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[Introduced][Status][Bill Documents][Fiscal Note] [Bills Directory]

H.B. 228 Enrolled

             1     

ALCOHOLIC BEVERAGE CONTROL ACT AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Ryan D. Wilcox

             5     
Senate Sponsor: John L. Valentine

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Alcoholic Beverage Control Act to address the regulation of
             10      alcoholic products.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies definitions;
             14          .    addresses new master licenses under the law enforcement quota;
             15          .    addresses the powers and duties of the commission;
             16          .    requires money be appropriated by the Legislature or provided by statute for the
             17      department to draw from the Liquor Control Fund with limited exceptions;
             18          .    clarifies who makes warrants on the funds;
             19          .    provides for Division of Finance to make year-end closing entries;
             20          .    repeals language regarding a private person conducting audits;
             21          .    requires the state auditor to perform financial audits of the department;
             22          .    requires the state auditor to distribute audits to specified individuals and entities;
             23          .    expands retail licenses eligible for conditional retail licenses and modifications for
             24      the period of a conditional retail license;
             25          .    creates a master full-service restaurant license;
             26          .    creates a master limited-service restaurant license;
             27          .    addresses guests of fraternals;
             28          .    extends the effective date for the Transfer of Retail License Act; and
             29          .    makes technical and conforming changes.


             30      Money Appropriated in this Bill:
             31          None
             32      Other Special Clauses:
             33          This bill provides effective dates.
             34          This bill provides revisor instructions.
             35      Utah Code Sections Affected:
             36      AMENDS:
             37          32B-1-102, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
             38          32B-1-201, as last amended by Laws of Utah 2011, Chapter 334
             39          32B-2-202, as last amended by Laws of Utah 2012, Chapter 365
             40          32B-2-301, as last amended by Laws of Utah 2012, Chapter 357
             41          32B-2-302, as last amended by Laws of Utah 2012, Chapter 365
             42          32B-5-205, as enacted by Laws of Utah 2010, Chapter 276
             43          32B-6-407, as last amended by Laws of Utah 2011, Chapter 297
             44          32B-8a-201 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             45      ENACTS:
             46          32B-6-206, Utah Code Annotated 1953
             47          32B-6-306, Utah Code Annotated 1953
             48      Uncodified Material Affected:
             49      AMENDS UNCODIFIED MATERIAL:
             50           Uncodified Section 7, Laws of Utah 2012, Fourth Special Session, Chapter 1
             51          This uncodified section affects Sections 32B-5-309 (Effective 07/01/13) and the
             52      sections in Title 32B, Chapter 8a, Transfer of Retail License Act.
             53           Uncodified Section 8, Laws of Utah 2012, Fourth Special Session, Chapter 1
             54      Utah Code Sections Affected by Revisor Instructions:
             55          32B-5-309 (Superseded 07/01/13), as enacted by Laws of Utah 2010, Chapter 276
             56          32B-5-309 (Effective 07/01/13), as last amended by Laws of Utah 2011, Chapter 334
             57          32B-8a-101 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334


             58          32B-8a-102 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             59          32B-8a-201 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             60          32B-8a-202 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             61          32B-8a-203 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             62          32B-8a-301 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             63          32B-8a-302 (Effective 07/01/13), as last amended by Laws of Utah 2012, Chapter 365
             64          32B-8a-303 (Effective 07/01/13), as last amended by Laws of Utah 2012, Chapter 365
             65          32B-8a-401 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             66          32B-8a-402 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             67          32B-8a-403 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             68          32B-8a-404 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             69          32B-8a-501 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             70          32B-8a-502 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             71     
             72      Be it enacted by the Legislature of the state of Utah:
             73          Section 1. Section 32B-1-102 is amended to read:
             74           32B-1-102. Definitions.
             75          As used in this title:
             76          (1) "Airport lounge" means a business location:
             77          (a) at which an alcoholic product is sold at retail for consumption on the premises; and
             78          (b) that is located at an international airport with a United States Customs office on the
             79      premises of the international airport.
             80          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
             81      Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
             82          (3) "Alcoholic beverage" means the following:
             83          (a) beer; or
             84          (b) liquor.
             85          (4) (a) "Alcoholic product" means a product that:


             86          (i) contains at least .5% of alcohol by volume; and
             87          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
             88      process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
             89      in an amount equal to or greater than .5% of alcohol by volume.
             90          (b) "Alcoholic product" includes an alcoholic beverage.
             91          (c) "Alcoholic product" does not include any of the following common items that
             92      otherwise come within the definition of an alcoholic product:
             93          (i) except as provided in Subsection (4)(d), an extract;
             94          (ii) vinegar;
             95          (iii) cider;
             96          (iv) essence;
             97          (v) tincture;
             98          (vi) food preparation; or
             99          (vii) an over-the-counter medicine.
             100          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
             101      when it is used as a flavoring in the manufacturing of an alcoholic product.
             102          (5) "Alcohol training and education seminar" means a seminar that is:
             103          (a) required by Chapter 5, Part 4, Alcohol Training and Education Act; and
             104          (b) described in Section 62A-15-401 .
             105          (6) "Banquet" means an event:
             106          (a) that is held at one or more designated locations approved by the commission in or
             107      on the premises of a:
             108          (i) hotel;
             109          (ii) resort facility;
             110          (iii) sports center; or
             111          (iv) convention center;
             112          (b) for which there is a contract:
             113          (i) between a person operating a facility listed in Subsection (6)(a) and another person;


             114      and
             115          (ii) under which the person operating a facility listed in Subsection (6)(a) is required to
             116      provide an alcoholic product at the event; and
             117          (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
             118          (7) (a) "Bar" means a surface or structure:
             119          (i) at which an alcoholic product is:
             120          (A) stored; or
             121          (B) dispensed; or
             122          (ii) from which an alcoholic product is served.
             123          (b) "Bar structure" means a surface or structure on a licensed premises if on or at any
             124      place of the surface or structure an alcoholic product is:
             125          (i) stored; or
             126          (ii) dispensed.
             127          (8) (a) Subject to Subsection (8)(d), "beer" means a product that:
             128          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
             129      volume or 3.2% by weight; and
             130          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             131          (b) "Beer" may or may not contain hops or other vegetable products.
             132          (c) "Beer" includes a product that:
             133          (i) contains alcohol in the percentages described in Subsection (8)(a); and
             134          (ii) is referred to as:
             135          (A) beer;
             136          (B) ale;
             137          (C) porter;
             138          (D) stout;
             139          (E) lager; or
             140          (F) a malt or malted beverage.
             141          (d) "Beer" does not include a flavored malt beverage.


             142          (9) "Beer-only restaurant license" means a license issued in accordance with Chapter 5,
             143      Retail License Act, and Chapter 6, Part 9, Beer-only Restaurant License.
             144          (10) "Beer retailer" means a business:
             145          (a) that is engaged, primarily or incidentally, in the retail sale of beer to a patron,
             146      whether for consumption on or off the business premises; and
             147          (b) to whom a license is issued:
             148          (i) for an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-premise
             149      Beer Retailer Local Authority; or
             150          (ii) for an on-premise beer retailer, in accordance with Chapter 5, Retail License Act,
             151      and Chapter 6, Part 7, On-premise Beer Retailer License.
             152          (11) "Beer wholesaling license" means a license:
             153          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
             154          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
             155      retail licensees or off-premise beer retailers.
             156          (12) "Billboard" means a public display used to advertise, including:
             157          (a) a light device;
             158          (b) a painting;
             159          (c) a drawing;
             160          (d) a poster;
             161          (e) a sign;
             162          (f) a signboard; or
             163          (g) a scoreboard.
             164          (13) "Brewer" means a person engaged in manufacturing:
             165          (a) beer;
             166          (b) heavy beer; or
             167          (c) a flavored malt beverage.
             168          (14) "Brewery manufacturing license" means a license issued in accordance with
             169      Chapter 11, Part 5, Brewery Manufacturing License.


