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S.B. 314 Enrolled

             1     

ALCOHOLIC BEVERAGE AMENDMENTS

             2     
2011 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 and related provisions to address
             10      various issues concerning the regulation of alcoholic products.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies definition provisions;
             14          .    provides that certain retail licenses are exempt from limitations on the number of
             15      retail licenses that may be issued at any time;
             16          .    addresses the relationship between the number of alcohol-related enforcement
             17      officers and the issuance of licenses;
             18          .    modifies the calculation of the ratio of revenue from food as compared to revenue
             19      from alcoholic products;
             20          .    requires taverns to comply with electronic verification requirements for proof of
             21      age;
             22          .    provides for the governor to appoint the chair of the Alcoholic Beverage Control
             23      Commission;
             24          .    provides for the issuance of certificates of approval for out-of-state importers and
             25      suppliers of beer, heavy beer, and flavored malt beverages;
             26          .    provides for the commission with the approval of the governor and with the consent
             27      of the Senate to appoint the director of the Department of Alcoholic Beverage
             28      Control;
             29          .    addresses prohibited interests, relationships, and actions;


             30          .    creates the Alcoholic Beverage Control Act Enforcement Fund and directs how
             31      money in the fund is to be expended;
             32          .    consolidates language regarding warning signs required to be posted in retail
             33      settings, including event permits;
             34          .    addresses the size of containers of heavy beer that can be sold;
             35          .    modifies fees;
             36          .    permits the sale, offer for sale, or furnishing of an alcoholic product by room service
             37      in other than a sealed container;
             38          .    prohibits consumption of an alcoholic product on licensed premises after a specified
             39      time;
             40          .    removes existing restrictions on transferring licenses or locations of licenses and
             41      replaces the provisions with the Transfer of Retail License Act;
             42          .    addresses the discounting of an alcoholic product;
             43          .    changes the numbers used to determine the number of retail licenses that may be
             44      issued at any one time;
             45          .    modifies requirements related to the location in restaurants of dispensing, storage,
             46      and related instruments or equipment;
             47          .    modifies provisions related to dining club licenses;
             48          .    modifies hours of sale;
             49          .    addresses the limit on the number of airport lounge licenses;
             50          .    eliminates outdated language regarding grandfathered facilities for on-premise
             51      banquet licenses;
             52          .    enacts a new reception center license, including:
             53              .    addressing the commission's power to issue;
             54              .    addressing specific licensing requirements; and
             55              .    addressing specific operational requirements;
             56          .    enacts a new beer-only restaurant license, including:
             57              .    addressing the commission's power to issue;


             58              .    addressing specific licensing requirements; and
             59              .    addressing specific operational requirements;
             60          .    imposes additional requirements on on-premise beer retailers;
             61          .    extends certain grandfathering for restaurant sublicenses;
             62          .    prohibits event permittees from selling, offering for sale, or furnishing an indefinite
             63      or unlimited number of alcoholic products during a set period for a fixed price
             64      unless certain conditions are met;
             65          .    clarifies provisions related to the number of drinks a patron may have before them
             66      at an event;
             67          .    requires agreements to create exclusive sales territories for beer wholesaler
             68      licensees;
             69          .    clarifies penalties related to obtaining a beer wholesaling license;
             70          .    addresses when meetings of the commission may be closed;
             71          .    addresses alcohol training and education seminars;
             72          .    requires the governor to comply with certain requirements under the Budgetary
             73      Procedures Act; and
             74          .    makes technical and conforming amendments.
             75      Money Appropriated in this Bill:
             76          This bill appropriates:
             77          .    to the Department of Public Safety - Programs and Operations, as ongoing and one
             78      time appropriations:
             79              .    from the General Fund, one time, $83,600; and
             80              .    from the General Fund, ongoing, ($2,642,900).
             81      Other Special Clauses:
             82          This bill provides an effective date.
             83      Utah Code Sections Affected:
             84      AMENDS:
             85          32B-1-102 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276


             86          32B-1-201 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             87          32B-1-402 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             88          32B-1-407 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             89          32B-1-602 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             90          32B-1-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             91          32B-2-201 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             92          32B-2-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             93          32B-2-205 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             94          32B-2-503 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             95          32B-2-504 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             96          32B-2-602 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             97          32B-2-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             98          32B-2-606 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             99          32B-4-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             100          32B-4-206 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             101          32B-4-208 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             102          32B-4-406 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             103          32B-4-420 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             104          32B-4-705 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             105          32B-5-301 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             106          32B-5-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             107          32B-5-305 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             108          32B-5-307 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             109          32B-5-309 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             110          32B-6-102 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             111          32B-6-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             112          32B-6-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             113          32B-6-204 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276


             114          32B-6-205 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             115          32B-6-302 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             116          32B-6-303 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             117          32B-6-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             118          32B-6-305 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             119          32B-6-403 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             120          32B-6-404 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             121          32B-6-405 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             122          32B-6-406 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             123          32B-6-502 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             124          32B-6-503 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             125          32B-6-504 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             126          32B-6-603 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             127          32B-6-604 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             128          32B-6-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             129          32B-6-702 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             130          32B-6-703 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             131          32B-6-705 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             132          32B-6-706 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             133          32B-8-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             134          32B-8-204 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             135          32B-8-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             136          32B-8-401 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             137          32B-8-402 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             138          32B-9-204 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             139          32B-9-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             140          32B-9-305 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             141          32B-9-405 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276


             142          32B-10-303 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             143          32B-10-304 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             144          32B-10-403 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             145          32B-10-404 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             146          32B-10-503 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             147          32B-10-603 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             148          32B-11-201 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             149          32B-11-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             150          32B-11-204 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             151          32B-11-503 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             152          32B-11-604 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             153          32B-11-605 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             154          32B-11-608 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             155          32B-12-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             156          32B-12-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             157          32B-13-201 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             158          32B-13-202 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             159          32B-13-203 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             160          32B-13-301 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             161          52-4-205, as last amended by Laws of Utah 2010, Chapters 35, 60, and 239
             162          62A-15-401 (Effective 07/01/11), as last amended by Laws of Utah 2010, Chapter 276
             163          63J-1-201, as last amended by Laws of Utah 2010, Chapter 415
             164      ENACTS:
             165          32B-1-206, Utah Code Annotated 1953
             166          32B-2-209, Utah Code Annotated 1953
             167          32B-2-305, Utah Code Annotated 1953
             168          32B-6-409, Utah Code Annotated 1953
             169          32B-6-801, Utah Code Annotated 1953


             170          32B-6-802, Utah Code Annotated 1953
             171          32B-6-803, Utah Code Annotated 1953
             172          32B-6-804, Utah Code Annotated 1953
             173          32B-6-805, Utah Code Annotated 1953
             174          32B-6-901, Utah Code Annotated 1953
             175          32B-6-902, Utah Code Annotated 1953
             176          32B-6-903, Utah Code Annotated 1953
             177          32B-6-904, Utah Code Annotated 1953
             178          32B-6-905, Utah Code Annotated 1953
             179          32B-8a-101, Utah Code Annotated 1953
             180          32B-8a-102, Utah Code Annotated 1953
             181          32B-8a-201, Utah Code Annotated 1953
             182          32B-8a-202, Utah Code Annotated 1953
             183          32B-8a-203, Utah Code Annotated 1953
             184          32B-8a-301, Utah Code Annotated 1953
             185          32B-8a-302, Utah Code Annotated 1953
             186          32B-8a-303, Utah Code Annotated 1953
             187          32B-8a-401, Utah Code Annotated 1953
             188          32B-8a-402, Utah Code Annotated 1953
             189          32B-8a-403, Utah Code Annotated 1953
             190          32B-8a-404, Utah Code Annotated 1953
             191          32B-8a-501, Utah Code Annotated 1953
             192          32B-8a-502, Utah Code Annotated 1953
             193      REPEALS:
             194          26-7-6 (Effective 07/01/11), as enacted by Coordination Clause, Laws of Utah 2010,
             195      Chapter 136
             196          32B-4-506 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276
             197          32B-4-507 (Effective 07/01/11), as enacted by Laws of Utah 2010, Chapter 276


             198     
             199      Be it enacted by the Legislature of the state of Utah:
             200          Section 1. Section 32B-1-102 (Effective 07/01/11) is amended to read:
             201           32B-1-102 (Effective 07/01/11). Definitions.
             202          As used in this title:
             203          (1) "Airport lounge" means a business location:
             204          (a) at which an alcoholic product is sold at retail for consumption on the premises; and
             205          (b) that is located at an international airport with a United States Customs office on the
             206      premises of the international airport.
             207          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
             208      Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
             209          (3) "Alcoholic beverage" means the following:
             210          (a) beer; or
             211          (b) liquor.
             212          (4) (a) "Alcoholic product" means a product that:
             213          (i) contains at least .5% of alcohol by volume; and
             214          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
             215      process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
             216      in an amount equal to or greater than .5% of alcohol by volume.
             217          (b) "Alcoholic product" includes an alcoholic beverage.
             218          (c) "Alcoholic product" does not include any of the following common items that
             219      otherwise come within the definition of an alcoholic product:
             220          (i) except as provided in Subsection (4)(d), an extract;
             221          (ii) vinegar;
             222          (iii) cider;
             223          (iv) essence;
             224          (v) tincture;
             225          (vi) food preparation; or


             226          (vii) an over-the-counter medicine.
             227          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
             228      when it is used as a flavoring in the manufacturing of an alcoholic product.
             229          (5) "Alcohol training and education seminar" means a seminar that is:
             230          (a) required by Chapter 5, Part 4, Alcohol Training and Education Act; and
             231          (b) described in Section 62A-15-401 .
             232          (6) "Banquet" means an event:
             233          (a) that is held at one or more designated locations approved by the commission in or
             234      on the premises of a:
             235          (i) hotel;
             236          (ii) resort facility;
             237          (iii) sports center; or
             238          (iv) convention center;
             239          (b) for which there is a contract:
             240          (i) between a person operating a facility listed in Subsection (6)(a) and another person;
             241      and
             242          (ii) under which the person operating a facility listed in Subsection (6)(a) is required to
             243      provide an alcoholic product at the event; and
             244          (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
             245          (7) (a) [Subject to Subsection (7)(b),] "Bar" means a [counter or similar] surface or
             246      structure:
             247          (i) at which an alcoholic product is:
             248          (A) stored; or
             249          (B) dispensed; or
             250          (ii) from which an alcoholic product is served.
             251          (b) [For purposes of a full-service restaurant license or a limited-service restaurant
             252      license,] "Bar structure" means a surface or structure on [the premises of a restaurant] a
             253      licensed premises if on or at any place of the surface or structure an alcoholic product is:


             254          (i) stored; or
             255          (ii) dispensed.
             256          (8) (a) Subject to Subsection (8)(d), "beer" means a product that:
             257          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
             258      volume or 3.2% by weight; and
             259          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             260          (b) "Beer" may or may not contain hops or other vegetable products.
             261          (c) "Beer" includes a product that:
             262          (i) contains alcohol in the percentages described in Subsection (8)(a); and
             263          (ii) is referred to as:
             264          (A) beer;
             265          (B) ale;
             266          (C) porter;
             267          (D) stout;
             268          (E) lager; or
             269          (F) a malt or malted beverage.
             270          (d) "Beer" does not include a flavored malt beverage.
             271          (9) "Beer-only restaurant license" means a license issued in accordance with Chapter 5,
             272      Retail License Act, and Chapter 6, Part 9, Beer-only Restaurant License.
             273          [(9)] (10) "Beer retailer" means a business:
             274          (a) that is engaged, primarily or incidentally, in the retail sale of beer to a patron,
             275      whether for consumption on or off the business premises; and
             276          (b) to whom a license is issued:
             277          (i) for an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-premise
             278      Beer Retailer Local Authority; or
             279          (ii) for an on-premise beer retailer, in accordance with Chapter 5, Retail License Act,
             280      and Chapter 6, Part 7, On-premise Beer Retailer License.
             281          [(10)] (11) "Beer wholesaling license" means a license:


             282          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
             283          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
             284      retail licensees or off-premise beer retailers.
             285          [(11)] (12) "Billboard" means a public display used to advertise, including:
             286          (a) a light device;
             287          (b) a painting;
             288          (c) a drawing;
             289          (d) a poster;
             290          (e) a sign;
             291          (f) a signboard; or
             292          (g) a scoreboard.
             293          [(12)] (13) "Brewer" means a person engaged in manufacturing:
             294          (a) beer;
             295          (b) heavy beer; or
             296          (c) a flavored malt beverage.
             297          [(13)] (14) "Brewery manufacturing license" means a license issued in accordance with
             298      Chapter 11, Part 5, Brewery Manufacturing License.
             299          [(14)] (15) "Certificate of approval" means a certificate of approval obtained from the
             300      department under [Subsection] Section 32B-11-201 [(4)].
             301          [(15)] (16) "Chartered bus" means a passenger bus, coach, or other motor vehicle
             302      provided by a bus company to a group of persons pursuant to a common purpose:
             303          (a) under a single contract;
             304          (b) at a fixed charge in accordance with the bus company's tariff; and
             305          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
             306      motor vehicle, and a driver to travel together to one or more specified destinations.
             307          [(16)] (17) "Church" means a building:
             308          (a) set apart for worship;
             309          (b) in which religious services are held;


             310          (c) with which clergy is associated; and
             311          (d) that is tax exempt under the laws of this state.
             312          [(17)] (18) (a) "Club license" means a license issued in accordance with Chapter 5,
             313      Retail License Act, and Chapter 6, Part 4, Club License.
             314          (b) "Club license" includes:
             315          (i) a dining club license;
             316          (ii) an equity club license;
             317          (iii) a fraternal club license; or
             318          (iv) a social club license.
             319          [(18)] (19) "Commission" means the Alcoholic Beverage Control Commission created
             320      in Section 32B-2-201 .
             321          [(19)] (20) "Commissioner" means a member of the commission.
             322          [(20)] (21) "Community location" means:
             323          (a) a public or private school;
             324          (b) a church;
             325          (c) a public library;
             326          (d) a public playground; or
             327          (e) a public park.
             328          [(21)] (22) "Community location governing authority" means:
             329          (a) the governing body of the community location; or
             330          (b) if the commission does not know who is the governing body of a community
             331      location, a person who appears to the commission to have been given on behalf of the
             332      community location the authority to prohibit an activity at the community location.
             333          (23) "Container" means a receptacle that contains an alcoholic product, including:
             334          (a) a bottle;
             335          (b) a vessel; or
             336          (c) a similar item.
             337          [(22)] (24) "Convention center" means a facility that is:


             338          (a) in total at least 30,000 square feet; and
             339          (b) otherwise defined as a "convention center" by the commission by rule.
             340          [(23) For purposes of a full-service restaurant license or limited-service restaurant
             341      license:]
             342          [(a) subject to Subsection (23)(b),]
             343          (25) (a) Subject to Subsection (25)(b), "counter" means a surface or structure in a
             344      dining area of a [restaurant] licensed premises where seating is provided to a patron for service
             345      of food[; and].
             346          (b) "Counter" does not include a surface or structure if on or at any point of the surface
             347      or structure an alcoholic product is:
             348          (i) stored; or
             349          (ii) dispensed.
             350          [(24)] (26) "Department" means the Department of Alcoholic Beverage Control created
             351      in Section 32B-2-203 .
             352          [(25)] (27) "Department compliance officer" means an individual who is:
             353          (a) an auditor or inspector; and
             354          (b) employed by the department.
             355          [(26)] (28) "Department sample" means liquor that is placed in the possession of the
             356      department for testing, analysis, and sampling.
             357          [(27)] (29) "Dining club license" means a license issued in accordance with Chapter 5,
             358      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             359      as a dining club license.
             360          [(28)] (30) "Director," unless the context requires otherwise, means the director of the
             361      department.
             362          [(29)] (31) "Disciplinary proceeding" means an adjudicative proceeding permitted
             363      under this title:
             364          (a) against a person subject to administrative action; and
             365          (b) that is brought on the basis of a violation of this title.


             366          [(30) For purposes of a full-service restaurant license or a limited-service restaurant
             367      license, "dispense" means:]
             368          (32) (a) Subject to Subsection (32)(b), "dispense" means:
             369          [(a)] (i) drawing of an alcoholic product:
             370          [(i)] (A) from an area where it is stored; or
             371          [(ii)] (B) as provided in Subsection 32B-6-205 (12)(b)(ii) [or], 32B-6-305 (12)(b)(ii),
             372      32B-6-805 (15)(b)(ii), or 32B-6-905 (12)(b)(ii); and
             373          [(b)] (ii) using the alcoholic product described in Subsection [(29)(a)] (32)(a)(i) on the
             374      premises of the [restaurant] licensed premises to mix or prepare an alcoholic product to be
             375      furnished to a patron of the [restaurant] retail licensee.
             376          (b) The definition of "dispense" in this Subsection (32) applies only to:
             377          (i) a full-service restaurant license;
             378          (ii) a limited-service restaurant license;
             379          (iii) a reception center license; and
             380          (iv) a beer-only restaurant license.
             381          [(31)] (33) "Distillery manufacturing license" means a license issued in accordance
             382      with Chapter 11, Part 4, Distillery Manufacturing License.
             383          [(32)] (34) "Distressed merchandise" means an alcoholic product in the possession of
             384      the department that is saleable, but for some reason is unappealing to the public.
             385          [(33)] (35) "Educational facility" includes:
             386          (a) a nursery school;
             387          (b) an infant day care center; and
             388          (c) a trade and technical school.
             389          [(34)] (36) "Equity club license" means a license issued in accordance with Chapter 5,
             390      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             391      as an equity club license.
             392          [(35)] (37) "Event permit" means:
             393          (a) a single event permit; or


             394          (b) a temporary beer event permit.
             395          (38) "Exempt license" means a license exempt under Section 32B-1-201 from being
             396      considered in determining the total number of a retail license that the commission may issue at
             397      any time.
             398          [(36)] (39) (a) "Flavored malt beverage" means a beverage:
             399          (i) that contains at least .5% alcohol by volume;
             400          (ii) that is treated by processing, filtration, or another method of manufacture that is not
             401      generally recognized as a traditional process in the production of a beer as described in 27
             402      C.F.R. Sec. 25.55;
             403          (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
             404      extract; and
             405          (iv) (A) for which the producer is required to file a formula for approval with the
             406      federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
             407          (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
             408          (b) "Flavored malt beverage" is considered liquor for purposes of this title.
             409          [(37)] (40) "Fraternal club license" means a license issued in accordance with Chapter
             410      5, Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the
             411      commission as a fraternal club license.
             412          [(38)] (41) "Full-service restaurant license" means a license issued in accordance with
             413      Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-service Restaurant License.
             414          [(39)] (42) (a) "Furnish" means by any means to provide with, supply, or give an
             415      individual an alcoholic product, by sale or otherwise.
             416          (b) "Furnish" includes to:
             417          (i) serve;
             418          (ii) deliver; or
             419          (iii) otherwise make available.
             420          [(40)] (43) "Guest" means an individual who meets the requirements of Subsection
             421      32B-6-407 (9).


             422          [(41)] (44) "Health care practitioner" means:
             423          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
             424          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
             425          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
             426          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical [Therapist]
             427      Therapy Practice Act;
             428          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
             429      Nurse Practice Act;
             430          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
             431      Practice Act;
             432          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
             433      Therapy Practice Act;
             434          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
             435          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
             436      Professional Practice Act;
             437          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
             438          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
             439      Practice Act;
             440          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
             441      Hygienist Practice Act; and
             442          (m) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act.
             443          [(42)] (45) (a) "Heavy beer" means a product that:
             444          (i) contains more than 4% alcohol by volume; and
             445          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             446          (b) "Heavy beer" is considered liquor for the purposes of this title.
             447          [(43)] (46) "Hotel" is as defined by the commission by rule.
             448          [(44)] (47) "Identification card" means an identification card issued under Title 53,
             449      Chapter 3, Part 8, Identification Card Act.


