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First Substitute S.B. 187

Senator John L. Valentine proposes the following substitute bill:


             1     
ALCOHOL AMENDMENTS

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: John L. Valentine

             5     
House Sponsor: Gregory H. Hughes

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Alcoholic Beverage Control Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    amends definitional provisions;
             13          .    removes requirements related to state labels and markings;
             14          .    prohibits tampering with a package of an alcoholic beverage;
             15          .    addresses the nature of an adjudicative proceeding as a civil action including the
             16      burden of proof and the general applicability of mens rea requirements;
             17          .    makes procedural clarifications for administrative actions;
             18          .    provides for electronic verification of proof of age by certain club licensees;
             19          .    removes restrictions related to election days;
             20          .    addresses quotas;
             21          .    addresses proximity for a restaurant liquor or limited restaurant license;
             22          .    addresses dispensing, storage, and bar structures for a restaurant;
             23          .    changes the insurance and liability limits related to dramshop;
             24          .    modifies the definition of a "convention center" and provides for limited
             25      grandfathering;


             26          .    creates a resort license including:
             27              .    defining terms;
             28              .    providing for licensing, including the creation of sublicenses;
             29              .    establishing a resort spa sublicense;
             30              .    imposing operational requirements for a resort license;
             31              .    addressing the application of operational requirements to a sublicense;
             32              .    providing for enforcement with relation to a resort license or a sublicense;
             33              .    addressing the application of the Nuisance Licensee Act to a resort license or
             34      sublicense;
             35              .    providing for the enforcement of criminal penalties; and
             36              .    expanding protections for employees to encompass employees of a resort
             37      licensee;
             38          .    establishes requirements for renting or leasing a club license premises;
             39          .    clarifies the application of criminal procedures, principles, and penalties;
             40          .    addresses training requirements for law enforcement officers;
             41          .    expands licenses subject to protections for employees who exercise judgment;
             42          .    provides for a study of penalties related to minors; and
             43          .    makes technical and conforming changes.
             44      Monies Appropriated in this Bill:
             45          None
             46      Other Special Clauses:
             47          This bill provides an effective date.
             48          This bill provides revisor instructions.
             49          This bill coordinates with H.B. 349, Heavy Beer Amendments, to merge substantive
             50      amendments.
             51      Utah Code Sections Affected:
             52      AMENDS:
             53          11-10-1, as last amended by Laws of Utah 1990, Chapter 23
             54          26-38-2, as last amended by Laws of Utah 2006, Chapter 202
             55          26-38-3, as last amended by Laws of Utah 2007, Chapter 20
             56          32A-1-105, as last amended by Laws of Utah 2008, Chapters 317, 322, and 391


             57          32A-1-107, as last amended by Laws of Utah 2006, Chapter 162
             58          32A-1-109, as last amended by Laws of Utah 2003, Chapter 314
             59          32A-1-115, as last amended by Laws of Utah 2008, Chapter 382
             60          32A-1-119, as last amended by Laws of Utah 2008, Chapters 317, 382, and 391
             61          32A-1-119.5, as enacted by Laws of Utah 2008, Chapter 317
             62          32A-1-603, as last amended by Laws of Utah 2008, Chapter 382
             63          32A-2-103, as last amended by Laws of Utah 2007, Chapter 329
             64          32A-3-106, as last amended by Laws of Utah 2008, Chapter 266
             65          32A-4-101, as last amended by Laws of Utah 2008, Chapter 391
             66          32A-4-102, as last amended by Laws of Utah 2008, Chapter 391
             67          32A-4-106, as last amended by Laws of Utah 2008, Chapters 266 and 391
             68          32A-4-202, as last amended by Laws of Utah 2004, Chapter 268
             69          32A-4-302, as last amended by Laws of Utah 2008, Chapter 391
             70          32A-4-303, as last amended by Laws of Utah 2008, Chapter 391
             71          32A-4-307, as last amended by Laws of Utah 2008, Chapters 266 and 391
             72          32A-4-401, as last amended by Laws of Utah 2008, Chapter 391
             73          32A-4-402, as last amended by Laws of Utah 2008, Chapter 391
             74          32A-5-101, as last amended by Laws of Utah 2008, Chapter 391
             75          32A-5-102, as last amended by Laws of Utah 2008, Chapter 391
             76          32A-5-103 (Effective 07/01/09), as last amended by Laws of Utah 2008, Chapters 26
             77      and 382
             78          32A-5-104, as last amended by Laws of Utah 2008, Chapter 391
             79          32A-5-106, as renumbered and amended by Laws of Utah 1990, Chapter 23
             80          32A-5-107, as last amended by Laws of Utah 2008, Chapters 266 and 391
             81          32A-9-103, as last amended by Laws of Utah 2008, Chapter 382
             82          32A-10-201, as last amended by Laws of Utah 2008, Chapter 391
             83          32A-10-202, as last amended by Laws of Utah 2008, Chapter 391
             84          32A-12-101, as renumbered and amended by Laws of Utah 1990, Chapter 23
             85          32A-12-102, as last amended by Laws of Utah 2004, Chapter 268
             86          32A-12-104, as last amended by Laws of Utah 2007, Chapter 322
             87          32A-12-209.5, as last amended by Laws of Utah 2008, Chapter 3


             88          32A-12-212, as last amended by Laws of Utah 2008, Chapter 391
             89          32A-12-213, as last amended by Laws of Utah 2007, Chapter 284
             90          32A-12-219, as renumbered and amended by Laws of Utah 1990, Chapter 23
             91          32A-12-222, as last amended by Laws of Utah 2008, Chapter 391
             92          32A-12-301, as last amended by Laws of Utah 2008, Chapter 391
             93          32A-14a-102, as last amended by Laws of Utah 2008, Chapter 3
             94          32A-14a-103, as enacted by Laws of Utah 2000, Chapter 197
             95          53-10-305, as last amended by Laws of Utah 2000, Chapter 1
             96      ENACTS:
             97          32A-1-304.5, Utah Code Annotated 1953
             98          32A-4a-101, Utah Code Annotated 1953
             99          32A-4a-102, Utah Code Annotated 1953
             100          32A-4a-201, Utah Code Annotated 1953
             101          32A-4a-202, Utah Code Annotated 1953
             102          32A-4a-203, Utah Code Annotated 1953
             103          32A-4a-204, Utah Code Annotated 1953
             104          32A-4a-205, Utah Code Annotated 1953
             105          32A-4a-301, Utah Code Annotated 1953
             106          32A-4a-302, Utah Code Annotated 1953
             107          32A-4a-303, Utah Code Annotated 1953
             108          32A-4a-304, Utah Code Annotated 1953
             109          32A-4a-305, Utah Code Annotated 1953
             110          32A-4a-401, Utah Code Annotated 1953
             111          32A-4a-402, Utah Code Annotated 1953
             112          32A-4a-501, Utah Code Annotated 1953
             113          32A-4a-502, Utah Code Annotated 1953
             114          32A-4a-503, Utah Code Annotated 1953
             115          32A-5-109, Utah Code Annotated 1953
             116      REPEALS:
             117          32A-12-218, as last amended by Laws of Utah 2003, Chapter 314
             118      Uncodified Material Affected:


             119      ENACTS UNCODIFIED MATERIAL
             120     
             121      Be it enacted by the Legislature of the state of Utah:
             122          Section 1. Section 11-10-1 is amended to read:
             123           11-10-1. Business license required -- Authorization for issuance, denial,
             124      suspension, or revocation by local authority.
             125          (1) As used in this chapter, ["club," "local authority," "restaurant," and "person"] the
             126      following have the meaning set forth in Section 32A-1-105 [.]:
             127          (a) "club licensee";
             128          (b) "local authority";
             129          (c) "person"; and
             130          (d) "restaurant."
             131          (2) A person may not operate an association, restaurant, club license, or similar
             132      business that allows customers, members, guests, [visitors,] or other persons to possess or
             133      consume alcoholic beverages on the premises of the club licensee, association, restaurant, or
             134      similar business premises without a business license.
             135          (3) Any local authority may issue a business license to any person who owns or
             136      operates an association, restaurant, club license premise, or similar business that allows the
             137      customers, members, guests, [visitors,] or other persons to hold, store, possess, or consume
             138      alcoholic beverages on the premises. This license does not permit any person to hold, store,
             139      possess, or consume alcoholic beverages on the premises other than as provided in Title 32A,
             140      [the] Alcoholic Beverage Control Act.
             141          (4) Any local authority may suspend or revoke a business license for a violation of
             142      Title 32A, [the] Alcoholic Beverage Control Act.
             143          (5) Each local authority shall set policy by written rules that establish criteria and
             144      procedures for granting, denying, suspending, or revoking licenses issued under this chapter.
             145          (6) A license issued under this section constitutes consent of the local authority within
             146      the meaning of Title 32A, [the] Alcoholic Beverage Control Act.
             147          Section 2. Section 26-38-2 is amended to read:
             148           26-38-2. Definitions.
             149          As used in this chapter:


             150          (1) "Place of public access" means any enclosed indoor place of business, commerce,
             151      banking, financial service, or other service-related activity, whether publicly or privately owned
             152      and whether operated for profit or not, to which persons not employed at the place of public
             153      access have general and regular access or which the public uses, including:
             154          (a) buildings, offices, shops, elevators, or restrooms;
             155          (b) means of transportation or common carrier waiting rooms;
             156          (c) restaurants, cafes, or cafeterias;
             157          (d) taverns as defined in Section 32A-1-105 , or cabarets;
             158          (e) shopping malls, retail stores, grocery stores, or arcades;
             159          (f) libraries, theaters, concert halls, museums, art galleries, planetariums, historical
             160      sites, auditoriums, or arenas;
             161          (g) barber shops, hair salons, or laundromats;
             162          (h) sports or fitness facilities;
             163          (i) common areas of nursing homes, hospitals, resorts, hotels, motels, "bed and
             164      breakfast" lodging facilities, and other similar lodging facilities, including the lobbies,
             165      hallways, elevators, restaurants, cafeterias, other designated dining areas, and restrooms of any
             166      of these;
             167          (j) (i) any child care facility or program subject to licensure or certification under this
             168      title, including those operated in private homes, when any child cared for under that license is
             169      present; and
             170          (ii) any child care, other than child care as defined in Section 26-39-102 , that is not
             171      subject to licensure or certification under this title, when any child cared for by the provider,
             172      other than the child of the provider, is present;
             173          (k) public or private elementary or secondary school buildings and educational
             174      facilities or the property on which those facilities are located;
             175          (l) any building owned, rented, leased, or otherwise operated by a social, fraternal, or
             176      religious organization when used solely by the organization members or their guests or
             177      families;
             178          (m) any facility rented or leased for private functions from which the general public is
             179      excluded and arrangements for the function are under the control of the function sponsor;
             180          (n) any workplace that is not a place of public access or a publicly owned building or


             181      office but has one or more employees who are not owner-operators of the business; [and]
             182          (o) any area where the proprietor or manager of the area has posted a conspicuous sign
             183      stating "no smoking", "thank you for not smoking", or similar statement[.]; and
             184          (p) [any private] a club [licensed] licensee under Title 32A, Chapter 5, [Private] Club
             185      [Liquor] Licenses.
             186          (2) "Publicly owned building or office" means any enclosed indoor place or portion of
             187      a place owned, leased, or rented by any state, county, or municipal government, or by any
             188      agency supported by appropriation of, or by contracts or grants from, funds derived from the
             189      collection of federal, state, county, or municipal taxes.
             190          (3) "Smoking" means the possession of any lighted tobacco product in any form.
             191          Section 3. Section 26-38-3 is amended to read:
             192           26-38-3. Restriction on smoking in public places and in specified places --
             193      Exceptions.
             194          (1) Except as provided in Subsection (2), smoking is prohibited in all enclosed indoor
             195      places of public access and publicly owned buildings and offices.
             196          (2) Subsection (1) does not apply to:
             197          (a) areas not commonly open to the public of owner-operated businesses having no
             198      employees other than the owner-operator;
             199          (b) guest rooms in hotels, motels, "bed and breakfast" lodging facilities, and other
             200      similar lodging facilities, but smoking is prohibited under Subsection (1) in the common areas
             201      of these facilities, including dining areas and lobby areas; and
             202          [(c) before January 1, 2009, taverns, as defined in Section 32A-1-105 , that are:]
             203          [(i) licensed on or before May 15, 2006; or]
             204          [(ii) licensed on or before May 15, 2006 and after May 15, 2006 undergo a change in
             205      ownership;]
             206          [(d) before January 1, 2009, class D private clubs, as defined in Section 32A-5-101 ,
             207      that are:]
             208          [(i) licensed on or before May 15, 2006; or]
             209          [(ii) licensed on or before May 15, 2006 and after May 15, 2006 undergo a change in
             210      ownership;]
             211          [(e) before January 1, 2009, class B private clubs, as defined in Section 32A-5-101


             212      that:]
             213          [(i) are licensed:]
             214          [(A) on or before May 15, 2006; or]
             215          [(B) on or before May 15, 2006 and after May 15, 2006 undergo a change in
             216      ownership; and]
             217          [(ii) do not permit an individual under the age of 21 in the class B private club, unless
             218      the individual is active military; and]
             219          [(f)] (c) separate enclosed smoking areas:
             220          (i) located in the passenger terminals of an international airport located in the city of
             221      the first class;
             222          (ii) vented directly to the outdoors; and
             223          (iii) certified, by a heating, ventilation, and air conditioning engineer licensed by the
             224      state, to prevent the drift of any smoke to any nonsmoking area of the terminal.
             225          Section 4. Section 32A-1-105 is amended to read:
             226           32A-1-105. Definitions.
             227          As used in this title:
             228          (1) "Airport lounge" means a place of business licensed to sell an alcoholic beverage,
             229      at retail, for consumption on its premises located at an international airport with a United States
             230      Customs office on the premises of the international airport.
             231          (2) "Alcoholic beverage" means the following as the term is defined in this section:
             232          (a) beer;
             233          (b) flavored malt beverage; and
             234          (c) liquor, which [on or after October 1, 2008,] includes a flavored malt beverage.
             235          (3) (a) "Alcoholic product" means a product that:
             236          (i) contains at least .5% of alcohol by volume; and
             237          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
             238      process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
             239      in an amount greater than the amount prescribed in Subsection (3)(a)(i).
             240          (b) "Alcoholic product" does not include any of the following common items that
             241      otherwise come within the definition of an alcoholic product:
             242          (i) except as provided in Subsection (3)(c), extract;


             243          (ii) vinegar;
             244          (iii) cider;
             245          (iv) essence;
             246          (v) tincture;
             247          (vi) food preparation; or
             248          (vii) an over-the-counter drug or medicine.
             249          (c) An extract containing alcohol obtained by distillation is regulated as an alcoholic
             250      product when it is used as a flavoring in the manufacturing of an alcoholic product.
             251          (4) (a) ["Bar"] Except as provided in Subsection (4)(b), "bar" means a counter or
             252      similar structure:
             253          [(a)] (i) at which an alcoholic beverage or an alcoholic product is:
             254          [(i)] (A) stored; or
             255          [(ii)] (B) dispensed; or
             256          [(b)] (ii) from which an alcoholic beverage is served.
             257          (b) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
             258      3, Limited Restaurant Licenses, "bar structure" means a surface or structure on the premises of
             259      a restaurant if on or at any place of the surface or structure an alcoholic beverage or alcoholic
             260      product is:
             261          (i) stored; or
             262          (ii) dispensed.
             263          (5) (a) Subject to Subsection (5)(d), "beer" means a product that:
             264          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
             265      volume or 3.2% by weight; and
             266          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             267          (b) Beer may or may not contain hops or other vegetable products.
             268          (c) Beer includes a product that:
             269          (i) contains alcohol in the percentages described in Subsection (5)(a); and
             270          (ii) is referred to as:
             271          (A) beer;
             272          (B) ale;
             273          (C) porter;


             274          (D) stout;
             275          (E) lager; or
             276          (F) a malt or malted beverage.
             277          (d) [On or after October 1, 2008, "beer"] "Beer" does not include a flavored malt
             278      beverage.
             279          (6) (a) "Beer retailer" means a business that is:
             280          (i) engaged, primarily or incidentally, in the retail sale of beer to a patron, whether for
             281      consumption on or off the business premises; and
             282          (ii) licensed to sell beer by:
             283          (A) the commission;
             284          (B) a local authority; or
             285          (C) both the commission and a local authority.
             286          (b) (i) "Off-premise beer retailer" means a business that is engaged in the retail sale of
             287      beer to a patron for consumption off the beer retailer's premises.
             288          (ii) "Off-premise beer retailer" does not include an on-premise beer retailer.
             289          (c) "On-premise beer retailer" means a business that is engaged in the sale of beer to a
             290      patron for consumption on the beer retailer's premises, regardless of whether the business sells
             291      beer for consumption off the beer retailer's premises.
             292          (7) "Billboard" means a public display used to advertise including:
             293          (a) a light device;
             294          (b) a painting;
             295          (c) a drawing;
             296          (d) a poster;
             297          (e) a sign;
             298          (f) a signboard; or
             299          (g) a scoreboard.
             300          (8) "Brewer" means a person engaged in manufacturing:
             301          (a) beer;
             302          (b) heavy beer; or
             303          (c) a flavored malt beverage.
             304          (9) "Cash bar" means the service of an alcoholic beverage:


             305          (a) at:
             306          (i) a banquet; or
             307          (ii) a temporary event for which a permit is issued under this title; and
             308          (b) if an attendee at the banquet or temporary event is charged for the alcoholic
             309      beverage.
             310          (10) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
             311      a bus company to a group of persons pursuant to a common purpose:
             312          (a) under a single contract;
             313          (b) at a fixed charge in accordance with the bus company's tariff; and
             314          (c) for the purpose of giving the group of persons the exclusive use of the passenger
             315      bus, coach, or other motor vehicle and a driver to travel together to one or more specified
             316      destinations.
             317          (11) "Church" means a building:
             318          (a) set apart for the purpose of worship;
             319          (b) in which religious services are held;
             320          (c) with which clergy is associated; and
             321          (d) which is tax exempt under the laws of this state.
             322          (12) ["Club" and "private club"] "Club licensee" means [any of the following organized
             323      primarily for the benefit of its members:] a person licensed under Chapter 5, Club Licenses.
             324          [(a) a social club;]
             325          [(b) a recreational association;]
             326          [(c) a fraternal association;]
             327          [(d) an athletic association; or]
             328          [(e) a kindred association.]
             329          (13) "Commission" means the Alcoholic Beverage Control Commission.
             330          (14) "Community location" means:
             331          (a) a public or private school;
             332          (b) a church;
             333          (c) a public library;
             334          (d) a public playground; or
             335          (e) a public park.


