Representative Brad R. Wilson proposes the following substitute bill:


1     
ALCOHOL AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Brad R. Wilson

5     
Senate Sponsor: Jerry W. Stevenson

6     

7     LONG TITLE
8     General Description:
9           This bill modifies provisions related to the regulation of alcoholic beverages.
10     Highlighted Provisions:
11          This bill:
12          ▸      defines terms;
13          ▸     modifies the name of certain retail licenses;
14          ▸     provides that a local authority may issue a business license to a retail licensee only
15     if the licensee is lawfully present in the United States;
16          ▸     provides that a licensee or permittee may only engage in behavior expressly allowed
17     by Title 32B, Alcoholic Beverage Control Act, or local ordinance;
18          ▸     requires the Department of Alcoholic Beverage Control and the Alcoholic Beverage
19     Control Commission to implement and enforce the provisions of Title 32B,
20     Alcoholic Beverage Control Act, in accordance with its express language and stated
21     policy purpose;
22          ▸     reduces the permissible proximity of a restaurant licensee to a community location;
23          ▸     removes the commission's authority to grant a variance to the proximity
24     requirements;
25          ▸     modifies the calculation of the money from the sale of a bottle of wine by a retail

26     licensee or sublicensee in determining the percentage of gross receipts from the sale of food or
27     an alcoholic product;
28          ▸     requires electronic age verification of certain individuals who procure an alcoholic
29     product in a dispensing area in a restaurant;
30          ▸     modifies the application requirements for approval of the label and packaging of a
31     malted beverage;
32          ▸     modifies the labeling and packaging requirements for certain malted beverages;
33          ▸     reduces and modifies the membership of the Alcoholic Beverage Control Advisory
34     Board;
35          ▸     increases the mark-up on alcoholic beverages;
36          ▸     creates two school-based underage drinking prevention programs that are presented
37     to students in grades 8 and 10 in the state;
38          ▸     requires a presiding officer to consider any aggravating circumstances or mitigating
39     circumstances when imposing a fine;
40          ▸     provides that each retail licensee shall submit a responsible alcohol service plan to
41     the department upon application for or renewal of a retail license;
42          ▸     prohibits more than one type of retail license for the same room, unless the licenses
43     are a combination of two or more of the following:
44               •     a restaurant license;
45               •     an on-premise beer retailer license that is not a tavern; and
46               •     an on-premise banquet license or reception center license;
47          ▸     provides that an individual may not carry a sealed container of an alcoholic
48     beverage from the premises of a retail licensee;
49          ▸     states that a retail licensee may provide wine service for a bottled wine carried onto
50     the licensed premises or purchased at the licensed premises;
51          ▸     requires the department to develop the following training programs:
52               •     a training program for retail managers;
53               •     a training program for off-premise retail managers; and
54               •     a training program for an individual who commits a violation related to service
55     to an intoxicated individual or a minor;
56          ▸     enacts a process for the Department of Public Safety to track violations of each

57     retail licensee involving the sale of an alcoholic product to a minor;
58          ▸     establishes a flat renewal fee for a full-service restaurant licensee;
59          ▸     provides that beginning on July 1, 2017, and no later than July 1, 2018, a restaurant
60     licensee that does not have a grandfathered bar structure shall designate a
61     dispensing area within which:
62               •     the restaurant licensee may store and dispense alcoholic product at a dispensing
63     structure;
64               •     an individual 21 years of age or older may consume food and beverages; and
65               •     except under certain circumstances, a minor may not be present;
66          ▸     removes grandfathered bar structures beginning on July 1, 2022;
67          ▸     extends the hours during which a restaurant licensee may sell, offer for sale, or
68     furnish an alcoholic product on a weekend or a state or federal legal holiday;
69          ▸     provides that a restaurant licensee may sell, offer for sale, or furnish an alcoholic
70     product to a patron only if:
71               •     the patron is seated in a dispensing area and furnished no more than one portion
72     or an alcoholic product while waiting for a seat in the dining area where the
73     patron intends to order and consume food; or
74               •     the patron is seated at a table, counter, or dispensing structure, and the patron
75     intends to order and consume food in the same location where the patron is
76     seated;
77          ▸     provides that a restaurant licensee may not transfer, dispense, or serve an alcoholic
78     product from a movable cart;
79          ▸     addresses the retention of certain records for restaurant licensees;
80          ▸     requires a restaurant licensee or a bar licensee to display a sign that states whether
81     the licensee is a restaurant or a bar;
82          ▸     prohibits the commission from issuing or renewing a dining club license on or after
83     July 1, 2017;
84          ▸     provides that effective July 1, 2018, each dining club licensee converts to a
85     full-service restaurant licensee or a bar licensee;
86          ▸     provides a phased transition for a dining club licensee that converts to a full-service
87     restaurant licensee;

88          ▸     allows a performing arts facility to obtain an on-premise banquet license;
89          ▸     beginning July 1, 2018, establishes an off-premise beer retailer state license,
90     including an application process, fees, and renewal procedures;
91          ▸     provides that an off-premise beer retailer shall display beer in no more than two
92     locations that are separate from any nonalcoholic beverage;
93          ▸     addresses notification to the department if an off-premise beer retailer changes
94     ownership;
95          ▸     modifies and repeals certain provisions related to local authority enforcement of
96     off-premise beer retailers to correspond with the state enforcement mechanisms
97     available under the off-premise beer retailer state license; and
98          ▸     makes technical and conforming changes.
99     Money Appropriated in this Bill:
100          None
101     Other Special Clauses:
102          None
103     Utah Code Sections Affected:
104     AMENDS:
105          11-10-1, as last amended by Laws of Utah 2010, Chapter 276
106          11-10-2, as last amended by Laws of Utah 1990, Chapter 23
107          26-38-2, as last amended by Laws of Utah 2012, Chapter 171
108          32B-1-102, as last amended by Laws of Utah 2016, Chapters 80, 176, and 348
109          32B-1-104, as enacted by Laws of Utah 2010, Chapter 276
110          32B-1-201, as last amended by Laws of Utah 2013, Chapter 349
111          32B-1-202, as last amended by Laws of Utah 2016, Chapter 176
112          32B-1-207, as enacted by Laws of Utah 2011, Chapter 334
113          32B-1-305, as last amended by Laws of Utah 2015, Chapter 351
114          32B-1-407, as last amended by Laws of Utah 2011, Chapters 297 and 334
115          32B-1-505, as last amended by Laws of Utah 2011, Chapter 297
116          32B-1-604, as enacted by Laws of Utah 2010, Chapter 276
117          32B-1-605, as last amended by Laws of Utah 2011, Chapters 307 and 334
118          32B-1-606, as enacted by Laws of Utah 2010, Chapter 276

119          32B-2-202, as last amended by Laws of Utah 2016, Chapter 80
120          32B-2-210, as last amended by Laws of Utah 2016, Chapter 158
121          32B-2-304, as last amended by Laws of Utah 2012, Chapter 357
122          32B-2-306, as enacted by Laws of Utah 2012, Chapter 388
123          32B-3-102, as enacted by Laws of Utah 2010, Chapter 276
124          32B-3-205, as enacted by Laws of Utah 2010, Chapter 276
125          32B-4-410, as last amended by Laws of Utah 2015, Chapter 165
126          32B-4-415, as last amended by Laws of Utah 2016, Chapters 80, 245, and 348
127          32B-4-501, as last amended by Laws of Utah 2016, Chapter 80
128          32B-5-201, as enacted by Laws of Utah 2010, Chapter 276
129          32B-5-202, as enacted by Laws of Utah 2010, Chapter 276
130          32B-5-307, as last amended by Laws of Utah 2016, Chapter 82
131          32B-5-402, as enacted by Laws of Utah 2010, Chapter 276
132          32B-5-403, as last amended by Laws of Utah 2016, Chapter 176
133          32B-5-404, as enacted by Laws of Utah 2010, Chapter 276
134          32B-6-202, as last amended by Laws of Utah 2011, Chapter 334
135          32B-6-204, as last amended by Laws of Utah 2012, Fourth Special Session, Chapter 1
136          32B-6-205, as last amended by Laws of Utah 2013, Chapter 353
137          32B-6-302, as last amended by Laws of Utah 2011, Chapter 334
138          32B-6-305, as last amended by Laws of Utah 2013, Chapter 353
139          32B-6-401, as enacted by Laws of Utah 2010, Chapter 276
140          32B-6-403, as last amended by Laws of Utah 2016, Chapter 80
141          32B-6-404, as last amended by Laws of Utah 2016, Chapter 348
142          32B-6-405, as last amended by Laws of Utah 2011, Chapters 307 and 334
143          32B-6-406, as last amended by Laws of Utah 2011, Chapter 334
144          32B-6-406.1, as enacted by Laws of Utah 2010, Chapter 276
145          32B-6-407, as last amended by Laws of Utah 2013, Chapter 349
146          32B-6-408, as enacted by Laws of Utah 2010, Chapter 276
147          32B-6-603, as last amended by Laws of Utah 2016, Chapter 82
148          32B-6-605, as last amended by Laws of Utah 2011, Chapters 307 and 334
149          32B-6-703, as last amended by Laws of Utah 2016, Chapter 82

150          32B-6-706, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
151          32B-6-902, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
152          32B-6-905, as last amended by Laws of Utah 2013, Chapter 353
153          32B-7-202, as last amended by Laws of Utah 2011, Chapter 307
154          32B-7-305, as enacted by Laws of Utah 2010, Chapter 276 and last amended by
155     Coordination Clause, Laws of Utah 2010, Chapter 276
156          32B-8-102, as last amended by Laws of Utah 2015, Chapter 258
157          32B-8-304, as last amended by Laws of Utah 2011, Chapters 297 and 334
158          32B-8a-302, as last amended by Laws of Utah 2016, Chapter 82
159          32B-8b-102, as enacted by Laws of Utah 2016, Chapter 80
160          32B-8b-201, as enacted by Laws of Utah 2016, Chapter 80
161          53-10-305, as last amended by Laws of Utah 2010, Chapter 276
162          53A-13-102, as last amended by Laws of Utah 2002, Fifth Special Session, Chapter 8
163          62A-15-401, as last amended by Laws of Utah 2011, Chapter 334
164          63I-2-232, as renumbered and amended by Laws of Utah 2008, Chapter 382
165     ENACTS:
166          32B-5-207, Utah Code Annotated 1953
167          32B-5-405, Utah Code Annotated 1953
168          32B-5-406, Utah Code Annotated 1953
169          32B-6-205.2, Utah Code Annotated 1953
170          32B-6-205.3, Utah Code Annotated 1953
171          32B-6-305.2, Utah Code Annotated 1953
172          32B-6-305.3, Utah Code Annotated 1953
173          32B-6-404.1, Utah Code Annotated 1953
174          32B-6-905.1, Utah Code Annotated 1953
175          32B-6-905.2, Utah Code Annotated 1953
176          32B-7-401, Utah Code Annotated 1953
177          32B-7-402, Utah Code Annotated 1953
178          32B-7-403, Utah Code Annotated 1953
179          32B-7-404, Utah Code Annotated 1953
180          32B-7-405, Utah Code Annotated 1953

181     REPEALS:
182          32B-6-205.1, as enacted by Laws of Utah 2010, Chapter 276
183          32B-6-305.1, as enacted by Laws of Utah 2010, Chapter 276
184     

185     Be it enacted by the Legislature of the state of Utah:
186          Section 1. Section 11-10-1 is amended to read:
187          11-10-1. Business license required -- Authorization for issuance, denial,
188     suspension, or revocation by local authority.
189          (1) As used in this chapter, the following have the meaning set forth in Section
190     32B-1-102:
191          (a) "alcoholic product";
192          (b) "[club] bar establishment license";
193          (c) "local authority"; and
194          (d) "restaurant."
195          (2) A person may not operate an association, a restaurant, a bar, or a business similar to
196     a business operated under a [club] bar establishment license, or other similar business that
197     allows a person to possess or consume an alcoholic product on the premises of the association,
198     restaurant, [club] bar, or similar business premises without a business license.
199          (3) (a) A local authority may issue a business license to a person who owns or operates
200     an association, restaurant, [club] bar, or similar business that allows a person to hold, store,
201     possess, or consume an alcoholic product on the premises.
202          (b) A business license issued under this Subsection (3) does not permit a person to
203     hold, store, possess, or consume an alcoholic product on the premises other than as provided in
204     Title 32B, Alcoholic Beverage Control Act.
205          (4) A local authority may suspend or revoke a business license for a violation of Title
206     32B, Alcoholic Beverage Control Act.
207          (5) A local authority shall set policy by written rules that establish criteria and
208     procedures for granting, denying, suspending, or revoking a business license issued under this
209     chapter.
210          (6) A business license issued under this section does not constitute written consent of
211     the local authority within the meaning of Title 32B, Alcoholic Beverage Control Act.

212          Section 2. Section 11-10-2 is amended to read:
213          11-10-2. Qualifications of licensee.
214          (1) A license may not be granted:
215          (a) unless the licensee is of good moral character, over the age of 21 years, and [a
216     citizen of] lawfully present in the United States;
217          (b) to anyone who has been convicted of a felony or misdemeanor involving moral
218     turpitude;
219          (c) to any partnership or association, any member of which lacks any of the
220     qualifications set out in this section; or
221          (d) to any corporation, if any of its directors or officers lacks any qualification set out
222     in this section.
223          (2) The local authority shall, before issuing licenses, satisfy itself by written evidence
224     executed by the applicant that the applicant meets the standards set forth.
225          Section 3. Section 26-38-2 is amended to read:
226          26-38-2. Definitions.
227          As used in this chapter:
228          (1) "E-cigarette":
229          (a) means any electronic oral device:
230          (i) that provides a vapor of nicotine or other substance; and
231          (ii) which simulates smoking through its use or through inhalation of the device; and
232          (b) includes an oral device that is:
233          (i) composed of a heating element, battery, or electronic circuit; and
234          (ii) marketed, manufactured, distributed, or sold as:
235          (A) an e-cigarette;
236          (B) e-cigar;
237          (C) e-pipe; or
238          (D) any other product name or descriptor, if the function of the product meets the
239     definition of Subsection (1)(a).
240          (2) "Place of public access" means any enclosed indoor place of business, commerce,
241     banking, financial service, or other service-related activity, whether publicly or privately owned
242     and whether operated for profit or not, to which persons not employed at the place of public

243     access have general and regular access or which the public uses, including:
244          (a) buildings, offices, shops, elevators, or restrooms;
245          (b) means of transportation or common carrier waiting rooms;
246          (c) restaurants, cafes, or cafeterias;
247          (d) taverns as defined in Section 32B-1-102, or cabarets;
248          (e) shopping malls, retail stores, grocery stores, or arcades;
249          (f) libraries, theaters, concert halls, museums, art galleries, planetariums, historical
250     sites, auditoriums, or arenas;
251          (g) barber shops, hair salons, or laundromats;
252          (h) sports or fitness facilities;
253          (i) common areas of nursing homes, hospitals, resorts, hotels, motels, "bed and
254     breakfast" lodging facilities, and other similar lodging facilities, including the lobbies,
255     hallways, elevators, restaurants, cafeterias, other designated dining areas, and restrooms of any
256     of these;
257          (j) (i) any child care facility or program subject to licensure or certification under this
258     title, including those operated in private homes, when any child cared for under that license is
259     present; and
260          (ii) any child care, other than child care as defined in Section 26-39-102, that is not
261     subject to licensure or certification under this title, when any child cared for by the provider,
262     other than the child of the provider, is present;
263          (k) public or private elementary or secondary school buildings and educational
264     facilities or the property on which those facilities are located;
265          (l) any building owned, rented, leased, or otherwise operated by a social, fraternal, or
266     religious organization when used solely by the organization members or their guests or
267     families;
268          (m) any facility rented or leased for private functions from which the general public is
269     excluded and arrangements for the function are under the control of the function sponsor;
270          (n) any workplace that is not a place of public access or a publicly owned building or
271     office but has one or more employees who are not owner-operators of the business;
272          (o) any area where the proprietor or manager of the area has posted a conspicuous sign
273     stating "no smoking", "thank you for not smoking", or similar statement; and

274          (p) a holder of a [club] bar establishment license, as defined in Section 32B-1-102.
275          (3) "Publicly owned building or office" means any enclosed indoor place or portion of
276     a place owned, leased, or rented by any state, county, or municipal government, or by any
277     agency supported by appropriation of, or by contracts or grants from, funds derived from the
278     collection of federal, state, county, or municipal taxes.
279          (4) "Smoking" means:
280          (a) the possession of any lighted or heated tobacco product in any form;
281          (b) inhaling, exhaling, burning, or heating a substance containing tobacco or nicotine
282     intended for inhalation through a cigar, cigarette, pipe, or hookah;
283          (c) except as provided in Section 26-38-2.6, using an e-cigarette; or
284          (d) using an oral smoking device intended to circumvent the prohibition of smoking in
285     this chapter.
286          Section 4. Section 32B-1-102 is amended to read:
287          32B-1-102. Definitions.
288          As used in this title:
289          (1) "Airport lounge" means a business location:
290          (a) at which an alcoholic product is sold at retail for consumption on the premises; and
291          (b) that is located at an international airport with a United States Customs office on the
292     premises of the international airport.
293          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
294     Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
295          (3) "Alcoholic beverage" means the following:
296          (a) beer; or
297          (b) liquor.
298          (4) (a) "Alcoholic product" means a product that:
299          (i) contains at least .5% of alcohol by volume; and
300          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
301     process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
302     in an amount equal to or greater than .5% of alcohol by volume.
303          (b) "Alcoholic product" includes an alcoholic beverage.
304          (c) "Alcoholic product" does not include any of the following common items that

305     otherwise come within the definition of an alcoholic product:
306          (i) except as provided in Subsection (4)(d), an extract;
307          (ii) vinegar;
308          (iii) cider;
309          (iv) essence;
310          (v) tincture;
311          (vi) food preparation; or
312          (vii) an over-the-counter medicine.
313          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
314     when it is used as a flavoring in the manufacturing of an alcoholic product.
315          (5) "Alcohol training and education seminar" means a seminar that is:
316          (a) required by Chapter 5, Part 4, Alcohol Training and Education Act; and
317          (b) described in Section 62A-15-401.
318          (6) "Banquet" means an event:
319          (a) that is held at one or more designated locations approved by the commission in or
320     on the premises of a:
321          (i) hotel;
322          (ii) resort facility;
323          (iii) sports center; [or]
324          (iv) convention center; or
325          (v) performing arts facility;
326          (b) for which there is a contract:
327          (i) between a person operating a facility listed in Subsection (6)(a) and another person;
328     and
329          (ii) under which the person operating a facility listed in Subsection (6)(a) is required to
330     provide an alcoholic product at the event; and
331          (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
332          [(7) (a) "Bar" means a surface or structure:]
333          [(i) at which an alcoholic product is:]
334          [(A) stored; or]
335          [(B) dispensed; or]

336          [(ii) from which an alcoholic product is served.]
337          [(b)] (7) "Bar structure" means a surface or structure on a licensed premises if on or at
338     any place of the surface or structure an alcoholic product is:
339          [(i)] (a) stored; or
340          [(ii)] (b) dispensed.
341          [(18)] (8) (a) "[Club] Bar establishment license" means a license issued in accordance
342     with Chapter 5, Retail License Act, and Chapter 6, Part 4, [Club] Bar Establishment License.
343          (b) "[Club] Bar establishment license" includes:
344          (i) a dining club license;
345          (ii) an equity [club] license;
346          (iii) a fraternal [club] license; or
347          (iv) a [social club] bar license.
348          [(102)] (9) "[Social club] Bar license" means a license issued in accordance with
349     Chapter 5, Retail License Act, and Chapter 6, Part 4, [Club License, that is designated by the
350     commission as a social club license] Bar Establishment License.
351          [(8)] (10) (a) Subject to Subsection [(8)] (10)(d), "beer" means a product that:
352          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
353     volume or 3.2% by weight; and
354          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
355          (b) "Beer" may or may not contain hops or other vegetable products.
356          (c) "Beer" includes a product that:
357          (i) contains alcohol in the percentages described in Subsection [(8)] (10)(a); and
358          (ii) is referred to as:
359          (A) beer;
360          (B) ale;
361          (C) porter;
362          (D) stout;
363          (E) lager; or
364          (F) a malt or malted beverage.
365          (d) "Beer" does not include a flavored malt beverage.
366          [(9)] (11) "Beer-only restaurant license" means a license issued in accordance with

367     Chapter 5, Retail License Act, and Chapter 6, Part 9, Beer-Only Restaurant License.
368          [(10)] (12) "Beer retailer" means a business that:
369          (a) [that] is engaged, primarily or incidentally, in the retail sale of beer to a patron,
370     whether for consumption on or off the business premises; and
371          [(b) to whom a license is issued:]
372          (b) is licensed as:
373          (i) [for] an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-Premise
374     Beer Retailer Local Authority; or
375          (ii) [for] an on-premise beer retailer, in accordance with Chapter 5, Retail License Act,
376     and Chapter 6, Part 7, On-Premise Beer Retailer License.
377          [(11)] (13) "Beer wholesaling license" means a license:
378          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
379          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
380     retail licensees or off-premise beer retailers.
381          [(12)] (14) "Billboard" means a public display used to advertise, including:
382          (a) a light device;
383          (b) a painting;
384          (c) a drawing;
385          (d) a poster;
386          (e) a sign;
387          (f) a signboard; or
388          (g) a scoreboard.
389          [(13)] (15) "Brewer" means a person engaged in manufacturing:
390          (a) beer;
391          (b) heavy beer; or
392          (c) a flavored malt beverage.
393          [(14)] (16) "Brewery manufacturing license" means a license issued in accordance with
394     Chapter 11, Part 5, Brewery Manufacturing License.
395          [(15)] (17) "Certificate of approval" means a certificate of approval obtained from the
396     department under Section 32B-11-201.
397          [(16)] (18) "Chartered bus" means a passenger bus, coach, or other motor vehicle

398     provided by a bus company to a group of persons pursuant to a common purpose:
399          (a) under a single contract;
400          (b) at a fixed charge in accordance with the bus company's tariff; and
401          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
402     motor vehicle, and a driver to travel together to one or more specified destinations.
403          [(17)] (19) "Church" means a building:
404          (a) set apart for worship;
405          (b) in which religious services are held;
406          (c) with which clergy is associated; and
407          (d) that is tax exempt under the laws of this state.
408          [(19)] (20) "Commission" means the Alcoholic Beverage Control Commission created
409     in Section 32B-2-201.
410          [(20)] (21) "Commissioner" means a member of the commission.
411          [(21)] (22) "Community location" means:
412          (a) a public or private school;
413          (b) a church;
414          (c) a public library;
415          (d) a public playground; or
416          (e) a public park.
417          [(22)] (23) "Community location governing authority" means:
418          (a) the governing body of the community location; or
419          (b) if the commission does not know who is the governing body of a community
420     location, a person who appears to the commission to have been given on behalf of the
421     community location the authority to prohibit an activity at the community location.
422          [(23)] (24) "Container" means a receptacle that contains an alcoholic product,
423     including:
424          (a) a bottle;
425          (b) a vessel; or
426          (c) a similar item.
427          [(24)] (25) "Convention center" means a facility that is:
428          (a) in total at least 30,000 square feet; and

429          (b) otherwise defined as a "convention center" by the commission by rule.
430          [(25)] (26) (a) [Subject to Subsection (25)(b), "counter"] "Counter" means a surface or
431     structure in a dining area of a licensed premises where seating is provided to a patron for
432     service of food.
433          (b) "Counter" does not include [a surface or structure if on or at any point of the
434     surface or structure an alcoholic product is:] a dispensing structure.
435          [(i) stored; or]
436          [(ii) dispensed.]
437          [(26)] (27) "Department" means the Department of Alcoholic Beverage Control created
438     in Section 32B-2-203.
439          [(27)] (28) "Department compliance officer" means an individual who is:
440          (a) an auditor or inspector; and
441          (b) employed by the department.
442          [(28)] (29) "Department sample" means liquor that is placed in the possession of the
443     department for testing, analysis, and sampling.
444          [(29)] (30) "Dining club license" means a license issued in accordance with Chapter 5,
445     Retail License Act, and Chapter 6, Part 4, [Club] Bar Establishment License, that is designated
446     by the commission as a dining club license.
447          [(30)] (31) "Director," unless the context requires otherwise, means the director of the
448     department.
449          [(31)] (32) "Disciplinary proceeding" means an adjudicative proceeding permitted
450     under this title:
451          (a) against a person subject to administrative action; and
452          (b) that is brought on the basis of a violation of this title.
453          [(32)] (33) (a) Subject to Subsection [(32)] (33)(b), "dispense" means:
454          (i) drawing of an alcoholic product:
455          (A) from an area where it is stored; or
456          (B) as provided in Subsection 32B-6-205(12)(b)(ii), 32B-6-305(12)(b)(ii),
457     32B-6-805(15)(b)(ii), or 32B-6-905(12)(b)(ii); and
458          (ii) using the alcoholic product described in Subsection [(32)] (33)(a)(i) on the
459     premises of the licensed premises to mix or prepare an alcoholic product to be furnished to a

460     patron of the retail licensee.
461          (b) The definition of "dispense" in this Subsection [(32)] (33) applies only to:
462          (i) a full-service restaurant license;
463          (ii) a limited-service restaurant license;
464          (iii) a reception center license; and
465          (iv) a beer-only restaurant license.
466          (34) "Dispensing structure" means a surface or structure on a licensed premises:
467          (a) where an alcoholic product is stored or dispensed; or
468          (b) from which an alcoholic product is served.
469          [(33)] (35) "Distillery manufacturing license" means a license issued in accordance
470     with Chapter 11, Part 4, Distillery Manufacturing License.
471          [(34)] (36) "Distressed merchandise" means an alcoholic product in the possession of
472     the department that is saleable, but for some reason is unappealing to the public.
473          [(35)] (37) "Educational facility" includes:
474          (a) a nursery school;
475          (b) an infant day care center; and
476          (c) a trade and technical school.
477          [(36)] (38) "Equity [club] license" means a license issued in accordance with Chapter
478     5, Retail License Act, and Chapter 6, Part 4, [Club] Bar Establishment License, that is
479     designated by the commission as an equity [club] license.
480          [(37)] (39) "Event permit" means:
481          (a) a single event permit; or
482          (b) a temporary beer event permit.
483          [(38)] (40) "Exempt license" means a license exempt under Section 32B-1-201 from
484     being considered in determining the total number of retail licenses that the commission may
485     issue at any time.
486          [(39)] (41) (a) "Flavored malt beverage" means a beverage:
487          (i) that contains at least .5% alcohol by volume;
488          (ii) that is treated by processing, filtration, or another method of manufacture that is not
489     generally recognized as a traditional process in the production of a beer as described in 27
490     C.F.R. Sec. 25.55;

491          (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
492     extract; and
493          (iv) (A) for which the producer is required to file a formula for approval with the
494     federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
495          (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
496          (b) "Flavored malt beverage" is considered liquor for purposes of this title.
497          [(40)] (42) "Fraternal [club] license" means a license issued in accordance with
498     Chapter 5, Retail License Act, and Chapter 6, Part 4, [Club] Bar Establishment License, that is
499     designated by the commission as a fraternal [club] license.
500          [(41)] (43) "Full-service restaurant license" means a license issued in accordance with
501     Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-Service Restaurant License.
502          [(42)] (44) (a) "Furnish" means by any means to provide with, supply, or give an
503     individual an alcoholic product, by sale or otherwise.
504          (b) "Furnish" includes to:
505          (i) serve;
506          (ii) deliver; or
507          (iii) otherwise make available.
508          [(43)] (45) "Guest" means an individual who meets the requirements of Subsection
509     32B-6-407(9).
510          [(44)] (46) "Health care practitioner" means:
511          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
512          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
513          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
514          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
515     Act;
516          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
517     Nurse Practice Act;
518          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
519     Practice Act;
520          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
521     Therapy Practice Act;

522          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
523          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
524     Professional Practice Act;
525          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
526          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
527     Practice Act;
528          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
529     Hygienist Practice Act; and
530          (m) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act.
531          [(45)] (47) (a) "Heavy beer" means a product that:
532          (i) contains more than 4% alcohol by volume; and
533          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
534          (b) "Heavy beer" is considered liquor for the purposes of this title.
535          [(46)] (48) "Hotel" is as defined by the commission by rule.
536          [(47)] (49) "Hotel license" means a license issued in accordance with Chapter 5, Retail
537     License Act, and Chapter 8b, Hotel License Act.
538          [(48)] (50) "Identification card" means an identification card issued under Title 53,
539     Chapter 3, Part 8, Identification Card Act.
540          [(49)] (51) "Industry representative" means an individual who is compensated by
541     salary, commission, or other means for representing and selling an alcoholic product of a
542     manufacturer, supplier, or importer of liquor.
543          [(50)] (52) "Industry representative sample" means liquor that is placed in the
544     possession of the department for testing, analysis, and sampling by a local industry
545     representative on the premises of the department to educate the local industry representative of
546     the quality and characteristics of the product.
547          [(51)] (53) "Interdicted person" means a person to whom the sale, offer for sale, or
548     furnishing of an alcoholic product is prohibited by:
549          (a) law; or
550          (b) court order.
551          [(52)] (54) "Intoxicated" means that a person:
552          (a) is significantly impaired as to the person's mental or physical functions as a result of

553     the use of:
554          (i) an alcoholic product;
555          (ii) a controlled substance;
556          (iii) a substance having the property of releasing toxic vapors; or
557          (iv) a combination of Subsections [(52)] (54)(a)(i) through (iii); and
558          (b) exhibits plain and easily observed outward manifestations of behavior or physical
559     signs produced by the overconsumption of an alcoholic product.
560          [(53)] (55) "Investigator" means an individual who is:
561          (a) a department compliance officer; or
562          (b) a nondepartment enforcement officer.
563          [(54)] (56) "Invitee" means the same as that term is defined in Section 32B-8-102.
564          [(55)] (57) "License" means:
565          (a) a retail license;
566          (b) a license issued in accordance with Chapter 11, Manufacturing and Related
567     Licenses Act;
568          (c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
569     or
570          (d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act.
571          [(56)] (58) "Licensee" means a person who holds a license.
572          [(57)] (59) "Limited-service restaurant license" means a license issued in accordance
573     with Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-Service Restaurant License.
574          [(58)] (60) "Limousine" means a motor vehicle licensed by the state or a local
575     authority, other than a bus or taxicab:
576          (a) in which the driver and a passenger are separated by a partition, glass, or other
577     barrier;
578          (b) that is provided by a business entity to one or more individuals at a fixed charge in
579     accordance with the business entity's tariff; and
580          (c) to give the one or more individuals the exclusive use of the limousine and a driver
581     to travel to one or more specified destinations.
582          [(59)] (61) (a) (i) "Liquor" means a liquid that:
583          (A) is:

584          (I) alcohol;
585          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
586          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
587          (IV) other drink or drinkable liquid; and
588          (B) (I) contains at least .5% alcohol by volume; and
589          (II) is suitable to use for beverage purposes.
590          (ii) "Liquor" includes:
591          (A) heavy beer;
592          (B) wine; and
593          (C) a flavored malt beverage.
594          (b) "Liquor" does not include beer.
595          [(60)] (62) "Liquor Control Fund" means the enterprise fund created by Section
596     32B-2-301.
597          [(61)] (63) "Liquor warehousing license" means a license that is issued:
598          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
599          (b) to a person, other than a licensed manufacturer, who engages in the importation for
600     storage, sale, or distribution of liquor regardless of amount.
601          [(62)] (64) "Local authority" means:
602          (a) for premises that are located in an unincorporated area of a county, the governing
603     body of a county; or
604          (b) for premises that are located in an incorporated city, town, or metro township, the
605     governing body of the city, town, or metro township.
606          [(63)] (65) "Lounge or bar area" is as defined by rule made by the commission.
607          [(64)] (66) "Manufacture" means to distill, brew, rectify, mix, compound, process,
608     ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
609     others.
610          [(65)] (67) "Member" means an individual who, after paying regular dues, has full
611     privileges in an equity [club] licensee or fraternal [club] licensee.
612          [(66)] (68) (a) "Military installation" means a base, air field, camp, post, station, yard,
613     center, or homeport facility for a ship:
614          (i) (A) under the control of the United States Department of Defense; or

615          (B) of the National Guard;
616          (ii) that is located within the state; and
617          (iii) including a leased facility.
618          (b) "Military installation" does not include a facility used primarily for:
619          (i) civil works;
620          (ii) a rivers and harbors project; or
621          (iii) a flood control project.
622          [(67)] (69) "Minor" means an individual under the age of 21 years.
623          [(68)] (70) "Nondepartment enforcement agency" means an agency that:
624          (a) (i) is a state agency other than the department; or
625          (ii) is an agency of a county, city, town, or metro township; and
626          (b) has a responsibility to enforce one or more provisions of this title.
627          [(69)] (71) "Nondepartment enforcement officer" means an individual who is:
628          (a) a peace officer, examiner, or investigator; and
629          (b) employed by a nondepartment enforcement agency.
630          [(70)] (72) (a) "Off-premise beer retailer" means a beer retailer who is:
631          (i) licensed in accordance with Chapter 7, [Part 2,] Off-Premise Beer Retailer [Local
632     Authority] Act; and
633          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
634     premises.
635          (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
636          (73) "Off-premise beer retailer state license" means a state license issued in accordance
637     with Chapter 7, Part 4, Off-Premise Beer Retailer State License.
638          [(71)] (74) "On-premise banquet license" means a license issued in accordance with
639     Chapter 5, Retail License Act, and Chapter 6, Part 6, On-Premise Banquet License.
640          [(72)] (75) "On-premise beer retailer" means a beer retailer who is:
641          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
642     accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-Premise Beer
643     Retailer License; and
644          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
645     premises:

646          (i) regardless of whether the beer retailer sells beer for consumption off the licensed
647     premises; and
648          (ii) on and after March 1, 2012, operating:
649          (A) as a tavern; or
650          (B) in a manner that meets the requirements of Subsection 32B-6-703(2)(e)(i).
651          [(73)] (76) "Opaque" means impenetrable to sight.
652          [(74)] (77) "Package agency" means a retail liquor location operated:
653          (a) under an agreement with the department; and
654          (b) by a person:
655          (i) other than the state; and
656          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
657     Agency, to sell packaged liquor for consumption off the premises of the package agency.
658          [(75)] (78) "Package agent" means a person who holds a package agency.
659          [(76)] (79) "Patron" means an individual to whom food, beverages, or services are sold,
660     offered for sale, or furnished, or who consumes an alcoholic product including:
661          (a) a customer;
662          (b) a member;
663          (c) a guest;
664          (d) an attendee of a banquet or event;
665          (e) an individual who receives room service;
666          (f) a resident of a resort;
667          (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102;
668     or
669          (h) an invitee.
670          (80) (a) "Performing arts facility" means a multi-use performance space that:
671          (i) is primarily used to present various types of performing arts, including dance,
672     music, and theater;
673          (ii) contains over 2,500 seats;
674          (iii) is owned and operated by a governmental entity; and
675          (iv) is located in a city of the first class.
676          (b) "Performing arts facility" does not include a space that is used to present sporting

677     events or sporting competitions.
678          [(77)] (81) "Permittee" means a person issued a permit under:
679          (a) Chapter 9, Event Permit Act; or
680          (b) Chapter 10, Special Use Permit Act.
681          [(78)] (82) "Person subject to administrative action" means:
682          (a) a licensee;
683          (b) a permittee;
684          (c) a manufacturer;
685          (d) a supplier;
686          (e) an importer;
687          (f) one of the following holding a certificate of approval:
688          (i) an out-of-state brewer;
689          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
690          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
691          (g) staff of:
692          (i) a person listed in Subsections [(78)] (82)(a) through (f); or
693          (ii) a package agent.
694          [(79)] (83) "Premises" means a building, enclosure, or room used in connection with
695     the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic
696     product, unless otherwise defined in this title or rules made by the commission.
697          [(80)] (84) "Prescription" means an order issued by a health care practitioner when:
698          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
699     to prescribe a controlled substance, other drug, or device for medicinal purposes;
700          (b) the order is made in the course of that health care practitioner's professional
701     practice; and
702          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
703          [(81)] (85) (a) "Private event" means a specific social, business, or recreational event:
704          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
705     group; and
706          (ii) that is limited in attendance to people who are specifically designated and their
707     guests.

