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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
             3066          (f) an on-premise beer retailer sublicense.
             3067          (12) "Sublicense premises" means a building, enclosure, room, or equipment used
             3068      pursuant to a sublicense in connection with the sale, storage, service, furnishing, or
             3069      consumption of an alcoholic product, unless otherwise defined in this title or in the rules
             3070      adopted by the commission in accordance with Title 63G, Chapter 3, Utah Administrative
             3071      Rulemaking Act.
             3072          Section 25. Section 32A-4a-201 is enacted to read:
             3073     
Part 2. Licensing

             3074          32A-4a-201. Commission's power to license a resort -- Limitations.
             3075          (1) (a) The commission may grant to a person a resort license for the purpose of
             3076      allowing the storage, sale, service, and consumption of an alcoholic beverage in connection
             3077      with a resort designated in the resort license if the person operates at least four sublicenses
             3078      under the resort license.
             3079          (b) A resort license shall:
             3080          (i) consist of:
             3081          (A) a general resort license; and


             3082          (B) the four or more sublicenses; and
             3083          (ii) designate the boundary of the resort building.
             3084          (c) This chapter does not prohibit an alcoholic beverage on the boundary of the resort
             3085      building to the extent otherwise permitted by this title.
             3086          (d) The commission may not grant a sublicense that is separate from a resort license.
             3087          (2) (a) The total number of resort licenses may not at any time aggregate more than
             3088      four.
             3089          (b) The commission may not include a sublicense in determining whether or not the
             3090      total number of licenses granted under the provisions applicable to the sublicense aggregate
             3091      more than a number calculated by dividing the population of the state by the number specified
             3092      in the provisions applicable to the sublicense.
             3093          (c) Notwithstanding Subsection (2)(b), the commission may not grant to a person a
             3094      license under the provisions applicable to a sublicense that on May 11, 2009, was not
             3095      available because the sublicense was included in determining if the total number of licenses
             3096      granted under the provisions applicable to the sublicense aggregate more than the number
             3097      calculated by dividing the population of the state by the number specified in the provisions
             3098      applicable to the sublicense.
             3099          (d) By no later than the November 2009 interim meeting of the Business and Labor
             3100      Interim Committee, the department shall:
             3101          (i) report to the Business and Labor Interim Committee the number and types of
             3102      sublicenses under a resort license granted by the commission as of September 30, 2009; and
             3103          (ii) recommend legislation to adjust the numbers in the provisions applicable to
             3104      sublicenses to reflect the number of sublicenses that because of the issuance of a resort license
             3105      are not included in determining whether or not the total number of licenses granted under the
             3106      provisions applicable to a sublicense aggregate more than a number calculated by dividing the
             3107      population of the state by the number specified in the provisions applicable to the sublicense.
             3108          (3) (a) Except as provided in Subsection (3)(b), (c), or (d), a resort building may not
             3109      be granted if the resort building is:


             3110          (i) within 600 feet of a community location, as measured by the method in Subsection
             3111      (3)(e); or
             3112          (ii) within 200 feet of a community location, measured in a straight line from the
             3113      nearest entrance of the proposed outlet to the nearest property boundary of the community
             3114      location.
             3115          (b) With respect to the establishment of a resort license, the commission may
             3116      authorize a variance to reduce the proximity requirement of Subsection (3)(a)(i) if:
             3117          (i) the local authority grants its written consent to the variance;
             3118          (ii) the commission finds that alternative locations for establishing a resort license in
             3119      the community are limited;
             3120          (iii) the variance is authorized after a public hearing is held in the city, town, or
             3121      county, and where practical in the neighborhood concerned;
             3122          (iv) after giving full consideration to all of the attending circumstances and the
             3123      policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
             3124      establishing the resort license would not be detrimental to the public health, peace, safety, and
             3125      welfare of the community; and
             3126          (v) (A) the community location governing authority gives its written consent to the
             3127      variance; or
             3128          (B) when written consent is not given by the community location governing authority,
             3129      the commission finds that the applicant has established that:
             3130          (I) there is substantial unmet public demand to consume alcohol in a public setting
             3131      within the geographic boundary of the local authority in which the resort building is to be
             3132      located;
             3133          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             3134      described in Subsection (3)(b)(v)(B)(I) other than through the establishment of a resort
             3135      license; and
             3136          (III) there is no reasonably viable alternative location within the geographic boundary
             3137      of the local authority in which the resort building is to be located for establishing a resort


             3138      license to satisfy the unmet demand described in Subsection (3)(b)(v)(B)(I).
             3139          (c) With respect to the establishment of a resort license, the commission may authorize
             3140      a variance that reduces the proximity requirement of Subsection (3)(a)(ii) if:
             3141          (i) the community location at issue is:
             3142          (A) a public library; or
             3143          (B) a public park;
             3144          (ii) the local authority grants its written consent to the variance;
             3145          (iii) the commission finds that alternative locations for establishing a resort license in
             3146      the community are limited;
             3147          (iv) a public hearing is held in the city, town, or county, and where practical in the
             3148      neighborhood concerned;
             3149          (v) after giving full consideration to all of the attending circumstances and the policies
             3150      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             3151      resort license would not be detrimental to the public health, peace, safety, and welfare of the
             3152      community; and
             3153          (vi) (A) the community location governing authority gives its written consent to the
             3154      variance; or
             3155          (B) when written consent is not given by the community location governing authority,
             3156      the commission finds that the applicant has established that:
             3157          (I) there is substantial unmet public demand to consume alcohol in a public setting
             3158      within the geographic boundary of the local authority in which the resort building is to be
             3159      located;
             3160          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             3161      described in Subsection (3)(c)(vi)(B)(I) other than through the establishment of a resort
             3162      license; and
             3163          (III) there is no reasonably viable alternative location within the geographic boundary
             3164      of the local authority in which the resort building is to be located for establishing a resort
             3165      license to satisfy the unmet demand described in Subsection (3)(c)(vi)(B)(I).


             3166          (d) With respect to a resort building of a resort license granted by the commission that
             3167      undergoes a change of ownership, the commission may waive or vary the proximity
             3168      requirements of Subsection (3)(a) in considering whether to grant a resort license to the new
             3169      owner of the resort license if the resort license previously received a variance reducing the
             3170      proximity requirement of Subsection (3)(a)(i).
             3171          (e) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
             3172      nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to
             3173      the property boundary of the community location.
             3174          (4) (a) Nothing in this section prevents the commission from considering the
             3175      proximity of an educational, religious, or recreational facility, or any other relevant factor in
             3176      reaching a decision on a proposed location.
             3177          (b) For purposes of this Subsection (4), "educational facility" includes:
             3178          (i) a nursery school;
             3179          (ii) an infant day care center; and
             3180          (iii) a trade and technical school.
             3181          Section 26. Section 32A-4a-202 is enacted to read:
             3182          32A-4a-202. Application and renewal requirements.
             3183          (1) A person seeking a resort license under this chapter shall file a written application
             3184      with the department, in a form prescribed by the department. The application shall be
             3185      accompanied by:
             3186          (a) a nonrefundable $250 application fee;
             3187          (b) an initial license fee, which is refundable if a resort license is not granted,
             3188      calculated as follows:
             3189          (i) $10,000 if four sublicenses are being applied for under the resort license; or
             3190          (ii) if more than four sublicenses are being applied for under the resort license, the
             3191      sum of:
             3192          (A) $10,000; and
             3193          (B) $2,000 for each sublicense in excess of four sublicenses for which the applicant is


             3194      applying;
             3195          (c) written consent of the local authority;
             3196          (d) a copy of:
             3197          (i) the applicant's current business license; and
             3198          (ii) the current business license for each sublicense, if the business license is separate
             3199      from the applicant's business license;
             3200          (e) evidence:
             3201          (i) of proximity of the resort building to any community location, with proximity
             3202      requirements being governed by Section 32A-4a-201 ;
             3203          (ii) that each of the four or more sublicense premises is entirely within the boundaries
             3204      of the resort building; and
             3205          (iii) that the building designated in the application as the resort building qualifies as a
             3206      resort building as defined in Section 32A-4a-102 ;
             3207          (f) a bond as specified by Section 32A-4a-205 ;
             3208          (g) a description and boundary map of the resort building;
             3209          (h) a description, floor plan, and boundary map of each sublicense premises
             3210      designating:
             3211          (i) any location at which the resort license applicant proposes that an alcoholic
             3212      beverage be stored; and
             3213          (ii) a designated location on the sublicense premises from which the resort license
             3214      applicant proposes that an alcoholic beverage be sold or served and consumed;
             3215          (i) evidence that the resort license applicant carries public liability insurance in an
             3216      amount and form satisfactory to the department;
             3217          (j) evidence that the resort license applicant carries dramshop insurance coverage
             3218      equal to the sum of at least $1,000,000 per occurrence and $2,000,000 in the aggregate to
             3219      cover both the general resort license and each sublicense;
             3220          (k) a signed consent form stating that the resort license applicant will permit any
             3221      authorized representative of the commission, department, or any law enforcement officer


             3222      unrestricted right to enter the boundary of the resort building and each sublicense premises;
             3223          (l) if an applicant is a partnership, corporation, or limited liability company, proper
             3224      verification evidencing that the one or more persons signing the resort license application are
             3225      authorized to so act on behalf of the partnership, corporation, or limited liability company; and
             3226          (m) any other information the commission or department may require.
             3227          (2) An additional location in a sublicense premises of a resort license applicant's
             3228      business from which the resort license applicant may propose that an alcoholic beverage may
             3229      be stored, sold or served, or consumed, not included in the applicant's original application,
             3230      may be approved by the department upon proper application.
             3231          (3) (a) A resort license expires on October 31 of each year.
             3232          (b) A resort licensee who wants to renew a resort license shall submit to the
             3233      department by no later than September 30:
             3234          (i) a renewal fee of $1,000 for each sublicense under the resort license; and
             3235          (ii) a completed renewal application.
             3236          (c) A resort licensee's failure to meet a renewal requirement results in an automatic
             3237      forfeiture of the resort license and each sublicense effective on the date the existing license
             3238      expires.
             3239          (d) A renewal application shall be in a form as prescribed by the department.
             3240          (4) To ensure compliance with Subsection 32A-4a-401 (14), the commission may
             3241      suspend or revoke a resort license if the resort licensee fails to immediately notify the
             3242      department of a change in:
             3243          (a) ownership of the resort licensee;
             3244          (b) for a corporate owner of a resort licensee, the:
             3245          (i) corporate officers or directors; or
             3246          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             3247      corporation; or
             3248          (c) for a limited liability company owner or a resort licensee:
             3249          (i) managers; or


             3250          (ii) members owning at least 20% of the limited liability company.
             3251          Section 27. Section 32A-4a-203 is enacted to read:
             3252          32A-4a-203. Qualifications.
             3253          (1) (a) The commission may not grant a license to a person who is convicted of:
             3254          (i) a felony under a federal or state law;
             3255          (ii) a violation of a federal or state law or local ordinance concerning the sale,
             3256      manufacture, distribution, warehousing, adulteration, or transportation of an alcoholic
             3257      beverage;
             3258          (iii) a crime involving moral turpitude; or
             3259          (iv) on two or more occasions within the five years before the day on which the resort
             3260      license is granted, driving under the influence of alcohol, a drug, or the combined influence of
             3261      alcohol and a drug.
             3262          (b) For a partnership, corporation, or limited liability company, the proscription under
             3263      Subsection (1)(a) applies if any of the following that will be engaged in the management of the
             3264      resort is convicted of an offense described in Subsection (1)(a):
             3265          (i) a partner;
             3266          (ii) a managing agent;
             3267          (iii) a manager;
             3268          (iv) an officer;
             3269          (v) a director;
             3270          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             3271      the applicant corporation; or
             3272          (vii) a member who owns at least 20% of the applicant limited liability company.
             3273          (c) The proscription under Subsection (1)(a) applies if a person employed to act in a
             3274      supervisory or managerial capacity for the resort licensee or in relation to a sublicense is
             3275      convicted of an offense described in Subsection (1)(a).
             3276          (2) Subject to Section 32A-4a-501 , the commission may immediately suspend or
             3277      revoke a resort license or a sublicense, if after the day on which the resort license is granted, a


             3278      person described in Subsection (1)(a), (b), or (c):
             3279          (a) is found to have been convicted of an offense described in Subsection (1)(a) before
             3280      the resort license is granted; or
             3281          (b) on or after the day on which the resort license is granted:
             3282          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             3283          (ii) (A) is convicted of driving under the influence of alcohol, a drug, or the combined
             3284      influence of alcohol and a drug; and
             3285          (B) was convicted of driving under the influence of alcohol, a drug, or the combined
             3286      influence of alcohol and a drug within five years before the day on which the person is
             3287      convicted of the offense described in Subsection (2)(b)(ii)(A).
             3288          (3) Subject to Subsection 32A-4a-501 , the director may take emergency action by
             3289      immediately suspending the operation of a resort license or sublicense in accordance with Title
             3290      63G, Chapter 4, Administrative Procedures Act, for the period during which the criminal
             3291      matter is being adjudicated if a person described in Subsection (1)(a), (b), or (c):
             3292          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             3293      or
             3294          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             3295      a drug, or the combined influence of alcohol and a drug; and
             3296          (ii) was convicted of driving under the influence of alcohol, a drug, or the combined
             3297      influence of alcohol and a drug within five years before the day on which the person is arrested
             3298      on a charge described in Subsection (3)(b)(i).
             3299          (4) (a) (i) The commission may not grant a resort license to a person who has had any
             3300      type of license, agency, or permit granted under this title revoked within the three years before
             3301      the day on which the application for a resort license is filed.
             3302          (ii) The commission may not grant a resort license to an applicant that is a partnership,
             3303      corporation, or limited liability company if a partner, managing agent, manager, officer,
             3304      director, or stockholder who holds at least 20% of the total issued and outstanding stock of an
             3305      applicant corporation, or member who owns at least 20% of an applicant limited liability


             3306      company, will engage in the management of the resort, and is or was:
             3307          (A) a partner or managing agent of a partnership that had any type of license, agency,
             3308      or permit issued under this title revoked within three years prior to the day on which the
             3309      application for the resort license is filed;
             3310          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             3311      of the total issued and outstanding stock of a corporation that had any type of license, agency,
             3312      or permit issued under this title revoked within three years before the day on which the
             3313      application for the resort license is filed; or
             3314          (C) a manager or member who owns or owned at least 20% of a limited liability
             3315      company that had any type of license, agency, or permit issued under this title revoked within
             3316      three years prior to the day on which the application for the resort license is filed.
             3317          (b) The commission may not grant a resort license to an applicant that is a partnership,
             3318      corporation, or limited liability company if any of the following who will engage in the
             3319      management of the resort had any type of license, agency, or permit issued under this title
             3320      revoked while acting in their individual capacity within three years before the day on which
             3321      the application for the resort license is filed:
             3322          (i) a partner or managing agent of the applicant partnership;
             3323          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             3324      total issued and outstanding stock of the applicant corporation; or
             3325          (iii) a manager or member who owns at least 20% of the applicant limited liability
             3326      company.
             3327          (c) The commission may not grant a person acting in an individual capacity a resort
             3328      license if that person was:
             3329          (i) a partner or managing agent of a partnership that had any type of license, agency,
             3330      or permit granted under this title revoked within three years prior to the day on which the
             3331      application for the resort license is filed;
             3332          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             3333      total issued and outstanding stock of a corporation that had any type of license, agency, or


             3334      permit issued under this title revoked within three years prior to the day on which the
             3335      application for the resort license is filed; or
             3336          (iii) a manager or member who owned at least 20% of the limited liability company
             3337      that had any type of license, agency, or permit issued under this title revoked within three
             3338      years prior to the day on which the application for the resort license is filed.
             3339          (5) (a) The commission may not grant a minor a resort license.
             3340          (b) The commission may not grant a resort license to an applicant that is a partnership,
             3341      corporation, or limited liability company if any of the following is a minor:
             3342          (i) a partner or managing agent of the applicant partnership;
             3343          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             3344      total issued and outstanding stock of the applicant corporation; or
             3345          (iii) a manager or member who owns at least 20% of the applicant limited liability
             3346      company.
             3347          (6) Subject to Section 32A-4a-501 , if a person to whom a resort license is granted
             3348      under this chapter no longer possesses the qualifications required by this title for obtaining the
             3349      resort license, the commission may suspend or revoke the resort license.
             3350          (7) (a) A person employed to act in a supervisory or managerial capacity for a
             3351      sublicense is subject to the qualification requirements in the provisions applicable to the
             3352      sublicense.
             3353          (b) If a person described under Subsection (7)(a) no longer possesses the qualifications
             3354      required by this Subsection (7), the commission may suspend or revoke the sublicense that is
             3355      part of the resort license.
             3356          Section 28. Section 32A-4a-204 is enacted to read:
             3357          32A-4a-204. Commission and department duties before granting resort license.
             3358          (1) (a) Before the commission may grant a resort license, the department shall conduct
             3359      an investigation, and may hold public hearings for the purpose of gathering information and
             3360      making recommendations to the commission as to whether or not a resort license, including
             3361      each sublicense, should be granted.


             3362          (b) The department shall forward the information and recommendations described in
             3363      Subsection (1)(a) to the commission to aid in the commission's determination.
             3364          (2) Before granting a resort license, the commission shall:
             3365          (a) determine that the applicant complies with all basic qualifications and
             3366      requirements for making an application for a resort license as provided by Sections
             3367      32A-4a-202 and 32A-4a-203 ;
             3368          (b) determine that the application is complete;
             3369          (c) consider, where appropriate, a location that the resort license applicant proposes to
             3370      designate for use under the resort license or a sublicense, including:
             3371          (i) the physical characteristics of the location such as:
             3372          (A) the condition of the location;
             3373          (B) square footage; and
             3374          (C) parking availability; and
             3375          (ii) operational factors such as:
             3376          (A) tourist traffic;
             3377          (B) demographics; and
             3378          (C) population to be served;
             3379          (d) consider the resort license applicant's ability to manage and operate a resort license
             3380      and the ability of any individual who will act in a supervisory or managerial capacity for a
             3381      sublicense, including:
             3382          (i) past management experience;
             3383          (ii) past alcohol license experience; and
             3384          (iii) the type of management scheme to be employed by the resort license applicant;
             3385          (e) consider the nature or type of:
             3386          (i) the resort license applicant's business operation; and
             3387          (ii) the business operation of each sublicense;
             3388          (f) subject to Subsection (3), determine that each sublicense meets the requirements
             3389      imposed under the provisions applicable to each sublicense; and


             3390          (g) consider any other factor or circumstance the commission considers necessary.
             3391          (3) (a) Subject to Subsection (3)(b), notwithstanding the requirements to obtain a
             3392      license under the provisions applicable to a sublicense, a sublicense of a resort license is not
             3393      subject to:
             3394          (i) a requirement to submit an application or renewal application that is separate from
             3395      the resort license application;
             3396          (ii) a requirement to carry public liability insurance or dramshop insurance coverage
             3397      that is separate from that carried by the resort licensee; or
             3398          (iii) post a bond that is separate from the bond posted by the resort licensee.
             3399          (b) If a resort licensee seeks to add a sublicense after its resort license is granted, the
             3400      resort licensee shall file with the department:
             3401          (i) a nonrefundable $250 application fee;
             3402          (ii) an initial license fee of $2,000, which is refundable if the sublicense is not granted;
             3403          (iii) written consent of the local authority;
             3404          (iv) a copy of:
             3405          (A) the resort licensee's current business license; and
             3406          (B) the current business license for the sublicense, if the business licensee is separate
             3407      from the resort licensee's business license;
             3408          (v) evidence that the sublicense premises is entirely within the boundary of the resort
             3409      building;
             3410          (vi) a description, floor plan, and boundary map of the sublicense premises
             3411      designating:
             3412          (A) a location at which the resort license applicant proposes that an alcoholic beverage
             3413      be stored; and
             3414          (B) a designated location on the sublicense premises from which the resort license
             3415      applicant proposes that an alcoholic beverage be sold, dispensed, served, and consumed;
             3416          (vii) evidence that the resort license applicant carries public liability insurance in an
             3417      amount and form satisfactory to the department;


             3418          (viii) evidence that the resort license applicant carries dramshop insurance coverage in
             3419      the amount required by Section 32A-4a-202 that covers the sublicense to be added;
             3420          (ix) a signed consent form stating that the resort licensee will permit any authorized
             3421      representative of the commission, department, or any law enforcement officer unrestricted
             3422      right to enter the sublicense premises;
             3423          (x) if the resort licensee is a partnership, corporation, or limited liability company,
             3424      proper verification evidencing that the one or more persons signing the sublicense application
             3425      are authorized to so act on behalf of the partnership, corporation, or limited liability company;
             3426      and
             3427          (xi) any other information the commission or department may require.
             3428          Section 29. Section 32A-4a-205 is enacted to read:
             3429          32A-4a-205. Bond.
             3430          (1) (a) A resort licensee shall procure and post a cash or corporate surety bond payable
             3431      to the department in the penal sum of $25,000.
             3432          (b) A resort licensee shall maintain the bond described in Subsection (1)(a) for as long
             3433      as the resort licensee operates as a resort licensee.
             3434          (c) A resort licensee is not required to have a separate bond for each sublicense, except
             3435      that the aggregate of any bonds posted by the resort licensee shall cover each sublicense under
             3436      the resort license.
             3437          (2) A bond described in Subsection (1) shall be in a form approved by the attorney
             3438      general, conditioned upon the resort licensee's faithful compliance with this title and the rules
             3439      of the commission.
             3440          (3) (a) If a bond described in Subsection (1) is canceled due to a resort licensee's
             3441      negligence, the commission may assess a $300 reinstatement fee.
             3442          (b) No part of a bond described in Subsection (1) may be withdrawn:
             3443          (i) during the period a resort license is in effect; or
             3444          (ii) while a revocation proceeding is pending against the resort licensee that posts the
             3445      bond.