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


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


             398          [(24)] (26) "Identification card" means an identification card issued under Title 53,
             399      Chapter 3, Part 8, Identification Card Act.
             400          [(25)] (27) "Interdicted person" means a person to whom the sale, gift, or provision of
             401      an alcoholic beverage is prohibited by:
             402          (a) law; or
             403          (b) court order.
             404          [(26)] (28) "Intoxicated" means that [to a degree that is unlawful under Section
             405      76-9-701 ] a person [is under the influence of]:
             406          (a) is significantly impaired as to the person's mental or physical functions as a result of
             407      the use of:
             408          [(a)] (i) an alcoholic beverage;
             409          [(b)] (ii) a controlled substance;
             410          [(c)] (iii) a substance having the property of releasing toxic vapors; or
             411          [(d)] (iv) a combination of Subsections [(26)] (28)(a)(i) through [(c).] (iii); and
             412          (b) exhibits plain and easily observed outward manifestations of behavior or physical
             413      signs produced by the over consumption of an alcoholic beverage.
             414          (29) "Invitee" is as defined in Section 32A-4a-102 .
             415          [(27)] (30) "Licensee" means a person [issued] granted a license by the commission to
             416      sell, manufacture, store, or allow consumption of an alcoholic beverage on premises owned or
             417      controlled by the person.
             418          [(28)] (31) "Limousine" means a motor vehicle licensed by the state or a local
             419      authority, other than a bus or taxicab:
             420          (a) in which the driver and a passenger are separated by a partition, glass, or other
             421      barrier; and
             422          (b) that is provided by a company to one or more individuals at a fixed charge in
             423      accordance with the company's tariff for the purpose of giving the one or more individuals the
             424      exclusive use of the limousine and a driver to travel to one or more specified destinations.
             425          [(29)] (32) (a) (i) "Liquor" means alcohol, or an alcoholic, spirituous, vinous,
             426      fermented, malt, or other liquid, or combination of liquids, a part of which is spirituous,
             427      vinous, or fermented, or other drink, or drinkable liquid that:
             428          (A) contains at least .5% alcohol by volume; and


             429          (B) is suitable to use for beverage purposes.
             430          (ii) [On or after October 1, 2008, "liquor"] "Liquor" includes a flavored malt beverage.
             431          (b) "Liquor" does not include a beverage defined as a beer.
             432          [(30)] (33) "Local authority" means:
             433          (a) the governing body of the county if the premises are located in an unincorporated
             434      area of a county; or
             435          (b) the governing body of the city or town if the premises are located in an incorporated
             436      city or a town.
             437          [(31)] (34) "Manufacture" means to distill, brew, rectify, mix, compound, process,
             438      ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
             439      others.
             440          [(32)] (35) "Member" means [a person] an individual who, after paying regular dues,
             441      has full privileges of [a] an equity club licensee or fraternal club [under this title] licensee, as
             442      defined in Section 32A-5-101 .
             443          [(33)] (36) (a) "Military installation" means a base, air field, camp, post, station, yard,
             444      center, or homeport facility for a ship:
             445          (i) (A) under the control of the United States Department of Defense; or
             446          (B) of the National Guard;
             447          (ii) that is located within the state; and
             448          (iii) including a leased facility.
             449          (b) "Military installation" does not include a facility used primarily for:
             450          (i) civil works;
             451          (ii) a rivers and harbors project; or
             452          (iii) a flood control project.
             453          [(34)] (37) "Minor" means an individual under the age of 21 years.
             454          [(35)] (38) "Nude," "nudity," or "state of nudity" means:
             455          (a) the appearance of:
             456          (i) the nipple or areola of a female human breast;
             457          (ii) a human genital;
             458          (iii) a human pubic area; or
             459          (iv) a human anus; or


             460          (b) a state of dress that fails to opaquely cover:
             461          (i) the nipple or areola of a female human breast;
             462          (ii) a human genital;
             463          (iii) a human pubic area; or
             464          (iv) a human anus.
             465          [(36)] (39) "Outlet" means a location other than a state store or package agency where
             466      an alcoholic beverage is sold pursuant to a license [issued] granted by the commission.
             467          [(37)] (40) "Package" means any of the following containing liquor:
             468          (a) a container;
             469          (b) a bottle;
             470          (c) a vessel; or
             471          (d) other receptacle.
             472          [(38)] (41) "Package agency" means a retail liquor location operated:
             473          (a) under a contractual agreement with the department; and
             474          (b) by a person:
             475          (i) other than the state; and
             476          (ii) who is authorized by the commission to sell package liquor for consumption off the
             477      premises of the package agency.
             478          [(39)] (42) "Package agent" means a person permitted by the commission to operate a
             479      package agency pursuant to a contractual agreement with the department to sell liquor from
             480      premises that the package agent shall provide and maintain.
             481          [(40)] (43) "Permittee" means a person issued a permit by the commission to perform
             482      an act or exercise a privilege as specifically granted in the permit.
             483          [(41)] (44) "Person" means an individual, partnership, firm, corporation, limited
             484      liability company, association, business trust, or other form of business enterprise, including a
             485      receiver or trustee, and the plural as well as the singular number, unless the intent to give a
             486      more limited meaning is disclosed by the context.
             487          [(42)] (45) "Premises" means a building, enclosure, room, or equipment used in
             488      connection with the sale, storage, service, manufacture, distribution, or consumption of an
             489      alcoholic product, unless otherwise defined in this title or in the rules adopted by the
             490      commission.


             491          [(43)] (46) "Prescription" means a writing in legal form, signed by a physician or
             492      dentist and given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
             493          [(44)] (47) (a) "Privately hosted event" or "private social function" means a specific
             494      social, business, or recreational event:
             495          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
             496      group; and
             497          (ii) that is limited in attendance to people who are specifically designated and their
             498      guests.
             499          (b) "Privately hosted event" and "private social function" does not include an event to
             500      which the general public is invited, whether for an admission fee or not.
             501          [(45)] (48) (a) "Proof of age" means:
             502          (i) an identification card;
             503          (ii) an identification that:
             504          (A) is substantially similar to an identification card;
             505          (B) is issued in accordance with the laws of a state other than Utah in which the
             506      identification is issued;
             507          (C) includes date of birth; and
             508          (D) has a picture affixed;
             509          (iii) a valid driver license certificate that:
             510          (A) includes date of birth;
             511          (B) has a picture affixed; and
             512          (C) is issued:
             513          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
             514          (II) in accordance with the laws of the state in which it is issued;
             515          (iv) a military identification card that:
             516          (A) includes date of birth; and
             517          (B) has a picture affixed; or
             518          (v) a valid passport.
             519          (b) "Proof of age" does not include a driving privilege card issued in accordance with
             520      Section 53-3-207 .
             521          [(46)] (49) (a) "Public building" means a building or permanent structure owned or


             522      leased by the state, a county, or local government entity that is used for:
             523          (i) public education;
             524          (ii) transacting public business; or
             525          (iii) regularly conducting government activities.
             526          (b) "Public building" does not mean or refer to a building owned by the state or a
             527      county or local government entity when the building is used by a person, in whole or in part,
             528      for a proprietary function.
             529          [(47)] (50) "Representative" means an individual who is compensated by salary,
             530      commission, or other means for representing and selling an alcoholic beverage product of a
             531      manufacturer, supplier, or importer of liquor including:
             532          (a) wine;
             533          (b) heavy beer; or
             534          (c) [on or after October 1, 2008,] a flavored malt beverage.
             535          [(48)] (51) "Residence" means a person's principal place of abode within Utah.
             536          (52) "Resident," in relation to a resort, is as defined in Section 32A-4a-102 .
             537          (53) "Resort" is as defined in Section 32A-4a-102 .
             538          [(49)] (54) "Restaurant" means a business establishment:
             539          (a) where a variety of foods [is] are prepared and complete meals are served to the
             540      general public;
             541          (b) located on a premises having adequate culinary fixtures for food preparation and
             542      dining accommodations; and
             543          (c) that is engaged primarily in serving meals to the general public.
             544          [(50)] (55) "Retailer" means a person engaged in the sale or distribution of an alcoholic
             545      beverage to a consumer.
             546          [(51)] (56) (a) "Sample" includes:
             547          (i) a department sample; and
             548          (ii) an industry representative sample.
             549          (b) "Department sample" means liquor that is placed in the possession of the
             550      department for testing, analysis, and sampling including:
             551          (i) wine;
             552          (ii) heavy beer; or


             553          (iii) [on or after October 1, 2008,] a flavored malt beverage.
             554          (c) "Industry representative sample" means liquor that is placed in the possession of the
             555      department:
             556          (i) for testing, analysis, and sampling by a local industry representative on the premises
             557      of the department to educate the local industry representative of the quality and characteristics
             558      of the product; and
             559          (ii) including:
             560          (A) wine;
             561          (B) heavy beer; or
             562          (C) [on or after October 1, 2008,] a flavored malt beverage.
             563          [(52)] (57) (a) "School" means a building used primarily for the general education of
             564      minors.
             565          (b) "School" does not include:
             566          (i) a nursery school;
             567          (ii) an infant day care center; or
             568          (iii) a trade or technical school.
             569          [(53)] (58) "Sell," "sale," and "to sell" means a transaction, exchange, or barter
             570      whereby, for consideration, an alcoholic beverage is either directly or indirectly transferred,
             571      solicited, ordered, delivered for value, or by a means or under a pretext is promised or
             572      obtained, whether done by a person as a principal, proprietor, or as an agent, servant, or
             573      employee, unless otherwise defined in this title or the rules made by the commission.
             574          [(54)] (59) "Seminude," "seminudity," or "state of seminudity" means a state of dress in
             575      which opaque clothing covers no more than:
             576          (a) the nipple and areola of the female human breast in a shape and color other than the
             577      natural shape and color of the nipple and areola; and
             578          (b) the human genitals, pubic area, and anus:
             579          (i) with no less than the following at its widest point:
             580          (A) four inches coverage width in the front of the human body; and
             581          (B) five inches coverage width in the back of the human body; and
             582          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
             583          [(55)] (60) "Sexually oriented entertainer" means a person who while in a state of


             584      seminudity appears at or performs:
             585          (a) for the entertainment of one or more patrons;
             586          (b) on the premises of:
             587          (i) a [class D private] social club licensee as defined in [Subsection] Section
             588      32A-5-101 [(3)]; or
             589          (ii) a tavern;
             590          (c) on behalf of or at the request of the licensee described in Subsection [(55)] (60)(b);
             591          (d) on a contractual or voluntary basis; and
             592          (e) whether or not the person is designated:
             593          (i) an employee of the licensee described in Subsection [(55)] (60)(b);
             594          (ii) an independent contractor of the licensee described in Subsection [(55)] (60)(b);
             595          (iii) an agent of the licensee described in Subsection [(55)] (60)(b); or
             596          (iv) otherwise of the licensee described in Subsection [(55)] (60)(b).
             597          [(56)] (61) "Small brewer" means a brewer who manufactures less than 60,000 barrels
             598      of beer, heavy beer, and flavored malt beverages per year.
             599          [(57)] (62) (a) "Spirituous liquor" means liquor that is distilled.
             600          (b) "Spirituous liquor" includes an alcohol product defined as a "distilled spirit" by 27
             601      U.S.C. 211 and 27 C.F.R. Sections 5.11 through 5.23.
             602          [(58) (a) "State label" means the official label designated by the commission affixed to
             603      a liquor container sold in the state.]
             604          [(b) "State label" includes the department identification mark and inventory control
             605      number.]
             606          [(59)] (63) (a) "State store" means a facility for the sale of package liquor:
             607          (i) located on premises owned or leased by the state; and
             608          (ii) operated by a state employee.
             609          (b) "State store" does not apply to a:
             610          (i) licensee;
             611          (ii) permittee; or
             612          (iii) package agency.
             613          (64) For purposes of Chapter 4, Part 1, Restaurant Liquor Licenses, and Chapter 4, Part
             614      3, Limited Restaurant Licenses:


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


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


             677          (B) the procedures for testing a new [products] product;
             678          (C) purchasing policy;
             679          (D) turnover requirements for a regularly coded [products] product to be continued;
             680      and
             681          (E) the disposition of discontinued, distressed, or unsaleable merchandise; and
             682          (iii) determining the location of a state [stores, package agencies, and outlets] store,
             683      package agency, or outlet;
             684          (d) decide within the limits and under the conditions imposed by this title, the number
             685      and location of state stores, package agencies, and outlets established in the state;
             686          (e) issue, grant, deny, suspend, revoke, or not renew the following permits, licenses,
             687      certificates of approval, and package agencies for the purchase, sale, storage, service,
             688      manufacture, distribution, and consumption of an alcoholic [products] product:
             689          (i) a package [agencies] agency;
             690          (ii) a restaurant [licenses] license;
             691          (iii) an airport lounge [licenses] license;
             692          (iv) a limited restaurant [licenses] license;
             693          (v) an on-premise banquet [licenses] license;
             694          (vi) a resort license, under which four or more sublicenses may be included;
             695          [(vi) private] (vii) a club [licenses] license;
             696          [(vii)] (viii) an on-premise beer retailer [licenses] license;
             697          [(viii)] (ix) a temporary special event beer [permits] permit;
             698          [(ix)] (x) a special use [permits] permit;
             699          [(x)] (xi) a single event [permits] permit;
             700          [(xi)] (xii) a manufacturing [licenses] license;
             701          [(xii)] (xiii) a liquor warehousing [licenses] license;
             702          [(xiii)] (xiv) a beer wholesaling [licenses] license; and
             703          [(xiv)] (xv) an out-of-state brewer [certificates] certificate of approval;
             704          (f) fix prices at which [liquors are] liquor is sold that are the same at all state stores,
             705      package agencies, and outlets;
             706          (g) issue and distribute price lists showing the price to be paid by [purchasers] a
             707      purchaser for each class, variety, or brand of liquor kept for sale by the department;


             708          (h) (i) require the director to follow sound management principles; and
             709          (ii) require periodic reporting from the director to ensure that:
             710          (A) sound management principles are being followed; and
             711          (B) policies established by the commission are being observed;
             712          (i) (i) receive, consider, and act in a timely manner upon [all] the reports,
             713      recommendations, and matters submitted by the director to the commission; and
             714          (ii) do [all] the things necessary to support the department in properly performing the
             715      department's duties and responsibilities;
             716          (j) obtain temporarily and for special purposes the services of [experts and persons] an
             717      expert or person engaged in the practice of a profession or who possess any needed skills,
             718      talents, or abilities if:
             719          (i) considered expedient; and
             720          (ii) approved by the governor;
             721          (k) prescribe the duties of a departmental [officials] official authorized to assist the
             722      commission in issuing [permits, licenses, certificates of approval, and package agencies] a
             723      permit, license, certificate of approval, or package agency under this title;
             724          (l) prescribe, consistent with this title, the fees payable for:
             725          (i) [permits, licenses, certificates of approval, and package agencies] a permit, license,
             726      certificate of approval, or package agency issued under this title; or
             727          (ii) anything done or permitted to be done under this title;
             728          (m) prescribe the conduct, management, and equipment of [any] premises upon which
             729      an alcoholic [beverages] beverage may be sold, consumed, served, or stored;
             730          (n) make rules governing the credit terms of beer sales to retailers within the state;
             731          (o) require that each of the following, where required in this title, display in a
             732      prominent place a sign in large letters stating: "Warning: Driving under the influence of alcohol
             733      or drugs is a serious crime that is prosecuted aggressively in Utah.":
             734          (i) a state store;
             735          (ii) a permittee;
             736          (iii) a licensee; and
             737          (iv) a package agency; and
             738          (p) subject to Subsection (4) and as provided in this title, impose fines against:


             739          (i) a permittee, licensee, certificate holder, or package agent described in Subsection
             740      (1)(e); or
             741          (ii) [any] an officer, employee, or agent of a permittee, licensee, certificate holder, or
             742      package agent described in Subsection (1)(p)(i).
             743          (2) The power of the commission to do the following is plenary, except as otherwise
             744      provided by this title, and not subject to review:
             745          (a) establish a state [stores] store;
             746          (b) create a package [agencies] agency;
             747          (c) grant authority to operate a package [agencies] agency; and
             748          (d) grant or deny [permits, licenses, and certificates] a permit, license, or certificate of
             749      approval.
             750          (3) The commission may appoint a qualified hearing [examiners] examiner to conduct
             751      [any] a suspension or revocation [hearings] hearing required by law.
             752          (4) (a) In [any] a case [where] when the commission is given the power to suspend
             753      [any ] a permit, license, certificate of approval, or package agency the commission may impose
             754      a fine in addition to or in lieu of suspension.
             755          (b) [Fines] A fine imposed may not exceed $25,000 in the aggregate for:
             756          (i) [any] a single Notice of Agency Action; or
             757          (ii) a single action against a package agency.
             758          (c) The commission shall promulgate, by rule, a schedule setting forth a range of fines
             759      for each violation.
             760          Section 6. Section 32A-1-109 is amended to read:
             761           32A-1-109. Powers and duties of the director.
             762          Subject to the powers and responsibilities vested in the commission by this title the
             763      director shall:
             764          (1) prepare and propose to the commission general policies, directives, rules, and
             765      procedures governing the administrative activities of the department, and may submit other
             766      recommendations to the commission as the director considers in the interest of [its] the
             767      commission's or the department's business;
             768          (2) within the general policies, directives, rules, and procedures of the commission[,]:
             769          (a) provide day-to-day direction, coordination, and delegation of responsibilities in the


             770      administrative activities of the department's business; and [promulgate]
             771          (b) make internal department policies, directives, rules, and procedures relating to
             772      department personnel matters, and the day-to-day operation of the department consistent with
             773      those of the commission;
             774          (3) (a) appoint or employ personnel as considered necessary in the administration of
             775      this title [and];
             776          (b) prescribe the conditions of [their] employment[, define their] for the personnel
             777      described in Subsection (3)(a);
             778          (c) define the respective duties and powers[, fix their] for the personnel described in
             779      Subsection (3)(a);
             780          (d) fix the remuneration in accordance with Title 67, Chapter 19, Utah State Personnel
             781      Management Act, for the personnel described in Subsection (3)(a); and
             782          (e) designate those employees required to give [bonds] a bond and specify the bond
             783      amounts;
             784          (4) establish and secure adherence to a system of reports, controls, and performance in
             785      [all] matters relating to personnel, security, department property management, and operation of
             786      [department offices, warehouses, state stores, package agencies, and licensees;]:
             787          (a) a department office;
             788          (b) a warehouse;
             789          (c) a state store;
             790          (d) a package agency; and
             791          (e) a licensee;
             792          (5) within the policies, directives, rules, and procedures approved by the commission
             793      and provisions of law, buy, import, keep for sale, sell and control the sale, storage, service,
             794      transportation, and delivery of an alcoholic [products] product;
             795          (6) prepare for commission approval:
             796          (a) recommendations regarding the location, establishment, relocation, and closure of
             797      [state stores and package agencies] a state store or package agency;
             798          (b) recommendations regarding the issuance, suspension, nonrenewal, and revocation
             799      of [licenses and permits] a license or permit;
             800          (c) an annual [budgets] budget, proposed legislation, and reports as required by law and


             801      sound business principles;
             802          (d) plans for reorganizing divisions of the department and [their] the functions of the
             803      divisions;
             804          (e) manuals containing [all] commission and department policies, directives, rules, and
             805      procedures;
             806          (f) an inventory control system;
             807          (g) any other [reports and recommendations] report or recommendation as may be
             808      requested by the commission;
             809          (h) rules governing the credit terms of the sale of beer [sales] to a beer retailer
             810      [licensees] licensee;
             811          (i) rules governing the calibration, maintenance, and regulation of a calibrated metered
             812      dispensing [systems] system;
             813          (j) rules governing the posting of a list of types and brand names of liquor [being]
             814      served through a calibrated metered dispensing [systems] system;
             815          (k) price lists issued and distributed showing the price to be paid for each class, variety,
             816      or brand of liquor kept for sale at a state [stores, package agencies, and outlets] store, package
             817      agency, or outlet;
             818          (l) directives prescribing the books of account kept by the department and by a state
             819      [stores, package agencies, and outlets;] store, package agency, or outlet; and
             820          [(m) an official state label and the manner in which the label shall be affixed to every
             821      package of liquor sold under this title; and]
             822          [(n)] (m) a policy prescribing the manner of giving and serving [notices] a notice
             823      required by this title or rules made under this title;
             824          (7) make available through the department to any person, upon request, a copy of [any]
             825      a policy or directive [promulgated] made by the director;
             826          [(8) adopt internal departmental policies, directives, rules, and procedures relating to
             827      department personnel matters and the day-to-day operation of the department that are
             828      consistent with those of the commission;]
             829          [(9)] (8) keep a current copy of [the manuals containing] a manual that contains the
             830      rules and policies of the department and commission available for public inspection;
             831          [(10)] (9) (a) after consultation with the governor, determine whether an alcoholic


             832      [products] product should not be sold, offered for sale, or otherwise furnished in an area of the
             833      state during a period of emergency that is proclaimed by the governor to exist in that area; and
             834          (b) issue [any] a necessary public [announcements and directives] announcement or
             835      directive with respect to the determination described in Subsection [(10)] (9)(a); and
             836          [(11)] (10) perform other duties required by the commission and by law.
             837          Section 7. Section 32A-1-115 is amended to read:
             838           32A-1-115. Alcoholic Beverage Enforcement and Treatment Restricted Account
             839      -- Distribution.
             840          (1) As used in this section:
             841          (a) "Account" means the Alcoholic Beverage Enforcement and Treatment Restricted
             842      Account created in this section.
             843          (b) "Alcohol-related offense" means:
             844          (i) a violation of:
             845          (A) Section 41-6a-502 ; or
             846          (B) an ordinance that complies with the requirements of:
             847          (I) Subsection 41-6a-510 (1); or
             848          (II) Section 76-5-207 ; or
             849          (ii) an offense involving the:
             850          (A) illegal sale of alcohol;
             851          (B) illegal distribution of alcohol;
             852          (C) illegal transportation of alcohol;
             853          (D) illegal possession of alcohol; or
             854          (E) illegal consumption of alcohol.
             855          (c) "Annual conviction time period" means the time period that:
             856          (i) begins on July 1 and ends on June 30; and
             857          (ii) immediately precedes the fiscal year for which an appropriation under this section
             858      is made.
             859          (d) "Coordinating council" means the Utah Substance Abuse and Anti-Violence
             860      Coordinating Council created in Section 63M-7-301 .
             861          (e) "Municipality" means:
             862          (i) a city; or


             863          (ii) a town.
             864          (2) (a) There is created in the General Fund a restricted account called the "Alcoholic
             865      Beverage Enforcement and Treatment Restricted Account."
             866          (b) The account shall be funded from:
             867          (i) amounts deposited by the state treasurer in accordance with Section 59-15-109 ;
             868          (ii) any appropriations made to the account by the Legislature; and
             869          (iii) interest described in Subsection (2)(c).
             870          (c) Interest earned on the account shall be deposited into the account.
             871          (d) (i) Consistent with the policies provided in Subsection 32A-1-104 (4)(b), the
             872      revenues in the account shall be used for statewide public purposes including promoting the
             873      reduction of the harmful effects of over consumption of alcoholic beverages by adults and
             874      alcohol consumption by minors by funding exclusively programs or projects related to
             875      prevention, treatment, detection, prosecution, and control of violations of this title and other
             876      offenses in which alcohol is a contributing factor except as provided in Subsection (2)(d)(ii).
             877          (ii) The portion distributed under this section to counties may also be used for the
             878      confinement or treatment of persons arrested for or convicted of offenses in which alcohol is a
             879      contributing factor.
             880          (iii) [Any] A municipality or county entitled to receive [funds] monies shall use the
             881      [funds] monies exclusively as required by this Subsection (2)(d).
             882          (iv) The appropriations provided for under Subsection (3) are:
             883          (A) intended to supplement the budget of the appropriate agencies of each municipality
             884      and county within the state to enable the municipalities and counties to more effectively fund
             885      the programs and projects described in this Subsection (2)(d); and
             886          (B) not intended to replace [funds] monies that would otherwise be allocated for the
             887      programs and projects in this Subsection (2)(d).
             888          (3) (a) The revenues deposited into the account shall be distributed to municipalities
             889      and counties:
             890          (i) to the extent appropriated by the Legislature except that the Legislature shall
             891      appropriate each fiscal year an amount equal to at least the amount deposited in the account in
             892      accordance with Section 59-15-109 ; and
             893          (ii) as provided in this Subsection (3).


