Download Zipped Introduced WordPerfect SB0066S01.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

First Substitute S.B. 66

Senator John L. Valentine proposes the following substitute bill:


             1     
ALCOHOLIC BEVERAGE CONTROL RELATED AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: John L. Valentine

             5     
House Sponsor: Ryan D. Wilcox

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Alcoholic Beverage Control Act, the Open and Public Meetings
             10      Act, and the Government Records Access and Management Act, to address the
             11      regulation of alcoholic products.
             12      Highlighted Provisions:
             13          This bill:
             14          .    changes the Alcoholic Beverage Control Commission to a seven member
             15      commission and makes related changes;
             16          .    addresses removal of commission members and chair;
             17          .    creates subcommittees of the commission;
             18          .    clarifies that the commission's policy authority is to be consistent with the policy
             19      established by the Legislature by statute;
             20          .    provides for appointment and termination of the director;
             21          .    addresses appointment of interim director;
             22          .    imposes terms on the length of time a director serves;
             23          .    provides for the hiring and firing of upper management only with the approval of
             24      the commission;
             25          .    creates the Alcoholic Beverage Control Advisory Board;


             26          .    addresses application of Utah Procurement Code;
             27          .    addresses audits;
             28          .    provides for internal audits division;
             29          .    addresses requirements for package agency agreements;
             30          .    requires a hearing by a hearing examiner of a department recommendation to not
             31      renew a license or to revoke a license;
             32          .    modifies operational requirements for a reception center;
             33          .    addresses provisions related to the transfer of retail licenses;
             34          .    authorizes the director to issue or deny issuance of certain permits with the approval
             35      of the Compliance, Licensing, and Enforcement Subcommittee, and subject to
             36      revocation or issuance by the Commission;
             37          .    addresses notification of an event to law enforcement;
             38          .    requires the director to issue monthly reports to the commission of the director's
             39      activities relative to permits;
             40          .    allows certain permittees to change the location of where to store, sell, offer for
             41      sale, furnish, or allow consumption with the approval of the director and the
             42      Compliance, Licensing, and Enforcement Subcommittee;
             43          .    addresses purposes of which the commission may hold a closed meeting;
             44          .    provides that certain records related to the department or commission are protected
             45      records; and
             46          .    makes technical and conforming amendments.
             47      Money Appropriated in this Bill:
             48          None
             49      Other Special Clauses:
             50          This bill takes effect on July 1, 2012.
             51      Utah Code Sections Affected:
             52      AMENDS:
             53          32B-2-201, as last amended by Laws of Utah 2011, Chapters 308 and 334
             54          32B-2-202, as last amended by Laws of Utah 2011, Chapter 334
             55          32B-2-205, as last amended by Laws of Utah 2011, Chapter 334
             56          32B-2-206, as last amended by Laws of Utah 2011, Chapter 336


             57          32B-2-207, as enacted by Laws of Utah 2010, Chapter 276
             58          32B-2-209, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
             59          32B-2-302, as enacted by Laws of Utah 2010, Chapter 276
             60          32B-2-605, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
             61          32B-3-204, as enacted by Laws of Utah 2010, Chapter 276
             62          32B-6-805, as enacted by Laws of Utah 2011, Chapter 334
             63          32B-8a-302 (Effective 07/01/12), as enacted by Laws of Utah 2011, Chapter 334
             64          32B-8a-303 (Effective 07/01/12), as enacted by Laws of Utah 2011, Chapter 334
             65          32B-9-201, as enacted by Laws of Utah 2010, Chapter 276
             66          32B-9-202, as enacted by Laws of Utah 2010, Chapter 276
             67          32B-9-204, as last amended by Laws of Utah 2011, Chapters 307 and 334
             68          32B-9-303, as enacted by Laws of Utah 2010, Chapter 276
             69          32B-9-403, as enacted by Laws of Utah 2010, Chapter 276
             70          32B-9-404, as enacted by Laws of Utah 2010, Chapter 276
             71          52-4-205, as last amended by Laws of Utah 2011, Chapters 46 and 334
             72          63G-2-305, as last amended by Laws of Utah 2011, Chapters 18, 46, 55, 80, 151, and
             73      161
             74          63I-5-201, as renumbered and amended by Laws of Utah 2008, Chapter 382
             75      ENACTS:
             76          32B-2-201.5, Utah Code Annotated 1953
             77          32B-2-302.5, Utah Code Annotated 1953
             78          32B-2-210, Utah Code Annotated 1953
             79     
             80      Be it enacted by the Legislature of the state of Utah:
             81          Section 1. Section 32B-2-201 is amended to read:
             82           32B-2-201. Alcoholic Beverage Control Commission created.
             83          (1) There is created the "Alcoholic Beverage Control Commission." The commission is
             84      the governing board over the department.
             85          (2) (a) The commission is composed of [five] seven part-time commissioners
             86      appointed by the governor with the consent of the Senate.
             87          (b) No more than [three] four commissioners may be of the same political party.


             88          (3) (a) Except as required by Subsection (3)(b), as terms of commissioners expire, the
             89      governor shall appoint each new commissioner or reappointed commissioner to a four-year
             90      term.
             91          (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
             92      time of appointment or reappointment, adjust the length of terms to ensure that the terms of no
             93      more than [two] three commissioners expire in a fiscal year.
             94          (4) (a) When a vacancy occurs on the commission for any reason, the governor shall
             95      appoint a replacement for the unexpired term with the consent of the Senate.
             96          (b) Unless removed in accordance with Subsection (6), a commissioner shall remain on
             97      the commission after the expiration of a term until a successor is appointed by the governor,
             98      with the consent of the Senate.
             99          (5) A commissioner shall take the oath of office.
             100          (6) (a) The governor may remove a commissioner from the commission for cause,
             101      neglect of duty, inefficiency, or malfeasance after a public hearing conducted by:
             102          (i) the governor; or
             103          (ii) an impartial hearing examiner appointed by the governor to conduct the hearing.
             104          (b) At least 10 days before the hearing described in Subsection (6)(a), the governor
             105      shall provide the commissioner notice of:
             106          (i) the date, time, and place of the hearing; and
             107          (ii) the alleged grounds for the removal.
             108          (c) The commissioner shall have an opportunity to:
             109          (i) attend the hearing;
             110          (ii) present witnesses and other evidence; and
             111          (iii) confront and cross examine witnesses.
             112          (d) After a hearing under this Subsection (6):
             113          (i) the person conducting the hearing shall prepare written findings of fact and
             114      conclusions of law; and
             115          (ii) the governor shall serve a copy of the prepared findings and conclusions upon the
             116      commissioner.
             117          (e) If a hearing under this Subsection (6) is held before a hearing examiner, the hearing
             118      examiner shall issue a written recommendation to the governor in addition to complying with


             119      Subsection (6)(d).
             120          (f) A commissioner has five days from the day on which the commissioner receives the
             121      findings and conclusions described in Subsection (6)(d) to file written objections to the
             122      recommendation before the governor issues a final order.
             123          (g) The governor shall:
             124          (i) issue the final order under this Subsection (6) in writing; and
             125          (ii) serve the final order upon the commissioner.
             126          (7) A commissioner may not receive compensation or benefits for the commissioner's
             127      service, but may receive per diem and travel expenses in accordance with:
             128          (a) Section 63A-3-106 ;
             129          (b) Section 63A-3-107 ; and
             130          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             131      63A-3-107 .
             132          (8) (a) The governor shall annually appoint the chair of the commission. A
             133      commissioner serves as chair to the commission at the pleasure of the governor. If removed as
             134      chair, the commissioner continues to serve as a commissioner unless removed as a
             135      commissioner under Subsection (6).
             136          (b) The commission shall elect:
             137          (i) another commissioner to serve as vice chair; and
             138          (ii) other commission officers as the commission considers advisable.
             139          (c) A commissioner elected under Subsection (8)(b) shall serve in the office to which
             140      the commissioner is elected at the pleasure of the commission.
             141          (9) (a) Each commissioner has equal voting rights on a commission matter when in
             142      attendance at a commission meeting.
             143          (b) [Three] Four commissioners is a quorum for conducting commission business.
             144          (c) A majority vote of the quorum present at a meeting is required for the commission
             145      to act.
             146          (10) (a) The commission shall meet at least monthly, but may hold other meetings at
             147      times and places as scheduled by:
             148          (i) the commission;
             149          (ii) the chair; or


             150          (iii) three commissioners upon filing a written request for a meeting with the chair.
             151          (b) Notice of the time and place of a commission meeting shall be given to each
             152      commissioner, and to the public in compliance with Title 52, Chapter 4, Open and Public
             153      Meetings Act. A commission meeting is open to the public, except for a commission meeting
             154      or portion of a commission meeting that is closed by the commission as authorized by Sections
             155      52-4-204 and 52-4-205 .
             156          Section 2. Section 32B-2-201.5 is enacted to read:
             157          32B-2-201.5. Commission subcommittee -- Chair's oversight responsibilities.
             158          (1) There is created within the commission two subcommittees consisting of members
             159      of the commission and known as the:
             160          (a) "Compliance, Licensing, and Enforcement Subcommittee"; and
             161          (b) "Operations and Procurement Subcommittee."
             162          (2) A subcommittee shall have four members, including the chair of the commission.
             163      The chair of the commission shall appoint the members to a subcommittee.
             164          (3) The director shall consult with the chair of the commission over:
             165          (a) the internal affairs of the department; and
             166          (b) subject to Section 32B-2-207 , hiring and firing of upper management of the
             167      department.
             168          (4) The commission by rule, made in accordance with Title 63G, Chapter 3, Utah
             169      Administrative Rulemaking Act, shall establish the duties of the subcommittees created under
             170      this section.
             171          Section 3. Section 32B-2-202 is amended to read:
             172           32B-2-202. Powers and duties of the commission.
             173          (1) The commission shall:
             174          (a) consistent with the policy established by the Legislature by statute, act as a general
             175      policymaking body on the subject of alcoholic product control;
             176          (b) adopt and issue policies, rules, and procedures;
             177          (c) set policy by written rules that establish criteria and procedures for:
             178          (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
             179      permit, or certificate of approval; and
             180          (ii) determining the location of a state store, package agency, or retail licensee;


             181          (d) decide within the limits, and under the conditions imposed by this title, the number
             182      and location of state stores, package agencies, and retail licensees in the state;
             183          (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
             184      permits, or certificates of approval for the purchase, storage, sale, offer for sale, furnishing,
             185      consumption, manufacture, and distribution of an alcoholic product:
             186          (i) a package agency;
             187          (ii) a full-service restaurant license;
             188          (iii) a limited-service restaurant license;
             189          (iv) a club license;
             190          (v) an airport lounge license;
             191          (vi) an on-premise banquet license;
             192          (vii) a resort license, under which four or more sublicenses may be included;
             193          (viii) an on-premise beer retailer license;
             194          (ix) a reception center license;
             195          (x) a beer-only restaurant license;
             196          (xi) subject to Subsection (4), a single event permit;
             197          (xii) subject to Subsection (4), a temporary beer event permit;
             198          (xiii) a special use permit;
             199          (xiv) a manufacturing license;
             200          (xv) a liquor warehousing license;
             201          (xvi) a beer wholesaling license; and
             202          (xvii) one of the following that holds a certificate of approval:
             203          (A) an out-of-state brewer;
             204          (B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and
             205          (C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages;
             206          (f) in accordance with Section 32B-5-205 , issue, deny, suspend, or revoke one of the
             207      following conditional licenses for the purchase, storage, sale, furnishing, consumption,
             208      manufacture, and distribution of an alcoholic product:
             209          (i) a conditional full-service restaurant license; or
             210          (ii) a conditional limited-service restaurant license;
             211          (g) prescribe the duties of the department in assisting the commission in issuing a


             212      package agency, license, permit, or certificate of approval under this title;
             213          (h) to the extent a fee is not specified in this title, establish a fee allowed under this title
             214      in accordance with Section 63J-1-504 ;
             215          (i) fix prices at which liquor is sold that are the same at all state stores, package
             216      agencies, and retail licensees;
             217          (j) issue and distribute price lists showing the price to be paid by a purchaser for each
             218      class, variety, or brand of liquor kept for sale by the department;
             219          (k) (i) require the director to follow sound management principles; and
             220          (ii) require periodic reporting from the director to ensure that:
             221          (A) sound management principles are being followed; and
             222          (B) policies established by the commission are being observed;
             223          (l) (i) receive, consider, and act in a timely manner upon the reports, recommendations,
             224      and matters submitted by the director to the commission; and
             225          (ii) do the things necessary to support the department in properly performing the
             226      department's duties;
             227          (m) obtain temporarily and for special purposes the services of an expert or person
             228      engaged in the practice of a profession, or a person who possesses a needed skill if:
             229          (i) considered expedient; and
             230          (ii) approved by the governor;
             231          (n) prescribe the conduct, management, and equipment of premises upon which an
             232      alcoholic product may be stored, sold, offered for sale, furnished, or consumed;
             233          (o) make rules governing the credit terms of beer sales within the state to retail
             234      licensees; and
             235          (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
             236      disciplinary action against a person subject to administrative action.
             237          (2) [The] Consistent with the policy established by the Legislature by statute, the power
             238      of the commission to do the following is plenary, except as otherwise provided by this title, and
             239      not subject to review:
             240          (a) establish a state store;
             241          (b) issue authority to act as a package agent or operate a package agency; and
             242          (c) issue or deny a license, permit, or certificate of approval.


