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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