             450          [(45)] (48) "Industry representative" means an individual who is compensated by
             451      salary, commission, or other means for representing and selling an alcoholic product of a
             452      manufacturer, supplier, or importer of liquor.
             453          [(46)] (49) "Industry representative sample" means liquor that is placed in the
             454      possession of the department for testing, analysis, and sampling by a local industry
             455      representative on the premises of the department to educate the local industry representative of
             456      the quality and characteristics of the product.
             457          [(47)] (50) "Interdicted person" means a person to whom the sale, offer for sale, or
             458      furnishing of an alcoholic product is prohibited by:
             459          (a) law; or
             460          (b) court order.
             461          [(48)] (51) "Intoxicated" means that a person:
             462          (a) is significantly impaired as to the person's mental or physical functions as a result of
             463      the use of:
             464          (i) an alcoholic product;
             465          (ii) a controlled substance;
             466          (iii) a substance having the property of releasing toxic vapors; or
             467          (iv) a combination of Subsections [(48)] (51)(a)(i) through (iii); and
             468          (b) exhibits plain and easily observed outward manifestations of behavior or physical
             469      signs produced by the over consumption of an alcoholic product.
             470          [(49)] (52) "Investigator" means an individual who is:
             471          (a) a department compliance officer; or
             472          (b) a nondepartment enforcement officer.
             473          [(50)] (53) "Invitee" is as defined in Section 32B-8-102 .
             474          [(51)] (54) "License" means:
             475          (a) a retail license;
             476          (b) a license issued in accordance with Chapter 11, Manufacturing and Related
             477      Licenses Act;


             478          (c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
             479      or
             480          (d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act.
             481          [(52)] (55) "Licensee" means a person who holds a license.
             482          [(53)] (56) "Limited-service restaurant license" means a license issued in accordance
             483      with Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-service Restaurant License.
             484          [(54)] (57) "Limousine" means a motor vehicle licensed by the state or a local
             485      authority, other than a bus or taxicab:
             486          (a) in which the driver and a passenger are separated by a partition, glass, or other
             487      barrier;
             488          (b) that is provided by a business entity to one or more individuals at a fixed charge in
             489      accordance with the business entity's tariff; and
             490          (c) to give the one or more individuals the exclusive use of the limousine and a driver
             491      to travel to one or more specified destinations.
             492          [(55)] (58) (a) (i) "Liquor" means a liquid that:
             493          (A) is:
             494          (I) alcohol;
             495          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
             496          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
             497          (IV) other drink or drinkable liquid; and
             498          (B) (I) contains at least .5% alcohol by volume; and
             499          (II) is suitable to use for beverage purposes.
             500          (ii) "Liquor" includes:
             501          (A) heavy beer;
             502          (B) wine; and
             503          (C) a flavored malt beverage.
             504          (b) "Liquor" does not include beer.
             505          [(56)] (59) "Liquor Control Fund" means the enterprise fund created by Section


             506      32B-2-301 .
             507          [(57)] (60) "Liquor warehousing license" means a license that is issued:
             508          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
             509          (b) to a person, other than a licensed manufacturer, who engages in the importation for
             510      storage, sale, or distribution of liquor regardless of amount.
             511          [(58)] (61) "Local authority" means:
             512          (a) for premises that are located in an unincorporated area of a county, the governing
             513      body of a county; or
             514          (b) for premises that are located in an incorporated city or a town, the governing body
             515      of the city or town.
             516          [(59)] (62) "Lounge or bar area" is as defined by rule made by the commission.
             517          (63) "Opaque" means impenetrable to sight.
             518          [(60)] (64) "Manufacture" means to distill, brew, rectify, mix, compound, process,
             519      ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
             520      others.
             521          [(61)] (65) "Member" means an individual who, after paying regular dues, has full
             522      privileges in an equity club licensee or fraternal club licensee.
             523          [(62)] (66) (a) "Military installation" means a base, air field, camp, post, station, yard,
             524      center, or homeport facility for a ship:
             525          (i) (A) under the control of the United States Department of Defense; or
             526          (B) of the National Guard;
             527          (ii) that is located within the state; and
             528          (iii) including a leased facility.
             529          (b) "Military installation" does not include a facility used primarily for:
             530          (i) civil works;
             531          (ii) a rivers and harbors project; or
             532          (iii) a flood control project.
             533          [(63)] (67) "Minor" means an individual under the age of 21 years.


             534          [(64)] (68) "Nondepartment enforcement agency" means an agency that:
             535          (a) (i) is a state agency other than the department; or
             536          (ii) is an agency of a county, city, or town; and
             537          (b) has a responsibility to enforce one or more provisions of this title.
             538          [(65)] (69) "Nondepartment enforcement officer" means an individual who is:
             539          (a) a peace officer, examiner, or investigator; and
             540          (b) employed by a nondepartment enforcement agency.
             541          [(66)] (70) (a) "Off-premise beer retailer" means a beer retailer who is:
             542          (i) licensed in accordance with Chapter 7, Part 2, Off-premise Beer Retailer Local
             543      Authority; and
             544          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
             545      premises.
             546          (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
             547          [(67)] (71) "On-premise banquet license" means a license issued in accordance with
             548      Chapter 5, Retail License Act, and Chapter 6, Part 6, On-premise Banquet License.
             549          [(68)] (72) "On-premise beer retailer" means a beer retailer who is:
             550          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
             551      accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-premise Beer
             552      Retailer License; and
             553          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
             554      premises[,]:
             555          (i) regardless of whether the beer retailer sells beer for consumption off the licensed
             556      premises[.]; and
             557          [(69) "Package" means any of the following containing an alcoholic product:]
             558          [(a) a container;]
             559          [(b) a bottle;]
             560          [(c) a vessel; or]
             561          [(d) other receptacle.]


             562          (ii) on and after March 1, 2012, operating:
             563          (A) as a tavern; or
             564          (B) in a manner that meets the recreational amenity requirements of Subsection
             565      32B-6-703 (2)(e).
             566          [(70)] (73) "Package agency" means a retail liquor location operated:
             567          (a) under an agreement with the department; and
             568          (b) by a person:
             569          (i) other than the state; and
             570          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
             571      Agency, to sell packaged liquor for consumption off the premises of the package agency.
             572          [(71)] (74) "Package agent" means a person who holds a package agency.
             573          [(72)] (75) "Patron" means an individual to whom food, beverages, or services are sold,
             574      offered for sale, or furnished, or who consumes an alcoholic product including:
             575          (a) a customer;
             576          (b) a member;
             577          (c) a guest;
             578          (d) an attendee of a banquet or event;
             579          (e) an individual who receives room service;
             580          (f) a resident of a resort;
             581          (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102 ;
             582      or
             583          (h) an invitee.
             584          [(73)] (76) "Permittee" means a person issued a permit under:
             585          (a) Chapter 9, Event Permit Act; or
             586          (b) Chapter 10, Special Use Permit Act.
             587          [(74)] (77) "Person subject to administrative action" means:
             588          (a) a licensee;
             589          (b) a permittee;


             590          (c) a manufacturer;
             591          (d) a supplier;
             592          (e) an importer;
             593          (f) [an out-of-state brewer] one of the following holding a certificate of approval[; or]:
             594          (i) an out-of-state brewer;
             595          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
             596          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
             597          (g) staff of:
             598          (i) a person listed in Subsections [(74)] (77)(a) through [(g)] (f); or
             599          (ii) a package agent.
             600          [(75)] (78) "Premises" means a building, enclosure, or room used in connection with
             601      the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic
             602      product, unless otherwise defined in this title or rules made by the commission.
             603          [(76)] (79) "Prescription" means an order issued by a health care practitioner when:
             604          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
             605      to prescribe a controlled substance, other drug, or device for medicinal purposes;
             606          (b) the order is made in the course of that health care practitioner's professional
             607      practice; and
             608          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
             609          [(77)] (80) (a) "Private event" means a specific social, business, or recreational event:
             610          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
             611      group; and
             612          (ii) that is limited in attendance to people who are specifically designated and their
             613      guests.
             614          (b) "Private event" does not include an event to which the general public is invited,
             615      whether for an admission fee or not.
             616          [(78)] (81) (a) "Proof of age" means:
             617          (i) an identification card;


             618          (ii) an identification that:
             619          (A) is substantially similar to an identification card;
             620          (B) is issued in accordance with the laws of a state other than Utah in which the
             621      identification is issued;
             622          (C) includes date of birth; and
             623          (D) has a picture affixed;
             624          (iii) a valid driver license certificate that:
             625          (A) includes date of birth;
             626          (B) has a picture affixed; and
             627          (C) is issued:
             628          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
             629          (II) in accordance with the laws of the state in which it is issued;
             630          (iv) a military identification card that:
             631          (A) includes date of birth; and
             632          (B) has a picture affixed; or
             633          (v) a valid passport.
             634          (b) "Proof of age" does not include a driving privilege card issued in accordance with
             635      Section 53-3-207 .
             636          [(79)] (82) (a) "Public building" means a building or permanent structure that is:
             637          (i) owned or leased by:
             638          (A) the state; or
             639          (B) a local government entity; and
             640          (ii) used for:
             641          (A) public education;
             642          (B) transacting public business; or
             643          (C) regularly conducting government activities.
             644          (b) "Public building" does not include a building owned by the state or a local
             645      government entity when the building is used by a person, in whole or in part, for a proprietary


             646      function.
             647          [(80)] (83) "Public conveyance" means a conveyance to which the public or a portion
             648      of the public has access to and a right to use for transportation, including an airline, railroad,
             649      bus, boat, or other public conveyance.
             650          (84) "Reception center" means a business that:
             651          (a) operates facilities that are at least 5,000 square feet; and
             652          (b) has as its primary purpose the leasing of the facilities described in Subsection
             653      (84)(a) to a third party for the third party's event.
             654          (85) "Reception center license" means a license issued in accordance with Chapter 5,
             655      Retail License Act, and Chapter 6, Part 8, Reception Center License.
             656          [(81)] (86) (a) "Record" means information that is:
             657          (i) inscribed on a tangible medium; or
             658          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
             659          (b) "Record" includes:
             660          (i) a book;
             661          (ii) a book of account;
             662          (iii) a paper;
             663          (iv) a contract;
             664          (v) an agreement;
             665          (vi) a document; or
             666          (vii) a recording in any medium.
             667          [(82)] (87) "Residence" means a person's principal place of abode within Utah.
             668          [(83)] (88) "Resident," in relation to a resort, is as defined in Section 32B-8-102 .
             669          [(84)] (89) "Resort" is as defined in Section 32B-8-102 .
             670          [(85)] (90) "Resort facility" is as defined by the commission by rule.
             671          [(86)] (91) "Resort license" means a license issued in accordance with Chapter 5,
             672      Retail License Act, and Chapter 8, Resort License Act.
             673          [(87)] (92) "Restaurant" means a business location:


             674          (a) at which a variety of foods are prepared;
             675          (b) at which complete meals are served to the general public; and
             676          (c) that is engaged primarily in serving meals to the general public.
             677          [(88)] (93) "Retail license" means one of the following licenses issued under this title:
             678          (a) a full-service restaurant license;
             679          (b) a limited-service restaurant license;
             680          (c) a club license;
             681          (d) an airport lounge license;
             682          (e) an on-premise banquet license; [or]
             683          (f) an on-premise beer license[.];
             684          (g) a reception center license; or
             685          (h) a beer-only restaurant license.
             686          [(89)] (94) "Room service" means furnishing an alcoholic product to a person in a
             687      guest room of a:
             688          (a) hotel; or
             689          (b) resort facility.
             690          [(90)] (95) "Serve" means to place an alcoholic product before an individual.
             691          [(91)] (96) (a) "School" means a building used primarily for the general education of
             692      minors.
             693          (b) "School" does not include an educational facility.
             694          [(92)] (97) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby,
             695      for consideration, an alcoholic product is either directly or indirectly transferred, solicited,
             696      ordered, delivered for value, or by a means or under a pretext is promised or obtained, whether
             697      done by a person as a principal, proprietor, or as staff, unless otherwise defined in this title or
             698      the rules made by the commission.
             699          [(93)] (98) "Sexually oriented entertainer" means a person who while in a state of
             700      seminudity appears at or performs:
             701          (a) for the entertainment of one or more patrons;


             702          (b) on the premises of:
             703          (i) a social club licensee; or
             704          (ii) a tavern;
             705          (c) on behalf of or at the request of the licensee described in Subsection [(93)] (98)(b);
             706          (d) on a contractual or voluntary basis; and
             707          (e) whether or not the person is designated as:
             708          (i) an employee;
             709          (ii) an independent contractor;
             710          (iii) an agent of the licensee; or
             711          (iv) a different type of classification.
             712          [(94)] (99) "Single event permit" means a permit issued in accordance with Chapter 9,
             713      Part 3, Single Event Permit.
             714          [(95)] (100) "Small brewer" means a brewer who manufactures less than 60,000 barrels
             715      of beer, heavy beer, and flavored malt beverages per year.
             716          [(96)] (101) "Social club license" means a license issued in accordance with Chapter 5,
             717      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             718      as a social club license.
             719          [(97)] (102) "Special use permit" means a permit issued in accordance with Chapter 10,
             720      Special Use Permit Act.
             721          [(98)] (103) (a) "Spirituous liquor" means liquor that is distilled.
             722          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
             723      27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
             724          [(99)] (104) "Sports center" is as defined by the commission by rule.
             725          [(100)] (105) (a) "Staff" means an individual who engages in activity governed by this
             726      title:
             727          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
             728      holder;
             729          (ii) at the request of the business, including a package agent, licensee, permittee, or


             730      certificate holder; or
             731          (iii) under the authority of the business, including a package agent, licensee, permittee,
             732      or certificate holder.
             733          (b) "Staff" includes:
             734          (i) an officer;
             735          (ii) a director;
             736          (iii) an employee;
             737          (iv) personnel management;
             738          (v) an agent of the licensee, including a managing agent;
             739          (vi) an operator; or
             740          (vii) a representative.
             741          [(101)] (106) "State of nudity" means:
             742          (a) the appearance of:
             743          (i) the nipple or areola of a female human breast;
             744          (ii) a human genital;
             745          (iii) a human pubic area; or
             746          (iv) a human anus; or
             747          (b) a state of dress that fails to opaquely cover:
             748          (i) the nipple or areola of a female human breast;
             749          (ii) a human genital;
             750          (iii) a human pubic area; or
             751          (iv) a human anus.
             752          [(102)] (107) "State of seminudity" means a state of dress in which opaque clothing
             753      covers no more than:
             754          (a) the nipple and areola of the female human breast in a shape and color other than the
             755      natural shape and color of the nipple and areola; and
             756          (b) the human genitals, pubic area, and anus:
             757          (i) with no less than the following at its widest point:


             758          (A) four inches coverage width in the front of the human body; and
             759          (B) five inches coverage width in the back of the human body; and
             760          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
             761          [(103)] (108) (a) "State store" means a facility for the sale of packaged liquor:
             762          (i) located on premises owned or leased by the state; and
             763          (ii) operated by a state employee.
             764          (b) "State store" does not include:
             765          (i) a package agency;
             766          (ii) a licensee; or
             767          (iii) a permittee.
             768          [(104) For purposes of a full-service restaurant license or a limited-service restaurant
             769      license:]
             770          (109) (a) "Storage area" means an area on licensed premises where the licensee stores
             771      an alcoholic product.
             772          (b) "Store" means to place or maintain in a location an alcoholic product from which a
             773      person draws to prepare an alcoholic product to be furnished to a patron [of the restaurant],
             774      except as provided in Subsection 32B-6-205 (12)(b)(ii) [or], 32B-6-305 (12)(b)(ii),
             775      32B-6-805 (15)(b)(ii), or 32B-6-905 (12)(b)(ii).
             776          [(105)] (110) "Sublicense" is as defined in Section 32B-8-102 .
             777          [(106)] (111) "Supplier" means a person who sells an alcoholic product to the
             778      department.
             779          [(107)] (112) "Tavern" means an on-premise beer retailer who is:
             780          (a) issued a license by the commission in accordance with Chapter 5, Retail License
             781      Act, and Chapter 6, Part 7, On-premise Beer Retailer License; and
             782          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
             783      On-premise Beer Retailer License.
             784          [(108)] (113) "Temporary beer event permit" means a permit issued in accordance with
             785      Chapter 9, Part 4, Temporary Beer Event Permit.


             786          [(109)] (114) "Temporary domicile" means the principal place of abode within Utah of
             787      a person who does not have a present intention to continue residency within Utah permanently
             788      or indefinitely.
             789          (115) "Translucent" means a substance that allows light to pass through, but does not
             790      allow an object or person to be seen through the substance.
             791          [(110)] (116) "Unsaleable liquor merchandise" means a [package] container that:
             792          (a) is unsaleable because the [package] container is:
             793          (i) unlabeled;
             794          (ii) leaky;
             795          (iii) damaged;
             796          (iv) difficult to open; or
             797          (v) partly filled;
             798          (b) (i) has faded labels or defective caps or corks;
             799          (ii) has contents that are:
             800          (A) cloudy;
             801          (B) spoiled; or
             802          (C) chemically determined to be impure; or
             803          (iii) contains:
             804          (A) sediment; or
             805          (B) a foreign substance; or
             806          (c) is otherwise considered by the department as unfit for sale.
             807          [(111)] (117) (a) "Wine" means an alcoholic product obtained by the fermentation of
             808      the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or
             809      not another ingredient is added.
             810          (b) "Wine" is considered liquor for purposes of this title, except as otherwise provided
             811      in this title.
             812          [(112)] (118) "Winery manufacturing license" means a license issued in accordance
             813      with Chapter 11, Part 3, Winery Manufacturing License.


             814          Section 2. Section 32B-1-201 (Effective 07/01/11) is amended to read:
             815           32B-1-201 (Effective 07/01/11). Restrictions on number of retail licenses that may
             816      be issued -- Determining population -- Exempt licenses.
             817          (1) As used in this section:
             818          (a) "Alcohol-related law enforcement officer" means a law enforcement officer
             819      employed by the Department of Public Safety that has as a primary responsibility:
             820          (i) the enforcement of this title; or
             821          (ii) the enforcement of Title 41, Chapter 6a, Part 5, Driving Under the Influence and
             822      Reckless Driving.
             823          (b) "Enforcement ratio" is the number calculated as follows:
             824          (i) determine the quotient equal to the total number of quota retail licenses available
             825      divided by the total number of alcohol-related law enforcement officers; and
             826          (ii) round the number determined in accordance with Subsection (1)(b)(ii) up to the
             827      nearest whole number.
             828          (c) "Quota retail license" means:
             829          (i) a full-service restaurant license;
             830          (ii) a limited-service restaurant license;
             831          (iii) a club license;
             832          (iv) an on-premise banquet license;
             833          (v) an on-premise beer retailer operating as a tavern; and
             834          (vi) a reception center license.
             835          (d) "Total number of alcohol-related law enforcement officers" means the total number
             836      of positions designated as alcohol-related law enforcement officers that are funded as of a
             837      specified date as certified by the Department of Public Safety to the department.
             838          (e) "Total number of quota retail licenses available" means the number calculated by:
             839          (i) determining as of a specified date for each quota retail license the number of
             840      licenses that the commission may not exceed calculated by dividing the population of the state
             841      by the number specified in the relevant provision for the quota retail license; and


             842          (ii) adding together the numbers determined under Subsection (1)(d)(i).
             843          (2) (a) Beginning on July 1, 2012, the department shall annually determine the
             844      enforcement ratio as of July 1 of that year.
             845          (b) If, beginning on July 1, 2012, the enforcement ratio is greater than 52, the
             846      commission may not issue a quota retail license for the 12-month period beginning on the July
             847      1 for which the enforcement ratio is greater than 52.
             848          (c) Notwithstanding Subsection (2)(b), the commission may issue a quota retail license
             849      during the 12-month period described in Subsection (2)(b) beginning on the day on which a
             850      sufficient number of alcohol-related law enforcement officers are employed so that if the
             851      enforcement ratio is calculated, the enforcement ratio would be equal to or less than 52.
             852          (d) Once the Department of Public Safety certifies under Subsection (1)(d) the total
             853      number of positions designated as alcohol-related law enforcement officers that are funded as
             854      of July 1, the Department of Public Safety may not use the funding for the designated
             855      alcohol-related law enforcement officers for a purpose other than funding those positions.
             856          (3) For purposes of determining the number of state stores that the commission may
             857      establish or the number of package agencies or retail licenses that the commission may issue,
             858      the commission shall determine population by:
             859          [(1)] (a) the most recent United States decennial or special census; or
             860          [(2)] (b) another population determination made by the United States or state
             861      governments.
             862          (4) The commission may not consider a retail license that meets the following
             863      conditions in determining the total number of licenses available for that type of retail license
             864      that the commission may issue at any time:
             865          (a) the retail license was issued to a club licensee designated as a dining club as of July
             866      1, 2011; and
             867          (b) the dining club license is converted to another type of retail license in accordance
             868      with Section 32B-6-709 .
             869          Section 3. Section 32B-1-206 is enacted to read:


             870          32B-1-206. Calculation of ratio of gross receipts of food to alcoholic product.
             871          In calculating the annual gross receipts of a retail license or sublicense for purposes of
             872      determining the percentage of gross receipts from the sale, offer for sale, or furnishing of food
             873      or an alcoholic product, a retail licensee may not include in the calculation the money from the
             874      sale of a bottle of wine by the retail licensee or under a sublicense that is in excess of $250.
             875          Section 4. Section 32B-1-402 (Effective 07/01/11) is amended to read:
             876           32B-1-402 (Effective 07/01/11). Definitions.
             877          As used in this part:
             878          [(1) "Applicable licensee" means the following:]
             879          [(a) a dining club licensee; or]
             880          [(b) a social club licensee.]
             881          [(2)] (1) "Authorized person" means a person authorized by law to sell or otherwise
             882      handle an alcoholic product.
             883          [(3)] (2) "Restricted area" means a place where an alcoholic product is sold or
             884      consumed, but where under this title a minor is not permitted.
             885          [(4)] (3) "Statement of age" means a statement signed under Section 32B-1-405
             886      verifying the age of the person signing the statement.
             887          Section 5. Section 32B-1-407 (Effective 07/01/11) is amended to read:
             888           32B-1-407 (Effective 07/01/11). Verification of proof of age by applicable
             889      licensees.
             890          (1) As used in this section, "applicable licensee" means:
             891          (a) a dining club;
             892          (b) a social club; or
             893          (c) a tavern.
             894          [(1)] (2) Notwithstanding any other provision of this part, an applicable licensee shall
             895      require that an authorized person [under] for the applicable licensee verify proof of age as
             896      provided in this section.
             897          [(2)] (3) An authorized person is required to verify proof of age under this section


             898      before an individual who appears to be 35 years of age or younger:
             899          (a) gains admittance to the premises of a social club licensee or tavern; or
             900          (b) procures an alcoholic product on the premises of a dining club licensee.
             901          [(3)] (4) To comply with Subsection [(2)] (3), an authorized person shall:
             902          (a) request the individual present proof of age; and
             903          (b) (i) verify the validity of the proof of age electronically under the verification
             904      program created in Subsection [(4)] (5); or
             905          (ii) if the proof of age cannot be electronically verified as provided in Subsection [(3)]
             906      (4)(b)(i), request that the individual comply with a process established by the commission by
             907      rule.
             908          [(4)] (5) The commission shall establish by rule an electronic verification program that
             909      includes the following:
             910          (a) the specifications for the technology used by the applicable licensee to
             911      electronically verify proof of age, including that the technology display to the person described
             912      in Subsection [(1)] (2) no more than the following for the individual who presents the proof of
             913      age:
             914          (i) the name;
             915          (ii) the age;
             916          (iii) the number assigned to the individual's proof of age by the issuing authority;
             917          (iv) the birth date;
             918          (v) the gender; and
             919          (vi) the status and expiration date of the individual's proof of age; and
             920          (b) the security measures that must be used by an applicable licensee to ensure that
             921      information obtained under this section is:
             922          (i) used by the applicable licensee only for purposes of verifying proof of age in
             923      accordance with this section; and
             924          (ii) retained by the applicable licensee for seven days after the day on which the
             925      applicable licensee obtains the information.