             170          (15) "Certificate of approval" means a certificate of approval obtained from the
             171      department under Section 32B-11-201 .
             172          (16) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
             173      a bus company to a group of persons pursuant to a common purpose:
             174          (a) under a single contract;
             175          (b) at a fixed charge in accordance with the bus company's tariff; and
             176          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
             177      motor vehicle, and a driver to travel together to one or more specified destinations.
             178          (17) "Church" means a building:
             179          (a) set apart for worship;
             180          (b) in which religious services are held;
             181          (c) with which clergy is associated; and
             182          (d) that is tax exempt under the laws of this state.
             183          (18) (a) "Club license" means a license issued in accordance with Chapter 5, Retail
             184      License Act, and Chapter 6, Part 4, Club License.
             185          (b) "Club license" includes:
             186          (i) a dining club license;
             187          (ii) an equity club license;
             188          (iii) a fraternal club license; or
             189          (iv) a social club license.
             190          (19) "Commission" means the Alcoholic Beverage Control Commission created in
             191      Section 32B-2-201 .
             192          (20) "Commissioner" means a member of the commission.
             193          (21) "Community location" means:
             194          (a) a public or private school;
             195          (b) a church;
             196          (c) a public library;
             197          (d) a public playground; or


             198          (e) a public park.
             199          (22) "Community location governing authority" means:
             200          (a) the governing body of the community location; or
             201          (b) if the commission does not know who is the governing body of a community
             202      location, a person who appears to the commission to have been given on behalf of the
             203      community location the authority to prohibit an activity at the community location.
             204          (23) "Container" means a receptacle that contains an alcoholic product, including:
             205          (a) a bottle;
             206          (b) a vessel; or
             207          (c) a similar item.
             208          (24) "Convention center" means a facility that is:
             209          (a) in total at least 30,000 square feet; and
             210          (b) otherwise defined as a "convention center" by the commission by rule.
             211          (25) (a) Subject to Subsection (25)(b), "counter" means a surface or structure in a
             212      dining area of a licensed premises where seating is provided to a patron for service of food.
             213          (b) "Counter" does not include a surface or structure if on or at any point of the surface
             214      or structure an alcoholic product is:
             215          (i) stored; or
             216          (ii) dispensed.
             217          (26) "Department" means the Department of Alcoholic Beverage Control created in
             218      Section 32B-2-203 .
             219          (27) "Department compliance officer" means an individual who is:
             220          (a) an auditor or inspector; and
             221          (b) employed by the department.
             222          (28) "Department sample" means liquor that is placed in the possession of the
             223      department for testing, analysis, and sampling.
             224          (29) "Dining club license" means a license issued in accordance with Chapter 5, Retail
             225      License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as a


             226      dining club license.
             227          (30) "Director," unless the context requires otherwise, means the director of the
             228      department.
             229          (31) "Disciplinary proceeding" means an adjudicative proceeding permitted under this
             230      title:
             231          (a) against a person subject to administrative action; and
             232          (b) that is brought on the basis of a violation of this title.
             233          (32) (a) Subject to Subsection (32)(b), "dispense" means:
             234          (i) drawing of an alcoholic product:
             235          (A) from an area where it is stored; or
             236          (B) as provided in Subsection 32B-6-205 (12)(b)(ii), 32B-6-305 (12)(b)(ii),
             237      32B-6-805 (15)(b)(ii), or 32B-6-905 (12)(b)(ii); and
             238          (ii) using the alcoholic product described in Subsection (32)(a)(i) on the premises of
             239      the licensed premises to mix or prepare an alcoholic product to be furnished to a patron of the
             240      retail licensee.
             241          (b) The definition of "dispense" in this Subsection (32) applies only to:
             242          (i) a full-service restaurant license;
             243          (ii) a limited-service restaurant license;
             244          (iii) a reception center license; and
             245          (iv) a beer-only restaurant license.
             246          (33) "Distillery manufacturing license" means a license issued in accordance with
             247      Chapter 11, Part 4, Distillery Manufacturing License.
             248          (34) "Distressed merchandise" means an alcoholic product in the possession of the
             249      department that is saleable, but for some reason is unappealing to the public.
             250          (35) "Educational facility" includes:
             251          (a) a nursery school;
             252          (b) an infant day care center; and
             253          (c) a trade and technical school.


             254          (36) "Equity club license" means a license issued in accordance with Chapter 5, Retail
             255      License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as an
             256      equity club license.
             257          (37) "Event permit" means:
             258          (a) a single event permit; or
             259          (b) a temporary beer event permit.
             260          (38) "Exempt license" means a license exempt under Section 32B-1-201 from being
             261      considered in determining the total number of a retail license that the commission may issue at
             262      any time.
             263          (39) (a) "Flavored malt beverage" means a beverage:
             264          (i) that contains at least .5% alcohol by volume;
             265          (ii) that is treated by processing, filtration, or another method of manufacture that is not
             266      generally recognized as a traditional process in the production of a beer as described in 27
             267      C.F.R. Sec. 25.55;
             268          (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
             269      extract; and
             270          (iv) (A) for which the producer is required to file a formula for approval with the
             271      federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
             272          (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
             273          (b) "Flavored malt beverage" is considered liquor for purposes of this title.
             274          (40) "Fraternal club license" means a license issued in accordance with Chapter 5,
             275      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             276      as a fraternal club license.
             277          (41) "Full-service restaurant license" means a license issued in accordance with
             278      Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-service Restaurant License.
             279          (42) (a) "Furnish" means by any means to provide with, supply, or give an individual
             280      an alcoholic product, by sale or otherwise.
             281          (b) "Furnish" includes to:


             282          (i) serve;
             283          (ii) deliver; or
             284          (iii) otherwise make available.
             285          (43) "Guest" means an individual who meets the requirements of Subsection
             286      32B-6-407 (9).
             287          (44) "Health care practitioner" means:
             288          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
             289          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
             290          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
             291          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
             292      Act;
             293          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
             294      Nurse Practice Act;
             295          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
             296      Practice Act;
             297          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
             298      Therapy Practice Act;
             299          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
             300          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
             301      Professional Practice Act;
             302          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
             303          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
             304      Practice Act;
             305          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
             306      Hygienist Practice Act; and
             307          (m) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act.
             308          (45) (a) "Heavy beer" means a product that:
             309          (i) contains more than 4% alcohol by volume; and


             310          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             311          (b) "Heavy beer" is considered liquor for the purposes of this title.
             312          (46) "Hotel" is as defined by the commission by rule.
             313          (47) "Identification card" means an identification card issued under Title 53, Chapter 3,
             314      Part 8, Identification Card Act.
             315          (48) "Industry representative" means an individual who is compensated by salary,
             316      commission, or other means for representing and selling an alcoholic product of a
             317      manufacturer, supplier, or importer of liquor.
             318          (49) "Industry representative sample" means liquor that is placed in the possession of
             319      the department for testing, analysis, and sampling by a local industry representative on the
             320      premises of the department to educate the local industry representative of the quality and
             321      characteristics of the product.
             322          (50) "Interdicted person" means a person to whom the sale, offer for sale, or furnishing
             323      of an alcoholic product is prohibited by:
             324          (a) law; or
             325          (b) court order.
             326          (51) "Intoxicated" means that a person:
             327          (a) is significantly impaired as to the person's mental or physical functions as a result of
             328      the use of:
             329          (i) an alcoholic product;
             330          (ii) a controlled substance;
             331          (iii) a substance having the property of releasing toxic vapors; or
             332          (iv) a combination of Subsections (51)(a)(i) through (iii); and
             333          (b) exhibits plain and easily observed outward manifestations of behavior or physical
             334      signs produced by the over consumption of an alcoholic product.
             335          (52) "Investigator" means an individual who is:
             336          (a) a department compliance officer; or
             337          (b) a nondepartment enforcement officer.