708          (b) "Private event" does not include an event to which the general public is invited,
709     whether for an admission fee or not.
710          [(82)] (86) (a) "Proof of age" means:
711          (i) an identification card;
712          (ii) an identification that:
713          (A) is substantially similar to an identification card;
714          (B) is issued in accordance with the laws of a state other than Utah in which the
715     identification is issued;
716          (C) includes date of birth; and
717          (D) has a picture affixed;
718          (iii) a valid driver license certificate that:
719          (A) includes date of birth;
720          (B) has a picture affixed; and
721          (C) is issued:
722          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
723          (II) in accordance with the laws of the state in which it is issued;
724          (iv) a military identification card that:
725          (A) includes date of birth; and
726          (B) has a picture affixed; or
727          (v) a valid passport.
728          (b) "Proof of age" does not include a driving privilege card issued in accordance with
729     Section 53-3-207.
730          [(83)] (87) (a) "Public building" means a building or permanent structure that is:
731          (i) owned or leased by:
732          (A) the state; or
733          (B) a local government entity; and
734          (ii) used for:
735          (A) public education;
736          (B) transacting public business; or
737          (C) regularly conducting government activities.
738          (b) "Public building" does not include a building owned by the state or a local

739     government entity when the building is used by a person, in whole or in part, for a proprietary
740     function.
741          [(84)] (88) "Public conveyance" means a conveyance that the public or a portion of the
742     public has access to and a right to use for transportation, including an airline, railroad, bus,
743     boat, or other public conveyance.
744          [(85)] (89) "Reception center" means a business that:
745          (a) operates facilities that are at least 5,000 square feet; and
746          (b) has as its primary purpose the leasing of the facilities described in Subsection [(85)]
747     (89)(a) to a third party for the third party's event.
748          [(86)] (90) "Reception center license" means a license issued in accordance with
749     Chapter 5, Retail License Act, and Chapter 6, Part 8, Reception Center License.
750          [(87)] (91) (a) "Record" means information that is:
751          (i) inscribed on a tangible medium; or
752          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
753          (b) "Record" includes:
754          (i) a book;
755          (ii) a book of account;
756          (iii) a paper;
757          (iv) a contract;
758          (v) an agreement;
759          (vi) a document; or
760          (vii) a recording in any medium.
761          [(88)] (92) "Residence" means a person's principal place of abode within Utah.
762          [(89)] (93) "Resident," in relation to a resort, means the same as that term is defined in
763     Section 32B-8-102.
764          [(90)] (94) "Resort" means the same as that term is defined in Section 32B-8-102.
765          [(91)] (95) "Resort facility" is as defined by the commission by rule.
766          [(92)] (96) "Resort license" means a license issued in accordance with Chapter 5,
767     Retail License Act, and Chapter 8, Resort License Act.
768          (97) "Responsible alcohol service plan" means a written set of policies and procedures
769     that outlines measures to prevent employees from:

770          (a) over-serving alcoholic beverages to customers;
771          (b) serving alcoholic beverages to customers who are actually, apparently, or obviously
772     intoxicated; and
773          (c) serving alcoholic beverages to minors.
774          [(93)] (98) "Restaurant" means a business location:
775          (a) at which a variety of foods are prepared;
776          (b) at which complete meals are served to the general public; and
777          (c) that is engaged primarily in serving meals to the general public.
778          [(94)] (99) "Retail license" means one of the following licenses issued under this title:
779          (a) a full-service restaurant license;
780          (b) a master full-service restaurant license;
781          (c) a limited-service restaurant license;
782          (d) a master limited-service restaurant license;
783          (e) a [club] bar establishment license;
784          (f) an airport lounge license;
785          (g) an on-premise banquet license;
786          (h) an on-premise beer license;
787          (i) a reception center license;
788          (j) a beer-only restaurant license;
789          (k) a resort license; or
790          (l) a hotel license.
791          [(95)] (100) "Room service" means furnishing an alcoholic product to a person in a
792     guest room of a:
793          (a) hotel; or
794          (b) resort facility.
795          [(96)] (101) (a) "School" means a building used primarily for the general education of
796     minors.
797          (b) "School" does not include an educational facility.
798          [(97)] (102) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby,
799     for consideration, an alcoholic product is either directly or indirectly transferred, solicited,
800     ordered, delivered for value, or by a means or under a pretext is promised or obtained, whether

801     done by a person as a principal, proprietor, or as staff, unless otherwise defined in this title or
802     the rules made by the commission.
803          [(98)] (103) "Serve" means to place an alcoholic product before an individual.
804          [(99)] (104) "Sexually oriented entertainer" means a person who while in a state of
805     seminudity appears at or performs:
806          (a) for the entertainment of one or more patrons;
807          (b) on the premises of:
808          (i) a [social club] bar licensee; or
809          (ii) a tavern;
810          (c) on behalf of or at the request of the licensee described in Subsection [(99)]
811     (104)(b);
812          (d) on a contractual or voluntary basis; and
813          (e) whether or not the person is designated as:
814          (i) an employee;
815          (ii) an independent contractor;
816          (iii) an agent of the licensee; or
817          (iv) a different type of classification.
818          [(100)] (105) "Single event permit" means a permit issued in accordance with Chapter
819     9, Part 3, Single Event Permit.
820          [(101)] (106) "Small brewer" means a brewer who manufactures less than 60,000
821     barrels of beer, heavy beer, and flavored malt beverages per year.
822          [(103)] (107) "Special use permit" means a permit issued in accordance with Chapter
823     10, Special Use Permit Act.
824          [(104)] (108) (a) "Spirituous liquor" means liquor that is distilled.
825          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
826     27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
827          [(105)] (109) "Sports center" is as defined by the commission by rule.
828          [(106)] (110) (a) "Staff" means an individual who engages in activity governed by this
829     title:
830          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
831     holder;

832          (ii) at the request of the business, including a package agent, licensee, permittee, or
833     certificate holder; or
834          (iii) under the authority of the business, including a package agent, licensee, permittee,
835     or certificate holder.
836          (b) "Staff" includes:
837          (i) an officer;
838          (ii) a director;
839          (iii) an employee;
840          (iv) personnel management;
841          (v) an agent of the licensee, including a managing agent;
842          (vi) an operator; or
843          (vii) a representative.
844          [(107)] (111) "State of nudity" means:
845          (a) the appearance of:
846          (i) the nipple or areola of a female human breast;
847          (ii) a human genital;
848          (iii) a human pubic area; or
849          (iv) a human anus; or
850          (b) a state of dress that fails to opaquely cover:
851          (i) the nipple or areola of a female human breast;
852          (ii) a human genital;
853          (iii) a human pubic area; or
854          (iv) a human anus.
855          [(108)] (112) "State of seminudity" means a state of dress in which opaque clothing
856     covers no more than:
857          (a) the nipple and areola of the female human breast in a shape and color other than the
858     natural shape and color of the nipple and areola; and
859          (b) the human genitals, pubic area, and anus:
860          (i) with no less than the following at its widest point:
861          (A) four inches coverage width in the front of the human body; and
862          (B) five inches coverage width in the back of the human body; and

863          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
864          [(109)] (113) (a) "State store" means a facility for the sale of packaged liquor:
865          (i) located on premises owned or leased by the state; and
866          (ii) operated by a state employee.
867          (b) "State store" does not include:
868          (i) a package agency;
869          (ii) a licensee; or
870          (iii) a permittee.
871          [(110)] (114) (a) "Storage area" means an area on licensed premises where the licensee
872     stores an alcoholic product.
873          (b) "Store" means to place or maintain in a location an alcoholic product from which a
874     person draws to prepare an alcoholic product to be furnished to a patron, except as provided in
875     Subsection 32B-6-205(12)(b)(ii), 32B-6-305(12)(b)(ii), 32B-6-805(15)(b)(ii), or
876     32B-6-905(12)(b)(ii).
877          [(111)] (115) "Sublicense" means the same as that term is defined in Section
878     32B-8-102 or 32B-8b-102.
879          [(112)] (116) "Supplier" means a person who sells an alcoholic product to the
880     department.
881          [(113)] (117) "Tavern" means an on-premise beer retailer who is:
882          (a) issued a license by the commission in accordance with Chapter 5, Retail License
883     Act, and Chapter 6, Part 7, On-Premise Beer Retailer License; and
884          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
885     On-Premise Beer Retailer License.
886          [(114)] (118) "Temporary beer event permit" means a permit issued in accordance with
887     Chapter 9, Part 4, Temporary Beer Event Permit.
888          [(115)] (119) "Temporary domicile" means the principal place of abode within Utah of
889     a person who does not have a present intention to continue residency within Utah permanently
890     or indefinitely.
891          [(116)] (120) "Translucent" means a substance that allows light to pass through, but
892     does not allow an object or person to be seen through the substance.
893          [(117)] (121) "Unsaleable liquor merchandise" means a container that:

894          (a) is unsaleable because the container is:
895          (i) unlabeled;
896          (ii) leaky;
897          (iii) damaged;
898          (iv) difficult to open; or
899          (v) partly filled;
900          (b) (i) has faded labels or defective caps or corks;
901          (ii) has contents that are:
902          (A) cloudy;
903          (B) spoiled; or
904          (C) chemically determined to be impure; or
905          (iii) contains:
906          (A) sediment; or
907          (B) a foreign substance; or
908          (c) is otherwise considered by the department as unfit for sale.
909          [(118)] (122) (a) "Wine" means an alcoholic product obtained by the fermentation of
910     the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or
911     not another ingredient is added.
912          (b) "Wine" is considered liquor for purposes of this title, except as otherwise provided
913     in this title.
914          [(119)] (123) "Winery manufacturing license" means a license issued in accordance
915     with Chapter 11, Part 3, Winery Manufacturing License.
916          Section 5. Section 32B-1-104 is amended to read:
917          32B-1-104. Exercise of police powers -- Severability.
918          (1) (a) This title is an exercise of the police powers of the state for the protection of the
919     public health, peace, safety, welfare, and morals, and regulates the storage, sale, offer for sale,
920     furnishing, consumption, manufacture, and distribution of an alcoholic product.
921          (b) This title governs alcoholic product control unless otherwise provided in this title.
922          (c) If this title or a local ordinance adopted in accordance with Section 32B-1-204 does
923     not expressly permit a licensee or permittee to engage in an activity related to the storage, sale,
924     offer for sale, furnishing, consumption, manufacture, and distribution of an alcoholic product,

925     the licensee or permittee may not engage in that activity.
926          (2) The department and the commission:
927          (a) shall implement and enforce the provisions of this title in accordance with the
928     express language of the provisions and in a manner consistent with the policy described in
929     Section 32B-1-103; and
930          (b) may not waive any provision of this title.
931          [(2)] (3) If a provision of this title or the application of a provision to a person or
932     circumstance is held invalid, the remainder of this title shall be given effect without the invalid
933     provision or application. The provisions of this title are severable.
934          Section 6. Section 32B-1-201 is amended to read:
935          32B-1-201. Restrictions on number of retail licenses that may be issued --
936     Determining population -- Exempt licenses.
937          (1) As used in this section:
938          (a) "Alcohol-related law enforcement officer" means a law enforcement officer
939     employed by the Department of Public Safety that has as a primary responsibility:
940          (i) the enforcement of this title; or
941          (ii) the enforcement of Title 41, Chapter 6a, Part 5, Driving Under the Influence and
942     Reckless Driving.
943          (b) "Enforcement ratio" is the number calculated as follows:
944          (i) determine the quotient equal to the sum of the total number of quota retail licenses
945     available and the total number of licensed premises operating under a master full-service
946     restaurant license or under a master limited-service restaurant license divided by the total
947     number of alcohol-related law enforcement officers; and
948          (ii) round the number determined in accordance with Subsection (1)(b)(i) up to the
949     nearest whole number.
950          (c) "Quota retail license" means:
951          (i) a full-service restaurant license;
952          (ii) a limited-service restaurant license;
953          (iii) a [club] bar establishment license;
954          (iv) an on-premise banquet license;
955          (v) an on-premise beer retailer operating as a tavern; and

956          (vi) a reception center license.
957          (d) "Total number of alcohol-related law enforcement officers" means the total number
958     of positions designated as alcohol-related law enforcement officers that are funded as of a
959     specified date as certified by the Department of Public Safety to the department.
960          (e) "Total number of quota retail licenses available" means the number calculated by:
961          (i) determining as of a specified date for each quota retail license the number of
962     licenses that the commission may not exceed calculated by dividing the population of the state
963     by the number specified in the relevant provision for the quota retail license; and
964          (ii) adding together the numbers determined under Subsection (1)(e)(i).
965          (2) (a) Beginning on July 1, 2012, the department shall annually determine the
966     enforcement ratio as of July 1 of that year.
967          (b) If, beginning on July 1, 2012, the enforcement ratio is greater than 52, the
968     commission may not issue a quota retail license for the 12-month period beginning on the July
969     1 for which the enforcement ratio is greater than 52.
970          (c) Notwithstanding Subsection (2)(b), the commission may issue a quota retail license
971     during the 12-month period described in Subsection (2)(b) beginning on the day on which a
972     sufficient number of alcohol-related law enforcement officers are employed so that if the
973     enforcement ratio is calculated, the enforcement ratio would be equal to or less than 52.
974          (d) Once the Department of Public Safety certifies under Subsection (1)(d) the total
975     number of positions designated as alcohol-related law enforcement officers that are funded as
976     of July 1, the Department of Public Safety may not use the funding for the designated
977     alcohol-related law enforcement officers for a purpose other than funding those positions.
978          (3) For purposes of determining the number of state stores that the commission may
979     establish or the number of package agencies or retail licenses that the commission may issue,
980     the commission shall determine population by:
981          (a) the most recent United States decennial or special census; or
982          (b) another population determination made by the United States or state governments.
983          (4) The commission may not consider a retail license that meets the following
984     conditions in determining the total number of licenses available for that type of retail license
985     that the commission may issue at any time:
986          (a) the retail license was issued to a club licensee designated as a dining club as of July

987     1, 2011; and
988          (b) the dining club license is converted to another type of retail license in accordance
989     with Section 32B-6-409.
990          Section 7. Section 32B-1-202 is amended to read:
991          32B-1-202. Proximity to community location.
992          (1) [For purposes of] As used in this section[, "outlet" means]:
993          (a) (i) "Outlet" means:
994          [(a)] (A) a state store;
995          [(b)] (B) a package agency; or
996          [(c)] (C) a retail licensee[, except an airport lounge licensee].
997          (ii) "Outlet" does not include:
998          (A) an airport lounge licensee; or
999          (B) a restaurant.
1000          (b) "Restaurant" means:
1001          (i) a full-service restaurant licensee;
1002          (ii) a limited-service restaurant licensee; or
1003          (iii) a beer-only restaurant licensee.
1004          (2) (a) [Except as otherwise provided in this section, the] The premises of an outlet
1005     may not be located:
1006          [(a)] (i) within 600 feet of a community location, as measured from the nearest
1007     entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
1008     property boundary of the community location; or
1009          [(b)] (ii) within 200 feet of a community location, measured in a straight line from the
1010     nearest entrance of the outlet to the nearest property boundary of the community location.
1011          (b) The premises of a restaurant may not be located:
1012          (i) within 450 feet of a community location, as measured from the nearest entrance of
1013     the restaurant by following the shortest route of ordinary pedestrian travel to the property
1014     boundary of the community location; or
1015          (ii) within 200 feet of a community location, measured in a straight line from the
1016     nearest entrance of the restaurant to the nearest property boundary of the community location.
1017          [(3) With respect to the location of an outlet, the commission may authorize a variance

1018     to reduce the proximity requirement of Subsection (2) if:]
1019          [(a) when the variance reduces the proximity requirement of Subsection (2)(b), the
1020     community location at issue is:]
1021          [(i) a public library; or]
1022          [(ii) a public park;]
1023          [(b) except with respect to a state store, the local authority gives its written consent to
1024     the variance;]
1025          [(c) the commission finds that alternative locations for locating that type of outlet in
1026     the community are limited;]
1027          [(d) a public hearing is held in the city, town, metro township, or county, and when
1028     practical in the neighborhood concerned;]
1029          [(e) after giving full consideration to the attending circumstances and the policies
1030     stated in Subsections 32B-1-103(3) and (4), the commission determines that locating the outlet
1031     in that location would not be detrimental to the public health, peace, safety, and welfare of the
1032     community;]
1033          [(f) (i) the community location governing authority gives its written consent to the
1034     variance; or]
1035          [(ii) if the community location governing authority does not give its written consent to
1036     a variance, the commission finds the following for a state store, or if the outlet is a package
1037     agency or retail licensee, the commission finds that the applicant establishes the following:]
1038          [(A) there is substantial unmet public demand to consume an alcoholic product:]
1039          [(I) within the geographic boundary of the local authority in which the outlet is to be
1040     located; and]
1041          [(II) for an outlet that is a retail licensee, in a public setting;]
1042          [(B) there is no reasonably viable alternative for satisfying the substantial unmet
1043     demand other than through locating that type of outlet in that location; and]
1044          [(C) there is no reasonably viable alternative location within the geographic boundary
1045     of the local authority in which the outlet is to be located for locating that type of outlet to
1046     satisfy the unmet demand.]
1047          [(4) With respect to the premises of a package agency or retail licensee that undergoes
1048     a change of ownership, the commission may waive or vary the proximity requirements of

1049     Subsection (2) in considering whether to issue the package agency or same type of retail license
1050     to the new owner of the premises if:]
1051          [(a) the premises previously received a variance reducing the proximity requirement of
1052     Subsection (2)(a);]
1053          [(b) the premises received a variance reducing the proximity requirement of Subsection
1054     (2)(b) on or before May 4, 2008; or]
1055          [(c) a variance from proximity requirements was otherwise allowed under this title.]
1056          (3) For an outlet or a restaurant that holds a license on May 9, 2017, and operates under
1057     a previously approved variance to one or more proximity requirements in effect before May 9,
1058     2017, the outlet or restaurant may continue to operate under the variance if the outlet or
1059     restaurant remains in continuous operation, regardless of whether the outlet or restaurant
1060     changes ownership.
1061          [(5)] (4) Nothing in this section prevents the commission from considering the
1062     proximity of an educational, religious, and recreational facility, or any other relevant factor in
1063     reaching a decision on a proposed location of an outlet or a restaurant.
1064          Section 8. Section 32B-1-207 is amended to read:
1065          32B-1-207. Calculation of ratio of gross receipts of food to alcoholic product.
1066          In calculating the annual gross receipts of a retail license or sublicense for purposes of
1067     determining the percentage of gross receipts from the sale, offer for sale, or furnishing of food
1068     or an alcoholic product, a retail licensee may not include in the calculation the money from the
1069     sale of a bottle of wine by the retail licensee or under a sublicense that is in excess of [$250]
1070     $175.
1071          Section 9. Section 32B-1-305 is amended to read:
1072          32B-1-305. Requirement for a background check.
1073          (1) The department shall require an individual listed in Subsection (2), in accordance
1074     with this part, to:
1075          (a) provide a signed waiver from the individual whose fingerprints may be registered in
1076     the Federal Bureau of Investigation Rap Back system that notifies the signee:
1077          (i) that a criminal history background check will be conducted;
1078          (ii) who will see the information; and
1079          (iii) how the information will be used;

1080          (b) submit to a background check in a form acceptable to the department; and
1081          (c) consent to a background check by:
1082          (i) the Utah Bureau of Criminal Identification; and
1083          (ii) the Federal Bureau of Investigation.
1084          (2) The following shall comply with Subsection (1):
1085          (a) an individual applying for employment with the department if:
1086          (i) the department makes the decision to offer the individual employment with the
1087     department; and
1088          (ii) once employed, the individual will receive benefits;
1089          (b) an individual applying to the commission to operate a package agency;
1090          (c) an individual applying to the commission for a license, unless the license is an
1091     off-premise beer retailer state license;
1092          (d) an individual who with regard to an entity that is applying to the commission to
1093     operate a package agency or for a license is:
1094          (i) a partner;
1095          (ii) a managing agent;
1096          (iii) a manager;
1097          (iv) an officer;
1098          (v) a director;
1099          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of a
1100     corporation;
1101          (vii) a member who owns at least 20% of a limited liability company; or
1102          (viii) an individual employed to act in a supervisory or managerial capacity; or
1103          (e) an individual who becomes involved with an entity that operates a package agency
1104     or holds a license, if the individual is in a capacity listed in Subsection (2)(d) on or after the day
1105     on which the entity:
1106          (i) is approved to operate a package agency; or
1107          (ii) is licensed by the commission.
1108          (3) The department shall require compliance with Subsection (2)(e) as a condition of
1109     an entity's:
1110          (a) continued operation of a package agency; or

1111          (b) renewal of a license.
1112          (4) The department may require as a condition of continued employment that a
1113     department employee:
1114          (a) submit to a background check in a form acceptable to the department; and
1115          (b) consent to a fingerprint criminal background check by:
1116          (i) the Utah Bureau of Criminal Identification; and
1117          (ii) the Federal Bureau of Investigation.
1118          Section 10. Section 32B-1-407 is amended to read:
1119          32B-1-407. Verification of proof of age by applicable licensees.
1120          (1) As used in this section, "applicable licensee" means:
1121          (a) a dining club;
1122          (b) a [social club; or] bar;
1123          (c) a tavern[.];
1124          (d) a full-service restaurant;
1125          (e) a limited-service restaurant; or
1126          (f) a beer-only restaurant.
1127          (2) Notwithstanding any other provision of this part, an applicable licensee shall
1128     require that an authorized person for the applicable licensee verify proof of age as provided in
1129     this section.
1130          (3) An authorized person is required to verify proof of age under this section before an
1131     individual who appears to be 35 years of age or younger:
1132          (a) gains admittance to the premises of a [social club] bar licensee or tavern; [or]
1133          (b) procures an alcoholic product on the premises of a dining club licensee[.]; or
1134          (c) procures an alcoholic product in a dispensing area in the premises of a full-service
1135     restaurant licensee, a limited-service restaurant licensee, or a beer-only restaurant licensee.
1136          (4) To comply with Subsection (3), an authorized person shall:
1137          (a) request the individual present proof of age; and
1138          (b) (i) verify the validity of the proof of age electronically under the verification
1139     program created in Subsection (5); or
1140          (ii) if the proof of age cannot be electronically verified as provided in Subsection
1141     (4)(b)(i), request that the individual comply with a process established by the commission by

1142     rule.
1143          (5) The commission shall establish by rule an electronic verification program that
1144     includes the following:
1145          (a) the specifications for the technology used by the applicable licensee to
1146     electronically verify proof of age, including that the technology display to the person described
1147     in Subsection (2) no more than the following for the individual who presents the proof of age:
1148          (i) the name;
1149          (ii) the age;
1150          (iii) the number assigned to the individual's proof of age by the issuing authority;
1151          (iv) the birth date;
1152          (v) the gender; and
1153          (vi) the status and expiration date of the individual's proof of age; and
1154          (b) the security measures that shall be used by an applicable licensee to ensure that
1155     information obtained under this section is:
1156          (i) used by the applicable licensee only for purposes of verifying proof of age in
1157     accordance with this section; and
1158          (ii) retained by the applicable licensee for seven days after the day on which the
1159     applicable licensee obtains the information.
1160          (6) (a) An applicable licensee may not disclose information obtained under this section
1161     except as provided under this title.
1162          (b) Information obtained under this section is considered a record for any purpose
1163     under Chapter 5, Part 3, Retail Licensee Operational Requirements.
1164          Section 11. Section 32B-1-505 is amended to read:
1165          32B-1-505. Sexually oriented entertainer.
1166          (1) Subject to the requirements of this part, live entertainment is permitted on premises
1167     or at an event regulated by the commission.
1168          (2) Notwithstanding Subsection (1), a retail licensee or permittee may not permit a
1169     person to:
1170          (a) appear or perform in a state of nudity;
1171          (b) perform or simulate an act of:
1172          (i) sexual intercourse;

1173          (ii) masturbation;
1174          (iii) sodomy;
1175          (iv) bestiality;
1176          (v) oral copulation;
1177          (vi) flagellation; or
1178          (vii) a sexual act that is prohibited by Utah law; or
1179          (c) touch, caress, or fondle the breast, buttocks, anus, or genitals.
1180          (3) A sexually oriented entertainer may perform in a state of seminudity:
1181          (a) only in:
1182          (i) a tavern; or
1183          (ii) a [social club] bar license premises; and
1184          (b) only if:
1185          (i) the windows, doors, and other apertures to the premises are darkened or otherwise
1186     constructed to prevent anyone outside the premises from seeing the performance; and
1187          (ii) the outside entrance doors of the premises remain unlocked.
1188          (4) A sexually oriented entertainer may perform only upon a stage or in a designated
1189     performance area that is:
1190          (a) approved by the commission in accordance with rules made by the commission;
1191          (b) configured so as to preclude a patron from:
1192          (i) touching the sexually oriented entertainer; or
1193          (ii) placing any money or object on or within the performance attire or the person of the
1194     sexually oriented entertainer; and
1195          (c) configured so as to preclude the sexually oriented entertainer from touching a
1196     patron.
1197          (5) A sexually oriented entertainer may not touch a patron:
1198          (a) during the sexually oriented entertainer's performance; or
1199          (b) while the sexually oriented entertainer is dressed in performance attire.
1200          (6) A sexually oriented entertainer, while in the portion of the premises used by
1201     patrons, shall be dressed in opaque clothing which covers and conceals the sexually oriented
1202     entertainer's performance attire from the top of the breast to the knee.
1203          (7) A patron may not be on the stage or in the performance area while a sexually

1204     oriented entertainer is appearing or performing on the stage or in the performance area.
1205          (8) A patron may not:
1206          (a) touch a sexually oriented entertainer:
1207          (i) during the sexually oriented entertainer's performance; or
1208          (ii) while the sexually oriented entertainer is dressed in performance attire; or
1209          (b) place money or any other object on or within the performance attire or the person of
1210     the sexually oriented entertainer.
1211          (9) A minor may not be on premises described in Subsection (3).
1212          (10) A person who appears or performs for the entertainment of patrons on premises or
1213     at an event regulated by the commission that is not a tavern or [social club] bar licensee:
1214          (a) may not appear or perform in a state of nudity or a state of seminudity; and
1215          (b) may appear or perform in opaque clothing that completely covers the person's
1216     genitals, pubic area, and anus if the covering:
1217          (i) is not less than the following at its widest point:
1218          (A) four inches coverage width in the front of the human body; and
1219          (B) five inches coverage width in the back of the human body;
1220          (ii) does not taper to less than one inch wide at the narrowest point; and
1221          (iii) if covering a female, completely covers the breast below the top of the areola.
1222          Section 12. Section 32B-1-604 is amended to read:
1223          32B-1-604. Requirements for labeling and packaging -- Authority of the
1224     commission and department.
1225          (1) A manufacturer may not distribute or sell a malted beverage:
1226          (a) unless the label and packaging of the malted beverage:
1227          (i) complies with the federal label requirements of 27 C.F.R. Parts 7, 13, and 16; and
1228          (ii) clearly gives notice to the public that the malted beverage is an alcoholic product;
1229     and
1230          (b) until the day on which the department in accordance with this title and rules of the
1231     commission approves the label and packaging of the malted beverage.
1232          (2) The department shall review the label and packaging of a malted beverage to ensure
1233     that the label and packaging meet the requirements of Subsection (1)(a).
1234          (3) A manufacturer may comply with the requirement of Subsection (1)(a)(ii) by

1235     including on a label and packaging for a malted beverage any of the following terms:
1236          (a) beer;
1237          (b) ale;
1238          (c) porter;
1239          (d) stout;
1240          (e) lager;
1241          (f) lager beer; or
1242          (g) another class or type designation commonly applied to a malted beverage that
1243     conveys by a recognized term that the product contains alcohol.
1244          (4) (a) As used in this section, "previously approved malted beverage" means a malted
1245     beverage for which the manufacturer holds approval for the label and packaging under
1246     Subsection (1)(b) on May 9, 2017.
1247          (b) Beginning May 9, 2017, the department shall review the label and packaging of
1248     each previously approved malted beverage for compliance with the provisions of this part.
1249          (c) If, during the review described in Subsection (4)(b), the department determines that
1250     a previously approved malted beverage does not comply with the provisions of this part on or
1251     after May 9, 2017:
1252          (i) the department shall send written notice to the manufacturer that states:
1253          (A) that the manufacturer shall reapply for approval of the label and packaging of the
1254     malted beverage;
1255          (B) an explanation, including each specific reason, the label or packaging of the
1256     manufacturer's previously approved malted beverage does not comply with the provisions of
1257     this part;
1258          (C) how the manufacturer can comply with the provisions of this part; and
1259          (D) the date by which the manufacturer shall submit an application to the department
1260     for approval; and
1261          (ii) the manufacturer shall reapply for approval of the label and packaging of the
1262     malted beverage in accordance with the written notice and the provisions of this part.
1263          (d) (i) A manufacturer, wholesaler, or retailer may distribute or sell a previously
1264     approved malted beverage through April 30, 2018, in accordance with the manufacturer's most
1265     recent approval from the department.