             3446          (c) A bond filed by a resort licensee may be forfeited if the resort license is revoked.
             3447          Section 30. Section 32A-4a-301 is enacted to read:
             3448     
Part 3. Resort Spa Sublicense

             3449          32A-4a-301. Commission's power to grant resort spa sublicense -- Limitations.
             3450          (1) Before a resort spa may sell or allow the consumption of an alcoholic beverage on
             3451      the resort spa sublicense premises, a resort licensee or an applicant for a resort license shall
             3452      first obtain a resort spa sublicense from the commission as provided in this part.
             3453          (2) The commission may grant a resort spa sublicense for the purpose of establishing a
             3454      resort spa outlet within the boundary of a resort building for the storage, sale, and
             3455      consumption of liquor on premises operated as a resort spa.
             3456          (3) The resort spa sublicense premises must fall entirely within the boundary of a
             3457      resort building.
             3458          Section 31. Section 32A-4a-302 is enacted to read:
             3459          32A-4a-302. Application and renewal requirements.
             3460          (1) A person seeking a resort spa sublicense under this part may not file a written
             3461      application with the department that is separate from the application of the resort license,
             3462      unless the resort spa sublicense is being sought after the granting of a resort license.
             3463          (2) If a resort licensee seeks to add a resort spa sublicense after its resort license is
             3464      granted, the resort licensee shall in accordance with Subsection 32A-4a-204 (3) file a written
             3465      application with the department, in a form prescribed by the department. The application shall
             3466      be accompanied by:
             3467          (a) a nonrefundable $250 application fee;
             3468          (b) an initial license fee of $2,000, which is refundable if the resort spa sublicense is
             3469      not granted;
             3470          (c) written consent of the local authority;
             3471          (d) a copy of:
             3472          (i) the resort licensee's current business license; and
             3473          (ii) a business license for the resort spa, if the business license is separate from the


             3474      resort licensee's business license;
             3475          (e) evidence that the resort spa sublicense premises are entirely within the boundary of
             3476      a resort building;
             3477          (f) a floor or similar plan of the resort spa, including consumption areas and the area
             3478      where the resort licensee proposes to keep, store, and sell liquor;
             3479          (g) evidence that the resort licensee carries public liability insurance in an amount and
             3480      form satisfactory to the department;
             3481          (h) evidence that the resort licensee's dramshop insurance coverage required under
             3482      Section 32A-4a-202 covers the resort spa sublicense;
             3483          (i) a signed consent form stating that the resort licensee will permit any authorized
             3484      representative of the commission, department, or any law enforcement officer unrestricted
             3485      right to enter the resort spa sublicense premises;
             3486          (j) if an applicant is a partnership, corporation, or limited liability company, proper
             3487      verification evidencing that the person or persons signing the application are authorized to so
             3488      act on behalf of the partnership, corporation, or limited liability company; and
             3489          (k) any other information the commission or department may require.
             3490          (3) (a) A resort spa sublicense expires on October 31 of each year.
             3491          (b) A resort licensee desiring to renew the resort licensee's resort spa sublicense shall
             3492      renew the resort spa sublicense as part of renewing the resort license.
             3493          (c) Failure to meet the renewal requirements for a resort license results in an automatic
             3494      forfeiture of the resort spa sublicense effective on the date the resort license expires.
             3495          (d) A renewal application shall be in a form as prescribed by the department.
             3496          (4) To ensure compliance with Subsection 32A-4a-305 (30), the commission may
             3497      suspend or revoke a resort spa sublicense if the resort licensee does not immediately notify the
             3498      department of a change described in Subsection 32A-4a-202 (4).
             3499          Section 32. Section 32A-4a-303 is enacted to read:
             3500          32A-4a-303. Qualifications.
             3501          (1) A person employed to act in a supervisory or managerial capacity for the resort spa


             3502      sublicense is subject to qualification requirements of Section 32A-4a-203 .
             3503          (2) If a person no longer possesses the qualifications required by Section 32A-4a-203
             3504      for obtaining the resort license or resort spa sublicense, the commission may suspend or
             3505      revoke the resort spa sublicense that is part of the resort license.
             3506          Section 33. Section 32A-4a-304 is enacted to read:
             3507          32A-4a-304. Commission and department duties before granting a resort spa
             3508      sublicense.
             3509          (1) (a) If a resort licensee seeks to add a resort spa sublicense after the resort license is
             3510      granted, before the commission may grant a resort spa sublicense, the department shall
             3511      conduct an investigation and may hold public hearings for the purpose of gathering
             3512      information and making recommendations to the commission as to whether or not the resort
             3513      spa sublicense should be granted.
             3514          (b) The department shall forward the information and recommendations described in
             3515      Subsection (1)(a) to the commission to aid in the commission's determination.
             3516          (2) Before granting a resort spa sublicense, the commission shall:
             3517          (a) determine that:
             3518          (i) the resort licensee seeking the resort spa sublicense has complied with all basic
             3519      qualifications and requirements for making application for a resort spa sublicense as provided
             3520      by Sections 32A-4a-302 and 32A-4a-303 ; and
             3521          (ii) the application is complete;
             3522          (b) consider the location within which the resort spa outlet is located, including:
             3523          (i) physical characteristics such as:
             3524          (A) condition of the location;
             3525          (B) square footage; and
             3526          (C) parking availability; and
             3527          (ii) operational factors such as:
             3528          (A) tourist traffic;
             3529          (B) demographics;


             3530          (C) population to be served; and
             3531          (D) the extent of and proximity to any community location;
             3532          (c) consider the resort licensee's ability to manage and operate a resort spa sublicense
             3533      and the ability of any person who will act in a supervisory or managerial capacity for the resort
             3534      spa to manage and operate a resort spa license, including:
             3535          (i) management experience;
             3536          (ii) past retail liquor experience; and
             3537          (iii) the type of management scheme employed by the resort spa;
             3538          (d) consider the nature or type of resort spa operation under the proposed resort spa
             3539      sublicense, including:
             3540          (i) the type of menu items offered and emphasized;
             3541          (ii) whether the resort spa emphasizes service to an adult clientele or minors;
             3542          (iii) the hours of operation;
             3543          (iv) the seating capacity of the resort spa; and
             3544          (v) the gross sales of food items; and
             3545          (e) consider any other factors or circumstances the commission considers necessary.
             3546          Section 34. Section 32A-4a-305 is enacted to read:
             3547          32A-4a-305. Operational restrictions.
             3548          (1) (a) A person granted a resort license and the employees and management personnel
             3549      of the resort licensee or otherwise related to a resort spa sublicense shall comply with this title,
             3550      the rules of the commission, and the conditions and requirements in this section in the
             3551      operation of the resort spa.
             3552          (b) Subject to Section 32A-4a-502 , failure to comply with this section may result in a
             3553      suspension or revocation of the resort license or resort spa sublicense, or other disciplinary
             3554      action taken against individual employees or management personnel.
             3555          (2) Subject to the other provisions of this section, a person operating under a resort spa
             3556      sublicense may not sell an alcoholic beverage to or allow a person to be admitted to or use the
             3557      resort spa sublicense premises other than:


             3558          (a) a resident;
             3559          (b) a public customer who holds a valid customer card issued under Subsection (4); or
             3560          (c) an invitee.
             3561          (3) A person operating under a resort spa sublicense may allow an individual to be
             3562      admitted to or use the resort spa sublicense premises as an invitee subject to the following
             3563      conditions:
             3564          (a) the individual must be previously authorized by one of the following who agrees to
             3565      host the individual as an invitee into the resort spa:
             3566          (i) a resident; or
             3567          (ii) a public customer who holds a valid customer card issued under Subsection (4);
             3568          (b) the individual has only those privileges derived from the individual's host for the
             3569      duration of the invitee's visit to the resort spa; and
             3570          (c) a resort licensee, resort spa, or an employee of the resort licensee or resort spa may
             3571      not enter into an agreement or arrangement with a resident or public customer to
             3572      indiscriminately host a member of the general public into the resort spa as an invitee.
             3573          (4) A person operating under a resort spa sublicense may issue a customer card to
             3574      allow an individual to enter and use the resort spa sublicense premises on a temporary basis
             3575      under the following conditions:
             3576          (a) the resort spa may not issue a customer card for a time period that exceeds three
             3577      weeks;
             3578          (b) the resort spa shall assess a fee to a public customer for a customer card;
             3579          (c) the resort spa may not issue a customer card to a minor; and
             3580          (d) a public customer may not host more than seven invitees at one time.
             3581          (5) (a) For purposes of the resort spa sublicense, the resort licensee shall ensure that an
             3582      expense ledger or record is maintained showing in detail:
             3583          (i) quarterly expenditures for the resort spa separated by payments for:
             3584          (A) malt or brewed beverage;
             3585          (B) liquor;


             3586          (C) food;
             3587          (D) set-ups; and
             3588          (E) any other item required by the department; and
             3589          (ii) sales made separately for:
             3590          (A) malt or brewed beverages;
             3591          (B) liquor;
             3592          (C) food;
             3593          (D) set-ups; and
             3594          (E) any other item required by the department.
             3595          (b) For purposes of the resort spa sublicense, the resort licensee shall ensure that a
             3596      record required by this Subsection (5) is kept:
             3597          (i) in a form approved by the department; and
             3598          (ii) current for each three-month period.
             3599          (c) An expenditure under resort spa sublicense shall be supported by:
             3600          (i) a delivery ticket;
             3601          (ii) an invoice;
             3602          (iii) a receipted bill;
             3603          (iv) a canceled check;
             3604          (v) a petty cash voucher; or
             3605          (vi) other sustaining datum or memorandum.
             3606          (d) In addition to a ledger or record required by Subsection (5)(a), for purposes of the
             3607      resort spa sublicense, a resort licensee shall ensure that accounting and other records and
             3608      documents as the department may require are maintained.
             3609          (e) A resort licensee or an employee acting for the resort licensee or under a resort spa
             3610      sublicense, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes an
             3611      entry in a book of account or other document for a resort spa sublicense required to be made,
             3612      maintained, or preserved by this title or the rules of the commission for the purpose of
             3613      deceiving the commission, the department, or an official or employee of the commission or


             3614      department, is subject to:
             3615          (i) the suspension or revocation of the resort spa sublicense; and
             3616          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             3617          (f) (i) For purposes of the resort spa sublicense, the resort licensee shall ensure that a
             3618      record required by this section is kept and maintained, and a book, record, receipt, or
             3619      disbursement is maintained or used for the resort spa sublicense:
             3620          (A) as the department requires; and
             3621          (B) for a minimum period of three years.
             3622          (ii) A record, book, receipt, or disbursement is subject to inspection by an authorized
             3623      representative of the commission and the department.
             3624          (iii) A resort licensee shall allow the department, through an auditor or examiner of the
             3625      department, to audit the records for a resort spa sublicense at the times the department
             3626      considers advisable.
             3627          (iv) The department shall audit the records for a resort spa sublicense at least once
             3628      annually.
             3629          (6) A resort licensee shall own or lease premises suitable for the resort spa's activities.
             3630          (7) (a) A resort licensee may not maintain a premises in a manner that barricades or
             3631      conceals the resort spa sublicense's operation.
             3632          (b) A member of the commission, authorized department personnel, or a peace officer
             3633      shall, upon presentation of credentials, be admitted immediately to a resort spa sublicense
             3634      premises and permitted without hindrance or delay to inspect completely the entire resort spa
             3635      sublicense premises and the books and records for the resort spa sublicense, at any time during
             3636      which the resort spa sublicense is open for the transaction of business with a resident.
             3637          (8) A resort spa must have food available at all times when an alcoholic beverage is
             3638      sold, served, or consumed on the resort spa sublicense premises.
             3639          (9) (a) Liquor may not be purchased for a resort spa sublicense except from a state
             3640      store or package agency.
             3641          (b) Liquor purchased from a state store or package agency may be transported by the


             3642      resort licensee from the place of purchase to the resort spa sublicense premises.
             3643          (c) Payment for liquor shall be made in accordance with rules established by the
             3644      commission.
             3645          (10) A person operating under a resort spa sublicense may sell or provide a primary
             3646      spirituous liquor only in a quantity not to exceed 1.5 ounces per beverage dispensed through a
             3647      calibrated metered dispensing system approved by the department in accordance with
             3648      commission rules adopted under this title, except that:
             3649          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             3650      system if used as a secondary flavoring ingredient in a beverage subject to the following
             3651      restrictions:
             3652          (i) the secondary ingredient may be dispensed only in conjunction with the purchase
             3653      of a primary spirituous liquor;
             3654          (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
             3655          (iii) the resort licensee shall designate a location where flavorings are stored on the
             3656      floor plan provided to the department; and
             3657          (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
             3658          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             3659      system if used:
             3660          (i) as a flavoring on a dessert; and
             3661          (ii) in the preparation of a flaming food dish, drink, or dessert; and
             3662          (c) a person at a resort spa may have no more than:
             3663          (i) 2.5 ounces of spirituous liquor at a time before the person; or
             3664          (ii) two spirituous liquor drinks at a time before a resort spa patron, except that the
             3665      resort spa patron may not have two spirituous liquor drinks before the resort spa patron if one
             3666      of the spirituous liquor drinks consists only of the primary spirituous liquor for the other
             3667      spirituous liquor drink.
             3668          (11) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             3669      exceed five ounces per glass or individual portion.


             3670          (ii) An individual portion may be served to a person in more than one glass as long as
             3671      the total amount of wine does not exceed five ounces.
             3672          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             3673      Subsection (15)(c).
             3674          (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
             3675      fixed by the commission to a table of four or more persons.
             3676          (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
             3677      fixed by the commission to a table of less than four persons.
             3678          (c) A wine service may be performed and a service charge assessed by a resort spa as
             3679      authorized by commission rule for wine purchased at the resort spa.
             3680          (12) (a) Heavy beer may be served in an original container not exceeding one liter at a
             3681      price fixed by the commission.
             3682          (b) A flavored malt beverage may be served in an original container not exceeding one
             3683      liter at a price fixed by the commission.
             3684          (c) A service charge may be assessed by the resort spa for heavy beer or a flavored
             3685      malt beverage purchased at the resort spa.
             3686          (13) (a) (i) Subject to Subsection (13)(a)(ii), a person operating under a resort spa
             3687      sublicense may sell beer for on-premise consumption:
             3688          (A) in an open container; and
             3689          (B) on draft.
             3690          (ii) Beer sold pursuant to Subsection (13)(a)(i) shall be in a size of container that does
             3691      not exceed two liters, except that beer may not be sold to an individual in a size of container
             3692      that exceeds one liter.
             3693          (b) (i) A person operating under a resort spa sublicense who sells beer pursuant to
             3694      Subsection (13)(a):
             3695          (A) may do so without obtaining a separate on-premise beer retailer license from the
             3696      commission; and
             3697          (B) shall comply with all appropriate operational restrictions under Chapter 10, Beer


             3698      Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
             3699      inconsistent with or less restrictive than the operational restrictions under this part.
             3700          (ii) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             3701      Licenses, required by Subsection (13)(b)(i), may result in a suspension or revocation of:
             3702          (A) the resort spa sublicense; and
             3703          (B) an alcoholic beverage license issued by a local authority.
             3704          (14) An alcoholic beverage may not be stored, served, or sold in a place other than as
             3705      designated in the resort licensee's application, unless the resort licensee first applies for and
             3706      receives approval from the department for a change of location within the resort spa.
             3707          (15) (a) A person may only make an alcoholic beverage purchase in the resort spa
             3708      from and be served by a person employed, designated, and trained by the resort licensee or an
             3709      agent of the resort license to sell, dispense, and serve an alcoholic beverage.
             3710          (b) Notwithstanding Subsection (15)(a), a person who purchases bottled wine from an
             3711      employee described in Subsection (15)(a) or carries bottled wine onto the resort spa sublicense
             3712      premises pursuant to Subsection (22) may thereafter serve wine from the bottle to the person
             3713      or others at the person's table.
             3714          (c) An individual furnished an alcoholic beverage at a resort spa may have no more
             3715      than two alcoholic beverages of any kind at a time before the individual, subject to the
             3716      limitation of Subsection (10)(c)(ii).
             3717          (16) The liquor storage area shall remain locked at all times other than those hours and
             3718      days when liquor sales and service are authorized by law.
             3719          (17) (a) An alcoholic beverage may only be consumed at a table or counter.
             3720          (b) An alcoholic beverage may not be served to or consumed by a person at a bar.
             3721          (18) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             3722      resort spa after 1 a.m. or before 10 a.m.
             3723          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             3724      Licenses, for on-premise beer licenses.
             3725          (c) (i) Notwithstanding Subsections (18)(a) and (b), a resort spa shall remain open for


             3726      one hour after the resort spa ceases the sale and service of an alcoholic beverage during which
             3727      time a person at the resort spa may finish consuming:
             3728          (A) a single drink containing spirituous liquor;
             3729          (B) a single serving of wine not exceeding five ounces;
             3730          (C) a single serving of heavy beer;
             3731          (D) a single serving of beer not exceeding 26 ounces; or
             3732          (E) a single serving of a flavored malt beverage.
             3733          (ii) A resort spa is not required to remain open:
             3734          (A) after all persons have vacated the resort spa sublicense premises; or
             3735          (B) during an emergency.
             3736          (d) Between the hours of 2 a.m. and 10 a.m. a person operating under a resort spa
             3737      sublicense may not allow a person to remain on the resort spa sublicense premises to consume
             3738      an alcoholic beverage on the resort spa sublicense premises.
             3739          (19) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
             3740          (a) minor;
             3741          (b) person actually, apparently, or obviously intoxicated;
             3742          (c) known habitual drunkard; or
             3743          (d) known interdicted person.
             3744          (20) (a) (i) Liquor may be sold only at a price fixed by the commission.
             3745          (ii) Liquor may not be sold at a discount price on any date or at any time.
             3746          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             3747      beverage for the resort spa sublicense.
             3748          (c) An alcoholic beverage may not be sold at a special or reduced price that
             3749      encourages over consumption or intoxication.
             3750          (d) The price of a single serving of a primary spirituous liquor shall be the same
             3751      whether served as a single drink or in conjunction with another alcoholic beverage.
             3752          (e) An alcoholic beverage may not be sold at a special or reduced price for only certain
             3753      hours of the resort spa's business day such as a "happy hour."


             3754          (f) More than one alcoholic beverage may not be sold or served for the price of a
             3755      single alcoholic beverage.
             3756          (g) An indefinite or unlimited number of alcoholic beverages may not be sold or
             3757      served during a set period for a fixed price.
             3758          (h) A person operating under a resort spa sublicense may not engage in a promotion
             3759      involving or offering a free alcoholic beverage to a person at the resort spa.
             3760          (21) An alcoholic beverage may not be purchased for a person at the resort spa by:
             3761          (a) the resort licensee; or
             3762          (b) an employee or agent of the resort licensee or resort spa.
             3763          (22) (a) A person may not bring onto the resort spa sublicense premises an alcoholic
             3764      beverage for on-premise consumption, except that a person may bring, subject to the
             3765      discretion of the resort licensee, bottled wine onto the resort spa sublicense premises for
             3766      on-premise consumption.
             3767          (b) Except as provided in Subsection (22)(a), a person operating under a resort spa
             3768      sublicense including an officer, manager, employee, or agent of a resort spa or resort licensee
             3769      may not allow a person to bring onto the resort spa sublicense premises an alcoholic beverage
             3770      for consumption on the resort spa license premises.
             3771          (c) If bottled wine is carried in by a person, the person shall deliver the wine to a
             3772      server or other representative of the resort spa upon entering the resort spa.
             3773          (d) A wine service may be performed and a service charge assessed by the resort spa
             3774      as authorized by commission rule for wine carried in by a person.
             3775          (23) (a) Except as provided in Subsection (23)(b), a person operating under a resort
             3776      spa sublicense or an employee of that person may not permit a person to carry from the resort
             3777      spa sublicense premises an open container that:
             3778          (i) is used primarily for drinking purposes; and
             3779          (ii) contains an alcoholic beverage.
             3780          (b) A person may remove the unconsumed contents of a bottle of wine, if before
             3781      removal, the bottle is recorked or recapped.


             3782          (24) (a) A minor may not be admitted into, use, or be on:
             3783          (i) the sublicense premises of a resort spa unless accompanied by a person 21 years of
             3784      age or older; or
             3785          (ii) a lounge or bar area, as defined by commission rule, of the resort spa sublicense
             3786      premises.
             3787          (b) (i) Except as provided in Subsection (24)(b)(ii), a resort licensee or a person
             3788      operating under a resort spa sublicense may not employ a minor to:
             3789          (A) sell, dispense, or handle an alcoholic beverage; or
             3790          (B) work in a lounge or bar area of the resort spa sublicense premises.
             3791          (ii) A resort licensee or a person operating under a resort spa sublicense may employ a
             3792      minor who is at least 16 years of age to enter the sale at a cash register or other sales recording
             3793      device, except that a minor may not work in a lounge or bar area of the resort spa sublicense
             3794      premises.
             3795          (25) An employee for a resort spa, while on duty, may not:
             3796          (a) consume an alcoholic beverage; or
             3797          (b) be intoxicated.
             3798          (26) (a) A person operating under a resort spa sublicense shall have available on the
             3799      resort spa sublicense premises for a person to review at the time that the customer requests it, a
             3800      written alcoholic beverage price list or a menu containing the price of an alcoholic beverage
             3801      sold or served by the resort spa including:
             3802          (i) a set-up charge;
             3803          (ii) a service charge; or
             3804          (iii) a chilling fee.
             3805          (b) A charge or fee made in connection with the sale, service, or consumption of liquor
             3806      may be stated in food or alcoholic beverage menus including:
             3807          (i) a set-up charge;
             3808          (ii) a service charge; or
             3809          (iii) a chilling fee.