             243          (3) If the commission is authorized or required to make a rule under this title, the
             244      commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
             245      Rulemaking Act.
             246          (4) Notwithstanding Subsections (1)(e)(xi) and (xii), the director or deputy director
             247      may issue an event permit in accordance with Chapter 9, Event Permit Act.
             248          Section 4. Section 32B-2-205 is amended to read:
             249           32B-2-205. Director of alcoholic beverage control.
             250          (1) (a) [The commission by a vote of four of the five commissioners, with the approval
             251      of the] In accordance with Subsection (1)(b), the governor, [and] with the consent of the
             252      Senate, shall appoint a director of alcoholic beverage control [who] to a four-year term. The
             253      director may be appointed to more than one four-year term. The director is the administrative
             254      head of the department.
             255          (b) (i) The governor shall appoint the director from nominations made by the
             256      commission.
             257          (ii) The commission shall submit the nomination of three individuals to the governor
             258      for appointment of the director.
             259          (iii) By no later than 30 calendar days from the day on which the governor receives the
             260      three nominations submitted by the commission, the governor may:
             261          (A) appoint the director; or
             262          (B) reject the three nominations.
             263          (iv) If the governor rejects the nominations or fails to take action within the 30-day
             264      period, the commission shall nominate three different individuals from which the governor may
             265      appoint the director or reject the nominations until such time as the governor appoints the
             266      director.
             267          (v) The governor may reappoint the director without seeking nominations from the
             268      commission. Reappointment of a director is subject to the consent of the Senate.
             269          (c) If there is a vacancy in the position of director, during the nomination process
             270      described in Subsection (1)(b), the governor may appoint an interim director for a period of up
             271      to 30 calendar days. If a director is not appointed within the 30-day period, the interim director
             272      may continue to serve beyond the 30-day period subject to the consent of the Senate at the next
             273      scheduled time for the Senate giving consent to appointments of the governor. Except that if


             274      the Senate does not act on the consent to the appointment of the interim director within 60 days
             275      of the end of the initial 30-day period, the interim director may continue as the interim director.
             276          [(b)] (d) The director [serves at the pleasure of the commission, except that the director
             277      may only be removed from office by a vote of four commissioners.] may be terminated by:
             278          (i) the commission by a vote of four commissioners; or
             279          (ii) the governor after consultation with the commission.
             280          [(c)] (e) The director may not be a commissioner.
             281          [(d)] (f) The director shall:
             282          (i) be qualified in administration;
             283          (ii) be knowledgeable by experience and training in the field of business management;
             284      and
             285          (iii) possess any other qualification prescribed by the commission.
             286          (2) The governor shall establish the director's compensation within the salary range
             287      fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
             288          (3) The director shall:
             289          (a) carry out the policies of the commission;
             290          (b) carry out the policies of the department;
             291          (c) fully inform the commission of the operations and administrative activities of the
             292      department; and
             293          (d) assist the commission in the proper discharge of the commission's duties.
             294          Section 5. Section 32B-2-206 is amended to read:
             295           32B-2-206. Powers and duties of the director.
             296          Subject to the powers and responsibilities of the commission under this title, the
             297      director:
             298          (1) (a) shall prepare and propose to the commission general policies, rules, and
             299      procedures governing the administrative activities of the department; and
             300          (b) may submit other recommendations to the commission as the director considers in
             301      the interest of the commission's or the department's business;
             302          (2) within the general policies, rules, and procedures of the commission, shall:
             303          (a) provide day-to-day direction, coordination, and delegation of responsibilities in the
             304      administrative activities of the department's business; and


             305          (b) make internal department policies and procedures relating to:
             306          (i) department personnel matters; and
             307          (ii) the day-to-day operation of the department;
             308          (3) subject to Section 32B-2-207 , shall appoint or employ personnel as considered
             309      necessary in the administration of this title, and with regard to the personnel shall:
             310          (a) prescribe the conditions of employment;
             311          (b) define the respective duties and powers; and
             312          (c) fix the remuneration in accordance with Title 67, Chapter 19, Utah State Personnel
             313      Management Act;
             314          (4) shall establish and secure adherence to a system of reports, controls, and
             315      performance in matters relating to personnel, security, department property management, and
             316      operation of:
             317          (a) a department office;
             318          (b) a warehouse;
             319          (c) a state store; and
             320          (d) a package agency;
             321          (5) within the policies, rules, and procedures approved by the commission and
             322      provisions of law, shall purchase, store, keep for sale, sell, import, and control the storage, sale,
             323      furnishing, transportation, or delivery of an alcoholic product;
             324          (6) shall prepare for commission approval:
             325          (a) recommendations regarding the location, establishment, relocation, and closure of a
             326      state store or package agency;
             327          (b) recommendations regarding the issuance, denial, nonrenewal, suspension, or
             328      revocation of a license, permit, or certificate of approval;
             329          (c) an annual budget, proposed legislation, and reports as required by law and sound
             330      business principles;
             331          (d) plans for reorganizing divisions of the department and the functions of the
             332      divisions;
             333          (e) manuals containing commission and department policies, rules, and procedures;
             334          (f) an inventory control system;
             335          (g) any other report or recommendation requested by the commission;


             336          (h) rules described in Subsection 32B-2-202 (1)(o) governing the credit terms of the
             337      sale of beer;
             338          (i) rules governing the calibration, maintenance, and regulation of a calibrated metered
             339      dispensing system;
             340          (j) rules governing the display of a list of types and brand names of liquor furnished
             341      through a calibrated metered dispensing system;
             342          (k) price lists issued and distributed showing the price to be paid for each class, variety,
             343      or brand of liquor kept for sale at a state store, package agency, or retail licensee;
             344          (l) policies or rules prescribing the books of account maintained by the department and
             345      by a state store, package agency, or retail licensee; and
             346          (m) a policy prescribing the manner of giving and serving a notice required by this title
             347      or rules made under this title;
             348          (7) shall make available through the department to any person, upon request, a copy of
             349      a policy made by the director;
             350          (8) shall make and maintain a current copy of a manual that contains the rules and
             351      policies of the commission and department available for public inspection;
             352          (9) (a) after consultation with the governor, shall determine whether an alcoholic
             353      product should not be sold, offered for sale, or otherwise furnished in an area of the state
             354      during a period of emergency that is proclaimed by the governor to exist in that area; and
             355          (b) shall issue a necessary public announcement or policy with respect to the
             356      determination described in Subsection (9)(a); [and]
             357          (10) issue event permits in accordance with Chapter 9, Event Permit Act; and
             358          [(10)] (11) shall perform any other duty required by the commission or by law.
             359          Section 6. Section 32B-2-207 is amended to read:
             360           32B-2-207. Department employees -- Requirements.
             361          (1) "Upper management" means the director, a deputy director, or other Schedule AD,
             362      AR, or AS employee of the department, as defined in Section 67-19-15 , except for the director
             363      of internal audits and auditors hired by the director of internal audits under Section
             364      32B-2-302.5 .
             365          [(1)] (2) (a) Subject to this title, including the requirements of Chapter 1, Part 3,
             366      Qualifications and Background, the director may prescribe the qualifications of a department


             367      employee.
             368          (b) The director may hire an employee who is upper management only with the
             369      approval of four commissioners voting in an open meeting.
             370          (c) Except as provided in Section 32B-1-303 , the executive director may dismiss an
             371      employee who is upper management after consultation with the chair of the commission.
             372          [(2)] (3) (a) A person who seeks employment with the department shall file with the
             373      department an application under oath or affirmation in a form prescribed by the commission.
             374          (b) Upon receiving an application, the department shall determine whether the
             375      individual is:
             376          (i) of good moral character; and
             377          (ii) qualified for the position sought.
             378          (c) The department shall select an individual for employment or advancement with the
             379      department in accordance with Title 67, Chapter 19, Utah State Personnel Management Act.
             380          [(3)] (4) The following are not considered a department employee:
             381          (a) a package agent;
             382          (b) a licensee;
             383          (c) a staff member of a package agent; or
             384          (d) staff of a licensee.
             385          [(4)] (5) The department may not employ a minor to:
             386          (a) work in:
             387          (i) a state store; or
             388          (ii) a department warehouse; or
             389          (b) engage in an activity involving the handling of an alcoholic product.
             390          Section 7. Section 32B-2-209 is amended to read:
             391           32B-2-209. Prohibited interests, relationships, and actions.
             392          (1) As used in this section:
             393          (a) "Applicable department employee" means a department employee who is:
             394          (i) designated as a deputy or assistant director;
             395          (ii) a chief administrative officer of a division within the department;
             396          (iii) a department compliance officer; or
             397          (iv) an employee directly performing purchasing, licensing, or compliance functions of


             398      the department.
             399          (b) "Immediate family" means an individual's:
             400          (i) spouse; or
             401          (ii) child who is younger than 18 years of age.
             402          (c) "Permit" does not include:
             403          (i) an industrial or manufacturing use permit;
             404          (ii) a scientific or educational use permit; or
             405          (iii) a religious wine use permit.
             406          (2) In addition to being subject to Title 67, Chapter 16, Utah Public Officers' and
             407      Employees' Ethics Act, an individual who is a commissioner, the director, or an applicable
             408      department employee may not:
             409          (a) have a pecuniary interest, whether as the holder of stock or other securities other
             410      than a mutual fund, in a person who applies for or holds a package agency, license, or permit
             411      under this title;
             412          (b) otherwise have a conflict of interest with a person who applies for or holds a
             413      package agency, license, or permit under this title;
             414          (c) have an office, position, or relationship, or be engaged in a business or avocation
             415      that interferes or is incompatible with the effective and objective fulfillment of the duties of
             416      office or employment;
             417          (d) have a direct business relationship with a person subject to administrative action
             418      under this title;
             419          (e) accept a gift, gratuity, emolument, or employment from:
             420          (i) a person who applies for or holds a package agency, license, or permit under this
             421      title; or
             422          (ii) an officer, agent, or employee of a person who applies for or holds a package
             423      agency, license, or permit under this title, except that a commissioner, the director, or an
             424      applicable department employee may accept a gift from an officer, agent, or employee if the
             425      gift is equal to or less than $50; or
             426          (f) solicit, suggest, request, or recommend, directly or indirectly, the appointment of
             427      any person to any office or employment with a person who applies for or holds a package
             428      agency, license, or permit under this title.


             429          (3) An immediate family member of a commissioner, the director, or an applicable
             430      department employee may not:
             431          (a) have a pecuniary interest, whether as the holder of stock or other securities other
             432      than a mutual fund, in a person who applies for or holds a package agency, license, or permit
             433      under this title;
             434          (b) otherwise have a conflict of interest with a person who applies for or holds a
             435      package agency, license, or permit under this title;
             436          (c) have an office, position, or relationship, or be engaged in a business or avocation
             437      that interferes or is incompatible with the effective and objective fulfillment of the duties of
             438      office or employment of the commissioner, director, or applicable department employee for
             439      whom the person is immediate family;
             440          (d) accept a gift, gratuity, emolument, or employment from:
             441          (i) a person who applies for or holds a package agency, license, or permit under this
             442      title; or
             443          (ii) an officer, agent, or employee of a person who applies for or holds a package
             444      agency, license, or permit under this title, except that an immediate family member may accept
             445      a gift from an officer, agent, or employee if the gift is equal to or less than $50; or
             446          (e) solicit, suggest, request, or recommend, directly or indirectly, the appointment of
             447      any person to any office or employment with a person who applies for or holds a package
             448      agency, license, or permit under this title.
             449          (4) An officer, agent, attorney, or employee of a person who applies for or holds a
             450      package agency, license, or permit under this title may not directly or indirectly solicit, request,
             451      or recommend to the governor, any state senator, the commission, or the department the
             452      appointment of any person:
             453          (a) as a commissioner;
             454          (b) as director of the department; or
             455          (c) to a department staff position.
             456          (5) (a) A commissioner shall disclose during a meeting of the commission a potential
             457      violation of this section, including the existence and nature of a professional, financial,
             458      business, or personal interest with a person who holds, or an applicant for, a package agency,
             459      license, or permit issued under this title that may result in a violation of this section.