1266          (ii) After April 30, 2018, a manufacturer, wholesaler, or retailer may not distribute or
1267     sell a previously approved malted beverage that does not comply with the provisions of this
1268     part.
1269          (e) The department shall ensure that the department notifies and takes action on each
1270     timely application submitted under this Subsection (4) before January 1, 2018.
1271          Section 13. Section 32B-1-605 is amended to read:
1272          32B-1-605. General procedure for approval.
1273          (1) To obtain approval of the label and packaging of a malted beverage, the
1274     manufacturer of the malted beverage shall submit an application to the department for
1275     approval.
1276          (2) The application described in Subsection (1) shall be on a form approved by the
1277     department and include the following for each brand and label for which the manufacturer
1278     seeks approval:
1279          (a) (i) a copy of a federal certificate of label approval from the United States
1280     Department of Treasury, Alcohol and Tobacco Tax and Trade Bureau[, for each brand and
1281     label for which the manufacturer is seeking approval]; or
1282          (ii) if the Bureau does not require label approval, a copy of formula approval from the
1283     United States Department of Treasury, Alcohol and Tobacco Tax and Trade Bureau;
1284          (b) a complete set of original labels for each size of container of the malted beverage;
1285          (c) a description of the size of the container on which a label will be placed;
1286          (d) a description of each type of container of the malted beverage; and
1287          (e) a description of any packaging for the malted beverage.
1288          (3) The department may assess a reasonable fee for reviewing a label and packaging for
1289     approval.
1290          (4) (a) The department shall notify a manufacturer within 30 days after the day on
1291     which the manufacturer submits an application whether the label and packaging is approved or
1292     denied.
1293          (b) If the department determines that an unusual circumstance requires additional time,
1294     the department may extend the time period described in Subsection (4)(a).
1295          (5) A manufacturer shall obtain the approval of the department of a revision of a
1296     previously approved label and packaging before a malted beverage using the revised label and

1297     packaging may be distributed or sold in this state.
1298          (6) (a) The department may revoke a label and packaging previously approved upon a
1299     finding that the label and packaging is not in compliance with this title or rules of the
1300     commission.
1301          (b) The department shall notify the person who applies for the approval of a label and
1302     packaging at least five business days before the day on which a label and packaging approval is
1303     considered revoked.
1304          (c) After receiving notice under Subsection (6)(b), a manufacturer may present written
1305     argument or evidence to the department on why the revocation should not occur.
1306          (7) A manufacturer that applies for approval of a label and packaging may appeal a
1307     denial or revocation of a label and packaging approval to the commission.
1308          Section 14. Section 32B-1-606 is amended to read:
1309          32B-1-606. Special procedure for certain malted beverages.
1310          [(1) If a flavored malt beverage is labeled or packaged in a manner that is similar to a
1311     label or packaging used for a nonalcoholic beverage,]
1312           (1) Notwithstanding Subsection 32B-1-604(3), a manufacturer of [the flavored malt] a
1313     malted beverage may not distribute or sell the [flavored malt ] malted beverage in this state
1314     until the day on which the manufacturer receives approval of the labeling and packaging from
1315     the department in accordance with this section and Sections 32B-1-604 and 32B-1-605, if the
1316     malted beverage is labeled or packaged in a manner that is :
1317          [(a) Sections 32B-1-604 and 32B-1-605; and]
1318          [(b) this section.]
1319          (a) similar to a label or packaging used for a nonalcoholic beverage; or
1320          (b) likely to confuse or mislead a patron to believe the malted beverage is a
1321     nonalcoholic beverage.
1322          (2) The department may not approve the labeling and packaging of a [flavored malt]
1323     malted beverage described in Subsection (1) unless in addition to the requirements of Section
1324     32B-1-604 the labeling and packaging complies with the following:
1325          (a) the label on the [flavored malt] malted beverage [shall bear] bears a prominently
1326     displayed label or a firmly affixed sticker that provides the following information:
1327          (i) the statement:

1328          (A) "alcoholic beverage"; or
1329          (B) "contains alcohol"; and
1330          (ii) the alcohol content of the [flavored malt] malted beverage[.];
1331          (b) the packaging of [a flavored malt] the malted beverage [shall] prominently
1332     [include] includes, either imprinted on the packaging or imprinted on a sticker firmly affixed to
1333     the packaging, the statement:
1334          (i) "alcoholic beverage"; or
1335          (ii) "contains alcohol"[.];
1336          (c) a statement required by Subsection (2)(a) or (b) [shall appear] appears in a format
1337     required by rule made by the commission[.]; and
1338          (d) a statement of alcohol content required by Subsection (2)(a)(ii):
1339          (i) [shall state] states the alcohol content as a percentage of alcohol by volume or by
1340     weight;
1341          (ii) [may] does not use an abbreviation, but [shall use] uses the complete words
1342     "alcohol," "volume," or "weight"; and
1343          (iii) [shall be] is in a format required by rule made by the commission.
1344          (3) The department may reject a label or packaging that appears designed to obscure
1345     the information required by Subsection (2).
1346          (4) To determine whether a [flavored malt] malted beverage is described in Subsection
1347     (1) and subject to this section, the department may consider in addition to other factors one or
1348     more of the following factors:
1349          (a) whether the coloring, carbonation, and packaging of the [flavored malt] malted
1350     beverage:
1351          (i) is similar to those of a nonalcoholic beverage or product; or
1352          (ii) can be confused with a nonalcoholic beverage;
1353          (b) whether the [flavored malt] malted beverage possesses a character and flavor
1354     distinctive from a traditional malted beverage;
1355          (c) whether the [flavored malt] malted beverage:
1356          (i) is prepackaged;
1357          (ii) contains high levels of caffeine and other additives; and
1358          (iii) is marketed as a beverage that is specifically designed to provide energy;

1359          (d) whether the [flavored malt] malted beverage contains added sweetener or sugar
1360     substitutes; or
1361          (e) whether the [flavored malt] malted beverage contains an added fruit flavor or other
1362     flavor that masks the taste of a traditional malted beverage.
1363          Section 15. Section 32B-2-202 is amended to read:
1364          32B-2-202. Powers and duties of the commission.
1365          (1) The commission shall:
1366          (a) consistent with the policy established by the Legislature by statute, act as a general
1367     policymaking body on the subject of alcoholic product control;
1368          (b) adopt and issue policies, rules, and procedures;
1369          (c) set policy by written rules that establish criteria and procedures for:
1370          (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
1371     permit, or certificate of approval; and
1372          (ii) determining the location of a state store, package agency, or retail licensee;
1373          (d) decide within the limits, and under the conditions imposed by this title, the number
1374     and location of state stores, package agencies, and retail licensees in the state;
1375          (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
1376     permits, or certificates of approval for the purchase, storage, sale, offer for sale, furnishing,
1377     consumption, manufacture, and distribution of an alcoholic product:
1378          (i) a package agency;
1379          (ii) a full-service restaurant license;
1380          (iii) a master full-service restaurant license;
1381          (iv) a limited-service restaurant license;
1382          (v) a master limited-service restaurant license;
1383          (vi) a [club] bar establishment license;
1384          (vii) an airport lounge license;
1385          (viii) an on-premise banquet license;
1386          (ix) a resort license, under which at least four or more sublicenses may be included;
1387          (x) an on-premise beer retailer license;
1388          (xi) a reception center license;
1389          (xii) a beer-only restaurant license;

1390          (xiii) a hotel license, under which at least three or more sublicenses may be included;
1391          (xiv) subject to Subsection (4), a single event permit;
1392          (xv) subject to Subsection (4), a temporary beer event permit;
1393          (xvi) a special use permit;
1394          (xvii) a manufacturing license;
1395          (xviii) a liquor warehousing license;
1396          (xix) a beer wholesaling license; and
1397          (xx) one of the following that holds a certificate of approval:
1398          (A) an out-of-state brewer;
1399          (B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and
1400          (C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages;
1401          (f) in accordance with Section 32B-5-205, issue, deny, suspend, or revoke conditional
1402     licenses for the purchase, storage, sale, furnishing, consumption, manufacture, and distribution
1403     of an alcoholic product;
1404          (g) prescribe the duties of the department in assisting the commission in issuing a
1405     package agency, license, permit, or certificate of approval under this title;
1406          (h) to the extent a fee is not specified in this title, establish a fee allowed under this title
1407     in accordance with Section 63J-1-504;
1408          (i) fix prices at which liquor is sold that are the same at all state stores, package
1409     agencies, and retail licensees;
1410          (j) issue and distribute price lists showing the price to be paid by a purchaser for each
1411     class, variety, or brand of liquor kept for sale by the department;
1412          (k) (i) require the director to follow sound management principles; and
1413          (ii) require periodic reporting from the director to ensure that:
1414          (A) sound management principles are being followed; and
1415          (B) policies established by the commission are being observed;
1416          (l) (i) receive, consider, and act in a timely manner upon the reports, recommendations,
1417     and matters submitted by the director to the commission; and
1418          (ii) do the things necessary to support the department in properly performing the
1419     department's duties;
1420          (m) obtain temporarily and for special purposes the services of an expert or person

1421     engaged in the practice of a profession, or a person who possesses a needed skill if:
1422          (i) considered expedient; and
1423          (ii) approved by the governor;
1424          (n) prescribe the conduct, management, and equipment of premises upon which an
1425     alcoholic product may be stored, sold, offered for sale, furnished, or consumed;
1426          (o) make rules governing the credit terms of beer sales within the state to retail
1427     licensees; and
1428          (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
1429     disciplinary action against a person subject to administrative action.
1430          (2) Consistent with the policy established by the Legislature by statute, the power of
1431     the commission to do the following is plenary, except as otherwise provided by this title, and
1432     not subject to review:
1433          (a) establish a state store;
1434          (b) issue authority to act as a package agent or operate a package agency; and
1435          (c) issue or deny a license, permit, or certificate of approval.
1436          (3) If the commission is authorized or required to make a rule under this title, the
1437     commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
1438     Rulemaking Act.
1439          (4) Notwithstanding Subsections (1)(e)(xiv) and (xv), the director or deputy director
1440     may issue an event permit in accordance with Chapter 9, Event Permit Act.
1441          Section 16. Section 32B-2-210 is amended to read:
1442          32B-2-210. Alcoholic Beverage Control Advisory Board.
1443          (1) There is created within the department an advisory board known as the "Alcoholic
1444     Beverage Control Advisory Board."
1445          (2) The advisory board shall consist of [12 members] eight voting members and one
1446     nonvoting member as follows:
1447          (a) [the following] four voting members appointed by the commission[, a
1448     representative of]:
1449          [(i) a full-service restaurant licensee;]
1450          [(ii) a limited-service restaurant licensee;]
1451          [(iii) a beer-only restaurant licensee;]

1452          [(iv) a social club licensee;]
1453          [(v) a fraternal club licensee;]
1454          [(vi) a dining club licensee;]
1455          [(vii) a wholesaler licensee;]
1456          [(viii) an on-premise banquet licensee;]
1457          [(ix) an on-premise beer retailer licensee; and]
1458          [(x) a reception center licensee;]
1459          (i) one of whom represents the retail alcohol industry;
1460          (ii) one of whom represents the wholesale alcohol industry;
1461          (iii) one of whom represents the alcohol manufacturing industry; and
1462          (iv) one of whom represents the restaurant industry;
1463          (b) two voting members appointed by the commission, each of whom represents an
1464     organization that addresses alcohol or drug abuse prevention, alcohol or drug related
1465     enforcement, or alcohol or drug related education;
1466          (c) the director of the Division of Substance Abuse and Mental Health or the director's
1467     designee who serves as a voting member;
1468          [(b)] (d) the chair of the Utah Substance Use and Mental Health Advisory Council, or
1469     the chair's designee, who serves as a voting member; and
1470          [(c)] (e) the chair of the commission or the chair's designee from the members of the
1471     commission, who [shall serve] serves as a nonvoting member.
1472          (3) (a) Except as required by Subsection (3)(b), as terms of current voting members of
1473     the advisory board expire, the commission shall appoint each new member or reappointed
1474     member to a four-year term beginning July 1 and ending June 30.
1475          (b) Notwithstanding the requirements of Subsection (3)(a), the commission shall, at the
1476     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
1477     voting advisory board members are staggered so that approximately half of the advisory board
1478     is appointed every two years.
1479          (c) No two members of the board may be employed by the same company or nonprofit
1480     organization.
1481          (4) (a) When a vacancy occurs in the membership for any reason, the commission shall
1482     appoint a replacement for the unexpired term.

1483          (b) The commission shall terminate the term of a voting advisory board member who
1484     ceases to be representative as designated by the member's original appointment.
1485          (5) The advisory board shall meet no more than quarterly as called by the chair for the
1486     purpose of advising the commission and the department, with discussion limited to
1487     administrative rules made under this title.
1488          (6) The chair of the commission or the chair's designee shall serve as the chair of the
1489     advisory board and call the necessary meetings.
1490          (7) (a) [Six] Five members of the board constitute a quorum of the board.
1491          (b) An action of the majority when a quorum is present is the action of the board.
1492          (8) The department shall provide staff support to the advisory board.
1493          (9) A member may not receive compensation or benefits for the member's service, but
1494     may receive per diem and travel expenses in accordance with:
1495          (a) Section 63A-3-106;
1496          (b) Section 63A-3-107; and
1497          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
1498     63A-3-107.
1499          Section 17. Section 32B-2-304 is amended to read:
1500          32B-2-304. Liquor price -- School lunch program -- Remittance of markup.
1501          (1) For purposes of this section:
1502          (a) (i) "Landed case cost" means:
1503          (A) the cost of the product; and
1504          (B) inbound shipping costs incurred by the department.
1505          (ii) "Landed case cost" does not include the outbound shipping cost from a warehouse
1506     of the department to a state store.
1507          (b) "Proof gallon" [has] means the same [meaning as] as that term is defined in 26
1508     U.S.C. Sec. 5002.
1509          (c) Notwithstanding Section 32B-1-102, "small brewer" means a brewer who
1510     manufactures in a calendar year less than 40,000 barrels of beer, heavy beer, and flavored malt
1511     beverage.
1512          (2) Except as provided in Subsection (3):
1513          (a) spirituous liquor sold by the department within the state shall be marked up in an

1514     amount not less than [86%] 88% above the landed case cost to the department;
1515          (b) wine sold by the department within the state shall be marked up in an amount not
1516     less than [86%] 88% above the landed case cost to the department;
1517          (c) heavy beer sold by the department within the state shall be marked up in an amount
1518     not less than [64.5%] 66.5% above the landed case cost to the department; and
1519          (d) a flavored malt beverage sold by the department within the state shall be marked up
1520     in an amount not less than [86%] 88% above the landed case cost to the department.
1521          (3) (a) Liquor sold by the department to a military installation in Utah shall be marked
1522     up in an amount not less than [15%] 17% above the landed case cost to the department.
1523          (b) Except for spirituous liquor sold by the department to a military installation in
1524     Utah, spirituous liquor that is sold by the department within the state shall be marked up [47%]
1525     49% above the landed case cost to the department if:
1526          (i) the spirituous liquor is manufactured by a manufacturer producing less than 30,000
1527     proof gallons of spirituous liquor in a calendar year; and
1528          (ii) the manufacturer applies to the department for a reduced markup.
1529          (c) Except for wine sold by the department to a military installation in Utah, wine that
1530     is sold by the department within the state shall be marked up [47%] 49% above the landed case
1531     cost to the department if:
1532          (i) the wine is manufactured by a manufacturer producing less than 20,000 gallons of
1533     wine in a calendar year; and
1534          (ii) the manufacturer applies to the department for a reduced markup.
1535          (d) Except for heavy beer sold by the department to a military installation in Utah,
1536     heavy beer that is sold by the department within the state shall be marked up [30%] 32% above
1537     the landed case cost to the department if:
1538          (i) a small brewer manufactures the heavy beer; and
1539          (ii) the small brewer applies to the department for a reduced markup.
1540          (e) The department shall verify an amount described in Subsection (3)(b), (c), or (d)
1541     pursuant to a federal or other verifiable production report.
1542          (4) The department shall deposit 10% of the total gross revenue from sales of liquor
1543     with the state treasurer to be credited to the Uniform School Fund and used to support the
1544     school lunch program administered by the State Board of Education under Section

1545     53A-19-201.
1546          (5) This section does not prohibit the department from selling discontinued items at a
1547     discount.
1548          (6) (a) The department shall collect the markup and remit the markup collected by the
1549     department under this section:
1550          (i) to the State Tax Commission monthly on or before the last day of the month
1551     immediately following the last day of the previous month; and
1552          (ii) using a form prescribed by the State Tax Commission.
1553          (b) For liquor provided to a package agency on consignment, the department shall
1554     remit the markup to the State Tax Commission for the month during which the liquor is
1555     provided to the package agency regardless of when the package agency pays the department for
1556     the liquor provided to the package agency.
1557          (c) The State Tax Commission shall deposit revenues remitted to it under Subsection
1558     (6)(a) into the Markup Holding Fund created in Section 32B-2-301.
1559          (d) The assessment, collection, and refund of a markup under this section shall be in
1560     accordance with Title 59, Chapter 1, Part 14, Assessment, Collections, and Refunds Act.
1561          (e) The department, if it fails to comply with this Subsection (6), is subject to penalties
1562     as provided in Section 59-1-401 and interest as provided in Section 59-1-402.
1563          (f) The State Tax Commission may make rules, in accordance with Title 63G, Chapter
1564     3, Utah Administrative Rulemaking Act, to establish procedures under this Subsection (6).
1565          Section 18. Section 32B-2-306 is amended to read:
1566          32B-2-306. Underage drinking prevention media and education campaign --
1567     School-based underage drinking prevention program .
1568          (1) As used in this section:
1569          (a) "Advisory council" means the Utah Substance Abuse Advisory Council created in
1570     Section 63M-7-301.
1571          (b) "Grade 10 school-based underage drinking prevention program" means a
1572     school-based underage drinking prevention program that also increases awareness of the
1573     dangers of driving under the influence of alcohol.
1574          (c) "LEA" means the same as that term is defined in Section 53A-1-401.
1575          [(b)] (d) "Restricted account" means the Underage Drinking Prevention Media and

1576     Education Campaign Restricted Account created in this section.
1577          (e) "School-based underage drinking prevention program" means an evidence-based
1578     program intended for students aged 13 and older that:
1579          (i) is aimed at preventing underage consumption of alcoholic product;
1580          (ii) is delivered by methods that engage students in storytelling and visualization;
1581          (iii) addresses the behavioral risk factors associated with underage drinking; and
1582          (iv) provides practical tools to address the dangers of underage drinking.
1583          (2) (a) There is created a restricted account within the General Fund known as the
1584     "Underage Drinking Prevention Media and Education Campaign Restricted Account."
1585          (b) The restricted account consists of:
1586          (i) deposits made under Subsection (3); and
1587          (ii) interest earned on the restricted account.
1588          (3) The department shall deposit 0.6% of the total gross revenue from sales of liquor
1589     with the state treasurer, as determined by the total gross revenue collected for the fiscal year
1590     two years preceding the fiscal year for which the deposit is made, to be credited to the
1591     restricted account and to be used by the department as provided in Subsection (5).
1592          (4) The advisory council shall:
1593          (a) provide ongoing oversight of a media and education campaign funded under this
1594     section;
1595          (b) create an underage drinking prevention workgroup consistent with guidelines
1596     proposed by the advisory council related to the membership and duties of the underage
1597     drinking prevention workgroup;
1598          (c) create guidelines for how money appropriated for a media and education campaign
1599     can be used;
1600          (d) include in the guidelines established pursuant to this Subsection (4) that a media
1601     and education campaign funded under this section is carefully researched and developed, and
1602     appropriate for target groups; and
1603          (e) approve plans submitted by the department in accordance with Subsection (5).
1604          (5) (a) Subject to appropriation from the Legislature, the department shall expend
1605     money from the restricted account to direct and fund one or more media and education
1606     campaigns designed to reduce underage drinking in cooperation with the advisory council.

1607          (b) The department shall:
1608          (i) in cooperation with the underage drinking prevention workgroup created under
1609     Subsection (4), prepare and submit a plan to the advisory council detailing the intended use of
1610     the money appropriated under this section;
1611          (ii) upon approval of the plan by the advisory council, conduct the media and education
1612     campaign in accordance with the guidelines made by the advisory council; and
1613          (iii) submit to the advisory council annually by no later than October 1, a written report
1614     detailing the use of the money for the media and education campaigns conducted under this
1615     Subsection (5) and the impact and results of the use of the money during the prior fiscal year
1616     ending June 30.
1617          (6) (a) The department shall develop or, in accordance with Title 63G, Chapter 6a,
1618     Utah Procurement Code, the department shall contract with, a person to provide a school-based
1619     underage drinking prevention program and a grade 10 school-based underage drinking
1620     prevention program.
1621          (b) Each year, the department or the contracted provider shall present:
1622          (i) the school-based underage drinking prevention program to students in grade eight at
1623     each LEA; and
1624          (ii) the grade 10 school-based underage drinking prevention program to students in
1625     grade 10 at each LEA.
1626          Section 19. Section 32B-3-102 is amended to read:
1627          32B-3-102. Definitions.
1628          As used in this chapter[, "final]:
1629          (1) "Aggravating circumstances" means:
1630          (a) prior warnings about compliance problems;
1631          (b) a prior violation history;
1632          (c) a lack of written policies governing employee conduct;
1633          (d) multiple violations during the course of an investigation;
1634          (e) efforts to conceal a violation;
1635          (f) an intentional violation;
1636          (g) the violation involved more than one patron or employee; or
1637          (h) a violation that results in injury or death.

1638          (2) "Final adjudication" means an adjudication for which a final judgment or order is
1639     issued that:
1640          [(1)] (a) is not appealed, and the time to appeal the judgment has expired; or
1641          [(2)] (b) is appealed, and is affirmed, in whole or in part, on appeal.
1642          (3) "Mitigating circumstances" means:
1643          (a) no prior violation history for the licensee or permittee;
1644          (b) no prior violation history for the individual who committed the violation; or
1645          (c) extraordinary cooperation with the investigation of the violation that demonstrates
1646     that the licensee or permittee and the individual who committed the violation accept
1647     responsibility for the violation.
1648          Section 20. Section 32B-3-205 is amended to read:
1649          32B-3-205. Penalties.
1650          (1) If the commission is satisfied that a person subject to administrative action violates
1651     this title or the commission's rules, in accordance with Title 63G, Chapter 4, Administrative
1652     Procedures Act, the commission may:
1653          (a) suspend or revoke the person's license, permit, or certificate of approval;
1654          (b) subject to Subsection (2), impose a fine against the person, including individual
1655     staff of a licensee, permittee, or certificate holder;
1656          (c) assess the administrative costs of a disciplinary proceeding to the person if the
1657     person is a licensee, permittee, or certificate holder; or
1658          (d) take a combination of actions described in this Subsection (1).
1659          (2) (a) A fine imposed may not exceed $25,000 in the aggregate for:
1660          (i) a single notice of agency action; or
1661          (ii) a single action against a package agency.
1662          (b) The commission shall by rule establish a schedule setting forth a range of fines for
1663     each violation.
1664          (c) When a presiding officer imposes a fine, the presiding officer shall consider any
1665     aggravating circumstances or mitigating circumstances in deciding where within the applicable
1666     range to set the fine.
1667          (3) The commission shall transfer the costs assessed under this section into the General
1668     Fund in accordance with Section 32B-2-301.

1669          (4) (a) If a license or permit is suspended under this section, the licensee or permittee
1670     shall prominently display a sign provided by the department:
1671          (i) during the suspension; and
1672          (ii) at the entrance of the premises of the licensee or permittee.
1673          (b) The sign required by this Subsection (4) shall:
1674          (i) read "The Utah Alcoholic Beverage Control Commission has suspended the
1675     alcoholic product license or permit of this establishment. An alcoholic product may not be
1676     sold, offered for sale, furnished, or consumed on these premises during the period of
1677     suspension."; and
1678          (ii) include the dates of the suspension period.
1679          (c) A licensee or permittee may not remove, alter, obscure, or destroy a sign required to
1680     be displayed under this Subsection (4) during the suspension period.
1681          (5) (a) If a license or permit is revoked, the commission may order the revocation of a
1682     bond posted by the licensee or permittee under this title.
1683          (b) Notwithstanding Subsection (5)(a), the department may make a claim against a
1684     bond posted by a licensee or permittee for money owed the department under this title without
1685     the commission first revoking the license or permit.
1686          (6) A licensee or permittee whose license or permit is revoked may not reapply for a
1687     license or permit under this title for three years from the date on which the license or permit is
1688     revoked.
1689          (7) If a staff member of a licensee, permittee, or certificate holder is found to have
1690     violated this title, in addition to imposing another penalty authorized by this title, the
1691     commission may prohibit the staff member from handling, selling, furnishing, distributing,
1692     manufacturing, wholesaling, or warehousing an alcoholic product in the course of acting as
1693     staff with a licensee, permittee, or certificate holder under this title for a period determined by
1694     the commission.
1695          (8) (a) If the commission makes the finding described in Subsection (8)(b), in addition
1696     to other penalties prescribed by this title, the commission may order:
1697          (i) the removal of an alcoholic product of the manufacturer's, supplier's, or importer's
1698     from the department's sales list; and
1699          (ii) a suspension of the department's purchase of an alcoholic product described in

1700     Subsection (8)(a)(i) for a period determined by the commission.
1701          (b) The commission may take the action described in Subsection (8)(a) if:
1702          (i) a manufacturer, supplier, or importer of liquor or its staff or representative violates
1703     this title; and
1704          (ii) the manufacturer, supplier, or importer:
1705          (A) directly commits the violation; or
1706          (B) solicits, requests, commands, encourages, or intentionally aids another to engage in
1707     the violation.
1708          (9) If the commission makes a finding that the brewer holding a certificate of approval
1709     violates this title or rules of the commission, the commission may take an action against the
1710     brewer holding a certificate of approval that the commission could take against a licensee
1711     including:
1712          (a) suspension or revocation of the certificate of approval; and
1713          (b) imposition of a fine.
1714          (10) Notwithstanding the other provisions of this title, the commission may not order a
1715     disciplinary action or fine in accordance with this section if the disciplinary action or fine is
1716     ordered on the basis of a violation:
1717          (a) of a provision in this title related to intoxication or becoming intoxicated; and
1718          (b) if the violation is first investigated by a law enforcement officer, as defined in
1719     Section 53-13-103, who has not received training regarding the requirements of this title
1720     related to responsible alcoholic product sale or service.
1721          Section 21. Section 32B-4-410 is amended to read:
1722          32B-4-410. Unlawful admittance or attempt to gain admittance by minor.
1723          (1) It is unlawful for a minor to gain admittance or attempt to gain admittance to the
1724     premises of:
1725          (a) a tavern; or
1726          (b) a [social club] bar licensee, except to the extent authorized by Section 32B-6-406.1.
1727          (2) A minor who violates this section is guilty of a class C misdemeanor.
1728          (3) (a) If a minor is found by a court to have violated this section and the violation is
1729     the minor's first violation of this section, the court may:
1730          (i) order the minor to complete a screening as defined in Section 41-6a-501;

1731          (ii) order the minor to complete an assessment as defined in Section 41-6a-501 if the
1732     screening indicates an assessment to be appropriate; and
1733          (iii) order the minor to complete an educational series as defined in Section 41-6a-501
1734     or substance abuse treatment as indicated by an assessment.
1735          (b) If a minor is found by a court to have violated this section and the violation is the
1736     minor's second or subsequent violation of this section, the court shall:
1737          (i) order the minor to complete a screening as defined in Section 41-6a-501;
1738          (ii) order the minor to complete an assessment as defined in Section 41-6a-501 if the
1739     screening indicates an assessment to be appropriate; and
1740          (iii) order the minor to complete an educational series as defined in Section 41-6a-501
1741     or substance abuse treatment as indicated by an assessment.
1742          (4) (a) When a minor who is at least 18 years old, but younger than 21 years old, is
1743     found by a court to have violated this section, except as provided in Section 32B-4-411, the
1744     court hearing the case shall suspend the minor's driving privileges under Section 53-3-219.
1745          (b) Notwithstanding the provision in Subsection (4)(a), the court may reduce the
1746     suspension period required under Section 53-3-219 if:
1747          (i) the violation is the minor's first violation of this section; and
1748          (ii) (A) the minor completes an educational series as defined in Section 41-6a-501; or
1749          (B) the minor demonstrates substantial progress in substance abuse treatment.
1750          (c) Notwithstanding the requirement in Subsection (4)(a) and in accordance with the
1751     requirements of Section 53-3-219, the court may reduce the suspension period required under
1752     Section 53-3-219 if:
1753          (i) the violation is the minor's second or subsequent violation of this section;
1754          (ii) the minor has completed an educational series as defined in Section 41-6a-501 or
1755     demonstrated substantial progress in substance abuse treatment; and
1756          (iii) (A) the person is 18 years of age or older and provides a sworn statement to the
1757     court that the person has not unlawfully consumed alcohol or drugs for at least a one-year
1758     consecutive period during the suspension period imposed under Subsection (4)(a); or
1759          (B) the person is under 18 years of age and has the person's parent or legal guardian
1760     provide an affidavit or sworn statement to the court certifying that to the parent or legal
1761     guardian's knowledge the person has not unlawfully consumed alcohol or drugs for at least a

1762     one-year consecutive period during the suspension period imposed under Subsection (4)(a).
1763          (5) When a minor who is at least 13 years old, but younger than 18 years old, is found
1764     by a court to have violated this section, Section 78A-6-606 applies to the violation.
1765          (6) When a court issues an order suspending a person's driving privileges for a
1766     violation of this section, the Driver License Division shall suspend the person's license under
1767     Section 53-3-219.
1768          (7) When the Department of Public Safety receives the arrest or conviction record of a
1769     person for a driving offense committed while the person's license is suspended pursuant to this
1770     section, the Department of Public Safety shall extend the suspension for an additional like
1771     period of time.
1772          Section 22. Section 32B-4-415 is amended to read:
1773          32B-4-415. Unlawful bringing onto premises for consumption.
1774          (1) Except as provided in Subsection (4), a person may not bring an alcoholic product
1775     for on-premise consumption onto the premises of:
1776          (a) a retail licensee or person required to be licensed under this title as a retail licensee;
1777          (b) an establishment that conducts a business similar to a retail licensee;
1778          (c) an event where an alcoholic product is sold, offered for sale, or furnished under a
1779     single event permit or temporary beer event permit issued under this title;
1780          (d) an establishment open to the general public; or
1781          (e) the capitol hill complex.
1782          (2) Except as provided in Subsection (4), the following may not allow a person to bring
1783     onto its premises an alcoholic product for on-premise consumption or allow consumption of an
1784     alcoholic product brought onto its premises in violation of this section:
1785          (a) a retail licensee or a person required to be licensed under this title as a retail
1786     licensee;
1787          (b) an establishment that conducts a business similar to a retail licensee;
1788          (c) a single event permittee or temporary beer event permittee;
1789          (d) an establishment open to the general public;
1790          (e) the State Capitol Preservation Board created in Section 63C-9-201; or
1791          (f) staff of a person listed in Subsections (2)(a) through (e).
1792          (3) Except as provided in Subsection (4)(c)(i)(A), a person may not consume an

1793     alcoholic product in a limousine or chartered bus if the limousine or chartered bus drops off a
1794     passenger at:
1795          (a) a location from which the passenger departs in a private vehicle; or
1796          (b) the capitol hill complex.
1797          (4) (a) A person may bring bottled wine onto the premises of the following and
1798     consume the wine pursuant to Section 32B-5-307:
1799          (i) a full-service restaurant licensee;
1800          (ii) a limited restaurant licensee;
1801          (iii) a [club] bar establishment licensee; or
1802          (iv) a person operating under a resort spa sublicense.
1803          (b) A passenger of a limousine may bring onto, possess, and consume an alcoholic
1804     product in the limousine if:
1805          (i) the travel of the limousine begins and ends at:
1806          (A) the residence of the passenger;
1807          (B) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
1808          (C) the temporary domicile of the passenger;
1809          (ii) the driver of the limousine is separated from the passengers by partition or other
1810     means approved by the department; and
1811          (iii) the limousine is not located on the capitol hill complex.
1812          (c) A passenger of a chartered bus may bring onto, possess, and consume an alcoholic
1813     product on the chartered bus:
1814          (i) (A) but may consume only during travel to a specified destination of the chartered
1815     bus and not during travel back to the place where the travel begins; or
1816          (B) if the travel of the chartered bus begins and ends at:
1817          (I) the residence of the passenger;
1818          (II) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
1819          (III) the temporary domicile of the passenger;
1820          (ii) if the chartered bus has a nondrinking designee other than the driver traveling on
1821     the chartered bus to monitor consumption; and
1822          (iii) if the chartered bus is not located on the capitol hill complex.
1823          (5) A person may bring onto any premises, possess, and consume an alcoholic product

1824     at a private event.
1825          (6) Notwithstanding Subsection (5), private and public facilities may prohibit the
1826     possession or consumption of alcohol on their premises.
1827          (7) The restrictions of Subsections (2) and (3) apply to a resort licensee or hotel
1828     licensee or person operating under a sublicense in relationship to:
1829          (a) the boundary of a resort building or boundary of a hotel in an area that is open to
1830     the public; or
1831          (b) except as provided in Subsection (4), a sublicense premises.
1832          Section 23. Section 32B-4-501 is amended to read:
1833          32B-4-501. Operating without a license or permit.
1834          (1) A person may not operate the following businesses without first obtaining a license
1835     under this title if the business allows a person to purchase or consume an alcoholic product on
1836     the premises of the business:
1837          (a) a restaurant;
1838          (b) an airport lounge;
1839          (c) a business operated in the same manner as a [club] bar establishment licensee;
1840          (d) a resort;
1841          (e) a business operated to sell, offer for sale, or furnish beer for on-premise
1842     consumption;
1843          (f) a business operated as an on-premise banquet licensee;
1844          (g) a hotel; or
1845          (h) a business similar to one listed in Subsections (1)(a) through (g).
1846          (2) A person conducting an event that is open to the general public may not directly or
1847     indirectly sell, offer for sale, or furnish an alcoholic product to a person attending the event
1848     without first obtaining an event permit under this title.
1849          (3) A person conducting a private event may not directly or indirectly sell or offer for
1850     sale an alcoholic product to a person attending the private event without first obtaining an
1851     event permit under this title.
1852          (4) A person may not operate the following businesses in this state without first
1853     obtaining a license under this title:
1854          (a) a winery manufacturer;

