First Substitute H.B. 142

Representative Gage Froerer proposes the following substitute bill:

1 ALCOHOL AMENDMENTS
2 2012 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Gage Froerer
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Alcoholic Beverage Control Act to convert the dining club
10 license to a dining license and to make related changes.
11 Highlighted Provisions:
12 This bill:
13 . removes references to dining club license and replaces the references with dining
14 license when appropriate;
15 . addresses quota numbers for club licenses and dining licenses;
16 . enacts provisions creating a dining license, including:
17 . addressing commission's power to issue a dining license;
18 . addressing specific licensing requirements for a dining license;
19 . addressing specific operational requirements for a dining license; and
20 . addressing conversion of dining licenses to other types of retail licenses; and
21 . makes technical and conforming amendments.
22 Money Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 This bill takes effect on July 1, 2012.

26 Utah Code Sections Affected:
27 AMENDS:
28 32B-1-102, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
29 32B-1-201, as last amended by Laws of Utah 2011, Chapter 334
30 32B-1-407, as last amended by Laws of Utah 2011, Chapters 297 and 334
31 32B-2-202, as last amended by Laws of Utah 2011, Chapter 334
32 32B-2-605, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
33 32B-6-202, as last amended by Laws of Utah 2011, Chapter 334
34 32B-6-302, as last amended by Laws of Utah 2011, Chapter 334
35 32B-6-403, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
36 32B-6-404, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
37 32B-6-405, as last amended by Laws of Utah 2011, Chapters 307 and 334
38 32B-6-406, as last amended by Laws of Utah 2011, Chapter 334
39 32B-6-407, as last amended by Laws of Utah 2011, Chapter 297
40 32B-6-902 (Effective 03/01/12), as last amended by Laws of Utah 2011, Second
41 Special Session, Chapter 2
42 ENACTS:
43 32B-6-1001, Utah Code Annotated 1953
44 32B-6-1002, Utah Code Annotated 1953
45 32B-6-1003, Utah Code Annotated 1953
46 32B-6-1004, Utah Code Annotated 1953
47 32B-6-1005, Utah Code Annotated 1953
48 32B-6-1006, Utah Code Annotated 1953
49 REPEALS:
50 32B-6-409, as enacted by Laws of Utah 2011, Chapter 334
51
52 Be it enacted by the Legislature of the state of Utah:
53 Section 1. Section 32B-1-102 is amended to read:
54 32B-1-102. Definitions.
55 As used in this title:
56 (1) "Airport lounge" means a business location:

57 (a) at which an alcoholic product is sold at retail for consumption on the premises; and
58 (b) that is located at an international airport with a United States Customs office on the
59 premises of the international airport.
60 (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
61 Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
62 (3) "Alcoholic beverage" means the following:
63 (a) beer; or
64 (b) liquor.
65 (4) (a) "Alcoholic product" means a product that:
66 (i) contains at least .5% of alcohol by volume; and
67 (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
68 process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
69 in an amount equal to or greater than .5% of alcohol by volume.
70 (b) "Alcoholic product" includes an alcoholic beverage.
71 (c) "Alcoholic product" does not include any of the following common items that
72 otherwise come within the definition of an alcoholic product:
73 (i) except as provided in Subsection (4)(d), an extract;
74 (ii) vinegar;
75 (iii) cider;
76 (iv) essence;
77 (v) tincture;
78 (vi) food preparation; or
79 (vii) an over-the-counter medicine.
80 (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
81 when it is used as a flavoring in the manufacturing of an alcoholic product.
82 (5) "Alcohol training and education seminar" means a seminar that is:
83 (a) required by Chapter 5, Part 4, Alcohol Training and Education Act; and
84 (b) described in Section 62A-15-401 .
85 (6) "Banquet" means an event:
86 (a) that is held at one or more designated locations approved by the commission in or
87 on the premises of a:

88 (i) hotel;
89 (ii) resort facility;
90 (iii) sports center; or
91 (iv) convention center;
92 (b) for which there is a contract:
93 (i) between a person operating a facility listed in Subsection (6)(a) and another person;
94 and
95 (ii) under which the person operating a facility listed in Subsection (6)(a) is required to
96 provide an alcoholic product at the event; and
97 (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
98 (7) (a) "Bar" means a surface or structure:
99 (i) at which an alcoholic product is:
100 (A) stored; or
101 (B) dispensed; or
102 (ii) from which an alcoholic product is served.
103 (b) "Bar structure" means a surface or structure on a licensed premises if on or at any
104 place of the surface or structure an alcoholic product is:
105 (i) stored; or
106 (ii) dispensed.
107 (8) (a) Subject to Subsection (8)(d), "beer" means a product that:
108 (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
109 volume or 3.2% by weight; and
110 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
111 (b) "Beer" may or may not contain hops or other vegetable products.
112 (c) "Beer" includes a product that:
113 (i) contains alcohol in the percentages described in Subsection (8)(a); and
114 (ii) is referred to as:
115 (A) beer;
116 (B) ale;
117 (C) porter;
118 (D) stout;

119 (E) lager; or
120 (F) a malt or malted beverage.
121 (d) "Beer" does not include a flavored malt beverage.
122 (9) "Beer-only restaurant license" means a license issued in accordance with Chapter 5,
123 Retail License Act, and Chapter 6, Part 9, Beer-only Restaurant License.
124 (10) "Beer retailer" means a business:
125 (a) that is engaged, primarily or incidentally, in the retail sale of beer to a patron,
126 whether for consumption on or off the business premises; and
127 (b) to whom a license is issued:
128 (i) for an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-premise
129 Beer Retailer Local Authority; or
130 (ii) for an on-premise beer retailer, in accordance with Chapter 5, Retail License Act,
131 and Chapter 6, Part 7, On-premise Beer Retailer License.
132 (11) "Beer wholesaling license" means a license:
133 (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
134 (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
135 retail licensees or off-premise beer retailers.
136 (12) "Billboard" means a public display used to advertise, including:
137 (a) a light device;
138 (b) a painting;
139 (c) a drawing;
140 (d) a poster;
141 (e) a sign;
142 (f) a signboard; or
143 (g) a scoreboard.
144 (13) "Brewer" means a person engaged in manufacturing:
145 (a) beer;
146 (b) heavy beer; or
147 (c) a flavored malt beverage.
148 (14) "Brewery manufacturing license" means a license issued in accordance with
149 Chapter 11, Part 5, Brewery Manufacturing License.

150 (15) "Certificate of approval" means a certificate of approval obtained from the
151 department under Section 32B-11-201 .
152 (16) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
153 a bus company to a group of persons pursuant to a common purpose:
154 (a) under a single contract;
155 (b) at a fixed charge in accordance with the bus company's tariff; and
156 (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
157 motor vehicle, and a driver to travel together to one or more specified destinations.
158 (17) "Church" means a building:
159 (a) set apart for worship;
160 (b) in which religious services are held;
161 (c) with which clergy is associated; and
162 (d) that is tax exempt under the laws of this state.
163 (18) (a) "Club license" means a license issued in accordance with Chapter 5, Retail
164 License Act, and Chapter 6, Part 4, Club License.
165 (b) "Club license" includes:
166 [(i) a dining club license;]
167 [(ii)] (i) an equity club license;
168 [(iii)] (ii) a fraternal club license; or
169 [(iv)] (iii) a social club license.
170 (19) "Commission" means the Alcoholic Beverage Control Commission created in
171 Section 32B-2-201 .
172 (20) "Commissioner" means a member of the commission.
173 (21) "Community location" means:
174 (a) a public or private school;
175 (b) a church;
176 (c) a public library;
177 (d) a public playground; or
178 (e) a public park.
179 (22) "Community location governing authority" means:
180 (a) the governing body of the community location; or

181 (b) if the commission does not know who is the governing body of a community
182 location, a person who appears to the commission to have been given on behalf of the
183 community location the authority to prohibit an activity at the community location.
184 (23) "Container" means a receptacle that contains an alcoholic product, including:
185 (a) a bottle;
186 (b) a vessel; or
187 (c) a similar item.
188 (24) "Convention center" means a facility that is:
189 (a) in total at least 30,000 square feet; and
190 (b) otherwise defined as a "convention center" by the commission by rule.
191 (25) (a) Subject to Subsection (25)(b), "counter" means a surface or structure in a
192 dining area of a licensed premises where seating is provided to a patron for service of food.
193 (b) "Counter" does not include a surface or structure if on or at any point of the surface
194 or structure an alcoholic product is:
195 (i) stored; or
196 (ii) dispensed.
197 (26) "Department" means the Department of Alcoholic Beverage Control created in
198 Section 32B-2-203 .
199 (27) "Department compliance officer" means an individual who is:
200 (a) an auditor or inspector; and
201 (b) employed by the department.
202 (28) "Department sample" means liquor that is placed in the possession of the
203 department for testing, analysis, and sampling.
204 (29) "Dining [club] license" means a license issued in accordance with Chapter 5,
205 Retail License Act, and Chapter 6, Part [4] 10, [Club] Dining License[, that is designated by
206 the commission as a dining club license].
207 (30) "Director," unless the context requires otherwise, means the director of the
208 department.
209 (31) "Disciplinary proceeding" means an adjudicative proceeding permitted under this
210 title:
211 (a) against a person subject to administrative action; and

212 (b) that is brought on the basis of a violation of this title.
213 (32) (a) Subject to Subsection (32)(b), "dispense" means:
214 (i) drawing of an alcoholic product:
215 (A) from an area where it is stored; or
216 (B) as provided in Subsection 32B-6-205 (12)(b)(ii), 32B-6-305 (12)(b)(ii),
217 32B-6-805 (15)(b)(ii), or 32B-6-905 (12)(b)(ii); and
218 (ii) using the alcoholic product described in Subsection (32)(a)(i) on the premises of
219 the licensed premises to mix or prepare an alcoholic product to be furnished to a patron of the
220 retail licensee.
221 (b) The definition of "dispense" in this Subsection (32) applies only to:
222 (i) a full-service restaurant license;
223 (ii) a limited-service restaurant license;
224 (iii) a reception center license; and
225 (iv) a beer-only restaurant license.
226 (33) "Distillery manufacturing license" means a license issued in accordance with
227 Chapter 11, Part 4, Distillery Manufacturing License.
228 (34) "Distressed merchandise" means an alcoholic product in the possession of the
229 department that is saleable, but for some reason is unappealing to the public.
230 (35) "Educational facility" includes:
231 (a) a nursery school;
232 (b) an infant day care center; and
233 (c) a trade and technical school.
234 (36) "Equity club license" means a license issued in accordance with Chapter 5, Retail
235 License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as an
236 equity club license.
237 (37) "Event permit" means:
238 (a) a single event permit; or
239 (b) a temporary beer event permit.
240 (38) "Exempt license" means a license exempt under Section 32B-1-201 from being
241 considered in determining the total number of a retail license that the commission may issue at
242 any time.