             338          (53) "Invitee" is as defined in Section 32B-8-102 .
             339          (54) "License" means:
             340          (a) a retail license;
             341          (b) a license issued in accordance with Chapter 11, Manufacturing and Related
             342      Licenses Act;
             343          (c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
             344      or
             345          (d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act.
             346          (55) "Licensee" means a person who holds a license.
             347          (56) "Limited-service restaurant license" means a license issued in accordance with
             348      Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-service Restaurant License.
             349          (57) "Limousine" means a motor vehicle licensed by the state or a local authority, other
             350      than a bus or taxicab:
             351          (a) in which the driver and a passenger are separated by a partition, glass, or other
             352      barrier;
             353          (b) that is provided by a business entity to one or more individuals at a fixed charge in
             354      accordance with the business entity's tariff; and
             355          (c) to give the one or more individuals the exclusive use of the limousine and a driver
             356      to travel to one or more specified destinations.
             357          (58) (a) (i) "Liquor" means a liquid that:
             358          (A) is:
             359          (I) alcohol;
             360          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
             361          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
             362          (IV) other drink or drinkable liquid; and
             363          (B) (I) contains at least .5% alcohol by volume; and
             364          (II) is suitable to use for beverage purposes.
             365          (ii) "Liquor" includes:


             366          (A) heavy beer;
             367          (B) wine; and
             368          (C) a flavored malt beverage.
             369          (b) "Liquor" does not include beer.
             370          (59) "Liquor Control Fund" means the enterprise fund created by Section 32B-2-301 .
             371          (60) "Liquor warehousing license" means a license that is issued:
             372          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
             373          (b) to a person, other than a licensed manufacturer, who engages in the importation for
             374      storage, sale, or distribution of liquor regardless of amount.
             375          (61) "Local authority" means:
             376          (a) for premises that are located in an unincorporated area of a county, the governing
             377      body of a county; or
             378          (b) for premises that are located in an incorporated city or a town, the governing body
             379      of the city or town.
             380          (62) "Lounge or bar area" is as defined by rule made by the commission.
             381          (63) "Manufacture" means to distill, brew, rectify, mix, compound, process, ferment, or
             382      otherwise make an alcoholic product for personal use or for sale or distribution to others.
             383          (64) "Member" means an individual who, after paying regular dues, has full privileges
             384      in an equity club licensee or fraternal club licensee.
             385          (65) (a) "Military installation" means a base, air field, camp, post, station, yard, center,
             386      or homeport facility for a ship:
             387          (i) (A) under the control of the United States Department of Defense; or
             388          (B) of the National Guard;
             389          (ii) that is located within the state; and
             390          (iii) including a leased facility.
             391          (b) "Military installation" does not include a facility used primarily for:
             392          (i) civil works;
             393          (ii) a rivers and harbors project; or


             394          (iii) a flood control project.
             395          (66) "Minor" means an individual under the age of 21 years.
             396          (67) "Nondepartment enforcement agency" means an agency that:
             397          (a) (i) is a state agency other than the department; or
             398          (ii) is an agency of a county, city, or town; and
             399          (b) has a responsibility to enforce one or more provisions of this title.
             400          (68) "Nondepartment enforcement officer" means an individual who is:
             401          (a) a peace officer, examiner, or investigator; and
             402          (b) employed by a nondepartment enforcement agency.
             403          (69) (a) "Off-premise beer retailer" means a beer retailer who is:
             404          (i) licensed in accordance with Chapter 7, Part 2, Off-premise Beer Retailer Local
             405      Authority; and
             406          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
             407      premises.
             408          (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
             409          (70) "On-premise banquet license" means a license issued in accordance with Chapter
             410      5, Retail License Act, and Chapter 6, Part 6, On-premise Banquet License.
             411          (71) "On-premise beer retailer" means a beer retailer who is:
             412          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
             413      accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-premise Beer
             414      Retailer License; and
             415          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
             416      premises:
             417          (i) regardless of whether the beer retailer sells beer for consumption off the licensed
             418      premises; and
             419          (ii) on and after March 1, 2012, operating:
             420          (A) as a tavern; or
             421          (B) in a manner that meets the requirements of Subsection 32B-6-703 (2)(e)(i).


             422          (72) "Opaque" means impenetrable to sight.
             423          (73) "Package agency" means a retail liquor location operated:
             424          (a) under an agreement with the department; and
             425          (b) by a person:
             426          (i) other than the state; and
             427          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
             428      Agency, to sell packaged liquor for consumption off the premises of the package agency.
             429          (74) "Package agent" means a person who holds a package agency.
             430          (75) "Patron" means an individual to whom food, beverages, or services are sold,
             431      offered for sale, or furnished, or who consumes an alcoholic product including:
             432          (a) a customer;
             433          (b) a member;
             434          (c) a guest;
             435          (d) an attendee of a banquet or event;
             436          (e) an individual who receives room service;
             437          (f) a resident of a resort;
             438          (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102 ;
             439      or
             440          (h) an invitee.
             441          (76) "Permittee" means a person issued a permit under:
             442          (a) Chapter 9, Event Permit Act; or
             443          (b) Chapter 10, Special Use Permit Act.
             444          (77) "Person subject to administrative action" means:
             445          (a) a licensee;
             446          (b) a permittee;
             447          (c) a manufacturer;
             448          (d) a supplier;
             449          (e) an importer;


             450          (f) one of the following holding a certificate of approval:
             451          (i) an out-of-state brewer;
             452          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
             453          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
             454          (g) staff of:
             455          (i) a person listed in Subsections (77)(a) through (f); or
             456          (ii) a package agent.
             457          (78) "Premises" means a building, enclosure, or room used in connection with the
             458      storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic product,
             459      unless otherwise defined in this title or rules made by the commission.
             460          (79) "Prescription" means an order issued by a health care practitioner when:
             461          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
             462      to prescribe a controlled substance, other drug, or device for medicinal purposes;
             463          (b) the order is made in the course of that health care practitioner's professional
             464      practice; and
             465          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
             466          (80) (a) "Private event" means a specific social, business, or recreational event:
             467          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
             468      group; and
             469          (ii) that is limited in attendance to people who are specifically designated and their
             470      guests.
             471          (b) "Private event" does not include an event to which the general public is invited,
             472      whether for an admission fee or not.
             473          (81) (a) "Proof of age" means:
             474          (i) an identification card;
             475          (ii) an identification that:
             476          (A) is substantially similar to an identification card;
             477          (B) is issued in accordance with the laws of a state other than Utah in which the


             478      identification is issued;
             479          (C) includes date of birth; and
             480          (D) has a picture affixed;
             481          (iii) a valid driver license certificate that:
             482          (A) includes date of birth;
             483          (B) has a picture affixed; and
             484          (C) is issued:
             485          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
             486          (II) in accordance with the laws of the state in which it is issued;
             487          (iv) a military identification card that:
             488          (A) includes date of birth; and
             489          (B) has a picture affixed; or
             490          (v) a valid passport.
             491          (b) "Proof of age" does not include a driving privilege card issued in accordance with
             492      Section 53-3-207 .
             493          (82) (a) "Public building" means a building or permanent structure that is:
             494          (i) owned or leased by:
             495          (A) the state; or
             496          (B) a local government entity; and
             497          (ii) used for:
             498          (A) public education;
             499          (B) transacting public business; or
             500          (C) regularly conducting government activities.
             501          (b) "Public building" does not include a building owned by the state or a local
             502      government entity when the building is used by a person, in whole or in part, for a proprietary
             503      function.
             504          (83) "Public conveyance" means a conveyance to which the public or a portion of the
             505      public has access to and a right to use for transportation, including an airline, railroad, bus,


             506      boat, or other public conveyance.
             507          (84) "Reception center" means a business that:
             508          (a) operates facilities that are at least 5,000 square feet; and
             509          (b) has as its primary purpose the leasing of the facilities described in Subsection
             510      (84)(a) to a third party for the third party's event.
             511          (85) "Reception center license" means a license issued in accordance with Chapter 5,
             512      Retail License Act, and Chapter 6, Part 8, Reception Center License.
             513          (86) (a) "Record" means information that is:
             514          (i) inscribed on a tangible medium; or
             515          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
             516          (b) "Record" includes:
             517          (i) a book;
             518          (ii) a book of account;
             519          (iii) a paper;
             520          (iv) a contract;
             521          (v) an agreement;
             522          (vi) a document; or
             523          (vii) a recording in any medium.
             524          (87) "Residence" means a person's principal place of abode within Utah.
             525          (88) "Resident," in relation to a resort, is as defined in Section 32B-8-102 .
             526          (89) "Resort" is as defined in Section 32B-8-102 .
             527          (90) "Resort facility" is as defined by the commission by rule.
             528          (91) "Resort license" means a license issued in accordance with Chapter 5, Retail
             529      License Act, and Chapter 8, Resort License Act.
             530          (92) "Restaurant" means a business location:
             531          (a) at which a variety of foods are prepared;
             532          (b) at which complete meals are served to the general public; and
             533          (c) that is engaged primarily in serving meals to the general public.