1855          (b) a distillery manufacturer;
1856          (c) a brewery manufacturer;
1857          (d) a local industry representative of:
1858          (i) a manufacturer of an alcoholic product;
1859          (ii) a supplier of an alcoholic product; or
1860          (iii) an importer of an alcoholic product;
1861          (e) a liquor warehouser; or
1862          (f) a beer wholesaler.
1863          (5) A person may not operate a public conveyance in this state without first obtaining a
1864     public service permit under this title if that public conveyance allows a person to purchase or
1865     consume an alcoholic product:
1866          (a) on the public conveyance; or
1867          (b) on the premises of a hospitality room located within a depot, terminal, or similar
1868     facility at which a service is provided to a patron of the public conveyance.
1869          Section 24. Section 32B-5-201 is amended to read:
1870          32B-5-201. Application requirements for retail license.
1871          (1) (a) Before a person may store, sell, offer for sale, furnish, or permit consumption of
1872     an alcoholic product on licensed premises as a retail licensee, the person shall first obtain a
1873     retail license issued by the commission, notwithstanding whether the person holds a local
1874     license or a permit issued by a local authority.
1875          (b) Violation of this Subsection (1) is a class B misdemeanor.
1876          (2) To obtain a retail license under this title, a person shall submit to the department:
1877          (a) a written application in a form prescribed by the department;
1878          (b) a nonrefundable application fee in the amount specified in the relevant part under
1879     Chapter 6, Specific Retail License Act, for the type of retail license for which the person is
1880     applying;
1881          (c) an initial license fee:
1882          (i) in the amount specified in the relevant part under Chapter 6, Specific Retail License
1883     Act, for the type of retail license for which the person is applying; and
1884          (ii) that is refundable if a retail license is not issued;
1885          (d) written consent of the local authority;

1886          (e) a copy of the person's current business license;
1887          (f) evidence of proximity to any community location, with proximity requirements
1888     being governed by Section 32B-1-202;
1889          (g) a bond as specified by Section 32B-5-204;
1890          (h) a floor plan, and boundary map where applicable, of the premises of the retail
1891     license, including any:
1892          (i) consumption area; and
1893          (ii) area where the person proposes to store, sell, offer for sale, or furnish an alcoholic
1894     beverage;
1895          (i) evidence that the retail licensee is carrying public liability insurance in an amount
1896     and form satisfactory to the department;
1897          (j) evidence that the retail licensee is carrying dramshop insurance coverage of at least
1898     $1,000,000 per occurrence and $2,000,000 in the aggregate;
1899          (k) a signed consent form stating that the retail licensee will permit any authorized
1900     representative of the commission, department, or any law enforcement officer to have
1901     unrestricted right to enter the premises of the retail licensee;
1902          (l) if the person is an entity, proper verification evidencing that a person who signs the
1903     application is authorized to sign on behalf of the entity; [and]
1904          (m) a responsible alcohol service plan; and
1905          [(m)] (n) any other information the commission or department may require.
1906          (3) The commission may not issue a retail license to a person who:
1907          (a) is disqualified under Section 32B-1-304; or
1908          (b) is not lawfully present in the United States.
1909          (4) Unless otherwise provided in the relevant part under Chapter 6, Specific Retail
1910     License Act, the commission may not issue a retail license to a person if the licensed premises
1911     does not meet the proximity requirements of Section 32B-1-202.
1912          Section 25. Section 32B-5-202 is amended to read:
1913          32B-5-202. Renewal requirements.
1914          (1) A retail license expires each year on the day specified in the relevant part under
1915     Chapter 6, Specific Retail License Act, for that type of retail license.
1916          (2) To renew a person's retail license, a retail licensee shall, by no later than the day

1917     specified in the relevant part under Chapter 6, Specific Retail License Act, for the type of retail
1918     license that is being renewed, submit:
1919          (a) a completed renewal application that includes a responsible alcohol service plan to
1920     the department in a form prescribed by the department; and
1921          (b) a renewal fee in the amount specified in the relevant part under Chapter 6, Specific
1922     Retail License Act, for the type of retail license that is being renewed.
1923          (3) Failure to meet the renewal requirements results in an automatic forfeiture of the
1924     retail license effective on the date the existing retail license expires.
1925          Section 26. Section 32B-5-207 is enacted to read:
1926          32B-5-207. Multiple retail licenses on same premises.
1927          (1) (a) (i) The commission may not issue and one or more licensees may not hold more
1928     than one type of retail license for the same room.
1929          (ii) The commission may define "room" by rule made in accordance with Title 63G,
1930     Chapter 3, Utah Administrative Rulemaking Act.
1931          (b) Notwithstanding Subsection (1)(a), the commission may issue and one or more
1932     licensees may hold more than one type of retail license for the same room if:
1933          (i) the applicant or licensee satisfies the requirements for each retail license;
1934          (ii) the types of retail licenses issued or held are two or more of the following:
1935          (A) a restaurant license;
1936          (B) an on-premise beer retailer license that is not a tavern; and
1937          (C) an on-premise banquet license or a reception center license; and
1938          (iii) the retail licenses do not operate at the same time on the same day.
1939          (2) When one or more licensees hold more than one type of retail license for the same
1940     room under Subsection (1)(b), the one or more licensees shall post in a conspicuous location at
1941     the entrance of the room a sign that:
1942          (a) measures 8-1/2 inches by 11 inches; and
1943          (b) states whether the premises is currently operating as:
1944          (i) a restaurant;
1945          (ii) an on-premise beer retailer that is not a tavern; or
1946          (iii) a banquet or a reception center.
1947          (3) (a) If, on May 9, 2017, one or more licensees hold more than one type of retail

1948     license for the same room in violation of Subsection (1), the one or more licensees may operate
1949     under the different types of retail licenses through June 30, 2018.
1950          (b) A licensee may not operate in violation of Subsection (1) on or after July 1, 2018.
1951          (c) Before July 1, 2018, each licensee described in Subsection (3)(a) shall notify the
1952     commission of each retail license that the licensee will surrender effective July 1, 2018, to
1953     comply with the provisions of Subsection (1).
1954          (d) The commission shall establish by rule, made in accordance with Title 63G,
1955     Chapter 3, Utah Administrative Rulemaking Act, a procedure by which a licensee surrenders a
1956     retail license under this Subsection (3).
1957          Section 27. Section 32B-5-307 is amended to read:
1958          32B-5-307. Bringing alcoholic product onto or removing alcoholic product from
1959     premises.
1960          (1) Except as provided in Subsection (3):
1961          (a) A person may not bring onto the licensed premises of a retail licensee an alcoholic
1962     product for on-premise consumption.
1963          (b) A retail licensee may not allow a person to:
1964          (i) bring onto licensed premises an alcoholic product for on-premise consumption; or
1965          (ii) consume an alcoholic product brought onto the licensed premises by a person other
1966     than the retail licensee.
1967          (c) A retail licensee may not sell, offer for sale, or furnish an alcoholic product through
1968     a window or door to a location off the licensed premises or to a vehicular traffic area.
1969          (2) Except as provided in Subsection (3):
1970          (a) A person may not carry from a licensed premises of a retail licensee an open
1971     container that:
1972          (i) is used primarily for drinking purposes; and
1973          (ii) contains an alcoholic product.
1974          (b) A retail licensee may not permit a patron to carry from the licensed premises an
1975     open container described in Subsection (2)(a).
1976          (c) Except as provided in Subsection (3)(d) or Subsection 32B-4-415(5):
1977          (i) a person may not carry from a licensed premises of a retail licensee a sealed
1978     container of [liquor] an alcoholic beverage that has been purchased from the retail licensee; and

1979          (ii) a retail licensee may not permit a patron to carry from the licensed premises a
1980     sealed container of [liquor] an alcoholic beverage that has been purchased from the retail
1981     licensee.
1982          (3) (a) A patron may bring a bottled wine onto the premises of a retail licensee for
1983     on-premise consumption if:
1984          (i) permitted by the retail licensee; and
1985          (ii) the retail licensee is authorized to sell, offer for sale, or furnish wine.
1986          (b) If a patron carries bottled wine onto the licensed premises of a retail licensee, the
1987     patron shall deliver the bottled wine to a server or other representative of the retail licensee
1988     upon entering the licensed premises.
1989          (c) A retail licensee authorized to sell, offer for sale, or furnish wine, may provide a
1990     wine service for a bottled wine carried onto the licensed premises in accordance with this
1991     Subsection (3) or a bottled wine purchased at the licensed premises.
1992          (d) A patron may remove from a licensed premises the unconsumed contents of a bottle
1993     of wine purchased [in] at the licensed premises, or brought onto the licensed premises in
1994     accordance with this Subsection (3), only if before removal the bottle is recorked or recapped.
1995          Section 28. Section 32B-5-402 is amended to read:
1996          32B-5-402. Definitions.
1997          [Reserved]
1998          As used in this part:
1999          (1) "Off-premise retail manager" means an individual who:
2000          (a) manages operations at a premises that is licensed under Chapter 7, Off-Premise
2001     Beer Retailer Act; or
2002          (b) supervises the sale of beer at a premises that is licensed under Chapter 7,
2003     Off-Premise Beer Retailer Act.
2004          (2) (a) "Off-premise retail staff" means an individual who sells beer at a premises that
2005     is licensed under Chapter 7, Off-Premise Beer Retailer Act.
2006          (b) "Off-premise retail staff" does not include an off-premise retail manager.
2007          (3) "Retail manager" means an individual who:
2008          (a) manages operations at a premises that is licensed under this chapter; or
2009          (b) supervises the furnishing of an alcoholic product at a premises that is licensed

2010     under this chapter.
2011          (4) (a) "Retail staff" means an individual who serves an alcoholic product at a premises
2012     licensed under this chapter.
2013          (b) "Retail staff" does not include a retail manager.
2014          Section 29. Section 32B-5-403 is amended to read:
2015          32B-5-403. Alcohol training and education -- Revocation, suspension, or
2016     nonrenewal of retail license.
2017          (1) The commission may suspend, revoke, or not renew a license of a retail licensee if
2018     any of the following individuals[, as defined in Section 62A-15-401,] fail to complete an
2019     alcohol training and education seminar:
2020          [(a) an individual who manages operations at the licensed premises for consumption on
2021     the licensed premises;]
2022          [(b) an individual who supervises the furnishing of an alcoholic product to a patron for
2023     consumption on the licensed premises; or]
2024          [(c) an individual who serves an alcoholic product to a patron for consumption on the
2025     licensed premises.]
2026          (a) a retail manager; or
2027          (b) retail staff.
2028          (2) A city, town, metro township, or county in which a retail licensee conducts [its]
2029     business may suspend, revoke, or not renew the business license of the retail licensee if [an
2030     individual described in Subsection (1)] a retail manager or retail staff fails to complete an
2031     alcohol training and education seminar.
2032          (3) A local authority that issues an off-premise beer retailer license to a business that is
2033     engaged in the retail sale of beer for consumption off the beer retailer's premises may
2034     immediately suspend the off-premise beer retailer license if any of the following individuals
2035     fails to complete an alcohol training and education seminar[, an individual who]:
2036          [(a) directly supervises the sale of beer to a patron for consumption off the premises of
2037     the off-premise beer retailer; or]
2038          [(b) sells beer to a patron for consumption off the premises of the off-premise beer
2039     retailer.]
2040          (a) an off-premise retail manager; or

2041          (b) off-premise retail staff.
2042          Section 30. Section 32B-5-404 is amended to read:
2043          32B-5-404. Alcohol training and education for off-premise consumption.
2044          (1) (a) A local authority that issues an off-premise beer retailer license to a business to
2045     sell beer at retail for off-premise consumption shall require the following to have a valid record
2046     that the individual completed an alcohol training and education seminar in the time periods
2047     required by Subsection (1)(b)[, an individual who]:
2048          [(i) directly supervises the sale of beer to a patron for consumption off the premises of
2049     the off-premise beer retailer; or]
2050          [(ii) sells beer to a patron for consumption off the premises of the off-premise beer
2051     retailer.]
2052          (i) an off-premise retail manager; or
2053          (ii) off-premise retail staff.
2054          (b) If an individual on the date the individual becomes staff to an off-premise beer
2055     retailer does not have a valid record that the individual has completed an alcohol training and
2056     education seminar for purposes of this part, the individual shall complete an alcohol training
2057     and education seminar within 30 days of the day on which the individual becomes staff of an
2058     off-premise beer retailer.
2059          (c) Section 62A-15-401 governs the validity of a record that an individual has
2060     completed an alcohol training and education seminar required by this part.
2061          (2) In accordance with Section 32B-5-403, a local authority may immediately suspend
2062     the license of an off-premise beer retailer that allows [staff to directly supervise the sale of beer
2063     or to sell beer to a patron] an individual to work as an off-premise retail manager without
2064     having a valid record that the individual completed an alcohol training and education seminar
2065     in accordance with Subsection (1).
2066          Section 31. Section 32B-5-405 is enacted to read:
2067          32B-5-405. Department training programs.
2068          (1) No later than January 1, 2018, the department shall develop the following training
2069     programs that are provided either in-person or online:
2070          (a) a training program for retail managers and retail owners that addresses:
2071          (i) the statutes and rules that govern alcohol sales and consumption in the state;

2072          (ii) the requirements for operating as a retail licensee;
2073          (iii) using compliance assistance from the department; and
2074          (iv) any other topic the department determines beneficial to a retail manager or retail
2075     owner; and
2076          (b) a training program for an individual employed by a retail licensee or an off-premise
2077     beer retailer who violates a provision of this title related to the sale, service, or furnishing of an
2078     alcoholic beverage to an intoxicated individual or a minor, that addresses:
2079          (i) the statutes and rules that govern the most common types of violations under this
2080     title;
2081          (ii) how to avoid common violations; and
2082          (iii) any other topic the department determines beneficial to the training program.
2083          (2) No later than January 1, 2019, the department shall develop a training program for
2084     off-premise retail managers that is provided either in-person or online and addresses:
2085          (a) the statutes and rules that govern sales at an off-premise beer retailer;
2086          (b) the requirements for operating an off-premise beer retailer;
2087          (c) using compliance assistance from the department; and
2088          (d) any other topic the department determines beneficial to an off-premise retail
2089     manager.
2090          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
2091     the provisions of this section, the department shall make rules to develop and implement the
2092     training programs described in this section, including rules that establish:
2093          (a) the requirements for each training program described in this section;
2094          (b) measures that accurately identify each individual who takes and completes a
2095     training program;
2096          (c) measures that ensure an individual taking a training program is focused and actively
2097     engaged in the training material throughout the training program;
2098          (d) a record that certifies that an individual has completed a training program; and
2099          (e) a fee for participation in a training program to cover the department's cost of
2100     providing the training program.
2101          (4) (a) Except as provided in Subsection (5), each retail manager shall:
2102          (i) complete the training described in Subsection (1)(a) no later than the earlier of:

2103          (A) 30 days after the day on which the retail manager is hired; or
2104          (B) before the day on which the retail licensee obtains a retail license under this
2105     chapter; and
2106          (ii) retake the training program described in Subsection (1)(a) once every three years.
2107          (b) Except as provided in Subsection (5), each off-premise retail manager shall:
2108          (i) complete the training described in Subsection (2) no later than the earlier of:
2109          (A) 30 days after the day on which the off-premise retail manager is hired; or
2110          (B) before the day on which the off-premise beer retailer obtains an off-premise beer
2111     retailer state license; and
2112          (ii) retake the training program described in Subsection (2) once every three years.
2113          (c) (i) If the commission finds that an individual employed by a retail licensee violated
2114     a provision of this title related to the sale, service, or furnishing of an alcoholic beverage to an
2115     intoxicated individual or a minor for a second time while employed by the same retail licensee,
2116     the violator, all retail staff, and each retail manager shall complete the training program
2117     described in Subsection (1)(b).
2118          (ii) If the commission finds that an individual employed by an off-premise beer retailer
2119     violated a provision of this title related to the sale, service, or furnishing of an alcoholic
2120     beverage to an intoxicated individual or a minor for a second time while employed by the same
2121     off-premise beer retailer, the violator and each off-premise retail manager shall complete the
2122     training program described in Subsection (1)(b).
2123          (5) (a) For a person who holds a retail license on January 1, 2018, each retail manager
2124     shall complete the training program described in Subsection (1)(a) for the first time before the
2125     day on which the licensee renews the licensee's license in 2018.
2126          (b) For a person who holds an off-premise beer retailer state license on January 1,
2127     2019, each off-premise retail manager shall complete the training described in Subsection (2)
2128     for the first time before the day on which the licensee renews the licensee's off-premise beer
2129     retailer state license in 2019.
2130          (6) If an individual fails to complete a required training program under this section:
2131          (a) the commission may suspend, revoke, or not renew the retail license or off-premise
2132     beer retailer state license;
2133          (b) a city, town, metro township, or county in which the retail licensee or off-premise

2134     beer retailer is located may suspend, revoke, or not renew the retail licensee's or off-premise
2135     beer retailer's business license; or
2136          (c) a local authority may suspend, revoke, or not renew the off-premise beer retailer's
2137     license.
2138          Section 32. Section 32B-5-406 is enacted to read:
2139          32B-5-406. Tracking certain enforcement actions.
2140          (1) For each violation of a provision of this title involving the sale of an alcoholic
2141     product to a minor that staff of a retail licensee commits, the commission shall:
2142          (a) maintain a record of the violation until the record is expunged in accordance with
2143     Subsection (3);
2144          (b) include in the record described in Subsection (1)(a):
2145          (i) the name of the individual who committed the violation;
2146          (ii) the name of the retail licensee; and
2147          (iii) the date of the adjudication of the violation; and
2148          (c) provide the information described in Subsection (1)(b) to the Department of Public
2149     Safety within 30 days after the day on which the violation is adjudicated.
2150          (2) (a) The Department of Public Safety shall development and operate a system to
2151     collect, analyze, maintain, track, and disseminate the information that the Department of Public
2152     Safety receives in accordance with Subsection (1).
2153          (b) The Department of Public Safety shall make the system described in Subsection
2154     (2)(a) available to:
2155          (i) assist the commission in assessing penalties under this title; and
2156          (ii) inform a retail licensee of an individual who has a violation history in the system.
2157          (3) The commission and the Department of Public Safety shall expunge each record in
2158     the system described in Subsection (2) that relates to an individual if the individual does not
2159     violate a provision of this title related to the sale of an alcoholic product to a minor for a period
2160     of 36 consecutive months from the day on which the individual was last found to have violated
2161     a provision of this title related to the sale of an alcoholic product to a minor.
2162          Section 33. Section 32B-6-202 is amended to read:
2163          32B-6-202. Definitions.
2164          As used in this part:

2165          (1) (a) "Dining area" means an area in the licensed premises of a full-service restaurant
2166     licensee that is primarily used for the service and consumption of food by one or more patrons.
2167          (b) "Dining area" does not include a dispensing area.
2168          (2) (a) "Dispensing area" means an area in the licensed premises of a full-service
2169     restaurant licensee where a dispensing structure is located and that:
2170          (i) is physically separated from the dining area and any waiting area by a structure or
2171     other barrier that prevents a patron seated in the dining area or a waiting area from viewing the
2172     dispensing of alcoholic product;
2173          (ii) except as provided in Subsection (2)(b), measures at least 10 feet from any area
2174     where alcoholic product is dispensed to the dining area and any waiting area, measured from
2175     the point of the area where alcoholic product is dispensed that is closest to the dining area or
2176     waiting area; or
2177          (iii) is physically separated from the dining area and any waiting area by a permanent
2178     physical structure that measures:
2179          (A) at least 42 inches high; and
2180          (B) at least 72 inches from the outer edge of the barrier to the nearest edge of the
2181     dispensing structure.
2182          (b) "Dispensing area" does not include any area described in Subsection (2)(a)(ii) that
2183     is less than 10 feet from an area where alcoholic product is dispensed, but from which a patron
2184     seated at a table or counter cannot view the dispensing of alcoholic product.
2185          [(1)] (3) (a) "Grandfathered bar structure" means a bar structure in a licensed premises
2186     of a full-service restaurant licensee that:
2187          (i) as of May 11, 2009, has:
2188          (A) patron seating at the bar structure;
2189          (B) a partition at one or more locations on the bar structure that is along:
2190          (I) the width of the bar structure; or
2191          (II) the length of the bar structure; and
2192          (C) facilities for the dispensing or storage of an alcoholic product:
2193          (I) on the portion of the bar structure that is separated by the partition described in
2194     Subsection [(1)] (3)(a)(i)(B); or
2195          (II) if the partition as described in Subsection [(1)] (3)(a)(i)(B)(II) is adjacent to the bar

2196     structure in a manner visible to a patron sitting at the bar structure;
2197          (ii) is not operational as of May 12, 2009, if:
2198          (A) a person applying for a full-service restaurant license:
2199          (I) has as of May 12, 2009, a building permit to construct the restaurant;
2200          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
2201     defined by rule made by the commission; and
2202          (III) is issued the full-service restaurant license by no later than December 31, 2009;
2203     and
2204          (B) once constructed, the licensed premises has a bar structure described in Subsection
2205     [(1)] (3)(a)(i);
2206          (iii) as of May 12, 2009, has no patron seating at the bar structure; or
2207          (iv) is not operational as of May 12, 2009, if:
2208          (A) a person applying for a full-service restaurant license:
2209          (I) has as of May 12, 2009, a building permit to construct the restaurant;
2210          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
2211     defined by rule made by the commission; and
2212          (III) is issued a full-service restaurant license by no later than December 31, 2009; and
2213          (B) once constructed, the licensed premises has a bar structure with no patron seating.
2214          (b) "Grandfathered bar structure" does not include a grandfathered bar structure
2215     described in Subsection [(1)] (3)(a) on or after the day on which a restaurant remodels the
2216     grandfathered bar structure, as defined by rule made by the commission.
2217          (c) Subject to Subsection [(1)] (3)(b), a grandfathered bar structure remains a
2218     grandfathered bar structure notwithstanding whether a restaurant undergoes a change of
2219     ownership.
2220          [(2)] (4) "Seating grandfathered bar structure" means:
2221          (a) a grandfathered bar structure described in Subsection [(1)] (3)(a)(i) or (ii); or
2222          (b) a bar structure grandfathered under Section 32B-6-409.
2223          (5) "Waiting area" includes a lobby.
2224          Section 34. Section 32B-6-204 is amended to read:
2225          32B-6-204. Specific licensing requirements for full-service restaurant license.
2226          (1) To obtain a full-service restaurant license a person shall comply with Chapter 5,

2227     Part 2, Retail Licensing Process.
2228          (2) (a) A full-service restaurant license expires on October 31 of each year.
2229          (b) To renew a person's full-service restaurant license, a person shall comply with the
2230     renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
2231     September 30.
2232          (3) (a) The nonrefundable application fee for a full-service restaurant license is $330.
2233          (b) The initial license fee for a full-service restaurant license is $2,200.
2234          (c) The renewal fee for a full-service restaurant license is [in the following amount:]
2235     $1,650.
2236      [Gross Cost of Liquor in Previous License Year for the LicenseeRenewal Fee
2237      under $5,000$935
2238      equals or exceeds $5,000 but less than $10,000$1,155
2239      equals or exceeds $10,000 but less than $25,000$1,650
2240      equals or exceeds $25,000$1,925]
2241          (4) The bond amount required for a full-service restaurant license is the penal sum of
2242     $10,000.
2243          Section 35. Section 32B-6-205 is amended to read:
2244          32B-6-205. Specific operational requirements for a full-service restaurant license
2245     -- Before July 1, 2018 or July 1, 2022.
2246          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2247     Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
2248     shall comply with this section.
2249          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2250     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2251          (i) a full-service restaurant licensee;
2252          (ii) individual staff of a full-service restaurant licensee; or
2253          (iii) both a full-service restaurant licensee and staff of the full-service restaurant
2254     licensee.
2255          (2) In addition to complying with Subsection 32B-5-301(3), a full-service restaurant
2256     licensee shall display in a prominent place in the restaurant a list of the types and brand names

2257     of liquor being furnished through the full-service restaurant licensee's calibrated metered
2258     dispensing system.
2259          (3) In addition to complying with Section 32B-5-303, a full-service restaurant licensee
2260     shall store an alcoholic product in a storage area described in Subsection (12)(a).
2261          (4) (a) An individual who serves an alcoholic product in a full-service restaurant
2262     licensee's premises shall make a written beverage tab for each table or group that orders or
2263     consumes an alcoholic product on the premises.
2264          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
2265     alcoholic product ordered or consumed.
2266          (5) A person's willingness to serve an alcoholic product may not be made a condition
2267     of employment as a server with a full-service restaurant licensee.
2268          (6) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish liquor at
2269     the licensed premises on any day during the period that:
2270          (i) begins at midnight; and
2271          (ii) ends at 11:29 a.m.
2272          (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer during the
2273     hours specified in Part 7, On-Premise Beer Retailer License, for an on-premise beer retailer,
2274     except that a full-service restaurant licensee may not sell, offer for sale, or furnish beer before
2275     11:30 a.m. on any day.
2276          (7) A full-service restaurant licensee shall maintain at least 70% of its total restaurant
2277     business from the sale of food, which does not include:
2278          (a) mix for an alcoholic product; or
2279          (b) a service charge.
2280          (8) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
2281     alcoholic product except after the full-service restaurant licensee confirms that the patron has
2282     the intent to order food prepared, sold, and furnished at the licensed premises.
2283          (b) A full-service restaurant licensee shall maintain on the licensed premises adequate
2284     culinary facilities for food preparation and dining accommodations.
2285          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
2286     more than two alcoholic products of any kind at a time before the patron.
2287          (b) A patron may not have more than one spirituous liquor drink at a time before the

2288     patron.
2289          (c) An individual portion of wine is considered to be one alcoholic product under
2290     Subsection (9)(a).
2291          (10) A patron may consume an alcoholic product only :
2292          (a) at:
2293          (i) the patron's table;
2294          (ii) a counter; or
2295          (iii) a seating grandfathered bar structure ; and
2296          (b) where food is served.
2297          (11) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
2298     alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
2299     structure that is not a seating grandfathered bar structure.
2300          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
2301     may:
2302          (i) sit;
2303          (ii) be furnished an alcoholic product; and
2304          (iii) consume an alcoholic product.
2305          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
2306     full-service restaurant licensee may not permit a minor to, and a minor may not:
2307          (i) sit; or
2308          (ii) consume food or beverages.
2309          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is
2310     employed by a full-service restaurant licensee:
2311          (A) as provided in Subsection 32B-5-308(2); or
2312          (B) to perform maintenance and cleaning services during an hour when the full-service
2313     restaurant licensee is not open for business.
2314          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
2315     remaining or sitting at the bar structure en route to an area of a full-service restaurant licensee's
2316     premises in which the minor is permitted to be.
2317          (12) Except as provided in Subsection 32B-5-307(3), a full-service restaurant licensee
2318     may dispense an alcoholic product only if:

2319          (a) the alcoholic product is dispensed from:
2320          (i) a grandfathered bar structure;
2321          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
2322     the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
2323     12, 2009; or
2324          (iii) an area that is:
2325          (A) separated from an area for the consumption of food by a patron by a solid,
2326     translucent, permanent structural barrier such that the facilities for the storage or dispensing of
2327     an alcoholic product are:
2328          (I) not readily visible to a patron; and
2329          (II) not accessible by a patron; and
2330          (B) apart from an area used:
2331          (I) for dining;
2332          (II) for staging; or
2333          (III) as a lobby or waiting area;
2334          (b) the full-service restaurant licensee uses an alcoholic product that is:
2335          (i) stored in an area described in Subsection (12)(a); or
2336          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
2337          (A) immediately before the alcoholic product is dispensed it is in an unopened
2338     container; (B) the unopened container is taken to an area described in Subsection (12)(a) before
2339     it is opened; and (C) once opened, the container is stored in an area described in Subsection
2340     (12)(a); and
2341          (c) any instrument or equipment used to dispense alcoholic product is located in an
2342     area described in Subsection (12)(a).
2343          (13) A full-service restaurant licensee may state in a food or alcoholic product menu a
2344     charge or fee made in connection with the sale, service, or consumption of liquor including:
2345          (a) a set-up charge;
2346          (b) a service charge; or
2347          (c) a chilling fee.
2348          (14) Beginning on July 1, 2018, a minor may not sit, remain, or consume food or
2349     beverages within 10 feet of a grandfathered bar structure, unless:

2350          (a) seating within 10 feet of the grandfathered bar structure is the only seating available
2351     in the licensed premises; and
2352          (b) the minor is accompanied by an individual who is 21 years of age or older.
2353          (15) Except as provided in Subsection 32B-6-205.2(18) and Section 32B-6-205.3, the
2354     provisions of this section apply before July 1, 2018.
2355          Section 36. Section 32B-6-205.2 is enacted to read:
2356          32B-6-205.2. Specific operational requirements for a full-service restaurant
2357     license -- On and after July 1, 2018 or July 1, 2022.
2358          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2359     Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
2360     shall comply with this section.
2361          (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in
2362     accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2363          (i) a full-service restaurant licensee;
2364          (ii) individual staff of a full-service restaurant licensee; or
2365          (iii) both a full-service restaurant licensee and staff of the full-service restaurant
2366     licensee.
2367          (2) In addition to complying with Subsection 32B-5-301(3), a full-service restaurant
2368     licensee shall display in a conspicuous place at the entrance to the licensed premises a sign
2369     approved by the commission that:
2370          (a) measures at least 8-1/2 inches long and 11 inches wide; and
2371          (b) clearly states that the full-service restaurant licensee is a restaurant and not a bar.
2372          (3) In addition to complying with Section 32B-5-303, a full-service restaurant licensee
2373     shall store an alcoholic product in a storage area described in Subsection (13)(a).
2374          (4) (a) An individual who serves an alcoholic product in a full-service restaurant
2375     licensee's premises shall make a beverage tab for each table or group that orders or consumes
2376     an alcoholic product on the premises.
2377          (b) A beverage tab described in this Subsection (4) shall state the type and amount of
2378     each alcoholic product ordered or consumed.
2379          (5) A full-service restaurant licensee may not make an individual's willingness to serve
2380     an alcoholic product a condition of employment with a full-service restaurant licensee.