243 (39) (a) "Flavored malt beverage" means a beverage:
244 (i) that contains at least .5% alcohol by volume;
245 (ii) that is treated by processing, filtration, or another method of manufacture that is not
246 generally recognized as a traditional process in the production of a beer as described in 27
247 C.F.R. Sec. 25.55;
248 (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
249 extract; and
250 (iv) (A) for which the producer is required to file a formula for approval with the
251 federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
252 (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
253 (b) "Flavored malt beverage" is considered liquor for purposes of this title.
254 (40) "Fraternal club license" means a license issued in accordance with Chapter 5,
255 Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
256 as a fraternal club license.
257 (41) "Full-service restaurant license" means a license issued in accordance with
258 Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-service Restaurant License.
259 (42) (a) "Furnish" means by any means to provide with, supply, or give an individual
260 an alcoholic product, by sale or otherwise.
261 (b) "Furnish" includes to:
262 (i) serve;
263 (ii) deliver; or
264 (iii) otherwise make available.
265 (43) "Guest" means an individual who meets the requirements of Subsection
266 32B-6-407 (9).
267 (44) "Health care practitioner" means:
268 (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
269 (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
270 (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
271 (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
272 Act;
273 (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,

274 Nurse Practice Act;
275 (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
276 Practice Act;
277 (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
278 Therapy Practice Act;
279 (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
280 (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
281 Professional Practice Act;
282 (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
283 (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
284 Practice Act;
285 (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
286 Hygienist Practice Act; and
287 (m) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act.
288 (45) (a) "Heavy beer" means a product that:
289 (i) contains more than 4% alcohol by volume; and
290 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
291 (b) "Heavy beer" is considered liquor for the purposes of this title.
292 (46) "Hotel" is as defined by the commission by rule.
293 (47) "Identification card" means an identification card issued under Title 53, Chapter 3,
294 Part 8, Identification Card Act.
295 (48) "Industry representative" means an individual who is compensated by salary,
296 commission, or other means for representing and selling an alcoholic product of a
297 manufacturer, supplier, or importer of liquor.
298 (49) "Industry representative sample" means liquor that is placed in the possession of
299 the department for testing, analysis, and sampling by a local industry representative on the
300 premises of the department to educate the local industry representative of the quality and
301 characteristics of the product.
302 (50) "Interdicted person" means a person to whom the sale, offer for sale, or furnishing
303 of an alcoholic product is prohibited by:
304 (a) law; or

305 (b) court order.
306 (51) "Intoxicated" means that a person:
307 (a) is significantly impaired as to the person's mental or physical functions as a result of
308 the use of:
309 (i) an alcoholic product;
310 (ii) a controlled substance;
311 (iii) a substance having the property of releasing toxic vapors; or
312 (iv) a combination of Subsections (51)(a)(i) through (iii); and
313 (b) exhibits plain and easily observed outward manifestations of behavior or physical
314 signs produced by the over consumption of an alcoholic product.
315 (52) "Investigator" means an individual who is:
316 (a) a department compliance officer; or
317 (b) a nondepartment enforcement officer.
318 (53) "Invitee" is as defined in Section 32B-8-102 .
319 (54) "License" means:
320 (a) a retail license;
321 (b) a license issued in accordance with Chapter 11, Manufacturing and Related
322 Licenses Act;
323 (c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
324 or
325 (d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act.
326 (55) "Licensee" means a person who holds a license.
327 (56) "Limited-service restaurant license" means a license issued in accordance with
328 Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-service Restaurant License.
329 (57) "Limousine" means a motor vehicle licensed by the state or a local authority, other
330 than a bus or taxicab:
331 (a) in which the driver and a passenger are separated by a partition, glass, or other
332 barrier;
333 (b) that is provided by a business entity to one or more individuals at a fixed charge in
334 accordance with the business entity's tariff; and
335 (c) to give the one or more individuals the exclusive use of the limousine and a driver

336 to travel to one or more specified destinations.
337 (58) (a) (i) "Liquor" means a liquid that:
338 (A) is:
339 (I) alcohol;
340 (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
341 (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
342 (IV) other drink or drinkable liquid; and
343 (B) (I) contains at least .5% alcohol by volume; and
344 (II) is suitable to use for beverage purposes.
345 (ii) "Liquor" includes:
346 (A) heavy beer;
347 (B) wine; and
348 (C) a flavored malt beverage.
349 (b) "Liquor" does not include beer.
350 (59) "Liquor Control Fund" means the enterprise fund created by Section 32B-2-301 .
351 (60) "Liquor warehousing license" means a license that is issued:
352 (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
353 (b) to a person, other than a licensed manufacturer, who engages in the importation for
354 storage, sale, or distribution of liquor regardless of amount.
355 (61) "Local authority" means:
356 (a) for premises that are located in an unincorporated area of a county, the governing
357 body of a county; or
358 (b) for premises that are located in an incorporated city or a town, the governing body
359 of the city or town.
360 (62) "Lounge or bar area" is as defined by rule made by the commission.
361 (63) "Manufacture" means to distill, brew, rectify, mix, compound, process, ferment, or
362 otherwise make an alcoholic product for personal use or for sale or distribution to others.
363 (64) "Member" means an individual who, after paying regular dues, has full privileges
364 in an equity club licensee or fraternal club licensee.
365 (65) (a) "Military installation" means a base, air field, camp, post, station, yard, center,
366 or homeport facility for a ship:

367 (i) (A) under the control of the United States Department of Defense; or
368 (B) of the National Guard;
369 (ii) that is located within the state; and
370 (iii) including a leased facility.
371 (b) "Military installation" does not include a facility used primarily for:
372 (i) civil works;
373 (ii) a rivers and harbors project; or
374 (iii) a flood control project.
375 (66) "Minor" means an individual under the age of 21 years.
376 (67) "Nondepartment enforcement agency" means an agency that:
377 (a) (i) is a state agency other than the department; or
378 (ii) is an agency of a county, city, or town; and
379 (b) has a responsibility to enforce one or more provisions of this title.
380 (68) "Nondepartment enforcement officer" means an individual who is:
381 (a) a peace officer, examiner, or investigator; and
382 (b) employed by a nondepartment enforcement agency.
383 (69) (a) "Off-premise beer retailer" means a beer retailer who is:
384 (i) licensed in accordance with Chapter 7, Part 2, Off-premise Beer Retailer Local
385 Authority; and
386 (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
387 premises.
388 (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
389 (70) "On-premise banquet license" means a license issued in accordance with Chapter
390 5, Retail License Act, and Chapter 6, Part 6, On-premise Banquet License.
391 (71) "On-premise beer retailer" means a beer retailer who is:
392 (a) authorized to sell, offer for sale, or furnish beer under a license issued in
393 accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-premise Beer
394 Retailer License; and
395 (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
396 premises:
397 (i) regardless of whether the beer retailer sells beer for consumption off the licensed

398 premises; and
399 (ii) on and after March 1, 2012, operating:
400 (A) as a tavern; or
401 (B) in a manner that meets the requirements of Subsection 32B-6-703 (2)(e)(i).
402 (72) "Opaque" means impenetrable to sight.
403 (73) "Package agency" means a retail liquor location operated:
404 (a) under an agreement with the department; and
405 (b) by a person:
406 (i) other than the state; and
407 (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
408 Agency, to sell packaged liquor for consumption off the premises of the package agency.
409 (74) "Package agent" means a person who holds a package agency.
410 (75) "Patron" means an individual to whom food, beverages, or services are sold,
411 offered for sale, or furnished, or who consumes an alcoholic product including:
412 (a) a customer;
413 (b) a member;
414 (c) a guest;
415 (d) an attendee of a banquet or event;
416 (e) an individual who receives room service;
417 (f) a resident of a resort;
418 (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102 ;
419 or
420 (h) an invitee.
421 (76) "Permittee" means a person issued a permit under:
422 (a) Chapter 9, Event Permit Act; or
423 (b) Chapter 10, Special Use Permit Act.
424 (77) "Person subject to administrative action" means:
425 (a) a licensee;
426 (b) a permittee;
427 (c) a manufacturer;
428 (d) a supplier;

429 (e) an importer;
430 (f) one of the following holding a certificate of approval:
431 (i) an out-of-state brewer;
432 (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
433 (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
434 (g) staff of:
435 (i) a person listed in Subsections (77)(a) through (f); or
436 (ii) a package agent.
437 (78) "Premises" means a building, enclosure, or room used in connection with the
438 storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic product,
439 unless otherwise defined in this title or rules made by the commission.
440 (79) "Prescription" means an order issued by a health care practitioner when:
441 (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
442 to prescribe a controlled substance, other drug, or device for medicinal purposes;
443 (b) the order is made in the course of that health care practitioner's professional
444 practice; and
445 (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
446 (80) (a) "Private event" means a specific social, business, or recreational event:
447 (i) for which an entire room, area, or hall is leased or rented in advance by an identified
448 group; and
449 (ii) that is limited in attendance to people who are specifically designated and their
450 guests.
451 (b) "Private event" does not include an event to which the general public is invited,
452 whether for an admission fee or not.
453 (81) (a) "Proof of age" means:
454 (i) an identification card;
455 (ii) an identification that:
456 (A) is substantially similar to an identification card;
457 (B) is issued in accordance with the laws of a state other than Utah in which the
458 identification is issued;
459 (C) includes date of birth; and

460 (D) has a picture affixed;
461 (iii) a valid driver license certificate that:
462 (A) includes date of birth;
463 (B) has a picture affixed; and
464 (C) is issued:
465 (I) under Title 53, Chapter 3, Uniform Driver License Act; or
466 (II) in accordance with the laws of the state in which it is issued;
467 (iv) a military identification card that:
468 (A) includes date of birth; and
469 (B) has a picture affixed; or
470 (v) a valid passport.
471 (b) "Proof of age" does not include a driving privilege card issued in accordance with
472 Section 53-3-207 .
473 (82) (a) "Public building" means a building or permanent structure that is:
474 (i) owned or leased by:
475 (A) the state; or
476 (B) a local government entity; and
477 (ii) used for:
478 (A) public education;
479 (B) transacting public business; or
480 (C) regularly conducting government activities.
481 (b) "Public building" does not include a building owned by the state or a local
482 government entity when the building is used by a person, in whole or in part, for a proprietary
483 function.
484 (83) "Public conveyance" means a conveyance to which the public or a portion of the
485 public has access to and a right to use for transportation, including an airline, railroad, bus,
486 boat, or other public conveyance.
487 (84) "Reception center" means a business that:
488 (a) operates facilities that are at least 5,000 square feet; and
489 (b) has as its primary purpose the leasing of the facilities described in Subsection
490 (84)(a) to a third party for the third party's event.

