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First Substitute S.B. 119

This document includes Senate Committee Amendments incorporated into the bill on Thu, Mar 1, 2012 at 4:31 PM by khelgesen. -->

Senator Ross I. Romero proposes the following substitute bill:


             1     
ALCOHOLIC BEVERAGE CONTROL ACT SAMPLING

             2     
AMENDMENTS

             3     
2012 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Ross I. Romero

             6     
House Sponsor: ____________

             7     

             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Alcoholic Beverage Control Act to address sampling of liquor.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    allows sampling of liquor by retail licensees under certain circumstances;
             15          .    addresses authority of local representatives;
             16          .    addresses giving away of a product except for testing, analysis, and sampling; and
             17          .    makes technical and conforming amendments.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          32B-1-102, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
             25          32B-4-705, as last amended by Laws of Utah 2011, Chapters 307 and 334



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             26
         32B-4-708, as enacted by Laws of Utah 2010, Chapter 276
             27          32B-11-608, as last amended by Laws of Utah 2011, Chapters 307 and 334
             28     

             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 32B-1-102 is amended to read:
             31           32B-1-102. Definitions.
             32          As used in this title:
             33          (1) "Airport lounge" means a business location:
             34          (a) at which an alcoholic product is sold at retail for consumption on the premises; and
             35          (b) that is located at an international airport with a United States Customs office on the
             36      premises of the international airport.
             37          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
             38      Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
             39          (3) "Alcoholic beverage" means the following:
             40          (a) beer; or
             41          (b) liquor.
             42          (4) (a) "Alcoholic product" means a product that:
             43          (i) contains at least .5% of alcohol by volume; and
             44          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
             45      process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
             46      in an amount equal to or greater than .5% of alcohol by volume.
             47          (b) "Alcoholic product" includes an alcoholic beverage.
             48          (c) "Alcoholic product" does not include any of the following common items that
             49      otherwise come within the definition of an alcoholic product:
             50          (i) except as provided in Subsection (4)(d), an extract;
             51          (ii) vinegar;
             52          (iii) cider;
             53          (iv) essence;
             54          (v) tincture;
             55          (vi) food preparation; or
             56          (vii) an over-the-counter medicine.



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         (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
             58      when it is used as a flavoring in the manufacturing of an alcoholic product.
             59          (5) "Alcohol training and education seminar" means a seminar that is:
             60          (a) required by Chapter 5, Part 4, Alcohol Training and Education Act; and
             61          (b) described in Section 62A-15-401 .
             62          (6) "Banquet" means an event:
             63          (a) that is held at one or more designated locations approved by the commission in or
             64      on the premises of a:
             65          (i) hotel;
             66          (ii) resort facility;
             67          (iii) sports center; or
             68          (iv) convention center;
             69          (b) for which there is a contract:
             70          (i) between a person operating a facility listed in Subsection (6)(a) and another person;
             71      and
             72          (ii) under which the person operating a facility listed in Subsection (6)(a) is required to
             73      provide an alcoholic product at the event; and
             74          (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
             75          (7) (a) "Bar" means a surface or structure:
             76          (i) at which an alcoholic product is:
             77          (A) stored; or
             78          (B) dispensed; or
             79          (ii) from which an alcoholic product is served.
             80          (b) "Bar structure" means a surface or structure on a licensed premises if on or at any
             81      place of the surface or structure an alcoholic product is:
             82          (i) stored; or
             83          (ii) dispensed.
             84          (8) (a) Subject to Subsection (8)(d), "beer" means a product that:
             85          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
             86      volume or 3.2% by weight; and
             87          (ii) is obtained by fermentation, infusion, or decoction of malted grain.



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             88
         (b) "Beer" may or may not contain hops or other vegetable products.
             89          (c) "Beer" includes a product that:
             90          (i) contains alcohol in the percentages described in Subsection (8)(a); and
             91          (ii) is referred to as:
             92          (A) beer;
             93          (B) ale;
             94          (C) porter;
             95          (D) stout;
             96          (E) lager; or
             97          (F) a malt or malted beverage.
             98          (d) "Beer" does not include a flavored malt beverage.
             99          (9) "Beer-only restaurant license" means a license issued in accordance with Chapter 5,
             100      Retail License Act, and Chapter 6, Part 9, Beer-only Restaurant License.
             101          (10) "Beer retailer" means a business:
             102          (a) that is engaged, primarily or incidentally, in the retail sale of beer to a patron,
             103      whether for consumption on or off the business premises; and
             104          (b) to whom a license is issued:
             105          (i) for an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-premise
             106      Beer Retailer Local Authority; or
             107          (ii) for an on-premise beer retailer, in accordance with Chapter 5, Retail License Act,
             108      and Chapter 6, Part 7, On-premise Beer Retailer License.
             109          (11) "Beer wholesaling license" means a license:
             110          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
             111          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
             112      retail licensees or off-premise beer retailers.
             113          (12) "Billboard" means a public display used to advertise, including:
             114          (a) a light device;
             115          (b) a painting;
             116          (c) a drawing;
             117          (d) a poster;
             118          (e) a sign;



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         (f) a signboard; or
             120          (g) a scoreboard.
             121          (13) "Brewer" means a person engaged in manufacturing:
             122          (a) beer;
             123          (b) heavy beer; or
             124          (c) a flavored malt beverage.
             125          (14) "Brewery manufacturing license" means a license issued in accordance with
             126      Chapter 11, Part 5, Brewery Manufacturing License.
             127          (15) "Certificate of approval" means a certificate of approval obtained from the
             128      department under Section 32B-11-201 .
             129          (16) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
             130      a bus company to a group of persons pursuant to a common purpose:
             131          (a) under a single contract;
             132          (b) at a fixed charge in accordance with the bus company's tariff; and
             133          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
             134      motor vehicle, and a driver to travel together to one or more specified destinations.
             135          (17) "Church" means a building:
             136          (a) set apart for worship;
             137          (b) in which religious services are held;
             138          (c) with which clergy is associated; and
             139          (d) that is tax exempt under the laws of this state.
             140          (18) (a) "Club license" means a license issued in accordance with Chapter 5, Retail
             141      License Act, and Chapter 6, Part 4, Club License.
             142          (b) "Club license" includes:
             143          (i) a dining club license;
             144          (ii) an equity club license;
             145          (iii) a fraternal club license; or
             146          (iv) a social club license.
             147          (19) "Commission" means the Alcoholic Beverage Control Commission created in
             148      Section 32B-2-201 .
             149          (20) "Commissioner" means a member of the commission.