             460          (b) After a commissioner makes a disclosure under Subsection (5)(a):
             461          (i) the commission may, by motion, determine whether there is a potential violation of
             462      this section;
             463          (ii) if the commission determines that there is a potential violation of this section:
             464          (A) the commission shall notify the governor; and
             465          (B) the commissioner may not vote on any matter that would result in the potential
             466      violation of this section; and
             467          (iii) if the commission determines that there is not a potential violation of this section,
             468      a commissioner may elect whether to vote on the issue that gives rise to the disclosure under
             469      Subsection (5)(a).
             470          (c) The commission shall record any declaration of a potential violation of this section
             471      in the minutes of the meeting.
             472          Section 8. Section 32B-2-210 is enacted to read:
             473          32B-2-210. Alcoholic Beverage Control Advisory Board.
             474          (1) There is created within the department an advisory board known as the "Alcoholic
             475      Beverage Control Advisory Board."
             476          (2) The advisory board shall consist of 12 members as follows:
             477          (a) the following voting members appointed by the commission, a representative of:
             478          (i) a full-service restaurant licensee;
             479          (ii) a limited-service restaurant licensee;
             480          (iii) a beer-only restaurant licensee;
             481          (iv) a social club licensee;
             482          (v) a fraternal club licensee;
             483          (vi) a dining club licensee;
             484          (vii) a wholesaler licensee;
             485          (viii) an on-premise banquet licensee;
             486          (ix) an on-premise beer retailer licensee; and
             487          (x) a reception center licensee;
             488          (b) the chair of the Utah Substance Abuse Advisory Council, or the chair's designee,
             489      who serves as a voting member; and
             490          (c) the chair of the commission or the chair's designee from the members of the


             491      commission, who shall serve as a nonvoting member.
             492          (3) (a) Except as required by Subsection (3)(b), as terms of current voting members of
             493      the advisory board expire, the commission shall appoint each new member or reappointed
             494      member to a four-year term beginning July 1 and ending June 30.
             495          (b) Notwithstanding the requirements of Subsection (3)(a), the commission shall, at the
             496      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             497      voting advisory board members are staggered so that approximately half of the advisory board
             498      is appointed every two years.
             499          (c) No two members of the board may be employed by the same company or nonprofit
             500      organization.
             501          (4) (a) When a vacancy occurs in the membership for any reason, the commission shall
             502      appoint a replacement for the unexpired term.
             503          (b) The commission shall terminate the term of a voting advisory board member who
             504      ceases to be representative as designated by the member's original appointment.
             505          (5) The advisory board shall meet no more than quarterly as called by the chair for the
             506      purpose of advising the commission and the department, with discussion limited to
             507      administrative rules made under this title.
             508          (6) The chair of the commission or the chair's designee shall serve as the chair of the
             509      advisory board and call the necessary meetings.
             510          (7) (a) Six members of the board constitute a quorum of the board.
             511          (b) An action of the majority when a quorum is present is the action of the board.
             512          (8) The department shall provide staff support to the advisory board.
             513          (9) A member may not receive compensation or benefits for the member's service, but
             514      may receive per diem and travel expenses in accordance with:
             515          (a) Section 63A-3-106 ;
             516          (b) Section 63A-3-107 ; and
             517          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             518      63A-3-107 .
             519          Section 9. Section 32B-2-302 is amended to read:
             520           32B-2-302. Exempt from Division of Finance -- Application of procurement --
             521      External audits.


             522          (1) (a) The laws that govern the Division of Finance are not applicable to the
             523      department in the purchase and sale of an alcoholic product.
             524          [(2) (a) The state auditor, or a person appointed by the state auditor, shall annually
             525      audit the department's accounts.]
             526          [(b) If an audit is conducted by a person appointed by the state auditor, the person shall
             527      make the audit report to the state auditor.]
             528          [(c) The state auditor shall submit a copy of an audit report to the Legislature by no
             529      later than the January 1 following the close of the fiscal year for which the audit report is
             530      made.]
             531          (b) The department is exempt from Title 63G, Chapter 6, Utah Procurement Code, for
             532      the purchase of an alcoholic product. The department is subject to Title 63G, Chapter 6, Utah
             533      Procurement Code, for any purchase other than for an alcoholic product.
             534          (2) The state auditor shall:
             535          (a) select a private person to perform a financial audit of the department's accounts,
             536      subject to the commission approving the private person selected to perform the financial audit;
             537          (b) notify the governor of the private person selected to perform the financial audit; and
             538          (c) determine the scope and focus of the financial audit in an open meeting of the
             539      commission before the audit commences.
             540          (3) (a) Biannually, beginning for fiscal year 2013-14, the state auditor shall conduct an
             541      audit of the department's:
             542          (i) management operations, best practices, and efficiency; and
             543          (ii) ethics and statutory compliance.
             544          (b) In addition to complying with Subsection (3)(a), the state auditor may engage in an
             545      activity related to the department or commission allowed under Utah Constitution, Article VII,
             546      Section 15 or Title 67, Chapter 3, Auditor.
             547          (4) The commission shall forward an audit report issued under Subsection (2) or (3) to
             548      the following by no later than 30 days after the day on which the audit report is made:
             549          (a) the governor;
             550          (b) the Legislative Management Committee;
             551          (c) the director; and
             552          (d) the legislative auditor general.


             553          Section 10. Section 32B-2-302.5 is enacted to read:
             554          32B-2-302.5. Internal audits.
             555          (1) In accordance with Title 63I, Chapter 5, Utah Internal Audit Act, the department
             556      shall conduct various types of auditing procedures determined by the commission through an
             557      internal audit division.
             558          (2) (a) The commission shall appoint an internal audit director who shall serve at the
             559      pleasure of the commission.
             560          (b) The internal audit director shall hire auditors in the division with the approval of
             561      the commission.
             562          (c) The internal audit director may dismiss an auditor with the approval of the
             563      commission.
             564          (3) Notwithstanding Section 63I-5-301 , the commission shall serve as the audit
             565      committee.
             566          (4) Subject to the other provisions of this section, the internal audit director shall have
             567      the powers and duties described in Section 63I-5-401 or any other duty prescribed by the chair
             568      of the commission. The internal audit director shall oversee and materially participate in
             569      internal audits conducted under this section.
             570          (5) (a) Once an internal audit is completed, the internal audit director shall provide an
             571      internal audit report to the director, the chair of the commission, and the other commissioners.
             572          (b) Within five business days of receipt of the internal audit, the director shall prepare a
             573      written response and deliver it to the chair of the commission and the other commissioners.
             574          (c) Within five business days of receipt of the director's written response under
             575      Subsection (5)(b), the chair of the commission may prepare a separate response.
             576          (d) Within 12 business days of the internal audit being given to the director, chair of
             577      the commission, and the other commissioners under Subsection (5)(a), the chair of the
             578      commission shall forward the audit and any response to:
             579          (i) the governor;
             580          (ii) the legislative auditor general; and
             581          (iii) the Legislative Management Committee.
             582          (e) Within 120 calendar days of an internal audit being completed, the commission
             583      shall prepare a report to the governor describing steps taken to implement the recommendations


             584      of the audit or a detailed explanation of why recommendations have not been implemented.
             585      The chair of the commission shall forward the report to:
             586          (i) the legislative auditor general; and
             587          (ii) the Legislative Management Committee.
             588          (f) The chair of the commission shall make such other reports as the governor requests.
             589          Section 11. Section 32B-2-605 is amended to read:
             590           32B-2-605. Operational requirements for package agency.
             591          (1) (a) A person may not operate a package agency until a package agency agreement is
             592      entered into by the package agent and the department.
             593          (b) A package agency agreement shall state the conditions of operation by which the
             594      package agent and the department are bound.
             595          (c) (i) If a package agent or staff of the package agent violates this title, rules under this
             596      title, or the package agency agreement, the department may take any action against the package
             597      agent that is allowed by the package agency agreement.
             598          (ii) An action against a package agent is governed solely by its package agency
             599      agreement and may include suspension or revocation of the package agency.
             600          (iii) A package agency agreement shall provide procedures to be followed if a package
             601      agent fails to pay money owed to the department including a procedure for replacing the
             602      package agent or operator of the package agency.
             603          (iv) A package agency agreement shall provide that the package agency is subject to
             604      covert investigations for selling an alcoholic product to a minor.
             605          [(iii)] (v) Notwithstanding that this part refers to "package agency" or "package agent,"
             606      staff of the package agency or package agent is subject to the same requirement or prohibition.
             607          (2) (a) A package agency shall be operated by an individual who is either:
             608          (i) the package agent; or
             609          (ii) an individual designated by the package agent.
             610          (b) An individual who is a designee under this Subsection (2) shall be:
             611          (i) an employee of the package agent; and
             612          (ii) responsible for the operation of the package agency.
             613          (c) The conduct of the designee is attributable to the package agent.
             614          (d) A package agent shall submit the name of the person operating the package agency


             615      to the department for the department's approval.
             616          (e) A package agent shall state the name and title of a designee on the application for a
             617      package agency.
             618          (f) A package agent shall:
             619          (i) inform the department of a proposed change in the individual designated to operate
             620      a package agency; and
             621          (ii) receive prior approval from the department before implementing the change
             622      described in this Subsection (2)(f).
             623          (g) Failure to comply with the requirements of this Subsection (2) may result in the
             624      immediate termination of a package agency agreement.
             625          (3) (a) A package agent shall display in a prominent place in the package agency the
             626      record issued by the commission that designates the package agency.
             627          (b) A package agent that displays or stores liquor at a location visible to the public
             628      shall display in a prominent place in the package agency a sign in large letters that consists of
             629      text in the following order:
             630          (i) a header that reads: "WARNING";
             631          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             632      can cause birth defects and permanent brain damage for the child.";
             633          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             634      [insert most current toll-free number] with questions or for more information.";
             635          (iv) a header that reads: "WARNING"; and
             636          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             637      serious crime that is prosecuted aggressively in Utah."
             638          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
             639      font style than the text described in Subsections (3)(b)(iv) and (v).
             640          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
             641      same font size.
             642          (d) The Department of Health shall work with the commission and department to
             643      facilitate consistency in the format of a sign required under this section.
             644          (4) A package agency may not display liquor or a price list in a window or showcase
             645      that is visible to passersby.


             646          (5) (a) A package agency may not purchase liquor from a person except from the
             647      department.
             648          (b) At the discretion of the department, liquor may be provided by the department to a
             649      package agency for sale on consignment.
             650          (6) A package agency may not store, sell, offer for sale, or furnish liquor in a place
             651      other than as designated in the package agent's application, unless the package agent first
             652      applies for and receives approval from the department for a change of location within the
             653      package agency premises.
             654          (7) A package agency may not sell, offer for sale, or furnish liquor except at a price
             655      fixed by the commission.
             656          (8) A package agency may not sell, offer for sale, or furnish liquor to:
             657          (a) a minor;
             658          (b) a person actually, apparently, or obviously intoxicated;
             659          (c) a known interdicted person; or
             660          (d) a known habitual drunkard.
             661          (9) (a) A package agency may not employ a minor to handle liquor.
             662          (b) (i) Staff of a package agency may not:
             663          (A) consume an alcoholic product on the premises of a package agency; or
             664          (B) allow any person to consume an alcoholic product on the premises of a package
             665      agency.
             666          (ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
             667          (10) (a) A package agency may not close or cease operation for a period longer than 72
             668      hours, unless:
             669          (i) the package agency notifies the department in writing at least seven days before the
             670      closing; and
             671          (ii) the closure or cessation of operation is first approved by the department.
             672          (b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package
             673      agency shall immediately notify the department by telephone.
             674          (c) (i) The department may authorize a closure or cessation of operation for a period
             675      not to exceed 60 days.
             676          (ii) The department may extend the initial period an additional 30 days upon written


             677      request of the package agency and upon a showing of good cause.
             678          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             679      commission approval.
             680          (d) The notice required by Subsection (10)(a) shall include:
             681          (i) the dates of closure or cessation of operation;
             682          (ii) the reason for the closure or cessation of operation; and
             683          (iii) the date on which the package agency will reopen or resume operation.
             684          (e) Failure of a package agency to provide notice and to obtain department
             685      authorization before closure or cessation of operation results in an automatic termination of the
             686      package agency agreement effective immediately.
             687          (f) Failure of a package agency to reopen or resume operation by the approved date
             688      results in an automatic termination of the package agency agreement effective on that date.
             689          (11) A package agency may not transfer its operations from one location to another
             690      location without prior written approval of the commission.
             691          (12) (a) A person, having been issued a package agency, may not sell, transfer, assign,
             692      exchange, barter, give, or attempt in any way to dispose of the package agency to another
             693      person, whether for monetary gain or not.
             694          (b) A package agency has no monetary value for any type of disposition.
             695          (13) (a) Subject to the other provisions of this Subsection (13):
             696          (i) sale or delivery of liquor may not be made on or from the premises of a package
             697      agency, and a package agency may not be kept open for the sale of liquor:
             698          (A) on Sunday; or
             699          (B) on a state or federal legal holiday.
             700          (ii) Sale or delivery of liquor may be made on or from the premises of a package
             701      agency, and a package agency may be open for the sale of liquor, only on a day and during
             702      hours that the commission directs by rule or order.
             703          (b) A package agency located at a manufacturing facility is not subject to Subsection
             704      (13)(a) if:
             705          (i) the package agency is located at a manufacturing facility licensed in accordance
             706      with Chapter 11, Manufacturing and Related Licenses Act;
             707          (ii) the manufacturing facility licensed in accordance with Chapter 11, Manufacturing


             708      and Related Licenses Act, holds:
             709          (A) a full-service restaurant license;
             710          (B) a limited-service restaurant license;
             711          (C) a beer-only restaurant license; or
             712          (D) dining club license;
             713          (iii) the restaurant or dining club is located at the manufacturing facility;
             714          (iv) the restaurant or dining club sells an alcoholic product produced at the
             715      manufacturing facility;
             716          (v) the manufacturing facility:
             717          (A) owns the restaurant or dining club; or
             718          (B) operates the restaurant or dining club;
             719          (vi) the package agency only sells an alcoholic product produced at the manufacturing
             720      facility; and
             721          (vii) the package agency's days and hours of sale are the same as the days and hours of
             722      sale at the restaurant or dining club.
             723          (c) (i) Subsection (13)(a) does not apply to a package agency held by a resort licensee if
             724      the package agent that holds the package agency to sell liquor at the resort does not sell liquor
             725      in a manner similar to a state store.
             726          (ii) The commission may by rule define what constitutes a package agency that sells
             727      liquor "in a manner similar to a state store."
             728          (14) (a) Except to the extent authorized by commission rule, a minor may not be
             729      admitted into, or be on the premises of a package agency unless accompanied by a person who
             730      is:
             731          (i) 21 years of age or older; and
             732          (ii) the minor's parent, legal guardian, or spouse.
             733          (b) A package agent or staff of a package agency that has reason to believe that a
             734      person who is on the premises of a package agency is under the age of 21 and is not
             735      accompanied by a person described in Subsection (14)(a) may:
             736          (i) ask the suspected minor for proof of age;
             737          (ii) ask the person who accompanies the suspected minor for proof of age; and
             738          (iii) ask the suspected minor or the person who accompanies the suspected minor for


