S.B. 187 Enrolled

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;
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 dramshop insurance; 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 Utah Code Sections Affected:
50 AMENDS:
51 11-10-1, as last amended by Laws of Utah 1990, Chapter 23
52 26-38-2, as last amended by Laws of Utah 2006, Chapter 202
53 26-38-3, as last amended by Laws of Utah 2007, Chapter 20
54 32A-1-105, as last amended by Laws of Utah 2008, Chapters 317, 322, and 391
55 32A-1-107, as last amended by Laws of Utah 2006, Chapter 162
56 32A-1-109, as last amended by Laws of Utah 2003, Chapter 314
57 32A-1-115, as last amended by Laws of Utah 2008, Chapter 382

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

86 32A-12-212, as last amended by Laws of Utah 2008, Chapter 391
87 32A-12-213, as last amended by Laws of Utah 2007, Chapter 284
88 32A-12-219, as renumbered and amended by Laws of Utah 1990, Chapter 23
89 32A-12-222, as last amended by Laws of Utah 2008, Chapter 391
90 32A-12-301, as last amended by Laws of Utah 2008, Chapter 391
91 32A-14a-102, as last amended by Laws of Utah 2008, Chapter 3
92 32A-14a-103, as enacted by Laws of Utah 2000, Chapter 197
93 53-10-305, as last amended by Laws of Utah 2000, Chapter 1
94 ENACTS:
95 32A-1-304.5, Utah Code Annotated 1953
96 32A-4a-101, Utah Code Annotated 1953
97 32A-4a-102, Utah Code Annotated 1953
98 32A-4a-201, Utah Code Annotated 1953
99 32A-4a-202, Utah Code Annotated 1953
100 32A-4a-203, Utah Code Annotated 1953
101 32A-4a-204, Utah Code Annotated 1953
102 32A-4a-205, Utah Code Annotated 1953
103 32A-4a-301, Utah Code Annotated 1953
104 32A-4a-302, Utah Code Annotated 1953
105 32A-4a-303, Utah Code Annotated 1953
106 32A-4a-304, Utah Code Annotated 1953
107 32A-4a-305, Utah Code Annotated 1953
108 32A-4a-401, Utah Code Annotated 1953
109 32A-4a-402, Utah Code Annotated 1953
110 32A-4a-501, Utah Code Annotated 1953
111 32A-4a-502, Utah Code Annotated 1953
112 32A-4a-503, Utah Code Annotated 1953
113 32A-5-109, Utah Code Annotated 1953

114 REPEALS:
115 32A-12-218, as last amended by Laws of Utah 2003, Chapter 314
116 Uncodified Material Affected:
117 ENACTS UNCODIFIED MATERIAL
118
119 Be it enacted by the Legislature of the state of Utah:
120 Section 1. Section 11-10-1 is amended to read:
121 11-10-1. Business license required -- Authorization for issuance, denial,
122 suspension, or revocation by local authority.
123 (1) As used in this chapter, ["club," "local authority," "restaurant," and "person"] the
124 following have the meaning set forth in Section 32A-1-105 [.]:
125 (a) "club licensee";
126 (b) "local authority";
127 (c) "person"; and
128 (d) "restaurant."
129 (2) A person may not operate an association, restaurant, club license, or similar
130 business that allows customers, members, guests, [visitors,] or other persons to possess or
131 consume alcoholic beverages on the premises of the club licensee, association, restaurant, or
132 similar business premises without a business license.
133 (3) Any local authority may issue a business license to any person who owns or
134 operates an association, restaurant, club license premise, or similar business that allows the
135 customers, members, guests, [visitors,] or other persons to hold, store, possess, or consume
136 alcoholic beverages on the premises. This license does not permit any person to hold, store,
137 possess, or consume alcoholic beverages on the premises other than as provided in Title 32A,
138 [the] Alcoholic Beverage Control Act.
139 (4) Any local authority may suspend or revoke a business license for a violation of
140 Title 32A, [the] Alcoholic Beverage Control Act.
141 (5) Each local authority shall set policy by written rules that establish criteria and

142 procedures for granting, denying, suspending, or revoking licenses issued under this chapter.
143 (6) A license issued under this section constitutes consent of the local authority within
144 the meaning of Title 32A, [the] Alcoholic Beverage Control Act.
145 Section 2. Section 26-38-2 is amended to read:
146 26-38-2. Definitions.
147 As used in this chapter:
148 (1) "Place of public access" means any enclosed indoor place of business, commerce,
149 banking, financial service, or other service-related activity, whether publicly or privately
150 owned and whether operated for profit or not, to which persons not employed at the place of
151 public access have general and regular access or which the public uses, including:
152 (a) buildings, offices, shops, elevators, or restrooms;
153 (b) means of transportation or common carrier waiting rooms;
154 (c) restaurants, cafes, or cafeterias;
155 (d) taverns as defined in Section 32A-1-105 , or cabarets;
156 (e) shopping malls, retail stores, grocery stores, or arcades;
157 (f) libraries, theaters, concert halls, museums, art galleries, planetariums, historical
158 sites, auditoriums, or arenas;
159 (g) barber shops, hair salons, or laundromats;
160 (h) sports or fitness facilities;
161 (i) common areas of nursing homes, hospitals, resorts, hotels, motels, "bed and
162 breakfast" lodging facilities, and other similar lodging facilities, including the lobbies,
163 hallways, elevators, restaurants, cafeterias, other designated dining areas, and restrooms of any
164 of these;
165 (j) (i) any child care facility or program subject to licensure or certification under this
166 title, including those operated in private homes, when any child cared for under that license is
167 present; and
168 (ii) any child care, other than child care as defined in Section 26-39-102 , that is not
169 subject to licensure or certification under this title, when any child cared for by the provider,

170 other than the child of the provider, is present;
171 (k) public or private elementary or secondary school buildings and educational
172 facilities or the property on which those facilities are located;
173 (l) any building owned, rented, leased, or otherwise operated by a social, fraternal, or
174 religious organization when used solely by the organization members or their guests or
175 families;
176 (m) any facility rented or leased for private functions from which the general public is
177 excluded and arrangements for the function are under the control of the function sponsor;
178 (n) any workplace that is not a place of public access or a publicly owned building or
179 office but has one or more employees who are not owner-operators of the business; [and]
180 (o) any area where the proprietor or manager of the area has posted a conspicuous sign
181 stating "no smoking", "thank you for not smoking", or similar statement[.]; and
182 (p) [any private] a club [licensed] licensee under Title 32A, Chapter 5, [Private] Club
183 [Liquor] Licenses.
184 (2) "Publicly owned building or office" means any enclosed indoor place or portion of
185 a place owned, leased, or rented by any state, county, or municipal government, or by any
186 agency supported by appropriation of, or by contracts or grants from, funds derived from the
187 collection of federal, state, county, or municipal taxes.
188 (3) "Smoking" means the possession of any lighted tobacco product in any form.
189 Section 3. Section 26-38-3 is amended to read:
190 26-38-3. Restriction on smoking in public places and in specified places --
191 Exceptions.
192 (1) Except as provided in Subsection (2), smoking is prohibited in all enclosed indoor
193 places of public access and publicly owned buildings and offices.
194 (2) Subsection (1) does not apply to:
195 (a) areas not commonly open to the public of owner-operated businesses having no
196 employees other than the owner-operator;
197 (b) guest rooms in hotels, motels, "bed and breakfast" lodging facilities, and other

198 similar lodging facilities, but smoking is prohibited under Subsection (1) in the common areas
199 of these facilities, including dining areas and lobby areas; and
200 [(c) before January 1, 2009, taverns, as defined in Section 32A-1-105 , that are:]
201 [(i) licensed on or before May 15, 2006; or]
202 [(ii) licensed on or before May 15, 2006 and after May 15, 2006 undergo a change in
203 ownership;]
204 [(d) before January 1, 2009, class D private clubs, as defined in Section 32A-5-101 ,
205 that are:]
206 [(i) licensed on or before May 15, 2006; or]
207 [(ii) licensed on or before May 15, 2006 and after May 15, 2006 undergo a change in
208 ownership;]
209 [(e) before January 1, 2009, class B private clubs, as defined in Section 32A-5-101
210 that:]
211 [(i) are licensed:]
212 [(A) on or before May 15, 2006; or]
213 [(B) on or before May 15, 2006 and after May 15, 2006 undergo a change in
214 ownership; and]
215 [(ii) do not permit an individual under the age of 21 in the class B private club, unless
216 the individual is active military; and]
217 [(f)] (c) separate enclosed smoking areas:
218 (i) located in the passenger terminals of an international airport located in the city of
219 the first class;
220 (ii) vented directly to the outdoors; and
221 (iii) certified, by a heating, ventilation, and air conditioning engineer licensed by the
222 state, to prevent the drift of any smoke to any nonsmoking area of the terminal.
223 Section 4. Section 32A-1-105 is amended to read:
224 32A-1-105. Definitions.
225 As used in this title:

226 (1) "Airport lounge" means a place of business licensed to sell an alcoholic beverage,
227 at retail, for consumption on its premises located at an international airport with a United
228 States Customs office on the premises of the international airport.
229 (2) "Alcoholic beverage" means the following as the term is defined in this section:
230 (a) beer;
231 (b) flavored malt beverage; and
232 (c) liquor, which [on or after October 1, 2008,] includes a flavored malt beverage.
233 (3) (a) "Alcoholic product" means a product that:
234 (i) contains at least .5% of alcohol by volume; and
235 (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
236 process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
237 in an amount greater than the amount prescribed in Subsection (3)(a)(i).
238 (b) "Alcoholic product" does not include any of the following common items that
239 otherwise come within the definition of an alcoholic product:
240 (i) except as provided in Subsection (3)(c), extract;
241 (ii) vinegar;
242 (iii) cider;
243 (iv) essence;
244 (v) tincture;
245 (vi) food preparation; or
246 (vii) an over-the-counter drug or medicine.
247 (c) An extract containing alcohol obtained by distillation is regulated as an alcoholic
248 product when it is used as a flavoring in the manufacturing of an alcoholic product.
249 (4) (a) ["Bar"] Except as provided in Subsection (4)(b), "bar" means a counter or
250 similar structure:
251 [(a)] (i) at which an alcoholic beverage or an alcoholic product is:
252 [(i)] (A) stored; or
253 [(ii)] (B) dispensed; or

254 [(b)] (ii) from which an alcoholic beverage is served.
255 (b) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
256 3, Limited Restaurant Licenses, "bar structure" means a surface or structure on the premises of
257 a restaurant if on or at any place of the surface or structure an alcoholic beverage or alcoholic
258 product is:
259 (i) stored; or
260 (ii) dispensed.
261 (5) (a) Subject to Subsection (5)(d), "beer" means a product that:
262 (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
263 volume or 3.2% by weight; and
264 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
265 (b) Beer may or may not contain hops or other vegetable products.
266 (c) Beer includes a product that:
267 (i) contains alcohol in the percentages described in Subsection (5)(a); and
268 (ii) is referred to as:
269 (A) beer;
270 (B) ale;
271 (C) porter;
272 (D) stout;
273 (E) lager; or
274 (F) a malt or malted beverage.
275 (d) [On or after October 1, 2008, "beer"] "Beer" does not include a flavored malt
276 beverage.
277 (6) (a) "Beer retailer" means a business that is:
278 (i) engaged, primarily or incidentally, in the retail sale of beer to a patron, whether for
279 consumption on or off the business premises; and
280 (ii) licensed to sell beer by:
281 (A) the commission;

282 (B) a local authority; or
283 (C) both the commission and a local authority.
284 (b) (i) "Off-premise beer retailer" means a business that is engaged in the retail sale of
285 beer to a patron for consumption off the beer retailer's premises.
286 (ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
287 (c) "On-premise beer retailer" means a business that is engaged in the sale of beer to a
288 patron for consumption on the beer retailer's premises, regardless of whether the business sells
289 beer for consumption off the beer retailer's premises.
290 (7) "Billboard" means a public display used to advertise including:
291 (a) a light device;
292 (b) a painting;
293 (c) a drawing;
294 (d) a poster;
295 (e) a sign;
296 (f) a signboard; or
297 (g) a scoreboard.
298 (8) "Brewer" means a person engaged in manufacturing:
299 (a) beer;
300 (b) heavy beer; or
301 (c) a flavored malt beverage.
302 (9) "Cash bar" means the service of an alcoholic beverage:
303 (a) at:
304 (i) a banquet; or
305 (ii) a temporary event for which a permit is issued under this title; and
306 (b) if an attendee at the banquet or temporary event is charged for the alcoholic
307 beverage.
308 (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided
309 by a bus company to a group of persons pursuant to a common purpose:

310 (a) under a single contract;
311 (b) at a fixed charge in accordance with the bus company's tariff; and
312 (c) for the purpose of giving the group of persons the exclusive use of the passenger
313 bus, coach, or other motor vehicle and a driver to travel together to one or more specified
314 destinations.
315 (11) "Church" means a building:
316 (a) set apart for the purpose of worship;
317 (b) in which religious services are held;
318 (c) with which clergy is associated; and
319 (d) which is tax exempt under the laws of this state.
320 (12) ["Club" and "private club"] "Club licensee" means [any of the following
321 organized primarily for the benefit of its members:] a person licensed under Chapter 5, Club
322 Licenses.
323 [(a) a social club;]
324 [(b) a recreational association;]
325 [(c) a fraternal association;]
326 [(d) an athletic association; or]
327 [(e) a kindred association.]
328 (13) "Commission" means the Alcoholic Beverage Control Commission.
329 (14) "Community location" means:
330 (a) a public or private school;
331 (b) a church;
332 (c) a public library;
333 (d) a public playground; or
334 (e) a public park.
335 (15) "Community location governing authority" means:
336 (a) the governing body of the community location; or
337 (b) if the commission does not know who is the governing body of a community

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

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

394 (b) at a:
395 (i) banquet; or
396 (ii) privately hosted event.
397 [(24)] (26) "Identification card" means an identification card issued under Title 53,
398 Chapter 3, Part 8, Identification Card Act.
399 [(25)] (27) "Interdicted person" means a person to whom the sale, gift, or provision of
400 an alcoholic beverage is prohibited by:
401 (a) law; or
402 (b) court order.
403 [(26)] (28) "Intoxicated" means that [to a degree that is unlawful under Section
404 76-9-701 ] a person [is under the influence of]:
405 (a) is significantly impaired as to the person's mental or physical functions as a result
406 of the use of:
407 [(a)] (i) an alcoholic beverage;
408 [(b)] (ii) a controlled substance;
409 [(c)] (iii) a substance having the property of releasing toxic vapors; or
410 [(d)] (iv) a combination of Subsections [(26)] (28)(a)(i) through [(c).] (iii); and
411 (b) exhibits plain and easily observed outward manifestations of behavior or physical
412 signs produced by the over consumption of an alcoholic beverage.
413 (29) "Invitee" is as defined in Section 32A-4a-102 .
414 [(27)] (30) "Licensee" means a person [issued] granted a license by the commission to
415 sell, manufacture, store, or allow consumption of an alcoholic beverage on premises owned or
416 controlled by the person.
417 [(28)] (31) "Limousine" means a motor vehicle licensed by the state or a local
418 authority, other than a bus or taxicab:
419 (a) in which the driver and a passenger are separated by a partition, glass, or other
420 barrier; and
421 (b) that is provided by a company to one or more individuals at a fixed charge in

422 accordance with the company's tariff for the purpose of giving the one or more individuals the
423 exclusive use of the limousine and a driver to travel to one or more specified destinations.
424 [(29)] (32) (a) (i) "Liquor" means alcohol, or an alcoholic, spirituous, vinous,
425 fermented, malt, or other liquid, or combination of liquids, a part of which is spirituous,
426 vinous, or fermented, or other drink, or drinkable liquid that:
427 (A) contains at least .5% alcohol by volume; and
428 (B) is suitable to use for beverage purposes.
429 (ii) [On or after October 1, 2008, "liquor"] "Liquor" includes a flavored malt beverage.
430 (b) "Liquor" does not include a beverage defined as a beer.
431 [(30)] (33) "Local authority" means:
432 (a) the governing body of the county if the premises are located in an unincorporated
433 area of a county; or
434 (b) the governing body of the city or town if the premises are located in an
435 incorporated city or a town.
436 [(31)] (34) "Manufacture" means to distill, brew, rectify, mix, compound, process,
437 ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
438 others.
439 [(32)] (35) "Member" means [a person] an individual who, after paying regular dues,
440 has full privileges of [a] an equity club licensee or fraternal club [under this title] licensee, as
441 defined in Section 32A-5-101 .
442 [(33)] (36) (a) "Military installation" means a base, air field, camp, post, station, yard,
443 center, or homeport facility for a ship:
444 (i) (A) under the control of the United States Department of Defense; or
445 (B) of the National Guard;
446 (ii) that is located within the state; and
447 (iii) including a leased facility.
448 (b) "Military installation" does not include a facility used primarily for:
449 (i) civil works;