             926          [(5)] (6) (a) An applicable licensee may not disclose information obtained under this
             927      section except as provided under this title.
             928          (b) Information obtained under this section is considered a record for any purpose
             929      under Chapter 5, Part 3, Retail Licensee Operational Requirements.
             930          Section 6. Section 32B-1-602 (Effective 07/01/11) is amended to read:
             931           32B-1-602 (Effective 07/01/11). Definitions.
             932          As used in this part:
             933          (1) "Malted beverage" means:
             934          (a) beer;
             935          (b) a flavored malt beverage; and
             936          (c) heavy beer.
             937          (2) "Packaging" means the outer packaging that is visible to a consumer such as a
             938      carton, case, or other wrapper of a [package] container.
             939          Section 7. Section 32B-1-605 (Effective 07/01/11) is amended to read:
             940           32B-1-605 (Effective 07/01/11). General procedure for approval.
             941          (1) To obtain approval of the label and packaging of a malted beverage, the
             942      manufacturer of the malted beverage shall submit an application to the department for
             943      approval.
             944          (2) The application described in Subsection (1) shall be on a form approved by the
             945      department and include the following:
             946          (a) a copy of a federal certificate of label approval from the Department of Treasury,
             947      Tax and Trade Bureau, for each brand and label for which the manufacturer is seeking
             948      approval;
             949          (b) a complete set of original labels for each size of [package] container of the malted
             950      beverage;
             951          (c) a description of the size of the [package] container on which a label will be placed;
             952          (d) a description of each type of [package] container of the malted beverage; and
             953          (e) a description of any packaging for the malted beverage.


             954          (3) The department may assess a reasonable fee for reviewing a label and packaging for
             955      approval.
             956          (4) (a) The department shall notify a manufacturer within 30 days after the day on
             957      which the manufacturer submits an application whether the label and packaging is approved or
             958      denied.
             959          (b) If the department determines that an unusual circumstance requires additional time,
             960      the department may extend the time period described in Subsection (4)(a).
             961          (5) A manufacturer shall obtain the approval of the department of a revision of a
             962      previously approved label and packaging before a malted beverage using the revised label and
             963      packaging may be distributed or sold in this state.
             964          (6) (a) The department may revoke a label and packaging previously approved upon a
             965      finding that the label and packaging is not in compliance with this title or rules of the
             966      commission.
             967          (b) The department shall notify the person who applies for the approval of a label and
             968      packaging at least five business days before the day on which a label and packaging approval is
             969      considered revoked.
             970          (c) After receiving notice under Subsection (6)(b), a manufacturer may present written
             971      argument or evidence to the department on why the revocation should not occur.
             972          (7) A manufacturer that applies for approval of a label and packaging may appeal a
             973      denial or revocation of a label and packaging approval to the commission.
             974          Section 8. Section 32B-2-201 (Effective 07/01/11) is amended to read:
             975           32B-2-201 (Effective 07/01/11). Alcoholic Beverage Control Commission created.
             976          (1) There is created the "Alcoholic Beverage Control Commission." The commission is
             977      the governing board over the department.
             978          (2) (a) The commission is composed of five part-time commissioners appointed by the
             979      governor with the consent of the Senate.
             980          (b) No more than three commissioners may be of the same political party.
             981          (3) (a) Except as required by Subsection (3)(b), as terms of commissioners expire, the


             982      governor shall appoint each new commissioner or reappointed commissioner to a four-year
             983      term.
             984          (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
             985      time of appointment or reappointment, adjust the length of terms to ensure that the terms of no
             986      more than two commissioners expire in a fiscal year.
             987          (4) (a) When a vacancy occurs on the commission for any reason, the governor shall
             988      appoint a replacement for the unexpired term with the consent of the Senate.
             989          (b) Unless removed in accordance with Subsection (6), a commissioner shall remain on
             990      the commission after the expiration of a term until a successor is appointed by the governor,
             991      with the consent of the Senate.
             992          (5) A commissioner shall take the oath of office.
             993          (6) (a) The governor may remove a commissioner from the commission for cause after
             994      a public hearing conducted by:
             995          (i) the governor; or
             996          (ii) an impartial hearing examiner appointed by the governor to conduct the hearing.
             997          (b) At least 10 days before the hearing described in Subsection (6)(a), the governor
             998      shall provide the commissioner notice of:
             999          (i) the date, time, and place of the hearing; and
             1000          (ii) the alleged grounds for the removal.
             1001          (c) The commissioner shall have an opportunity to:
             1002          (i) attend the hearing;
             1003          (ii) present witnesses and other evidence; and
             1004          (iii) confront and cross examine witnesses.
             1005          (d) After a hearing under this Subsection (6):
             1006          (i) the person conducting the hearing shall prepare written findings of fact and
             1007      conclusions of law; and
             1008          (ii) the governor shall serve a copy of the prepared findings and conclusions upon the
             1009      commissioner.


             1010          (e) If a hearing under this Subsection (6) is held before a hearing examiner, the hearing
             1011      examiner shall issue a written recommendation to the governor in addition to complying with
             1012      Subsection (6)(d).
             1013          (f) A commissioner has five days from the day on which the commissioner receives the
             1014      findings and conclusions described in Subsection (6)(d) to file written objections to the
             1015      recommendation before the governor issues a final order.
             1016          (g) The governor shall:
             1017          (i) issue the final order under this Subsection (6) in writing; and
             1018          (ii) serve the final order upon the commissioner.
             1019          (7) (a) A commissioner may not receive compensation or benefits for the
             1020      commissioner's service, but may receive per diem and expenses incurred in the performance of
             1021      the commissioner's official duties at the rates established by the Division of Finance under
             1022      Sections 63A-3-106 and 63A-3-107 .
             1023          (b) A commissioner may decline to receive per diem and expenses for the
             1024      commissioner's service.
             1025          [(8) (a) (i) The commission shall elect:]
             1026          [(A) one commissioner to serve as chair;]
             1027          (8) (a) The governor shall annually appoint the chair of the commission. A
             1028      commissioner serves as chair to the commission at the pleasure of the governor.
             1029          (b) The commission shall elect:
             1030          [(B)] (i) another commissioner to serve as vice chair; and
             1031          [(C)] (ii) other commission officers as the commission considers advisable.
             1032          [(ii)] (c) A commissioner elected under Subsection (8)(b) shall serve in the office to
             1033      which the commissioner is elected [under Subsection (8)(a)(i)] at the pleasure of the
             1034      commission.
             1035          [(b)] (9) (a) Each commissioner has equal voting rights on a commission matter when
             1036      in attendance at a commission meeting.
             1037          [(c)] (b) Three commissioners is a quorum for conducting commission business.


             1038          [(d)] (c) A majority vote of the quorum present at a meeting is required for the
             1039      commission to act.
             1040          [(9)] (10) (a) The commission shall meet at least monthly, but may hold other meetings
             1041      at times and places as scheduled by:
             1042          (i) the commission;
             1043          (ii) the chair; or
             1044          (iii) three commissioners upon filing a written request for a meeting with the chair.
             1045          (b) Notice of the time and place of a commission meeting shall be given to each
             1046      commissioner, and to the public in compliance with Title 52, Chapter 4, Open and Public
             1047      Meetings Act. A commission meeting is open to the public, except for a commission meeting
             1048      or portion of a commission meeting that is closed by the commission as authorized by Sections
             1049      52-4-204 and 52-4-205 .
             1050          Section 9. Section 32B-2-202 (Effective 07/01/11) is amended to read:
             1051           32B-2-202 (Effective 07/01/11). Powers and duties of the commission.
             1052          (1) The commission shall:
             1053          (a) act as a general policymaking body on the subject of alcoholic product control;
             1054          (b) adopt and issue policies, rules, and procedures;
             1055          (c) set policy by written rules that establish criteria and procedures for:
             1056          (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
             1057      permit, or certificate of approval; and
             1058          (ii) determining the location of a state store, package agency, or retail licensee;
             1059          (d) decide within the limits, and under the conditions imposed by this title, the number
             1060      and location of state stores, package agencies, and retail licensees in the state;
             1061          (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
             1062      permits, or certificates of approval for the purchase, storage, sale, offer for sale, furnishing,
             1063      consumption, manufacture, and distribution of an alcoholic product:
             1064          (i) a package agency;
             1065          (ii) a full-service restaurant license;


             1066          (iii) a limited-service restaurant license;
             1067          (iv) a club license;
             1068          (v) an airport lounge license;
             1069          (vi) an on-premise banquet license;
             1070          (vii) a resort license, under which four or more sublicenses may be included;
             1071          (viii) an on-premise beer retailer license;
             1072          (ix) a reception center license;
             1073          (x) a beer-only restaurant license;
             1074          [(ix)] (xi) a single event permit;
             1075          [(x)] (xii) a temporary beer event permit;
             1076          [(xi)] (xiii) a special use permit;
             1077          [(xii)] (xiv) a manufacturing license;
             1078          [(xiii)] (xv) a liquor warehousing license;
             1079          [(xiv)] (xvi) a beer wholesaling license; and
             1080          [(xv) an out-of-state brewer]
             1081          (xvii) one of the following that holds a certificate of approval[;]:
             1082          (A) an out-of-state brewer;
             1083          (B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and
             1084          (C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages;
             1085          (f) in accordance with Section 32B-5-205 , issue, deny, suspend, or revoke one of the
             1086      following conditional licenses for the purchase, storage, sale, furnishing, consumption,
             1087      manufacture, and distribution of an alcoholic product:
             1088          (i) a conditional full-service restaurant license; or
             1089          (ii) a conditional limited-service restaurant license;
             1090          (g) prescribe the duties of the department in assisting the commission in issuing a
             1091      package agency, license, permit, or certificate of approval under this title;
             1092          (h) to the extent a fee is not specified in this title, establish a fee allowed under this title
             1093      in accordance with Section 63J-1-504 ;


             1094          (i) fix prices at which liquor is sold that are the same at all state stores, package
             1095      agencies, and retail licensees;
             1096          (j) issue and distribute price lists showing the price to be paid by a purchaser for each
             1097      class, variety, or brand of liquor kept for sale by the department;
             1098          (k) (i) require the director to follow sound management principles; and
             1099          (ii) require periodic reporting from the director to ensure that:
             1100          (A) sound management principles are being followed; and
             1101          (B) policies established by the commission are being observed;
             1102          (l) (i) receive, consider, and act in a timely manner upon the reports, recommendations,
             1103      and matters submitted by the director to the commission; and
             1104          (ii) do the things necessary to support the department in properly performing the
             1105      department's duties;
             1106          (m) obtain temporarily and for special purposes the services of an expert or person
             1107      engaged in the practice of a profession, or a person who possesses a needed skill if:
             1108          (i) considered expedient; and
             1109          (ii) approved by the governor;
             1110          (n) prescribe the conduct, management, and equipment of premises upon which an
             1111      alcoholic product may be stored, sold, offered for sale, furnished, or consumed;
             1112          (o) make rules governing the credit terms of beer sales within the state to retail
             1113      licensees; and
             1114          (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
             1115      disciplinary action against a person subject to administrative action.
             1116          (2) The power of the commission to do the following is plenary, except as otherwise
             1117      provided by this title, and not subject to review:
             1118          (a) establish a state store;
             1119          (b) issue authority to act as a package agent or operate a package agency; and
             1120          (c) issue or deny a license, permit, or certificate of approval.
             1121          (3) If the commission is authorized or required to make a rule under this title, the


             1122      commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
             1123      Rulemaking Act.
             1124          Section 10. Section 32B-2-205 (Effective 07/01/11) is amended to read:
             1125           32B-2-205 (Effective 07/01/11). Director of alcoholic beverage control.
             1126          (1) (a) The commission by a vote of four of the five commissioners, [and] with the
             1127      approval of the governor, and with the consent of the Senate, shall appoint a director of
             1128      alcoholic beverage control who is the administrative head of the department.
             1129          (b) The director serves at the pleasure of the commission, except that the director may
             1130      only be removed from office by a vote of four commissioners.
             1131          (c) The director may not be a commissioner.
             1132          (d) The director shall:
             1133          (i) be qualified in administration;
             1134          (ii) be knowledgeable by experience and training in the field of business management;
             1135      and
             1136          (iii) possess any other qualification prescribed by the commission.
             1137          (2) The governor shall establish the director's compensation within the salary range
             1138      fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
             1139          (3) The director shall:
             1140          (a) carry out the policies of the commission;
             1141          (b) carry out the policies of the department;
             1142          (c) fully inform the commission of the operations and administrative activities of the
             1143      department; and
             1144          (d) assist the commission in the proper discharge of the commission's duties.
             1145          Section 11. Section 32B-2-209 is enacted to read:
             1146          32B-2-209. Prohibited interests, relationships, and actions.
             1147          (1) As used in this section:
             1148          (a) "Applicable department employee" means a department employee who is:
             1149          (i) designated as a deputy or assistant director;


             1150          (ii) a chief administrative officer of a division within the department;
             1151          (iii) a department compliance officer; or
             1152          (iv) an employee directly performing licensing or compliance functions of the
             1153      department.
             1154          (b) "Immediate family" means an individual's:
             1155          (i) spouse; or
             1156          (ii) child who is younger than 18 years of age.
             1157          (2) In addition to being subject to Title 67, Chapter 16, Utah Public Officers' and
             1158      Employees' Ethics Act, an individual who is a commissioner, the director, or an applicable
             1159      department employee may not:
             1160          (a) have a pecuniary interest, whether as the holder of stock or other securities other
             1161      than a mutual fund, in a person who applies for or holds a package agency, license, permit, or
             1162      certificate under this title;
             1163          (b) otherwise have a conflict of interest with a person who applies for or holds a
             1164      package agency, license, permit, or certificate under this title;
             1165          (c) have an office, position, or relationship, or be engaged in a business or avocation
             1166      that interferes or is incompatible with the effective and objective fulfillment of the duties of
             1167      office or employment;
             1168          (d) have a direct business relationship with a person subject to administrative action
             1169      under this title;
             1170          (e) accept a gift, gratuity, emolument, or employment from:
             1171          (i) a person who applies for or holds a package agency, license, permit, or certificate
             1172      under this title; or
             1173          (ii) an officer, agent, or employee of a person who applies for or holds a package
             1174      agency, license, permit, or certificate under this title, except that a commissioner, the director,
             1175      or an applicable department employee may accept a gift from an officer, agent, or employee if
             1176      the gift is equal to or less than $50; or
             1177          (f) solicit, suggest, request, or recommend, directly or indirectly, the appointment of


             1178      any person to any office or employment with a person who applies for or holds a package
             1179      agency, license, permit, or certificate under this title.
             1180          (3) An immediate family member of a commissioner, the director, or an applicable
             1181      department employee may not:
             1182          (a) have a pecuniary interest, whether as the holder of stock or other securities other
             1183      than a mutual fund, in a person who applies for or holds a package agency, license, permit, or
             1184      certificate under this title;
             1185          (b) otherwise have a conflict of interest with a person who applies for or holds a
             1186      package agency, license, permit, or certificate under this title;
             1187          (c) have an office, position, or relationship, or be engaged in a business or avocation
             1188      that interferes or is incompatible with the effective and objective fulfillment of the duties of
             1189      office or employment of the commissioner, director, or applicable department employee for
             1190      whom the person is immediate family;
             1191          (d) accept a gift, gratuity, emolument, or employment from:
             1192          (i) a person who applies for or holds a package agency, license, permit, or certificate
             1193      under this title; or
             1194          (ii) an officer, agent, or employee of a person who applies for or holds a package
             1195      agency, license, permit, or certificate under this title, except that an immediate family member
             1196      may accept a gift from an officer, agent, or employee if the gift is equal to or less than $50; or
             1197          (e) solicit, suggest, request, or recommend, directly or indirectly, the appointment of
             1198      any person to any office or employment with a person who applies for or holds a package
             1199      agency, license, permit, or certificate under this title.
             1200          (4) An officer, agent, attorney, or employee of a person who applies for or holds a
             1201      package agency, license, permit, or certificate under this title may not directly or indirectly
             1202      solicit, request, or recommend to the governor, any state senator, the commission, or the
             1203      department the appointment of any person:
             1204          (a) as a commissioner;
             1205          (b) as director of the department; or


             1206          (c) to a department staff position.
             1207          (5) (a) A commissioner shall disclose during a meeting of the commission a potential
             1208      violation of this section, including the existence and nature of a professional, financial,
             1209      business, or personal interest with a person who holds, or an applicant for, a license, permit, or
             1210      certificate issued under this title that may result in a violation of this section.
             1211          (b) After a commissioner makes a disclosure under Subsection (5)(a):
             1212          (i) the commission may, by motion, determine whether there is a potential violation of
             1213      this section;
             1214          (ii) if the commission determines that there is a potential violation of this section:
             1215          (A) the commission shall notify the governor; and
             1216          (B) the commissioner may not vote on any matter that would result in the potential
             1217      violation of this section; and
             1218          (iii) if the commission determines that there is not a potential violation of this section,
             1219      a commissioner may elect whether to vote on the issue that gives rise to the disclosure under
             1220      Subsection (5)(a).
             1221          (c) The commission shall record any declaration of a potential violation of this section
             1222      in the minutes of the meeting.
             1223          Section 12. Section 32B-2-305 is enacted to read:
             1224          32B-2-305. Alcoholic Beverage Control Act Enforcement Fund.
             1225          (1) As used in this section:
             1226          (a) "Alcohol-related law enforcement officer" is as defined in Section 32B-1-201 .
             1227          (b) "Enforcement ratio" is as defined in Section 32B-1-201 .
             1228          (c) "Fund" means the Alcoholic Beverage Control Act Enforcement Fund created in
             1229      this section.
             1230          (2) There is created a restricted special revenue fund known as the "Alcoholic
             1231      Beverage Control Act Enforcement Fund."
             1232          (3) (a) The fund consists of:
             1233          (i) deposits made under Subsection (4); and


