1     
NONPROFIT LIMITED-SERVICE RETAILER AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Kraig Powell

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Alcoholic Beverage Control Act to address nonprofit entities.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies definitions;
13          ▸     addresses operating without a license or permit;
14          ▸     enacts the Nonprofit Limited-Service Retailer License, including:
15               •     addressing the commission's power to issue the license;
16               •     establishing specific licensing requirements for nonprofit limited-service
17     retailers; and
18               •     establishing specific operational requirements for nonprofit limited-service
19     retailers; and
20          ▸     makes technical changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:
26     AMENDS:
27          32B-1-102, as last amended by Laws of Utah 2013, Chapter 349

28          32B-4-501, as enacted by Laws of Utah 2010, Chapter 276
29     ENACTS:
30          32B-6-1001, Utah Code Annotated 1953
31          32B-6-1002, Utah Code Annotated 1953
32          32B-6-1003, Utah Code Annotated 1953
33          32B-6-1004, Utah Code Annotated 1953
34          32B-6-1005, Utah Code Annotated 1953
35     

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

59          (iii) cider;
60          (iv) essence;
61          (v) tincture;
62          (vi) food preparation; or
63          (vii) an over-the-counter medicine.
64          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
65     when it is used as a flavoring in the manufacturing of an alcoholic product.
66          (5) "Alcohol training and education seminar" means a seminar that is:
67          (a) required by Chapter 5, Part 4, Alcohol Training and Education Act; and
68          (b) described in Section 62A-15-401.
69          (6) "Banquet" means an event:
70          (a) that is held at one or more designated locations approved by the commission in or
71     on the premises of a:
72          (i) hotel;
73          (ii) resort facility;
74          (iii) sports center; or
75          (iv) convention center;
76          (b) for which there is a contract:
77          (i) between a person operating a facility listed in Subsection (6)(a) and another person;
78     and
79          (ii) under which the person operating a facility listed in Subsection (6)(a) is required to
80     provide an alcoholic product at the event; and
81          (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
82          (7) (a) "Bar" means a surface or structure:
83          (i) at which an alcoholic product is:
84          (A) stored; or
85          (B) dispensed; or
86          (ii) from which an alcoholic product is served.
87          (b) "Bar structure" means a surface or structure on a licensed premises if on or at any
88     place of the surface or structure an alcoholic product is:
89          (i) stored; or

90          (ii) dispensed.
91          (8) (a) Subject to Subsection (8)(d), "beer" means a product that:
92          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
93     volume or 3.2% by weight; and
94          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
95          (b) "Beer" may or may not contain hops or other vegetable products.
96          (c) "Beer" includes a product that:
97          (i) contains alcohol in the percentages described in Subsection (8)(a); and
98          (ii) is referred to as:
99          (A) beer;
100          (B) ale;
101          (C) porter;
102          (D) stout;
103          (E) lager; or
104          (F) a malt or malted beverage.
105          (d) "Beer" does not include a flavored malt beverage.
106          (9) "Beer-only restaurant license" means a license issued in accordance with Chapter 5,
107     Retail License Act, and Chapter 6, Part 9, Beer-Only Restaurant License.
108          (10) "Beer retailer" means a business:
109          (a) that is engaged, primarily or incidentally, in the retail sale of beer to a patron,
110     whether for consumption on or off the business premises; and
111          (b) to whom a license is issued:
112          (i) for an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-Premise
113     Beer Retailer Local Authority; or
114          (ii) for an on-premise beer retailer, in accordance with Chapter 5, Retail License Act,
115     and Chapter 6, Part 7, On-Premise Beer Retailer License.
116          (11) "Beer wholesaling license" means a license:
117          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
118          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
119     retail licensees or off-premise beer retailers.
120          (12) "Billboard" means a public display used to advertise, including:

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

152          (iii) a fraternal club license; or
153          (iv) a social club license.
154          (19) "Commission" means the Alcoholic Beverage Control Commission created in
155     Section 32B-2-201.
156          (20) "Commissioner" means a member of the commission.
157          (21) "Community location" means:
158          (a) a public or private school;
159          (b) a church;
160          (c) a public library;
161          (d) a public playground; or
162          (e) a public park.
163          (22) "Community location governing authority" means:
164          (a) the governing body of the community location; or
165          (b) if the commission does not know who is the governing body of a community
166     location, a person who appears to the commission to have been given on behalf of the
167     community location the authority to prohibit an activity at the community location.
168          (23) "Container" means a receptacle that contains an alcoholic product, including:
169          (a) a bottle;
170          (b) a vessel; or
171          (c) a similar item.
172          (24) "Convention center" means a facility that is:
173          (a) in total at least 30,000 square feet; and
174          (b) otherwise defined as a "convention center" by the commission by rule.
175          (25) (a) Subject to Subsection (25)(b), "counter" means a surface or structure in a
176     dining area of a licensed premises where seating is provided to a patron for service of food.
177          (b) "Counter" does not include a surface or structure if on or at any point of the surface
178     or structure an alcoholic product is:
179          (i) stored; or
180          (ii) dispensed.
181          (26) "Department" means the Department of Alcoholic Beverage Control created in
182     Section 32B-2-203.

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

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

245          (b) "Furnish" includes to:
246          (i) serve;
247          (ii) deliver; or
248          (iii) otherwise make available.
249          (43) "Guest" means an individual who meets the requirements of Subsection
250     32B-6-407(9).
251          (44) "Health care practitioner" means:
252          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
253          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
254          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
255          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
256     Act;
257          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
258     Nurse Practice Act;
259          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
260     Practice Act;
261          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
262     Therapy Practice Act;
263          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
264          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
265     Professional Practice Act;
266          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
267          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
268     Practice Act;
269          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
270     Hygienist Practice Act; and
271          (m) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act.
272          (45) (a) "Heavy beer" means a product that:
273          (i) contains more than 4% alcohol by volume; and
274          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
275          (b) "Heavy beer" is considered liquor for the purposes of this title.

276          (46) "Hotel" is as defined by the commission by rule.
277          (47) "Identification card" means an identification card issued under Title 53, Chapter 3,
278     Part 8, Identification Card Act.
279          (48) "Industry representative" means an individual who is compensated by salary,
280     commission, or other means for representing and selling an alcoholic product of a
281     manufacturer, supplier, or importer of liquor.
282          (49) "Industry representative sample" means liquor that is placed in the possession of
283     the department for testing, analysis, and sampling by a local industry representative on the
284     premises of the department to educate the local industry representative of the quality and
285     characteristics of the product.
286          (50) "Interdicted person" means a person to whom the sale, offer for sale, or furnishing
287     of an alcoholic product is prohibited by:
288          (a) law; or
289          (b) court order.
290          (51) "Intoxicated" means that a person:
291          (a) is significantly impaired as to the person's mental or physical functions as a result of
292     the use of:
293          (i) an alcoholic product;
294          (ii) a controlled substance;
295          (iii) a substance having the property of releasing toxic vapors; or
296          (iv) a combination of Subsections (51)(a)(i) through (iii); and
297          (b) exhibits plain and easily observed outward manifestations of behavior or physical
298     signs produced by the over consumption of an alcoholic product.
299          (52) "Investigator" means an individual who is:
300          (a) a department compliance officer; or
301          (b) a nondepartment enforcement officer.
302          (53) "Invitee" [is as] means the same as that term is defined in Section 32B-8-102.
303          (54) "License" means:
304          (a) a retail license;
305          (b) a license issued in accordance with Chapter 11, Manufacturing and Related
306     Licenses Act;

