Utah Legislature SB0261

Download Zipped Introduced WordPerfect SB0261.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 261

             1     

AMENDMENTS RELATED TO ALCOHOLIC BEVERAGE

             2     
CONTROL

             3     
2013 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: John L. Valentine

             6     
House Sponsor: Ryan D. Wilcox

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Alcoholic Beverage Control Act to address the regulation of
             11      alcoholic products.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies definitions;
             15          .    addresses proximity to community locations;
             16          .    modifies how wine is treated in calculating ratio of gross receipts of food to
             17      alcoholic product;
             18          .    addresses the powers and duties of the commission;
             19          .    creates the Alcoholic Beverage Control Act Legal Fund and deposits certain
             20      penalties into the fund;
             21          .    amends operational requirements for package agencies;
             22          .    imposes minimum mandatory penalties related to minors;
             23          .    modifies where certain fines are deposited;
             24          .    expands retail licenses eligible for conditional retail licenses and allows for a
             25      three-month extension of the period of a conditional retail license;
             26          .    addresses multiple retail licenses at the same building;
             27          .    permits local authorities to impose more restrictive hour requirements for retail


             28      licensees;
             29          .    permits certain alcoholic products to be served in several containers;
             30          .    imposes a fee for applying to the commission for a change in location;
             31          .    addresses private events at retail licensee premises;
             32          .    addresses commission's authority to issue restaurant licenses;
             33          .    modifies operational requirements for restaurant licensees;
             34          .    modifies operational requirements for a resort spa sublicense;
             35          .    extends the effective date for the Transfer of Retail License Act; and
             36          .    makes technical changes.
             37      Money Appropriated in this Bill:
             38          This bill appropriates in fiscal year 2014:
             39          .    to Attorney General - Administration as an ongoing appropriation:
             40              .    from the Alcoholic Beverage Control Act Legal Fund, $130,000 to pay for costs
             41      associated with the enforcement of Title 32B, Alcoholic Beverage Control Act.
             42      Other Special Clauses:
             43          This bill provides revisor instructions.
             44      Utah Code Sections Affected:
             45      AMENDS:
             46          32B-1-102, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
             47          32B-1-202, as enacted by Laws of Utah 2010, Chapter 276
             48          32B-1-207, as enacted by Laws of Utah 2011, Chapter 334
             49          32B-2-202, as last amended by Laws of Utah 2012, Chapter 365
             50          32B-2-305, as last amended by Laws of Utah 2012, Fourth Special Session, Chapter 1
             51          32B-2-605, as last amended by Laws of Utah 2012, Chapter 365
             52          32B-3-205, as enacted by Laws of Utah 2010, Chapter 276
             53          32B-5-205, as enacted by Laws of Utah 2010, Chapter 276
             54          32B-5-301, as last amended by Laws of Utah 2011, Chapter 334
             55          32B-5-304, as last amended by Laws of Utah 2011, Chapters 307 and 334
             56          32B-5-309 (Superseded 07/01/13), as enacted by Laws of Utah 2010, Chapter 276
             57          32B-6-203, as last amended by Laws of Utah 2012, Fourth Special Session, Chapter 1
             58          32B-6-205, as last amended by Laws of Utah 2011, Chapters 307 and 334


             59          32B-6-303, as last amended by Laws of Utah 2012, Fourth Special Session, Chapter 1
             60          32B-6-305, as last amended by Laws of Utah 2011, Chapters 307 and 334
             61          32B-6-903, as enacted by Laws of Utah 2011, Chapter 334
             62          32B-6-905, as enacted by Laws of Utah 2011, Chapter 334
             63          32B-8-304, as last amended by Laws of Utah 2011, Chapters 297 and 334
             64          32B-9-204, as last amended by Laws of Utah 2012, Chapter 365
             65          32B-10-206, as enacted by Laws of Utah 2010, Chapter 276
             66          32B-11-208, as enacted by Laws of Utah 2010, Chapter 276
             67          32B-12-301, as enacted by Laws of Utah 2010, Chapter 276
             68      ENACTS:
             69          32B-2-307, Utah Code Annotated 1953
             70          32B-5-207, Utah Code Annotated 1953
             71          32B-5-311, Utah Code Annotated 1953
             72      Uncodified Material Affected:
             73      AMENDS UNCODIFIED MATERIAL:
             74           Uncodified Section 7, Laws of Utah 2012, Fourth Special Session, Chapter 1
             75          This uncodified section affects Sections 32B-5-309 (Effective 07/01/13) and the
             76      sections in Title 32B, Chapter 8a, Transfer of Retail License Act.
             77           Uncodified Section 8, Laws of Utah 2012, Fourth Special Session, Chapter 1
             78      Utah Code Sections Affected by Revisor Instructions:
             79          32B-5-309 (Superseded 07/01/13), as enacted by Laws of Utah 2010, Chapter 276
             80          32B-5-309 (Effective 07/01/13), as last amended by Laws of Utah 2011, Chapter 334
             81          32B-8a-101 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             82          32B-8a-102 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             83          32B-8a-201 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             84          32B-8a-202 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             85          32B-8a-203 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             86          32B-8a-301 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             87          32B-8a-302 (Effective 07/01/13), as last amended by Laws of Utah 2012, Chapter 365
             88          32B-8a-303 (Effective 07/01/13), as last amended by Laws of Utah 2012, Chapter 365
             89          32B-8a-401 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334


             90          32B-8a-402 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             91          32B-8a-403 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             92          32B-8a-404 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             93          32B-8a-501 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             94          32B-8a-502 (Effective 07/01/13), as enacted by Laws of Utah 2011, Chapter 334
             95     
             96      Be it enacted by the Legislature of the state of Utah:
             97          Section 1. Section 32B-1-102 is amended to read:
             98           32B-1-102. Definitions.
             99          As used in this title:
             100          (1) "Airport lounge" means a business location:
             101          (a) at which an alcoholic product is sold at retail for consumption on the premises; and
             102          (b) that is located at an international airport with a United States Customs office on the
             103      premises of the international airport.
             104          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
             105      Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
             106          (3) "Alcoholic beverage" means the following:
             107          (a) beer; or
             108          (b) liquor.
             109          (4) (a) "Alcoholic product" means a product that:
             110          (i) contains at least .5% of alcohol by volume; and
             111          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
             112      process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
             113      in an amount equal to or greater than .5% of alcohol by volume.
             114          (b) "Alcoholic product" includes an alcoholic beverage.
             115          (c) "Alcoholic product" does not include any of the following common items that
             116      otherwise come within the definition of an alcoholic product:
             117          (i) except as provided in Subsection (4)(d), an extract;
             118          (ii) vinegar;
             119          (iii) cider;
             120          (iv) essence;


             121          (v) tincture;
             122          (vi) food preparation; or
             123          (vii) an over-the-counter medicine.
             124          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
             125      when it is used as a flavoring in the manufacturing of an alcoholic product.
             126          (5) "Alcohol training and education seminar" means a seminar that is:
             127          (a) required by Chapter 5, Part 4, Alcohol Training and Education Act; and
             128          (b) described in Section 62A-15-401 .
             129          (6) "Banquet" means an event:
             130          (a) that is held at one or more designated locations approved by the commission in or
             131      on the premises of a:
             132          (i) hotel;
             133          (ii) resort facility;
             134          (iii) sports center; or
             135          (iv) convention center;
             136          (b) for which there is a contract:
             137          (i) between a person operating a facility listed in Subsection (6)(a) and another person;
             138      and
             139          (ii) under which the person operating a facility listed in Subsection (6)(a) is required to
             140      provide an alcoholic product at the event; and
             141          (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
             142          (7) (a) "Bar" means a surface or structure:
             143          (i) at which an alcoholic product is:
             144          (A) stored; or
             145          (B) dispensed; or
             146          (ii) from which an alcoholic product is served.
             147          (b) "Bar structure" means a surface or structure on a licensed premises if on or at any
             148      place of the surface or structure an alcoholic product is:
             149          (i) stored; or
             150          (ii) dispensed.
             151          (8) (a) Subject to Subsection (8)(d), "beer" means a product that:


             152          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
             153      volume or 3.2% by weight; and
             154          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             155          (b) "Beer" may or may not contain hops or other vegetable products.
             156          (c) "Beer" includes a product that:
             157          (i) contains alcohol in the percentages described in Subsection (8)(a); and
             158          (ii) is referred to as:
             159          (A) beer;
             160          (B) ale;
             161          (C) porter;
             162          (D) stout;
             163          (E) lager; or
             164          (F) a malt or malted beverage.
             165          (d) "Beer" does not include a flavored malt beverage.
             166          (9) "Beer-only restaurant license" means a license issued in accordance with Chapter 5,
             167      Retail License Act, and Chapter 6, Part 9, Beer-only Restaurant License.
             168          (10) "Beer retailer" means a business:
             169          (a) that is engaged, primarily or incidentally, in the retail sale of beer to a patron,
             170      whether for consumption on or off the business premises; and
             171          (b) to whom a license is issued:
             172          (i) for an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-premise
             173      Beer Retailer Local Authority; or
             174          (ii) for an on-premise beer retailer, in accordance with Chapter 5, Retail License Act,
             175      and Chapter 6, Part 7, On-premise Beer Retailer License.
             176          (11) "Beer wholesaling license" means a license:
             177          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
             178          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
             179      retail licensees or off-premise beer retailers.
             180          (12) "Billboard" means a public display used to advertise, including:
             181          (a) a light device;
             182          (b) a painting;


             183          (c) a drawing;
             184          (d) a poster;
             185          (e) a sign;
             186          (f) a signboard; or
             187          (g) a scoreboard.
             188          (13) "Brewer" means a person engaged in manufacturing:
             189          (a) beer;
             190          (b) heavy beer; or
             191          (c) a flavored malt beverage.
             192          (14) "Brewery manufacturing license" means a license issued in accordance with
             193      Chapter 11, Part 5, Brewery Manufacturing License.
             194          (15) "Certificate of approval" means a certificate of approval obtained from the
             195      department under Section 32B-11-201 .
             196          (16) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
             197      a bus company to a group of persons pursuant to a common purpose:
             198          (a) under a single contract;
             199          (b) at a fixed charge in accordance with the bus company's tariff; and
             200          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
             201      motor vehicle, and a driver to travel together to one or more specified destinations.
             202          (17) "Church" means a building:
             203          (a) set apart for worship;
             204          (b) in which religious services are held;
             205          (c) with which clergy is associated; and
             206          (d) that is tax exempt under the laws of this state.
             207          (18) (a) "Club license" means a license issued in accordance with Chapter 5, Retail
             208      License Act, and Chapter 6, Part 4, Club License.
             209          (b) "Club license" includes:
             210          (i) a dining club license;
             211          (ii) an equity club license;
             212          (iii) a fraternal club license; or
             213          (iv) a social club license.


             214          (19) "Commission" means the Alcoholic Beverage Control Commission created in
             215      Section 32B-2-201 .
             216          (20) "Commissioner" means a member of the commission.
             217          (21) "Community location" means:
             218          (a) a public or private school;
             219          (b) a church;
             220          (c) a public library;
             221          (d) a public playground; or
             222          (e) a public park.
             223          (22) "Community location governing authority" means:
             224          (a) the governing body of the community location; or
             225          (b) if the commission does not know who is the governing body of a community
             226      location, a person who appears to the commission to have been given on behalf of the
             227      community location the authority to prohibit an activity at the community location.
             228          (23) "Container" means a receptacle that contains an alcoholic product, including:
             229          (a) a bottle;
             230          (b) a vessel; or
             231          (c) a similar item.
             232          (24) "Convention center" means a facility that is:
             233          (a) in total at least 30,000 square feet; and
             234          (b) otherwise defined as a "convention center" by the commission by rule.
             235          (25) (a) Subject to Subsection (25)(b), "counter" means a surface or structure in a
             236      dining area of a licensed premises where seating is provided to a patron for service of food.
             237          (b) "Counter" does not include a surface or structure if on or at any point of the surface
             238      or structure an alcoholic product is:
             239          (i) stored; or
             240          (ii) dispensed.
             241          (26) "Department" means the Department of Alcoholic Beverage Control created in
             242      Section 32B-2-203 .
             243          (27) "Department compliance officer" means an individual who is:
             244          (a) an auditor or inspector; and


             245          (b) employed by the department.
             246          (28) "Department sample" means liquor that is placed in the possession of the
             247      department for testing, analysis, and sampling.
             248          (29) "Dining club license" means a license issued in accordance with Chapter 5, Retail
             249      License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as a
             250      dining club license.
             251          (30) "Director," unless the context requires otherwise, means the director of the
             252      department.
             253          (31) "Disciplinary proceeding" means an adjudicative proceeding permitted under this
             254      title:
             255          (a) against a person subject to administrative action; and
             256          (b) that is brought on the basis of a violation of this title.
             257          (32) (a) Subject to Subsection (32)(b), "dispense" means:
             258          (i) drawing of an alcoholic product:
             259          (A) from an area where it is stored; or
             260          (B) as provided in Subsection 32B-6-205 (12)(b)(ii), 32B-6-305 (12)(b)(ii),
             261      32B-6-805 (15)(b)(ii), or 32B-6-905 (12)(b)(ii); and
             262          (ii) using the alcoholic product described in Subsection (32)(a)(i) on the premises of
             263      the licensed premises to mix or prepare an alcoholic product to be furnished to a patron of the
             264      retail licensee.
             265          (b) The definition of "dispense" in this Subsection (32) applies only to:
             266          (i) a full-service restaurant license;
             267          (ii) a limited-service restaurant license;
             268          (iii) a reception center license; and
             269          (iv) a beer-only restaurant license.
             270          (33) "Distillery manufacturing license" means a license issued in accordance with
             271      Chapter 11, Part 4, Distillery Manufacturing License.
             272          (34) "Distressed merchandise" means an alcoholic product in the possession of the
             273      department that is saleable, but for some reason is unappealing to the public.
             274          (35) "Educational facility" includes:
             275          (a) a nursery school;


             276          (b) an infant day care center; and
             277          (c) a trade and technical school.
             278          (36) "Equity club license" means a license issued in accordance with Chapter 5, Retail
             279      License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as an
             280      equity club license.
             281          (37) "Event permit" means:
             282          (a) a single event permit; or
             283          (b) a temporary beer event permit.
             284          (38) "Exempt license" means a license exempt under Section 32B-1-201 from being
             285      considered in determining the total number of a retail license that the commission may issue at
             286      any time.
             287          (39) (a) "Flavored malt beverage" means a beverage:
             288          (i) that contains at least .5% alcohol by volume;
             289          (ii) that is treated by processing, filtration, or another method of manufacture that is not
             290      generally recognized as a traditional process in the production of a beer as described in 27
             291      C.F.R. Sec. 25.55;
             292          (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
             293      extract; and
             294          (iv) (A) for which the producer is required to file a formula for approval with the
             295      federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
             296          (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
             297          (b) "Flavored malt beverage" is considered liquor for purposes of this title.
             298          (40) "Fraternal club license" means a license issued in accordance with Chapter 5,
             299      Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
             300      as a fraternal club license.
             301          (41) "Full-service restaurant license" means a license issued in accordance with
             302      Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-service Restaurant License.
             303          (42) (a) "Furnish" means by any means to provide with, supply, or give an individual
             304      an alcoholic product, by sale or otherwise.
             305          (b) "Furnish" includes to:
             306          (i) serve;


             307          (ii) deliver; or
             308          (iii) otherwise make available.
             309          (43) "Guest" means an individual who meets the requirements of Subsection
             310      32B-6-407 (9).
             311          (44) "Health care practitioner" means:
             312          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
             313          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
             314          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
             315          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
             316      Act;
             317          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
             318      Nurse Practice Act;
             319          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
             320      Practice Act;
             321          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
             322      Therapy Practice Act;
             323          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
             324          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
             325      Professional Practice Act;
             326          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
             327          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
             328      Practice Act;
             329          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
             330      Hygienist Practice Act; and
             331          (m) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act.
             332          (45) (a) "Heavy beer" means a product that:
             333          (i) contains more than 4% alcohol by volume; and
             334          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
             335          (b) "Heavy beer" is considered liquor for the purposes of this title.
             336          (46) "Hotel" is as defined by the commission by rule.
             337          (47) "Identification card" means an identification card issued under Title 53, Chapter 3,