491 (85) "Reception center license" means a license issued in accordance with Chapter 5,
492 Retail License Act, and Chapter 6, Part 8, Reception Center License.
493 (86) (a) "Record" means information that is:
494 (i) inscribed on a tangible medium; or
495 (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
496 (b) "Record" includes:
497 (i) a book;
498 (ii) a book of account;
499 (iii) a paper;
500 (iv) a contract;
501 (v) an agreement;
502 (vi) a document; or
503 (vii) a recording in any medium.
504 (87) "Residence" means a person's principal place of abode within Utah.
505 (88) "Resident," in relation to a resort, is as defined in Section 32B-8-102 .
506 (89) "Resort" is as defined in Section 32B-8-102 .
507 (90) "Resort facility" is as defined by the commission by rule.
508 (91) "Resort license" means a license issued in accordance with Chapter 5, Retail
509 License Act, and Chapter 8, Resort License Act.
510 (92) "Restaurant" means a business location:
511 (a) at which a variety of foods are prepared;
512 (b) at which complete meals are served to the general public; and
513 (c) that is engaged primarily in serving meals to the general public.
514 (93) "Retail license" means one of the following licenses issued under this title:
515 (a) a full-service restaurant license;
516 (b) a limited-service restaurant license;
517 (c) a club license;
518 (d) an airport lounge license;
519 (e) an on-premise banquet license;
520 (f) an on-premise beer license;
521 (g) a reception center license; [or]

522 (h) a beer-only restaurant license[.]; or
523 (i) a dining license.
524 (94) "Room service" means furnishing an alcoholic product to a person in a guest room
525 of a:
526 (a) hotel; or
527 (b) resort facility.
528 (95) "Serve" means to place an alcoholic product before an individual.
529 (96) (a) "School" means a building used primarily for the general education of minors.
530 (b) "School" does not include an educational facility.
531 (97) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby, for
532 consideration, an alcoholic product is either directly or indirectly transferred, solicited, ordered,
533 delivered for value, or by a means or under a pretext is promised or obtained, whether done by
534 a person as a principal, proprietor, or as staff, unless otherwise defined in this title or the rules
535 made by the commission.
536 (98) "Sexually oriented entertainer" means a person who while in a state of seminudity
537 appears at or performs:
538 (a) for the entertainment of one or more patrons;
539 (b) on the premises of:
540 (i) a social club licensee; or
541 (ii) a tavern;
542 (c) on behalf of or at the request of the licensee described in Subsection (98)(b);
543 (d) on a contractual or voluntary basis; and
544 (e) whether or not the person is designated as:
545 (i) an employee;
546 (ii) an independent contractor;
547 (iii) an agent of the licensee; or
548 (iv) a different type of classification.
549 (99) "Single event permit" means a permit issued in accordance with Chapter 9, Part 3,
550 Single Event Permit.
551 (100) "Small brewer" means a brewer who manufactures less than 60,000 barrels of
552 beer, heavy beer, and flavored malt beverages per year.

553 (101) "Social club license" means a license issued in accordance with Chapter 5, Retail
554 License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as a
555 social club license.
556 (102) "Special use permit" means a permit issued in accordance with Chapter 10,
557 Special Use Permit Act.
558 (103) (a) "Spirituous liquor" means liquor that is distilled.
559 (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
560 27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
561 (104) "Sports center" is as defined by the commission by rule.
562 (105) (a) "Staff" means an individual who engages in activity governed by this title:
563 (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
564 holder;
565 (ii) at the request of the business, including a package agent, licensee, permittee, or
566 certificate holder; or
567 (iii) under the authority of the business, including a package agent, licensee, permittee,
568 or certificate holder.
569 (b) "Staff" includes:
570 (i) an officer;
571 (ii) a director;
572 (iii) an employee;
573 (iv) personnel management;
574 (v) an agent of the licensee, including a managing agent;
575 (vi) an operator; or
576 (vii) a representative.
577 (106) "State of nudity" means:
578 (a) the appearance of:
579 (i) the nipple or areola of a female human breast;
580 (ii) a human genital;
581 (iii) a human pubic area; or
582 (iv) a human anus; or
583 (b) a state of dress that fails to opaquely cover:

584 (i) the nipple or areola of a female human breast;
585 (ii) a human genital;
586 (iii) a human pubic area; or
587 (iv) a human anus.
588 (107) "State of seminudity" means a state of dress in which opaque clothing covers no
589 more than:
590 (a) the nipple and areola of the female human breast in a shape and color other than the
591 natural shape and color of the nipple and areola; and
592 (b) the human genitals, pubic area, and anus:
593 (i) with no less than the following at its widest point:
594 (A) four inches coverage width in the front of the human body; and
595 (B) five inches coverage width in the back of the human body; and
596 (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
597 (108) (a) "State store" means a facility for the sale of packaged liquor:
598 (i) located on premises owned or leased by the state; and
599 (ii) operated by a state employee.
600 (b) "State store" does not include:
601 (i) a package agency;
602 (ii) a licensee; or
603 (iii) a permittee.
604 (109) (a) "Storage area" means an area on licensed premises where the licensee stores
605 an alcoholic product.
606 (b) "Store" means to place or maintain in a location an alcoholic product from which a
607 person draws to prepare an alcoholic product to be furnished to a patron, except as provided in
608 Subsection 32B-6-205 (12)(b)(ii), 32B-6-305 (12)(b)(ii), 32B-6-805 (15)(b)(ii), or
609 32B-6-905 (12)(b)(ii).
610 (110) "Sublicense" is as defined in Section 32B-8-102 .
611 (111) "Supplier" means a person who sells an alcoholic product to the department.
612 (112) "Tavern" means an on-premise beer retailer who is:
613 (a) issued a license by the commission in accordance with Chapter 5, Retail License
614 Act, and Chapter 6, Part 7, On-premise Beer Retailer License; and

615 (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
616 On-premise Beer Retailer License.
617 (113) "Temporary beer event permit" means a permit issued in accordance with
618 Chapter 9, Part 4, Temporary Beer Event Permit.
619 (114) "Temporary domicile" means the principal place of abode within Utah of a
620 person who does not have a present intention to continue residency within Utah permanently or
621 indefinitely.
622 (115) "Translucent" means a substance that allows light to pass through, but does not
623 allow an object or person to be seen through the substance.
624 (116) "Unsaleable liquor merchandise" means a container that:
625 (a) is unsaleable because the container is:
626 (i) unlabeled;
627 (ii) leaky;
628 (iii) damaged;
629 (iv) difficult to open; or
630 (v) partly filled;
631 (b) (i) has faded labels or defective caps or corks;
632 (ii) has contents that are:
633 (A) cloudy;
634 (B) spoiled; or
635 (C) chemically determined to be impure; or
636 (iii) contains:
637 (A) sediment; or
638 (B) a foreign substance; or
639 (c) is otherwise considered by the department as unfit for sale.
640 (117) (a) "Wine" means an alcoholic product obtained by the fermentation of the
641 natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
642 another ingredient is added.
643 (b) "Wine" is considered liquor for purposes of this title, except as otherwise provided
644 in this title.
645 (118) "Winery manufacturing license" means a license issued in accordance with

646 Chapter 11, Part 3, Winery Manufacturing License.
647 Section 2. Section 32B-1-201 is amended to read:
648 32B-1-201. Restrictions on number of retail licenses that may be issued --
649 Determining population -- Exempt licenses.
650 (1) As used in this section:
651 (a) "Alcohol-related law enforcement officer" means a law enforcement officer
652 employed by the Department of Public Safety that has as a primary responsibility:
653 (i) the enforcement of this title; or
654 (ii) the enforcement of Title 41, Chapter 6a, Part 5, Driving Under the Influence and
655 Reckless Driving.
656 (b) "Enforcement ratio" is the number calculated as follows:
657 (i) determine the quotient equal to the total number of quota retail licenses available
658 divided by the total number of alcohol-related law enforcement officers; and
659 (ii) round the number determined in accordance with Subsection (1)(b)(ii) up to the
660 nearest whole number.
661 (c) "Quota retail license" means:
662 (i) a full-service restaurant license;
663 (ii) a limited-service restaurant license;
664 (iii) a club license;
665 (iv) an on-premise banquet license;
666 (v) an on-premise beer retailer operating as a tavern; [and]
667 (vi) a reception center license[.]; and
668 (vii) a dining license.
669 (d) "Total number of alcohol-related law enforcement officers" means the total number
670 of positions designated as alcohol-related law enforcement officers that are funded as of a
671 specified date as certified by the Department of Public Safety to the department.
672 (e) "Total number of quota retail licenses available" means the number calculated by:
673 (i) determining as of a specified date for each quota retail license the number of
674 licenses that the commission may not exceed calculated by dividing the population of the state
675 by the number specified in the relevant provision for the quota retail license; and
676 (ii) adding together the numbers determined under Subsection (1)(d)(i).