307          (c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
308     or
309          (d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act.
310          (55) "Licensee" means a person who holds a license.
311          (56) "Limited-service restaurant license" means a license issued in accordance with
312     Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-Service Restaurant License.
313          (57) "Limousine" means a motor vehicle licensed by the state or a local authority, other
314     than a bus or taxicab:
315          (a) in which the driver and a passenger are separated by a partition, glass, or other
316     barrier;
317          (b) that is provided by a business entity to one or more individuals at a fixed charge in
318     accordance with the business entity's tariff; and
319          (c) to give the one or more individuals the exclusive use of the limousine and a driver
320     to travel to one or more specified destinations.
321          (58) (a) (i) "Liquor" means a liquid that:
322          (A) is:
323          (I) alcohol;
324          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
325          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
326          (IV) other drink or drinkable liquid; and
327          (B) (I) contains at least .5% alcohol by volume; and
328          (II) is suitable to use for beverage purposes.
329          (ii) "Liquor" includes:
330          (A) heavy beer;
331          (B) wine; and
332          (C) a flavored malt beverage.
333          (b) "Liquor" does not include beer.
334          (59) "Liquor Control Fund" means the enterprise fund created by Section 32B-2-301.
335          (60) "Liquor warehousing license" means a license that is issued:
336          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
337          (b) to a person, other than a licensed manufacturer, who engages in the importation for

338     storage, sale, or distribution of liquor regardless of amount.
339          (61) "Local authority" means:
340          (a) for premises that are located in an unincorporated area of a county, the governing
341     body of a county; or
342          (b) for premises that are located in an incorporated city or a town, the governing body
343     of the city or town.
344          (62) "Lounge or bar area" is as defined by rule made by the commission.
345          (63) "Manufacture" means to distill, brew, rectify, mix, compound, process, ferment, or
346     otherwise make an alcoholic product for personal use or for sale or distribution to others.
347          (64) "Member" means an individual who, after paying regular dues, has full privileges
348     in an equity club licensee or fraternal club licensee.
349          (65) (a) "Military installation" means a base, air field, camp, post, station, yard, center,
350     or homeport facility for a ship:
351          (i) (A) under the control of the United States Department of Defense; or
352          (B) of the National Guard;
353          (ii) that is located within the state; and
354          (iii) including a leased facility.
355          (b) "Military installation" does not include a facility used primarily for:
356          (i) civil works;
357          (ii) a rivers and harbors project; or
358          (iii) a flood control project.
359          (66) "Minor" means an individual under the age of 21 years.
360          (67) "Nondepartment enforcement agency" means an agency that:
361          (a) (i) is a state agency other than the department; or
362          (ii) is an agency of a county, city, or town; and
363          (b) has a responsibility to enforce one or more provisions of this title.
364          (68) "Nondepartment enforcement officer" means an individual who is:
365          (a) a peace officer, examiner, or investigator; and
366          (b) employed by a nondepartment enforcement agency.
367          (69) "Nonprofit limited-service retailer license" means a license issued in accordance
368     with Chapter 5, Retail License Act, and Chapter 6, Part 10, Nonprofit Limited-Service Retailer

369     License.
370          [(69)] (70) (a) "Off-Premise beer retailer" means a beer retailer who is:
371          (i) licensed in accordance with Chapter 7, Part 2, Off-Premise Beer Retailer Local
372     Authority; and
373          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
374     premises.
375          (b) "Off-Premise beer retailer" does not include an on-premise beer retailer.
376          [(70)] (71) "On-premise banquet license" means a license issued in accordance with
377     Chapter 5, Retail License Act, and Chapter 6, Part 6, On-Premise Banquet License.
378          [(71)] (72) "On-premise beer retailer" means a beer retailer who is:
379          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
380     accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-Premise Beer
381     Retailer License; and
382          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
383     premises:
384          (i) regardless of whether the beer retailer sells beer for consumption off the licensed
385     premises; and
386          (ii) on and after March 1, 2012, operating:
387          (A) as a tavern; or
388          (B) in a manner that meets the requirements of Subsection 32B-6-703(2)(e)(i).
389          [(72)] (73) "Opaque" means impenetrable to sight.
390          [(73)] (74) "Package agency" means a retail liquor location operated:
391          (a) under an agreement with the department; and
392          (b) by a person:
393          (i) other than the state; and
394          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
395     Agency, to sell packaged liquor for consumption off the premises of the package agency.
396          [(74)] (75) "Package agent" means a person who holds a package agency.
397          [(75)] (76) "Patron" means an individual to whom food, beverages, or services are sold,
398     offered for sale, or furnished, or who consumes an alcoholic product including:
399          (a) a customer;