450 (ii) a rivers and harbors project; or
451 (iii) a flood control project.
452 [(34)] (37) "Minor" means an individual under the age of 21 years.
453 [(35)] (38) "Nude," "nudity," or "state of nudity" means:
454 (a) the appearance of:
455 (i) the nipple or areola of a female human breast;
456 (ii) a human genital;
457 (iii) a human pubic area; or
458 (iv) a human anus; or
459 (b) a state of dress that fails to opaquely cover:
460 (i) the nipple or areola of a female human breast;
461 (ii) a human genital;
462 (iii) a human pubic area; or
463 (iv) a human anus.
464 [(36)] (39) "Outlet" means a location other than a state store or package agency where
465 an alcoholic beverage is sold pursuant to a license [issued] granted by the commission.
466 [(37)] (40) "Package" means any of the following containing liquor:
467 (a) a container;
468 (b) a bottle;
469 (c) a vessel; or
470 (d) other receptacle.
471 [(38)] (41) "Package agency" means a retail liquor location operated:
472 (a) under a contractual agreement with the department; and
473 (b) by a person:
474 (i) other than the state; and
475 (ii) who is authorized by the commission to sell package liquor for consumption off
476 the premises of the package agency.
477 [(39)] (42) "Package agent" means a person permitted by the commission to operate a

478 package agency pursuant to a contractual agreement with the department to sell liquor from
479 premises that the package agent shall provide and maintain.
480 [(40)] (43) "Permittee" means a person issued a permit by the commission to perform
481 an act or exercise a privilege as specifically granted in the permit.
482 [(41)] (44) "Person" means an individual, partnership, firm, corporation, limited
483 liability company, association, business trust, or other form of business enterprise, including a
484 receiver or trustee, and the plural as well as the singular number, unless the intent to give a
485 more limited meaning is disclosed by the context.
486 [(42)] (45) "Premises" means a building, enclosure, room, or equipment used in
487 connection with the sale, storage, service, manufacture, distribution, or consumption of an
488 alcoholic product, unless otherwise defined in this title or in the rules adopted by the
489 commission.
490 [(43)] (46) "Prescription" means a writing in legal form, signed by a physician or
491 dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
492 [(44)] (47) (a) "Privately hosted event" or "private social function" means a specific
493 social, business, or recreational event:
494 (i) for which an entire room, area, or hall is leased or rented in advance by an
495 identified group; and
496 (ii) that is limited in attendance to people who are specifically designated and their
497 guests.
498 (b) "Privately hosted event" and "private social function" does not include an event to
499 which the general public is invited, whether for an admission fee or not.
500 [(45)] (48) (a) "Proof of age" means:
501 (i) an identification card;
502 (ii) an identification that:
503 (A) is substantially similar to an identification card;
504 (B) is issued in accordance with the laws of a state other than Utah in which the
505 identification is issued;

506 (C) includes date of birth; and
507 (D) has a picture affixed;
508 (iii) a valid driver license certificate that:
509 (A) includes date of birth;
510 (B) has a picture affixed; and
511 (C) is issued:
512 (I) under Title 53, Chapter 3, Uniform Driver License Act; or
513 (II) in accordance with the laws of the state in which it is issued;
514 (iv) a military identification card that:
515 (A) includes date of birth; and
516 (B) has a picture affixed; or
517 (v) a valid passport.
518 (b) "Proof of age" does not include a driving privilege card issued in accordance with
519 Section 53-3-207 .
520 [(46)] (49) (a) "Public building" means a building or permanent structure owned or
521 leased by the state, a county, or local government entity that is used for:
522 (i) public education;
523 (ii) transacting public business; or
524 (iii) regularly conducting government activities.
525 (b) "Public building" does not mean or refer to a building owned by the state or a
526 county or local government entity when the building is used by a person, in whole or in part,
527 for a proprietary function.
528 [(47)] (50) "Representative" means an individual who is compensated by salary,
529 commission, or other means for representing and selling an alcoholic beverage product of a
530 manufacturer, supplier, or importer of liquor including:
531 (a) wine;
532 (b) heavy beer; or
533 (c) [on or after October 1, 2008,] a flavored malt beverage.

534 [(48)] (51) "Residence" means a person's principal place of abode within Utah.
535 (52) "Resident," in relation to a resort, is as defined in Section 32A-4a-102 .
536 (53) "Resort" is as defined in Section 32A-4a-102 .
537 [(49)] (54) "Restaurant" means a business establishment:
538 (a) where a variety of foods [is] are prepared and complete meals are served to the
539 general public;
540 (b) located on a premises having adequate culinary fixtures for food preparation and
541 dining accommodations; and
542 (c) that is engaged primarily in serving meals to the general public.
543 [(50)] (55) "Retailer" means a person engaged in the sale or distribution of an
544 alcoholic beverage to a consumer.
545 [(51)] (56) (a) "Sample" includes:
546 (i) a department sample; and
547 (ii) an industry representative sample.
548 (b) "Department sample" means liquor that is placed in the possession of the
549 department for testing, analysis, and sampling including:
550 (i) wine;
551 (ii) heavy beer; or
552 (iii) [on or after October 1, 2008,] a flavored malt beverage.
553 (c) "Industry representative sample" means liquor that is placed in the possession of
554 the department:
555 (i) for testing, analysis, and sampling by a local industry representative on the
556 premises of the department to educate the local industry representative of the quality and
557 characteristics of the product; and
558 (ii) including:
559 (A) wine;
560 (B) heavy beer; or
561 (C) [on or after October 1, 2008,] a flavored malt beverage.

562 [(52)] (57) (a) "School" means a building used primarily for the general education of
563 minors.
564 (b) "School" does not include:
565 (i) a nursery school;
566 (ii) an infant day care center; or
567 (iii) a trade or technical school.
568 [(53)] (58) "Sell," "sale," and "to sell" means a transaction, exchange, or barter
569 whereby, for consideration, an alcoholic beverage is either directly or indirectly transferred,
570 solicited, ordered, delivered for value, or by a means or under a pretext is promised or
571 obtained, whether done by a person as a principal, proprietor, or as an agent, servant, or
572 employee, unless otherwise defined in this title or the rules made by the commission.
573 [(54)] (59) "Seminude," "seminudity," or "state of seminudity" means a state of dress
574 in which opaque clothing covers no more than:
575 (a) the nipple and areola of the female human breast in a shape and color other than
576 the natural shape and color of the nipple and areola; and
577 (b) the human genitals, pubic area, and anus:
578 (i) with no less than the following at its widest point:
579 (A) four inches coverage width in the front of the human body; and
580 (B) five inches coverage width in the back of the human body; and
581 (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
582 [(55)] (60) "Sexually oriented entertainer" means a person who while in a state of
583 seminudity appears at or performs:
584 (a) for the entertainment of one or more patrons;
585 (b) on the premises of:
586 (i) a [class D private] social club licensee as defined in [Subsection] Section
587 32A-5-101 [(3)]; or
588 (ii) a tavern;
589 (c) on behalf of or at the request of the licensee described in Subsection [(55)] (60)(b);

590 (d) on a contractual or voluntary basis; and
591 (e) whether or not the person is designated:
592 (i) an employee of the licensee described in Subsection [(55)] (60)(b);
593 (ii) an independent contractor of the licensee described in Subsection [(55)] (60)(b);
594 (iii) an agent of the licensee described in Subsection [(55)] (60)(b); or
595 (iv) otherwise of the licensee described in Subsection [(55)] (60)(b).
596 [(56)] (61) "Small brewer" means a brewer who manufactures less than 60,000 barrels
597 of beer, heavy beer, and flavored malt beverages per year.
598 [(57)] (62) (a) "Spirituous liquor" means liquor that is distilled.
599 (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
600 U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
601 [(58) (a) "State label" means the official label designated by the commission affixed to
602 a liquor container sold in the state.]
603 [(b) "State label" includes the department identification mark and inventory control
604 number.]
605 [(59)] (63) (a) "State store" means a facility for the sale of package liquor:
606 (i) located on premises owned or leased by the state; and
607 (ii) operated by a state employee.
608 (b) "State store" does not apply to a:
609 (i) licensee;
610 (ii) permittee; or
611 (iii) package agency.
612 (64) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4,
613 Part 3, Limited Restaurant Licenses:
614 (a) "Storage area" means an area on the premises of a restaurant where a licensee
615 stores an alcoholic beverage or alcoholic product.
616 (b) "Store" means to place or maintain in a location an alcoholic beverage or alcoholic
617 product from which a person draws to prepare an alcoholic beverage for service to a patron of

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

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

674 (ii) controlling liquor merchandise inventory including:
675 (A) listing and delisting [products] a product;
676 (B) the procedures for testing a new [products] product;
677 (C) purchasing policy;
678 (D) turnover requirements for a regularly coded [products] product to be continued;
679 and
680 (E) the disposition of discontinued, distressed, or unsaleable merchandise; and
681 (iii) determining the location of a state [stores, package agencies, and outlets] store,
682 package agency, or outlet;
683 (d) decide within the limits and under the conditions imposed by this title, the number
684 and location of state stores, package agencies, and outlets established in the state;
685 (e) issue, grant, deny, suspend, revoke, or not renew the following permits, licenses,
686 certificates of approval, and package agencies for the purchase, sale, storage, service,
687 manufacture, distribution, and consumption of an alcoholic [products] product:
688 (i) a package [agencies] agency;
689 (ii) a restaurant [licenses] license;
690 (iii) an airport lounge [licenses] license;
691 (iv) a limited restaurant [licenses] license;
692 (v) an on-premise banquet [licenses] license;
693 (vi) a resort license, under which four or more sublicenses may be included;
694 [(vi) private] (vii) a club [licenses] license;
695 [(vii)] (viii) an on-premise beer retailer [licenses] license;
696 [(viii)] (ix) a temporary special event beer [permits] permit;
697 [(ix)] (x) a special use [permits] permit;
698 [(x)] (xi) a single event [permits] permit;
699 [(xi)] (xii) a manufacturing [licenses] license;
700 [(xii)] (xiii) a liquor warehousing [licenses] license;
701 [(xiii)] (xiv) a beer wholesaling [licenses] license; and

702 [(xiv)] (xv) an out-of-state brewer [certificates] certificate of approval;
703 (f) fix prices at which [liquors are] liquor is sold that are the same at all state stores,
704 package agencies, and outlets;
705 (g) issue and distribute price lists showing the price to be paid by [purchasers] a
706 purchaser for each class, variety, or brand of liquor kept for sale by the department;
707 (h) (i) require the director to follow sound management principles; and
708 (ii) require periodic reporting from the director to ensure that:
709 (A) sound management principles are being followed; and
710 (B) policies established by the commission are being observed;
711 (i) (i) receive, consider, and act in a timely manner upon [all] the reports,
712 recommendations, and matters submitted by the director to the commission; and
713 (ii) do [all] the things necessary to support the department in properly performing the
714 department's duties and responsibilities;
715 (j) obtain temporarily and for special purposes the services of [experts and persons] an
716 expert or person engaged in the practice of a profession or who possess any needed skills,
717 talents, or abilities if:
718 (i) considered expedient; and
719 (ii) approved by the governor;
720 (k) prescribe the duties of a departmental [officials] official authorized to assist the
721 commission in issuing [permits, licenses, certificates of approval, and package agencies] a
722 permit, license, certificate of approval, or package agency under this title;
723 (l) prescribe, consistent with this title, the fees payable for:
724 (i) [permits, licenses, certificates of approval, and package agencies] a permit, license,
725 certificate of approval, or package agency issued under this title; or
726 (ii) anything done or permitted to be done under this title;
727 (m) prescribe the conduct, management, and equipment of [any] premises upon which
728 an alcoholic [beverages] beverage may be sold, consumed, served, or stored;
729 (n) make rules governing the credit terms of beer sales to retailers within the state;

730 (o) require that each of the following, where required in this title, display in a
731 prominent place a sign in large letters stating: "Warning: Driving under the influence of
732 alcohol or drugs is a serious crime that is prosecuted aggressively in Utah.":
733 (i) a state store;
734 (ii) a permittee;
735 (iii) a licensee; and
736 (iv) a package agency; and
737 (p) subject to Subsection (4) and as provided in this title, impose fines against:
738 (i) a permittee, licensee, certificate holder, or package agent described in Subsection
739 (1)(e); or
740 (ii) [any] an officer, employee, or agent of a permittee, licensee, certificate holder, or
741 package agent described in Subsection (1)(p)(i).
742 (2) The power of the commission to do the following is plenary, except as otherwise
743 provided by this title, and not subject to review:
744 (a) establish a state [stores] store;
745 (b) create a package [agencies] agency;
746 (c) grant authority to operate a package [agencies] agency; and
747 (d) grant or deny [permits, licenses, and certificates] a permit, license, or certificate of
748 approval.
749 (3) The commission may appoint a qualified hearing [examiners] examiner to conduct
750 [any] a suspension or revocation [hearings] hearing required by law.
751 (4) (a) In [any] a case [where] when the commission is given the power to suspend
752 [any ] a permit, license, certificate of approval, or package agency the commission may
753 impose a fine in addition to or in lieu of suspension.
754 (b) [Fines] A fine imposed may not exceed $25,000 in the aggregate for:
755 (i) [any] a single Notice of Agency Action; or
756 (ii) a single action against a package agency.
757 (c) The commission shall promulgate, by rule, a schedule setting forth a range of fines

758 for each violation.
759 Section 6. Section 32A-1-109 is amended to read:
760 32A-1-109. Powers and duties of the director.
761 Subject to the powers and responsibilities vested in the commission by this title the
762 director shall:
763 (1) prepare and propose to the commission general policies, directives, rules, and
764 procedures governing the administrative activities of the department, and may submit other
765 recommendations to the commission as the director considers in the interest of [its] the
766 commission's or the department's business;
767 (2) within the general policies, directives, rules, and procedures of the commission[,]:
768 (a) provide day-to-day direction, coordination, and delegation of responsibilities in the
769 administrative activities of the department's business; and [promulgate]
770 (b) make internal department policies, directives, rules, and procedures relating to
771 department personnel matters, and the day-to-day operation of the department consistent with
772 those of the commission;
773 (3) (a) appoint or employ personnel as considered necessary in the administration of
774 this title [and];
775 (b) prescribe the conditions of [their] employment[, define their] for the personnel
776 described in Subsection (3)(a);
777 (c) define the respective duties and powers[, fix their] for the personnel described in
778 Subsection (3)(a);
779 (d) fix the remuneration in accordance with Title 67, Chapter 19, Utah State Personnel
780 Management Act, for the personnel described in Subsection (3)(a); and
781 (e) designate those employees required to give [bonds] a bond and specify the bond
782 amounts;
783 (4) establish and secure adherence to a system of reports, controls, and performance in
784 [all] matters relating to personnel, security, department property management, and operation of
785 [department offices, warehouses, state stores, package agencies, and licensees;]:

786 (a) a department office;
787 (b) a warehouse;
788 (c) a state store;
789 (d) a package agency; and
790 (e) a licensee;
791 (5) within the policies, directives, rules, and procedures approved by the commission
792 and provisions of law, buy, import, keep for sale, sell and control the sale, storage, service,
793 transportation, and delivery of an alcoholic [products] product;
794 (6) prepare for commission approval:
795 (a) recommendations regarding the location, establishment, relocation, and closure of
796 [state stores and package agencies] a state store or package agency;
797 (b) recommendations regarding the issuance, suspension, nonrenewal, and revocation
798 of [licenses and permits] a license or permit;
799 (c) an annual [budgets] budget, proposed legislation, and reports as required by law
800 and sound business principles;
801 (d) plans for reorganizing divisions of the department and [their] the functions of the
802 divisions;
803 (e) manuals containing [all] commission and department policies, directives, rules,
804 and procedures;
805 (f) an inventory control system;
806 (g) any other [reports and recommendations] report or recommendation as may be
807 requested by the commission;
808 (h) rules governing the credit terms of the sale of beer [sales] to a beer retailer
809 [licensees] licensee;
810 (i) rules governing the calibration, maintenance, and regulation of a calibrated metered
811 dispensing [systems] system;
812 (j) rules governing the posting of a list of types and brand names of liquor [being]
813 served through a calibrated metered dispensing [systems] system;

814 (k) price lists issued and distributed showing the price to be paid for each class,
815 variety, or brand of liquor kept for sale at a state [stores, package agencies, and outlets] store,
816 package agency, or outlet;
817 (l) directives prescribing the books of account kept by the department and by a state
818 [stores, package agencies, and outlets;] store, package agency, or outlet; and
819 [(m) an official state label and the manner in which the label shall be affixed to every
820 package of liquor sold under this title; and]
821 [(n)] (m) a policy prescribing the manner of giving and serving [notices] a notice
822 required by this title or rules made under this title;
823 (7) make available through the department to any person, upon request, a copy of
824 [any] a policy or directive [promulgated] made by the director;
825 [(8) adopt internal departmental policies, directives, rules, and procedures relating to
826 department personnel matters and the day-to-day operation of the department that are
827 consistent with those of the commission;]
828 [(9)] (8) keep a current copy of [the manuals containing] a manual that contains the
829 rules and policies of the department and commission available for public inspection;
830 [(10)] (9) (a) after consultation with the governor, determine whether an alcoholic
831 [products] product should not be sold, offered for sale, or otherwise furnished in an area of the
832 state during a period of emergency that is proclaimed by the governor to exist in that area; and
833 (b) issue [any] a necessary public [announcements and directives] announcement or
834 directive with respect to the determination described in Subsection [(10)] (9)(a); and
835 [(11)] (10) perform other duties required by the commission and by law.
836 Section 7. Section 32A-1-115 is amended to read:
837 32A-1-115. Alcoholic Beverage Enforcement and Treatment Restricted Account
838 -- Distribution.
839 (1) As used in this section:
840 (a) "Account" means the Alcoholic Beverage Enforcement and Treatment Restricted
841 Account created in this section.