677 (2) (a) Beginning on July 1, 2012, the department shall annually determine the
678 enforcement ratio as of July 1 of that year.
679 (b) If, beginning on July 1, 2012, the enforcement ratio is greater than 52, the
680 commission may not issue a quota retail license for the 12-month period beginning on the July
681 1 for which the enforcement ratio is greater than 52.
682 (c) Notwithstanding Subsection (2)(b), the commission may issue a quota retail license
683 during the 12-month period described in Subsection (2)(b) beginning on the day on which a
684 sufficient number of alcohol-related law enforcement officers are employed so that if the
685 enforcement ratio is calculated, the enforcement ratio would be equal to or less than 52.
686 (d) Once the Department of Public Safety certifies under Subsection (1)(d) the total
687 number of positions designated as alcohol-related law enforcement officers that are funded as
688 of July 1, the Department of Public Safety may not use the funding for the designated
689 alcohol-related law enforcement officers for a purpose other than funding those positions.
690 (3) For purposes of determining the number of state stores that the commission may
691 establish or the number of package agencies or retail licenses that the commission may issue,
692 the commission shall determine population by:
693 (a) the most recent United States decennial or special census; or
694 (b) another population determination made by the United States or state governments.
695 (4) The commission may not consider a retail license that meets the following
696 conditions in determining the total number of licenses available for that type of retail license
697 that the commission may issue at any time:
698 (a) the retail license was issued to a club licensee designated as a dining club as of July
699 1, 2011; and
700 (b) the dining [club] license is converted to another type of retail license in accordance
701 with Section [ 32B-6-409 ] 32B-6-1006 .
702 Section 3. Section 32B-1-407 is amended to read:
703 32B-1-407. Verification of proof of age by applicable licensees.
704 (1) As used in this section, "applicable licensee" means:
705 (a) a dining [club] license;
706 (b) a social club; or
707 (c) a tavern.

708 (2) Notwithstanding any other provision of this part, an applicable licensee shall
709 require that an authorized person for the applicable licensee verify proof of age as provided in
710 this section.
711 (3) An authorized person is required to verify proof of age under this section before an
712 individual who appears to be 35 years of age or younger:
713 (a) gains admittance to the premises of a social club licensee or tavern; or
714 (b) procures an alcoholic product on the premises of a dining [club] licensee.
715 (4) To comply with Subsection (3), an authorized person shall:
716 (a) request the individual present proof of age; and
717 (b) (i) verify the validity of the proof of age electronically under the verification
718 program created in Subsection (5); or
719 (ii) if the proof of age cannot be electronically verified as provided in Subsection
720 (4)(b)(i), request that the individual comply with a process established by the commission by
721 rule.
722 (5) The commission shall establish by rule an electronic verification program that
723 includes the following:
724 (a) the specifications for the technology used by the applicable licensee to
725 electronically verify proof of age, including that the technology display to the person described
726 in Subsection (2) no more than the following for the individual who presents the proof of age:
727 (i) the name;
728 (ii) the age;
729 (iii) the number assigned to the individual's proof of age by the issuing authority;
730 (iv) the birth date;
731 (v) the gender; and
732 (vi) the status and expiration date of the individual's proof of age; and
733 (b) the security measures that shall be used by an applicable licensee to ensure that
734 information obtained under this section is:
735 (i) used by the applicable licensee only for purposes of verifying proof of age in
736 accordance with this section; and
737 (ii) retained by the applicable licensee for seven days after the day on which the
738 applicable licensee obtains the information.

739 (6) (a) An applicable licensee may not disclose information obtained under this section
740 except as provided under this title.
741 (b) Information obtained under this section is considered a record for any purpose
742 under Chapter 5, Part 3, Retail Licensee Operational Requirements.
743 Section 4. Section 32B-2-202 is amended to read:
744 32B-2-202. Powers and duties of the commission.
745 (1) The commission shall:
746 (a) act as a general policymaking body on the subject of alcoholic product control;
747 (b) adopt and issue policies, rules, and procedures;
748 (c) set policy by written rules that establish criteria and procedures for:
749 (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
750 permit, or certificate of approval; and
751 (ii) determining the location of a state store, package agency, or retail licensee;
752 (d) decide within the limits, and under the conditions imposed by this title, the number
753 and location of state stores, package agencies, and retail licensees in the state;
754 (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
755 permits, or certificates of approval for the purchase, storage, sale, offer for sale, furnishing,
756 consumption, manufacture, and distribution of an alcoholic product:
757 (i) a package agency;
758 (ii) a full-service restaurant license;
759 (iii) a limited-service restaurant license;
760 (iv) a club license;
761 (v) an airport lounge license;
762 (vi) an on-premise banquet license;
763 (vii) a resort license, under which four or more sublicenses may be included;
764 (viii) an on-premise beer retailer license;
765 (ix) a reception center license;
766 (x) a beer-only restaurant license;
767 (xi) dining license;
768 [(xi)] (xii) a single event permit;
769 [(xii)] (xiii) a temporary beer event permit;

770 [(xiii)] (xiv) a special use permit;
771 [(xiv)] (xv) a manufacturing license;
772 [(xv)] (xvi) a liquor warehousing license;
773 [(xvi)] (xvii) a beer wholesaling license; and
774 [(xvii)] (xviii) one of the following that holds a certificate of approval:
775 (A) an out-of-state brewer;
776 (B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and
777 (C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages;
778 (f) in accordance with Section 32B-5-205 , issue, deny, suspend, or revoke one of the
779 following conditional licenses for the purchase, storage, sale, furnishing, consumption,
780 manufacture, and distribution of an alcoholic product:
781 (i) a conditional full-service restaurant license; or
782 (ii) a conditional limited-service restaurant license;
783 (g) prescribe the duties of the department in assisting the commission in issuing a
784 package agency, license, permit, or certificate of approval under this title;
785 (h) to the extent a fee is not specified in this title, establish a fee allowed under this title
786 in accordance with Section 63J-1-504 ;
787 (i) fix prices at which liquor is sold that are the same at all state stores, package
788 agencies, and retail licensees;
789 (j) issue and distribute price lists showing the price to be paid by a purchaser for each
790 class, variety, or brand of liquor kept for sale by the department;
791 (k) (i) require the director to follow sound management principles; and
792 (ii) require periodic reporting from the director to ensure that:
793 (A) sound management principles are being followed; and
794 (B) policies established by the commission are being observed;
795 (l) (i) receive, consider, and act in a timely manner upon the reports, recommendations,
796 and matters submitted by the director to the commission; and
797 (ii) do the things necessary to support the department in properly performing the
798 department's duties;
799 (m) obtain temporarily and for special purposes the services of an expert or person
800 engaged in the practice of a profession, or a person who possesses a needed skill if:

801 (i) considered expedient; and
802 (ii) approved by the governor;
803 (n) prescribe the conduct, management, and equipment of premises upon which an
804 alcoholic product may be stored, sold, offered for sale, furnished, or consumed;
805 (o) make rules governing the credit terms of beer sales within the state to retail
806 licensees; and
807 (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
808 disciplinary action against a person subject to administrative action.
809 (2) The power of the commission to do the following is plenary, except as otherwise
810 provided by this title, and not subject to review:
811 (a) establish a state store;
812 (b) issue authority to act as a package agent or operate a package agency; and
813 (c) issue or deny a license, permit, or certificate of approval.
814 (3) If the commission is authorized or required to make a rule under this title, the
815 commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
816 Rulemaking Act.
817 Section 5. Section 32B-2-605 is amended to read:
818 32B-2-605. Operational requirements for package agency.
819 (1) (a) A person may not operate a package agency until a package agency agreement is
820 entered into by the package agent and the department.
821 (b) A package agency agreement shall state the conditions of operation by which the
822 package agent and the department are bound.
823 (c) (i) If a package agent or staff of the package agent violates this title, rules under this
824 title, or the package agency agreement, the department may take any action against the package
825 agent that is allowed by the package agency agreement.
826 (ii) An action against a package agent is governed solely by its package agency
827 agreement and may include suspension or revocation of the package agency.
828 (iii) Notwithstanding that this part refers to "package agency" or "package agent," staff
829 of the package agency or package agent is subject to the same requirement or prohibition.
830 (2) (a) A package agency shall be operated by an individual who is either:
831 (i) the package agent; or

832 (ii) an individual designated by the package agent.
833 (b) An individual who is a designee under this Subsection (2) shall be:
834 (i) an employee of the package agent; and
835 (ii) responsible for the operation of the package agency.
836 (c) The conduct of the designee is attributable to the package agent.
837 (d) A package agent shall submit the name of the person operating the package agency
838 to the department for the department's approval.
839 (e) A package agent shall state the name and title of a designee on the application for a
840 package agency.
841 (f) A package agent shall:
842 (i) inform the department of a proposed change in the individual designated to operate
843 a package agency; and
844 (ii) receive prior approval from the department before implementing the change
845 described in this Subsection (2)(f).
846 (g) Failure to comply with the requirements of this Subsection (2) may result in the
847 immediate termination of a package agency agreement.
848 (3) (a) A package agent shall display in a prominent place in the package agency the
849 record issued by the commission that designates the package agency.
850 (b) A package agent that displays or stores liquor at a location visible to the public
851 shall display in a prominent place in the package agency a sign in large letters that consists of
852 text in the following order:
853 (i) a header that reads: "WARNING";
854 (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
855 can cause birth defects and permanent brain damage for the child.";
856 (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
857 [insert most current toll-free number] with questions or for more information.";
858 (iv) a header that reads: "WARNING"; and
859 (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
860 serious crime that is prosecuted aggressively in Utah."
861 (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
862 font style than the text described in Subsections (3)(b)(iv) and (v).