             1234          (ii) interest earned on the fund.
             1235          (b) The fund shall earn interest. Interest on the fund shall be deposited into the fund.
             1236          (4) After the deposit made under Section 32B-2-304 , the department shall deposit 1%
             1237      of the total gross revenue from the sale of liquor with the state treasurer to be credited to the
             1238      fund to be used by the Department of Public Safety as provided in Subsection (5).
             1239          (5) The Department of Public Safety shall expend money from the fund to supplement
             1240      appropriations by the Legislature so that the Department of Public Safety maintains a sufficient
             1241      number of alcohol-related law enforcement officers such that beginning on July 1, 2012, each
             1242      year the enforcement ratio as of July 1 is equal to or less than the number specified in Section
             1243      32B-1-201 .
             1244          Section 13. Section 32B-2-503 (Effective 07/01/11) is amended to read:
             1245           32B-2-503 (Effective 07/01/11). Operational requirements for a state store.
             1246          (1) (a) A state store shall display in a prominent place in the store a sign in large letters
             1247      [stating: "Warning: Driving under the influence of alcohol or drugs is a serious crime that is
             1248      prosecuted aggressively in Utah."] that consists of text in the following order:
             1249          (i) a header that reads: "WARNING";
             1250          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             1251      can cause birth defects and permanent brain damage for the child.";
             1252          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             1253      [insert most current toll-free number] with questions or for more information.";
             1254          (iv) a header that reads: "WARNING"; and
             1255          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             1256      serious crime that is prosecuted aggressively in Utah."
             1257          (b) (i) The text described in Subsections (1)(a)(i) through (iii) shall be in a different
             1258      font style than the text described in Subsections (1)(a)(iv) and (v).
             1259          (ii) The warning statements in the sign described in Subsection (1)(a) shall be in the
             1260      same font size.
             1261          (c) The Department of Health shall work with the commission and department to


             1262      facilitate consistency in the format of a sign required under this section.
             1263          (2) A state store may not sell, offer for sale, or furnish liquor except at a price fixed by
             1264      the commission.
             1265          (3) A state store may not sell, offer for sale, or furnish liquor to:
             1266          (a) a minor;
             1267          (b) a person actually, apparently, or obviously intoxicated;
             1268          (c) a known interdicted person; or
             1269          (d) a known habitual drunkard.
             1270          (4) (a) A state store employee may not:
             1271          (i) consume an alcoholic product on the premises of a state store; or
             1272          (ii) allow any person to consume an alcoholic product on the premises of a state store.
             1273          (b) A violation of this Subsection (4) is a class B misdemeanor.
             1274          (5) (a) Sale or delivery of liquor may not be made on or from the premises of a state
             1275      store, and a state store may not be kept open for the sale of liquor:
             1276          (i) on Sunday; or
             1277          (ii) on a state or federal legal holiday.
             1278          (b) Sale or delivery of liquor may be made on or from the premises of a state store, and
             1279      a state store may be open for the sale of liquor, only on a day and during hours that the
             1280      commission directs by rule or order.
             1281          (6) (a) A minor may not be admitted into, or be on the premises of a state store unless
             1282      accompanied by a person who is:
             1283          (i) 21 years of age or older; and
             1284          (ii) the minor's parent, legal guardian, or spouse.
             1285          (b) A state store employee that has reason to believe that a person who is on the
             1286      premises of a state store is under the age of 21 and is not accompanied by a person described in
             1287      Subsection (6)(a) may:
             1288          (i) ask the suspected minor for proof of age;
             1289          (ii) ask the person who accompanies the suspected minor for proof of age; and


             1290          (iii) ask the suspected minor or the person who accompanies the suspected minor for
             1291      proof of parental, guardianship, or spousal relationship.
             1292          (c) A state store employee shall refuse to sell liquor to the suspected minor and to the
             1293      person who accompanies the suspected minor into the state store if the suspected minor or
             1294      person fails to provide information specified in Subsection (6)(b).
             1295          (d) A state store employee shall require a suspected minor and the person who
             1296      accompanies the suspected minor into the state store to immediately leave the premises of the
             1297      state store if the suspected minor or person fails to provide information specified in Subsection
             1298      (6)(b).
             1299          (7) (a) A state store may not sell, offer for sale, or furnish liquor except in a sealed
             1300      [package] container.
             1301          (b) A person may not open a sealed [package] container on the premises of a state
             1302      store.
             1303          (8) On or after October 1, 2011, a state store may not sell, offer for sale, or furnish
             1304      heavy beer in a sealed container that exceeds two liters.
             1305          Section 14. Section 32B-2-504 (Effective 07/01/11) is amended to read:
             1306           32B-2-504 (Effective 07/01/11). Delivery of liquor to state store.
             1307          (1) Liquor to be sold from a state store may be transported from a warehouse
             1308      authorized by the department to the state store if transported by a person authorized by the
             1309      department to transport the liquor to the state store, including a common carrier.
             1310          (2) A person, while in or about a vehicle in which liquor is being transported, may not
             1311      open, break, or allow to be opened or broken, a [package] container containing liquor.
             1312          (3) A person may not drink, use, or allow to be drunk or used, liquor while it is in
             1313      transit under this section.
             1314          Section 15. Section 32B-2-602 (Effective 07/01/11) is amended to read:
             1315           32B-2-602 (Effective 07/01/11). Application requirements for a package agency.
             1316          (1) Before a person may store, sell, offer for sale, or furnish liquor in a sealed
             1317      [package] container on its premises under a package agency, the person shall first obtain a


             1318      package agency issued by the commission in accordance with this part.
             1319          (2) To obtain a package agency, a person seeking to be the package agent under this
             1320      part shall submit to the department:
             1321          (a) a written application in a form prescribed by the department;
             1322          (b) a nonrefundable application fee of [$100] $125;
             1323          (c) written consent of the local authority;
             1324          (d) evidence of proximity to any community location, with proximity requirements
             1325      being governed by Section 32B-1-202 ;
             1326          (e) a bond as specified by Section 32B-2-604 ;
             1327          (f) a floor plan of the premises, including a description and highlighting of that part of
             1328      the premises in which the person proposes that the package agency be located;
             1329          (g) evidence that the package agency is carrying public liability insurance in an amount
             1330      and form satisfactory to the department;
             1331          (h) a signed consent form stating that the package agent permits any authorized
             1332      representative of the commission, department, or any law enforcement officer to have
             1333      unrestricted right to enter the premises of the package agency;
             1334          (i) if the person applying is an entity, verification that a person who signs the package
             1335      agency application is authorized to sign on behalf of the entity; and
             1336          (j) any other information the commission or department may require.
             1337          (3) The commission may not issue a package agency to a person who is disqualified
             1338      under Section 32B-1-304 .
             1339          (4) The commission may not issue a package agency for premises that do not meet the
             1340      proximity requirements of Section 32B-1-202 .
             1341          Section 16. Section 32B-2-605 (Effective 07/01/11) is amended to read:
             1342           32B-2-605 (Effective 07/01/11). Operational requirements for package agency.
             1343          (1) (a) A person may not operate a package agency until a package agency agreement is
             1344      entered into by the package agent and the department.
             1345          (b) A package agency agreement shall state the conditions of operation by which the


             1346      package agent and the department are bound.
             1347          (c) (i) If a package agent or staff of the package agent violates this title, rules under this
             1348      title, or the package agency agreement, the department may take any action against the package
             1349      agent that is allowed by the package agency agreement.
             1350          (ii) An action against a package agent is governed solely by its package agency
             1351      agreement and may include suspension or revocation of the package agency.
             1352          (iii) Notwithstanding that this part refers to "package agency" or "package agent," staff
             1353      of the package agency or package agent is subject to the same requirement or prohibition.
             1354          (2) (a) A package agency shall be operated by an individual who is either:
             1355          (i) the package agent; or
             1356          (ii) an individual designated by the package agent.
             1357          (b) An individual who is a designee under this Subsection (2) shall be:
             1358          (i) an employee of the package agent; and
             1359          (ii) responsible for the operation of the package agency.
             1360          (c) The conduct of the designee is attributable to the package agent.
             1361          (d) A package agent shall submit the name of the person operating the package agency
             1362      to the department for the department's approval.
             1363          (e) A package agent shall state the name and title of a designee on the application for a
             1364      package agency.
             1365          (f) A package agent shall:
             1366          (i) inform the department of a proposed change in the individual designated to operate
             1367      a package agency; and
             1368          (ii) receive prior approval from the department before implementing the change
             1369      described in this Subsection (2)(f).
             1370          (g) Failure to comply with the requirements of this Subsection (2) may result in the
             1371      immediate termination of a package agency agreement.
             1372          (3) (a) A package agent shall display in a prominent place in the package agency[: (a)]
             1373      the record issued by the commission that designates the package agency[; and].


             1374          (b) A package agent that displays or stores liquor at a location visible to the public
             1375      shall display in a prominent place in the package agency a sign in large letters [stating:
             1376      "Warning: Driving under the influence of alcohol or drugs is a serious crime that is prosecuted
             1377      aggressively in Utah."] that consists of text in the following order:
             1378          (i) a header that reads: "WARNING";
             1379          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             1380      can cause birth defects and permanent brain damage for the child.";
             1381          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             1382      [insert most current toll-free number] with questions or for more information.";
             1383          (iv) a header that reads: "WARNING"; and
             1384          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             1385      serious crime that is prosecuted aggressively in Utah."
             1386          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
             1387      font style than the text described in Subsections (3)(b)(iv) and (v).
             1388          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
             1389      same font size.
             1390          (d) The Department of Health shall work with the commission and department to
             1391      facilitate consistency in the format of a sign required under this section.
             1392          (4) A package agency may not display liquor or a price list in a window or showcase
             1393      that is visible to passersby.
             1394          (5) (a) A package agency may not purchase liquor from a person except from the
             1395      department.
             1396          (b) At the discretion of the department, liquor may be provided by the department to a
             1397      package agency for sale on consignment.
             1398          (6) A package agency may not store, sell, offer for sale, or furnish liquor in a place
             1399      other than as designated in the package agent's application, unless the package agent first
             1400      applies for and receives approval from the department for a change of location within the
             1401      package agency premises.


             1402          (7) A package agency may not sell, offer for sale, or furnish liquor except at a price
             1403      fixed by the commission.
             1404          (8) A package agency may not sell, offer for sale, or furnish liquor to:
             1405          (a) a minor;
             1406          (b) a person actually, apparently, or obviously intoxicated;
             1407          (c) a known interdicted person; or
             1408          (d) a known habitual drunkard.
             1409          (9) (a) A package agency may not employ a minor to handle liquor.
             1410          (b) (i) Staff of a package agency may not:
             1411          (A) consume an alcoholic product on the premises of a package agency; or
             1412          (B) allow any person to consume an alcoholic product on the premises of a package
             1413      agency.
             1414          (ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
             1415          (10) (a) A package agency may not close or cease operation for a period longer than 72
             1416      hours, unless:
             1417          (i) the package agency notifies the department in writing at least seven days before the
             1418      closing; and
             1419          (ii) the closure or cessation of operation is first approved by the department.
             1420          (b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package
             1421      agency shall immediately notify the department by telephone.
             1422          (c) (i) The department may authorize a closure or cessation of operation for a period
             1423      not to exceed 60 days.
             1424          (ii) The department may extend the initial period an additional 30 days upon written
             1425      request of the package agency and upon a showing of good cause.
             1426          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             1427      commission approval.
             1428          (d) The notice required by Subsection (10)(a) shall include:
             1429          (i) the dates of closure or cessation of operation;


             1430          (ii) the reason for the closure or cessation of operation; and
             1431          (iii) the date on which the package agency will reopen or resume operation.
             1432          (e) Failure of a package agency to provide notice and to obtain department
             1433      authorization before closure or cessation of operation results in an automatic termination of the
             1434      package agency agreement effective immediately.
             1435          (f) Failure of a package agency to reopen or resume operation by the approved date
             1436      results in an automatic termination of the package agency agreement effective on that date.
             1437          (11) A package agency may not transfer its operations from one location to another
             1438      location without prior written approval of the commission.
             1439          (12) (a) A person, having been issued a package agency, may not sell, transfer, assign,
             1440      exchange, barter, give, or attempt in any way to dispose of the package agency to another
             1441      person, whether for monetary gain or not.
             1442          (b) A package agency has no monetary value for any type of disposition.
             1443          (13) (a) Subject to the other provisions of this Subsection (13):
             1444          (i) sale or delivery of liquor may not be made on or from the premises of a package
             1445      agency, and a package agency may not be kept open for the sale of liquor:
             1446          (A) on Sunday; or
             1447          (B) on a state or federal legal holiday.
             1448          (ii) Sale or delivery of liquor may be made on or from the premises of a package
             1449      agency, and a package agency may be open for the sale of liquor, only on a day and during
             1450      hours that the commission directs by rule or order.
             1451          [(b) Subsection (13)(a) governs unless:]
             1452          (b) A package agency located at a manufacturing facility is not subject to Subsection
             1453      (13)(a) if:
             1454          (i) the package agency is located at a [winery] manufacturing facility licensed in
             1455      accordance with Chapter 11, Manufacturing and Related Licenses Act;
             1456          (ii) the [winery] manufacturing facility licensed in accordance with Chapter 11,
             1457      Manufacturing and Related Licenses Act, holds:


             1458          (A) a full-service restaurant license; [or]
             1459          (B) a limited-service restaurant license; or
             1460          (C) a beer-only restaurant license;
             1461          (iii) the restaurant is located at the [winery] manufacturing facility;
             1462          (iv) the restaurant sells [wines] an alcoholic product produced at the [winery]
             1463      manufacturing facility;
             1464          (v) the [winery] manufacturing facility:
             1465          (A) owns the restaurant; or
             1466          (B) operates the restaurant;
             1467          (vi) the package agency only sells [wine] an alcoholic product produced at the [winery]
             1468      manufacturing facility; and
             1469          (vii) the package agency's days and hours of sale are the same as the days and hours of
             1470      sale at the restaurant.
             1471          (c) (i) Subsection (13)(a) does not apply to a package agency held by a resort licensee if
             1472      the package agent that holds the package agency to sell liquor at the resort does not sell liquor
             1473      in a manner similar to a state store.
             1474          (ii) The commission may by rule define what constitutes a package agency that sells
             1475      liquor "in a manner similar to a state store."
             1476          (14) (a) Except to the extent authorized by commission rule, a minor may not be
             1477      admitted into, or be on the premises of a package agency unless accompanied by a person who
             1478      is:
             1479          (i) 21 years of age or older; and
             1480          (ii) the minor's parent, legal guardian, or spouse.
             1481          (b) A package agent or staff of a package agency that has reason to believe that a
             1482      person who is on the premises of a package agency is under the age of 21 and is not
             1483      accompanied by a person described in Subsection (14)(a) may:
             1484          (i) ask the suspected minor for proof of age;
             1485          (ii) ask the person who accompanies the suspected minor for proof of age; and


             1486          (iii) ask the suspected minor or the person who accompanies the suspected minor for
             1487      proof of parental, guardianship, or spousal relationship.
             1488          (c) A package agent or staff of a package agency shall refuse to sell liquor to the
             1489      suspected minor and to the person who accompanies the suspected minor into the package
             1490      agency if the minor or person fails to provide any information specified in Subsection (14)(b).
             1491          (d) A package agent or staff of a package agency shall require the suspected minor and
             1492      the person who accompanies the suspected minor into the package agency to immediately leave
             1493      the premises of the package agency if the minor or person fails to provide information specified
             1494      in Subsection (14)(b).
             1495          (15) (a) A package agency [may not] shall sell, offer for sale, or furnish liquor [except]
             1496      in a sealed [package] container.
             1497          (b) A person may not open a sealed [package] container on the premises of a package
             1498      agency.
             1499          (c) Notwithstanding Subsection (15)(a), a package agency may sell, offer for sale, or
             1500      furnish liquor in other than a sealed container:
             1501          (i) if the package agency is the type of package agency that authorizes the package
             1502      agency to sell, offer for sale, or furnish the liquor as part of room service;
             1503          (ii) if the liquor is sold, offered for sale, or furnished as part of room service; and
             1504          (iii) subject to:
             1505          (A) staff of the package agency providing the liquor in person only to an adult guest in
             1506      the guest room;
             1507          (B) staff of the package agency not leaving the liquor outside a guest room for retrieval
             1508      by a guest; and
             1509          (C) the same limits on the portions in which an alcoholic product may be sold by a
             1510      retail licensee under Section 32B-5-304 .
             1511          (16) On or after October 1, 2011, a package agency may not sell, offer for sale, or
             1512      furnish heavy beer in a sealed container that exceeds two liters.
             1513          [(16)] (17) The department may pay or otherwise remunerate a package agent on any


             1514      basis, including sales or volume of business done by the package agency.
             1515          [(17)] (18) The commission may prescribe by policy or rule general operational
             1516      requirements of a package agency that are consistent with this title and relate to:
             1517          (a) physical facilities;
             1518          (b) conditions of operation;
             1519          (c) hours of operation;
             1520          (d) inventory levels;
             1521          (e) payment schedules;
             1522          (f) methods of payment;
             1523          (g) premises security; and
             1524          (h) any other matter considered appropriate by the commission.
             1525          Section 17. Section 32B-2-606 (Effective 07/01/11) is amended to read:
             1526           32B-2-606 (Effective 07/01/11). Delivery of liquor to package agency.
             1527          (1) Liquor to be sold from a package agency may be transported from a warehouse or
             1528      state store authorized by the department to the package agency if transported by a person
             1529      authorized by the department to transport the liquor to the package agency, including a
             1530      common carrier.
             1531          (2) A person, while in or about a vehicle in which liquor is being transported, may not
             1532      open, break, or allow to be opened or broken, a [package] container containing liquor.
             1533          (3) A person may not drink, use, or allow to be drunk or used, any liquor while the
             1534      liquor is in transit under this section.
             1535          Section 18. Section 32B-4-203 (Effective 07/01/11) is amended to read:
             1536           32B-4-203 (Effective 07/01/11). Authority to inspect.
             1537          (1) (a) This Subsection (1) applies to:
             1538          (i) a commissioner;
             1539          (ii) an authorized representative of the commission or department; or
             1540          (iii) a law enforcement or peace officer.
             1541          (b) An individual described in Subsection (1)(a):


             1542          (i) shall be given access, ingress, and egress to and from premises or a conveyance
             1543      used in the storage, sale, furnishing, manufacture, or transportation of an alcoholic product;
             1544          (ii) may open a [package] container containing, or supposed to contain, an article sold,
             1545      or exposed for sale, held in possession, or manufactured with intent to sell in violation of this
             1546      title or commission rules; and
             1547          (iii) may inspect the contents and take samples of the contents for analysis from a
             1548      [package] container described in this Subsection (1).
             1549          (2) The following shall assist, when requested by a person described in Subsection (1),
             1550      in tracing, finding, or discovering the presence of an article prohibited by this title or
             1551      commission rules to the extent assistance would not infringe upon the person's federal and state
             1552      constitutional rights:
             1553          (a) a dealer;
             1554          (b) a clerk;
             1555          (c) a bookkeeper;
             1556          (d) an express agent;
             1557          (e) a railroad or airline official;
             1558          (f) a common or other carrier; and
             1559          (g) an employee of a person listed in this Subsection (2).
             1560          Section 19. Section 32B-4-206 (Effective 07/01/11) is amended to read:
             1561           32B-4-206 (Effective 07/01/11). Searches, seizures, forfeitures, and fines.
             1562          (1) The following are subject to forfeiture pursuant to Title 24, Chapter 1, Utah
             1563      Uniform Forfeiture Procedures Act:
             1564          (a) an alcoholic product possessed, purchased, used, stored, sold, offered for sale,
             1565      furnished, given, received, warehoused, manufactured, distributed, shipped, carried,
             1566      transported, or adulterated in violation of this title or commission rules;
             1567          (b) a [package] container or property used or intended for use as a [package] container
             1568      for an alcoholic product in violation of this title or commission rules;
             1569          (c) raw materials, products, and equipment used, or intended for use, in manufacturing,


             1570      processing, delivering, importing, exporting, or adulterating an alcoholic product in violation
             1571      of this title or commission rules;
             1572          (d) implements, furniture, fixtures, or other personal property used or kept for a
             1573      violation of this title or commission rules;
             1574          (e) conveyances including an aircraft, vehicle, or vessel used or intended for use, to
             1575      transport or in any manner facilitate the transportation, sale, receipt, possession, or
             1576      concealment of property described in Subsection (1)(a), (b), (c), or (d); and
             1577          (f) a record used or intended for use in violation of this title or commission rules.
             1578          (2) (a) Property subject to forfeiture under this title may be seized by a peace officer of
             1579      this state or any other person authorized by law upon process issued by a court having
             1580      jurisdiction over the property in accordance with the Utah Rules of Criminal Procedure relating
             1581      to search warrants or administrative warrants.
             1582          (b) Notwithstanding Subsection (2)(a), seizure without process may be made when:
             1583          (i) the seizure is incident to an arrest or search under a search warrant or an inspection
             1584      under an administrative inspection warrant;
             1585          (ii) the property subject to seizure has been the subject of a prior judgment in favor of
             1586      the state in a criminal injunction or forfeiture proceeding under this title;
             1587          (iii) the peace officer or other person authorized by law has probable cause to believe
             1588      that the property is directly or indirectly dangerous to health or safety; or
             1589          (iv) the peace officer or other person authorized by law has probable cause to believe
             1590      that the property is being or has been used, intended to be used, held, or kept in violation of this
             1591      title or commission rules.
             1592          (3) If property is seized pursuant to a search or administrative warrant, a peace officer
             1593      or other person authorized by law shall comply with the requirements of the Utah Rules of
             1594      Criminal Procedure.
             1595          (4) (a) If property is seized without process:
             1596          (i) the peace officer or other person authorized by law shall make a return of the peace
             1597      officer's or person's acts without delay directly to the district court of the county in which the