             534          (93) "Retail license" means one of the following licenses issued under this title:
             535          (a) a full-service restaurant license;
             536          (b) a master full-service restaurant license;
             537          [(b)] (c) a limited-service restaurant license;
             538          (d) a master limited-service restaurant license;
             539          [(c)] (e) a club license;
             540          [(d)] (f) an airport lounge license;
             541          [(e)] (g) an on-premise banquet license;
             542          [(f)] (h) an on-premise beer license;
             543          [(g)] (i) a reception center license; or
             544          [(h)] (j) a beer-only restaurant license.
             545          (94) "Room service" means furnishing an alcoholic product to a person in a guest room
             546      of a:
             547          (a) hotel; or
             548          (b) resort facility.
             549          (95) "Serve" means to place an alcoholic product before an individual.
             550          (96) (a) "School" means a building used primarily for the general education of minors.
             551          (b) "School" does not include an educational facility.
             552          (97) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby, for
             553      consideration, an alcoholic product is either directly or indirectly transferred, solicited, ordered,
             554      delivered for value, or by a means or under a pretext is promised or obtained, whether done by
             555      a person as a principal, proprietor, or as staff, unless otherwise defined in this title or the rules
             556      made by the commission.
             557          (98) "Sexually oriented entertainer" means a person who while in a state of seminudity
             558      appears at or performs:
             559          (a) for the entertainment of one or more patrons;
             560          (b) on the premises of:
             561          (i) a social club licensee; or


             562          (ii) a tavern;
             563          (c) on behalf of or at the request of the licensee described in Subsection (98)(b);
             564          (d) on a contractual or voluntary basis; and
             565          (e) whether or not the person is designated as:
             566          (i) an employee;
             567          (ii) an independent contractor;
             568          (iii) an agent of the licensee; or
             569          (iv) a different type of classification.
             570          (99) "Single event permit" means a permit issued in accordance with Chapter 9, Part 3,
             571      Single Event Permit.
             572          (100) "Small brewer" means a brewer who manufactures less than 60,000 barrels of
             573      beer, heavy beer, and flavored malt beverages per year.
             574          (101) "Social club license" means a license issued in accordance with Chapter 5, Retail
             575      License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as a
             576      social club license.
             577          (102) "Special use permit" means a permit issued in accordance with Chapter 10,
             578      Special Use Permit Act.
             579          (103) (a) "Spirituous liquor" means liquor that is distilled.
             580          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
             581      27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
             582          (104) "Sports center" is as defined by the commission by rule.
             583          (105) (a) "Staff" means an individual who engages in activity governed by this title:
             584          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
             585      holder;
             586          (ii) at the request of the business, including a package agent, licensee, permittee, or
             587      certificate holder; or
             588          (iii) under the authority of the business, including a package agent, licensee, permittee,
             589      or certificate holder.


             590          (b) "Staff" includes:
             591          (i) an officer;
             592          (ii) a director;
             593          (iii) an employee;
             594          (iv) personnel management;
             595          (v) an agent of the licensee, including a managing agent;
             596          (vi) an operator; or
             597          (vii) a representative.
             598          (106) "State of nudity" means:
             599          (a) the appearance of:
             600          (i) the nipple or areola of a female human breast;
             601          (ii) a human genital;
             602          (iii) a human pubic area; or
             603          (iv) a human anus; or
             604          (b) a state of dress that fails to opaquely cover:
             605          (i) the nipple or areola of a female human breast;
             606          (ii) a human genital;
             607          (iii) a human pubic area; or
             608          (iv) a human anus.
             609          (107) "State of seminudity" means a state of dress in which opaque clothing covers no
             610      more than:
             611          (a) the nipple and areola of the female human breast in a shape and color other than the
             612      natural shape and color of the nipple and areola; and
             613          (b) the human genitals, pubic area, and anus:
             614          (i) with no less than the following at its widest point:
             615          (A) four inches coverage width in the front of the human body; and
             616          (B) five inches coverage width in the back of the human body; and
             617          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.


             618          (108) (a) "State store" means a facility for the sale of packaged liquor:
             619          (i) located on premises owned or leased by the state; and
             620          (ii) operated by a state employee.
             621          (b) "State store" does not include:
             622          (i) a package agency;
             623          (ii) a licensee; or
             624          (iii) a permittee.
             625          (109) (a) "Storage area" means an area on licensed premises where the licensee stores
             626      an alcoholic product.
             627          (b) "Store" means to place or maintain in a location an alcoholic product from which a
             628      person draws to prepare an alcoholic product to be furnished to a patron, except as provided in
             629      Subsection 32B-6-205 (12)(b)(ii), 32B-6-305 (12)(b)(ii), 32B-6-805 (15)(b)(ii), or
             630      32B-6-905 (12)(b)(ii).
             631          (110) "Sublicense" is as defined in Section 32B-8-102 .
             632          (111) "Supplier" means a person who sells an alcoholic product to the department.
             633          (112) "Tavern" means an on-premise beer retailer who is:
             634          (a) issued a license by the commission in accordance with Chapter 5, Retail License
             635      Act, and Chapter 6, Part 7, On-premise Beer Retailer License; and
             636          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
             637      On-premise Beer Retailer License.
             638          (113) "Temporary beer event permit" means a permit issued in accordance with
             639      Chapter 9, Part 4, Temporary Beer Event Permit.
             640          (114) "Temporary domicile" means the principal place of abode within Utah of a
             641      person who does not have a present intention to continue residency within Utah permanently or
             642      indefinitely.
             643          (115) "Translucent" means a substance that allows light to pass through, but does not
             644      allow an object or person to be seen through the substance.
             645          (116) "Unsaleable liquor merchandise" means a container that:


             646          (a) is unsaleable because the container is:
             647          (i) unlabeled;
             648          (ii) leaky;
             649          (iii) damaged;
             650          (iv) difficult to open; or
             651          (v) partly filled;
             652          (b) (i) has faded labels or defective caps or corks;
             653          (ii) has contents that are:
             654          (A) cloudy;
             655          (B) spoiled; or
             656          (C) chemically determined to be impure; or
             657          (iii) contains:
             658          (A) sediment; or
             659          (B) a foreign substance; or
             660          (c) is otherwise considered by the department as unfit for sale.
             661          (117) (a) "Wine" means an alcoholic product obtained by the fermentation of the
             662      natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
             663      another ingredient is added.
             664          (b) "Wine" is considered liquor for purposes of this title, except as otherwise provided
             665      in this title.
             666          (118) "Winery manufacturing license" means a license issued in accordance with
             667      Chapter 11, Part 3, Winery Manufacturing License.
             668          Section 2. Section 32B-1-201 is amended to read:
             669           32B-1-201. Restrictions on number of retail licenses that may be issued --
             670      Determining population -- Exempt licenses.
             671          (1) As used in this section:
             672          (a) "Alcohol-related law enforcement officer" means a law enforcement officer
             673      employed by the Department of Public Safety that has as a primary responsibility:


             674          (i) the enforcement of this title; or
             675          (ii) the enforcement of Title 41, Chapter 6a, Part 5, Driving Under the Influence and
             676      Reckless Driving.
             677          (b) "Enforcement ratio" is the number calculated as follows:
             678          (i) determine the quotient equal to the sum of the total number of quota retail licenses
             679      available and the total number of licensed premises operating under a master full-service
             680      restaurant license or under a master limited-service restaurant license divided by the total
             681      number of alcohol-related law enforcement officers; and
             682          (ii) round the number determined in accordance with Subsection (1)(b)[(ii)](i) up to the
             683      nearest whole number.
             684          (c) "Quota retail license" means:
             685          (i) a full-service restaurant license;
             686          (ii) a limited-service restaurant license;
             687          (iii) a club license;
             688          (iv) an on-premise banquet license;
             689          (v) an on-premise beer retailer operating as a tavern; and
             690          (vi) a reception center license.
             691          (d) "Total number of alcohol-related law enforcement officers" means the total number
             692      of positions designated as alcohol-related law enforcement officers that are funded as of a
             693      specified date as certified by the Department of Public Safety to the department.
             694          (e) "Total number of quota retail licenses available" means the number calculated by:
             695          (i) determining as of a specified date for each quota retail license the number of
             696      licenses that the commission may not exceed calculated by dividing the population of the state
             697      by the number specified in the relevant provision for the quota retail license; and
             698          (ii) adding together the numbers determined under Subsection (1)[(d)](e)(i).
             699          (2) (a) Beginning on July 1, 2012, the department shall annually determine the
             700      enforcement ratio as of July 1 of that year.
             701          (b) If, beginning on July 1, 2012, the enforcement ratio is greater than 52, the


             702      commission may not issue a quota retail license for the 12-month period beginning on the July
             703      1 for which the enforcement ratio is greater than 52.
             704          (c) Notwithstanding Subsection (2)(b), the commission may issue a quota retail license
             705      during the 12-month period described in Subsection (2)(b) beginning on the day on which a
             706      sufficient number of alcohol-related law enforcement officers are employed so that if the
             707      enforcement ratio is calculated, the enforcement ratio would be equal to or less than 52.
             708          (d) Once the Department of Public Safety certifies under Subsection (1)(d) the total
             709      number of positions designated as alcohol-related law enforcement officers that are funded as
             710      of July 1, the Department of Public Safety may not use the funding for the designated
             711      alcohol-related law enforcement officers for a purpose other than funding those positions.
             712          (3) For purposes of determining the number of state stores that the commission may
             713      establish or the number of package agencies or retail licenses that the commission may issue,
             714      the commission shall determine population by:
             715          (a) the most recent United States decennial or special census; or
             716          (b) another population determination made by the United States or state governments.
             717          (4) The commission may not consider a retail license that meets the following
             718      conditions in determining the total number of licenses available for that type of retail license
             719      that the commission may issue at any time:
             720          (a) the retail license was issued to a club licensee designated as a dining club as of July
             721      1, 2011; and
             722          (b) the dining club license is converted to another type of retail license in accordance
             723      with Section 32B-6-409 .
             724          Section 3. Section 32B-2-202 is amended to read:
             725           32B-2-202. Powers and duties of the commission.
             726          (1) The commission shall:
             727          (a) consistent with the policy established by the Legislature by statute, act as a general
             728      policymaking body on the subject of alcoholic product control;
             729          (b) adopt and issue policies, rules, and procedures;


             730          (c) set policy by written rules that establish criteria and procedures for:
             731          (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
             732      permit, or certificate of approval; and
             733          (ii) determining the location of a state store, package agency, or retail licensee;
             734          (d) decide within the limits, and under the conditions imposed by this title, the number
             735      and location of state stores, package agencies, and retail licensees in the state;
             736          (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
             737      permits, or certificates of approval for the purchase, storage, sale, offer for sale, furnishing,
             738      consumption, manufacture, and distribution of an alcoholic product:
             739          (i) a package agency;
             740          (ii) a full-service restaurant license;
             741          (iii) a master full-service restaurant license;
             742          [(iii)] (iv) a limited-service restaurant license;
             743          (v) a master limited-service restaurant license;
             744          [(iv)] (vi) a club license;
             745          [(v)] (vii) an airport lounge license;
             746          [(vi)] (viii) an on-premise banquet license;
             747          [(vii)] (ix) a resort license, under which four or more sublicenses may be included;
             748          [(viii)] (x) an on-premise beer retailer license;
             749          [(ix)] (xi) a reception center license;
             750          [(x)] (xii) a beer-only restaurant license;
             751          [(xi)] (xiii) subject to Subsection (4), a single event permit;
             752          [(xii)] (xiv) subject to Subsection (4), a temporary beer event permit;
             753          [(xiii)] (xv) a special use permit;
             754          [(xiv)] (xvi) a manufacturing license;
             755          [(xv)] (xvii) a liquor warehousing license;
             756          [(xvi)] (xviii) a beer wholesaling license; and
             757          [(xvii)] (xix) one of the following that holds a certificate of approval:


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


             786          (n) prescribe the conduct, management, and equipment of premises upon which an
             787      alcoholic product may be stored, sold, offered for sale, furnished, or consumed;
             788          (o) make rules governing the credit terms of beer sales within the state to retail
             789      licensees; and
             790          (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
             791      disciplinary action against a person subject to administrative action.
             792          (2) Consistent with the policy established by the Legislature by statute, the power of
             793      the commission to do the following is plenary, except as otherwise provided by this title, and
             794      not subject to review:
             795          (a) establish a state store;
             796          (b) issue authority to act as a package agent or operate a package agency; and
             797          (c) issue or deny a license, permit, or certificate of approval.
             798          (3) If the commission is authorized or required to make a rule under this title, the
             799      commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
             800      Rulemaking Act.
             801          (4) Notwithstanding Subsections (1)(e)[(xi)](xiii) and [(xii)] (xiv), the director or
             802      deputy director may issue an event permit in accordance with Chapter 9, Event Permit Act.
             803          Section 4. Section 32B-2-301 is amended to read:
             804           32B-2-301. State property -- Liquor Control Fund -- Markup Holding Fund.
             805          (1) The following are property of the state:
             806          (a) the money received in the administration of this title, except as otherwise provided;
             807      and
             808          (b) property acquired, administered, possessed, or received by the department.
             809          (2) (a) There is created an enterprise fund known as the "Liquor Control Fund."
             810          (b) Except as provided in Sections 32B-3-205 and 32B-2-304 , money received in the
             811      administration of this title shall be transferred to the Liquor Control Fund.
             812          (3) (a) There is created an enterprise fund known as the "Markup Holding Fund."
             813          (b) In accordance with Section 32B-2-304 , the State Tax Commission shall deposit


             814      revenue remitted to the State Tax Commission from the markup imposed under Section
             815      32B-2-304 into the Markup Holding Fund.
             816          (c) Money deposited into the Markup Holding Fund may be expended:
             817          (i) to the extent appropriated by the Legislature; and
             818          (ii) to fund the deposits required by Subsection 32B-2-304 (4) and Subsection
             819      32B-2-305 (4).
             820          [(4) The state treasurer shall by warrant draw from the Liquor Control Fund and, to the
             821      extent appropriated by the Legislature, from the Markup Holding Fund, the expenses, debts,
             822      and liabilities incurred by the department in connection with the administration of this title or
             823      any other expense necessary for the administration of this title, including:]
             824          [(a) salaries;]
             825          [(b) premiums, if any, on a bond for which the department pays premiums; and]
             826          [(c) an expenditure incurred in establishing, operating, or maintaining a state store or
             827      package agency.]
             828          (4) The department may draw from the Liquor Control Fund only to the extent
             829      appropriated by the Legislature or provided for by statute, except that the department may draw
             830      by warrant without an appropriation from the Liquor Control Fund for an expenditure that is
             831      directly incurred by the department:
             832          (a) to purchase an alcoholic product;
             833          (b) to transport an alcoholic product from the supplier to a warehouse of the
             834      department; and
             835          (c) for variances related to an alcoholic product.
             836          (5) The department shall transfer annually from the Liquor Control Fund and the State
             837      Tax Commission shall transfer annually from the Markup Holding Fund to the General Fund a
             838      sum equal to the amount of net profit earned from the sale of liquor since the preceding transfer
             839      of money under this Subsection (5). The transfers shall be calculated by no later than
             840      September 1 and made by no later than September 30 after a fiscal year. The Division of
             841      Finance may make year-end closing entries in the Liquor Control Fund and the Markup