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         (21) "Community location" means:
             151          (a) a public or private school;
             152          (b) a church;
             153          (c) a public library;
             154          (d) a public playground; or
             155          (e) a public park.
             156          (22) "Community location governing authority" means:
             157          (a) the governing body of the community location; or
             158          (b) if the commission does not know who is the governing body of a community
             159      location, a person who appears to the commission to have been given on behalf of the
             160      community location the authority to prohibit an activity at the community location.
             161          (23) "Container" means a receptacle that contains an alcoholic product, including:
             162          (a) a bottle;
             163          (b) a vessel; or
             164          (c) a similar item.
             165          (24) "Convention center" means a facility that is:
             166          (a) in total at least 30,000 square feet; and
             167          (b) otherwise defined as a "convention center" by the commission by rule.
             168          (25) (a) Subject to Subsection (25)(b), "counter" means a surface or structure in a
             169      dining area of a licensed premises where seating is provided to a patron for service of food.
             170          (b) "Counter" does not include a surface or structure if on or at any point of the surface
             171      or structure an alcoholic product is:
             172          (i) stored; or
             173          (ii) dispensed.
             174          (26) "Department" means the Department of Alcoholic Beverage Control created in
             175      Section 32B-2-203 .
             176          (27) "Department compliance officer" means an individual who is:
             177          (a) an auditor or inspector; and
             178          (b) employed by the department.
             179          (28) "Department sample" means liquor that is placed in the possession of the
             180      department for testing, analysis, and sampling.



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         (29) "Dining club license" means a license issued in accordance with Chapter 5, Retail
             182      License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as a
             183      dining club license.
             184          (30) "Director," unless the context requires otherwise, means the director of the
             185      department.
             186          (31) "Disciplinary proceeding" means an adjudicative proceeding permitted under this
             187      title:
             188          (a) against a person subject to administrative action; and
             189          (b) that is brought on the basis of a violation of this title.
             190          (32) (a) Subject to Subsection (32)(b), "dispense" means:
             191          (i) drawing of an alcoholic product:
             192          (A) from an area where it is stored; or
             193          (B) as provided in Subsection 32B-6-205 (12)(b)(ii), 32B-6-305 (12)(b)(ii),
             194      32B-6-805 (15)(b)(ii), or 32B-6-905 (12)(b)(ii); and
             195          (ii) using the alcoholic product described in Subsection (32)(a)(i) on the premises of
             196      the licensed premises to mix or prepare an alcoholic product to be furnished to a patron of the
             197      retail licensee.
             198          (b) The definition of "dispense" in this Subsection (32) applies only to:
             199          (i) a full-service restaurant license;
             200          (ii) a limited-service restaurant license;
             201          (iii) a reception center license; and
             202          (iv) a beer-only restaurant license.
             203          (33) "Distillery manufacturing license" means a license issued in accordance with
             204      Chapter 11, Part 4, Distillery Manufacturing License.
             205          (34) "Distressed merchandise" means an alcoholic product in the possession of the
             206      department that is saleable, but for some reason is unappealing to the public.
             207          (35) "Educational facility" includes:
             208          (a) a nursery school;
             209          (b) an infant day care center; and
             210          (c) a trade and technical school.
             211          (36) "Equity club license" means a license issued in accordance with Chapter 5, Retail



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     License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as an
             213      equity club license.
             214          (37) "Event permit" means:
             215          (a) a single event permit; or
             216          (b) a temporary beer event permit.
             217          (38) "Exempt license" means a license exempt under Section 32B-1-201 from being
             218      considered in determining the total number of a retail license that the commission may issue at
             219      any time.
             220          (39) (a) "Flavored malt beverage" means a beverage:
             221          (i) that contains at least .5% alcohol by volume;
             222          (ii) that is treated by processing, filtration, or another method of manufacture that is not
             223      generally recognized as a traditional process in the production of a beer as described in 27
             224      C.F.R. Sec. 25.55;
             225          (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
             226      extract; and
             227          (iv) (A) for which the producer is required to file a formula for approval with the
             228      federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
             229          (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
             230          (b) "Flavored malt beverage" is considered liquor for purposes of this title.
             231          (40) "Fraternal club license" means a license issued in accordance with Chapter 5,
             232      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             233      as a fraternal club license.
             234          (41) "Full-service restaurant license" means a license issued in accordance with
             235      Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-service Restaurant License.
             236          (42) (a) "Furnish" means by any means to provide with, supply, or give an individual
             237      an alcoholic product, by sale or otherwise.
             238          (b) "Furnish" includes to:
             239          (i) serve;
             240          (ii) deliver; or
             241          (iii) otherwise make available.
             242          (43) "Guest" means an individual who meets the requirements of Subsection



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             243
     32B-6-407 (9).
             244          (44) "Health care practitioner" means:
             245          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
             246          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
             247          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
             248          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
             249      Act;
             250          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
             251      Nurse Practice Act;
             252          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
             253      Practice Act;
             254          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
             255      Therapy Practice Act;
             256          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
             257          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
             258      Professional Practice Act;
             259          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
             260          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
             261      Practice Act;
             262          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
             263      Hygienist Practice Act; and
             264          (m) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act.
             265          (45) (a) "Heavy beer" means a product that:
             266          (i) contains more than 4% alcohol by volume; and
             267          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             268          (b) "Heavy beer" is considered liquor for the purposes of this title.
             269          (46) "Hotel" is as defined by the commission by rule.
             270          (47) "Identification card" means an identification card issued under Title 53, Chapter 3,
             271      Part 8, Identification Card Act.
             272          (48) "Industry representative" means an individual who is compensated by salary,
             273      commission, or other means for representing and selling an alcoholic product of a



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     manufacturer, supplier, or importer of liquor.
             275          (49) "Industry representative sample" means liquor that is placed in the possession of
             276      the department for testing, analysis, and sampling by a local industry representative on the
             277      premises of the department to educate the local industry representative of the quality and
             278      characteristics of the product.
             279          (50) "Interdicted person" means a person to whom the sale, offer for sale, or furnishing
             280      of an alcoholic product is prohibited by:
             281          (a) law; or
             282          (b) court order.
             283          (51) "Intoxicated" means that a person:
             284          (a) is significantly impaired as to the person's mental or physical functions as a result of
             285      the use of:
             286          (i) an alcoholic product;
             287          (ii) a controlled substance;
             288          (iii) a substance having the property of releasing toxic vapors; or
             289          (iv) a combination of Subsections (51)(a)(i) through (iii); and
             290          (b) exhibits plain and easily observed outward manifestations of behavior or physical
             291      signs produced by the over consumption of an alcoholic product.
             292          (52) "Investigator" means an individual who is:
             293          (a) a department compliance officer; or
             294          (b) a nondepartment enforcement officer.
             295          (53) "Invitee" is as defined in Section 32B-8-102 .
             296          (54) "License" means:
             297          (a) a retail license;
             298          (b) a license issued in accordance with Chapter 11, Manufacturing and Related
             299      Licenses Act;
             300          (c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
             301      or
             302          (d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act.
             303          (55) "Licensee" means a person who holds a license.
             304          (56) "Limited-service restaurant license" means a license issued in accordance with