             3810          (27) For purposes of the resort spa sublicense, the resort licensee shall ensure that the
             3811      following are displayed in a prominent place in the resort spa:
             3812          (a) the resort spa sublicense that is issued by the department;
             3813          (b) a list of the types and brand names of liquor being served through its calibrated
             3814      metered dispensing system; and
             3815          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             3816      drugs is a serious crime that is prosecuted aggressively in Utah."
             3817          (28) A person operating under a resort spa sublicense may not on the resort spa
             3818      sublicense premises:
             3819          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             3820      Chapter 10, Part 11, Gambling;
             3821          (b) have any video gaming device, as defined and proscribed in Title 76, Chapter 10,
             3822      Part 11, Gambling; or
             3823          (c) engage in or permit a contest, game, gaming scheme, or gaming device that
             3824      requires the risking of something of value for a return or for an outcome when the return or
             3825      outcome is based upon an element of chance, excluding the playing of an amusement device
             3826      that confers only an immediate and unrecorded right of replay not exchangeable for value.
             3827          (29) A resort spa sublicense may not be transferred from one location to another
             3828      location, without prior written approval of the commission.
             3829          (30) (a) A resort licensee, may not sell, transfer, assign, exchange, barter, give, or
             3830      attempt in any way to dispose of the resort spa sublicense to another person, whether for
             3831      monetary gain or not.
             3832          (b) A resort spa sublicense has no monetary value for the purpose of any type of
             3833      disposition.
             3834          (31) A person operating under a resort spa sublicense or an employee of that person
             3835      may not knowingly allow a person on the resort spa sublicense premises to, in violation of
             3836      Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
             3837      Paraphernalia Act:


             3838          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             3839      58-37-2 ; or
             3840          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             3841      Section 58-37a-3 .
             3842          Section 35. Section 32A-4a-401 is enacted to read:
             3843     
Part 4. Operational Requirements

             3844          32A-4a-401. Operational restrictions for resort license.
             3845          (1) (a) A person granted a resort license and the employees and management personnel
             3846      of the resort licensee including those operating under a sublicense shall comply with this title,
             3847      the rules of the commission, and the conditions and requirements in this section.
             3848          (b) Subject to Section 32A-4a-502 , failure to comply with this section may result in a
             3849      suspension or revocation of the resort license or a sublicense, or other disciplinary action taken
             3850      against individual employees or management personnel.
             3851          (2) (a) A resort licensee may not offer for sale, sell, serve, or otherwise furnish an
             3852      alcoholic beverage except:
             3853          (i) on a sublicense premises;
             3854          (ii) pursuant to a permit issued under this title; or
             3855          (iii) under a package agency agreement with the department, subject to Chapter 3,
             3856      Package Agencies.
             3857          (b) A resort licensee who offers for sale, sells, serves, or otherwise furnishes an
             3858      alcoholic beverage as provided in Subsection (2)(a), shall offer for sale, sell, or furnish the
             3859      alcoholic beverage:
             3860          (i) if on a sublicense premises, in accordance with the operational requirements under
             3861      the provisions applicable to the sublicense, except as provided in Section 32A-4a-402 ;
             3862          (ii) if under a permit issued under this title, in accordance with the operational
             3863      requirements under the provisions applicable to the permit; and
             3864          (iii) if as a package agency, in accordance with the contract with the department and
             3865      Chapter 3, Package Agencies.


             3866          (3) A person involved in the sale or service of an alcoholic beverage under a resort
             3867      license shall:
             3868          (a) be under the supervision and direction of the resort licensee; and
             3869          (b) complete the seminar provided for in Section 62A-15-401 .
             3870          (4) (a) A resort licensee may not purchase liquor except from a state store or package
             3871      agency.
             3872          (b) Liquor purchased by a resort licensee in accordance with this Subsection (4) may
             3873      be transported by the resort licensee from the place of purchase to the boundary of the resort
             3874      building.
             3875          (c) A resort licensee shall pay for liquor in accordance with rules made by the
             3876      commission.
             3877          (5) An alcoholic beverage may not be stored, served, or sold in a place other than as
             3878      designated in the resort licensee's application, except that an additional location in the
             3879      boundary of the resort building may be approved in accordance with guidelines approved by
             3880      the commission.
             3881          (6) An alcoholic beverage storage area on the boundary of the resort building shall
             3882      remain locked at all times other than those hours and days when alcoholic beverage sales are
             3883      authorized by law.
             3884          (7) A resort licensee may not engage in a public promotion involving or offering a free
             3885      alcoholic beverage to the general public.
             3886          (8) A resort licensee may not on the boundary of the resort building:
             3887          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             3888      Chapter 10, Part 11, Gambling;
             3889          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             3890      Part 11, Gambling; or
             3891          (c) engage in or permit a contest, game, gaming scheme, or gaming device that
             3892      requires the risking of something of value for a return or for an outcome when the return or
             3893      outcome is based upon an element of chance, excluding the playing of an amusement device


             3894      that confers only an immediate and unrecorded right of replay not exchangeable for value.
             3895          (9) (a) A resort licensee shall maintain accounting and such other records and
             3896      documents as the commission or department may require.
             3897          (b) A resort licensee or person acting for the resort licensee, who knowingly forges,
             3898      falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or other
             3899      document of the resort licensee required to be made, maintained, or preserved by this title or
             3900      the rules of the commission for the purpose of deceiving the commission, the department, or
             3901      an official or employee of the commission or department, is subject to:
             3902          (i) the suspension or revocation of the resort license; and
             3903          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             3904          (10) (a) Subject to Subsection (10)(b), a resort license shall operate in a manner so that
             3905      at least 70% of the annual aggregate of the gross receipts related to the sale of food or
             3906      beverages for the resort license and each of its sublicenses is from the sale of food, not
             3907      including:
             3908          (i) mix for an alcoholic beverage; and
             3909          (ii) a charge in connection with the service of an alcoholic beverage.
             3910          (b) In calculating the annual aggregate of the gross receipts described in Subsection
             3911      (10)(a), a resort licensee is not required to include in the calculation monies from the sale of a
             3912      bottle of wine by the retail licensee or under a sublicense in excess of $250.
             3913          (11) (a) Room service of an alcoholic beverage to a lodging accommodation of a resort
             3914      licensee shall be provided in person by a resort licensee employee only to an adult occupant in
             3915      the lodging accommodation.
             3916          (b) An alcoholic beverage may not be left outside a lodging accommodation for
             3917      retrieval by an occupant.
             3918          (c) A resort licensee may only provide an alcoholic beverage for room service in a
             3919      sealed container.
             3920          (12) A resort licensee or an employee of the resort licensee may not knowingly allow a
             3921      person on the boundary of the resort building to, in violation of Title 58, Chapter 37, Utah


             3922      Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             3923          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             3924      58-37-2 ; or
             3925          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             3926      Section 58-37a-3 .
             3927          (13) A person may not transfer a resort license from one business location to another
             3928      location without prior written approval of the commission.
             3929          (14) (a) A resort licensee may not sell, transfer, assign, exchange, barter, give, or
             3930      attempt in any way to dispose of the license to another person, whether for monetary gain or
             3931      not.
             3932          (b) A resort license has no monetary value for the purpose of any type of disposition.
             3933          (15) (a) A resort licensee may not close or cease operation of a resort licensee for a
             3934      period longer than 240 hours, unless:
             3935          (i) the resort licensee notifies the department in writing at least seven days before the
             3936      day on which the resort licensee closes or ceases operation; and
             3937          (ii) the closure or cessation of operation is first approved by the department.
             3938          (b) Notwithstanding Subsection (15)(a), in the case of emergency closure, the resort
             3939      licensee shall immediately notify the department by telephone.
             3940          (c) (i) The department may authorize a closure or cessation of operation for a period
             3941      not to exceed 60 days.
             3942          (ii) The department may extend the initial period an additional 30 days upon:
             3943          (A) written request of the resort licensee; and
             3944          (B) a showing of good cause.
             3945          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             3946      commission approval.
             3947          (d) The notice required by Subsection (15)(a) shall include:
             3948          (i) the dates of closure or cessation of operation;
             3949          (ii) the reason for the closure or cessation of operation; and


             3950          (iii) the date on which the resort licensee will reopen or resume operation.
             3951          (e) Failure of the resort licensee to provide notice and to obtain department
             3952      authorization before closure or cessation of operation results in an automatic forfeiture of:
             3953          (i) the resort license; and
             3954          (ii) the unused portion of the resort license fee for the remainder of the license year
             3955      effective immediately.
             3956          (f) Failure of the resort licensee to reopen or resume operation by the approved date
             3957      results in an automatic forfeiture of:
             3958          (i) the resort licence; and
             3959          (ii) the unused portion of the resort license fee for the remainder of the license year.
             3960          Section 36. Section 32A-4a-402 is enacted to read:
             3961          32A-4a-402. Operational restrictions for a sublicense.
             3962          (1) A person operating under a sublicense is subject to the operational restrictions
             3963      under the provisions applicable to the sublicense except that, notwithstanding a requirement in
             3964      the provisions applicable to the sublicense, a person operating under the sublicense is not
             3965      subject to a requirement that a certain percentage of the gross receipts for the sublicense be
             3966      from the sale of food, except to the extent that the gross receipts for the sublicense are
             3967      included in calculating the percentages under Subsection 32A-4a-401 (10).
             3968          (2) Subject to Section 32A-4a-502 , for purposes of interpreting an operational
             3969      restriction imposed by the provisions applicable to a sublicense:
             3970          (a) a requirement imposed on a person operating under a sublicense applies to the
             3971      resort licensee; and
             3972          (b) a requirement imposed on an employee or agent of a person operating under a
             3973      sublicense applies to an employee or agent of the resort licensee.
             3974          Section 37. Section 32A-4a-501 is enacted to read:
             3975     
Part 5. Enforcement

             3976          32A-4a-501. Enforcement of qualifications for a resort license or sublicense.
             3977          (1) The commission or department may not take an action described in Subsection (2)


             3978      with regard to a resort license unless the person who is found not to meet the qualifications of
             3979      Section 32A-4a-203 is one of the following who is engaged in the management of the resort:
             3980          (a) a partner;
             3981          (b) a managing agent;
             3982          (c) a manager;
             3983          (d) an officer;
             3984          (e) a director;
             3985          (f) a stockholder who holds at least 20% of the total issued and outstanding stock of
             3986      the applicant corporation;
             3987          (g) a member who owns at least 20% of the applicant limited liability company; or
             3988          (h) a person employed to act in a supervisory or managerial capacity for the resort
             3989      licensee.
             3990          (2) Subsection (1) applies to:
             3991          (a) the commission immediately suspending or revoking a resort license, if after the
             3992      day on which the resort license is granted, a person described in Subsection 32A-4a-203 (1)(a),
             3993      (b), or (c):
             3994          (i) is found to have been convicted of an offense described in Subsection
             3995      32A-4a-203 (1)(a) before the resort license is granted; or
             3996          (ii) on or after the day on which the resort license is granted:
             3997          (A) is convicted of an offense described in Subsection 32A-4a-203 (1)(a)(i), (ii), or
             3998      (iii); or
             3999          (B) (I) is convicted of driving under the influence of alcohol, a drug, or the combined
             4000      influence of alcohol and a drug; and
             4001          (II) was convicted of driving under the influence of alcohol, a drug, or the combined
             4002      influence of alcohol and a drug within five years before the day on which the person is
             4003      convicted of the offense described in Subsection 32A-4a-203 (2)(b)(ii)(A);
             4004          (b) the director taking an emergency action by immediately suspending the operation
             4005      of a resort license in accordance with Title 63G, Chapter 4, Administrative Procedures Act, for


             4006      the period during which the criminal matter is being adjudicated if a person described in
             4007      Subsection 32A-4a-203 (1)(a), (b), or (c):
             4008          (i) is arrested on a charge for an offense described in Subsection 32A-4a-203 (1)(a)(i),
             4009      (ii), or (iii); or
             4010          (ii) (A) is arrested on a charge for the offense of driving under the influence of alcohol,
             4011      a drug, or the combined influence of alcohol and a drug; and
             4012          (B) was convicted of driving under the influence of alcohol, a drug, or the combined
             4013      influence of alcohol and a drug within five years before the day on which the person is arrested
             4014      on a charge described in Subsection (2)(b)(i); and
             4015          (c) the commission suspending or revoking a resort license because a person to whom
             4016      a resort license is granted under this chapter no longer possesses the qualifications required by
             4017      this title for obtaining the resort license.
             4018          (3) This section does not prevent the commission from suspending or revoking a
             4019      sublicense that is part of a resort license if a person employed to act in a supervisory or
             4020      managerial capacity for a sublicense no longer meets the qualification requirements in the
             4021      provisions applicable to the sublicense.
             4022          Section 38. Section 32A-4a-502 is enacted to read:
             4023          32A-4a-502. Enforcement of operational restrictions for a resort license or
             4024      sublicense.
             4025          (1) (a) Except as provided in Subsection (2) and in addition to Subsection (3), failure
             4026      by a person described in Subsection (1)(b) to comply with this chapter or an operational
             4027      restriction under a provision applicable to a sublicense may result in:
             4028          (i) a suspension or revocation of the resort license;
             4029          (ii) a fine or other administrative sanction permitted under this title; or
             4030          (iii) other disciplinary action taken against an individual employee or management
             4031      personnel of a resort licensee.
             4032          (b) This Subsection (1) applies to:
             4033          (i) a resort licensee;


             4034          (ii) a person operating under a sublicense;
             4035          (iii) an employee of a resort licensee or other person operating under a sublicense;
             4036          (iv) an agent of a resort licensee or other person operating under a sublicense; or
             4037          (v) personnel management of a resort licensee or other person operating under a
             4038      sublicense.
             4039          (2) (a) Notwithstanding the other provisions of this chapter and Section 32A-1-119 , if
             4040      the failure to comply with this chapter described in Subsection (1) relates to an offer to sell,
             4041      sell, service, or furnishing of an alcoholic beverage on a sublicense premises, a resort licensee
             4042      or an individual member of the resort licensee's management personnel is subject to a sanction
             4043      described in Subsection (1), only if the commission finds that:
             4044          (i) during the three years before the day on which the commission makes the finding,
             4045      there is three or more disciplinary proceedings against any person operating under a sublicense
             4046      of the resort licensee for failure to comply with an operational restriction applicable to the
             4047      sublicense; and
             4048          (ii) the resort licensee has not taken reasonable steps to prevent persons operating
             4049      under a sublicense of the resort licensee from failing to comply with operational restrictions
             4050      applicable to the sublicense.
             4051          (b) This Subsection (2) applies if the three or more disciplinary proceedings described
             4052      in Subsection (2)(a) are against:
             4053          (i) the same person operating under a sublicense of the resort licensee; or
             4054          (ii) two or more different persons operating under a sublicense of the resort licensee.
             4055          (3) An operational restriction applicable to a person operating under a sublicense is
             4056      enforced as provided by the provisions applicable to the sublicense.
             4057          Section 39. Section 32A-4a-503 is enacted to read:
             4058          32A-4a-503. Enforcement of Nuisance Licensee Act.
             4059          Chapter 15a, Nuisance Licensee Act, applies to a resort license only if three or more of
             4060      the sublicenses of the resort license have not been renewed under Chapter 15a, Nuisance
             4061      Licensee Act, within three years from the day on which a resort licensee applies for the


             4062      renewal of its resort license.
             4063          Section 40. Section 32A-5-101 is amended to read:
             4064     
CHAPTER 5. CLUB LICENSES

             4065           32A-5-101. Commission's power to license clubs -- Limitations.
             4066          (1) As used in this chapter:
             4067          (a) "Club license" means a license granted under this chapter.
             4068          (b) "Club licensee" means a person granted a club license under this chapter.
             4069          (c) "Dining club licensee" means a person who qualifies as a club licensee under
             4070      Subsection (3)(a)(ii)(C).
             4071          (d) "Equity club licensee" means a person who qualifies as a club licensee under
             4072      Subsection (3)(a)(ii)(A).
             4073          (e) "Fraternal club licensee" means a person who qualifies as a club licensee under
             4074      Subsection (3)(a)(ii)(B).
             4075          (f) "Social club licensee" means a person who qualifies as a club licensee under
             4076      Subsection (3)(a)(ii)(D).
             4077          [(1)] (2) Before a [private club] person may sell or allow the consumption of an
             4078      alcoholic [beverages] beverage on its premises as a club licensee, the [private club] person
             4079      shall first obtain a license from the commission as provided in this chapter.
             4080          [(2)] (3) (a) The commission may grant [private club licenses to social clubs,
             4081      recreational, athletic, or kindred associations that desire to maintain premises upon which
             4082      alcoholic beverages may be stored, sold, served, and consumed.] a club license to a person
             4083      that:
             4084          [(3) At the time the commission grants a private club license the commission shall
             4085      designate whether the private club license qualifies as a class A, B, C, or D license as defined
             4086      in Subsections (3)(a) through (d).]
             4087          [(a) A "class A licensee" is a private club licensee that:]
             4088          (i) meets the requirements of this chapter; and
             4089          (ii) (A) for an equity club licensee, meets the following requirements:


             4090          (I) whether incorporated or unincorporated:
             4091          (Aa) is organized and operated solely for a social, recreational, patriotic, or fraternal
             4092      purpose;
             4093          (Bb) has members;
             4094          (Cc) limits access to its premises to a member or a guest of the member; and
             4095          (Dd) desires to maintain premises upon which an alcoholic beverage may be stored,
             4096      sold to, served to, and consumed by a member or a guest of a member;
             4097          [(ii)] (II) owns, maintains, or operates a substantial recreational facility in conjunction
             4098      with a club house such as:
             4099          [(A)] (Aa) a golf course; or
             4100          [(B)] (Bb) a tennis facility;
             4101          [(iii)] (III) has at least 50% of the total membership having:
             4102          [(A)] (Aa) full voting rights; and
             4103          [(B)] (Bb) an equal share of the equity of the club; and
             4104          [(iv)] (IV) if there is more than one class of membership, has at least one class of
             4105      membership that entitles each member in that class to:
             4106          [(A)] (Aa) full voting rights; and
             4107          [(B)] (Bb) an equal share of the equity of the club[.];
             4108          [(b) A "class B licensee" is a private club licensee that:]
             4109          [(i) meets the requirements of this chapter;]
             4110          (B) for a fraternal club licensee, meets the following requirements:
             4111          (I) whether incorporated or unincorporated:
             4112          (Aa) is organized and operated solely for a social, recreational, patriotic, or fraternal
             4113      purpose;
             4114          (Bb) has members;
             4115          (Cc) limits access to its premises to a member or a guest of the member; and
             4116          (Dd) desires to maintain premises upon which an alcoholic beverage may be stored,
             4117      sold to, served to, and consumed by a member or a guest of a member;


             4118          [(ii)] (II) has no capital stock;
             4119          [(iii)] (III) exists solely for:
             4120          [(A)] (Aa) the benefit of its members and their beneficiaries; and
             4121          [(B)] (Bb) a lawful social, intellectual, educational, charitable, benevolent, moral,
             4122      fraternal, patriotic, or religious purpose for the benefit of its members or the public, carried on
             4123      through voluntary activity of its members in their local lodges;
             4124          [(iv)] (IV) has a representative form of government; and
             4125          [(v)] (V) has a lodge system in which:
             4126          [(A)] (Aa) there is a supreme governing body;
             4127          [(B)] (Bb) subordinate to the supreme governing body are local lodges, however
             4128      designated, into which individuals are admitted as members in accordance with the laws of the
             4129      fraternal;
             4130          [(C)] (Cc) the local lodges are required by the laws of the fraternal to hold regular
             4131      meetings at least monthly; [and]
             4132          [(D)] (Dd) the local lodges regularly engage in one or more programs involving
             4133      member participation to implement the purposes of Subsection (3)[(b)(iii).] (a)(ii)(B)(III); and
             4134          (Ee) owns or leases a building or space in a building used for lodge activities;
             4135          (C) for a dining club licensee, meets the following requirements:
             4136          [(c) A "class C licensee" is a private club licensee that:]
             4137          [(i) meets the requirements of this chapter;]
             4138          [(ii) is a dining club, as] (I) is determined by the commission [in accordance with
             4139      Subsection (4); and] to be a dining club licensee, as part of which the commission may
             4140      consider:
             4141          (Aa) the square footage and seating capacity of an applicant;
             4142          (Bb) what portion of the square footage and seating capacity will be used for a dining
             4143      area in comparison to the portion that will be used as a bar area;
             4144          (Cc) whether full meals including appetizers, main courses, and desserts are served;
             4145          (Dd) whether the applicant will maintain adequate on-premise culinary facilities to


             4146      prepare full meals, except an applicant that is located on the premise of a hotel or resort
             4147      facility may use the culinary facilities of the hotel or resort facility;
             4148          (Ee) whether the entertainment provided at the club is suitable for minors; and
             4149          (Ff) the club management's ability to manage and operate a dining club license
             4150      including management experience, past dining club licensee or restaurant management
             4151      experience, and the type of management scheme employed by the dining club license; and
             4152          [(iii)] (II) maintains at least 50% of its total [private] club business from the sale of
             4153      food, not including:
             4154          [(A)] (Aa) mix for alcoholic beverages; or
             4155          [(B)] (Bb) service charges[.]; or
             4156          [(d) A "class D licensee" is a private club licensee that:]
             4157          [(i) meets the requirements of this chapter; and]
             4158          (D) for a social club licensee:
             4159          [(ii) (A)] (I) does not meet the requirements of a [class A, B, or C] license under
             4160      Subsections (3)(a)(ii)(A) through (C); or
             4161          [(B)] (II) seeks to qualify as a [class D] social club licensee.
             4162          [(4) In determining whether an applicant is a dining club under Subsection (3)(c), the
             4163      commission:]
             4164          [(a) shall determine whether the applicant maintains at least 50% of its total private
             4165      club business from the sale of food, not including:]
             4166          [(i) mix for alcoholic beverages;]
             4167          [(ii) service charges; or]
             4168          [(iii) membership and visitor card fees; and]
             4169          [(b) may consider:]
             4170          [(i) the square footage and seating capacity of the applicant;]
             4171          [(ii) what portion of the square footage and seating capacity will be used for a dining
             4172      area in comparison to the portion that will be used as a bar area;]
             4173          [(iii) whether full meals including appetizers, main courses, and desserts are served;]


             4174          [(iv) whether the applicant will maintain adequate on-premise culinary facilities to
             4175      prepare full meals, except an applicant that is located on the premise of a hotel or resort
             4176      facility may use the culinary facilities of the hotel or resort facility;]
             4177          [(v) whether the entertainment provided at the club is suitable for minors; and]
             4178          [(vi) the club management's ability to manage and operate a dining club including:]
             4179          [(A) management experience;]
             4180          [(B) past dining club or restaurant management experience; and]
             4181          [(C) the type of management scheme employed by the private club.]
             4182          (b) At the time that the commission grants a club license, the commission shall
             4183      designate the type of club license for which the person qualifies.
             4184          [(5)] (4) (a) A [private] club licensee or [any] an officer, director, managing agent, or
             4185      employee of a [private] club licensee may not store, sell, serve, or permit consumption of an
             4186      alcoholic [beverages] beverage upon the premises of the club licensee, under a permit issued
             4187      by local authority or otherwise, unless a [private] club license is first [issued] granted by the
             4188      commission.
             4189          (b) Violation of this Subsection [(5)] (4) is a class B misdemeanor.
             4190          [(6)] (5) (a) Subject to the other provisions of this Subsection [(6)] (5) and Subsection
             4191      32A-4a-201 (2), the commission may [issue private] grant club licenses at places and in
             4192      numbers as the commission considers necessary.
             4193          (b) The total number of [private] club licenses may not at any time aggregate more
             4194      than that number determined by dividing the population of the state by 7,850.
             4195          (c) For purposes of this Subsection [(6)] (5), population shall be determined by:
             4196          (i) the most recent United States decennial or special census; or
             4197          (ii) another population determination made by the United States or state governments.
             4198          (d) (i) The commission may issue seasonal [private] club licenses to be established in
             4199      areas the commission considers necessary[.] to:
             4200          (A) a dining club licensee; or
             4201          (B) a social club licensee.