             842      Holding Fund in order to comply with Subsection 51-5-6 (2).
             843          (6) (a) By the end of each day, the department shall:
             844          (i) make a deposit to a qualified depository, as defined in Section 51-7-3 ; and
             845          (ii) report the deposit to the state treasurer.
             846          (b) A commissioner or department employee is not personally liable for a loss caused
             847      by the default or failure of a qualified depository.
             848          (c) Money deposited in a qualified depository is entitled to the same priority of
             849      payment as other public funds of the state.
             850          (7) If the cash balance of the Liquor Control Fund is not adequate to cover a warrant
             851      drawn against the Liquor Control Fund by the [state treasurer] department, the cash resources
             852      of the General Fund may be used to the extent necessary. At no time may the fund equity of
             853      the Liquor Control Fund fall below zero.
             854          Section 5. Section 32B-2-302 is amended to read:
             855           32B-2-302. Exempt from Division of Finance -- Application of procurement --
             856      External audits.
             857          (1) (a) The laws that govern the Division of Finance are not applicable to the
             858      department in the purchase and sale of an alcoholic product.
             859          (b) The department is exempt from Title 63G, Chapter 6, Utah Procurement Code, for
             860      the purchase of an alcoholic product. The department is subject to Title 63G, Chapter 6, Utah
             861      Procurement Code, for any purchase other than for an alcoholic product.
             862          (2) The state auditor shall:
             863          (a) [select a private person to] annually perform a financial audit of the department's
             864      accounts[, subject to the commission approving the private person selected to perform the
             865      financial audit]; and
             866          [(b) notify the governor of the private person selected to perform the financial audit;
             867      and]
             868          [(c)] (b) determine the scope and focus of the financial audit in an open meeting of the
             869      commission before the audit commences.


             870          (3) Every two years, beginning for fiscal year 2013-14, the state auditor shall conduct
             871      an audit of the department's:
             872          (a) management operations, best practices, and efficiency; and
             873          (b) ethics and statutory compliance.
             874          (4) In addition to complying with Subsections (2) and (3), the state auditor may engage
             875      in an activity related to the department or commission allowed under Utah Constitution, Article
             876      VII, Section 15 or Title 67, Chapter 3, Auditor.
             877          (5) The [commission] state auditor shall forward an audit report issued under
             878      Subsection (2) or (3) to the following by no later than 30 days after the day on which the audit
             879      report is made:
             880          (a) the governor;
             881          (b) the Legislative Management Committee;
             882          (c) the director; and
             883          (d) the legislative auditor general.
             884          Section 6. Section 32B-5-205 is amended to read:
             885           32B-5-205. Conditional retail license.
             886          (1) As used in this section:
             887          (a) "Conditional retail license" means a retail license that:
             888          [(i) is for one of the following:]
             889          [(A) a full-service restaurant license; or]
             890          [(B) a limited-service restaurant license;]
             891          [(ii)] (i) conditions the holder's ability to sell, offer for sale, furnish, or allow the
             892      consumption of an alcoholic product on its licensed premises on the person submitting to the
             893      department a copy of the holder's current business license before obtaining a valid retail
             894      license; and
             895          [(iii)] (ii) provides that the holder will be issued a valid retail license if the holder
             896      complies with the requirements of Subsection (3).
             897          (b) "Valid retail license" means a retail license issued pursuant to this part under which


             898      the holder is permitted to sell, offer for sale, furnish, or allow the consumption of an alcoholic
             899      product on its licensed premises.
             900          (2) Subject to the requirements of this section, the commission may issue a conditional
             901      retail license to a person if the person:
             902          (a) meets the requirements to obtain the retail license for which the person is applying
             903      except the requirement to submit a copy of the person's current business license; and
             904          (b) agrees not to sell, offer for sale, furnish, or allow the consumption of an alcoholic
             905      product on its licensed premises before obtaining a valid retail license.
             906          (3) (a) A conditional retail license becomes a valid retail license on the day on which
             907      the department notifies the person who holds the conditional retail license that the department
             908      finds that the person has complied with Subsection (3)(b).
             909          (b) For a conditional retail license to become a valid retail license, a person who holds
             910      the conditional retail license shall:
             911          (i) submit to the department a copy of the person's current business license; and
             912          (ii) provide to the department evidence satisfactory to the department that:
             913          (A) there has been no change in the information submitted to the commission as part of
             914      the person's application for a retail license; and
             915          (B) the person continues to qualify for the retail license.
             916          (4) (a) A conditional retail license expires [six] nine months after the day on which the
             917      commission issues the conditional retail license, unless the conditional retail license becomes a
             918      valid retail license before that day.
             919          (b) Notwithstanding Subsection (4)(a), the commission may extend the time period of a
             920      conditional retail license an additional three months if the holder of the conditional license can
             921      show to the satisfaction of the commission that the holder of the conditional license:
             922          (i) has an active building permit related to the licensed premises; and
             923          (ii) is engaged in a good faith effort to pursue completion within the three-month
             924      period.
             925          Section 7. Section 32B-6-206 is enacted to read:


             926          32B-6-206. Master full-service restaurant license.
             927          (1) (a) The commission may issue a master full-service restaurant license that
             928      authorizes a person to store, sell, offer for sale, furnish, or allow the consumption of an
             929      alcoholic product on premises at multiple locations as full-service restaurants if the person
             930      applying for the master full-service restaurant license:
             931          (i) owns each of the full-service restaurants;
             932          (ii) except for the fee requirements, establishes to the satisfaction of the commission
             933      that each location of a full-service restaurant under the master full-service restaurant license
             934      separately meets the requirements of this part; and
             935          (iii) the master full-service restaurant license includes at least five full-service
             936      restaurant locations.
             937          (b) The person seeking a master full-service restaurant license shall designate which
             938      full-service restaurant locations the person seeks to have under the master full-service
             939      restaurant license.
             940          (c) A full-service restaurant location under a master full-service restaurant license is
             941      considered separately licensed for purposes of this title, except as provided in this section.
             942          (2) A master full-service restaurant license and each location designated under
             943      Subsection (1) are considered a single full-service restaurant license for purposes of Subsection
             944      32B-6-203 (3)(a).
             945          (3) (a) A master full-service restaurant license expires on October 31 of each year.
             946          (b) To renew a person's full-service restaurant license, a person shall comply with the
             947      renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
             948      September 30.
             949          (4) (a) The nonrefundable application fee for a master full-service restaurant license is
             950      $330.
             951          (b) The initial license fee for a master full-service restaurant license is $10,000 plus a
             952      separate initial license fee for each newly licensed full-service restaurant license under the
             953      master full-service restaurant license determined in accordance with Subsection


             954      32B-6-204 (3)(b).
             955          (c) The renewal fee for a master full-service restaurant license is $1,000 plus a separate
             956      renewal fee for each full-service license under the master full-service restaurant license
             957      determined in accordance with Subsection 32B-6-204 (3)(c).
             958          (5) A new location may be added to a master full-service restaurant license after the
             959      master full-service restaurant license is issued if:
             960          (a) the master full-service restaurant licensee pays a nonrefundable application fee of
             961      $330; and
             962          (b) including payment of the initial license fee, the location separately meets the
             963      requirements of this part.
             964          (6) (a) A master full-service restaurant licensee shall notify the department of a change
             965      in the persons managing a location covered by a master full-service restaurant license:
             966          (i) immediately, if the management personnel is not management personnel at a
             967      location covered by the master full-service restaurant licensee at the time of the change; or
             968          (ii) within 30 days of the change, if the master full-service restaurant licensee is
             969      transferring management personnel from one location to another location covered by the master
             970      full-service restaurant licensee.
             971          (b) A location covered by a master full-service restaurant license shall keep its own
             972      records on its premises so that the department may audit the records.
             973          (c) A master full-service restaurant licensee may not transfer alcoholic products
             974      between different locations covered by the master full-service restaurant license.
             975          (7) (a) If there is a violation of this title at a location covered by a master full-service
             976      restaurant license, the violation may result in disciplinary action in accordance with Chapter 3,
             977      Disciplinary Actions and Enforcement Act, against:
             978          (i) the single location under a master full-service restaurant license;
             979          (ii) individual staff of the location under the master full-service restaurant license; or
             980          (iii) a combination of persons or locations described in Subsections (7)(a)(i) and (ii).
             981          (b) In addition to disciplinary action under Subsection (7)(a), disciplinary action in