             739      proof of parental, guardianship, or spousal relationship.
             740          (c) A package agent or staff of a package agency shall refuse to sell liquor to the
             741      suspected minor and to the person who accompanies the suspected minor into the package
             742      agency if the minor or person fails to provide any information specified in Subsection (14)(b).
             743          (d) A package agent or staff of a package agency shall require the suspected minor and
             744      the person who accompanies the suspected minor into the package agency to immediately leave
             745      the premises of the package agency if the minor or person fails to provide information specified
             746      in Subsection (14)(b).
             747          (15) (a) A package agency shall sell, offer for sale, or furnish liquor in a sealed
             748      container.
             749          (b) A person may not open a sealed container on the premises of a package agency.
             750          (c) Notwithstanding Subsection (15)(a), a package agency may sell, offer for sale, or
             751      furnish liquor in other than a sealed container:
             752          (i) if the package agency is the type of package agency that authorizes the package
             753      agency to sell, offer for sale, or furnish the liquor as part of room service;
             754          (ii) if the liquor is sold, offered for sale, or furnished as part of room service; and
             755          (iii) subject to:
             756          (A) staff of the package agency providing the liquor in person only to an adult guest in
             757      the guest room;
             758          (B) staff of the package agency not leaving the liquor outside a guest room for retrieval
             759      by a guest; and
             760          (C) the same limits on the portions in which an alcoholic product may be sold by a
             761      retail licensee under Section 32B-5-304 .
             762          (16) On or after October 1, 2011, a package agency may not sell, offer for sale, or
             763      furnish heavy beer in a sealed container that exceeds two liters.
             764          (17) The department may pay or otherwise remunerate a package agent on any basis,
             765      including sales or volume of business done by the package agency.
             766          (18) The commission may prescribe by policy or rule general operational requirements
             767      of a package agency that are consistent with this title and relate to:
             768          (a) physical facilities;
             769          (b) conditions of operation;


             770          (c) hours of operation;
             771          (d) inventory levels;
             772          (e) payment schedules;
             773          (f) methods of payment;
             774          (g) premises security; and
             775          (h) any other matter considered appropriate by the commission.
             776          Section 12. Section 32B-3-204 is amended to read:
             777           32B-3-204. Disciplinary proceeding procedure.
             778          (1) (a) Subject to Section 32B-3-202 , the following may conduct an adjudicative
             779      proceeding to inquire into a matter necessary and proper for the administration of this title and
             780      rules adopted under this title:
             781          (i) the commission;
             782          (ii) a hearing examiner appointed by the commission to conduct a suspension,
             783      non-renewal, or revocation hearing required by law;
             784          (iii) the director; and
             785          (iv) the department.
             786          (b) Except as provided in this section or Section 32B-2-605 , a person described in
             787      Subsection (1)(a) shall comply with Title 63G, Chapter 4, Administrative Procedures Act, in an
             788      adjudicative proceeding.
             789          (c) Except when otherwise provided by law, an adjudicative proceeding before the
             790      commission or a hearing examiner appointed by the commission shall be:
             791          (i) video or audio recorded; and
             792          (ii) subject to Subsection (3)(b), conducted in accordance with Title 52, Chapter 4,
             793      Open and Public Meetings Act.
             794          (d) A person listed in Subsection (1)(a) shall conduct an adjudicative proceeding
             795      concerning departmental personnel in accordance with Title 67, Chapter 19, Utah State
             796      Personnel Management Act.
             797          (e) A hearing that is informational, fact gathering, and nonadversarial in nature shall be
             798      conducted in accordance with rules, policies, and procedures made by the commission,
             799      director, or department.
             800          (2) (a) Subject to Section 32B-3-202 , a disciplinary proceeding shall be conducted


             801      under the authority of the commission, which is responsible for rendering a final decision and
             802      order on a disciplinary matter.
             803          (b) (i) The commission may appoint a necessary officer, including a hearing examiner,
             804      from within or without the department, to administer the disciplinary proceeding process.
             805          (ii) A hearing examiner appointed by the commission:
             806          (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
             807          (B) shall submit to the commission a report including:
             808          (I) findings of fact determined on the basis of a preponderance of the evidence
             809      presented at the hearing;
             810          (II) conclusions of law; and
             811          (III) recommendations.
             812          (iii) A report of a hearing examiner under this Subsection (2)(b) may not recommend a
             813      penalty more severe than that initially sought by the department in the notice of agency action.
             814          (iv) A copy of a hearing examiner report under this Subsection (2)(b) shall be served
             815      upon the respective parties.
             816          (v) Before final commission action, the commission shall give a respondent and the
             817      department reasonable opportunity to file a written objection to a hearing examiner report.
             818          (3) (a) The commission or an appointed hearing examiner shall preside over a
             819      disciplinary proceeding hearing.
             820          (b) A disciplinary proceeding hearing may be closed only after the commission or
             821      hearing examiner makes a written finding that the public interest in an open hearing is clearly
             822      outweighed by factors enumerated in the closure order.
             823          (c) (i) The commission or its hearing examiner as part of a disciplinary proceeding
             824      hearing may:
             825          (A) administer an oath or affirmation;
             826          (B) take evidence;
             827          (C) take a deposition within or without this state; and
             828          (D) require by subpoena from a place within this state:
             829          (I) the testimony of a person at a hearing; and
             830          (II) the production of a record or other evidence considered relevant to the inquiry.
             831          (ii) A person subpoenaed in accordance with this Subsection (3)(c) shall testify and


             832      produce a record or tangible thing as required in the subpoena.
             833          (iii) A witness subpoenaed, called to testify, or called to produce evidence who claims
             834      a privilege against self-incrimination may not be compelled to testify, but the commission or
             835      the hearing examiner shall file a written report with the county attorney or district attorney in
             836      the jurisdiction where the privilege is claimed or where the witness resides setting forth the
             837      circumstance of the claimed privilege.
             838          (iv) (A) A person is not excused from obeying a subpoena without just cause.
             839          (B) A district court within the judicial district in which a person alleged to be guilty of
             840      willful contempt of court or refusal to obey a subpoena is found or resides, upon application by
             841      the party issuing the subpoena, may issue an order requiring the person to:
             842          (I) appear before the issuing party; and
             843          (II) (Aa) produce documentary evidence if so ordered; or
             844          (Bb) give evidence regarding the matter in question.
             845          (C) Failure to obey an order of the court may be punished by the court as contempt.
             846          (d) In a case heard by the commission, the commission shall issue its final decision and
             847      order in accordance with Subsection (2).
             848          (4) (a) The commission shall:
             849          (i) render a final decision and order on a disciplinary action; and
             850          (ii) cause its final order to be prepared in writing, issued, and served on all parties.
             851          (b) An order of the commission is final on the date the order is issued.
             852          (c) The commission, after the commission renders its final decision and order, may
             853      require the director to prepare, issue, and cause to be served on the parties the final written
             854      order on behalf of the commission.
             855          (5) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by
             856      the commission or a hearing examiner appointed by the commission shall proceed formally in
             857      accordance with Sections 63G-4-204 through 63G-4-209 if:
             858          (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
             859      and welfare;
             860          (ii) the alleged violation involves:
             861          (A) selling or furnishing an alcoholic product to a minor;
             862          (B) attire, conduct, or entertainment prohibited by Chapter 1, Part 5, Attire, Conduct,


             863      and Entertainment Act;
             864          (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
             865      of the respondent;
             866          (D) interfering or refusing to cooperate with:
             867          (I) an authorized official of the department or the state in the discharge of the official's
             868      duties in relation to the enforcement of this title; or
             869          (II) a peace officer in the discharge of the peace officer's duties in relation to the
             870      enforcement of this title;
             871          (E) an unlawful trade practice under Chapter 4, Part 7, Trade Practices Act;
             872          (F) unlawful importation of an alcoholic product; or
             873          (G) unlawful supply of liquor by a liquor industry member, as defined in Section
             874      32B-4-702 , to a person other than the department or a military installation, except to the extent
             875      permitted by this title; or
             876          (iii) the department determines to seek in a disciplinary proceeding hearing:
             877          (A) an administrative fine exceeding $3,000;
             878          (B) a suspension of a license, permit, or certificate of approval of more than 10 days; or
             879          (C) a revocation of a license, permit, or certificate of approval.
             880          (b) If a respondent does not request a disciplinary proceeding hearing, a hearing shall
             881      proceed informally unless it is designated as a formal proceeding pursuant to rules adopted by
             882      the commission in accordance with Subsection (5)(c).
             883          (c) The commission shall make rules to provide a procedure to implement this
             884      Subsection (5).
             885          (6) (a) If the department recommends nonrenewal of a license, the department shall
             886      notify the licensee of the recommendation at least 15 days before the commission takes action
             887      on the nonrenewal.
             888          (b) Notwithstanding Subsection (2), the commission shall appoint a hearing examiner
             889      to conduct an adjudicative hearing in accordance with this section if the licensee files a request
             890      for a hearing within 10 days of receipt of the notice under Subsection (6)(a).
             891          Section 13. Section 32B-6-805 is amended to read:
             892           32B-6-805. Specific operational requirements for a reception center license.
             893          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational


             894      Requirements, a reception center licensee and staff of the reception center licensee shall
             895      comply with this section.
             896          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             897      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             898          (i) a reception center licensee;
             899          (ii) individual staff of a reception center licensee; or
             900          (iii) both a reception center licensee and staff of the reception center licensee.
             901          (2) In addition to complying with Section 32B-5-303 , a reception center licensee shall
             902      store an alcoholic product in a storage area described in Subsection (15)(a).
             903          (3) (a) For the purpose described in Subsection (3)(b), a reception center licensee shall
             904      provide the following with advance notice of a scheduled event in accordance with rules made
             905      by the commission:
             906          (i) the department; and
             907          (ii) the local law enforcement agency responsible for the enforcement of this title in the
             908      jurisdiction where the reception center is located.
             909          (b) Any of the following may conduct a random inspection of an event:
             910          (i) an authorized representative of the commission or the department; or
             911          (ii) a law enforcement officer.
             912          (4) (a) Except as otherwise provided in this title, a reception center licensee may sell,
             913      offer for sale, or furnish an alcoholic product at an event only for consumption at the reception
             914      center's licensed premises.
             915          (b) A host of an event, a patron, or a person other than the reception center licensee or
             916      staff of the reception center licensee, may not remove an alcoholic product from the reception
             917      center's licensed premises.
             918          (c) Notwithstanding Section 32B-5-307 , a patron at an event may not bring an
             919      alcoholic product into or onto, or remove an alcoholic product from, the reception center.
             920          (5) (a) A reception center licensee may not leave an unsold alcoholic product at an
             921      event following the conclusion of the event.
             922          (b) At the conclusion of an event, a reception center licensee shall:
             923          (i) destroy an opened and unused alcoholic product that is not saleable, under
             924      conditions established by the department; and


             925          (ii) return to the reception center licensee's approved locked storage area any:
             926          (A) opened and unused alcoholic product that is saleable; and
             927          (B) unopened container of an alcoholic product.
             928          (c) Except as provided in Subsection (5)(b) with regard to an open or sealed container
             929      of an alcoholic product not sold or consumed at an event, a reception center licensee:
             930          (i) shall store the alcoholic product in accordance with Subsection (2); and
             931          (ii) may use the alcoholic product at more than one event.
             932          (6) Notwithstanding Section 32B-5-308 , a reception center licensee may not employ a
             933      minor in connection with an event at the reception center at which food is not made available.
             934          (7) A person's willingness to serve an alcoholic product may not be made a condition
             935      of employment as a server with a reception center licensee.
             936          (8) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
             937      product at the licensed premises on any day during the period that:
             938          (a) begins at 1 a.m.; and
             939          (b) ends at 9:59 a.m.
             940          (9) (a) A reception center licensee may not maintain in excess of 30% of its total
             941      annual receipts from the sale of an alcoholic product, which includes:
             942          [(a)] (i) mix for an alcoholic product; or
             943          [(b)] (ii) a charge in connection with the furnishing of an alcoholic product.
             944          (b) A reception center licensee shall report the information necessary to show
             945      compliance with this Subsection (9) to the department on a quarterly basis.
             946          (10) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
             947      product at an event at which a minor is present unless the reception center licensee makes food
             948      available at all times when an alcoholic product is sold, offered for sale, furnished, or
             949      consumed during the event.
             950          (11) (a) Subject to the other provisions of this Subsection (11), a patron may not have
             951      more than two alcoholic products of any kind at a time before the patron.
             952          (b) An individual portion of wine is considered to be one alcoholic product under
             953      Subsection (11)(a).
             954          (12) (a) A reception center licensee shall supervise and direct a person involved in the
             955      sale, offer for sale, or furnishing of an alcoholic product.


