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S.B. 168

             1     

ALCOHOLIC BEVERAGE CONTROL ACT -

             2     
HOURS RESTRICTIONS

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Scott D. McCoy

             6     
House Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10           This bill modifies the Alcoholic Beverage Control Act to address restrictions related to
             11      offering, selling, serving, furnishing, or consuming an alcoholic beverage.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies provisions related to hour restrictions and restaurant licensees;
             15          .    modifies provisions related to hour restrictions and limited restaurant licensees; and
             16          .    makes technical changes.
             17      Monies Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          32A-4-106, as last amended by Laws of Utah 2008, Chapters 266 and 391
             24          32A-4-307, as last amended by Laws of Utah 2008, Chapters 266 and 391
             25     
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 32A-4-106 is amended to read:


             28           32A-4-106. Operational restrictions.
             29          A person granted a restaurant liquor license and the employees and management
             30      personnel of the restaurant shall comply with the following conditions and requirements.
             31      Failure to comply may result in a suspension or revocation of the restaurant liquor license or
             32      other disciplinary action taken against individual employees or management personnel.
             33          (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from a state
             34      store or package agency.
             35          (b) Liquor purchased from a state store or package agency may be transported by the
             36      restaurant liquor licensee from the place of purchase to the licensed premises.
             37          (c) Payment for liquor shall be made in accordance with rules established by the
             38      commission.
             39          (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
             40      a quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated metered
             41      dispensing system approved by the department in accordance with commission rules adopted
             42      under this title, except that:
             43          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             44      system if used as a secondary flavoring ingredient in a beverage subject to the following
             45      restrictions:
             46          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             47      a primary spirituous liquor;
             48          (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
             49          (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
             50      on the floor plan provided to the department; and
             51          (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
             52          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             53      system if used:
             54          (i) as a flavoring on a dessert; and
             55          (ii) in the preparation of a flaming food dish, drink, or dessert;
             56          (c) a restaurant patron may have no more than 2.5 ounces of spirituous liquor at a time;
             57      and
             58          (d) a restaurant patron may have no more than one spirituous liquor drink at a time


             59      before the patron.
             60          (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
             61      exceed five ounces per glass or individual portion.
             62          (ii) An individual portion of wine may be served to a patron in more than one glass as
             63      long as the total amount of wine does not exceed five ounces.
             64          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             65      Subsection (7)(e).
             66          (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
             67      fixed by the commission to a table of four or more persons.
             68          (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
             69      fixed by the commission to a table of less than four persons.
             70          (c) A wine service may be performed and a service charge assessed by a restaurant
             71      liquor licensee as authorized by commission rule for wine purchased at the restaurant.
             72          (4) (a) Heavy beer may be served in an original container not exceeding one liter at a
             73      price fixed by the commission.
             74          (b) A flavored malt beverage may be served in an original container not exceeding one
             75      liter at a price fixed by the commission.
             76          (c) A service charge may be assessed by a restaurant liquor licensee as authorized by
             77      commission rule for heavy beer or a flavored malt beverage purchased at the restaurant.
             78          (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant liquor licensee may sell beer for
             79      on-premise consumption:
             80          (A) in an open container; and
             81          (B) on draft.
             82          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             83      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             84      container that exceeds one liter.
             85          (b) A restaurant liquor licensee that sells beer pursuant to Subsection (5)(a):
             86          (i) may do so without obtaining a separate on-premise beer retailer license from the
             87      commission; and
             88          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             89      Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are