             4202          (ii) A seasonal [private] club license shall be for a period of six consecutive months.
             4203          (iii) A [private] club license issued for operation during a summer time period is
             4204      known as a "Seasonal A" [private] club license. The period of operation for a "Seasonal A"
             4205      club license shall:
             4206          (A) begin on May 1; and
             4207          (B) end on October 31.
             4208          (iv) A [private] club license issued for operation during a winter time period is known
             4209      as a "Seasonal B" [private] club license. The period of operation for a "Seasonal B" club
             4210      license shall:
             4211          (A) begin on November 1; and
             4212          (B) end on April 30.
             4213          (v) In determining the number of [private] club licenses that the commission may
             4214      issue under this section:
             4215          (A) a seasonal [private] club license is counted as [1/2] one-half of one [private] club
             4216      license; and
             4217          (B) each "Seasonal A" club license shall be paired with a "Seasonal B" club license.
             4218          (e) (i) If the location, design, and construction of a hotel may require more than one
             4219      [private] club license location within the hotel to serve the public convenience, the
             4220      commission may authorize as many as three [private] club license locations within the hotel
             4221      under one club license if:
             4222          (A) the hotel has a minimum of 150 guest rooms; and
             4223          (B) all locations under the club license are:
             4224          (I) within the same hotel facility; and
             4225          (II) on premises [which] that are:
             4226          (Aa) managed or operated by the club licensee; and
             4227          (Bb) owned or leased by the club licensee.
             4228          (ii) A facility other than a hotel may not have more than one [private] club license
             4229      location under a single [private] club license.


             4230          [(7)] (6) (a) Except as provided in Subsection [(7)] (6)(b), (c), or (d), the premises of a
             4231      [private] club license may not be established:
             4232          (i) within 600 feet of a community location, as measured by the method in Subsection
             4233      [(7)] (6)(e); or
             4234          (ii) within 200 feet of a community location, measured in a straight line from the
             4235      nearest entrance of the proposed outlet to the nearest property boundary of the community
             4236      location.
             4237          (b) With respect to the establishment of a [private] club license, the commission may
             4238      authorize a variance to reduce the proximity requirement of Subsection [(7)] (6)(a)(i) if:
             4239          (i) the local authority grants its written consent to the variance;
             4240          (ii) the commission finds that alternative locations for establishing a [private] club
             4241      license in the community are limited;
             4242          (iii) a public hearing is held in the city, town, or county, and where practical in the
             4243      neighborhood concerned;
             4244          (iv) after giving full consideration to all of the attending circumstances and the
             4245      policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
             4246      establishing the club license would not be detrimental to the public health, peace, safety, and
             4247      welfare of the community; and
             4248          (v) (A) the community location governing authority gives its written consent to the
             4249      variance; or
             4250          (B) when written consent is not given by the community location governing authority,
             4251      the commission finds that the applicant has established that:
             4252          (I) there is substantial unmet public demand to consume alcohol in a public setting
             4253      within the geographic boundary of the local authority in which the [private] club licensee is to
             4254      be located;
             4255          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             4256      described in Subsection [(7)] (6)(b)(v)(B)(I) other than through the establishment of a
             4257      [private] club licensee; and


             4258          (III) there is no reasonably viable alternative location within the geographic boundary
             4259      of the local authority in which the [private] club licensee is to be located for establishing a
             4260      [private] club license to satisfy the unmet demand described in Subsection [(7)]
             4261      (6)(b)(v)(B)(I).
             4262          (c) With respect to the establishment of a [private] club license, the commission may
             4263      authorize a variance that reduces the proximity requirement of Subsection [(7)] (6)(a)(ii) if:
             4264          (i) the community location at issue is:
             4265          (A) a public library; or
             4266          (B) a public park;
             4267          (ii) the local authority grants its written consent to the variance;
             4268          (iii) the commission finds that alternative locations for establishing a [private] club
             4269      license in the community are limited;
             4270          (iv) a public hearing is held in the city, town, or county, and where practical in the
             4271      neighborhood concerned;
             4272          (v) after giving full consideration to all of the attending circumstances and the policies
             4273      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             4274      [private] club license would not be detrimental to the public health, peace, safety, and welfare
             4275      of the community; and
             4276          (vi) (A) the community location governing authority gives its written consent to the
             4277      variance; or
             4278          (B) when written consent is not given by the community location governing authority,
             4279      the commission finds that the applicant has established that:
             4280          (I) there is substantial unmet public demand to consume alcohol in a public setting
             4281      within the geographic boundary of the local authority in which the [private] club licensee is to
             4282      be located;
             4283          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             4284      described in Subsection [(7)] (6)(c)(vi)(B)(I) other than through the establishment of a
             4285      [private] club license; and


             4286          (III) there is no reasonably viable alternative location within the geographic boundary
             4287      of the local authority in which the [private] club licensee is to be located for establishing a
             4288      [private] club license to satisfy the unmet demand described in Subsection [(7)]
             4289      (6)(c)(vi)(B)(I).
             4290          (d) With respect to the premises of a [private] club license issued by the commission
             4291      that undergoes a change of ownership, the commission may waive or vary the proximity
             4292      requirements of Subsection [(7)] (6)(a) in considering whether to grant a [private] club license
             4293      to the new owner of the premises if:
             4294          (i) (A) the premises previously received a variance reducing the proximity requirement
             4295      of Subsection [(7)] (6)(a)(i); or
             4296          (B) the premises received a variance reducing the proximity requirement of Subsection
             4297      [(7)] (6)(a)(ii) on or before May 4, 2008; or
             4298          (ii) a variance from proximity requirements was otherwise allowed under this title.
             4299          (e) The 600 foot limitation described in Subsection [(7)] (6)(a)(i) is measured from the
             4300      nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to
             4301      the property boundary of the community location.
             4302          [(8)] (7) (a) Nothing in this section prevents the commission from considering the
             4303      proximity of any educational, religious, and recreational facility, or any other relevant factor in
             4304      reaching a decision on whether to issue a [private] club license.
             4305          (b) For purposes of this Subsection [(8)] (7), "educational facility" includes:
             4306          (i) a nursery school;
             4307          (ii) infant day care center; and
             4308          (iii) a trade and technical school.
             4309          [(9)] (8) If requested by a [private] club licensee, the commission may approve a
             4310      change in the [class] type of [private] club license in accordance with rules made by the
             4311      commission.
             4312          (9) To the extent not prohibited by law other than this chapter, this chapter does not
             4313      prevent a dining club licensee or social club licensee from restricting access to the club license


             4314      premises on the basis of an individual:
             4315          (a) paying a fee; or
             4316          (b) agreeing to being on a list of individuals who have access to the club license
             4317      premises.
             4318          Section 41. Section 32A-5-102 is amended to read:
             4319           32A-5-102. Application and renewal requirements.
             4320          (1) A [club] person seeking a [class A, B, C, or D private] club license under this
             4321      chapter shall file a written application with the department in a form prescribed by the
             4322      department. The application shall be accompanied by:
             4323          (a) a nonrefundable $250 application fee;
             4324          (b) an initial license fee of $2,500, which is refundable if a club license is not granted;
             4325          (c) written consent of the local authority;
             4326          (d) a copy of the applicant's current business license;
             4327          (e) evidence of proximity to any community location, with proximity requirements
             4328      being governed by Section 32A-5-101 ;
             4329          (f) evidence that the applicant operates a club where a variety of food is prepared and
             4330      served in connection with dining accommodations;
             4331          (g) a bond as specified by Section 32A-5-106 ;
             4332          (h) a floor plan of the club license premises, including:
             4333          (i) consumption areas; and
             4334          (ii) the area where the applicant proposes to keep and store liquor;
             4335          (i) evidence that the club is carrying public liability insurance in an amount and form
             4336      satisfactory to the department;
             4337          (j) evidence that the club is carrying dramshop insurance coverage of at least
             4338      [$500,000] $1,000,000 per occurrence and [$1,000,000] $2,000,000 in the aggregate;
             4339          (k) if the applicant is applying for an equity club license or fraternal club license, a
             4340      copy of the club's bylaws or house rules, and any amendments to those documents[, which
             4341      shall be kept on file with the department at all times];


             4342          (l) a signed consent form stating that the club licensee and its management will permit
             4343      any authorized representative of the commission, department, or any law enforcement officer
             4344      unrestricted right to enter the club license premises;
             4345          (m) (i) a statement as to whether the [private club] applicant is seeking to qualify as [a
             4346      class A, B, C, or D private club licensee; and]:
             4347          (A) an equity club licensee;
             4348          (B) a fraternal club licensee;
             4349          (C) a dining club licensee; or
             4350          (D) a social club licensee; and
             4351          (ii) evidence that the [private club] applicant meets the requirements for the
             4352      [classification] type of club license described in Subsection (1)(m)(i) for which the [club]
             4353      applicant is applying;
             4354          (n) in the case of a partnership, corporation, or limited liability company applicant,
             4355      proper verification evidencing that the person or persons signing the [private] club license
             4356      application are authorized to so act on behalf of the partnership, corporation, or limited
             4357      liability company; and
             4358          (o) any other information the commission or department may require.
             4359          (2) (a) The commission may refuse to issue a club license to an applicant for an equity
             4360      club licensee or fraternal club licensee if the commission determines that any provisions of the
             4361      [club's] applicant's bylaws or house rules, or amendments to those documents are not:
             4362          (i) reasonable; and
             4363          (ii) consistent with:
             4364          (A) the declared nature and purpose of the applicant; and
             4365          (B) the purposes of this chapter.
             4366          (b) [Club] An equity club licensee's or fraternal club licensee's bylaws or house rules
             4367      shall include provisions respecting the following:
             4368          (i) standards of eligibility for members;
             4369          (ii) limitation of members, consistent with the nature and purpose of the [private]


             4370      club;
             4371          (iii) the period for which dues are paid, and the date upon which the period expires;
             4372          (iv) provisions for [dropping members] removing a member from the club
             4373      membership for the nonpayment of dues or other cause; and
             4374          (v) provisions for guests [or visitors, if any, and for the issuance and use of visitor
             4375      cards].
             4376          (c) An equity club licensee or fraternal club licensee shall keep its bylaws or house
             4377      rules, and any amendments to those documents, on file with the department at all times.
             4378          (3) (a) [All private club licenses expire] A club license expires on June 30 of each
             4379      year.
             4380          (b) A person desiring to renew that person's [private] club license shall submit by no
             4381      later than May 31:
             4382          (i) a completed renewal application to the department; and
             4383          (ii) a renewal fee [in the following amount:] of $1,600.
             4384          [Gross Cost of Liquor in Previous License Year for the Licensee    Renewal Fee]
             4385          [under $10,000                                $1,000]
             4386          [equals or exceeds $10,000 but less than $25,000                $1,250]
             4387          [equals or exceeds $25,000 but less than $75,000                $1,750]
             4388          [equals or exceeds $75,000                            $2,250]
             4389          (c) Failure to meet the renewal requirements [shall result] results in an automatic
             4390      forfeiture of the club license effective on the date the existing club license expires.
             4391          (d) A renewal application shall be in a form as prescribed by the department.
             4392          (4) To ensure compliance with Subsection 32A-5-107 [(40)] (26), the commission may
             4393      suspend or revoke [any private] a club license if the [private] club licensee does not
             4394      immediately notify the department of any change in:
             4395          (a) ownership of the club licensee;
             4396          (b) for a corporate owner, the:
             4397          (i) corporate officers or directors; or


             4398          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             4399      corporation; or
             4400          (c) for a limited liability company:
             4401          (i) managers; or
             4402          (ii) members owning at least 20% of the limited liability company.
             4403          Section 42. Section 32A-5-103 (Effective 07/01/09) is amended to read:
             4404           32A-5-103 (Effective 07/01/09). Qualifications.
             4405          (1) (a) The commission may not grant a [private] club license to a person who has
             4406      been convicted of:
             4407          (i) a felony under a federal or state law;
             4408          (ii) a violation of a federal or state law or local ordinance concerning the sale,
             4409      manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             4410          (iii) a crime involving moral turpitude; or
             4411          (iv) on two or more occasions within the five years before the day on which the license
             4412      is granted, driving under the influence of alcohol, a drug, or the combined influence of alcohol
             4413      and a drug.
             4414          (b) In the case of a partnership, corporation, or limited liability company, the
             4415      proscription under Subsection (1)(a) applies if any of the following has been convicted of an
             4416      offense described in Subsection (1)(a):
             4417          (i) a partner;
             4418          (ii) a managing agent;
             4419          (iii) a manager;
             4420          (iv) an officer;
             4421          (v) a director;
             4422          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             4423      the applicant corporation; or
             4424          (vii) a member who owns at least 20% of the applicant limited liability company.
             4425          (c) The proscription under Subsection (1)(a) applies if a person employed to act in a


             4426      supervisory or managerial capacity for a [private] club has been convicted of an offense
             4427      described in Subsection (1)(a).
             4428          (2) The commission may immediately suspend or revoke a [private] club license if
             4429      after the day on which the [private] club license is granted, a person described in Subsection
             4430      (1)(a), (b), or (c):
             4431          (a) is found to have been convicted of an offense described in Subsection (1)(a) prior
             4432      to the club license being granted; or
             4433          (b) on or after the day on which the club license is granted:
             4434          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             4435          (ii) (A) is convicted of driving under the influence of alcohol, a drug, or the combined
             4436      influence of alcohol and a drug; and
             4437          (B) was convicted of driving under the influence of alcohol, a drug, or the combined
             4438      influence of alcohol and a drug within five years before the day on which the person is
             4439      convicted of the offense described in Subsection (2)(b)(ii)(A).
             4440          (3) The director may take emergency action by immediately suspending the operation
             4441      of a [private] club license according to the procedures and requirements of Title 63G, Chapter
             4442      4, Administrative Procedures Act, for the period during which the criminal matter is being
             4443      adjudicated if a person described in Subsection (1)(a), (b), or (c):
             4444          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             4445      or
             4446          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             4447      a drug, or the combined influence of alcohol and a drug; and
             4448          (ii) was convicted of driving under the influence of alcohol, a drug, or the combined
             4449      influence of alcohol and a drug within five years before the day on which the person is arrested
             4450      on a charge described in Subsection (3)(b)(i).
             4451          (4) (a) (i) The commission may not grant a [private] club license to a person who has
             4452      had any type of license, agency, or permit issued under this title revoked within the last three
             4453      years.


             4454          (ii) The commission may not grant a [private] club license to an applicant that is a
             4455      partnership, corporation, or limited liability company if a partner, managing agent, manager,
             4456      officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
             4457      of an applicant corporation, or member who owns at least 20% of an applicant limited liability
             4458      company is or was:
             4459          (A) a partner or managing agent of a partnership that had any type of license, agency,
             4460      or permit issued under this title revoked within the last three years;
             4461          (B) a managing agent, officer, director, or a stockholder who holds or held at least
             4462      20% of the total issued and outstanding stock of a corporation that had any type of license,
             4463      agency, or permit issued under this title revoked within the last three years; or
             4464          (C) a manager or member who owns or owned at least 20% of a limited liability
             4465      company that had any type of license, agency, or permit issued under this title revoked within
             4466      the last three years.
             4467          (b) An applicant that is a partnership, corporation, or limited liability company may
             4468      not be granted a [private] club license if any of the following had any type of license, agency,
             4469      or permit issued under this title revoked while acting in that person's individual capacity
             4470      within the last three years:
             4471          (i) a partner or managing agent of the applicant partnership;
             4472          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             4473      total issued and outstanding stock of the applicant corporation; or
             4474          (iii) a manager or member who owned at least 20% of the applicant limited liability
             4475      company.
             4476          (c) A person acting in an individual capacity may not be granted a [private] club
             4477      license if that person was:
             4478          (i) a partner or managing agent of a partnership that had any type of license, agency,
             4479      or permit issued under this title revoked within the last three years;
             4480          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             4481      total issued and outstanding stock of a corporation that had any type of license, agency, or


             4482      permit issued under this title revoked within the last three years; or
             4483          (iii) a manager or member of a limited liability company who owned at least 20% of
             4484      the limited liability company that had any type of license, agency, or permit issued under this
             4485      title revoked within the last three years.
             4486          (5) (a) A minor may not be granted a [private] club license.
             4487          (b) The commission may not grant a [private] club license to an applicant that is a
             4488      partnership, corporation, or limited liability company if any of the following is a minor:
             4489          (i) a partner or managing agent of the applicant partnership;
             4490          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             4491      total issued and outstanding stock of the applicant corporation; or
             4492          (iii) a manager or member who owns at least 20% of the applicant limited liability
             4493      company.
             4494          (6) If a person [or entity] to whom a club license [has been issued] is granted under
             4495      this chapter no longer possesses the qualifications required by this title for obtaining that
             4496      license, the commission may suspend or revoke that license.
             4497          (7) The commission may not grant a [private] club license to an applicant who is not
             4498      lawfully present in the United States.
             4499          Section 43. Section 32A-5-104 is amended to read:
             4500           32A-5-104. Commission and department duties before granting licenses.
             4501          (1) (a) Before a [private] club license may be granted by the commission, the
             4502      department shall conduct an investigation and may hold public hearings for the purpose of
             4503      gathering information and making recommendations to the commission as to whether or not a
             4504      club license should be granted.
             4505          (b) The department shall forward the information and recommendations described in
             4506      Subsection (1)(a) to the commission to aid in the commission's determination.
             4507          (2) Before [issuing a private] granting a club license, the commission shall:
             4508          (a) determine that:
             4509          (i) the applicant has complied with all basic qualifications and requirements for


             4510      making application for a club license as provided by Sections 32A-5-102 and 32A-5-103 ; and
             4511          (ii) the application is complete;
             4512          (b) determine [whether the applicant qualifies as a class A, B, C, or D private club
             4513      licensee] the type of club license for which the applicant qualifies;
             4514          (c) consider the locality within which the proposed [private] club license outlet is
             4515      located including:
             4516          (i) physical characteristics such as:
             4517          (A) condition of the premises;
             4518          (B) square footage; and
             4519          (C) parking availability; and
             4520          (ii) operational factors such as:
             4521          (A) tourist traffic;
             4522          (B) proximity to and density of other state stores, package agencies, and licensed
             4523      outlets;
             4524          (C) demographics;
             4525          (D) population to be served; and
             4526          (E) the extent of and proximity to any community location;
             4527          (d) consider the club license management's ability to manage and operate a [private]
             4528      club license, including:
             4529          (i) management experience;
             4530          (ii) past retail liquor experience; and
             4531          (iii) the type of management scheme employed by the [private] club licensee;
             4532          (e) consider the nature or type of [private] club [operation] operations of the proposed
             4533      [liquor] club licensee, including:
             4534          (i) the type of menu items offered and emphasized;
             4535          (ii) the hours of operation;
             4536          (iii) the seating capacity of the [facility] premises; and
             4537          (iv) the gross sales of food items; and