             1598      property was located; and
             1599          (ii) the district court shall have jurisdiction of the case.
             1600          (b) A return shall describe:
             1601          (i) the property seized;
             1602          (ii) the place where the property is seized; and
             1603          (iii) any person in apparent possession of the property.
             1604          (c) A peace officer or other person described in Subsection (4)(a) shall promptly:
             1605          (i) deliver a written inventory of anything seized to any person in apparent authority at
             1606      the premises where the seizure is made; or
             1607          (ii) post a written inventory of anything seized in a conspicuous place at the premises.
             1608          (d) A written inventory under this Subsection (4) shall state the place where the
             1609      property is being held.
             1610          (5) Property taken or detained under this section is not repleviable but is considered in
             1611      custody of the law enforcement agency making the seizure subject only to the orders of the
             1612      court or the official having jurisdiction. When property is seized under this title, the
             1613      appropriate person or agency may:
             1614          (a) place the property under seal;
             1615          (b) remove the property to a place designated by:
             1616          (i) the person or agency; or
             1617          (ii) the warrant under which the property is seized; or
             1618          (c) take custody of the property and remove the property to an appropriate location for
             1619      disposition in accordance with law.
             1620          (6) When property is subject to forfeiture under this section, a proceeding shall be
             1621      instituted in accordance with Title 24, Chapter 1, Utah Uniform Forfeiture Procedures Act.
             1622          (7) When property is ordered forfeited under Title 24, Chapter 1, Utah Uniform
             1623      Forfeiture Procedures Act, by a finding of a court that no person is entitled to recover the
             1624      property, the property, if an alcohol [package] container or product used as a [package]
             1625      container for an alcoholic product, shall be disposed of as follows:


             1626          (a) An alcoholic product shall be sold in accordance with Section 24-1-17 if the
             1627      alcoholic product is:
             1628          (i) unadulterated, pure, and free from crude, unrectified, or impure form of ethylic
             1629      alcohol, or any other deleterious substance or liquid; and
             1630          (ii) otherwise in saleable condition.
             1631          (b) If the alcoholic product is impure, adulterated, or otherwise unfit for sale, the
             1632      department shall destroy the alcoholic product and its [package] container under competent
             1633      supervision.
             1634          (8) Except when otherwise provided, a fine or forfeiture levied under this title shall be
             1635      paid to the county treasurer of the county in which the prosecution occurred.
             1636          Section 20. Section 32B-4-208 (Effective 07/01/11) is amended to read:
             1637           32B-4-208 (Effective 07/01/11). Nuisances.
             1638          (1) As used in this section, "nuisance" means:
             1639          (a) a room, house, building, structure, place, aircraft, vehicle, vessel, or other
             1640      conveyance where an alcoholic product is possessed, purchased, used, kept, stored, sold,
             1641      offered for sale, furnished, given, received, warehoused, manufactured, distributed, shipped,
             1642      carried, transported, or adulterated in violation of this title; or
             1643          (b) an alcoholic product, [package] container, equipment, or other property kept or
             1644      used in maintaining an item or property described in Subsection (1)(a).
             1645          (2) A person who maintains or assists in maintaining a nuisance is guilty of a class B
             1646      misdemeanor.
             1647          (3) If a person has knowledge that, or has reason to believe that the person's room,
             1648      house, building, structure, place, aircraft, vehicle, vessel, or other conveyance is occupied or
             1649      used as a nuisance, or allows it to be occupied or used as a nuisance, the nuisance property is
             1650      subject to a lien for and may be sold to pay the fines and costs assessed against the person
             1651      guilty of the common nuisance. This lien may be enforced by action in a court having
             1652      jurisdiction.
             1653          (4) (a) The department shall bring an action to abate a nuisance in the name of the


             1654      department in a court having jurisdiction.
             1655          (b) An action brought under this Subsection (4) is an action in equity.
             1656          (c) The department may not be required to post a bond to initiate an action under this
             1657      Subsection (4).
             1658          (d) A court may issue:
             1659          (i) if it appears that a nuisance exists, a temporary writ of injunction restraining the
             1660      defendant from conducting or permitting the continuance of the nuisance until the conclusion
             1661      of the trial; and
             1662          (ii) an order restraining the defendant and any other person from removing or
             1663      interfering with an alcoholic product, [package] container, equipment, or other property kept or
             1664      used in violation of this title or commission rules.
             1665          (e) In an action to abate or enjoin a nuisance, the court need not find that the property
             1666      involved is being unlawfully used at the time of the hearing.
             1667          (f) On finding that a material allegation of a petition or complaint is true, the court
             1668      shall order that an alcoholic product may not be possessed, purchased, used, kept, stored, sold,
             1669      offered for sale, furnished, given, received, warehoused, manufactured, distributed, shipped,
             1670      carried, transported, or adulterated, in any portion of the room, house, building, structure,
             1671      place, aircraft, vehicle, vessel, or other conveyance.
             1672          (g) Upon judgment of a court ordering abatement of the nuisance, the court may order
             1673      that the premises or conveyance in question may not be occupied or used for any purpose for
             1674      one year, except under Subsection (4)(h).
             1675          (h) A court may permit premises or conveyance described in Subsection (4)(g) to be
             1676      occupied or used:
             1677          (i) if its owner, lessee, tenant, or occupant gives bond in an appropriate amount with
             1678      sufficient surety, approved by the court, payable to the state;
             1679          (ii) on the condition that an alcoholic product will not be present in or on the premises
             1680      or the conveyance; and
             1681          (iii) on the condition that payment of the fines, costs, and damages assessed for


             1682      violation of this title or commission rules will be made.
             1683          (5) If a tenant of the premises uses the premises or any part of the premises in
             1684      maintaining a nuisance, or knowingly permits use by another, the lease is void and the right to
             1685      possession reverts to the owner or lessor who is entitled to the remedy provided by law for
             1686      forcible detention of the premises.
             1687          (6) A person is guilty of assisting in maintaining a nuisance as provided in Section
             1688      76-10-804 , if that person:
             1689          (a) knowingly permits a building or premises owned or leased by the person, or under
             1690      the person's control, or any part of a building or premises, to be used in maintaining a nuisance;
             1691      or
             1692          (b) after being notified in writing by a prosecutor or other citizen of the unlawful use,
             1693      fails to take all proper measures to:
             1694          (i) abate the nuisance; or
             1695          (ii) remove the one or more persons from the premises.
             1696          Section 21. Section 32B-4-406 (Effective 07/01/11) is amended to read:
             1697           32B-4-406 (Effective 07/01/11). Unlawful sale, offer for sale, or furnishing of an
             1698      alcoholic product.
             1699          (1) Except as provided in Subsection (2):
             1700          (a) a person may not sell, offer for sale, or furnish beer to the general public in a
             1701      [package] container that exceeds two liters; and
             1702          (b) a person may not purchase or possess beer in a [package] container that exceeds
             1703      two liters.
             1704          (2) (a) A retail licensee may sell, offer for sale, or furnish beer on draft subject to the
             1705      requirements of Section 32B-5-304 .
             1706          (b) A retail licensee may purchase or possess beer in a [package] container that exceeds
             1707      two liters to be dispensed on draft for consumption subject to the requirements of Section
             1708      32B-5-304 .
             1709          (c) A beer wholesaler licensee may sell, offer for sale, or furnish beer in a [package]


             1710      container that exceeds two liters to a retail licensee described in Subsection (2)(a).
             1711          (3) On or after October 1, 2011:
             1712          (a) A person may not sell, offer for sale, or furnish heavy beer in a container that
             1713      exceeds two liters.
             1714          (b) A person may not purchase or possess heavy beer in a container that exceeds two
             1715      liters.
             1716          Section 22. Section 32B-4-420 (Effective 07/01/11) is amended to read:
             1717           32B-4-420 (Effective 07/01/11). Unlawful adulteration.
             1718          (1) For purposes of this section, "tamper" means to do one or more of the following to
             1719      the contents of a [package] container:
             1720          (a) fortify;
             1721          (b) adulterate;
             1722          (c) contaminate;
             1723          (d) dilute;
             1724          (e) change its character or purity; or
             1725          (f) otherwise change.
             1726          (2) A person may not, for any purpose, mix or allow to be mixed with an alcoholic
             1727      product sold or supplied by the person as a beverage any of the following:
             1728          (a) a drug;
             1729          (b) methylic alcohol;
             1730          (c) a crude, unrectified, or impure form of ethylic alcohol; or
             1731          (d) another deleterious substance.
             1732          (3) (a) The following may not engage in an act listed in Subsection (3)(b):
             1733          (i) a package agent;
             1734          (ii) a retail licensee;
             1735          (iii) a permittee;
             1736          (iv) a beer wholesaler licensee;
             1737          (v) a liquor warehouser licensee;


             1738          (vi) a supplier; or
             1739          (vii) an importer.
             1740          (b) A person listed in Subsection (3)(a) may not:
             1741          (i) tamper with the contents of a [package] container of alcoholic product as originally
             1742      marketed by a manufacturer;
             1743          (ii) refill or partly refill with any substance the contents of an original [package]
             1744      container of alcoholic product as originally marketed by a manufacturer;
             1745          (iii) misrepresent the brand of an alcoholic product sold or offered for sale; or
             1746          (iv) sell or furnish a brand of alcoholic product that is not the same as that ordered by a
             1747      purchaser without first advising the purchaser of the difference.
             1748          Section 23. Section 32B-4-705 (Effective 07/01/11) is amended to read:
             1749           32B-4-705 (Effective 07/01/11). Exclusions from tied house prohibitions.
             1750          (1) Notwithstanding Subsection 32B-4-704 (3), a thing of value may be furnished by an
             1751      industry member to a retailer under the conditions and within the limitations prescribed in:
             1752          (a) this section; and
             1753          (b) the applicable federal laws cited in this section.
             1754          (2) The following may be furnished by an industry member:
             1755          (a) a product display as provided in 27 C.F.R. Sec. 6.83;
             1756          (b) point of sale advertising material or a consumer advertising specialty as provided in
             1757      27 C.F.R. Sec. 6.84;
             1758          (c) a thing of value to a temporary retailer to the extent allowed in 27 C.F.R. Sec. 6.85;
             1759          (d) equipment and supplies as provided in 27 C.F.R. Sec. 6.88;
             1760          (e) combination packaging as provided in 27 C.F.R. Sec. 6.93;
             1761          (f) an educational seminar as provided in 27 C.F.R. Sec. 6.94;
             1762          (g) a consumer promotion as provided in 27 C.F.R. Sec. 6.96;
             1763          (h) an advertising service as provided in 27 C.F.R. Sec. 6.98;
             1764          (i) stocking, rotation, and pricing service as provided in 27 C.F.R. Sec. 6.99;
             1765          (j) merchandise as provided in 27 C.F.R. Sec. 6.101; and


             1766          (k) an outside sign as provided in 27 C.F.R. Sec. 6.102.
             1767          (3) The following exceptions provided in federal law are not applicable:
             1768          (a) the exception for a sample as provided in 27 C.F.R. Sec. 6.91;
             1769          (b) the exception for a consumer tasting or sampling at a retail establishment as
             1770      provided in 27 C.F.R. Sec. 6.95; and
             1771          (c) the exception for participation in a retailer association activity provided in 27
             1772      C.F.R. Sec. 6.100.
             1773          (4) To the extent required by 27 C.F.R. Sec. 6.81(b) an industry member shall maintain
             1774      a record:
             1775          (a) of an item furnished to a retailer;
             1776          (b) on the premises of the industry member; and
             1777          (c) for a three-year period.
             1778          (5) A sample of liquor may be provided to the department under the following
             1779      conditions:
             1780          (a) With the department's permission, an industry member may submit a department
             1781      sample to the department for product testing, analysis, and sampling.
             1782          (b) No more than two department samples of a particular type, vintage, and production
             1783      lot of a particular branded product may be submitted to the department for department testing,
             1784      analysis, and sampling within a consecutive 120-day period.
             1785          (c) (i) A department sample may not exceed 1 liter.
             1786          (ii) Notwithstanding Subsection (5)(c)(i), a department sample of the following may
             1787      not exceed 1.5 liters unless that exact alcoholic product is only commercially packaged in a
             1788      larger size, not to exceed 5 liters:
             1789          (A) wine;
             1790          (B) heavy beer; or
             1791          (C) a flavored malt beverage.
             1792          (d) A department sample submitted to the department:
             1793          (i) shall be shipped prepaid by the industry member by common carrier; and


             1794          (ii) may not be shipped by United States mail directly to the department's central
             1795      administrative warehouse office.
             1796          (e) A department sample may not be shipped to any other location within the state.
             1797          (f) The industry member shall submit with a department sample submitted to the
             1798      department a letter from the industry member that clearly:
             1799          (i) identifies the product as a "department sample"; and
             1800          (ii) states the FOB case price of the product.
             1801          (g) (i) The department may transfer a listed item from current stock:
             1802          (A) for use as a comparison control sample; or
             1803          (B) to verify product spoilage as considered appropriate.
             1804          (ii) The department shall charge back a sample transferred under this Subsection (5)(g)
             1805      to the respective industry member.
             1806          (h) The department shall:
             1807          (i) account for, label, and record a department sample received or transferred;
             1808          (ii) account for the department sample's disposition; and
             1809          (iii) maintain a record of the sample and its disposition for a two-year period.
             1810          (i) The department shall affix to each [package] container of a department sample a
             1811      label clearly identifying the product as a "department sample."
             1812          (j) The department shall dispose of a department sample delivered to the department or
             1813      transferred from the department's current stock in one of the following ways as chosen by the
             1814      department:
             1815          (i) test and analyze the department sample, with the remaining contents destroyed
             1816      under controlled and audited conditions established by the department;
             1817          (ii) destroy the entire contents of the department sample under controlled and audited
             1818      conditions established by the department; or
             1819          (iii) add the department sample to the inventory of the department for sale to the
             1820      public.
             1821          (k) A person other than an authorized department official may not be in possession of a


             1822      department sample except as otherwise provided.
             1823          (l) The department shall handle a liquor item received by the department from a
             1824      supplier that is not designated as a sample by the supplier, but that is an item not specifically
             1825      listed on a department purchase order, in accordance with this Subsection (5).
             1826          (m) The department may not use its money to pay freight or charges on a sample or a
             1827      liquor item:
             1828          (i) shipped to the department by a supplier; and
             1829          (ii) not listed on a department purchase order.
             1830          (6) A sample of beer may be provided by a beer industry member to a retailer under the
             1831      conditions listed in this Subsection (6).
             1832          (a) A sample of beer may be provided by an industry member only to a retailer who has
             1833      not purchased the brand of beer from that industry member within the last 12 months.
             1834          (b) For each retailer, the industry member may give not more than three gallons of any
             1835      brand of beer, except that if a particular product is not available in a size within the quantity
             1836      limitation, an industry member may furnish the next largest size.
             1837          (7) An educational seminar may involve an industry member under the conditions
             1838      listed in this Subsection (7).
             1839          (a) An industry member may provide or participate in an educational seminar:
             1840          (i) involving:
             1841          (A) the department;
             1842          (B) a retailer;
             1843          (C) a holder of a scientific or educational special use permit;
             1844          (D) another industry member; or
             1845          (E) an employee of a person listed in Subsections (7)(a)(i)(A) through (D); and
             1846          (ii) regarding a topic such as:
             1847          (A) merchandising and product knowledge;
             1848          (B) use of equipment; and
             1849          (C) a tour of an alcoholic product manufacturing facility.


             1850          (b) An industry member may not pay the expenses of or compensate a person who is a
             1851      department employee, a retailer, or a permittee for attending a seminar or tour described in
             1852      Subsection (7)(a).
             1853          (8) (a) A liquor industry member may conduct a tasting of a liquor product of the
             1854      industry member:
             1855          (i) for the department, at the department's request; and
             1856          (ii) for a licensed industry representative, but only at the department's central
             1857      administrative warehouse office.
             1858          (b) A liquor industry member may only use a department sample or industry
             1859      representative sample when conducting a tasting of the industry member's liquor product.
             1860          (c) A beer industry member may conduct a tasting of a beer product for a beer retailer
             1861      either at:
             1862          (i) the industry member's premises; or
             1863          (ii) a retail establishment.
             1864          (d) Except to the extent authorized by commission rule, an alcoholic product industry
             1865      member may not conduct tasting or sampling activities with:
             1866          (i) a retailer; or
             1867          (ii) a member of the general public.
             1868          (9) A beer industry member may participate in a beer retailer association activity to the
             1869      extent authorized by 27 C.F.R. Sec. 6.100.
             1870          (10) (a) An industry member may contribute to a charitable, civic, religious, fraternal,
             1871      educational, or community activity, except the contribution may not be given to influence a
             1872      retailer in the selection of a product that may be sold at the activity.
             1873          (b) An industry member or retailer violates this Subsection (10) if:
             1874          (i) the industry member's contribution influences, directly or indirectly, the retailer in
             1875      the selection of a product; and
             1876          (ii) a competitor's product is excluded in whole or in part from sale at the activity.
             1877          (11) (a) An industry member may lease or furnish equipment listed in Subsection


             1878      (11)(b) to a retailer if:
             1879          (i) the equipment is leased or furnished for a special event;
             1880          (ii) a reasonable rental or service fee is charged for the equipment; and
             1881          (iii) the period for which the equipment is leased or furnished does not exceed 30 days.
             1882          (b) This Subsection (11) applies to the following equipment:
             1883          (i) a picnic pump;
             1884          (ii) a cold plate;
             1885          (iii) a tub;
             1886          (iv) a keg box;
             1887          (v) a refrigerated trailer;
             1888          (vi) a refrigerated van; or
             1889          (vii) a refrigerated draft system.
             1890          (12) (a) A liquor industry member may assist the department in:
             1891          (i) ordering, shipping, and delivering merchandise;
             1892          (ii) new product notification;
             1893          (iii) listing and delisting information;
             1894          (iv) price quotations;
             1895          (v) product sales analysis;
             1896          (vi) shelf management; and
             1897          (vii) an educational seminar.
             1898          (b) (i) A liquor industry member may, to acquire a new listing:
             1899          (A) solicit an order from the department; and
             1900          (B) submit to the department a sample of the liquor industry member's products under
             1901      Subsection (5) and price lists.
             1902          (ii) (A) An industry member is confined to the customer areas when the industry
             1903      member visits a state store or package agency unless otherwise approved.
             1904          (B) An industry member is confined to the office area of a state warehouse when the
             1905      industry member visits a state warehouse unless otherwise approved.


             1906          (13) A beer industry member may assist a beer retailer in:
             1907          (a) ordering, shipping, and delivering beer merchandise;
             1908          (b) new product notification;
             1909          (c) listing and delisting information;
             1910          (d) price quotations;
             1911          (e) product sales analysis;
             1912          (f) shelf management; and
             1913          (g) an educational seminar.
             1914          (14) A beer industry member may, to acquire a new listing:
             1915          (a) solicit an order from a beer retailer; and
             1916          (b) submit to a beer retailer a sample of the beer industry member's beer products under
             1917      Subsection (5) and price lists.
             1918          Section 24. Section 32B-5-301 (Effective 07/01/11) is amended to read:
             1919           32B-5-301 (Effective 07/01/11). General operational requirements.
             1920          (1) (a) A retail licensee and staff of a retail licensee shall comply with this title and the
             1921      rules of the commission, including the relevant part under Chapter 6, Specific Retail License
             1922      Act, for the specific type of retail license.
             1923          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             1924      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             1925          (i) a retail licensee;
             1926          (ii) individual staff of a retail licensee; or
             1927          (iii) both a retail licensee and staff of the retail licensee.
             1928          (2) (a) If there is a conflict between this part and the relevant part under Chapter 6,
             1929      Specific Retail License Act, for the specific type of retail license, the relevant part under
             1930      Chapter 6 governs.
             1931          (b) Notwithstanding that this part refers to "liquor" or an "alcoholic product," a retail
             1932      licensee may only sell, offer for sale, furnish, or allow the consumption of an alcoholic product
             1933      specifically authorized by the relevant part under Chapter 6, Specific Retail License Act.