             90      inconsistent with or less restrictive than the operational restrictions under this part.
             91          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             92      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             93      restaurant's:
             94          (i) state liquor license; and
             95          (ii) alcoholic beverage license issued by the local authority.
             96          (6) An alcoholic beverage may not be stored, served, or sold in a place other than as
             97      designated in the restaurant liquor licensee's application, unless the restaurant liquor licensee
             98      first applies for and receives approval from the department for a change of location within the
             99      restaurant.
             100          (7) (a) (i) A patron may only make an alcoholic beverage purchase in the restaurant
             101      from and be served by a person employed, designated, and trained by the restaurant liquor
             102      licensee to sell and serve an alcoholic beverage.
             103          (ii) Notwithstanding Subsection (7)(a)(i), a patron who purchases bottled wine from an
             104      employee of the restaurant or carries bottled wine onto the premises of the restaurant pursuant
             105      to Subsection (14) may thereafter serve wine from the bottle to the patron or others at the
             106      patron's table.
             107          (b) An alcoholic beverage shall be delivered by a server to the patron.
             108          (c) An alcoholic beverage may only be consumed at the patron's table or counter.
             109          (d) An alcoholic beverage may not be served to or consumed by a patron at a bar.
             110          (e) A restaurant patron may have no more than two alcoholic beverages of any kind at a
             111      time before the patron, subject to the limitation in Subsection (2)(d).
             112          (8) The liquor storage area shall remain locked at all times other than those hours and
             113      days when liquor sales are authorized by law.
             114          (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             115      restaurant of a restaurant liquor licensee on any day [after 12 midnight or before 12 noon]
             116      between the hours of 1 a.m. and 10 a.m.
             117          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             118      Licenses, for on-premise beer licensees.
             119          (10) An alcoholic beverage may not be sold except in connection with an order for
             120      food prepared, sold, and served at the restaurant.


             121          (11) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
             122          (a) minor;
             123          (b) person actually, apparently, or obviously intoxicated;
             124          (c) known habitual drunkard; or
             125          (d) known interdicted person.
             126          (12) (a) (i) Liquor may be sold only at a price fixed by the commission.
             127          (ii) Liquor may not be sold at a discount price on any date or at any time.
             128          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             129      beverage to the restaurant liquor licensee.
             130          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             131      over consumption or intoxication.
             132          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             133      hours of a restaurant liquor licensee's business day such as a "happy hour."
             134          (e) More than one alcoholic beverage may not be sold or served for the price of a single
             135      alcoholic beverage.
             136          (f) An indefinite or unlimited number of alcoholic beverages during a set period may
             137      not be sold or served for a fixed price.
             138          (g) A restaurant liquor licensee may not engage in a public promotion involving or
             139      offering free an alcoholic beverage to the general public.
             140          (13) An alcoholic beverage may not be purchased for a patron of a restaurant by:
             141          (a) the restaurant liquor licensee; or
             142          (b) an employee or agent of the restaurant liquor licensee.
             143          (14) (a) A person may not bring onto the premises of a restaurant liquor licensee an
             144      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             145      discretion of the restaurant liquor licensee, bottled wine onto the premises of a restaurant liquor
             146      licensee for on-premise consumption.
             147          (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or an
             148      officer, manager, employee, or agent of the restaurant liquor licensee may not allow:
             149          (i) a person to bring onto the restaurant premises an alcoholic beverage for on-premise
             150      consumption; or
             151          (ii) consumption of an alcoholic beverage described in this Subsection (14) on the


             152      restaurant liquor licensee's premises.
             153          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             154      or other representative of the restaurant liquor licensee upon entering the restaurant.
             155          (d) A wine service may be performed and a service charge assessed by a restaurant
             156      liquor licensee as authorized by commission rule for wine carried in by a patron.
             157          (15) (a) Except as provided in Subsection (15)(b), a restaurant liquor licensee or an
             158      employee of the restaurant liquor licensee may not permit a restaurant patron to carry from the
             159      restaurant premises an open container that:
             160          (i) is used primarily for drinking purposes; and
             161          (ii) contains an alcoholic beverage.
             162          (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
             163      restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
             164      onto the premises of the restaurant in accordance with Subsection (14), only if the bottle is
             165      recorked or recapped before removal.
             166          (16) (a) A restaurant liquor licensee may not employ a minor to sell or dispense an
             167      alcoholic beverage.
             168          (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
             169      employed to enter the sale at a cash register or other sales recording device.
             170          (17) An employee of a restaurant liquor licensee, while on duty, may not:
             171          (a) consume an alcoholic beverage; or
             172          (b) be intoxicated.
             173          (18) A charge or fee made in connection with the sale, service, or consumption of
             174      liquor may be stated in food or alcoholic beverage menus including:
             175          (a) a set-up charge;
             176          (b) a service charge; or
             177          (c) a chilling fee.
             178          (19) A restaurant liquor licensee shall display in a prominent place in the restaurant:
             179          (a) the liquor license that is issued by the department;
             180          (b) a list of the types and brand names of liquor being served through its calibrated
             181      metered dispensing system; and
             182          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or