2381          (6) (a) A full-service restaurant licensee may sell, offer for sale, or furnish liquor at the
2382     licensed premises during the following time periods only:
2383          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
2384          (ii) on a weekend or a state or federal legal holiday, during the period that begins at
2385     10:30 a.m. and ends at 11:59 p.m.
2386          (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer at the
2387     licensed premises during the following time periods only:
2388          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
2389          (ii) on a weekend or a state or federal legal holiday, during the period that begins at
2390     10:30 a.m. and ends at 12:59 a.m.
2391          (7) A full-service restaurant licensee shall maintain at least 70% of the full-service
2392     restaurant licensee's total restaurant business from the sale of food, which does not include:
2393          (a) mix for an alcoholic product; or
2394          (b) a service charge.
2395          (8) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
2396     alcoholic product except after:
2397          (i) the patron to whom the full-service restaurant licensee sells, offers for sale, or
2398     furnishes the alcoholic product is seated at:
2399          (A) a table that is located in a dining area or a dispensing area;
2400          (B) a counter that is located in a dining area or a dispensing area; or
2401          (C) a dispensing structure that is located in a dispensing area; and
2402          (ii) the full-service restaurant licensee confirms that the patron intents to:
2403          (A) order food prepared, sold, and furnished at the licensed premises; and
2404          (B) except as provided in Subsection (8)(b), consume the food at the same location
2405     where the patron is seated and sold, offered for sale, or furnished the alcoholic product.
2406          (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
2407     full-service restaurant licensee, the full-service restaurant licensee may sell, offer for sale, or
2408     furnish to the patron one drink that contains a single portion of an alcoholic product as
2409     described in Section 32B-5-304 if:
2410          (A) the patron is seated at a table, counter, or dispensing structure located in a
2411     dispensing area; and

2412          (B) the full-service restaurant licensee first confirms that after the patron is seated in
2413     the dining area, the patron intends to order food prepared, sold, and furnished at the licensed
2414     premises.
2415          (ii) If the patron does not finish the patron's drink before moving to a seat in the dining
2416     area, an employee of the full-service restaurant licensee who is qualified to sell and serve an
2417     alcoholic product under Section 32B-5-306 shall transport any unfinished portion of the
2418     patron's drink to the patron's seat in the dining area.
2419          (iii) For purposes of Subsection (8)(b)(i) a single portion of wine is 5 ounces or less.
2420          (c) A full-service restaurant licensee shall maintain on the licensed premises adequate
2421     culinary facilities for food preparation and dining accommodations.
2422          (9) A patron may consume an alcoholic product only if the patron is seated at:
2423          (a) a table that is located in a dining area or dispensing area;
2424          (b) a counter that is located in a dining area or dispensing area; or
2425          (c) a dispensing structure located in a dispensing area.
2426          (10) (a) Subject to the other provisions of this Subsection (10), a patron may not have
2427     more than two alcoholic products of any kind at a time before the patron.
2428          (b) A patron may not have more than one spirituous liquor drink at a time before the
2429     patron.
2430          (c) An individual portion of wine is considered to be one alcoholic product under
2431     Subsection (10)(a).
2432          (11) In accordance with the provisions of this section, an individual who is at least 21
2433     years of age may consume food and beverages in a dispensing area.
2434          (12) (a) Except as provided in Subsection (12)(b), a minor may not sit, remain, or
2435     consume food or beverages in a dispensing area.
2436          (b) (i) A minor may be in a dispensing area if the minor is employed by the full-service
2437     restaurant licensee:
2438          (A) in accordance with Subsection 32B-5-308(2); or
2439          (B) to perform maintenance and cleaning services when the full-service restaurant
2440     licensee is not open for business.
2441          (ii) If there is no alternative route available, a minor may momentarily pass through a
2442     dispensing area without remaining or sitting in the dispensing area en route to an area of the

2443     full-service restaurant licensee's premises in which the minor is permitted to be.
2444          (13) Except as provided in Subsection 32B-5-307(3), a full-service restaurant licensee
2445     may dispense an alcoholic product only if:
2446          (a) the alcoholic product is dispensed from:
2447          (i) a dispensing structure that is located in a dispensing area; or
2448          (ii) an area that is:
2449          (A) separated from an area for the consumption of food by a patron by a solid,
2450     translucent, permanent structural barrier such that the facilities for the storage or dispensing of
2451     an alcoholic product are not readily visible to a patron and not accessible by a patron; and
2452          (B) apart from an area used for dining, for staging, or as a lobby or waiting area;
2453          (b) the full-service restaurant licensee uses an alcoholic product that is stored in an area
2454     described in Subsection (13)(a) or in accordance with Section 32B-5-303; and
2455          (c) any instrument or equipment used to dispense alcoholic product is located in an
2456     area described in Subsection (13)(a).
2457          (14) (a) A full-service restaurant licensee may have more than one dispensing area in
2458     the licensed premises.
2459          (b) Each dispensing area in a licensed premises may satisfy the requirements for a
2460     dispensing area under Subsection 32B-6-202(2)(a)(i), (ii), or (iii), regardless of how any other
2461     dispensing area in the licensed premises satisfies the requirements for a dispensing area.
2462          (15) A full-service restaurant licensee may not:
2463          (a) transfer, dispense, or serve an alcoholic product on or from a movable cart; or
2464          (b) display an alcoholic product or a product intended to appear like an alcoholic
2465     product by moving a cart or similar device around the licensed premises.
2466          (16) A full-service restaurant licensee may state in a food or alcoholic product menu a
2467     charge or fee made in connection with the sale, service, or consumption of liquor, including:
2468          (a) a set-up charge;
2469          (b) a service charge; or
2470          (c) a chilling fee.
2471          (17) (a) In addition to the requirements described in Section 32B-5-302, a full-service
2472     restaurant licensee shall maintain each of the following records for at least three years:
2473          (i) a record required by Section 32B-5-302; and

2474          (ii) a record that the commission requires a full-service licensee to use or maintain
2475     under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
2476     Act.
2477          (b) The department shall audit the records of a full-service restaurant licensee at least
2478     once each calendar year.
2479          (18) (a) In accordance with Section 32B-6-205.3, a full-service restaurant licensee:
2480          (i) may comply with the provisions of this section beginning on or after July 1, 2017;
2481     and
2482          (ii) shall comply with the provisions of this section:
2483          (A) for a full-service restaurant licensee that does not have a grandfathered bar
2484     structure, on and after July 1, 2018; or
2485          (B) for a full-service restaurant licensee that has a grandfathered bar structure, on and
2486     after July 1, 2022.
2487          (b) A full-service restaurant licensee that elects to comply with the provisions of this
2488     section before the latest applicable date described in Subsection (18)(a)(ii):
2489          (i) shall comply with each provision of this section; and
2490          (ii) is not required to comply with the provisions of Section 32B-6-205.
2491          Section 37. Section 32B-6-205.3 is enacted to read:
2492          32B-6-205.3. Transition process for full-service restaurant licensees.
2493          (1) For a full-service restaurant license issued on or after July 1, 2017, the full-service
2494     restaurant licensee shall comply with the provisions of Section 32B-6-205.2.
2495          (2) For a full-service restaurant license issued before July 1, 2017, before the
2496     full-service restaurant licensee changes the full-service restaurant licensee's approved location
2497     for storage, dispensing, or consumption to comply with the provisions of Section 32B-6-205.2,
2498     the full-service restaurant licensee shall submit an application for approval to the department in
2499     accordance with Subsection 32B-5-303(3).
2500          (3) (a) Except as provided in Subsection (4), a person who holds a full-service
2501     restaurant license issued before July 1, 2017, shall comply with the provisions of Section
2502     32B-6-205.2 on or before July 1, 2018.
2503          (b) A full-service restaurant licensee described in Subsection (3)(a) that cannot comply
2504     with the provisions of Section 32B-6-205.2 without a change to the full-service restaurant

2505     licensee's approved location for storage, dispensing, or consumption:
2506          (i) may submit an application for approval described in Subsection (2) on or after May
2507     9, 2017; and
2508          (ii) shall submit an application for approval described in Subsection (2) on or before
2509     May 1, 2018.
2510          (c) If a full-service restaurant licensee described in Subsection (3)(a) submits an
2511     application for approval described in Subsection (2) on May 9, 2017, the department shall take
2512     action on the application on or before July 1, 2017.
2513          (4) (a) A person who holds a full-service restaurant license issued before July 1, 2017,
2514     and has a grandfathered bar structure shall comply with the provisions of Section 32B-6-205.2
2515     on or before the earlier of:
2516          (i) July 1, 2022;
2517          (ii) the date on which the full-service restaurant licensee remodels, as defined by
2518     commission rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2519     Rulemaking Act, the full-service restaurant licensee's grandfathered bar structure or dining
2520     area; or
2521          (iii) the date on which the full-service restaurant licensee experiences a change of
2522     ownership described in Subsection 32B-8a-202(1).
2523          (b) A full-service restaurant licensee described in Subsection (4)(a) that cannot comply
2524     with the provisions of Section 32B-6-205.2 without a change to the full-service restaurant
2525     licensee's approved location for storage, dispensing, or consumption:
2526          (i) may submit an application for approval described in Subsection (2) on or after May
2527     9, 2017; and
2528          (ii) shall submit an application for approval described in Subsection (2) on or before
2529     May 1, 2022.
2530          Section 38. Section 32B-6-302 is amended to read:
2531          32B-6-302. Definitions.
2532          As used in this part:
2533          (1) (a) "Dining area" means an area in the licensed premises of a limited-service
2534     restaurant licensee that is primarily used for the service and consumption of food by one or
2535     more patrons.

2536          (b) "Dining area" does not include a dispensing area.
2537          (2) (a) "Dispensing area" means an area in the licensed premises of a limited-service
2538     restaurant licensee where a dispensing structure is located and that:
2539          (i) is physically separated from the dining area and any waiting area by a structure or
2540     other barrier that prevents a patron seated in the dining area or a waiting area from viewing the
2541     dispensing of alcoholic product;
2542          (ii) except as provided in Subsection (2)(b), measures at least 10 feet from any area
2543     where alcoholic product is dispensed to the dining area and any waiting area, measured from
2544     the point of the area where alcoholic product is dispensed that is closest to the dining area or
2545     waiting area; or
2546          (iii) is physically separated from the dining area and any waiting area by a permanent
2547     physical structure that measures:
2548          (A) at least 42 inches high; and
2549          (B) at least 72 inches from the outer edge of the barrier to the nearest edge of the
2550     dispensing structure.
2551          (b) "Dispensing area" does not include any area described in Subsection (2)(a)(ii) that
2552     is less than 10 feet from an area where alcoholic product is dispensed, but from which a patron
2553     seated at a table or counter cannot view the dispensing of alcoholic product.
2554          [(1)] (3) (a) "Grandfathered bar structure" means a bar structure in a licensed premises
2555     of a limited-service restaurant licensee that:
2556          (i) as of May 11, 2009, has:
2557          (A) patron seating at the bar structure;
2558          (B) a partition at one or more locations on the bar structure that is along:
2559          (I) the width of the bar structure; or
2560          (II) the length of the bar structure; and
2561          (C) facilities for the dispensing or storage of an alcoholic product:
2562          (I) on the portion of the bar structure that is separated by the partition described in
2563     Subsection [(1)] (3)(a)(i)(B); or
2564          (II) if the partition as described in Subsection [(1)] (3)(a)(i)(B)(II) is adjacent to the bar
2565     structure in a manner visible to a patron sitting at the bar structure;
2566          (ii) is not operational as of May 12, 2009, if:

2567          (A) a person applying for a limited-service restaurant license:
2568          (I) has as of May 12, 2009, a building permit to construct the restaurant;
2569          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
2570     defined by rule made by the commission; and
2571          (III) is issued the limited-service restaurant license by no later than December 31,
2572     2009; and
2573          (B) once constructed, the licensed premises has a bar structure described in Subsection
2574     [(1)] (3)(a)(i);
2575          (iii) as of May 12, 2009, has no patron seating at the bar structure; or
2576          (iv) is not operational as of May 12, 2009, if:
2577          (A) a person applying for a limited-service restaurant license:
2578          (I) has as of May 12, 2009, a building permit to construct the restaurant;
2579          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
2580     defined by rule made by the commission; and
2581          (III) is issued a limited-service restaurant license by no later than December 31, 2009;
2582     and
2583          (B) once constructed, the licensed premises has a bar structure with no patron seating.
2584          (b) "Grandfathered bar structure" does not include a grandfathered bar structure
2585     described in Subsection [(1)] (3)(a) on or after the day on which a restaurant remodels the
2586     grandfathered bar structure, as defined by rule made by the commission.
2587          (c) Subject to Subsection [(1)] (3)(b), a grandfathered bar structure remains a
2588     grandfathered bar structure notwithstanding whether a restaurant undergoes a change of
2589     ownership.
2590          [(2)] (4) "Seating grandfathered bar structure" means:
2591          (a) a grandfathered bar structure described in Subsection [(1)] (3)(a)(i) or (ii); or
2592          (b) a bar structure grandfathered under Section 32B-6-409.
2593          (5) "Waiting area" includes a lobby.
2594          [(3)] (6) "Wine" includes an alcoholic beverage defined as wine under 27 U.S.C. Sec.
2595     211 and 27 C.F.R. Sec. 4.10, including the following alcoholic beverages made in the manner
2596     of wine containing not less than 7% and not more than 24% of alcohol by volume:
2597          (a) sparkling and carbonated wine;

2598          (b) wine made from condensed grape must;
2599          (c) wine made from other agricultural products than the juice of sound, ripe grapes;
2600          (d) imitation wine;
2601          (e) compounds sold as wine;
2602          (f) vermouth;
2603          (g) cider;
2604          (h) perry; and
2605          (i) sake.
2606          Section 39. Section 32B-6-305 is amended to read:
2607          32B-6-305. Specific operational requirements for a limited-service restaurant
2608     license -- Before July 1, 2018 or July 1, 2022.
2609          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2610     Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
2611     licensee shall comply with this section.
2612          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2613     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2614          (i) a limited-service restaurant licensee;
2615          (ii) individual staff of a limited-service restaurant licensee; or
2616          (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
2617     licensee.
2618          (2) (a) A limited-service restaurant licensee on the licensed premises may not sell, offer
2619     for sale, furnish, or allow consumption of:
2620          (i) spirituous liquor; or
2621          (ii) a flavored malt beverage.
2622          (b) A product listed in Subsection (2)(a) may not be on the premises of a
2623     limited-service restaurant licensee except for use:
2624          (i) as a flavoring on a dessert; and
2625          (ii) in the preparation of a flaming food dish, drink, or dessert.
2626          (3) In addition to complying with Section 32B-5-303, a limited-service restaurant
2627     licensee shall store an alcoholic product in a storage area described in Subsection (12)(a).
2628          (4) (a) An individual who serves an alcoholic product in a limited-service restaurant

2629     licensee's premises shall make a written beverage tab for each table or group that orders or
2630     consumes an alcoholic product on the premises.
2631          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
2632     alcoholic product ordered or consumed.
2633          (5) A person's willingness to serve an alcoholic product may not be made a condition
2634     of employment as a server with a limited-service restaurant licensee.
2635          (6) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish wine
2636     or heavy beer at the licensed premises on any day during the period that:
2637          (i) begins at midnight; and
2638          (ii) ends at 11:29 a.m.
2639          (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer during
2640     the hours specified in Part 7, On-Premise Beer Retailer License, for an on-premise beer retailer,
2641     except that a limited-service restaurant licensee may not sell, offer for sale, or furnish beer
2642     before 11:30 a.m. on any day.
2643          (7) A limited-service restaurant licensee shall maintain at least 70% of its total
2644     restaurant business from the sale of food, which does not include a service charge.
2645          (8) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
2646     alcoholic product except after the limited-service restaurant licensee confirms that the patron
2647     has the intent to order food prepared, sold, and furnished at the licensed premises.
2648          (b) A limited-service restaurant licensee shall maintain on the licensed premises
2649     adequate culinary facilities for food preparation and dining accommodations.
2650          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
2651     more than two alcoholic products of any kind at a time before the patron.
2652          (b) An individual portion of wine is considered to be one alcoholic product under
2653     Subsection (9)(a).
2654          (10) A patron may consume an alcoholic product only:
2655          (a) at:
2656          (i) the patron's table;
2657          (ii) a counter; or
2658          (iii) a seating grandfathered bar structure; and
2659          (b) where food is served.

2660          (11) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
2661     alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
2662     structure that is not a seating grandfathered bar structure.
2663          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
2664     may:
2665          (i) sit;
2666          (ii) be furnished an alcoholic product; and
2667          (iii) consume an alcoholic product.
2668          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
2669     limited-service restaurant licensee may not permit a minor to, and a minor may not:
2670          (i) sit; or
2671          (ii) consume food or beverages.
2672          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is
2673     employed by a limited-service restaurant licensee:
2674          (A) as provided in Subsection 32B-5-308(2); or
2675          (B) to perform maintenance and cleaning services during an hour when the
2676     limited-service restaurant licensee is not open for business.
2677          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
2678     remaining or sitting at the bar structure en route to an area of a limited-service restaurant
2679     licensee's premises in which the minor is permitted to be.
2680          (12) Except as provided in Subsection 32B-5-307(3), a limited-service restaurant
2681     licensee may dispense an alcoholic product only if: (a) the alcoholic product is dispensed from:
2682          (i) a grandfathered bar structure;
2683          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
2684     the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
2685     12, 2009; or
2686          (iii) an area that is:
2687          (A) separated from an area for the consumption of food by a patron by a solid,
2688     translucent, permanent structural barrier such that the facilities for the storage or dispensing of
2689     an alcoholic product are:
2690          (I) not readily visible to a patron; and

2691          (II) not accessible by a patron; and
2692          (B) apart from an area used:
2693          (I) for dining;
2694          (II) for staging; or
2695          (III) as a lobby or waiting area;
2696          (b) the limited-service restaurant licensee uses an alcoholic product that is:
2697          (i) stored in an area described in Subsection (12)(a); or
2698          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
2699          (A) immediately before the alcoholic product is dispensed it is in an unopened
2700     container;
2701          (B) the unopened container is taken to an area described in Subsection (12)(a) before it
2702     is opened; and
2703          (C) once opened, the container is stored in an area described in Subsection (12)(a); and
2704          (c) any instrument or equipment used to dispense alcoholic product is located in an
2705     area described in Subsection (12)(a).
2706          (13) A limited-service restaurant licensee may state in a food or alcoholic product
2707     menu a charge or fee made in connection with the sale, service, or consumption of wine or
2708     heavy beer including:
2709          (a) a set-up charge;
2710          (b) a service charge; or
2711          (c) a chilling fee.
2712          (14) Beginning on July 1, 2018, a minor may not sit, remain, or consume food or
2713     beverages within 10 feet of a grandfathered bar structure, unless:
2714          (a) seating within 10 feet of the grandfathered bar structure is the only seating available
2715     in the licensed premises; and
2716          (b) the minor is accompanied by an individual who is 21 years of age or older.
2717          (15) Except as provided in Subsection 32B-6-305.2(18) and Section 32B-6-305.3, the
2718     provisions of this section apply before July 1, 2018.
2719          Section 40. Section 32B-6-305.2 is enacted to read:
2720          32B-6-305.2. Specific operational requirements for a limited-service restaurant
2721     license -- On and after July 1, 2018 or July 1, 2022.

2722          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2723     Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
2724     licensee shall comply with this section.
2725          (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in
2726     accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2727          (i) a limited-service restaurant licensee;
2728          (ii) individual staff of a limited-service restaurant licensee; or
2729          (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
2730     licensee.
2731          (2) In addition to complying with Subsection 32B-5-301(3), a limited-service
2732     restaurant licensee shall display in a conspicuous place at the entrance to the licensed premises
2733     a sign approved by the commission that:
2734          (a) measures at least 8-1/2 inches long and 11 inches wide; and
2735          (b) clearly states that the limited-service restaurant licensee is a restaurant and not a
2736     bar.
2737          (3) In addition to complying with Section 32B-5-303, a limited-service restaurant
2738     licensee shall store an alcoholic product in a storage area described in Subsection (13)(a).
2739          (4) (a) An individual who serves an alcoholic product in a limited-service restaurant
2740     licensee's premises shall make a beverage tab for each table or group that orders or consumes
2741     an alcoholic product on the premises.
2742          (b) A beverage tab described in this Subsection (4) shall state the type and amount of
2743     each alcoholic product ordered or consumed.
2744          (5) A limited-service restaurant licensee may not make an individual's willingness to
2745     serve an alcoholic product a condition of employment with a limited-service restaurant
2746     licensee.
2747          (6) (a) A limited-service restaurant licensee may sell, offer for sale, or furnish wine or
2748     heavy beer at the licensed premises during the following time periods only:
2749          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
2750          (ii) on a weekend or a state or federal legal holiday, during the period that begins at
2751     10:30 a.m. and ends at 11:59 p.m.
2752          (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer at the

2753     licensed premises during the following time periods only:
2754          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
2755          (ii) on a weekend or a state or federal legal holiday, during the period that begins at
2756     10:30 a.m. and ends at 12:59 a.m.
2757          (7) A limited-service restaurant licensee shall maintain at least 70% of the
2758     limited-service restaurant licensee's total restaurant business from the sale of food, which does
2759     not include a service charge.
2760          (8) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
2761     alcoholic product except after:
2762          (i) the patron to whom the limited-service restaurant licensee sells, offers for sale, or
2763     furnishes the alcoholic product is seated at:
2764          (A) a table that is located in a dining area or a dispensing area;
2765          (B) a counter that is located in a dining area or a dispensing area; or
2766          (C) a dispensing structure that is located in a dispensing area; and
2767          (ii) the limited-service restaurant licensee confirms that the patron intents to:
2768          (A) order food prepared, sold, and furnished at the licensed premises; and
2769          (B) except as provided in Subsection (8)(b), consume the food at the same location
2770     where the patron is seated and sold, offered for sale, or furnished the alcoholic product.
2771          (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
2772     limited-service restaurant licensee, the limited-service restaurant licensee may sell, offer for
2773     sale, or furnish to the patron one drink that contains a single portion of an alcoholic product as
2774     described in Section 32B-5-304 if:
2775          (A) the patron is seated at a table, counter, or dispensing structure located in a
2776     dispensing area; and
2777          (B) the limited-service restaurant licensee first confirms that after the patron is seated
2778     in the dining area, the patron intends to order food prepared, sold, and furnished at the licensed
2779     premises.
2780          (ii) If the patron does not finish the patron's drink before moving to a seat in the dining
2781     area, an employee of the limited-service restaurant licensee who is qualified to sell and serve an
2782     alcoholic product under Section 32B-5-306 shall transport any unfinished portion of the
2783     patron's drink to the patron's seat in the dining area.

2784          (iii) For purposes of Subsection (8)(b)(i) a single portion of wine is 5 ounces or less.
2785          (c) A limited-service restaurant licensee shall maintain on the licensed premises
2786     adequate culinary facilities for food preparation and dining accommodations.
2787          (9) A patron may consume an alcoholic product only if the patron is seated at:
2788          (a) a table that is located in a dining area or a dispensing area;
2789          (b) a counter that is located in a dining area or a dispensing area; or
2790          (c) a dispensing structure located in a dispensing area.
2791          (10) (a) Subject to the other provisions of this Subsection (10), a patron may not have
2792     more than two alcoholic products of any kind at a time before the patron.
2793          (b) An individual portion of wine is considered to be one alcoholic product under
2794     Subsection (10)(a).
2795          (11) In accordance with the provisions of this section, an individual who is at least 21
2796     years of age may consume food and beverages in a dispensing area.
2797          (12) (a) Except as provided in Subsection (12)(b), a minor may not sit, remain, or
2798     consume food or beverages in a dispensing area.
2799          (b) (i) A minor may be in a dispensing area if the minor is employed by the
2800     limited-service restaurant licensee:
2801          (A) in accordance with Subsection 32B-5-308(2); or
2802          (B) to perform maintenance and cleaning services when the limited-service restaurant
2803     licensee is not open for business.
2804          (ii) If there is no alternative route available, a minor may momentarily pass through a
2805     dispensing area without remaining or sitting in the dispensing area en route to an area of the
2806     limited-service restaurant licensee's premises in which the minor is permitted to be.
2807          (13) Except as provided in Subsection 32B-5-307(3), a limited-service restaurant
2808     licensee may dispense an alcoholic product only if:
2809          (a) the alcoholic product is dispensed from:
2810          (i) a dispensing structure that is located in a dispensing area; or
2811          (ii) an area that is:
2812          (A) separated from an area for the consumption of food by a patron by a solid,
2813     translucent, permanent structural barrier such that the facilities for the storage or dispensing of
2814     an alcoholic product are not readily visible to a patron and not accessible by a patron; and

2815          (B) apart from an area used for dining, for staging, or as a lobby or waiting area;
2816          (b) the limited-service restaurant licensee uses an alcoholic product that is stored in an
2817     area described in Subsection (13)(a) or in accordance with Section 32B-5-303; and
2818          (c) any instrument or equipment used to dispense alcoholic product is located in an
2819     area described in Subsection (13)(a).
2820          (14) (a) A limited-service restaurant licensee may have more than one dispensing area
2821     in the licensed premises.
2822          (b) Each dispensing area in a licensed premises may satisfy the requirements for a
2823     dispensing area under Subsection 32B-6-202(2)(a)(i), (ii), or (iii), regardless of how any other
2824     dispensing area in the licensed premises satisfies the requirements for a dispensing area.
2825          (15) A limited-service restaurant licensee may not:
2826          (a) transfer, dispense, or serve an alcoholic product on or from a movable cart; or
2827          (b) display an alcoholic product or a product intended to appear like an alcoholic
2828     product by moving a cart or similar device around the licensed premises.
2829          (16) A limited-service restaurant licensee may state in a food or alcoholic product
2830     menu a charge or fee made in connection with the sale, service, or consumption of wine or
2831     heavy beer, including:
2832          (a) a set-up charge;
2833          (b) a service charge; or
2834          (c) a chilling fee.
2835          (17) (a) In addition to the requirements described in Section 32B-5-302, a
2836     limited-service restaurant licensee shall maintain each of the following records for at least three
2837     years:
2838          (i) a record required by Section 32B-5-302; and
2839          (ii) a record that the commission requires a limited-service restaurant licensee to use or
2840     maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2841     Rulemaking Act.
2842          (b) The department shall audit the records of a limited-service restaurant licensee at
2843     least once each calendar year.
2844          (18) (a) In accordance with Section 32B-6-305.3, a limited-service restaurant licensee:
2845          (i) may comply with the provisions of this section beginning on or after July 1, 2017;

2846     and
2847          (ii) shall comply with the provisions of this section:
2848          (A) for a limited-service restaurant licensee that does not have a grandfathered bar
2849     structure, on and after July 1, 2018; or
2850          (B) for a limited-service restaurant licensee that has a grandfathered bar structure, on
2851     and after July 1, 2022.
2852          (b) A limited-service restaurant licensee that elects to comply with the provisions of
2853     this section before the latest applicable date described in Subsection (18)(a)(ii):
2854          (i) shall comply with each provision of this section; and
2855          (ii) is not required to comply with the provisions of Section 32B-6-305.
2856          Section 41. Section 32B-6-305.3 is enacted to read:
2857          32B-6-305.3. Transition process for limited-service restaurant licensees.
2858          (1) For a limited-service restaurant license issued on or after July 1, 2017, the
2859     limited-service restaurant licensee shall comply with the provisions of Section 32B-6-305.2.
2860          (2) For a limited-service restaurant license issued before July 1, 2017, before the
2861     limited-service restaurant licensee changes the limited-service restaurant licensee's approved
2862     location for storage, dispensing, or consumption to comply with the provisions of Section
2863     32B-6-305.2, the limited-service restaurant licensee shall submit an application for approval to
2864     the department in accordance with Subsection 32B-5-303(3).
2865          (3) (a) Except as provided in Subsection (4), a person who holds a limited-service
2866     restaurant license issued before July 1, 2017, shall comply with the provisions of Section
2867     32B-6-305.2 on or before July 1, 2018.
2868          (b) A limited-service restaurant licensee described in Subsection (3)(a) that cannot
2869     comply with the provisions of Section 32B-6-305.2 without a change to the limited-service
2870     restaurant licensee's approved location for storage, dispensing, or consumption:
2871          (i) may submit an application for approval described in Subsection (2) on or after May
2872     9, 2017; and
2873          (ii) shall submit an application for approval described in Subsection (2) on or before
2874     May 1, 2018.
2875          (c) If a limited-service restaurant licensee described in Subsection (3)(a) submits an
2876     application for approval described in Subsection (2) on May 9, 2017, the department shall take

2877     action on the application on or before July 1, 2017.
2878          (4) (a) A person who holds a limited-service restaurant license issued before July 1,
2879     2017, and has a grandfathered bar structure shall comply with the provisions of Section
2880     32B-6-305.2 on or before the earlier of:
2881          (i) July 1, 2022;
2882          (ii) the date on which the limited-service restaurant licensee remodels, as defined by
2883     commission rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2884     Rulemaking Act, the limited-service restaurant licensee's grandfathered bar structure or dining
2885     area; or
2886          (iii) the date on which the limited-service restaurant licensee experiences a change of
2887     ownership described in Subsection 32B-8a-202(1).
2888          (b) A limited-service restaurant licensee described in Subsection (4)(a) that cannot
2889     comply with the provisions of Section 32B-6-305.2 without a change to the limited-service
2890     restaurant licensee's approved location for storage, dispensing, or consumption:
2891          (i) may submit an application for approval described in Subsection (2) on or after May
2892     9, 2017; and
2893          (ii) shall submit an application for approval described in Subsection (2) on or before
2894     May 1, 2022.
2895          Section 42. Section 32B-6-401 is amended to read:
2896     
Part 4. Bar Establishment License

2897          32B-6-401. Title.
2898          This part is known as "[Club] Bar Establishment License."
2899          Section 43. Section 32B-6-403 is amended to read:
2900          32B-6-403. Commission's power to issue bar establishment license.
2901          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
2902     an alcoholic product on its premises as a [club] bar establishment licensee, the person shall first
2903     obtain a [club] bar establishment license from the commission in accordance with this part.
2904          (2) The commission may issue a [club] bar establishment license to establish [club] bar
2905     establishment licensed premises at places and in numbers the commission considers proper for
2906     the storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on
2907     premises operated by a [club] bar establishment licensee.

2908          (3) Subject to Section 32B-1-201:
2909          (a) (i) [The] before July 1, 2018, the commission may not issue a total number of
2910     [club] bar establishment licenses that at any time exceeds the number determined by dividing
2911     the population of the state by 7,850[.]; and
2912          (ii) beginning on July 1, 2018, the commission may not issue a total number of bar
2913     establishment licenses that at any time exceeds the number determined by dividing the
2914     population of the state by 10,538;
2915          (b) the commission may issue a seasonal [club] bar establishment license in accordance
2916     with Section 32B-5-206 to:
2917          (i) a dining club licensee; or
2918          (ii) a [social club] bar licensee[.];
2919          (c) (i) if the location, design, and construction of a hotel may require more than one
2920     dining club license or [social club] bar license location within the hotel to serve the public
2921     convenience, the commission may authorize as many as three [club] bar establishment license
2922     locations within the hotel under one [club] bar establishment license if:
2923          (A) the hotel has a minimum of 150 guest rooms;
2924          (B) all locations under the [club] bar establishment license are:
2925          (I) within the same hotel; and
2926          (II) on premises that are managed or operated, and owned or leased, by the [club] bar
2927     establishment licensee; and
2928          (C) the locations under the [club] bar establishment license operate under the same
2929     type of [club] bar establishment license[.]; and
2930          (ii) a facility other than a hotel shall have a separate [club] bar establishment license
2931     for each [club] bar establishment license location where an alcoholic product is sold, offered
2932     for sale, or furnished[.];
2933          (d) when a business establishment undergoes a change of ownership, the commission
2934     may issue a [club] bar establishment license to the new owner of the business establishment
2935     notwithstanding that there is no [club] bar establishment license available under Subsection
2936     (3)(a) if:
2937          (i) the primary business activity at the business establishment before and after the
2938     change of ownership is not the sale, offer for sale, or furnishing of an alcoholic product;

2939          (ii) before the change of ownership there are two or more licensed premises on the
2940     business establishment that operate under a retail license, with at least one of the retail licenses
2941     being a [club] bar establishment license;
2942          (iii) subject to Subsection (3)(e), the licensed premises of the [club] bar establishment
2943     license issued under this Subsection (3)(d) is at the same location where the [club] bar
2944     establishment license licensed premises was located before the change of ownership; and
2945          (iv) the person who is the new owner of the business establishment qualifies for the
2946     [club] bar establishment license, except for there being no [club] bar establishment license
2947     available under Subsection (3)(a)[.]; and
2948          (e) if a [club] bar establishment licensee of a [club] bar establishment license issued
2949     under Subsection (3)(d) requests a change of location, the [club] bar establishment licensee
2950     may retain the [club] bar establishment license after the change of location only if on the day
2951     on which the [club] bar establishment licensee seeks a change of location a [club] bar
2952     establishment license is available under Subsection (3)(a).
2953          Section 44. Section 32B-6-404 is amended to read:
2954          32B-6-404. Types of bar license.
2955          (1) To obtain an equity [club] license, in addition to meeting the other requirements of
2956     this part, a person shall:
2957          (a) whether incorporated or unincorporated:
2958          (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
2959     purpose;
2960          (ii) have members;
2961          (iii) limit access to its licensed premises to a member or a guest of the member; and
2962          (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
2963     to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
2964          (b) own, maintain, or operate a substantial recreational facility in conjunction with a
2965     club house such as:
2966          (i) a golf course; or
2967          (ii) a tennis facility;
2968          (c) have at least 50% of the total membership having:
2969          (i) full voting rights; and

2970          (ii) an equal share of the equity of the [club] entity or a right to redemption or refund at
2971     the equal value; and
2972          (d) if there is more than one class of membership, have at least one class of
2973     membership that entitles each member in that class to:
2974          (i) full voting rights; and
2975          (ii) an equal share of the equity of the [club] entity or a right to redemption or equal
2976     value.
2977          (2) To obtain a fraternal [club] license, in addition to meeting the other requirements of
2978     this part, a person shall:
2979          (a) whether incorporated or unincorporated:
2980          (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
2981     purpose;
2982          (ii) have members;
2983          (iii) limit access to its licensed premises to a member or a guest of the member; and
2984          (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
2985     to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
2986          (b) have no capital stock;
2987          (c) exist solely for:
2988          (i) the benefit of its members and their beneficiaries; and
2989          (ii) a lawful social, intellectual, educational, charitable, benevolent, moral, fraternal,
2990     patriotic, or religious purpose for the benefit of its members or the public, carried on through
2991     voluntary activity of its members in their local lodges;
2992          (d) have a representative form of government;
2993          (e) have a lodge system in which:
2994          (i) there is a supreme governing body;
2995          (ii) subordinate to the supreme governing body are local lodges, however designated,
2996     into which individuals are admitted as members in accordance with the laws of the fraternal;
2997          (iii) the local lodges are required by the laws of the fraternal to hold regular meetings at
2998     least monthly; and
2999          (iv) the local lodges regularly engage in one or more programs involving member
3000     participation to implement the purposes of Subsection (2)(c); and

3001          (f) own or lease a building or space in a building used for lodge activities.
3002          (3) To obtain a dining club license, in addition to meeting the other requirements of
3003     this part, a person shall:
3004          (a) maintain at least the following percentages of its total club business from the sale of
3005     food, not including mix for alcoholic products, or service charges:
3006          (i) for a dining club license that is issued as an original license on or after July 1, 2011,
3007     60%; and
3008          (ii) for a dining club license that is issued on or before June 30, 2011:
3009          (A) 50% on or before June 30, 2012; and
3010          (B) 60% on and after July 1, 2012; and
3011          (b) obtain a determination by the commission that the person will operate as a dining
3012     club licensee, as part of which the commission may consider:
3013          (i) the square footage and seating capacity of the premises;
3014          (ii) what portion of the square footage and seating capacity will be used for a dining
3015     area in comparison to the portion that will be used as a lounge or bar area;
3016          (iii) whether full meals including appetizers, main courses, and desserts are served;
3017          (iv) whether the person will maintain adequate on-premise culinary facilities to prepare
3018     full meals, except a person who is located on the premise of a hotel or resort facility may use
3019     the culinary facilities of the hotel or resort facility;
3020          (v) whether the entertainment provided at the [club] premises is suitable for minors;
3021     and
3022          (vi) the club management's ability to manage and operate a dining club license
3023     including:
3024          (A) management experience;
3025          (B) past dining club licensee or restaurant management experience; and
3026          (C) the type of management scheme used by the dining club license.
3027          (4) To obtain a [social club] bar license, a person is required to meet the requirements
3028     of this part except those listed in Subsection (1), (2), or (3).
3029          (5) (a) At the time that the commission issues a [club] bar establishment license, the
3030     commission shall designate the type of [club] bar establishment license for which the person
3031     qualifies.