863 (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
864 same font size.
865 (d) The Department of Health shall work with the commission and department to
866 facilitate consistency in the format of a sign required under this section.
867 (4) A package agency may not display liquor or a price list in a window or showcase
868 that is visible to passersby.
869 (5) (a) A package agency may not purchase liquor from a person except from the
870 department.
871 (b) At the discretion of the department, liquor may be provided by the department to a
872 package agency for sale on consignment.
873 (6) A package agency may not store, sell, offer for sale, or furnish liquor in a place
874 other than as designated in the package agent's application, unless the package agent first
875 applies for and receives approval from the department for a change of location within the
876 package agency premises.
877 (7) A package agency may not sell, offer for sale, or furnish liquor except at a price
878 fixed by the commission.
879 (8) A package agency may not sell, offer for sale, or furnish liquor to:
880 (a) a minor;
881 (b) a person actually, apparently, or obviously intoxicated;
882 (c) a known interdicted person; or
883 (d) a known habitual drunkard.
884 (9) (a) A package agency may not employ a minor to handle liquor.
885 (b) (i) Staff of a package agency may not:
886 (A) consume an alcoholic product on the premises of a package agency; or
887 (B) allow any person to consume an alcoholic product on the premises of a package
888 agency.
889 (ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
890 (10) (a) A package agency may not close or cease operation for a period longer than 72
891 hours, unless:
892 (i) the package agency notifies the department in writing at least seven days before the
893 closing; and

894 (ii) the closure or cessation of operation is first approved by the department.
895 (b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package
896 agency shall immediately notify the department by telephone.
897 (c) (i) The department may authorize a closure or cessation of operation for a period
898 not to exceed 60 days.
899 (ii) The department may extend the initial period an additional 30 days upon written
900 request of the package agency and upon a showing of good cause.
901 (iii) A closure or cessation of operation may not exceed a total of 90 days without
902 commission approval.
903 (d) The notice required by Subsection (10)(a) shall include:
904 (i) the dates of closure or cessation of operation;
905 (ii) the reason for the closure or cessation of operation; and
906 (iii) the date on which the package agency will reopen or resume operation.
907 (e) Failure of a package agency to provide notice and to obtain department
908 authorization before closure or cessation of operation results in an automatic termination of the
909 package agency agreement effective immediately.
910 (f) Failure of a package agency to reopen or resume operation by the approved date
911 results in an automatic termination of the package agency agreement effective on that date.
912 (11) A package agency may not transfer its operations from one location to another
913 location without prior written approval of the commission.
914 (12) (a) A person, having been issued a package agency, may not sell, transfer, assign,
915 exchange, barter, give, or attempt in any way to dispose of the package agency to another
916 person, whether for monetary gain or not.
917 (b) A package agency has no monetary value for any type of disposition.
918 (13) (a) Subject to the other provisions of this Subsection (13):
919 (i) sale or delivery of liquor may not be made on or from the premises of a package
920 agency, and a package agency may not be kept open for the sale of liquor:
921 (A) on Sunday; or
922 (B) on a state or federal legal holiday.
923 (ii) Sale or delivery of liquor may be made on or from the premises of a package
924 agency, and a package agency may be open for the sale of liquor, only on a day and during

925 hours that the commission directs by rule or order.
926 (b) A package agency located at a manufacturing facility is not subject to Subsection
927 (13)(a) if:
928 (i) the package agency is located at a manufacturing facility licensed in accordance
929 with Chapter 11, Manufacturing and Related Licenses Act;
930 (ii) the manufacturing facility licensed in accordance with Chapter 11, Manufacturing
931 and Related Licenses Act, holds:
932 (A) a full-service restaurant license;
933 (B) a limited-service restaurant license;
934 (C) a beer-only restaurant license; or
935 (D) dining [club] license;
936 (iii) the restaurant or dining [club] license premises is located at the manufacturing
937 facility;
938 (iv) the restaurant or dining [club] license premises sells an alcoholic product produced
939 at the manufacturing facility;
940 (v) the manufacturing facility:
941 (A) owns the restaurant or dining [club] license premises; or
942 (B) operates the restaurant or dining [club] license premises;
943 (vi) the package agency only sells an alcoholic product produced at the manufacturing
944 facility; and
945 (vii) the package agency's days and hours of sale are the same as the days and hours of
946 sale at the restaurant or dining [club] license premises.
947 (c) (i) Subsection (13)(a) does not apply to a package agency held by a resort licensee if
948 the package agent that holds the package agency to sell liquor at the resort does not sell liquor
949 in a manner similar to a state store.
950 (ii) The commission may by rule define what constitutes a package agency that sells
951 liquor "in a manner similar to a state store."
952 (14) (a) Except to the extent authorized by commission rule, a minor may not be
953 admitted into, or be on the premises of a package agency unless accompanied by a person who
954 is:
955 (i) 21 years of age or older; and

956 (ii) the minor's parent, legal guardian, or spouse.
957 (b) A package agent or staff of a package agency that has reason to believe that a
958 person who is on the premises of a package agency is under the age of 21 and is not
959 accompanied by a person described in Subsection (14)(a) may:
960 (i) ask the suspected minor for proof of age;
961 (ii) ask the person who accompanies the suspected minor for proof of age; and
962 (iii) ask the suspected minor or the person who accompanies the suspected minor for
963 proof of parental, guardianship, or spousal relationship.
964 (c) A package agent or staff of a package agency shall refuse to sell liquor to the
965 suspected minor and to the person who accompanies the suspected minor into the package
966 agency if the minor or person fails to provide any information specified in Subsection (14)(b).
967 (d) A package agent or staff of a package agency shall require the suspected minor and
968 the person who accompanies the suspected minor into the package agency to immediately leave
969 the premises of the package agency if the minor or person fails to provide information specified
970 in Subsection (14)(b).
971 (15) (a) A package agency shall sell, offer for sale, or furnish liquor in a sealed
972 container.
973 (b) A person may not open a sealed container on the premises of a package agency.
974 (c) Notwithstanding Subsection (15)(a), a package agency may sell, offer for sale, or
975 furnish liquor in other than a sealed container:
976 (i) if the package agency is the type of package agency that authorizes the package
977 agency to sell, offer for sale, or furnish the liquor as part of room service;
978 (ii) if the liquor is sold, offered for sale, or furnished as part of room service; and
979 (iii) subject to:
980 (A) staff of the package agency providing the liquor in person only to an adult guest in
981 the guest room;
982 (B) staff of the package agency not leaving the liquor outside a guest room for retrieval
983 by a guest; and
984 (C) the same limits on the portions in which an alcoholic product may be sold by a
985 retail licensee under Section 32B-5-304 .
986 (16) On or after October 1, 2011, a package agency may not sell, offer for sale, or

987 furnish heavy beer in a sealed container that exceeds two liters.
988 (17) The department may pay or otherwise remunerate a package agent on any basis,
989 including sales or volume of business done by the package agency.
990 (18) The commission may prescribe by policy or rule general operational requirements
991 of a package agency that are consistent with this title and relate to:
992 (a) physical facilities;
993 (b) conditions of operation;
994 (c) hours of operation;
995 (d) inventory levels;
996 (e) payment schedules;
997 (f) methods of payment;
998 (g) premises security; and
999 (h) any other matter considered appropriate by the commission.
1000 Section 6. Section 32B-6-202 is amended to read:
1001 32B-6-202. Definitions.
1002 As used in this part:
1003 (1) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
1004 full-service restaurant licensee that:
1005 (i) as of May 11, 2009, has:
1006 (A) patron seating at the bar structure;
1007 (B) a partition at one or more locations on the bar structure that is along:
1008 (I) the width of the bar structure; or
1009 (II) the length of the bar structure; and
1010 (C) facilities for the dispensing or storage of an alcoholic product:
1011 (I) on the portion of the bar structure that is separated by the partition described in
1012 Subsection (1)(a)(i)(B); or
1013 (II) if the partition as described in Subsection (1)(a)(i)(B)(II) is adjacent to the bar
1014 structure in a manner visible to a patron sitting at the bar structure;
1015 (ii) is not operational as of May 12, 2009, if:
1016 (A) a person applying for a full-service restaurant license:
1017 (I) has as of May 12, 2009, a building permit to construct the restaurant;

1018 (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
1019 defined by rule made by the commission; and
1020 (III) is issued the full-service restaurant license by no later than December 31, 2009;
1021 and
1022 (B) once constructed, the licensed premises has a bar structure described in Subsection
1023 (1)(a)(i);
1024 (iii) as of May 12, 2009, has no patron seating at the bar structure; or
1025 (iv) is not operational as of May 12, 2009, if:
1026 (A) a person applying for a full-service restaurant license:
1027 (I) has as of May 12, 2009, a building permit to construct the restaurant;
1028 (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
1029 defined by rule made by the commission; and
1030 (III) is issued a full-service restaurant license by no later than December 31, 2009; and
1031 (B) once constructed, the licensed premises has a bar structure with no patron seating.
1032 (b) "Grandfathered bar structure" does not include a grandfathered bar structure
1033 described in Subsection (1)(a) on or after the day on which a restaurant remodels the
1034 grandfathered bar structure, as defined by rule made by the commission.
1035 (c) Subject to Subsection (1)(b), a grandfathered bar structure remains a grandfathered
1036 bar structure notwithstanding whether a restaurant undergoes a change of ownership.
1037 (2) "Seating grandfathered bar structure" means:
1038 (a) a grandfathered bar structure described in Subsection (1)(a)(i) or (ii); or
1039 (b) a bar structure grandfathered under Section [ 32B-6-409 ] 32B-6-1006 .
1040 Section 7. Section 32B-6-302 is amended to read:
1041 32B-6-302. Definitions.
1042 As used in this part:
1043 (1) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
1044 limited-service restaurant licensee that:
1045 (i) as of May 11, 2009, has:
1046 (A) patron seating at the bar structure;
1047 (B) a partition at one or more locations on the bar structure that is along:
1048 (I) the width of the bar structure; or

1049 (II) the length of the bar structure; and
1050 (C) facilities for the dispensing or storage of an alcoholic product:
1051 (I) on the portion of the bar structure that is separated by the partition described in
1052 Subsection (1)(a)(i)(B); or
1053 (II) if the partition as described in Subsection (1)(a)(i)(B)(II) is adjacent to the bar
1054 structure in a manner visible to a patron sitting at the bar structure;
1055 (ii) is not operational as of May 12, 2009, if:
1056 (A) a person applying for a limited-service restaurant license:
1057 (I) has as of May 12, 2009, a building permit to construct the restaurant;
1058 (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
1059 defined by rule made by the commission; and
1060 (III) is issued the limited-service restaurant license by no later than December 31,
1061 2009; and
1062 (B) once constructed, the licensed premises has a bar structure described in Subsection
1063 (1)(a)(i);
1064 (iii) as of May 12, 2009, has no patron seating at the bar structure; or
1065 (iv) is not operational as of May 12, 2009, if:
1066 (A) a person applying for a limited-service restaurant license:
1067 (I) has as of May 12, 2009, a building permit to construct the restaurant;
1068 (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
1069 defined by rule made by the commission; and
1070 (III) is issued a limited-service restaurant license by no later than December 31, 2009;
1071 and
1072 (B) once constructed, the licensed premises has a bar structure with no patron seating.
1073 (b) "Grandfathered bar structure" does not include a grandfathered bar structure
1074 described in Subsection (1)(a) on or after the day on which a restaurant remodels the
1075 grandfathered bar structure, as defined by rule made by the commission.
1076 (c) Subject to Subsection (1)(b), a grandfathered bar structure remains a grandfathered
1077 bar structure notwithstanding whether a restaurant undergoes a change of ownership.
1078 (2) "Seating grandfathered bar structure" means:
1079 (a) a grandfathered bar structure described in Subsection (1)(a)(i) or (ii); or