             183      drugs is a serious crime that is prosecuted aggressively in Utah."
             184          (20) A restaurant liquor licensee may not on the premises of the restaurant liquor
             185      licensee:
             186          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             187      Chapter 10, Part 11, Gambling;
             188          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             189      Part 11, Gambling; or
             190          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             191      the risking of something of value for a return or for an outcome when the return or outcome is
             192      based upon an element of chance, excluding the playing of an amusement device that confers
             193      only an immediate and unrecorded right of replay not exchangeable for value.
             194          (21) (a) A restaurant liquor licensee shall maintain an expense ledger or record
             195      showing in detail:
             196          (i) quarterly expenditures made separately for:
             197          (A) malt or brewed beverages;
             198          (B) set-ups;
             199          (C) liquor;
             200          (D) food; and
             201          (E) all other items required by the department; and
             202          (ii) sales made separately for:
             203          (A) malt or brewed beverages;
             204          (B) set-ups;
             205          (C) food; and
             206          (D) all other items required by the department.
             207          (b) A restaurant liquor licensee shall keep a record required by Subsection (21)(a):
             208          (i) in a form approved by the department; and
             209          (ii) current for each three-month period.
             210          (c) An expenditure shall be supported by:
             211          (i) a delivery ticket;
             212          (ii) an invoice;
             213          (iii) a receipted bill;


             214          (iv) a canceled check;
             215          (v) a petty cash voucher; or
             216          (vi) other sustaining datum or memorandum.
             217          (d) In addition to a ledger or record required under Subsection (21)(a), a restaurant
             218      liquor licensee shall maintain accounting and other records and documents as the department
             219      may require.
             220          (e) A restaurant liquor licensee or person acting for the restaurant, who knowingly
             221      forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
             222      other document of the restaurant that is required to be made, maintained, or preserved by this
             223      title or the rules of the commission for the purpose of deceiving the commission or the
             224      department, or an official or employee of the commission or department, is subject to:
             225          (i) the suspension or revocation of the restaurant's liquor license; and
             226          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             227          (22) (a) A restaurant liquor licensee may not close or cease operation for a period
             228      longer than 240 hours, unless:
             229          (i) the restaurant liquor licensee notifies the department in writing at least seven days
             230      before the day on which the restaurant liquor licensee closes or ceases operation; and
             231          (ii) the closure or cessation of operation is first approved by the department.
             232          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the
             233      restaurant liquor licensee shall immediately notify the department by telephone.
             234          (c) (i) The department may authorize a closure or cessation of operation for a period
             235      not to exceed 60 days.
             236          (ii) The department may extend the initial period an additional 30 days upon:
             237          (A) written request of the restaurant liquor licensee; and
             238          (B) a showing of good cause.
             239          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             240      commission approval.
             241          (d) A notice shall include:
             242          (i) the dates of closure or cessation of operation;
             243          (ii) the reason for the closure or cessation of operation; and
             244          (iii) the date on which the restaurant liquor licensee will reopen or resume operation.


             245          (e) Failure of the restaurant liquor licensee to provide notice and to obtain department
             246      authorization before closure or cessation of operation results in an automatic forfeiture of:
             247          (i) the license; and
             248          (ii) the unused portion of the license fee for the remainder of the license year effective
             249      immediately.
             250          (f) Failure of the restaurant liquor licensee to reopen or resume operation by the
             251      approved date results in an automatic forfeiture of:
             252          (i) the license; and
             253          (ii) the unused portion of the license fee for the remainder of the license year.
             254          (23) A restaurant liquor licensee shall maintain at least 70% of its total restaurant
             255      business from the sale of food, which does not include mix for an alcoholic beverage or service
             256      charges.
             257          (24) A restaurant liquor license may not be transferred from one location to another,
             258      without prior written approval of the commission.
             259          (25) (a) A person, having been granted a restaurant liquor license may not sell, transfer,
             260      assign, exchange, barter, give, or attempt in any way to dispose of the restaurant liquor license
             261      to another person whether for monetary gain or not.
             262          (b) A restaurant liquor license has no monetary value for the purpose of any type of
             263      disposition.
             264          (26) A server of an alcoholic beverage in a restaurant liquor licensee's establishment
             265      shall keep a written beverage tab for each table or group that orders or consumes an alcoholic
             266      beverage on the premises. The beverage tab shall list the type and amount of an alcoholic
             267      beverage ordered or consumed.
             268          (27) A person's willingness to serve an alcoholic beverage may not be made a
             269      condition of employment as a server with a restaurant that has a restaurant liquor license.
             270          (28) A restaurant liquor licensee or an employee of the restaurant liquor licensee may
             271      not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
             272      Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             273          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             274      58-37-2 ; or
             275          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in