             982      accordance with Chapter 3, Disciplinary Actions and Enforcement Act, may be taken against a
             983      master full-service restaurant licensee or individual staff of the master full-service restaurant
             984      licensee if during a period beginning on November 1 and ending October 31:
             985          (i) at least 25% of the locations covered by the master full-service restaurant license
             986      have been found by the commission to have committed a serious or grave violation of this title,
             987      as defined by rule made by the commission; or
             988          (ii) at least 50% of the locations covered by the master full-service restaurant license
             989      have been found by the commission to have violated this title.
             990          (8) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah
             991      Administrative Rulemaking Act, to establish how a person may apply for a master full-service
             992      restaurant license under this section.
             993          Section 8. Section 32B-6-306 is enacted to read:
             994          32B-6-306. Master limited-service restaurant license.
             995          (1) (a) The commission may issue a master limited-service restaurant license that
             996      authorizes a person to store, sell, offer for sale, furnish, or allow the consumption of an
             997      alcoholic product on premises at multiple locations as limited-service restaurants if the person
             998      applying for the master limited-service restaurant license:
             999          (i) owns each of the limited-service restaurants;
             1000          (ii) except for the fee requirements, establishes to the satisfaction of the commission
             1001      that each location of a limited-service restaurant under the master limited-service restaurant
             1002      license separately meets the requirements of this part; and
             1003          (iii) the master limited-service restaurant includes at least five limited-service
             1004      restaurant locations.
             1005          (b) The person seeking a master limited-service restaurant license shall designate
             1006      which limited-service restaurant locations the person seeks to have under the master
             1007      limited-service restaurant license.
             1008          (c) A limited-service restaurant location under a master limited-service restaurant
             1009      license is considered separately licensed for purposes of this title, except as provided in this


             1010      section.
             1011          (2) A master limited-service restaurant license and each location under Subsection (1)
             1012      are considered a single limited-service restaurant license for purposes of Subsection
             1013      32B-6-303 (3)(a).
             1014          (3) (a) A master limited-service restaurant license expires on October 31 of each year.
             1015          (b) To renew a person's master limited-service restaurant license, a person shall comply
             1016      with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
             1017      September 30.
             1018          (4) (a) The nonrefundable application fee for a master limited-service restaurant license
             1019      is $330.
             1020          (b) The initial license fee for a master limited-service restaurant license is $5,000 plus
             1021      a separate initial license fee for each newly licensed limited-service restaurant license under the
             1022      master limited-service restaurant license determined in accordance with Subsection
             1023      32B-6-304 (3)(b).
             1024          (c) The renewal fee for a master limited-service restaurant license is $500 plus a
             1025      separate renewal fee for each limited-service license under the master limited-service restaurant
             1026      license determined in accordance with Subsection 32B-6-304 (3)(c).
             1027          (5) A new location may be added to a master limited-service restaurant license after the
             1028      master limited-service restaurant license is issued if:
             1029          (a) the master limited-service restaurant licensee pays a nonrefundable application fee
             1030      of $330; and
             1031          (b) including payment of the initial license fee, the location separately meets the
             1032      requirements of this part.
             1033          (6) (a) A master limited-service restaurant licensee shall notify the department of a
             1034      change in the persons managing a location covered by a master limited-service restaurant
             1035      license:
             1036          (i) immediately, if the management personnel is not management personnel at a
             1037      location covered by the master limited-service restaurant licensee at the time of the change; or


             1038          (ii) within 30 days of the change, if the master limited-service restaurant licensee is
             1039      transferring management personnel from one location to another location covered by the master
             1040      limited-service restaurant licensee.
             1041          (b) A location covered by a master limited-service restaurant license shall keep its own
             1042      records on its premises so that the department may audit the records.
             1043          (c) A master limited-service restaurant licensee may not transfer alcoholic products
             1044      between different locations covered by the master limited-service restaurant license.
             1045          (7) (a) If there is a violation of this title at a location covered by a master
             1046      limited-service restaurant license, the violation may result in disciplinary action in accordance
             1047      with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             1048          (i) the single location under a master limited-service restaurant license;
             1049          (ii) individual staff of the location under the master limited-service restaurant license;
             1050      or
             1051          (iii) a combination of persons or locations described in Subsections (7)(a)(i) and (ii).
             1052          (b) In addition to disciplinary action under Subsection (7)(a), disciplinary action in
             1053      accordance with Chapter 3, Disciplinary Actions and Enforcement Act, may be taken against a
             1054      master limited-service restaurant licensee or individual staff of the master limited-service
             1055      restaurant licensee if during a period beginning on November 1 and ending October 31:
             1056          (i) at least 25% of the locations covered by the master limited-service restaurant license
             1057      have been found by the commission to have committed a serious or grave violation of this title,
             1058      as defined by rule made by the commission; or
             1059          (ii) at least 50% of the locations covered by the master limited-service restaurant
             1060      license have been found by the commission to have violated this title.
             1061          (8) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah
             1062      Administrative Rulemaking Act, to establish how a person may apply for a master
             1063      limited-service restaurant license under this section.
             1064          Section 9. Section 32B-6-407 is amended to read:
             1065           32B-6-407. Specific operational requirements for equity club license or fraternal


             1066      club license.
             1067          (1) For purposes of this section only:
             1068          (a) "Club licensee" means an equity club licensee or fraternal club licensee.
             1069          (b) "Club licensee" does not include a dining club licensee or social club licensee.
             1070          (2) (a) A club licensee shall have a governing body that:
             1071          (i) consists of three or more members of the club; and
             1072          (ii) holds regular meetings to:
             1073          (A) review membership applications; and
             1074          (B) conduct other business as required by the bylaws or house rules of the club.
             1075          (b) (i) A club licensee shall maintain a minute book that is posted currently by the club
             1076      licensee.
             1077          (ii) The minute book required by this Subsection (2) shall contain the minutes of a
             1078      regular or special meeting of the governing body.
             1079          (3) A club licensee may admit an individual as a member only on written application
             1080      signed by the person, subject to:
             1081          (a) the person paying an application fee; and
             1082          (b) investigation, vote, and approval of a quorum of the governing body.
             1083          (4) A club licensee shall:
             1084          (a) record an admission of a member in the official minutes of a regular meeting of the
             1085      governing body; and
             1086          (b) whether approved or disapproved, file an application as a part of the official records
             1087      of the club licensee.
             1088          (5) The spouse of a member of a club licensee has the rights and privileges of the
             1089      member:
             1090          (a) to the extent permitted by the bylaws or house rules of the club licensee; and
             1091          (b) except to the extent restricted by this title.
             1092          (6) A minor child of a member of a club licensee has the rights and privileges of the
             1093      member:


             1094          (a) to the extent permitted by the bylaws or house rules of the club licensee; and
             1095          (b) except to the extent restricted by this title.
             1096          (7) A club licensee shall maintain:
             1097          (a) a current and complete membership record showing:
             1098          (i) the date of application of a proposed member;
             1099          (ii) a member's address;
             1100          (iii) the date the governing body approved a member's admission;
             1101          (iv) the date initiation fees and dues are assessed and paid; and
             1102          (v) the serial number of the membership card issued to a member;
             1103          (b) a membership list; and
             1104          (c) a current record indicating when a member is removed as a member or resigns.
             1105          (8) (a) A club licensee shall have bylaws or house rules that include provisions
             1106      respecting the following:
             1107          (i) standards of eligibility for members;
             1108          (ii) limitation of members, consistent with the nature and purpose of the club;
             1109          (iii) the period for which dues are paid, and the date upon which the period expires;
             1110          (iv) provisions for removing a member from the club membership for the nonpayment
             1111      of dues or other cause;
             1112          (v) provisions for guests; and
             1113          (vi) application fees and membership dues.
             1114          (b) A club licensee shall maintain a current copy of the club licensee's current bylaws
             1115      and current house rules.
             1116          (c) A club licensee shall maintain its bylaws or house rules, and any amendments to
             1117      those records, on file with the department at all times.
             1118          (9) A club licensee may, in its discretion, allow an individual to be admitted to or use
             1119      the club licensed premises as a guest subject to the following conditions:
             1120          (a) the individual is allowed to use the club licensee premises only to the extent
             1121      permitted by the club licensee's bylaws or house rules;