1080 (b) a bar structure grandfathered under Section [ 32B-6-409 ] 32B-6-1006 .
1081 (3) "Wine" includes an alcoholic beverage defined as wine under 27 U.S.C. Sec. 211
1082 and 27 C.F.R. Sec. 4.10, including the following alcoholic beverages made in the manner of
1083 wine containing not less than 7% and not more than 24% of alcohol by volume:
1084 (a) sparkling and carbonated wine;
1085 (b) wine made from condensed grape must;
1086 (c) wine made from other agricultural products than the juice of sound, ripe grapes;
1087 (d) imitation wine;
1088 (e) compounds sold as wine;
1089 (f) vermouth;
1090 (g) cider;
1091 (h) perry; and
1092 (i) sake.
1093 Section 8. Section 32B-6-403 is amended to read:
1094 32B-6-403. Commission's power to issue club license.
1095 (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
1096 an alcoholic product on its premises as a club licensee, the person shall first obtain a club
1097 license from the commission in accordance with this part.
1098 (2) The commission may issue a club license to establish club licensed premises at
1099 places and in numbers the commission considers proper for the storage, sale, offer for sale,
1100 furnishing, and consumption of an alcoholic product on premises operated by a club licensee.
1101 (3) Subject to Section 32B-1-201 :
1102 (a) The commission may not issue a total number of club licenses that at any time
1103 exceeds the number determined by dividing the population of the state by [7,850] 9,650.
1104 (b) The commission may issue a seasonal club license in accordance with Section
1105 32B-5-206 to[: (i) a dining club licensee; or (ii)] a social club licensee.
1106 (c) (i) If the location, design, and construction of a hotel may require more than one
1107 [dining club license or] social club license location within the hotel to serve the public
1108 convenience, the commission may authorize as many as three club license locations within the
1109 hotel under one club license if:
1110 (A) the hotel has a minimum of 150 guest rooms; and

1111 (B) all locations under the club license are:
1112 (I) within the same hotel; and
1113 (II) on premises that are managed or operated, and owned or leased, by the club
1114 licensee.
1115 (ii) A facility other than a hotel shall have a separate club license for each club license
1116 location where an alcoholic product is sold, offered for sale, or furnished.
1117 (d) When a business establishment undergoes a change of ownership, the commission
1118 may issue a club license to the new owner of the business establishment notwithstanding that
1119 there is no club license available under Subsection (3)(a) if:
1120 (i) the primary business activity at the business establishment before and after the
1121 change of ownership is not the sale, offer for sale, or furnishing of an alcoholic product;
1122 (ii) before the change of ownership there are two or more licensed premises on the
1123 business establishment that operate under a retail license, with at least one of the retail licenses
1124 being a club license;
1125 (iii) subject to Subsection (3)(e), the licensed premises of the club license issued under
1126 this Subsection (3)(d) is at the same location where the club license licensed premises was
1127 located before the change of ownership; and
1128 (iv) the person who is the new owner of the business establishment qualifies for the
1129 club license, except for there being no club license available under Subsection (3)(a).
1130 (e) If a club licensee of a club license issued under Subsection (3)(d) requests a change
1131 of location, the club licensee may retain the club license after the change of location only if on
1132 the day on which the club licensee seeks a change of location a club license is available under
1133 Subsection (3)(a).
1134 Section 9. Section 32B-6-404 is amended to read:
1135 32B-6-404. Types of club license.
1136 (1) To obtain an equity club license, in addition to meeting the other requirements of
1137 this part, a person shall:
1138 (a) whether incorporated or unincorporated:
1139 (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
1140 purpose;
1141 (ii) have members;

1142 (iii) limit access to its licensed premises to a member or a guest of the member; and
1143 (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
1144 to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
1145 (b) own, maintain, or operate a substantial recreational facility in conjunction with a
1146 club house such as:
1147 (i) a golf course; or
1148 (ii) a tennis facility;
1149 (c) have at least 50% of the total membership having:
1150 (i) full voting rights; and
1151 (ii) an equal share of the equity of the club; and
1152 (d) if there is more than one class of membership, have at least one class of
1153 membership that entitles each member in that class to:
1154 (i) full voting rights; and
1155 (ii) an equal share of the equity of the club.
1156 (2) To obtain a fraternal club license, in addition to meeting the other requirements of
1157 this part, a person shall:
1158 (a) whether incorporated or unincorporated:
1159 (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
1160 purpose;
1161 (ii) have members;
1162 (iii) limit access to its licensed premises to a member or a guest of the member; and
1163 (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
1164 to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
1165 (b) have no capital stock;
1166 (c) exist solely for:
1167 (i) the benefit of its members and their beneficiaries; and
1168 (ii) a lawful social, intellectual, educational, charitable, benevolent, moral, fraternal,
1169 patriotic, or religious purpose for the benefit of its members or the public, carried on through
1170 voluntary activity of its members in their local lodges;
1171 (d) have a representative form of government;
1172 (e) have a lodge system in which:

1173 (i) there is a supreme governing body;
1174 (ii) subordinate to the supreme governing body are local lodges, however designated,
1175 into which individuals are admitted as members in accordance with the laws of the fraternal;
1176 (iii) the local lodges are required by the laws of the fraternal to hold regular meetings at
1177 least monthly; and
1178 (iv) the local lodges regularly engage in one or more programs involving member
1179 participation to implement the purposes of Subsection (2)(c); and
1180 (f) own or lease a building or space in a building used for lodge activities.
1181 [(3) To obtain a dining club license, in addition to meeting the other requirements of
1182 this part, a person shall:]
1183 [(a) maintain at least the following percentages of its total club business from the sale
1184 of food, not including mix for alcoholic products, or service charges:]
1185 [(i) for a dining club license that is issued an original license on or after July 1, 2011,
1186 60%; and]
1187 [(ii) for a dining club license that is issued on or before June 30, 2011:]
1188 [(A) 50% on or before June 30, 2012; and]
1189 [(B) 60% on and after July 1, 2012; and]
1190 [(b) obtain a determination by the commission that the person will operate as a dining
1191 club licensee, as part of which the commission may consider:]
1192 [(i) the square footage and seating capacity of the premises;]
1193 [(ii) what portion of the square footage and seating capacity will be used for a dining
1194 area in comparison to the portion that will be used as a lounge or bar area;]
1195 [(iii) whether full meals including appetizers, main courses, and desserts are served;]
1196 [(iv) whether the person will maintain adequate on-premise culinary facilities to
1197 prepare full meals, except a person who is located on the premise of a hotel or resort facility
1198 may use the culinary facilities of the hotel or resort facility;]
1199 [(v) whether the entertainment provided at the club is suitable for minors; and]
1200 [(vi) the club management's ability to manage and operate a dining club license
1201 including:]
1202 [(A) management experience;]
1203 [(B) past dining club licensee or restaurant management experience; and]

1204 [(C) the type of management scheme used by the dining club license.]
1205 [(4)] (3) To obtain a social club license, a person is required to meet the requirements
1206 of this part except those listed in Subsection (1)[,] or (2)[, or (3)].
1207 [(5)] (4) (a) At the time that the commission issues a club license, the commission shall
1208 designate the type of club license for which the person qualifies.
1209 (b) If requested by a club licensee, the commission may approve a change in the type of
1210 club license in accordance with rules made by the commission.
1211 (6) To the extent not prohibited by law, this part does not prevent a [dining club
1212 licensee or] social club licensee from restricting access to the club's licensed premises on the
1213 basis of an individual:
1214 (a) paying a fee; or
1215 (b) agreeing to being on a list of individuals who have access to the club's licensed
1216 premises.
1217 Section 10. Section 32B-6-405 is amended to read:
1218 32B-6-405. Specific licensing requirements for club license.
1219 (1) To obtain a club license, in addition to complying with Chapter 5, Part 2, Retail
1220 Licensing Process, a person shall submit with the written application:
1221 (a) (i) a statement as to whether the person is seeking to qualify as:
1222 (A) an equity club licensee;
1223 (B) a fraternal club licensee; or
1224 [(C) a dining club licensee; or]
1225 [(D)] (C) a social club licensee; and
1226 (ii) evidence that the person meets the requirements for the type of club license for
1227 which the person is applying;
1228 (b) evidence that the person operates club premises where a variety of food is prepared
1229 and served in connection with dining accommodations; and
1230 (c) if the person is applying for an equity club license or fraternal club license, a copy
1231 of the club's bylaws or house rules, and an amendment to those records.
1232 (2) The commission may refuse to issue a club license to a person for an equity club
1233 license or fraternal club license if the commission determines that a provision of the person's
1234 bylaws or house rules, or amendments to those records is not:

1235 (a) reasonable; and
1236 (b) consistent with:
1237 (i) the declared nature and purpose of the club licensee; and
1238 (ii) the purposes of this part.
1239 (3) (a) A club license expires on June 30 of each year.
1240 (b) To renew a club license, a person shall comply with the requirements of Chapter 5,
1241 Part 2, Retail Licensing Process, by no later than May 31.
1242 (4) (a) The nonrefundable application fee for a club license is $300.
1243 (b) The initial license fee for a club license is $2,750.
1244 (c) The renewal fee for a club license is $2,000.
1245 (5) The bond amount required for a club license is the penal sum of $10,000.
1246 Section 11. Section 32B-6-406 is amended to read:
1247 32B-6-406. Specific operational requirements for a club license.
1248 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
1249 Requirements, a club licensee and staff of the club licensee shall comply with this section.
1250 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
1251 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
1252 (i) a club licensee;
1253 (ii) individual staff of a club licensee; or
1254 (iii) both a club licensee and staff of the club licensee.
1255 (2) In addition to complying with Subsection 32B-5-301 (3), a club licensee shall
1256 display in a prominent place in the club licensed premises a list of the types and brand names of
1257 liquor being furnished through the club licensee's calibrated metered dispensing system.
1258 (3) (a) In addition to complying with Section 32B-5-302 , a club licensee shall maintain
1259 for a minimum of three years:
1260 (i) a record required by Section 32B-5-302 ; and
1261 (ii) a record maintained or used by the club licensee, as the department requires.
1262 (b) Section 32B-1-205 applies to a record required to be made, maintained, or used in
1263 accordance with this Subsection (3).
1264 (c) The department shall audit the records of a club licensee at least once annually.
1265 (4) (a) A club licensee may not sell, offer for sale, or furnish liquor on the licensed