842 (b) "Alcohol-related offense" means:
843 (i) a violation of:
844 (A) Section 41-6a-502 ; or
845 (B) an ordinance that complies with the requirements of:
846 (I) Subsection 41-6a-510 (1); or
847 (II) Section 76-5-207 ; or
848 (ii) an offense involving the:
849 (A) illegal sale of alcohol;
850 (B) illegal distribution of alcohol;
851 (C) illegal transportation of alcohol;
852 (D) illegal possession of alcohol; or
853 (E) illegal consumption of alcohol.
854 (c) "Annual conviction time period" means the time period that:
855 (i) begins on July 1 and ends on June 30; and
856 (ii) immediately precedes the fiscal year for which an appropriation under this section
857 is made.
858 (d) "Coordinating council" means the Utah Substance Abuse and Anti-Violence
859 Coordinating Council created in Section 63M-7-301 .
860 (e) "Municipality" means:
861 (i) a city; or
862 (ii) a town.
863 (2) (a) There is created in the General Fund a restricted account called the "Alcoholic
864 Beverage Enforcement and Treatment Restricted Account."
865 (b) The account shall be funded from:
866 (i) amounts deposited by the state treasurer in accordance with Section 59-15-109 ;
867 (ii) any appropriations made to the account by the Legislature; and
868 (iii) interest described in Subsection (2)(c).
869 (c) Interest earned on the account shall be deposited into the account.

870 (d) (i) Consistent with the policies provided in Subsection 32A-1-104 (4)(b), the
871 revenues in the account shall be used for statewide public purposes including promoting the
872 reduction of the harmful effects of over consumption of alcoholic beverages by adults and
873 alcohol consumption by minors by funding exclusively programs or projects related to
874 prevention, treatment, detection, prosecution, and control of violations of this title and other
875 offenses in which alcohol is a contributing factor except as provided in Subsection (2)(d)(ii).
876 (ii) The portion distributed under this section to counties may also be used for the
877 confinement or treatment of persons arrested for or convicted of offenses in which alcohol is a
878 contributing factor.
879 (iii) [Any] A municipality or county entitled to receive [funds] monies shall use the
880 [funds] monies exclusively as required by this Subsection (2)(d).
881 (iv) The appropriations provided for under Subsection (3) are:
882 (A) intended to supplement the budget of the appropriate agencies of each
883 municipality and county within the state to enable the municipalities and counties to more
884 effectively fund the programs and projects described in this Subsection (2)(d); and
885 (B) not intended to replace [funds] monies that would otherwise be allocated for the
886 programs and projects in this Subsection (2)(d).
887 (3) (a) The revenues deposited into the account shall be distributed to municipalities
888 and counties:
889 (i) to the extent appropriated by the Legislature except that the Legislature shall
890 appropriate each fiscal year an amount equal to at least the amount deposited in the account in
891 accordance with Section 59-15-109 ; and
892 (ii) as provided in this Subsection (3).
893 (b) The amount appropriated from the account shall be distributed as follows:
894 (i) 25% to municipalities and counties based upon the percentage of the state
895 population residing in each municipality and county;
896 (ii) 30% to municipalities and counties based upon each municipality's and county's
897 percentage of the statewide convictions for all alcohol-related offenses;

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

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

954 counties only shall be determined with reference to the total population in the county,
955 including that of municipalities;
956 (f) a conviction occurs in the municipality or county that actually prosecutes the
957 offense to judgment; and
958 (g) in the case of a conviction based upon a guilty plea, the conviction is considered to
959 occur in the municipality or county that, except for the guilty plea, would have prosecuted the
960 offense.
961 (6) By not later than September 1 each year:
962 (a) the state court administrator shall certify to the State Tax Commission the number
963 of convictions obtained for alcohol-related offenses in each municipality or county in the state
964 during the annual conviction time period; and
965 (b) the coordinating council shall notify the State Tax Commission of any
966 municipality that does not have a law enforcement agency.
967 (7) By not later than December 1 of each year, the coordinating council shall notify
968 the State Tax Commission for the fiscal year of appropriation of:
969 (a) any municipality that may receive a distribution under Subsection (3)(c)(iii);
970 (b) any county that may receive a distribution allocated to a municipality described in
971 Subsection (3)(c)(ii);
972 (c) any municipality or county that may not receive a distribution because the
973 coordinating council has suspended the payment under Subsection (10)(a)(i); and
974 (d) any municipality or county that receives a distribution because the suspension of
975 payment has been cancelled under Subsection (10)(a)(ii).
976 (8) (a) By not later than January 1 of the fiscal year of appropriation, the State Tax
977 Commission shall annually distribute to each municipality and county the portion of the
978 appropriation that the municipality or county is eligible to receive under this section, except
979 for any municipality or county that the coordinating council notifies the State Tax
980 Commission in accordance with Subsection (7) may not receive a distribution in that fiscal
981 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.
987 (9) A municipality or county that receives any monies under this section during a
988 fiscal 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;
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
1030 monies 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;
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 :
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
1083 alleging that a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii) violated
1084 this title or 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
1091 an 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
1102 proceeding 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
1104 to 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
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
1129 by 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
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.
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,
1183 employee, 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
1200 in 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
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
1207 in 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
1211 rules 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
1220 is 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
1223 title 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:
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
1238 intent 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,
1243 health, 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
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
1297 may not report a violation of this title to the department more than eight business days after
1298 the day on which a nondepartment enforcement officer or agency completes an investigation
1299 that 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
1303 Subsections 32A-1-105 [(15)](18)(a)(i) through (vi) alleged by the report to have violated this
1304 title:
1305 (i) by no later than eight business days of the day on which the department receives
1306 the report described in Subsection (3)(a); and
1307 (ii) that the commission or department may initiate or maintain a disciplinary
1308 proceeding on the basis, in whole or in part, of the violation.
1309 (4) If the commission or department wants the right to initiate or maintain a
1310 disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged by
1311 report of a department compliance officer, the department shall notify a person listed in
1312 Subsections 32A-1-105 [(15)](18)(a)(i) through (vi) alleged by the report to have violated this
1313 title:
1314 (a) by no later than eight business days of the day on which the department
1315 compliance officer completes an investigation that finds a violation of this title; and
1316 (b) that the commission or department may initiate or maintain a disciplinary
1317 proceeding on the basis, in whole or in part, of the violation.

1318 (5) The notice described in Subsection (2), (3)(b), or (4) is not required with respect to
1319 a person listed in Subsection 32A-1-105 [(15)](18)(a)(vii).
1320 (6) (a) A notice required by Subsection (2), (3)(b), or (4) may be done orally, if after
1321 the oral notification the department provides written notification.
1322 (b) The written notification described in Subsection (6)(a) may be sent outside the
1323 time periods required by this section.
1324 (7) The department shall maintain a record of a notification required by Subsection
1325 (2), (3)(b), or (4) that includes:
1326 (a) the name of the person notified; and
1327 (b) the date of the notification.
1328 Section 10. Section 32A-1-304.5 is enacted to read:
1329 32A-1-304.5. Verification of proof of age by certain club licensees.
1330 (1) For purposes of this section, "applicable club licensee" means the following as
1331 defined in Section 32A-5-101 :
1332 (a) a dining club licensee; or
1333 (b) a social club licensee.
1334 (2) Notwithstanding any other provision of this part, an applicable club licensee shall
1335 require that a person authorized to sell or otherwise handle an alcoholic beverage or alcoholic
1336 product under the applicable club license verify proof of age as provided in this section.
1337 (3) A person described in Subsection (2) is required to verify proof of age under this
1338 section before an individual who appears to be 35 years of age or younger:
1339 (a) gains admittance to the premises of a social club licensee; or
1340 (b) procures an alcoholic beverage or alcoholic product on the premises of a dining
1341 club licensee.
1342 (4) To comply with Subsection (3), a person shall:
1343 (a) request the individual present proof of age; and
1344 (b) (i) verify the validity of the proof of age electronically under the verification
1345 program created in Subsection (5); or

1346 (ii) if the proof of age cannot be electronically verified as provided in Subsection
1347 (4)(b)(i), request that the individual comply with a process established by the commission by
1348 rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1349 (5) The commission shall establish by rule made in accordance with Title 63G,
1350 Chapter 3, Utah Administrative Rulemaking Act, an electronic verification program that
1351 includes the following:
1352 (a) the specifications for the technology used by the applicable club licensee to
1353 electronically verify proof of age, including that the technology display to the person described
1354 in Subsection (2) no more than the following for the individual who presents the proof of age:
1355 (i) the name;
1356 (ii) the age;
1357 (iii) the number assigned to the individual's proof of age by the issuing authority;
1358 (iv) the birth date;
1359 (v) the gender; and
1360 (vi) the status and expiration date of the individual's proof of age; and
1361 (b) the security measures that must be used by an applicable club licensee to ensure
1362 that information obtained under this section is:
1363 (i) used by the applicable club licensee only for purposes of verifying proof of age in
1364 accordance with this section; and
1365 (ii) retained by the applicable club licensee for seven days after the day on which the
1366 applicable club licensee obtains the information.
1367 (6) (a) An applicable club licensee may not disclose information obtained under this
1368 section except as provided under this title.
1369 (b) Information obtained under this section is considered a record for any purpose
1370 under Section 32A-5-107 .
1371 Section 11. Section 32A-1-603 is amended to read:
1372 32A-1-603. Sexually oriented entertainer.
1373 (1) Subject to the restrictions of this section, live entertainment is permitted on a

1374 premises or at an event regulated by the commission.
1375 (2) Notwithstanding Subsection (1), a licensee or permittee may not permit a person
1376 to:
1377 (a) appear or perform in a state of nudity;
1378 (b) perform or simulate an act of:
1379 (i) sexual intercourse;
1380 (ii) masturbation;
1381 (iii) sodomy;
1382 (iv) bestiality;
1383 (v) oral copulation;
1384 (vi) flagellation; or
1385 (vii) a sexual act that is prohibited by Utah law; or
1386 (c) touch, caress, or fondle the breast, buttocks, anus, or genitals.
1387 (3) A sexually oriented entertainer may perform in a state of seminudity:
1388 (a) only in:
1389 (i) a tavern; or [class D private club; and]
1390 (ii) a social club license premises; and
1391 (b) only if:
1392 (i) all windows, doors, and other apertures to the premises are darkened or otherwise
1393 constructed to prevent anyone outside the premises from seeing the performance; and
1394 (ii) the outside entrance doors of the premises remain unlocked.
1395 (4) A sexually oriented entertainer may perform only upon a stage or in a designated
1396 performance area that is:
1397 (a) approved by the commission in accordance with rules made by the commission in
1398 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1399 (b) configured so as to preclude a patron from:
1400 (i) touching the sexually oriented entertainer; or
1401 (ii) placing any money or object on or within the costume or the person of the sexually

1402 oriented entertainer; and
1403 (c) configured so as to preclude the sexually oriented entertainer from touching a
1404 patron.
1405 (5) A sexually oriented entertainer may not touch a patron:
1406 (a) during the sexually oriented entertainer's performance; or
1407 (b) while the sexually oriented entertainer is dressed in performance attire or costume.
1408 (6) A sexually oriented entertainer, while in the portion of the premises used by
1409 patrons, must be dressed in opaque clothing which covers and conceals the sexually oriented
1410 entertainer's performance attire or costume from the top of the breast to the knee.
1411 (7) A patron may not be on the stage or in the performance area while a sexually
1412 oriented entertainer is appearing or performing on the stage or in the performance area.
1413 (8) A patron may not:
1414 (a) touch a sexually oriented entertainer:
1415 (i) during the sexually oriented entertainer's performance; or
1416 (ii) while the sexually oriented entertainer is dressed in performance attire or costume;
1417 or
1418 (b) place money or any other object on or within the costume or the person of the
1419 sexually oriented entertainer.
1420 (9) A minor may not be on a premises described in Subsection (3) [when a sexually
1421 oriented entertainer is performing on the premises].
1422 (10) A person who appears or performs for the entertainment of patrons on a premises
1423 or at an event regulated by the commission that is not a tavern or [class D private club] social
1424 club licensee:
1425 (a) may not appear or perform in a state of nudity or a state of seminudity; and
1426 (b) may appear or perform in opaque clothing that completely covers the person's
1427 genitals, pubic area, and anus if the covering:
1428 (i) is not less than the following at its widest point:
1429 (A) four inches coverage width in the front of the human body; and

1430 (B) five inches coverage width in the back of the human body;
1431 (ii) does not taper to less than one inch wide at the narrowest point; and
1432 (iii) if covering a female, completely covers the breast below the top of the areola.
1433 Section 12. Section 32A-2-103 is amended to read:
1434 32A-2-103. Operational restrictions.
1435 (1) (a) Liquor may not be sold from a state store except in a sealed package. [The]
1436 (b) A sealed package may not be opened on the premises of [any] a state store.
1437 (2) (a) An officer, agent, clerk, or employee of a state store may not consume or allow
1438 to be consumed by any person [any] an alcoholic beverage on the premises of a state store.
1439 (b) Violation of this Subsection (2) is a class B misdemeanor.
1440 [(3) All liquor sold shall be in packages that are properly marked and labeled in
1441 accordance with the rules adopted under this title.]
1442 [(4)] (3) Liquor may not be sold except at prices fixed by the commission.
1443 [(5)] (4) Liquor may not be sold, delivered, or furnished to [any] a:
1444 (a) minor;
1445 (b) person actually, apparently, or obviously intoxicated;
1446 (c) known habitual drunkard; or
1447 (d) known interdicted person.
1448 [(6)] (5) Sale or delivery of liquor may not be made on or from the premises of [any] a
1449 state store, nor may [any] a state store be kept open for the sale of liquor:
1450 (a) on Sunday;
1451 (b) on [any] a state or federal legal holiday; or
1452 [(c) on any day on which any regular general election, regular primary election, or
1453 statewide special election is held;]
1454 [(d) on any day on which any municipal, local district, special service district, or
1455 school election is held, but only within the boundaries of the municipality, local district,
1456 special service district, or school district holding the election and only if the municipality,
1457 local district, special service district or school district in which the election is being held

1458 notifies the department at least 30 days prior to the date of the election; or]
1459 [(e)] (c) except on days and during hours as the commission may direct by rule or
1460 order.
1461 [(7) Each] (6) A state store shall display in a prominent place in the store a sign in
1462 large letters stating: "Warning: Driving under the influence of alcohol or drugs is a serious
1463 crime that is prosecuted aggressively in Utah."
1464 [(8)] (7) (a) A minor may not be admitted into, or be on the premises of a state store
1465 unless accompanied by a person who is:
1466 (i) 21 years of age or older; and
1467 (ii) the minor's parent, legal guardian, or spouse.
1468 (b) [Any] A state store employee that has reason to believe that a person who is on the
1469 premises of a state store is under the age of 21 and is not accompanied by a person described
1470 in Subsection [(8)] (7)(a) may:
1471 (i) ask the suspected minor for proof of age;
1472 (ii) ask the person who [accompanied] accompanies the suspected minor for proof of
1473 age; and
1474 (iii) ask the suspected minor or the person who [accompanied] accompanies the
1475 suspected minor for proof of parental, guardianship, or spousal relationship.
1476 (c) [Any] A state store employee shall refuse to sell liquor to the suspected minor and
1477 to the person who [accompanied] accompanies the suspected minor into the state store if [they
1478 fail] the suspected minor or person fails to provide [any of the] information specified in
1479 Subsection [(8)] (7)(b).
1480 (d) [Any] A state store employee shall require [the] a suspected minor and the person
1481 who [accompanied] accompanies the suspected minor into the state store to immediately leave
1482 the premises of the state store if [they fail] the suspected minor or person fails to provide [any
1483 of the] information specified in Subsection [(8)] (7)(b).
1484 Section 13. Section 32A-3-106 is amended to read:
1485 32A-3-106. Operational restrictions.