400          (b) a member;
401          (c) a guest;
402          (d) an attendee of a banquet or event;
403          (e) an individual who receives room service;
404          (f) a resident of a resort;
405          (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102;
406     or
407          (h) an invitee.
408          [(76)] (77) "Permittee" means a person issued a permit under:
409          (a) Chapter 9, Event Permit Act; or
410          (b) Chapter 10, Special Use Permit Act.
411          [(77)] (78) "Person subject to administrative action" means:
412          (a) a licensee;
413          (b) a permittee;
414          (c) a manufacturer;
415          (d) a supplier;
416          (e) an importer;
417          (f) one of the following holding a certificate of approval:
418          (i) an out-of-state brewer;
419          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
420          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
421          (g) staff of:
422          (i) a person listed in Subsections [(77)] (78)(a) through (f); or
423          (ii) a package agent.
424          [(78)] (79) "Premises" means a building, enclosure, or room used in connection with
425     the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic
426     product, unless otherwise defined in this title or rules made by the commission.
427          [(79)] (80) "Prescription" means an order issued by a health care practitioner when:
428          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
429     to prescribe a controlled substance, other drug, or device for medicinal purposes;
430          (b) the order is made in the course of that health care practitioner's professional

431     practice; and
432          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
433          [(80)] (81) (a) "Private event" means a specific social, business, or recreational event:
434          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
435     group; and
436          (ii) that is limited in attendance to people who are specifically designated and their
437     guests.
438          (b) "Private event" does not include an event to which the general public is invited,
439     whether for an admission fee or not.
440          [(81)] (82) (a) "Proof of age" means:
441          (i) an identification card;
442          (ii) an identification that:
443          (A) is substantially similar to an identification card;
444          (B) is issued in accordance with the laws of a state other than Utah in which the
445     identification is issued;
446          (C) includes date of birth; and
447          (D) has a picture affixed;
448          (iii) a valid driver license certificate that:
449          (A) includes date of birth;
450          (B) has a picture affixed; and
451          (C) is issued:
452          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
453          (II) in accordance with the laws of the state in which it is issued;
454          (iv) a military identification card that:
455          (A) includes date of birth; and
456          (B) has a picture affixed; or
457          (v) a valid passport.
458          (b) "Proof of age" does not include a driving privilege card issued in accordance with
459     Section 53-3-207.
460          [(82)] (83) (a) "Public building" means a building or permanent structure that is:
461          (i) owned or leased by:

462          (A) the state; or
463          (B) a local government entity; and
464          (ii) used for:
465          (A) public education;
466          (B) transacting public business; or
467          (C) regularly conducting government activities.
468          (b) "Public building" does not include a building owned by the state or a local
469     government entity when the building is used by a person, in whole or in part, for a proprietary
470     function.
471          [(83)] (84) "Public conveyance" means a conveyance to which the public or a portion
472     of the public has access to and a right to use for transportation, including an airline, railroad,
473     bus, boat, or other public conveyance.
474          [(84)] (85) "Reception center" means a business that:
475          (a) operates facilities that are at least 5,000 square feet; and
476          (b) has as its primary purpose the leasing of the facilities described in Subsection [(84)]
477     (85)(a) to a third party for the third party's event.
478          [(85)] (86) "Reception center license" means a license issued in accordance with
479     Chapter 5, Retail License Act, and Chapter 6, Part 8, Reception Center License.
480          [(86)] (87) (a) "Record" means information that is:
481          (i) inscribed on a tangible medium; or
482          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
483          (b) "Record" includes:
484          (i) a book;
485          (ii) a book of account;
486          (iii) a paper;
487          (iv) a contract;
488          (v) an agreement;
489          (vi) a document; or
490          (vii) a recording in any medium.
491          [(87)] (88) "Residence" means a person's principal place of abode within Utah.
492          [(88)] (89) "Resident," in relation to a resort, [is as] means the same as that term is