             956          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
             957      shall complete an alcohol training and education seminar.
             958          (13) A staff person of a reception center licensee shall remain at an event at all times
             959      when an alcoholic product is sold, offered for sale, furnished, or consumed at the event.
             960          (14) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
             961      product to a patron, and a patron may not consume an alcoholic product at a bar structure.
             962          (15) Except as provided in Subsection (16), a reception center licensee may dispense
             963      an alcoholic product only if:
             964          (a) the alcoholic product is dispensed from an area that is:
             965          (i) separated from an area for the consumption of food by a patron by a solid,
             966      translucent, permanent structural barrier such that the facilities for the storage or dispensing of
             967      an alcoholic product are:
             968          (A) not readily visible to a patron; and
             969          (B) not accessible by a patron; and
             970          (ii) apart from an area used:
             971          (A) for staging; or
             972          (B) as a lobby or waiting area;
             973          (b) the reception center licensee uses an alcoholic product that is:
             974          (i) stored in an area described in Subsection (15)(a); or
             975          (ii) in an area not described in Subsection (15)(a) on the licensed premises and:
             976          (A) immediately before the alcoholic product is dispensed it is in an unopened
             977      container;
             978          (B) the unopened container is taken to an area described in Subsection (15)(a) before it
             979      is opened; and
             980          (C) once opened, the container is stored in an area described in Subsection (15)(a); and
             981          (c) any instrument or equipment used to dispense an alcoholic product is located in an
             982      area described in Subsection (15)(a).
             983          (16) A reception center licensee may dispense an alcoholic product from a mobile
             984      serving area that:
             985          (a) is moved only by staff of the reception center licensee;
             986          (b) is capable of being moved by only one individual; and


             987          (c) is no larger than 6 feet long and 30 inches wide.
             988          (17) (a) A reception center licensee may not have an event on the licensed premises
             989      except pursuant to a contract between a third party host of the event and the reception center
             990      licensee under which the reception center licensee provides an alcoholic product sold, offered
             991      for sale, or furnished at an event.
             992          (b) At an event, a reception center licensee may furnish an alcoholic product:
             993          (i) without charge to a patron, except that the third party host of the event shall pay for
             994      an alcoholic product furnished at the event; or
             995          (ii) with a charge to a patron at the event.
             996          (c) The commission may by rule define what constitutes a "third-party host" for
             997      purposes of this Subsection (17) so that a reception center licensee and the third-party host are
             998      not affiliated with, owned by, or operated by the same persons.
             999          (18) A reception center licensee shall have culinary facilities that are:
             1000          (a) adequate to prepare a full meal; and
             1001          (b) (i) located on the licensed premises; or
             1002          (ii) under the same control as the reception center licensee.
             1003          (19) A reception center licensee may not operate an event:
             1004          (a) that is open to the general public; and
             1005          (b) at which an alcoholic product is sold or offered for sale.
             1006          Section 14. Section 32B-8a-302 (Effective 07/01/12) is amended to read:
             1007           32B-8a-302 (Effective 07/01/12). Application -- Approval process.
             1008          (1) To obtain the transfer of a retail license from a retail licensee, the transferee shall
             1009      file a transfer application with the department that includes:
             1010          (a) an application in the form provided by the department;
             1011          (b) a statement as to whether the consideration, if any, to be paid to the transferor
             1012      includes payment for any or all of the following:
             1013          (i) inventory;
             1014          (ii) fixtures; and
             1015          (iii) transfer of the retail license;
             1016          (c) a copy of the notice of intended transfer; and
             1017          (d) (i) an application fee of $300; and


             1018          (ii) a transfer fee determined in accordance with Section 32B-8a-303 .
             1019          (2) (a) (i) Before the commission may approve the transfer of a retail license, the
             1020      department shall conduct an investigation and may hold public hearings to gather information
             1021      and make recommendations to the commission as to whether the transfer of the retail license
             1022      should be approved.
             1023          (ii) The department shall forward the information and recommendations described in
             1024      this Subsection (2)(a) to the commission to aid in the commission's determination.
             1025          (b) Before approving a transfer, the commission shall:
             1026          (i) determine that the transferee filed a complete application;
             1027          (ii) determine that the transferee is eligible to hold the type of retail license that is to be
             1028      transferred at the premises to which the retail license would be transferred;
             1029          (iii) determine that the transferee is not delinquent in the payment of an amount
             1030      described in Subsection 32B-8a-201 (3);
             1031          (iv) determine that the transferee is not disqualified under Section 32B-1-304 ;
             1032          (v) consider the locality within which the proposed licensed premises is located,
             1033      including the factors listed in Section [ 32B-5-206 ] 32B-5-203 for the issuance of a retail
             1034      license;
             1035          (vi) consider the transferee's ability to manage and operate the retail license to be
             1036      transferred, including the factors listed in Section [ 32B-5-202 ] 32B-5-203 for the issuance of a
             1037      retail license;
             1038          (vii) consider the nature or type of retail licensee operation of the transferee, including
             1039      the factors listed in Section [ 32B-5-202 ] 32B-5-203 for the issuance of a retail license;
             1040          (viii) if the transfer involves consideration, determine that the transferee and transferor
             1041      have complied with Part 4, Protection of Creditors; and
             1042          (ix) consider any other factor the commission considers necessary.
             1043          (3) (a) Except as provided in Subsection (3)(b), the commission may not approve the
             1044      transfer of a retail license to premises that do not meet the proximity requirements of Section
             1045      32B-1-202 .
             1046          (b) If after a transfer of a retail license the transferee operates the same type of retail
             1047      license at the same location as did the transferor, the commission may waive or vary the
             1048      proximity requirements of Subsection 32B-1-202 (2) in considering whether to approve the


             1049      transfer under the same circumstances that the commission may waive or vary the proximity
             1050      requirements in accordance with Subsection 32B-1-202 (4) when considering whether to issue a
             1051      retail license.
             1052          Section 15. Section 32B-8a-303 (Effective 07/01/12) is amended to read:
             1053           32B-8a-303 (Effective 07/01/12). Transfer fees.
             1054          (1) Except as otherwise provided in this section, the department shall charge the
             1055      following transfer fees:
             1056          (a) for a transfer of a retail license from a retail licensee to another person, the transfer
             1057      fee equals the initial license fee amount specified in the relevant part under Chapter 6, Specific
             1058      Retail License Act, for the type of retail license that is being transferred;
             1059          (b) for the transfer of a retail license from one premises to another premises of the
             1060      same retail licensee, the transfer fee equals the renewal fee amount specified in the relevant
             1061      part under Chapter 6, Specific Retail License Act, for the type of retail license that is being
             1062      transferred;
             1063          (c) subject to Subsections (1)(d) and (2), for a transfer described in Section
             1064      32B-8a-202 , the transfer fee equals the renewal fee amount specified in the relevant part under
             1065      Chapter 6, Specific Retail License Act, for the type of retail license that is being transferred;
             1066          (d) for a transfer of a retail license to include the parent or adult child of a retail
             1067      licensee, when no consideration is given for the transfer, the transfer fee is one-half of the
             1068      amount described in Subsection (1)(a); and
             1069          (e) for one of the following transfers, the transfer fee is one-half of the amount
             1070      described in Subsection (1)(a):
             1071          (i) a retail license of one spouse to the other spouse when the transfer application is
             1072      made before the entry of a final decree of divorce;
             1073          (ii) a retail license of a deceased retail licensee to:
             1074          (A) the one or more surviving partners of the deceased retail licensee;
             1075          (B) the executor, administrator, or conservator of the estate of the deceased retail
             1076      licensee; or
             1077          (C) the surviving spouse of the deceased retail licensee, if the deceased retail licensee
             1078      leaves no estate to be administered;
             1079          (iii) a retail license of [a minor ward,] an incompetent person[,] or conservatee by or to


             1080      the conservator or guardian for the [minor ward,] incompetent person[,] or conservatee who is
             1081      the retail licensee;
             1082          (iv) a retail license of a debtor in a bankruptcy case by or to the trustee of a bankrupt
             1083      estate of the retail licensee;
             1084          (v) a retail license of a person for whose estate a receiver is appointed may be
             1085      transferred by or to a receiver of the estate of the retail licensee;
             1086          (vi) a retail license of an assignor for the benefit of creditors by or to an assignee for
             1087      the benefit of creditors of a licensee with the consent of the assignor;
             1088          (vii) a retail license transferred to a revocable living trust if the retail licensee is the
             1089      trustee of the revocable living trust;
             1090          (viii) a retail license transferred between partners when no new partner is being
             1091      licensed;
             1092          (ix) a retail license transferred between corporations whose outstanding shares of stock
             1093      are owned by the same individuals;
             1094          (x) upon compliance with Section 32B-8a-202 , a retail license to a corporation whose
             1095      entire stock is owned by:
             1096          (A) the transferor; or
             1097          (B) the spouse of the transferor;
             1098          (xi) upon compliance with Section 32B-8a-202 , a retail license to a limited liability
             1099      company whose entire membership consists of:
             1100          (A) the transferor; or
             1101          (B) the spouse of the transferor; or
             1102          (xii) a retail license transferred from a corporation to a person who owns, or whose
             1103      spouse owns, the entire stock of the corporation.
             1104          (2) If there are multiple and simultaneous transfers of retail licenses under Section
             1105      32B-8a-202 , a transfer fee described in Subsection (1)(c) is required for only one of the retail
             1106      licenses being transferred.
             1107          (3) (a) Except as provided in Subsection (3)(b), a transfer fee required under
             1108      Subsection (1) is due for a transfer subsequent to a transfer under Subsection (1)(e)[(xiii)](xii)
             1109      if the subsequent transfer is of 51% of the stock in a corporation to which a retail license is
             1110      transferred by a retail licensee or the spouse of a retail licensee.


             1111          (b) If the transfer of stock described in Subsection (3)(a) is from a parent to the parent's
             1112      adult child or adult grandchild, the transfer fee is one-half of the amount described in
             1113      Subsection (1)(a).
             1114          (4) Money collected from a transfer fee shall be deposited in the Liquor Control Fund.
             1115          Section 16. Section 32B-9-201 is amended to read:
             1116           32B-9-201. Application requirements for event permit.
             1117          (1) To obtain an event permit, a person shall submit to the department:
             1118          (a) a written application in a form that the department prescribes;
             1119          (b) an event permit fee:
             1120          (i) in the amount specified in the relevant part under this chapter for the type of event
             1121      permit for which the person is applying; and
             1122          (ii) that is refundable if an event permit is not issued;
             1123          (c) written consent of the local authority;
             1124          (d) a bond as specified by Section 32B-9-203 ;
             1125          (e) the times, dates, location, estimated attendance, nature, and purpose of the event;
             1126          (f) a description or floor plan designating:
             1127          (i) the area in which the person proposes that an alcoholic product be stored;
             1128          (ii) the site from which the person proposes that an alcoholic product be sold, offered
             1129      for sale, or furnished; and
             1130          (iii) the area in which the person proposes that an alcoholic product be allowed to be
             1131      consumed;
             1132          (g) a signed consent form stating that the event permittee will permit any authorized
             1133      representative of the commission, department, or any law enforcement officer to have
             1134      unrestricted right to enter the premises during the event;
             1135          (h) if the person is an entity, proper verification evidencing that a person who signs the
             1136      application is authorized to sign on behalf of the entity; and
             1137          (i) any other information as the commission or department may require.
             1138          (2) An entity applying for a permit need not meet the requirements of Subsections
             1139      (1)(b), (c), and (d) if the entity is:
             1140          (a) a state agency; or
             1141          (b) a political subdivision of the state.


             1142          (3) The [commission] director may not issue an event permit to a person who is
             1143      disqualified under Section 32B-1-304 .
             1144          (4) (a) The proximity requirements of Section 32B-1-202 do not apply to an event
             1145      permit.
             1146          (b) Notwithstanding Subsection (4)(a), nothing in this section prevents the director, the
             1147      Compliance, Licensing, and Enforcement Subcommittee, or the commission from considering
             1148      the proximity of an educational, religious, or recreational facility, or any other relevant factor in
             1149      deciding whether to issue an event permit.
             1150          Section 17. Section 32B-9-202 is amended to read:
             1151           32B-9-202. Duties before issuing event permit.
             1152          (1) (a) Before the [commission] director may issue an event permit, the department
             1153      shall conduct an investigation and may hold public hearings to gather information and make
             1154      recommendations to the [commission] director as to whether the [commission] director should
             1155      issue an event permit.
             1156          (b) The department shall forward the information and recommendations described in
             1157      Subsection (1)(a) to the [commission] director and the Compliance, Licensing, and
             1158      Enforcement Subcommittee to aid in the [commission's] determination.
             1159          (2) Before issuing an event permit, the [commission] director shall:
             1160          (a) determine that the person filed a complete application and is in compliance with:
             1161          (i) Section 32B-9-201 ; and
             1162          (ii) the relevant part under this chapter for the type of event permit for which the
             1163      person is applying;
             1164          (b) determine that the person is not disqualified under Section 32B-1-304 ;
             1165          (c) consider the purpose of the organization or its local lodge, chapter, or other local
             1166      unit;
             1167          (d) consider the times, dates, location, estimated attendance, nature, and purpose of the
             1168      event;
             1169          (e) to minimize the risk of minors being sold or furnished alcohol or adults being
             1170      overserved alcohol at the event, assess the adequacy of control measures for:
             1171          (i) a large-scale public event when the estimated attendance is in excess of 1,000
             1172      people; or