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             305
     Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-service Restaurant License.
             306          (57) "Limousine" means a motor vehicle licensed by the state or a local authority, other
             307      than a bus or taxicab:
             308          (a) in which the driver and a passenger are separated by a partition, glass, or other
             309      barrier;
             310          (b) that is provided by a business entity to one or more individuals at a fixed charge in
             311      accordance with the business entity's tariff; and
             312          (c) to give the one or more individuals the exclusive use of the limousine and a driver
             313      to travel to one or more specified destinations.
             314          (58) (a) (i) "Liquor" means a liquid that:
             315          (A) is:
             316          (I) alcohol;
             317          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
             318          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
             319          (IV) other drink or drinkable liquid; and
             320          (B) (I) contains at least .5% alcohol by volume; and
             321          (II) is suitable to use for beverage purposes.
             322          (ii) "Liquor" includes:
             323          (A) heavy beer;
             324          (B) wine; and
             325          (C) a flavored malt beverage.
             326          (b) "Liquor" does not include beer.
             327          (59) "Liquor Control Fund" means the enterprise fund created by Section 32B-2-301 .
             328          (60) "Liquor warehousing license" means a license that is issued:
             329          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
             330          (b) to a person, other than a licensed manufacturer, who engages in the importation for
             331      storage, sale, or distribution of liquor regardless of amount.
             332          (61) "Local authority" means:
             333          (a) for premises that are located in an unincorporated area of a county, the governing
             334      body of a county; or
             335          (b) for premises that are located in an incorporated city or a town, the governing body



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     of the city or town.
             337          (62) "Lounge or bar area" is as defined by rule made by the commission.
             338          (63) "Manufacture" means to distill, brew, rectify, mix, compound, process, ferment, or
             339      otherwise make an alcoholic product for personal use or for sale or distribution to others.
             340          (64) "Member" means an individual who, after paying regular dues, has full privileges
             341      in an equity club licensee or fraternal club licensee.
             342          (65) (a) "Military installation" means a base, air field, camp, post, station, yard, center,
             343      or homeport facility for a ship:
             344          (i) (A) under the control of the United States Department of Defense; or
             345          (B) of the National Guard;
             346          (ii) that is located within the state; and
             347          (iii) including a leased facility.
             348          (b) "Military installation" does not include a facility used primarily for:
             349          (i) civil works;
             350          (ii) a rivers and harbors project; or
             351          (iii) a flood control project.
             352          (66) "Minor" means an individual under the age of 21 years.
             353          (67) "Nondepartment enforcement agency" means an agency that:
             354          (a) (i) is a state agency other than the department; or
             355          (ii) is an agency of a county, city, or town; and
             356          (b) has a responsibility to enforce one or more provisions of this title.
             357          (68) "Nondepartment enforcement officer" means an individual who is:
             358          (a) a peace officer, examiner, or investigator; and
             359          (b) employed by a nondepartment enforcement agency.
             360          (69) (a) "Off-premise beer retailer" means a beer retailer who is:
             361          (i) licensed in accordance with Chapter 7, Part 2, Off-premise Beer Retailer Local
             362      Authority; and
             363          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
             364      premises.
             365          (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
             366          (70) "On-premise banquet license" means a license issued in accordance with Chapter



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             367
     5, Retail License Act, and Chapter 6, Part 6, On-premise Banquet License.
             368          (71) "On-premise beer retailer" means a beer retailer who is:
             369          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
             370      accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-premise Beer
             371      Retailer License; and
             372          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
             373      premises:
             374          (i) regardless of whether the beer retailer sells beer for consumption off the licensed
             375      premises; and
             376          (ii) on and after March 1, 2012, operating:
             377          (A) as a tavern; or
             378          (B) in a manner that meets the requirements of Subsection 32B-6-703 (2)(e)(i).
             379          (72) "Opaque" means impenetrable to sight.
             380          (73) "Package agency" means a retail liquor location operated:
             381          (a) under an agreement with the department; and
             382          (b) by a person:
             383          (i) other than the state; and
             384          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
             385      Agency, to sell packaged liquor for consumption off the premises of the package agency.
             386          (74) "Package agent" means a person who holds a package agency.
             387          (75) "Patron" means an individual to whom food, beverages, or services are sold,
             388      offered for sale, or furnished, or who consumes an alcoholic product including:
             389          (a) a customer;
             390          (b) a member;
             391          (c) a guest;
             392          (d) an attendee of a banquet or event;
             393          (e) an individual who receives room service;
             394          (f) a resident of a resort;
             395          (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102 ;
             396      or
             397          (h) an invitee.



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             398
         (76) "Permittee" means a person issued a permit under:
             399          (a) Chapter 9, Event Permit Act; or
             400          (b) Chapter 10, Special Use Permit Act.
             401          (77) "Person subject to administrative action" means:
             402          (a) a licensee;
             403          (b) a permittee;
             404          (c) a manufacturer;
             405          (d) a supplier;
             406          (e) an importer;
             407          (f) one of the following holding a certificate of approval:
             408          (i) an out-of-state brewer;
             409          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
             410          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
             411          (g) staff of:
             412          (i) a person listed in Subsections (77)(a) through (f); or
             413          (ii) a package agent.
             414          (78) "Premises" means a building, enclosure, or room used in connection with the
             415      storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic product,
             416      unless otherwise defined in this title or rules made by the commission.
             417          (79) "Prescription" means an order issued by a health care practitioner when:
             418          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
             419      to prescribe a controlled substance, other drug, or device for medicinal purposes;
             420          (b) the order is made in the course of that health care practitioner's professional
             421      practice; and
             422          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
             423          (80) (a) "Private event" means a specific social, business, or recreational event:
             424          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
             425      group; and
             426          (ii) that is limited in attendance to people who are specifically designated and their
             427      guests.
             428          (b) "Private event" does not include an event to which the general public is invited,