             276      Section 58-37a-3 .
             277          Section 2. Section 32A-4-307 is amended to read:
             278           32A-4-307. Operational restrictions.
             279          A person granted a limited restaurant license and the employees and management
             280      personnel of the limited restaurant shall comply with the following conditions and
             281      requirements. Failure to comply may result in a suspension or revocation of the license or
             282      other disciplinary action taken against individual employees or management personnel.
             283          (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
             284      except from a state store or package agency.
             285          (b) Wine and heavy beer purchased from a state store or package agency may be
             286      transported by the limited restaurant licensee from the place of purchase to the licensed
             287      premises.
             288          (c) Payment for wine and heavy beer shall be made in accordance with rules
             289      established by the commission.
             290          (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of the
             291      products listed in Subsection (2)(c) on the premises of the limited restaurant.
             292          (b) A product listed in Subsection (2)(c) may not be on the premises of the limited
             293      restaurant except for use:
             294          (i) as a flavoring on a dessert; and
             295          (ii) in the preparation of a flaming food dish, drink, or dessert.
             296          (c) This Subsection (2) applies to:
             297          (i) spirituous liquor; and
             298          (ii) [on or after October 1, 2008,] a flavored malt beverage.
             299          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             300      exceed five ounces per glass or individual portion.
             301          (ii) An individual portion may be served to a patron in more than one glass as long as
             302      the total amount of wine does not exceed five ounces.
             303          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             304      Subsection (7)(e).
             305          (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
             306      fixed by the commission to a table of four or more persons.


             307          (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
             308      fixed by the commission to a table of less than four persons.
             309          (c) A wine service may be performed and a service charge assessed by the limited
             310      restaurant licensee as authorized by commission rule for wine purchased at the limited
             311      restaurant.
             312          (4) (a) Heavy beer may be served in an original container not exceeding one liter at a
             313      price fixed by the commission.
             314          (b) A service charge may be assessed by the limited restaurant licensee as authorized
             315      by commission rule for heavy beer purchased at the limited restaurant.
             316          (5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer for
             317      on-premise consumption:
             318          (A) in an open container; and
             319          (B) on draft.
             320          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             321      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             322      container that exceeds one liter.
             323          (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
             324          (i) may do so without obtaining a separate on-premise beer retailer license from the
             325      commission; and
             326          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             327      Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
             328      inconsistent with or less restrictive than the operational restrictions under this part.
             329          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             330      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the limited
             331      restaurant's:
             332          (i) limited restaurant license; and
             333          (ii) alcoholic beverage license issued by the local authority.
             334          (6) Wine, heavy beer, and beer may not be stored, served, or sold in a place other than
             335      as designated in the limited restaurant licensee's application, unless the limited restaurant
             336      licensee first applies for and receives approval from the department for a change of location
             337      within the limited restaurant.


