] club licensee shall allow the department, through an auditor or
4867 examiner of the department, to audit the records of the [private] club licensee at times the
4868 department considers advisable.
4869 [(d)] (i) The department shall audit the records of the [private] club licensee at least
4870 once annually.
4871 [(15)] (4) (a) A [private] club licensee shall own or lease premises suitable for the
4872 [private club's] club licensee's activities.
4873 [(16) (a)] (b) A [private] club licensee may not maintain [facilities] premises in a
4874 manner that barricades or conceals the [private] club licensee's operation.
4875 [(b)] (c) A member of the commission, authorized department personnel, or a peace
4876 officer shall, upon presentation of credentials, be admitted immediately to the [private] club
4877 license premises and permitted without hindrance or delay to inspect completely the entire
4878 [private] club license premises and the books and records of the [private] club licensee, at any
4879 time during which the [private] club licensee is open for the transaction of business to its
4880 members.
4881 [(17) Public advertising related to a private club licensee by the following shall clearly
4882 identify a private club as being "a private club for members":]
4883 [(a) the private club licensee;]
4884 [(b) an employee or agent of the private club licensee; or]
4885 [(c) a person under a contract or agreement with the private club licensee.]
4886 [(18) A private] (5) A club licensee must have food available at all times when an
4887 alcoholic beverage is sold, served, or consumed on the premises.
4888 [(19)] (6) (a) [Liquor may not be purchased by a private] A club licensee may not
4889 purchase liquor except from a state store or package agency.
4890 (b) Liquor purchased from a state store or package agency may be transported by the
4891 [private] club licensee from the place of purchase to the licensed premises.
4892 (c) Payment for liquor shall be made in accordance with rules established by the

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- 159 - 4893 commission.
4894 [(20)] (7) A [private] club licensee may sell or provide a primary spirituous liquor only
4895 in a quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated metered
4896 dispensing system approved by the department in accordance with commission rules adopted
4897 under this title, except that:
4898 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
4899 system if used as a secondary flavoring ingredient in a beverage subject to the following
4900 restrictions:
4901 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
4902 a primary spirituous liquor;
4903 (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
4904 (iii) the [private] club licensee shall designate a location where flavorings are stored on
4905 the floor plan provided to the department; and
4906 (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
4907 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
4908 system if used:
4909 (i) as a flavoring on a dessert; and
4910 (ii) in the preparation of a flaming food dish, drink, or dessert;
4911 (c) a [private] club licensee patron may have no more than 2.5 ounces of spirituous
4912 liquor at a time before the [private] club licensee patron[.]; and
4913 (d) a [private] club licensee patron may have no more than two spirituous liquor drinks
4914 at a time before the [private] club licensee patron, except that a [private] club licensee patron
4915 may not have two spirituous liquor drinks before the [private] club licensee patron if one of the
4916 spirituous liquor drinks consists only of the primary spirituous liquor for the other spirituous
4917 liquor drink.
4918 [(21)] (8) (a) (i) Wine may be sold and served by the glass or an individual portion not
4919 to exceed five ounces per glass or individual portion.
4920 (ii) An individual portion may be served to a patron in more than one glass as long as
4921 the total amount of wine does not exceed five ounces.
4922 (iii) An individual portion of wine is considered to be one alcoholic beverage under
4923 Subsection [(25)] (12)(c).

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- 160 - 4924 (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
4925 fixed by the commission to a table of four or more persons.
4926 (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
4927 fixed by the commission to a table of less than four persons.
4928 (c) A wine service may be performed and a service charge assessed by the [private]
4929 club licensee as authorized by commission rule for wine purchased at the [private] club license
4930 premises.
4931 [(22)] (9) (a) Heavy beer may be served in an original container not exceeding one liter
4932 at a price fixed by the commission.
4933 (b) A flavored malt beverage may be served in an original container not exceeding one
4934 liter at a price fixed by the commission.
4935 (c) A service charge may be assessed by the [private] club licensee for heavy beer or a
4936 flavored malt beverage purchased at the [private] club license premises.
4937 [(23)] (10) (a) (i) Subject to Subsection [(23)] (10)(a)(ii), a [private] club licensee may
4938 sell beer for on-premise consumption:
4939 (A) in an open container; and
4940 (B) on draft.
4941 (ii) Beer sold pursuant to Subsection [(23)] (10)(a)(i) shall be in a size of container that
4942 does not exceed two liters, except that beer may not be sold to an individual patron in a size of
4943 container that exceeds one liter.
4944 (b) (i) A [private] club licensee that sells beer pursuant to Subsection [(23)] (10)(a):
4945 (A) may do so without obtaining a separate on-premise beer retailer license from the
4946 commission; and
4947 (B) shall comply with all appropriate operational restrictions under Chapter 10, Beer
4948 Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
4949 inconsistent with or less restrictive than the operational restrictions under this chapter.
4950 (ii) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
4951 Licenses, required by Subsection [(23)] (10)(b)(i) may result in a suspension or revocation of
4952 the [private club's] club licensee's:
4953 (A) state liquor license; and
4954 (B) alcoholic beverage license issued by the local authority.

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- 161 - 4955 [(24)] (11) An alcoholic beverage may not be stored, served, or sold in a place other
4956 than as designated in the [private] club licensee's application, unless the [private] club licensee
4957 first applies for and receives approval from the department for a change of location within the
4958 [private] club license.
4959 [(25)] (12) (a) A patron may only make an alcoholic beverage purchase in the [private]
4960 club license premises from and be served by a person employed, designated, and trained by the
4961 [private] club licensee to sell, dispense, and serve an alcoholic beverage.
4962 (b) Notwithstanding Subsection [(25)] (12)(a), a patron who purchases bottled wine
4963 from an employee of the [private] club licensee or carries bottled wine onto the premises of the
4964 [private] club licensee pursuant to Subsection [(31)] (18) may thereafter serve wine from the
4965 bottle to the patron or others at the patron's table.
4966 (c) A [private] club licensee patron may have no more than two alcoholic beverages of
4967 any kind at a time before the [private] club licensee patron, subject to the limitation of
4968 Subsection [(20)] (7)(d).
4969 [(26)] (13) The liquor storage area shall remain locked at all times other than those
4970 hours and days when liquor sales and service are authorized by law.
4971 [(27)] (14) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished
4972 at a [private] club license premises on any day after 1 a.m. or before 10 a.m.
4973 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
4974 Licenses, for on-premise beer licenses.
4975 (c) (i) Notwithstanding Subsections [(27)] (14)(a) and (b), a [private] club license
4976 premises shall remain open for one hour after the [private] club licensee ceases the sale and
4977 service of an alcoholic beverage during which time a patron of the [private] club licensee may
4978 finish consuming:
4979 (A) a single drink containing spirituous liquor;
4980 (B) a single serving of wine not exceeding five ounces;
4981 (C) a single serving of heavy beer;
4982 (D) a single serving of beer not exceeding 26 ounces; or
4983 (E) a single serving of a flavored malt beverage.
4984 (ii) A [private] club licensee is not required to remain open:
4985 (A) after all patrons have vacated the premises; or

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- 162 - 4986 (B) during an emergency.
4987 (d) Between the hours of 2 a.m. and 10 a.m. on any day a [private] club licensee may
4988 not allow a patron to remain on the premises of the [private] club licensee to consume an
4989 alcoholic beverage on the premises.
4990 [(28)] (15) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
4991 (a) minor;
4992 (b) person actually, apparently, or obviously intoxicated;
4993 (c) known habitual drunkard; or
4994 (d) known interdicted person.
4995 [(29)] (16) (a) (i) Liquor may be sold only at a price fixed by the commission.
4996 (ii) Liquor may not be sold at a discount price on any date or at any time.
4997 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
4998 beverage to the [private] club licensee.
4999 (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
5000 over consumption or intoxication.
5001 (d) The price of a single serving of a primary spirituous liquor shall be the same
5002 whether served as a single drink or in conjunction with another alcoholic beverage.
5003 (e) An alcoholic beverage may not be sold at a special or reduced price for only certain
5004 hours of the [private club's] club licensee's business day such as a "happy hour."
5005 (f) More than one alcoholic beverage may not be sold or served for the price of a single
5006 alcoholic beverage.
5007 (g) An indefinite or unlimited number of alcoholic beverages may not be sold or served
5008 during a set period for a fixed price.
5009 (h) A [private] club licensee may not engage in a promotion involving or offering free
5010 alcoholic beverages to patrons of the [private] club licensee.
5011 [(30)] (17) An alcoholic beverage may not be purchased for a patron of the [private]
5012 club licensee by:
5013 (a) the [private] club licensee; or
5014 (b) an employee or agent of the [private] club licensee.
5015 [(31)] (18) (a) A person may not bring onto the premises of a [private] club licensee an
5016 alcoholic beverage for on-premise consumption, except a person may bring, subject to the