             1173          (ii) an outdoor public event; [and]
             1174          (f) obtain the approval of the Compliance, Licensing, and Enforcement Subcommittee
             1175      before issuing an event permit;
             1176          (g) notify each commissioner at least three business days before the director issues the
             1177      event permit in accordance with Subsection (3); and
             1178          [(f)] (h) consider any other factor the [commission] director considers necessary.
             1179          (3) (a) The director shall inform each commissioner of the director's preliminary
             1180      decision to issue or deny the issuance of an event permit three business days before the
             1181      decision is to be final.
             1182          (b) The preliminary decision becomes a final decision of the director:
             1183          (i) unless within three business days of receipt of the notice at least three of the
             1184      commissioners request a meeting to discuss whether the event permit should be issued; or
             1185          (ii) the director modifies or revokes the preliminary decision to issue or deny issuance
             1186      of the event permit.
             1187          (c) If three or more of the commissioners request a meeting, the applicant for the event
             1188      permit shall be notified and the commission:
             1189          (i) shall hold a meeting on the application for an event permit no later than the next
             1190      regularly scheduled meeting of the commission; and
             1191          (ii) may issue or deny issuance of the event permit if the applicant meets the
             1192      requirements of this chapter.
             1193          (d) Notwithstanding the other provisions of this Subsection (3), the director may at any
             1194      time refer an application for an event permit directly to the commission for a determination as
             1195      to whether an event permit should be issued or denied.
             1196          (e) For purposes of this title, an event permit issued by the commission is to be treated
             1197      the same as an event permit issued by the director.
             1198          (f) If the commission finds that an event permit was improperly issued or that the
             1199      permittee has violated this chapter, the commission may take any action permitted under this
             1200      title.
             1201          [(3)] (4) Once the [commission] director issues an event permit, the department shall
             1202      send a copy of the approved application and the event permit by written or electronic means to
             1203      the state and local law enforcement authorities [before the scheduled event] at least three days


             1204      before the event.
             1205          (5) The director shall provide the commission a monthly report of the actions taken by
             1206      the director under this part.
             1207          (6) If authorized by the director, the deputy director may act on behalf of the director
             1208      for purposes of issuing an event permit under this chapter.
             1209          Section 18. Section 32B-9-204 is amended to read:
             1210           32B-9-204. General operational requirements for an event permit.
             1211          (1) (a) An event permittee and a person involved in the storage, sale, offer for sale, or
             1212      furnishing of an alcoholic product at an event for which an event permit is issued, shall comply
             1213      with this title and rules of the commission.
             1214          (b) Failure to comply as provided in Subsection (1)(a):
             1215          (i) may result in:
             1216          (A) disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             1217      Enforcement Act, against:
             1218          (I) an event permittee;
             1219          (II) a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic
             1220      product at the event; or
             1221          (III) any combination of the persons listed in this Subsection (1)(b);
             1222          (B) immediate revocation of the event permit;
             1223          (C) forfeiture of a bond; or
             1224          (D) immediate seizure of an alcoholic product present at the event; and
             1225          (ii) if the event permit is revoked, disqualifies the event permittee from applying for an
             1226      event permit for a period of three years from the date of revocation of the event permit.
             1227          (c) An alcoholic product seized under this Subsection (1) shall be returned to the event
             1228      permittee after an event if forfeiture proceedings are not instituted under Section 32B-4-206 .
             1229          (2) (a) If there is a conflict between this part and the relevant part under this chapter for
             1230      the specific type of special use permit held by the special use permittee, the relevant part
             1231      governs.
             1232          (b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," an
             1233      event permittee may only sell, offer for sale, or furnish an alcoholic product specified in the
             1234      relevant part under this chapter for the type of event permit that is held by the event permittee.


             1235          (c) Notwithstanding that this part or the relevant part under this chapter for the type of
             1236      event permit held by an event permittee refers to "event permittee," a person involved in the
             1237      storage, sale, offer for sale, or furnishing of an alcoholic product at the event for which the
             1238      event permit is issued is subject to the same requirement or prohibition.
             1239          (3) An event permittee shall display a copy of the event permit in a prominent place in
             1240      the area in which an alcoholic product is sold, offered for sale, furnished, and consumed.
             1241          (4) An event permittee may not on the premises of the event:
             1242          (a) engage in or allow any form of gambling, as defined and proscribed in Title 76,
             1243      Chapter 10, Part 11, Gambling;
             1244          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1245      Part 11, Gambling; or
             1246          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1247      the risking of something of value for a return or for an outcome when the return or outcome is
             1248      based upon an element of chance, excluding the playing of an amusement device that confers
             1249      only an immediate and unrecorded right of replay not exchangeable for value.
             1250          (5) An event permittee may not knowingly allow a person at an event to, in violation of
             1251      Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
             1252      Paraphernalia Act:
             1253          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             1254      58-37-2 ; or
             1255          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             1256      Section 58-37a-3 .
             1257          (6) An event permittee may not sell, offer for sale, or furnish beer except beer
             1258      purchases from:
             1259          (a) a beer wholesaler licensee;
             1260          (b) a beer retailer; or
             1261          (c) a small brewer.
             1262          (7) An event permittee may not store, sell, offer for sale, furnish, or allow the
             1263      consumption of an alcoholic product purchased for an event in a location other than that
             1264      described in the application and designated on the event permit unless the event permittee first
             1265      applies for and receives approval from the [commission] director, with the approval of the


             1266      Compliance, Licensing, and Enforcement Subcommittee, for a change of location.
             1267          (8) (a) Subject to Subsection (8)(b), an event permittee may sell, offer for sale, or
             1268      furnish beer for on-premise consumption:
             1269          (i) in an open original container; and
             1270          (ii) in a container on draft.
             1271          (b) An event permittee may not sell, offer for sale, or furnish beer sold pursuant to
             1272      Subsection (8)(a):
             1273          (i) in a size of container that exceeds two liters; or
             1274          (ii) to an individual patron in a size of container that exceeds one liter.
             1275          (9) (a) An event permittee may not sell or offer for sale an alcoholic product at less
             1276      than the cost of the alcoholic product to the event permittee.
             1277          (b) An event permittee may not sell an alcoholic product at a discount price on any date
             1278      or at any time.
             1279          (c) An event permittee may not sell or offer for sale an alcoholic product at a price that
             1280      encourages over consumption or intoxication.
             1281          (d) An event permittee may not sell or offer for sale an alcoholic product at a special or
             1282      reduced price for only certain hours of the day of an event.
             1283          (e) An event permittee may not sell, offer for sale, or furnish more than one alcoholic
             1284      product at the price of a single alcoholic product.
             1285          (f) An event permittee, or a person operating, selling, offering, or furnishing an
             1286      alcoholic product under an event permit, may not sell, offer for sale, or furnish an indefinite or
             1287      unlimited number of alcoholic products during a set period for a fixed price, unless:
             1288          (i) the alcoholic product is served to a patron at a seated event;
             1289          (ii) food is available whenever the alcoholic product is sold, offered for sale, or
             1290      furnished; and
             1291          (iii) no person advertises that at the event a person may be sold or furnished an
             1292      indefinite or unlimited number of alcoholic products during a set period for a fixed price.
             1293          (g) An event permittee may not engage in a public promotion involving or offering a
             1294      free alcoholic product to the general public.
             1295          (10) An event permittee may not sell, offer for sale, or furnish an alcoholic product to:
             1296          (a) a minor;


             1297          (b) a person actually, apparently, or obviously intoxicated;
             1298          (c) a known interdicted person; or
             1299          (d) a known habitual drunkard.
             1300          (11) (a) An alcoholic product is considered under the control of the event permittee
             1301      during an event.
             1302          (b) A patron at an event may not bring an alcoholic product onto the premises of the
             1303      event.
             1304          (12) An event permittee may not permit a patron to carry from the premises an open
             1305      container that:
             1306          (a) is used primarily for drinking purposes; and
             1307          (b) contains an alcoholic product.
             1308          (13) (a) A person involved in the storage, sale, or furnishing of an alcoholic product at
             1309      an event is considered under the supervision and direction of the event permittee.
             1310          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product at
             1311      an event may not, while on duty:
             1312          (i) consume an alcoholic product; or
             1313          (ii) be intoxicated.
             1314          (14) A minor may not handle, sell, offer for sale, or furnish an alcoholic product at an
             1315      event.
             1316          (15) The location specified in an event permit may not be changed without prior
             1317      written approval of the commission.
             1318          (16) An event permittee may not sell, transfer, assign, exchange, barter, give, or
             1319      attempt in any way to dispose of the event permit to another person whether for monetary gain
             1320      or not.
             1321          (17) (a) An event permittee may not sell, offer for sale, furnish, or allow the
             1322      consumption of an alcoholic product during a period that:
             1323          (i) begins at 1 a.m.; and
             1324          (ii) ends at 9:59 a.m.
             1325          (b) This Subsection (17) does not preclude a local authority from being more restrictive
             1326      with respect to the hours of sale, offer for sale, furnishing, or consumption of an alcoholic
             1327      product at an event.


             1328          (18) A patron may have no more than one alcoholic product of any kind at a time
             1329      before the patron.
             1330          (19) (a) An event permittee shall display, in a prominent place, a sign in large letters
             1331      that consists of text in the following order:
             1332          (i) a header that reads: "WARNING";
             1333          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             1334      can cause birth defects and permanent brain damage for the child.";
             1335          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             1336      [insert most current toll-free number] with questions or for more information.";
             1337          (iv) a header that reads: "WARNING"; and
             1338          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             1339      serious crime that is prosecuted aggressively in Utah."
             1340          (b) (i) The text described in Subsections (19)(a)(i) through (iii) shall be in a different
             1341      font style than the text described in Subsections (19)(a)(iv) and (v).
             1342          (ii) The warning statements in the sign described in Subsection (19)(a) shall be in the
             1343      same font size.
             1344          (c) The Department of Health shall work with the commission and department to
             1345      facilitate consistency in the format of a sign required under this section.
             1346          Section 19. Section 32B-9-303 is amended to read:
             1347           32B-9-303. Director's power to issue single event permit.
             1348          (1) Before a person may sell, offer for sale, or furnish liquor at retail for on-premise
             1349      consumption at an event, the person shall first obtain a single event permit from the
             1350      [commission] director in accordance with this part.
             1351          (2) (a) [The commission] Subject to Subsection (5), the director may issue a single
             1352      event permit to any of the following that is conducting a convention, civic, or community
             1353      enterprise, a bona fide:
             1354          (i) partnership;
             1355          (ii) corporation;
             1356          (iii) limited liability company;
             1357          (iv) religious organization;
             1358          (v) political organization;


             1359          (vi) incorporated association;
             1360          (vii) recognized subordinate lodge, chapter, or other local unit of an entity described in
             1361      this Subsection (2)(a);
             1362          (viii) state agency; or
             1363          (ix) political subdivision of the state.
             1364          (b) The [commission] director may not issue a single event permit to an entity that has
             1365      not been in existence as a bona fide entity for at least one year before the day on which the
             1366      entity applies for a single event permit.
             1367          (3) (a) A single event permit may authorize:
             1368          (i) the storage, sale, offering for sale, furnishing, and consumption of liquor at an event
             1369      at which the storage, sale, offering for sale, furnishing, or consumption of liquor is otherwise
             1370      prohibited by this title under either:
             1371          (A) a 120 hour single event permit; or
             1372          (B) a 72 hour single event permit; and
             1373          (ii) the storage, sale, offer for sale, furnishing, and consumption of beer at the same
             1374      event for the period that the storage, sale, offer for sale, furnishing, or consumption of liquor is
             1375      authorized under Subsection (3)(a)(i) for the single event permit.
             1376          (b) The single event permit shall state in writing whether it is:
             1377          (i) a 120 hour single event permit; or
             1378          (ii) a 72 hour single event permit.
             1379          (4) The [commission] director may not issue more than:
             1380          (a) four single event permits in any one calendar year to the same person listed in
             1381      Subsection (2) if one or more of the single event permits is a 120 hour single event permit; or
             1382          (b) 12 single event permits in any one calendar year to the same person listed in
             1383      Subsection (2) if each of the single event permits issued to that person is a 72 hour single event
             1384      permit.
             1385          (5) Before the director issues or denies the issuance of a single event permit under this
             1386      section, the director shall comply with Section 32B-9-202 .
             1387          Section 20. Section 32B-9-403 is amended to read:
             1388           32B-9-403. Director's power to issue temporary beer event permit.
             1389          (1) Before a person may sell, offer for sale, or furnish beer at retail for on-premise


             1390      consumption at an event, the person shall obtain in accordance with this part:
             1391          (a) a single event permit; or
             1392          (b) (i) a temporary beer event permit; and
             1393          (ii) (A) a beer permit issued by the local authority as provided in Section 32B-9-404 ; or
             1394          (B) written consent of the local authority to sell beer at retail for on-premise
             1395      consumption at the event.
             1396          (2) (a) [The commission] Subject to Subsection (4), the director may issue a temporary
             1397      beer event permit to allow the sale, offering for sale, or furnishing of beer for on-premise
             1398      consumption only at an event that does not last longer than 30 days.
             1399          (b) A temporary beer event permit authorizes, for a period not to exceed 30 days, the
             1400      storage, sale, offer for sale, furnishing, and consumption of beer at an event.
             1401          (c) If a person obtains a temporary beer event permit for an event that lasts no longer
             1402      than 30 days, an on-premise beer retailer license is not required for the sale of beer at the event.
             1403          (3) (a) The [commission] director may not issue a temporary beer event permit to a
             1404      person if the aggregate of the days that the person is authorized to store, sell, offer for sale, or
             1405      furnish an alcoholic product under a temporary beer event permit will exceed a total of 90 days
             1406      in any one calendar year.
             1407          (b) The [commission] director may not issue, and a person may not obtain, a temporary
             1408      beer event permit to avoid or attempt to avoid the requirement to be licensed under Chapter 6,
             1409      Part 7, On-premise Beer Retailer License.
             1410          (4) Before the director issues or denies the issuance of a temporary beer event permit
             1411      under this section, the director shall comply with Section 32B-9-202 .
             1412          Section 21. Section 32B-9-404 is amended to read:
             1413           32B-9-404. Local authority's power to issue temporary beer event permit.
             1414          (1) A local authority may issue, suspend, and revoke a temporary permit to sell, offer
             1415      for sale, or furnish beer for on-premise consumption at an event, except that the local authority
             1416      may not issue a temporary permit if the event lasts longer than 30 days.
             1417          (2) Suspension or revocation of a temporary beer event permit issued [by the
             1418      commission] under Section 32B-9-403 or a temporary permit issued by a local authority under
             1419      this section prohibits the temporary beer event permittee who has a permit suspended or
             1420      revoked by either the commission or local authority from continuing to operate under the other