             4538          (f) consider any other factor or circumstance the commission considers necessary.
             4539          Section 44. Section 32A-5-106 is amended to read:
             4540           32A-5-106. Bond.
             4541          (1) Each [private] club [liquor] licensee shall post a cash or corporate surety bond in
             4542      the penal sum of $10,000 payable to the department, which the club licensee has procured and
             4543      must maintain for so long as the club licensee continues to operate as a [private] club [liquor]
             4544      licensee.
             4545          (2) The bond shall be in a form approved by the attorney general, conditioned upon
             4546      [the] a club licensee's faithful compliance with this title and the rules of the commission.
             4547          (3) (a) If [the] a $10,000 corporate surety bond is canceled due to [the] a club
             4548      licensee's negligence, a $300 reinstatement fee may be assessed.
             4549          (b) No part of any cash or corporate bond [so] posted under this section may be
             4550      withdrawn:
             4551          (i) during the period the club license is in effect[,]; or
             4552          (ii) while revocation proceedings are pending against the club licensee.
             4553          (c) A bond filed by a club licensee may be forfeited if the club license is finally
             4554      revoked.
             4555          Section 45. Section 32A-5-107 is amended to read:
             4556           32A-5-107. Operational restrictions.
             4557          A [club] person granted a [private] club license and the employees, management
             4558      personnel, and members of [the] an equity club licensee or fraternal club licensee shall comply
             4559      with the following conditions and requirements. Failure to comply may result in a suspension
             4560      or revocation of the [private] club license or other disciplinary action taken against individual
             4561      employees or management personnel.
             4562          (1) [A private] An equity club licensee or fraternal club licensee shall comply with the
             4563      following:
             4564          (a) A club licensee shall have a governing body that:
             4565          [(a)] (i) consists of three or more members of the [private] club; and


             4566          [(b)] (ii) holds regular meetings to:
             4567          [(i)] (A) review membership applications; and
             4568          [(ii)] (B) conduct other business as required by the bylaws or house rules of the
             4569      [private] club.
             4570          [(2) (a) A private] (b) A club licensee may admit an individual as a member only on
             4571      written application signed by the applicant, subject to:
             4572          (i) the applicant paying an application fee [as required by Subsection (4)]; and
             4573          (ii) investigation, vote, and approval of a quorum of the governing body.
             4574          [(b) (i) An] (c) A club licensee shall:
             4575          (i) record an admission of a member [shall be recorded] in the official minutes of a
             4576      regular meeting of the governing body[.]; and
             4577          (ii) [An application,] whether approved or disapproved, [shall be filed] file an
             4578      application as a part of the official records of the [private] club licensee.
             4579          [(c) Notwithstanding Subsection (2)(a), a private club, in its discretion, may admit an
             4580      applicant and immediately accord the applicant temporary privileges of a member until the
             4581      governing body completes its investigation and votes on the application, subject to the
             4582      following conditions:]
             4583          [(i) the applicant shall:]
             4584          [(A) submit a written application; and]
             4585          [(B) pay the application fee required by Subsection (4);]
             4586          [(ii) the governing body votes on the application at its next meeting, which shall take
             4587      place no later than 31 days following the day on which the application is submitted; and]
             4588          [(iii) the applicant's temporary membership privileges terminate if the governing body
             4589      disapproves the application.]
             4590          (d) The spouse of a member of [any class of private] a club licensee has the rights and
             4591      privileges of the member:
             4592          (i) to the extent permitted by the bylaws or house rules of the [private] club licensee;
             4593      and


             4594          (ii) except to the extent restricted by this title.
             4595          (e) [The] A minor child of a member of [a class A private] a club licensee has the
             4596      rights and privileges of the member:
             4597          (i) to the extent permitted by the bylaws or house rules of the [private] club licensee;
             4598      and
             4599          (ii) except to the extent restricted by this title.
             4600          [(3) (a) A private] (f) A club licensee shall maintain a current and complete
             4601      membership record showing:
             4602          (i) the date of application of a proposed member;
             4603          (ii) a member's address;
             4604          (iii) the date the governing body approved a member's admission;
             4605          (iv) the date initiation fees and dues are assessed and paid; and
             4606          (v) the serial number of the membership card issued to a member.
             4607          [(b) A] (g) A club licensee shall keep a current record [shall be kept] indicating when
             4608      a member is [dropped] removed as a member or resigns.
             4609          [(4) (a) A private] (h) A club licensee shall establish in the [private] club licensee's
             4610      bylaws or house rules application fees and membership dues[:].
             4611          [(i) as established by commission rules; and]
             4612          [(ii) that are collected from all members.]
             4613          [(b) An application fee:]
             4614          [(i) may not be less than $4;]
             4615          [(ii) shall be paid when the applicant applies for membership; and]
             4616          [(iii) at the discretion of the private club, may be credited toward membership dues if
             4617      the governing body approves the applicant as a member.]
             4618          [(5) (a) A private] (i) A club licensee may, in its discretion, allow an individual to be
             4619      admitted to or use the [private] club license premises as a guest [only under] subject to the
             4620      following conditions:
             4621          (i) the individual is allowed to use the club license premises only to the extent


             4622      permitted by the club licensee's bylaws or house rules;
             4623          [(i) a guest] (ii) the individual must be previously authorized by [one of the following]
             4624      a member of the club who agrees to host the individual as a guest into the [private] club[:];
             4625          [(A) an active member of the private club; or]
             4626          [(B) a holder of a current visitor card;]
             4627          [(ii) a guest must be known by the guest's host based on a preexisting bonafide
             4628      business or personal relationship with the host before the guest's admittance to the private
             4629      club;]
             4630          [(iii) a guest must be accompanied by the guest's host for the duration of the guest's
             4631      visit to the private club;]
             4632          [(iv) a guest's host must remain on the private club premises for the duration of the
             4633      guest's visit to the private club;]
             4634          [(v) a guest's host is responsible for the cost of services extended to the guest;]
             4635          [(vi) a guest] (iii) the individual has only those privileges derived from the [guest's]
             4636      individual's host for the duration of the [guest's] individual's visit to the [private] club license
             4637      premises; and
             4638          [(vii) an employee of the private club, while on duty, may not act as a host for a
             4639      guest;]
             4640          [(viii) an employee of the private club, while on duty, may not attempt to locate a
             4641      member or current visitor card holder to serve as a host for a guest with whom the member or
             4642      visitor card holder has no acquaintance based on a preexisting bonafide business or personal
             4643      relationship prior to the guest's arrival at the private club; and]
             4644          [(ix) a private] (iv) a club licensee or an employee of the [private] club licensee may
             4645      not enter into an agreement or arrangement with a club member [or holder of a current visitor
             4646      card] to indiscriminately host a member of the general public into the [private] club license
             4647      premises as a guest.
             4648          [(b)] (j) Notwithstanding Subsection [(5)(a), previous authorization is not required]
             4649      (1)(i), an individual may be allowed as a guest in a club license premises without a host if:


             4650          [(i) the private club licensee is a class B private club; and]
             4651          (i) (A) the club licensee is an equity club licensee; and
             4652          (B) the individual is a member of an equity club licensee that has reciprocal guest
             4653      privileges with the equity club licensee for which the individual is a guest; or
             4654          (ii) (A) the club licensee is a fraternal club licensee; and
             4655          [(ii) the guest] (B) the individual is a member of the same fraternal organization as
             4656      the [private] fraternal club licensee for which the individual is a guest.
             4657          [(6) A private club may, in its discretion, issue a visitor card to allow an individual to
             4658      enter and use the private club premises on a temporary basis under the following conditions:]
             4659          [(a) a visitor card shall be issued for a period not to exceed three weeks;]
             4660          [(b) a fee of not less than $4 shall be assessed for a visitor card that is issued;]
             4661          [(c) a visitor card may not be issued to a minor;]
             4662          [(d) a holder of a visitor card may not host more than seven guests at one time;]
             4663          [(e) a visitor card issued shall include:]
             4664          [(i) the visitor's full name and signature;]
             4665          [(ii) the date the visitor card is issued;]
             4666          [(iii) the date the visitor card expires;]
             4667          [(iv) the club's name; and]
             4668          [(v) the serial number of the visitor card; and]
             4669          [(f) (i) the private club shall maintain a current record of the issuance of a visitor card
             4670      on the private club premises; and]
             4671          [(ii) the record described in Subsection (6)(f)(i) shall:]
             4672          [(A) be available for inspection by the department; and]
             4673          [(B) include:]
             4674          [(I) the name of the person to whom the visitor card is issued;]
             4675          [(II) the date the visitor card is issued;]
             4676          [(III) the date the visitor card expires; and]
             4677          [(IV) the serial number of the visitor card.]


             4678          [(7) A private] (k) A club licensee may not sell an alcoholic beverage to or allow a
             4679      patron to be admitted to or use the [private] club license premises other than:
             4680          [(a)] (i) a member; or
             4681          (ii) a guest under Subsection (1)(i) or (j).
             4682          [(b) a visitor who holds a valid visitor card issued under Subsection (6); or]
             4683          [(c) a guest of: (i) a member; or (ii) a holder of a valid visitor card.]
             4684          [(8) (a)] (l) A minor may not be[: (i)] a member, officer, director, or trustee of a
             4685      [private] club[;] licensee.
             4686          [(ii) issued a visitor card;]
             4687          [(iii) admitted into, use, or be on the premises of a lounge or bar area, as defined by
             4688      commission rule, of a private club except to the extent authorized under Subsection (8)(c)(ii);]
             4689          (m) (i) A club licensee shall maintain a minute book that is posted currently by the
             4690      club licensee.
             4691          (ii) The minute book required by this Subsection (1)(m) shall contain the minutes of a
             4692      regular or special meeting of the governing body.
             4693          (n) A club licensee shall maintain a membership list.
             4694          (o) A club licensee shall maintain a current copy of the club licensee's current bylaws
             4695      and current house rules.
             4696          (p) Public advertising related to a club licensee by the following shall clearly identify a
             4697      club as being "a club for members":
             4698          (i) the club licensee;
             4699          (ii) an employee or agent of the club licensee; or
             4700          (iii) a person under a contract or agreement with the club licensee.
             4701          [(iv) admitted into, use, or be on the premises of a class D private club:]
             4702          [(A) that operates as a sexually oriented business as defined by local ordinance; or]
             4703          [(B) when a sexually oriented entertainer is performing on the premises; or]
             4704          [(v) admitted into, use, or be on the premises of a class D private club except to the
             4705      extent authorized under Subsections (8)(b) through (g).]


             4706          [(b) Except as provided in Subsection (8)(a)(iv), at the discretion of a class D private
             4707      club, a minor may be admitted into, use, or be on the premises of a class D private club under
             4708      the following circumstances:]
             4709          [(i) during a period when no alcoholic beverages are sold, served, otherwise furnished,
             4710      or consumed on the premises, but in no event later than 1 p.m.;]
             4711          [(ii) when accompanied at all times by a member or holder of a current visitor card
             4712      who is the minor's parent, legal guardian, or spouse; and]
             4713          [(iii) the private club has a full kitchen and is licensed by the local jurisdiction as a
             4714      food service provider.]
             4715          [(c) A class D private club may employ a minor on the premises of the private club if:]
             4716          [(i) the parent or legal guardian of the minor owns or operates the class D private club;
             4717      or]
             4718          [(ii) the minor performs maintenance and cleaning services during the hours when the
             4719      private club is not open for business.]
             4720          (2) (a) A minor may not be admitted into, use, or be on:
             4721          (i) a lounge or bar area, as defined by commission rule, of the premises of:
             4722          (A) an equity club licensee;
             4723          (B) a fraternal club licensee; or
             4724          (C) a dining club licensee; or
             4725          (ii) the premises of:
             4726          (A) a dining club licensee unless accompanied by an individual who is 21 years of age
             4727      or older; or
             4728          (B) a social club licensee, except to the extent provided for under Subsection (2)(d).
             4729          (b) (i) Except as provided in Subsection (2)(b)(ii), a club licensee may not employ a
             4730      minor to:
             4731          (A) sell, dispense, or handle an alcoholic beverage; or
             4732          (B) work in a lounge or bar area of an equity club licensee, fraternal club licensee, or
             4733      dining club licensee.


             4734          (ii) An equity club licensee or dining club licensee may employ a minor who is at least
             4735      16 years of age to enter the sale at a cash register or other sales recording device, except that a
             4736      minor may not work in a lounge or bar area of the club licensee.
             4737          (c) A minor may not be employed on the premises of a social club licensee.
             4738          (d) (i) [Subject to Subsection (8)(d)(ii), a] A minor who is at least 18 years of age may
             4739      be admitted into, use, or be on the premises of a dance or concert hall if:
             4740          (A) the dance or concert hall is located:
             4741          (I) on the premises of a [class D private] social club licensee; or
             4742          (II) on the property that immediately adjoins the premises of and is operated by a
             4743      [class D private] social club licensee; and
             4744          (B) the social club licensee holds a permit to operate a dance or concert hall that was
             4745      granted on or before May 11, 2009:
             4746          (I) on the basis of the operational requirements described in Subsection (2)(d)(ii); and
             4747          (II) when the social club licensee was licensed as a class D private club.
             4748          [(B) the commission issues the class D private club a permit to operate a minor dance
             4749      or concert hall based on the criteria described in Subsection (8)(d)(iii).]
             4750          [(ii) If the dance or concert hall is located on the premises of a class D private club, a
             4751      minor must be properly hosted in accordance with Subsection (5) by:]
             4752          [(A) a member; or]
             4753          [(B) a holder of a current visitor card.]
             4754          [(iii) The commission may issue a minor dance or concert hall permit if:]
             4755          (ii) A social club licensee that holds a dance or concert hall permit shall operate in
             4756      such a way that:
             4757          (A) the [private club's] social club licensee's lounge, bar, [and] or other area for
             4758      alcoholic beverage consumption [area] is:
             4759          (I) not accessible to a minor;
             4760          (II) clearly defined; and
             4761          (III) separated from the dance or concert hall area by one or more walls, multiple floor


             4762      levels, or other substantial physical barriers;
             4763          (B) a bar or dispensing area is not visible to a minor;
             4764          (C) consumption of an alcoholic beverage may not occur in:
             4765          (I) the dance or concert hall area; or
             4766          (II) an area of the [private] social club license premises accessible to a minor;
             4767          (D) the [private] social club licensee maintains sufficient security personnel to prevent
             4768      the passing of beverages from the [private club's] social club licensee's lounge, bar, or [an]
             4769      other area for alcoholic beverage consumption [area] to:
             4770          (I) the dance or concert hall area; or
             4771          (II) an area of the [private] social club license premises accessible to a minor;
             4772          (E) there are one or more separate entrances, exits, and restroom facilities from the
             4773      [private club's] social club licensee's lounge, bar, [and] or other area for alcoholic beverage
             4774      consumption [areas] than for:
             4775          (I) the dance or concert hall area; or
             4776          (II) an area accessible to a minor; and
             4777          (F) the [private] social club licensee complies with any other restrictions imposed by
             4778      the commission by rule.
             4779          [(e)] (iii) A minor under 18 years of age who is accompanied at all times by a parent
             4780      or legal guardian [who is a member or holder of a current visitor card] may be admitted into,
             4781      use, or be on the premises of a concert hall described in Subsection [(8)(d)(i)] (2)(d)(ii) if:
             4782          [(i)] (A) the requirements of Subsection [(8)] (2)(d) are met; and
             4783          [(ii)] (B) signage, product, and dispensing equipment containing recognition of an
             4784      alcoholic beverage is not visible to the minor.
             4785          [(f)] (iv) A minor under 18 years of age but who is 14 years of age or older who is not
             4786      accompanied by a parent or legal guardian may be admitted into, use, or be on the premises of
             4787      a concert hall described in Subsection [(8)(d)(i)] (2)(d)(ii) if:
             4788          [(i)] (A) the requirements of Subsections [(8)(d) and (8)(e)(ii)] (2)(d)(ii) and (iii) are
             4789      met; and


             4790          [(ii)] (B) there is no alcoholic beverage, sales, service, or consumption on the premises
             4791      of the [class D private] social club licensee.
             4792          [(g)] (v) The commission may suspend or revoke a [minor] dance or concert permit
             4793      issued to a [class D private] social club licensee and suspend or revoke the license of the [class
             4794      D private] social club licensee if:
             4795          [(i)] (A) the [private] social club licensee fails to comply with the restrictions in this
             4796      Subsection [(8)(d), (e), or (f)] (2)(d);
             4797          [(ii)] (B) the [private] social club licensee sells, serves, or otherwise furnishes an
             4798      alcoholic beverage to a minor;
             4799          [(iii)] (C) the [private] social club licensee or a supervisory or managerial level
             4800      employee of the [private] social club licensee is convicted under Title 58, Chapter 37, Utah
             4801      Controlled Substances Act, on the basis of an activity that occurs on:
             4802          [(A)] (I) the licensed premises; or
             4803          [(B)] (II) the dance or concert hall that is located on property that immediately adjoins
             4804      the premises of and is operated by the [class D private] social club licensee;
             4805          [(iv)] (D) there are three or more convictions of patrons of the [private] social club
             4806      licensee under Title 58, Chapter 37, Utah Controlled Substances Act, [based on] on the basis
             4807      of activities that occur on:
             4808          [(A)] (I) the licensed premises; or
             4809          [(B)] (II) the dance or concert hall that is located on property that immediately adjoins
             4810      the premises of and is operated by the [class D private] social club licensee;
             4811          [(v)] (E) there is more than one conviction:
             4812          [(A)] (I) of:
             4813          [(I)] (Aa) the [private] social club licensee;
             4814          [(II)] (Bb) an employee of the [private] social club licensee;
             4815          [(III)] (Cc) an entertainer contracted by the [private] social club licensee; or
             4816          [(IV)] (Dd) a patron of the [private] social club licensee; and
             4817          [(B)] (II) made on the basis of a lewd act or lewd entertainment prohibited by this title


             4818      that occurs on:
             4819          [(I)] (A) the licensed premises; or
             4820          [(II)] (B) the dance or concert hall that is located on property that immediately adjoins
             4821      the premises of and is operated by the [class D private] social club licensee; or
             4822          [(vi)] (F) the commission finds acts or conduct contrary to the public welfare and
             4823      morals involving lewd acts or lewd entertainment prohibited by this title that occurs on:
             4824          [(A)] (I) the licensed premises; or
             4825          [(B)] (II) the dance or concert hall that is located on property that immediately adjoins
             4826      the premises of and is operated by the [class D private] social club licensee.
             4827          [(h)] (vi) Nothing in this Subsection [(8)] (2) prohibits a [class D private] social club
             4828      licensee from selling, serving, or otherwise furnishing an alcoholic beverage in a dance or
             4829      concert area located on the [private] social club license premises on days and times when the
             4830      [private] social club licensee does not allow a minor into those areas.
             4831          [(i)] (e) Nothing in [Subsections (8)(a) through (g)] this Subsection (2) precludes a
             4832      local authority from being more restrictive of a minor's admittance to, use of, or presence on
             4833      the premises of a [private] club licensee.
             4834          [(9)] (3) (a) A [private] club license shall maintain an expense ledger or record
             4835      showing in detail [all]:
             4836          (i) quarterly expenditures separated by payments for:
             4837          [(i)] (A) malt or brewed beverages;
             4838          [(ii)] (B) liquor;
             4839          [(iii)] (C) food;
             4840          [(iv) detailed payroll;]
             4841          [(v) entertainment;]
             4842          [(vi) rent;]
             4843          [(vii) utilities;]
             4844          [(viii) supplies; and]
             4845          [(ix) other expenditures.]


             4846          (D) set-ups; and
             4847          (E) any other item required by the department; and
             4848          (ii) sales made separately for:
             4849          (A) malt or brewed beverages;
             4850          (B) liquor;
             4851          (C) food;
             4852          (D) set-ups; and
             4853          (E) any other item required by the department.
             4854          (b) A [private] club licensee shall keep a record required by this Subsection [(9)] (3):
             4855          (i) in a form approved by the department; and
             4856          [(ii) balanced each month.]
             4857          (ii) current for each three-month period.
             4858          (c) An expenditure of a club licensee shall be supported by:
             4859          (i) a delivery ticket;
             4860          (ii) an invoice;
             4861          (iii) a receipted bill;
             4862          (iv) a canceled check;
             4863          (v) a petty cash voucher; or
             4864          (vi) other sustaining datum or memorandum.
             4865          [(d) An invoice or receipted bill for the current calendar or fiscal year documenting a
             4866      purchase made by the private club shall be maintained.]
             4867          [(10) (a) A private club shall maintain a minute book that is posted currently by the
             4868      private club.]
             4869          [(b) The minute book required by this Subsection (10) shall contain the minutes of a
             4870      regular or special meeting of the governing body.]
             4871          [(c) A private club shall maintain a membership list.]
             4872          [(11) (a) A private club shall maintain a current copy of the private club's current
             4873      bylaws and current house rules.]