             894          (b) The amount appropriated from the account shall be distributed as follows:
             895          (i) 25% to municipalities and counties based upon the percentage of the state
             896      population residing in each municipality and county;
             897          (ii) 30% to municipalities and counties based upon each municipality's and county's
             898      percentage of the statewide convictions for all alcohol-related offenses;
             899          (iii) 20% to municipalities and counties based upon the percentage of all state stores,
             900      package agencies, liquor licensees, and beer licensees in the state that are located in each
             901      municipality and county; and
             902          (iv) 25% to the counties for confinement and treatment purposes authorized by this
             903      section based upon the percentage of the state population located in each county.
             904          (c) (i) Except as provided in Subsection (3)(c)(iii), a municipality that does not have a
             905      law enforcement agency may not receive monies under this section.
             906          (ii) The State Tax Commission:
             907          (A) may not distribute the monies the municipality would receive but for the
             908      municipality not having a law enforcement agency to that municipality; and
             909          (B) shall distribute the monies that the municipality would have received but for it not
             910      having a law enforcement agency to the county in which the municipality is located for use by
             911      the county in accordance with this section.
             912          (iii) Notwithstanding Subsections (3)(c)(i) and (ii), if the coordinating council finds
             913      that a municipality described in Subsection (3)(c)(i) demonstrates that the municipality can use
             914      the monies that the municipality is otherwise eligible to receive in accordance with this section,
             915      the coordinating council may direct the State Tax Commission to distribute the money to the
             916      municipality.
             917          (4) To determine the distributions required by Subsection (3)(b)(ii), the State Tax
             918      Commission shall annually:
             919          (a) for an annual conviction time period:
             920          (i) multiply by two the total number of convictions in the state obtained during the
             921      annual conviction time period for violation of:
             922          (A) Section 41-6a-502 ; or
             923          (B) an ordinance that complies with the requirements of Subsection 41-6a-510 (1) or
             924      Section 76-5-207 ; and


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


             956      that of municipalities;
             957          (f) a conviction occurs in the municipality or county that actually prosecutes the
             958      offense to judgment; and
             959          (g) in the case of a conviction based upon a guilty plea, the conviction is considered to
             960      occur in the municipality or county that, except for the guilty plea, would have prosecuted the
             961      offense.
             962          (6) By not later than September 1 each year:
             963          (a) the state court administrator shall certify to the State Tax Commission the number
             964      of convictions obtained for alcohol-related offenses in each municipality or county in the state
             965      during the annual conviction time period; and
             966          (b) the coordinating council shall notify the State Tax Commission of any municipality
             967      that does not have a law enforcement agency.
             968          (7) By not later than December 1 of each year, the coordinating council shall notify the
             969      State Tax Commission for the fiscal year of appropriation of:
             970          (a) any municipality that may receive a distribution under Subsection (3)(c)(iii);
             971          (b) any county that may receive a distribution allocated to a municipality described in
             972      Subsection (3)(c)(ii);
             973          (c) any municipality or county that may not receive a distribution because the
             974      coordinating council has suspended the payment under Subsection (10)(a)(i); and
             975          (d) any municipality or county that receives a distribution because the suspension of
             976      payment has been cancelled under Subsection (10)(a)(ii).
             977          (8) (a) By not later than January 1 of the fiscal year of appropriation, the State Tax
             978      Commission shall annually distribute to each municipality and county the portion of the
             979      appropriation that the municipality or county is eligible to receive under this section, except for
             980      any municipality or county that the coordinating council notifies the State Tax Commission in
             981      accordance with Subsection (7) may not receive a distribution in that fiscal year.
             982          (b) (i) The State Tax Commission shall prepare forms for use by municipalities and
             983      counties in applying for distributions under this section.
             984          (ii) The forms described in this Subsection (8) may require the submission of
             985      information the State Tax Commission considers necessary to enable the State Tax
             986      Commission to comply with this section.


             987          (9) A municipality or county that receives any monies under this section during a fiscal
             988      year shall by no later than October 1 following the fiscal year:
             989          (a) report to the coordinating council:
             990          (i) the programs or projects of the municipality or county that receive monies under
             991      this section;
             992          (ii) if the monies for programs or projects were exclusively used as required by
             993      Subsection (2)(d);
             994          (iii) indicators of whether the programs or projects that receive monies under this
             995      section are effective; and
             996          (iv) if [any] monies received under this section were not expended by the municipality
             997      or county; and
             998          (b) provide the coordinating council a statement signed by the chief executive officer
             999      of the county or municipality attesting that the monies received under this section were used in
             1000      addition to [any] monies appropriated or otherwise available for the county's or municipality's
             1001      law enforcement and were not used to supplant those monies.
             1002          (10) (a) The coordinating council may, by a majority vote:
             1003          (i) suspend future payments under Subsection (8) to a municipality or county that:
             1004          (A) does not file a report that meets the requirements of Subsection (9); or
             1005          (B) the coordinating council finds does not use the monies as required by Subsection
             1006      (2)(d) on the basis of the report filed by the municipality or county under Subsection (9); and
             1007          (ii) cancel a suspension under Subsection (10)(a)(i).
             1008          (b) The State Tax Commission shall:
             1009          (i) retain monies that a municipality or county does not receive under Subsection
             1010      (10)(a); and
             1011          (ii) notify the coordinating council of the balance of retained monies under this
             1012      Subsection (10)(b) after the annual distribution under Subsection (8).
             1013          (11) (a) Subject to the requirements of this Subsection (11), the coordinating council
             1014      shall award the balance of retained monies under Subsection (10)(b):
             1015          (i) as prioritized by majority vote of the coordinating council; and
             1016          (ii) as grants to:
             1017          (A) a county;


             1018          (B) a municipality;
             1019          (C) the Department of Alcoholic Beverage Control;
             1020          (D) the Department of Human Services;
             1021          (E) the Department of Public Safety; or
             1022          (F) the Utah State Office of Education.
             1023          (b) By not later than May 30 of the fiscal year of the appropriation, the coordinating
             1024      council shall notify the State Tax Commission of [any] grants awarded under this Subsection
             1025      (11).
             1026          (c) The State Tax Commission shall make payments of [grants] a grant:
             1027          (i) upon receiving notice as provided under Subsection (11)(b); and
             1028          (ii) by not later than June 30 of the fiscal year of the appropriation.
             1029          (d) An entity that receives a grant under this Subsection (11) shall use the grant monies
             1030      exclusively for programs or projects described in Subsection (2)(d).
             1031          Section 8. Section 32A-1-119 is amended to read:
             1032           32A-1-119. Disciplinary proceedings -- Procedure.
             1033          (1) As used in Subsection (4), "final adjudication" means an adjudication for which a
             1034      final [unappealable] judgment or order is issued[.] that:
             1035          (a) is not appealed, and the time to appeal the judgment has expired; or
             1036          (b) is appealed, and is affirmed, in whole or in part, on appeal.
             1037          (2) (a) Subject to Section 32A-1-119.5 , the following may conduct an adjudicative
             1038      proceeding to inquire into a matter necessary and proper for the administration of this title and
             1039      rules adopted under this title:
             1040          (i) the commission;
             1041          (ii) a hearing examiner appointed by the commission for the purposes provided in
             1042      Subsection 32A-1-107 (3);
             1043          (iii) the director; and
             1044          (iv) the department.
             1045          (b) Except as provided in this section or Section 32A-3-106 , the following shall
             1046      comply with the procedures and requirements of Title 63G, Chapter 4, Administrative
             1047      Procedures Act, in an adjudicative proceeding:
             1048          (i) the commission;


             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 alleging
             1083      that a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii) violated this title or
             1084      the rules of the commission;
             1085          (ii) a final adjudication of criminal liability against a person listed in Subsections
             1086      32A-1-105 [(17)](18)(a)(i) through (vii) based on an alleged violation of this title; or
             1087          (iii) a final adjudication of civil liability under Chapter 14a, Alcoholic Beverage
             1088      Liability, against a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii) based
             1089      on an alleged violation of this title.
             1090          (b) The department may initiate a disciplinary proceeding if the department receives an
             1091      item listed in Subsection (4)(a) to determine:
             1092          (i) whether a person listed in Subsections 32A-1-105 [(17)](18)(a)(i) through (vii)
             1093      violated this title or rules of the commission; and
             1094          (ii) if a violation is found, the appropriate sanction to be imposed.
             1095          (5) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
             1096          (i) if required by law;
             1097          (ii) before revoking or suspending a permit, license, or certificate of approval issued
             1098      under this title; or
             1099          (iii) before imposing a fine against a person listed in Subsections
             1100      32A-1-105 [(17)](18)(a)(i) through (vii).
             1101          (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
             1102      hearing after receiving proper notice is an admission of the charged violation.
             1103          (c) The validity of a disciplinary proceeding is not affected by the failure of a person to
             1104      attend or remain in attendance.
             1105          (d) The commission or an appointed hearing examiner shall preside over a disciplinary
             1106      proceeding hearing.
             1107          (e) A disciplinary proceeding hearing may be closed only after the commission or
             1108      hearing examiner makes a written finding that the public interest in an open hearing is clearly
             1109      outweighed by factors enumerated in the closure order.
             1110          (f) (i) The commission or its hearing examiner as part of a disciplinary proceeding


             1111      hearing may:
             1112          (A) administer oaths or affirmations;
             1113          (B) take evidence;
             1114          (C) take a deposition within or without this state; and
             1115          (D) require by subpoena from a place within this state:
             1116          (I) the testimony of a person at a hearing; and
             1117          (II) the production of a book, record, paper, contract, agreement, document, or other
             1118      evidence considered relevant to the inquiry.
             1119          (ii) A person subpoenaed in accordance with this Subsection (5)(f) shall testify and
             1120      produce a book, paper, document, or tangible thing as required in the subpoena.
             1121          (iii) A witness subpoenaed or called to testify or produce evidence who claims a
             1122      privilege against self-incrimination may not be compelled to testify, but the commission or the
             1123      hearing examiner shall file a written report with the county attorney or district attorney in the
             1124      jurisdiction where the privilege is claimed or where the witness resides setting forth the
             1125      circumstance of the claimed privilege.
             1126          (iv) (A) A person is not excused from obeying a subpoena without just cause.
             1127          (B) A district court within the judicial district in which a person alleged to be guilty of
             1128      willful contempt of court or refusal to obey a subpoena is found or resides, upon application by
             1129      the party issuing the subpoena, may issue an order requiring the person to:
             1130          (I) appear before the issuing party; and
             1131          (II) (Aa) produce documentary evidence if so ordered; or
             1132          (Bb) give evidence regarding the matter in question.
             1133          (C) Failure to obey an order of the court may be punished by the court as contempt.
             1134          (g) (i) In a disciplinary proceeding hearing heard by a hearing examiner, the hearing
             1135      examiner shall prepare a report required by Subsection (3)(b)(ii) to the commission.
             1136          (ii) The report required by Subsection (3)(b)(ii) and this Subsection (5)(g) may not
             1137      recommend a penalty more severe than that initially sought by the department in the notice of
             1138      agency action.
             1139          (iii) A copy of the report required by Subsection (3)(b)(ii) and this Subsection (5)(g)
             1140      shall be served upon the respective parties.
             1141          (iv) The respondent and the department shall be given reasonable opportunity to file a


             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, employee,
             1183      or agent of a permittee, licensee, or certificate holder.
             1184          (b) If an officer, employee, or agent is found to have violated this title, the commission
             1185      may prohibit the officer, employee, or agent from serving, selling, distributing, manufacturing,
             1186      wholesaling, warehousing, or handling an alcoholic beverage in the course of acting as an
             1187      officer, employee, or agent with a permittee, licensee, or certificate holder under this title for a
             1188      period determined by the commission.
             1189          (8) Subject to Section 32A-1-119.5 :
             1190          (a) The department may initiate a disciplinary proceeding for an alleged violation of
             1191      this title or the rules of the commission against:
             1192          (i) a manufacturer, supplier, or importer of an alcoholic beverage; or
             1193          (ii) an officer, employee, agent, or representative of a person listed in Subsection
             1194      (8)(a)(i).
             1195          (b) (i) If the commission makes the finding described in Subsection (8)(b)(ii), the
             1196      commission may, in addition to other penalties prescribed by this title, order:
             1197          (A) the removal of the manufacturer's, supplier's, or importer's one or more products
             1198      from the department's sales list; and
             1199          (B) a suspension of the department's purchase of the one or more products described in
             1200      Subsection (8)(b)(i)(A) for a period determined by the commission.
             1201          (ii) The commission may take the action described in Subsection (8)(b)(i) if:
             1202          (A) a manufacturer, supplier, or importer of liquor, wine, heavy beer, or a flavored malt
             1203      beverage, or its officer, employee, agent, or representative violates this title; and


             1204          (B) the manufacturer, supplier, or importer:
             1205          (I) directly commits the violation; or
             1206          (II) solicits, requests, commands, encourages, or intentionally aids another to engage in
             1207      the violation.
             1208          (9) Subject to Section 32A-1-119.5 :
             1209          (a) The department may initiate a disciplinary proceeding against a brewer holding a
             1210      certificate of approval under Section 32A-8-101 for an alleged violation of this title or the rules
             1211      of the commission.
             1212          (b) If the commission makes a finding that the brewer holding a certificate of approval
             1213      violates this title or rules of the commission, the commission may take an action against the
             1214      brewer holding a certificate of approval that the commission could take against a licensee
             1215      including:
             1216          (i) suspension or revocation of the certificate of approval; and
             1217          (ii) imposition of a fine.
             1218          (10) (a) An adjudicative proceeding under this title, including a disciplinary
             1219      proceeding, is a civil action, notwithstanding whether at issue in the adjudicative proceeding is
             1220      a violation of statute that can be prosecuted criminally.
             1221          (b) Unless specifically adopted in this title, a procedure or principal that is applicable
             1222      to a criminal proceeding does not apply to an adjudicative proceeding permitted under this title
             1223      including:
             1224          (i) Title 76, Chapter 1, General Provisions;
             1225          (ii) Title 76, Chapter 2, Principles of Criminal Responsibility;
             1226          (iii) Title 76, Chapter 3, Punishments; and
             1227          (iv) Title 76, Chapter 4, Inchoate Offenses.
             1228          (c) (i) The burden of proof in an adjudicative proceeding under this title is by a
             1229      preponderance of the evidence.
             1230          (ii) If the subject of an adjudicative proceeding under this title asserts an affirmative
             1231      defense, the subject has the burden of proof to establish the affirmative defense by the
             1232      preponderance of the evidence.
             1233          (d) In an adjudicative proceeding under this title, to find a violation of this title the
             1234      commission:


             1235          (i) is required to determine whether the conduct that constitutes the violation occurred;
             1236      and
             1237          (ii) is not required to make a finding of knowledge or intent unless knowledge or intent
             1238      is expressly made an element of the violation by statute.
             1239          [(10)] (11) (a) If a respondent requests a disciplinary proceeding hearing, the hearing
             1240      held by the commission or a hearing examiner appointed by the commission shall proceed
             1241      formally in accordance with Sections 63G-4-204 through 63G-4-209 in a case where:
             1242          (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
             1243      and welfare;
             1244          (ii) the alleged violation involves:
             1245          (A) selling, serving, or otherwise furnishing an alcoholic product to a minor;
             1246          (B) attire, conduct, or entertainment prohibited by Part 6, Attire, Conduct, and
             1247      Entertainment Act;
             1248          (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
             1249      of the respondent;
             1250          (D) interfering or refusing to cooperate with:
             1251          (I) an authorized official of the department or the state in the discharge of the official's
             1252      duties in relation to the enforcement of this title; or
             1253          (II) a peace officer in the discharge of the peace officer's duties in relation to the
             1254      enforcement of this title;
             1255          (E) an unlawful trade practice under Sections 32A-12-601 through 32A-12-606 ;
             1256          (F) unlawful importation of an alcoholic product; or
             1257          (G) unlawful supply of liquor by a liquor industry member, as defined in Subsection
             1258      32A-12-601 (2), to a person other than the department or a military installation, except to the
             1259      extent permitted by this title; or
             1260          (iii) the department determines to seek in a disciplinary proceeding hearing:
             1261          (A) an administrative fine exceeding $3,000;
             1262          (B) a suspension of a license, permit, or certificate of approval of more than ten days;
             1263      or
             1264          (C) a revocation of a license, permit, or certificate of approval.
             1265          (b) If a respondent does not request a disciplinary proceeding hearing, a hearing shall


             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 the
             1298      day on which a nondepartment enforcement officer or agency completes an investigation that
             1299      finds a violation of this title.
             1300          (b) If the commission or department wants the right to initiate or maintain a
             1301      disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged in a
             1302      report described in Subsection (3)(a), the department shall notify a person listed in Subsections
             1303      32A-1-105 [(15)](18)(a)(i) through (vi) alleged by the report to have violated this title:
             1304          (i) by no later than eight business days of the day on which the department receives the
             1305      report described in Subsection (3)(a); and
             1306          (ii) that the commission or department may initiate or maintain a disciplinary
             1307      proceeding on the basis, in whole or in part, of the violation.
             1308          (4) If the commission or department wants the right to initiate or maintain a
             1309      disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged by
             1310      report of a department compliance officer, the department shall notify a person listed in
             1311      Subsections 32A-1-105 [(15)](18)(a)(i) through (vi) alleged by the report to have violated this
             1312      title:
             1313          (a) by no later than eight business days of the day on which the department compliance
             1314      officer completes an investigation that finds a violation of this title; and
             1315          (b) that the commission or department may initiate or maintain a disciplinary
             1316      proceeding on the basis, in whole or in part, of the violation.
             1317          (5) The notice described in Subsection (2), (3)(b), or (4) is not required with respect to
             1318      a person listed in Subsection 32A-1-105 [(15)](18)(a)(vii).
             1319          (6) (a) A notice required by Subsection (2), (3)(b), or (4) may be done orally, if after
             1320      the oral notification the department provides written notification.
             1321          (b) The written notification described in Subsection (6)(a) may be sent outside the time
             1322      periods required by this section.
             1323          (7) The department shall maintain a record of a notification required by Subsection (2),
             1324      (3)(b), or (4) that includes:
             1325          (a) the name of the person notified; and
             1326          (b) the date of the notification.
             1327          Section 10. Section 32A-1-304.5 is enacted to read:


             1328          32A-1-304.5. Verification of proof of age by certain club licensees.
             1329          (1) For purposes of this section, "applicable club licensee" means the following as
             1330      defined in Section 32A-5-101 :
             1331          (a) a dining club licensee; or
             1332          (b) a social club licensee.
             1333          (2) Notwithstanding any other provision of this part, an applicable club licensee shall
             1334      require that a person authorized to sell or otherwise handle an alcoholic beverage or alcoholic
             1335      product under the applicable club license verify proof of age as provided in this section.
             1336          (3) A person described in Subsection (2) is required to verify proof of age under this
             1337      section before an individual who appears to be 35 years of age or younger:
             1338          (a) gains admittance to the premises of a social club licensee; or
             1339          (b) procures an alcoholic beverage or alcoholic product on the premises of a dining
             1340      club licensee.
             1341          (4) To comply with Subsection (3), a person shall:
             1342          (a) request the individual present proof of age; and
             1343          (b) (i) verify the validity of the proof of age electronically under the verification
             1344      program created in Subsection (5); or
             1345          (ii) if the proof of age cannot be electronically verified as provided in Subsection
             1346      (4)(b)(i), request that the individual comply with a process established by the commission by
             1347      rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             1348          (5) The commission shall establish by rule made in accordance with Title 63G, Chapter
             1349      3, Utah Administrative Rulemaking Act, an electronic verification program that includes the
             1350      following:
             1351          (a) the specifications for the technology used by the applicable club licensee to
             1352      electronically verify proof of age, including that the technology display to the person described
             1353      in Subsection (2) no more than the following for the individual who presents the proof of age:
             1354          (i) the name;
             1355          (ii) the age;
             1356          (iii) the number assigned to the individual's proof of age by the issuing authority;
             1357          (iv) the birth date;
             1358          (v) the gender; and


             1359          (vi) the status and expiration date of the individual's proof of age; and
             1360          (b) the security measures that must be used by an applicable club licensee to ensure
             1361      that information obtained under this section is:
             1362          (i) used by the applicable club licensee only for purposes of verifying proof of age in
             1363      accordance with this section; and
             1364          (ii) retained by the applicable club licensee for seven days after the day on which the
             1365      applicable club licensee obtains the information.
             1366          (6) (a) An applicable club licensee may not disclose information obtained under this
             1367      section except as provided under this title.
             1368          (b) Information obtained under this section is considered a record for any purpose
             1369      under Section 32A-5-107 .
             1370          Section 11. Section 32A-1-603 is amended to read:
             1371           32A-1-603. Sexually oriented entertainer.
             1372          (1) Subject to the restrictions of this section, live entertainment is permitted on a
             1373      premises or at an event regulated by the commission.
             1374          (2) Notwithstanding Subsection (1), a licensee or permittee may not permit a person to:
             1375          (a) appear or perform in a state of nudity;
             1376          (b) perform or simulate an act of:
             1377          (i) sexual intercourse;
             1378          (ii) masturbation;
             1379          (iii) sodomy;
             1380          (iv) bestiality;
             1381          (v) oral copulation;
             1382          (vi) flagellation; or
             1383          (vii) a sexual act that is prohibited by Utah law; or
             1384          (c) touch, caress, or fondle the breast, buttocks, anus, or genitals.
             1385          (3) A sexually oriented entertainer may perform in a state of seminudity:
             1386          (a) only in:
             1387          (i) a tavern; or [class D private club; and]
             1388          (ii) a social club license premises; and
             1389          (b) only if:


             1390          (i) all windows, doors, and other apertures to the premises are darkened or otherwise
             1391      constructed to prevent anyone outside the premises from seeing the performance; and
             1392          (ii) the outside entrance doors of the premises remain unlocked.
             1393          (4) A sexually oriented entertainer may perform only upon a stage or in a designated
             1394      performance area that is:
             1395          (a) approved by the commission in accordance with rules made by the commission in
             1396      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             1397          (b) configured so as to preclude a patron from:
             1398          (i) touching the sexually oriented entertainer; or
             1399          (ii) placing any money or object on or within the costume or the person of the sexually
             1400      oriented entertainer; and
             1401          (c) configured so as to preclude the sexually oriented entertainer from touching a
             1402      patron.
             1403          (5) A sexually oriented entertainer may not touch a patron:
             1404          (a) during the sexually oriented entertainer's performance; or
             1405          (b) while the sexually oriented entertainer is dressed in performance attire or costume.
             1406          (6) A sexually oriented entertainer, while in the portion of the premises used by
             1407      patrons, must be dressed in opaque clothing which covers and conceals the sexually oriented
             1408      entertainer's performance attire or costume from the top of the breast to the knee.
             1409          (7) A patron may not be on the stage or in the performance area while a sexually
             1410      oriented entertainer is appearing or performing on the stage or in the performance area.
             1411          (8) A patron may not:
             1412          (a) touch a sexually oriented entertainer:
             1413          (i) during the sexually oriented entertainer's performance; or
             1414          (ii) while the sexually oriented entertainer is dressed in performance attire or costume;
             1415      or
             1416          (b) place money or any other object on or within the costume or the person of the
             1417      sexually oriented entertainer.
             1418          (9) A minor may not be on a premises described in Subsection (3) [when a sexually
             1419      oriented entertainer is performing on the premises].
             1420          (10) A person who appears or performs for the entertainment of patrons on a premises


             1421      or at an event regulated by the commission that is not a tavern or [class D private club] social
             1422      club licensee:
             1423          (a) may not appear or perform in a state of nudity or a state of seminudity; and
             1424          (b) may appear or perform in opaque clothing that completely covers the person's
             1425      genitals, pubic area, and anus if the covering:
             1426          (i) is not less than the following at its widest point:
             1427          (A) four inches coverage width in the front of the human body; and
             1428          (B) five inches coverage width in the back of the human body;
             1429          (ii) does not taper to less than one inch wide at the narrowest point; and
             1430          (iii) if covering a female, completely covers the breast below the top of the areola.
             1431          Section 12. Section 32A-2-103 is amended to read:
             1432           32A-2-103. Operational restrictions.
             1433          (1) (a) Liquor may not be sold from a state store except in a sealed package. [The]
             1434          (b) A sealed package may not be opened on the premises of [any] a state store.
             1435          (2) (a) An officer, agent, clerk, or employee of a state store may not consume or allow
             1436      to be consumed by any person [any] an alcoholic beverage on the premises of a state store.
             1437          (b) Violation of this Subsection (2) is a class B misdemeanor.
             1438          [(3) All liquor sold shall be in packages that are properly marked and labeled in
             1439      accordance with the rules adopted under this title.]
             1440          [(4)] (3) Liquor may not be sold except at prices fixed by the commission.
             1441          [(5)] (4) Liquor may not be sold, delivered, or furnished to [any] a:
             1442          (a) minor;
             1443          (b) person actually, apparently, or obviously intoxicated;
             1444          (c) known habitual drunkard; or
             1445          (d) known interdicted person.
             1446          [(6)] (5) Sale or delivery of liquor may not be made on or from the premises of [any] a
             1447      state store, nor may [any] a state store be kept open for the sale of liquor:
             1448          (a) on Sunday;
             1449          (b) on [any] a state or federal legal holiday; or
             1450          [(c) on any day on which any regular general election, regular primary election, or
             1451      statewide special election is held;]


             1452          [(d) on any day on which any municipal, local district, special service district, or school
             1453      election is held, but only within the boundaries of the municipality, local district, special
             1454      service district, or school district holding the election and only if the municipality, local
             1455      district, special service district or school district in which the election is being held notifies the
             1456      department at least 30 days prior to the date of the election; or]
             1457          [(e)] (c) except on days and during hours as the commission may direct by rule or
             1458      order.
             1459          [(7) Each] (6) A state store shall display in a prominent place in the store a sign in
             1460      large letters stating: "Warning: Driving under the influence of alcohol or drugs is a serious
             1461      crime that is prosecuted aggressively in Utah."
             1462          [(8)] (7) (a) A minor may not be admitted into, or be on the premises of a state store
             1463      unless accompanied by a person who is:
             1464          (i) 21 years of age or older; and
             1465          (ii) the minor's parent, legal guardian, or spouse.
             1466          (b) [Any] A state store employee that has reason to believe that a person who is on the
             1467      premises of a state store is under the age of 21 and is not accompanied by a person described in
             1468      Subsection [(8)] (7)(a) may:
             1469          (i) ask the suspected minor for proof of age;
             1470          (ii) ask the person who [accompanied] accompanies the suspected minor for proof of
             1471      age; and
             1472          (iii) ask the suspected minor or the person who [accompanied] accompanies the
             1473      suspected minor for proof of parental, guardianship, or spousal relationship.
             1474          (c) [Any] A state store employee shall refuse to sell liquor to the suspected minor and
             1475      to the person who [accompanied] accompanies the suspected minor into the state store if [they
             1476      fail] the suspected minor or person fails to provide [any of the] information specified in
             1477      Subsection [(8)] (7)(b).
             1478          (d) [Any] A state store employee shall require [the] a suspected minor and the person
             1479      who [accompanied] accompanies the suspected minor into the state store to immediately leave
             1480      the premises of the state store if [they fail] the suspected minor or person fails to provide [any
             1481      of the] information specified in Subsection [(8)] (7)(b).
             1482          Section 13. Section 32A-3-106 is amended to read:


             1483           32A-3-106. Operational restrictions.
             1484          (1) (a) A package agency may not be operated until a package agency agreement has
             1485      been entered into by the package agent and the department.
             1486          (b) The agreement shall state the conditions of operation by which the package agent
             1487      and the department are bound.
             1488          (c) If the package agent violates the conditions, terms, or covenants contained in the
             1489      agreement or violates any provisions of this title, the department may take whatever action
             1490      against the agent that is allowed by the package agency agreement.
             1491          (d) Actions against the package agent are governed solely by the agreement and may
             1492      include suspension or revocation of the agency.
             1493          (2) (a) A package agency may not purchase liquor from any person except from the
             1494      department.
             1495          (b) At the discretion of the department, liquor may be provided by the department to a
             1496      package agency for sale on consignment.
             1497          (3) The department may pay or otherwise remunerate a package agent on any basis
             1498      including sales or volume of business done by the agency.
             1499          (4) Liquor may not be sold from any package agency except in a sealed package. The
             1500      package may not be opened on the premises of a package agency.
             1501          [(5) All liquor sold shall be in packages that are properly marked and labeled in
             1502      accordance with the rules adopted under this title.]
             1503          [(6)] (5) A package agency may not display liquor or price lists in windows or
             1504      showcases visible to passersby.
             1505          [(7)] (6) (a) An officer, agent, clerk, or employee of a package agency may not
             1506      consume or allow to be consumed by any person any alcoholic beverage on the premises of a
             1507      package agency.
             1508          (b) Violation of this Subsection [(7)] (6) is a class B misdemeanor.
             1509          [(8)] (7) Liquor may not be sold except at prices fixed by the commission.
             1510          [(9)] (8) Liquor may not be sold, delivered, or furnished to any:
             1511          (a) minor;
             1512          (b) person actually, apparently, or obviously intoxicated;
             1513          (c) known habitual drunkard; or


             1514          (d) known interdicted person.
             1515          [(10)] (9) (a) Subject to [Subsection (10)(b)] the other provisions of this Subsection
             1516      (9), sale or delivery of liquor may not be made on or from the premises of [any] a package
             1517      agency nor may [any] a package agency be kept open for the sale of liquor:
             1518          (i) (A) on Sunday; or
             1519          (B) on a state or federal legal holiday; and
             1520          (ii) except on days and during hours as the commission may direct by rule or order.
             1521          (b) The restrictions in Subsection [(10)] (9)(a)(i) govern unless:
             1522          (i) the package agency is located at a winery licensed under Chapter 8, Manufacturing
             1523      Licenses;
             1524          (ii) the winery licensed under Chapter 8, Manufacturing Licenses, holds:
             1525          (A) a restaurant liquor license under Chapter 4, Part 1, Restaurant Liquor Licenses; or
             1526          (B) a limited restaurant license under Chapter 4, Part 3, Limited Restaurant Licenses;
             1527          (iii) the restaurant described in Subsection [(10)] (9)(b)(ii) is located at the winery;
             1528          (iv) the restaurant described in Subsection [(10)] (9)(b)(ii) sells wines produced at the
             1529      winery;
             1530          (v) the winery described in Subsection [(10)] (9)(b)(i):
             1531          (A) owns the restaurant; or
             1532          (B) operates the restaurant;
             1533          (vi) the package agency only sells wine produced at the winery; and
             1534          (vii) the package agency's days and hours of sale are the same as the days and hours of
             1535      sale at the restaurant described in Subsection [(10)] (9)(b)(ii).
             1536          [(c) (i) In addition to the requirements of Subsection (10)(a), the sale or delivery of
             1537      liquor may not be made on or from the premises of a package agency described in Subsection
             1538      (10)(c)(ii) and a package agency described in Subsection (10)(c)(ii) may not be open for the
             1539      sale of liquor until after the polls are closed:]
             1540          [(A) on a day on which is held:]
             1541          [(I) a regular general election;]
             1542          [(II) a regular primary election; or]
             1543          [(III) a statewide special election; or]
             1544          [(B) on a day on which is held a municipal, local district, special service district, or


             1545      school election if:]
             1546          [(I) the package agency is within the boundaries of the municipality, local district,
             1547      special service district, or school district holding the election; and]
             1548          [(II) the municipality, local district, special service district, or school district in which
             1549      the election is held notifies the department at least 30 days before the day on which the election
             1550      is held.]
             1551          [(ii) This Subsection (10)(c) applies to a package agency that contracts with the
             1552      department to sell liquor in a manner similar to a state store, whether or not the operator of the
             1553      package agency has a source of income that is not from the sale of liquor.]
             1554          [(iii) The commission may by rule made in accordance with Title 63G, Chapter 3, Utah
             1555      Administrative Rulemaking Act, define what constitutes a package agency that sells liquor "in
             1556      a manner similar to a state store."]
             1557          (c) (i) Subsection (9)(a)(i) does not apply to a package agency held by a resort licensee
             1558      if the package agency that contracts with the department to sell liquor does not sell liquor in a
             1559      manner similar to a state store.
             1560          (ii) The commission may by rule made in accordance with Title 63G, Chapter 3, Utah
             1561      Administrative Rulemaking Act, define what constitutes a package agency that sells liquor "in
             1562      a manner similar to a state store."
             1563          [(11)] (10) The package agency certificate issued by the commission shall be
             1564      permanently posted in a conspicuous place in the package agency.
             1565          [(12) Each] (11) A package agent shall display in a prominent place in the package
             1566      agency a sign in large letters stating: "Warning: Driving under the influence of alcohol or drugs
             1567      is a serious crime that is prosecuted aggressively in Utah."
             1568          [(13)] (12) (a) A package agency may not close or cease operation for a period longer
             1569      than 72 hours, unless:
             1570          (i) the package agency notifies the department in writing at least seven days before the
             1571      closing; and
             1572          (ii) the closure or cessation of operation is first approved by the department.
             1573          (b) Notwithstanding Subsection [(13)] (12)(a), in the case of emergency closure,
             1574      immediate notice of closure shall be made to the department by telephone.
             1575          (c) (i) The department may authorize a closure or cessation of operation for a period


             1576      not to exceed 60 days.
             1577          (ii) The department may extend the initial period an additional 30 days upon written
             1578      request of the package agency and upon a showing of good cause.
             1579          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             1580      commission approval.
             1581          (d) The notice required by Subsection [(13)] (12)(a) shall include:
             1582          (i) the dates of closure or cessation of operation;
             1583          (ii) the reason for the closure or cessation of operation; and
             1584          (iii) the date on which the agency will reopen or resume operation.
             1585          (e) Failure of the agency to provide notice and to obtain department authorization prior
             1586      to closure or cessation of operation shall result in an automatic termination of the package
             1587      agency contract effective immediately.
             1588          (f) Failure of the agency to reopen or resume operation by the approved date shall
             1589      result in an automatic termination of the package agency contract effective on that date.
             1590          [(14)] (13) Liquor may not be stored or sold in any place other than as designated in the
             1591      package agent's application, unless the package agent first applies for and receives approval
             1592      from the department for a change of location within the package agency premises.
             1593          [(15)] (14) (a) Except to the extent authorized by commission rule, a minor may not be
             1594      admitted into, or be on the premises of a package agency unless accompanied by a person who
             1595      is:
             1596          (i) 21 years of age or older; and
             1597          (ii) the minor's parent, legal guardian, or spouse.
             1598          (b) [Any] A package agent or employee of the package agency that has reason to
             1599      believe that a person who is on the premises of a package agency store is under the age of 21
             1600      and is not accompanied by a person described in Subsection [(15)] (14)(a) may:
             1601          (i) ask the suspected minor for proof of age;
             1602          (ii) ask the person who [accompanied] accompanies the suspected minor for proof of
             1603      age; and
             1604          (iii) ask the suspected minor or the person who [accompanied] accompanies the
             1605      suspected minor for proof of parental, guardianship, or spousal relationship.
             1606          (c) [Any] A package agent or employee of a package agency shall refuse to sell liquor


             1607      to the suspected minor and to the person who [accompanied] accompanies the suspected minor
             1608      into the package agency if [they fail] the minor or person fails to provide any [of the]
             1609      information specified in Subsection [(15)] (14)(b).
             1610          (d) [Any] A package agent or employee of a package agency shall require the suspected
             1611      minor and the person who [accompanied] accompanies the suspected minor into the package
             1612      agency to immediately leave the premises of the package agency if [they fail] the minor or
             1613      person fails to provide [any of the] information specified in Subsection [(15)] (14)(b).
             1614          [(16)] (15) A package agency may not transfer its operations from one location to
             1615      another location without prior written approval of the commission.
             1616          [(17)] (16) (a) A person, having been granted a package agency, may not sell, transfer,
             1617      assign, exchange, barter, give, or attempt in any way to dispose of the package agency to any
             1618      other person, whether for monetary gain or not.
             1619          (b) A package agency has no monetary value for the purpose of any type of disposition.
             1620          Section 14. Section 32A-4-101 is amended to read:
             1621           32A-4-101. Commission's power to grant licenses -- Limitations.
             1622          (1) Before a restaurant may sell or allow the consumption of liquor on its premises, it
             1623      shall first obtain a license from the commission as provided in this part.
             1624          (2) The commission may [issue] grant restaurant liquor licenses for the purpose of
             1625      establishing restaurant liquor outlets at places and in numbers it considers proper for the
             1626      storage, sale, and consumption of liquor on premises operated as public restaurants.
             1627          (3) (a) Subject to the other provisions of this Subsection (3) and Subsection
             1628      32A-4a-201 (2), the total number of restaurant liquor licenses may not at any time aggregate
             1629      more than that number determined by dividing the population of the state by 5,200.
             1630          (b) For purposes of this Subsection (3), population shall be determined by:
             1631          (i) the most recent United States decennial or special census; or
             1632          (ii) another population determination made by the United States or state governments.
             1633          (c) (i) The commission may [issue] grant seasonal restaurant liquor licenses established
             1634      in areas the commission considers necessary.
             1635          (ii) A seasonal restaurant liquor license shall be for a period of six consecutive months.
             1636          (iii) A restaurant liquor license [issued] granted for operation during a summer time
             1637      period is known as a "Seasonal A" restaurant liquor license. The period of operation for a


             1638      "Seasonal A" restaurant liquor license shall:
             1639          (A) begin on May 1; and
             1640          (B) end on October 31.
             1641          (iv) A restaurant liquor license [issued] granted for operation during a winter time
             1642      period is known as a "Seasonal B" restaurant liquor license. The period of operation for a
             1643      "Seasonal B" restaurant liquor license shall:
             1644          (A) begin on November 1; and
             1645          (B) end on April 30.
             1646          (v) In determining the number of restaurant liquor licenses that the commission may
             1647      issue under this section:
             1648          (A) a seasonal license is counted as [1/2] one-half of one restaurant liquor license; and
             1649          (B) each "Seasonal A" license shall be paired with a "Seasonal B" license.
             1650          (d) (i) If the location, design, and construction of a hotel may require more than one
             1651      restaurant liquor sales location within the hotel to serve the public convenience, the
             1652      commission may authorize the sale of liquor at as many as three restaurant locations within the
             1653      hotel under one license if:
             1654          (A) the hotel has a minimum of 150 guest rooms; and
             1655          (B) all locations under the license are:
             1656          (I) within the same hotel facility; and
             1657          (II) on premises that are managed or operated and owned or leased by the licensee.
             1658          (ii) A facility other than a hotel shall have a separate restaurant liquor license for each
             1659      restaurant where liquor is sold.
             1660          (4) (a) Except as otherwise provided in this Subsection (4)[(b), (c), or (d)], the
             1661      premises of a restaurant liquor license may not be established:
             1662          (i) within 600 feet of a community location, as measured by the method in Subsection
             1663      (4)[(e)](f);
             1664          (ii) within 200 feet of a community location, measured in a straight line from the
             1665      nearest entrance of the proposed outlet to the nearest property boundary of the community
             1666      location.
             1667          (b) With respect to the establishment of a restaurant liquor license, the commission
             1668      may authorize a variance to reduce the proximity requirement of Subsection (4)(a)(i) if:


             1669          (i) the local authority grants its written consent to the variance;
             1670          (ii) the commission finds that alternative locations for establishing a restaurant liquor
             1671      license in the community are limited;
             1672          (iii) a public hearing is held in the city, town, or county, and where practical in the
             1673      neighborhood concerned;
             1674          (iv) after giving full consideration to all of the attending circumstances and the policies
             1675      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1676      restaurant liquor license would not be detrimental to the public health, peace, safety, and
             1677      welfare of the community; and
             1678          (v) (A) the community location governing authority gives its written consent to the
             1679      variance; or
             1680          (B) when written consent is not given by the community location governing authority,
             1681      the commission finds that the applicant has established that:
             1682          (I) there is substantial unmet public demand to consume alcohol in a public setting
             1683      within the geographic boundary of the local authority in which the restaurant is to be located;
             1684          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1685      described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a restaurant
             1686      liquor license; and
             1687          (III) there is no reasonably viable alternative location within the geographic boundary
             1688      of the local authority in which the restaurant is to be located for establishing a restaurant liquor
             1689      license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
             1690          (c) With respect to the establishment of a restaurant liquor license, the commission
             1691      may authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
             1692          (i) the community location at issue is:
             1693          (A) a public library; or
             1694          (B) a public park;
             1695          (ii) the local authority grants its written consent to the variance;
             1696          (iii) the commission finds that alternative locations for establishing a restaurant liquor
             1697      license in the community are limited;
             1698          (iv) a public hearing is held in the city, town, or county, and where practical in the
             1699      neighborhood concerned;


             1700          (v) after giving full consideration to all of the attending circumstances and the policies
             1701      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             1702      restaurant liquor license would not be detrimental to the public health, peace, safety, and
             1703      welfare of the community; and
             1704          (vi) (A) the community location governing authority gives its written consent to the
             1705      variance; or
             1706          (B) when written consent is not given by the community location governing authority,
             1707      the commission finds that the applicant has established that:
             1708          (I) there is substantial unmet public demand to consume alcohol in a public setting
             1709      within the geographic boundary of the local authority in which the restaurant is to be located;
             1710          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             1711      described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a restaurant
             1712      liquor license; and
             1713          (III) there is no reasonably viable alternative location within the geographic boundary
             1714      of the local authority in which the restaurant is to be located for establishing a restaurant liquor
             1715      license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
             1716          (d) With respect to the premises of a restaurant liquor license [issued] granted by the
             1717      commission that undergoes a change of ownership, the commission may waive or vary the
             1718      proximity requirements of Subsection (4)(a) in considering whether to grant a restaurant liquor
             1719      license to the new owner of the premises if:
             1720          (i) (A) the premises previously received a variance reducing the proximity requirement
             1721      of Subsection (4)(a)(i); or
             1722          (B) the premises received a variance reducing the proximity requirement of Subsection
             1723      (4)(a)(ii) on or before May 4, 2008; or
             1724          (ii) a variance from proximity requirements was otherwise allowed under this title.
             1725          (e) With respect to the premises of a restaurant liquor license granted by the
             1726      commission that undergoes a change of ownership, the commission shall waive or vary the
             1727      proximity requirements of Subsection (4)(a) in considering whether to grant a restaurant liquor
             1728      license to the new owner of the premises if:
             1729          (i) when a restaurant liquor license was granted to a previous owner, the premises met
             1730      the proximity requirements of Subsection (4)(a);


             1731          (ii) the premises has had a restaurant liquor license at all times since the restaurant
             1732      liquor license described in Subsection (4)(e)(i) was granted without a variance; and
             1733          (iii) the community location located within the proximity requirements of Subsection
             1734      (4)(a) after the day on which the restaurant liquor license described in Subsection (4)(e)(i) was
             1735      granted.
             1736          [(e)] (f) The 600 foot limitation described in Subsection (4)(a)(i) is measured from the
             1737      nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
             1738      community location.
             1739          (5) (a) Nothing in this section prevents the commission from considering the proximity
             1740      of any educational, religious, and recreational facility, or any other relevant factor in reaching a
             1741      decision on a proposed location.
             1742          (b) For purposes of this Subsection (5), "educational facility" includes:
             1743          (i) a nursery school;
             1744          (ii) an infant day care center; and
             1745          (iii) a trade and technical school.
             1746          Section 15. Section 32A-4-102 is amended to read:
             1747           32A-4-102. Application and renewal requirements.
             1748          (1) A person seeking a restaurant liquor license under this part shall file a written
             1749      application with the department, in a form prescribed by the department. It shall be
             1750      accompanied by:
             1751          (a) a nonrefundable $250 application fee;
             1752          (b) an initial license fee of $1,750, which is refundable if a license is not granted;
             1753          (c) written consent of the local authority;
             1754          (d) a copy of the applicant's current business license;
             1755          (e) evidence of proximity to any community location, with proximity requirements
             1756      being governed by Section 32A-4-101 ;
             1757          (f) a bond as specified by Section 32A-4-105 ;
             1758          (g) a floor plan of the restaurant, including consumption areas and the area where the
             1759      applicant proposes to keep, store, and sell liquor;
             1760          (h) evidence that the restaurant is carrying public liability insurance in an amount and
             1761      form satisfactory to the department;


             1762          (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
             1763      [$500,000] $1,000,000 per occurrence and [$1,000,000] $2,000,000 in the aggregate;
             1764          (j) a signed consent form stating that the restaurant will permit any authorized
             1765      representative of the commission, department, or any law enforcement officer unrestricted right
             1766      to enter the restaurant;
             1767          (k) in the case of an applicant that is a partnership, corporation, or limited liability
             1768      company, proper verification evidencing that the person or persons signing the restaurant
             1769      application are authorized to so act on behalf of the partnership, corporation, or limited liability
             1770      company; and
             1771          (l) any other information the commission or department may require.
             1772          (2) (a) [All] A restaurant liquor [licenses expire] license expires on October 31 of each
             1773      year.
             1774          (b) A person desiring to renew the person's restaurant liquor license shall by no later
             1775      than September 30 submit:
             1776          (i) a completed renewal application to the department; and
             1777          (ii) a renewal fee in the following amount:
             1778          Gross Cost of Liquor in Previous License Year for the Licensee        Renewal Fee
             1779          under $5,000                                    $750
             1780          equals or exceeds $5,000 but less than $10,000                $900
             1781          equals or exceeds $10,000 but less than $25,000                $1,250
             1782          equals or exceeds $25,000                            $1,500
             1783          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             1784      the license effective on the date the existing license expires.
             1785          (d) A renewal application shall be in a form as prescribed by the department.
             1786          (3) To ensure compliance with Subsection 32A-4-106 (25), the commission may
             1787      suspend or revoke a restaurant liquor license if the restaurant liquor licensee does not
             1788      immediately notify the department of any change in:
             1789          (a) ownership of the restaurant;
             1790          (b) for a corporate owner, the:
             1791          (i) corporate officers or directors; or
             1792          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the


             1793      corporation; or
             1794          (c) for a limited liability company:
             1795          (i) managers; or
             1796          (ii) members owning at least 20% of the limited liability company.
             1797          Section 16. Section 32A-4-106 is amended to read:
             1798           32A-4-106. Operational restrictions.
             1799          A person granted a restaurant liquor license and the employees and management
             1800      personnel of the restaurant shall comply with the following conditions and requirements.
             1801      Failure to comply may result in a suspension or revocation of the restaurant liquor license or
             1802      other disciplinary action taken against individual employees or management personnel.
             1803          (1) (a) Liquor may not be purchased by a restaurant liquor licensee except from a state
             1804      store or package agency.
             1805          (b) Liquor purchased from a state store or package agency may be transported by the
             1806      restaurant liquor licensee from the place of purchase to the licensed premises.
             1807          (c) Payment for liquor shall be made in accordance with rules established by the
             1808      commission.
             1809          (2) A restaurant liquor licensee may sell or provide a primary spirituous liquor only in
             1810      a quantity not to exceed 1.5 ounces per beverage dispensed through a calibrated metered
             1811      dispensing system approved by the department in accordance with commission rules adopted
             1812      under this title, except that:
             1813          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1814      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1815      restrictions:
             1816          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             1817      a primary spirituous liquor;
             1818          (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
             1819          (iii) the restaurant liquor licensee shall designate a location where flavorings are stored
             1820      on the floor plan provided to the department; and
             1821          (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
             1822          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1823      system if used:


             1824          (i) as a flavoring on a dessert; and
             1825          (ii) in the preparation of a flaming food dish, drink, or dessert;
             1826          (c) a restaurant patron may have no more than 2.5 ounces of spirituous liquor at a time;
             1827      and
             1828          (d) a restaurant patron may have no more than one spirituous liquor drink at a time
             1829      before the patron.
             1830          (3) (a) (i) Wine may be sold and served by the glass or in an individual portion not to
             1831      exceed five ounces per glass or individual portion.
             1832          (ii) An individual portion of wine may be served to a patron in more than one glass as
             1833      long as the total amount of wine does not exceed five ounces.
             1834          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             1835      Subsection (7)[(e)](g).
             1836          (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
             1837      fixed by the commission to a table of four or more persons.
             1838          (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
             1839      fixed by the commission to a table of less than four persons.
             1840          (c) A wine service may be performed and a service charge assessed by a restaurant
             1841      liquor licensee as authorized by commission rule for wine purchased at the restaurant.
             1842          (4) (a) Heavy beer may be served in an original container not exceeding one liter at a
             1843      price fixed by the commission.
             1844          (b) A flavored malt beverage may be served in an original container not exceeding one
             1845      liter at a price fixed by the commission.
             1846          (c) A service charge may be assessed by a restaurant liquor licensee as authorized by
             1847      commission rule for heavy beer or a flavored malt beverage purchased at the restaurant.
             1848          (5) (a) (i) Subject to Subsection (5)(a)(ii), a restaurant liquor licensee may sell beer for
             1849      on-premise consumption:
             1850          (A) in an open container; and
             1851          (B) on draft.
             1852          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             1853      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             1854      container that exceeds one liter.


             1855          (b) A restaurant liquor licensee that sells beer pursuant to Subsection (5)(a):
             1856          (i) may do so without obtaining a separate on-premise beer retailer license from the
             1857      commission; and
             1858          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             1859      Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
             1860      inconsistent with or less restrictive than the operational restrictions under this part.
             1861          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             1862      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the
             1863      restaurant's:
             1864          (i) state liquor license; and
             1865          (ii) alcoholic beverage license issued by the local authority.
             1866          (6) An alcoholic beverage may not be stored, served, or sold in a place other than as
             1867      designated in the restaurant liquor licensee's application, unless the restaurant liquor licensee
             1868      first applies for and receives approval from the department for a change of location within the
             1869      restaurant.
             1870          (7) (a) (i) As used in this Subsection (7), and subject to Subsection (7)(a)(ii),
             1871      "grandfathered bar structure" means a bar structure in a restaurant that:
             1872          (A) as of May 11, 2009 has:
             1873          (I) (Aa) patron seating at the bar structure;
             1874          (Bb) a partition at one or more locations on the bar structure that is along the width of
             1875      the bar structure; and
             1876          (Cc) facilities for the dispensing or storage of an alcoholic beverage on the portion of
             1877      the bar structure that is separated by the partition described in Subsection (7)(a)(i)(A)(I)(Bb); or
             1878          (II) (Aa) patron seating at the bar structure;
             1879          (Bb) a partition at one or more locations on the bar structure that is along the length of
             1880      the bar structure; and
             1881          (Cc) facilities for the dispensing or storage of an alcoholic beverage:
             1882          (Ii) on the portion of the bar structure that is separated by a partition described in
             1883      Subsection (7)(a)(i)(A)(II)(Bb); or
             1884          (IIii) adjacent to the bar structure in a manner visible to a patron sitting at the bar
             1885      structure;


             1886          (B) is not operational as of May 12, 2009 and:
             1887          (I) an applicant for a restaurant liquor license under this chapter:
             1888          (Aa) has as of May 12, 2009, a building permit to construct the restaurant;
             1889          (Bb) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             1890      defined by rule made by the commission in accordance with Title 63G, Chapter 3, Utah
             1891      Administrative Rulemaking Act; and
             1892          (Cc) is granted a restaurant liquor license by the commission under this chapter by no
             1893      later than December 31, 2009; and
             1894          (II) the restaurant described in Subsection (7)(a)(i)(C)(I) has a bar structure described
             1895      in Subsection (7)(a)(i)(A);
             1896          (C) as of May 12, 2009, has no patron seating at the bar structure; or
             1897          (D) is not operational as of May 12, 2009 and:
             1898          (I) an applicant for a restaurant liquor license under this chapter:
             1899          (Aa) has as of May 12, 2009, a building permit to construct the restaurant;
             1900          (Bb) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             1901      defined by rule made by the commission in accordance with Title 63G, Chapter 3, Utah
             1902      Administrative Rulemaking Act; and
             1903          (Cc) is granted a restaurant liquor license by the commission under this chapter by no
             1904      later than December 31, 2009; and
             1905          (II) the restaurant described in Subsection (7)(a)(i)(D)(I) has a bar structure described
             1906      in Subsection (7)(a)(i)(C).
             1907          (ii) "Grandfathered bar structure" does not include a grandfathered bar structure
             1908      described in Subsection (7)(a)(i) on or after the day on which a restaurant remodels the
             1909      grandfathered bar structure, as defined by rule made by the commission in accordance with
             1910      Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             1911          (iii) Subject to Subsection (7)(a)(ii), a grandfathered bar structure remains a
             1912      grandfathered bar structure notwithstanding whether the restaurant undergoes a change of
             1913      ownership.
             1914          [(7) (a)] (b) (i) A patron may only make an alcoholic beverage purchase in the
             1915      restaurant from and be served by a person employed, designated, and trained by the restaurant
             1916      liquor licensee to sell and serve an alcoholic beverage.


             1917          (ii) Only a person employed, designated, and trained by a restaurant liquor licensee
             1918      may sell, serve, or deliver an alcoholic beverage to a patron of a restaurant.
             1919          [(ii)] (iii) Notwithstanding Subsection (7)[(a)](b)(i) or (ii), a patron who purchases
             1920      bottled wine from an employee of the restaurant or carries bottled wine onto the premises of
             1921      the restaurant pursuant to Subsection (14) may thereafter serve wine from the bottle to the
             1922      patron or others at the patron's table.
             1923          [(b) An alcoholic beverage shall be delivered by a server to the patron.]
             1924          (c) [An] A patron may consume an alcoholic beverage [may] only [be consumed]:
             1925          (i) at:
             1926          (A) the patron's table [or];
             1927          (B) a counter; or
             1928          (C) a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B); and
             1929          (ii) where food is served.
             1930          (d) [An] (i) An alcoholic beverage may not be served to or consumed by a patron at a
             1931      bar structure that is not a grandfathered bar structure described in Subsection (7)(a)(i)(A) or
             1932      (B).
             1933          (ii) A patron who is 21 years of age or older may:
             1934          (A) sit at a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B);
             1935          (B) be served an alcoholic beverage at a grandfathered bar structure described in
             1936      Subsection (7)(a)(i)(A) or (B); and
             1937          (C) consume an alcoholic beverage at a grandfathered bar structure described in
             1938      Subsection (7)(a)(i)(A) or (B).
             1939          (iii) Except as provided in Subsection (7)(d)(iv), a restaurant liquor licensee may not
             1940      permit a minor to, and a minor may not:
             1941          (A) sit at a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B); or
             1942          (B) consume food or beverages at a bar structure described in Subsection (7)(a)(i)(A)
             1943      or (B).
             1944          (iv) (A) A minor may be at a grandfathered bar structure described in Subsection
             1945      (7)(a)(i)(A) or (B) if the minor is employed by a restaurant liquor licensee:
             1946          (I) as provided in Subsection (16)(b); or
             1947          (II) to perform maintenance and cleaning services during an hour when the restaurant


             1948      liquor licensee is not open for business.
             1949          (B) A minor may momentarily pass by a grandfathered bar structure described in
             1950      Subsection (7)(a)(i)(A) or (B) without remaining or sitting at the bar structure en route to an
             1951      area of a restaurant liquor licensee's premises in which the minor is permitted to be.
             1952          (e) Except as provided in Subsection (14), a restaurant liquor licensee may dispense an
             1953      alcoholic beverage only:
             1954          (i) from:
             1955          (A) a grandfathered bar structure;
             1956          (B) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
             1957      the grandfathered bar structure if that area is used to dispense an alcoholic beverage or
             1958      alcoholic product as of May 12, 2009; or
             1959          (C) an area that is:
             1960          (I) separated from an area for the consumption of food by a restaurant patron by a solid,
             1961      opaque, permanent structural barrier such that the facilities for the dispensing or storage of an
             1962      alcoholic beverage or alcoholic product are:
             1963          (Aa) not readily visible to a restaurant patron; and
             1964          (Bb) not accessible by a restaurant patron; and
             1965          (II) apart from an area used:
             1966          (Aa) for dining;
             1967          (Bb) for staging; or
             1968          (Cc) as a lobby or waiting area;
             1969          (ii) if the restaurant liquor licensee uses an alcoholic beverage or alcoholic product that
             1970      is:
             1971          (A) stored in an area described in Subsection (7)(e)(i); or
             1972          (B) on the premises of the restaurant liquor licensee in an area not described in
             1973      Subsection (7)(e)(i) if:
             1974          (I) immediately before the alcoholic beverage or alcoholic product is dispensed it is in
             1975      an unopened package;
             1976          (II) the unopened package is taken to an area described in Subsection (7)(e)(i) before it
             1977      is opened; and
             1978          (III) once opened, the package is kept in an area described in Subsection (7)(e)(i); and


             1979          (iii) if any instrument or equipment used to dispense an alcoholic beverage or alcoholic
             1980      product is located in an area described in Subsection (7)(e)(i).
             1981          (f) (i) A restaurant liquor licensee that has a grandfathered bar structure may receive a
             1982      credit for purchases from a state store or package agency if:
             1983          (A) the restaurant liquor licensee completes a remodel of the grandfathered bar
             1984      structure by no later than December 31, 2011;
             1985          (B) the remodeling described in Subsection (7)(f)(i)(A) results in the restaurant
             1986      engaging in an activity described in Subsection (7)(e) only in an area described in Subsection
             1987      (7)(e)(i)(C);
             1988          (C) the restaurant liquor licensee requests the credit by no later than April 1, 2012;
             1989          (D) the department determines that the restaurant liquor licensee has completed a
             1990      remodel described in Subsections (7)(f)(i)(A) and (B); and
             1991          (E) the department authorizes the credit, including the amount of the credit under
             1992      Subsection (7)(f)(ii), on the basis that:
             1993          (I) the restaurant liquor licensee complied with this Subsection (7); and
             1994          (II) the aggregate of all credits authorized under this Subsection (7)(f) before the
             1995      current authorization does not exceed $1,090,000.
             1996          (ii) The amount of the credit described in this Subsection (7)(f) is the lesser of:
             1997          (A) the actual costs of the remodel as evidenced by receipts, copies of which are
             1998      provided to the department as part of the request for the credit; or
             1999          (B) $30,000.
             2000          (iii) For a restaurant liquor licensee, a credit under this Subsection (7)(f):
             2001          (A) begins on the day on which the department authorizes the credit under Subsection
             2002      (7)(f)(i); and
             2003          (B) ends the day on which the restaurant liquor licensee uses all of the credit.
             2004          (iv) The department shall by contract provide for how a package agency accounts for a
             2005      credit purchase made at the package agency by a restaurant liquor licensee under this
             2006      Subsection (7)(f).
             2007          (v) (A) Notwithstanding the other provisions of this Subsection (7)(f), the department
             2008      may not authorize a credit if the aggregate of all credits authorized under this Subsection (7)(f)
             2009      before the authorization exceeds $1,090,000.