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- 163 - 5017 discretion of the club licensee, bottled wine onto the premises of a [private] club licensee for
5018 on-premise consumption.
5019 (b) Except bottled wine under Subsection [(31)] (18)(a), a [private] club licensee or an
5020 officer, manager, employee, or agent of a [private] club licensee may not allow:
5021 (i) a person to bring onto the [private] club license premises an alcoholic beverage for
5022 consumption on the [private] club license premises; or
5023 (ii) consumption of an alcoholic beverage described in Subsection [(31)] (18)(b)(i) on
5024 the premises of the [private] club licensee.
5025 (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
5026 or other representative of the [private] club licensee upon entering the [private] club license
5027 premises.
5028 (d) A wine service may be performed and a service charge assessed by the [private]
5029 club licensee as authorized by commission rule for wine carried in by a patron.
5030 [(32)] (19) (a) Except as provided in Subsection [(32)] (19)(b), a [private] club licensee
5031 or an employee of the [private] club licensee may not permit a patron of the [private] club
5032 licensee to carry from the [private] club license premises an open container that:
5033 (i) is used primarily for drinking purposes; and
5034 (ii) contains an alcoholic beverage.
5035 (b) A patron may remove the unconsumed contents of a bottle of wine if before
5036 removal, the bottle is recorked or recapped.
5037 [(33) (a) A minor may not be employed by a class A, B, or C private club licensee to
5038 sell, dispense, or handle an alcoholic beverage.]
5039 [(b) Notwithstanding Subsection (33)(a), a minor who is at least 16 years of age may
5040 be employed by a class A or C private club licensee to enter the sale at a cash register or other
5041 sales recording device.]
5042 [(c) Except to the extent authorized in Subsection (8)(c), a minor may not be employed
5043 by or be on the premises of a class D private club.]
5044 [(d) A minor may not be employed to work in a lounge or bar area of a class A, B, or C
5045 private club licensee.]
5046 [(34)] (20) An employee of a [private] club licensee, while on duty, may not:
5047 (a) consume an alcoholic beverage; or

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- 164 - 5048 (b) be intoxicated.
5049 [(35)] (21) A [private] club licensee shall have available on the premises for a patron to
5050 review at the time that the [customer] patron requests it, a written alcoholic beverage price list
5051 or a menu containing the price of an alcoholic beverage sold or served by the [private] club
5052 licensee including:
5053 (a) a set-up charge;
5054 (b) a service charge; or
5055 (c) a chilling fee.
5056 [(36)] (22) A [private] club licensee shall display in a prominent place in the [private]
5057 club license premises:
5058 (a) the [private] club license that is issued by the department;
5059 (b) a list of the types and brand names of liquor being served through [its] the club
5060 licensee's calibrated metered dispensing system; and
5061 (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
5062 drugs is a serious crime that is prosecuted aggressively in Utah."
5063 [(37)] (23) A [private] club licensee may not on the premises of the [private] club
5064 licensee:
5065 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
5066 Chapter 10, Part 11, Gambling;
5067 (b) have any video gaming device, as defined and proscribed in Title 76, Chapter 10,
5068 Part 11, Gambling; or
5069 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
5070 the risking of something of value for a return or for an outcome when the return or outcome is
5071 based upon an element of chance, excluding the playing of an amusement device that confers
5072 only an immediate and unrecorded right of replay not exchangeable for value.
5073 [(38)] (24) (a) A [private] club licensee may not close or cease operation for a period
5074 longer than 240 hours, unless:
5075 (i) the [private] club licensee notifies the department in writing at least seven days
5076 before the day on which the [private] club licensee closes or ceases operation; and
5077 (ii) the closure or cessation of operation is first approved by the department.
5078 (b) Notwithstanding Subsection [(38)] (24)(a), in the case of emergency closure, the

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- 165 - 5079 [private] club licensee shall immediately notify the department by telephone.
5080 (c) (i) The department may authorize a closure or cessation of operation for a period
5081 not to exceed 60 days.
5082 (ii) The department may extend the initial period an additional 30 days upon:
5083 (A) written request of the [private] club licensee; and
5084 (B) a showing of good cause.
5085 (iii) A closure or cessation of operation may not exceed a total of 90 days without
5086 commission approval.
5087 (d) The notice required by Subsection [(38)] (24)(a) shall include:
5088 (i) the dates of closure or cessation of operation;
5089 (ii) the reason for the closure or cessation of operation; and
5090 (iii) the date on which the [private] club licensee will reopen or resume operation.
5091 (e) Failure of the [private] club licensee to provide notice and to obtain department
5092 authorization before closure or cessation of operation results in an automatic forfeiture of:
5093 (i) the [private] club license; and
5094 (ii) the unused portion of the [private] club license fee for the remainder of the license
5095 year effective immediately.
5096 (f) Failure of the [private] club licensee to reopen or resume operation by the approved
5097 date results in an automatic forfeiture of:
5098 (i) the [private] club license; and
5099 (ii) the unused portion of the [private] club license fee for the remainder of the license
5100 year.
5101 [(39)] (25) A [private] club license may not be transferred from one location to another
5102 [person] location, without prior written approval of the commission.
5103 [(40)] (26) (a) A [private] club licensee, may not sell, transfer, assign, exchange, barter,
5104 give, or attempt in any way to dispose of the [private] club license to another person, whether
5105 for monetary gain or not.
5106 (b) A [private] club license has no monetary value for the purpose of any type of
5107 disposition.
5108 (27) Subject to Subsections (25) and (26), a club licensee may not temporarily rent or
5109 otherwise temporarily lease its premises to a person unless:

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- 166 - 5110 (a) the person to whom the club licensee rents or leases the premises agrees in writing
5111 to comply with this section as if the person is the club licensee, except for a requirement related
5112 to maintaining a book, document, or similar record; and
5113 (b) the club licensee takes reasonable steps to ensure that the person complies with this
5114 section as provided in Subsection (26)(a).
5115 (28) A dining club licensee or social club licensee shall comply with Section
5116 32A-1-304.5 .
5117 [(41)] (29) A [private] club licensee or an employee of the [private] club licensee may
5118 not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
5119 Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
5120 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
5121 58-37-2 ; or
5122 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
5123 Section 58-37a-3 .
5124 Section 46. Section 32A-5-109 is enacted to read:
5125 32A-5-109. Transition in types of clubs.
5126 (1) (a) If a private club licensee is a class C private club licensee as of June 30, 2009, it
5127 renews its license in accordance with Section 32A-5-102 , and it continues to meet the
5128 qualifications of a class C private club licensee:
5129 (i) the class C private club licensee shall pay a renewal fee of $1,600; and
5130 (ii) effective July 1, 2009, the class C private club licensee is automatically converted
5131 to a dining club licensee.
5132 (b) If a private club licensee is a class D private club licensee as of June 30, 2009, it
5133 renews it license in accordance with Section 32A-5-102 , and it continues to meet the
5134 qualifications of a class D private club licensee:
5135 (i) the class D private club licensee shall pay a renewal fee of $1,600; and
5136 (ii) effective July 1, 2009, the class D private club licensee is automatically converted
5137 to a social club licensee.
5138 (c) Notwithstanding Subsection (1)(a) or (b), if at the time of renewal a class C private
5139 club licensee or class D private club licensee requests to convert effective July 1, 2009, to a
5140 different type of club license than that provided in Subsection (1)(a) or (b), the commission