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             429
     whether for an admission fee or not.
             430          (81) (a) "Proof of age" means:
             431          (i) an identification card;
             432          (ii) an identification that:
             433          (A) is substantially similar to an identification card;
             434          (B) is issued in accordance with the laws of a state other than Utah in which the
             435      identification is issued;
             436          (C) includes date of birth; and
             437          (D) has a picture affixed;
             438          (iii) a valid driver license certificate that:
             439          (A) includes date of birth;
             440          (B) has a picture affixed; and
             441          (C) is issued:
             442          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
             443          (II) in accordance with the laws of the state in which it is issued;
             444          (iv) a military identification card that:
             445          (A) includes date of birth; and
             446          (B) has a picture affixed; or
             447          (v) a valid passport.
             448          (b) "Proof of age" does not include a driving privilege card issued in accordance with
             449      Section 53-3-207 .
             450          (82) (a) "Public building" means a building or permanent structure that is:
             451          (i) owned or leased by:
             452          (A) the state; or
             453          (B) a local government entity; and
             454          (ii) used for:
             455          (A) public education;
             456          (B) transacting public business; or
             457          (C) regularly conducting government activities.
             458          (b) "Public building" does not include a building owned by the state or a local
             459      government entity when the building is used by a person, in whole or in part, for a proprietary



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             460
     function.
             461          (83) "Public conveyance" means a conveyance to which the public or a portion of the
             462      public has access to and a right to use for transportation, including an airline, railroad, bus,
             463      boat, or other public conveyance.
             464          (84) "Reception center" means a business that:
             465          (a) operates facilities that are at least 5,000 square feet; and
             466          (b) has as its primary purpose the leasing of the facilities described in Subsection
             467      (84)(a) to a third party for the third party's event.
             468          (85) "Reception center license" means a license issued in accordance with Chapter 5,
             469      Retail License Act, and Chapter 6, Part 8, Reception Center License.
             470          (86) (a) "Record" means information that is:
             471          (i) inscribed on a tangible medium; or
             472          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
             473          (b) "Record" includes:
             474          (i) a book;
             475          (ii) a book of account;
             476          (iii) a paper;
             477          (iv) a contract;
             478          (v) an agreement;
             479          (vi) a document; or
             480          (vii) a recording in any medium.
             481          (87) "Residence" means a person's principal place of abode within Utah.
             482          (88) "Resident," in relation to a resort, is as defined in Section 32B-8-102 .
             483          (89) "Resort" is as defined in Section 32B-8-102 .
             484          (90) "Resort facility" is as defined by the commission by rule.
             485          (91) "Resort license" means a license issued in accordance with Chapter 5, Retail
             486      License Act, and Chapter 8, Resort License Act.
             487          (92) "Restaurant" means a business location:
             488          (a) at which a variety of foods are prepared;
             489          (b) at which complete meals are served to the general public; and
             490          (c) that is engaged primarily in serving meals to the general public.



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             491
         (93) "Retail license" means one of the following licenses issued under this title:
             492          (a) a full-service restaurant license;
             493          (b) a limited-service restaurant license;
             494          (c) a club license;
             495          (d) an airport lounge license;
             496          (e) an on-premise banquet license;
             497          (f) an on-premise beer license;
             498          (g) a reception center license; or
             499          (h) a beer-only restaurant license.
             500          (94) "Retail licensee sample" means liquor that is used for testing, analysis, and
             501      sampling by a retail licensee in accordance with Subsection 32B-4-705 (7).
             502          [(94)] (95) "Room service" means furnishing an alcoholic product to a person in a
             503      guest room of a:
             504          (a) hotel; or
             505          (b) resort facility.
             506          [(95)] (96) "Serve" means to place an alcoholic product before an individual.
             507          [(96)] (97) (a) "School" means a building used primarily for the general education of
             508      minors.
             509          (b) "School" does not include an educational facility.
             510          [(97)] (98) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby,
             511      for consideration, an alcoholic product is either directly or indirectly transferred, solicited,
             512      ordered, delivered for value, or by a means or under a pretext is promised or obtained, whether
             513      done by a person as a principal, proprietor, or as staff, unless otherwise defined in this title or
             514      the rules made by the commission.
             515          [(98)] (99) "Sexually oriented entertainer" means a person who while in a state of
             516      seminudity appears at or performs:
             517          (a) for the entertainment of one or more patrons;
             518          (b) on the premises of:
             519          (i) a social club licensee; or
             520          (ii) a tavern;
             521          (c) on behalf of or at the request of the licensee described in Subsection [(98)] (99)(b);



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             522
         (d) on a contractual or voluntary basis; and
             523          (e) whether or not the person is designated as:
             524          (i) an employee;
             525          (ii) an independent contractor;
             526          (iii) an agent of the licensee; or
             527          (iv) a different type of classification.
             528          [(99)] (100) "Single event permit" means a permit issued in accordance with Chapter 9,
             529      Part 3, Single Event Permit.
             530          [(100)] (101) "Small brewer" means a brewer who manufactures less than 60,000
             531      barrels of beer, heavy beer, and flavored malt beverages per year.
             532          [(101)] (102) "Social club license" means a license issued in accordance with Chapter
             533      5, Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the
             534      commission as a social club license.
             535          [(102)] (103) "Special use permit" means a permit issued in accordance with Chapter
             536      10, Special Use Permit Act.
             537          [(103)] (104) (a) "Spirituous liquor" means liquor that is distilled.
             538          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
             539      27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
             540          [(104)] (105) "Sports center" is as defined by the commission by rule.
             541          [(105)] (106) (a) "Staff" means an individual who engages in activity governed by this
             542      title:
             543          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
             544      holder;
             545          (ii) at the request of the business, including a package agent, licensee, permittee, or
             546      certificate holder; or
             547          (iii) under the authority of the business, including a package agent, licensee, permittee,
             548      or certificate holder.
             549          (b) "Staff" includes:
             550          (i) an officer;
             551          (ii) a director;
             552          (iii) an employee;



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             553
         (iv) personnel management;
             554          (v) an agent of the licensee, including a managing agent;
             555          (vi) an operator; or
             556          (vii) a representative.
             557          [(106)] (107) "State of nudity" means:
             558          (a) the appearance of:
             559          (i) the nipple or areola of a female human breast;
             560          (ii) a human genital;
             561          (iii) a human pubic area; or
             562          (iv) a human anus; or
             563          (b) a state of dress that fails to opaquely cover:
             564          (i) the nipple or areola of a female human breast;
             565          (ii) a human genital;
             566          (iii) a human pubic area; or
             567          (iv) a human anus.
             568          [(107)] (108) "State of seminudity" means a state of dress in which opaque clothing
             569      covers no more than:
             570          (a) the nipple and areola of the female human breast in a shape and color other than the
             571      natural shape and color of the nipple and areola; and
             572          (b) the human genitals, pubic area, and anus:
             573          (i) with no less than the following at its widest point:
             574          (A) four inches coverage width in the front of the human body; and
             575          (B) five inches coverage width in the back of the human body; and
             576          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
             577          [(108)] (109) (a) "State store" means a facility for the sale of packaged liquor:
             578          (i) located on premises owned or leased by the state; and
             579          (ii) operated by a state employee.
             580          (b) "State store" does not include:
             581          (i) a package agency;
             582          (ii) a licensee; or
             583          (iii) a permittee.