             338          (7) (a) (i) A patron may only make an alcoholic beverage purchase in a limited
             339      restaurant from and be served by a person employed, designated, and trained by the limited
             340      restaurant licensee to sell and serve an alcoholic beverage.
             341          (ii) Notwithstanding Subsection (7)(a)(i), a patron who purchases bottled wine from an
             342      employee of the limited restaurant licensee or carries bottled wine onto the premises of the
             343      limited restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the
             344      patron or others at the patron's table.
             345          (b) An alcoholic beverage shall be delivered by a server to the patron.
             346          (c) An alcoholic beverage may only be consumed at the patron's table or counter.
             347          (d) An alcoholic beverage may not be served to or consumed by a patron at a bar.
             348          (e) A limited restaurant patron may have no more than two alcoholic beverages of any
             349      kind at a time before the patron.
             350          (8) The alcoholic beverage storage area shall remain locked at all times other than
             351      those hours and days when alcoholic beverage sales are authorized by law.
             352          (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
             353      furnished at a limited restaurant on any day [after 12 midnight or before 12 noon] between the
             354      hours of 1 a.m. and 10 a.m.
             355          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             356      Licenses, for on-premise beer licensees.
             357          (10) An alcoholic beverage may not be sold except in connection with an order of food
             358      prepared, sold, and served at the limited restaurant.
             359          (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to a:
             360          (a) minor;
             361          (b) person actually, apparently, or obviously intoxicated;
             362          (c) known habitual drunkard; or
             363          (d) known interdicted person.
             364          (12) (a) (i) Wine and heavy beer may be sold only at a price fixed by the commission.
             365          (ii) Wine and heavy beer may not be sold at a discount price on any date or at any time.
             366          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             367      beverage to the limited restaurant licensee.
             368          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages


             369      over consumption or intoxication.
             370          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             371      hours of the limited restaurant licensee's business day such as a "happy hour."
             372          (e) More than one alcoholic beverage may not be sold or served for the price of a single
             373      alcoholic beverage.
             374          (f) An indefinite or unlimited number of alcoholic beverages during a set period may
             375      not be sold or served for a fixed price.
             376          (g) A limited restaurant licensee may not engage in a public promotion involving or
             377      offering free alcoholic beverages to the general public.
             378          (13) An alcoholic beverage may not be purchased for a patron of the limited restaurant
             379      by:
             380          (a) the limited restaurant licensee; or
             381          (b) an employee or agent of the limited restaurant licensee.
             382          (14) (a) A person may not bring onto the premises of a limited restaurant licensee an
             383      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             384      discretion of the limited restaurant licensee, bottled wine onto the premises of a limited
             385      restaurant licensee for on-premise consumption.
             386          (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or an
             387      officer, manager, employee, or agent of a limited restaurant licensee may not allow:
             388          (i) a person to bring onto the limited restaurant premises an alcoholic beverage for
             389      on-premise consumption; or
             390          (ii) consumption of an alcoholic beverage described in Subsection (14)(b)(i) on the
             391      limited restaurant licensee's premises.
             392          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             393      or other representative of the limited restaurant licensee upon entering the limited restaurant.
             394          (d) A wine service may be performed and a service charge assessed by the limited
             395      restaurant licensee as authorized by commission rule for wine carried in by a patron.
             396          (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and an
             397      employee of the limited restaurant licensee may not permit a restaurant patron to carry from the
             398      limited restaurant premises an open container that:
             399          (i) is used primarily for drinking purposes; and


             400          (ii) contains an alcoholic beverage.
             401          (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
             402      contents of a bottle of wine if before removal, the bottle is recorked or recapped.
             403          (16) (a) A limited restaurant licensee may not employ a minor to sell or dispense an
             404      alcoholic beverage.
             405          (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
             406      employed to enter the sale at a cash register or other sales recording device.
             407          (17) An employee of a limited restaurant licensee, while on duty, may not:
             408          (a) consume an alcoholic beverage; or
             409          (b) be intoxicated.
             410          (18) A charge or fee made in connection with the sale, service, or consumption of wine
             411      or heavy beer may be stated in food or alcoholic beverage menus including:
             412          (a) a service charge; or
             413          (b) a chilling fee.
             414          (19) A limited restaurant licensee shall display in a prominent place in the restaurant:
             415          (a) the limited restaurant license that is issued by the department; and
             416          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             417      drugs is a serious crime that is prosecuted aggressively in Utah."
             418          (20) A limited restaurant licensee may not on the premises of the restaurant:
             419          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             420      Chapter 10, Part 11, Gambling;
             421          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             422      Part 11, Gambling; or
             423          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             424      the risking of something of value for a return or for an outcome when the return or outcome is
             425      based upon an element of chance, excluding the playing of an amusement device that confers
             426      only an immediate and unrecorded right of replay not exchangeable for value.
             427          (21) (a) A limited restaurant licensee shall maintain an expense ledger or record
             428      showing in detail:
             429          (i) quarterly expenditures made separately for:
             430          (A) wine;