493     defined in Section 32B-8-102.
494          [(89)] (90) "Resort" is as defined in Section 32B-8-102.
495          [(90)] (91) "Resort facility" [is as] means the same as that term is defined by the
496     commission by rule.
497          [(91)] (92) "Resort license" means a license issued in accordance with Chapter 5,
498     Retail License Act, and Chapter 8, Resort License Act.
499          [(92)] (93) "Restaurant" means a business location:
500          (a) at which a variety of foods are prepared;
501          (b) at which complete meals are served to the general public; and
502          (c) that is engaged primarily in serving meals to the general public.
503          [(93)] (94) "Retail license" means one of the following licenses issued under this title:
504          (a) a full-service restaurant license;
505          (b) a master full-service restaurant license;
506          (c) a limited-service restaurant license;
507          (d) a master limited-service restaurant license;
508          (e) a club license;
509          (f) an airport lounge license;
510          (g) an on-premise banquet license;
511          (h) an on-premise beer license;
512          (i) a reception center license; [or]
513          (j) a beer-only restaurant license[.]; or
514          (k) a nonprofit limited-service retailer license.
515          [(94)] (95) "Room service" means furnishing an alcoholic product to a person in a
516     guest room of a:
517          (a) hotel; or
518          (b) resort facility.
519          [(95)] (96) "Serve" means to place an alcoholic product before an individual.
520          [(96)] (97) (a) "School" means a building used primarily for the general education of
521     minors.
522          (b) "School" does not include an educational facility.
523          [(97)] (98) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby,

524     for consideration, an alcoholic product is either directly or indirectly transferred, solicited,
525     ordered, delivered for value, or by a means or under a pretext is promised or obtained, whether
526     done by a person as a principal, proprietor, or as staff, unless otherwise defined in this title or
527     the rules made by the commission.
528          [(98)] (99) "Sexually oriented entertainer" means a person who while in a state of
529     seminudity appears at or performs:
530          (a) for the entertainment of one or more patrons;
531          (b) on the premises of:
532          (i) a social club licensee; or
533          (ii) a tavern;
534          (c) on behalf of or at the request of the licensee described in Subsection [(98)] (99)(b);
535          (d) on a contractual or voluntary basis; and
536          (e) whether or not the person is designated as:
537          (i) an employee;
538          (ii) an independent contractor;
539          (iii) an agent of the licensee; or
540          (iv) a different type of classification.
541          [(99)] (100) "Single event permit" means a permit issued in accordance with Chapter 9,
542     Part 3, Single Event Permit.
543          [(100)] (101) "Small brewer" means a brewer who manufactures less than 60,000
544     barrels of beer, heavy beer, and flavored malt beverages per year.
545          [(101)] (102) "Social club license" means a license issued in accordance with Chapter
546     5, Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the
547     commission as a social club license.
548          [(102)] (103) "Special use permit" means a permit issued in accordance with Chapter
549     10, Special Use Permit Act.
550          [(103)] (104) (a) "Spirituous liquor" means liquor that is distilled.
551          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
552     27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
553          [(104)] (105) "Sports center" is as defined by the commission by rule.
554          [(105)] (106) (a) "Staff" means an individual who engages in activity governed by this

555     title:
556          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
557     holder;
558          (ii) at the request of the business, including a package agent, licensee, permittee, or
559     certificate holder; or
560          (iii) under the authority of the business, including a package agent, licensee, permittee,
561     or certificate holder.
562          (b) "Staff" includes:
563          (i) an officer;
564          (ii) a director;
565          (iii) an employee;
566          (iv) personnel management;
567          (v) an agent of the licensee, including a managing agent;
568          (vi) an operator; or
569          (vii) a representative.
570          [(106)] (107) "State of nudity" means:
571          (a) the appearance of:
572          (i) the nipple or areola of a female human breast;
573          (ii) a human genital;
574          (iii) a human pubic area; or
575          (iv) a human anus; or
576          (b) a state of dress that fails to opaquely cover:
577          (i) the nipple or areola of a female human breast;
578          (ii) a human genital;
579          (iii) a human pubic area; or
580          (iv) a human anus.
581          [(107)] (108) "State of seminudity" means a state of dress in which opaque clothing
582     covers no more than:
583          (a) the nipple and areola of the female human breast in a shape and color other than the
584     natural shape and color of the nipple and areola; and
585          (b) the human genitals, pubic area, and anus:

586          (i) with no less than the following at its widest point:
587          (A) four inches coverage width in the front of the human body; and
588          (B) five inches coverage width in the back of the human body; and
589          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
590          [(108)] (109) (a) "State store" means a facility for the sale of packaged liquor:
591          (i) located on premises owned or leased by the state; and
592          (ii) operated by a state employee.
593          (b) "State store" does not include:
594          (i) a package agency;
595          (ii) a licensee; or
596          (iii) a permittee.
597          [(109)] (110) (a) "Storage area" means an area on licensed premises where the licensee
598     stores an alcoholic product.
599          (b) "Store" means to place or maintain in a location an alcoholic product from which a
600     person draws to prepare an alcoholic product to be furnished to a patron, except as provided in
601     Subsection 32B-6-205(12)(b)(ii), 32B-6-305(12)(b)(ii), 32B-6-805(15)(b)(ii), or
602     32B-6-905(12)(b)(ii).
603          [(110)] (111) "Sublicense" [is as] means the same as that term is defined in Section
604     32B-8-102.
605          [(111)] (112) "Supplier" means a person who sells an alcoholic product to the
606     department.
607          [(112)] (113) "Tavern" means an on-premise beer retailer who is:
608          (a) issued a license by the commission in accordance with Chapter 5, Retail License
609     Act, and Chapter 6, Part 7, On-Premise Beer Retailer License; and
610          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
611     On-Premise Beer Retailer License.
612          [(113)] (114) "Temporary beer event permit" means a permit issued in accordance with
613     Chapter 9, Part 4, Temporary Beer Event Permit.
614          [(114)] (115) "Temporary domicile" means the principal place of abode within Utah of
615     a person who does not have a present intention to continue residency within Utah permanently
616     or indefinitely.

617          [(115)] (116) "Translucent" means a substance that allows light to pass through, but
618     does not allow an object or person to be seen through the substance.
619          [(116)] (117) "Unsaleable liquor merchandise" means a container that:
620          (a) is unsaleable because the container is:
621          (i) unlabeled;
622          (ii) leaky;
623          (iii) damaged;
624          (iv) difficult to open; or
625          (v) partly filled;
626          (b) (i) has faded labels or defective caps or corks;
627          (ii) has contents that are:
628          (A) cloudy;
629          (B) spoiled; or
630          (C) chemically determined to be impure; or
631          (iii) contains:
632          (A) sediment; or
633          (B) a foreign substance; or
634          (c) is otherwise considered by the department as unfit for sale.
635          [(117)] (118) (a) "Wine" means an alcoholic product obtained by the fermentation of
636     the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or
637     not another ingredient is added.
638          (b) "Wine" is considered liquor for purposes of this title, except as otherwise provided
639     in this title.
640          [(118)] (119) "Winery manufacturing license" means a license issued in accordance
641     with Chapter 11, Part 3, Winery Manufacturing License.
642          Section 2. Section 32B-4-501 is amended to read:
643          32B-4-501. Operating without a license or permit.
644          (1) A person may not operate the following businesses without first obtaining a license
645     under this title if the business allows a person to purchase or consume an alcoholic product on
646     the premises of the business:
647          (a) a restaurant;