             4874          [(b) A change in the bylaws or house rules:]
             4875          [(i) is not effective unless submitted to the department within ten days after adoption;
             4876      and]
             4877          [(ii) becomes effective 15 days after received by the department unless rejected by the
             4878      department before the expiration of the 15-day period.]
             4879          [(12) A private club] (d) In addition to a ledger or record required by Subsection
             4880      (3)(a), a club licensee shall maintain accounting and other records and documents as the
             4881      department may require.
             4882          [(13)] (e) A [private] club licensee or person acting for the [private] club licensee, who
             4883      knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of
             4884      account or other document of the [private] club licensee required to be made, maintained, or
             4885      preserved by this title or the rules of the commission for the purpose of deceiving the
             4886      commission, the department, or an official or employee of the commission or department, is
             4887      subject to:
             4888          [(a)] (i) the suspension or revocation of the [private club's] club license; and
             4889          [(b)] (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             4890          [(14) (a)] (f) A [private] club licensee shall maintain and keep a record required by
             4891      this section and a book, record, receipt, or disbursement maintained or used by the club
             4892      licensee, as the department requires, for a minimum period of three years.
             4893          [(b)] (g) A record, book, receipt, or disbursement is subject to inspection by an
             4894      authorized representative of the commission and the department.
             4895          [(c)] (h) A [private] club licensee shall allow the department, through an auditor or
             4896      examiner of the department, to audit the records of the [private] club licensee at times the
             4897      department considers advisable.
             4898          [(d)] (i) The department shall audit the records of the [private] club licensee at least
             4899      once annually.
             4900          [(15)] (4) (a) A [private] club licensee shall own or lease premises suitable for the
             4901      [private club's] club licensee's activities.


             4902          [(16) (a)] (b) A [private] club licensee may not maintain [facilities] premises in a
             4903      manner that barricades or conceals the [private] club licensee's operation.
             4904          [(b)] (c) A member of the commission, authorized department personnel, or a peace
             4905      officer shall, upon presentation of credentials, be admitted immediately to the [private] club
             4906      license premises and permitted without hindrance or delay to inspect completely the entire
             4907      [private] club license premises and the books and records of the [private] club licensee, at any
             4908      time during which the [private] club licensee is open for the transaction of business to its
             4909      members.
             4910          [(17) Public advertising related to a private club licensee by the following shall clearly
             4911      identify a private club as being "a private club for members":]
             4912          [(a) the private club licensee;]
             4913          [(b) an employee or agent of the private club licensee; or]
             4914          [(c) a person under a contract or agreement with the private club licensee.]
             4915          [(18) A private] (5) A club licensee must have food available at all times when an
             4916      alcoholic beverage is sold, served, or consumed on the premises.
             4917          [(19)] (6) (a) [Liquor may not be purchased by a private] A club licensee may not
             4918      purchase liquor except from a state store or package agency.
             4919          (b) Liquor purchased from a state store or package agency may be transported by the
             4920      [private] club licensee from the place of purchase to the licensed premises.
             4921          (c) Payment for liquor shall be made in accordance with rules established by the
             4922      commission.
             4923          [(20)] (7) A [private] club licensee may sell or provide a primary spirituous liquor only
             4924      in a quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated metered
             4925      dispensing system approved by the department in accordance with commission rules adopted
             4926      under this title, except that:
             4927          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             4928      system if used as a secondary flavoring ingredient in a beverage subject to the following
             4929      restrictions:


             4930          (i) the secondary ingredient may be dispensed only in conjunction with the purchase
             4931      of a primary spirituous liquor;
             4932          (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
             4933          (iii) the [private] club licensee shall designate a location where flavorings are stored
             4934      on the floor plan provided to the department; and
             4935          (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
             4936          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             4937      system if used:
             4938          (i) as a flavoring on a dessert; and
             4939          (ii) in the preparation of a flaming food dish, drink, or dessert;
             4940          (c) a [private] club licensee patron may have no more than 2.5 ounces of spirituous
             4941      liquor at a time before the [private] club licensee patron[.]; and
             4942          (d) a [private] club licensee patron may have no more than two spirituous liquor
             4943      drinks at a time before the [private] club licensee patron, except that a [private] club licensee
             4944      patron may not have two spirituous liquor drinks before the [private] club licensee patron if
             4945      one of the spirituous liquor drinks consists only of the primary spirituous liquor for the other
             4946      spirituous liquor drink.
             4947          [(21)] (8) (a) (i) Wine may be sold and served by the glass or an individual portion not
             4948      to exceed five ounces per glass or individual portion.
             4949          (ii) An individual portion may be served to a patron in more than one glass as long as
             4950      the total amount of wine does not exceed five ounces.
             4951          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             4952      Subsection [(25)] (12)(c).
             4953          (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
             4954      fixed by the commission to a table of four or more persons.
             4955          (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
             4956      fixed by the commission to a table of less than four persons.
             4957          (c) A wine service may be performed and a service charge assessed by the [private]


             4958      club licensee as authorized by commission rule for wine purchased at the [private] club license
             4959      premises.
             4960          [(22)] (9) (a) Heavy beer may be served in an original container not exceeding one
             4961      liter at a price fixed by the commission.
             4962          (b) A flavored malt beverage may be served in an original container not exceeding one
             4963      liter at a price fixed by the commission.
             4964          (c) A service charge may be assessed by the [private] club licensee for heavy beer or a
             4965      flavored malt beverage purchased at the [private] club license premises.
             4966          [(23)] (10) (a) (i) Subject to Subsection [(23)] (10)(a)(ii), a [private] club licensee may
             4967      sell beer for on-premise consumption:
             4968          (A) in an open container; and
             4969          (B) on draft.
             4970          (ii) Beer sold pursuant to Subsection [(23)] (10)(a)(i) shall be in a size of container
             4971      that does not exceed two liters, except that beer may not be sold to an individual patron in a
             4972      size of container that exceeds one liter.
             4973          (b) (i) A [private] club licensee that sells beer pursuant to Subsection [(23)] (10)(a):
             4974          (A) may do so without obtaining a separate on-premise beer retailer license from the
             4975      commission; and
             4976          (B) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             4977      Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
             4978      inconsistent with or less restrictive than the operational restrictions under this chapter.
             4979          (ii) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             4980      Licenses, required by Subsection [(23)] (10)(b)(i) may result in a suspension or revocation of
             4981      the [private club's] club licensee's:
             4982          (A) state liquor license; and
             4983          (B) alcoholic beverage license issued by the local authority.
             4984          [(24)] (11) An alcoholic beverage may not be stored, served, or sold in a place other
             4985      than as designated in the [private] club licensee's application, unless the [private] club licensee


             4986      first applies for and receives approval from the department for a change of location within the
             4987      [private] club license.
             4988          [(25)] (12) (a) A patron may only make an alcoholic beverage purchase in the [private]
             4989      club license premises from and be served by a person employed, designated, and trained by the
             4990      [private] club licensee to sell, dispense, and serve an alcoholic beverage.
             4991          (b) Notwithstanding Subsection [(25)] (12)(a), a patron who purchases bottled wine
             4992      from an employee of the [private] club licensee or carries bottled wine onto the premises of the
             4993      [private] club licensee pursuant to Subsection [(31)] (18) may thereafter serve wine from the
             4994      bottle to the patron or others at the patron's table.
             4995          (c) A [private] club licensee patron may have no more than two alcoholic beverages of
             4996      any kind at a time before the [private] club licensee patron, subject to the limitation of
             4997      Subsection [(20)] (7)(d).
             4998          [(26)] (13) The liquor storage area shall remain locked at all times other than those
             4999      hours and days when liquor sales and service are authorized by law.
             5000          [(27)] (14) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished
             5001      at a [private] club license premises on any day after 1 a.m. or before 10 a.m.
             5002          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             5003      Licenses, for on-premise beer licenses.
             5004          (c) (i) Notwithstanding Subsections [(27)] (14)(a) and (b), a [private] club license
             5005      premises shall remain open for one hour after the [private] club licensee ceases the sale and
             5006      service of an alcoholic beverage during which time a patron of the [private] club licensee may
             5007      finish consuming:
             5008          (A) a single drink containing spirituous liquor;
             5009          (B) a single serving of wine not exceeding five ounces;
             5010          (C) a single serving of heavy beer;
             5011          (D) a single serving of beer not exceeding 26 ounces; or
             5012          (E) a single serving of a flavored malt beverage.
             5013          (ii) A [private] club licensee is not required to remain open:


             5014          (A) after all patrons have vacated the premises; or
             5015          (B) during an emergency.
             5016          (d) Between the hours of 2 a.m. and 10 a.m. on any day a [private] club licensee may
             5017      not allow a patron to remain on the premises of the [private] club licensee to consume an
             5018      alcoholic beverage on the premises.
             5019          [(28)] (15) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
             5020          (a) minor;
             5021          (b) person actually, apparently, or obviously intoxicated;
             5022          (c) known habitual drunkard; or
             5023          (d) known interdicted person.
             5024          [(29)] (16) (a) (i) Liquor may be sold only at a price fixed by the commission.
             5025          (ii) Liquor may not be sold at a discount price on any date or at any time.
             5026          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             5027      beverage to the [private] club licensee.
             5028          (c) An alcoholic beverage may not be sold at a special or reduced price that
             5029      encourages over consumption or intoxication.
             5030          (d) The price of a single serving of a primary spirituous liquor shall be the same
             5031      whether served as a single drink or in conjunction with another alcoholic beverage.
             5032          (e) An alcoholic beverage may not be sold at a special or reduced price for only certain
             5033      hours of the [private club's] club licensee's business day such as a "happy hour."
             5034          (f) More than one alcoholic beverage may not be sold or served for the price of a
             5035      single alcoholic beverage.
             5036          (g) An indefinite or unlimited number of alcoholic beverages may not be sold or
             5037      served during a set period for a fixed price.
             5038          (h) A [private] club licensee may not engage in a promotion involving or offering free
             5039      alcoholic beverages to patrons of the [private] club licensee.
             5040          [(30)] (17) An alcoholic beverage may not be purchased for a patron of the [private]
             5041      club licensee by:


             5042          (a) the [private] club licensee; or
             5043          (b) an employee or agent of the [private] club licensee.
             5044          [(31)] (18) (a) A person may not bring onto the premises of a [private] club licensee
             5045      an alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             5046      discretion of the club licensee, bottled wine onto the premises of a [private] club licensee for
             5047      on-premise consumption.
             5048          (b) Except bottled wine under Subsection [(31)] (18)(a), a [private] club licensee or an
             5049      officer, manager, employee, or agent of a [private] club licensee may not allow:
             5050          (i) a person to bring onto the [private] club license premises an alcoholic beverage for
             5051      consumption on the [private] club license premises; or
             5052          (ii) consumption of an alcoholic beverage described in Subsection [(31)] (18)(b)(i) on
             5053      the premises of the [private] club licensee.
             5054          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             5055      or other representative of the [private] club licensee upon entering the [private] club license
             5056      premises.
             5057          (d) A wine service may be performed and a service charge assessed by the [private]
             5058      club licensee as authorized by commission rule for wine carried in by a patron.
             5059          [(32)] (19) (a) Except as provided in Subsection [(32)] (19)(b), a [private] club
             5060      licensee or an employee of the [private] club licensee may not permit a patron of the [private]
             5061      club licensee to carry from the [private] club license premises an open container that:
             5062          (i) is used primarily for drinking purposes; and
             5063          (ii) contains an alcoholic beverage.
             5064          (b) A patron may remove the unconsumed contents of a bottle of wine if before
             5065      removal, the bottle is recorked or recapped.
             5066          [(33) (a) A minor may not be employed by a class A, B, or C private club licensee to
             5067      sell, dispense, or handle an alcoholic beverage.]
             5068          [(b) Notwithstanding Subsection (33)(a), a minor who is at least 16 years of age may
             5069      be employed by a class A or C private club licensee to enter the sale at a cash register or other


             5070      sales recording device.]
             5071          [(c) Except to the extent authorized in Subsection (8)(c), a minor may not be
             5072      employed by or be on the premises of a class D private club.]
             5073          [(d) A minor may not be employed to work in a lounge or bar area of a class A, B, or
             5074      C private club licensee.]
             5075          [(34)] (20) An employee of a [private] club licensee, while on duty, may not:
             5076          (a) consume an alcoholic beverage; or
             5077          (b) be intoxicated.
             5078          [(35)] (21) A [private] club licensee shall have available on the premises for a patron
             5079      to review at the time that the [customer] patron requests it, a written alcoholic beverage price
             5080      list or a menu containing the price of an alcoholic beverage sold or served by the [private] club
             5081      licensee including:
             5082          (a) a set-up charge;
             5083          (b) a service charge; or
             5084          (c) a chilling fee.
             5085          [(36)] (22) A [private] club licensee shall display in a prominent place in the [private]
             5086      club license premises:
             5087          (a) the [private] club license that is issued by the department;
             5088          (b) a list of the types and brand names of liquor being served through [its] the club
             5089      licensee's calibrated metered dispensing system; and
             5090          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             5091      drugs is a serious crime that is prosecuted aggressively in Utah."
             5092          [(37)] (23) A [private] club licensee may not on the premises of the [private] club
             5093      licensee:
             5094          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             5095      Chapter 10, Part 11, Gambling;
             5096          (b) have any video gaming device, as defined and proscribed in Title 76, Chapter 10,
             5097      Part 11, Gambling; or


             5098          (c) engage in or permit a contest, game, gaming scheme, or gaming device that
             5099      requires the risking of something of value for a return or for an outcome when the return or
             5100      outcome is based upon an element of chance, excluding the playing of an amusement device
             5101      that confers only an immediate and unrecorded right of replay not exchangeable for value.
             5102          [(38)] (24) (a) A [private] club licensee may not close or cease operation for a period
             5103      longer than 240 hours, unless:
             5104          (i) the [private] club licensee notifies the department in writing at least seven days
             5105      before the day on which the [private] club licensee closes or ceases operation; and
             5106          (ii) the closure or cessation of operation is first approved by the department.
             5107          (b) Notwithstanding Subsection [(38)] (24)(a), in the case of emergency closure, the
             5108      [private] club licensee shall immediately notify the department by telephone.
             5109          (c) (i) The department may authorize a closure or cessation of operation for a period
             5110      not to exceed 60 days.
             5111          (ii) The department may extend the initial period an additional 30 days upon:
             5112          (A) written request of the [private] club licensee; and
             5113          (B) a showing of good cause.
             5114          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             5115      commission approval.
             5116          (d) The notice required by Subsection [(38)] (24)(a) shall include:
             5117          (i) the dates of closure or cessation of operation;
             5118          (ii) the reason for the closure or cessation of operation; and
             5119          (iii) the date on which the [private] club licensee will reopen or resume operation.
             5120          (e) Failure of the [private] club licensee to provide notice and to obtain department
             5121      authorization before closure or cessation of operation results in an automatic forfeiture of:
             5122          (i) the [private] club license; and
             5123          (ii) the unused portion of the [private] club license fee for the remainder of the license
             5124      year effective immediately.
             5125          (f) Failure of the [private] club licensee to reopen or resume operation by the approved


             5126      date results in an automatic forfeiture of:
             5127          (i) the [private] club license; and
             5128          (ii) the unused portion of the [private] club license fee for the remainder of the license
             5129      year.
             5130          [(39)] (25) A [private] club license may not be transferred from one location to
             5131      another [person] location, without prior written approval of the commission.
             5132          [(40)] (26) (a) A [private] club licensee, may not sell, transfer, assign, exchange,
             5133      barter, give, or attempt in any way to dispose of the [private] club license to another person,
             5134      whether for monetary gain or not.
             5135          (b) A [private] club license has no monetary value for the purpose of any type of
             5136      disposition.
             5137          (27) Subject to Subsections (25) and (26), a club licensee may not temporarily rent or
             5138      otherwise temporarily lease its premises to a person unless:
             5139          (a) the person to whom the club licensee rents or leases the premises agrees in writing
             5140      to comply with this section as if the person is the club licensee, except for a requirement
             5141      related to maintaining a book, document, or similar record; and
             5142          (b) the club licensee takes reasonable steps to ensure that the person complies with this
             5143      section as provided in Subsection (26)(a).
             5144          (28) A dining club licensee or social club licensee shall comply with Section
             5145      32A-1-304.5 .
             5146          [(41)] (29) A [private] club licensee or an employee of the [private] club licensee may
             5147      not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
             5148      Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             5149          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             5150      58-37-2 ; or
             5151          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             5152      Section 58-37a-3 .
             5153          Section 46. Section 32A-5-109 is enacted to read:


             5154          32A-5-109. Transition in types of clubs.
             5155          (1) (a) If a private club licensee is a class C private club licensee as of June 30, 2009,
             5156      it renews its license in accordance with Section 32A-5-102 , and it continues to meet the
             5157      qualifications of a class C private club licensee:
             5158          (i) the class C private club licensee shall pay a renewal fee of $1,600; and
             5159          (ii) effective July 1, 2009, the class C private club licensee is automatically converted
             5160      to a dining club licensee.
             5161          (b) If a private club licensee is a class D private club licensee as of June 30, 2009, it
             5162      renews its license in accordance with Section 32A-5-102 , and it continues to meet the
             5163      qualifications of a class D private club licensee:
             5164          (i) the class D private club licensee shall pay a renewal fee of $1,600; and
             5165          (ii) effective July 1, 2009, the class D private club licensee is automatically converted
             5166      to a social club licensee.
             5167          (c) Notwithstanding Subsection (1)(a) or (b), if at the time of renewal a class C private
             5168      club licensee or class D private club licensee requests to convert effective July 1, 2009, to a
             5169      different type of club license than that provided in Subsection (1)(a) or (b), the commission
             5170      may approve a change in the type of club license in accordance with rules made by the
             5171      commission.
             5172          (2) A conversion under this section does not require a redetermination of applicable
             5173      proximity requirements.
             5174          Section 47. Section 32A-9-103 is amended to read:
             5175           32A-9-103. Qualifications.
             5176          (1) (a) The commission may not grant a warehousing license to any person who has
             5177      been convicted of:
             5178          (i) a felony under any federal or state law;
             5179          (ii) any federal or state law or local ordinance concerning the sale, manufacture,
             5180      distribution, warehousing, adulteration, or transportation of alcoholic beverages;
             5181          (iii) any crime involving moral turpitude; or


             5182          (iv) on two or more occasions within the five years before the day on which the license
             5183      is granted, driving under the influence of alcohol, any drug, or the combined influence of
             5184      alcohol and any drug.
             5185          (b) In the case of a partnership, corporation, or limited liability company the
             5186      proscription under Subsection (1)(a) applies if any of the following has been convicted of any
             5187      offense described in Subsection (1)(a):
             5188          (i) a partner;
             5189          (ii) a managing agent;
             5190          (iii) a manager;
             5191          (iv) an officer;
             5192          (v) a director;
             5193          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
             5194      the applicant corporation; or
             5195          (vii) a member who owns at least 20% of the applicant limited liability company.
             5196          (c) The proscription under Subsection (1)(a) applies if any person employed to act in a
             5197      supervisory or managerial capacity for the warehouse has been convicted of any offense
             5198      described in Subsection (1)(a).
             5199          (2) The commission may immediately suspend or revoke a warehousing license if after
             5200      the day on which the warehousing license is granted, a person described in Subsection (1)(a),
             5201      (b), or (c):
             5202          (a) is found to have been convicted of any offense described in Subsection (1)(a) prior
             5203      to the license being granted; or
             5204          (b) on or after the day on which the license is granted:
             5205          (i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
             5206          (ii) (A) is convicted of driving under the influence of alcohol, any drug, or the
             5207      combined influence of alcohol and any drug; and
             5208          (B) was convicted of driving under the influence of alcohol, any drug, or the combined
             5209      influence of alcohol and any drug within five years before the day on which the person is


             5210      convicted of the offense described in Subsection (2)(b)(ii)(A).
             5211          (3) The director may take emergency action by immediately suspending the operation
             5212      of the warehousing license according to the procedures and requirements of Title 63G, Chapter
             5213      4, Administrative Procedures Act, for the period during which the criminal matter is being
             5214      adjudicated if a person described in Subsection (1)(a), (b), or (c):
             5215          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii);
             5216      or
             5217          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
             5218      any drug, or the combined influence of alcohol and any drug; and
             5219          (ii) was convicted of driving under the influence of alcohol, any drug, or the combined
             5220      influence of alcohol and any drug within five years before the day on which the person is
             5221      arrested on a charge described in Subsection (3)(b)(i).
             5222          (4) (a) (i) The commission may not grant a warehousing license to any person who has
             5223      had any type of license, agency, or permit issued under this title revoked within the last three
             5224      years.
             5225          (ii) The commission may not grant a warehousing license to an applicant that is a
             5226      partnership, corporation, or limited liability company if any partner, managing agent,
             5227      manager, officer, director, stockholder who holds at least 20% of the total issued and
             5228      outstanding stock of an applicant corporation, or member who owns at least 20% of an
             5229      applicant limited liability company is or was:
             5230          (A) a partner or managing agent of any partnership that had any type of license,
             5231      agency, or permit issued under this title revoked within the last three years;
             5232          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
             5233      of the total issued and outstanding stock of any corporation that had any type of license,
             5234      agency, or permit issued under this title revoked within the last three years; or
             5235          (C) a manager or member who owns or owned at least 20% of any limited liability
             5236      company that had any type of license, agency, or permit issued under this title revoked within
             5237      the last three years.