             431          (B) heavy beer;
             432          (C) beer;
             433          (D) food; and
             434          (E) all other items required by the department; and
             435          (ii) sales made separately for:
             436          (A) wine;
             437          (B) heavy beer;
             438          (C) beer;
             439          (D) food; and
             440          (E) all other items required by the department.
             441          (b) A limited restaurant licensee shall keep a record required by Subsection (21)(a):
             442          (i) in a form approved by the department; and
             443          (ii) current for each three-month period.
             444          (c) An expenditure shall be supported by:
             445          (i) a delivery ticket;
             446          (ii) an invoice;
             447          (iii) a receipted bill;
             448          (iv) a canceled check;
             449          (v) a petty cash voucher; or
             450          (vi) other sustaining datum or memorandum.
             451          (d) In addition to the ledger or record maintained under Subsections (21)(a) through
             452      (c), a limited restaurant licensee shall maintain accounting and other records and documents as
             453      the department may require.
             454          (e) Any limited restaurant licensee or person acting for the restaurant, who knowingly
             455      forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
             456      other document of the limited restaurant that is required to be made, maintained, or preserved
             457      by this title or the rules of the commission for the purpose of deceiving the commission, the
             458      department, or an official or employee of the commission or department, is subject to:
             459          (i) the suspension or revocation of the limited restaurant's license; and
             460          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             461          (22) (a) A limited restaurant licensee may not close or cease operation for a period


             462      longer than 240 hours, unless:
             463          (i) the limited restaurant licensee notifies the department in writing at least seven days
             464      before the day on which the limited restaurant licensee closes or ceases operation; and
             465          (ii) the closure or cessation of operation is first approved by the department.
             466          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the limited
             467      restaurant licensee shall immediately notify the department by telephone.
             468          (c) (i) Subject to Subsection (22)(c)(iii), the department may authorize a closure or
             469      cessation of operation for a period not to exceed 60 days.
             470          (ii) The department may extend the initial period an additional 30 days upon:
             471          (A) written request of the limited restaurant licensee; and
             472          (B) a showing of good cause.
             473          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             474      commission approval.
             475          (d) A notice required by Subsection (22)(a) shall include:
             476          (i) the dates of closure or cessation of operation;
             477          (ii) the reason for the closure or cessation of operation; and
             478          (iii) the date on which the limited restaurant licensee will reopen or resume operation.
             479          (e) Failure of the limited restaurant licensee to provide notice and to obtain department
             480      authorization before closure or cessation of operation results in an automatic forfeiture of:
             481          (i) the limited restaurant license; and
             482          (ii) the unused portion of the license fee for the remainder of the license year effective
             483      immediately.
             484          (f) Failure of the limited restaurant licensee to reopen or resume operation by the
             485      approved date results in an automatic forfeiture of:
             486          (i) the limited restaurant license; and
             487          (ii) the unused portion of the license fee for the remainder of the license year.
             488          (23) A limited restaurant licensee shall maintain at least 70% of its total restaurant
             489      business from the sale of food, which does not include service charges.
             490          (24) A limited restaurant license may not be transferred from one location to another,
             491      without prior written approval of the commission.
             492          (25) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,


             493      give, or attempt in any way to dispose of the limited restaurant license to another person
             494      whether for monetary gain or not.
             495          (b) A limited restaurant license has no monetary value for the purpose of any type of
             496      disposition.
             497          (26) (a) A server of wine, heavy beer, and beer in a limited restaurant licensee's
             498      establishment shall keep a written beverage tab for each table or group that orders or consumes
             499      an alcoholic beverage on the premises.
             500          (b) The beverage tab required by Subsection (26)(a) shall list the type and amount of an
             501      alcoholic beverage ordered or consumed.
             502          (27) A limited restaurant licensee may not make a person's willingness to serve an
             503      alcoholic beverage a condition of employment as a server with the limited restaurant.
             504          (28) A limited restaurant licensee or an employee of the limited restaurant licensee may
             505      not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
             506      Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             507          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             508      58-37-2 ; or
             509          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             510      Section 58-37a-3 .




Legislative Review Note
    as of 2-4-09 11:54 AM


Office of Legislative Research and General Counsel


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