             1421      state or local permit.
             1422          Section 22. Section 52-4-205 is amended to read:
             1423           52-4-205. Purposes of closed meetings.
             1424          (1) A closed meeting described under Section 52-4-204 may only be held for:
             1425          (a) discussion of the character, professional competence, or physical or mental health
             1426      of an individual;
             1427          (b) strategy sessions to discuss collective bargaining;
             1428          (c) strategy sessions to discuss pending or reasonably imminent litigation;
             1429          (d) strategy sessions to discuss the purchase, exchange, or lease of real property,
             1430      including any form of a water right or water shares, if public discussion of the transaction
             1431      would:
             1432          (i) disclose the appraisal or estimated value of the property under consideration; or
             1433          (ii) prevent the public body from completing the transaction on the best possible terms;
             1434          (e) strategy sessions to discuss the sale of real property, including any form of a water
             1435      right or water shares, if:
             1436          (i) public discussion of the transaction would:
             1437          (A) disclose the appraisal or estimated value of the property under consideration; or
             1438          (B) prevent the public body from completing the transaction on the best possible terms;
             1439          (ii) the public body previously gave public notice that the property would be offered for
             1440      sale; and
             1441          (iii) the terms of the sale are publicly disclosed before the public body approves the
             1442      sale;
             1443          (f) discussion regarding deployment of security personnel, devices, or systems;
             1444          (g) investigative proceedings regarding allegations of criminal misconduct;
             1445          (h) as relates to the Independent Legislative Ethics Commission, conducting business
             1446      relating to the receipt or review of ethics complaints;
             1447          (i) as relates to an ethics committee of the Legislature, a purpose permitted under
             1448      Subsection 52-4-204 (1)(a)(iii)(B);
             1449          (j) as relates to a county legislative body, discussing commercial information as
             1450      defined in Section 59-1-404 ;
             1451          (k) as relates to the Alcoholic Beverage Control Commission [issuing a retail license


             1452      under Title 32B, Alcoholic Beverage Control Act, after receiving public input in a public
             1453      meeting in support or opposition to the commission issuing the retail license, discussing one or
             1454      more of the following factors], discussing in a closed meeting:
             1455          [(i) a factor the commission is required to consider under Section 32B-5-203 or that is
             1456      specified in the relevant part under Chapter 6, Specific Retail License Act, for the type of retail
             1457      license at issue;]
             1458          [(ii) the availability of a retail license under a quota;]
             1459          [(iii) the length of time the applicant has waited for a retail license;]
             1460          [(iv) an opening date for the applicant;]
             1461          [(v) whether the applicant is a seasonal business;]
             1462          [(vi) whether the location of the applicant has been previously licensed or is a new
             1463      location;]
             1464          [(vii) whether the application involves a change of ownership of an existing location;]
             1465          [(viii) whether the applicant holds other alcohol licenses at any location;]
             1466          [(ix) whether the applicant has a violation history or a pending violation;]
             1467          [(x) projected alcohol sales for the applicant as it relates to the extent to which the
             1468      retail license will be used;]
             1469          [(xi) whether the applicant is a small or entrepreneurial business that would benefit the
             1470      community in which it would be located;]
             1471          [(xii) the nature of entertainment the applicant proposes; or]
             1472          [(xiii) public input in support or opposition to granting the retail license;]
             1473          (i) commercial information or financial information obtained from a person if
             1474      disclosure of the information could reasonably be expected to result in unfair competitive
             1475      injury to the person submitting the information or would impair the ability of the Alcoholic
             1476      Beverage Control Commission from obtaining necessary information in the future; and
             1477          (ii) an audit report and the Alcoholic Beverage Control Commission's response to the
             1478      audit report until the audit report is made available under Subsection 32B-2-302 (4) or
             1479      32B-2-302.5 (5)(d);
             1480          (l) as relates to the Utah Higher Education Assistance Authority and its appointed
             1481      board of directors, discussing fiduciary or commercial information as defined in Section
             1482      53B-12-102 ; or


             1483          (m) a purpose for which a meeting is required to be closed under Subsection (2).
             1484          (2) The following meetings shall be closed:
             1485          (a) a meeting of the Health and Human Services Interim Committee to review a fatality
             1486      review report described in Subsection 62A-16-301 (1)(a), and the responses to the report
             1487      described in Subsections 62A-16-301 (2) and (4); and
             1488          (b) a meeting of the Child Welfare Legislative Oversight Panel to:
             1489          (i) review a fatality review report described in Subsection 62A-16-301 (1)(a), and the
             1490      responses to the report described in Subsections 62A-16-301 (2) and (4); or
             1491          (ii) review and discuss an individual case, as described in Subsection 62A-4a-207 (5).
             1492          (3) A public body may not interview a person applying to fill an elected position in a
             1493      closed meeting.
             1494          Section 23. Section 63G-2-305 is amended to read:
             1495           63G-2-305. Protected records.
             1496          The following records are protected if properly classified by a governmental entity:
             1497          (1) trade secrets as defined in Section 13-24-2 if the person submitting the trade secret
             1498      has provided the governmental entity with the information specified in Section 63G-2-309 ;
             1499          (2) commercial information or nonindividual financial information obtained from a
             1500      person if:
             1501          (a) disclosure of the information could reasonably be expected to result in unfair
             1502      competitive injury to the person submitting the information or would impair the ability of the
             1503      governmental entity to obtain necessary information in the future;
             1504          (b) the person submitting the information has a greater interest in prohibiting access
             1505      than the public in obtaining access; and
             1506          (c) the person submitting the information has provided the governmental entity with
             1507      the information specified in Section 63G-2-309 ;
             1508          (3) commercial or financial information acquired or prepared by a governmental entity
             1509      to the extent that disclosure would lead to financial speculations in currencies, securities, or
             1510      commodities that will interfere with a planned transaction by the governmental entity or cause
             1511      substantial financial injury to the governmental entity or state economy;
             1512          (4) records the disclosure of which could cause commercial injury to, or confer a
             1513      competitive advantage upon a potential or actual competitor of, a commercial project entity as


             1514      defined in Subsection 11-13-103 (4);
             1515          (5) test questions and answers to be used in future license, certification, registration,
             1516      employment, or academic examinations;
             1517          (6) records the disclosure of which would impair governmental procurement
             1518      proceedings or give an unfair advantage to any person proposing to enter into a contract or
             1519      agreement with a governmental entity, except, subject to Subsections (1) and (2), that this
             1520      Subsection (6) does not restrict the right of a person to have access to, once the contract or
             1521      grant has been awarded, a bid, proposal, or application submitted to or by a governmental
             1522      entity in response to:
             1523          (a) a request for bids;
             1524          (b) a request for proposals;
             1525          (c) a grant; or
             1526          (d) other similar document;
             1527          (7) records that would identify real property or the appraisal or estimated value of real
             1528      or personal property, including intellectual property, under consideration for public acquisition
             1529      before any rights to the property are acquired unless:
             1530          (a) public interest in obtaining access to the information outweighs the governmental
             1531      entity's need to acquire the property on the best terms possible;
             1532          (b) the information has already been disclosed to persons not employed by or under a
             1533      duty of confidentiality to the entity;
             1534          (c) in the case of records that would identify property, potential sellers of the described
             1535      property have already learned of the governmental entity's plans to acquire the property;
             1536          (d) in the case of records that would identify the appraisal or estimated value of
             1537      property, the potential sellers have already learned of the governmental entity's estimated value
             1538      of the property; or
             1539          (e) the property under consideration for public acquisition is a single family residence
             1540      and the governmental entity seeking to acquire the property has initiated negotiations to acquire
             1541      the property as required under Section 78B-6-505 ;
             1542          (8) records prepared in contemplation of sale, exchange, lease, rental, or other
             1543      compensated transaction of real or personal property including intellectual property, which, if
             1544      disclosed prior to completion of the transaction, would reveal the appraisal or estimated value


             1545      of the subject property, unless:
             1546          (a) the public interest in access outweighs the interests in restricting access, including
             1547      the governmental entity's interest in maximizing the financial benefit of the transaction; or
             1548          (b) when prepared by or on behalf of a governmental entity, appraisals or estimates of
             1549      the value of the subject property have already been disclosed to persons not employed by or
             1550      under a duty of confidentiality to the entity;
             1551          (9) records created or maintained for civil, criminal, or administrative enforcement
             1552      purposes or audit purposes, or for discipline, licensing, certification, or registration purposes, if
             1553      release of the records:
             1554          (a) reasonably could be expected to interfere with investigations undertaken for
             1555      enforcement, discipline, licensing, certification, or registration purposes;
             1556          (b) reasonably could be expected to interfere with audits, disciplinary, or enforcement
             1557      proceedings;
             1558          (c) would create a danger of depriving a person of a right to a fair trial or impartial
             1559      hearing;
             1560          (d) reasonably could be expected to disclose the identity of a source who is not
             1561      generally known outside of government and, in the case of a record compiled in the course of
             1562      an investigation, disclose information furnished by a source not generally known outside of
             1563      government if disclosure would compromise the source; or
             1564          (e) reasonably could be expected to disclose investigative or audit techniques,
             1565      procedures, policies, or orders not generally known outside of government if disclosure would
             1566      interfere with enforcement or audit efforts;
             1567          (10) records the disclosure of which would jeopardize the life or safety of an
             1568      individual;
             1569          (11) records the disclosure of which would jeopardize the security of governmental
             1570      property, governmental programs, or governmental recordkeeping systems from damage, theft,
             1571      or other appropriation or use contrary to law or public policy;
             1572          (12) records that, if disclosed, would jeopardize the security or safety of a correctional
             1573      facility, or records relating to incarceration, treatment, probation, or parole, that would interfere
             1574      with the control and supervision of an offender's incarceration, treatment, probation, or parole;
             1575          (13) records that, if disclosed, would reveal recommendations made to the Board of


             1576      Pardons and Parole by an employee of or contractor for the Department of Corrections, the
             1577      Board of Pardons and Parole, or the Department of Human Services that are based on the
             1578      employee's or contractor's supervision, diagnosis, or treatment of any person within the board's
             1579      jurisdiction;
             1580          (14) records and audit workpapers that identify audit, collection, and operational
             1581      procedures and methods used by the State Tax Commission, if disclosure would interfere with
             1582      audits or collections;
             1583          (15) records of a governmental audit agency relating to an ongoing or planned audit
             1584      until the final audit is released;
             1585          (16) records prepared by or on behalf of a governmental entity solely in anticipation of
             1586      litigation that are not available under the rules of discovery;
             1587          (17) records disclosing an attorney's work product, including the mental impressions or
             1588      legal theories of an attorney or other representative of a governmental entity concerning
             1589      litigation;
             1590          (18) records of communications between a governmental entity and an attorney
             1591      representing, retained, or employed by the governmental entity if the communications would be
             1592      privileged as provided in Section 78B-1-137 ;
             1593          (19) (a) (i) personal files of a state legislator, including personal correspondence to or
             1594      from a member of the Legislature; and
             1595          (ii) notwithstanding Subsection (19)(a)(i), correspondence that gives notice of
             1596      legislative action or policy may not be classified as protected under this section; and
             1597          (b) (i) an internal communication that is part of the deliberative process in connection
             1598      with the preparation of legislation between:
             1599          (A) members of a legislative body;
             1600          (B) a member of a legislative body and a member of the legislative body's staff; or
             1601          (C) members of a legislative body's staff; and
             1602          (ii) notwithstanding Subsection (19)(b)(i), a communication that gives notice of
             1603      legislative action or policy may not be classified as protected under this section;
             1604          (20) (a) records in the custody or control of the Office of Legislative Research and
             1605      General Counsel, that, if disclosed, would reveal a particular legislator's contemplated
             1606      legislation or contemplated course of action before the legislator has elected to support the


             1607      legislation or course of action, or made the legislation or course of action public; and
             1608          (b) notwithstanding Subsection (20)(a), the form to request legislation submitted to the
             1609      Office of Legislative Research and General Counsel is a public document unless a legislator
             1610      asks that the records requesting the legislation be maintained as protected records until such
             1611      time as the legislator elects to make the legislation or course of action public;
             1612          (21) research requests from legislators to the Office of Legislative Research and
             1613      General Counsel or the Office of the Legislative Fiscal Analyst and research findings prepared
             1614      in response to these requests;
             1615          (22) drafts, unless otherwise classified as public;
             1616          (23) records concerning a governmental entity's strategy about collective bargaining or
             1617      pending litigation;
             1618          (24) records of investigations of loss occurrences and analyses of loss occurrences that
             1619      may be covered by the Risk Management Fund, the Employers' Reinsurance Fund, the
             1620      Uninsured Employers' Fund, or similar divisions in other governmental entities;
             1621          (25) records, other than personnel evaluations, that contain a personal recommendation
             1622      concerning an individual if disclosure would constitute a clearly unwarranted invasion of
             1623      personal privacy, or disclosure is not in the public interest;
             1624          (26) records that reveal the location of historic, prehistoric, paleontological, or
             1625      biological resources that if known would jeopardize the security of those resources or of
             1626      valuable historic, scientific, educational, or cultural information;
             1627          (27) records of independent state agencies if the disclosure of the records would
             1628      conflict with the fiduciary obligations of the agency;
             1629          (28) records of an institution within the state system of higher education defined in
             1630      Section 53B-1-102 regarding tenure evaluations, appointments, applications for admissions,
             1631      retention decisions, and promotions, which could be properly discussed in a meeting closed in
             1632      accordance with Title 52, Chapter 4, Open and Public Meetings Act, provided that records of
             1633      the final decisions about tenure, appointments, retention, promotions, or those students
             1634      admitted, may not be classified as protected under this section;
             1635          (29) records of the governor's office, including budget recommendations, legislative
             1636      proposals, and policy statements, that if disclosed would reveal the governor's contemplated
             1637      policies or contemplated courses of action before the governor has implemented or rejected