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- 167 - 5141 may approve a change in the type of club license in accordance with rules made by the
5142 commission.
5143 (2) A conversion under this section does not require a redetermination of applicable
5144 proximity requirements.
5145 Section 47. Section 32A-9-103 is amended to read:
5146 32A-9-103. Qualifications.
5147 (1) (a) The commission may not grant a warehousing license to any person who has
5148 been convicted of:
5149 (i) a felony under any federal or state law;
5150 (ii) any federal or state law or local ordinance concerning the sale, manufacture,
5151 distribution, warehousing, adulteration, or transportation of alcoholic beverages;
5152 (iii) any crime involving moral turpitude; or
5153 (iv) on two or more occasions within the five years before the day on which the license
5154 is granted, driving under the influence of alcohol, any drug, or the combined influence of
5155 alcohol and any drug.
5156 (b) In the case of a partnership, corporation, or limited liability company the
5157 proscription under Subsection (1)(a) applies if any of the following has been convicted of any
5158 offense described in Subsection (1)(a):
5159 (i) a partner;
5160 (ii) a managing agent;
5161 (iii) a manager;
5162 (iv) an officer;
5163 (v) a director;
5164 (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
5165 the applicant corporation; or
5166 (vii) a member who owns at least 20% of the applicant limited liability company.
5167 (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
5168 supervisory or managerial capacity for the warehouse has been convicted of any offense
5169 described in Subsection (1)(a).
5170 (2) The commission may immediately suspend or revoke a warehousing license if after
5171 the day on which the warehousing license is granted, a person described in Subsection (1)(a),

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- 168 - 5172 (b), or (c):
5173 (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
5174 to the license being granted; or
5175 (b) on or after the day on which the license is granted:
5176 (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
5177 (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the
5178 combined influence of alcohol and any drug; and
5179 (B) was convicted of driving under the influence of alcohol, any drug, or the combined
5180 influence of alcohol and any drug within five years before the day on which the person is
5181 convicted of the offense described in Subsection (2)(b)(ii)(A).
5182 (3) The director may take emergency action by immediately suspending the operation
5183 of the warehousing license according to the procedures and requirements of Title 63G, Chapter
5184 4, Administrative Procedures Act, for the period during which the criminal matter is being
5185 adjudicated if a person described in Subsection (1)(a), (b), or (c):
5186 (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
5187 or
5188 (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
5189 any drug, or the combined influence of alcohol and any drug; and
5190 (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
5191 influence of alcohol and any drug within five years before the day on which the person is
5192 arrested on a charge described in Subsection (3)(b)(i).
5193 (4) (a) (i) The commission may not grant a warehousing license to any person who has
5194 had any type of license, agency, or permit issued under this title revoked within the last three
5195 years.
5196 (ii) The commission may not grant a warehousing license to an applicant that is a
5197 partnership, corporation, or limited liability company if any partner, managing agent, manager,
5198 officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
5199 of an applicant corporation, or member who owns at least 20% of an applicant limited liability
5200 company is or was:
5201 (A) a partner or managing agent of any partnership that had any type of license, agency,
5202 or permit issued under this title revoked within the last three years;

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- 169 - 5203 (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
5204 of the total issued and outstanding stock of any corporation that had any type of license,
5205 agency, or permit issued under this title revoked within the last three years; or
5206 (C) a manager or member who owns or owned at least 20% of any limited liability
5207 company that had any type of license, agency, or permit issued under this title revoked within
5208 the last three years.
5209 (b) An applicant that is a partnership, corporation, or limited liability company may not
5210 be granted a warehousing license if any of the following had any type of license, agency, or
5211 permit issued under this title revoked while acting in that person's individual capacity within
5212 the last three years:
5213 (i) any partner or managing agent of the applicant partnership;
5214 (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
5215 total issued and outstanding stock of the applicant corporation; or
5216 (iii) any manager or member who owns at least 20% of the applicant limited liability
5217 company.
5218 (c) A person acting in an individual capacity may not be granted a warehousing license
5219 if that person was:
5220 (i) a partner or managing agent of a partnership that had any type of license, agency, or
5221 permit issued under this title revoked within the last three years;
5222 (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
5223 total issued and outstanding stock of a corporation that had any type of license, agency, or
5224 permit issued under this title revoked within the last three years; or
5225 (iii) any manager or member who owned at least 20% of a limited liability company
5226 that had any type of license, agency, or permit issued under this title revoked within the last
5227 three years.
5228 (5) (a) A minor may not be:
5229 (i) granted a warehousing license; or
5230 (ii) employed by a warehouse to handle liquor.
5231 (b) The commission may not grant a warehousing license to an applicant that is a
5232 partnership, corporation, or limited liability company if any of the following is a minor:
5233 (i) a partner or managing agent of the applicant partnership;

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- 170 - 5234 (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
5235 total issued and outstanding stock of the applicant corporation; or
5236 (iii) a manager or member who owns at least 20% of the applicant limited liability
5237 company.
5238 (6) A person, through any officer, director, representative, agent, or employee, or
5239 otherwise, either directly or indirectly, may not hold at the same time both a warehousing
5240 license and any other kind of license, agency, or permit issued under [Title 32A,] Chapter 3, 4,
5241 4a, 5, 6, or 7, or Chapter 10, Part 2.
5242 (7) If any person to whom a license [has been issued] is granted under this chapter no
5243 longer possesses the qualifications required by this title for obtaining that license, the
5244 commission may suspend or revoke that license.
5245 Section 48. Section 32A-10-201 is amended to read:
5246 32A-10-201. Commission's power to grant licenses -- Limitations.
5247 (1) Before an establishment may sell beer at retail for on-premise consumption, it shall
5248 first obtain:
5249 (a) an on-premise beer retailer license from the commission as provided in this part;
5250 and
5251 (b) (i) a license issued by the local authority, as provided in Section 32A-10-101 , to
5252 sell beer at retail for on-premise consumption; or
5253 (ii) other written consent of the local authority to sell beer at retail for on-premise
5254 consumption.
5255 (2) (a) Subject to the requirements of this section and Subsection 32A-4a-201 (2), the
5256 commission may [issue] grant on-premise beer retailer licenses for the purpose of establishing
5257 on-premise beer retailer outlets at places and in numbers as it considers proper for the storage,
5258 sale, and consumption of beer on premises operated as on-premise beer retailer outlets.
5259 (b) Notwithstanding Subsection (2)(a), the total number of on-premise beer retailer
5260 licenses that are taverns may not at any time aggregate more than that number determined by
5261 dividing the population of the state by 30,500.
5262 (c) For purposes of this Subsection (2), the population of the state shall be determined
5263 by:
5264 (i) the most recent United States decennial special census; or

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- 171 - 5265 (ii) another population determination made by the United States or state governments.
5266 (d) (i) The commission may issue seasonal licenses for taverns established in areas the
5267 commission considers necessary.
5268 (ii) A seasonal license for taverns shall be for a period of six consecutive months.
5269 (iii) An on-premise beer retailer license for a tavern issued for operation during a
5270 summer time period is known as a "Seasonal A" on-premise beer retailer license for a tavern.
5271 The period of operation for a "Seasonal A" on-premise beer retailer license for a tavern shall:
5272 (A) begin on May 1; and
5273 (B) end on October 31.
5274 (iv) An on-premise beer retailer license for a tavern [issued] granted for operation
5275 during a winter time period is known as a "Seasonal B" on-premise beer retailer license for a
5276 tavern. The period of operation for a "Seasonal B" on-premise beer retailer license for a tavern
5277 shall:
5278 (A) begin on November 1; and
5279 (B) end on April 30.
5280 (v) In determining the number of tavern licenses that the commission may [issue] grant
5281 under this section:
5282 (A) a seasonal on-premise beer retailer license for a tavern is counted as [1/2] one-half
5283 of one on-premise beer retailer license for a tavern; and
5284 (B) each "Seasonal A" on-premise beer retailer license for a tavern shall be paired with
5285 a "Seasonal B" on-premise beer retailer license for a tavern.
5286 (3) (a) Except as provided in Subsection (3)(b), (c), or (d), the premises of an
5287 on-premise beer retailer license may not be established:
5288 (i) within 600 feet of a community location, as measured by the method in Subsection
5289 (3)(e); or
5290 (ii) within 200 feet of a community location, measured in a straight line from the
5291 nearest entrance of the proposed outlet to the nearest property boundary of the community
5292 location.
5293 (b) With respect to the establishment of an on-premise beer retailer license, the
5294 commission may authorize a variance to reduce the proximity requirement of Subsection
5295 (3)(a)(i) if:

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- 172 - 5296 (i) the local authority grants its written consent to the variance;
5297 (ii) the commission finds that alternative locations for establishing an on-premise beer
5298 retailer license in the community are limited;
5299 (iii) a public hearing is held in the city, town, or county, and where practical, in the
5300 neighborhood concerned;
5301 (iv) after giving full consideration to all of the attending circumstances and the policies
5302 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
5303 license would not be detrimental to the public health, peace, safety, and welfare of the
5304 community; and
5305 (v) (A) the community location governing authority gives its written consent to the
5306 variance; or
5307 (B) when written consent is not given by the community location governing authority,
5308 the commission finds that the applicant has established that:
5309 (I) there is substantial unmet public demand to consume alcohol in a public setting
5310 within the geographic boundary of the local authority in which the on-premise beer retailer
5311 licensee is to be located;
5312 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
5313 described in Subsection (3)(b)(v)(B)(I) other than through the establishment of an on-premise
5314 beer retailer license; and
5315 (III) there is no reasonably viable alternative location within the geographic boundary
5316 of the local authority in which the on-premise beer retailer licensee is to be located for
5317 establishing an on-premise beer retailer license to satisfy the unmet demand described in
5318 Subsection (3)(b)(v)(B)(I).
5319 (c) With respect to the establishment of an on-premise beer retailer license, the
5320 commission may authorize a variance that reduces the proximity requirement of Subsection
5321 (3)(a)(ii) if:
5322 (i) the community location at issue is:
5323 (A) a public library; or
5324 (B) a public park;
5325 (ii) the local authority grants its written consent to the variance;
5326 (iii) the commission finds that alternative locations for establishing an on-premise beer

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- 173 - 5327 retailer license in the community are limited;
5328 (iv) a public hearing is held in the city, town, or county, and where practical in the
5329 neighborhood concerned;
5330 (v) after giving full consideration to all of the attending circumstances and the policies
5331 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
5332 on-premise beer retailer license would not be detrimental to the public health, peace, safety,
5333 and welfare of the community; and
5334 (vi) (A) the community location governing authority gives its written consent to the
5335 variance; or
5336 (B) when written consent is not given by the community location governing authority,
5337 the commission finds that the applicant has established that:
5338 (I) there is substantial unmet public demand to consume alcohol in a public setting
5339 within the geographic boundary of the local authority in which the on-premise beer retailer
5340 licensee is to be located;
5341 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
5342 described in Subsection (3)(c)(vi)(B)(I) other than through the establishment of an on-premise
5343 beer retailer license; and
5344 (III) there is no reasonably viable alternative location within the geographic boundary
5345 of the local authority in which the on-premise beer retailer licensee is to be located for
5346 establishing an on-premise beer retailer license to satisfy the unmet demand described in
5347 Subsection (3)(c)(vi)(B)(I).
5348 (d) (i) With respect to an on-premise beer retailer license [issued] granted by the
5349 commission before July 1, 1991, to an establishment that undergoes a change in ownership
5350 after that date, the commission may waive or vary the proximity requirements of this
5351 Subsection (3) in considering whether to grant an on-premise retailer beer license to the new
5352 owner.
5353 (ii) With respect to the premises of an on-premise beer retailer license [issued] granted
5354 by the commission that undergoes a change of ownership, the commission may waive or vary
5355 the proximity requirements of Subsection (3)(a) in considering whether to grant an on-premise
5356 beer retailer license to the new owner of the premises if:
5357 (A) (I) the premises previously received a variance from the proximity requirement of

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- 174 - 5358 Subsection (3)(a)(i); or
5359 (II) the premises received a variance from the proximity requirement of Subsection
5360 (3)(a)(ii) on or before May 4, 2008; or
5361 (B) a variance from proximity requirements was otherwise allowed under this title.
5362 (e) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
5363 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
5364 property boundary of the community location.
5365 (4) (a) Nothing in this section prevents the commission from considering the proximity
5366 of any educational, religious, and recreational facility, or any other relevant factor in reaching a
5367 decision on a proposed location.
5368 (b) For purposes of this Subsection (4), "educational facility" includes:
5369 (i) a nursery school;
5370 (ii) an infant day care center; and
5371 (iii) a trade and technical school.
5372 Section 49. Section 32A-10-202 is amended to read:
5373 32A-10-202. Application and renewal requirements.
5374 (1) A person seeking an on-premise beer retailer license under this chapter shall file a
5375 written application with the department, in a form prescribed by the department. The
5376 application shall be accompanied by:
5377 (a) a nonrefundable $250 application fee;
5378 (b) an initial license fee that is refundable if a license is not granted in the following
5379 amount:
5380 (i) if the on-premise beer retailer licensee does not operate as a tavern, the initial
5381 license fee is $150; or
5382 (ii) if the on-premise beer retailer licensee operates as a tavern, the initial license fee is
5383 $1,250;
5384 (c) written consent of the local authority or a license to sell beer at retail for on-premise
5385 consumption granted by the local authority under Section 32A-10-101 ;
5386 (d) a copy of the applicant's current business license;
5387 (e) evidence of proximity to any community location, with proximity requirements
5388 being governed by Section 32A-10-201 ;

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- 175 - 5389 (f) a bond as specified by Section 32A-10-205 ;
5390 (g) a floor plan of the premises, including consumption areas and the area where the
5391 applicant proposes to keep, store, and sell beer;
5392 (h) evidence that the on-premise beer retailer licensee is carrying public liability
5393 insurance in an amount and form satisfactory to the department;
5394 (i) for a licensee that sells more than $5,000 of beer annually, evidence that the
5395 on-premise beer retailer licensee is carrying dramshop insurance coverage of at least
5396 [$500,000] $1,000,000 per occurrence and [$1,000,000] $2,000,000 in the aggregate;
5397 (j) a signed consent form stating that the on-premise beer retailer licensee will permit
5398 any authorized representative of the commission, department, or any peace officer unrestricted
5399 right to enter the licensee premises;
5400 (k) in the case of an applicant that is a partnership, corporation, or limited liability
5401 company, proper verification evidencing that the person or persons signing the on-premise beer
5402 retailer licensee application are authorized to so act on the behalf of the partnership,
5403 corporation, or limited liability company; and
5404 (l) any other information the department may require.
5405 (2) (a) [All] An on-premise beer retailer [licenses expire] license expires on the last
5406 day of February of each year.
5407 (b) (i) Except as provided in Subsection (2)(b)(ii), a person desiring to renew the
5408 person's on-premise beer retailer license shall submit by no later than January 31:
5409 (A) a completed renewal application to the department; and
5410 (B) a renewal fee in the following amount:
5411 (I) if the on-premise beer retailer licensee does not operate as a tavern, the renewal fee
5412 is $200; or
5413 (II) if the on-premise beer retailer licensee operates as a tavern, the renewal fee is
5414 $1,000.
5415 (ii) A licensee is not required to submit a renewal fee if the licensee is:
5416 (A) a state agency; or
5417 (B) a political subdivision of the state including:
5418 (I) a county; or
5419 (II) a municipality.

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- 176 - 5420 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
5421 the license, effective on the date the existing license expires.
5422 (d) A renewal statement shall be in a form as prescribed by the department.
5423 (3) To ensure compliance with Subsection 32A-10-206 (17), the commission may
5424 suspend or revoke a beer retailer license if a beer retailer licensee does not immediately notify
5425 the department of any change in:
5426 (a) ownership of the beer retailer;
5427 (b) for a corporate owner, the:
5428 (i) corporate officers or directors; and
5429 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
5430 corporation; or
5431 (c) for a limited liability company:
5432 (i) managers; or
5433 (ii) members owning at least 20% of the limited liability company.
5434 (4) An applicant need not meet the requirements of Subsections (1)(a), (b), (c), (d), and
5435 (f) if the applicant is:
5436 (a) a state agency; or
5437 (b) a political subdivision of the state including:
5438 (i) a county; or
5439 (ii) a municipality.
5440 (5) (a) Except as provided in Subsection (5)(c), only one state on-premise beer retailer
5441 license is required for each building or resort facility owned or leased by the same applicant.
5442 (b) Except as provided in Subsection (5)(c), separate licenses are not required for each
5443 retail beer dispensing outlet located in the same building or on the same resort premises owned
5444 or operated by the same applicant.
5445 (c) (i) Subsections (5)(a) and (5)(b) apply only if all of the retail beer dispensing outlets
5446 in the building or resort facility operate in the same manner.
5447 (ii) If the condition described in Subsection (5)(c)(i) is not met:
5448 (A) one state on-premise beer retailer tavern license is required for all outlets in the
5449 same building or on the same resort premises that operate as a tavern; and
5450 (B) one state on-premise beer retailer license is required for all outlets in the same