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Senate Committee Amendments 3-1-2012 kh/po
             584
         [(109)] (110) (a) "Storage area" means an area on licensed premises where the licensee
             585      stores an alcoholic product.
             586          (b) "Store" means to place or maintain in a location an alcoholic product from which a
             587      person draws to prepare an alcoholic product to be furnished to a patron, except as provided in
             588      Subsection 32B-6-205 (12)(b)(ii), 32B-6-305 (12)(b)(ii), 32B-6-805 (15)(b)(ii), or
             589      32B-6-905 (12)(b)(ii).
             590          [(110)] (111) "Sublicense" is as defined in Section 32B-8-102 .
             591          [(111)] (112) "Supplier" means a person who sells an alcoholic product to the
             592      department.
             593          [(112)] (113) "Tavern" means an on-premise beer retailer who is:
             594          (a) issued a license by the commission in accordance with Chapter 5, Retail License
             595      Act, and Chapter 6, Part 7, On-premise Beer Retailer License; and
             596          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
             597      On-premise Beer Retailer License.
             598          [(113)] (114) "Temporary beer event permit" means a permit issued in accordance with
             599      Chapter 9, Part 4, Temporary Beer Event Permit.
             600          [(114)] (115) "Temporary domicile" means the principal place of abode within Utah of
             601      a person who does not have a present intention to continue residency within Utah permanently
             602      or indefinitely.
             603          (116) "Trade show" means a private event that is:
             604          (a) hosted by one or more industry representatives for the purpose of sampling and
             605      analyzing retail licensee samples of liquor furnished by the industry representatives in
             606      accordance with Subsection 32B-4-705 (7);
             607          (b) attended by the department and retail licensees; S. [ and ] .S
             608          (c) overseen by the department S. [ . ] ;
             608a      (d) held in a convention center, hotel, or similar facility approved by the department;
             608b      (e) attended by at least 15 individuals; and
             608c      (f) hosted by an industry representative described in Subsection (116)(a) no more frequently
             608d      than four times during a calendar year. .S
             609          [(115)] (117) "Translucent" means a substance that allows light to pass through, but
             610      does not allow an object or person to be seen through the substance.
             611          [(116)] (118) "Unsaleable liquor merchandise" means a container that:
             612          (a) is unsaleable because the container is:
             613          (i) unlabeled;
             614          (ii) leaky;



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             615
         (iii) damaged;
             616          (iv) difficult to open; or
             617          (v) partly filled;
             618          (b) (i) has faded labels or defective caps or corks;
             619          (ii) has contents that are:
             620          (A) cloudy;
             621          (B) spoiled; or
             622          (C) chemically determined to be impure; or
             623          (iii) contains:
             624          (A) sediment; or
             625          (B) a foreign substance; or
             626          (c) is otherwise considered by the department as unfit for sale.
             627          [(117)] (119) (a) "Wine" means an alcoholic product obtained by the fermentation of
             628      the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or
             629      not another ingredient is added.
             630          (b) "Wine" is considered liquor for purposes of this title, except as otherwise provided
             631      in this title.
             632          [(118)] (120) "Winery manufacturing license" means a license issued in accordance
             633      with Chapter 11, Part 3, Winery Manufacturing License.
             634          Section 2. Section 32B-4-705 is amended to read:
             635           32B-4-705. Exclusions from tied house prohibitions.
             636          (1) Notwithstanding Subsection 32B-4-704 (3), a thing of value may be furnished by an
             637      industry member to a retailer under the conditions and within the limitations prescribed in:
             638          (a) this section; and
             639          (b) the applicable federal laws cited in this section.
             640          (2) The following may be furnished by an industry member:
             641          (a) a product display as provided in 27 C.F.R. Sec. 6.83;
             642          (b) point of sale advertising material or a consumer advertising specialty as provided in
             643      27 C.F.R. Sec. 6.84;
             644          (c) a thing of value to a temporary retailer to the extent allowed in 27 C.F.R. Sec. 6.85;
             645          (d) equipment and supplies as provided in 27 C.F.R. Sec. 6.88;



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             646
         (e) combination packaging as provided in 27 C.F.R. Sec. 6.93;
             647          (f) an educational seminar as provided in 27 C.F.R. Sec. 6.94;
             648          (g) a consumer promotion as provided in 27 C.F.R. Sec. 6.96;
             649          (h) an advertising service as provided in 27 C.F.R. Sec. 6.98;
             650          (i) stocking, rotation, and pricing service as provided in 27 C.F.R. Sec. 6.99;
             651          (j) merchandise as provided in 27 C.F.R. Sec. 6.101; and
             652          (k) an outside sign as provided in 27 C.F.R. Sec. 6.102.
             653          (3) The following exceptions provided in federal law are not applicable:
             654          (a) the exception for a sample as provided in 27 C.F.R. Sec. 6.91;
             655          (b) the exception for a consumer tasting or sampling at a retail establishment as
             656      provided in 27 C.F.R. Sec. 6.95; and
             657          (c) the exception for participation in a retailer association activity provided in 27
             658      C.F.R. Sec. 6.100.
             659          (4) To the extent required by 27 C.F.R. Sec. 6.81(b) an industry member shall maintain
             660      a record:
             661          (a) of an item furnished to a retailer;
             662          (b) on the premises of the industry member; and
             663          (c) for a three-year period.
             664          (5) A sample of liquor may be provided to the department under the following
             665      conditions:
             666          (a) With the department's permission, an industry member may submit a department
             667      sample to the department for product testing, analysis, and sampling.
             668          (b) No more than two department samples of a particular type, vintage, and production
             669      lot of a particular branded product may be submitted to the department for department testing,
             670      analysis, and sampling within a consecutive 120-day period.
             671          (c) (i) A department sample may not exceed 1 liter.
             672          (ii) Notwithstanding Subsection (5)(c)(i), a department sample of the following may
             673      not exceed 1.5 liters unless that exact alcoholic product is only commercially packaged in a
             674      larger size, not to exceed 5 liters:
             675          (A) wine;
             676          (B) heavy beer; or