             1122          (b) the individual shall be previously authorized by a member of the club who agrees to
             1123      host the individual as a guest into the club;
             1124          (c) the individual has only those privileges derived from the individual's host for the
             1125      duration of the individual's visit to the club licensee premises; and
             1126          (d) a club licensee or staff of the club licensee may not enter into an agreement or
             1127      arrangement with a club member to indiscriminately host a member of the general public into
             1128      the club licensee premises as a guest.
             1129          (10) Notwithstanding Subsection (9), an individual may be allowed as a guest in a club
             1130      licensed premises without a host if:
             1131          (a) (i) the club licensee is an equity club licensee; and
             1132          (ii) the individual is a member of an equity club licensee that has reciprocal guest
             1133      privileges with the equity club licensee for which the individual is a guest; [or]
             1134          (b) (i) the club licensee is a fraternal club licensee; and
             1135          (ii) the individual is a member of the same fraternal organization as the fraternal club
             1136      licensee for which the individual is a guest[.]; or
             1137          (c) (i) the club licensee is a fraternal club licensee that holds the fraternal club license
             1138      on July 1, 2013;
             1139          (ii) the club licensee's bylaws permit guests in the club licensed premises without a
             1140      host except that a minor may not be admitted as a guest without a host; and
             1141          (iii) the club licensee maintains 60% of its total club business from the sale of food, not
             1142      including mix for alcoholic products, or service charges.
             1143          (11) Unless the patron is a member or guest, a club licensee may not:
             1144          (a) sell, offer for sale, or furnish an alcoholic product to the patron; or
             1145          (b) allow the patron to be admitted to or use the licensed premises.
             1146          (12) A minor may not be a member, officer, director, or trustee of a club licensee.
             1147          [(13) Public advertising related to a club licensee by the following shall clearly identify
             1148      a club as being "a club for members":]
             1149          [(a) the club licensee;]


             1150          [(b) staff of the club licensee; or]
             1151          [(c) a person under a contract or agreement with the club licensee.]
             1152          Section 10. Section 32B-8a-201 (Effective 07/01/13) is amended to read:
             1153           32B-8a-201 (Effective 07/01/13). Transferability of retail license.
             1154          (1) (a) A retail license is separate from other property of a retail licensee.
             1155          (b) Notwithstanding Subsection (1)(a), the Legislature may terminate or modify the
             1156      existence of any type of retail license.
             1157          (c) Except as provided in this chapter, a person may not:
             1158          (i) transfer a retail license from one location to another location; or
             1159          (ii) sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the
             1160      retail license to another person whether for monetary gain or not.
             1161          (d) If approved by the commission and subject to the requirements of this chapter, a
             1162      retail licensee may transfer a retail license:
             1163          (i) from the retail licensee to another person, regardless of whether it is for the same
             1164      premises; and
             1165          (ii) from one premises of the retail licensee to another premises of the retail licensee.
             1166          (2) (a) The commission may not approve the transfer of a retail license that results in a
             1167      transferee holding a different type of retail license than is held by the transferor.
             1168          (b) The commission may not approve the transfer of a retail license from one location
             1169      to another location, if the location of the premises to which the retail license would be
             1170      transferred is in a different county than the location of the licensed premises of the retail license
             1171      being transferred.
             1172          (3) The commission may not approve the transfer of a retail license if the transferee:
             1173          (a) is not eligible to hold the same type of retail license as the retail license to be
             1174      transferred at the premises to which the retail license would be transferred; or
             1175          (b) is delinquent in the payment of any of the following that arises in full or in part out
             1176      of the operation of a retail license:
             1177          (i) a tax, fee, or charge due under this title or Title 59, Revenue and Taxation; or


             1178          (ii) an amount due under Title 35A, Chapter 4, Employment Security Act.
             1179          (4) This chapter does not apply to a:
             1180          (a) master full-service restaurant license; or
             1181          (b) master limited-service restaurant license.
             1182          Section 11. Uncodified Section 7, Laws of Utah 2012, Fourth Special Session,
             1183      Chapter 1 is amended to read:
             1184          Section 7. Uncodified Section 110, Laws of Utah 2011, Chapter 334 is amended to
             1185      read:
             1186          Section 110. Effective date.
             1187          (1) Except as provided in Subsection (2), this bill takes effect on July 1, 2011.
             1188          (2) (a) The repeal of Subsection 32B-6-603 (4) [(Effective 07/01/11)] in this bill takes
             1189      effect on November 1, 2011.
             1190          (b) Title 32B, Chapter 6, Part 8, Reception Center License, enacted by this bill takes
             1191      effect on November 1, 2011.
             1192          (c) Title 32B, Chapter 6, Part 9, Beer-only Restaurant License, enacted by this bill
             1193      takes effect on March 1, 2012.
             1194          (d) The following take effect on July 1, [2013] 2014:
             1195          (i) Section 32B-5-309 [(Effective 07/01/11)] (Effective 07/01/13) as amended by this
             1196      bill; and
             1197          (ii) Title 32B, Chapter 8a, Transfer of Retail License Act, enacted by this bill.
             1198          Section 12. Uncodified Section 8, Laws of Utah 2012, Fourth Special Session,
             1199      Chapter 1 is amended to read:
             1200          Section 8. Uncodified Section 24, Laws of Utah 2012, Chapter 365 is amended to
             1201      read:
             1202          Section 24. Effective date.
             1203          This bill takes effect on July 1, 2012, except that the amendments made to Section
             1204      32B-8a-302 [(Effective 07/01/12)] (Effective 07/01/13), and Section 32B-8a-303 [(Effective
             1205      07/01/12)] (Effective 07/01/13), in this bill take effect on July 1, [2013] 2014.


             1206          Section 13. Effective date.
             1207          (1) Except as provided in Subsection (2), this bill takes effect on May 14, 2013.
             1208          (2) The actions to Section 32B-8a-201 (Effective 07/01/13) take effect on July 1, 2014.
             1209          Section 14. Revisor instructions.
             1210          The Legislature intends that the Office of Legislative Research and General Counsel, in
             1211      preparing the Utah Code database for publication do the following:
             1212          (1) change the superseding date in Section 32B-5-309 (Superseded 07/01/13) from July
             1213      1, 2013, to July 1, 2014;
             1214          (2) change the effective date in Section 32B-5-309 (Effective 07/01/13) from July 1,
             1215      2013, to July 1, 2014; and
             1216          (3) change the effective date from July 1, 2013, to July 1, 2014, in the following
             1217      sections:
             1218          (a) Section 32B-8a-101 (Effective 07/01/13);
             1219          (b) Section 32B-8a-102 (Effective 07/01/13);
             1220          (c) Section 32B-8a-201 (Effective 07/01/13);
             1221          (d) Section 32B-8a-202 (Effective 07/01/13);
             1222          (e) Section 32B-8a-203 (Effective 07/01/13);
             1223          (f) Section 32B-8a-301 (Effective 07/01/13);
             1224          (g) Section 32B-8a-302 (Effective 07/01/13);
             1225          (h) Section 32B-8a-303 (Effective 07/01/13);
             1226          (i) Section 32B-8a-401 (Effective 07/01/13);
             1227          (j) Section 32B-8a-402 (Effective 07/01/13);
             1228          (k) Section 32B-8a-403 (Effective 07/01/13);
             1229          (l) Section 32B-8a-404 (Effective 07/01/13);
             1230          (m) Section 32B-8a-501 (Effective 07/01/13); and
             1231          (n) Section 32B-8a-502 (Effective 07/01/13).


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