             2010          (B) The department shall authorize credits in the order that the department receives a
             2011      request described in Subsection (7)(f)(i)(C) from a restaurant liquor licensee requesting a credit
             2012      under this Subsection (7)(f).
             2013          [(e)] (g) A restaurant patron may have no more than two alcoholic beverages of any
             2014      kind at a time before the patron, subject to the limitation in Subsection (2)(d).
             2015          (8) (a) [The] A liquor storage area shall remain locked at all times other than those
             2016      hours and days when liquor sales are authorized by law.
             2017          (b) A restaurant liquor licensee shall store an alcoholic beverage or alcoholic product
             2018      in a storage area described in Subsection (7)(e)(i).
             2019          (9) (a) Liquor may not be sold, offered for sale, served, or otherwise furnished at a
             2020      restaurant of a restaurant liquor licensee on any day after 12 midnight or before 12 noon.
             2021          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             2022      Licenses, for on-premise beer licensees.
             2023          (10) An alcoholic beverage may not be sold except in connection with an order for
             2024      food prepared, sold, and served at the restaurant.
             2025          (11) An alcoholic beverage may not be sold, served, or otherwise furnished to a:
             2026          (a) minor;
             2027          (b) person actually, apparently, or obviously intoxicated;
             2028          (c) known habitual drunkard; or
             2029          (d) known interdicted person.
             2030          (12) (a) (i) Liquor may be sold only at a price fixed by the commission.
             2031          (ii) Liquor may not be sold at a discount price on any date or at any time.
             2032          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             2033      beverage to the restaurant liquor licensee.
             2034          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             2035      over consumption or intoxication.
             2036          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             2037      hours of a restaurant liquor licensee's business day such as a "happy hour."
             2038          (e) More than one alcoholic beverage may not be sold or served for the price of a single
             2039      alcoholic beverage.
             2040          (f) An indefinite or unlimited number of alcoholic beverages during a set period may


             2041      not be sold or served for a fixed price.
             2042          (g) A restaurant liquor licensee may not engage in a public promotion involving or
             2043      offering free an alcoholic beverage to the general public.
             2044          (13) An alcoholic beverage may not be purchased for a patron of a restaurant by:
             2045          (a) the restaurant liquor licensee; or
             2046          (b) an employee or agent of the restaurant liquor licensee.
             2047          (14) (a) A person may not bring onto the premises of a restaurant liquor licensee an
             2048      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             2049      discretion of the restaurant liquor licensee, bottled wine onto the premises of a restaurant liquor
             2050      licensee for on-premise consumption.
             2051          (b) Except bottled wine under Subsection (14)(a), a restaurant liquor licensee or an
             2052      officer, manager, employee, or agent of the restaurant liquor licensee may not allow:
             2053          (i) a person to bring onto the restaurant premises an alcoholic beverage for on-premise
             2054      consumption; or
             2055          (ii) consumption of an alcoholic beverage described in this Subsection (14) on the
             2056      restaurant liquor licensee's premises.
             2057          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             2058      or other representative of the restaurant liquor licensee upon entering the restaurant.
             2059          (d) A wine service may be performed and a service charge assessed by a restaurant
             2060      liquor licensee as authorized by commission rule for wine carried in by a patron.
             2061          (15) (a) Except as provided in Subsection (15)(b), a restaurant liquor licensee or an
             2062      employee of the restaurant liquor licensee may not permit a restaurant patron to carry from the
             2063      restaurant premises an open container that:
             2064          (i) is used primarily for drinking purposes; and
             2065          (ii) contains an alcoholic beverage.
             2066          (b) Notwithstanding Subsection (15)(a), a restaurant patron may remove from the
             2067      restaurant the unconsumed contents of a bottle of wine purchased in the restaurant, or brought
             2068      onto the premises of the restaurant in accordance with Subsection (14), only if the bottle is
             2069      recorked or recapped before removal.
             2070          (16) (a) A restaurant liquor licensee may not employ a minor to sell or dispense an
             2071      alcoholic beverage.


             2072          (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
             2073      employed to enter the sale at a cash register or other sales recording device.
             2074          (17) An employee of a restaurant liquor licensee, while on duty, may not:
             2075          (a) consume an alcoholic beverage; or
             2076          (b) be intoxicated.
             2077          (18) A charge or fee made in connection with the sale, service, or consumption of liquor
             2078      may be stated in food or alcoholic beverage menus including:
             2079          (a) a set-up charge;
             2080          (b) a service charge; or
             2081          (c) a chilling fee.
             2082          (19) A restaurant liquor licensee shall display in a prominent place in the restaurant:
             2083          (a) the liquor license that is [issued] granted by the department;
             2084          (b) a list of the types and brand names of liquor being served through its calibrated
             2085      metered dispensing system; and
             2086          (c) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             2087      drugs is a serious crime that is prosecuted aggressively in Utah."
             2088          (20) A restaurant liquor licensee may not on the premises of the restaurant liquor
             2089      licensee:
             2090          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             2091      Chapter 10, Part 11, Gambling;
             2092          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             2093      Part 11, Gambling; or
             2094          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             2095      the risking of something of value for a return or for an outcome when the return or outcome is
             2096      based upon an element of chance, excluding the playing of an amusement device that confers
             2097      only an immediate and unrecorded right of replay not exchangeable for value.
             2098          (21) (a) A restaurant liquor licensee shall maintain an expense ledger or record showing
             2099      in detail:
             2100          (i) quarterly expenditures made separately for:
             2101          (A) malt or brewed beverages;
             2102          (B) set-ups;


             2103          (C) liquor;
             2104          (D) food; and
             2105          (E) all other items required by the department; and
             2106          (ii) sales made separately for:
             2107          (A) malt or brewed beverages;
             2108          (B) set-ups;
             2109          (C) food; and
             2110          (D) all other items required by the department.
             2111          (b) A restaurant liquor licensee shall keep a record required by Subsection (21)(a):
             2112          (i) in a form approved by the department; and
             2113          (ii) current for each three-month period.
             2114          (c) An expenditure shall be supported by:
             2115          (i) a delivery ticket;
             2116          (ii) an invoice;
             2117          (iii) a receipted bill;
             2118          (iv) a canceled check;
             2119          (v) a petty cash voucher; or
             2120          (vi) other sustaining datum or memorandum.
             2121          (d) In addition to a ledger or record required under Subsection (21)(a), a restaurant
             2122      liquor licensee shall maintain accounting and other records and documents as the department
             2123      may require.
             2124          (e) A restaurant liquor licensee or person acting for the restaurant, who knowingly
             2125      forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
             2126      other document of the restaurant that is required to be made, maintained, or preserved by this
             2127      title or the rules of the commission for the purpose of deceiving the commission or the
             2128      department, or an official or employee of the commission or department, is subject to:
             2129          (i) the suspension or revocation of the restaurant's liquor license; and
             2130          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2131          (22) (a) A restaurant liquor licensee may not close or cease operation for a period
             2132      longer than 240 hours, unless:
             2133          (i) the restaurant liquor licensee notifies the department in writing at least seven days


             2134      before the day on which the restaurant liquor licensee closes or ceases operation; and
             2135          (ii) the closure or cessation of operation is first approved by the department.
             2136          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the
             2137      restaurant liquor licensee shall immediately notify the department by telephone.
             2138          (c) (i) The department may authorize a closure or cessation of operation for a period
             2139      not to exceed 60 days.
             2140          (ii) The department may extend the initial period an additional 30 days upon:
             2141          (A) written request of the restaurant liquor licensee; and
             2142          (B) a showing of good cause.
             2143          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             2144      commission approval.
             2145          (d) A notice shall include:
             2146          (i) the dates of closure or cessation of operation;
             2147          (ii) the reason for the closure or cessation of operation; and
             2148          (iii) the date on which the restaurant liquor licensee will reopen or resume operation.
             2149          (e) Failure of the restaurant liquor licensee to provide notice and to obtain department
             2150      authorization before closure or cessation of operation results in an automatic forfeiture of:
             2151          (i) the license; and
             2152          (ii) the unused portion of the license fee for the remainder of the license year effective
             2153      immediately.
             2154          (f) Failure of the restaurant liquor licensee to reopen or resume operation by the
             2155      approved date results in an automatic forfeiture of:
             2156          (i) the license; and
             2157          (ii) the unused portion of the license fee for the remainder of the license year.
             2158          (23) A restaurant liquor licensee shall maintain at least 70% of its total restaurant
             2159      business from the sale of food, which does not include mix for an alcoholic beverage or service
             2160      charges.
             2161          (24) A restaurant liquor license may not be transferred from one location to another,
             2162      without prior written approval of the commission.
             2163          (25) (a) A person, having been granted a restaurant liquor license may not sell, transfer,
             2164      assign, exchange, barter, give, or attempt in any way to dispose of the restaurant liquor license


             2165      to another person whether for monetary gain or not.
             2166          (b) A restaurant liquor license has no monetary value for the purpose of any type of
             2167      disposition.
             2168          (26) A server of an alcoholic beverage in a restaurant liquor licensee's establishment
             2169      shall keep a written beverage tab for each table or group that orders or consumes an alcoholic
             2170      beverage on the premises. The beverage tab shall list the type and amount of an alcoholic
             2171      beverage ordered or consumed.
             2172          (27) A person's willingness to serve an alcoholic beverage may not be made a
             2173      condition of employment as a server with a restaurant that has a restaurant liquor license.
             2174          (28) A restaurant liquor licensee or an employee of the restaurant liquor licensee may
             2175      not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
             2176      Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             2177          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             2178      58-37-2 ; or
             2179          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             2180      Section 58-37a-3 .
             2181          Section 17. Section 32A-4-202 is amended to read:
             2182           32A-4-202. Application and renewal requirements.
             2183          (1) A person seeking an airport lounge liquor license under this part shall file a written
             2184      application with the department, in a form prescribed by the department, accompanied by:
             2185          (a) a nonrefundable $250 application fee;
             2186          (b) an initial license fee of $7,000, which is refundable if a license is not granted;
             2187          (c) written consent of the local and airport authority;
             2188          (d) a copy of the applicant's current business license;
             2189          (e) a bond as specified by Section 32A-4-205 ;
             2190          (f) a floor plan of the airport lounge, including consumption areas and the area where
             2191      the applicant proposes to keep, store, and sell liquor;
             2192          (g) a copy of the sign proposed to be used by the licensee on its premises to inform the
             2193      public that alcoholic beverages are sold and consumed there;
             2194          (h) evidence that the airport lounge is carrying public liability insurance in an amount
             2195      and form satisfactory to the department;


             2196          (i) evidence that the airport lounge is carrying dramshop insurance coverage of at least
             2197      [$500,000] $1,000,000 per occurrence and [$1,000,000] $2,000,000 in the aggregate;
             2198          (j) a signed consent form stating that the airport lounge will permit any authorized
             2199      representative of the commission, department, or any law enforcement officer unrestricted right
             2200      to enter the airport lounge;
             2201          (k) in the case of an applicant that is a partnership, corporation, or limited liability
             2202      company, proper verification evidencing that the person or persons signing the airport lounge
             2203      application are authorized to so act on behalf of the partnership, corporation, or limited liability
             2204      company; and
             2205          (l) any other information the commission or department may require.
             2206          (2) (a) [All] An airport lounge liquor [licenses expire] license expires on October 31 of
             2207      each year.
             2208          (b) A person desiring to renew that person's airport lounge liquor license shall submit a
             2209      renewal fee of $5,000 and a completed renewal application to the department no later than
             2210      September 30.
             2211          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             2212      the license, effective on the date the existing license expires.
             2213          (d) Renewal applications shall be in a form as prescribed by the department.
             2214          (3) To ensure compliance with Subsection 32A-4-206 (21), the commission may revoke
             2215      an airport lounge liquor license if the airport liquor licensee does not immediately notify the
             2216      department of any change in:
             2217          (a) ownership of the licensee;
             2218          (b) for a corporate owner, the:
             2219          (i) corporate officers or directors; or
             2220          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             2221      corporation; or
             2222          (c) for a limited liability company:
             2223          (i) managers; or
             2224          (ii) members owning at least 20% of the limited liability company.
             2225          Section 18. Section 32A-4-302 is amended to read:
             2226           32A-4-302. Commission's power to grant licenses -- Limitations.


             2227          (1) A restaurant wanting to sell and allow the consumption of only wine, heavy beer,
             2228      and beer on its premises, but not spirituous liquor or[, on or after October 1, 2008,] a flavored
             2229      malt beverage, shall obtain a limited restaurant license from the commission as provided in this
             2230      part before selling or allowing the consumption of wine, heavy beer, or beer on its premises.
             2231          (2) (a) Subject to the other provisions of this section and Subsection 32A-4a-201 (2),
             2232      the commission may [issue] grant limited restaurant licenses for the purpose of establishing
             2233      limited restaurant outlets at places and in numbers the commission considers proper for the
             2234      storage, sale, and consumption of wine, heavy beer, and beer on premises operated as public
             2235      restaurants.
             2236          (b) The total number of limited restaurant licenses [issued] granted under this part may
             2237      not at any time aggregate more than that number determined by dividing the population of the
             2238      state by 9,300.
             2239          (c) For purposes of this Subsection (2), population shall be determined by:
             2240          (i) the most recent United States decennial or special census; or
             2241          (ii) another population determination made by the United States or state governments.
             2242          (3) (a) (i) The commission may [issue] grant seasonal limited restaurant licenses
             2243      established in areas the commission considers necessary.
             2244          (ii) A seasonal limited restaurant license shall be for a period of six consecutive
             2245      months.
             2246          (b) (i) A limited restaurant license [issued] granted for operation during a summer time
             2247      period is known as a "Seasonal A" limited restaurant license. The period of operation for a
             2248      "Seasonal A" limited restaurant license shall:
             2249          (A) begin on May 1; and
             2250          (B) end on October 31.
             2251          (ii) A limited restaurant license [issued] granted for operation during a winter time
             2252      period is known as a "Seasonal B" limited restaurant license. The period of operation for a
             2253      "Seasonal B" limited restaurant license shall:
             2254          (A) begin on November 1; and
             2255          (B) end on April 30.
             2256          (iii) In determining the number of limited restaurant licenses that the commission may
             2257      [issue] grant under this section:


             2258          (A) a seasonal limited restaurant license is counted as [1/2] one-half of one limited
             2259      restaurant license; and
             2260          (B) each "Seasonal A" limited restaurant license shall be paired with a "Seasonal B"
             2261      limited restaurant license.
             2262          (c) If the location, design, and construction of a hotel may require more than one
             2263      limited restaurant sales location within the hotel to serve the public convenience, the
             2264      commission may authorize the sale of wine, heavy beer, and beer at as many as three limited
             2265      restaurant locations within the hotel under one license if:
             2266          (i) the hotel has a minimum of 150 guest rooms; and
             2267          (ii) all locations under the license are:
             2268          (A) within the same hotel facility; and
             2269          (B) on premises that are:
             2270          (I) managed or operated by the licensee; and
             2271          (II) owned or leased by the licensee.
             2272          (d) A facility other than a hotel shall have a separate limited restaurant license for each
             2273      restaurant where wine, heavy beer, and beer are sold.
             2274          (4) (a) Except as otherwise provided in this Subsection (4)[(b), (c), or (d)], the
             2275      premises of a limited restaurant license may not be established:
             2276          (i) within 600 feet of a community location, as measured by the method in Subsection
             2277      (4)[(e)](f); or
             2278          (ii) within 200 feet of a community location, measured in a straight line from the
             2279      nearest entrance of the proposed outlet to the nearest property boundary of the community
             2280      location.
             2281          (b) With respect to the establishment of a limited restaurant license, the commission
             2282      may authorize a variance to reduce the proximity requirement of Subsection (4)(a)(i) if:
             2283          (i) the local authority grants its written consent to the variance;
             2284          (ii) the commission finds that alternative locations for establishing a limited restaurant
             2285      license in the community are limited;
             2286          (iii) a public hearing is held in the city, town, or county, and where practical in the
             2287      neighborhood concerned;
             2288          (iv) after giving full consideration to all of the attending circumstances and the policies


             2289      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             2290      license would not be detrimental to the public health, peace, safety, and welfare of the
             2291      community; and
             2292          (v) (A) the community location governing authority gives its written consent to the
             2293      variance; or
             2294          (B) when written consent is not given by the community location governing authority,
             2295      the commission finds that the applicant has established that:
             2296          (I) there is substantial unmet public demand to consume alcohol in a public setting
             2297      within the geographic boundary of the local authority in which the limited restaurant licensee is
             2298      to be located;
             2299          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             2300      described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a limited
             2301      restaurant license; and
             2302          (III) there is no reasonably viable alternative location within the geographic boundary
             2303      of the local authority in which the limited restaurant licensee is to be located for establishing a
             2304      limited restaurant license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
             2305          (c) With respect to the establishment of a limited restaurant license, the commission
             2306      may authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
             2307          (i) the community location at issue is:
             2308          (A) a public library; or
             2309          (B) a public park;
             2310          (ii) the local authority grants its written consent to the variance;
             2311          (iii) the commission finds that alternative locations for establishing a limited restaurant
             2312      license in the community are limited;
             2313          (iv) a public hearing is held in the city, town, or county, and where practical in the
             2314      neighborhood concerned;
             2315          (v) after giving full consideration to all of the attending circumstances and the policies
             2316      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             2317      limited restaurant license would not be detrimental to the public health, peace, safety, and
             2318      welfare of the community; and
             2319          (vi) (A) the community location governing authority gives its written consent to the


             2320      variance; or
             2321          (B) when written consent is not given by the community location governing authority,
             2322      the commission finds that the applicant has established that:
             2323          (I) there is substantial unmet public demand to consume alcohol in a public setting
             2324      within the geographic boundary of the local authority in which the limited restaurant licensee is
             2325      to be located;
             2326          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             2327      described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a limited
             2328      restaurant license; and
             2329          (III) there is no reasonably viable alternative location within the geographic boundary
             2330      of the local authority in which the limited restaurant licensee is to be located for establishing a
             2331      limited restaurant license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
             2332          (d) With respect to the premises of a limited restaurant license [issued] granted by the
             2333      commission that undergoes a change of ownership, the commission may waive or vary the
             2334      proximity requirements of Subsection (4)(a) in considering whether to grant a limited
             2335      restaurant license to the new owner of the premises if:
             2336          (i) (A) the premises previously received a variance reducing the proximity requirement
             2337      of Subsection (4)(a)(i); or
             2338          (B) the premises received a variance reducing the proximity requirement of Subsection
             2339      (4)(a)(ii) on or before May 4, 2008; or
             2340          (ii) a variance from proximity requirements was otherwise allowed under this title.
             2341          (e) With respect to the premises of a limited restaurant license granted by the
             2342      commission that undergoes a change of ownership, the commission shall waive or vary the
             2343      proximity requirements of Subsection (4)(a) in considering whether to grant a limited
             2344      restaurant license to the new owner of the premises if:
             2345          (i) when a limited restaurant license was granted to a previous owner, the premises met
             2346      the proximity requirements of Subsection (4)(a);
             2347          (ii) the premises has had a limited restaurant license at all times since the limited
             2348      restaurant license described in Subsection (4)(e)(i) was granted without a variance; and
             2349          (iii) the community location located within the proximity requirements of Subsection
             2350      (4)(a) after the day on which the limited restaurant license described in Subsection (4)(e)(i) was


             2351      granted.
             2352          [(e)] (f) The 600 foot limitation as described in Subsection (4)(a)(i) is measured from
             2353      the nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to
             2354      the property boundary of the community location.
             2355          (5) (a) Nothing in this section prevents the commission from considering the proximity
             2356      of any educational, religious, and recreational facility, or any other relevant factor in reaching a
             2357      decision on a proposed location.
             2358          (b) For purposes of this Subsection (5), "educational facility" includes:
             2359          (i) a nursery school;
             2360          (ii) an infant day care center; and
             2361          (iii) a trade and technical school.
             2362          Section 19. Section 32A-4-303 is amended to read:
             2363           32A-4-303. Application and renewal requirements.
             2364          (1) A person seeking a limited restaurant license under this part shall file a written
             2365      application with the department, in a form prescribed by the department. The application shall
             2366      be accompanied by:
             2367          (a) a nonrefundable $250 application fee;
             2368          (b) an initial license fee of $500, which is refundable if a license is not granted;
             2369          (c) written consent of the local authority;
             2370          (d) a copy of the applicant's current business license;
             2371          (e) evidence of proximity to any community location, with proximity requirements
             2372      being governed by Section 32A-4-302 ;
             2373          (f) a bond as specified by Section 32A-4-306 ;
             2374          (g) a floor plan of the restaurant, including:
             2375          (i) consumption areas; and
             2376          (ii) the area where the applicant proposes to keep, store, and sell wine, heavy beer, and
             2377      beer;
             2378          (h) evidence that the restaurant is carrying public liability insurance in an amount and
             2379      form satisfactory to the department;
             2380          (i) evidence that the restaurant is carrying dramshop insurance coverage of at least
             2381      [$500,000] $1,000,000 per occurrence and [$1,000,000] $2,000,000 in the aggregate;