1266 premises on any day during a period that:
1267 (i) begins at 1 a.m.; and
1268 (ii) ends at 9:59 a.m.
1269 (b) A club licensee may sell, offer for sale, or furnish beer during the hours specified in
1270 Part 7, On-premise Beer Retailer License, for an on-premise beer retailer license.
1271 (c) (i) Notwithstanding Subsections (4)(a) and (b), a club licensee shall keep its
1272 licensed premises open for one hour after the club licensee ceases the sale and furnishing of an
1273 alcoholic product during which time a patron of the club licensee may finish consuming:
1274 (A) a single drink containing spirituous liquor;
1275 (B) a single serving of wine not exceeding five ounces;
1276 (C) a single serving of heavy beer;
1277 (D) a single serving of beer not exceeding 26 ounces; or
1278 (E) a single serving of a flavored malt beverage.
1279 (ii) A club licensee is not required to remain open:
1280 (A) after all patrons have vacated the premises; or
1281 (B) during an emergency.
1282 (5) (a) A minor may not be admitted into, use, or be in:
1283 (i) a lounge or bar area of the premises of:
1284 (A) an equity club licensee; or
1285 (B) a fraternal club licensee; or
1286 [(C) a dining club licensee; or]
1287 (ii) the premises of[: (A) a dining club licensee unless accompanied by an individual
1288 who is 21 years of age or older; or (B)] a social club licensee, except to the extent provided for
1289 under Section 32B-6-406.1 .
1290 (b) Notwithstanding Section 32B-5-308 , a club licensee may not employ a minor to:
1291 (i) work in a lounge or bar area of an equity club licensee[,] or fraternal club licensee[,
1292 or dining club licensee]; or
1293 (ii) handle an alcoholic product.
1294 (c) Notwithstanding Section 32B-5-308 , a minor may not be employed on the licensed
1295 premises of a social club licensee.
1296 (d) Nothing in this part or Section 32B-5-308 precludes a local authority from being

1297 more restrictive of a minor's admittance to, use of, or presence on the licensed premises of a
1298 club licensee.
1299 (6) A club licensee shall have food available at all times when an alcoholic product is
1300 sold, offered for sale, furnished, or consumed on the licensed premises.
1301 (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have
1302 more than two alcoholic products of any kind at a time before the patron.
1303 (b) A patron may not have two spirituous liquor drinks before the club licensee patron
1304 if one of the spirituous liquor drinks consists only of the primary spirituous liquor for the other
1305 spirituous liquor drink.
1306 (c) An individual portion of wine is considered to be one alcoholic product under
1307 Subsection (7)(a).
1308 (8) A club licensee shall have available on the premises for a patron to review at the
1309 time that the patron requests it, a written alcoholic product price list or a menu containing the
1310 price of an alcoholic product sold, offered for sale, or furnished by the club licensee including:
1311 (a) a set-up charge;
1312 (b) a service charge; or
1313 (c) a chilling fee.
1314 (9) Subject to Section 32B-5-309 , a club licensee may not temporarily rent or
1315 otherwise temporarily lease its premises to a person unless:
1316 (a) the person to whom the club licensee rents or leases the premises agrees in writing
1317 to comply with this title as if the person is the club licensee, except for a requirement related to
1318 making or maintaining a record; and
1319 (b) the club licensee takes reasonable steps to ensure that the person complies with this
1320 section as provided in Subsection (9)(a).
1321 (10) If a club licensee is an equity club licensee or fraternal club licensee, the club
1322 licensee shall comply with Section 32B-6-407 .
1323 (11) If a club licensee is a [dining club licensee or] social club licensee, the club
1324 licensee shall comply with Section 32B-1-407 .
1325 (12) (a) A club licensee shall own or lease premises suitable for the club licensee's
1326 activities.
1327 (b) A club licensee may not maintain licensed premises in a manner that barricades or

1328 conceals the club licensee's operation.
1329 Section 12. Section 32B-6-407 is amended to read:
1330 32B-6-407. Specific operational requirements for equity club license or fraternal
1331 club license.
1332 (1) For purposes of this section only:
1333 (a) "Club licensee" means an equity club licensee or fraternal club licensee.
1334 (b) "Club licensee" does not include a [dining club licensee or] social club licensee.
1335 (2) (a) A club licensee shall have a governing body that:
1336 (i) consists of three or more members of the club; and
1337 (ii) holds regular meetings to:
1338 (A) review membership applications; and
1339 (B) conduct other business as required by the bylaws or house rules of the club.
1340 (b) (i) A club licensee shall maintain a minute book that is posted currently by the club
1341 licensee.
1342 (ii) The minute book required by this Subsection (2) shall contain the minutes of a
1343 regular or special meeting of the governing body.
1344 (3) A club licensee may admit an individual as a member only on written application
1345 signed by the person, subject to:
1346 (a) the person paying an application fee; and
1347 (b) investigation, vote, and approval of a quorum of the governing body.
1348 (4) A club licensee shall:
1349 (a) record an admission of a member in the official minutes of a regular meeting of the
1350 governing body; and
1351 (b) whether approved or disapproved, file an application as a part of the official records
1352 of the club licensee.
1353 (5) The spouse of a member of a club licensee has the rights and privileges of the
1354 member:
1355 (a) to the extent permitted by the bylaws or house rules of the club licensee; and
1356 (b) except to the extent restricted by this title.
1357 (6) A minor child of a member of a club licensee has the rights and privileges of the
1358 member:

1359 (a) to the extent permitted by the bylaws or house rules of the club licensee; and
1360 (b) except to the extent restricted by this title.
1361 (7) A club licensee shall maintain:
1362 (a) a current and complete membership record showing:
1363 (i) the date of application of a proposed member;
1364 (ii) a member's address;
1365 (iii) the date the governing body approved a member's admission;
1366 (iv) the date initiation fees and dues are assessed and paid; and
1367 (v) the serial number of the membership card issued to a member;
1368 (b) a membership list; and
1369 (c) a current record indicating when a member is removed as a member or resigns.
1370 (8) (a) A club licensee shall have bylaws or house rules that include provisions
1371 respecting the following:
1372 (i) standards of eligibility for members;
1373 (ii) limitation of members, consistent with the nature and purpose of the club;
1374 (iii) the period for which dues are paid, and the date upon which the period expires;
1375 (iv) provisions for removing a member from the club membership for the nonpayment
1376 of dues or other cause;
1377 (v) provisions for guests; and
1378 (vi) application fees and membership dues.
1379 (b) A club licensee shall maintain a current copy of the club licensee's current bylaws
1380 and current house rules.
1381 (c) A club licensee shall maintain its bylaws or house rules, and any amendments to
1382 those records, on file with the department at all times.
1383 (9) A club licensee may, in its discretion, allow an individual to be admitted to or use
1384 the club licensed premises as a guest subject to the following conditions:
1385 (a) the individual is allowed to use the club licensee premises only to the extent
1386 permitted by the club licensee's bylaws or house rules;
1387 (b) the individual shall be previously authorized by a member of the club who agrees to
1388 host the individual as a guest into the club;
1389 (c) the individual has only those privileges derived from the individual's host for the

1390 duration of the individual's visit to the club licensee premises; and
1391 (d) a club licensee or staff of the club licensee may not enter into an agreement or
1392 arrangement with a club member to indiscriminately host a member of the general public into
1393 the club licensee premises as a guest.
1394 (10) Notwithstanding Subsection (9), an individual may be allowed as a guest in a club
1395 licensed premises without a host if:
1396 (a) (i) the club licensee is an equity club licensee; and
1397 (ii) the individual is a member of an equity club licensee that has reciprocal guest
1398 privileges with the equity club licensee for which the individual is a guest; or
1399 (b) (i) the club licensee is a fraternal club licensee; and
1400 (ii) the individual is a member of the same fraternal organization as the fraternal club
1401 licensee for which the individual is a guest.
1402 (11) Unless the patron is a member or guest, a club licensee may not:
1403 (a) sell, offer for sale, or furnish an alcoholic product to the patron; or
1404 (b) allow the patron to be admitted to or use the licensed premises.
1405 (12) A minor may not be a member, officer, director, or trustee of a club licensee.
1406 (13) Public advertising related to a club licensee by the following shall clearly identify
1407 a club as being "a club for members":
1408 (a) the club licensee;
1409 (b) staff of the club licensee; or
1410 (c) a person under a contract or agreement with the club licensee.
1411 Section 13. Section 32B-6-902 (Effective 03/01/12) is amended to read:
1412 32B-6-902 (Effective 03/01/12). Definitions.
1413 (1) (a) As used in this part, "grandfathered bar structure" means a bar structure in a
1414 licensed premises of a beer-only restaurant licensee that:
1415 (i) was licensed as an on-premise beer retailer as of August 1, 2011, and as of August
1416 1, 2011:
1417 (A) is operational;
1418 (B) has facilities for the dispensing or storage of an alcoholic product that do not meet
1419 the requirements of Subsection 32B-6-905 (12)(a)(ii); and
1420 (C) in accordance with Subsection 32B-6-703 (2)(e), notifies the department that

1421 effective March 1, 2012, the on-premise beer retailer licensee will seek to be licensed as a
1422 beer-only restaurant; or
1423 (ii) is a bar structure grandfathered under Section [ 32B-6-409 ] 32B-6-1006 .
1424 (b) "Grandfathered bar structure" does not include a grandfathered bar structure
1425 described in Subsection (1)(a) on or after the day on which a restaurant remodels the
1426 grandfathered bar structure, as defined by rule made by the commission.
1427 (2) Subject to Subsection (1)(b), a grandfathered bar structure remains a grandfathered
1428 bar structure notwithstanding whether a restaurant undergoes a change of ownership.
1429 Section 14. Section 32B-6-1001 is enacted to read:
1430 Part 10. Dining License
1431 32B-6-1001. Title.
1432 This part is known as "Dining License."
1433 Section 15. Section 32B-6-1002 is enacted to read:
1434 32B-6-1002. Definitions.
1435 Reserved.
1436 Section 16. Section 32B-6-1003 is enacted to read:
1437 32B-6-1003. Commission's power to issue dining licenses.
1438 (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
1439 an alcoholic product on its premises as a dining licensee, the person shall first obtain a dining
1440 license from the commission in accordance with this part.
1441 (2) The commission may issue a dining license to establish dining-licensed premises at
1442 places and in numbers the commission considers proper for the storage, sale, offer for sale,
1443 furnishing, and consumption of an alcoholic product on premises operated as a dining
1444 establishment.
1445 (3) Subject to Section 32B-1-201 :
1446 (a) The commission may not issue a total number of dining licenses that at any time
1447 exceeds the number determined by dividing the population of the state by 37,500.
1448 (b) The commission may issue a seasonal dining license in accordance with Section
1449 32B-5-206 .
1450 (c) (i) If the location, design, and construction of a hotel may require more than one
1451 dining license sales location within the hotel to serve the public convenience, the commission