648          (b) an airport lounge;
649          (c) a business operated in the same manner as a club licensee;
650          (d) a resort;
651          (e) a business operated to sell, offer for sale, or furnish beer for on-premise
652     consumption;
653          (f) a business operated as an on-premise banquet licensee; [or]
654          (g) a business operated in the same manner as a nonprofit limited-service retailer; or
655          [(g)] (h) a business similar to one listed in Subsections (1)(a) through [(f)] (g).
656          (2) A person conducting an event that is open to the general public may not directly or
657     indirectly sell, offer for sale, or furnish an alcoholic product to a person attending the event
658     without first obtaining an event permit under this title.
659          (3) A person conducting a private event may not directly or indirectly sell or offer for
660     sale an alcoholic product to a person attending the private event without first obtaining an
661     event permit under this title.
662          (4) A person may not operate the following businesses in this state without first
663     obtaining a license under this title:
664          (a) a winery manufacturer;
665          (b) a distillery manufacturer;
666          (c) a brewery manufacturer;
667          (d) a local industry representative of:
668          (i) a manufacturer of an alcoholic product;
669          (ii) a supplier of an alcoholic product; or
670          (iii) an importer of an alcoholic product;
671          (e) a liquor warehouser; or
672          (f) a beer wholesaler.
673          (5) A person may not operate a public conveyance in this state without first obtaining a
674     public service permit under this title if that public conveyance allows a person to purchase or
675     consume an alcoholic product:
676          (a) on the public conveyance; or
677          (b) on the premises of a hospitality room located within a depot, terminal, or similar
678     facility at which a service is provided to a patron of the public conveyance.

679          Section 3. Section 32B-6-1001 is enacted to read:
680     
Part 10. Nonprofit Limited-Service Retailer License

681          32B-6-1001. Title.
682          This part is known as "Nonprofit Limited-Service Retailer License."
683          Section 4. Section 32B-6-1002 is enacted to read:
684          32B-6-1002. Definitions.
685          Reserved
686          Section 5. Section 32B-6-1003 is enacted to read:
687          32B-6-1003. Commission's power to issue nonprofit limited-service retailer
688     license.
689          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
690     wine, heavy beer, or beer on the premises as a nonprofit limited-service retailer, the person
691     shall first obtain a nonprofit limited-service retailer license from the commission in accordance
692     with this part.
693          (2) The commission may issue a nonprofit limited-service retailer license to establish
694     nonprofit limited-service retailer licensed premises at places and in numbers as the commission
695     considers proper for the storage, sale, offer for sale, furnishing, and consumption of wine,
696     heavy beer, or beer on premises operated as a nonprofit limited-service retailer.
697          Section 6. Section 32B-6-1004 is enacted to read:
698          32B-6-1004. Specific licensing requirements for nonprofit limited-service retailer
699     license.
700          (1) To obtain a nonprofit limited-service retailer license a person shall comply with
701     Chapter 5, Part 2, Retail Licensing Process, and provide evidence satisfactory to the department
702     that the person is a nonprofit entity that:
703          (a) is recognized by the Internal Revenue Service as an entity described in Section
704     501(c)(3), Internal Revenue Code;
705          (b) has been in existence for at least one year from the date the nonprofit entity applies
706     for a license under this part; and
707          (c) maintains facilities that will be used as the licensed premises under this chapter.
708          (2) (a) A nonprofit limited-service retailer license expires on the last day of February
709     each year.

710          (b) To renew a person's nonprofit limited-service retailer license, a person shall comply
711     with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
712     January 31 of each year.
713          (3) (a) The nonrefundable application fee for a nonprofit limited-service retailer license
714     is $330.
715          (b) The initial license fee for a nonprofit limited-service retailer license is $825.
716          (c) The renewal fee for a nonprofit limited-service retailer license is $605.
717          (4) The bond amount required for a nonprofit limited-service retailer license is the
718     penal sum of $5,000.
719          (5) A nonprofit limited-service retailer licensee is subject to the proximity
720     requirements of Section 32B-1-202 except when the nonprofit limited-service retailer licensee
721     is a community location.
722          Section 7. Section 32B-6-1005 is enacted to read:
723          32B-6-1005. Specific operational requirements for nonprofit limited-service
724     retailer license.
725          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
726     Requirements, a nonprofit limited-service retailer and staff of the nonprofit limited-service
727     retailer shall comply with this section.
728          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
729     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
730          (i) a nonprofit limited-service retailer;
731          (ii) individual staff of a nonprofit limited-service retailer; or
732          (iii) both a nonprofit limited-service retailer and staff of the nonprofit limited-service
733     retailer.
734          (2) (a) A nonprofit limited-service retailer is not subject to Section 32B-5-302, but
735     shall make and maintain the records the department requires, except that the nonprofit
736     limited-service retailer is required to file with the department an IRS Form 990 in any year that
737     the nonprofit limited-service retailer is required to file an IRS Form 990 with the Internal
738     Revenue Service.
739          (b) If a nonprofit limited-service retailer is not required to file an IRS Form 990 with
740     the Internal Revenue Service, the nonprofit limited-service retailer shall submit financial