             2382          (j) a signed consent form stating that the restaurant will permit any authorized
             2383      representative of the commission, department, or any law enforcement officer unrestricted right
             2384      to enter the restaurant;
             2385          (k) in the case of an applicant that is a partnership, corporation, or limited liability
             2386      company, proper verification evidencing that the person or persons signing the restaurant
             2387      application are authorized to so act on behalf of the partnership, corporation, or limited liability
             2388      company; and
             2389          (l) any other information the commission or department may require.
             2390          (2) (a) [All] A limited restaurant [licenses expire] license expires on October 31 of
             2391      each year.
             2392          (b) A person desiring to renew that person's limited restaurant license shall submit:
             2393          (i) a renewal fee of $300; and
             2394          (ii) a renewal application to the department no later than September 30.
             2395          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             2396      the license effective on the date the existing license expires.
             2397          (d) A renewal application shall be in a form as prescribed by the department.
             2398          (3) To ensure compliance with Subsection 32A-4-307 (25), the commission may
             2399      suspend or revoke a limited restaurant license if the limited restaurant licensee does not
             2400      immediately notify the department of any change in:
             2401          (a) ownership of the restaurant;
             2402          (b) for a corporate owner, the:
             2403          (i) corporate officer or directors; or
             2404          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             2405      corporation; or
             2406          (c) for a limited liability company:
             2407          (i) managers; or
             2408          (ii) members owning at least 20% of the limited liability company.
             2409          Section 20. Section 32A-4-307 is amended to read:
             2410           32A-4-307. Operational restrictions.
             2411          A person granted a limited restaurant license and the employees and management
             2412      personnel of the limited restaurant shall comply with the following conditions and


             2413      requirements. Failure to comply may result in a suspension or revocation of the license or
             2414      other disciplinary action taken against individual employees or management personnel.
             2415          (1) (a) Wine and heavy beer may not be purchased by a limited restaurant licensee
             2416      except from a state store or package agency.
             2417          (b) Wine and heavy beer purchased from a state store or package agency may be
             2418      transported by the limited restaurant licensee from the place of purchase to the licensed
             2419      premises.
             2420          (c) Payment for wine and heavy beer shall be made in accordance with rules
             2421      established by the commission.
             2422          (2) (a) A limited restaurant licensee may not sell, serve, or allow consumption of the
             2423      products listed in Subsection (2)(c) on the premises of the limited restaurant.
             2424          (b) A product listed in Subsection (2)(c) may not be on the premises of the limited
             2425      restaurant except for use:
             2426          (i) as a flavoring on a dessert; and
             2427          (ii) in the preparation of a flaming food dish, drink, or dessert.
             2428          (c) This Subsection (2) applies to:
             2429          (i) spirituous liquor; and
             2430          (ii) [on or after October 1, 2008,] a flavored malt beverage.
             2431          (3) (a) (i) Wine may be sold and served by the glass or an individual portion not to
             2432      exceed five ounces per glass or individual portion.
             2433          (ii) An individual portion may be served to a patron in more than one glass as long as
             2434      the total amount of wine does not exceed five ounces.
             2435          (iii) An individual portion of wine is considered to be one alcoholic beverage under
             2436      Subsection (7)[(e)](g).
             2437          (b) (i) Wine may be sold and served in a container not exceeding 1.5 liters at a price
             2438      fixed by the commission to a table of four or more persons.
             2439          (ii) Wine may be sold and served in a container not exceeding 750 milliliters at a price
             2440      fixed by the commission to a table of less than four persons.
             2441          (c) A wine service may be performed and a service charge assessed by the limited
             2442      restaurant licensee as authorized by commission rule for wine purchased at the limited
             2443      restaurant.


             2444          (4) (a) Heavy beer may be served in an original container not exceeding one liter at a
             2445      price fixed by the commission.
             2446          (b) A service charge may be assessed by the limited restaurant licensee as authorized
             2447      by commission rule for heavy beer purchased at the limited restaurant.
             2448          (5) (a) (i) Subject to Subsection (5)(a)(ii), a limited restaurant licensee may sell beer for
             2449      on-premise consumption:
             2450          (A) in an open container; and
             2451          (B) on draft.
             2452          (ii) Beer sold pursuant to Subsection (5)(a)(i) shall be in a size of container that does
             2453      not exceed two liters, except that beer may not be sold to an individual patron in a size of
             2454      container that exceeds one liter.
             2455          (b) A limited restaurant licensee that sells beer pursuant to Subsection (5)(a):
             2456          (i) may do so without obtaining a separate on-premise beer retailer license from the
             2457      commission; and
             2458          (ii) shall comply with all appropriate operational restrictions under Chapter 10, Beer
             2459      Retailer Licenses, that apply to an on-premise beer retailer except when those restrictions are
             2460      inconsistent with or less restrictive than the operational restrictions under this part.
             2461          (c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
             2462      Licenses, required by Subsection (5)(b) may result in a suspension or revocation of the limited
             2463      restaurant's:
             2464          (i) limited restaurant license; and
             2465          (ii) alcoholic beverage license issued by the local authority.
             2466          (6) Wine, heavy beer, and beer may not be stored, served, or sold in a place other than
             2467      as designated in the limited restaurant licensee's application, unless the limited restaurant
             2468      licensee first applies for and receives approval from the department for a change of location
             2469      within the limited restaurant.
             2470          (7) (a) (i) As used in this Subsection (7), and subject to Subsection (7)(a)(ii),
             2471      "grandfathered bar structure" means a bar structure in a restaurant that:
             2472          (A) as of May 11, 2009 has:
             2473          (I) (Aa) patron seating at the bar structure;
             2474          (Bb) a partition at one or more locations on the bar structure that is along the width of


             2475      the bar structure; and
             2476          (Cc) facilities for the dispensing or storage of an alcoholic beverage on the portion of
             2477      the bar structure that is separated by the partition described in Subsection (7)(a)(i)(A)(I)(Bb); or
             2478          (II) (Aa) patron seating at the bar structure;
             2479          (Bb) a partition at one or more locations on the bar structure that is along the length of
             2480      the bar structure; and
             2481          (Cc) facilities for the dispensing or storage of an alcoholic beverage:
             2482          (Ii) on the portion of the bar structure that is separated by a partition described in
             2483      Subsection (7)(a)(i)(A)(II)(Bb); or
             2484          (IIii) adjacent to the bar structure in a manner visible to a patron sitting at the bar
             2485      structure;
             2486          (B) is not operational as of May 12, 2009 and:
             2487          (I) an applicant for a limited restaurant license under this chapter:
             2488          (Aa) has as of May 12, 2009, a building permit to construct the restaurant;
             2489          (Bb) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2490      defined by rule made by the commission in accordance with Title 63G, Chapter 3, Utah
             2491      Administrative Rulemaking Act; and
             2492          (Cc) is granted a limited restaurant license by the commission under this chapter by no
             2493      later than December 31, 2009; and
             2494          (II) the restaurant described in Subsection (7)(a)(i)(C)(I) has a bar structure described
             2495      in Subsection (7)(a)(i)(A);
             2496          (C) as of May 12, 2009, has no patron seating at the bar structure; or
             2497          (D) is not operational as of May 12, 2009 and:
             2498          (I) an applicant for a limited restaurant license under this chapter:
             2499          (Aa) has as of May 12, 2009, a building permit to construct the restaurant;
             2500          (Bb) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2501      defined by rule made by the commission in accordance with Title 63G, Chapter 3, Utah
             2502      Administrative Rulemaking Act; and
             2503          (Cc) is granted a limited restaurant license by the commission under this chapter by no
             2504      later than December 31, 2009; and
             2505          (II) the restaurant described in Subsection (7)(a)(i)(D)(I) has a bar structure described


             2506      in Subsection (7)(a)(i)(C).
             2507          (ii) "Grandfathered bar structure" does not include a grandfathered bar structure
             2508      described in Subsection (7)(a)(i) on or after the day on which a restaurant remodels the
             2509      grandfathered bar structure, as defined by rule made by the commission in accordance with
             2510      Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             2511          (iii) Subject to Subsection (7)(a)(ii), a grandfathered bar structure remains a
             2512      grandfathered bar structure notwithstanding whether the restaurant undergoes a change of
             2513      ownership.
             2514          [(7) (a)] (b) (i) A patron may only make an alcoholic beverage purchase in a limited
             2515      restaurant from and be served by a person employed, designated, and trained by the limited
             2516      restaurant licensee to sell and serve an alcoholic beverage.
             2517          (ii) Only a person employed, designated, and trained by a limited restaurant licensee
             2518      may sell, serve, or deliver an alcoholic beverage to a patron of a restaurant.
             2519          [(ii)] (iii) Notwithstanding Subsection (7)[(a)](b)(i) or (ii), a patron who purchases
             2520      bottled wine from an employee of the limited restaurant licensee or carries bottled wine onto
             2521      the premises of the limited restaurant pursuant to Subsection (14) may thereafter serve wine
             2522      from the bottle to the patron or others at the patron's table.
             2523          [(b) An alcoholic beverage shall be delivered by a server to the patron.]
             2524          (c) [An] A patron may consume an alcoholic beverage [may] only [be consumed]:
             2525          (i) at:
             2526          (A) the patron's table [or];
             2527          (B) a counter;
             2528          (C) a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B); and
             2529          (ii) where food is served.
             2530          (d) [An] (i) An alcoholic beverage may not be served to or consumed by a patron at a
             2531      bar structure that is not a grandfathered bar structure described in Subsection (7)(a)(i)(A) or
             2532      (B).
             2533          (ii) A patron who is 21 years of age or older may:
             2534          (A) sit at a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B);
             2535          (B) be served an alcoholic beverage at a grandfathered bar structure described in
             2536      Subsection (7)(a)(i)(A) or (B); and


             2537          (C) consume an alcoholic beverage at a grandfathered bar structure described in
             2538      Subsection (7)(a)(i)(A) or (B).
             2539          (iii) Except as provided in Subsection (7)(d)(iv), a limited restaurant licensee may not
             2540      permit a minor to, and a minor may not:
             2541          (A) sit at a grandfathered bar structure described in Subsection (7)(a)(i)(A) or (B); or
             2542          (B) consume food or beverages at a bar structure described in Subsection (7)(a)(i)(A)
             2543      or (B).
             2544          (iv) (A) A minor may be at a grandfathered bar structure described in Subsection
             2545      (7)(a)(i)(A) or (B) if the minor is employed by a limited restaurant licensee:
             2546          (I) as provided in Subsection (16)(b); or
             2547          (II) to perform maintenance and cleaning services during an hour when the limited
             2548      restaurant licensee is not open for business.
             2549          (B) A minor may momentarily pass by a grandfathered bar structure described in
             2550      Subsection (7)(a)(i)(A) or (B) without remaining or sitting at the bar structure en route to an
             2551      area of a limited restaurant licensee's premises in which the minor is permitted to be.
             2552          (e) Except as provided in Subsection (14), a limited restaurant licensee may dispense
             2553      an alcoholic beverage only:
             2554          (i) from:
             2555          (A) a grandfathered bar structure;
             2556          (B) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
             2557      the grandfathered bar structure if that area is used to dispense an alcoholic beverage or
             2558      alcoholic product as of May 12, 2009; or
             2559          (C) an area that is:
             2560          (I) separated from an area for the consumption of food by a restaurant patron by a solid,
             2561      opaque, permanent structural barrier such that the facilities for the dispensing or storage of an
             2562      alcoholic beverage or alcoholic product are:
             2563          (Aa) not readily visible to a restaurant patron; and
             2564          (Bb) not accessible by a restaurant patron; and
             2565          (II) apart from an area used for:
             2566          (Aa) dining;
             2567          (Bb) staging; or


             2568          (Cc) as a lobby or waiting area;
             2569          (ii) if the limited restaurant licensee uses an alcoholic beverage or alcoholic product
             2570      that is:
             2571          (A) stored in an area described in Subsection (7)(e)(i); or
             2572          (B) on the premises of the limited restaurant licensee in an area not described in
             2573      Subsection (7)(e)(i) if:
             2574          (I) immediately before the alcoholic beverage or alcoholic product is dispensed it is in
             2575      an unopened package;
             2576          (II) the unopened package is taken to an area described in Subsection (7)(e)(i) before it
             2577      is opened; and
             2578          (III) once opened, the package is kept in an area described in Subsection (7)(e)(i); and
             2579          (iii) if any instrument or equipment used to dispense an alcoholic beverage is located in
             2580      an area described in Subsection (7)(e)(i).
             2581          (f) (i) A limited restaurant licensee that has a grandfathered bar structure may receive a
             2582      credit for purchases from a state store or package agency if:
             2583          (A) the limited restaurant licensee completes a remodel of the grandfathered bar
             2584      structure by no later than December 31, 2011;
             2585          (B) the remodeling described in Subsection (7)(f)(i)(A) results in the restaurant
             2586      engaging in an activity described in Subsection (7)(e) only in an area described in Subsection
             2587      (7)(e)(i)(C);
             2588          (C) the limited restaurant licensee requests the credit by no later than April 1, 2012;
             2589          (D) the department determines that the limited restaurant licensee has completed a
             2590      remodel described in Subsections (7)(f)(i)(A) and (B); and
             2591          (E) the department authorizes the credit, including the amount of the credit under
             2592      Subsection (7)(f)(ii), on the basis that:
             2593          (I) the limited restaurant licensee complied with this Subsection (7); and
             2594          (II) the aggregate of all credits authorized under this Subsection (7)(f) before the
             2595      current authorization does not exceed $1,090,000.
             2596          (ii) The amount of the credit described in this Subsection (7)(f) is the lesser of:
             2597          (A) the actual costs of the remodel as evidenced by receipts, copies of which are
             2598      provided to the department as part of the request for the credit; or


             2599          (B) $30,000.
             2600          (iii) For a limited restaurant licensee, a credit under this Subsection (7)(f):
             2601          (A) begins on the day on which the department authorizes the credit under Subsection
             2602      (7)(f)(i); and
             2603          (B) ends the day on which the limited restaurant licensee uses all of the credit.
             2604          (iv) The department shall by contract provide for how a package agency accounts for a
             2605      credit purchase made at the package agency by a limited restaurant licensee under this
             2606      Subsection (7)(f).
             2607          (v) (A) Notwithstanding the other provisions of this Subsection (7)(f), the department
             2608      may not authorize a credit if the aggregate of all credits authorized under this Subsection (7)(f)
             2609      before the authorization exceeds $1,090,000.
             2610          (B) The department shall authorize credits in the order that the department receives a
             2611      request described in Subsection (7)(f)(i)(C) from a limited restaurant licensee requesting a
             2612      credit under this Subsection (7)(f).
             2613          [(e)] (g) A limited restaurant patron may have no more than two alcoholic beverages of
             2614      any kind at a time before the patron.
             2615          (8) (a) [The] An alcoholic beverage storage area shall remain locked at all times other
             2616      than those hours and days when alcoholic beverage sales are authorized by law.
             2617          (b) A limited restaurant licensee shall store an alcoholic beverage or alcoholic product
             2618      in a storage area described in Subsection (7)(e)(i).
             2619          (9) (a) Wine and heavy beer may not be sold, offered for sale, served, or otherwise
             2620      furnished at a limited restaurant on any day after 12 midnight or before 12 noon.
             2621          (b) The hours of beer sales and service are those specified in Chapter 10, Beer Retailer
             2622      Licenses, for on-premise beer licensees.
             2623          (10) An alcoholic beverage may not be sold except in connection with an order of food
             2624      prepared, sold, and served at the limited restaurant.
             2625          (11) Wine, heavy beer, and beer may not be sold, served, or otherwise furnished to a:
             2626          (a) minor;
             2627          (b) person actually, apparently, or obviously intoxicated;
             2628          (c) known habitual drunkard; or
             2629          (d) known interdicted person.


             2630          (12) (a) (i) Wine and heavy beer may be sold only at a price fixed by the commission.
             2631          (ii) Wine and heavy beer may not be sold at a discount price on any date or at any time.
             2632          (b) An alcoholic beverage may not be sold at less than the cost of the alcoholic
             2633      beverage to the limited restaurant licensee.
             2634          (c) An alcoholic beverage may not be sold at a special or reduced price that encourages
             2635      over consumption or intoxication.
             2636          (d) An alcoholic beverage may not be sold at a special or reduced price for only certain
             2637      hours of the limited restaurant licensee's business day such as a "happy hour."
             2638          (e) More than one alcoholic beverage may not be sold or served for the price of a single
             2639      alcoholic beverage.
             2640          (f) An indefinite or unlimited number of alcoholic beverages during a set period may
             2641      not be sold or served for a fixed price.
             2642          (g) A limited restaurant licensee may not engage in a public promotion involving or
             2643      offering free alcoholic beverages to the general public.
             2644          (13) An alcoholic beverage may not be purchased for a patron of the limited restaurant
             2645      by:
             2646          (a) the limited restaurant licensee; or
             2647          (b) an employee or agent of the limited restaurant licensee.
             2648          (14) (a) A person may not bring onto the premises of a limited restaurant licensee an
             2649      alcoholic beverage for on-premise consumption, except a person may bring, subject to the
             2650      discretion of the limited restaurant licensee, bottled wine onto the premises of a limited
             2651      restaurant licensee for on-premise consumption.
             2652          (b) Except bottled wine under Subsection (14)(a), a limited restaurant licensee or an
             2653      officer, manager, employee, or agent of a limited restaurant licensee may not allow:
             2654          (i) a person to bring onto the limited restaurant premises an alcoholic beverage for
             2655      on-premise consumption; or
             2656          (ii) consumption of an alcoholic beverage described in Subsection (14)(b)(i) on the
             2657      limited restaurant licensee's premises.
             2658          (c) If bottled wine is carried in by a patron, the patron shall deliver the wine to a server
             2659      or other representative of the limited restaurant licensee upon entering the limited restaurant.
             2660          (d) A wine service may be performed and a service charge assessed by the limited


             2661      restaurant licensee as authorized by commission rule for wine carried in by a patron.
             2662          (15) (a) Except as provided in Subsection (15)(b), a limited restaurant licensee and an
             2663      employee of the limited restaurant licensee may not permit a restaurant patron to carry from the
             2664      limited restaurant premises an open container that:
             2665          (i) is used primarily for drinking purposes; and
             2666          (ii) contains an alcoholic beverage.
             2667          (b) Notwithstanding Subsection (15)(a), a patron may remove the unconsumed
             2668      contents of a bottle of wine if before removal, the bottle is recorked or recapped.
             2669          (16) (a) A limited restaurant licensee may not employ a minor to sell or dispense an
             2670      alcoholic beverage.
             2671          (b) Notwithstanding Subsection (16)(a), a minor who is at least 16 years of age may be
             2672      employed to enter the sale at a cash register or other sales recording device.
             2673          (17) An employee of a limited restaurant licensee, while on duty, may not:
             2674          (a) consume an alcoholic beverage; or
             2675          (b) be intoxicated.
             2676          (18) A charge or fee made in connection with the sale, service, or consumption of wine
             2677      or heavy beer may be stated in food or alcoholic beverage menus including:
             2678          (a) a service charge; or
             2679          (b) a chilling fee.
             2680          (19) A limited restaurant licensee shall display in a prominent place in the restaurant:
             2681          (a) the limited restaurant license that is [issued] granted by the department; and
             2682          (b) a sign in large letters stating: "Warning: Driving under the influence of alcohol or
             2683      drugs is a serious crime that is prosecuted aggressively in Utah."
             2684          (20) A limited restaurant licensee may not on the premises of the restaurant:
             2685          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             2686      Chapter 10, Part 11, Gambling;
             2687          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             2688      Part 11, Gambling; or
             2689          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             2690      the risking of something of value for a return or for an outcome when the return or outcome is
             2691      based upon an element of chance, excluding the playing of an amusement device that confers


             2692      only an immediate and unrecorded right of replay not exchangeable for value.
             2693          (21) (a) A limited restaurant licensee shall maintain an expense ledger or record
             2694      showing in detail:
             2695          (i) quarterly expenditures made separately for:
             2696          (A) wine;
             2697          (B) heavy beer;
             2698          (C) beer;
             2699          (D) food; and
             2700          (E) all other items required by the department; and
             2701          (ii) sales made separately for:
             2702          (A) wine;
             2703          (B) heavy beer;
             2704          (C) beer;
             2705          (D) food; and
             2706          (E) all other items required by the department.
             2707          (b) A limited restaurant licensee shall keep a record required by Subsection (21)(a):
             2708          (i) in a form approved by the department; and
             2709          (ii) current for each three-month period.
             2710          (c) An expenditure shall be supported by:
             2711          (i) a delivery ticket;
             2712          (ii) an invoice;
             2713          (iii) a receipted bill;
             2714          (iv) a canceled check;
             2715          (v) a petty cash voucher; or
             2716          (vi) other sustaining datum or memorandum.
             2717          (d) In addition to the ledger or record maintained under Subsections (21)(a) through
             2718      (c), a limited restaurant licensee shall maintain accounting and other records and documents as
             2719      the department may require.
             2720          (e) Any limited restaurant licensee or person acting for the restaurant, who knowingly
             2721      forges, falsifies, alters, cancels, destroys, conceals, or removes an entry in a book of account or
             2722      other document of the limited restaurant that is required to be made, maintained, or preserved


             2723      by this title or the rules of the commission for the purpose of deceiving the commission, the
             2724      department, or an official or employee of the commission or department, is subject to:
             2725          (i) the suspension or revocation of the limited restaurant's license; and
             2726          (ii) possible criminal prosecution under Chapter 12, Criminal Offenses.
             2727          (22) (a) A limited restaurant licensee may not close or cease operation for a period
             2728      longer than 240 hours, unless:
             2729          (i) the limited restaurant licensee notifies the department in writing at least seven days
             2730      before the day on which the limited restaurant licensee closes or ceases operation; and
             2731          (ii) the closure or cessation of operation is first approved by the department.
             2732          (b) Notwithstanding Subsection (22)(a), in the case of emergency closure, the limited
             2733      restaurant licensee shall immediately notify the department by telephone.
             2734          (c) (i) Subject to Subsection (22)(c)(iii), the department may authorize a closure or
             2735      cessation of operation for a period not to exceed 60 days.
             2736          (ii) The department may extend the initial period an additional 30 days upon:
             2737          (A) written request of the limited restaurant licensee; and
             2738          (B) a showing of good cause.
             2739          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             2740      commission approval.
             2741          (d) A notice required by Subsection (22)(a) shall include:
             2742          (i) the dates of closure or cessation of operation;
             2743          (ii) the reason for the closure or cessation of operation; and
             2744          (iii) the date on which the limited restaurant licensee will reopen or resume operation.
             2745          (e) Failure of the limited restaurant licensee to provide notice and to obtain department
             2746      authorization before closure or cessation of operation results in an automatic forfeiture of:
             2747          (i) the limited restaurant license; and
             2748          (ii) the unused portion of the license fee for the remainder of the license year effective
             2749      immediately.
             2750          (f) Failure of the limited restaurant licensee to reopen or resume operation by the
             2751      approved date results in an automatic forfeiture of:
             2752          (i) the limited restaurant license; and
             2753          (ii) the unused portion of the license fee for the remainder of the license year.