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

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

1542 [(A) on a day on which is held:]
1543 [(I) a regular general election;]
1544 [(II) a regular primary election; or]
1545 [(III) a statewide special election; or]
1546 [(B) on a day on which is held a municipal, local district, special service district, or
1547 school election if:]
1548 [(I) the package agency is within the boundaries of the municipality, local district,
1549 special service district, or school district holding the election; and]
1550 [(II) the municipality, local district, special service district, or school district in which
1551 the election is held notifies the department at least 30 days before the day on which the
1552 election is held.]
1553 [(ii) This Subsection (10)(c) applies to a package agency that contracts with the
1554 department to sell liquor in a manner similar to a state store, whether or not the operator of the
1555 package agency has a source of income that is not from the sale of liquor.]
1556 [(iii) The commission may by rule made in accordance with Title 63G, Chapter 3,
1557 Utah Administrative Rulemaking Act, define what constitutes a package agency that sells
1558 liquor "in a manner similar to a state store."]
1559 (c) (i) Subsection (9)(a)(i) does not apply to a package agency held by a resort licensee
1560 if the package agency that contracts with the department to sell liquor does not sell liquor in a
1561 manner similar to a state store.
1562 (ii) The commission may by rule made in accordance with Title 63G, Chapter 3, Utah
1563 Administrative Rulemaking Act, define what constitutes a package agency that sells liquor "in
1564 a manner similar to a state store."
1565 [(11)] (10) The package agency certificate issued by the commission shall be
1566 permanently posted in a conspicuous place in the package agency.
1567 [(12) Each] (11) A package agent shall display in a prominent place in the package
1568 agency a sign in large letters stating: "Warning: Driving under the influence of alcohol or
1569 drugs is a serious crime that is prosecuted aggressively in Utah."

1570 [(13)] (12) (a) A package agency may not close or cease operation for a period longer
1571 than 72 hours, unless:
1572 (i) the package agency notifies the department in writing at least seven days before the
1573 closing; and
1574 (ii) the closure or cessation of operation is first approved by the department.
1575 (b) Notwithstanding Subsection [(13)] (12)(a), in the case of emergency closure,
1576 immediate notice of closure shall be made to the department by telephone.
1577 (c) (i) The department may authorize a closure or cessation of operation for a period
1578 not to exceed 60 days.
1579 (ii) The department may extend the initial period an additional 30 days upon written
1580 request of the package agency and upon a showing of good cause.
1581 (iii) A closure or cessation of operation may not exceed a total of 90 days without
1582 commission approval.
1583 (d) The notice required by Subsection [(13)] (12)(a) shall include:
1584 (i) the dates of closure or cessation of operation;
1585 (ii) the reason for the closure or cessation of operation; and
1586 (iii) the date on which the agency will reopen or resume operation.
1587 (e) Failure of the agency to provide notice and to obtain department authorization
1588 prior to closure or cessation of operation shall result in an automatic termination of the
1589 package agency contract effective immediately.
1590 (f) Failure of the agency to reopen or resume operation by the approved date shall
1591 result in an automatic termination of the package agency contract effective on that date.
1592 [(14)] (13) Liquor may not be stored or sold in any place other than as designated in
1593 the package agent's application, unless the package agent first applies for and receives
1594 approval from the department for a change of location within the package agency premises.
1595 [(15)] (14) (a) Except to the extent authorized by commission rule, a minor may not be
1596 admitted into, or be on the premises of a package agency unless accompanied by a person who
1597 is:

1598 (i) 21 years of age or older; and
1599 (ii) the minor's parent, legal guardian, or spouse.
1600 (b) [Any] A package agent or employee of the package agency that has reason to
1601 believe that a person who is on the premises of a package agency store is under the age of 21
1602 and is not accompanied by a person described in Subsection [(15)] (14)(a) may:
1603 (i) ask the suspected minor for proof of age;
1604 (ii) ask the person who [accompanied] accompanies the suspected minor for proof of
1605 age; and
1606 (iii) ask the suspected minor or the person who [accompanied] accompanies the
1607 suspected minor for proof of parental, guardianship, or spousal relationship.
1608 (c) [Any] A package agent or employee of a package agency shall refuse to sell liquor
1609 to the suspected minor and to the person who [accompanied] accompanies the suspected
1610 minor into the package agency if [they fail] the minor or person fails to provide any [of the]
1611 information specified in Subsection [(15)] (14)(b).
1612 (d) [Any] A package agent or employee of a package agency shall require the
1613 suspected minor and the person who [accompanied] accompanies the suspected minor into the
1614 package agency to immediately leave the premises of the package agency if [they fail] the
1615 minor or person fails to provide [any of the] information specified in Subsection [(15)]
1616 (14)(b).
1617 [(16)] (15) A package agency may not transfer its operations from one location to
1618 another location without prior written approval of the commission.
1619 [(17)] (16) (a) A person, having been granted a package agency, may not sell, transfer,
1620 assign, exchange, barter, give, or attempt in any way to dispose of the package agency to any
1621 other person, whether for monetary gain or not.
1622 (b) A package agency has no monetary value for the purpose of any type of
1623 disposition.
1624 Section 14. Section 32A-4-101 is amended to read:
1625 32A-4-101. Commission's power to grant licenses -- Limitations.

1626 (1) Before a restaurant may sell or allow the consumption of liquor on its premises, it
1627 shall first obtain a license from the commission as provided in this part.
1628 (2) The commission may [issue] grant restaurant liquor licenses for the purpose of
1629 establishing restaurant liquor outlets at places and in numbers it considers proper for the
1630 storage, sale, and consumption of liquor on premises operated as public restaurants.
1631 (3) (a) Subject to the other provisions of this Subsection (3) and Subsection
1632 32A-4a-201 (2), the total number of restaurant liquor licenses may not at any time aggregate
1633 more than that number determined by dividing the population of the state by 5,200.
1634 (b) For purposes of this Subsection (3), population shall be determined by:
1635 (i) the most recent United States decennial or special census; or
1636 (ii) another population determination made by the United States or state governments.
1637 (c) (i) The commission may [issue] grant seasonal restaurant liquor licenses
1638 established in areas the commission considers necessary.
1639 (ii) A seasonal restaurant liquor license shall be for a period of six consecutive
1640 months.
1641 (iii) A restaurant liquor license [issued] granted for operation during a summer time
1642 period is known as a "Seasonal A" restaurant liquor license. The period of operation for a
1643 "Seasonal A" restaurant liquor license shall:
1644 (A) begin on May 1; and
1645 (B) end on October 31.
1646 (iv) A restaurant liquor license [issued] granted for operation during a winter time
1647 period is known as a "Seasonal B" restaurant liquor license. The period of operation for a
1648 "Seasonal B" restaurant liquor license shall:
1649 (A) begin on November 1; and
1650 (B) end on April 30.
1651 (v) In determining the number of restaurant liquor licenses that the commission may
1652 issue under this section:
1653 (A) a seasonal license is counted as [1/2] one-half of one restaurant liquor license; and

1654 (B) each "Seasonal A" license shall be paired with a "Seasonal B" license.
1655 (d) (i) If the location, design, and construction of a hotel may require more than one
1656 restaurant liquor sales location within the hotel to serve the public convenience, the
1657 commission may authorize the sale of liquor at as many as three restaurant locations within the
1658 hotel under one license if:
1659 (A) the hotel has a minimum of 150 guest rooms; and
1660 (B) all locations under the license are:
1661 (I) within the same hotel facility; and
1662 (II) on premises that are managed or operated and owned or leased by the licensee.
1663 (ii) A facility other than a hotel shall have a separate restaurant liquor license for each
1664 restaurant where liquor is sold.
1665 (4) (a) Except as otherwise provided in this Subsection (4)[(b), (c), or (d)], the
1666 premises of a restaurant liquor license may not be established:
1667 (i) within 600 feet of a community location, as measured by the method in Subsection
1668 (4)[(e)](f);
1669 (ii) within 200 feet of a community location, measured in a straight line from the
1670 nearest entrance of the proposed outlet to the nearest property boundary of the community
1671 location.
1672 (b) With respect to the establishment of a restaurant liquor license, the commission
1673 may authorize a variance to reduce the proximity requirement of Subsection (4)(a)(i) if:
1674 (i) the local authority grants its written consent to the variance;
1675 (ii) the commission finds that alternative locations for establishing a restaurant liquor
1676 license in the community are limited;
1677 (iii) a public hearing is held in the city, town, or county, and where practical in the
1678 neighborhood concerned;
1679 (iv) after giving full consideration to all of the attending circumstances and the
1680 policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
1681 establishing the restaurant liquor license would not be detrimental to the public health, peace,

1682 safety, and welfare of the community; and
1683 (v) (A) the community location governing authority gives its written consent to the
1684 variance; or
1685 (B) when written consent is not given by the community location governing authority,
1686 the commission finds that the applicant has established that:
1687 (I) there is substantial unmet public demand to consume alcohol in a public setting
1688 within the geographic boundary of the local authority in which the restaurant is to be located;
1689 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1690 described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a restaurant
1691 liquor license; and
1692 (III) there is no reasonably viable alternative location within the geographic boundary
1693 of the local authority in which the restaurant is to be located for establishing a restaurant
1694 liquor license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
1695 (c) With respect to the establishment of a restaurant liquor license, the commission
1696 may authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
1697 (i) the community location at issue is:
1698 (A) a public library; or
1699 (B) a public park;
1700 (ii) the local authority grants its written consent to the variance;
1701 (iii) the commission finds that alternative locations for establishing a restaurant liquor
1702 license in the community are limited;
1703 (iv) a public hearing is held in the city, town, or county, and where practical in the
1704 neighborhood concerned;
1705 (v) after giving full consideration to all of the attending circumstances and the policies
1706 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
1707 restaurant liquor license would not be detrimental to the public health, peace, safety, and
1708 welfare of the community; and
1709 (vi) (A) the community location governing authority gives its written consent to the

1710 variance; or
1711 (B) when written consent is not given by the community location governing authority,
1712 the commission finds that the applicant has established that:
1713 (I) there is substantial unmet public demand to consume alcohol in a public setting
1714 within the geographic boundary of the local authority in which the restaurant is to be located;
1715 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
1716 described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a restaurant
1717 liquor license; and
1718 (III) there is no reasonably viable alternative location within the geographic boundary
1719 of the local authority in which the restaurant is to be located for establishing a restaurant
1720 liquor license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
1721 (d) With respect to the premises of a restaurant liquor license [issued] granted by the
1722 commission that undergoes a change of ownership, the commission may waive or vary the
1723 proximity requirements of Subsection (4)(a) in considering whether to grant a restaurant liquor
1724 license to the new owner of the premises if:
1725 (i) (A) the premises previously received a variance reducing the proximity requirement
1726 of Subsection (4)(a)(i); or
1727 (B) the premises received a variance reducing the proximity requirement of Subsection
1728 (4)(a)(ii) on or before May 4, 2008; or
1729 (ii) a variance from proximity requirements was otherwise allowed under this title.
1730 (e) With respect to the premises of a restaurant liquor license granted by the
1731 commission that undergoes a change of ownership, the commission shall waive or vary the
1732 proximity requirements of Subsection (4)(a) in considering whether to grant a restaurant liquor
1733 license to the new owner of the premises if:
1734 (i) when a restaurant liquor license was granted to a previous owner, the premises met
1735 the proximity requirements of Subsection (4)(a);
1736 (ii) the premises has had a restaurant liquor license at all times since the restaurant
1737 liquor license described in Subsection (4)(e)(i) was granted without a variance; and

1738 (iii) the community location located within the proximity requirements of Subsection
1739 (4)(a) after the day on which the restaurant liquor license described in Subsection (4)(e)(i) was
1740 granted.
1741 [(e)] (f) The 600 foot limitation described in Subsection (4)(a)(i) is measured from the
1742 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to
1743 the community location.
1744 (5) (a) Nothing in this section prevents the commission from considering the
1745 proximity of any educational, religious, and recreational facility, or any other relevant factor in
1746 reaching a decision on a proposed location.
1747 (b) For purposes of this Subsection (5), "educational facility" includes:
1748 (i) a nursery school;
1749 (ii) an infant day care center; and
1750 (iii) a trade and technical school.
1751 Section 15. Section 32A-4-102 is amended to read:
1752 32A-4-102. Application and renewal requirements.
1753 (1) A person seeking a restaurant liquor license under this part shall file a written
1754 application with the department, in a form prescribed by the department. It shall be
1755 accompanied by:
1756 (a) a nonrefundable $250 application fee;
1757 (b) an initial license fee of $1,750, which is refundable if a license is not granted;
1758 (c) written consent of the local authority;
1759 (d) a copy of the applicant's current business license;
1760 (e) evidence of proximity to any community location, with proximity requirements
1761 being governed by Section 32A-4-101 ;
1762 (f) a bond as specified by Section 32A-4-105 ;
1763 (g) a floor plan of the restaurant, including consumption areas and the area where the
1764 applicant proposes to keep, store, and sell liquor;
1765 (h) evidence that the restaurant is carrying public liability insurance in an amount and

1766 form satisfactory to the department;
1767 (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
1768 [$500,000] $1,000,000 per occurrence and [$1,000,000] $2,000,000 in the aggregate;
1769 (j) a signed consent form stating that the restaurant will permit any authorized
1770 representative of the commission, department, or any law enforcement officer unrestricted
1771 right to enter the restaurant;
1772 (k) in the case of an applicant that is a partnership, corporation, or limited liability
1773 company, proper verification evidencing that the person or persons signing the restaurant
1774 application are authorized to so act on behalf of the partnership, corporation, or limited
1775 liability company; and
1776 (l) any other information the commission or department may require.
1777 (2) (a) [All] A restaurant liquor [licenses expire] license expires on October 31 of each
1778 year.
1779 (b) A person desiring to renew the person's restaurant liquor license shall by no later
1780 than September 30 submit:
1781 (i) a completed renewal application to the department; and
1782 (ii) a renewal fee in the following amount:
1783 Gross Cost of Liquor in Previous License Year for the Licensee Renewal Fee
1784 under $5,000 $750
1785 equals or exceeds $5,000 but less than $10,000 $900
1786 equals or exceeds $10,000 but less than $25,000 $1,250
1787 equals or exceeds $25,000 $1,500
1788 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
1789 the license effective on the date the existing license expires.
1790 (d) A renewal application shall be in a form as prescribed by the department.
1791 (3) To ensure compliance with Subsection 32A-4-106 (25), the commission may
1792 suspend or revoke a restaurant liquor license if the restaurant liquor licensee does not
1793 immediately notify the department of any change in:

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

1822 of a primary spirituous liquor;
1823 (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
1824 (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
1825 on the floor plan provided to the department; and
1826 (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
1827 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
1828 system if used:
1829 (i) as a flavoring on a dessert; and
1830 (ii) in the preparation of a flaming food dish, drink, or dessert;
1831 (c) a restaurant patron may have no more than 2.5 ounces of spirituous liquor at a time;
1832 and
1833 (d) a restaurant patron may have no more than one spirituous liquor drink at a time
1834 before the patron.
1835 (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
1836 exceed five ounces per glass or individual portion.
1837 (ii) An individual portion of wine may be served to a patron in more than one glass as
1838 long as the total amount of wine does not exceed five ounces.
1839 (iii) An individual portion of wine is considered to be one alcoholic beverage under
1840 Subsection (7)[(e)](g).
1841 (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
1842 fixed by the commission to a table of four or more persons.
1843 (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
1844 fixed by the commission to a table of less than four persons.
1845 (c) A wine service may be performed and a service charge assessed by a restaurant
1846 liquor licensee as authorized by commission rule for wine purchased at the restaurant.
1847 (4) (a) Heavy beer may be served in an original container not exceeding one liter at a
1848 price fixed by the commission.
1849 (b) A flavored malt beverage may be served in an original container not exceeding one

1850 liter at a price fixed by the commission.
1851 (c) A service charge may be assessed by a restaurant liquor licensee as authorized by
1852 commission rule for heavy beer or a flavored malt beverage purchased at the restaurant.
1853 (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant liquor licensee may sell beer for
1854 on-premise consumption:
1855 (A) in an open container; and
1856 (B) on draft.
1857 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
1858 not exceed two liters, except that beer may not be sold to an individual patron in a size of
1859 container that exceeds one liter.
1860 (b) A restaurant liquor licensee that sells beer pursuant to Subsection (5)(a):
1861 (i) may do so without obtaining a separate on-premise beer retailer license from the
1862 commission; and
1863 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
1864 Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
1865 inconsistent with or less restrictive than the operational restrictions under this part.
1866 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
1867 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
1868 restaurant's:
1869 (i) state liquor license; and
1870 (ii) alcoholic beverage license issued by the local authority.
1871 (6) An alcoholic beverage may not be stored, served, or sold in a place other than as
1872 designated in the restaurant liquor licensee's application, unless the restaurant liquor licensee
1873 first applies for and receives approval from the department for a change of location within the
1874 restaurant.
1875 (7) (a) (i) As used in this Subsection (7), and subject to Subsection (7)(a)(ii),
1876 "grandfathered bar structure" means a bar structure in a restaurant that:
1877 (A) as of May 11, 2009 has:

1878 (I) (Aa) patron seating at the bar structure;
1879 (Bb) a partition at one or more locations on the bar structure that is along the width of
1880 the bar structure; and
1881 (Cc) facilities for the dispensing or storage of an alcoholic beverage on the portion of
1882 the bar structure that is separated by the partition described in Subsection (7)(a)(i)(A)(I)(Bb);
1883 or
1884 (II) (Aa) patron seating at the bar structure;
1885 (Bb) a partition at one or more locations on the bar structure that is along the length of
1886 the bar structure; and
1887 (Cc) facilities for the dispensing or storage of an alcoholic beverage:
1888 (Ii) on the portion of the bar structure that is separated by a partition described in
1889 Subsection (7)(a)(i)(A)(II)(Bb); or
1890 (IIii) adjacent to the bar structure in a manner visible to a patron sitting at the bar
1891 structure;
1892 (B) is not operational as of May 12, 2009, and:
1893 (I) an applicant for a restaurant liquor license under this chapter:
1894 (Aa) has as of May 12, 2009, a building permit to construct the restaurant;
1895 (Bb) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
1896 defined by rule made by the commission in accordance with Title 63G, Chapter 3, Utah
1897 Administrative Rulemaking Act; and
1898 (Cc) is granted a restaurant liquor license by the commission under this chapter by no
1899 later than December 31, 2009; and
1900 (II) the restaurant described in Subsection (7)(a)(i)(C)(I) has a bar structure described
1901 in Subsection (7)(a)(i)(A);
1902 (C) as of May 12, 2009, has no patron seating at the bar structure; or
1903 (D) is not operational as of May 12, 2009, and:
1904 (I) an applicant for a restaurant liquor license under this chapter:
1905 (Aa) has as of May 12, 2009, a building permit to construct the restaurant;

1906 (Bb) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
1907 defined by rule made by the commission in accordance with Title 63G, Chapter 3, Utah
1908 Administrative Rulemaking Act; and
1909 (Cc) is granted a restaurant liquor license by the commission under this chapter by no
1910 later than December 31, 2009; and
1911 (II) the restaurant described in Subsection (7)(a)(i)(D)(I) has a bar structure described
1912 in Subsection (7)(a)(i)(C).
1913 (ii) "Grandfathered bar structure" does not include a grandfathered bar structure
1914 described in Subsection (7)(a)(i) on or after the day on which a restaurant remodels the
1915 grandfathered bar structure, as defined by rule made by the commission in accordance with
1916 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1917 (iii) Subject to Subsection (7)(a)(ii), a grandfathered bar structure remains a
1918 grandfathered bar structure notwithstanding whether the restaurant undergoes a change of
1919 ownership.
1920 [(7) (a)] (b) (i) A patron may only make an alcoholic beverage purchase in the
1921 restaurant from and be served by a person employed, designated, and trained by the restaurant
1922 liquor licensee to sell and serve an alcoholic beverage.
1923 (ii) Only a person employed, designated, and trained by a restaurant liquor licensee
1924 may sell, serve, or deliver an alcoholic beverage to a patron of a restaurant.
1925 [(ii)] (iii) Notwithstanding Subsection (7)[(a)](b)(i) or (ii), a patron who purchases
1926 bottled wine from an employee of the restaurant or carries bottled wine onto the premises of
1927 the restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the
1928 patron or others at the patron's table.
1929 [(b) An alcoholic beverage shall be delivered by a server to the patron.]
1930 (c) [An] A patron may consume an alcoholic beverage [may] only [be consumed]:
1931 (i) at:
1932 (A) the patron's table [or];
1933 (B) a counter; or

1934 (C) a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B); and
1935 (ii) where food is served.
1936 (d) [An] (i) An alcoholic beverage may not be served to or consumed by a patron at a
1937 bar structure that is not a grandfathered bar structure described in Subsection (7)(a)(i)(A) or
1938 (B).
1939 (ii) A patron who is 21 years of age or older may:
1940 (A) sit at a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B);
1941 (B) be served an alcoholic beverage at a grandfathered bar structure described in
1942 Subsection (7)(a)(i)(A) or (B); and
1943 (C) consume an alcoholic beverage at a grandfathered bar structure described in
1944 Subsection (7)(a)(i)(A) or (B).
1945 (iii) Except as provided in Subsection (7)(d)(iv), a restaurant liquor licensee may not
1946 permit a minor to, and a minor may not:
1947 (A) sit at a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B); or
1948 (B) consume food or beverages at a bar structure described in Subsection (7)(a)(i)(A)
1949 or (B).
1950 (iv) (A) A minor may be at a grandfathered bar structure described in Subsection
1951 (7)(a)(i)(A) or (B) if the minor is employed by a restaurant liquor licensee:
1952 (I) as provided in Subsection (16)(b); or
1953 (II) to perform maintenance and cleaning services during an hour when the restaurant
1954 liquor licensee is not open for business.
1955 (B) A minor may momentarily pass by a grandfathered bar structure described in
1956 Subsection (7)(a)(i)(A) or (B) without remaining or sitting at the bar structure en route to an
1957 area of a restaurant liquor licensee's premises in which the minor is permitted to be.
1958 (e) Except as provided in Subsection (14), a restaurant liquor licensee may dispense an
1959 alcoholic beverage only:
1960 (i) from:
1961 (A) a grandfathered bar structure;

1962 (B) an area adjacent to a grandfathered bar structure that is visible to a patron sitting
1963 at the grandfathered bar structure if that area is used to dispense an alcoholic beverage or
1964 alcoholic product as of May 12, 2009; or
1965 (C) an area that is:
1966 (I) separated from an area for the consumption of food by a restaurant patron by a
1967 solid, opaque, permanent structural barrier such that the facilities for the dispensing or storage
1968 of an alcoholic beverage or alcoholic product are:
1969 (Aa) not readily visible to a restaurant patron; and
1970 (Bb) not accessible by a restaurant patron; and
1971 (II) apart from an area used:
1972 (Aa) for dining;
1973 (Bb) for staging; or
1974 (Cc) as a lobby or waiting area;
1975 (ii) if the restaurant liquor licensee uses an alcoholic beverage or alcoholic product
1976 that is:
1977 (A) stored in an area described in Subsection (7)(e)(i); or
1978 (B) on the premises of the restaurant liquor licensee in an area not described in
1979 Subsection (7)(e)(i) if:
1980 (I) immediately before the alcoholic beverage or alcoholic product is dispensed it is in
1981 an unopened package;
1982 (II) the unopened package is taken to an area described in Subsection (7)(e)(i) before it
1983 is opened; and
1984 (III) once opened, the package is kept in an area described in Subsection (7)(e)(i); and
1985 (iii) if any instrument or equipment used to dispense an alcoholic beverage or
1986 alcoholic product is located in an area described in Subsection (7)(e)(i).
1987 (f) (i) A restaurant liquor licensee that has a grandfathered bar structure may receive a
1988 credit for purchases from a state store or package agency if:
1989 (A) the restaurant liquor licensee completes a remodel of the grandfathered bar

1990 structure by no later than December 31, 2011;
1991 (B) the remodeling described in Subsection (7)(f)(i)(A) results in the restaurant
1992 engaging in an activity described in Subsection (7)(e) only in an area described in Subsection
1993 (7)(e)(i)(C);
1994 (C) the restaurant liquor licensee requests the credit by no later than April 1, 2012;
1995 (D) the department determines that the restaurant liquor licensee has completed a
1996 remodel described in Subsections (7)(f)(i)(A) and (B); and
1997 (E) the department authorizes the credit, including the amount of the credit under
1998 Subsection (7)(f)(ii), on the basis that:
1999 (I) the restaurant liquor licensee complied with this Subsection (7); and
2000 (II) the aggregate of credits authorized under this Subsection (7)(f) and Subsection
2001 32A-4-307 (7)(f) before the current authorization does not exceed the amount described in
2002 Subsection (7)(f)(v)(A).
2003 (ii) The amount of the credit described in this Subsection (7)(f) is the lesser of:
2004 (A) the actual costs of the remodel as evidenced by receipts, copies of which are
2005 provided to the department as part of the request for the credit; or
2006 (B) $30,000.
2007 (iii) For a restaurant liquor licensee, a credit under this Subsection (7)(f):
2008 (A) begins on the day on which the department authorizes the credit under Subsection
2009 (7)(f)(i); and
2010 (B) ends the day on which the restaurant liquor licensee uses all of the credit.
2011 (iv) The department shall by contract provide for how a package agency accounts for a
2012 credit purchase made at the package agency by a restaurant liquor licensee under this
2013 Subsection (7)(f).
2014 (v) (A) Notwithstanding the other provisions of this Subsection (7)(f), the department
2015 may not authorize a credit if the aggregate of credits authorized under this Subsection (7)(f)
2016 and Subsection 32A-4-307 (7)(f) before the department authorizes the credit exceeds:
2017 (I) $1,000,000, for the aggregate of credits under this Subsection (7)(f) and Subsection

2018 32A-4-307 (7)(f), if the credit could be used on or before June 30, 2010; and
2019 (II) subject to Subsection (7)(v)(A)(I), $1,090,000 for the aggregate of all credits that
2020 can be authorized under this Subsection (7)(f) and Subsection 32A-4-307 (7)(f).
2021 (B) The department shall authorize credits in the order that the department receives a
2022 request described in Subsection (7)(f)(i)(C) from a restaurant liquor licensee requesting a
2023 credit under this Subsection (7)(f).
2024 [(e)] (g) A restaurant patron may have no more than two alcoholic beverages of any
2025 kind at a time before the patron, subject to the limitation in Subsection (2)(d).
2026 (8) (a) [The] A liquor storage area shall remain locked at all times other than those
2027 hours and days when liquor sales are authorized by law.
2028 (b) A restaurant liquor licensee shall store an alcoholic beverage or alcoholic product
2029 in a storage area described in Subsection (7)(e)(i).
2030 (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
2031 restaurant of a restaurant liquor licensee on any day after 12 midnight or before 12 noon.
2032 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
2033 Licenses, for on-premise beer licensees.
2034 (10) An alcoholic beverage may not be sold except in connection with an order for
2035 food prepared, sold, and served at the restaurant.
2036 (11) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
2037 (a) minor;
2038 (b) person actually, apparently, or obviously intoxicated;
2039 (c) known habitual drunkard; or
2040 (d) known interdicted person.
2041 (12) (a) (i) Liquor may be sold only at a price fixed by the commission.
2042 (ii) Liquor may not be sold at a discount price on any date or at any time.
2043 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
2044 beverage to the restaurant liquor licensee.
2045 (c) An alcoholic beverage may not be sold at a special or reduced price that

2046 encourages over consumption or intoxication.
2047 (d) An alcoholic beverage may not be sold at a special or reduced price for only
2048 certain hours of a restaurant liquor licensee's business day such as a "happy hour."
2049 (e) More than one alcoholic beverage may not be sold or served for the price of a single
2050 alcoholic beverage.
2051 (f) An indefinite or unlimited number of alcoholic beverages during a set period may
2052 not be sold or served for a fixed price.
2053 (g) A restaurant liquor licensee may not engage in a public promotion involving or
2054 offering free an alcoholic beverage to the general public.
2055 (13) An alcoholic beverage may not be purchased for a patron of a restaurant by:
2056 (a) the restaurant liquor licensee; or
2057 (b) an employee or agent of the restaurant liquor licensee.
2058 (14) (a) A person may not bring onto the premises of a restaurant liquor licensee an
2059 alcoholic beverage for on-premise consumption, except a person may bring, subject to the
2060 discretion of the restaurant liquor licensee, bottled wine onto the premises of a restaurant
2061 liquor licensee for on-premise consumption.
2062 (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or an
2063 officer, manager, employee, or agent of the restaurant liquor licensee may not allow:
2064 (i) a person to bring onto the restaurant premises an alcoholic beverage for on-premise
2065 consumption; or
2066 (ii) consumption of an alcoholic beverage described in this Subsection (14) on the
2067 restaurant liquor licensee's premises.
2068 (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
2069 or other representative of the restaurant liquor licensee upon entering the restaurant.
2070 (d) A wine service may be performed and a service charge assessed by a restaurant
2071 liquor licensee as authorized by commission rule for wine carried in by a patron.
2072 (15) (a) Except as provided in Subsection (15)(b), a restaurant liquor licensee or an
2073 employee of the restaurant liquor licensee may not permit a restaurant patron to carry from the

2074 restaurant premises an open container that:
2075 (i) is used primarily for drinking purposes; and
2076 (ii) contains an alcoholic beverage.
2077 (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
2078 restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
2079 onto the premises of the restaurant in accordance with Subsection (14), only if the bottle is
2080 recorked or recapped before removal.
2081 (16) (a) A restaurant liquor licensee may not employ a minor to sell or dispense an
2082 alcoholic beverage.
2083 (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
2084 employed to enter the sale at a cash register or other sales recording device.
2085 (17) An employee of a restaurant liquor licensee, while on duty, may not:
2086 (a) consume an alcoholic beverage; or
2087 (b) be intoxicated.
2088 (18) A charge or fee made in connection with the sale, service, or consumption of
2089 liquor may be stated in food or alcoholic beverage menus including:
2090 (a) a set-up charge;
2091 (b) a service charge; or
2092 (c) a chilling fee.
2093 (19) A restaurant liquor licensee shall display in a prominent place in the restaurant:
2094 (a) the liquor license that is [issued] granted by the department;
2095 (b) a list of the types and brand names of liquor being served through its calibrated
2096 metered dispensing system; and
2097 (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
2098 drugs is a serious crime that is prosecuted aggressively in Utah."
2099 (20) A restaurant liquor licensee may not on the premises of the restaurant liquor
2100 licensee:
2101 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,

2102 Chapter 10, Part 11, Gambling;
2103 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
2104 Part 11, Gambling; or
2105 (c) engage in or permit a contest, game, gaming scheme, or gaming device that
2106 requires the risking of something of value for a return or for an outcome when the return or
2107 outcome is based upon an element of chance, excluding the playing of an amusement device
2108 that confers only an immediate and unrecorded right of replay not exchangeable for value.
2109 (21) (a) A restaurant liquor licensee shall maintain an expense ledger or record
2110 showing in detail:
2111 (i) quarterly expenditures made separately for:
2112 (A) malt or brewed beverages;
2113 (B) set-ups;
2114 (C) liquor;
2115 (D) food; and
2116 (E) all other items required by the department; and
2117 (ii) sales made separately for:
2118 (A) malt or brewed beverages;
2119 (B) set-ups;
2120 (C) food; and
2121 (D) all other items required by the department.
2122 (b) A restaurant liquor licensee shall keep a record required by Subsection (21)(a):
2123 (i) in a form approved by the department; and
2124 (ii) current for each three-month period.
2125 (c) An expenditure shall be supported by:
2126 (i) a delivery ticket;
2127 (ii) an invoice;
2128 (iii) a receipted bill;
2129 (iv) a canceled check;

2130 (v) a petty cash voucher; or
2131 (vi) other sustaining datum or memorandum.
2132 (d) In addition to a ledger or record required under Subsection (21)(a), a restaurant
2133 liquor licensee shall maintain accounting and other records and documents as the department
2134 may require.
2135 (e) A restaurant liquor licensee or person acting for the restaurant, who knowingly
2136 forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
2137 other document of the restaurant that is required to be made, maintained, or preserved by this
2138 title or the rules of the commission for the purpose of deceiving the commission or the
2139 department, or an official or employee of the commission or department, is subject to:
2140 (i) the suspension or revocation of the restaurant's liquor license; and
2141 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
2142 (22) (a) A restaurant liquor licensee may not close or cease operation for a period
2143 longer than 240 hours, unless:
2144 (i) the restaurant liquor licensee notifies the department in writing at least seven days
2145 before the day on which the restaurant liquor licensee closes or ceases operation; and
2146 (ii) the closure or cessation of operation is first approved by the department.
2147 (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the
2148 restaurant liquor licensee shall immediately notify the department by telephone.
2149 (c) (i) The department may authorize a closure or cessation of operation for a period
2150 not to exceed 60 days.
2151 (ii) The department may extend the initial period an additional 30 days upon:
2152 (A) written request of the restaurant liquor licensee; and
2153 (B) a showing of good cause.
2154 (iii) A closure or cessation of operation may not exceed a total of 90 days without
2155 commission approval.
2156 (d) A notice shall include:
2157 (i) the dates of closure or cessation of operation;