3032          (b) If requested by a [club] bar establishment licensee, the commission may approve a
3033     change in the type of [club] bar establishment license in accordance with rules made by the
3034     commission.
3035          (6) To the extent not prohibited by law, this part does not prevent a dining club
3036     licensee or [social club] bar licensee from restricting access to the [club's] licensed premises on
3037     the basis of an individual:
3038          (a) paying a fee; or
3039          (b) agreeing to being on a list of individuals who have access to the [club's] licensed
3040     premises.
3041          (7) (a) (i) On or after July 1, 2017, the commission may not issue or renew a dining
3042     club license.
3043          (ii) Effective July 1, 2018, the department shall convert each dining club license to a
3044     full-service restaurant license or a bar license in accordance with the provisions of this section.
3045          (b) (i) (A) A person licensed as a dining club on July 1, 2017, shall notify the
3046     department no later than May 31, 2018, whether effective July 1, 2018, the person elects to be
3047     licensed as a full-service restaurant or a bar.
3048          (B) Effective July 1, 2018, the department shall convert a dining club license to a
3049     full-service restaurant license or a bar license in accordance with the dining club licensee's
3050     election under Subsection (7)(b)(i)(A).
3051          (ii) If a dining club licensee fails to timely notify the department in accordance with
3052     Subsection (7)(b)(i), the dining club license is automatically changed to a full-service
3053     restaurant license on July 1, 2018.
3054          (c) Subject to Section 32B-6-404.1, after a dining club license converts to a full-service
3055     restaurant license or a bar license, the retail licensee shall operate under the provisions that
3056     govern the full-service restaurant license or the bar license, as applicable.
3057          (d) After a dining club license converts to a full-service restaurant license or a bar
3058     license in accordance with this Subsection (7):
3059          (i) the full-service restaurant license is not considered in determining the total number
3060     of full-service restaurant licenses available under Section 32B-6-203; or
3061          (ii) the bar license is not considered in determining the total number of bar
3062     establishment licenses available under Section 32B-6-403.

3063          (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3064     commission may make rules establishing a procedure by which a dining club licensee elects
3065     and converts to a full-service restaurant licensee or a bar licensee under this Subsection (7).
3066          Section 45. Section 32B-6-404.1 is enacted to read:
3067          32B-6-404.1. Transition from dining club license to full-service restaurant license.
3068          (1) As used in this section:
3069          (a) "Converted full-service restaurant licensee" means a dining club licensee that
3070     converts to a full-service restaurant licensee on July 1, 2018, in accordance with Subsection
3071     32B-6-404(7).
3072          (b) "Grandfathered bar structure" means the same as that term is defined in Section
3073     32B-6-202.
3074          (2) (a) Except as provided in Subsection (2)(c), beginning on July 1, 2018, a converted
3075     full-service restaurant licensee shall operate under the provisions that govern a full-service
3076     restaurant licensee that has a grandfathered bar structure.
3077          (b) For purposes of applying the provisions that govern a full-service restaurant
3078     licensee with a grandfathered bar structure, a converted full-service licensee's bar structure is
3079     considered a grandfathered bar structure.
3080          (c) The provisions of Section 32B-6-205.3 do not apply to a converted full-service
3081     restaurant licensee.
3082          (3) (a) A converted full-service restaurant licensee shall comply with the provisions of
3083     Section 32B-6-205.2 on or before the earlier of:
3084          (i) July 1, 2022;
3085          (ii) the date on which the converted full-service restaurant licensee remodels, as
3086     defined by commission rule made in accordance with Title 63G, Chapter 3, Utah
3087     Administrative Rulemaking Act, the converted full-service restaurant licensee's bar structure or
3088     dining area; or
3089          (iii) the date on which the converted full-service restaurant licensee experiences a
3090     change of ownership described in Subsection 32B-8a-202(1).
3091          (b) Before a converted full-service restaurant licensee changes the converted
3092     full-service restaurant licensee's approved location for storage, dispensing, or consumption to
3093     comply with the provisions of Section 32B-6-205.2, the converted full-service restaurant

3094     licensee shall submit an application for approval to the department in accordance with
3095     Subsection 32B-5-303(3).
3096          (c) A converted full-service restaurant licensee that cannot comply with the provisions
3097     of Section 32B-6-205.2 without a change to the converted full-service restaurant licensee's
3098     approved location for storage, dispensing, or consumption shall submit an application for
3099     approval described in Subsection (3)(b) on or before May 1, 2022.
3100          (4) (a) Notwithstanding any provision to the contrary, a converted full-service
3101     restaurant licensee shall maintain at least the following percentage of the converted full-service
3102     restaurant licensee's total restaurant business from the sale of food:
3103          (i) beginning July 1, 2018, and ending June 30, 2019, 64%;
3104          (ii) beginning July 1, 2019, and ending June 30, 2020, 68%; and
3105          (iv) on and after July 1, 2021, 70%.
3106          (b) For purposes of Subsection (4)(a), a converted full-service restaurant licensee's
3107     restaurant business from the sale of food does not include:
3108          (i) mix for an alcoholic product; or
3109          (ii) a service charge.
3110          Section 46. Section 32B-6-405 is amended to read:
3111          32B-6-405. Specific licensing requirements for bar establishment license.
3112          (1) To obtain a [club] bar establishment license, in addition to complying with Chapter
3113     5, Part 2, Retail Licensing Process, a person shall submit with the written application:
3114          (a) (i) a statement as to whether the person is seeking to qualify as:
3115          (A) an equity [club] licensee;
3116          (B) a fraternal [club] licensee;
3117          (C) a dining club licensee; or
3118          (D) a [social club] bar licensee; and
3119          (ii) evidence that the person meets the requirements for the type of [club] bar
3120     establishment license for which the person is applying;
3121          (b) evidence that the person operates [club] a premises where a variety of food is
3122     prepared and served in connection with dining accommodations; and
3123          (c) if the person is applying for an equity [club] license or fraternal [club] license, a
3124     copy of the [club's] entity's bylaws or house rules, and an amendment to those records.

3125          (2) The commission may refuse to issue a [club] bar establishment license to a person
3126     for an equity [club] license or fraternal [club] license if the commission determines that a
3127     provision of the person's bylaws or house rules, or amendments to those records is not:
3128          (a) reasonable; and
3129          (b) consistent with:
3130          (i) the declared nature and purpose of the [club] bar establishment licensee; and
3131          (ii) the purposes of this part.
3132          (3) (a) A [club] bar establishment license expires on June 30 of each year.
3133          (b) To renew a [club] bar establishment license, a person shall comply with the
3134     requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than May 31.
3135          (4) (a) The nonrefundable application fee for a [club] bar establishment license is $300.
3136          (b) The initial license fee for a [club] bar establishment license is $2,750.
3137          (c) The renewal fee for a [club] bar establishment license is $2,000.
3138          (5) The bond amount required for a [club] bar establishment license is the penal sum of
3139     $10,000.
3140          Section 47. Section 32B-6-406 is amended to read:
3141          32B-6-406. Specific operational requirements for a bar establishment license.
3142          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3143     Requirements, a [club] bar establishment licensee and staff of the [club] bar establishment
3144     licensee shall comply with this section.
3145          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
3146     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3147          (i) a [club] bar establishment licensee;
3148          (ii) individual staff of a [club] bar establishment licensee; or
3149          (iii) both a [club] bar establishment licensee and staff of the [club] bar establishment
3150     licensee.
3151          (2) In addition to complying with Subsection 32B-5-301(3), a [club] bar licensee shall
3152     display in a [prominent place in the club] conspicuous place at the entrance to the licensed
3153     premises a [list of the types and brand names of liquor being furnished through the club
3154     licensee's calibrated metered dispensing system.] sign approved by the commission that:
3155          (a) measures at least 8-1/2 inches long and 11 inches wide; and

3156          (b) clearly states that the bar licensee is a bar and not a restaurant.
3157          (3) (a) In addition to complying with Section 32B-5-302, a [club] bar establishment
3158     licensee shall maintain for a minimum of three years:
3159          (i) a record required by Section 32B-5-302; and
3160          (ii) a record maintained or used by the [club] bar establishment licensee, as the
3161     department requires.
3162          (b) Section 32B-1-205 applies to a record required to be made, maintained, or used in
3163     accordance with this Subsection (3).
3164          (c) The department shall audit the records of a [club] bar establishment licensee at least
3165     once annually.
3166          (4) (a) A [club] bar establishment licensee may not sell, offer for sale, or furnish liquor
3167     on the licensed premises on any day during a period that:
3168          (i) begins at 1 a.m.; and
3169          (ii) ends at 9:59 a.m.
3170          (b) A [club] bar establishment licensee may sell, offer for sale, or furnish beer during
3171     the hours specified in Part 7, On-Premise Beer Retailer License, for an on-premise beer retailer
3172     license.
3173          (c) (i) Notwithstanding Subsections (4)(a) and (b), a [club] bar establishment licensee
3174     shall keep its licensed premises open for one hour after the [club] bar establishment licensee
3175     ceases the sale and furnishing of an alcoholic product during which time a patron of the [club]
3176     bar establishment licensee may finish consuming:
3177          (A) a single drink containing spirituous liquor;
3178          (B) a single serving of wine not exceeding five ounces;
3179          (C) a single serving of heavy beer;
3180          (D) a single serving of beer not exceeding 26 ounces; or
3181          (E) a single serving of a flavored malt beverage.
3182          (ii) A [club] bar establishment licensee is not required to remain open:
3183          (A) after all patrons have vacated the premises; or
3184          (B) during an emergency.
3185          (5) (a) A minor may not be admitted into, use, or be in:
3186          (i) a lounge or bar area of the premises of:

3187          (A) an equity [club] licensee;
3188          (B) a fraternal [club] licensee; or
3189          (C) a dining club licensee; or
3190          (ii) the premises of:
3191          (A) a dining club licensee unless accompanied by an individual who is 21 years of age
3192     or older; or
3193          (B) a [social club] bar licensee, except to the extent provided for under Section
3194     32B-6-406.1.
3195          (b) Notwithstanding Section 32B-5-308, a [club] bar establishment licensee may not
3196     employ a minor to:
3197          (i) work in a lounge or bar area of an equity [club] licensee, fraternal [club] licensee, or
3198     dining club licensee; or
3199          (ii) handle an alcoholic product.
3200          (c) Notwithstanding Section 32B-5-308, a minor may not be employed on the licensed
3201     premises of a [social club] bar licensee.
3202          (d) Nothing in this part or Section 32B-5-308 precludes a local authority from being
3203     more restrictive of a minor's admittance to, use of, or presence on the licensed premises of a
3204     [club] bar establishment licensee.
3205          (6) A [club] bar establishment licensee shall have food available at all times when an
3206     alcoholic product is sold, offered for sale, furnished, or consumed on the licensed premises.
3207          (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have
3208     more than two alcoholic products of any kind at a time before the patron.
3209          (b) A patron may not have two spirituous liquor drinks before the [club] bar
3210     establishment licensee patron if one of the spirituous liquor drinks consists only of the primary
3211     spirituous liquor for the other spirituous liquor drink.
3212          (c) An individual portion of wine is considered to be one alcoholic product under
3213     Subsection (7)(a).
3214          (8) A [club] bar establishment licensee shall have available on the premises for a
3215     patron to review at the time that the patron requests it, a written alcoholic product price list or a
3216     menu containing the price of an alcoholic product sold, offered for sale, or furnished by the
3217     [club] bar establishment licensee including:

3218          (a) a set-up charge;
3219          (b) a service charge; or
3220          (c) a chilling fee.
3221          (9) Subject to Section 32B-5-309, a [club] bar establishment licensee may not
3222     temporarily rent or otherwise temporarily lease its premises to a person unless:
3223          (a) the person to whom the [club] bar establishment licensee rents or leases the
3224     premises agrees in writing to comply with this title as if the person is the [club] bar
3225     establishment licensee, except for a requirement related to making or maintaining a record; and
3226          (b) the [club] bar establishment licensee takes reasonable steps to ensure that the
3227     person complies with this section as provided in Subsection (9)(a).
3228          (10) If a [club] bar establishment licensee is an equity [club] licensee or fraternal [club]
3229     licensee, the [club] bar establishment licensee shall comply with Section 32B-6-407.
3230          (11) If a [club] bar establishment licensee is a dining club licensee or [social club] bar
3231     licensee, the [club] bar establishment licensee shall comply with Section 32B-1-407.
3232          (12) (a) A [club] bar establishment licensee shall own or lease premises suitable for the
3233     [club] bar establishment licensee's activities.
3234          (b) A [club] bar establishment licensee may not maintain licensed premises in a
3235     manner that barricades or conceals the [club] bar establishment licensee's operation.
3236          Section 48. Section 32B-6-406.1 is amended to read:
3237          32B-6-406.1. Specific operational restrictions related to dance or concert hall.
3238          (1) A minor who is at least 18 years of age may be admitted into, use, or be on the
3239     premises of a dance or concert hall if:
3240          (a) the dance or concert hall is located:
3241          (i) on the licensed premises of a [social club] bar licensee; or
3242          (ii) on the property that immediately adjoins the licensed premises of and is operated
3243     by a [social club] bar licensee; and
3244          (b) the [social club] bar licensee holds a permit to operate a dance or concert hall that
3245     was issued on or before May 11, 2009:
3246          (i) on the basis of the operational requirements described in Subsection (2); and
3247          (ii) when the [social club] bar licensee was licensed as a class D private club.
3248          (2) A [social club] bar licensee that holds a dance or concert hall permit shall operate

3249     in such a way that:
3250          (a) the [social club] bar licensee's lounge, [bar] dispensing structure, or other area for
3251     alcoholic product consumption is:
3252          (i) not accessible to a minor;
3253          (ii) clearly defined; and
3254          (iii) separated from the dance or concert hall area by one or more walls, multiple floor
3255     levels, or other substantial physical barriers;
3256          (b) [a bar or dispensing] a dispensing structure or area where alcoholic product is
3257     dispensed is not visible to a minor;
3258          (c) consumption of an alcoholic product may not occur in:
3259          (i) the dance or concert hall area; or
3260          (ii) an area of the [social club] bar license premises accessible to a minor;
3261          (d) the [social club] bar licensee maintains sufficient security personnel to prevent the
3262     passing of beverages from the [social club] bar licensee's lounge, [bar] dispensing structure, or
3263     other area for alcoholic product consumption to:
3264          (i) the dance or concert hall area; or
3265          (ii) an area of the [social club] bar licensee premises accessible to a minor;
3266          (e) there are one or more separate entrances, exits, and restroom facilities from the
3267     [social club] bar licensee's lounge, [bar] dispensing structure, or other area for alcoholic
3268     product consumption than for:
3269          (i) the dance or concert hall area; or
3270          (ii) an area accessible to a minor; and
3271          (f) the [social club] bar licensee complies with any other requirements imposed by the
3272     commission by rule.
3273          (3) (a) A minor under 18 years of age who is accompanied at all times by a parent or
3274     legal guardian may be admitted into, use, or be on the premises of a concert hall described in
3275     Subsection (1) if:
3276          (i) the requirements of Subsection (2) are met; and
3277          (ii) signage, product, and dispensing equipment containing recognition of an alcoholic
3278     product is not visible to the minor.
3279          (b) A minor under 18 years of age but who is 14 years of age or older who is not

3280     accompanied by a parent or legal guardian may be admitted into, use, or be on the premises of
3281     a concert hall described in Subsection (1) if:
3282          (i) the requirements of Subsections (2) and (3)(a) are met; and
3283          (ii) there is no alcoholic product, sales, furnishing, or consumption on the premises of
3284     the [social club] bar licensee.
3285          (4) The commission may suspend or revoke a dance or concert permit issued to a
3286     [social club] bar licensee and suspend or revoke the license of the [social club] bar licensee if:
3287          (a) the [social club] bar licensee fails to comply with the requirements in this section;
3288          (b) the [social club] bar licensee sells, offers for sale, or furnishes an alcoholic product
3289     to a minor;
3290          (c) the [social club] bar licensee or a supervisory or managerial level staff of the [social
3291     club] bar licensee is convicted under Title 58, Chapter 37, Utah Controlled Substances Act, on
3292     the basis of an activity that occurs on:
3293          (i) the licensed premises; or
3294          (ii) the dance or concert hall that is located on property that immediately adjoins the
3295     licensed premises of and is operated by the [social club] bar licensee;
3296          (d) there are three or more convictions of patrons of the [social club] bar licensee under
3297     Title 58, Chapter 37, Utah Controlled Substances Act, on the basis of activities that occur on:
3298          (i) the licensed premises; or
3299          (ii) the dance or concert hall that is located on property that immediately adjoins the
3300     licensed premises of and is operated by the [social club] bar licensee;
3301          (iii) there is more than one conviction:
3302          (A) of:
3303          (I) the [social club] bar licensee;
3304          (II) staff of the [social club] bar licensee;
3305          (III) an entertainer contracted by the [social club] bar licensee; or
3306          (IV) a patron of the [social club] bar licensee; and
3307          (B) made on the basis of a lewd act or lewd entertainment prohibited by this title that
3308     occurs on:
3309          (I) the licensed premises; or
3310          (II) the dance or concert hall that is located on property that immediately adjoins the

3311     licensed premises of and is operated by the [social club] bar licensee; or
3312          (e) the commission finds acts or conduct contrary to the public welfare and morals
3313     involving lewd acts or lewd entertainment prohibited by this title that occurs on:
3314          (i) the licensed premises; or
3315          (ii) the dance or concert hall that is located on property that immediately adjoins the
3316     licensed premises of and is operated by the [social club] bar licensee.
3317          (5) Nothing in this section prohibits a [social club] bar licensee from selling, offering
3318     for sale, or furnishing an alcoholic product in a dance or concert area located on the [social
3319     club] bar licensed premises on days and times when the [social club] bar licensee does not
3320     allow a minor into those areas.
3321          Section 49. Section 32B-6-407 is amended to read:
3322          32B-6-407. Specific operational requirements for equity license or fraternal
3323     license.
3324          (1) [For purposes of] As used in this section [only: (a) "Club], "equity or fraternal
3325     licensee" means an equity [club] licensee or fraternal [club] licensee.
3326          [(b) "Club licensee" does not include a dining club licensee or social club licensee.]
3327          (2) (a) [A club] An equity or fraternal licensee shall have a governing body that:
3328          (i) consists of three or more members of the [club] equity or fraternal licensee; and
3329          (ii) holds regular meetings to:
3330          (A) review membership applications; and
3331          (B) conduct other business as required by the bylaws or house rules of the [club] equity
3332     or fraternal licensee.
3333          (b) (i) [A club] An equity or fraternal licensee shall maintain a minute book that is
3334     posted currently by the [club] equity or fraternal licensee.
3335          (ii) The minute book required by this Subsection (2) shall contain the minutes of a
3336     regular or special meeting of the governing body.
3337          (3) [A club] An equity or fraternal licensee may admit an individual as a member only
3338     on written application signed by the person, subject to:
3339          (a) the person paying an application fee; and
3340          (b) investigation, vote, and approval of a quorum of the governing body.
3341          (4) [A club] An equity or fraternal licensee shall:

3342          (a) record an admission of a member in the official minutes of a regular meeting of the
3343     governing body; and
3344          (b) whether approved or disapproved, file an application as a part of the official records
3345     of the [club] equity or fraternal licensee.
3346          (5) The spouse of a member of [a club] an equity or fraternal licensee has the rights and
3347     privileges of the member:
3348          (a) to the extent permitted by the bylaws or house rules of the [club] equity or fraternal
3349     licensee; and
3350          (b) except to the extent restricted by this title.
3351          (6) A minor child of a member of [a club] an equity or fraternal licensee has the rights
3352     and privileges of the member:
3353          (a) to the extent permitted by the bylaws or house rules of the [club] equity or fraternal
3354     licensee; and
3355          (b) except to the extent restricted by this title.
3356          (7) [A club] An equity or fraternal licensee shall maintain:
3357          (a) a current and complete membership record showing:
3358          (i) the date of application of a proposed member;
3359          (ii) a member's address;
3360          (iii) the date the governing body approved a member's admission;
3361          (iv) the date initiation fees and dues are assessed and paid; and
3362          (v) the serial number of the membership card issued to a member;
3363          (b) a membership list; and
3364          (c) a current record indicating when a member is removed as a member or resigns.
3365          (8) (a) [A club] An equity or fraternal licensee shall have bylaws or house rules that
3366     include provisions respecting the following:
3367          (i) standards of eligibility for members;
3368          (ii) limitation of members, consistent with the nature and purpose of the [club] equity
3369     or fraternal licensee;
3370          (iii) the period for which dues are paid, and the date upon which the period expires;
3371          (iv) provisions for removing a member from the [club] equity or fraternal licensee's
3372     membership for the nonpayment of dues or other cause;

3373          (v) provisions for guests; and
3374          (vi) application fees and membership dues.
3375          (b) [A club] An equity or fraternal licensee shall maintain a current copy of the [club]
3376     equity or fraternal licensee's current bylaws and current house rules.
3377          (c) [A club] An equity or fraternal licensee shall maintain its bylaws or house rules,
3378     and any amendments to those records, on file with the department at all times.
3379          (9) [A club] An equity or fraternal licensee may, in its discretion, allow an individual
3380     to be admitted to or use the [club] licensed premises as a guest subject to the following
3381     conditions:
3382          (a) the individual is allowed to use the [club] equity or fraternal licensee premises only
3383     to the extent permitted by the [club] equity or fraternal licensee's bylaws or house rules;
3384          (b) the individual shall be previously authorized by a member of the [club] equity or
3385     fraternal licensee who agrees to host the individual as a guest [into the club];
3386          (c) the individual has only those privileges derived from the individual's host for the
3387     duration of the individual's visit to the [club] equity or fraternal licensee premises; and
3388          (d) [a club] an equity or fraternal licensee or staff of the [club] equity or fraternal
3389     licensee may not enter into an agreement or arrangement with a [club] member of the equity or
3390     fraternal licensee to indiscriminately host a member of the general public into the [club] equity
3391     or fraternal licensee premises as a guest.
3392          (10) Notwithstanding Subsection (9), an individual may be allowed as a guest in [a
3393     club] an equity or fraternal licensed premises without a host if:
3394          (a) (i) the [club] equity or fraternal licensee is an equity [club] licensee; and
3395          (ii) the individual is a member of an equity [club] licensee that has reciprocal guest
3396     privileges with the equity [club] licensee for which the individual is a guest;
3397          (b) (i) the [club] equity or fraternal licensee is a fraternal [club] licensee; and
3398          (ii) the individual is a member of the same fraternal organization as the fraternal [club]
3399     licensee for which the individual is a guest; or
3400          (c) (i) the [club] equity or fraternal licensee is a fraternal [club] licensee that holds the
3401     fraternal [club] license on July 1, 2013;
3402          (ii) the [club] equity or fraternal licensee's bylaws permit guests in the [club] equity or
3403     fraternal licensed premises without a host except that a minor may not be admitted as a guest

3404     without a host; and
3405          (iii) the [club] equity or fraternal licensee maintains 60% of its total [club] business
3406     from the sale of food, not including mix for alcoholic products, or service charges.
3407          (11) Unless the patron is a member or guest, [a club] an equity or fraternal licensee
3408     may not:
3409          (a) sell, offer for sale, or furnish an alcoholic product to the patron; or
3410          (b) allow the patron to be admitted to or use the licensed premises.
3411          (12) A minor may not be a member, officer, director, or trustee of [a club] an equity or
3412     fraternal licensee.
3413          Section 50. Section 32B-6-408 is amended to read:
3414          32B-6-408. Information obtained by investigator.
3415          (1) Subject to Subsection (2), if an investigator is permitted by another provision of
3416     this title to inspect a record of a [club] bar establishment licensee, in addition to any other
3417     rights under this title, the investigator may inspect, have a copy of, or otherwise review any
3418     record of the [club] bar establishment licensee that is a visual recording of the operations of the
3419     [club] bar establishment licensee.
3420          (2) An investigator who is a peace officer may not inspect, have a copy of, or otherwise
3421     review a visual recording described in Subsection (1) without probable cause.
3422          Section 51. Section 32B-6-603 is amended to read:
3423          32B-6-603. Commission's power to issue on-premise banquet license -- Contracts
3424     as host.
3425          (1) (a) Before a person may store, sell, offer for sale, furnish, or allow the consumption
3426     of an alcoholic product in connection with the person's banquet and room service activities at
3427     one of the following, the person shall first obtain an on-premise banquet license in accordance
3428     with this part:
3429          (i) a hotel;
3430          (ii) a resort facility;
3431          (iii) a sports center; [or]
3432          (iv) a convention center[.]; or
3433          (v) a performing arts facility.
3434          (b) This part does not prohibit an alcoholic product on the premises of a person listed

3435     in Subsection (1)(a) to the extent otherwise permitted by this title.
3436          (c) This section does not prohibit a person who applies for an on-premise banquet
3437     license to also apply for a package agency if otherwise qualified.
3438          (2) The commission may issue an on-premise banquet license to establish on-premise
3439     banquet licensees in the numbers the commission considers proper for the storage, sale, offer
3440     for sale, furnishing, and consumption of an alcoholic product at a banquet or as part of room
3441     service activities operated by an on-premise banquet licensee.
3442          (3) Subject to Section 32B-1-201, the commission may not issue a total number of
3443     on-premise banquet licenses that at any time exceed the number determined by dividing the
3444     population of the state by 28,765.
3445          (4) Pursuant to a contract between the host of a banquet and an on-premise banquet
3446     licensee:
3447          (a) the host of the banquet may request an on-premise banquet licensee to provide an
3448     alcoholic product served at the banquet; and
3449          (b) an on-premise banquet licensee may provide an alcoholic product served at the
3450     banquet.
3451          (5) At a banquet, an on-premise banquet licensee may furnish an alcoholic product:
3452          (a) without charge to a patron at a banquet, except that the host of the banquet shall pay
3453     for an alcoholic product furnished at the banquet; or
3454          (b) with a charge to a patron at the banquet.
3455          Section 52. Section 32B-6-605 is amended to read:
3456          32B-6-605. Specific operational requirements for on-premise banquet license.
3457          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3458     Requirements, an on-premise banquet licensee and staff of the on-premise banquet licensee
3459     shall comply with this section.
3460          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
3461     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3462          (i) an on-premise banquet licensee;
3463          (ii) individual staff of an on-premise banquet licensee; or
3464          (iii) both an on-premise banquet licensee and staff of the on-premise banquet licensee.
3465          (2) An on-premise banquet licensee shall comply with Subsections 32B-5-301(4) and

3466     (5) for the entire premises of the hotel, resort facility, sports center, [or] convention center, or
3467     performing arts facility that is the basis for the on-premise banquet license.
3468          (3) (a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee
3469     shall provide the department with advance notice of a scheduled banquet in accordance with
3470     rules made by the commission.
3471          (b) Any of the following may conduct a random inspection of a banquet:
3472          (i) an authorized representative of the commission or the department; or
3473          (ii) a law enforcement officer.
3474          (4) (a) An on-premise banquet licensee is not subject to Section 32B-5-302, but shall
3475     make and maintain the records the commission or department requires.
3476          (b) Section 32B-1-205 applies to a record required to be made or maintained in
3477     accordance with this Subsection (4).
3478          (5) (a) Except as otherwise provided in this title, an on-premise banquet licensee may
3479     sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption at the
3480     location of the banquet.
3481          (b) A host of a banquet, a patron, or a person other than the on-premise banquet
3482     licensee or staff of the on-premise banquet licensee, may not remove an alcoholic product from
3483     the premises of the banquet.
3484          (c) Notwithstanding Section 32B-5-307, a patron at a banquet may not bring an
3485     alcoholic product into or onto, or remove an alcoholic product from, the premises of a banquet.
3486          (6) (a) An on-premise banquet licensee may not leave an unsold alcoholic product at
3487     the banquet following the conclusion of the banquet.
3488          (b) At the conclusion of a banquet, an on-premise banquet licensee shall:
3489          (i) destroy an opened and unused alcoholic product that is not saleable, under
3490     conditions established by the department; and
3491          (ii) return to the on-premise banquet licensee's approved locked storage area any:
3492          (A) opened and unused alcoholic product that is saleable; and
3493          (B) unopened container of an alcoholic product.
3494          (c) Except as provided in Subsection (6)(b) with regard to an open or sealed container
3495     of an alcoholic product not sold or consumed at a banquet, an on-premise banquet licensee:
3496          (i) shall store the alcoholic product in the on-premise banquet licensee's approved

3497     locked storage area; and
3498          (ii) may use the alcoholic product at more than one banquet.
3499          (7) Notwithstanding Section 32B-5-308, an on-premise banquet licensee may not
3500     employ a minor to sell, furnish, or dispense an alcoholic product in connection with the
3501     on-premise banquet licensee's banquet and room service activities.
3502          (8) An on-premise banquet licensee may not sell, offer for sale, or furnish an alcoholic
3503     product at a banquet or in connection with room service any day during a period that:
3504          (a) begins at 1 a.m.; and
3505          (b) ends at 9:59 a.m.
3506          (9) An on-premise banquet licensee shall maintain at least 50% of its total annual
3507     banquet gross receipts from the sale of food, not including:
3508          (a) mix for an alcoholic product; and
3509          (b) a charge in connection with the furnishing of an alcoholic product.
3510          (10) (a) Subject to the other provisions of this Subsection (10), a patron may not have
3511     more than two alcoholic products of any kind at a time before the patron.
3512          (b) A patron may not have more than one spirituous liquor drink at a time before the
3513     patron.
3514          (c) An individual portion of wine is considered to be one alcoholic product under
3515     Subsection (10)(a).
3516          (11) (a) An on-premise banquet licensee shall supervise and direct a person involved in
3517     the sale, offer for sale, or furnishing of an alcoholic product.
3518          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
3519     shall complete an alcohol training and education seminar.
3520          (12) A staff person of an on-premise banquet licensee shall remain at the banquet at all
3521     times when an alcoholic product is sold, offered for sale, furnished, or consumed at the
3522     banquet.
3523          (13) (a) Room service of an alcoholic product to a guest room of a hotel or resort
3524     facility shall be provided in person by staff of an on-premise banquet licensee only to an adult
3525     guest in the guest room.
3526          (b) An alcoholic product may not be left outside a guest room for retrieval by a guest.
3527          Section 53. Section 32B-6-703 is amended to read:

3528          32B-6-703. Commission's power to issue on-premise beer retailer license.
3529          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
3530     beer on the premises as an on-premise beer retailer, the person shall first obtain an on-premise
3531     beer retailer license from the commission in accordance with this part.
3532          (2) (a) The commission may issue an on-premise beer retailer license to establish
3533     on-premise beer retailer licensed premises at places and in numbers as the commission
3534     considers proper for the storage, sale, offer for sale, furnishing, and consumption of beer on
3535     premises operated as an on-premise beer retailer.
3536          (b) At the time that the commission issues an on-premise beer retailer license, the
3537     commission shall designate whether the on-premise beer retailer is a tavern.
3538          (c) The commission may change its designation of whether an on-premise beer retailer
3539     is a tavern in accordance with rules made by the commission.
3540          (d) (i) In determining whether an on-premise beer retailer is a tavern, the commission
3541     shall determine whether the on-premise beer retailer will engage primarily in the retail sale of
3542     beer for consumption on the establishment's premises.
3543          (ii) In making a determination under this Subsection (2)(d), the commission shall
3544     consider:
3545          (A) whether the on-premise beer retailer will operate as one of the following:
3546          (I) a beer bar;
3547          (II) a parlor;
3548          (III) a lounge;
3549          (IV) a cabaret; or
3550          (V) a nightclub;
3551          (B) if the on-premise beer retailer will operate as described in Subsection (2)(d)(ii)(A):
3552          (I) whether the on-premise beer retailer will sell food in the establishment; and
3553          (II) if the on-premise beer retailer sells food, whether the revenue from the sale of beer
3554     will exceed the revenue of the sale of food;
3555          (C) whether full meals including appetizers, main courses, and desserts will be served;
3556          (D) the square footage and seating capacity of the premises;
3557          (E) what portion of the square footage and seating capacity will be used for a dining
3558     area in comparison to the portion that will be used as a lounge or bar area;

3559          (F) whether the person will maintain adequate on-premise culinary facilities to prepare
3560     full meals, except a person that is located on the premises of a hotel or resort facility may use
3561     the culinary facilities of the hotel or resort facility;
3562          (G) whether the entertainment provided on the premises of the beer retailer will be
3563     suitable for minors; and
3564          (H) the beer retailer management's ability to manage and operate an on-premise beer
3565     retailer license including:
3566          (I) management experience;
3567          (II) past beer retailer management experience; and
3568          (III) the type of management scheme that will be used by the beer retailer.
3569          (e) On or after March 1, 2012:
3570          (i) To be licensed as an on-premise beer retailer that is not a tavern, a person shall:
3571          (A) maintain at least 70% of the person's total gross revenues from business directly
3572     related to a recreational amenity on or directly adjoining the licensed premises of the beer
3573     retailer, except that a person may include gross revenue from business directly related to a
3574     recreational amenity that is owned or operated by a political subdivision if the person has a
3575     contract meeting the requirements of Subsection (2)(e)(v) with the political subdivision; or
3576          (B) have a recreational amenity on or directly adjoining the licensed premises of the
3577     beer retailer and maintain at least 70% of the person's total gross revenues from the sale of
3578     food.
3579          (ii) The commission may not license a person as an on-premise beer retailer if the
3580     person does not:
3581          (A) meet the requirements of Subsection (2)(e)(i); or
3582          (B) operate as a tavern.
3583          [(iii) (A) A person licensed as an on-premise beer retailer that is not a tavern as of July
3584     1, 2011 shall notify the department by no later than August 1, 2011, whether effective March 1,
3585     2012, the person will seek to be licensed as a beer-only restaurant licensee, a tavern, or an
3586     on-premise beer retailer that meets the requirements of Subsection (2)(e)(i).]
3587          [(B) If an on-premise beer retailer fails to notify the department as required by
3588     Subsection (2)(e)(iii)(A), the on-premise beer retailer's license expires as of February 29, 2012,
3589     and to operate as an on-premise beer retailer after February 29, 2012, the on-premise beer

3590     retailer is required to apply as a new licensee, and any bar or bar structure on the premises of an
3591     on-premise beer retailer license that is not a tavern and does not meet the requirements of
3592     Subsection (2)(e)(i) will not be grandfathered under Subsection 32B-6-902(1).]
3593          [(iv)] (iii) A person who, after August 1, 2011, applies for an on-premise beer retailer
3594     license that is not a tavern and does not meet the requirements of Subsection (2)(e)(i), may not
3595     have or construct facilities for the dispensing or storage of an alcoholic product that do not
3596     meet the requirements of Subsection 32B-6-905(12)(a)(ii).
3597          [(v)] (iv) A contract described in Subsection (2)(e)(i)(A) shall:
3598          (A) allow the beer retailer to include the total gross revenue from operations of the
3599     recreational amenity in the beer retailer's total gross receipts for purposes of Subsection
3600     (2)(e)(i)(A); and
3601          (B) give the department the authority to audit financial information of the political
3602     subdivision to the extent necessary to confirm that the requirements of Subsection (2)(e)(i)(A)
3603     are met.
3604          (3) Subject to Section 32B-1-201:
3605          (a) The commission may not issue a total number of on-premise beer retailer licenses
3606     that are taverns that at any time exceeds the number determined by dividing the population of
3607     the state by 73,666.
3608          (b) The commission may issue a seasonal on-premise beer retailer license for a tavern
3609     in accordance with Section 32B-5-206.
3610          (4) (a) Unless otherwise provided in Subsection (4)(b):
3611          (i) only one on-premise beer retailer license is required for each building or resort
3612     facility owned or leased by the same person; and
3613          (ii) a separate license is not required for each retail beer dispensing location in the
3614     same building or on the same resort premises owned or operated by the same person.
3615          (b) (i) Subsection (4)(a) applies only if each retail beer dispensing location in the
3616     building or resort facility operates in the same manner.
3617          (ii) If each retail beer dispensing location does not operate in the same manner:
3618          (A) one on-premise beer retailer license designated as a tavern is required for the
3619     locations in the same building or on the same resort premises that operate as a tavern; and
3620          (B) one on-premise beer retailer license is required for the locations in the same

3621     building or on the same resort premises that do not operate as a tavern.
3622          Section 54. Section 32B-6-706 is amended to read:
3623          32B-6-706. Specific operational requirements for on-premise beer retailer license.
3624          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3625     Requirements, an on-premise beer retailer and staff of the on-premise beer retailer shall comply
3626     with this section.
3627          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
3628     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3629          (i) an on-premise beer retailer;
3630          (ii) individual staff of an on-premise beer retailer; or
3631          (iii) both an on-premise beer retailer and staff of the on-premise beer retailer.
3632          (2) (a) An on-premise beer retailer is not subject to Section 32B-5-302, but shall make
3633     and maintain the records the department requires.
3634          (b) Section 32B-1-205 applies to a record required to be made or maintained in
3635     accordance with this Subsection (2).
3636          (3) Notwithstanding Section 32B-5-303, an on-premise beer retailer may not store or
3637     sell liquor on its licensed premises.
3638          (4) Beer sold in a sealed container by an on-premise beer retailer may be removed from
3639     the on-premise beer retailer premises in the sealed container.
3640          (5) (a) An on-premise beer retailer may not sell, offer for sale, or furnish beer at its
3641     licensed premises during a period that:
3642          (i) begins at 1 a.m.; and
3643          (ii) ends at 9:59 a.m.
3644          (b) (i) Notwithstanding Subsection (5)(a), a tavern shall remain open for one hour after
3645     the tavern ceases the sale and furnishing of beer during which time a patron of the tavern may
3646     finish consuming a single serving of beer not exceeding 26 ounces.
3647          (ii) A tavern is not required to remain open:
3648          (A) after all patrons have vacated the premises; or
3649          (B) during an emergency.
3650          (6) Notwithstanding Section 32B-5-308, a minor may not be on the premises of a
3651     tavern.