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             677
         (C) a flavored malt beverage.
             678          (d) A department sample submitted to the department:
             679          (i) shall be shipped prepaid by the industry member by common carrier; and
             680          (ii) may not be shipped by United States mail directly to the department's central
             681      administrative warehouse office.
             682          (e) A department sample may not be shipped to any other location within the state.
             683          (f) The industry member shall submit with a department sample submitted to the
             684      department a letter from the industry member that clearly:
             685          (i) identifies the product as a "department sample"; and
             686          (ii) states the FOB case price of the product.
             687          (g) (i) The department may transfer a listed item from current stock:
             688          (A) for use as a comparison control sample; or
             689          (B) to verify product spoilage as considered appropriate.
             690          (ii) The department shall charge back a sample transferred under this Subsection (5)(g)
             691      to the respective industry member.
             692          (h) The department shall:
             693          (i) account for, label, and record a department sample received or transferred;
             694          (ii) account for the department sample's disposition; and
             695          (iii) maintain a record of the sample and its disposition for a two-year period.
             696          (i) The department shall affix to each container of a department sample a label clearly
             697      identifying the product as a "department sample."
             698          (j) The department shall dispose of a department sample delivered to the department or
             699      transferred from the department's current stock in one of the following ways as chosen by the
             700      department:
             701          (i) test and analyze the department sample, with the remaining contents destroyed
             702      under controlled and audited conditions established by the department;
             703          (ii) destroy the entire contents of the department sample under controlled and audited
             704      conditions established by the department; or
             705          (iii) add the department sample to the inventory of the department for sale to the
             706      public.
             707          (k) A person other than an authorized department official may not be in possession of a



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             708
     department sample except as otherwise provided.
             709          (l) The department shall handle a liquor item received by the department from a
             710      supplier that is not designated as a sample by the supplier, but that is an item not specifically
             711      listed on a department purchase order, in accordance with this Subsection (5).
             712          (m) The department may not use its money to pay freight or charges on a sample or a
             713      liquor item:
             714          (i) shipped to the department by a supplier; and
             715          (ii) not listed on a department purchase order.
             716          (6) A sample of beer may be provided by a beer industry member to a retailer under the
             717      conditions listed in this Subsection (6).
             718          (a) A sample of beer may be provided by an industry member only to a retailer who has
             719      not purchased the brand of beer from that industry member within the last 12 months.
             720          (b) For each retailer, the industry member may give not more than three gallons of any
             721      brand of beer, except that if a particular product is not available in a size within the quantity
             722      limitation, an industry member may furnish the next largest size.
             723          (7) (a) A retail licensee may taste and analyze a retail licensee sample under the
             724      conditions listed in this Subsection (7).
             725          (b) (i) Only an industry representative may purchase a retail licensee sample.
             726          (ii) An industry representative shall purchase a retail licensee sample from the
             727      department from a particular type, vintage, and production lot:
             728          (A) listed on the department's sales list; or
             729          (B) special ordered by the department.
             730          (iii) An industry representative may not purchase more than six retail licensee samples
             731      of a particular type, vintage, and production lot of a particular branded product within a
             732      consecutive 120-day period.
             733          (c) (i) An industry representative shall ensure that before a retail licensee sample is
             734      used for tasting and analysis, the department affixes to the retail licensee sample a label clearly
             735      identifying the product as a "retail licensee sample."
             736          (ii) The department may assess the actual cost of labeling for a retail licensee sample.
             737          (d) (i) A retail licensee sample of liquor may not exceed one liter.
             738          (ii) Notwithstanding Subsection (7)(d)(i), a retail licensee sample of the following may



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Senate Committee Amendments 3-1-2012 kh/po
             739
     not exceed S. [ 1.5 liters ] one liter .S unless that exact product is only commercially packaged in
             739a      a larger size,
             740      not to exceed 5 liters:
             741          (A) wine;
             742          (B) heavy beer; or
             743          (C) a flavored malt beverage.
             744          (e) (i) The sampling and analysis of a retail licensee sample by a retail licensee under
             745      this Subsection (7) may only occur at:
             746          (A) a state store S. , notwithstanding Subsection 32B-2-503(7)(b) .S ;
             747          (B) a package agency S. , notwithstanding Subsection 32B-2-605(15)(b) .S ; or
             748          (C) a trade show.
             748a      S.(ii) For a tasting and analysis held at a trade show, the department shall assess the one or more
             748b      industry representatives hosting the trade show the actual cost of the department attending and
             748c      overseeing the trade show and the industry representatives shall pay the cost assessed as a condition to
             748d      conducting the tasting and analysis. .S
             749          S. [ (ii) ] (iii) .S An industry representative S. described in Subsection (7)(e)(i) .S may
             749a      participate in the
             750      tasting and analysis of a retail licensee sample.
             751           S. [ (iii) ] (iv) .S Only an owner, manager, or other individual who purchases an alcoholic
             751a      product
             752      for a retail licensee may on behalf of the retail licensee taste and analyze one or more retail
             753      licensee samples.
             754          (f) (i) An alcoholic product may not be consumed during the time that an individual
             755      tastes and analyzes liquor.
             756          (ii) An individual described in Subsection (7)(e) may taste and analyze no more than
             757      the following of a retail licensee sample:
             758          (A) 1.5 ounces of a particular type, vintage, and production lot of a particular branded
             759      product of wine, heavy beer, or flavored malt beverage; or
             760          (B) .5 ounces of a particular type, vintage, and production lot of a particular branded
             761      product of spirituous liquor.
             762          (g) An industry representative may bring food to taste with a retail licensee sample
             763      being tasted and analyzed under this Subsection (7).
             764          (h) An industry representative may add another alcoholic product to the amount of a
             765      retail licensee sample being tasted and analyzed under this Subsection (7) if:


            
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Senate Committee Amendments 3-1-2012 kh/po
766
         (i) the other alcoholic product is:
             767          (A) used as a secondary flavoring ingredient;
             768          (B) used in conjunction with the primary liquor;
             769          (C) not the only liquor in the beverage; and