1452 may authorize the sale, offer for sale, or furnishing of an alcoholic product at as many as three
1453 dining establishments within the hotel under one dining license if:
1454 (A) the hotel has a minimum of 150 guest rooms; and
1455 (B) the locations under the dining license are within the same hotel, and on premises
1456 that are managed or operated, and owned or leased, by the dining licensee.
1457 (ii) A facility other than a hotel shall have a separate dining license for each dining
1458 establishment where an alcoholic product is sold, offered for sale, or furnished.
1459 (d) When a business establishment undergoes a change of ownership, the commission
1460 may issue a dining license to the new owner of the business establishment notwithstanding that
1461 there is no dining license available under Subsection (3)(a) if:
1462 (i) the primary business activity at the business establishment before and after the
1463 change of ownership is not the sale, offer for sale, or furnishing of an alcoholic product;
1464 (ii) before the change of ownership there are two or more licensed premises on the
1465 business establishment that operate under a retail license, with at least one of the retail licenses
1466 being a dining license;
1467 (iii) subject to Subsection (3)(e), the licensed premises of the dining license issued
1468 under this Subsection (3)(d) is at the same location where the dining license licensed premises
1469 was located before the change of ownership; and
1470 (iv) the person who is the new owner of the business establishment qualifies for the
1471 dining license, except for there being no dining license available under Subsection (3)(a).
1472 (e) If a dining licensee of a dining license issued under Subsection (3)(d) requests a
1473 change of location, the dining licensee may retain the dining license after the change of
1474 location only if on the day on which the dining licensee seeks a change of location a dining
1475 license is available under Subsection (3)(a).
1476 (4) The commission may not issue a dining license for premises that do not meet the
1477 proximity requirements of Section 32B-1-202 .
1478 (5) To obtain a dining license, in addition to meeting the other requirements of this
1479 part, a person shall:
1480 (a) maintain at least 60% of its total dining establishment from the sale of food, not
1481 including mix for alcoholic products, or service charges; and
1482 (b) obtain a determination by the commission that the person will operate as a dining

1483 licensee, as part of which the commission may consider:
1484 (i) the square footage and seating capacity of the premises;
1485 (ii) what portion of the square footage and seating capacity will be used for a dining
1486 area in comparison to the portion that will be used as a lounge or bar area;
1487 (iii) whether full meals including appetizers, main courses, and desserts are served;
1488 (iv) whether the person will maintain adequate on-premise culinary facilities to prepare
1489 full meals, except a person who is located on the premise of a hotel or resort facility may use
1490 the culinary facilities of the hotel or resort facility;
1491 (v) whether the entertainment provided at the establishment is suitable for minors; and
1492 (vi) the establishment's management's ability to manage and operate a dining license
1493 including:
1494 (A) management experience;
1495 (B) past dining licensee or restaurant management experience; and
1496 (C) the type of management scheme used by the dining license.
1497 (6) A dining club license issued as of June, 2012, is automatically converted to a dining
1498 license under this part, effective July 1, 2012.
1499 Section 17. Section 32B-6-1004 is enacted to read:
1500 32B-6-1004. Specific licensing requirements for dining license.
1501 (1) To obtain a dining license, in addition to complying with Chapter 5, Part 2, Retail
1502 Licensing Process, a person shall submit with the written application:
1503 (a) (i) a statement that the person is seeking to qualify as a dining licensee; and
1504 (ii) evidence that the person meets the requirements for the dining license;
1505 (b) evidence that the person operates a dining establishment where a variety of food is
1506 prepared and served in connection with dining accommodations.
1507 (2) (a) A dining license expires on June 30 of each year.
1508 (b) To renew a dining license, a person shall comply with the requirements of Chapter
1509 5, Part 2, Retail Licensing Process, by no later than May 31.
1510 (3) (a) The nonrefundable application fee for a dining license is $300.
1511 (b) The initial license fee for a dining license is $2,750.
1512 (c) The renewal fee for a dining license is $2,000.
1513 (4) The bond amount required for a dining license is the penal sum of $10,000.

1514 Section 18. Section 32B-6-1005 is enacted to read:
1515 32B-6-1005. Specific operational requirements for a dining license.
1516 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
1517 Requirements, a dining licensee and staff of the dining licensee shall comply with this section.
1518 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
1519 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
1520 (i) a dining licensee;
1521 (ii) individual staff of a dining licensee; or
1522 (iii) both a dining licensee and staff of the dining licensee.
1523 (2) In addition to complying with Subsection 32B-5-301 (3), a dining licensee shall
1524 display in a prominent place in the dining establishment a list of the types and brand names of
1525 liquor being furnished through the dining licensee's calibrated metered dispensing system.
1526 (3) (a) In addition to complying with Section 32B-5-302 , a dining licensee shall
1527 maintain for a minimum of three years:
1528 (i) a record required by Section 32B-5-302 ; and
1529 (ii) a record maintained or used by the dining licensee, as the department requires.
1530 (b) Section 32B-1-205 applies to a record required to be made, maintained, or used in
1531 accordance with this Subsection (3).
1532 (c) The department shall audit the records of a dining licensee at least once annually.
1533 (4) (a) A dining licensee may not sell, offer for sale, or furnish liquor on the licensed
1534 premises on any day during a period that:
1535 (i) begins at 1 a.m.; and
1536 (ii) ends at 9:59 a.m.
1537 (b) A dining licensee may sell, offer for sale, or furnish beer during the hours specified
1538 in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer license.
1539 (c) (i) Notwithstanding Subsections (4)(a) and (b), a dining licensee shall keep its
1540 licensed premises open for one hour after the dining licensee ceases the sale and furnishing of
1541 an alcoholic product during which time a patron of the club licensee may finish consuming:
1542 (A) a single drink containing spirituous liquor;
1543 (B) a single serving of wine not exceeding five ounces;
1544 (C) a single serving of heavy beer;

1545 (D) a single serving of beer not exceeding 26 ounces; or
1546 (E) a single serving of a flavored malt beverage.
1547 (ii) A dining licensee is not required to remain open:
1548 (A) after all patrons have vacated the premises; or
1549 (B) during an emergency.
1550 (5) (a) A minor may not be admitted into, use, or be in a lounge or bar area of the
1551 premises of a dining licensee. A minor may not be admitted into, use, or be on the premises of
1552 a dining licensee unless accompanied by an individual who is 21 years of age or older.
1553 (b) Notwithstanding Section 32B-5-308 , a dining licensee may not employ a minor to:
1554 (i) work in a lounge or bar area of a dining licensee; or
1555 (ii) handle an alcoholic product.
1556 (c) Nothing in this part or Section 32B-5-308 precludes a local authority from being
1557 more restrictive of a minor's admittance to, use of, or presence on the licensed premises of a
1558 dining licensee.
1559 (6) A dining licensee shall have food available at all times when an alcoholic product is
1560 sold, offered for sale, furnished, or consumed on the licensed premises.
1561 (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have
1562 more than two alcoholic products of any kind at a time before the patron.
1563 (b) A patron may not have two spirituous liquor drinks before the dining licensee
1564 patron if one of the spirituous liquor drinks consists only of the primary spirituous liquor for
1565 the other spirituous liquor drink.
1566 (c) An individual portion of wine is considered to be one alcoholic product under
1567 Subsection (7)(a).
1568 (8) A dining licensee shall have available on the premises for a patron to review at the
1569 time that the patron requests it, a written alcoholic product price list or a menu containing the
1570 price of an alcoholic product sold, offered for sale, or furnished by the dining licensee
1571 including:
1572 (a) a set-up charge;
1573 (b) a service charge; or
1574 (c) a chilling fee.
1575 (9) Subject to Section 32B-5-309 , a dining licensee may not temporarily rent or

1576 otherwise temporarily lease its premises to a person unless:
1577 (a) the person to whom the dining licensee rents or leases the premises agrees in
1578 writing to comply with this title as if the person is the dining licensee, except for a requirement
1579 related to making or maintaining a record; and
1580 (b) the dining licensee takes reasonable steps to ensure that the person complies with
1581 this section as provided in Subsection (9)(a).
1582 (10) A dining licensee shall comply with Section 32B-1-407 .
1583 (11) (a) A dining licensee shall own or lease premises suitable for the dining licensee's
1584 activities.
1585 (b) A dining licensee may not maintain licensed premises in a manner that barricades
1586 or conceals the dining licensee's operation.
1587 Section 19. Section 32B-6-1006 is enacted to read:
1588 32B-6-1006. Conversion from dining club license to different type of retail license.
1589 (1) In accordance with this section, a dining club licensee may convert its dining
1590 license to a different type of retail license during the time period:
1591 (a) beginning on July 1, 2012; and
1592 (b) ending on June 30, 2013.
1593 (2) A dining licensee may convert its dining license only to a retail license for which
1594 the dining club licensee qualifies.
1595 (3) The commission shall provide a procedure for a dining licensee to convert to a
1596 different type of retail license as provided in this section by rule made in accordance with Title
1597 63G, Chapter 3, Utah Administrative Rulemaking Act.
1598 (4) After a dining license is converted to another type of retail license, the retail
1599 licensee shall operate under the provisions relevant to the type of retail license held by the retail
1600 licensee, except that, in accordance with Section 32B-1-201 , the retail license is not considered
1601 in determining the total number of licenses available for that type of retail license.
1602 (5) If a dining license is converted to full-service restaurant license, limited-service
1603 restaurant license, or beer-only restaurant license, the bar structure of the dining club is
1604 considered:
1605 (a) a seating grandfathered bar structure for purposes of a full-service restaurant license
1606 or a limited-service restaurant license; or

1607 (b) a grandfathered bar structure for purposes of a beer-only restaurant license.
1608 Section 20. Repealer.
1609 This bill repeals:
1610 Section 32B-6-409, Conversion from dining club license to different type of retail
1611 license.
1612 Section 21. Effective date.
1613 This bill takes effect on July 1, 2012.