             5238          (b) An applicant that is a partnership, corporation, or limited liability company may
             5239      not be granted a warehousing license if any of the following had any type of license, agency,
             5240      or permit issued under this title revoked while acting in that person's individual capacity
             5241      within the last three years:
             5242          (i) any partner or managing agent of the applicant partnership;
             5243          (ii) any managing agent, officer, director, or stockholder who holds at least 20% of the
             5244      total issued and outstanding stock of the applicant corporation; or
             5245          (iii) any manager or member who owns at least 20% of the applicant limited liability
             5246      company.
             5247          (c) A person acting in an individual capacity may not be granted a warehousing
             5248      license if that person was:
             5249          (i) a partner or managing agent of a partnership that had any type of license, agency,
             5250      or permit issued under this title revoked within the last three years;
             5251          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
             5252      total issued and outstanding stock of a corporation that had any type of license, agency, or
             5253      permit issued under this title revoked within the last three years; or
             5254          (iii) any manager or member who owned at least 20% of a limited liability company
             5255      that had any type of license, agency, or permit issued under this title revoked within the last
             5256      three years.
             5257          (5) (a) A minor may not be:
             5258          (i) granted a warehousing license; or
             5259          (ii) employed by a warehouse to handle liquor.
             5260          (b) The commission may not grant a warehousing license to an applicant that is a
             5261      partnership, corporation, or limited liability company if any of the following is a minor:
             5262          (i) a partner or managing agent of the applicant partnership;
             5263          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
             5264      total issued and outstanding stock of the applicant corporation; or
             5265          (iii) a manager or member who owns at least 20% of the applicant limited liability


             5266      company.
             5267          (6) A person, through any officer, director, representative, agent, or employee, or
             5268      otherwise, either directly or indirectly, may not hold at the same time both a warehousing
             5269      license and any other kind of license, agency, or permit issued under [Title 32A,] Chapter 3, 4,
             5270      4a, 5, 6, or 7, or Chapter 10, Part 2.
             5271          (7) If any person to whom a license [has been issued] is granted under this chapter no
             5272      longer possesses the qualifications required by this title for obtaining that license, the
             5273      commission may suspend or revoke that license.
             5274          Section 48. Section 32A-10-201 is amended to read:
             5275           32A-10-201. Commission's power to grant licenses -- Limitations.
             5276          (1) Before an establishment may sell beer at retail for on-premise consumption, it shall
             5277      first obtain:
             5278          (a) an on-premise beer retailer license from the commission as provided in this part;
             5279      and
             5280          (b) (i) a license issued by the local authority, as provided in Section 32A-10-101 , to
             5281      sell beer at retail for on-premise consumption; or
             5282          (ii) other written consent of the local authority to sell beer at retail for on-premise
             5283      consumption.
             5284          (2) (a) Subject to the requirements of this section and Subsection 32A-4a-201 (2), the
             5285      commission may [issue] grant on-premise beer retailer licenses for the purpose of establishing
             5286      on-premise beer retailer outlets at places and in numbers as it considers proper for the storage,
             5287      sale, and consumption of beer on premises operated as on-premise beer retailer outlets.
             5288          (b) Notwithstanding Subsection (2)(a), the total number of on-premise beer retailer
             5289      licenses that are taverns may not at any time aggregate more than that number determined by
             5290      dividing the population of the state by 30,500.
             5291          (c) For purposes of this Subsection (2), the population of the state shall be determined
             5292      by:
             5293          (i) the most recent United States decennial special census; or


             5294          (ii) another population determination made by the United States or state governments.
             5295          (d) (i) The commission may issue seasonal licenses for taverns established in areas the
             5296      commission considers necessary.
             5297          (ii) A seasonal license for taverns shall be for a period of six consecutive months.
             5298          (iii) An on-premise beer retailer license for a tavern issued for operation during a
             5299      summer time period is known as a "Seasonal A" on-premise beer retailer license for a tavern.
             5300      The period of operation for a "Seasonal A" on-premise beer retailer license for a tavern shall:
             5301          (A) begin on May 1; and
             5302          (B) end on October 31.
             5303          (iv) An on-premise beer retailer license for a tavern [issued] granted for operation
             5304      during a winter time period is known as a "Seasonal B" on-premise beer retailer license for a
             5305      tavern. The period of operation for a "Seasonal B" on-premise beer retailer license for a tavern
             5306      shall:
             5307          (A) begin on November 1; and
             5308          (B) end on April 30.
             5309          (v) In determining the number of tavern licenses that the commission may [issue]
             5310      grant under this section:
             5311          (A) a seasonal on-premise beer retailer license for a tavern is counted as [1/2] one-half
             5312      of one on-premise beer retailer license for a tavern; and
             5313          (B) each "Seasonal A" on-premise beer retailer license for a tavern shall be paired with
             5314      a "Seasonal B" on-premise beer retailer license for a tavern.
             5315          (3) (a) Except as provided in Subsection (3)(b), (c), or (d), the premises of an
             5316      on-premise beer retailer license may not be established:
             5317          (i) within 600 feet of a community location, as measured by the method in Subsection
             5318      (3)(e); or
             5319          (ii) within 200 feet of a community location, measured in a straight line from the
             5320      nearest entrance of the proposed outlet to the nearest property boundary of the community
             5321      location.


             5322          (b) With respect to the establishment of an on-premise beer retailer license, the
             5323      commission may authorize a variance to reduce the proximity requirement of Subsection
             5324      (3)(a)(i) if:
             5325          (i) the local authority grants its written consent to the variance;
             5326          (ii) the commission finds that alternative locations for establishing an on-premise beer
             5327      retailer license in the community are limited;
             5328          (iii) a public hearing is held in the city, town, or county, and where practical, in the
             5329      neighborhood concerned;
             5330          (iv) after giving full consideration to all of the attending circumstances and the
             5331      policies stated in Subsections 32A-1-104 (3) and (4), the commission determines that
             5332      establishing the license would not be detrimental to the public health, peace, safety, and
             5333      welfare of the community; and
             5334          (v) (A) the community location governing authority gives its written consent to the
             5335      variance; or
             5336          (B) when written consent is not given by the community location governing authority,
             5337      the commission finds that the applicant has established that:
             5338          (I) there is substantial unmet public demand to consume alcohol in a public setting
             5339      within the geographic boundary of the local authority in which the on-premise beer retailer
             5340      licensee is to be located;
             5341          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             5342      described in Subsection (3)(b)(v)(B)(I) other than through the establishment of an on-premise
             5343      beer retailer license; and
             5344          (III) there is no reasonably viable alternative location within the geographic boundary
             5345      of the local authority in which the on-premise beer retailer licensee is to be located for
             5346      establishing an on-premise beer retailer license to satisfy the unmet demand described in
             5347      Subsection (3)(b)(v)(B)(I).
             5348          (c) With respect to the establishment of an on-premise beer retailer license, the
             5349      commission may authorize a variance that reduces the proximity requirement of Subsection


             5350      (3)(a)(ii) if:
             5351          (i) the community location at issue is:
             5352          (A) a public library; or
             5353          (B) a public park;
             5354          (ii) the local authority grants its written consent to the variance;
             5355          (iii) the commission finds that alternative locations for establishing an on-premise beer
             5356      retailer license in the community are limited;
             5357          (iv) a public hearing is held in the city, town, or county, and where practical in the
             5358      neighborhood concerned;
             5359          (v) after giving full consideration to all of the attending circumstances and the policies
             5360      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             5361      on-premise beer retailer license would not be detrimental to the public health, peace, safety,
             5362      and welfare of the community; and
             5363          (vi) (A) the community location governing authority gives its written consent to the
             5364      variance; or
             5365          (B) when written consent is not given by the community location governing authority,
             5366      the commission finds that the applicant has established that:
             5367          (I) there is substantial unmet public demand to consume alcohol in a public setting
             5368      within the geographic boundary of the local authority in which the on-premise beer retailer
             5369      licensee is to be located;
             5370          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             5371      described in Subsection (3)(c)(vi)(B)(I) other than through the establishment of an on-premise
             5372      beer retailer license; and
             5373          (III) there is no reasonably viable alternative location within the geographic boundary
             5374      of the local authority in which the on-premise beer retailer licensee is to be located for
             5375      establishing an on-premise beer retailer license to satisfy the unmet demand described in
             5376      Subsection (3)(c)(vi)(B)(I).
             5377          (d) (i) With respect to an on-premise beer retailer license [issued] granted by the


             5378      commission before July 1, 1991, to an establishment that undergoes a change in ownership
             5379      after that date, the commission may waive or vary the proximity requirements of this
             5380      Subsection (3) in considering whether to grant an on-premise retailer beer license to the new
             5381      owner.
             5382          (ii) With respect to the premises of an on-premise beer retailer license [issued] granted
             5383      by the commission that undergoes a change of ownership, the commission may waive or vary
             5384      the proximity requirements of Subsection (3)(a) in considering whether to grant an on-premise
             5385      beer retailer license to the new owner of the premises if:
             5386          (A) (I) the premises previously received a variance from the proximity requirement of
             5387      Subsection (3)(a)(i); or
             5388          (II) the premises received a variance from the proximity requirement of Subsection
             5389      (3)(a)(ii) on or before May 4, 2008; or
             5390          (B) a variance from proximity requirements was otherwise allowed under this title.
             5391          (e) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
             5392      nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to
             5393      the property boundary of the community location.
             5394          (4) (a) Nothing in this section prevents the commission from considering the
             5395      proximity of any educational, religious, and recreational facility, or any other relevant factor in
             5396      reaching a decision on a proposed location.
             5397          (b) For purposes of this Subsection (4), "educational facility" includes:
             5398          (i) a nursery school;
             5399          (ii) an infant day care center; and
             5400          (iii) a trade and technical school.
             5401          Section 49. Section 32A-10-202 is amended to read:
             5402           32A-10-202. Application and renewal requirements.
             5403          (1) A person seeking an on-premise beer retailer license under this chapter shall file a
             5404      written application with the department, in a form prescribed by the department. The
             5405      application shall be accompanied by:


             5406          (a) a nonrefundable $250 application fee;
             5407          (b) an initial license fee that is refundable if a license is not granted in the following
             5408      amount:
             5409          (i) if the on-premise beer retailer licensee does not operate as a tavern, the initial
             5410      license fee is $150; or
             5411          (ii) if the on-premise beer retailer licensee operates as a tavern, the initial license fee is
             5412      $1,250;
             5413          (c) written consent of the local authority or a license to sell beer at retail for
             5414      on-premise consumption granted by the local authority under Section 32A-10-101 ;
             5415          (d) a copy of the applicant's current business license;
             5416          (e) evidence of proximity to any community location, with proximity requirements
             5417      being governed by Section 32A-10-201 ;
             5418          (f) a bond as specified by Section 32A-10-205 ;
             5419          (g) a floor plan of the premises, including consumption areas and the area where the
             5420      applicant proposes to keep, store, and sell beer;
             5421          (h) evidence that the on-premise beer retailer licensee is carrying public liability
             5422      insurance in an amount and form satisfactory to the department;
             5423          (i) for a licensee that sells more than $5,000 of beer annually, evidence that the
             5424      on-premise beer retailer licensee is carrying dramshop insurance coverage of at least
             5425      [$500,000] $1,000,000 per occurrence and [$1,000,000] $2,000,000 in the aggregate;
             5426          (j) a signed consent form stating that the on-premise beer retailer licensee will permit
             5427      any authorized representative of the commission, department, or any peace officer unrestricted
             5428      right to enter the licensee premises;
             5429          (k) in the case of an applicant that is a partnership, corporation, or limited liability
             5430      company, proper verification evidencing that the person or persons signing the on-premise
             5431      beer retailer licensee application are authorized to so act on the behalf of the partnership,
             5432      corporation, or limited liability company; and
             5433          (l) any other information the department may require.


             5434          (2) (a) [All] An on-premise beer retailer [licenses expire] license expires on the last
             5435      day of February of each year.
             5436          (b) (i) Except as provided in Subsection (2)(b)(ii), a person desiring to renew the
             5437      person's on-premise beer retailer license shall submit by no later than January 31:
             5438          (A) a completed renewal application to the department; and
             5439          (B) a renewal fee in the following amount:
             5440          (I) if the on-premise beer retailer licensee does not operate as a tavern, the renewal fee
             5441      is $200; or
             5442          (II) if the on-premise beer retailer licensee operates as a tavern, the renewal fee is
             5443      $1,000.
             5444          (ii) A licensee is not required to submit a renewal fee if the licensee is:
             5445          (A) a state agency; or
             5446          (B) a political subdivision of the state including:
             5447          (I) a county; or
             5448          (II) a municipality.
             5449          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             5450      the license, effective on the date the existing license expires.
             5451          (d) A renewal statement shall be in a form as prescribed by the department.
             5452          (3) To ensure compliance with Subsection 32A-10-206 (17), the commission may
             5453      suspend or revoke a beer retailer license if a beer retailer licensee does not immediately notify
             5454      the department of any change in:
             5455          (a) ownership of the beer retailer;
             5456          (b) for a corporate owner, the:
             5457          (i) corporate officers or directors; and
             5458          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             5459      corporation; or
             5460          (c) for a limited liability company:
             5461          (i) managers; or


             5462          (ii) members owning at least 20% of the limited liability company.
             5463          (4) An applicant need not meet the requirements of Subsections (1)(a), (b), (c), (d),
             5464      and (f) if the applicant is:
             5465          (a) a state agency; or
             5466          (b) a political subdivision of the state including:
             5467          (i) a county; or
             5468          (ii) a municipality.
             5469          (5) (a) Except as provided in Subsection (5)(c), only one state on-premise beer retailer
             5470      license is required for each building or resort facility owned or leased by the same applicant.
             5471          (b) Except as provided in Subsection (5)(c), separate licenses are not required for each
             5472      retail beer dispensing outlet located in the same building or on the same resort premises owned
             5473      or operated by the same applicant.
             5474          (c) (i) Subsections (5)(a) and (5)(b) apply only if all of the retail beer dispensing
             5475      outlets in the building or resort facility operate in the same manner.
             5476          (ii) If the condition described in Subsection (5)(c)(i) is not met:
             5477          (A) one state on-premise beer retailer tavern license is required for all outlets in the
             5478      same building or on the same resort premises that operate as a tavern; and
             5479          (B) one state on-premise beer retailer license is required for all outlets in the same
             5480      building or on the same resort premises that do not operate as a tavern.
             5481          Section 50. Section 32A-12-101 is amended to read:
             5482           32A-12-101. Applicability of Utah Criminal Code.
             5483          Except as otherwise provided, Title 76, Chapters 1, 2, 3, and 4[, the Utah Criminal
             5484      Code, relating to principles of construction, jurisdiction, venue, limitations of actions, multiple
             5485      prosecutions, double jeopardy, burdens of proof, definitions, principles of criminal
             5486      responsibility, punishments, and inchoate offenses apply to any criminal offense defined in
             5487      this title, except as otherwise provided], apply to the prosecution of a criminal offense defined
             5488      in this chapter or expressly identified as a criminal offense in this title.
             5489          Section 51. Section 32A-12-102 is amended to read:


             5490           32A-12-102. Special burdens of proof -- Inferences and presumptions.
             5491          (1) In [any] a prosecution of an offense defined in this title or in [any] a proceeding
             5492      brought to enforce this title:
             5493          (a) it is not necessary that the state or commission establish:
             5494          (i) the precise description or quantity of [the] an alcoholic [beverages] beverage or
             5495      alcoholic product; or [products or]
             5496          (ii) the precise consideration, if any, given or received for [the] an alcoholic
             5497      [beverages or products] beverage or alcoholic product;
             5498          (b) there is an inference, absent proof to the contrary, that [the] an alcoholic beverage
             5499      or alcoholic product in question is an alcoholic beverage or alcoholic product if the witness
             5500      describes it:
             5501          (i) as an alcoholic beverage or alcoholic product;
             5502          (ii) by a name that is commonly applied to an alcoholic beverage or alcoholic product;
             5503      or
             5504          (iii) as intoxicating;
             5505          (c) if it is alleged that an association or corporation has violated this title, the fact of
             5506      the incorporation of the association or corporation is presumed absent proof to the contrary;
             5507          (d) a certificate or report signed or purporting to be signed by any state chemist,
             5508      assistant state chemist, or state crime laboratory chemist, as to the analysis or ingredients of
             5509      [any] an alcoholic beverage or alcoholic product is:
             5510          (i) prima facie evidence:
             5511          (A) of the facts stated in that certificate or report; and
             5512          (B) of the authority of the person giving or making the report; and
             5513          (ii) admissible in evidence without any proof of appointment or signature absent proof
             5514      to the contrary; and
             5515          (e) a copy of entries made in the records of the United States internal revenue
             5516      collector, certified by the collector or a qualified notary public, showing the payment of the
             5517      United States internal revenue special tax for the manufacture or sale of an alcoholic


             5518      [beverages or products] beverage or alcoholic product is prima facie evidence of the
             5519      manufacture or sale by the party named in the entry within the period set forth in the record.
             5520          (2) (a) In proving the unlawful sale, disposal, gift, or purchase, gratuitous or otherwise,
             5521      or consumption of an alcoholic [beverages or products] beverage or alcoholic product, it is not
             5522      necessary that the state or commission establish that any money or other consideration actually
             5523      passed or that an alcoholic beverage or alcoholic product was actually consumed if the court or
             5524      trier of fact is satisfied that:
             5525          (i) a transaction in the nature of a sale, disposal, gift, or purchase actually occurred; or
             5526          (ii) [any] consumption of an alcoholic [beverages or products] beverage or alcoholic
             5527      product was about to occur.
             5528          (b) Proof of consumption or intended consumption of an alcoholic beverage or
             5529      alcoholic product on premises on which consumption is prohibited, by some person not
             5530      authorized to consume an alcoholic [beverages or products] beverage or alcoholic product on
             5531      those premises, is evidence that an alcoholic beverage or alcoholic product was sold or given
             5532      to or purchased by the person consuming, about to consume, or carrying away the alcoholic
             5533      beverage or alcoholic product as against the occupant of the premises.
             5534          (3) For purposes of a provision applicable under this chapter to a retail licensee or
             5535      officer, manager, employee, or agent of a retail licensee, the provision is applicable to a resort
             5536      licensee or a person operating under a sublicense of the resort licensee.
             5537          (4) Notwithstanding the other provisions of this chapter, a criminal offense identified
             5538      in this title as a criminal offense may not be enforced under this chapter if the criminal offense
             5539      relates to a violation:
             5540          (a) of a provision in this title related to intoxication or becoming intoxicated; and
             5541          (b) if the violation is first investigated by a law enforcement officer, as defined in
             5542      Section 53-13-103 , who has not received training regarding the requirements of this title
             5543      related to responsible alcoholic beverage sale or service.
             5544          Section 52. Section 32A-12-104 is amended to read:
             5545           32A-12-104. Violation of title a misdemeanor.


             5546          [Any person who violates this title]
             5547          (1) Unless otherwise provided in this title, a person is guilty of a class B
             5548      misdemeanor[, unless otherwise provided in this title.] if that person violates:
             5549          (a) this chapter; or
             5550          (b) a provision of this title that is expressly identified as a criminal offense.
             5551          (2) This section is not applicable to an adjudicative proceeding under Section
             5552      32A-1-119 , but only:
             5553          (a) makes a violation described in Subsection (1) a criminal offense; and
             5554          (b) establishes a penalty for a violation described in Subsection (1) that is prosecuted
             5555      criminally.
             5556          Section 53. Section 32A-12-209.5 is amended to read:
             5557           32A-12-209.5. Unlawful admittance or attempt to gain admittance by minor.
             5558          (1) It is unlawful for a minor to gain admittance or attempt to gain admittance to the
             5559      premises of:
             5560          (a) a tavern; or
             5561          (b) a [class D private club] social club licensee, except to the extent authorized by
             5562      Subsection 32A-5-107 [(8)](2)(d).
             5563          (2) A minor who violates this section is guilty of a class C misdemeanor.
             5564          (3) When a minor who is at least 18 years old, but younger than 21 years old, is found
             5565      by a court to have violated this section:
             5566          (a) if the violation is the minor's first violation of this section, the court may suspend
             5567      the minor's driving privileges; or
             5568          (b) if the violation is the minor's second or subsequent violation of this section, the
             5569      court shall suspend the minor's driving privileges.
             5570          (4) When a minor who is at least 13 years old, but younger than 18 years old, is found
             5571      by a court to have violated this section, [the provisions regarding suspension of the driver's
             5572      license under] Section 78A-6-606 [apply] applies to the violation.
             5573          (5) When the court issues an order suspending a person's driving privileges for a


             5574      violation of this section, the Driver License Division shall suspend the person's license under
             5575      Section 53-3-219 .
             5576          (6) When the Department of Public Safety receives the arrest or conviction record of a
             5577      person for a driving offense committed while the person's license is suspended pursuant to this
             5578      section, the [department] Department of Public Safety shall extend the suspension for an
             5579      additional like period of time.
             5580          Section 54. Section 32A-12-212 is amended to read:
             5581           32A-12-212. Unlawful possession -- Exceptions.
             5582          (1) A person may not have or possess within this state [any] liquor unless authorized
             5583      by this title or the rules of the commission, except that:
             5584          (a) a person who clears United States Customs when entering this country may have or
             5585      possess for personal consumption and not for sale or resale, a maximum of two liters of liquor
             5586      purchased from without the United States;
             5587          (b) a person who moves the person's residence to this state from outside of this state
             5588      may have or possess for personal consumption and not for sale or resale, liquor previously
             5589      purchased outside the state and brought into this state during the move, if:
             5590          (i) the person [first] obtains department approval before moving the liquor into the
             5591      state; and
             5592          [(ii) the department affixes the official state label to the liquor; and]
             5593          [(iii)] (ii) the person pays the department a reasonable administrative handling fee as
             5594      determined by the commission;
             5595          (c) a person who as a beneficiary inherits as part of an estate liquor that is located
             5596      outside the state, may have or possess the liquor and transport or cause the liquor to be
             5597      transported into the state if:
             5598          (i) the person [first] obtains department approval before moving the liquor into the
             5599      state;
             5600          (ii) the person provides sufficient documentation to the department to establish the
             5601      person's legal right to the liquor as a beneficiary; and


             5602          [(iii) the department affixes the official state label to the liquor; and]
             5603          [(iv)] (iii) the person pays the department a reasonable administrative handling fee as
             5604      determined by the commission; or
             5605          (d) a person may transport, have, or possess liquor if:
             5606          (i) the person transports, has, or possesses the liquor:
             5607          (A) for personal household use and consumption; and
             5608          (B) not for:
             5609          (I) sale;
             5610          (II) resale;
             5611          (III) gifting to another; or
             5612          (IV) consumption on a premise licensed by the commission;
             5613          (ii) the liquor is purchased from a store or outlet on a military installation; and
             5614          (iii) the maximum amount the person transports, has, or possesses under this
             5615      Subsection (1)(d) is:
             5616          (A) two liters of:
             5617          (I) spirituous liquor;
             5618          (II) wine; or
             5619          (III) a combination of spirituous liquor and wine; and
             5620          (B) (I) one case of heavy beer that does not exceed 288 ounces; or
             5621          (II) [on or after October 1, 2008,] one case of a flavored malt beverage that does not
             5622      exceed 288 ounces.
             5623          (2) (a) Approval under Subsection (1)(b) may be obtained by a person who:
             5624          (i) is transferring the person's permanent residence to this state; or
             5625          (ii) maintains separate residences both in and out of this state.
             5626          (b) A person may not obtain approval to transfer liquor under Subsection (1)(b) more
             5627      than once.
             5628          Section 55. Section 32A-12-213 is amended to read:
             5629           32A-12-213. Unlawful bringing onto premises for consumption.