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             770
         (D) purchased from the department; and
             771          (ii) an individual has no more than 2.5 ounces of spirituous liquor at a time before the
             772      individual.
             773          (i) An industry representative shall:
             774          (i) account for and record each retail licensee sample received;
             775          (ii) account for each retail licensee sample's disposition; and
             776          (iii) maintain a record of the retail licensee sample and its disposition for a one-year
             777      period.
             778          (j) After a tasting and analysis under this Subsection (7) is completed, an industry
             779      representative shall remove from the location at which the tasting and analysis occurred the
             780      retail licensee samples brought by the industry representative, including the unused contents of
             781      an opened product remaining after a product is tasted and analyzed.
             782          [(7)] (8) An educational seminar may involve an industry member under the conditions
             783      listed in this Subsection [(7)] (8).
             784          (a) An industry member may provide or participate in an educational seminar:
             785          (i) involving:
             786          (A) the department;
             787          (B) a retailer;
             788          (C) a holder of a scientific or educational special use permit;
             789          (D) another industry member; or
             790          (E) an employee of a person listed in Subsections [(7)] (8)(a)(i)(A) through (D); and
             791          (ii) regarding a topic such as:
             792          (A) merchandising and product knowledge;
             793          (B) use of equipment; and
             794          (C) a tour of an alcoholic product manufacturing facility.
             795          (b) An industry member may not pay the expenses of or compensate a person who is a
             796      department employee, a retailer, or a permittee for attending a seminar or tour described in
             797      Subsection [(7)] (8)(a).
             798          [(8)] (9) (a) A liquor industry member may conduct a tasting of a liquor product of the
             799      industry member:
             800          (i) for the department, at the department's request; [and]



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             801
         (ii) for a licensed industry representative, but only at the department's central
             802      administrative warehouse office[.]; and
             803          (iii) for a retail licensee, through an industry representative in accordance with
             804      Subsection (7).
             805          (b) A liquor industry member may only use a department sample or industry
             806      representative sample when conducting a tasting of the industry member's liquor product under
             807      this Subsection (9).
             808          (c) A beer industry member may conduct a tasting of a beer product for a beer retailer
             809      either at:
             810          (i) the industry member's premises; or
             811          (ii) a retail establishment.
             812          (d) Except to the extent authorized by this section or commission rule, an alcoholic
             813      product industry member may not conduct tasting or sampling activities with:
             814          (i) a retailer; or
             815          (ii) a member of the general public.
             816          [(9)] (10) A beer industry member may participate in a beer retailer association activity
             817      to the extent authorized by 27 C.F.R. Sec. 6.100.
             818          [(10)] (11) (a) An industry member may contribute to a charitable, civic, religious,
             819      fraternal, educational, or community activity, except the contribution may not be given to
             820      influence a retailer in the selection of a product that may be sold at the activity.
             821          (b) An industry member or retailer violates this Subsection [(10)] (11) if:
             822          (i) the industry member's contribution influences, directly or indirectly, the retailer in
             823      the selection of a product; and
             824          (ii) a competitor's product is excluded in whole or in part from sale at the activity.
             825          [(11)] (12) (a) An industry member may lease or furnish equipment listed in
             826      Subsection [(11)] (12)(b) to a retailer if:
             827          (i) the equipment is leased or furnished for a special event;
             828          (ii) a reasonable rental or service fee is charged for the equipment; and
             829          (iii) the period for which the equipment is leased or furnished does not exceed 30 days.
             830          (b) This Subsection [(11)] (12) applies to the following equipment:
             831          (i) a picnic pump;



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             832
         (ii) a cold plate;
             833          (iii) a tub;
             834          (iv) a keg box;
             835          (v) a refrigerated trailer;
             836          (vi) a refrigerated van; or
             837          (vii) a refrigerated draft system.
             838          [(12)] (13) (a) A liquor industry member may assist the department in:
             839          (i) ordering, shipping, and delivering merchandise;
             840          (ii) new product notification;
             841          (iii) listing and delisting information;
             842          (iv) price quotations;
             843          (v) product sales analysis;
             844          (vi) shelf management; and
             845          (vii) an educational seminar.
             846          (b) (i) A liquor industry member may, to acquire a new listing:
             847          (A) solicit an order from the department; and
             848          (B) submit to the department a sample of the liquor industry member's products under
             849      Subsection (5) and price lists.
             850          (ii) (A) An industry member is confined to the customer areas when the industry
             851      member visits a state store or package agency unless otherwise approved.
             852          (B) An industry member is confined to the office area of a state warehouse when the
             853      industry member visits a state warehouse unless otherwise approved.
             854          [(13)] (14) A beer industry member may assist a beer retailer in:
             855          (a) ordering, shipping, and delivering beer merchandise;
             856          (b) new product notification;
             857          (c) listing and delisting information;
             858          (d) price quotations;
             859          (e) product sales analysis;
             860          (f) shelf management; and
             861          (g) an educational seminar.
             862          [(14)] (15) A beer industry member may, to acquire a new listing:



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             863
         (a) solicit an order from a beer retailer; and
             864          (b) submit to a beer retailer a sample of the beer industry member's beer products under
             865      Subsection (5) and price lists.
             866          Section 3. Section 32B-4-708 is amended to read:
             867           32B-4-708. Unlawful act involving consumers.
             868          (1) (a) It is unlawful for an industry member, directly or indirectly, or through an
             869      affiliate, to give away any of its product to a person except for testing, analysis, and sampling
             870      purposes by the [department or local industry representative licensee] following to the extent
             871      authorized by this title[.]:
             872          (i) the department;
             873          (ii) a retail licensee;
             874          (iii) a beer retailer; or
             875          (iv) a local industry representative licensee.
             876          (b) This Subsection (1) does not preclude an industry member from serving its product
             877      to others at a private event hosted by the industry member in the industry member's home or
             878      elsewhere so long as the product is not served:
             879          (i) as part of a promotion of the industry member's product; or
             880          (ii) as a subterfuge to provide a sample to a person for product testing, analysis, or
             881      sampling purposes.
             882          (2) It is unlawful for an industry member or retailer, directly or indirectly, or through
             883      an affiliate, to engage in an advertisement or promotional scheme that requires the purchase or
             884      sale of an alcoholic product, or consumption of an alcoholic product, in order to participate in a
             885      promotion, program, or other activity.
             886          (3) It is unlawful for an industry member or retailer, directly or indirectly, or through
             887      an affiliate, to pay, give, or deliver to a person money or any other thing of value, including a
             888      rebate, refund, or prize, on the basis of the purchase, display, use, sale, or consumption of an
             889      alcoholic product.
             890          (4) It is unlawful for an industry member or retailer to sponsor or underwrite an
             891      athletic, theatrical, scholastic, artistic, or scientific event that:
             892          (a) overtly promotes the consumption of a product;
             893          (b) offers a product to the general public without charge; or