741     records in the form the commission requires by rule made in accordance with Title 63G,
742     Chapter 3, Utah Administrative Rulemaking Act.
743          (c) Section 32B-1-205 applies to a record required to be made or maintained in
744     accordance with this Subsection (2).
745          (3) A nonprofit limited-service retailer may not sell, offer for sale, or furnish wine,
746     heavy beer, or beer at its licensed premises during a period that:
747          (a) begins at 1 a.m.; and
748          (b) ends at 9:59 a.m.
749          (4) A nonprofit limited-service retailer may employ a minor subject to Section
750     32B-5-308, except that a nonprofit limited-service retailer may not employ a minor to enter the
751     sale of an alcoholic product at a cash register or other sales recording device.
752          (5) (a) A person may not sell, offer for sale, furnish, or allow the consumption of the
753     following on the licensed premises of a nonprofit limited-service retailer:
754          (i) spirituous liquor; or
755          (ii) a flavored malt beverage.
756          (b) A product listed in Subsection (5)(a) may not be on the premises of a nonprofit
757     limited-service retailer licensee except for use:
758          (i) as a flavoring on a dessert; and
759          (ii) in the preparation of a flaming food dish, drink, or dessert.
760          (6) No more than 15% of the nonprofit limited-service retailer's gross receipts may
761     come from the selling of wine, heavy beer, or beer.
762          (7) A patron may consume wine, heavy beer, or beer at any location within the
763     premises designated for consumption in the floor plan required in Section 32B-5-201.
764          (8) Wine, heavy beer, or beer may only be dispensed from a concession area that is
765     separated from the patron by a bar that is a barrier so that the dispensing and storage of
766     alcoholic beverages is not accessible to a patron.
767          (9) Wine may be poured into a glass from any size container and need not be dispensed
768     through a dispensing system. Heavy beer and beer may be dispensed in accordance with
769     Section 32B-5-304.
770          (10) An individual portion of wine, heavy beer, or beer shall be sold, offered for sale,
771     or furnished in a container that is readily distinguishable from a nonalcoholic beverage.

772          (11) A nonprofit limited-service retailer shall have food available that can be purchased
773     at all times when an alcoholic product is sold, offered for sale, furnished, or consumed on the
774     licensed premises.
775          (12) (a) Wine, heavy beer, or beer shall be listed on a menu or an alcoholic beverage
776     menu.
777          (b) Advertising must comply with the rules issued by the commission under Section
778     32B-1-206.
779          (13) An individual who serves an alcoholic beverage shall wear a unique identification
780     badge showing the individual's first name, the individual's initials, or a number assigned by the
781     employer.
782          (14) (a) A nonprofit limited-service retailer is subject to Chapter 1, Part 5, Attire,
783     Conduct, and Entertainment Act, except that the nonprofit limited-service retailer may petition
784     the commission to inactivate the nonprofit limited-service retailer's license during a time period
785     that an event, presentation, exhibition, show, performance, or civic function occurs that is in
786     violation of Chapter 1, Part 5, Attire, Conduct, and Entertainment Act.
787          (b) The commission may make rules in accordance with Title 63G, Chapter 3, Utah
788     Administrative Rulemaking Act, to provide the process to inactivate a nonprofit limited-service
789     retailer license under this Subsection (14).






Legislative Review Note
     as of 2-2-15 5:44 PM


Office of Legislative Research and General Counsel