             5630          (1) Except as provided in Subsection (3), a person may not bring for on-premise
             5631      consumption [any] an alcoholic beverage onto the premises of [any]:
             5632          (a) a licensed or unlicensed restaurant;
             5633          (b) a licensed or unlicensed [private] club;
             5634          (c) an airport lounge licensee;
             5635          (d) an on-premise banquet licensee;
             5636          (e) an on-premise beer retailer licensee;
             5637          (f) a resort licensee;
             5638          (g) a sublicense of a resort licensee;
             5639          [(f)] (h) an event where an alcoholic [beverages are] beverage is sold or served under a
             5640      single event permit or temporary special event beer permit issued under this title; or
             5641          [(g)] (i) any establishment open to the general public.
             5642          (2) Except as provided in Subsection (3), [a licensed or unlicensed restaurant or
             5643      private club, airport lounge licensee, on-premise banquet licensee, on-premise beer retailer
             5644      licensee, or holder of a single event permit or temporary special event beer permit issued under
             5645      this title, or its officers, managers, employees, or agents] the following may not allow a person
             5646      to bring onto its premises [any] an alcoholic beverage for on-premise consumption or allow
             5647      consumption of [any such] an alcoholic beverage brought onto its premises in violation of this
             5648      section[.]:
             5649          (a) a licensed or unlicensed restaurant;
             5650          (b) a licensed or unlicensed club;
             5651          (c) an airport lounge licensee;
             5652          (d) an on-premise banquet licensee;
             5653          (e) a resort licensee in relationship to:
             5654          (i) the boundary of a resort building; or
             5655          (ii) a sublicense premises;
             5656          (f) a person operating a sublicense of a resort license;
             5657          (g) an on-premise beer retailer licensee;


             5658          (h) a holder of a single event permit or temporary special event beer permit issued
             5659      under this title; or
             5660          (i) an officer, manager, employee, or agent of a person listed in Subsections (2)(a)
             5661      through (h).
             5662          (3) (a) A person may bring bottled wine onto the premises of [any] a restaurant liquor
             5663      licensee, limited restaurant licensee, resort spa sublicense, or [private] club licensee and
             5664      consume the wine pursuant to the applicable restrictions contained in Subsection
             5665      32A-4-106 (14), 32A-4-307 (14), 32A-4a-305 (22), or 32A-5-107 [(31);] (18).
             5666          (b) [a] A passenger of a limousine may bring onto, have, and consume [any] an
             5667      alcoholic beverage on the limousine if:
             5668          (i) the travel of the limousine begins and ends at:
             5669          (A) the residence of the passenger;
             5670          (B) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
             5671          (C) the temporary domicile of the passenger; and
             5672          (ii) the driver of the limousine is separated from the passengers by partition or other
             5673      means approved by the department[;].
             5674          (c) [a] A passenger of a chartered bus may bring onto, have, and consume [any] an
             5675      alcoholic beverage on the chartered bus:
             5676          (i) (A) but may consume only during travel to a specified destination of the chartered
             5677      bus and not during travel back to the place where the travel begins; or
             5678          (B) if the travel of the chartered bus begins and ends at:
             5679          (I) the residence of the passenger;
             5680          (II) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
             5681          (III) the temporary domicile of the passenger; and
             5682          (ii) the chartered bus has a nondrinking designee other than the driver traveling on the
             5683      chartered bus to monitor consumption[; and].
             5684          (d) [a] A person may bring onto any premises, have, and consume [any] an alcoholic
             5685      beverage at a privately hosted event that is not open to the general public.


             5686          (4) Except as provided in Subsection (3)(c)(i)(A), the consumption of an alcoholic
             5687      [beverages in limousines and chartered buses] beverage in a limousine or chartered bus is not
             5688      allowed if the limousine or chartered bus drops off [passengers at locations from which they
             5689      depart in private vehicles] a passenger at a location from which the passenger departs in a
             5690      private vehicle.
             5691          Section 56. Section 32A-12-219 is amended to read:
             5692           32A-12-219. Unlawful adulteration -- Licensing tampering.
             5693          (1) For purposes of this section, "tamper" means to do one or more of the following to
             5694      the contents of a package:
             5695          (a) fortify;
             5696          (b) adulterate;
             5697          (c) contaminate;
             5698          (d) dilute;
             5699          (e) change its character or purity; or
             5700          (f) otherwise change.
             5701          (2) A person may not, for any purpose, mix or allow to be mixed [any drug, methylic
             5702      alcohol, any crude, unrectified, or impure form of ethylic alcohol, or any other deleterious
             5703      substance or liquid] with an alcoholic beverage sold or supplied by the person as a beverage[.]
             5704      any of the following:
             5705          (a) a drug;
             5706          (b) methylic alcohol;
             5707          (c) a crude, unrectified, or impure form of ethylic alcohol; or
             5708          (d) another deleterious substance.
             5709          (3) (a) The following may not engage in an act listed in Subsection (3)(b):
             5710          (i) a retail licensee;
             5711          (ii) a permittee;
             5712          (iii) a package agent;
             5713          (iv) a beer wholesaler;


             5714          (v) a supplier;
             5715          (vi) an importer; or
             5716          (vii) a warehouser.
             5717          (b) A person listed in Subsection (3)(a) may not:
             5718          (i) tamper with the contents of a package of alcoholic beverage as originally marketed
             5719      by a manufacturer;
             5720          (ii) refill or partly refill with any substance the contents of an original package of
             5721      alcoholic beverage as originally marketed by a manufacturer;
             5722          (iii) misrepresent the brand of an alcoholic beverage sold or offered for sale; or
             5723          (iv) sell or serve a brand of alcoholic beverage that is not the same as that ordered by a
             5724      purchaser without first advising the purchaser of the difference.
             5725          Section 57. Section 32A-12-222 is amended to read:
             5726           32A-12-222. Unlawful dispensing.
             5727          (1) For purposes of this section:
             5728          (a) "primary spirituous liquor" means the main distilled spirit in a beverage; and
             5729          (b) "primary spirituous liquor" does not include a secondary alcoholic product used as
             5730      a flavoring in conjunction with the primary distilled spirit in the beverage.
             5731          (2) A licensee licensed under this title to sell, serve, or otherwise furnish spirituous
             5732      liquor for consumption on the licensed premises, or an officer, manager, employee, or agent of
             5733      the licensee may not:
             5734          (a) sell, serve, dispense, or otherwise furnish a primary spirituous liquor to a person on
             5735      the licensed premises except in a quantity that does not exceed 1.5 ounces per beverage
             5736      dispensed through a calibrated metered dispensing system approved by the department;
             5737          (b) sell, serve, dispense, or otherwise furnish more than a total of 2.5 ounces of
             5738      spirituous liquor per beverage;
             5739          (c) allow [any] a person on the licensed premises to have more than a total of 2.5
             5740      ounces of spirituous liquor at a time;
             5741          (d) allow [any] a person on the premises of the following to have more than one


             5742      spirituous liquor beverage at a time:
             5743          (i) a restaurant liquor licensee;
             5744          (ii) an on-premise banquet licensee; [or]
             5745          (iii) one of the following sublicenses of a resort license:
             5746          (A) a restaurant sublicense; or
             5747          (B) a limited restaurant sublicense; or
             5748          [(iii)] (iv) a single event permittee; or
             5749          (e) allow [any] a person to have more than two spirituous liquor beverages at a time in
             5750      violation of:
             5751          (i) Subsection 32A-4-206 (2)(d); [or]
             5752          (ii) Subsection 32A-4a-305 (10)(c)(ii); or
             5753          [(ii)] (iii) Subsection 32A-5-107 [(20)](7)(d).
             5754          (3) A violation of this section is a class C misdemeanor.
             5755          Section 58. Section 32A-12-301 is amended to read:
             5756           32A-12-301. Operating without a license or permit.
             5757          (1) (a) A person may not operate the following businesses without first obtaining a
             5758      license under this title if the business allows a [patron, customer, member, guest, visitor, or
             5759      other person] person described in Subsection (1)(b) to purchase or consume an alcoholic
             5760      beverage on the premises of the business:
             5761          [(a)] (i) a restaurant;
             5762          [(b)] (ii) an airport lounge;
             5763          [(c)] (iii) a [private] club license;
             5764          (iv) a resort;
             5765          [(d)] (v) an on-premise beer retailer outlet;
             5766          [(e)] (vi) on-premise banquet premises; or
             5767          [(f)] (vii) a business similar to one listed in Subsections (1)(a)(i) through [(e)] (vi).
             5768          (b) Subsection (1)(a) applies if one of the following is allowed to purchase or consume
             5769      an alcoholic beverage on the premises of the business:


             5770          (i) a patron;
             5771          (ii) a customer;
             5772          (iii) a member;
             5773          (iv) a guest;
             5774          (v) a resident of a resort;
             5775          (vi) a holder of a customer card under Chapter 4a, Part 3, Resort Spa Sublicense; or
             5776          (vii) an invitee.
             5777          (2) A person conducting an event or function that is open to the general public may
             5778      not directly or indirectly sell, offer to sell, or otherwise furnish an alcoholic beverage to a
             5779      person attending the event or function without first obtaining a permit under this title.
             5780          (3) A person conducting a privately hosted event or private social function may not
             5781      directly or indirectly sell or offer to sell an alcoholic beverage to a person attending the
             5782      privately hosted event or private social function without first obtaining a permit under this
             5783      title.
             5784          (4) A person may not operate the following businesses without first obtaining a license
             5785      under this title:
             5786          (a) a winery manufacturer;
             5787          (b) a distillery manufacturer;
             5788          (c) a brewery manufacturer;
             5789          (d) a local industry representative of:
             5790          (i) a manufacturer of an alcoholic beverage;
             5791          (ii) a supplier of an alcoholic beverage; or
             5792          (iii) an importer of an alcoholic beverage;
             5793          (e) a liquor warehouser; or
             5794          (f) a beer wholesaler.
             5795          (5) A person may not operate a public conveyance in this state without first obtaining
             5796      a public service permit under this title if that public conveyance allows a person to purchase or
             5797      consume an alcoholic beverage or alcoholic product:


             5798          (a) on the public conveyance; or
             5799          (b) on the premises of a hospitality room located with a depot, terminal, or similar
             5800      facility at which a service is provided to a patron of the public conveyance.
             5801          Section 59. Section 32A-14a-102 is amended to read:
             5802           32A-14a-102. Liability for injuries and damage resulting from distribution of
             5803      alcoholic beverages -- Causes of action -- Statute of limitations -- Employee protections.
             5804          (1) (a) Except as provided in Section 32A-14a-103 , a person described in Subsection
             5805      (1)(b) is liable for:
             5806          (i) any and all injury and damage, except punitive damages to:
             5807          (A) any third person; or
             5808          (B) the heir, as defined in Section 78B-3-105 , of that third person; or
             5809          (ii) for the death of a third person.
             5810          (b) A person is liable under Subsection (1)(a) if:
             5811          (i) the person directly gives, sells, or otherwise provides an alcoholic beverage:
             5812          (A) to a person described in Subsection (1)(b)(ii); and
             5813          (B) as part of the commercial sale, storage, service, manufacture, distribution, or
             5814      consumption of alcoholic products;
             5815          (ii) those actions cause the intoxication of:
             5816          (A) any individual under the age of 21 years;
             5817          (B) any individual who is apparently under the influence of intoxicating alcoholic
             5818      products or drugs;
             5819          (C) any individual whom the person furnishing the alcoholic beverage knew or should
             5820      have known from the circumstances was under the influence of intoxicating alcoholic
             5821      beverages or products or drugs; or
             5822          (D) any individual who is a known interdicted person; and
             5823          (iii) the injury or death described in Subsection (1)(a) results from the intoxication of
             5824      the individual who is provided the alcoholic beverage.
             5825          (2) (a) A person 21 years of age or older who is described in Subsection (2)(b) is liable


             5826      for:
             5827          (i) any and all injury and damage, except punitive damages to:
             5828          (A) any third person; or
             5829          (B) the heir, as defined in Section 78B-3-105 , of that third person; or
             5830          (ii) for the death of the third person.
             5831          (b) A person is liable under Subsection (2)(a) if:
             5832          (i) that person directly gives or otherwise provides an alcoholic beverage to an
             5833      individual who the person knows or should have known is under the age of 21 years;
             5834          (ii) those actions caused the intoxication of the individual provided the alcoholic
             5835      beverage;
             5836          (iii) the injury or death described in Subsection (2)(a) results from the intoxication of
             5837      the individual who is provided the alcoholic beverage; and
             5838          (iv) the person is not liable under Subsection (1), because the person did not directly
             5839      give or provide the alcoholic beverage as part of the commercial sale, storage, service,
             5840      manufacture, distribution, or consumption of alcoholic products.
             5841          (3) Except for a violation of Subsection (2), an employer is liable for the actions of its
             5842      employees in violation of this chapter.
             5843          (4) A person who suffers an injury under Subsection (1) or (2) has a cause of action
             5844      against the person who provided the alcoholic beverage in violation of Subsection (1) or (2).
             5845          (5) If a person having rights or liabilities under this chapter dies, the rights or
             5846      liabilities provided by this chapter survive to or against that person's estate.
             5847          (6) The total amount that may be awarded to any person pursuant to a cause of action
             5848      for injury and damage under this chapter that arises after [January 1, 1998] January 1, 2010, is
             5849      limited to [$500,000] $1,000,000 and the aggregate amount which may be awarded to all
             5850      persons injured as a result of one occurrence is limited to [$1,000,000] $2,000,000.
             5851          (7) An action based upon a cause of action under this chapter shall be commenced
             5852      within two years after the date of the injury and damage.
             5853          (8) (a) Nothing in this chapter precludes any cause of action or additional recovery


             5854      against the person causing the injury.
             5855          (b) Any cause of action or additional recovery against the person causing the injury
             5856      and damage, which action is not brought under this chapter, is exempt from the damage cap in
             5857      Subsection (6).
             5858          (c) Any cause of action brought under this chapter is exempt from Sections 78B-5-817
             5859      through 78B-5-823 .
             5860          (9) This section does not apply to a business licensed under Chapter 10, Part 1,
             5861      General Provisions, to sell beer at retail only for off-premise consumption.
             5862          Section 60. Section 32A-14a-103 is amended to read:
             5863           32A-14a-103. Employee protected in exercising judgment.
             5864          (1) An employer may not sanction or terminate the employment of an employee of a
             5865      restaurant, airport lounge, [private] on-premise banquet licensee, resort, club licensee,
             5866      on-premise beer retailer, or any other establishment serving an alcoholic [beverages] beverage
             5867      as a result of the employee having exercised the employee's independent judgment to refuse to
             5868      sell an alcoholic [beverages] beverage to [any] a person the employee considers to meet one or
             5869      more of the conditions described in Subsection 32A-14a-102 (1).
             5870          (2) [Any] An employer who terminates an employee or imposes sanctions on the
             5871      employee contrary to this section is considered to have discriminated against that employee
             5872      and is subject to the conditions and penalties set forth in Title 34A, Chapter 5, Utah
             5873      Antidiscrimination Act.
             5874          Section 61. Section 53-10-305 is amended to read:
             5875           53-10-305. Duties of bureau chief.
             5876          The bureau chief, with the consent of the commissioner, shall do the following:
             5877          (1) conduct in conjunction with the state boards of education and higher education in
             5878      state schools, colleges, and universities, an educational program concerning alcoholic
             5879      products, and work in conjunction with civic organizations, churches, local units of
             5880      government, and other organizations in the prevention of alcoholic product and drug
             5881      violations;


             5882          (2) coordinate law enforcement programs throughout the state and accumulate and
             5883      disseminate information related to the prevention, detection, and control of violations of this
             5884      chapter and Title 32A, Alcoholic Beverage Control Act, as it relates to storage or consumption
             5885      of alcoholic beverages on premises maintained by [social clubs, recreational, athletic, and
             5886      kindred associations] a club licensee, or a person required to be licensed as a club licensee, as
             5887      defined in Section 32A-1-105 ;
             5888          (3) make inspections and investigations as required by the commission and the
             5889      Department of Alcoholic Beverage Control;
             5890          (4) perform other acts as may be necessary or appropriate concerning control of the
             5891      use of alcoholic beverages and products and drugs; and
             5892          (5) make reports and recommendations to the Legislature, the governor, the
             5893      commissioner, the commission, and the Department of Alcoholic Beverage Control as may be
             5894      required or requested.
             5895          Section 62. Repealer.
             5896          This bill repeals:
             5897          Section 32A-12-218, Unlawful labeling or lack of label.
             5898          Section 63. Study of penalties for violations related to minors.
             5899          (1) As used in this section:
             5900          (a) "Commission" means the Alcoholic Beverage Commission created in Section
             5901      32A-1-106 .
             5902          (b) "Violation related to a minor" means a violation under Title 32A, Alcoholic
             5903      Beverage Control Act, that is, in whole or in part, based on a licensee, permittee, or an
             5904      employee or agent of the licensee or permittee:
             5905          (i) selling, serving, or otherwise furnishing an alcoholic product to a minor;
             5906          (ii) purchasing or otherwise obtaining an alcoholic product for a minor;
             5907          (iii) permitting a minor to consume an alcoholic product;
             5908          (iv) permitting a minor to gain admittance to an area into which a minor is not
             5909      permitted under Title 32A, Alcoholic Beverage Control Act; or


             5910          (v) offering or providing employment to a minor that under Title 32A, Alcoholic
             5911      Beverage Control Act, may not be obtained by a minor.
             5912          (2) (a) The commission shall review the penalties imposed by the commission for a
             5913      violation related to a minor beginning on January 1, 2005 and ending December 31, 2008.
             5914          (b) The commission shall address in its review the following:
             5915          (i) trends, if any, in the severity of the penalties;
             5916          (ii) circumstances affecting the penalties imposed;
             5917          (iii) the purpose and effectiveness of the penalties;
             5918          (iv) other issues as determined by the commission; and
             5919          (v) whether the commission should recommend legislative action related to the
             5920      imposition of a penalty.
             5921          (c) The commission shall report its findings and recommendations described in
             5922      Subsection (2)(b) to the Business and Labor Interim Committee on or before the October 2009
             5923      interim meeting.
             5924          Section 64. Effective date.
             5925          (1) This bill takes effect on May 12, 2009 except:
             5926          (a) the amendments in this bill to the following take effect on July 1, 2009:
             5927          (i) Section 32A-5-101 ;
             5928          (ii) Section 32A-5-102 , except for Subsection 32A-5-102 (1)(j);
             5929          (iii) Section 32A-5-103 (Effective 07/01/09);
             5930          (iv) Section 32A-5-104 ;
             5931          (v) Section 32A-5-106 ;
             5932          (vi) Section 32A-5-107 ;
             5933          (vii) Section 11-10-1 ;
             5934          (viii) Section 26-38-2 ;
             5935          (ix) Section 26-38-3 ;
             5936          (x) Subsections 32A-1-105 (12), (23), (35), and the existing (64) that defines a
             5937      "visitor";


             5938          (xi) Section 32A-1-304.5 ;
             5939          (xii) Section 32A-1-603 ;
             5940          (xiii) Section 32A-12-209.5 ; and
             5941          (xiv) Section 53-10-305 ;
             5942          (b) the amendments in this bill to the following take effect on January 1, 2010:
             5943          (i) Section 32A-4-102 ;
             5944          (ii) Section 32A-4-202 ;
             5945          (iii) Section 32A-4-303 ;
             5946          (iv) Section 32A-4-402 ;
             5947          (v) Section 32A-10-202 ; and
             5948          (vi) Section 32A-14a-102 ; and
             5949          (c) Subsection 32A-5-102 (1)(j) takes effect on July 1, 2010.
             5950          (2) During the 2009 interim, the Business and Labor Interim Committee shall:
             5951          (a) study whether or not a club licensee can reasonably obtain dramshop insurance
             5952      coverage of the amounts required by the amendments in this bill to Subsection
             5953      32A-5-102 (1)(j); and
             5954          (b) make a recommendation to the Legislature regarding any changes to Subsection
             5955      32A-5-102 (1)(j) for consideration during the 2010 General Session.
             5956          Section 65. Revisor instructions for S.B. 187.
             5957          If this S.B. 187 passes, it is the intent of the Legislature that the Office of Legislative
             5958      Research and General Counsel in preparing the Utah Code database that takes effect July 1,
             5959      2009, for publication replace "private club" or "private club licensee" with "club licensee" in
             5960      any new language added to the Utah Code by legislation passed during the 2009 General
             5961      Session, if the context of the terms clearly indicates that the terms "private club" or "private
             5962      club licensee" refer to a private club licensed under Title 32A, Chapter 5.


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