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- 177 - 5451 building or on the same resort premises that do not operate as a tavern.
5452 Section 50. Section 32A-12-101 is amended to read:
5453 32A-12-101. Applicability of Utah Criminal Code.
5454 Except as otherwise provided, Title 76, Chapters 1, 2, 3, and 4[, the Utah Criminal
5455 Code, relating to principles of construction, jurisdiction, venue, limitations of actions, multiple
5456 prosecutions, double jeopardy, burdens of proof, definitions, principles of criminal
5457 responsibility, punishments, and inchoate offenses apply to any criminal offense defined in this
5458 title, except as otherwise provided], apply to the prosecution of a criminal offense defined in
5459 this chapter or expressly identified as a criminal offense in this title.
5460 Section 51. Section 32A-12-102 is amended to read:
5461 32A-12-102. Special burdens of proof -- Inferences and presumptions.
5462 (1) In [any] a prosecution of an offense defined in this title or in [any] a proceeding
5463 brought to enforce this title:
5464 (a) it is not necessary that the state or commission establish:
5465 (i) the precise description or quantity of [the] an alcoholic [beverages] beverage or
5466 alcoholic product; or [products or]
5467 (ii) the precise consideration, if any, given or received for [the] an alcoholic [beverages
5468 or products] beverage or alcoholic product;
5469 (b) there is an inference, absent proof to the contrary, that [the] an alcoholic beverage
5470 or alcoholic product in question is an alcoholic beverage or alcoholic product if the witness
5471 describes it:
5472 (i) as an alcoholic beverage or alcoholic product;
5473 (ii) by a name that is commonly applied to an alcoholic beverage or alcoholic product;
5474 or
5475 (iii) as intoxicating;
5476 (c) if it is alleged that an association or corporation has violated this title, the fact of the
5477 incorporation of the association or corporation is presumed absent proof to the contrary;
5478 (d) a certificate or report signed or purporting to be signed by any state chemist,
5479 assistant state chemist, or state crime laboratory chemist, as to the analysis or ingredients of
5480 [any] an alcoholic beverage or alcoholic product is:
5481 (i) prima facie evidence:

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- 178 - 5482 (A) of the facts stated in that certificate or report; and
5483 (B) of the authority of the person giving or making the report; and
5484 (ii) admissible in evidence without any proof of appointment or signature absent proof
5485 to the contrary; and
5486 (e) a copy of entries made in the records of the United States internal revenue collector,
5487 certified by the collector or a qualified notary public, showing the payment of the United States
5488 internal revenue special tax for the manufacture or sale of an alcoholic [beverages or products]
5489 beverage or alcoholic product is prima facie evidence of the manufacture or sale by the party
5490 named in the entry within the period set forth in the record.
5491 (2) (a) In proving the unlawful sale, disposal, gift, or purchase, gratuitous or otherwise,
5492 or consumption of an alcoholic [beverages or products] beverage or alcoholic product, it is not
5493 necessary that the state or commission establish that any money or other consideration actually
5494 passed or that an alcoholic beverage or alcoholic product was actually consumed if the court or
5495 trier of fact is satisfied that:
5496 (i) a transaction in the nature of a sale, disposal, gift, or purchase actually occurred; or
5497 (ii) [any] consumption of an alcoholic [beverages or products] beverage or alcoholic
5498 product was about to occur.
5499 (b) Proof of consumption or intended consumption of an alcoholic beverage or
5500 alcoholic product on premises on which consumption is prohibited, by some person not
5501 authorized to consume an alcoholic [beverages or products] beverage or alcoholic product on
5502 those premises, is evidence that an alcoholic beverage or alcoholic product was sold or given to
5503 or purchased by the person consuming, about to consume, or carrying away the alcoholic
5504 beverage or alcoholic product as against the occupant of the premises.
5505 (3) For purposes of a provision applicable under this chapter to a retail licensee or
5506 officer, manager, employee, or agent of a retail licensee, the provision is applicable to a resort
5507 licensee or a person operating under a sublicense of the resort licensee.
5508 (4) Notwithstanding the other provisions of this chapter, a criminal offense identified
5509 in this title as a criminal offense may not be enforced under this chapter if the criminal offense
5510 relates to a violation:
5511 (a) of a provision in this title related to intoxication or becoming intoxicated; and
5512 (b) if the violation is first investigated by a law enforcement officer, as defined in

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- 179 - 5513 Section 53-13-103 , who has not received training regarding the requirements of this title
5514 related to responsible alcoholic beverage sale or service.
5515 Section 52. Section 32A-12-104 is amended to read:
5516 32A-12-104. Violation of title a misdemeanor.
5517 [Any person who violates this title]
5518 (1) Unless otherwise provided in this title, a person is guilty of a class B
5519 misdemeanor[, unless otherwise provided in this title.] if that person violates:
5520 (a) this chapter; or
5521 (b) a provision of this title that is expressly identified as a criminal offense.
5522 (2) This section is not applicable to an adjudicative proceeding under Section
5523 32A-1-119 , but only:
5524 (a) makes a violation described in Subsection (1) a criminal offense; and
5525 (b) establishes a penalty for a violation described in Subsection (1) that is prosecuted
5526 criminally.
5527 Section 53. Section 32A-12-209.5 is amended to read:
5528 32A-12-209.5. Unlawful admittance or attempt to gain admittance by minor.
5529 (1) It is unlawful for a minor to gain admittance or attempt to gain admittance to the
5530 premises of:
5531 (a) a tavern; or
5532 (b) a [class D private club] social club licensee, except to the extent authorized by
5533 Subsection 32A-5-107 [(8)](2)(d).
5534 (2) A minor who violates this section is guilty of a class C misdemeanor.
5535 (3) When a minor who is at least 18 years old, but younger than 21 years old, is found
5536 by a court to have violated this section:
5537 (a) if the violation is the minor's first violation of this section, the court may suspend
5538 the minor's driving privileges; or
5539 (b) if the violation is the minor's second or subsequent violation of this section, the
5540 court shall suspend the minor's driving privileges.
5541 (4) When a minor who is at least 13 years old, but younger than 18 years old, is found
5542 by a court to have violated this section, [the provisions regarding suspension of the driver's
5543 license under] Section 78A-6-606 [apply] applies to the violation.

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- 180 - 5544 (5) When the court issues an order suspending a person's driving privileges for a
5545 violation of this section, the Driver License Division shall suspend the person's license under
5546 Section 53-3-219 .
5547 (6) When the Department of Public Safety receives the arrest or conviction record of a
5548 person for a driving offense committed while the person's license is suspended pursuant to this
5549 section, the [department] Department of Public Safety shall extend the suspension for an
5550 additional like period of time.
5551 Section 54. Section 32A-12-212 is amended to read:
5552 32A-12-212. Unlawful possession -- Exceptions.
5553 (1) A person may not have or possess within this state [any] liquor unless authorized
5554 by this title or the rules of the commission, except that:
5555 (a) a person who clears United States Customs when entering this country may have or
5556 possess for personal consumption and not for sale or resale, a maximum of two liters of liquor
5557 purchased from without the United States;
5558 (b) a person who moves the person's residence to this state from outside of this state
5559 may have or possess for personal consumption and not for sale or resale, liquor previously
5560 purchased outside the state and brought into this state during the move, if:
5561 (i) the person [first] obtains department approval before moving the liquor into the
5562 state; and
5563 [(ii) the department affixes the official state label to the liquor; and]
5564 [(iii)] (ii) the person pays the department a reasonable administrative handling fee as
5565 determined by the commission;
5566 (c) a person who as a beneficiary inherits as part of an estate liquor that is located
5567 outside the state, may have or possess the liquor and transport or cause the liquor to be
5568 transported into the state if:
5569 (i) the person [first] obtains department approval before moving the liquor into the
5570 state;
5571 (ii) the person provides sufficient documentation to the department to establish the
5572 person's legal right to the liquor as a beneficiary; and
5573 [(iii) the department affixes the official state label to the liquor; and]
5574 [(iv)] (iii) the person pays the department a reasonable administrative handling fee as