2158 (ii) the reason for the closure or cessation of operation; and
2159 (iii) the date on which the restaurant liquor licensee will reopen or resume operation.
2160 (e) Failure of the restaurant liquor licensee to provide notice and to obtain department
2161 authorization before closure or cessation of operation results in an automatic forfeiture of:
2162 (i) the license; and
2163 (ii) the unused portion of the license fee for the remainder of the license year effective
2164 immediately.
2165 (f) Failure of the restaurant liquor licensee to reopen or resume operation by the
2166 approved date results in an automatic forfeiture of:
2167 (i) the license; and
2168 (ii) the unused portion of the license fee for the remainder of the license year.
2169 (23) A restaurant liquor licensee shall maintain at least 70% of its total restaurant
2170 business from the sale of food, which does not include mix for an alcoholic beverage or
2171 service charges.
2172 (24) A restaurant liquor license may not be transferred from one location to another,
2173 without prior written approval of the commission.
2174 (25) (a) A person, having been granted a restaurant liquor license may not sell,
2175 transfer, assign, exchange, barter, give, or attempt in any way to dispose of the restaurant
2176 liquor license to another person whether for monetary gain or not.
2177 (b) A restaurant liquor license has no monetary value for the purpose of any type of
2178 disposition.
2179 (26) A server of an alcoholic beverage in a restaurant liquor licensee's establishment
2180 shall keep a written beverage tab for each table or group that orders or consumes an alcoholic
2181 beverage on the premises. The beverage tab shall list the type and amount of an alcoholic
2182 beverage ordered or consumed.
2183 (27) A person's willingness to serve an alcoholic beverage may not be made a
2184 condition of employment as a server with a restaurant that has a restaurant liquor license.
2185 (28) A restaurant liquor licensee or an employee of the restaurant liquor licensee may

2186 not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
2187 Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
2188 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
2189 58-37-2 ; or
2190 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
2191 Section 58-37a-3 .
2192 Section 17. Section 32A-4-202 is amended to read:
2193 32A-4-202. Application and renewal requirements.
2194 (1) A person seeking an airport lounge liquor license under this part shall file a written
2195 application with the department, in a form prescribed by the department, accompanied by:
2196 (a) a nonrefundable $250 application fee;
2197 (b) an initial license fee of $7,000, which is refundable if a license is not granted;
2198 (c) written consent of the local and airport authority;
2199 (d) a copy of the applicant's current business license;
2200 (e) a bond as specified by Section 32A-4-205 ;
2201 (f) a floor plan of the airport lounge, including consumption areas and the area where
2202 the applicant proposes to keep, store, and sell liquor;
2203 (g) a copy of the sign proposed to be used by the licensee on its premises to inform the
2204 public that alcoholic beverages are sold and consumed there;
2205 (h) evidence that the airport lounge is carrying public liability insurance in an amount
2206 and form satisfactory to the department;
2207 (i) evidence that the airport lounge is carrying dramshop insurance coverage of at least
2208 [$500,000] $1,000,000 per occurrence and [$1,000,000] $2,000,000 in the aggregate;
2209 (j) a signed consent form stating that the airport lounge will permit any authorized
2210 representative of the commission, department, or any law enforcement officer unrestricted
2211 right to enter the airport lounge;
2212 (k) in the case of an applicant that is a partnership, corporation, or limited liability
2213 company, proper verification evidencing that the person or persons signing the airport lounge

2214 application are authorized to so act on behalf of the partnership, corporation, or limited
2215 liability company; and
2216 (l) any other information the commission or department may require.
2217 (2) (a) [All] An airport lounge liquor [licenses expire] license expires on October 31 of
2218 each year.
2219 (b) A person desiring to renew that person's airport lounge liquor license shall submit
2220 a renewal fee of $5,000 and a completed renewal application to the department no later than
2221 September 30.
2222 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
2223 the license, effective on the date the existing license expires.
2224 (d) Renewal applications shall be in a form as prescribed by the department.
2225 (3) To ensure compliance with Subsection 32A-4-206 (21), the commission may
2226 revoke an airport lounge liquor license if the airport liquor licensee does not immediately
2227 notify the department of any change in:
2228 (a) ownership of the licensee;
2229 (b) for a corporate owner, the:
2230 (i) corporate officers or directors; or
2231 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
2232 corporation; or
2233 (c) for a limited liability company:
2234 (i) managers; or
2235 (ii) members owning at least 20% of the limited liability company.
2236 Section 18. Section 32A-4-302 is amended to read:
2237 32A-4-302. Commission's power to grant licenses -- Limitations.
2238 (1) A restaurant wanting to sell and allow the consumption of only wine, heavy beer,
2239 and beer on its premises, but not spirituous liquor or[, on or after October 1, 2008,] a flavored
2240 malt beverage, shall obtain a limited restaurant license from the commission as provided in
2241 this part before selling or allowing the consumption of wine, heavy beer, or beer on its

2242 premises.
2243 (2) (a) Subject to the other provisions of this section and Subsection 32A-4a-201 (2),
2244 the commission may [issue] grant limited restaurant licenses for the purpose of establishing
2245 limited restaurant outlets at places and in numbers the commission considers proper for the
2246 storage, sale, and consumption of wine, heavy beer, and beer on premises operated as public
2247 restaurants.
2248 (b) The total number of limited restaurant licenses [issued] granted under this part
2249 may not at any time aggregate more than that number determined by dividing the population
2250 of the state by 9,300.
2251 (c) For purposes of this Subsection (2), population shall be determined by:
2252 (i) the most recent United States decennial or special census; or
2253 (ii) another population determination made by the United States or state governments.
2254 (3) (a) (i) The commission may [issue] grant seasonal limited restaurant licenses
2255 established in areas the commission considers necessary.
2256 (ii) A seasonal limited restaurant license shall be for a period of six consecutive
2257 months.
2258 (b) (i) A limited restaurant license [issued] granted for operation during a summer
2259 time period is known as a "Seasonal A" limited restaurant license. The period of operation for
2260 a "Seasonal A" limited restaurant license shall:
2261 (A) begin on May 1; and
2262 (B) end on October 31.
2263 (ii) A limited restaurant license [issued] granted for operation during a winter time
2264 period is known as a "Seasonal B" limited restaurant license. The period of operation for a
2265 "Seasonal B" limited restaurant license shall:
2266 (A) begin on November 1; and
2267 (B) end on April 30.
2268 (iii) In determining the number of limited restaurant licenses that the commission may
2269 [issue] grant under this section:

2270 (A) a seasonal limited restaurant license is counted as [1/2] one-half of one limited
2271 restaurant license; and
2272 (B) each "Seasonal A" limited restaurant license shall be paired with a "Seasonal B"
2273 limited restaurant license.
2274 (c) If the location, design, and construction of a hotel may require more than one
2275 limited restaurant sales location within the hotel to serve the public convenience, the
2276 commission may authorize the sale of wine, heavy beer, and beer at as many as three limited
2277 restaurant locations within the hotel under one license if:
2278 (i) the hotel has a minimum of 150 guest rooms; and
2279 (ii) all locations under the license are:
2280 (A) within the same hotel facility; and
2281 (B) on premises that are:
2282 (I) managed or operated by the licensee; and
2283 (II) owned or leased by the licensee.
2284 (d) A facility other than a hotel shall have a separate limited restaurant license for each
2285 restaurant where wine, heavy beer, and beer are sold.
2286 (4) (a) Except as otherwise provided in this Subsection (4)[(b), (c), or (d)], the
2287 premises of a limited restaurant license may not be established:
2288 (i) within 600 feet of a community location, as measured by the method in Subsection
2289 (4)[(e)](f); or
2290 (ii) within 200 feet of a community location, measured in a straight line from the
2291 nearest entrance of the proposed outlet to the nearest property boundary of the community
2292 location.
2293 (b) With respect to the establishment of a limited restaurant license, the commission
2294 may authorize a variance to reduce the proximity requirement of Subsection (4)(a)(i) if:
2295 (i) the local authority grants its written consent to the variance;
2296 (ii) the commission finds that alternative locations for establishing a limited restaurant
2297 license in the community are limited;

2298 (iii) a public hearing is held in the city, town, or county, and where practical in the
2299 neighborhood concerned;
2300 (iv) after giving full consideration to all of the attending circumstances and the
2301 policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
2302 establishing the license would not be detrimental to the public health, peace, safety, and
2303 welfare of the community; and
2304 (v) (A) the community location governing authority gives its written consent to the
2305 variance; or
2306 (B) when written consent is not given by the community location governing authority,
2307 the commission finds that the applicant has established that:
2308 (I) there is substantial unmet public demand to consume alcohol in a public setting
2309 within the geographic boundary of the local authority in which the limited restaurant licensee
2310 is to be located;
2311 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
2312 described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a limited
2313 restaurant license; and
2314 (III) there is no reasonably viable alternative location within the geographic boundary
2315 of the local authority in which the limited restaurant licensee is to be located for establishing a
2316 limited restaurant license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
2317 (c) With respect to the establishment of a limited restaurant license, the commission
2318 may authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
2319 (i) the community location at issue is:
2320 (A) a public library; or
2321 (B) a public park;
2322 (ii) the local authority grants its written consent to the variance;
2323 (iii) the commission finds that alternative locations for establishing a limited
2324 restaurant license in the community are limited;
2325 (iv) a public hearing is held in the city, town, or county, and where practical in the

2326 neighborhood concerned;
2327 (v) after giving full consideration to all of the attending circumstances and the policies
2328 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
2329 limited restaurant license would not be detrimental to the public health, peace, safety, and
2330 welfare of the community; and
2331 (vi) (A) the community location governing authority gives its written consent to the
2332 variance; or
2333 (B) when written consent is not given by the community location governing authority,
2334 the commission finds that the applicant has established that:
2335 (I) there is substantial unmet public demand to consume alcohol in a public setting
2336 within the geographic boundary of the local authority in which the limited restaurant licensee
2337 is to be located;
2338 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
2339 described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a limited
2340 restaurant license; and
2341 (III) there is no reasonably viable alternative location within the geographic boundary
2342 of the local authority in which the limited restaurant licensee is to be located for establishing a
2343 limited restaurant license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
2344 (d) With respect to the premises of a limited restaurant license [issued] granted by the
2345 commission that undergoes a change of ownership, the commission may waive or vary the
2346 proximity requirements of Subsection (4)(a) in considering whether to grant a limited
2347 restaurant license to the new owner of the premises if:
2348 (i) (A) the premises previously received a variance reducing the proximity requirement
2349 of Subsection (4)(a)(i); or
2350 (B) the premises received a variance reducing the proximity requirement of Subsection
2351 (4)(a)(ii) on or before May 4, 2008; or
2352 (ii) a variance from proximity requirements was otherwise allowed under this title.
2353 (e) With respect to the premises of a limited restaurant license granted by the

2354 commission that undergoes a change of ownership, the commission shall waive or vary the
2355 proximity requirements of Subsection (4)(a) in considering whether to grant a limited
2356 restaurant license to the new owner of the premises if:
2357 (i) when a limited restaurant license was granted to a previous owner, the premises
2358 met the proximity requirements of Subsection (4)(a);
2359 (ii) the premises has had a limited restaurant license at all times since the limited
2360 restaurant license described in Subsection (4)(e)(i) was granted without a variance; and
2361 (iii) the community location located within the proximity requirements of Subsection
2362 (4)(a) after the day on which the limited restaurant license described in Subsection (4)(e)(i)
2363 was granted.
2364 [(e)] (f) The 600 foot limitation as described in Subsection (4)(a)(i) is measured from
2365 the nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel
2366 to the property boundary of the community location.
2367 (5) (a) Nothing in this section prevents the commission from considering the
2368 proximity of any educational, religious, and recreational facility, or any other relevant factor in
2369 reaching a decision on a proposed location.
2370 (b) For purposes of this Subsection (5), "educational facility" includes:
2371 (i) a nursery school;
2372 (ii) an infant day care center; and
2373 (iii) a trade and technical school.
2374 Section 19. Section 32A-4-303 is amended to read:
2375 32A-4-303. Application and renewal requirements.
2376 (1) A person seeking a limited restaurant license under this part shall file a written
2377 application with the department, in a form prescribed by the department. The application shall
2378 be accompanied by:
2379 (a) a nonrefundable $250 application fee;
2380 (b) an initial license fee of $500, which is refundable if a license is not granted;
2381 (c) written consent of the local authority;

2382 (d) a copy of the applicant's current business license;
2383 (e) evidence of proximity to any community location, with proximity requirements
2384 being governed by Section 32A-4-302 ;
2385 (f) a bond as specified by Section 32A-4-306 ;
2386 (g) a floor plan of the restaurant, including:
2387 (i) consumption areas; and
2388 (ii) the area where the applicant proposes to keep, store, and sell wine, heavy beer, and
2389 beer;
2390 (h) evidence that the restaurant is carrying public liability insurance in an amount and
2391 form satisfactory to the department;
2392 (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
2393 [$500,000] $1,000,000 per occurrence and [$1,000,000] $2,000,000 in the aggregate;
2394 (j) a signed consent form stating that the restaurant will permit any authorized
2395 representative of the commission, department, or any law enforcement officer unrestricted
2396 right to enter the restaurant;
2397 (k) in the case of an applicant that is a partnership, corporation, or limited liability
2398 company, proper verification evidencing that the person or persons signing the restaurant
2399 application are authorized to so act on behalf of the partnership, corporation, or limited
2400 liability company; and
2401 (l) any other information the commission or department may require.
2402 (2) (a) [All] A limited restaurant [licenses expire] license expires on October 31 of
2403 each year.
2404 (b) A person desiring to renew that person's limited restaurant license shall submit:
2405 (i) a renewal fee of $300; and
2406 (ii) a renewal application to the department no later than September 30.
2407 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
2408 the license effective on the date the existing license expires.
2409 (d) A renewal application shall be in a form as prescribed by the department.

2410 (3) To ensure compliance with Subsection 32A-4-307 (25), the commission may
2411 suspend or revoke a limited restaurant license if the limited restaurant licensee does not
2412 immediately notify the department of any change in:
2413 (a) ownership of the restaurant;
2414 (b) for a corporate owner, the:
2415 (i) corporate officer or directors; or
2416 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
2417 corporation; or
2418 (c) for a limited liability company:
2419 (i) managers; or
2420 (ii) members owning at least 20% of the limited liability company.
2421 Section 20. Section 32A-4-307 is amended to read:
2422 32A-4-307. Operational restrictions.
2423 A person granted a limited restaurant license and the employees and management
2424 personnel of the limited restaurant shall comply with the following conditions and
2425 requirements. Failure to comply may result in a suspension or revocation of the license or
2426 other disciplinary action taken against individual employees or management personnel.
2427 (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
2428 except from a state store or package agency.
2429 (b) Wine and heavy beer purchased from a state store or package agency may be
2430 transported by the limited restaurant licensee from the place of purchase to the licensed
2431 premises.
2432 (c) Payment for wine and heavy beer shall be made in accordance with rules
2433 established by the commission.
2434 (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of the
2435 products listed in Subsection (2)(c) on the premises of the limited restaurant.
2436 (b) A product listed in Subsection (2)(c) may not be on the premises of the limited
2437 restaurant except for use:

2438 (i) as a flavoring on a dessert; and
2439 (ii) in the preparation of a flaming food dish, drink, or dessert.
2440 (c) This Subsection (2) applies to:
2441 (i) spirituous liquor; and
2442 (ii) [on or after October 1, 2008,] a flavored malt beverage.
2443 (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
2444 exceed five ounces per glass or individual portion.
2445 (ii) An individual portion may be served to a patron in more than one glass as long as
2446 the total amount of wine does not exceed five ounces.
2447 (iii) An individual portion of wine is considered to be one alcoholic beverage under
2448 Subsection (7)[(e)](g).
2449 (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
2450 fixed by the commission to a table of four or more persons.
2451 (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
2452 fixed by the commission to a table of less than four persons.
2453 (c) A wine service may be performed and a service charge assessed by the limited
2454 restaurant licensee as authorized by commission rule for wine purchased at the limited
2455 restaurant.
2456 (4) (a) Heavy beer may be served in an original container not exceeding one liter at a
2457 price fixed by the commission.
2458 (b) A service charge may be assessed by the limited restaurant licensee as authorized
2459 by commission rule for heavy beer purchased at the limited restaurant.
2460 (5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer
2461 for on-premise consumption:
2462 (A) in an open container; and
2463 (B) on draft.
2464 (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
2465 not exceed two liters, except that beer may not be sold to an individual patron in a size of