             1638      those policies or courses of action or made them public;
             1639          (30) records of the Office of the Legislative Fiscal Analyst relating to budget analysis,
             1640      revenue estimates, and fiscal notes of proposed legislation before issuance of the final
             1641      recommendations in these areas;
             1642          (31) records provided by the United States or by a government entity outside the state
             1643      that are given to the governmental entity with a requirement that they be managed as protected
             1644      records if the providing entity certifies that the record would not be subject to public disclosure
             1645      if retained by it;
             1646          (32) transcripts, minutes, or reports of the closed portion of a meeting of a public body
             1647      except as provided in Section 52-4-206 ;
             1648          (33) records that would reveal the contents of settlement negotiations but not including
             1649      final settlements or empirical data to the extent that they are not otherwise exempt from
             1650      disclosure;
             1651          (34) memoranda prepared by staff and used in the decision-making process by an
             1652      administrative law judge, a member of the Board of Pardons and Parole, or a member of any
             1653      other body charged by law with performing a quasi-judicial function;
             1654          (35) records that would reveal negotiations regarding assistance or incentives offered
             1655      by or requested from a governmental entity for the purpose of encouraging a person to expand
             1656      or locate a business in Utah, but only if disclosure would result in actual economic harm to the
             1657      person or place the governmental entity at a competitive disadvantage, but this section may not
             1658      be used to restrict access to a record evidencing a final contract;
             1659          (36) materials to which access must be limited for purposes of securing or maintaining
             1660      the governmental entity's proprietary protection of intellectual property rights including patents,
             1661      copyrights, and trade secrets;
             1662          (37) the name of a donor or a prospective donor to a governmental entity, including an
             1663      institution within the state system of higher education defined in Section 53B-1-102 , and other
             1664      information concerning the donation that could reasonably be expected to reveal the identity of
             1665      the donor, provided that:
             1666          (a) the donor requests anonymity in writing;
             1667          (b) any terms, conditions, restrictions, or privileges relating to the donation may not be
             1668      classified protected by the governmental entity under this Subsection (37); and


             1669          (c) except for an institution within the state system of higher education defined in
             1670      Section 53B-1-102 , the governmental unit to which the donation is made is primarily engaged
             1671      in educational, charitable, or artistic endeavors, and has no regulatory or legislative authority
             1672      over the donor, a member of the donor's immediate family, or any entity owned or controlled
             1673      by the donor or the donor's immediate family;
             1674          (38) accident reports, except as provided in Sections 41-6a-404 , 41-12a-202 , and
             1675      73-18-13 ;
             1676          (39) a notification of workers' compensation insurance coverage described in Section
             1677      34A-2-205 ;
             1678          (40) (a) the following records of an institution within the state system of higher
             1679      education defined in Section 53B-1-102 , which have been developed, discovered, disclosed to,
             1680      or received by or on behalf of faculty, staff, employees, or students of the institution:
             1681          (i) unpublished lecture notes;
             1682          (ii) unpublished notes, data, and information:
             1683          (A) relating to research; and
             1684          (B) of:
             1685          (I) the institution within the state system of higher education defined in Section
             1686      53B-1-102 ; or
             1687          (II) a sponsor of sponsored research;
             1688          (iii) unpublished manuscripts;
             1689          (iv) creative works in process;
             1690          (v) scholarly correspondence; and
             1691          (vi) confidential information contained in research proposals;
             1692          (b) Subsection (40)(a) may not be construed to prohibit disclosure of public
             1693      information required pursuant to Subsection 53B-16-302 (2)(a) or (b); and
             1694          (c) Subsection (40)(a) may not be construed to affect the ownership of a record;
             1695          (41) (a) records in the custody or control of the Office of Legislative Auditor General
             1696      that would reveal the name of a particular legislator who requests a legislative audit prior to the
             1697      date that audit is completed and made public; and
             1698          (b) notwithstanding Subsection (41)(a), a request for a legislative audit submitted to the
             1699      Office of the Legislative Auditor General is a public document unless the legislator asks that


             1700      the records in the custody or control of the Office of Legislative Auditor General that would
             1701      reveal the name of a particular legislator who requests a legislative audit be maintained as
             1702      protected records until the audit is completed and made public;
             1703          (42) records that provide detail as to the location of an explosive, including a map or
             1704      other document that indicates the location of:
             1705          (a) a production facility; or
             1706          (b) a magazine;
             1707          (43) information:
             1708          (a) contained in the statewide database of the Division of Aging and Adult Services
             1709      created by Section 62A-3-311.1 ; or
             1710          (b) received or maintained in relation to the Identity Theft Reporting Information
             1711      System (IRIS) established under Section 67-5-22 ;
             1712          (44) information contained in the Management Information System and Licensing
             1713      Information System described in Title 62A, Chapter 4a, Child and Family Services;
             1714          (45) information regarding National Guard operations or activities in support of the
             1715      National Guard's federal mission;
             1716          (46) records provided by any pawn or secondhand business to a law enforcement
             1717      agency or to the central database in compliance with Title 13, Chapter 32a, Pawnshop and
             1718      Secondhand Merchandise Transaction Information Act;
             1719          (47) information regarding food security, risk, and vulnerability assessments performed
             1720      by the Department of Agriculture and Food;
             1721          (48) except to the extent that the record is exempt from this chapter pursuant to Section
             1722      63G-2-106 , records related to an emergency plan or program, a copy of which is provided to or
             1723      prepared or maintained by the Division of Emergency Management, and the disclosure of
             1724      which would jeopardize:
             1725          (a) the safety of the general public; or
             1726          (b) the security of:
             1727          (i) governmental property;
             1728          (ii) governmental programs; or
             1729          (iii) the property of a private person who provides the Division of Emergency
             1730      Management information;


             1731          (49) records of the Department of Agriculture and Food relating to the National
             1732      Animal Identification System or any other program that provides for the identification, tracing,
             1733      or control of livestock diseases, including any program established under Title 4, Chapter 24,
             1734      Utah Livestock Brand and Anti-theft Act or Title 4, Chapter 31, Livestock Inspection and
             1735      Quarantine;
             1736          (50) as provided in Section 26-39-501 :
             1737          (a) information or records held by the Department of Health related to a complaint
             1738      regarding a child care program or residential child care which the department is unable to
             1739      substantiate; and
             1740          (b) information or records related to a complaint received by the Department of Health
             1741      from an anonymous complainant regarding a child care program or residential child care;
             1742          (51) unless otherwise classified as public under Section 63G-2-301 and except as
             1743      provided under Section 41-1a-116 , an individual's home address, home telephone number, or
             1744      personal mobile phone number, if:
             1745          (a) the individual is required to provide the information in order to comply with a law,
             1746      ordinance, rule, or order of a government entity; and
             1747          (b) the subject of the record has a reasonable expectation that this information will be
             1748      kept confidential due to:
             1749          (i) the nature of the law, ordinance, rule, or order; and
             1750          (ii) the individual complying with the law, ordinance, rule, or order;
             1751          (52) the name, home address, work addresses, and telephone numbers of an individual
             1752      that is engaged in, or that provides goods or services for, medical or scientific research that is:
             1753          (a) conducted within the state system of higher education, as defined in Section
             1754      53B-1-102 ; and
             1755          (b) conducted using animals;
             1756          (53) an initial proposal under Title 63M, Chapter 1, Part 26, Government Procurement
             1757      Private Proposal Program, to the extent not made public by rules made under that chapter;
             1758          (54) in accordance with Section 78A-12-203 , any record of the Judicial Performance
             1759      Evaluation Commission concerning an individual commissioner's vote on whether or not to
             1760      recommend that the voters retain a judge;
             1761          (55) information collected and a report prepared by the Judicial Performance


             1762      Evaluation Commission concerning a judge, unless Section 20A-7-702 or Title 78A, Chapter
             1763      12, Judicial Performance Evaluation Commission Act, requires disclosure of, or makes public,
             1764      the information or report;
             1765          (56) records contained in the Management Information System created in Section
             1766      62A-4a-1003 ;
             1767          (57) records provided or received by the Public Lands Policy Coordinating Office in
             1768      furtherance of any contract or other agreement made in accordance with Section 63J-4-603 ;
             1769          (58) information requested by and provided to the Utah State 911 Committee under
             1770      Section 53-10-602 ;
             1771          (59) recorded Children's Justice Center investigative interviews, both video and audio,
             1772      the release of which are governed by Section 77-37-4 ;
             1773          (60) in accordance with Section 73-10-33 :
             1774          (a) a management plan for a water conveyance facility in the possession of the Division
             1775      of Water Resources or the Board of Water Resources; or
             1776          (b) an outline of an emergency response plan in possession of the state or a county or
             1777      municipality;
             1778          (61) the following records in the custody or control of the Office of Inspector General
             1779      of Medicaid Services, created in Section 63J-4a-201 :
             1780          (a) records that would disclose information relating to allegations of personal
             1781      misconduct, gross mismanagement, or illegal activity of a person if the information or
             1782      allegation cannot be corroborated by the Office of Inspector General of Medicaid Services
             1783      through other documents or evidence, and the records relating to the allegation are not relied
             1784      upon by the Office of Inspector General of Medicaid Services in preparing a final investigation
             1785      report or final audit report;
             1786          (b) records and audit workpapers to the extent they would disclose the identity of a
             1787      person who, during the course of an investigation or audit, communicated the existence of any
             1788      Medicaid fraud, waste, or abuse, or a violation or suspected violation of a law, rule, or
             1789      regulation adopted under the laws of this state, a political subdivision of the state, or any
             1790      recognized entity of the United States, if the information was disclosed on the condition that
             1791      the identity of the person be protected;
             1792          (c) before the time that an investigation or audit is completed and the final


             1793      investigation or final audit report is released, records or drafts circulated to a person who is not
             1794      an employee or head of a governmental entity for the person's response or information;
             1795          (d) records that would disclose an outline or part of any investigation, audit survey
             1796      plan, or audit program; or
             1797          (e) requests for an investigation or audit, if disclosure would risk circumvention of an
             1798      investigation or audit;
             1799          (62) records that reveal methods used by the Office of Inspector General of Medicaid
             1800      Services, the fraud unit, or the Department of Health, to discover Medicaid fraud, waste, or
             1801      abuse;
             1802          (63) information provided to the Department of Health or the Division of Occupational
             1803      and Professional Licensing under Subsection 58-68-304 (3) or (4); [and]
             1804          (64) a record described in Section 63G-12-210 [.]; and
             1805          (65) a record related to an ethics investigation of the Department of Alcoholic
             1806      Beverage Control or Alcoholic Beverage Control Commission until a public recommendation
             1807      or public sanction is issued.
             1808          Section 24. Section 63I-5-201 is amended to read:
             1809           63I-5-201. Internal auditing programs -- State agencies.
             1810          (1) (a) The Departments of Administrative Services, Agriculture, Commerce,
             1811      Community and Culture, Corrections, Workforce Services, Environmental Quality, Health,
             1812      Human Services, Natural Resources, Public Safety, and Transportation; and the State Tax
             1813      Commission shall conduct various types of auditing procedures as determined by the agency
             1814      head or governor.
             1815          (b) The governor may, by executive order, require other state agencies to establish an
             1816      internal audit program.
             1817          (c) An agency head may establish an internal audit program for the agency head's
             1818      agency if the agency administers programs that:
             1819          (i) might pose a high liability risk to the state; or
             1820          (ii) are essential to the health, safety, and welfare of the citizens of Utah.
             1821          (2) (a) The Office of the Court Administrator shall conduct various types of auditing
             1822      procedures as determined by the Judicial Council, including auditing procedures for courts not
             1823      of record.


             1824          (b) The Judicial Council may, by rule, require other judicial agencies to establish an
             1825      internal audit program.
             1826          (c) An agency head within the judicial branch may establish an internal audit program
             1827      for the agency head's agency if the agency administers programs that:
             1828          (i) might pose a high liability risk to the state; or
             1829          (ii) are essential to the health, safety, and welfare of the citizens of Utah.
             1830          (3) (a) The University of Utah, Utah State University, Salt Lake Community College,
             1831      Utah Valley University, and Weber State University shall conduct various types of auditing
             1832      procedures as determined by the Board of Regents.
             1833          (b) The Board of Regents may issue policies requiring other higher education entities
             1834      or programs to establish an internal audit program.
             1835          (c) An agency head within higher education may establish an internal audit program for
             1836      the agency head's agency if the agency administers programs that:
             1837          (i) might pose a high liability risk to the state; or
             1838          (ii) are essential to the health, safety, and welfare of the citizens of Utah.
             1839          (4) The State Office of Education shall conduct various types of auditing procedures as
             1840      determined by the State Board of Education.
             1841          (5) Subject to Section 32B-2-302.5 , the internal audit division of the Department of
             1842      Alcoholic Beverage Control shall conduct various types of auditing procedures as determined
             1843      by the Alcoholic Beverage Control Commission.
             1844          Section 25. Effective date.
             1845          This bill takes effect on July 1, 2012.


[Bill Documents][Bills Directory]