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- 181 - 5575 determined by the commission; or
5576 (d) a person may transport, have, or possess liquor if:
5577 (i) the person transports, has, or possesses the liquor:
5578 (A) for personal household use and consumption; and
5579 (B) not for:
5580 (I) sale;
5581 (II) resale;
5582 (III) gifting to another; or
5583 (IV) consumption on a premise licensed by the commission;
5584 (ii) the liquor is purchased from a store or outlet on a military installation; and
5585 (iii) the maximum amount the person transports, has, or possesses under this
5586 Subsection (1)(d) is:
5587 (A) two liters of:
5588 (I) spirituous liquor;
5589 (II) wine; or
5590 (III) a combination of spirituous liquor and wine; and
5591 (B) (I) one case of heavy beer that does not exceed 288 ounces; or
5592 (II) [on or after October 1, 2008,] one case of a flavored malt beverage that does not
5593 exceed 288 ounces.
5594 (2) (a) Approval under Subsection (1)(b) may be obtained by a person who:
5595 (i) is transferring the person's permanent residence to this state; or
5596 (ii) maintains separate residences both in and out of this state.
5597 (b) A person may not obtain approval to transfer liquor under Subsection (1)(b) more
5598 than once.
5599 Section 55. Section 32A-12-213 is amended to read:
5600 32A-12-213. Unlawful bringing onto premises for consumption.
5601 (1) Except as provided in Subsection (3), a person may not bring for on-premise
5602 consumption [any] an alcoholic beverage onto the premises of [any]:
5603 (a) a licensed or unlicensed restaurant;
5604 (b) a licensed or unlicensed [private] club;
5605 (c) an airport lounge licensee;

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- 182 - 5606 (d) an on-premise banquet licensee;
5607 (e) an on-premise beer retailer licensee;
5608 (f) a resort licensee;
5609 (g) a sublicense of a resort licensee;
5610 [(f)] (h) an event where an alcoholic [beverages are] beverage is sold or served under a
5611 single event permit or temporary special event beer permit issued under this title; or
5612 [(g)] (i) any establishment open to the general public.
5613 (2) Except as provided in Subsection (3), [a licensed or unlicensed restaurant or private
5614 club, airport lounge licensee, on-premise banquet licensee, on-premise beer retailer licensee, or
5615 holder of a single event permit or temporary special event beer permit issued under this title, or
5616 its officers, managers, employees, or agents] the following may not allow a person to bring
5617 onto its premises [any] an alcoholic beverage for on-premise consumption or allow
5618 consumption of [any such] an alcoholic beverage brought onto its premises in violation of this
5619 section[.]:
5620 (a) a licensed or unlicensed restaurant;
5621 (b) a licensed or unlicensed club;
5622 (c) an airport lounge licensee;
5623 (d) an on-premise banquet licensee;
5624 (e) a resort licensee in relationship to:
5625 (i) the boundary of a resort building; or
5626 (ii) a sublicense premises;
5627 (f) a person operating a sublicense of a resort license;
5628 (g) an on-premise beer retailer licensee;
5629 (h) a holder of a single event permit or temporary special event beer permit issued
5630 under this title; or
5631 (i) an officer, manager, employee, or agent of a person listed in Subsections (2)(a)
5632 through (h).
5633 (3) (a) A person may bring bottled wine onto the premises of [any] a restaurant liquor
5634 licensee, limited restaurant licensee, resort spa sublicense, or [private] club licensee and
5635 consume the wine pursuant to the applicable restrictions contained in Subsection
5636 32A-4-106 (14), 32A-4-307 (14), 32A-4a-305 (22), or 32A-5-107 [(31);] (18).

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- 183 - 5637 (b) [a] A passenger of a limousine may bring onto, have, and consume [any] an
5638 alcoholic beverage on the limousine if:
5639 (i) the travel of the limousine begins and ends at:
5640 (A) the residence of the passenger;
5641 (B) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
5642 (C) the temporary domicile of the passenger; and
5643 (ii) the driver of the limousine is separated from the passengers by partition or other
5644 means approved by the department[;].
5645 (c) [a] A passenger of a chartered bus may bring onto, have, and consume [any] an
5646 alcoholic beverage on the chartered bus:
5647 (i) (A) but may consume only during travel to a specified destination of the chartered
5648 bus and not during travel back to the place where the travel begins; or
5649 (B) if the travel of the chartered bus begins and ends at:
5650 (I) the residence of the passenger;
5651 (II) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
5652 (III) the temporary domicile of the passenger; and
5653 (ii) the chartered bus has a nondrinking designee other than the driver traveling on the
5654 chartered bus to monitor consumption[; and].
5655 (d) [a] A person may bring onto any premises, have, and consume [any] an alcoholic
5656 beverage at a privately hosted event that is not open to the general public.
5657 (4) Except as provided in Subsection (3)(c)(i)(A), the consumption of an alcoholic
5658 [beverages in limousines and chartered buses] beverage in a limousine or chartered bus is not
5659 allowed if the limousine or chartered bus drops off [passengers at locations from which they
5660 depart in private vehicles] a passenger at a location from which the passenger departs in a
5661 private vehicle.
5662 Section 56. Section 32A-12-219 is amended to read:
5663 32A-12-219. Unlawful adulteration -- Licensing tampering.
5664 (1) For purposes of this section, "tamper" means to do one or more of the following to
5665 the contents of a package:
5666 (a) fortify;
5667 (b) adulterate;

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- 184 - 5668 (c) contaminate;
5669 (d) dilute;
5670 (e) change its character or purity; or
5671 (f) otherwise change.
5672 (2) A person may not, for any purpose, mix or allow to be mixed [any drug, methylic
5673 alcohol, any crude, unrectified, or impure form of ethylic alcohol, or any other deleterious
5674 substance or liquid] with an alcoholic beverage sold or supplied by the person as a beverage[.]
5675 any of the following:
5676 (a) a drug;
5677 (b) methylic alcohol;
5678 (c) a crude, unrectified, or impure form of ethylic alcohol; or
5679 (d) another deleterious substance.
5680 (3) (a) The following may not engage in an act listed in Subsection (3)(b):
5681 (i) a retail licensee;
5682 (ii) a permittee;
5683 (iii) a package agent;
5684 (iv) a beer wholesaler;
5685 (v) a supplier;
5686 (vi) an importer; or
5687 (vii) a warehouser.
5688 (b) A person listed in Subsection (3)(a) may not:
5689 (i) tamper with the contents of a package of alcoholic beverage as originally marketed
5690 by a manufacturer;
5691 (ii) refill or partly refill with any substance the contents of an original package of
5692 alcoholic beverage as originally marketed by a manufacturer;
5693 (iii) misrepresent the brand of an alcoholic beverage sold or offered for sale; or
5694 (iv) sell or serve a brand of alcoholic beverage that is not the same as that ordered by a
5695 purchaser without first advising the purchaser of the difference.
5696 Section 57. Section 32A-12-222 is amended to read:
5697 32A-12-222. Unlawful dispensing.
5698 (1) For purposes of this section:

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- 185 - 5699 (a) "primary spirituous liquor" means the main distilled spirit in a beverage; and
5700 (b) "primary spirituous liquor" does not include a secondary alcoholic product used as
5701 a flavoring in conjunction with the primary distilled spirit in the beverage.
5702 (2) A licensee licensed under this title to sell, serve, or otherwise furnish spirituous
5703 liquor for consumption on the licensed premises, or an officer, manager, employee, or agent of
5704 the licensee may not:
5705 (a) sell, serve, dispense, or otherwise furnish a primary spirituous liquor to a person on
5706 the licensed premises except in a quantity that does not exceed 1.5 ounces per beverage
5707 dispensed through a calibrated metered dispensing system approved by the department;
5708 (b) sell, serve, dispense, or otherwise furnish more than a total of 2.5 ounces of
5709 spirituous liquor per beverage;
5710 (c) allow [any] a person on the licensed premises to have more than a total of 2.5
5711 ounces of spirituous liquor at a time;
5712 (d) allow [any] a person on the premises of the following to have more than one
5713 spirituous liquor beverage at a time:
5714 (i) a restaurant liquor licensee;
5715 (ii) an on-premise banquet licensee; [or]
5716 (iii) one of the following sublicenses of a resort license:
5717 (A) a restaurant sublicense; or
5718 (B) a limited restaurant sublicense; or
5719 [(iii)] (iv) a single event permittee; or
5720 (e) allow [any] a person to have more than two spirituous liquor beverages at a time in
5721 violation of:
5722 (i) Subsection 32A-4-206 (2)(d); [or]
5723 (ii) Subsection 32A-4a-305 (10)(c)(ii); or
5724 [(ii)] (iii) Subsection 32A-5-107 [(20)](7)(d).
5725 (3) A violation of this section is a class C misdemeanor.
5726 Section 58. Section 32A-12-301 is amended to read:
5727 32A-12-301. Operating without a license or permit.
5728 (1) (a) A person may not operate the following businesses without first obtaining a
5729 license under this title if the business allows a [patron, customer, member, guest, visitor, or

