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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.


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