2466 container that exceeds one liter.
2467 (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
2468 (i) may do so without obtaining a separate on-premise beer retailer license from the
2469 commission; and
2470 (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
2471 Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
2472 inconsistent with or less restrictive than the operational restrictions under this part.
2473 (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
2474 Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the limited
2475 restaurant's:
2476 (i) limited restaurant license; and
2477 (ii) alcoholic beverage license issued by the local authority.
2478 (6) Wine, heavy beer, and beer may not be stored, served, or sold in a place other than
2479 as designated in the limited restaurant licensee's application, unless the limited restaurant
2480 licensee first applies for and receives approval from the department for a change of location
2481 within the limited restaurant.
2482 (7) (a) (i) As used in this Subsection (7), and subject to Subsection (7)(a)(ii),
2483 "grandfathered bar structure" means a bar structure in a restaurant that:
2484 (A) as of May 11, 2009 has:
2485 (I) (Aa) patron seating at the bar structure;
2486 (Bb) a partition at one or more locations on the bar structure that is along the width of
2487 the bar structure; and
2488 (Cc) facilities for the dispensing or storage of an alcoholic beverage on the portion of
2489 the bar structure that is separated by the partition described in Subsection (7)(a)(i)(A)(I)(Bb);
2490 or
2491 (II) (Aa) patron seating at the bar structure;
2492 (Bb) a partition at one or more locations on the bar structure that is along the length of
2493 the bar structure; and

2494 (Cc) facilities for the dispensing or storage of an alcoholic beverage:
2495 (Ii) on the portion of the bar structure that is separated by a partition described in
2496 Subsection (7)(a)(i)(A)(II)(Bb); or
2497 (IIii) adjacent to the bar structure in a manner visible to a patron sitting at the bar
2498 structure;
2499 (B) is not operational as of May 12, 2009, and:
2500 (I) an applicant for a limited restaurant license under this chapter:
2501 (Aa) has as of May 12, 2009, a building permit to construct the restaurant;
2502 (Bb) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
2503 defined by rule made by the commission in accordance with Title 63G, Chapter 3, Utah
2504 Administrative Rulemaking Act; and
2505 (Cc) is granted a limited restaurant license by the commission under this chapter by no
2506 later than December 31, 2009; and
2507 (II) the restaurant described in Subsection (7)(a)(i)(C)(I) has a bar structure described
2508 in Subsection (7)(a)(i)(A);
2509 (C) as of May 12, 2009, has no patron seating at the bar structure; or
2510 (D) is not operational as of May 12, 2009, and:
2511 (I) an applicant for a limited restaurant license under this chapter:
2512 (Aa) has as of May 12, 2009, a building permit to construct the restaurant;
2513 (Bb) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
2514 defined by rule made by the commission in accordance with Title 63G, Chapter 3, Utah
2515 Administrative Rulemaking Act; and
2516 (Cc) is granted a limited restaurant license by the commission under this chapter by no
2517 later than December 31, 2009; and
2518 (II) the restaurant described in Subsection (7)(a)(i)(D)(I) has a bar structure described
2519 in Subsection (7)(a)(i)(C).
2520 (ii) "Grandfathered bar structure" does not include a grandfathered bar structure
2521 described in Subsection (7)(a)(i) on or after the day on which a restaurant remodels the

2522 grandfathered bar structure, as defined by rule made by the commission in accordance with
2523 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
2524 (iii) Subject to Subsection (7)(a)(ii), a grandfathered bar structure remains a
2525 grandfathered bar structure notwithstanding whether the restaurant undergoes a change of
2526 ownership.
2527 [(7) (a)] (b) (i) A patron may only make an alcoholic beverage purchase in a limited
2528 restaurant from and be served by a person employed, designated, and trained by the limited
2529 restaurant licensee to sell and serve an alcoholic beverage.
2530 (ii) Only a person employed, designated, and trained by a limited restaurant licensee
2531 may sell, serve, or deliver an alcoholic beverage to a patron of a restaurant.
2532 [(ii)] (iii) Notwithstanding Subsection (7)[(a)](b)(i) or (ii), a patron who purchases
2533 bottled wine from an employee of the limited restaurant licensee or carries bottled wine onto
2534 the premises of the limited restaurant pursuant to Subsection (14) may thereafter serve wine
2535 from the bottle to the patron or others at the patron's table.
2536 [(b) An alcoholic beverage shall be delivered by a server to the patron.]
2537 (c) [An] A patron may consume an alcoholic beverage [may] only [be consumed]:
2538 (i) at:
2539 (A) the patron's table [or];
2540 (B) a counter;
2541 (C) a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B); and
2542 (ii) where food is served.
2543 (d) [An] (i) An alcoholic beverage may not be served to or consumed by a patron at a
2544 bar structure that is not a grandfathered bar structure described in Subsection (7)(a)(i)(A) or
2545 (B).
2546 (ii) A patron who is 21 years of age or older may:
2547 (A) sit at a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B);
2548 (B) be served an alcoholic beverage at a grandfathered bar structure described in
2549 Subsection (7)(a)(i)(A) or (B); and

2550 (C) consume an alcoholic beverage at a grandfathered bar structure described in
2551 Subsection (7)(a)(i)(A) or (B).
2552 (iii) Except as provided in Subsection (7)(d)(iv), a limited restaurant licensee may not
2553 permit a minor to, and a minor may not:
2554 (A) sit at a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B); or
2555 (B) consume food or beverages at a bar structure described in Subsection (7)(a)(i)(A)
2556 or (B).
2557 (iv) (A) A minor may be at a grandfathered bar structure described in Subsection
2558 (7)(a)(i)(A) or (B) if the minor is employed by a limited restaurant licensee:
2559 (I) as provided in Subsection (16)(b); or
2560 (II) to perform maintenance and cleaning services during an hour when the limited
2561 restaurant licensee is not open for business.
2562 (B) A minor may momentarily pass by a grandfathered bar structure described in
2563 Subsection (7)(a)(i)(A) or (B) without remaining or sitting at the bar structure en route to an
2564 area of a limited restaurant licensee's premises in which the minor is permitted to be.
2565 (e) Except as provided in Subsection (14), a limited restaurant licensee may dispense
2566 an alcoholic beverage only:
2567 (i) from:
2568 (A) a grandfathered bar structure;
2569 (B) an area adjacent to a grandfathered bar structure that is visible to a patron sitting
2570 at the grandfathered bar structure if that area is used to dispense an alcoholic beverage or
2571 alcoholic product as of May 12, 2009; or
2572 (C) an area that is:
2573 (I) separated from an area for the consumption of food by a restaurant patron by a
2574 solid, opaque, permanent structural barrier such that the facilities for the dispensing or storage
2575 of an alcoholic beverage or alcoholic product are:
2576 (Aa) not readily visible to a restaurant patron; and
2577 (Bb) not accessible by a restaurant patron; and

2578 (II) apart from an area used for:
2579 (Aa) dining;
2580 (Bb) staging; or
2581 (Cc) as a lobby or waiting area;
2582 (ii) if the limited restaurant licensee uses an alcoholic beverage or alcoholic product
2583 that is:
2584 (A) stored in an area described in Subsection (7)(e)(i); or
2585 (B) on the premises of the limited restaurant licensee in an area not described in
2586 Subsection (7)(e)(i) if:
2587 (I) immediately before the alcoholic beverage or alcoholic product is dispensed it is in
2588 an unopened package;
2589 (II) the unopened package is taken to an area described in Subsection (7)(e)(i) before it
2590 is opened; and
2591 (III) once opened, the package is kept in an area described in Subsection (7)(e)(i); and
2592 (iii) if any instrument or equipment used to dispense an alcoholic beverage is located
2593 in an area described in Subsection (7)(e)(i).
2594 (f) (i) A limited restaurant licensee that has a grandfathered bar structure may receive
2595 a credit for purchases from a state store or package agency if:
2596 (A) the limited restaurant licensee completes a remodel of the grandfathered bar
2597 structure by no later than December 31, 2011;
2598 (B) the remodeling described in Subsection (7)(f)(i)(A) results in the restaurant
2599 engaging in an activity described in Subsection (7)(e) only in an area described in Subsection
2600 (7)(e)(i)(C);
2601 (C) the limited restaurant licensee requests the credit by no later than April 1, 2012;
2602 (D) the department determines that the limited restaurant licensee has completed a
2603 remodel described in Subsections (7)(f)(i)(A) and (B); and
2604 (E) the department authorizes the credit, including the amount of the credit under
2605 Subsection (7)(f)(ii), on the basis that:

2606 (I) the limited restaurant licensee complied with this Subsection (7); and
2607 (II) the aggregate of credits authorized under this Subsection (7)(f) and Subsection
2608 32A-4-106 (7)(f) before the current authorization does not exceed the amount described in
2609 Subsection (7)(f)(v)(A).
2610 (ii) The amount of the credit described in this Subsection (7)(f) is the lesser of:
2611 (A) the actual costs of the remodel as evidenced by receipts, copies of which are
2612 provided to the department as part of the request for the credit; or
2613 (B) $30,000.
2614 (iii) For a limited restaurant licensee, a credit under this Subsection (7)(f):
2615 (A) begins on the day on which the department authorizes the credit under Subsection
2616 (7)(f)(i); and
2617 (B) ends the day on which the limited restaurant licensee uses all of the credit.
2618 (iv) The department shall by contract provide for how a package agency accounts for a
2619 credit purchase made at the package agency by a limited restaurant licensee under this
2620 Subsection (7)(f).
2621 (v) (A) Notwithstanding the other provisions of this Subsection (7)(f), the department
2622 may not authorize a credit if the aggregate of credits authorized under this Subsection (7)(f)
2623 and Subsection 32A-4-106 (7)(f) before the department authorizes the credit exceeds:
2624 (I) $1,000,000, for the aggregate of credits under this Subsection (7)(f) and Subsection
2625 32A-4-106 (7)(f), if the credit could be used on or before June 30, 2010; and
2626 (II) subject to Subsection (7)(v)(A)(I), $1,090,000 for the aggregate of all credits that
2627 can be authorized under this Subsection (7)(f) and Subsection 32A-4-106 (7)(f).
2628 (B) The department shall authorize credits in the order that the department receives a
2629 request described in Subsection (7)(f)(i)(C) from a limited restaurant licensee requesting a
2630 credit under this Subsection (7)(f).
2631 [(e)] (g) A limited restaurant patron may have no more than two alcoholic beverages
2632 of any kind at a time before the patron.
2633 (8) (a) [The] An alcoholic beverage storage area shall remain locked at all times other

2634 than those hours and days when alcoholic beverage sales are authorized by law.
2635 (b) A limited restaurant licensee shall store an alcoholic beverage or alcoholic product
2636 in a storage area described in Subsection (7)(e)(i).
2637 (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
2638 furnished at a limited restaurant on any day after 12 midnight or before 12 noon.
2639 (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
2640 Licenses, for on-premise beer licensees.
2641 (10) An alcoholic beverage may not be sold except in connection with an order of food
2642 prepared, sold, and served at the limited restaurant.
2643 (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to a:
2644 (a) minor;
2645 (b) person actually, apparently, or obviously intoxicated;
2646 (c) known habitual drunkard; or
2647 (d) known interdicted person.
2648 (12) (a) (i) Wine and heavy beer may be sold only at a price fixed by the commission.
2649 (ii) Wine and heavy beer may not be sold at a discount price on any date or at any
2650 time.
2651 (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
2652 beverage to the limited restaurant licensee.
2653 (c) An alcoholic beverage may not be sold at a special or reduced price that
2654 encourages over consumption or intoxication.
2655 (d) An alcoholic beverage may not be sold at a special or reduced price for only
2656 certain hours of the limited restaurant licensee's business day such as a "happy hour."
2657 (e) More than one alcoholic beverage may not be sold or served for the price of a single
2658 alcoholic beverage.
2659 (f) An indefinite or unlimited number of alcoholic beverages during a set period may
2660 not be sold or served for a fixed price.
2661 (g) A limited restaurant licensee may not engage in a public promotion involving or

2662 offering free alcoholic beverages to the general public.
2663 (13) An alcoholic beverage may not be purchased for a patron of the limited restaurant
2664 by:
2665 (a) the limited restaurant licensee; or
2666 (b) an employee or agent of the limited restaurant licensee.
2667 (14) (a) A person may not bring onto the premises of a limited restaurant licensee an
2668 alcoholic beverage for on-premise consumption, except a person may bring, subject to the
2669 discretion of the limited restaurant licensee, bottled wine onto the premises of a limited
2670 restaurant licensee for on-premise consumption.
2671 (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or an
2672 officer, manager, employee, or agent of a limited restaurant licensee may not allow:
2673 (i) a person to bring onto the limited restaurant premises an alcoholic beverage for
2674 on-premise consumption; or
2675 (ii) consumption of an alcoholic beverage described in Subsection (14)(b)(i) on the
2676 limited restaurant licensee's premises.
2677 (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
2678 or other representative of the limited restaurant licensee upon entering the limited restaurant.
2679 (d) A wine service may be performed and a service charge assessed by the limited
2680 restaurant licensee as authorized by commission rule for wine carried in by a patron.
2681 (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and an
2682 employee of the limited restaurant licensee may not permit a restaurant patron to carry from
2683 the limited restaurant premises an open container that:
2684 (i) is used primarily for drinking purposes; and
2685 (ii) contains an alcoholic beverage.
2686 (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
2687 contents of a bottle of wine if before removal, the bottle is recorked or recapped.
2688 (16) (a) A limited restaurant licensee may not employ a minor to sell or dispense an
2689 alcoholic beverage.

2690 (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
2691 employed to enter the sale at a cash register or other sales recording device.
2692 (17) An employee of a limited restaurant licensee, while on duty, may not:
2693 (a) consume an alcoholic beverage; or
2694 (b) be intoxicated.
2695 (18) A charge or fee made in connection with the sale, service, or consumption of
2696 wine or heavy beer may be stated in food or alcoholic beverage menus including:
2697 (a) a service charge; or
2698 (b) a chilling fee.
2699 (19) A limited restaurant licensee shall display in a prominent place in the restaurant:
2700 (a) the limited restaurant license that is [issued] granted by the department; and
2701 (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
2702 drugs is a serious crime that is prosecuted aggressively in Utah."
2703 (20) A limited restaurant licensee may not on the premises of the restaurant:
2704 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
2705 Chapter 10, Part 11, Gambling;
2706 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
2707 Part 11, Gambling; or
2708 (c) engage in or permit a contest, game, gaming scheme, or gaming device that
2709 requires the risking of something of value for a return or for an outcome when the return or
2710 outcome is based upon an element of chance, excluding the playing of an amusement device
2711 that confers only an immediate and unrecorded right of replay not exchangeable for value.
2712 (21) (a) A limited restaurant licensee shall maintain an expense ledger or record
2713 showing in detail:
2714 (i) quarterly expenditures made separately for:
2715 (A) wine;
2716 (B) heavy beer;
2717 (C) beer;

2718 (D) food; and
2719 (E) all other items required by the department; and
2720 (ii) sales made separately for:
2721 (A) wine;
2722 (B) heavy beer;
2723 (C) beer;
2724 (D) food; and
2725 (E) all other items required by the department.
2726 (b) A limited restaurant licensee shall keep a record required by Subsection (21)(a):
2727 (i) in a form approved by the department; and
2728 (ii) current for each three-month period.
2729 (c) An expenditure shall be supported by:
2730 (i) a delivery ticket;
2731 (ii) an invoice;
2732 (iii) a receipted bill;
2733 (iv) a canceled check;
2734 (v) a petty cash voucher; or
2735 (vi) other sustaining datum or memorandum.
2736 (d) In addition to the ledger or record maintained under Subsections (21)(a) through
2737 (c), a limited restaurant licensee shall maintain accounting and other records and documents as
2738 the department may require.
2739 (e) Any limited restaurant licensee or person acting for the restaurant, who knowingly
2740 forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
2741 other document of the limited restaurant that is required to be made, maintained, or preserved
2742 by this title or the rules of the commission for the purpose of deceiving the commission, the
2743 department, or an official or employee of the commission or department, is subject to:
2744 (i) the suspension or revocation of the limited restaurant's license; and
2745 (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.