Text Box
- 186 - 5730 other person] person described in Subsection (1)(b) to purchase or consume an alcoholic
5731 beverage on the premises of the business:
5732 [(a)] (i) a restaurant;
5733 [(b)] (ii) an airport lounge;
5734 [(c)] (iii) a [private] club license;
5735 (iv) a resort;
5736 [(d)] (v) an on-premise beer retailer outlet;
5737 [(e)] (vi) on-premise banquet premises; or
5738 [(f)] (vii) a business similar to one listed in Subsections (1)(a)(i) through [(e)] (vi).
5739 (b) Subsection (1)(a) applies if one of the following is allowed to purchase or consume
5740 an alcoholic beverage on the premises of the business:
5741 (i) a patron;
5742 (ii) a customer;
5743 (iii) a member;
5744 (iv) a guest;
5745 (v) a resident of a resort;
5746 (vi) a holder of a customer card under Chapter 4a, Part 3, Resort Spa Sublicense; or
5747 (vii) an invitee.
5748 (2) A person conducting an event or function that is open to the general public may not
5749 directly or indirectly sell, offer to sell, or otherwise furnish an alcoholic beverage to a person
5750 attending the event or function without first obtaining a permit under this title.
5751 (3) A person conducting a privately hosted event or private social function may not
5752 directly or indirectly sell or offer to sell an alcoholic beverage to a person attending the
5753 privately hosted event or private social function without first obtaining a permit under this title.
5754 (4) A person may not operate the following businesses without first obtaining a license
5755 under this title:
5756 (a) a winery manufacturer;
5757 (b) a distillery manufacturer;
5758 (c) a brewery manufacturer;
5759 (d) a local industry representative of:
5760 (i) a manufacturer of an alcoholic beverage;

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- 187 - 5761 (ii) a supplier of an alcoholic beverage; or
5762 (iii) an importer of an alcoholic beverage;
5763 (e) a liquor warehouser; or
5764 (f) a beer wholesaler.
5765 (5) A person may not operate a public conveyance in this state without first obtaining a
5766 public service permit under this title if that public conveyance allows a person to purchase or
5767 consume an alcoholic beverage or alcoholic product:
5768 (a) on the public conveyance; or
5769 (b) on the premises of a hospitality room located with a depot, terminal, or similar
5770 facility at which a service is provided to a patron of the public conveyance.
5771 Section 59. Section 32A-14a-102 is amended to read:
5772 32A-14a-102. Liability for injuries and damage resulting from distribution of
5773 alcoholic beverages -- Causes of action -- Statute of limitations -- Employee protections.
5774 (1) (a) Except as provided in Section 32A-14a-103 , a person described in Subsection
5775 (1)(b) is liable for:
5776 (i) any and all injury and damage, except punitive damages to:
5777 (A) any third person; or
5778 (B) the heir, as defined in Section 78B-3-105 , of that third person; or
5779 (ii) for the death of a third person.
5780 (b) A person is liable under Subsection (1)(a) if:
5781 (i) the person directly gives, sells, or otherwise provides an alcoholic beverage:
5782 (A) to a person described in Subsection (1)(b)(ii); and
5783 (B) as part of the commercial sale, storage, service, manufacture, distribution, or
5784 consumption of alcoholic products;
5785 (ii) those actions cause the intoxication of:
5786 (A) any individual under the age of 21 years;
5787 (B) any individual who is apparently under the influence of intoxicating alcoholic
5788 products or drugs;
5789 (C) any individual whom the person furnishing the alcoholic beverage knew or should
5790 have known from the circumstances was under the influence of intoxicating alcoholic
5791 beverages or products or drugs; or

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- 188 - 5792 (D) any individual who is a known interdicted person; and
5793 (iii) the injury or death described in Subsection (1)(a) results from the intoxication of
5794 the individual who is provided the alcoholic beverage.
5795 (2) (a) A person 21 years of age or older who is described in Subsection (2)(b) is liable
5796 for:
5797 (i) any and all injury and damage, except punitive damages to:
5798 (A) any third person; or
5799 (B) the heir, as defined in Section 78B-3-105 , of that third person; or
5800 (ii) for the death of the third person.
5801 (b) A person is liable under Subsection (2)(a) if:
5802 (i) that person directly gives or otherwise provides an alcoholic beverage to an
5803 individual who the person knows or should have known is under the age of 21 years;
5804 (ii) those actions caused the intoxication of the individual provided the alcoholic
5805 beverage;
5806 (iii) the injury or death described in Subsection (2)(a) results from the intoxication of
5807 the individual who is provided the alcoholic beverage; and
5808 (iv) the person is not liable under Subsection (1), because the person did not directly
5809 give or provide the alcoholic beverage as part of the commercial sale, storage, service,
5810 manufacture, distribution, or consumption of alcoholic products.
5811 (3) Except for a violation of Subsection (2), an employer is liable for the actions of its
5812 employees in violation of this chapter.
5813 (4) A person who suffers an injury under Subsection (1) or (2) has a cause of action
5814 against the person who provided the alcoholic beverage in violation of Subsection (1) or (2).
5815 (5) If a person having rights or liabilities under this chapter dies, the rights or liabilities
5816 provided by this chapter survive to or against that person's estate.
5817 (6) The total amount that may be awarded to any person pursuant to a cause of action
5818 for injury and damage under this chapter that arises after [January 1, 1998] January 1, 2010, is
5819 limited to [$500,000] $1,000,000 and the aggregate amount which may be awarded to all
5820 persons injured as a result of one occurrence is limited to [$1,000,000] $2,000,000.
5821 (7) An action based upon a cause of action under this chapter shall be commenced
5822 within two years after the date of the injury and damage.

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- 189 - 5823 (8) (a) Nothing in this chapter precludes any cause of action or additional recovery
5824 against the person causing the injury.
5825 (b) Any cause of action or additional recovery against the person causing the injury and
5826 damage, which action is not brought under this chapter, is exempt from the damage cap in
5827 Subsection (6).
5828 (c) Any cause of action brought under this chapter is exempt from Sections 78B-5-817
5829 through 78B-5-823 .
5830 (9) This section does not apply to a business licensed under Chapter 10, Part 1, General
5831 Provisions, to sell beer at retail only for off-premise consumption.
5832 Section 60. Section 32A-14a-103 is amended to read:
5833 32A-14a-103. Employee protected in exercising judgment.
5834 (1) An employer may not sanction or terminate the employment of an employee of a
5835 restaurant, airport lounge, [private] on-premise banquet licensee, resort, club licensee,
5836 on-premise beer retailer, or any other establishment serving an alcoholic [beverages] beverage
5837 as a result of the employee having exercised the employee's independent judgment to refuse to
5838 sell an alcoholic [beverages] beverage to [any] a person the employee considers to meet one or
5839 more of the conditions described in Subsection 32A-14a-102 (1).
5840 (2) [Any] An employer who terminates an employee or imposes sanctions on the
5841 employee contrary to this section is considered to have discriminated against that employee and
5842 is subject to the conditions and penalties set forth in Title 34A, Chapter 5, Utah
5843 Antidiscrimination Act.
5844 Section 61. Section 53-10-305 is amended to read:
5845 53-10-305. Duties of bureau chief.
5846 The bureau chief, with the consent of the commissioner, shall do the following:
5847 (1) conduct in conjunction with the state boards of education and higher education in
5848 state schools, colleges, and universities, an educational program concerning alcoholic products,
5849 and work in conjunction with civic organizations, churches, local units of government, and
5850 other organizations in the prevention of alcoholic product and drug violations;
5851 (2) coordinate law enforcement programs throughout the state and accumulate and
5852 disseminate information related to the prevention, detection, and control of violations of this
5853 chapter and Title 32A, Alcoholic Beverage Control Act, as it relates to storage or consumption