             338      Part 8, Identification Card Act.
             339          (48) "Industry representative" means an individual who is compensated by salary,
             340      commission, or other means for representing and selling an alcoholic product of a
             341      manufacturer, supplier, or importer of liquor.
             342          (49) "Industry representative sample" means liquor that is placed in the possession of
             343      the department for testing, analysis, and sampling by a local industry representative on the
             344      premises of the department to educate the local industry representative of the quality and
             345      characteristics of the product.
             346          (50) "Interdicted person" means a person to whom the sale, offer for sale, or furnishing
             347      of an alcoholic product is prohibited by:
             348          (a) law; or
             349          (b) court order.
             350          (51) "Intoxicated" means that a person:
             351          (a) is significantly impaired as to the person's mental or physical functions as a result of
             352      the use of:
             353          (i) an alcoholic product;
             354          (ii) a controlled substance;
             355          (iii) a substance having the property of releasing toxic vapors; or
             356          (iv) a combination of Subsections (51)(a)(i) through (iii); and
             357          (b) exhibits plain and easily observed outward manifestations of behavior or physical
             358      signs produced by the over consumption of an alcoholic product.
             359          (52) "Investigator" means an individual who is:
             360          (a) a department compliance officer; or
             361          (b) a nondepartment enforcement officer.
             362          (53) "Invitee" is as defined in Section 32B-8-102 .
             363          (54) "License" means:
             364          (a) a retail license;
             365          (b) a license issued in accordance with Chapter 11, Manufacturing and Related
             366      Licenses Act;
             367          (c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
             368      or


             369          (d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act.
             370          (55) "Licensee" means a person who holds a license.
             371          (56) "Limited-service restaurant license" means a license issued in accordance with
             372      Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-service Restaurant License.
             373          (57) "Limousine" means a motor vehicle licensed by the state or a local authority, other
             374      than a bus or taxicab:
             375          (a) in which the driver and a passenger are separated by a partition, glass, or other
             376      barrier;
             377          (b) that is provided by a business entity to one or more individuals at a fixed charge in
             378      accordance with the business entity's tariff; and
             379          (c) to give the one or more individuals the exclusive use of the limousine and a driver
             380      to travel to one or more specified destinations.
             381          (58) (a) (i) "Liquor" means a liquid that:
             382          (A) is:
             383          (I) alcohol;
             384          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
             385          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
             386          (IV) other drink or drinkable liquid; and
             387          (B) (I) contains at least .5% alcohol by volume; and
             388          (II) is suitable to use for beverage purposes.
             389          (ii) "Liquor" includes:
             390          (A) heavy beer;
             391          (B) wine; and
             392          (C) a flavored malt beverage.
             393          (b) "Liquor" does not include beer.
             394          (59) "Liquor Control Fund" means the enterprise fund created by Section 32B-2-301 .
             395          (60) "Liquor warehousing license" means a license that is issued:
             396          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
             397          (b) to a person, other than a licensed manufacturer, who engages in the importation for
             398      storage, sale, or distribution of liquor regardless of amount.
             399          (61) "Local authority" means:


             400          (a) for premises that are located in an unincorporated area of a county, the governing
             401      body of a county; or
             402          (b) for premises that are located in an incorporated city or a town, the governing body
             403      of the city or town.
             404          (62) "Lounge or bar area" is as defined by rule made by the commission.
             405          (63) "Manufacture" means to distill, brew, rectify, mix, compound, process, ferment, or
             406      otherwise make an alcoholic product for personal use or for sale or distribution to others.
             407          (64) "Member" means an individual who, after paying regular dues, has full privileges
             408      in an equity club licensee or fraternal club licensee.
             409          (65) (a) "Military installation" means a base, air field, camp, post, station, yard, center,
             410      or homeport facility for a ship:
             411          (i) (A) under the control of the United States Department of Defense; or
             412          (B) of the National Guard;
             413          (ii) that is located within the state; and
             414          (iii) including a leased facility.
             415          (b) "Military installation" does not include a facility used primarily for:
             416          (i) civil works;
             417          (ii) a rivers and harbors project; or
             418          (iii) a flood control project.
             419          (66) "Minor" means an individual under the age of 21 years.
             420          (67) "Nondepartment enforcement agency" means an agency that:
             421          (a) (i) is a state agency other than the department; or
             422          (ii) is an agency of a county, city, or town; and
             423          (b) has a responsibility to enforce one or more provisions of this title.
             424          (68) "Nondepartment enforcement officer" means an individual who is:
             425          (a) a peace officer, examiner, or investigator; and
             426          (b) employed by a nondepartment enforcement agency.
             427          (69) (a) "Off-premise beer retailer" means a beer retailer who is:
             428          (i) licensed in accordance with Chapter 7, Part 2, Off-premise Beer Retailer Local
             429      Authority; and
             430          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's


             431      premises.
             432          (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
             433          (70) "On-premise banquet license" means a license issued in accordance with Chapter
             434      5, Retail License Act, and Chapter 6, Part 6, On-premise Banquet License.
             435          (71) "On-premise beer retailer" means a beer retailer who is:
             436          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
             437      accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-premise Beer
             438      Retailer License; and
             439          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
             440      premises:
             441          (i) regardless of whether the beer retailer sells beer for consumption off the licensed
             442      premises; and
             443          (ii) on and after March 1, 2012, operating:
             444          (A) as a tavern; or
             445          (B) in a manner that meets the requirements of Subsection 32B-6-703 (2)(e)(i).
             446          (72) "Opaque" means impenetrable to sight.
             447          (73) "Package agency" means a retail liquor location operated:
             448          (a) under an agreement with the department; and
             449          (b) by a person:
             450          (i) other than the state; and
             451          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
             452      Agency, to sell packaged liquor for consumption off the premises of the package agency.
             453          (74) "Package agent" means a person who holds a package agency.
             454          (75) "Patron" means an individual to whom food, beverages, or services are sold,
             455      offered for sale, or furnished, or who consumes an alcoholic product including:
             456          (a) a customer;
             457          (b) a member;
             458          (c) a guest;
             459          (d) an attendee of a banquet or event;
             460          (e) an individual who receives room service;
             461          (f) a resident of a resort;


             462          (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102 ;
             463      or
             464          (h) an invitee.
             465          (76) "Permittee" means a person issued a permit under:
             466          (a) Chapter 9, Event Permit Act; or
             467          (b) Chapter 10, Special Use Permit Act.
             468          (77) "Person subject to administrative action" means:
             469          (a) a licensee;
             470          (b) a permittee;
             471          (c) a manufacturer;
             472          (d) a supplier;
             473          (e) an importer;
             474          (f) one of the following holding a certificate of approval:
             475          (i) an out-of-state brewer;
             476          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
             477          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
             478          (g) staff of:
             479          (i) a person listed in Subsections (77)(a) through (f); or
             480          (ii) a package agent.
             481          (78) "Premises" means a building, enclosure, or room used in connection with the
             482      storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic product,
             483      unless otherwise defined in this title or rules made by the commission.
             484          (79) "Prescription" means an order issued by a health care practitioner when:
             485          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
             486      to prescribe a controlled substance, other drug, or device for medicinal purposes;
             487          (b) the order is made in the course of that health care practitioner's professional
             488      practice; and
             489          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
             490          (80) (a) "Private event" means a specific social, business, or recreational event:
             491          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
             492      group; and


             493          (ii) that is limited in attendance to people who are specifically designated and their
             494      guests.
             495          (b) "Private event" does not include an event to which the general public is invited,
             496      whether for an admission fee or not.
             497          (81) (a) "Proof of age" means:
             498          (i) an identification card;
             499          (ii) an identification that:
             500          (A) is substantially similar to an identification card;
             501          (B) is issued in accordance with the laws of a state other than Utah in which the
             502      identification is issued;
             503          (C) includes date of birth; and
             504          (D) has a picture affixed;
             505          (iii) a valid driver license certificate that:
             506          (A) includes date of birth;
             507          (B) has a picture affixed; and
             508          (C) is issued:
             509          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
             510          (II) in accordance with the laws of the state in which it is issued;
             511          (iv) a military identification card that:
             512          (A) includes date of birth; and
             513          (B) has a picture affixed; or
             514          (v) a valid passport.
             515          (b) "Proof of age" does not include a driving privilege card issued in accordance with
             516      Section 53-3-207 .
             517          (82) (a) "Public building" means a building or permanent structure that is:
             518          (i) owned or leased by:
             519          (A) the state; or
             520          (B) a local government entity; and
             521          (ii) used for:
             522          (A) public education;
             523          (B) transacting public business; or


             524          (C) regularly conducting government activities.
             525          (b) "Public building" does not include a building owned by the state or a local
             526      government entity when the building is used by a person, in whole or in part, for a proprietary
             527      function.
             528          (83) "Public conveyance" means a conveyance to which the public or a portion of the
             529      public has access to and a right to use for transportation, including an airline, railroad, bus,
             530      boat, or other public conveyance.
             531          (84) "Reception center" means a business that:
             532          (a) operates facilities that are at least 5,000 square feet; and
             533          (b) has as its primary purpose the leasing of the facilities described in Subsection
             534      (84)(a) to a third party for the third party's event.
             535          (85) "Reception center license" means a license issued in accordance with Chapter 5,
             536      Retail License Act, and Chapter 6, Part 8, Reception Center License.
             537          (86) (a) "Record" means information that is:
             538          (i) inscribed on a tangible medium; or
             539          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
             540          (b) "Record" includes:
             541          (i) a book;
             542          (ii) a book of account;
             543          (iii) a paper;
             544          (iv) a contract;
             545          (v) an agreement;
             546          (vi) a document; or
             547          (vii) a recording in any medium.
             548          (87) "Residence" means a person's principal place of abode within Utah.
             549          (88) "Resident," in relation to a resort, is as defined in Section 32B-8-102 .
             550          (89) "Resort" is as defined in Section 32B-8-102 .
             551          (90) "Resort facility" is as defined by the commission by rule.
             552          (91) "Resort license" means a license issued in accordance with Chapter 5, Retail
             553      License Act, and Chapter 8, Resort License Act.
             554          (92) "Restaurant" means a business location:


             555          (a) at which a variety of foods are prepared;
             556          (b) at which complete meals are served to the general public; and
             557          (c) that is engaged primarily in serving meals to the general public.
             558          (93) "Retail license" means one of the following licenses issued under this title:
             559          (a) a full-service restaurant license;
             560          (b) a limited-service restaurant license;
             561          (c) a club license;
             562          (d) an airport lounge license;
             563          (e) an on-premise banquet license;
             564          (f) an on-premise beer license;
             565          (g) a reception center license; [or]
             566          (h) a beer-only restaurant license[.]; or
             567          (i) a resort license.
             568          (94) "Room service" means furnishing an alcoholic product to a person in a guest room
             569      of a:
             570          (a) hotel; or
             571          (b) resort facility.
             572          (95) "Serve" means to place an alcoholic product before an individual.
             573          (96) (a) "School" means a building used primarily for the general education of minors.
             574          (b) "School" does not include an educational facility.
             575          (97) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby, for
             576      consideration, an alcoholic product is either directly or indirectly transferred, solicited, ordered,
             577      delivered for value, or by a means or under a pretext is promised or obtained, whether done by
             578      a person as a principal, proprietor, or as staff, unless otherwise defined in this title or the rules
             579      made by the commission.
             580          (98) "Sexually oriented entertainer" means a person who while in a state of seminudity
             581      appears at or performs:
             582          (a) for the entertainment of one or more patrons;
             583          (b) on the premises of:
             584          (i) a social club licensee; or
             585          (ii) a tavern;


             586          (c) on behalf of or at the request of the licensee described in Subsection (98)(b);
             587          (d) on a contractual or voluntary basis; and
             588          (e) whether or not the person is designated as:
             589          (i) an employee;
             590          (ii) an independent contractor;
             591          (iii) an agent of the licensee; or
             592          (iv) a different type of classification.
             593          (99) "Single event permit" means a permit issued in accordance with Chapter 9, Part 3,
             594      Single Event Permit.
             595          (100) "Small brewer" means a brewer who manufactures less than 60,000 barrels of
             596      beer, heavy beer, and flavored malt beverages per year.
             597          (101) "Social club license" means a license issued in accordance with Chapter 5, Retail
             598      License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as a
             599      social club license.
             600          (102) "Special use permit" means a permit issued in accordance with Chapter 10,
             601      Special Use Permit Act.
             602          (103) (a) "Spirituous liquor" means liquor that is distilled.
             603          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
             604      27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
             605          (104) "Sports center" is as defined by the commission by rule.
             606          (105) (a) "Staff" means an individual who engages in activity governed by this title:
             607          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
             608      holder;
             609          (ii) at the request of the business, including a package agent, licensee, permittee, or
             610      certificate holder; or
             611          (iii) under the authority of the business, including a package agent, licensee, permittee,
             612      or certificate holder.
             613          (b) "Staff" includes:
             614          (i) an officer;
             615          (ii) a director;
             616          (iii) an employee;


             617          (iv) personnel management;
             618          (v) an agent of the licensee, including a managing agent;
             619          (vi) an operator; or
             620          (vii) a representative.
             621          (106) "State of nudity" means:
             622          (a) the appearance of:
             623          (i) the nipple or areola of a female human breast;
             624          (ii) a human genital;
             625          (iii) a human pubic area; or
             626          (iv) a human anus; or
             627          (b) a state of dress that fails to opaquely cover:
             628          (i) the nipple or areola of a female human breast;
             629          (ii) a human genital;
             630          (iii) a human pubic area; or
             631          (iv) a human anus.
             632          (107) "State of seminudity" means a state of dress in which opaque clothing covers no
             633      more than:
             634          (a) the nipple and areola of the female human breast in a shape and color other than the
             635      natural shape and color of the nipple and areola; and
             636          (b) the human genitals, pubic area, and anus:
             637          (i) with no less than the following at its widest point:
             638          (A) four inches coverage width in the front of the human body; and
             639          (B) five inches coverage width in the back of the human body; and
             640          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
             641          (108) (a) "State store" means a facility for the sale of packaged liquor:
             642          (i) located on premises owned or leased by the state; and
             643          (ii) operated by a state employee.
             644          (b) "State store" does not include:
             645          (i) a package agency;
             646          (ii) a licensee; or
             647          (iii) a permittee.