2746 (22) (a) A limited restaurant licensee may not close or cease operation for a period
2747 longer than 240 hours, unless:
2748 (i) the limited restaurant licensee notifies the department in writing at least seven days
2749 before the day on which the limited restaurant licensee closes or ceases operation; and
2750 (ii) the closure or cessation of operation is first approved by the department.
2751 (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the limited
2752 restaurant licensee shall immediately notify the department by telephone.
2753 (c) (i) Subject to Subsection (22)(c)(iii), the department may authorize a closure or
2754 cessation of operation for a period not to exceed 60 days.
2755 (ii) The department may extend the initial period an additional 30 days upon:
2756 (A) written request of the limited restaurant licensee; and
2757 (B) a showing of good cause.
2758 (iii) A closure or cessation of operation may not exceed a total of 90 days without
2759 commission approval.
2760 (d) A notice required by Subsection (22)(a) shall include:
2761 (i) the dates of closure or cessation of operation;
2762 (ii) the reason for the closure or cessation of operation; and
2763 (iii) the date on which the limited restaurant licensee will reopen or resume operation.
2764 (e) Failure of the limited restaurant licensee to provide notice and to obtain department
2765 authorization before closure or cessation of operation results in an automatic forfeiture of:
2766 (i) the limited restaurant license; and
2767 (ii) the unused portion of the license fee for the remainder of the license year effective
2768 immediately.
2769 (f) Failure of the limited restaurant licensee to reopen or resume operation by the
2770 approved date results in an automatic forfeiture of:
2771 (i) the limited restaurant license; and
2772 (ii) the unused portion of the license fee for the remainder of the license year.
2773 (23) A limited restaurant licensee shall maintain at least 70% of its total restaurant

2774 business from the sale of food, which does not include service charges.
2775 (24) A limited restaurant license may not be transferred from one location to another,
2776 without prior written approval of the commission.
2777 (25) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,
2778 give, or attempt in any way to dispose of the limited restaurant license to another person
2779 whether for monetary gain or not.
2780 (b) A limited restaurant license has no monetary value for the purpose of any type of
2781 disposition.
2782 (26) (a) A server of wine, heavy beer, and beer in a limited restaurant licensee's
2783 establishment shall keep a written beverage tab for each table or group that orders or consumes
2784 an alcoholic beverage on the premises.
2785 (b) The beverage tab required by Subsection (26)(a) shall list the type and amount of
2786 an alcoholic beverage ordered or consumed.
2787 (27) A limited restaurant licensee may not make a person's willingness to serve an
2788 alcoholic beverage a condition of employment as a server with the limited restaurant.
2789 (28) A limited restaurant licensee or an employee of the limited restaurant licensee
2790 may not knowingly allow a person on the licensed premises to, in violation of Title 58,
2791 Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
2792 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
2793 58-37-2 ; or
2794 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
2795 Section 58-37a-3 .
2796 Section 21. Section 32A-4-401 is amended to read:
2797 32A-4-401. Definitions -- Commission's power to grant licenses -- Limitations.
2798 (1) (a) For purposes of this part:
2799 (i) "Banquet" means an event:
2800 (A) for which there is a contract:
2801 (I) between any person and a person listed in Subsection (1)(a)(i)(B); and

2802 (II) under which a person listed in Subsection (1)(a)(i)(B) is required to provide an
2803 alcoholic [beverages] beverage at the event;
2804 (B) held at one or more designated locations approved by the commission in or on the
2805 premises of a:
2806 (I) hotel;
2807 (II) resort facility;
2808 (III) sports center; or
2809 (IV) convention center; and
2810 (C) at which food and alcoholic beverages may be sold and served.
2811 (ii) "Convention center" is [as] a facility that:
2812 (A) is in total at least 30,000 square feet; and
2813 (B) is otherwise defined as a "convention center" by the commission by rule.
2814 (iii) "Hotel" is as defined by the commission by rule.
2815 (iv) "Resort facility" is as defined by the commission by rule.
2816 (v) "Room service" means service of an alcoholic [beverages] beverage to a guest
2817 room of a:
2818 (A) hotel; or
2819 (B) resort facility.
2820 (vi) "Sports center" is as defined by the commission by rule.
2821 (b) The commission may [issue] grant an on-premise banquet license to any of the
2822 following persons for the purpose of allowing the storage, sale, service, and consumption of an
2823 alcoholic [beverages] beverage in connection with that person's banquet and room service
2824 activities:
2825 (i) a hotel;
2826 (ii) a resort facility;
2827 (iii) a sports center; or
2828 (iv) a convention center.
2829 (c) This chapter [is not intended to] does not prohibit an alcoholic [beverages]

2830 beverage on the premises of a person listed in Subsection (1) to the extent otherwise permitted
2831 by this title.
2832 (2) (a) Subject to this section and Subsection 32A-4a-201 (2), the total number of
2833 on-premise banquet licenses may not at any time aggregate more than that number determined
2834 by dividing the population of the state by 30,000.
2835 (b) For purposes of this Subsection (2), the population of the state shall be determined
2836 by:
2837 (i) the most recent United States decennial or special census; or
2838 (ii) another population determination made by the United States or state governments.
2839 (3) Pursuant to a contract between the host of a banquet and an on-premise banquet
2840 licensee:
2841 (a) the host of a contracted banquet may request an on-premise banquet licensee to
2842 provide an alcoholic [beverages] beverage served at a banquet; and
2843 (b) an on-premise banquet licensee may provide [the] an alcoholic [beverages]
2844 beverage served at a banquet.
2845 (4) At a banquet, an on-premise banquet licensee may provide:
2846 (a) a hosted bar; or
2847 (b) a cash bar.
2848 (5) Nothing in this section [shall prohibit] prohibits a qualified on-premise banquet
2849 license applicant from applying for a package agency.
2850 (6) (a) Except as provided in Subsection (6)(b), (c), or (d), the premises of an
2851 on-premise banquet license may not be established:
2852 (i) within 600 feet of a community location, as measured by the method in Subsection
2853 (6)(e); or
2854 (ii) within 200 feet of a community location, measured in a straight line from the
2855 nearest entrance of the proposed outlet to the nearest property boundary of the community
2856 location.
2857 (b) With respect to the establishment of an on-premise banquet license, the

2858 commission may authorize a variance to reduce the proximity requirement of Subsection
2859 (6)(a)(i) if:
2860 (i) the local authority grants its written consent to the variance;
2861 (ii) the commission finds that alternative locations for establishing an on-premise
2862 banquet license in the community are limited;
2863 (iii) the variance is authorized after a public hearing is held in the city, town, or
2864 county, and where practical in the neighborhood concerned;
2865 (iv) after giving full consideration to all of the attending circumstances and the
2866 policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
2867 establishing the license would not be detrimental to the public health, peace, safety, and
2868 welfare of the community; and
2869 (v) (A) the community location governing authority gives its written consent to the
2870 variance; or
2871 (B) when written consent is not given by the community location governing authority,
2872 the commission finds that the applicant has established that:
2873 (I) there is substantial unmet public demand to consume alcohol in a public setting
2874 within the geographic boundary of the local authority in which the on-premise banquet license
2875 premises is to be located;
2876 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
2877 described in Subsection (6)(b)(v)(B)(I) other than through the establishment of an on-premise
2878 banquet license; and
2879 (III) there is no reasonably viable alternative location within the geographic boundary
2880 of the local authority in which the on-premise banquet license premises is to be located for
2881 establishing an on-premise banquet license to satisfy the unmet demand described in
2882 Subsection (6)(b)(v)(B)(I).
2883 (c) With respect to the establishment of an on-premise banquet license, the
2884 commission may authorize a variance that reduces the proximity requirement of Subsection
2885 (6)(a)(ii) if:

2886 (i) the community location at issue is:
2887 (A) a public library; or
2888 (B) a public park;
2889 (ii) the local authority grants its written consent to the variance;
2890 (iii) the commission finds that alternative locations for establishing an on-premise
2891 banquet license in the community are limited;
2892 (iv) a public hearing is held in the city, town, or county, and where practical in the
2893 neighborhood concerned;
2894 (v) after giving full consideration to all of the attending circumstances and the policies
2895 stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
2896 on-premise banquet license would not be detrimental to the public health, peace, safety, and
2897 welfare of the community; and
2898 (vi) (A) the community location governing authority gives its written consent to the
2899 variance; or
2900 (B) when written consent is not given by the community location governing authority,
2901 the commission finds that the applicant has established that:
2902 (I) there is substantial unmet public demand to consume alcohol in a public setting
2903 within the geographic boundary of the local authority in which the on-premise banquet license
2904 premises is to be located;
2905 (II) there is no reasonably viable alternative for satisfying substantial unmet demand
2906 described in Subsection (6)(c)(vi)(B)(I) other than through the establishment of an on-premise
2907 banquet license; and
2908 (III) there is no reasonably viable alternative location within the geographic boundary
2909 of the local authority in which the on-premise banquet license premises is to be located for
2910 establishing an on-premise banquet license to satisfy the unmet demand described in
2911 Subsection (6)(c)(vi)(B)(I).
2912 (d) With respect to the premises of any on-premise banquet license [issued] granted by
2913 the commission that undergoes a change of ownership, the commission may waive or vary the

2914 proximity requirements of Subsection (6)(a) in considering whether to grant an on-premise
2915 banquet license to the new owner of the premises if:
2916 (i) (A) the premises previously received a variance reducing the proximity requirement
2917 of Subsection (6)(a)(i); or
2918 (B) the premises received a variance reducing the proximity requirement of Subsection
2919 (6)(a)(ii) on or before May 4, 2008; or
2920 (ii) a variance from proximity requirements was otherwise allowed under this title.
2921 (e) The 600 foot limitation described in Subsection (6)(a)(i) is measured from the
2922 nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to
2923 the property boundary of the community location.
2924 (7) (a) Nothing in this section prevents the commission from considering the
2925 proximity of any educational, religious, and recreational facility, or any other relevant factor in
2926 reaching a decision on a proposed location.
2927 (b) For purposes of this Subsection (7), "educational facility" includes:
2928 (i) a nursery school;
2929 (ii) an infant day care center; and
2930 (iii) a trade and technical school.
2931 (8) (a) As used in this Subsection (8), "grandfathered facility" means a facility:
2932 (i) for which the commission granted an on-premise banquet license that is in effect on
2933 May 11, 2009, on the basis that the facility is a convention center; and
2934 (ii) that no longer qualifies as a convention center under Subsection (1)(a)(ii) solely
2935 because it is in total less than 30,000 square feet.
2936 (b) Notwithstanding Subsection (1)(a)(ii), the on-premise banquet license applicable
2937 to a grandfathered facility may be renewed until October 31, 2011, if the on-premise banquet
2938 license is qualified for the on-premise banquet license except for the requirement of
2939 Subsection (1)(a)(ii)(A).
2940 Section 22. Section 32A-4-402 is amended to read:
2941 32A-4-402. Application and renewal requirements.

2942 (1) (a) A person seeking an on-premise banquet license under this part shall file a
2943 written application with the department, in a form prescribed by the department. The
2944 application shall be accompanied by:
2945 (i) a nonrefundable $250 application fee;
2946 (ii) an initial license fee of $500, which is refundable if a license is not granted;
2947 (iii) written consent of the local authority;
2948 (iv) a copy of the applicant's current business license;
2949 (v) evidence of proximity to any community location, with proximity requirements
2950 being governed by Section 32A-4-401 ;
2951 (vi) a bond as specified by Section 32A-4-405 ;
2952 (vii) a description or floor plan and boundary map of the premises, where appropriate,
2953 of the on-premise banquet license applicant's location, designating:
2954 (A) the location at which the on-premise banquet license applicant proposes that
2955 alcoholic beverages be stored; and
2956 (B) the designated locations on the premises of the applicant from which the
2957 on-premise banquet license applicant proposes that alcoholic beverages be sold or served, and
2958 consumed;
2959 (viii) evidence that the on-premise banquet license applicant is carrying public
2960 liability insurance in an amount and form satisfactory to the department;
2961 (ix) evidence that the on-premise banquet license applicant is carrying dramshop
2962 insurance coverage of at least [$500,000] $1,000,000 per occurrence and [$1,000,000]
2963 $2,000,000 in the aggregate;
2964 (x) a signed consent form stating that the on-premise banquet license applicant will
2965 permit any authorized representative of the commission, department, or any law enforcement
2966 officer unrestricted right to enter the on-premise banquet premises;
2967 (xi) in the case of an applicant that is a partnership, corporation, or limited liability
2968 company, proper verification evidencing that the person or persons signing the on-premise
2969 banquet license application are authorized to so act on behalf of the partnership, corporation,

2970 or limited liability company; and
2971 (xii) any other information the commission or department may require.
2972 (b) An applicant need not meet the requirements of Subsections (1)(a)(i), (ii), (iii),
2973 (iv), and (vi) if the applicant is:
2974 (i) a state agency; or
2975 (ii) a political subdivision of the state including:
2976 (A) a county; or
2977 (B) a municipality.
2978 (2) Additional locations in or on the premises of an on-premise banquet license
2979 applicant's business from which the on-premise banquet license applicant may propose that
2980 alcoholic beverages may be stored, sold or served, or consumed, not included in the applicant's
2981 original application may be approved by the department upon proper application, in
2982 accordance with guidelines approved by the commission.
2983 (3) (a) [All] An on-premise banquet [licenses expire] license expires on October 31 of
2984 each year.
2985 (b) (i) Except as provided in Subsection (3)(b)(ii), a person desiring to renew that
2986 person's on-premise banquet license shall submit a renewal fee of $500 and a completed
2987 renewal application to the department no later than September 30.
2988 (ii) A licensee is not required to submit the renewal fee if the licensee is:
2989 (A) a state agency; or
2990 (B) a political subdivision of the state including:
2991 (I) a county; or
2992 (II) a municipality.
2993 (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
2994 the license effective on the date the existing license expires.
2995 (d) A renewal application shall be in a form as prescribed by the department.
2996 (4) To ensure compliance with Subsection 32A-4-406 (24), the commission may
2997 suspend or revoke an on-premise banquet license if the on-premise banquet licensee fails to

2998 immediately notify the department of any change in:
2999 (a) ownership of the licensee;
3000 (b) for a corporate owner, the:
3001 (i) corporate officers or directors; or
3002 (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
3003 corporation; or
3004 (c) for a limited liability company:
3005 (i) managers; or
3006 (ii) members owning at least 20% of the limited liability company.
3007 Section 23. Section 32A-4a-101 is enacted to read:
3008 CHAPTER 4a. RESORT LICENSE ACT
3009 Part 1. General Provisions
3010 32A-4a-101. Title.
3011 This chapter is known as the "Resort License Act."
3012 Section 24. Section 32A-4a-102 is enacted to read:
3013 32A-4a-102. Definitions.
3014 As used in this chapter:
3015 (1) "Boundary of a resort building" means the physical boundary of the land
3016 reasonably related to a resort building and any structure or improvement to that land as
3017 determined by the commission.
3018 (2) "Dwelling" means a portion of a resort building:
3019 (a) owned by one or more individuals;
3020 (b) that is used or designated for use as a residence by one or more persons; and
3021 (c) that may be rented, loaned, leased, or hired out for a period of no longer than 30
3022 consecutive days by a person who uses it for a residence.
3023 (3) "Engaged in the management of the resort" may be defined by the commission by
3024 rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
3025 (4) "Invitee" means an individual who in accordance with Subsection 32A-4a-305 (3)

3026 is authorized to use a resort spa by a host who is:
3027 (a) a resident; or
3028 (b) a public customer.
3029 (5) "Provisions applicable to a sublicense" means:
3030 (a) for a restaurant sublicense, Chapter 4, Part 1, Restaurant Liquor Licenses;
3031 (b) for a limited restaurant sublicense, Chapter 4, Part 3, Limited Restaurant Licenses;
3032 (c) for an on-premise banquet sublicense, Chapter 4, Part 4, On-Premise Banquet
3033 License;
3034 (d) for a resort spa sublicense, Chapter 4a, Part 3, Resort Spa Sublicense;
3035 (e) for a club sublicense, Chapter 5, Club Licenses; and
3036 (f) for an on-premise beer retailer sublicense, Chapter 10, Beer Retailer Licenses.
3037 (6) "Public customer" means an individual who holds a customer card in accordance
3038 with Subsection 32A-4a-305 (4).
3039 (7) "Resident" means an individual who:
3040 (a) owns a dwelling located within a resort building; or
3041 (b) rents lodging accommodations for 30 consecutive days or less from:
3042 (i) an owner of a dwelling described in Subsection (7)(a); or
3043 (ii) the resort licensee.
3044 (8) "Resort" means a location:
3045 (a) on which is located one resort building; and
3046 (b) that is affiliated with a ski area that physically touches the boundary of the resort
3047 building.
3048 (9) "Resort building" means a building:
3049 (a) that is primarily operated for the purpose of providing dwellings or lodging
3050 accommodations;
3051 (b) that has at least 150 units that consist of a dwelling or lodging accommodations;
3052 (c) that consists of at least 400,000 square feet:
3053 (i) including only the building itself; and

3054 (ii) not including areas such as above ground surface parking; and
3055 (d) of which at least 50% of the units described in Subsection (9)(b) consist of
3056 dwellings owned by a person other than the resort licensee.
3057 (10) "Resort spa" means a spa, as defined by rule by the commission made in
3058 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that is within the
3059 boundary of a resort building.
3060 (11) "Sublicense" means:
3061 (a) a restaurant sublicense;
3062 (b) a limited restaurant sublicense;
3063 (c) an on-premise banquet sublicense;
3064 (d) a resort spa sublicense;
3065 (e) a club sublicense; or