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             894
         (c) takes place on the premises of a school, college, university, or other educational
             895      institution.
             896          Section 4. Section 32B-11-608 is amended to read:
             897           32B-11-608. Operational requirements for local industry representative license.
             898          (1) (a) A local industry representative licensee, staff of the local industry representative
             899      licensee, or staff of a manufacturer, supplier, or importer who is conducting business in the
             900      state, shall comply with this title and rules of the commission.
             901          (b) If a person knowingly violates Subsection (1)(a):
             902          (i) the violation may result in disciplinary action in accordance with Chapter 3,
             903      Disciplinary Actions and Enforcement Act, against:
             904          (A) a local industry representative licensee;
             905          (B) individual staff of a local industry representative licensee; or
             906          (C) both a local industry representative licensee and staff of the local industry
             907      representative licensee; and
             908          (ii) if the conditions of Subsection (1)(c) are met, the commission may order:
             909          (A) the removal of the manufacturer's, supplier's, or importer's products from the
             910      department's sales list; and
             911          (B) a suspension of the department's purchase of those products for a period
             912      determined by the commission.
             913          (c) Subsection (1)(b)(ii) applies if the manufacturer, supplier, or importer:
             914          (i) directly commits the violation; or
             915          (ii) solicits, requests, commands, encourages, or intentionally aides another to engage
             916      in the violation.
             917          (2) A local industry representative licensee shall display its license in the local industry
             918      representative licensee's principal place of business.
             919          (3) (a) A local industry representative licensee shall maintain on file with the
             920      department a current accounts list of the names and addresses of the manufacturers, suppliers,
             921      and importers the local industry representative licensee represents.
             922          (b) A local industry representative licensee shall notify the department in writing of a
             923      change to its accounts list within 14 days from the date the local industry representative
             924      licensee:



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             925
         (i) acquires the account of a manufacturer, supplier, or importer; or
             926          (ii) loses the account of a manufacturer, supplier, or importer.
             927          (4) (a) A local industry representative licensee shall make and maintain the records the
             928      department requires for at least three years.
             929          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             930      accordance with this Subsection (4).
             931          (5) Staff of a local industry representative licensee may not be:
             932          (a) a retail licensee that sells, offers for sale, or furnishes liquor;
             933          (b) staff of a retail licensee that sells, offers for sale, or furnishes liquor; or
             934          (c) a minor.
             935          (6) (a) A local representative licensee may not sell, transfer, assign, exchange, barter,
             936      give, or attempt in any way to dispose of the license to another person, whether for monetary
             937      gain or not.
             938          (b) A local industry representative license has no monetary value for any type of
             939      disposition.
             940          (7) A local industry representative licensee, staff of the local industry representative
             941      licensee, or staff of a manufacturer, supplier, or importer who is conducting business in the
             942      state:
             943          (a) only to the extent authorized by Chapter 4, Criminal Offenses and Procedure Act,
             944      may:
             945          (i) assist the department in:
             946          (A) ordering, shipping, and delivering merchandise;
             947          (B) providing new product notification;
             948          (C) obtaining listing and delisting information;
             949          (D) receiving price quotations;
             950          (E) providing product sales analysis;
             951          (F) conducting shelf management; and
             952          (G) conducting educational seminars; and
             953          (ii) to acquire new listings:
             954          (A) solicit orders from the department; and
             955          (B) submit to the department price lists and samples of the products of the



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             956
     manufacturer, supplier, or importer;
             957          (b) may not sell liquor within the state except to:
             958          (i) the department; and
             959          (ii) a military installation;
             960          (c) may not ship or transport, or cause to be shipped or transported, liquor into this
             961      state or from one place to another within this state;
             962          (d) may not sell or furnish any liquor to any person within this state other than to:
             963          (i) the department; or
             964          (ii) a military installation;
             965          (e) except as otherwise provided, may not advertise a product the local industry
             966      representative licensee represents in violation of this title or any other federal or state law;
             967          (f) shall comply with the trade practices provided in Chapter 4, Part 7, Trade Practices
             968      Act; and
             969          (g) may only provide a sample of a product of the manufacturer, supplier, or importer
             970      for tasting and sampling purposes as provided in Section 32B-4-705 [by the department].
             971          (8) A local industry representative licensee may, to become educated as to the quality
             972      and characteristics of a liquor that the licensee represents, taste and analyze an industry
             973      representative sample under the conditions listed in this Subsection (8).
             974          (a) A local industry representative licensee may not receive more than two industry
             975      representative samples of a particular type, vintage, and production lot of a particular branded
             976      product within a consecutive 120-day period.
             977          (b) (i) An industry representative sample of liquor may not exceed one liter.
             978          (ii) Notwithstanding Subsection (8)(b)(i), an industry representative sample of the
             979      following may not exceed 1.5 liters unless that exact product is only commercially packaged in
             980      a larger size, not to exceed 5 liters:
             981          (A) wine;
             982          (B) heavy beer; or
             983          (C) a flavored malt beverage.
             984          (c) An industry representative sample may only be of a product not presently listed on
             985      the department's sales list.
             986          (d) (i) An industry representative sample shall be shipped:



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             987
         (A) prepaid by the manufacturer, supplier, or importer;
             988          (B) by common carrier and not via United States mail; and
             989          (C) directly to the department's central administrative warehouse office.
             990          (ii) An industry representative sample may not be shipped to any other location within
             991      the state.
             992          (e) An industry representative sample shall be accompanied by a letter from the
             993      manufacturer, supplier, or importer:
             994          (i) clearly identifying the product as an "industry representative sample"; and
             995          (ii) clearly stating:
             996          (A) the FOB case price of the product; and
             997          (B) the name of the local industry representative for whom it is intended.
             998          (f) The department shall assess a reasonable handling, labeling, and storage fee for
             999      each industry representative sample received.
             1000          (g) The department shall affix to a container a label clearly identifying the product as
             1001      an "industry representative sample."
             1002          (h) The department shall:
             1003          (i) account for and record each industry representative sample received;
             1004          (ii) account for the industry representative sample's disposition; and
             1005          (iii) maintain a record of the industry representative sample and its disposition for a
             1006      two-year period.
             1007          (i) An industry representative sample may not leave the premises of the department's
             1008      central administrative warehouse office.
             1009          (j) A local industry representative licensee's and a local industry representative
             1010      licensee's staff may, at regularly scheduled days and times established by the department, taste
             1011      and analyze one or more industry representative samples on the premises of the department's
             1012      central administrative warehouse office.
             1013          (k) The department shall destroy the unused contents of an opened product remaining
             1014      after a product is sampled under controlled and audited conditions established by the
             1015      department.
             1016          (l) An industry representative sample that is not tasted within 30 days of receipt by the
             1017      department shall be disposed of at the discretion of the department in one of the following



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             1018
     ways:
             1019          (i) the contents destroyed under controlled and audited conditions established by the
             1020      department; or
             1021          (ii) added to the inventory of the department for sale to the public.


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