             648          (109) (a) "Storage area" means an area on licensed premises where the licensee stores
             649      an alcoholic product.
             650          (b) "Store" means to place or maintain in a location an alcoholic product from which a
             651      person draws to prepare an alcoholic product to be furnished to a patron, except as provided in
             652      Subsection 32B-6-205 (12)(b)(ii), 32B-6-305 (12)(b)(ii), 32B-6-805 (15)(b)(ii), or
             653      32B-6-905 (12)(b)(ii).
             654          (110) "Sublicense" is as defined in Section 32B-8-102 .
             655          (111) "Supplier" means a person who sells an alcoholic product to the department.
             656          (112) "Tavern" means an on-premise beer retailer who is:
             657          (a) issued a license by the commission in accordance with Chapter 5, Retail License
             658      Act, and Chapter 6, Part 7, On-premise Beer Retailer License; and
             659          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
             660      On-premise Beer Retailer License.
             661          (113) "Temporary beer event permit" means a permit issued in accordance with
             662      Chapter 9, Part 4, Temporary Beer Event Permit.
             663          (114) "Temporary domicile" means the principal place of abode within Utah of a
             664      person who does not have a present intention to continue residency within Utah permanently or
             665      indefinitely.
             666          (115) "Translucent" means a substance that allows light to pass through, but does not
             667      allow an object or person to be seen through the substance.
             668          (116) "Unsaleable liquor merchandise" means a container that:
             669          (a) is unsaleable because the container is:
             670          (i) unlabeled;
             671          (ii) leaky;
             672          (iii) damaged;
             673          (iv) difficult to open; or
             674          (v) partly filled;
             675          (b) (i) has faded labels or defective caps or corks;
             676          (ii) has contents that are:
             677          (A) cloudy;
             678          (B) spoiled; or


             679          (C) chemically determined to be impure; or
             680          (iii) contains:
             681          (A) sediment; or
             682          (B) a foreign substance; or
             683          (c) is otherwise considered by the department as unfit for sale.
             684          (117) (a) "Wine" means an alcoholic product obtained by the fermentation of the
             685      natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
             686      another ingredient is added.
             687          (b) "Wine" is considered liquor for purposes of this title, except as otherwise provided
             688      in this title.
             689          (118) "Winery manufacturing license" means a license issued in accordance with
             690      Chapter 11, Part 3, Winery Manufacturing License.
             691          Section 2. Section 32B-1-202 is amended to read:
             692           32B-1-202. Proximity to community location.
             693          (1) For purposes of this section, "outlet" means:
             694          (a) a state store;
             695          (b) a package agency; or
             696          (c) a retail licensee, except an airport lounge licensee.
             697          (2) Except as otherwise provided in this section, the premises of an outlet may not be
             698      located:
             699          (a) within 600 feet of a community location, as measured from the nearest entrance of
             700      the outlet by following the shortest route of ordinary pedestrian travel to the property boundary
             701      of the community location; or
             702          (b) within 200 feet of a community location, measured in a straight line from the
             703      nearest entrance of the outlet to the nearest property boundary of the community location.
             704          (3) With respect to the location of an outlet, the commission may authorize a variance
             705      to reduce the proximity requirement of Subsection (2) if:
             706          (a) when the variance reduces the proximity requirement of Subsection (2)(b), the
             707      community location at issue is:
             708          (i) a public library; or
             709          (ii) a public park;


             710          (b) except with respect to a state store, the local authority gives its written consent to
             711      the variance;
             712          (c) the commission finds that alternative locations for locating that type of outlet in the
             713      community are limited;
             714          (d) a public hearing is held in the city, town, or county, and when practical in the
             715      neighborhood concerned;
             716          (e) after giving full consideration to the attending circumstances and the policies stated
             717      in Subsections 32B-1-103 (3) and (4), the commission determines that locating the outlet in that
             718      location would not be detrimental to the public health, peace, safety, and welfare of the
             719      community;
             720          (f) (i) the community location governing authority gives its written consent to the
             721      variance; or
             722          (ii) if the community location governing authority does not give its written consent to a
             723      variance, the commission finds the following for a state store, or if the outlet is a package
             724      agency or retail licensee, the commission finds that the applicant establishes the following:
             725          (A) there is substantial unmet public demand to consume an alcoholic product:
             726          (I) within the geographic boundary of the local authority in which the outlet is to be
             727      located; and
             728          (II) for an outlet that is a retail licensee, in a public setting;
             729          (B) there is no reasonably viable alternative for satisfying the substantial unmet
             730      demand other than through locating that type of outlet in that location; and
             731          (C) there is no reasonably viable alternative location within the geographic boundary of
             732      the local authority in which the outlet is to be located for locating that type of outlet to satisfy
             733      the unmet demand.
             734          (4) With respect to the premises of a package agency or retail licensee that undergoes a
             735      change of ownership, the commission may waive or vary the proximity requirements of
             736      Subsection (2) in considering whether to issue the package agency or same type of retail license
             737      to the new owner of the premises if:
             738          (a) the premises previously received a variance reducing the proximity requirement of
             739      Subsection (2)(a);
             740          (b) the premises received a variance reducing the proximity requirement of Subsection


             741      (2)(b) on or before May 4, 2008; or
             742          (c) a variance from proximity requirements was otherwise allowed under this title.
             743          (5) With respect to a package agency or retail license that undergoes a change of
             744      ownership, the commission may waive or vary the proximity requirements of Subsection (2) in
             745      considering whether to issue a package agency or the same type of retail license to the new
             746      owner of the premises if:
             747          (a) the package agency or retail license premises is located in a city of the fifth class or
             748      a town;
             749          (b) when the package agency or retail license was issued to a previous owner, the
             750      premises met the proximity requirements of Subsection (2);
             751          (c) the premises has had a package agency or the same type of retail license at all times
             752      since the package agency or retail license described in Subsection (5)(b) was issued without a
             753      variance;
             754          (d) the community location is located within the proximity requirements of Subsection
             755      (2) after the day on which the package agency or retail license described in Subsection (5)(b)
             756      was issued; and
             757          (e) the community location has not moved from the location described in Subsection
             758      (5)(d).
             759          (6) The commission may grant a variance to a person seeking a retail license from the
             760      requirements of Subsection (2)(b) if:
             761          (a) the premises to be licensed is located in a city of the fifth class or a town;
             762          (b) on or before May 4, 2008, the premises was licensed and had a variance from the
             763      requirements of Subsection (2)(b);
             764          (c) the operations at the premises to be licensed ceased for a period not to exceed three
             765      years; and
             766          (d) the person is operating and otherwise qualified to obtain the retail license that the
             767      person is seeking.
             768          [(5)] (7) Nothing in this section prevents the commission from considering the
             769      proximity of an educational, religious, and recreational facility, or any other relevant factor in
             770      reaching a decision on a proposed location of an outlet.
             771          Section 3. Section 32B-1-207 is amended to read:


             772           32B-1-207. Calculation of ratio of gross receipts of food to alcoholic product.
             773          In calculating the annual gross receipts of a retail license or sublicense for purposes of
             774      determining the percentage of gross receipts from the sale, offer for sale, or furnishing of food
             775      or an alcoholic product, a retail licensee may not include in the calculation the money from the
             776      sale of a bottle of wine by the retail licensee or under a sublicense that is in excess of [$250]
             777      $100.
             778          Section 4. Section 32B-2-202 is amended to read:
             779           32B-2-202. Powers and duties of the commission.
             780          (1) The commission shall:
             781          (a) [consistent with] subject to the policy established by the Legislature by statute, act
             782      as a general [policymaking] administrative body on the subject of alcoholic product control;
             783          (b) adopt and issue policies, rules, and procedures to the extent expressly authorized by
             784      this title;
             785          (c) set policy by written rules that establish criteria and procedures for:
             786          (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
             787      permit, or certificate of approval; and
             788          (ii) determining the location of a state store, package agency, or retail licensee;
             789          (d) decide within the limits, and under the conditions imposed by this title, the number
             790      and location of state stores, package agencies, and retail licensees in the state;
             791          (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
             792      permits, or certificates of approval for the purchase, storage, sale, offer for sale, furnishing,
             793      consumption, manufacture, and distribution of an alcoholic product:
             794          (i) a package agency;
             795          (ii) a full-service restaurant license;
             796          (iii) a limited-service restaurant license;
             797          (iv) a club license;
             798          (v) an airport lounge license;
             799          (vi) an on-premise banquet license;
             800          (vii) a resort license, under which four or more sublicenses may be included;
             801          (viii) an on-premise beer retailer license;
             802          (ix) a reception center license;


             803          (x) a beer-only restaurant license;
             804          (xi) subject to Subsection (4), a single event permit;
             805          (xii) subject to Subsection (4), a temporary beer event permit;
             806          (xiii) a special use permit;
             807          (xiv) a manufacturing license;
             808          (xv) a liquor warehousing license;
             809          (xvi) a beer wholesaling license; and
             810          (xvii) one of the following that holds a certificate of approval:
             811          (A) an out-of-state brewer;
             812          (B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and
             813          (C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages;
             814          (f) in accordance with Section 32B-5-205 , issue, deny, suspend, or revoke [one of the
             815      following] conditional licenses for the purchase, storage, sale, furnishing, consumption,
             816      manufacture, and distribution of an alcoholic product[:];
             817          [(i) a conditional full-service restaurant license; or]
             818          [(ii) a conditional limited-service restaurant license;]
             819          (g) prescribe the duties of the department in assisting the commission in issuing a
             820      package agency, license, permit, or certificate of approval under this title;
             821          (h) to the extent a fee is not specified in this title, establish a fee allowed under this title
             822      in accordance with Section 63J-1-504 ;
             823          (i) fix prices at which liquor is sold that are the same at all state stores, package
             824      agencies, and retail licensees;
             825          (j) issue and distribute price lists showing the price to be paid by a purchaser for each
             826      class, variety, or brand of liquor kept for sale by the department;
             827          (k) (i) require the director to follow sound management principles; and
             828          (ii) require periodic reporting from the director to ensure that:
             829          (A) sound management principles are being followed; and
             830          (B) policies established by the commission are being observed;
             831          (l) (i) receive, consider, and act in a timely manner upon the reports, recommendations,
             832      and matters submitted by the director to the commission; and
             833          (ii) do the things necessary to support the department in properly performing the


             834      department's duties;
             835          (m) obtain temporarily and for special purposes the services of an expert or person
             836      engaged in the practice of a profession, or a person who possesses a needed skill if:
             837          (i) considered expedient; and
             838          (ii) approved by the governor;
             839          (n) prescribe the conduct, management, and equipment of premises upon which an
             840      alcoholic product may be stored, sold, offered for sale, furnished, or consumed;
             841          (o) make rules governing the credit terms of beer sales within the state to retail
             842      licensees; and
             843          (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
             844      disciplinary action against a person subject to administrative action.
             845          (2) [Consistent with] Subject to the policy established by the Legislature by statute, the
             846      power of the commission to do the following is plenary, except as otherwise provided by this
             847      title, and not subject to review:
             848          (a) establish a state store;
             849          (b) issue authority to act as a package agent or operate a package agency; and
             850          (c) issue or deny a license, permit, or certificate of approval.
             851          (3) If the commission is authorized or required to make a rule under this title, the
             852      commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
             853      Rulemaking Act.
             854          (4) Notwithstanding Subsections (1)(e)(xi) and (xii), the director or deputy director
             855      may issue an event permit in accordance with Chapter 9, Event Permit Act.
             856          (5) Notwithstanding the other provisions of this title, the commission may not waive or
             857      vary the requirements imposed under this title, including licensing and operational
             858      requirements, except when this title expressly grants the commission authority to waive or vary
             859      the requirements.
             860          Section 5. Section 32B-2-305 is amended to read:
             861           32B-2-305. Alcoholic Beverage Control Act Enforcement Fund.
             862          (1) As used in this section:
             863          (a) "Alcohol-related law enforcement officer" is as defined in Section 32B-1-201 .
             864          (b) "Enforcement ratio" is as defined in Section 32B-1-201 .


             865          (c) "Fund" means the Alcoholic Beverage Control Act Enforcement Fund created in
             866      this section.
             867          (2) There is created a restricted special revenue fund known as the "Alcoholic
             868      Beverage Control Act Enforcement Fund."
             869          (3) (a) The fund consists of:
             870          (i) deposits made under Subsection (4); [and]
             871          (ii) deposits made under Subsection 32B-3-205 (3); and
             872          [(ii)] (iii) interest earned on the fund.
             873          (b) The fund shall earn interest. Interest on the fund shall be deposited into the fund.
             874          (4) After the deposit made under Section 32B-2-304 for the school lunch program, the
             875      department shall deposit 1% of the total gross revenue from the sale of liquor with the state
             876      treasurer to be credited to the fund to be used by the Department of Public Safety as provided
             877      in Subsection (5).
             878          (5) (a) The Department of Public Safety shall expend money from the fund to
             879      supplement appropriations by the Legislature so that the Department of Public Safety maintains
             880      a sufficient number of alcohol-related law enforcement officers such that beginning on July 1,
             881      2012, each year the enforcement ratio as of July 1 is equal to or less than the number specified
             882      in Section 32B-1-201 .
             883          (b) Beginning July 1, 2012, four alcohol-related law enforcement officers shall have as
             884      a primary focus the enforcement of this title in relationship to restaurants.
             885          Section 6. Section 32B-2-307 is enacted to read:
             886          32B-2-307. Alcoholic Beverage Control Act Legal Fund.
             887          (1) As used in this section, "fund" means the Alcoholic Beverage Control Act Legal
             888      Fund created in this section.
             889          (2) There is created a restricted special revenue fund known as the "Alcoholic
             890      Beverage Control Act Legal Fund."
             891          (3) (a) The fund consists of:
             892          (i) deposits made under Section 32B-3-205 ; and
             893          (ii) interest earned on the fund.
             894          (b) The fund shall earn interest. Interest on the fund shall be deposited into the fund.
             895          (4) The Office of the Attorney General shall expend money from the fund to


             896      supplement appropriations by the Legislature to fund enforcement of this title.
             897          Section 7. Section 32B-2-605 is amended to read:
             898           32B-2-605. Operational requirements for package agency.
             899          (1) (a) A person may not operate a package agency until a package agency agreement is
             900      entered into by the package agent and the department.
             901          (b) A package agency agreement shall state the conditions of operation by which the
             902      package agent and the department are bound.
             903          (c) (i) If a package agent or staff of the package agent violates this title, rules under this
             904      title, or the package agency agreement, the department may take any action against the package
             905      agent that is allowed by the package agency agreement.
             906          (ii) An action against a package agent is governed solely by its package agency
             907      agreement and may include suspension or revocation of the package agency.
             908          (iii) A package agency agreement shall provide procedures to be followed if a package
             909      agent fails to pay money owed to the department including a procedure for replacing the
             910      package agent or operator of the package agency.
             911          (iv) A package agency agreement shall provide that the package agency is subject to
             912      covert investigations for selling an alcoholic product to a minor.
             913          (v) Notwithstanding that this part refers to "package agency" or "package agent," staff
             914      of the package agency or package agent is subject to the same requirement or prohibition.
             915          (2) (a) A package agency shall be operated by an individual who is either:
             916          (i) the package agent; or
             917          (ii) an individual designated by the package agent.
             918          (b) An individual who is a designee under this Subsection (2) shall be:
             919          (i) an employee of the package agent; and
             920          (ii) responsible for the operation of the package agency.
             921          (c) The conduct of the designee is attributable to the package agent.
             922          (d) A package agent shall submit the name of the person operating the package agency
             923      to the department for the department's approval.
             924          (e) A package agent shall state the name and title of a designee on the application for a
             925      package agency.
             926          (f) A package agent shall:


             927          (i) inform the department of a proposed change in the individual designated to operate
             928      a package agency; and
             929          (ii) receive prior approval from the department before implementing the change
             930      described in this Subsection (2)(f).
             931          (g) Failure to comply with the requirements of this Subsection (2) may result in the
             932      immediate termination of a package agency agreement.
             933          (3) (a) A package agent shall display in a prominent place in the package agency the
             934      record issued by the commission that designates the package agency.
             935          (b) A package agent that displays or stores liquor at a location visible to the public
             936      shall display in a prominent place in the package agency a sign in large letters that consists of
             937      text in the following order:
             938          (i) a header that reads: "WARNING";
             939          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             940      can cause birth defects and permanent brain damage for the child.";
             941          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             942      [insert most current toll-free number] with questions or for more information.";
             943          (iv) a header that reads: "WARNING"; and
             944          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             945      serious crime that is prosecuted aggressively in Utah."
             946          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
             947      font style than the text described in Subsections (3)(b)(iv) and (v).
             948          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
             949      same font size.
             950          (d) The Department of Health shall work with the commission and department to
             951      facilitate consistency in the format of a sign required under this section.
             952          (4) A package agency may not display liquor or a price list in a window or showcase
             953      that is visible to passersby.
             954          (5) (a) A package agency may not purchase liquor from a person except from the
             955      department.
             956          (b) At the discretion of the department, liquor may be provided by the department to a
             957      package agency for sale on consignment.