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- 190 - 5854 of alcoholic beverages on premises maintained by [social clubs, recreational, athletic, and
5855 kindred associations] a club licensee, or a person required to be licensed as a club licensee, as
5856 defined in Section 32A-1-105 ;
5857 (3) make inspections and investigations as required by the commission and the
5858 Department of Alcoholic Beverage Control;
5859 (4) perform other acts as may be necessary or appropriate concerning control of the use
5860 of alcoholic beverages and products and drugs; and
5861 (5) make reports and recommendations to the Legislature, the governor, the
5862 commissioner, the commission, and the Department of Alcoholic Beverage Control as may be
5863 required or requested.
5864 Section 62. Repealer.
5865 This bill repeals:
5866 Section 32A-12-218, Unlawful labeling or lack of label.
5867 Section 63. Study of penalties for violations related to minors.
5868 (1) As used in this section:
5869 (a) "Commission" means the Alcoholic Beverage Commission created in Section
5870 32A-1-106 .
5871 (b) "Violation related to a minor" means a violation under Title 32A, Alcoholic
5872 Beverage Control Act, that is, in whole or in part, based on a licensee, permittee, or an
5873 employee or agent of the licensee or permittee:
5874 (i) selling, serving, or otherwise furnishing an alcoholic product to a minor;
5875 (ii) purchasing or otherwise obtaining an alcoholic product for a minor;
5876 (iii) permitting a minor to consume an alcoholic product;
5877 (iv) permitting a minor to gain admittance to an area into which a minor is not
5878 permitted under Title 32A, Alcoholic Beverage Control Act; or
5879 (v) offering or providing employment to a minor that under Title 32A, Alcoholic
5880 Beverage Control Act, may not be obtained by a minor.
5881 (2) (a) The commission shall review the penalties imposed by the commission for a
5882 violation related to a minor beginning on January 1, 2005 and ending December 31, 2008.
5883 (b) The commission shall address in its review the following:
5884 (i) trends, if any, in the severity of the penalties;

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- 191 -

Senate 2nd Reading Amendments 3-9-2009 rd/po 5885

(ii) circumstances affecting the penalties imposed;
5886 (iii) the purpose and effectiveness of the penalties;
5887 (iv) other issues as determined by the commission; and
5888 (v) whether the commission should recommend legislative action related to the
5889 imposition of a penalty.
5890 (c) The commission shall report its findings and recommendations described in
5891 Subsection (2)(b) to the Business and Labor Interim Committee on or before the October 2009
5892 interim meeting.
5893 Section 64. Effective date.
5894 (1) This bill takes effect on May 12, 2009 except:
5895 (a) the amendments in this bill to the following take effect on July 1, 2009:
5896 (i) Section 32A-5-101 ;
5897 (ii) Section 32A-5-102 , except for Subsection 32A-5-102 (1)(j);
5898 (iii) Section 32A-5-103 (Effective 07/01/09);
5899 (iv) Section 32A-5-104 ;
5900 (v) Section 32A-5-106 ; S. [ and ] .S
5901 (vi) Section 32A-5-107 ;
5901a S. (vii) Section 11-10-1;
5901b (viii) Section 26-38-2;
5901c (ix) Section 26-38-3;
5901d (x) Subsections 32A-1-105(12), (23), (35), and the existing (64) that defines a "visitor";
5901e (xi) Section 32A-1-304.5;
5901f (xii) Section 32A-1-603;
5901g (xiii) Section 32A-12-209.5; and
5901h (xiv) Section 53-10-305; .S
5902 (b) the amendments in this bill to the following take effect on January 1, 2010:
5903 (i) Section 32A-4-102 ;
5904 (ii) Section 32A-4-202 ;
5905 (iii) Section 32A-4-303 ;
5906 (iv) Section 32A-4-402 ;
5907 (v) Section 32A-10-202 ; and
5908 (vi) Section 32A-14a-102 and
5909 (c) Subsection 32A-5-102 (1)(j) takes effect on July 1, 2010.
5910 (2) During the 2009 interim, the Business and Labor Interim Committee shall:

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- 191a -

Senate 2nd Reading Amendments 3-9-2009 rd/po 5911

(a) study whether or not a club licensee can reasonably obtain dramshop insurance
5912 coverage of the amounts required by the amendments in this bill to Subsection
5913 32A-5-102 (1)(j); and
5914 (b) make a recommendation to the Legislature regarding any changes to Subsection
5915 32A-5-102 (1)(j) for consideration during the 2010 General Session.

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- 192 - 5916 Section 65. Revisor instructions for S.B. 187.
5917 If this S.B. 187 passes, it is the intent of the Legislature that the Office of Legislative
5918 Research and General Counsel in preparing the Utah Code database that takes effect July 1,
5919 2009, for publication replace "private club" or "private club licensee" with "club licensee" in
5920 any new language added to the Utah Code by legislation passed during the 2009 General
5921 Session, if the context of the terms clearly indicates that the terms "private club" or "private
5922 club licensee" refer to a private club licensed under Title 32A, Chapter 5.
5923 Section 66. Coordinating S.B. 187 with H.B. 349 -- Merging amendments.
5924 If this S.B. 187 and H.B. 349, Heavy Beer Amendments, both pass, it is the intent of the
5925 Legislature that the Office of Legislative Research and General Counsel in preparing the Utah
5926 Code database for publication:
5927 (1) treat this coordination clause as superseding the coordination clause in H.B. 349
5928 between this bill and H.B. 349;
5929 (2) modify Subsection 32A-4a-305 (9)(a) enacted in this bill to read:
5930 "(9)(a) Except as provided in Chapter 11, Part 2, Heavy Beer Wholesaling Act, a person
5931 operating under a resort spa sublicense may not purchase liquor except from a state store or
5932 package agency.";
5933 (3) modify Subsection 32A-4a-305 (12) enacted in this bill to read:
5934 "(12)(a) A person operating under a resort spa sublicense may serve heavy beer:
5935 (i) at a price fixed by the commission; and
5936 (ii) (A) in an original container not exceeding one liter; or
5937 (B) subject to Subsection (12)(c):
5938 (I) in an open container; and
5939 (II) on draft.
5940 (b) A flavored malt beverage may be served in an original container not exceeding one
5941 liter at a price fixed by the commission.
5942 (c) A person operating under a resort spa sublicense shall sell heavy beer sold pursuant
5943 to Subsection (12)(a)(ii)(B) in a size of container that does not exceed two liters, except that
5944 heavy beer may not be sold to an individual patron in a size of container that exceeds one liter.
5945 (d) A service charge may be assessed by a person operating under a resort spa
5946 sublicense for heavy beer or a flavored malt beverage purchased at the resort spa sublicense

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- 193 - 5947 premises.";
5948 (4) modify Subsection 32A-4a-401 (4)(a) enacted in this bill to read:
5949 "(4)(a) Except as provided in Chapter 11, Part 2, Heavy Beer Wholesaling Act, a resort
5950 licensee may not purchase liquor except from a state store or package agency.";
5951 (5) insert into Section 32A-11-202 , enacted in H.B. 349, a new Subsection (1)(e) to
5952 read "(e) a resort licensee;" and renumber the remaining subsections of Subsection (1)
5953 accordingly;
5954 (6) modify the Subsection 32A-11-202 (1)(e) enacted in H.B. 349, to read "(f) club
5955 licensee;"
5956 (7) modify 32A-11-203 , enacted in H.B. 349 as follows:
5957 (a) insert "and" after Subsection (2);
5958 (b) delete Subsection (3); and
5959 (c) renumber Subsection (4) to Subsection (3);
5960 (8) insert into Subsection 32A-12-201 (1)(e), as amended H.B. 349, a new Subsection
5961 (1)(e)(v) to read "(v) a resort licensee;" and renumber the remaining subsections of Subsection
5962 (1)(e) accordingly;
5963 (9) modify the Subsection 32A-12-201 (1)(e)(v) enacted in H.B. 349 to read "(vi) a club
5964 licensee;";
5965 (10) insert into Subsection 32A-12-201 (3)(a)(v), as amended in H.B. 349, a new
5966 Subsection (3)(a)(v)(E) to read "(E) a resort licensee;" and renumber the remaining subsections
5967 of Subsection (3)(a)(v) accordingly; and
5968 (11) modify the Subsection 32A-12-201 (3)(a)(v)(E) enacted in H.B. 349 to read "(F) a
5969 club licensee;"; and
5970 (12) have the repeal of Section 32A-12-218 in this bill supersede the amendments to
5971 that section in H.B. 349.