3652          (7) (a) (i) An on-premise beer retailer may not purchase, acquire, possess for the
3653     purpose of resale, or sell beer except beer that the on-premise beer retailer lawfully purchases
3654     from:
3655          (A) a beer wholesaler licensee; or
3656          (B) a small brewer that manufactures the beer.
3657          (ii) Violation of Subsection (7)(a)(i) is a class A misdemeanor.
3658          (b) (i) If an on-premise beer retailer purchases beer under this Subsection (7) from a
3659     beer wholesaler licensee, the on-premise beer retailer shall purchase beer only from a beer
3660     wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area
3661     in which the [off-premise] on-premise beer retailer is located, unless an alternate wholesaler is
3662     authorized by the department to sell to the [off-premise] on-premise beer retailer as provided in
3663     Section 32B-13-301.
3664          (ii) Violation of Subsection (7)(b)(i) is a class B misdemeanor.
3665          (8) A tavern shall comply with Section 32B-1-407.
3666          Section 55. Section 32B-6-902 is amended to read:
3667          32B-6-902. Definitions.
3668          (1) As used in this part:
3669          (a) (i) "Dining area" means an area in the licensed premises of a beer-only restaurant
3670     licensee that is primarily used for the service and consumption of food by one or more patrons.
3671          (ii) "Dining area" does not include a dispensing area.
3672          (b) (i) "Dispensing area" means an area in the licensed premises of a beer-only
3673     restaurant licensee where a dispensing structure is located and that:
3674          (A) is physically separated from the dining area and any waiting area by a structure or
3675     other barrier that prevents a patron seated in the dining area or a waiting area from viewing the
3676     dispensing of beer;
3677          (B) except as provided in Subsection (1)(b)(ii), measures at least 10 feet from any area
3678     where beer is dispensed to the dining area and any waiting area, measured from the point of the
3679     area where beer is dispensed that is closest to the dining area or waiting area; or
3680          (C) is physically separated from the dining area and any waiting area by a permanent
3681     physical structure that measures at least 42 inches high, and at least 72 inches from the outer
3682     edge of the barrier to the nearest edge of the dispensing structure.

3683          (ii) "Dispensing area" does not include any area described in Subsection (2)(a)(i)(B)
3684     that is less than 10 feet from an area where alcoholic product is dispensed, but from which a
3685     patron seated at a table or counter cannot view the dispensing of alcoholic product.
3686          [(1) (a) As used in this part, "grandfathered]
3687          (c) "Grandfathered bar structure" means a bar structure in a licensed premises of a
3688     beer-only restaurant licensee that:
3689          (i) was licensed as an on-premise beer retailer as of August 1, 2011, and as of August
3690     1, 2011:
3691          (A) is operational;
3692          (B) has facilities for the dispensing or storage of an alcoholic product that do not meet
3693     the requirements of Subsection 32B-6-905(12)(a)(ii); and
3694          (C) in accordance with Subsection 32B-6-703(2)(e), notifies the department that
3695     effective March 1, 2012, the on-premise beer retailer licensee will seek to be licensed as a
3696     beer-only restaurant; or
3697          (ii) is a bar structure grandfathered under Section 32B-6-409.
3698          [(b)] (d) "Grandfathered bar structure" does not include a grandfathered bar structure
3699     described in Subsection (1)(a) on or after the day on which a restaurant remodels the
3700     grandfathered bar structure, as defined by rule made by the commission.
3701          (e) "Waiting area" includes a lobby.
3702          (2) Subject to Subsection (1)[(b)](d), a grandfathered bar structure remains a
3703     grandfathered bar structure notwithstanding whether a restaurant undergoes a change of
3704     ownership.
3705          Section 56. Section 32B-6-905 is amended to read:
3706          32B-6-905. Specific operational requirements for a beer-only restaurant license --
3707     Before July 1, 2018 or July 1, 2022.
3708          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3709     Requirements, a beer-only restaurant licensee and staff of the beer-only restaurant licensee
3710     shall comply with this section.
3711          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
3712     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3713          (i) a beer-only restaurant licensee;

3714          (ii) individual staff of a beer-only restaurant licensee; or
3715          (iii) both a beer-only restaurant licensee and staff of the beer-only restaurant licensee.
3716          (2) (a) A beer-only restaurant licensee on the licensed premises may not sell, offer for
3717     sale, furnish, or allow consumption of liquor.
3718          (b) Liquor may not be on the premises of a beer-only restaurant licensee except for use:
3719          (i) as a flavoring on a dessert; and
3720          (ii) in the preparation of a flaming food dish, drink, or dessert.
3721          (3) In addition to complying with Section 32B-5-303, a beer-only restaurant licensee
3722     shall store beer in a storage area described in Subsection (12)(a).
3723          (4) (a) An individual who serves beer in a beer-only restaurant licensee's premises shall
3724     make a written beverage tab for each table or group that orders or consumes an alcoholic
3725     product on the premises.
3726          (b) A beverage tab required by this Subsection (4) shall list the type and amount of
3727     beer ordered or consumed.
3728          (5) A person's willingness to serve beer may not be made a condition of employment as
3729     a server with a beer-only restaurant licensee.
3730          (6) A beer-only restaurant licensee may sell, offer for sale, or furnish beer during the
3731     hours specified in Part 7, On-Premise Beer Retailer License, for an on-premise beer retailer,
3732     except that a beer-only restaurant licensee may not sell, offer for sale, or furnish beer before
3733     11:30 a.m. on any day.
3734          (7) A beer-only restaurant licensee shall maintain at least 70% of its total restaurant
3735     business from the sale of food, which does not include a service charge.
3736          (8) (a) A beer-only restaurant may not sell, offer for sale, or furnish beer except after
3737     the beer-only restaurant licensee confirms that the patron has the intent to order food prepared,
3738     sold, and furnished at the licensed premises.
3739          (b) A beer-only restaurant shall maintain on the licensed premises adequate culinary
3740     facilities for food preparation and dining accommodations.
3741          (9) A patron may not have more than two beers at a time before the patron.
3742          (10) A patron may consume a beer only: (a) at:
3743          (i) the patron's table;
3744          (ii) a grandfathered bar structure; or

3745          (iii) a counter; and
3746          (b) where food is served.
3747          (11) (a) A beer-only restaurant licensee may not sell, offer for sale, or furnish a beer to
3748     a patron, and a patron may not consume an alcoholic product at a bar structure.
3749          (b) Notwithstanding Subsection (11)(a), at a grandfathered bar structure, a patron who
3750     is 21 years of age or older may:
3751          (i) sit;
3752          (ii) be furnished a beer; and
3753          (iii) consume a beer.
3754          (c) Except as provided in Subsection (11)(d), at a grandfathered bar structure, a
3755     beer-only restaurant licensee may not permit a minor to, and a minor may not:
3756          (i) sit; or
3757          (ii) consume food or beverages.
3758          (d) (i) A minor may be at a grandfathered bar structure if the minor is employed by a
3759     beer-only restaurant licensee:
3760          (A) as provided in Subsection 32B-5-308(2); or
3761          (B) to perform maintenance and cleaning services during an hour when the beer-only
3762     restaurant licensee is not open for business.
3763          (ii) A minor may momentarily pass by a grandfathered bar structure without
3764     remaining or sitting at the bar structure en route to an area of a beer-only restaurant licensee's
3765     premises in which the minor is permitted to be.
3766          (12) A beer-only restaurant licensee may dispense a beer only if:
3767          (a) the beer is dispensed from an area that is:
3768          (i) a grandfathered bar structure; or
3769          (ii) separated from an area for the consumption of food by a patron by a solid,
3770     translucent, permanent structural barrier such that the facilities for the storage or dispensing of
3771     an alcoholic product are not readily visible to a patron, not accessible by a patron, and apart
3772     from an area used for dining, for staging, or as a lobby or waiting area;
3773          (b) the beer-only restaurant licensee uses a beer that is:
3774          (i) stored in an area described in Subsection (12)(a); or
3775          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:

3776          (A) immediately before the beer is dispensed it is in an unopened container;
3777          (B) the unopened container is taken to an area described in Subsection (12)(a) before it
3778     is opened; and
3779          (C) once opened, the container is stored in an area described in Subsection (12)(a) ; and
3780          (c) any instrument or equipment used to dispense the beer is located in an area
3781     described in Subsection (12)(a).
3782          (13) Beginning on July 1, 2018, a minor may not sit, remain, or consume food or
3783     beverages within 10 feet of a grandfathered bar structure, unless:
3784          (a) seating within 10 feet of the grandfathered bar structure is the only seating available
3785     in the licensed premises; and
3786          (b) the minor is accompanied by an individual who is 21 years of age or older.
3787          (14) Except as provided in Subsection 32B-6-905.1(18) and Section 32B-6-905.2, the
3788     provisions of this section apply before July 1, 2018.
3789          Section 57. Section 32B-6-905.1 is enacted to read:
3790          32B-6-905.1. Specific operational requirements for a beer-only restaurant license
3791     -- On and after July 1, 2018 or July 1, 2022.
3792          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3793     Requirements, a beer-only restaurant licensee and staff of the beer-only restaurant licensee
3794     shall comply with this section.
3795          (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in
3796     accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3797          (i) a beer-only restaurant licensee;
3798          (ii) individual staff of a beer-only restaurant licensee; or
3799          (iii) both a beer-only restaurant licensee and staff of the beer-only restaurant licensee.
3800          (2) (a) A beer-only restaurant licensee on the licensed premises may not sell, offer for
3801     sale, furnish, or allow consumption of liquor.
3802          (b) Liquor may not be on the premises of a beer-only restaurant licensee except for use:
3803          (i) as a flavoring on a dessert; and
3804          (ii) in the preparation of a flaming food dish, drink, or dessert.
3805          (3) In addition to complying with Section 32B-5-303, a beer-only restaurant licensee
3806     shall store beer in a storage area described in Subsection (13)(a).

3807          (4) (a) An individual who serves beer in a beer-only restaurant licensee's premises shall
3808     make a beverage tab for each table or group that orders or consumes an alcoholic product on
3809     the premises.
3810          (b) A beverage tab described in this Subsection (4) shall state the type and amount of
3811     each alcoholic product ordered or consumed.
3812          (5) A beer-only restaurant licensee may not make an individual's willingness to serve
3813     beer a condition of employment as a server with a beer-only restaurant licensee.
3814          (6) A beer-only restaurant licensee may sell, offer for sale, or furnish beer at the
3815     licensed premises during the following time periods only:
3816          (a) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
3817          (b) on a weekend or a state or federal legal holiday, during the period that begins at
3818     10:30 a.m. and ends at 12:59 a.m.
3819          (7) A beer-only restaurant licensee shall maintain at least 70% of the beer-only
3820     restaurant licensee's total restaurant business from the sale of food, which does not include a
3821     service charge.
3822          (8) (a) A beer-only restaurant licensee may not sell, offer for sale, or furnish beer
3823     except after:
3824          (i) the patron to whom the beer-only restaurant licensee sells, offers for sale, or
3825     furnishes the beer is seated at:
3826          (A) a table that is located in a dining area or a dispensing area;
3827          (B) a counter that is located in a dining area or a dispensing area; or
3828          (C) a dispensing structure that is located in a dispensing area; and
3829          (ii) the beer-only restaurant licensee confirms that the patron intents to:
3830          (A) order food prepared, sold, and furnished at the licensed premises; and
3831          (B) except as provided in Subsection (8)(b), consume the food at the same location
3832     where the patron is seated and sold, offered for sale, or furnished the beer.
3833          (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
3834     beer-only restaurant licensee, the beer-only restaurant licensee may sell, offer for sale, or
3835     furnish to the patron one portion of beer as described in Section 32B-5-304 if:
3836          (A) the patron is seated at a table, counter, or dispensing structure located in a
3837     dispensing area; and

3838          (B) the beer-only restaurant licensee first confirms that after the patron is seated in the
3839     dining area, the patron intends to order food prepared, sold, and furnished at the licensed
3840     premises.
3841          (ii) If the patron does not finish the patron's beer before moving to a seat in the dining
3842     area, an employee of the beer-only restaurant licensee who is qualified to sell and serve an
3843     alcoholic product under Section 32B-5-306 shall transport any unfinished portion of the
3844     patron's beer to the patron's seat in the dining area.
3845          (c) A beer-only restaurant licensee shall maintain on the licensed premises adequate
3846     culinary facilities for food preparation and dining accommodations.
3847          (9) A patron may consume a beer only at:
3848          (a) a table that is located in a dining area or a dispensing area;
3849          (b) a counter that is located in a dining area or a dispensing area; or
3850          (c) a dispensing structure located in a dispensing area.
3851          (10) A patron may not have more than two beers at a time before the patron.
3852          (11) In accordance with the provisions of this section, an individual who is at least 21
3853     years of age may consume food and beverages in a dispensing area.
3854          (12) (a) Except as provided in Subsection (12)(b), a minor may not sit, remain, or
3855     consume food or beverages in a dispensing area.
3856          (b) (i) A minor may be in a dispensing area if the minor is employed by the beer-only
3857     restaurant licensee:
3858          (A) in accordance with Subsection 32B-5-308(2); or
3859          (B) to perform maintenance and cleaning services when the beer-only restaurant
3860     licensee is not open for business.
3861          (ii) If there is no alternative route available, a minor may momentarily pass through a
3862     dispensing area without remaining or sitting in the dispensing area en route to an area of the
3863     beer-only restaurant licensee's premises in which the minor is permitted to be.
3864          (13) A beer-only restaurant licensee may dispense a beer only if:
3865          (a) the beer is dispensed from:
3866          (i) a dispensing structure that is located in a dispensing area; or
3867          (ii) an area that is:
3868          (A) separated from an area for the consumption of food by a patron by a solid,

3869     translucent, permanent structural barrier such that the facilities for the storage or dispensing of
3870     an alcoholic product are not readily visible to a patron, not accessible by a patron; and
3871          (B) apart from an area used for dining, for staging, or as a lobby or waiting area;
3872          (b) the beer-only restaurant licensee uses a beer that is stored in an area described in
3873     Subsection (13)(a) or in accordance with Section 32B-5-303; and
3874          (c) any instrument or equipment used to dispense the beer is located in an area
3875     described in Subsection (13)(a).
3876          (14) (a) A beer-only restaurant licensee may have more than one dispensing area in the
3877     licensed premises.
3878          (b) Each dispensing area in a licensed premises may satisfy the requirements for a
3879     dispensing area under Subsection 32B-6-202(1)(b)(i)(A), (B), or (C), regardless of how any
3880     other dispensing area in the licensed premises satisfies the requirements for a dispensing area.
3881          (15) A beer-only restaurant licensee may not transfer, dispense, or serve beer on or
3882     from a movable cart.
3883          (16) (a) In addition to the requirements described in Section 32B-5-302, a beer-only
3884     restaurant licensee shall maintain each of the following records for at least three years:
3885          (i) a record required by Section 32B-5-302; and
3886          (ii) a record that the commission requires a beer-only restaurant licensee to use or
3887     maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
3888     Rulemaking Act.
3889          (b) The department shall audit the records of a beer-only restaurant licensee at least
3890     once each calendar year.
3891          (17) A beer-only restaurant licensee shall display in a conspicuous place at the entrance
3892     to the licensed premises a sign approved by the commission that:
3893          (a) measures at least 8-1/2 inches long and 11 inches wide; and
3894          (b) clearly states that the beer-only restaurant licensee is a restaurant and not a bar.
3895          (18) (a) In accordance with Section 32B-6-905.2, a beer-only restaurant licensee:
3896          (i) may comply with the provisions of this section beginning on or after July 1, 2017;
3897     and
3898          (ii) shall comply with the provisions of this section:
3899          (A) for a beer-only restaurant licensee that does not have a grandfathered bar structure,

3900     on and after July 1, 2018; or
3901          (B) for a beer-only restaurant licensee that has a grandfathered bar structure, on and
3902     after July 1, 2022.
3903          (b) A beer-only restaurant licensee that elects to comply with the provisions of this
3904     section before the latest applicable date described in Subsection (18)(a)(ii):
3905          (i) shall comply with each provision of this section; and
3906          (ii) is not required to comply with the provisions of Section 32B-6-905.
3907          Section 58. Section 32B-6-905.2 is enacted to read:
3908          32B-6-905.2. Transition process for beer-only restaurant licensees.
3909          (1) For a beer-only restaurant license issued on or after July 1, 2017, the beer-only
3910     restaurant licensee shall comply with the provisions of Section 32B-6-905.1.
3911          (2) For a beer-only restaurant license issued before July 1, 2017, before the beer-only
3912     restaurant licensee changes the beer-only restaurant licensee's approved location for storage,
3913     dispensing, or consumption to comply with the provisions of Section 32B-6-901.1, the
3914     beer-only restaurant licensee shall submit an application for approval to the department in
3915     accordance with Subsection 32B-5-303(3).
3916          (3) (a) Except as provided in Subsection (4), a person who holds a beer-only restaurant
3917     license issued before July 1, 2017, shall comply with the provisions of Section 32B-6-901.1 on
3918     or before July 1, 2018.
3919          (b) A beer-only restaurant licensee described in Subsection (3)(a) that cannot comply
3920     with the provisions of Section 32B-6-901.1 without a change to the beer-only restaurant
3921     licensee's approved location for storage, dispensing, or consumption:
3922          (i) may submit an application for approval described in Subsection (2) on or after May
3923     9, 2017; and
3924          (ii) shall submit an application for approval described in Subsection (2) on or before
3925     May 1, 2018.
3926          (c) If a beer-only restaurant licensee described in Subsection (3)(a) submits an
3927     application for approval described in Subsection (2) on May 9, 2017, the department shall take
3928     action on the application on or before July 1, 2017.
3929          (4) (a) A person who holds a beer-only restaurant license issued before July 1, 2017,
3930     and has a grandfathered bar structure shall comply with the provisions of Section 32B-6-901.1

3931     on or before the earlier of:
3932          (i) July 1, 2022;
3933          (ii) the date on which the beer-only restaurant licensee remodels, as defined by
3934     commission rule made in accordance with Title 63G, Chapter 3, Utah Administrative
3935     Rulemaking Act, the beer-only restaurant licensee's grandfathered bar structure or dining area;
3936     or
3937          (iii) the date on which the beer-only restaurant licensee experiences a change of
3938     ownership described in Subsection 32B-8a-202(1).
3939          (b) A beer-only restaurant licensee described in Subsection (4)(a) that cannot comply
3940     with the provisions of Section 32B-6-901.1 without a change to the beer-only restaurant
3941     licensee's approved location for storage, dispensing, or consumption:
3942          (i) may submit an application for approval described in Subsection (2) on or after May
3943     9, 2017; and
3944          (ii) shall submit an application for approval described in Subsection (2) on or before
3945     May 1, 2022.
3946          Section 59. Section 32B-7-202 is amended to read:
3947          32B-7-202. General operational requirements for off-premise beer retailer.
3948          (1) (a) An off-premise beer retailer or staff of the off-premise beer retailer shall comply
3949     with [this section] the provisions of this title and any applicable rules made by the commission.
3950          (b) Failure to comply with this section may result in a suspension or revocation of a
3951     local license and, on or after July 1, 2018, disciplinary action in accordance with Chapter 3,
3952     Disciplinary Actions and Enforcement Act.
3953          (2) (a) (i) An off-premise beer retailer may not purchase, acquire, possess for the
3954     purpose of resale, or sell beer, except beer that the off-premise beer retailer lawfully purchases
3955     from:
3956          (A) a beer wholesaler licensee; or
3957          (B) a small brewer that manufactures the beer.
3958          (ii) A violation of Subsection (2)(a) is a class A misdemeanor.
3959          (b) (i) If an off-premise beer retailer purchases beer under this Subsection (2) from a
3960     beer wholesaler licensee, the off-premise beer retailer shall purchase beer only from a beer
3961     wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area

3962     in which the off-premise beer retailer is located, unless an alternate wholesaler is authorized by
3963     the department to sell to the off-premise beer retailer as provided in Section 32B-13-301.
3964          (ii) A violation of Subsection (2)(b) is a class B misdemeanor.
3965          (3) An off-premise beer retailer may not possess, sell, offer for sale, or furnish beer in a
3966     container larger than two liters.
3967          (4) A minor may not sell beer on the licensed premises of an off-premise beer retailer
3968     unless:
3969          (a) the sale is done under the supervision of a person 21 years of age or older who is on
3970     the licensed premises; and
3971          (b) the minor is at least 16 years of age.
3972          (5) (a) Subject to the other provisions of this Subsection (5), an off-premise beer
3973     retailer shall:
3974          (i) display all beer sold by the off-premise beer retailer in [an area that is visibly
3975     separate and distinct from the area where nonalcoholic beverages are displayed; and] no more
3976     than two locations on the retail sales floor, each of which is:
3977          (A) a display cabinet, cooler, aisle, floor display, or room where beer is the only
3978     beverage displayed; and
3979          (B) not adjacent to a display of nonalcoholic beverages, unless the location is a cooler
3980     with a door or the beer is separated from the display of nonalcoholic beverages by a display of
3981     one or more nonbeverage products or another physical divider; and
3982          (ii) display a sign in the area described in Subsection (5)(a)(i) that:
3983          (A) is prominent;
3984          (B) is easily readable by a consumer;
3985          (C) meets the requirements for format established by the commission by rule; and
3986          (D) reads in print that is no smaller than .5 inches, bold type, "These beverages contain
3987     alcohol. Please read the label carefully."
3988          (b) Notwithstanding Subsection (5)(a), a nonalcoholic beer may be displayed with beer
3989     if the nonalcoholic beer is labeled, packaged, or advertised as a nonalcoholic beer.
3990          (c) The requirements of this Subsection (5) apply to beer notwithstanding that it is
3991     labeled, packaged, or advertised as:
3992          (i) a malt cooler; or

3993          (ii) a beverage that may provide energy.
3994          [(d) The commission shall define by rule what constitutes an "area that is visibly
3995     separate and distinct from the area where a nonalcoholic beverage is displayed."]
3996          [(e)] (d) A violation of this Subsection (5) is an infraction.
3997          (6) (a) Staff of an off-premise beer retailer who directly supervises the sale of beer or
3998     who sells beer to a patron for consumption off the premises of the off-premise beer retailer
3999     shall wear a unique identification badge:
4000          (i) on the front of the staff's clothing;
4001          (ii) visible above the waist;
4002          (iii) bearing the staff's:
4003          (A) first or last name;
4004          (B) initials; or
4005          (C) unique identification in letters or numbers; and
4006          (iv) with the number or letters on the unique identification badge being sufficiently
4007     large to be clearly visible and identifiable while engaging in or directly supervising the retail
4008     sale of beer.
4009          (b) An off-premise beer retailer shall make and maintain a record of each current staff's
4010     unique identification badge assigned by the off-premise beer retailer that includes the staff's:
4011          (i) full name;
4012          (ii) address; and
4013          (iii) (A) driver license number; or
4014          (B) similar identification number.
4015          (c) An off-premise beer retailer shall make available a record required to be made or
4016     maintained under this Subsection (6) for immediate inspection by:
4017          (i) a peace officer; [or]
4018          (ii) a representative of the local authority that issues the off-premise beer retailer
4019     license[.]; or
4020          (iii) for an off-premise beer retailer state license, a representative of the commission or
4021     department.
4022          (d) A local authority may impose a fine of up to $250 against an off-premise beer
4023     retailer that does not comply or require its staff to comply with this Subsection (6).

4024          Section 60. Section 32B-7-305 is amended to read:
4025          32B-7-305. Tracking of enforcement actions -- Costs of enforcement actions.
4026          (1) A local authority that pursuant to this part adjudicates an administrative penalty for
4027     a violation of a law involving the sale of an alcoholic product to a minor, shall:
4028          (a) maintain a record of an adjudicated violation until the record is expunged under
4029     Subsection (3);
4030          (b) include in the record described in Subsection (1)(a):
4031          (i) the name of the individual who commits the violation;
4032          (ii) the name of the off-premise beer retailer for whom the individual is a staff member
4033     at the time of the violation; and
4034          (iii) the date of the adjudication of the violation; and
4035          (c) provide the information described in Subsection (1)(b) to [the Highway Safety
4036     Office of] the Department of Public Safety within 30 days of the date on which a violation is
4037     adjudicated.
4038          (2) (a) The [Highway Safety Office] Department of Public Safety shall develop and
4039     operate a system to collect, analyze, maintain, track, and disseminate the violation history
4040     information received under Subsection (1).
4041          (b) The [Highway Safety Office] Department of Public Safety shall make the system
4042     described in Subsection (2)(a) available to:
4043          (i) assist a local authority in assessing administrative penalties under Section
4044     32B-7-303; and
4045          (ii) inform an off-premise beer retailer of an individual who has an administrative
4046     violation history under Section 32B-7-303.
4047          (c) The [Highway Safety Office] Department of Public Safety shall maintain a record
4048     of violation history information received pursuant to Subsection (1) until the record is
4049     expunged under Subsection (3).
4050          (3) (a) A local authority and the [Highway Safety Office] Department of Public Safety
4051     shall expunge from the records maintained an administrative penalty imposed under Section
4052     32B-7-303 for purposes of determining future administrative penalties under Section
4053     32B-7-303 if the individual has not been found in violation of any law involving the sale of an
4054     alcoholic product to a minor for a period of 36 consecutive months from the day on which the

4055     individual is last adjudicated as violating a law involving the sale of an alcoholic product to a
4056     minor.
4057          (b) A local authority shall expunge from the records maintained by the local authority
4058     an administrative penalty imposed under Section 32B-7-303 against an off-premise beer
4059     retailer for purposes of determining future administrative penalties under Section 32B-7-303 if
4060     the off-premise beer retailer or any staff of that off-premise beer retailer has not been found in
4061     violation of any law involving the sale of an alcoholic product to a minor for a period of 36
4062     consecutive months from the day on which the off-premise beer retailer or staff of the
4063     off-premise beer retailer is last adjudicated as violating a law involving the sale of an alcoholic
4064     product to a minor.
4065          (4) The [Highway Safety Office] Department of Public Safety shall administer a
4066     program to reimburse a municipal or county law enforcement agency:
4067          (a) for the actual costs of an alcohol-related compliance check investigation conducted
4068     pursuant to Section 77-39-101 on the premises of an off-premise beer retailer;
4069          (b) for administrative costs associated with reporting the compliance check
4070     investigation described in Subsection (4)(a);
4071          (c) if the municipal or county law enforcement agency completes and submits to the
4072     [Highway Safety Office] Department of Public Safety a report within 90 days of the
4073     compliance check investigation described in Subsection (4)(a) in a format required by the
4074     [Highway Safety Office] Department of Public Safety; and
4075          (d) in the order that the municipal or county law enforcement agency submits the report
4076     required by Subsection (4)(c) until the amount allocated by the [Highway Safety Office]
4077     Department of Public Safety to reimburse a municipal or county law enforcement agency is
4078     spent.
4079          (5) The [Highway Safety Office] Department of Public Safety shall report to the Utah
4080     Substance Abuse Advisory Council by no later than October 1 following a fiscal year on the
4081     following funded during the prior fiscal year:
4082          (a) compliance check investigations reimbursed under Subsection (4); and
4083          (b) the collection, analysis, maintenance, tracking, and dissemination of violation
4084     history information described in Subsection (2).
4085          Section 61. Section 32B-7-401 is enacted to read:

4086     
Part 4. Off-Premise Beer Retailer State License

4087          32B-7-401. Commission's power to issue off-premise beer retailer state license.
4088          (1) Beginning on July 1, 2018, and except as provided in Subsection (3), before a
4089     person may purchase, store, sell, or offer for sale beer for consumption off the person's
4090     premises, the person shall obtain an off-premise beer retailer state license in accordance with
4091     this part.
4092          (2) The commission may issue an off-premise beer retailer state license for the retail
4093     sale of beer for consumption off the beer retailer's premises.
4094          (3) (a) A person who operates as an off-premise beer retailer on July 1, 2018, shall
4095     obtain an off-premise beer retailer state license on or before March 1, 2019.
4096          (b) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
4097     the commission shall establish a deadline for each off-premise beer retailer described in
4098     Subsection (3)(a) to submit to the department an application for an off-premise beer retailer
4099     state license.
4100          (ii) The commission shall act upon each timely application submitted in accordance
4101     with this Subsection (3) on or before February 28, 2019.
4102          (c) An off-premise beer retailer described in Subsection (3)(a) may continue to operate
4103     without an off-premise beer retailer state license through February 28, 2019.
4104          Section 62. Section 32B-7-402 is enacted to read:
4105          32B-7-402. Application for off-premise beer retailer state license -- Qualifications.
4106          To obtain an off-premise beer retailer state license, a person shall submit to the
4107     department:
4108          (1) a written application in a form prescribed by the department;
4109          (2) a nonrefundable application fee of $75;
4110          (3) an initial license fee of $250 that is refundable if the commission does not issue the
4111     off-premise beer retailer state license;
4112          (4) written consent of the local authority;
4113          (5) a copy of the person's current business license;
4114          (6) a floor plan of the premises that outlines the location of each beer display;
4115          (7) a signed consent form stating the person will permit any authorized representative
4116     of the commission or the department or any law enforcement officer to have unrestricted right