             958          (6) A package agency may not store, sell, offer for sale, or furnish liquor in a place
             959      other than as designated in the package agent's application, unless the package agent first
             960      applies for and receives approval from the department for a change of location within the
             961      package agency premises.
             962          (7) A package agency may not sell, offer for sale, or furnish liquor except at a price
             963      fixed by the commission.
             964          (8) A package agency may not sell, offer for sale, or furnish liquor to:
             965          (a) a minor;
             966          (b) a person actually, apparently, or obviously intoxicated;
             967          (c) a known interdicted person; or
             968          (d) a known habitual drunkard.
             969          (9) (a) A package agency may not employ a minor to handle liquor.
             970          (b) (i) Staff of a package agency may not:
             971          (A) consume an alcoholic product on the premises of a package agency; or
             972          (B) allow any person to consume an alcoholic product on the premises of a package
             973      agency.
             974          (ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
             975          (10) (a) A package agency may not close or cease operation for a period longer than 72
             976      hours, unless:
             977          (i) the package agency notifies the department in writing at least seven days before the
             978      closing; and
             979          (ii) the closure or cessation of operation is first approved by the department.
             980          (b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package
             981      agency shall immediately notify the department by telephone.
             982          (c) (i) The department may authorize a closure or cessation of operation for a period
             983      not to exceed 60 days.
             984          (ii) The department may extend the initial period an additional 30 days upon written
             985      request of the package agency and upon a showing of good cause.
             986          (iii) A closure or cessation of operation may not exceed a total of 90 days without
             987      commission approval.
             988          (d) The notice required by Subsection (10)(a) shall include:


             989          (i) the dates of closure or cessation of operation;
             990          (ii) the reason for the closure or cessation of operation; and
             991          (iii) the date on which the package agency will reopen or resume operation.
             992          (e) Failure of a package agency to provide notice and to obtain department
             993      authorization before closure or cessation of operation results in an automatic termination of the
             994      package agency agreement effective immediately.
             995          (f) Failure of a package agency to reopen or resume operation by the approved date
             996      results in an automatic termination of the package agency agreement effective on that date.
             997          (11) A package agency may not transfer its operations from one location to another
             998      location without prior written approval of the commission. A package agency shall pay an
             999      application fee of $300 to apply for the written approval of the commission under this
             1000      Subsection (11).
             1001          (12) (a) A person, having been issued a package agency, may not sell, transfer, assign,
             1002      exchange, barter, give, or attempt in any way to dispose of the package agency to another
             1003      person, whether for monetary gain or not.
             1004          (b) A package agency has no monetary value for any type of disposition.
             1005          (13) (a) Subject to the other provisions of this Subsection (13):
             1006          (i) sale or delivery of liquor may not be made on or from the premises of a package
             1007      agency, and a package agency may not be kept open for the sale of liquor:
             1008          (A) on Sunday; or
             1009          (B) on a state or federal legal holiday.
             1010          (ii) Sale or delivery of liquor may be made on or from the premises of a package
             1011      agency, and a package agency may be open for the sale of liquor, only on a day and during
             1012      hours that the commission directs by rule or order.
             1013          (b) A package agency located at a manufacturing facility is not subject to Subsection
             1014      (13)(a) if:
             1015          (i) the package agency is located [at] on the same parcel as a manufacturing facility
             1016      licensed in accordance with Chapter 11, Manufacturing and Related Licenses Act;
             1017          (ii) the manufacturing facility licensed in accordance with Chapter 11, Manufacturing
             1018      and Related Licenses Act, holds:
             1019          (A) a full-service restaurant license;


             1020          (B) a limited-service restaurant license;
             1021          (C) a beer-only restaurant license; or
             1022          (D) dining club license;
             1023          (iii) the restaurant or dining club is located at the manufacturing facility;
             1024          (iv) the restaurant or dining club sells an alcoholic product produced [at] by the
             1025      manufacturing [facility] licensee;
             1026          (v) the manufacturing facility:
             1027          (A) owns the restaurant or dining club; or
             1028          (B) operates the restaurant or dining club;
             1029          (vi) the package agency only sells an alcoholic product produced [at] by the
             1030      manufacturing [facility] licensee; and
             1031          (vii) the package agency's days and hours of sale are the same as the days and hours of
             1032      sale at the restaurant or dining club.
             1033          (c) (i) Subsection (13)(a) does not apply to a package agency held by a resort licensee if
             1034      the package agent that holds the package agency to sell liquor at the resort does not sell liquor
             1035      in a manner similar to a state store.
             1036          (ii) The commission may by rule define what constitutes a package agency that sells
             1037      liquor "in a manner similar to a state store."
             1038          (d) As used in this Subsection (13), "parcel" means an identifiable single unit of
             1039      property that is treated as separate for valuation or zoning purposes and includes an
             1040      improvement on that unit of property.
             1041          (14) (a) Except to the extent authorized by commission rule, a minor may not be
             1042      admitted into, or be on the premises of a package agency unless accompanied by a person who
             1043      is:
             1044          (i) 21 years of age or older; and
             1045          (ii) the minor's parent, legal guardian, or spouse.
             1046          (b) A package agent or staff of a package agency that has reason to believe that a
             1047      person who is on the premises of a package agency is under the age of 21 and is not
             1048      accompanied by a person described in Subsection (14)(a) may:
             1049          (i) ask the suspected minor for proof of age;
             1050          (ii) ask the person who accompanies the suspected minor for proof of age; and


             1051          (iii) ask the suspected minor or the person who accompanies the suspected minor for
             1052      proof of parental, guardianship, or spousal relationship.
             1053          (c) A package agent or staff of a package agency shall refuse to sell liquor to the
             1054      suspected minor and to the person who accompanies the suspected minor into the package
             1055      agency if the minor or person fails to provide any information specified in Subsection (14)(b).
             1056          (d) A package agent or staff of a package agency shall require the suspected minor and
             1057      the person who accompanies the suspected minor into the package agency to immediately leave
             1058      the premises of the package agency if the minor or person fails to provide information specified
             1059      in Subsection (14)(b).
             1060          (15) (a) A package agency shall sell, offer for sale, or furnish liquor in a sealed
             1061      container.
             1062          (b) A person may not open a sealed container on the premises of a package agency.
             1063          (c) Notwithstanding Subsection (15)(a), a package agency may sell, offer for sale, or
             1064      furnish liquor in other than a sealed container:
             1065          (i) if the package agency is the type of package agency that authorizes the package
             1066      agency to sell, offer for sale, or furnish the liquor as part of room service;
             1067          (ii) if the liquor is sold, offered for sale, or furnished as part of room service; and
             1068          (iii) subject to:
             1069          (A) staff of the package agency providing the liquor in person only to an adult guest in
             1070      the guest room;
             1071          (B) staff of the package agency not leaving the liquor outside a guest room for retrieval
             1072      by a guest; and
             1073          (C) the same limits on the portions in which an alcoholic product may be sold by a
             1074      retail licensee under Section 32B-5-304 .
             1075          (16) On or after October 1, 2011, a package agency may not sell, offer for sale, or
             1076      furnish heavy beer in a sealed container that exceeds two liters.
             1077          (17) The department may pay or otherwise remunerate a package agent on any basis,
             1078      including sales or volume of business done by the package agency.
             1079          (18) The commission may prescribe by policy or rule general operational requirements
             1080      of a package agency that are consistent with this title and relate to:
             1081          (a) physical facilities;


             1082          (b) conditions of operation;
             1083          (c) hours of operation;
             1084          (d) inventory levels;
             1085          (e) payment schedules;
             1086          (f) methods of payment;
             1087          (g) premises security; and
             1088          (h) any other matter considered appropriate by the commission.
             1089          Section 8. Section 32B-3-205 is amended to read:
             1090           32B-3-205. Penalties.
             1091          (1) If the commission is satisfied that a person subject to administrative action violates
             1092      this title or the commission's rules, in accordance with Title 63G, Chapter 4, Administrative
             1093      Procedures Act, the commission may:
             1094          (a) suspend or revoke the person's license, permit, or certificate of approval;
             1095          (b) subject to Subsection (2), impose a fine against the person, including individual
             1096      staff of a licensee, permittee, or certificate holder;
             1097          (c) assess the administrative costs of a disciplinary proceeding to the person if the
             1098      person is a licensee, permittee, or certificate holder; or
             1099          (d) take a combination of actions described in this Subsection (1).
             1100          (2) (a) A fine imposed may not exceed $25,000 in the aggregate for:
             1101          (i) a single notice of agency action; or
             1102          (ii) a single action against a package agency.
             1103          (b) The commission shall by rule establish a schedule setting forth a range of fines for
             1104      each violation.
             1105          (3) [The] (a) Except as provided in Subsection (3)(b), the commission shall transfer
             1106      the costs assessed under this section into the General Fund in accordance with Section
             1107      32B-2-301 .
             1108          (b) Fines assessed under Subsection (11) shall be deposited as follows:
             1109          (i) $130,000 into the Alcoholic Beverage Control Act Legal Fund created in Section
             1110      32B-2-307 ; and
             1111          (ii) the remainder of the money into the Alcoholic Beverage Control Act Enforcement
             1112      Fund created in Section 32B-2-305 .


             1113          (4) (a) If a license or permit is suspended under this section, the licensee or permittee
             1114      shall prominently display a sign provided by the department:
             1115          (i) during the suspension; and
             1116          (ii) at the entrance of the premises of the licensee or permittee.
             1117          (b) The sign required by this Subsection (4) shall:
             1118          (i) read "The Utah Alcoholic Beverage Control Commission has suspended the
             1119      alcoholic product license or permit of this establishment. An alcoholic product may not be
             1120      sold, offered for sale, furnished, or consumed on these premises during the period of
             1121      suspension."; and
             1122          (ii) include the dates of the suspension period.
             1123          (c) A licensee or permittee may not remove, alter, obscure, or destroy a sign required to
             1124      be displayed under this Subsection (4) during the suspension period.
             1125          (5) (a) If a license or permit is revoked, the commission may order the revocation of a
             1126      bond posted by the licensee or permittee under this title.
             1127          (b) Notwithstanding Subsection (5)(a), the department may make a claim against a
             1128      bond posted by a licensee or permittee for money owed the department under this title without
             1129      the commission first revoking the license or permit.
             1130          (6) A licensee or permittee whose license or permit is revoked may not reapply for a
             1131      license or permit under this title for three years from the date on which the license or permit is
             1132      revoked.
             1133          (7) If a staff member of a licensee, permittee, or certificate holder is found to have
             1134      violated this title, in addition to imposing another penalty authorized by this title, the
             1135      commission may prohibit the staff member from handling, selling, furnishing, distributing,
             1136      manufacturing, wholesaling, or warehousing an alcoholic product in the course of acting as
             1137      staff with a licensee, permittee, or certificate holder under this title for a period determined by
             1138      the commission.
             1139          (8) (a) If the commission makes the finding described in Subsection (8)(b), in addition
             1140      to other penalties prescribed by this title, the commission may order:
             1141          (i) the removal of an alcoholic product of the manufacturer's, supplier's, or importer's
             1142      from the department's sales list; and
             1143          (ii) a suspension of the department's purchase of an alcoholic product described in


             1144      Subsection (8)(a)(i) for a period determined by the commission.
             1145          (b) The commission may take the action described in Subsection (8)(a) if:
             1146          (i) a manufacturer, supplier, or importer of liquor or its staff or representative violates
             1147      this title; and
             1148          (ii) the manufacturer, supplier, or importer:
             1149          (A) directly commits the violation; or
             1150          (B) solicits, requests, commands, encourages, or intentionally aids another to engage in
             1151      the violation.
             1152          (9) If the commission makes a finding that the brewer holding a certificate of approval
             1153      violates this title or rules of the commission, the commission may take an action against the
             1154      brewer holding a certificate of approval that the commission could take against a licensee
             1155      including:
             1156          (a) suspension or revocation of the certificate of approval; and
             1157          (b) imposition of a fine.
             1158          (10) Notwithstanding the other provisions of this title, the commission may not order a
             1159      disciplinary action or fine in accordance with this section if the disciplinary action or fine is
             1160      ordered on the basis of a violation:
             1161          (a) of a provision in this title related to intoxication or becoming intoxicated; and
             1162          (b) if the violation is first investigated by a law enforcement officer, as defined in
             1163      Section 53-13-103 , who has not received training regarding the requirements of this title
             1164      related to responsible alcoholic product sale or service.
             1165          (11) (a) The commission shall impose, at a minimum, the following penalties for a
             1166      violation related to service of an alcoholic product to a minor:
             1167          (i) for a first violation, a mandatory minimum fine of $3,000;
             1168          (ii) for a second violation that occurs within three years of the day on which the penalty
             1169      is imposed for the first violation:
             1170          (A) a mandatory minimum suspension of five days, served in successive days,
             1171      including a weekend; and
             1172          (B) a mandatory minimum fine of $5,000; and
             1173          (iii) for a third violation that occurs within three years of the day on which the penalty
             1174      is imposed for the first violation:


             1175          (A) a mandatory minimum suspension of 14 days, served in successive days, including
             1176      two weekends; and
             1177          (B) a mandatory minimum fine of $15,000.
             1178          (b) The commission may not waive the penalties imposed under this Subsection (11).
             1179          (12) (a) For a violation of Section 32B-1-407 or admitting a minor to a place where an
             1180      alcoholic product is sold or consumed, but where under this title a minor is not permitted, the
             1181      commission shall impose, at a minimum, a suspension of five days or a fine of $1,000.
             1182          (b) The commission may not waive the penalties imposed under this Subsection (12).
             1183          Section 9. Section 32B-5-205 is amended to read:
             1184           32B-5-205. Conditional retail license.
             1185          (1) As used in this section:
             1186          (a) "Conditional retail license" means a retail license that:
             1187          [(i) is for one of the following:]
             1188          [(A) a full-service restaurant license; or]
             1189          [(B) a limited-service restaurant license;]
             1190          [(ii)] (i) conditions the holder's ability to sell, offer for sale, furnish, or allow the
             1191      consumption of an alcoholic product on its licensed premises on the person submitting to the
             1192      department a copy of the holder's current business license before obtaining a valid retail
             1193      license; and
             1194          [(iii)] (ii) provides that the holder will be issued a valid retail license if the holder
             1195      complies with the requirements of Subsection (3).
             1196          (b) "Valid retail license" means a retail license issued pursuant to this part under which
             1197      the holder is permitted to sell, offer for sale, furnish, or allow the consumption of an alcoholic
             1198      product on its licensed premises.
             1199          (2) Subject to the requirements of this section, the commission may issue a conditional
             1200      retail license to a person if the person:
             1201          (a) meets the requirements to obtain the retail license for which the person is applying
             1202      except the requirement to submit a copy of the person's current business license; and
             1203          (b) agrees not to sell, offer for sale, furnish, or allow the consumption of an alcoholic
             1204      product on its licensed premises before obtaining a valid retail license.
             1205          (3) (a) A conditional retail license becomes a valid retail license on the day on which


             1206      the department notifies the person who holds the conditional retail license that the department
             1207      finds that the person has complied with Subsection (3)(b).
             1208          (b) For a conditional retail license to become a valid retail license, a person who holds
             1209      the conditional retail license shall:
             1210          (i) submit to the department a copy of the person's current business license; and
             1211          (ii) provide to the department evidence satisfactory to the department that:
             1212          (A) there has been no change in the information submitted to the commission as part of
             1213      the person's application for a retail license; and
             1214          (B) the person continues to qualify for the retail license.
             1215          (4) (a) A conditional retail license expires six months after the day on which the
             1216      commission issues the conditional retail license, unless the conditional retail license becomes a
             1217      valid retail license before that day.
             1218          (b) Notwithstanding Subsection (4)(a), the commission may extend the time period of a
             1219      conditional retail license an additional three months if the holder of the conditional license can
             1220      show to the satisfaction of the commission that the holder of the conditional license:
             1221          (i) has an active building permit related to the licensed premises; and
             1222          (ii) is engaged in a good faith effort to pursue completion within the three-month
             1223      period.
             1224          Section 10. Section 32B-5-207 is enacted to read:
             1225          32B-5-207. Multiple retail licenses at same building.
             1226          (1) (a) The commission may not issue to one or more retail licensees more than one
             1227      type of retail license for the same building unless the commission determines that:
             1228          (i) the licensed premises for each retail license is in a separate room within the
             1229      building; and
             1230          (ii) the requirements for each retail license are met.
             1231          (b) The commission may define "separate room" by rule made in accordance with Title
             1232      63G, Chapter 3, Utah Administrative Rulemaking Act.
             1233          (2) Notwithstanding Subsection (1), the commission may issue more than one type of
             1234      retail license for the same building if:
             1235          (a) each retail license operates at a different day or time;
             1236          (b) the requirements for each retail license are met; and


             1237          (c) the types of retail licenses issued are:
             1238          (i) (A) on-premise beer retailer license associated with a ski resort;
             1239          (B) a full-service restaurant license, a limited-service restaurant license, or a beer-only
             1240      restaurant license; and
             1241          (C) an on-premise banquet catering license; or
             1242          (ii) (A) a full-service restaurant license, a limited-service restaurant license, or a
             1243      beer-only restaurant license; and
             1244          (B) an on-premise banquet catering license.
             1245          (3) (a) If on May 14, 2013, a building has more than one type of retail license within
             1246      the building in a manner that violates Subsection (1) or (2), the one or more retail licensees
             1247      may operate under the different types of retail licenses until January 1, 2015.
             1248          (b) The commission shall establish by rule, made in accordance with Title 63G,
             1249      Chapter 3, Utah Administrative Rulemaking Act, the process to be followed to determine
             1250      which retail license described in Subsection (2) may continue to operate within the building on
             1251      and after January 1, 2015.
             1252          Section 11. Section 32B-5-301 is amended to read:
             1253           32B-5-301. General operational requirements.
             1254          (1) (a) A retail licensee and staff of a retail licensee shall comply with this title and the
             1255      rules of the commission, including the relevant part under Chapter 6, Specific Retail License
             1256      Act, for the specific type of retail license.
             1257          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             1258      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             1259          (i) a retail licensee;
             1260          (ii) individual staff of a retail licensee; or
             1261          (iii) both a retail licensee and staff of the retail licensee.
             1262          (2) (a) If there is a conflict between this part and the relevant part under Chapter 6,
             1263      Specific Retail License Act, for the specific type of retail license, the relevant part under
             1264      Chapter 6 governs.
             1265          (b) Notwithstanding that this part refers to "liquor" or an "alcoholic product," a retail
             1266      licensee may only sell, offer for sale, furnish, or allow the consumption of an alcoholic product
             1267      specifically authorized by the relevant part under Chapter 6, Specific Retail License Act.