             2754          (23) A limited restaurant licensee shall maintain at least 70% of its total restaurant
             2755      business from the sale of food, which does not include service charges.
             2756          (24) A limited restaurant license may not be transferred from one location to another,
             2757      without prior written approval of the commission.
             2758          (25) (a) A limited restaurant licensee may not sell, transfer, assign, exchange, barter,
             2759      give, or attempt in any way to dispose of the limited restaurant license to another person
             2760      whether for monetary gain or not.
             2761          (b) A limited restaurant license has no monetary value for the purpose of any type of
             2762      disposition.
             2763          (26) (a) A server of wine, heavy beer, and beer in a limited restaurant licensee's
             2764      establishment shall keep a written beverage tab for each table or group that orders or consumes
             2765      an alcoholic beverage on the premises.
             2766          (b) The beverage tab required by Subsection (26)(a) shall list the type and amount of an
             2767      alcoholic beverage ordered or consumed.
             2768          (27) A limited restaurant licensee may not make a person's willingness to serve an
             2769      alcoholic beverage a condition of employment as a server with the limited restaurant.
             2770          (28) A limited restaurant licensee or an employee of the limited restaurant licensee may
             2771      not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37,
             2772      Utah Controlled Substances Act, or Chapter 37a, Utah Drug Paraphernalia Act:
             2773          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             2774      58-37-2 ; or
             2775          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             2776      Section 58-37a-3 .
             2777          Section 21. Section 32A-4-401 is amended to read:
             2778           32A-4-401. Definitions -- Commission's power to grant licenses -- Limitations.
             2779          (1) (a) For purposes of this part:
             2780          (i) "Banquet" means an event:
             2781          (A) for which there is a contract:
             2782          (I) between any person and a person listed in Subsection (1)(a)(i)(B); and
             2783          (II) under which a person listed in Subsection (1)(a)(i)(B) is required to provide an
             2784      alcoholic [beverages] beverage at the event;


             2785          (B) held at one or more designated locations approved by the commission in or on the
             2786      premises of a:
             2787          (I) hotel;
             2788          (II) resort facility;
             2789          (III) sports center; or
             2790          (IV) convention center; and
             2791          (C) at which food and alcoholic beverages may be sold and served.
             2792          (ii) "Convention center" is [as] a facility that:
             2793          (A) is in total at least 30,000 square feet; and
             2794          (B) is otherwise defined as a "convention center" by the commission by rule.
             2795          (iii) "Hotel" is as defined by the commission by rule.
             2796          (iv) "Resort facility" is as defined by the commission by rule.
             2797          (v) "Room service" means service of an alcoholic [beverages] beverage to a guest room
             2798      of a:
             2799          (A) hotel; or
             2800          (B) resort facility.
             2801          (vi) "Sports center" is as defined by the commission by rule.
             2802          (b) The commission may [issue] grant an on-premise banquet license to any of the
             2803      following persons for the purpose of allowing the storage, sale, service, and consumption of an
             2804      alcoholic [beverages] beverage in connection with that person's banquet and room service
             2805      activities:
             2806          (i) a hotel;
             2807          (ii) a resort facility;
             2808          (iii) a sports center; or
             2809          (iv) a convention center.
             2810          (c) This chapter [is not intended to] does not prohibit an alcoholic [beverages]
             2811      beverage on the premises of a person listed in Subsection (1) to the extent otherwise permitted
             2812      by this title.
             2813          (2) (a) Subject to this section and Subsection 32A-4a-201 (2), the total number of
             2814      on-premise banquet licenses may not at any time aggregate more than that number determined
             2815      by dividing the population of the state by 30,000.


             2816          (b) For purposes of this Subsection (2), the population of the state shall be determined
             2817      by:
             2818          (i) the most recent United States decennial or special census; or
             2819          (ii) another population determination made by the United States or state governments.
             2820          (3) Pursuant to a contract between the host of a banquet and an on-premise banquet
             2821      licensee:
             2822          (a) the host of a contracted banquet may request an on-premise banquet licensee to
             2823      provide an alcoholic [beverages] beverage served at a banquet; and
             2824          (b) an on-premise banquet licensee may provide [the] an alcoholic [beverages]
             2825      beverage served at a banquet.
             2826          (4) At a banquet, an on-premise banquet licensee may provide:
             2827          (a) a hosted bar; or
             2828          (b) a cash bar.
             2829          (5) Nothing in this section [shall prohibit] prohibits a qualified on-premise banquet
             2830      license applicant from applying for a package agency.
             2831          (6) (a) Except as provided in Subsection (6)(b), (c), or (d), the premises of an
             2832      on-premise banquet license may not be established:
             2833          (i) within 600 feet of a community location, as measured by the method in Subsection
             2834      (6)(e); or
             2835          (ii) within 200 feet of a community location, measured in a straight line from the
             2836      nearest entrance of the proposed outlet to the nearest property boundary of the community
             2837      location.
             2838          (b) With respect to the establishment of an on-premise banquet license, the
             2839      commission may authorize a variance to reduce the proximity requirement of Subsection
             2840      (6)(a)(i) if:
             2841          (i) the local authority grants its written consent to the variance;
             2842          (ii) the commission finds that alternative locations for establishing an on-premise
             2843      banquet license in the community are limited;
             2844          (iii) the variance is authorized after a public hearing is held in the city, town, or county,
             2845      and where practical in the neighborhood concerned;
             2846          (iv) after giving full consideration to all of the attending circumstances and the policies


             2847      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             2848      license would not be detrimental to the public health, peace, safety, and welfare of the
             2849      community; and
             2850          (v) (A) the community location governing authority gives its written consent to the
             2851      variance; or
             2852          (B) when written consent is not given by the community location governing authority,
             2853      the commission finds that the applicant has established that:
             2854          (I) there is substantial unmet public demand to consume alcohol in a public setting
             2855      within the geographic boundary of the local authority in which the on-premise banquet license
             2856      premises is to be located;
             2857          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             2858      described in Subsection (6)(b)(v)(B)(I) other than through the establishment of an on-premise
             2859      banquet license; and
             2860          (III) there is no reasonably viable alternative location within the geographic boundary
             2861      of the local authority in which the on-premise banquet license premises is to be located for
             2862      establishing an on-premise banquet license to satisfy the unmet demand described in
             2863      Subsection (6)(b)(v)(B)(I).
             2864          (c) With respect to the establishment of an on-premise banquet license, the commission
             2865      may authorize a variance that reduces the proximity requirement of Subsection (6)(a)(ii) if:
             2866          (i) the community location at issue is:
             2867          (A) a public library; or
             2868          (B) a public park;
             2869          (ii) the local authority grants its written consent to the variance;
             2870          (iii) the commission finds that alternative locations for establishing an on-premise
             2871      banquet license in the community are limited;
             2872          (iv) a public hearing is held in the city, town, or county, and where practical in the
             2873      neighborhood concerned;
             2874          (v) after giving full consideration to all of the attending circumstances and the policies
             2875      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             2876      on-premise banquet license would not be detrimental to the public health, peace, safety, and
             2877      welfare of the community; and


             2878          (vi) (A) the community location governing authority gives its written consent to the
             2879      variance; or
             2880          (B) when written consent is not given by the community location governing authority,
             2881      the commission finds that the applicant has established that:
             2882          (I) there is substantial unmet public demand to consume alcohol in a public setting
             2883      within the geographic boundary of the local authority in which the on-premise banquet license
             2884      premises is to be located;
             2885          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             2886      described in Subsection (6)(c)(vi)(B)(I) other than through the establishment of an on-premise
             2887      banquet license; and
             2888          (III) there is no reasonably viable alternative location within the geographic boundary
             2889      of the local authority in which the on-premise banquet license premises is to be located for
             2890      establishing an on-premise banquet license to satisfy the unmet demand described in
             2891      Subsection (6)(c)(vi)(B)(I).
             2892          (d) With respect to the premises of any on-premise banquet license [issued] granted by
             2893      the commission that undergoes a change of ownership, the commission may waive or vary the
             2894      proximity requirements of Subsection (6)(a) in considering whether to grant an on-premise
             2895      banquet license to the new owner of the premises if:
             2896          (i) (A) the premises previously received a variance reducing the proximity requirement
             2897      of Subsection (6)(a)(i); or
             2898          (B) the premises received a variance reducing the proximity requirement of Subsection
             2899      (6)(a)(ii) on or before May 4, 2008; or
             2900          (ii) a variance from proximity requirements was otherwise allowed under this title.
             2901          (e) The 600 foot limitation described in Subsection (6)(a)(i) is measured from the
             2902      nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
             2903      property boundary of the community location.
             2904          (7) (a) Nothing in this section prevents the commission from considering the proximity
             2905      of any educational, religious, and recreational facility, or any other relevant factor in reaching a
             2906      decision on a proposed location.
             2907          (b) For purposes of this Subsection (7), "educational facility" includes:
             2908          (i) a nursery school;


             2909          (ii) an infant day care center; and
             2910          (iii) a trade and technical school.
             2911          (8) (a) As used in this Subsection (8), "grandfathered facility" means a facility:
             2912          (i) for which the commission granted an on-premise banquet license that is in effect on
             2913      May 11, 2009, on the basis that the facility is a convention center; and
             2914          (ii) that no longer qualifies as a convention center under Subsection (1)(a)(ii) solely
             2915      because it is in total less than 30,000 square feet.
             2916          (b) Notwithstanding Subsection (1)(a)(ii), the on-premise banquet license applicable to
             2917      a grandfathered facility may be renewed until October 31, 2011, if the on-premise banquet
             2918      license is qualified for the on-premise banquet license except for the requirement of Subsection
             2919      (1)(a)(ii)(A).
             2920          Section 22. Section 32A-4-402 is amended to read:
             2921           32A-4-402. Application and renewal requirements.
             2922          (1) (a) A person seeking an on-premise banquet license under this part shall file a
             2923      written application with the department, in a form prescribed by the department. The
             2924      application shall be accompanied by:
             2925          (i) a nonrefundable $250 application fee;
             2926          (ii) an initial license fee of $500, which is refundable if a license is not granted;
             2927          (iii) written consent of the local authority;
             2928          (iv) a copy of the applicant's current business license;
             2929          (v) evidence of proximity to any community location, with proximity requirements
             2930      being governed by Section 32A-4-401 ;
             2931          (vi) a bond as specified by Section 32A-4-405 ;
             2932          (vii) a description or floor plan and boundary map of the premises, where appropriate,
             2933      of the on-premise banquet license applicant's location, designating:
             2934          (A) the location at which the on-premise banquet license applicant proposes that
             2935      alcoholic beverages be stored; and
             2936          (B) the designated locations on the premises of the applicant from which the
             2937      on-premise banquet license applicant proposes that alcoholic beverages be sold or served, and
             2938      consumed;
             2939          (viii) evidence that the on-premise banquet license applicant is carrying public liability


             2940      insurance in an amount and form satisfactory to the department;
             2941          (ix) evidence that the on-premise banquet license applicant is carrying dramshop
             2942      insurance coverage of at least [$500,000] $1,000,000 per occurrence and [$1,000,000]
             2943      $2,000,000 in the aggregate;
             2944          (x) a signed consent form stating that the on-premise banquet license applicant will
             2945      permit any authorized representative of the commission, department, or any law enforcement
             2946      officer unrestricted right to enter the on-premise banquet premises;
             2947          (xi) in the case of an applicant that is a partnership, corporation, or limited liability
             2948      company, proper verification evidencing that the person or persons signing the on-premise
             2949      banquet license application are authorized to so act on behalf of the partnership, corporation, or
             2950      limited liability company; and
             2951          (xii) any other information the commission or department may require.
             2952          (b) An applicant need not meet the requirements of Subsections (1)(a)(i), (ii), (iii), (iv),
             2953      and (vi) if the applicant is:
             2954          (i) a state agency; or
             2955          (ii) a political subdivision of the state including:
             2956          (A) a county; or
             2957          (B) a municipality.
             2958          (2) Additional locations in or on the premises of an on-premise banquet license
             2959      applicant's business from which the on-premise banquet license applicant may propose that
             2960      alcoholic beverages may be stored, sold or served, or consumed, not included in the applicant's
             2961      original application may be approved by the department upon proper application, in accordance
             2962      with guidelines approved by the commission.
             2963          (3) (a) [All] An on-premise banquet [licenses expire] license expires on October 31 of
             2964      each year.
             2965          (b) (i) Except as provided in Subsection (3)(b)(ii), a person desiring to renew that
             2966      person's on-premise banquet license shall submit a renewal fee of $500 and a completed
             2967      renewal application to the department no later than September 30.
             2968          (ii) A licensee is not required to submit the renewal fee if the licensee is:
             2969          (A) a state agency; or
             2970          (B) a political subdivision of the state including:


             2971          (I) a county; or
             2972          (II) a municipality.
             2973          (c) Failure to meet the renewal requirements shall result in an automatic forfeiture of
             2974      the license effective on the date the existing license expires.
             2975          (d) A renewal application shall be in a form as prescribed by the department.
             2976          (4) To ensure compliance with Subsection 32A-4-406 (24), the commission may
             2977      suspend or revoke an on-premise banquet license if the on-premise banquet licensee fails to
             2978      immediately notify the department of any change in:
             2979          (a) ownership of the licensee;
             2980          (b) for a corporate owner, the:
             2981          (i) corporate officers or directors; or
             2982          (ii) shareholders holding at least 20% of the total issued and outstanding stock of the
             2983      corporation; or
             2984          (c) for a limited liability company:
             2985          (i) managers; or
             2986          (ii) members owning at least 20% of the limited liability company.
             2987          Section 23. Section 32A-4a-101 is enacted to read:
             2988     
CHAPTER 4a. RESORT LICENSE ACT

             2989     
Part 1. General Provisions

             2990          32A-4a-101. Title.
             2991          This chapter is known as the "Resort License Act."
             2992          Section 24. Section 32A-4a-102 is enacted to read:
             2993          32A-4a-102. Definitions.
             2994          As used in this chapter:
             2995          (1) "Boundary of a resort building" means the physical boundary of the land reasonably
             2996      related to a resort building and any structure or improvement to that land as determined by the
             2997      commission.
             2998          (2) "Dwelling" means a portion of a resort building:
             2999          (a) owned by one or more individuals;
             3000          (b) that is used or designated for use as a residence by one or more persons; and
             3001          (c) that may be rented, loaned, leased, or hired out for a period of no longer than 30


             3002      consecutive days by a person who uses it for a residence.
             3003          (3) "Engaged in the management of the resort" may be defined by the commission by
             3004      rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             3005          (4) "Invitee" means an individual who in accordance with Subsection 32A-4a-305 (3) is
             3006      authorized to use a resort spa by a host who is:
             3007          (a) a resident; or
             3008          (b) a public customer.
             3009          (5) "Provisions applicable to a sublicense" means:
             3010          (a) for a restaurant sublicense, Chapter 4, Part 1, Restaurant Liquor Licenses;
             3011          (b) for a limited restaurant sublicense, Chapter 4, Part 3, Limited Restaurant Licenses;
             3012          (c) for an on-premise banquet sublicense, Chapter 4, Part 4, On-Premises Banquet
             3013      License;
             3014          (d) for a resort spa sublicense, Chapter 4a, Part 3, Resort Spa Sublicense;
             3015          (e) for a club sublicense, Chapter 5, Club Licenses; and
             3016          (f) for an on-premise beer retailer sublicense, Chapter 10, Beer Retailer Licenses.
             3017          (6) "Public customer" means an individual who holds a customer card in accordance
             3018      with Subsection 32A-4a-305 (4).
             3019          (7) "Resident" means an individual who:
             3020          (a) owns a dwelling located within a resort building; or
             3021          (b) rents lodging accommodations for 30 consecutive days or less from:
             3022          (i) an owner of a dwelling described in Subsection (7)(a); or
             3023          (ii) the resort licensee.
             3024          (8) "Resort" means a location:
             3025          (a) on which is located one resort building; and
             3026          (b) that is affiliated with a ski area that physically touches the boundary of the resort
             3027      building.
             3028          (9) "Resort building" means a building:
             3029          (a) that is primarily operated for the purpose of providing dwellings or lodging
             3030      accommodations;
             3031          (b) that has at least 150 units that consist of a dwelling or lodging accommodations;
             3032          (c) that consists of at least 400,000 square feet:


             3033          (i) including only the building itself; and
             3034          (ii) not including areas such as above ground surface parking; and
             3035          (d) of which at least 50% of the units described in Subsection (9)(b) consist of
             3036      dwellings owned by a person other than the resort licensee.
             3037          (10) "Resort spa" means a spa, as defined by rule by the commission made in
             3038      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that is within the
             3039      boundary of a resort building.
             3040          (11) "Sublicense" means:
             3041          (a) a restaurant sublicense;
             3042          (b) a limited restaurant sublicense;
             3043          (c) an on-premise banquet sublicense;
             3044          (d) a resort spa sublicense;
             3045          (e) a club sublicense; or
             3046          (f) an on-premise beer retailer sublicense.
             3047          (12) "Sublicense premises" means a building, enclosure, room, or equipment used
             3048      pursuant to a sublicense in connection with the sale, storage, service, furnishing, or
             3049      consumption of an alcoholic product, unless otherwise defined in this title or in the rules
             3050      adopted by the commission in accordance with Title 63G, Chapter 3, Utah Administrative
             3051      Rulemaking Act.
             3052          Section 25. Section 32A-4a-201 is enacted to read:
             3053     
Part 2. Licensing

             3054          32A-4a-201. Commission's power to license a resort -- Limitations.
             3055          (1) (a) The commission may grant to a person a resort license for the purpose of
             3056      allowing the storage, sale, service, and consumption of an alcoholic beverage in connection
             3057      with a resort designated in the resort license if the person operates at least four sublicenses
             3058      under the resort license.
             3059          (b) A resort license shall:
             3060          (i) consist of:
             3061          (A) a general resort license; and
             3062          (B) the four or more sublicenses; and
             3063          (ii) designate the boundary of the resort building.


             3064          (c) This chapter does not prohibit an alcoholic beverage on the boundary of the resort
             3065      building to the extent otherwise permitted by this title.
             3066          (d) The commission may not grant a sublicense that is separate from a resort license.