             1934          (c) Notwithstanding that this part or the relevant part under Chapter 6, Specific Retail
             1935      License Act, refers to "retail licensee," staff of the retail licensee is subject to the same
             1936      requirement or prohibition.
             1937          (3) (a) A retail licensee shall display in a prominent place in the licensed premises[:
             1938      (a)] the retail license that is issued by the department[; and].
             1939          (b) A retail licensee shall display in a prominent place a sign in large letters [stating:
             1940      "Warning: Driving under the influence of alcohol or drugs is a serious crime that is prosecuted
             1941      aggressively in Utah."] that consists of text in the following order:
             1942          (i) a header that reads: "WARNING";
             1943          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             1944      can cause birth defects and permanent brain damage for the child.";
             1945          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             1946      [insert most current toll-free number] with questions or for more information.";
             1947          (iv) a header that reads: "WARNING"; and
             1948          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             1949      serious crime that is prosecuted aggressively in Utah."
             1950          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
             1951      font style than the text described in Subsections (3)(b)(iv) and (v).
             1952          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
             1953      same font size.
             1954          (d) The Department of Health shall work with the commission and department to
             1955      facilitate consistency in the format of a sign required under this section.
             1956          (4) A retail licensee may not on the licensed premises:
             1957          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             1958      Chapter 10, Part 11, Gambling;
             1959          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1960      Part 11, Gambling; or
             1961          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires


             1962      the risking of something of value for a return or for an outcome when the return or outcome is
             1963      based upon an element of chance, excluding the playing of an amusement device that confers
             1964      only an immediate and unrecorded right of replay not exchangeable for value.
             1965          (5) A retail licensee may not knowingly allow a person on the licensed premises to, in
             1966      violation of Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
             1967      Paraphernalia Act:
             1968          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             1969      58-37-2 ; or
             1970          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             1971      Section 58-37a-3 .
             1972          (6) Upon the presentation of credentials, at any time during which a retail licensee is
             1973      open for the transaction of business, the retail licensee shall immediately:
             1974          (a) admit a commissioner, authorized department employee, or law enforcement officer
             1975      to the retail licensee's premises; and
             1976          (b) permit, without hindrance or delay, the person described in Subsection (6)(a) to
             1977      inspect completely:
             1978          (i) the entire premises of the retail licensee; and
             1979          (ii) the records of the retail licensee.
             1980          (7) An individual may not consume an alcoholic product on the licensed premises of a
             1981      retail licensee on any day during the period:
             1982          (a) beginning one hour after the time of day that the period during which a retail
             1983      licensee may not sell, offer for sale, or furnish an alcoholic product on the licensed premises
             1984      begins; and
             1985          (b) ending at the time specified in the relevant part under Chapter 6, Specific Retail
             1986      License Act, for the type of retail license when the retail licensee may first sell, offer for sale,
             1987      or furnish an alcoholic product on the licensed premises on that day.
             1988          Section 25. Section 32B-5-304 (Effective 07/01/11) is amended to read:
             1989           32B-5-304 (Effective 07/01/11). Portions in which alcoholic product may be sold.


             1990          (1) A retail licensee may sell, offer for sale, or furnish a primary spirituous liquor only
             1991      in a quantity that does not exceed 1.5 ounces per beverage dispensed through a calibrated
             1992      metered dispensing system approved by the department in accordance with commission rules
             1993      adopted under this title, except that:
             1994          (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
             1995      system if used as a secondary flavoring ingredient in a beverage subject to the following
             1996      requirements:
             1997          (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
             1998      a primary spirituous liquor;
             1999          (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
             2000          (iii) the retail licensee shall designate a location where flavorings are stored on the
             2001      floor plan submitted to the department; and
             2002          (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
             2003          (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
             2004      system if used:
             2005          (i) as a flavoring on a dessert; and
             2006          (ii) in the preparation of a flaming food dish, drink, or dessert; and
             2007          (c) a patron may have no more than 2.5 ounces of spirituous liquor at a time.
             2008          (2) (a) (i) A retail licensee may sell, offer for sale, or furnish wine by the glass or in an
             2009      individual portion that does not exceed 5 ounces per glass or individual portion.
             2010          (ii) A retail licensee may sell, offer for sale, or furnish an individual portion of wine to
             2011      a patron in more than one glass if the total amount of wine does not exceed 5 ounces.
             2012          (b) (i) A retail licensee may sell, offer for sale, or furnish wine in a [package] container
             2013      not exceeding 1.5 liters at a price fixed by the commission to a table of four or more persons.
             2014          (ii) A retail licensee may sell, offer for sale, or furnish wine in a [package] container
             2015      not to exceed 750 milliliters at a price fixed by the commission to a table of less than four
             2016      persons.
             2017          (3) A retail licensee may sell, offer for sale, or furnish heavy beer in an original


             2018      [package] container at a price fixed by the commission, except that the original [package]
             2019      container may not exceed one liter.
             2020          (4) A retail licensee may sell, offer for sale, or furnish a flavored malt beverage in an
             2021      original [package] container at a price fixed by the commission, except that the original
             2022      [package] container may not exceed one liter.
             2023          (5) (a) Subject to Subsection (5)(b), a retail licensee may sell, offer for sale, or furnish
             2024      beer for on-premise consumption:
             2025          (i) in an open original [package] container; and
             2026          (ii) in a [package] container on draft.
             2027          (b) A retail licensee may not sell, offer for sale, or furnish beer under Subsection (5)(a):
             2028          (i) in a size of [package] container that exceeds two liters; or
             2029          (ii) to an individual patron in a size of [package] container that exceeds one liter.
             2030          Section 26. Section 32B-5-305 (Effective 07/01/11) is amended to read:
             2031           32B-5-305 (Effective 07/01/11). Pricing of alcoholic product -- Other charge.
             2032          (1) (a) A retail licensee may sell, offer for sale, or furnish liquor only at a price fixed by
             2033      the commission.
             2034          (b) A retail licensee may not sell [liquor] an alcoholic product at a discount price on
             2035      any date or at any time.
             2036          (2) (a) A retail licensee may not sell, offer for sale, or furnish an alcoholic product at
             2037      less than the cost of the alcoholic product to the retail licensee.
             2038          (b) A retail licensee may not sell, offer for sale, or furnish an alcoholic product at a
             2039      special or reduced price that encourages over consumption or intoxication.
             2040          (c) A retail licensee may not sell, offer for sale, or furnish an alcoholic product at a
             2041      special or reduced price for only certain hours of the retail licensee's business day, such as a
             2042      "happy hour."
             2043          (d) A retail licensee may not sell, offer for sale, or furnish more than one alcoholic
             2044      product for the price of a single alcoholic product.
             2045          (e) A retail licensee may not sell, offer for sale, or furnish an indefinite or unlimited


             2046      number of alcoholic products during a set period for a fixed price.
             2047          (f) A retail licensee may not engage in a promotion involving or offering a free
             2048      alcoholic product to the general public.
             2049          (3) As authorized by commission rule, a retail licensee may charge a patron for
             2050      providing:
             2051          (a) a service related to liquor purchased at the licensed premises; or
             2052          (b) wine service performed for wine carried in by a patron in accordance with Section
             2053      32B-5-307 .
             2054          Section 27. Section 32B-5-307 (Effective 07/01/11) is amended to read:
             2055           32B-5-307 (Effective 07/01/11). Bringing onto or removing alcoholic product
             2056      from premises.
             2057          (1) Except as provided in Subsection (3):
             2058          (a) A person may not bring onto the licensed premises of a retail licensee an alcoholic
             2059      product for on-premise consumption.
             2060          (b) A retail licensee may not allow a person to:
             2061          (i) bring onto licensed premises an alcoholic product for on-premise consumption; or
             2062          (ii) consume an alcoholic product brought onto the licensed premises by a person other
             2063      than the retail licensee.
             2064          (2) Except as provided in Subsection (3):
             2065          (a) A person may not carry from a licensed premises of a retail licensee an open
             2066      [package] container that:
             2067          (i) is used primarily for drinking purposes; and
             2068          (ii) contains an alcoholic product.
             2069          (b) A retail licensee may not permit a patron to carry from the licensed premises an
             2070      open [package] container described in Subsection (2)(a).
             2071          (3) (a) A patron may bring a bottled wine onto the premises of a retail licensee for
             2072      on-premise consumption if:
             2073          (i) permitted by the retail licensee; and


             2074          (ii) the retail licensee is authorized to sell, offer for sale, or furnish wine.
             2075          (b) If a patron carries bottled wine onto the licensed premises of a retail licensee, the
             2076      patron shall deliver the bottled wine to a server or other representative of the retail licensee
             2077      upon entering the licensed premises.
             2078          (c) A retail licensee authorized to sell, offer for sale, or furnish wine, may provide a
             2079      wine service for a bottled wine carried onto the licensed premises in accordance with this
             2080      Subsection (3).
             2081          (d) A patron may remove from a licensed premises the unconsumed contents of a bottle
             2082      of wine purchased in the licensed premises, or brought onto the licensed premises in
             2083      accordance with this Subsection (3), only if before removal the bottle is recorked or recapped.
             2084          Section 28. Section 32B-5-309 (Effective 07/01/11) is amended to read:
             2085           32B-5-309 (Effective 07/01/11). Ceasing operation.
             2086          (1) [(a)] Except as provided in Subsection [(1)(h)] (8), a retail licensee may not close
             2087      or cease operation for a period longer than 240 hours, unless:
             2088          [(i)] (a) the retail licensee notifies the department in writing at least seven days before
             2089      the day on which the retail licensee closes or ceases operation; and
             2090          [(ii)] (b) the closure or cessation of operation is first approved by the department.
             2091          [(b)] (2) Notwithstanding Subsection (1)[(a)], in the case of emergency closure, a retail
             2092      licensee shall immediately notify the department by telephone.
             2093          [(c) (i)] (3) (a) The department may authorize a closure or cessation of operation of a
             2094      retail licensee for a period not to exceed 60 days.
             2095          [(ii)] (b) The department may extend the initial period an additional 30 days upon:
             2096          [(A)] (i) written request of the retail licensee; and
             2097          [(B)] (ii) a showing of good cause.
             2098          [(d)] (4) A closure or cessation of operation may not exceed a total of 90 days without
             2099      commission approval.
             2100          [(e)] (5) A notice required under this [Subsection (1)] section shall include:
             2101          [(i)] (a) the dates of closure or cessation of operation;


             2102          [(ii)] (b) the reason for the closure or cessation of operation; and
             2103          [(iii)] (c) the date on which the retail licensee will reopen or resume operation.
             2104          [(f)] (6) Failure of a retail licensee to provide notice and to obtain department approval
             2105      before closure or cessation of operation results in an automatic forfeiture of:
             2106          [(i)] (a) the retail license; and
             2107          [(ii)] (b) the unused portion of the retail license fee for the remainder of the retail
             2108      license year effective immediately.
             2109          [(g)] (7) Failure of a retail licensee to reopen or resume operation by the approved date
             2110      results in an automatic forfeiture of:
             2111          [(i)] (a) the retail license; and
             2112          [(ii)] (b) the unused portion of the retail license fee for the remainder of the retail
             2113      license year.
             2114          [(h) This Subsection (1)]
             2115          (8) This section does not apply to:
             2116          [(i)] (a) an on-premise beer retailer who is not a tavern; or
             2117          [(ii)] (b) an airport lounge licensee.
             2118          [(2) A retail licensee may not transfer a retail license from one location to another
             2119      location, without prior written approval of the commission.]
             2120          [(3) (a) A person, having been issued a retail license may not sell, transfer, assign,
             2121      exchange, barter, give, or attempt in any way to dispose of the retail license to another person
             2122      whether for monetary gain or not.]
             2123          [(b) A retail license has no monetary value for any type of disposition.]
             2124          Section 29. Section 32B-6-102 (Effective 07/01/11) is amended to read:
             2125           32B-6-102 (Effective 07/01/11). Definitions.
             2126          [As used in this chapter:]
             2127          [(1) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
             2128      full-service restaurant licensee or limited-service restaurant licensee that:]
             2129          [(i) as of May 11, 2009, has:]


             2130          [(A) patron seating at the bar structure;]
             2131          [(B) a partition at one or more locations on the bar structure that is along:]
             2132          [(I) the width of the bar structure; or]
             2133          [(II) the length of the bar structure; and]
             2134          [(C) facilities for the dispensing or storage of an alcoholic product:]
             2135          [(I) on the portion of the bar structure that is separated by the partition described in
             2136      Subsection (1)(a)(i)(B); or]
             2137          [(II) if the partition is described in Subsection (1)(a)(i)(B)(II), adjacent to the bar
             2138      structure in a manner visible to a patron sitting at the bar structure;]
             2139          [(ii) is not operational as of May 12, 2009, if:]
             2140          [(A) a person applying for a full-service restaurant license or limited-service restaurant
             2141      license:]
             2142          [(I) has as of May 12, 2009, a building permit to construct the restaurant;]
             2143          [(II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2144      defined by rule made by the commission; and]
             2145          [(III) is issued the full-service restaurant license or limited-service restaurant license by
             2146      no later than December 31, 2009; and]
             2147          [(B) once constructed, the licensed premises has a bar structure described in Subsection
             2148      (1)(a)(i);]
             2149          [(iii) as of May 12, 2009, has no patron seating at the bar structure; or]
             2150          [(iv) is not operational as of May 12, 2009, if:]
             2151          [(A) a person applying for a full-service restaurant license or limited-service restaurant
             2152      license:]
             2153          [(I) has as of May 12, 2009, a building permit to construct the restaurant;]
             2154          [(II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2155      defined by rule made by the commission; and]
             2156          [(III) is issued a full-service restaurant license or limited-service restaurant license by
             2157      no later than December 31, 2009; and]


             2158          [(B) once constructed, the licensed premises has a bar structure with no patron seating.]
             2159          [(b) "Grandfathered bar structure" does not include a grandfathered bar structure
             2160      described in Subsection (1)(a) on or after the day on which a restaurant remodels the
             2161      grandfathered bar structure, as defined by rule made by the commission.]
             2162          [(c) Subject to Subsection (1)(b), a grandfathered bar structure remains a grandfathered
             2163      bar structure notwithstanding whether a restaurant undergoes a change of ownership.]
             2164          [(2) "Seating grandfathered bar structure" means a grandfathered bar structure
             2165      described in Subsection (1)(a)(i) or (ii).]
             2166          Reserved
             2167          Section 30. Section 32B-6-202 (Effective 07/01/11) is amended to read:
             2168           32B-6-202 (Effective 07/01/11). Definitions.
             2169          [Reserved]
             2170          As used in this part:
             2171          (1) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
             2172      full-service restaurant licensee that:
             2173          (i) as of May 11, 2009, has:
             2174          (A) patron seating at the bar structure;
             2175          (B) a partition at one or more locations on the bar structure that is along:
             2176          (I) the width of the bar structure; or
             2177          (II) the length of the bar structure; and
             2178          (C) facilities for the dispensing or storage of an alcoholic product:
             2179          (I) on the portion of the bar structure that is separated by the partition described in
             2180      Subsection (1)(a)(i)(B); or
             2181          (II) if the partition as described in Subsection (1)(a)(i)(B)(II) is adjacent to the bar
             2182      structure in a manner visible to a patron sitting at the bar structure;
             2183          (ii) is not operational as of May 12, 2009, if:
             2184          (A) a person applying for a full-service restaurant license:
             2185          (I) has as of May 12, 2009, a building permit to construct the restaurant;


             2186          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2187      defined by rule made by the commission; and
             2188          (III) is issued the full-service restaurant license by no later than December 31, 2009;
             2189      and
             2190          (B) once constructed, the licensed premises has a bar structure described in Subsection
             2191      (1)(a)(i);
             2192          (iii) as of May 12, 2009, has no patron seating at the bar structure; or
             2193          (iv) is not operational as of May 12, 2009, if:
             2194          (A) a person applying for a full-service restaurant license:
             2195          (I) has as of May 12, 2009, a building permit to construct the restaurant;
             2196          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2197      defined by rule made by the commission; and
             2198          (III) is issued a full-service restaurant license by no later than December 31, 2009; and
             2199          (B) once constructed, the licensed premises has a bar structure with no patron seating.
             2200          (b) "Grandfathered bar structure" does not include a grandfathered bar structure
             2201      described in Subsection (1)(a) on or after the day on which a restaurant remodels the
             2202      grandfathered bar structure, as defined by rule made by the commission.
             2203          (c) Subject to Subsection (1)(b), a grandfathered bar structure remains a grandfathered
             2204      bar structure notwithstanding whether a restaurant undergoes a change of ownership.
             2205          (2) "Seating grandfathered bar structure" means:
             2206          (a) a grandfathered bar structure described in Subsection (1)(a)(i) or (ii); or
             2207          (b) a bar structure grandfathered under Section 32B-6-409 .
             2208          Section 31. Section 32B-6-203 (Effective 07/01/11) is amended to read:
             2209           32B-6-203 (Effective 07/01/11). Commission's power to issue full-service
             2210      restaurant license.
             2211          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             2212      an alcoholic product on its premises as a full-service restaurant, the person shall first obtain a
             2213      full-service restaurant license from the commission in accordance with this part.


             2214          (2) The commission may issue a full-service restaurant license to establish full-service
             2215      restaurant licensed premises at places and in numbers the commission considers proper for the
             2216      storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises
             2217      operated as a full-service restaurant.
             2218          (3) Subject to Section 32B-1-201 :
             2219          [(3)] (a) The commission may not issue a total number of full-service restaurant
             2220      licenses that at any time exceeds the number determined by dividing the population of the state
             2221      by [5,200] 4,925.
             2222          (b) The commission may issue a seasonal full-service restaurant license in accordance
             2223      with Section 32B-5-206 .
             2224          (c) (i) If the location, design, and construction of a hotel may require more than one
             2225      full-service restaurant sales location within the hotel to serve the public convenience, the
             2226      commission may authorize the sale, offer for sale, or furnishing of an alcoholic product at as
             2227      many as three full-service restaurant locations within the hotel under one full-service restaurant
             2228      license if:
             2229          (A) the hotel has a minimum of 150 guest rooms; and
             2230          (B) the locations under the full-service restaurant license are:
             2231          (I) within the same hotel; and
             2232          (II) on premises that are managed or operated, and owned or leased, by the full-service
             2233      restaurant licensee.
             2234          (ii) A facility other than a hotel shall have a separate full-service restaurant license for
             2235      each full-service restaurant where an alcoholic product is sold, offered for sale, or furnished.
             2236          (4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
             2237      full-service restaurant license for premises that do not meet the proximity requirements of
             2238      Section 32B-1-202 .
             2239          (b) With respect to the premises of a full-service restaurant license issued by the
             2240      commission that undergoes a change of ownership, the commission shall waive or vary the
             2241      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a


             2242      full-service restaurant license to the new owner of the premises if:
             2243          (i) when a full-service restaurant license was issued to a previous owner, the premises
             2244      met the proximity requirements of Subsection 32B-1-202 (2);
             2245          (ii) the premises has had a full-service restaurant license at all times since the
             2246      full-service restaurant license described in Subsection (4)(b)(i) was issued without a variance;
             2247      and
             2248          (iii) the community location was located within the proximity requirements of
             2249      Subsection 32B-1-202 (2) after the day on which the full-service restaurant license described in
             2250      Subsection (4)(b)(i) was issued.
             2251          Section 32. Section 32B-6-204 (Effective 07/01/11) is amended to read:
             2252           32B-6-204 (Effective 07/01/11). Specific licensing requirements for full-service
             2253      restaurant license.
             2254          (1) To obtain a full-service restaurant license a person shall comply with Chapter 5,
             2255      Part 2, Retail Licensing Process.
             2256          (2) (a) A full-service restaurant license expires on October 31 of each year.
             2257          (b) To renew a person's full-service restaurant license, a person shall comply with the
             2258      renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
             2259      September 30.
             2260          (3) (a) The nonrefundable application fee for a full-service restaurant license is [$250]
             2261      $300.
             2262          (b) The initial license fee for a full-service restaurant license is [$1,750] $2,000.
             2263          (c) The renewal fee for a full-service restaurant license is in the following amount:
             2264      Gross Cost of Liquor in Previous License Year for the Licensee        Renewal Fee
             2265          under $5,000                            [$750] $850
             2266          equals or exceeds $5,000 but less than $10,000        [$900] $1,050
             2267          equals or exceeds $10,000 but less than $25,000        [$1,250] $1,500
             2268          equals or exceeds $25,000                    [$1,500] $1,750
             2269          (4) The bond amount required for a full-service restaurant license is the penal sum of


             2270      $10,000.
             2271          Section 33. Section 32B-6-205 (Effective 07/01/11) is amended to read:
             2272           32B-6-205 (Effective 07/01/11). Specific operational requirements for a
             2273      full-service restaurant license.
             2274          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2275      Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
             2276      shall comply with this section.
             2277          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2278      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2279          (i) a full-service restaurant licensee;
             2280          (ii) individual staff of a full-service restaurant licensee; or
             2281          (iii) both a full-service restaurant licensee and staff of the full-service restaurant
             2282      licensee.
             2283          (2) In addition to complying with Subsection 32B-5-301 (3), a full-service restaurant
             2284      licensee shall display in a prominent place in the restaurant a list of the types and brand names
             2285      of liquor being furnished through the full-service restaurant licensee's calibrated metered
             2286      dispensing system.
             2287          (3) In addition to complying with Section 32B-5-303 , a full-service restaurant licensee
             2288      shall store an alcoholic product in a storage area described in Subsection (12)(a).
             2289          (4) (a) An individual who serves an alcoholic product in a full-service restaurant
             2290      licensee's premises shall make a written beverage tab for each table or group that orders or
             2291      consumes an alcoholic product on the premises.
             2292          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
             2293      alcoholic product ordered or consumed.
             2294          (5) A person's willingness to serve an alcoholic product may not be made a condition
             2295      of employment as a server with a full-service restaurant licensee.
             2296          (6) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish liquor at
             2297      the licensed premises on any day during the period that:


             2298          (i) begins at midnight; and
             2299          (ii) ends at [11:59] 11:29 a.m.
             2300          (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer during the
             2301      hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer,
             2302      except that a full-service restaurant licensee may not sell, offer for sale, or furnish beer before
             2303      11:30 a.m. on any day.
             2304          (7) A full-service restaurant licensee shall maintain at least 70% of its total restaurant
             2305      business from the sale of food, which does not include:
             2306          (a) mix for an alcoholic product; or
             2307          (b) a service charge.
             2308          (8) (a) A full-service restaurant may not sell, offer for sale, or furnish an alcoholic
             2309      product except in connection with an order for food prepared, sold, and furnished at the
             2310      licensed premises.
             2311          (b) A full-service restaurant shall maintain on the licensed premises adequate culinary
             2312      facilities for food preparation and dining accommodations.
             2313          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
             2314      more than two alcoholic products of any kind at a time before the patron.
             2315          (b) A patron may not have more than one spirituous liquor drink at a time before the
             2316      patron.
             2317          (c) An individual portion of wine is considered to be one alcoholic product under
             2318      Subsection (9)(a).
             2319          (10) A patron may consume an alcoholic product only:
             2320          (a) at:
             2321          (i) the patron's table;
             2322          (ii) a counter; or
             2323          (iii) a seating grandfathered bar structure; and
             2324          (b) where food is served.
             2325          (11) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an


             2326      alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
             2327      structure that is not a seating grandfathered bar structure.
             2328          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
             2329      may:
             2330          (i) sit;
             2331          (ii) be furnished an alcoholic product; and
             2332          (iii) consume an alcoholic product.
             2333          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
             2334      full-service restaurant licensee may not permit a minor to, and a minor may not:
             2335          (i) sit; or
             2336          (ii) consume food or beverages.
             2337          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is employed
             2338      by a full-service restaurant licensee:
             2339          (A) as provided in Subsection 32B-5-308 (2); or
             2340          (B) to perform maintenance and cleaning services during an hour when the full-service
             2341      restaurant licensee is not open for business.
             2342          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
             2343      remaining or sitting at the bar structure en route to an area of a full-service restaurant licensee's
             2344      premises in which the minor is permitted to be.
             2345          (12) Except as provided in Subsection 32B-5-307 (3), a full-service restaurant licensee
             2346      may dispense an alcoholic product only if:
             2347          (a) the alcoholic product is dispensed from:
             2348          (i) a grandfathered bar structure;
             2349          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
             2350      the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
             2351      12, 2009; or
             2352          (iii) an area that is:
             2353          (A) separated from an area for the consumption of food by a patron by a solid,


             2354      [opaque] translucent, permanent structural barrier such that the facilities for the storage or
             2355      dispensing of an alcoholic product are:
             2356          (I) not readily visible to a patron; and
             2357          (II) not accessible by a patron; and
             2358          (B) apart from an area used:
             2359          (I) for dining;
             2360          (II) for staging; or
             2361          (III) as a lobby or waiting area;
             2362          (b) the full-service restaurant licensee uses an alcoholic product that is:
             2363          (i) stored in an area described in Subsection (12)(a); or
             2364          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             2365          (A) immediately before the alcoholic product is dispensed it is in an unopened
             2366      [package] container;
             2367          (B) the unopened [package] container is taken to an area described in Subsection
             2368      (12)(a) before it is opened; and
             2369          (C) once opened, the [package] container is stored in an area described in Subsection
             2370      (12)(a); and
             2371          (c) any instrument or equipment used to dispense alcoholic product is located in an
             2372      area described in Subsection (12)(a).
             2373          (13) A full-service restaurant licensee may state in a food or alcoholic product menu a
             2374      charge or fee made in connection with the sale, service, or consumption of liquor including:
             2375          (a) a set-up charge;
             2376          (b) a service charge; or
             2377          (c) a chilling fee.
             2378          Section 34. Section 32B-6-302 (Effective 07/01/11) is amended to read:
             2379           32B-6-302 (Effective 07/01/11). Definitions.
             2380          [For purposes of this part, wine]
             2381          As used in this part:


             2382          (1) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
             2383      limited-service restaurant licensee that:
             2384          (i) as of May 11, 2009, has:
             2385          (A) patron seating at the bar structure;
             2386          (B) a partition at one or more locations on the bar structure that is along:
             2387          (I) the width of the bar structure; or
             2388          (II) the length of the bar structure; and
             2389          (C) facilities for the dispensing or storage of an alcoholic product:
             2390          (I) on the portion of the bar structure that is separated by the partition described in
             2391      Subsection (1)(a)(i)(B); or
             2392          (II) if the partition as described in Subsection (1)(a)(i)(B)(II) is adjacent to the bar
             2393      structure in a manner visible to a patron sitting at the bar structure;
             2394          (ii) is not operational as of May 12, 2009, if:
             2395          (A) a person applying for a limited-service restaurant license:
             2396          (I) has as of May 12, 2009, a building permit to construct the restaurant;
             2397          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2398      defined by rule made by the commission; and
             2399          (III) is issued the limited-service restaurant license by no later than December 31,
             2400      2009; and
             2401          (B) once constructed, the licensed premises has a bar structure described in Subsection
             2402      (1)(a)(i);
             2403          (iii) as of May 12, 2009, has no patron seating at the bar structure; or
             2404          (iv) is not operational as of May 12, 2009, if:
             2405          (A) a person applying for a limited-service restaurant license:
             2406          (I) has as of May 12, 2009, a building permit to construct the restaurant;
             2407          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
             2408      defined by rule made by the commission; and
             2409          (III) is issued a limited-service restaurant license by no later than December 31, 2009;


             2410      and
             2411          (B) once constructed, the licensed premises has a bar structure with no patron seating.
             2412          (b) "Grandfathered bar structure" does not include a grandfathered bar structure
             2413      described in Subsection (1)(a) on or after the day on which a restaurant remodels the
             2414      grandfathered bar structure, as defined by rule made by the commission.
             2415          (c) Subject to Subsection (1)(b), a grandfathered bar structure remains a grandfathered
             2416      bar structure notwithstanding whether a restaurant undergoes a change of ownership.
             2417          (2) "Seating grandfathered bar structure" means:
             2418          (a) a grandfathered bar structure described in Subsection (1)(a)(i) or (ii); or
             2419          (b) a bar structure grandfathered under Section 32B-6-409 .
             2420          (3) "Wine" includes an alcoholic beverage defined as wine under 27 U.S.C. Sec. 211
             2421      and 27 C.F.R. Sec. 4.10, including the following alcoholic beverages made in the manner of
             2422      wine containing not less than 7% and not more than 24% of alcohol by volume:
             2423          [(1)] (a) sparkling and carbonated wine;
             2424          [(2)] (b) wine made from condensed grape must;
             2425          [(3)] (c) wine made from other agricultural products than the juice of sound, ripe
             2426      grapes;
             2427          [(4)] (d) imitation wine;
             2428          [(5)] (e) compounds sold as wine;
             2429          [(6)] (f) vermouth;
             2430          [(7)] (g) cider;
             2431          [(8)] (h) perry; and
             2432          [(9)] (i) sake.
             2433          Section 35. Section 32B-6-303 (Effective 07/01/11) is amended to read:
             2434           32B-6-303 (Effective 07/01/11). Commission's power to issue limited-service
             2435      restaurant license.
             2436          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             2437      wine, heavy beer, or beer on its premises as a limited-service restaurant, the person shall first


             2438      obtain a limited-service restaurant license from the commission in accordance with this part.
             2439          (2) (a) The commission may issue a limited-service restaurant license to establish
             2440      limited-service restaurant licensed premises at places and in numbers the commission considers
             2441      proper for the storage, sale, offer for sale, furnishing, and consumption of wine, heavy beer, or
             2442      beer on premises operated as a limited-service restaurant.
             2443          (b) A person may not sell, offer for sale, furnish, or allow the consumption of the
             2444      following on the licensed premises of a limited-service restaurant licensee:
             2445          (i) spirituous liquor; or
             2446          (ii) a flavored malt beverage.
             2447          (3) Subject to Section 32B-1-201 :
             2448          [(3)] (a) The commission may not issue a total number of limited-service restaurant
             2449      licenses that at any time exceeds the number determined by dividing the population of the state
             2450      by [9,300] 8,373.
             2451          (b) The commission may issue a seasonal limited-service restaurant license in
             2452      accordance with Section 32B-5-206 .
             2453          (c) (i) If the location, design, and construction of a hotel may require more than one
             2454      limited-service restaurant sales location within the hotel to serve the public convenience, the
             2455      commission may authorize the sale of wine, heavy beer, and beer at as many as three
             2456      limited-service restaurant locations within the hotel under one limited-service restaurant license
             2457      if:
             2458          (A) the hotel has a minimum of 150 guest rooms; and
             2459          (B) the locations under the limited-service restaurant license are:
             2460          (I) within the same hotel; and
             2461          (II) on premises that are managed or operated, and owned or leased by the
             2462      limited-service restaurant licensee.
             2463          (ii) A facility other than a hotel shall have a separate limited-service restaurant license
             2464      for each limited-service restaurant where wine, heavy beer, or beer is sold, offered for sale, or
             2465      furnished.


             2466          (4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
             2467      limited-service restaurant license for premises that do not meet the proximity requirements of
             2468      Section 32B-1-202 .
             2469          (b) With respect to the premises of a limited-service restaurant license issued by the
             2470      commission that undergoes a change of ownership, the commission shall waive or vary the
             2471      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             2472      limited-service restaurant license to the new owner of the premises if:
             2473          (i) when a limited-service restaurant license was issued to a previous owner, the
             2474      premises met the proximity requirements of Subsection 32B-1-202 (2);
             2475          (ii) the premises has had a limited-service restaurant license at all times since the
             2476      limited-service restaurant license described in Subsection (4)(b)(i) was issued without a
             2477      variance; and
             2478          (iii) the community location was located within the proximity requirements of
             2479      Subsection 32B-1-202 (2) after the day on which the limited-service restaurant license
             2480      described in Subsection (4)(b)(i) was issued.
             2481          Section 36. Section 32B-6-304 (Effective 07/01/11) is amended to read:
             2482           32B-6-304 (Effective 07/01/11). Specific licensing requirements for limited-service
             2483      restaurant license.
             2484          (1) To obtain a limited-service restaurant license a person shall comply with Chapter 5,
             2485      Part 2, Retail Licensing Process.
             2486          (2) (a) A limited-service restaurant license expires on October 31 of each year.
             2487          (b) To renew a person's limited-service restaurant license, a person shall comply with
             2488      the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
             2489      September 30.
             2490          (3) (a) The nonrefundable application fee for a limited-service restaurant license is
             2491      [$250] $300.
             2492          (b) The initial license fee for a limited-service restaurant license is [$500] $750.
             2493          (c) The renewal fee for a limited-service restaurant license is [$300] $550.


             2494          (4) The bond amount required for a limited-service restaurant license is the penal sum
             2495      of $5,000.
             2496          Section 37. Section 32B-6-305 (Effective 07/01/11) is amended to read:
             2497           32B-6-305 (Effective 07/01/11). Specific operational requirements for a
             2498      limited-service restaurant license.
             2499          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2500      Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
             2501      licensee shall comply with this section.
             2502          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2503      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2504          (i) a limited-service restaurant licensee;
             2505          (ii) individual staff of a limited-service restaurant licensee; or
             2506          (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
             2507      licensee.
             2508          (2) (a) A limited-service restaurant licensee on the licensed premises may not sell, offer
             2509      for sale, furnish, or allow consumption of:
             2510          (i) spirituous liquor; or
             2511          (ii) a flavored malt beverage.
             2512          (b) A product listed in Subsection (2)(a) may not be on the premises of a
             2513      limited-service restaurant licensee except for use:
             2514          (i) as a flavoring on a dessert; and
             2515          (ii) in the preparation of a flaming food dish, drink, or dessert.
             2516          (3) In addition to complying with Section 32B-5-303 , a limited-service restaurant
             2517      licensee shall store an alcoholic product in a storage area described in Subsection (12)(a).
             2518          (4) (a) An individual who serves an alcoholic product in a limited-service restaurant
             2519      licensee's premises shall make a written beverage tab for each table or group that orders or
             2520      consumes an alcoholic product on the premises.
             2521          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an


             2522      alcoholic product ordered or consumed.
             2523          (5) A person's willingness to serve an alcoholic product may not be made a condition
             2524      of employment as a server with a limited-service restaurant licensee.
             2525          (6) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish wine
             2526      or heavy beer at the licensed premises on any day during the period that:
             2527          (i) begins at midnight; and
             2528          (ii) ends at [11:59] 11:29 a.m.
             2529          (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer during
             2530      the hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer,
             2531      except that a limited-service restaurant licensee may not sell, offer for sale, or furnish beer
             2532      before 11:30 a.m. on any day.
             2533          (7) A limited-service restaurant licensee shall maintain at least 70% of its total
             2534      restaurant business from the sale of food, which does not include a service charge.
             2535          (8) (a) A limited-service restaurant may not sell, offer for sale, or furnish an alcoholic
             2536      product except in connection with an order for food prepared, sold, and furnished at the
             2537      licensed premises.
             2538          (b) A limited-service restaurant shall maintain on the licensed premises adequate
             2539      culinary facilities for food preparation and dining accommodations.
             2540          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
             2541      more than two alcoholic products of any kind at a time before the patron.
             2542          (b) An individual portion of wine is considered to be one alcoholic product under
             2543      Subsection (9)(a).
             2544          (10) A patron may consume an alcoholic product only:
             2545          (a) at:
             2546          (i) the patron's table;
             2547          (ii) a counter; or
             2548          (iii) a seating grandfathered bar structure; and
             2549          (b) where food is served.


             2550          (11) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
             2551      alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
             2552      structure that is not a seating grandfathered bar structure.
             2553          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
             2554      may:
             2555          (i) sit;
             2556          (ii) be furnished an alcoholic product; and
             2557          (iii) consume an alcoholic product.
             2558          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
             2559      limited-service restaurant licensee may not permit a minor to, and a minor may not:
             2560          (i) sit; or
             2561          (ii) consume food or beverages.
             2562          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is employed
             2563      by a limited-service restaurant licensee:
             2564          (A) as provided in Subsection 32B-5-308 (2); or
             2565          (B) to perform maintenance and cleaning services during an hour when the
             2566      limited-service restaurant licensee is not open for business.
             2567          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
             2568      remaining or sitting at the bar structure en route to an area of a limited-service restaurant
             2569      licensee's premises in which the minor is permitted to be.
             2570          (12) Except as provided in Subsection 32B-5-307 (3), a limited-service restaurant
             2571      licensee may dispense an alcoholic product only if:
             2572          (a) the alcoholic product is dispensed from:
             2573          (i) a grandfathered bar structure;
             2574          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
             2575      the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
             2576      12, 2009; or
             2577          (iii) an area that is:


             2578          (A) separated from an area for the consumption of food by a patron by a solid,
             2579      [opaque] translucent, permanent structural barrier such that the facilities for the storage or
             2580      dispensing of an alcoholic product are:
             2581          (I) not readily visible to a patron; and
             2582          (II) not accessible by a patron; and
             2583          (B) apart from an area used:
             2584          (I) for dining;
             2585          (II) for staging; or
             2586          (III) as a lobby or waiting area;
             2587          (b) the limited-service restaurant licensee uses an alcoholic product that is:
             2588          (i) stored in an area described in Subsection (12)(a); or
             2589          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             2590          (A) immediately before the alcoholic product is dispensed it is in an unopened
             2591      [package] container;
             2592          (B) the unopened [package] container is taken to an area described in Subsection
             2593      (12)(a) before it is opened; and
             2594          (C) once opened, the [package] container is stored in an area described in Subsection
             2595      (12)(a); and
             2596          (c) any instrument or equipment used to dispense alcoholic product is located in an
             2597      area described in Subsection (12)(a).
             2598          (13) A limited-service restaurant licensee may state in a food or alcoholic product
             2599      menu a charge or fee made in connection with the sale, service, or consumption of wine or
             2600      heavy beer including:
             2601          (a) a set-up charge;
             2602          (b) a service charge; or
             2603          (c) a chilling fee.
             2604          Section 38. Section 32B-6-403 (Effective 07/01/11) is amended to read:
             2605           32B-6-403 (Effective 07/01/11). Commission's power to issue club license.


             2606          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             2607      an alcoholic product on its premises as a club licensee, the person shall first obtain a club
             2608      license from the commission in accordance with this part.
             2609          (2) The commission may issue a club license to establish club licensed premises at
             2610      places and in numbers the commission considers proper for the storage, sale, offer for sale,
             2611      furnishing, and consumption of an alcoholic product on premises operated by a club licensee.
             2612          (3) Subject to Section 32B-1-201 :
             2613          [(3)] (a) The commission may not issue a total number of club licenses that at any time
             2614      exceeds the number determined by dividing the population of the state by 7,850.
             2615          (b) The commission may issue a seasonal club license in accordance with Section
             2616      32B-5-206 to:
             2617          (i) a dining club licensee; or
             2618          (ii) a social club licensee.
             2619          (c) (i) If the location, design, and construction of a hotel may require more than one
             2620      dining club license or social club license location within the hotel to serve the public
             2621      convenience, the commission may authorize as many as three club license locations within the
             2622      hotel under one club license if:
             2623          (A) the hotel has a minimum of 150 guest rooms; and
             2624          (B) all locations under the club license are:
             2625          (I) within the same hotel; and
             2626          (II) on premises that are managed or operated, and owned or leased, by the club
             2627      licensee.
             2628          (ii) A facility other than a hotel shall have a separate club license for each club license
             2629      location where an alcoholic product is sold, offered for sale, or furnished.
             2630          Section 39. Section 32B-6-404 (Effective 07/01/11) is amended to read:
             2631           32B-6-404 (Effective 07/01/11). Types of club license.
             2632          (1) To obtain an equity club license, in addition to meeting the other requirements of
             2633      this part, a person shall:


             2634          (a) whether incorporated or unincorporated:
             2635          (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
             2636      purpose;
             2637          (ii) have members;
             2638          (iii) limit access to its licensed premises to a member or a guest of the member; and
             2639          (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
             2640      to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
             2641          (b) own, maintain, or operate a substantial recreational facility in conjunction with a
             2642      club house such as:
             2643          (i) a golf course; or
             2644          (ii) a tennis facility;
             2645          (c) have at least 50% of the total membership having:
             2646          (i) full voting rights; and
             2647          (ii) an equal share of the equity of the club; and
             2648          (d) if there is more than one class of membership, have at least one class of
             2649      membership that entitles each member in that class to:
             2650          (i) full voting rights; and
             2651          (ii) an equal share of the equity of the club.
             2652          (2) To obtain a fraternal club license, in addition to meeting the other requirements of
             2653      this part, a person shall:
             2654          (a) whether incorporated or unincorporated:
             2655          (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
             2656      purpose;
             2657          (ii) have members;
             2658          (iii) limit access to its licensed premises to a member or a guest of the member; and
             2659          (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
             2660      to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
             2661          (b) have no capital stock;


             2662          (c) exist solely for:
             2663          (i) the benefit of its members and their beneficiaries; and
             2664          (ii) a lawful social, intellectual, educational, charitable, benevolent, moral, fraternal,
             2665      patriotic, or religious purpose for the benefit of its members or the public, carried on through
             2666      voluntary activity of its members in their local lodges;
             2667          (d) have a representative form of government;
             2668          (e) have a lodge system in which:
             2669          (i) there is a supreme governing body;
             2670          (ii) subordinate to the supreme governing body are local lodges, however designated,
             2671      into which individuals are admitted as members in accordance with the laws of the fraternal;
             2672          (iii) the local lodges are required by the laws of the fraternal to hold regular meetings at
             2673      least monthly; and
             2674          (iv) the local lodges regularly engage in one or more programs involving member
             2675      participation to implement the purposes of Subsection (2)(c); and
             2676          (f) own or lease a building or space in a building used for lodge activities.
             2677          (3) To obtain a dining club license, in addition to meeting the other requirements of
             2678      this part, a person shall:
             2679          (a) maintain at least [50%] the following percentages of its total club business from the
             2680      sale of food, not including[: (i)] mix for alcoholic products[;], or [(ii)] service charges[; and]:
             2681          (i) for a dining club license that is issued an original license on or after July 1, 2011,
             2682      60%;
             2683          (ii) for a dining club license that is issued on or before June 30, 2011:
             2684          (A) 50% on or before June 30, 2012; and
             2685          (B) 60% on and after July 1, 2012; and
             2686          (b) obtain a determination by the commission that the person will operate as a dining
             2687      club licensee, as part of which the commission may consider:
             2688          (i) the square footage and seating capacity of the premises;
             2689          (ii) what portion of the square footage and seating capacity will be used for a dining