             1268          (c) Notwithstanding that this part or the relevant part under Chapter 6, Specific Retail
             1269      License Act, refers to "retail licensee," staff of the retail licensee is subject to the same
             1270      requirement or prohibition.
             1271          (3) (a) A retail licensee shall display in a prominent place in the licensed premises the
             1272      retail license that is issued by the department.
             1273          (b) A retail licensee shall display in a prominent place a sign in large letters that
             1274      consists of text in the following order:
             1275          (i) a header that reads: "WARNING";
             1276          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             1277      can cause birth defects and permanent brain damage for the child.";
             1278          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             1279      [insert most current toll-free number] with questions or for more information.";
             1280          (iv) a header that reads: "WARNING"; and
             1281          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             1282      serious crime that is prosecuted aggressively in Utah."
             1283          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
             1284      font style than the text described in Subsections (3)(b)(iv) and (v).
             1285          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
             1286      same font size.
             1287          (d) The Department of Health shall work with the commission and department to
             1288      facilitate consistency in the format of a sign required under this section.
             1289          (4) A retail licensee may not on the licensed premises:
             1290          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
             1291      Chapter 10, Part 11, Gambling;
             1292          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             1293      Part 11, Gambling; or
             1294          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             1295      the risking of something of value for a return or for an outcome when the return or outcome is
             1296      based upon an element of chance, excluding the playing of an amusement device that confers
             1297      only an immediate and unrecorded right of replay not exchangeable for value.
             1298          (5) A retail licensee may not knowingly allow a person on the licensed premises to, in


             1299      violation of Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
             1300      Paraphernalia Act:
             1301          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
             1302      58-37-2 ; or
             1303          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             1304      Section 58-37a-3 .
             1305          (6) Upon the presentation of credentials, at any time during which a retail licensee is
             1306      open for the transaction of business, the retail licensee shall immediately:
             1307          (a) admit a commissioner, authorized department employee, or law enforcement officer
             1308      to the retail licensee's premises; and
             1309          (b) permit, without hindrance or delay, the person described in Subsection (6)(a) to
             1310      inspect completely:
             1311          (i) the entire premises of the retail licensee; and
             1312          (ii) the records of the retail licensee.
             1313          (7) An individual may not consume an alcoholic product on the licensed premises of a
             1314      retail licensee on any day during the period:
             1315          (a) beginning one hour after the time of day that the period during which a retail
             1316      licensee may not sell, offer for sale, or furnish an alcoholic product on the licensed premises
             1317      begins; and
             1318          (b) ending at the time specified in the relevant part under Chapter 6, Specific Retail
             1319      License Act, for the type of retail license when the retail licensee may first sell, offer for sale,
             1320      or furnish an alcoholic product on the licensed premises on that day.
             1321          (8) (a) The time period a retail licensee may sell, offer for sale, or furnish an alcoholic
             1322      product is specified in the relevant part under Chapter 6, Specific Retail License Act, for the
             1323      type of retail license.
             1324          (b) Notwithstanding Subsection (8)(a), a local authority may impose more restrictive
             1325      hours during which a retail licensee may sell, offer for sale, or furnish an alcoholic product.
             1326          Section 12. Section 32B-5-304 is amended to read:
             1327           32B-5-304. Portions in which alcoholic product may be sold.
             1328          (1) (a) A retail licensee may sell, offer for sale, or furnish a primary spirituous liquor
             1329      only in a quantity that does not exceed 1.5 ounces per beverage dispensed through a calibrated


             1330      metered dispensing system approved by the department in accordance with commission rules
             1331      adopted under this title, except that:
             1332          [(a)] (i) spirituous liquor need not be dispensed through a calibrated metered
             1333      dispensing system if used as a secondary flavoring ingredient in a beverage subject to the
             1334      following requirements:
             1335          [(i)] (A) the secondary ingredient may be dispensed only in conjunction with the
             1336      purchase of a primary spirituous liquor;
             1337          [(ii)] (B) the secondary ingredient may not be the only spirituous liquor in the
             1338      beverage;
             1339          [(iii)] (C) the retail licensee shall designate a location where flavorings are stored on
             1340      the floor plan submitted to the department; and
             1341          [(iv)] (D) a flavoring container shall be plainly and conspicuously labeled "flavorings";
             1342          [(b)] (ii) spirituous liquor need not be dispensed through a calibrated metered
             1343      dispensing system if used:
             1344          [(i)] (A) as a flavoring on a dessert; and
             1345          [(ii)] (B) in the preparation of a flaming food dish, drink, or dessert; and
             1346          [(c)] (iii) a patron may have no more than 2.5 ounces of spirituous liquor at a time.
             1347          (b) A retail licensee may sell, offer for sale, or furnish an individual portion of
             1348      spirituous liquor to a patron in more than one container if:
             1349          (i) the total amount of spirituous liquor in all of the containers does not exceed 1.5
             1350      ounces;
             1351          (ii) the retail licensee holds a manufacturing license;
             1352          (iii) the portion is provided in separate containers for educational purposes;
             1353          (iv) no more than six containers are provided at the same time; and
             1354          (v) a patron is offered only one set of containers per day by the retail licensee.
             1355          (2) (a) (i) A retail licensee may sell, offer for sale, or furnish wine by the glass or in an
             1356      individual portion that does not exceed 5 ounces per glass or individual portion.
             1357          (ii) A retail licensee may sell, offer for sale, or furnish an individual portion of wine to
             1358      a patron in more than one [glass] container if the total amount of wine does not exceed 5
             1359      ounces.
             1360          (b) (i) A retail licensee may sell, offer for sale, or furnish wine in a container not


             1361      exceeding 1.5 liters at a price fixed by the commission to a table of four or more persons.
             1362          (ii) A retail licensee may sell, offer for sale, or furnish wine in a container not to
             1363      exceed 750 milliliters at a price fixed by the commission to a table of less than four persons.
             1364          (3) (a) A retail licensee may sell, offer for sale, or furnish heavy beer in an original
             1365      container at a price fixed by the commission, except that the original container may not exceed
             1366      one liter.
             1367          (b) A retail licensee may sell, offer for sale, or furnish an individual portion of heavy
             1368      beer to a patron in more than one container if:
             1369          (i) the total amount of heavy beer in all of the containers does not exceed 12 ounces;
             1370          (ii) the retail licensee holds a manufacturing license;
             1371          (iii) the portion is provided in separate containers for educational purposes;
             1372          (iv) no more than six containers are provided at the same time; and
             1373          (v) a patron is offered only one set of containers per day by the retail licensee.
             1374          (4) A retail licensee may sell, offer for sale, or furnish a flavored malt beverage in an
             1375      original container at a price fixed by the commission, except that the original container may not
             1376      exceed one liter.
             1377          (5) (a) Subject to Subsection (5)(b), a retail licensee may sell, offer for sale, or furnish
             1378      beer for on-premise consumption:
             1379          (i) in an open original container; and
             1380          (ii) in a container on draft.
             1381          (b) A retail licensee may not sell, offer for sale, or furnish beer under Subsection (5)(a):
             1382          (i) in a size of container that exceeds two liters; or
             1383          (ii) to an individual patron in a size of container that exceeds one liter.
             1384          (c) A retail licensee may sell, offer for sale, or furnish an individual portion of beer to a
             1385      patron in more than one container if:
             1386          (i) the total amount of beer in all of the containers does not exceed 12 ounces;
             1387          (ii) the retail licensee holds a manufacturing license;
             1388          (iii) the portions are provided in separate containers for educational purposes;
             1389          (iv) no more than six containers are provided at the same time; and
             1390          (v) a patron is offered only one set of containers per day by the retail licensee.
             1391          Section 13. Section 32B-5-309 (Superseded 07/01/13) is amended to read:


             1392           32B-5-309 (Superseded 07/01/13). Ceasing operation -- Prohibiting transfer of
             1393      license.
             1394          (1) (a) Except as provided in Subsection (1)(h), a retail licensee may not close or cease
             1395      operation for a period longer than 240 hours, unless:
             1396          (i) the retail licensee notifies the department in writing at least seven days before the
             1397      day on which the retail licensee closes or ceases operation; and
             1398          (ii) the closure or cessation of operation is first approved by the department.
             1399          (b) Notwithstanding Subsection (1)(a), in the case of emergency closure, a retail
             1400      licensee shall immediately notify the department by telephone.
             1401          (c) (i) The department may authorize a closure or cessation of operation of a retail
             1402      licensee for a period not to exceed 60 days.
             1403          (ii) The department may extend the initial period an additional 30 days upon:
             1404          (A) written request of the retail licensee; and
             1405          (B) a showing of good cause.
             1406          (d) A closure or cessation of operation may not exceed a total of 90 days without
             1407      commission approval.
             1408          (e) A notice required under this Subsection (1) shall include:
             1409          (i) the dates of closure or cessation of operation;
             1410          (ii) the reason for the closure or cessation of operation; and
             1411          (iii) the date on which the retail licensee will reopen or resume operation.
             1412          (f) Failure of a retail licensee to provide notice and to obtain department approval
             1413      before closure or cessation of operation results in an automatic forfeiture of:
             1414          (i) the retail license; and
             1415          (ii) the unused portion of the retail license fee for the remainder of the retail license
             1416      year effective immediately.
             1417          (g) Failure of a retail licensee to reopen or resume operation by the approved date
             1418      results in an automatic forfeiture of:
             1419          (i) the retail license; and
             1420          (ii) the unused portion of the retail license fee for the remainder of the retail license
             1421      year.
             1422          (h) This Subsection (1) does not apply to:


             1423          (i) an on-premise beer retailer who is not a tavern; or
             1424          (ii) an airport lounge licensee.
             1425          (2) A retail licensee may not transfer a retail license from one location to another
             1426      location, without prior written approval of the commission. A retail licensee shall pay an
             1427      application fee of $300 to apply for the written approval of the commission under this
             1428      Subsection (2).
             1429          (3) (a) A person, having been issued a retail license may not sell, transfer, assign,
             1430      exchange, barter, give, or attempt in any way to dispose of the retail license to another person
             1431      whether for monetary gain or not.
             1432          (b) A retail license has no monetary value for any type of disposition.
             1433          Section 14. Section 32B-5-311 is enacted to read:
             1434          32B-5-311. Private events at retail licensee premises.
             1435          Subject to Section 32B-5-309 , a retail licensee may temporarily rent or otherwise
             1436      temporarily lease its premises to a person after the hours the retail licensee may sell, offer for
             1437      sale, or furnish an alcoholic product if:
             1438          (1) the person who temporarily rents or leases the licensed premises obtains an event
             1439      permit under Chapter 9, Event Permit Act, for the time period that the retail licensee rents or
             1440      otherwise leases its licensed premises;
             1441          (2) the event for which the licensed premises are leased is not open to the public;
             1442          (3) the person to whom the retail licensee rents or leases the premises agrees in writing
             1443      to comply with this title as if the person is the retail licensee, except for:
             1444          (a) a requirement related to making or maintaining a record; and
             1445          (b) the hours during which an alcoholic product may be sold, offered for sale, or
             1446      furnished; and
             1447          (4) the retail licensee takes reasonable steps to ensure that the person complies with
             1448      this section.
             1449          Section 15. Section 32B-6-203 is amended to read:
             1450           32B-6-203. Commission's power to issue full-service restaurant license.
             1451          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             1452      an alcoholic product on its premises as a full-service restaurant, the person shall first obtain a
             1453      full-service restaurant license from the commission in accordance with this part.


             1454          (2) The commission may issue a full-service restaurant license to establish full-service
             1455      restaurant licensed premises at places and in numbers the commission considers proper for the
             1456      storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises
             1457      operated as a full-service restaurant.
             1458          (3) Subject to Section 32B-1-201 :
             1459          (a) The commission may not issue a total number of full-service restaurant licenses that
             1460      at any time exceeds the number determined by dividing the population of the state by 4,534.
             1461          (b) The commission may issue a seasonal full-service restaurant license in accordance
             1462      with Section 32B-5-206 .
             1463          (c) (i) If the location, design, and construction of a hotel may require more than one
             1464      full-service restaurant sales location within the hotel to serve the public convenience, the
             1465      commission may authorize the sale, offer for sale, or furnishing of an alcoholic product at as
             1466      many as three full-service restaurant locations within the hotel under one full-service restaurant
             1467      license if:
             1468          (A) the hotel has a minimum of 150 guest rooms; and
             1469          (B) the locations under the full-service restaurant license are:
             1470          (I) within the same hotel; and
             1471          (II) on premises that are managed or operated, and owned or leased, by the full-service
             1472      restaurant licensee.
             1473          (ii) A facility other than a hotel shall have a separate full-service restaurant license for
             1474      each full-service restaurant where an alcoholic product is sold, offered for sale, or furnished.
             1475          (d) The commission may not issue a single full-service restaurant license to a
             1476      full-service restaurant that would have licensed premises in more than one building.
             1477          (4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
             1478      full-service restaurant license for premises that do not meet the proximity requirements of
             1479      Section 32B-1-202 .
             1480          (b) With respect to the premises of a full-service restaurant license issued by the
             1481      commission that undergoes a change of ownership, the commission shall waive or vary the
             1482      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             1483      full-service restaurant license to the new owner of the premises if:
             1484          (i) when a full-service restaurant license was issued to a previous owner, the premises


             1485      met the proximity requirements of Subsection 32B-1-202 (2);
             1486          (ii) the premises has had a full-service restaurant license at all times since the
             1487      full-service restaurant license described in Subsection (4)(b)(i) was issued without a variance;
             1488      and
             1489          (iii) the community location was located within the proximity requirements of
             1490      Subsection 32B-1-202 (2) after the day on which the full-service restaurant license described in
             1491      Subsection (4)(b)(i) was issued.
             1492          Section 16. Section 32B-6-205 is amended to read:
             1493           32B-6-205. Specific operational requirements for a full-service restaurant license.
             1494          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             1495      Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
             1496      shall comply with this section.
             1497          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             1498      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             1499          (i) a full-service restaurant licensee;
             1500          (ii) individual staff of a full-service restaurant licensee; or
             1501          (iii) both a full-service restaurant licensee and staff of the full-service restaurant
             1502      licensee.
             1503          (2) In addition to complying with Subsection 32B-5-301 (3), a full-service restaurant
             1504      licensee shall display in a prominent place in the restaurant a list of the types and brand names
             1505      of liquor being furnished through the full-service restaurant licensee's calibrated metered
             1506      dispensing system.
             1507          (3) In addition to complying with Section 32B-5-303 , a full-service restaurant licensee
             1508      shall store an alcoholic product in a storage area described in Subsection (12)(a).
             1509          (4) (a) An individual who serves an alcoholic product in a full-service restaurant
             1510      licensee's premises shall make a written beverage tab for each table or group that orders or
             1511      consumes an alcoholic product on the premises.
             1512          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
             1513      alcoholic product ordered or consumed.
             1514          (5) A person's willingness to serve an alcoholic product may not be made a condition
             1515      of employment as a server with a full-service restaurant licensee.


             1516          (6) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish liquor at
             1517      the licensed premises on any day during the period that:
             1518          (i) begins at midnight; and
             1519          (ii) ends at 11:29 a.m.
             1520          (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer during the
             1521      hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer,
             1522      except that a full-service restaurant licensee may not sell, offer for sale, or furnish beer before
             1523      11:30 a.m. on any day.
             1524          (7) A full-service restaurant licensee shall maintain at least 70% of its total restaurant
             1525      business from the sale of food, which does not include:
             1526          (a) mix for an alcoholic product; or
             1527          (b) a service charge.
             1528          (8) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
             1529      alcoholic product except in connection with an order for food prepared, sold, and furnished at
             1530      the licensed premises.
             1531          (b) A full-service restaurant licensee shall maintain on the licensed premises adequate
             1532      culinary facilities for food preparation and dining accommodations.
             1533          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
             1534      more than two alcoholic products of any kind at a time before the patron.
             1535          (b) A patron may not have more than one spirituous liquor drink at a time before the
             1536      patron.
             1537          (c) An individual portion of wine is considered to be one alcoholic product under
             1538      Subsection (9)(a).
             1539          (10) (a) A patron may consume an alcoholic product only:
             1540          [(a)] (i) while seated at:
             1541          [(i)] (A) the patron's table;
             1542          [(ii)] (B) a counter; or
             1543          [(iii)] (C) a seating grandfathered bar structure; and
             1544          [(b)] (ii) where food is served.
             1545          (b) A patron may not be served or consume an alcoholic product anywhere on the
             1546      licensed premises other than at a location described in Subsection (10)(a) regardless of its


             1547      proximity to a location described in Subsection (10)(a).
             1548          (11) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
             1549      alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
             1550      structure that is not a seating grandfathered bar structure.
             1551          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
             1552      may:
             1553          (i) sit;
             1554          (ii) be furnished an alcoholic product; and
             1555          (iii) consume an alcoholic product.
             1556          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
             1557      full-service restaurant licensee may not permit a minor to, and a minor may not:
             1558          (i) sit; or
             1559          (ii) consume food or beverages.
             1560          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is employed
             1561      by a full-service restaurant licensee:
             1562          (A) as provided in Subsection 32B-5-308 (2); or
             1563          (B) to perform maintenance and cleaning services during an hour when the full-service
             1564      restaurant licensee is not open for business.
             1565          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
             1566      remaining or sitting at the bar structure en route to an area of a full-service restaurant licensee's
             1567      premises in which the minor is permitted to be.
             1568          (12) Except as provided in Subsection 32B-5-307 (3), a full-service restaurant licensee
             1569      may dispense an alcoholic product only if:
             1570          (a) the alcoholic product is dispensed from:
             1571          (i) a grandfathered bar structure;
             1572          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
             1573      the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
             1574      12, 2009; or
             1575          (iii) an area that is:
             1576          (A) separated from an area for the consumption of food by a patron by a solid,
             1577      translucent, permanent structural barrier such that the facilities for the storage or dispensing of


             1578      an alcoholic product are:
             1579          (I) not readily visible to a patron; and
             1580          (II) not accessible by a patron; and
             1581          (B) apart from an area used:
             1582          (I) for dining;
             1583          (II) for staging; or
             1584          (III) as a lobby or waiting area;
             1585          (b) the full-service restaurant licensee uses an alcoholic product that is:
             1586          (i) stored in an area described in Subsection (12)(a); or
             1587          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             1588          (A) immediately before the alcoholic product is dispensed it is in an unopened
             1589      container;
             1590          (B) the unopened container is taken to an area described in Subsection (12)(a) before it
             1591      is opened; and
             1592          (C) once opened, the container is stored in an area described in Subsection (12)(a); and
             1593          (c) any instrument or equipment used to dispense alcoholic product is located in an
             1594      area described in Subsection (12)(a).
             1595          (13) A full-service restaurant licensee may state in a food or alcoholic product menu a
             1596      charge or fee made in connection with the sale, service, or consumption of liquor including:
             1597          (a) a set-up charge;
             1598          (b) a service charge; or
             1599          (c) a chilling fee.
             1600          (14) Except as provided in Subsection 32B-5-307 (3)(d) and notwithstanding
             1601      Subsection 32B-6-706 (4), a full-service restaurant licensee may not allow a patron to remove a
             1602      container containing an alcoholic product from the licensed premises of the full-service
             1603      restaurant unless the full-service restaurant licensee holds a package agency under which the
             1604      full-service restaurant licensee may sell, offer for sale, or furnish sealed containers of an
             1605      alcoholic product.
             1606          Section 17. Section 32B-6-303 is amended to read:
             1607           32B-6-303. Commission's power to issue limited-service restaurant license.
             1608          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of


             1609      wine, heavy beer, or beer on its premises as a limited-service restaurant, the person shall first
             1610      obtain a limited-service restaurant license from the commission in accordance with this part.
             1611          (2) (a) The commission may issue a limited-service restaurant license to establish
             1612      limited-service restaurant licensed premises at places and in numbers the commission considers
             1613      proper for the storage, sale, offer for sale, furnishing, and consumption of wine, heavy beer, or
             1614      beer on premises operated as a limited-service restaurant.
             1615          (b) A person may not sell, offer for sale, furnish, or allow the consumption of the
             1616      following on the licensed premises of a limited-service restaurant licensee:
             1617          (i) spirituous liquor; or
             1618          (ii) a flavored malt beverage.
             1619          (3) Subject to Section 32B-1-201 :
             1620          (a) The commission may not issue a total number of limited-service restaurant licenses
             1621      that at any time exceeds the number determined by dividing the population of the state by
             1622      7,493.
             1623          (b) The commission may issue a seasonal limited-service restaurant license in
             1624      accordance with Section 32B-5-206 .
             1625          (c) (i) If the location, design, and construction of a hotel may require more than one
             1626      limited-service restaurant sales location within the hotel to serve the public convenience, the
             1627      commission may authorize the sale of wine, heavy beer, and beer at as many as three
             1628      limited-service restaurant locations within the hotel under one limited-service restaurant license
             1629      if:
             1630          (A) the hotel has a minimum of 150 guest rooms; and
             1631          (B) the locations under the limited-service restaurant license are:
             1632          (I) within the same hotel; and
             1633          (II) on premises that are managed or operated, and owned or leased, by the
             1634      limited-service restaurant licensee.
             1635          (ii) A facility other than a hotel shall have a separate limited-service restaurant license
             1636      for each limited-service restaurant where wine, heavy beer, or beer is sold, offered for sale, or
             1637      furnished.
             1638          (d) The commission may not issue a single limited-service restaurant license to a
             1639      limited-service restaurant that would have licensed premises in more than one building.


             1640          (4) (a) Except as provided in Subsection (4)(b), the commission may not issue a
             1641      limited-service restaurant license for premises that do not meet the proximity requirements of
             1642      Section 32B-1-202 .
             1643          (b) With respect to the premises of a limited-service restaurant license issued by the
             1644      commission that undergoes a change of ownership, the commission shall waive or vary the
             1645      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             1646      limited-service restaurant license to the new owner of the premises if:
             1647          (i) when a limited-service restaurant license was issued to a previous owner, the
             1648      premises met the proximity requirements of Subsection 32B-1-202 (2);
             1649          (ii) the premises has had a limited-service restaurant license at all times since the
             1650      limited-service restaurant license described in Subsection (4)(b)(i) was issued without a
             1651      variance; and
             1652          (iii) the community location was located within the proximity requirements of
             1653      Subsection 32B-1-202 (2) after the day on which the limited-service restaurant license
             1654      described in Subsection (4)(b)(i) was issued.
             1655          Section 18. Section 32B-6-305 is amended to read:
             1656           32B-6-305. Specific operational requirements for a limited-service restaurant
             1657      license.
             1658          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             1659      Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
             1660      licensee shall comply with this section.
             1661          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             1662      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             1663          (i) a limited-service restaurant licensee;
             1664          (ii) individual staff of a limited-service restaurant licensee; or
             1665          (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
             1666      licensee.
             1667          (2) (a) A limited-service restaurant licensee on the licensed premises may not sell, offer
             1668      for sale, furnish, or allow consumption of:
             1669          (i) spirituous liquor; or
             1670          (ii) a flavored malt beverage.


             1671          (b) A product listed in Subsection (2)(a) may not be on the premises of a
             1672      limited-service restaurant licensee except for use:
             1673          (i) as a flavoring on a dessert; and
             1674          (ii) in the preparation of a flaming food dish, drink, or dessert.
             1675          (3) In addition to complying with Section 32B-5-303 , a limited-service restaurant
             1676      licensee shall store an alcoholic product in a storage area described in Subsection (12)(a).
             1677          (4) (a) An individual who serves an alcoholic product in a limited-service restaurant
             1678      licensee's premises shall make a written beverage tab for each table or group that orders or
             1679      consumes an alcoholic product on the premises.
             1680          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
             1681      alcoholic product ordered or consumed.
             1682          (5) A person's willingness to serve an alcoholic product may not be made a condition
             1683      of employment as a server with a limited-service restaurant licensee.
             1684          (6) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish wine
             1685      or heavy beer at the licensed premises on any day during the period that:
             1686          (i) begins at midnight; and
             1687          (ii) ends at 11:29 a.m.
             1688          (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer during
             1689      the hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer,
             1690      except that a limited-service restaurant licensee may not sell, offer for sale, or furnish beer
             1691      before 11:30 a.m. on any day.
             1692          (7) A limited-service restaurant licensee shall maintain at least 70% of its total
             1693      restaurant business from the sale of food, which does not include a service charge.
             1694          (8) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
             1695      alcoholic product except in connection with an order for food prepared, sold, and furnished at
             1696      the licensed premises.
             1697          (b) A limited-service restaurant licensee shall maintain on the licensed premises
             1698      adequate culinary facilities for food preparation and dining accommodations.
             1699          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
             1700      more than two alcoholic products of any kind at a time before the patron.
             1701          (b) An individual portion of wine is considered to be one alcoholic product under


             1702      Subsection (9)(a).
             1703          (10) (a) A patron may consume an alcoholic product only:
             1704          [(a)] (i) while seated at:
             1705          [(i)] (A) the patron's table;
             1706          [(ii)] (B) a counter; or
             1707          [(iii)] (C) a seating grandfathered bar structure; and
             1708          [(b)] (ii) where food is served.
             1709          (b) A patron may not be served or consume an alcoholic product anywhere on the
             1710      licensed premises other than at a location described in Subsection (10)(a) regardless of its
             1711      proximity to a location described in Subsection (10)(a).
             1712          (11) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
             1713      alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
             1714      structure that is not a seating grandfathered bar structure.
             1715          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
             1716      may:
             1717          (i) sit;
             1718          (ii) be furnished an alcoholic product; and
             1719          (iii) consume an alcoholic product.
             1720          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
             1721      limited-service restaurant licensee may not permit a minor to, and a minor may not:
             1722          (i) sit; or
             1723          (ii) consume food or beverages.
             1724          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is employed
             1725      by a limited-service restaurant licensee:
             1726          (A) as provided in Subsection 32B-5-308 (2); or
             1727          (B) to perform maintenance and cleaning services during an hour when the
             1728      limited-service restaurant licensee is not open for business.
             1729          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
             1730      remaining or sitting at the bar structure en route to an area of a limited-service restaurant
             1731      licensee's premises in which the minor is permitted to be.
             1732          (12) Except as provided in Subsection 32B-5-307 (3), a limited-service restaurant


             1733      licensee may dispense an alcoholic product only if:
             1734          (a) the alcoholic product is dispensed from:
             1735          (i) a grandfathered bar structure;
             1736          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
             1737      the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
             1738      12, 2009; or
             1739          (iii) an area that is:
             1740          (A) separated from an area for the consumption of food by a patron by a solid,
             1741      translucent, permanent structural barrier such that the facilities for the storage or dispensing of
             1742      an alcoholic product are:
             1743          (I) not readily visible to a patron; and
             1744          (II) not accessible by a patron; and
             1745          (B) apart from an area used:
             1746          (I) for dining;
             1747          (II) for staging; or
             1748          (III) as a lobby or waiting area;
             1749          (b) the limited-service restaurant licensee uses an alcoholic product that is:
             1750          (i) stored in an area described in Subsection (12)(a); or
             1751          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             1752          (A) immediately before the alcoholic product is dispensed it is in an unopened
             1753      container;
             1754          (B) the unopened container is taken to an area described in Subsection (12)(a) before it
             1755      is opened; and
             1756          (C) once opened, the container is stored in an area described in Subsection (12)(a); and
             1757          (c) any instrument or equipment used to dispense alcoholic product is located in an
             1758      area described in Subsection (12)(a).
             1759          (13) A limited-service restaurant licensee may state in a food or alcoholic product
             1760      menu a charge or fee made in connection with the sale, service, or consumption of wine or
             1761      heavy beer including:
             1762          (a) a set-up charge;
             1763          (b) a service charge; or


             1764          (c) a chilling fee.
             1765          (14) Except as provided in Subsection 32B-5-307 (3)(d) and notwithstanding
             1766      Subsection 32B-6-706 (4), a limited-service restaurant licensee may not allow a patron to
             1767      remove a container containing an alcoholic product from the licensed premises of the
             1768      limited-service restaurant unless the limited-service restaurant licensee holds a package agency
             1769      under which the limited-service restaurant licensee may sell, offer for sale, or furnish sealed
             1770      containers of an alcoholic product.
             1771          Section 19. Section 32B-6-903 is amended to read:
             1772           32B-6-903. Commission's power to issue beer-only restaurant license.
             1773          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
             1774      beer on its premises as a beer-only restaurant, the person shall first obtain a beer-only
             1775      restaurant license from the commission in accordance with this part.
             1776          (2) (a) The commission may issue a beer-only restaurant license to establish beer-only
             1777      restaurant licensed premises at places and in numbers the commission considers proper for the
             1778      storage, sale, offer for sale, furnishing, and consumption of beer on premises operated as a
             1779      beer-only restaurant.
             1780          (b) A person may not sell, offer for sale, furnish, or allow the consumption of liquor on
             1781      the licensed premises of a beer-only restaurant licensee.
             1782          (3) (a) Only one beer-only restaurant license is required for each building or resort
             1783      facility owned or leased by the same person.
             1784          (b) A separate license is not required for each beer-only restaurant license dispensing
             1785      location in the same building or on the same resort premises owned or operated by the same
             1786      person.
             1787          (c) Except as provided in Subsections (3)(a) and (b), the commission may not issue a
             1788      single beer-only restaurant license to a beer-only restaurant that would have licensed premises
             1789      in more than one building.
             1790          (4) (a) Except as provided in Subsection (4)(b) or (c), the commission may not issue a
             1791      beer-only restaurant license for premises that do not meet the proximity requirements of
             1792      Section 32B-1-202 .
             1793          (b) With respect to the premises of a beer-only restaurant license issued by the
             1794      commission that undergoes a change of ownership, the commission shall waive or vary the


             1795      proximity requirements of Subsection 32B-1-202 (2) in considering whether to issue a
             1796      beer-only restaurant license to the new owner of the premises if:
             1797          (i) when a beer-only restaurant license was issued to a previous owner, the premises
             1798      met the proximity requirements of Subsection 32B-1-202 (2);
             1799          (ii) the premises has had a beer-only restaurant license at all times since the beer-only
             1800      restaurant license described in Subsection (4)(b)(i) was issued without a variance; and
             1801          (iii) the community location was located within the proximity requirements of
             1802      Subsection 32B-1-202 (2) after the day on which the beer-only restaurant license described in
             1803      Subsection (4)(b)(i) was issued.
             1804          (c) The location of the licensed premises of an on-premise beer retailer who is licensed
             1805      as of July 1, 2011, is grandfathered and not required to meet the proximity requirements of
             1806      Section 32B-1-202 if the on-premise beer retailer obtains a beer-only restaurant license by not
             1807      later than March 1, 2012. A location grandfathered under this Subsection (4)(c) is considered
             1808      grandfathered notwithstanding that the beer-only restaurant license undergoes a change of
             1809      ownership.
             1810          Section 20. Section 32B-6-905 is amended to read:
             1811           32B-6-905. Specific operational requirements for a beer-only restaurant license.
             1812          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             1813      Requirements, a beer-only restaurant licensee and staff of the beer-only restaurant licensee
             1814      shall comply with this section.
             1815          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             1816      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             1817          (i) a beer-only restaurant licensee;
             1818          (ii) individual staff of a beer-only restaurant licensee; or
             1819          (iii) both a beer-only restaurant licensee and staff of the beer-only restaurant licensee.
             1820          (2) (a) A beer-only restaurant licensee on the licensed premises may not sell, offer for
             1821      sale, furnish, or allow consumption of liquor.
             1822          (b) Liquor may not be on the premises of a beer-only restaurant licensee except for use:
             1823          (i) as a flavoring on a dessert; and
             1824          (ii) in the preparation of a flaming food dish, drink, or dessert.
             1825          (3) In addition to complying with Section 32B-5-303 , a beer-only restaurant licensee