             2690      area in comparison to the portion that will be used as a lounge or bar area;
             2691          (iii) whether full meals including appetizers, main courses, and desserts are served;
             2692          (iv) whether the person will maintain adequate on-premise culinary facilities to prepare
             2693      full meals, except a person who is located on the premise of a hotel or resort facility may use
             2694      the culinary facilities of the hotel or resort facility;
             2695          (v) whether the entertainment provided at the club is suitable for minors; and
             2696          (vi) the club management's ability to manage and operate a dining club license
             2697      including:
             2698          (A) management experience;
             2699          (B) past dining club licensee or restaurant management experience; and
             2700          (C) the type of management scheme used by the dining club license.
             2701          (4) To obtain a social club license, a person is required to meet the requirements of this
             2702      part except those listed in Subsection (1), (2), or (3).
             2703          (5) (a) At the time that the commission issues a club license, the commission shall
             2704      designate the type of club license for which the person qualifies.
             2705          (b) If requested by a club licensee, the commission may approve a change in the type of
             2706      club license in accordance with rules made by the commission.
             2707          (6) To the extent not prohibited by law, this part does not prevent a dining club
             2708      licensee or social club licensee from restricting access to the club's licensed premises on the
             2709      basis of an individual:
             2710          (a) paying a fee; or
             2711          (b) agreeing to being on a list of individuals who have access to the club's licensed
             2712      premises.
             2713          Section 40. Section 32B-6-405 (Effective 07/01/11) is amended to read:
             2714           32B-6-405 (Effective 07/01/11). Specific licensing requirements for club license.
             2715          (1) To obtain a club license, in addition to complying with Chapter 5, Part 2, Retail
             2716      Licensing Process, a person shall submit with the written application:
             2717          (a) (i) a statement as to whether the person is seeking to qualify as:


             2718          (A) an equity club licensee;
             2719          (B) a fraternal club licensee;
             2720          (C) a dining club licensee; or
             2721          (D) a social club licensee; and
             2722          (ii) evidence that the person meets the requirements for the type of club license for
             2723      which the person is applying;
             2724          (b) evidence that the person operates club premises where a variety of food is prepared
             2725      and served in connection with dining accommodations; and
             2726          (c) if the person is applying for an equity club license or fraternal club license, a copy
             2727      of the club's bylaws or house rules, and an amendment to those records.
             2728          (2) The commission may refuse to issue a club license to a person for an equity club
             2729      license or fraternal club license if the commission determines that a provision of the person's
             2730      bylaws or house rules, or amendments to those records is not:
             2731          (a) reasonable; and
             2732          (b) consistent with:
             2733          (i) the declared nature and purpose of the club licensee; and
             2734          (ii) the purposes of this part.
             2735          (3) (a) A club license expires on June 30 of each year.
             2736          (b) To renew a club license, a person shall comply with the requirements of Chapter 5,
             2737      Part 2, Retail Licensing Process, by no later than May 31.
             2738          (4) (a) The nonrefundable application fee for a club license is [$250] $300.
             2739          (b) The initial license fee for a club license is [$2,500] $2,750.
             2740          (c) The renewal fee for a club license is [$1,600] $2,000.
             2741          (5) The bond amount required for a [full-service restaurant] club license is the penal
             2742      sum of $10,000.
             2743          Section 41. Section 32B-6-406 (Effective 07/01/11) is amended to read:
             2744           32B-6-406 (Effective 07/01/11). Specific operational requirements for a club
             2745      license.


             2746          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2747      Requirements, a club licensee and staff of the club licensee shall comply with this section.
             2748          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2749      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2750          (i) a club licensee;
             2751          (ii) individual staff of a club licensee; or
             2752          (iii) both a club licensee and staff of the club licensee.
             2753          (2) In addition to complying with Subsection 32B-5-301 (3), a club licensee shall
             2754      display in a prominent place in the club licensed premises a list of the types and brand names of
             2755      liquor being furnished through the club licensee's calibrated metered dispensing system.
             2756          (3) (a) In addition to complying with Section 32B-5-302 , a club licensee shall maintain
             2757      for a minimum of three years:
             2758          (i) a record required by Section 32B-5-302 ; and
             2759          (ii) a record maintained or used by the club licensee, as the department requires.
             2760          (b) Section 32B-1-205 applies to a record required to be made, maintained, or used in
             2761      accordance with this Subsection (3).
             2762          (c) The department shall audit the records of a club licensee at least once annually.
             2763          (4) (a) A club licensee may not sell, offer for sale, or furnish liquor on the licensed
             2764      premises on any day during a period that:
             2765          (i) begins at 1 a.m.; and
             2766          (ii) ends at 9:59 a.m.
             2767          (b) A club licensee may sell, offer for sale, or furnish beer during the hours specified in
             2768      Part 7, On-premise Beer Retailer License, for an on-premise beer retailer license.
             2769          (c) (i) Notwithstanding Subsections (4)(a) and (b), a club licensee shall keep its
             2770      licensed premises open for one hour after the club licensee ceases the sale and furnishing of an
             2771      alcoholic product during which time a patron of the club licensee may finish consuming:
             2772          (A) a single drink containing spirituous liquor;
             2773          (B) a single serving of wine not exceeding five ounces;


             2774          (C) a single serving of heavy beer;
             2775          (D) a single serving of beer not exceeding 26 ounces; or
             2776          (E) a single serving of a flavored malt beverage.
             2777          (ii) A club licensee is not required to remain open:
             2778          (A) after all patrons have vacated the premises; or
             2779          (B) during an emergency.
             2780          [(d) A club licensee may not allow a patron to remain on the licensed premises of the
             2781      club licensee to consume an alcoholic product on the licensed premises during a period that:]
             2782          [(i) begins at 2 a.m.; and]
             2783          [(ii) ends at 9:59 a.m.]
             2784          (5) (a) A minor may not be admitted into, use, or be in:
             2785          (i) a lounge or bar area of the premises of:
             2786          (A) an equity club licensee;
             2787          (B) a fraternal club licensee; or
             2788          (C) a dining club licensee; or
             2789          (ii) the premises of:
             2790          (A) a dining club licensee unless accompanied by an individual who is 21 years of age
             2791      or older; or
             2792          (B) a social club licensee, except to the extent provided for under Section 32B-6-406.1 .
             2793          (b) Notwithstanding Section 32B-5-308 , a club licensee may not employ a minor to:
             2794          (i) work in a lounge or bar area of an equity club licensee, fraternal club licensee, or
             2795      dining club licensee; or
             2796          (ii) handle an alcoholic product.
             2797          (c) Notwithstanding Section 32B-5-308 , a minor may not be employed on the licensed
             2798      premises of a social club licensee.
             2799          (d) Nothing in this part or Section 32B-5-308 precludes a local authority from being
             2800      more restrictive of a minor's admittance to, use of, or presence on the licensed premises of a
             2801      club licensee.


             2802          (6) A club licensee shall have food available at all times when an alcoholic product is
             2803      sold, offered for sale, furnished, or consumed on the licensed premises.
             2804          (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have
             2805      more than two alcoholic products of any kind at a time before the patron.
             2806          (b) A patron may not have two spirituous liquor drinks before the club licensee patron
             2807      if one of the spirituous liquor drinks consists only of the primary spirituous liquor for the other
             2808      spirituous liquor drink.
             2809          (c) An individual portion of wine is considered to be one alcoholic product under
             2810      Subsection (7)(a).
             2811          (8) A club licensee shall have available on the premises for a patron to review at the
             2812      time that the patron requests it, a written alcoholic product price list or a menu containing the
             2813      price of an alcoholic product sold, offered for sale, or furnished by the club licensee including:
             2814          (a) a set-up charge;
             2815          (b) a service charge; or
             2816          (c) a chilling fee.
             2817          (9) Subject to Section 32B-5-309 , a club licensee may not temporarily rent or
             2818      otherwise temporarily lease its premises to a person unless:
             2819          (a) the person to whom the club licensee rents or leases the premises agrees in writing
             2820      to comply with this title as if the person is the club licensee, except for a requirement related to
             2821      making or maintaining a record; and
             2822          (b) the club licensee takes reasonable steps to ensure that the person complies with this
             2823      section as provided in Subsection (9)(a).
             2824          (10) If a club licensee is an equity club licensee or fraternal club licensee, the club
             2825      licensee shall comply with Section 32B-6-407 .
             2826          (11) If a club licensee is a dining club licensee or social club licensee, the club licensee
             2827      shall comply with Section 32B-1-407 .
             2828          (12) (a) A club licensee shall own or lease premises suitable for the club licensee's
             2829      activities.


             2830          (b) A club licensee may not maintain licensed premises in a manner that barricades or
             2831      conceals the club licensee's operation.
             2832          Section 42. Section 32B-6-409 is enacted to read:
             2833          32B-6-409. Conversion from dining club license to different type of retail license.
             2834          (1) In accordance with this section, a dining club licensee may convert its dining club
             2835      license to a different type of retail license, including a different type of club license during the
             2836      time period:
             2837          (a) beginning on July 1, 2011; and
             2838          (b) ending on June 30, 2013.
             2839          (2) A dining club licensee may convert its dining license only to a retail license for
             2840      which the dining club licensee qualifies.
             2841          (3) The commission shall provide a procedure for a dining club to convert to a different
             2842      type of retail license as provided in this section by rule made in accordance with Title 63G,
             2843      Chapter 3, Utah Administrative Rulemaking Act.
             2844          (4) After a dining club license is converted to another type of retail license, the retail
             2845      licensee shall operate under the provisions relevant to the type of retail license held by the retail
             2846      licensee, except that, in accordance with Section 32B-1-201 , the retail license is not considered
             2847      in determining the total number of licenses available for that type of retail license.
             2848          (5) If a dining club license is converted to full-service restaurant license,
             2849      limited-service restaurant license, or beer-only restaurant license, the bar structure of the dining
             2850      club is considered:
             2851          (a) a seating grandfathered bar structure for purposes of a full-service restaurant license
             2852      or a limited-service restaurant license; or
             2853          (b) a grandfathered bar structure for purposes of a beer-only restaurant license.
             2854          Section 43. Section 32B-6-502 (Effective 07/01/11) is amended to read:
             2855           32B-6-502 (Effective 07/01/11). Definitions.
             2856          [Reserved]
             2857          As used in this chapter, "total passengers" means the number of total passengers in a


             2858      calendar year that is reported in the most current comprehensive annual financial report for the
             2859      airport in which an airport lounge is located.
             2860          Section 44. Section 32B-6-503 (Effective 07/01/11) is amended to read:
             2861           32B-6-503 (Effective 07/01/11). Commission's power to issue airport lounge
             2862      license.
             2863          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             2864      an alcoholic product on its premises as an airport lounge licensee, the person shall first obtain
             2865      an airport lounge license from the commission in accordance with this part.
             2866          (2) The commission may issue an airport lounge license to establish airport lounge
             2867      licensed premises beyond the security point at an international airport and in the numbers the
             2868      commission considers proper for the storage, sale, offer for sale, furnishing, and consumption
             2869      of an alcoholic product on licensed premises operated as an airport lounge.
             2870          (3) (a) The commission may not issue a total number of airport lounge licenses for an
             2871      international airport that at any time exceed one [lounge per terminal plus one lounge per
             2872      concourse located beyond the security point at that international airport] airport lounge license
             2873      for each 2,500,000 of total passengers at the international airport.
             2874          (b) Notwithstanding Subsection (3)(a), the commission may not reduce the total
             2875      number of airport lounge licenses unless:
             2876          (i) the commission determines that the number of total passengers is reduced by more
             2877      than 25% from the last day on which the commission determined the total number of airport
             2878      lounge licenses allowed for that international airport under this Subsection (3); and
             2879          (ii) the reduction can be accomplished without the international airport terminating a
             2880      lease for an airport lounge before:
             2881          (A) the expiration of the lease;
             2882          (B) the airport lounge undergoes a change of ownership; or
             2883          (C) the airport lounge ceases operations.
             2884          Section 45. Section 32B-6-504 (Effective 07/01/11) is amended to read:
             2885           32B-6-504 (Effective 07/01/11). Specific licensing requirements for airport lounge


             2886      license.
             2887          (1) To obtain an airport lounge license, in addition to complying with Chapter 5, Part
             2888      2, Retail Licensing Process, a person shall submit with the written application:
             2889          (a) both the written consent of the local authority and the written consent of the airport
             2890      authority; and
             2891          (b) a copy of the sign proposed to be used by the airport lounge licensee on its licensed
             2892      premises to inform the public that alcoholic products are sold and consumed on the licensed
             2893      premises.
             2894          (2) (a) An airport lounge license expires on October 31 of each year.
             2895          (b) To renew a person's airport lounge license, a person shall comply with the renewal
             2896      requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
             2897          (3) (a) The nonrefundable application fee for an airport lounge license is [$250] $300.
             2898          (b) The initial license fee for an airport lounge license is [$7,000] $8,000.
             2899          (c) The renewal fee for an airport lounge license is [$5,000] $6,000.
             2900          (4) The bond amount required for an airport lounge license is the penal sum of
             2901      $10,000.
             2902          (5) An airport lounge license is not subject to the proximity requirements of Section
             2903      32B-1-202 .
             2904          Section 46. Section 32B-6-603 (Effective 07/01/11) is amended to read:
             2905           32B-6-603 (Effective 07/01/11). Commission's power to issue on-premise banquet
             2906      license -- Contracts as host.
             2907          (1) (a) Before a person may store, sell, offer for sale, furnish, or allow the consumption
             2908      of an alcoholic product in connection with the person's banquet and room service activities at
             2909      one of the following, the person shall first obtain an on-premise banquet license in accordance
             2910      with this part:
             2911          (i) a hotel;
             2912          (ii) a resort facility;
             2913          (iii) a sports center; or


             2914          (iv) a convention center.
             2915          (b) This part does not prohibit an alcoholic product on the premises of a person listed
             2916      in Subsection (1)(a) to the extent otherwise permitted by this title.
             2917          (c) This section does not prohibit a person who applies for an on-premise banquet
             2918      license to also apply for a package agency if otherwise qualified.
             2919          (2) The commission may issue an on-premise banquet license to establish on-premise
             2920      banquet licensees in the numbers the commission considers proper for the storage, sale, offer
             2921      for sale, furnishing, and consumption of an alcoholic product at a banquet or as part of room
             2922      service activities operated by an on-premise banquet licensee.
             2923          (3) [The] Subject to Section 32B-1-201 , the commission may not issue a total number
             2924      of on-premise banquet licenses that at any time exceed the number determined by dividing the
             2925      population of the state by 30,000.
             2926          [(4) (a) As used in this Subsection (4), "grandfathered facility" means a facility:]
             2927          [(i) for which the commission issued an on-premise banquet license that is in effect on
             2928      May 11, 2009, on the basis that the facility is a convention center; and]
             2929          [(ii) that no longer qualifies as a convention center as defined in Section 32B-1-102
             2930      solely because it is in total less than 30,000 square feet.]
             2931          [(b) Notwithstanding the definition of "convention center" in Section 32B-1-102 , an
             2932      on-premise banquet license applicable to a grandfathered facility may be renewed until October
             2933      31, 2011, if the on-premise banquet licensee is qualified for an on-premise banquet license
             2934      except for the requirement that the facility be in total at least 30,000 square feet.]
             2935          [(5)] (4) Pursuant to a contract between the host of a banquet and an on-premise
             2936      banquet licensee:
             2937          (a) the host of the banquet may request an on-premise banquet licensee to provide an
             2938      alcoholic product served at the banquet; and
             2939          (b) an on-premise banquet licensee may provide an alcoholic product served at the
             2940      banquet.
             2941          [(6)] (5) At a banquet, an on-premise banquet licensee may furnish an alcoholic


             2942      product:
             2943          (a) without charge to a patron at a banquet, except that the host of the banquet shall pay
             2944      for an alcoholic product furnished at the banquet; or
             2945          (b) with a charge to a patron at the banquet.
             2946          Section 47. Section 32B-6-604 (Effective 07/01/11) is amended to read:
             2947           32B-6-604 (Effective 07/01/11). Specific licensing requirements for an on-premise
             2948      banquet license.
             2949          (1) To obtain an on-premise banquet license a person shall comply with Chapter 5, Part
             2950      2, Retail Licensing Process.
             2951          (2) (a) An on-premise banquet license expires on October 31 of each year.
             2952          (b) To renew a person's on-premise banquet license, a person shall comply with the
             2953      requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
             2954          (3) (a) The nonrefundable application fee for an on-premise banquet license is [$250]
             2955      $300.
             2956          (b) The initial license fee for an on-premise banquet license is [$500] $750.
             2957          (c) The renewal fee for an on-premise banquet license is [$500] $750.
             2958          (4) The bond amount required for an on-premise banquet license is the penal sum of
             2959      $10,000.
             2960          (5) Notwithstanding the other provisions of this part, if an applicant is a state agency or
             2961      political subdivision of the state it is not required to:
             2962          (a) pay an application fee, initial license fee, or renewal fee;
             2963          (b) obtain the written consent of the local authority;
             2964          (c) submit a copy of the applicant's current business license; or
             2965          (d) post a bond as specified by Section 32B-5-204 .
             2966          (6) Notwithstanding Subsection 32B-5-303 (3), the department may approve an
             2967      additional location in or on the licensed premises of an on-premise banquet licensee from
             2968      which the on-premise banquet licensee may store, sell, offer for sale, furnish, or allow the
             2969      consumption of an alcoholic product that is not included in its original application only:


             2970          (a) upon proper application by an on-premise banquet licensee; and
             2971          (b) in accordance with guidelines approved by the commission.
             2972          Section 48. Section 32B-6-605 (Effective 07/01/11) is amended to read:
             2973           32B-6-605 (Effective 07/01/11). Specific operational requirements for on-premise
             2974      banquet license.
             2975          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             2976      Requirements, an on-premise banquet licensee and staff of the on-premise banquet licensee
             2977      shall comply with this section.
             2978          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2979      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2980          (i) an on-premise banquet licensee;
             2981          (ii) individual staff of an on-premise banquet licensee; or
             2982          (iii) both an on-premise banquet licensee and staff of the on-premise banquet licensee.
             2983          (2) An on-premise banquet licensee shall comply with Subsections 32B-5-301 (4) and
             2984      (5) for the entire premises of the hotel, resort facility, sports center, or convention center that is
             2985      the basis for the on-premise banquet license.
             2986          (3) (a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee
             2987      shall provide the department with advance notice of a scheduled banquet in accordance with
             2988      rules made by the commission.
             2989          (b) Any of the following may conduct a random inspection of a banquet:
             2990          (i) an authorized representative of the commission or the department; or
             2991          (ii) a law enforcement officer.
             2992          (4) (a) An on-premise banquet licensee is not subject to Section 32B-5-302 , but shall
             2993      make and maintain the records the commission or department requires.
             2994          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             2995      accordance with this Subsection (4).
             2996          (5) (a) Except as otherwise provided in this title, an on-premise banquet licensee may
             2997      sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption at the


             2998      location of the banquet.
             2999          (b) A host of a banquet, a patron, or a person other than the on-premise banquet
             3000      licensee or staff of the on-premise banquet licensee, may not remove an alcoholic product from
             3001      the premises of the banquet.
             3002          (c) Notwithstanding Section 32B-5-307 , a patron at a banquet may not bring an
             3003      alcoholic product into or onto, or remove an alcoholic product from the premises of a banquet.
             3004          (6) (a) An on-premise banquet licensee may not leave an unsold alcoholic product at
             3005      the banquet following the conclusion of the banquet.
             3006          (b) At the conclusion of a banquet, an on-premise banquet licensee shall:
             3007          (i) destroy an opened and unused alcoholic product that is not saleable, under
             3008      conditions established by the department; and
             3009          (ii) return to the on-premise banquet licensee's approved locked storage area any:
             3010          (A) opened and unused alcoholic product that is saleable; and
             3011          (B) unopened [package] container of an alcoholic product.
             3012          (c) Except as provided in Subsection (6)(b) with regard to an open or sealed [package]
             3013      container of an alcoholic product not sold or consumed at a banquet, an on-premise banquet
             3014      licensee:
             3015          (i) shall store the alcoholic product in the on-premise banquet licensee's approved
             3016      locked storage area; and
             3017          (ii) may use the alcoholic product at more than one banquet.
             3018          (7) Notwithstanding Section 32B-5-308 , an on-premise banquet licensee may not
             3019      employ a minor to sell, furnish, or dispense an alcoholic product in connection with the
             3020      on-premise banquet licensee's banquet and room service activities.
             3021          (8) An on-premise banquet licensee may not sell, offer for sale, or furnish an alcoholic
             3022      product at a banquet or in connection with room service any day during a period that:
             3023          (a) begins at 1 a.m.; and
             3024          (b) ends at 9:59 a.m.
             3025          (9) An on-premise banquet licensee shall maintain at least 50% of its total annual


             3026      banquet gross receipts from the sale of food, not including:
             3027