             1826      shall store beer in a storage area described in Subsection (12)(a).
             1827          (4) (a) An individual who serves beer in a beer-only restaurant licensee's premises shall
             1828      make a written beverage tab for each table or group that orders or consumes an alcoholic
             1829      product on the premises.
             1830          (b) A beverage tab required by this Subsection (4) shall list the type and amount of
             1831      beer ordered or consumed.
             1832          (5) A person's willingness to serve beer may not be made a condition of employment as
             1833      a server with a beer-only restaurant licensee.
             1834          (6) A beer-only restaurant licensee may sell, offer for sale, or furnish beer during the
             1835      hours specified in Part 7, On-premise Beer Retailer License, for an on-premise beer retailer,
             1836      except that a beer-only restaurant licensee may not sell, offer for sale, or furnish beer before
             1837      11:30 a.m. on any day.
             1838          (7) A beer-only restaurant licensee shall maintain at least 70% of its total restaurant
             1839      business from the sale of food, which does not include a service charge.
             1840          (8) (a) A beer-only restaurant may not sell, offer for sale, or furnish beer except in
             1841      connection with an order for food prepared, sold, and furnished at the licensed premises.
             1842          (b) A beer-only restaurant shall maintain on the licensed premises adequate culinary
             1843      facilities for food preparation and dining accommodations.
             1844          (9) A patron may not have more than two beers at a time before the patron.
             1845          (10) (a) A patron may consume a beer only:
             1846          [(a)] (i) while seated at:
             1847          [(i)] (A) the patron's table;
             1848          [(ii)] (B) a grandfathered bar structure; or
             1849          [(iii)] (C) a counter; and
             1850          [(b)] (ii) where food is served.
             1851          (b) A patron may not be served or consume an alcoholic product anywhere on the
             1852      licensed premises other than at a location described in Subsection (10)(a) regardless of its
             1853      proximity to a location described in Subsection (10)(a).
             1854          (11) (a) A beer-only restaurant licensee may not sell, offer for sale, or furnish a beer to
             1855      a patron, and a patron may not consume an alcoholic product at a bar structure.
             1856          (b) Notwithstanding Subsection (11)(a), at a grandfathered bar structure, a patron who


             1857      is 21 years of age or older may:
             1858          (i) sit;
             1859          (ii) be furnished a beer; and
             1860          (iii) consume a beer.
             1861          (c) Except as provided in Subsection (11)(d), at a grandfathered bar structure, a
             1862      beer-only restaurant licensee may not permit a minor to, and a minor may not:
             1863          (i) sit; or
             1864          (ii) consume food or beverages.
             1865          (d) (i) A minor may be at a grandfathered bar structure if the minor is employed by a
             1866      beer-only restaurant licensee:
             1867          (A) as provided in Subsection 32B-5-308 (2); or
             1868          (B) to perform maintenance and cleaning services during an hour when the beer-only
             1869      restaurant licensee is not open for business.
             1870          (ii) A minor may momentarily pass by a grandfathered bar structure without remaining
             1871      or sitting at the bar structure en route to an area of a beer-only restaurant licensee's premises in
             1872      which the minor is permitted to be.
             1873          (12) A beer-only restaurant licensee may dispense a beer only if:
             1874          (a) the beer is dispensed from an area that is:
             1875          (i) a grandfathered bar structure; or
             1876          (ii) separated from an area for the consumption of food by a patron by a solid,
             1877      translucent, permanent structural barrier such that the facilities for the storage or dispensing of
             1878      an alcoholic product are not readily visible to a patron, not accessible by a patron, and apart
             1879      from an area used for dining, for staging, or as a lobby or waiting area;
             1880          (b) the beer-only restaurant licensee uses a beer that is:
             1881          (i) stored in an area described in Subsection (12)(a); or
             1882          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
             1883          (A) immediately before the beer is dispensed it is in an unopened container;
             1884          (B) the unopened container is taken to an area described in Subsection (12)(a) before it
             1885      is opened; and
             1886          (C) once opened, the container is stored in an area described in Subsection (12)(a); and
             1887          (c) any instrument or equipment used to dispense the beer is located in an area


             1888      described in Subsection (12)(a).
             1889          (13) Notwithstanding Subsection 32B-6-706 (4), a beer-only restaurant licensee may
             1890      not allow a patron to remove a container containing an alcoholic product from the licensed
             1891      premises of the beer-only restaurant unless the beer-only restaurant licensee holds a package
             1892      agency under which the beer-only restaurant licensee may sell, offer for sale, or furnish sealed
             1893      containers of beer.
             1894          Section 21. Section 32B-8-304 is amended to read:
             1895           32B-8-304. Specific operational requirements for resort spa sublicense.
             1896          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
             1897      Requirements, a resort licensee, staff of the resort licensee, or a person otherwise related to a
             1898      resort spa sublicense shall comply with this section.
             1899          (b) Subject to Section 32B-8-502 , failure to comply as provided in Subsection (1)(a)
             1900      may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             1901      Enforcement Act, against:
             1902          (i) a retail licensee;
             1903          (ii) staff of the retail licensee;
             1904          (iii) a person otherwise related to a resort spa sublicense; or
             1905          (iv) any combination of the persons listed in this Subsection (1)(b).
             1906          (2) (a) For purposes of the resort spa sublicense, the resort licensee shall ensure that a
             1907      record required by this title is maintained, and a record is maintained or used for the resort spa
             1908      sublicense:
             1909          (i) as the department requires; and
             1910          (ii) for a minimum period of three years.
             1911          (b) A record is subject to inspection by an authorized representative of the commission
             1912      and the department.
             1913          (c) A resort licensee shall allow the department, through an auditor or examiner of the
             1914      department, to audit the records for a resort spa sublicense at the times the department
             1915      considers advisable.
             1916          (d) The department shall audit the records for a resort spa sublicense at least once
             1917      annually.
             1918          (e) Section 32B-1-205 applies to a record required to be made, maintained, or used in


             1919      accordance with this Subsection (2).
             1920          (3) (a) A person operating under a resort spa sublicense may not sell, offer for sale, or
             1921      furnish liquor at a resort spa during a period that:
             1922          (i) begins at 1 a.m.; and
             1923          (ii) ends at 9:59 a.m.
             1924          (b) A person operating under a resort spa sublicense may sell, offer for sale, or furnish
             1925      beer during the hours specified in Chapter 6, Part 7, On-premise Beer Retailer License, for an
             1926      on-premise beer retailer.
             1927          (c) (i) Notwithstanding Subsections (3)(a) and (b), a resort spa shall remain open for
             1928      one hour after the resort spa ceases the sale and furnishing of an alcoholic product during
             1929      which time a person at the resort spa may finish consuming:
             1930          (A) a single drink containing spirituous liquor;
             1931          (B) a single serving of wine not exceeding five ounces;
             1932          (C) a single serving of heavy beer;
             1933          (D) a single serving of beer not exceeding 26 ounces; or
             1934          (E) a single serving of a flavored malt beverage.
             1935          (ii) A resort spa is not required to remain open:
             1936          (A) after all persons have vacated the resort spa sublicense premises; or
             1937          (B) during an emergency.
             1938          (4) A minor may not be admitted into, use, or be on:
             1939          (a) the sublicense premises of a resort spa unless accompanied by a person 21 years of
             1940      age or older; or
             1941          (b) a lounge or bar area of the resort spa sublicense premises.
             1942          (5) A resort spa shall have food available at all times when an alcoholic product is sold,
             1943      offered for sale, furnished, or consumed on the resort spa sublicense premises.
             1944          (6) (a) Subject to the other provisions of this Subsection (6), a patron may not have
             1945      more than two alcoholic products of any kind at a time before the patron.
             1946          (b) A resort spa patron may not have two spirituous liquor drinks before the resort spa
             1947      patron if one of the spirituous liquor drinks consists only of the primary spirituous liquor for
             1948      the other spirituous liquor drink.
             1949          (c) An individual portion of wine is considered to be one alcoholic product under this


             1950      Subsection (6).
             1951          (7) (a) An alcoholic product may only be consumed while sitting at a table or counter.
             1952      A patron may not consume an alcoholic product anywhere on the sublicensed premises other
             1953      than at a location described in this Subsection (7)(a) regardless of its proximity to a location
             1954      described in this Subsection (7)(a).
             1955          (b) An alcoholic product may not be served to or consumed by a patron at a bar.
             1956          (8) (a) A person operating under a resort spa sublicense shall have available on the
             1957      resort spa sublicense premises for a patron to review at the time that the patron requests it, a
             1958      written alcoholic product price list or a menu containing the price of an alcoholic product sold
             1959      or furnished by the resort spa including:
             1960          (i) a set-up charge;
             1961          (ii) a service charge; or
             1962          (iii) a chilling fee.
             1963          (b) A charge or fee made in connection with the sale, service, or consumption of liquor
             1964      may be stated in food or alcoholic product menus including:
             1965          (i) a set-up charge;
             1966          (ii) a service charge; or
             1967          (iii) a chilling fee.
             1968          (9) (a) A resort licensee shall own or lease premises suitable for the resort spa's
             1969      activities.
             1970          (b) A resort licensee may not maintain premises in a manner that barricades or conceals
             1971      the resort spa sublicense's operation.
             1972          (10) Subject to the other provisions of this section, a person operating under a resort
             1973      spa sublicense may not sell an alcoholic product to or allow a person to be admitted to or use
             1974      the resort spa sublicense premises other than:
             1975          (a) a resident;
             1976          (b) a public customer who holds a valid customer card issued under Subsection (12); or
             1977          (c) an invitee.
             1978          (11) A person operating under a resort spa sublicense may allow an individual to be
             1979      admitted to or use the resort spa sublicense premises as an invitee subject to the following
             1980      conditions:


             1981          (a) the individual shall be previously authorized by one of the following who agrees to
             1982      host the individual as an invitee into the resort spa:
             1983          (i) a resident; or
             1984          (ii) a public customer as described in Subsection (10);
             1985          (b) the individual has only those privileges derived from the individual's host for the
             1986      duration of the invitee's visit to the resort spa; and
             1987          (c) a resort licensee, resort spa, or staff of the resort licensee or resort spa may not enter
             1988      into an agreement or arrangement with a resident or public customer to indiscriminately host a
             1989      member of the general public into the resort spa as an invitee.
             1990          (12) A person operating under a resort spa sublicense may issue a customer card to
             1991      allow an individual to enter and use the resort spa sublicense premises on a temporary basis
             1992      under the following conditions:
             1993          (a) the resort spa may not issue a customer card for a time period that exceeds three
             1994      weeks;
             1995          (b) the resort spa shall assess a fee to a public customer for a customer card;
             1996          (c) the resort spa may not issue a customer card to a minor; and
             1997          (d) a public customer may not host more than seven invitees at one time.
             1998          Section 22. Section 32B-9-204 is amended to read:
             1999           32B-9-204. General operational requirements for an event permit.
             2000          (1) (a) An event permittee and a person involved in the storage, sale, offer for sale, or
             2001      furnishing of an alcoholic product at an event for which an event permit is issued, shall comply
             2002      with this title and rules of the commission.
             2003          (b) Failure to comply as provided in Subsection (1)(a):
             2004          (i) may result in:
             2005          (A) disciplinary action in accordance with Chapter 3, Disciplinary Actions and
             2006      Enforcement Act, against:
             2007          (I) an event permittee;
             2008          (II) a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic
             2009      product at the event; or
             2010          (III) any combination of the persons listed in this Subsection (1)(b);
             2011          (B) immediate revocation of the event permit;


             2012          (C) forfeiture of a bond; or
             2013          (D) immediate seizure of an alcoholic product present at the event; and
             2014          (ii) if the event permit is revoked, disqualifies the event permittee from applying for an
             2015      event permit for a period of three years from the date of revocation of the event permit.
             2016          (c) An alcoholic product seized under this Subsection (1) shall be returned to the event
             2017      permittee after an event if forfeiture proceedings are not instituted under Section 32B-4-206 .
             2018          (2) (a) If there is a conflict between this part and the relevant part under this chapter for
             2019      the specific type of special use permit held by the special use permittee, the relevant part
             2020      governs.
             2021          (b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," an
             2022      event permittee may only sell, offer for sale, or furnish an alcoholic product specified in the
             2023      relevant part under this chapter for the type of event permit that is held by the event permittee.
             2024          (c) Notwithstanding that this part or the relevant part under this chapter for the type of
             2025      event permit held by an event permittee refers to "event permittee," a person involved in the
             2026      storage, sale, offer for sale, or furnishing of an alcoholic product at the event for which the
             2027      event permit is issued is subject to the same requirement or prohibition.
             2028          (3) An event permittee shall display a copy of the event permit in a prominent place in
             2029      the area in which an alcoholic product is sold, offered for sale, furnished, and consumed.
             2030          (4) An event permittee may not on the premises of the event:
             2031          (a) engage in or allow any form of gambling, as defined and proscribed in Title 76,
             2032      Chapter 10, Part 11, Gambling;
             2033          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
             2034      Part 11, Gambling; or
             2035          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
             2036      the risking of something of value for a return or for an outcome when the return or outcome is
             2037      based upon an element of chance, excluding the playing of an amusement device that confers
             2038      only an immediate and unrecorded right of replay not exchangeable for value.
             2039          (5) An event permittee may not knowingly allow a person at an event to, in violation of
             2040      Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
             2041      Paraphernalia Act:
             2042          (a) sell, distribute, possess, or use a controlled substance, as defined in Section


             2043      58-37-2 ; or
             2044          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
             2045      Section 58-37a-3 .
             2046          (6) An event permittee may not sell, offer for sale, or furnish beer except beer
             2047      purchases from:
             2048          (a) a beer wholesaler licensee;
             2049          (b) a beer retailer; or
             2050          (c) a small brewer.
             2051          (7) An event permittee may not store, sell, offer for sale, furnish, or allow the
             2052      consumption of an alcoholic product purchased for an event in a location other than that
             2053      described in the application and designated on the event permit unless the event permittee first
             2054      applies for and receives approval from the director, with the approval of the Compliance,
             2055      Licensing, and Enforcement Subcommittee, for a change of location.
             2056          (8) (a) Subject to Subsection (8)(b), an event permittee may sell, offer for sale, or
             2057      furnish beer for on-premise consumption:
             2058          (i) in an open original container; and
             2059          (ii) in a container on draft.
             2060          (b) An event permittee may not sell, offer for sale, or furnish beer sold pursuant to
             2061      Subsection (8)(a):
             2062          (i) in a size of container that exceeds two liters; or
             2063          (ii) to an individual patron in a size of container that exceeds one liter.
             2064          (9) (a) An event permittee may not sell or offer for sale an alcoholic product at less
             2065      than the cost of the alcoholic product to the event permittee.
             2066          (b) An event permittee may not sell an alcoholic product at a discount price on any date
             2067      or at any time.
             2068          (c) An event permittee may not sell or offer for sale an alcoholic product at a price that
             2069      encourages over consumption or intoxication.
             2070          (d) An event permittee may not sell or offer for sale an alcoholic product at a special or
             2071      reduced price for only certain hours of the day of an event.
             2072          (e) An event permittee may not sell, offer for sale, or furnish more than one alcoholic
             2073      product at the price of a single alcoholic product.


             2074          (f) An event permittee, or a person operating, selling, offering, or furnishing an
             2075      alcoholic product under an event permit, may not sell, offer for sale, or furnish an indefinite or
             2076      unlimited number of alcoholic products during a set period for a fixed price, unless:
             2077          (i) the alcoholic product is served to a patron at a seated event;
             2078          (ii) food is available whenever the alcoholic product is sold, offered for sale, or
             2079      furnished; and
             2080          (iii) no person advertises that at the event a person may be sold or furnished an
             2081      indefinite or unlimited number of alcoholic products during a set period for a fixed price.
             2082          (g) An event permittee may not engage in a public promotion involving or offering a
             2083      free alcoholic product to the general public.
             2084          (10) An event permittee may not sell, offer for sale, or furnish an alcoholic product to:
             2085          (a) a minor;
             2086          (b) a person actually, apparently, or obviously intoxicated;
             2087          (c) a known interdicted person; or
             2088          (d) a known habitual drunkard.
             2089          (11) (a) An alcoholic product is considered under the control of the event permittee
             2090      during an event.
             2091          (b) A patron at an event may not bring an alcoholic product onto the premises of the
             2092      event.
             2093          (12) An event permittee may not permit a patron to carry from the premises an open
             2094      container that:
             2095          (a) is used primarily for drinking purposes; and
             2096          (b) contains an alcoholic product.
             2097          (13) (a) A person involved in the storage, sale, or furnishing of an alcoholic product at
             2098      an event is considered under the supervision and direction of the event permittee.
             2099          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product at
             2100      an event may not, while on duty:
             2101          (i) consume an alcoholic product; or
             2102          (ii) be intoxicated.
             2103          (14) A minor may not handle, sell, offer for sale, or furnish an alcoholic product at an
             2104      event.


             2105          (15) The location specified in an event permit may not be changed without prior
             2106      written approval of the commission. An event permittee shall pay an application fee of $300 to
             2107      apply for the written approval of the commission under this Subsection (15).
             2108          (16) An event permittee may not sell, transfer, assign, exchange, barter, give, or
             2109      attempt in any way to dispose of the event permit to another person whether for monetary gain
             2110      or not.
             2111          (17) (a) An event permittee may not sell, offer for sale, furnish, or allow the
             2112      consumption of an alcoholic product during a period that:
             2113          (i) begins at 1 a.m.; and
             2114          (ii) ends at 9:59 a.m.
             2115          (b) This Subsection (17) does not preclude a local authority from being more restrictive
             2116      with respect to the hours of sale, offer for sale, furnishing, or consumption of an alcoholic
             2117      product at an event.
             2118          (18) A patron may have no more than one alcoholic product of any kind at a time
             2119      before the patron.
             2120          (19) (a) An event permittee shall display, in a prominent place, a sign in large letters
             2121      that consists of text in the following order:
             2122          (i) a header that reads: "WARNING";
             2123          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
             2124      can cause birth defects and permanent brain damage for the child.";
             2125          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
             2126      [insert most current toll-free number] with questions or for more information.";
             2127          (iv) a header that reads: "WARNING"; and
             2128          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
             2129      serious crime that is prosecuted aggressively in Utah."
             2130          (b) (i) The text described in Subsections (19)(a)(i) through (iii) shall be in a different
             2131      font style than the text described in Subsections (19)(a)(iv) and (v).
             2132          (ii) The warning statements in the sign described in Subsection (19)(a) shall be in the
             2133      same font size.
             2134          (c) The Department of Health shall work with the commission and department to
             2135      facilitate consistency in the format of a sign required under this section.


             2136          Section 23. Section 32B-10-206 is amended to read:
             2137           32B-10-206. General operational requirements for special use permit.
             2138          (1) (a) A special use permittee and staff of the special use permittee shall comply with
             2139      this title and rules of the commission, including the relevant part of the chapter that applies to
             2140      the type of special use permit held by the special use permittee.
             2141          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2142      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2143          (i) a special use permittee;
             2144          (ii) individual staff of a special use permittee; or
             2145          (iii) a special use permittee and staff of the special use permittee.
             2146          (c) The commission may suspend or revoke a special use permit with or without cause.
             2147          (2) (a) If there is a conflict between this part and the relevant part under this chapter for
             2148      the specific type of special use permit, the relevant part under this chapter governs.
             2149          (b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," a
             2150      special use permittee may only purchase, use, store, sell, offer for sale, allow consumption, or
             2151      manufacture an alcoholic product authorized for the special use permit that is held by the
             2152      special use permittee.
             2153          (c) Notwithstanding that this part or the relevant part under this chapter for the type of
             2154      special use permit held by a special use permittee refers to "special use permittee," a person
             2155      involved in the purchase, use, store, sell, offer for sale, allow consumption, or manufacture of
             2156      an alcoholic product for which the special use permit is issued is subject to the same
             2157      requirement or prohibition.
             2158          (3) (a) A special use permittee shall make and maintain a record, as required by
             2159      commission rule, of any alcoholic product purchased, used, sold, or manufactured.
             2160          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             2161      accordance with this Subsection (3).
             2162          (4) (a) Except as otherwise provided in this title, a special use permittee may not
             2163      purchase liquor except from a state store or package agency.
             2164          (b) A special use permittee may transport liquor purchased by the special use permittee
             2165      in accordance with this Subsection (4) from the place of purchase to the special use permittee's
             2166      premises.


             2167          (c) A special use permittee shall purchase liquor at prices set by the commission.
             2168          (d) When authorized by a special use permit, a special use permittee may purchase and
             2169      receive an alcoholic product directly from a manufacturer for a purpose that is industrial,
             2170      educational, scientific, or manufacturing.
             2171          (e) A health care facility may purchase and receive an alcoholic product directly from a
             2172      manufacturer for use at the health care facility.
             2173          (5) A special use permittee may not use, mix, store, sell, offer for sale, furnish,
             2174      manufacture, or allow consumption of an alcoholic product in a location other than as
             2175      designated in a special use permittee's application.
             2176          (6) Except as otherwise provided, a special use permittee may not sell, offer for sale, or
             2177      furnish an alcoholic product to:
             2178          (a) a minor;
             2179          (b) a person actually, apparently, or obviously intoxicated;
             2180          (c) a known interdicted person; or
             2181          (d) a known habitual drunkard.
             2182          (7) A special use permittee may not employ a minor to handle an alcoholic product.
             2183          (8) (a) The location specified in a special use permit may not be transferred from one
             2184      location to another location, without prior written approval of the commission. A special use
             2185      permittee shall pay an application fee of $300 to apply for the written approval of the
             2186      commission under this Subsection (8)(a).
             2187          (b) A special use permittee may not sell, transfer, assign, exchange, barter, give, or
             2188      attempt in any way to dispose of the permit to another person whether for monetary gain or not.
             2189          (9) A special use permittee may not purchase, use, mix, store, sell, offer for sale,
             2190      furnish, consume, or manufacture an alcoholic product for a purpose other than that authorized
             2191      by the special use permit.
             2192          (10) The commission may prescribe by policy or rule consistent with this title, the
             2193      general operational requirements of a special use permittee relating to:
             2194          (a) physical facilities;
             2195          (b) conditions of purchase, use, storage, sale, consumption, or manufacture of an
             2196      alcoholic product;
             2197          (c) purchase, storage, and sales quantity limitations; and


             2198          (d) other matters considered appropriate by the commission.
             2199          Section 24. Section 32B-11-208 is amended to read:
             2200           32B-11-208. General operational requirements for manufacturing license.
             2201          (1) (a) A manufacturing licensee and staff of the manufacturing licensee shall comply
             2202      with this title and the rules of the commission, including the relevant part of this chapter
             2203      applicable to the type of manufacturing license held by the manufacturing licensee.
             2204          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2205      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2206          (i) a manufacturing licensee;
             2207          (ii) individual staff of a manufacturing licensee; or
             2208          (iii) a manufacturing licensee and staff of the manufacturing licensee.
             2209          (2) A manufacturing licensee shall prominently display the manufacturing license on
             2210      the licensed premises.
             2211          (3) (a) A manufacturing licensee shall make and maintain the records required by the
             2212      department.
             2213          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             2214      accordance with this Subsection (3).
             2215          (4) A manufacturing licensee may not sell liquor within the state except to:
             2216          (a) the department; or
             2217          (b) a military installation.
             2218          (5) A manufacturing license may not be transferred from one location to another
             2219      location, without prior written approval of the commission. A manufacturing licensee shall pay
             2220      an application fee of $300 to apply for the written approval of the commission under this
             2221      Subsection (5).
             2222          (6) (a) A manufacturing licensee may not sell, transfer, assign, exchange, barter, give,
             2223      or attempt in any way to dispose of the license to another person, whether for monetary gain or
             2224      not.
             2225          (b) A manufacturing license has no monetary value for any type of disposition.
             2226          (7) A manufacturing licensee may not advertise its product in violation of this title or
             2227      any other federal or state law, except that nothing in this title prohibits the advertising or
             2228      solicitation of an order for industrial alcohol from a holder of a special use permit.


             2229          (8) A manufacturing licensee shall from time to time, on request of the department,
             2230      furnish for analytical purposes a sample of the alcoholic product that the manufacturing
             2231      licensee has:
             2232          (a) for sale; or
             2233          (b) in the course of manufacture for sale in this state.
             2234          (9) The commission may prescribe by policy or rule, consistent with this title, the
             2235      general operational requirements of a manufacturing licensee relating to:
             2236          (a) physical facilities;
             2237          (b) conditions of storage, sale, or manufacture of an alcoholic product;
             2238          (c) storage and sales quantity limitations; and
             2239          (d) other matters considered appropriate by the commission.
             2240          Section 25. Section 32B-12-301 is amended to read:
             2241           32B-12-301. General operational requirements for liquor warehousing license.
             2242          (1) (a) A liquor warehouser licensee and staff of the liquor warehouser licensee shall
             2243      comply with this title and the rules of the commission.
             2244          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
             2245      in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
             2246          (i) a liquor warehouser licensee;
             2247          (ii) individual staff of a liquor warehouser licensee; or
             2248          (iii) both a liquor warehouser licensee and staff of the liquor warehouser licensee.
             2249          (2) (a) A liquor warehouser licensee shall make and maintain records required by the
             2250      department.
             2251          (b) Section 32B-1-205 applies to a record required to be made or maintained in
             2252      accordance with this Subsection (2).
             2253          (3) A liquor warehousing license may not be transferred from one location to another
             2254      location, without prior written approval of the commission. A liquor warehousing licensee
             2255      shall pay an application fee of $300 to apply for the written approval of the commission under
             2256      this Subsection (3).
             2257          (4) (a) A liquor warehouser licensee may not sell, transfer, assign, exchange, barter,
             2258      give, or attempt in any way to dispose of the license to another person, whether for monetary
             2259      gain or not.


             2260          (b) A liquor warehousing license has no monetary value for any type of disposition.
             2261          (5) A liquor warehouser licensee may not employ a minor to handle an alcoholic
             2262      product.
             2263          (6) Liquor that is warehoused in this state and sold to an out-of-state consignee, may be
             2264      transported out of the state only by a motor carrier regulated under Title 72, Chapter 9, Motor
             2265      Carrier Safety Act.
             2266          (7) Liquor that is warehoused in this state and sold to the department may be
             2267      transported only by a motor carrier approved by the department.
             2268          (8) Liquor transported to or from a liquor warehouser licensee's licensed premises shall
             2269      be carried in a sealed conveyance that is made available for inspection by the department while
             2270      en route within the state.
             2271          (9) A liquor warehouser licensee may not ship, convey, distribute, or remove liquor
             2272      from a warehouse in less than a full case lot.
             2273          (10) A liquor warehouser licensee may not ship, convey, distribute, or remove liquor
             2274      from a warehouse to a consignee outside the state that is not licensed as a liquor wholesaler or
             2275      retailer by the state in which the consignee is domiciled.
             2276          (11) A liquor warehouser licensee may not receive, warehouse, distribute, transport,
             2277      ship, or convey liquor that the commission has not authorized the liquor warehouser licensee to
             2278      handle through its warehouse.
             2279          (12) The commission may prescribe by policy or rule, consistent with this title, the
             2280      general operational requirements of licensees relating to:
             2281          (a) physical facilities;
             2282          (b) conditions of storage, distribution, or transport of liquor; and
             2283          (c) other matters considered appropriate by the commission.
             2284          Section 26. Uncodified Section 7, Laws of Utah 2012, Fourth Special Session,
             2285      Chapter 1 is amended to read:
             2286          Section 7. Uncodified Section 110, Laws of Utah 2011, Chapter 334 is amended to
             2287      read:
             2288          Section 110. Effective date.
             2289          (1) Except as provided in Subsection (2), this bill takes effect on July 1, 2011.
             2290          (2) (a) The repeal of Subsection 32B-6-603 (4) [(Effective 07/01/11)] in this bill takes


             2291      effect on November 1, 2011.
             2292          (b) Title 32B, Chapter 6, Part 8, Reception Center License, enacted by this bill takes
             2293      effect on November 1, 2011.
             2294          (c) Title 32B, Chapter 6, Part 9, Beer-only Restaurant License, enacted by this bill
             2295      takes effect on March 1, 2012.
             2296          (d) The following take effect on July 1, [2013] 2014:
             2297          (i) Section 32B-5-309 [(Effective 07/01/11)] (Effective 07/01/13) as amended by this
             2298      bill; and
             2299          (ii) Title 32B, Chapter 8a, Transfer of Retail License Act, enacted by this bill.
             2300          Section 27. Uncodified Section 8, Laws of Utah 2012, Fourth Special Session,
             2301      Chapter 1 is amended to read:
             2302          Section 8. Uncodified Section 24, Laws of Utah 2012, Chapter 365 is amended to
             2303      read:
             2304          Section 24. Effective date.
             2305          This bill takes effect on July 1, 2012, except that the amendments made to Section
             2306      32B-8a-302 [(Effective 07/01/12)] (Effective 07/01/13), and Section 32B-8a-303 [(Effective
             2307      07/01/12)] (Effective 07/01/13), in this bill take effect on July 1, [2013] 2014.
             2308          Section 28. Appropriation.
             2309          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
             2310      the fiscal year beginning July 1, 2013, and ending June 30, 2014, the following sums of money
             2311      are appropriated from resources not otherwise appropriated, or reduced from amounts
             2312      previously appropriated, out of the funds or accounts indicated. These sums of money are in
             2313      addition to any amounts previously appropriated for fiscal year 2014:
             2314          To Attorney General - Administration
             2315          From Alcoholic Beverage Control Act Legal Fund            $130,000
             2316          Schedule of Programs:
             2317              Administration                $130,000
             2318          The Legislature intends that the money appropriated be used to enforce Title 32B,
             2319      Alcoholic Beverage Control Act, as provided in Section 32B-2-307 .
             2320          Section 29. Revisor instructions.
             2321          The Legislature intends that the Office of Legislative Research and General Counsel, in


             2322      preparing the Utah Code database for publication do the following:
             2323          (1) change the superseding date in Section 32B-5-309 (Superseded 07/01/13) from July
             2324      1, 2013 to July 1, 2014;
             2325          (2) change the effective date in Section 32B-5-309 (Effective 07/01/13) from July 1,
             2326      2013 to July 1, 2014; and
             2327          (3) change the effective date from July 1, 2013 to July 1, 2014 in the following
             2328      sections:
             2329          (a) Section 32B-8a-101 (Effective 07/01/13);
             2330          (b) Section 32B-8a-102 (Effective 07/01/13);
             2331          (c) Section 32B-8a-201 (Effective 07/01/13);
             2332          (d) Section 32B-8a-202 (Effective 07/01/13);
             2333          (e) Section 32B-8a-203 (Effective 07/01/13);
             2334          (f) Section 32B-8a-301 (Effective 07/01/13);
             2335          (g) Section 32B-8a-302 (Effective 07/01/13);
             2336          (h) Section 32B-8a-303 (Effective 07/01/13);
             2337          (i) Section 32B-8a-401 (Effective 07/01/13);
             2338          (j) Section 32B-8a-402 (Effective 07/01/13);
             2339          (k) Section 32B-8a-403 (Effective 07/01/13);
             2340          (l) Section 32B-8a-404 (Effective 07/01/13);
             2341          (m) Section 32B-8a-501 (Effective 07/01/13); and
             2342          (n) Section 32B-8a-502 (Effective 07/01/13).




Legislative Review Note
    as of 2-28-13 12:02 PM


Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]