4117     to enter the licensed premises;
4118          (8) if the person is an entity, property verification evidencing that the individual who
4119     signs the application is authorized to sign on behalf of the entity; and
4120          (9) any other information that the commission or department requires.
4121          Section 63. Section 32B-7-403 is enacted to read:
4122          32B-7-403. Renewal of off-premise beer retailer state license.
4123          (1) An off-premise beer retailer state license expires on the last day of February each
4124     year.
4125          (2) To renew an off-premise beer retailer state license, an off-premise beer retailer state
4126     licensee shall, no later than January 31, submit:
4127          (a) a completed renewal application to the department in a form prescribed by the
4128     department; and
4129          (b) a renewal fee of $175.
4130          (3) An off-premise beer retailer state licensee automatically forfeits the off-premise
4131     beer retailer state license if the off-premise beer retailer state licensee fails to satisfy the
4132     renewal requirements described in this section.
4133          Section 64. Section 32B-7-404 is enacted to read:
4134          32B-7-404. Duties of commission and department before issuing off-premise beer
4135     retailer state license.
4136          (1) (a) Before the commission issues an off-premise beer retailer state license, the
4137     department shall conduct an investigation and may hold one or more public hearings to gather
4138     information and make recommendations to the commission regarding whether the commission
4139     should issue an off-premise beer retailer state license.
4140          (b) The department shall forward the information the department gathers and the
4141     department's recommendations to the commission.
4142          (2) Before the commission issues an off-premise beer retailer state license, the
4143     commission shall:
4144          (a) determine that the person filed a complete application and is in compliance with the
4145     provisions of this chapter;
4146          (b) determine that the person is not disqualified under Section 32B-1-304;
4147          (c) consider the physical characteristics of the premises where the beer is displayed;

4148     and
4149          (d) consider any other factor that the commission considers necessary.
4150          Section 65. Section 32B-7-405 is enacted to read:
4151          32B-7-405. Notifying department of change of ownership.
4152          The commission may suspend or revoke an off-premise beer retailer state license if an
4153     off-premise beer retailer state licensee does not immediately notify the department of a change
4154     in:
4155          (1) ownership of the licensee's business;
4156          (2) for a corporate owner, a shareholder holding at least 20% of the total issued and
4157     outstanding stock of the corporation; or
4158          (3) for a limited liability company, a member owning at least 20% of the limited
4159     liability company.
4160          Section 66. Section 32B-8-102 is amended to read:
4161          32B-8-102. Definitions.
4162          As used in this chapter:
4163          (1) "Boundary of a resort building" means the physical boundary of the land reasonably
4164     related to a resort building and any structure or improvement to that land as determined by the
4165     commission.
4166          (2) "Dwelling" means a portion of a resort building:
4167          (a) owned by one or more individuals;
4168          (b) that is used or designated for use as a residence by one or more persons; and
4169          (c) that may be rented, loaned, leased, or hired out for a period of no longer than 30
4170     consecutive days by a person who uses it for a residence.
4171          (3) "Engaged in the management of the resort" may be defined by the commission by
4172     rule.
4173          (4) "Invitee" means an individual who in accordance with Subsection 32B-8-304(11) is
4174     authorized to use a resort spa by a host who is:
4175          (a) a resident; or
4176          (b) a public customer.
4177          (5) "Provisions applicable to a sublicense" means:
4178          (a) for a full-service restaurant sublicense, Chapter 6, Part 2, Full-Service Restaurant

4179     License;
4180          (b) for a limited-service restaurant sublicense, Chapter 6, Part 3, Limited-Service
4181     Restaurant License;
4182          (c) for a [club] bar establishment sublicense, Chapter 6, Part 4, [Club] Bar
4183     Establishment License;
4184          (d) for an on-premise banquet sublicense, Chapter 6, Part 6, On-Premise Banquet
4185     License;
4186          (e) for an on-premise beer retailer sublicense, Chapter 6, Part 7, On-Premise Beer
4187     Retailer License; and
4188          (f) for a resort spa sublicense, Part 3, Resort Spa Sublicense.
4189          (6) "Public customer" means an individual who holds a customer card in accordance
4190     with Subsection 32B-8-304(12).
4191          (7) "Resident" means an individual who:
4192          (a) owns a dwelling located within a resort building; or
4193          (b) rents lodging accommodations for 30 consecutive days or less from:
4194          (i) an owner of a dwelling described in Subsection (7)(a); or
4195          (ii) the resort licensee.
4196          (8) "Resort" means a location:
4197          (a) on which is located one resort building; and
4198          (b) that is affiliated with a ski area that physically touches the boundary of the resort
4199     building.
4200          (9) "Resort building" means a building:
4201          (a) that is primarily operated to provide dwellings or lodging accommodations;
4202          (b) that has at least 150 units that consist of a dwelling or lodging accommodations;
4203          (c) that consists of at least 400,000 square feet:
4204          (i) including only the building itself; and
4205          (ii) not including areas such as above ground surface parking; and
4206          (d) of which at least 50% of the units described in Subsection (9)(b) consist of
4207     dwellings owned by a person other than the resort licensee.
4208          (10) "Resort spa" means a spa, as defined by rule by the commission, that is within the
4209     boundary of a resort building.

4210          (11) "Sublicense" means:
4211          (a) a full-service restaurant sublicense;
4212          (b) a limited-service restaurant sublicense;
4213          (c) a [club] bar establishment sublicense;
4214          (d) an on-premise banquet sublicense;
4215          (e) an on-premise beer retailer sublicense; and
4216          (f) a resort spa sublicense.
4217          (12) "Sublicense premises" means a building, enclosure, or room used pursuant to a
4218     sublicense in connection with the storage, sale, furnishing, or consumption of an alcoholic
4219     product, unless otherwise defined in this title or in the rules made by the commission.
4220          Section 67. Section 32B-8-304 is amended to read:
4221          32B-8-304. Specific operational requirements for resort spa sublicense.
4222          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
4223     Requirements, a resort licensee, staff of the resort licensee, or a person otherwise related to a
4224     resort spa sublicense shall comply with this section.
4225          (b) Subject to Section 32B-8-502, failure to comply as provided in Subsection (1)(a)
4226     may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
4227     Enforcement Act, against:
4228          (i) a retail licensee;
4229          (ii) staff of the retail licensee;
4230          (iii) a person otherwise related to a resort spa sublicense; or
4231          (iv) any combination of the persons listed in this Subsection (1)(b).
4232          (2) (a) For purposes of the resort spa sublicense, the resort licensee shall ensure that a
4233     record required by this title is maintained, and a record is maintained or used for the resort spa
4234     sublicense:
4235          (i) as the department requires; and
4236          (ii) for a minimum period of three years.
4237          (b) A record is subject to inspection by an authorized representative of the commission
4238     and the department.
4239          (c) A resort licensee shall allow the department, through an auditor or examiner of the
4240     department, to audit the records for a resort spa sublicense at the times the department

4241     considers advisable.
4242          (d) The department shall audit the records for a resort spa sublicense at least once
4243     annually.
4244          (e) Section 32B-1-205 applies to a record required to be made, maintained, or used in
4245     accordance with this Subsection (2).
4246          (3) (a) A person operating under a resort spa sublicense may not sell, offer for sale, or
4247     furnish liquor at a resort spa during a period that:
4248          (i) begins at 1 a.m.; and
4249          (ii) ends at 9:59 a.m.
4250          (b) A person operating under a resort spa sublicense may sell, offer for sale, or furnish
4251     beer during the hours specified in Chapter 6, Part 7, On-Premise Beer Retailer License, for an
4252     on-premise beer retailer.
4253          (c) (i) Notwithstanding Subsections (3)(a) and (b), a resort spa shall remain open for
4254     one hour after the resort spa ceases the sale and furnishing of an alcoholic product during
4255     which time a person at the resort spa may finish consuming:
4256          (A) a single drink containing spirituous liquor;
4257          (B) a single serving of wine not exceeding five ounces;
4258          (C) a single serving of heavy beer;
4259          (D) a single serving of beer not exceeding 26 ounces; or
4260          (E) a single serving of a flavored malt beverage.
4261          (ii) A resort spa is not required to remain open:
4262          (A) after all persons have vacated the resort spa sublicense premises; or
4263          (B) during an emergency.
4264          (4) A minor may not be admitted into, use, or be on:
4265          (a) the sublicense premises of a resort spa unless accompanied by a person 21 years of
4266     age or older; or
4267          (b) a lounge or bar area of the resort spa sublicense premises.
4268          (5) A resort spa shall have food available at all times when an alcoholic product is sold,
4269     offered for sale, furnished, or consumed on the resort spa sublicense premises.
4270          (6) (a) Subject to the other provisions of this Subsection (6), a patron may not have
4271     more than two alcoholic products of any kind at a time before the patron.

4272          (b) A resort spa patron may not have two spirituous liquor drinks before the resort spa
4273     patron if one of the spirituous liquor drinks consists only of the primary spirituous liquor for
4274     the other spirituous liquor drink.
4275          (c) An individual portion of wine is considered to be one alcoholic product under this
4276     Subsection (6).
4277          (7) (a) An alcoholic product may only be consumed at a table or counter.
4278          (b) An alcoholic product may not be served to or consumed by a patron at a [bar]
4279     dispensing structure.
4280          (8) (a) A person operating under a resort spa sublicense shall have available on the
4281     resort spa sublicense premises for a patron to review at the time that the patron requests it, a
4282     written alcoholic product price list or a menu containing the price of an alcoholic product sold
4283     or furnished by the resort spa including:
4284          (i) a set-up charge;
4285          (ii) a service charge; or
4286          (iii) a chilling fee.
4287          (b) A charge or fee made in connection with the sale, service, or consumption of liquor
4288     may be stated in food or alcoholic product menus including:
4289          (i) a set-up charge;
4290          (ii) a service charge; or
4291          (iii) a chilling fee.
4292          (9) (a) A resort licensee shall own or lease premises suitable for the resort spa's
4293     activities.
4294          (b) A resort licensee may not maintain premises in a manner that barricades or conceals
4295     the resort spa sublicense's operation.
4296          (10) Subject to the other provisions of this section, a person operating under a resort
4297     spa sublicense may not sell an alcoholic product to or allow a person to be admitted to or use
4298     the resort spa sublicense premises other than:
4299          (a) a resident;
4300          (b) a public customer who holds a valid customer card issued under Subsection (12); or
4301          (c) an invitee.
4302          (11) A person operating under a resort spa sublicense may allow an individual to be

4303     admitted to or use the resort spa sublicense premises as an invitee subject to the following
4304     conditions:
4305          (a) the individual shall be previously authorized by one of the following who agrees to
4306     host the individual as an invitee into the resort spa:
4307          (i) a resident; or
4308          (ii) a public customer as described in Subsection (10);
4309          (b) the individual has only those privileges derived from the individual's host for the
4310     duration of the invitee's visit to the resort spa; and
4311          (c) a resort licensee, resort spa, or staff of the resort licensee or resort spa may not enter
4312     into an agreement or arrangement with a resident or public customer to indiscriminately host a
4313     member of the general public into the resort spa as an invitee.
4314          (12) A person operating under a resort spa sublicense may issue a customer card to
4315     allow an individual to enter and use the resort spa sublicense premises on a temporary basis
4316     under the following conditions:
4317          (a) the resort spa may not issue a customer card for a time period that exceeds three
4318     weeks;
4319          (b) the resort spa shall assess a fee to a public customer for a customer card;
4320          (c) the resort spa may not issue a customer card to a minor; and
4321          (d) a public customer may not host more than seven invitees at one time.
4322          Section 68. Section 32B-8a-302 is amended to read:
4323          32B-8a-302. Application -- Approval process.
4324          (1) To obtain the transfer of a retail license from a retail licensee, the transferee shall
4325     file a transfer application with the department that includes:
4326          (a) an application in the form provided by the department;
4327          (b) a statement as to whether the consideration, if any, to be paid to the transferor
4328     includes payment for transfer of the retail license;
4329          (c) a statement executed under penalty of perjury that the consideration as set forth in
4330     the escrow agreement required by Section 32B-8a-401 is deposited with the escrow holder; and
4331          (d) (i) an application fee of $300; and
4332          (ii) a transfer fee determined in accordance with Section 32B-8a-303.
4333          (2) If the intended transfer of a retail license involves consideration, at least 10 days

4334     before the commission may approve the transfer, the department shall post a notice of the
4335     intended transfer on the Public Notice Website created in Section 63F-1-701 that states the
4336     following:
4337          (a) the name of the transferor;
4338          (b) the name and address of the business currently associated with the retail license;
4339          (c) instructions for filing a claim with the escrow holder; and
4340          (d) the projected date that the commission may consider the transfer application.
4341          (3) (a) (i) Before the commission may approve the transfer of a retail license, the
4342     department shall conduct an investigation and may hold public hearings to gather information
4343     and make recommendations to the commission as to whether the transfer of the retail license
4344     should be approved.
4345          (ii) The department shall forward the information and recommendations described in
4346     this Subsection (3)(a) to the commission to aid in the commission's determination.
4347          (b) Before approving a transfer, the commission shall:
4348          (i) determine that the transferee filed a complete application;
4349          (ii) determine that the transferee is eligible to hold the type of retail license that is to be
4350     transferred at the premises to which the retail license would be transferred;
4351          (iii) determine that the transferee is not delinquent in the payment of an amount
4352     described in Subsection 32B-8a-201(3);
4353          (iv) determine that the transferee is not disqualified under Section 32B-1-304;
4354          (v) consider the locality within which the proposed licensed premises is located,
4355     including the factors listed in Section 32B-5-203 for the issuance of a retail license;
4356          (vi) consider the transferee's ability to manage and operate the retail license to be
4357     transferred, including the factors listed in Section 32B-5-203 for the issuance of a retail license;
4358          (vii) consider the nature or type of retail licensee operation of the transferee, including
4359     the factors listed in Section 32B-5-203 for the issuance of a retail license;
4360          (viii) if the transfer involves consideration, determine that the transferee and transferor
4361     have complied with Part 4, Protection of Creditors; and
4362          (ix) consider any other factor the commission considers necessary.
4363          (4) [(a)] Except as provided in Subsection [(4)(b)] 32B-1-202(3), the commission may
4364     not approve the transfer of a retail license to premises that do not meet the proximity

4365     requirements of Section 32B-1-202.
4366          [(b) If after a transfer of a retail license the transferee operates the same type of retail
4367     license at the same location as did the transferor, the commission may waive or vary the
4368     proximity requirements of Subsection 32B-1-202(2) in considering whether to approve the
4369     transfer under the same circumstances that the commission may waive or vary the proximity
4370     requirements in accordance with Subsection 32B-1-202(4) when considering whether to issue a
4371     retail license.]
4372          Section 69. Section 32B-8b-102 is amended to read:
4373          32B-8b-102. Definitions.
4374          As used in this chapter:
4375          (1) "Boundary of a hotel" means the physical boundary of the contiguous parcels of
4376     real estate owned by the same person on which is located one or more buildings and any
4377     structure or improvement to that real estate as determined by the commission.
4378          (2) "Hotel" means one or more buildings that:
4379          (a) constitute a hotel, as defined by the commission;
4380          (b) are owned by the same person or by a person who has a majority interest in and can
4381     direct or exercise control over the management or policy of the person who owns any other
4382     building under the hotel license within the boundary of the hotel;
4383          (c) primarily operate to provide lodging accommodations;
4384          (d) provide room service within the boundary of the hotel meeting the requirements of
4385     this title;
4386          (e) have on-premise banquet space and provide on-premise banquet service within the
4387     boundary of the hotel meeting the requirements of this title;
4388          (f) have a restaurant or [club] bar establishment within the boundary of the hotel
4389     meeting the requirements of this title; and
4390          (g) have at least 40 guest rooms.
4391          (3) "Provisions applicable to a sublicense" means:
4392          (a) for a full-service restaurant sublicense, Chapter 6, Part 2, Full-Service Restaurant
4393     License;
4394          (b) for a limited-service restaurant sublicense, Chapter 6, Part 3, Limited-Service
4395     Restaurant License;

4396          (c) for a [club] bar establishment sublicense, Chapter 6, Part 4, [Club] Bar
4397     Establishment License;
4398          (d) for an on-premise banquet sublicense, Chapter 6, Part 6, On-Premise Banquet
4399     License;
4400          (e) for an on-premise beer retailer sublicense, Chapter 6, Part 7, On-Premise Beer
4401     Retailer License; and
4402          (f) for a beer-only restaurant sublicense, Chapter 6, Part 9, Beer-Only Restaurant
4403     License.
4404          (4) "Sublicense" means:
4405          (a) a full-service restaurant sublicense;
4406          (b) a limited-service restaurant sublicense;
4407          (c) a [club] bar establishment sublicense;
4408          (d) an on-premise banquet sublicense;
4409          (e) an on-premise beer retailer sublicense; and
4410          (f) a beer-only restaurant sublicense.
4411          (5) "Sublicense premises" means a building, enclosure, or room used pursuant to a
4412     sublicense in connection with the storage, sale, furnishing, or consumption of an alcoholic
4413     product, unless otherwise defined in this title or in the rules made by the commission, except
4414     that sublicense premises may have only one sublicense within a room or an enclosure that is
4415     separate from a room.
4416          Section 70. Section 32B-8b-201 is amended to read:
4417          32B-8b-201. Commission's power to issue a hotel license.
4418          (1) Before a person as a hotel under a single license may store, sell, offer for sale,
4419     furnish, or allow the consumption of an alcoholic product on sublicense premises, the person
4420     shall first obtain a hotel license from the commission in accordance with this part.
4421          (2) (a) The commission may issue to a person a hotel license to allow the storage, sale,
4422     offer for sale, furnishing, and consumption of an alcoholic product in connection with a hotel
4423     designated in the hotel license if the person operates at least three sublicenses under the hotel
4424     license one of which is an on-premise banquet license and one of which is a sublicense for a
4425     restaurant or [club] bar establishment.
4426          (b) A hotel license shall:

4427          (i) consist of:
4428          (A) a general hotel license; and
4429          (B) three or more sublicenses meeting the requirements of Subsection (2)(a); and
4430          (ii) designate the boundary of the hotel and sublicenses.
4431          (c) This chapter does not prohibit an alcoholic product on the boundary of the hotel to
4432     the extent otherwise permitted by this title.
4433          (d) The commission may not issue a sublicense that is separate from a hotel license.
4434          (3) (a) The commission may not issue a total number of hotel licenses that at any time
4435     totals more than 80.
4436          (b) Subject to Subsection (3)(c), when determining the total number of licenses the
4437     commission has issued for each type of retail license, the commission may not include a
4438     sublicense as one of the retail licenses issued under the provisions applicable to the sublicense.
4439          (c) If a hotel license issued under this chapter includes a [club] bar establishment
4440     sublicense that before the issuance of the hotel license was a [club] bar establishment license,
4441     the commission shall include the [club] bar establishment sublicense as one of the [club] bar
4442     establishment licenses in determining if the total number of licenses issued under the
4443     provisions applicable to the [club] bar establishment license exceeds the number calculated by
4444     dividing the population of the state by the number specified in the provisions applicable to the
4445     [club] bar establishment license.
4446          (d) A person may not transfer a [club] bar establishment license under Chapter 8a,
4447     Transfer of Retail License Act, in a manner that circumvents the limitations of Subsection
4448     (3)(c).
4449          Section 71. Section 53-10-305 is amended to read:
4450          53-10-305. Duties of bureau chief.
4451          The bureau chief, with the consent of the commissioner, shall do the following:
4452          (1) conduct in conjunction with the state boards of education and higher education in
4453     state schools, colleges, and universities, an educational program concerning alcoholic
4454     beverages and alcoholic products, and work in conjunction with civic organizations, churches,
4455     local units of government, and other organizations in the prevention of alcoholic beverage,
4456     alcoholic product, and drug violations;
4457          (2) coordinate law enforcement programs throughout the state and accumulate and

4458     disseminate information related to the prevention, detection, and control of violations of this
4459     chapter and Title 32B, Alcoholic Beverage Control Act, as it relates to storage or consumption
4460     of an alcoholic beverage or alcoholic product on premises maintained by a [club] bar
4461     establishment licensee, or a person required to obtain a [club] bar establishment license, as
4462     defined in Section 32B-1-102;
4463          (3) make inspections and investigations as required by the commission and the
4464     Department of Alcoholic Beverage Control;
4465          (4) perform other acts as may be necessary or appropriate concerning control of the use
4466     of an alcoholic beverage or alcoholic product and drugs; and
4467          (5) make reports and recommendations to the Legislature, the governor, the
4468     commissioner, the commission, and the Department of Alcoholic Beverage Control as may be
4469     required or requested.
4470          Section 72. Section 53A-13-102 is amended to read:
4471          53A-13-102. Instruction on the harmful effects of alcohol, tobacco, and controlled
4472     substances -- School-based underage drinking prevention program .
4473          (1) The State Board of Education shall adopt rules providing for instruction at each
4474     grade level on the harmful effects of alcohol, tobacco, and controlled substances upon the
4475     human body and society. The rules shall require but are not limited to instruction on the
4476     following:
4477          (a) teaching of skills needed to evaluate advertisements for, and media portrayal of,
4478     alcohol, tobacco, and controlled substances;
4479          (b) directing students towards healthy and productive alternatives to the use of alcohol,
4480     tobacco, and controlled substances; and
4481          (c) discouraging the use of alcohol, tobacco, and controlled substances.
4482          (2) At the request of the board, the Division of Substance Abuse and Mental Health
4483     shall cooperate with the board in developing programs to provide this instruction.
4484          (3) The board shall participate in efforts to enhance communication among community
4485     organizations and state agencies, and shall cooperate with those entities in efforts which are
4486     compatible with the purposes of [this section] Subsections (1) and (2) .
4487          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4488     board shall make rules that require each LEA, as defined in Section 53A-1-401, to:

4489          (a) present the school-based underage drinking prevention program as defined in
4490     Section 32B-2-306 each year to students in grade 8;
4491          (b) present the grade 10 school-based underage drinking prevention program as defined
4492     in Section 32B-2-306 each year to students in grade 10;
4493          (c) ensure that each student in grade 8 or 10 participates in the school-based underage
4494     drinking prevention program or the grade 10 school-based underage drinking prevention
4495     program, unless the student's parent or guardian excused the student from participation; and
4496          (d) coordinate with the Department of Alcoholic Beverage Control to set a date each
4497     year for the Department of Alcoholic Beverage Control or the provider with whom the
4498     Department of Alcoholic Beverage Control contracts to provide the school-based underage
4499     drinking prevention program or the grade 10 school-based underage drinking prevention
4500     program.
4501          Section 73. Section 62A-15-401 is amended to read:
4502          62A-15-401. Alcohol training and education seminar.
4503          (1) As used in this part:
4504          (a) "Instructor" means a person that directly provides the instruction during an alcohol
4505     training and education seminar for a seminar provider.
4506          (b) "Licensee" means a person who is:
4507          (i) (A) a new or renewing licensee under Title 32B, Alcoholic Beverage Control Act;
4508     and
4509          (B) engaged in the retail sale of an alcoholic product for consumption on the premises
4510     of the licensee; or
4511          (ii) a business that is:
4512          (A) a new or renewing licensee licensed by a city, town, or county; and
4513          (B) engaged in the retail sale of beer for consumption off the premises of the licensee.
4514          (c) "Off-premise beer retailer" is as defined in Section 32B-1-102.
4515          (d) "Seminar provider" means a person other than the division who provides an alcohol
4516     training and education seminar meeting the requirements of this section.
4517          (2) (a) This section applies to [an individual who, as defined by the division by rule]:
4518          [(i) manages operations at the premises of a licensee engaged in the retail sale of an
4519     alcoholic product for consumption on the premises of the licensee;]

4520          [(ii) supervises the serving of an alcoholic product to a customer for consumption on
4521     the premises of a licensee;]
4522          [(iii) serves an alcoholic product to a customer for consumption on the premises of a
4523     licensee;]
4524          (i) a retail manager as defined in Section 32B-5-402;
4525          (ii) retail staff as defined in Section 32B-5-402; and
4526          (iii) an individual who, as defined by division rule:
4527          [(iv)] (A) directly supervises the sale of beer to a customer for consumption off the
4528     premises of an off-premise beer retailer; or
4529          [(v)] (B) sells beer to a customer for consumption off the premises of an off-premise
4530     beer retailer.
4531          (b) If the individual does not have a valid record that the individual has completed an
4532     alcohol training and education seminar, an individual described in Subsection (2)(a) shall:
4533          (i) (A) complete an alcohol training and education seminar within 30 days of the
4534     following if the individual is described in Subsections (2)(a)(i) through (iii):
4535          (I) if the individual is an employee, the day the individual begins employment;
4536          (II) if the individual is an independent contractor, the day the individual is first hired;
4537     or
4538          (III) if the individual holds an ownership interest in the licensee, the day that the
4539     individual first engages in an activity that would result in that individual being required to
4540     complete an alcohol training and education seminar; or
4541          (B) complete an alcohol training and education seminar within the time periods
4542     specified in Subsection 32B-5-404(1) if the individual is described in Subsections (2)(a)(iv)
4543     and (v); and
4544          (ii) pay a fee:
4545          (A) to the seminar provider; and
4546          (B) that is equal to or greater than the amount established under Subsection (4)(h).
4547          (c) An individual shall have a valid record that the individual completed an alcohol
4548     training and education seminar within the time period provided in this Subsection (2) to engage
4549     in an activity described in Subsection (2)(a).
4550          (d) A record that an individual has completed an alcohol training and education

4551     seminar is valid for:
4552          (i) three years from the day on which the record is issued for an individual described in
4553     Subsection (2)(a)(i), (ii), or (iii); and
4554          (ii) five years from the day on which the record is issued for an individual described in
4555     Subsection (2)(a)(iv) or (v).
4556          (e) On and after July 1, 2011, to be considered as having completed an alcohol training
4557     and education seminar, an individual shall:
4558          (i) attend the alcohol training and education seminar and take any test required to
4559     demonstrate completion of the alcohol training and education seminar in the physical presence
4560     of an instructor of the seminar provider; or
4561          (ii) complete the alcohol training and education seminar and take any test required to
4562     demonstrate completion of the alcohol training and education seminar through an online course
4563     or testing program that meets the requirements described in Subsection (2)(f).
4564          (f) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
4565     Administrative Rulemaking Act, establish one or more requirements for an online course or
4566     testing program described in Subsection (2)(e) that are designed to inhibit fraud in the use of
4567     the online course or testing program. In developing the requirements by rule the division shall
4568     consider whether to require:
4569          (i) authentication that the an individual accurately identifies the individual as taking the
4570     online course or test;
4571          (ii) measures to ensure that an individual taking the online course or test is focused on
4572     training material throughout the entire training period;
4573          (iii) measures to track the actual time an individual taking the online course or test is
4574     actively engaged online;
4575          (iv) a seminar provider to provide technical support, such as requiring a telephone
4576     number, email, or other method of communication that allows an individual taking the online
4577     course or test to receive assistance if the individual is unable to participate online because of
4578     technical difficulties;
4579          (v) a test to meet quality standards, including randomization of test questions and
4580     maximum time limits to take a test;
4581          (vi) a seminar provider to have a system to reduce fraud as to who completes an online

4582     course or test, such as requiring a distinct online certificate with information printed on the
4583     certificate that identifies the person taking the online course or test, or requiring measures to
4584     inhibit duplication of a certificate;
4585          (vii) measures for the division to audit online courses or tests;
4586          (viii) measures to allow an individual taking an online course or test to provide an
4587     evaluation of the online course or test;
4588          (ix) a seminar provider to track the Internet protocol address or similar electronic
4589     location of an individual who takes an online course or test;
4590          (x) an individual who takes an online course or test to use an e-signature; or
4591          (xi) a seminar provider to invalidate a certificate if the seminar provider learns that the
4592     certificate does not accurately reflect the individual who took the online course or test.
4593          (3) (a) A licensee may not permit an individual who is not in compliance with
4594     Subsection (2) to:
4595          (i) serve or supervise the serving of an alcoholic product to a customer for
4596     consumption on the premises of the licensee;
4597          (ii) engage in any activity that would constitute managing operations at the premises of
4598     a licensee that engages in the retail sale of an alcoholic product for consumption on the
4599     premises of the licensee;
4600          (iii) directly supervise the sale of beer to a customer for consumption off the premises
4601     of an off-premise beer retailer; or
4602          (iv) sell beer to a customer for consumption off the premises of an off-premise beer
4603     retailer.
4604          (b) A licensee that violates Subsection (3)(a) is subject to Section 32B-5-403.
4605          (4) The division shall:
4606          (a) (i) provide alcohol training and education seminars; or
4607          (ii) certify one or more seminar providers;
4608          (b) establish the curriculum for an alcohol training and education seminar that includes
4609     the following subjects:
4610          (i) (A) alcohol as a drug; and
4611          (B) alcohol's effect on the body and behavior;
4612          (ii) recognizing the problem drinker or signs of intoxication;

4613          (iii) an overview of state alcohol laws related to responsible beverage sale or service,
4614     as determined in consultation with the Department of Alcoholic Beverage Control;
4615          (iv) dealing with the problem customer, including ways to terminate sale or service;
4616     and
4617          (v) for those supervising or engaging in the retail sale of an alcoholic product for
4618     consumption on the premises of a licensee, alternative means of transportation to get the
4619     customer safely home;
4620          (c) recertify each seminar provider every three years;
4621          (d) monitor compliance with the curriculum described in Subsection (4)(b);
4622          (e) maintain for at least five years a record of every person who has completed an
4623     alcohol training and education seminar;
4624          (f) provide the information described in Subsection (4)(e) on request to:
4625          (i) the Department of Alcoholic Beverage Control;
4626          (ii) law enforcement; or
4627          (iii) a person licensed by the state or a local government to sell an alcoholic product;
4628          (g) provide the Department of Alcoholic Beverage Control on request a list of any
4629     seminar provider certified by the division; and
4630          (h) establish a fee amount for each person attending an alcohol training and education
4631     seminar that is sufficient to offset the division's cost of administering this section.
4632          (5) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
4633     Administrative Rulemaking Act:
4634          (a) define what constitutes under this section an individual who:
4635          (i) manages operations at the premises of a licensee engaged in the retail sale of an
4636     alcoholic product for consumption on the premises of the licensee;
4637          (ii) supervises the serving of an alcoholic product to a customer for consumption on the
4638     premises of a licensee;
4639          (iii) serves an alcoholic product to a customer for consumption on the premises of a
4640     licensee;
4641          (iv) directly supervises the sale of beer to a customer for consumption off the premises
4642     of an off-premise beer retailer; or
4643          (v) sells beer to a customer for consumption off the premises of an off-premise beer

4644     retailer;
4645          (b) establish criteria for certifying and recertifying a seminar provider; and
4646          (c) establish guidelines for the manner in which an instructor provides an alcohol
4647     education and training seminar.
4648          (6) A seminar provider shall:
4649          (a) obtain recertification by the division every three years;
4650          (b) ensure that an instructor used by the seminar provider:
4651          (i) follows the curriculum established under this section; and
4652          (ii) conducts an alcohol training and education seminar in accordance with the
4653     guidelines established by rule;
4654          (c) ensure that any information provided by the seminar provider or instructor of a
4655     seminar provider is consistent with:
4656          (i) the curriculum established under this section; and
4657          (ii) this section;
4658          (d) provide the division with the names of all persons who complete an alcohol training
4659     and education seminar provided by the seminar provider;
4660          (e) (i) collect a fee for each person attending an alcohol training and education seminar
4661     in accordance with Subsection (2); and
4662          (ii) forward to the division the portion of the fee that is equal to the amount described
4663     in Subsection (4)(h); and
4664          (f) issue a record to an individual that completes an alcohol training and education
4665     seminar provided by the seminar provider.
4666          (7) (a) If after a hearing conducted in accordance with Title 63G, Chapter 4,
4667     Administrative Procedures Act, the division finds that a seminar provider violates this section
4668     or that an instructor of the seminar provider violates this section, the division may:
4669          (i) suspend the certification of the seminar provider for a period not to exceed 90 days;
4670          (ii) revoke the certification of the seminar provider;
4671          (iii) require the seminar provider to take corrective action regarding an instructor; or
4672          (iv) prohibit the seminar provider from using an instructor until such time that the
4673     seminar provider establishes to the satisfaction of the division that the instructor is in
4674     compliance with Subsection (6)(b).

4675          (b) The division may certify a seminar provider whose certification is revoked:
4676          (i) no sooner than 90 days from the date the certification is revoked; and
4677          (ii) if the seminar provider establishes to the satisfaction of the division that the
4678     seminar provider will comply with this section.
4679          Section 74. Section 63I-2-232 is amended to read:
4680          63I-2-232. Repeal dates -- Title 32B.
4681          (1) Subsection 32B-1-102(7) is repealed July 1, 2022.
4682          (2) Subsection 32B-1-102(33)(a)(i)(B), the language that states "32B-6-205(12)(b)(ii),
4683     32B-6-305(12)(b)(ii)," and ", or 32B-6-905(12)(b)(ii)" is repealed July 1, 2022.
4684          (3) Subsection 32B-1-102(114)(b), the language that states "32B-6-205(12)(b)(ii),
4685     32B-6-305(12)(b)(ii)," and ", or 32B-6-905(12)(b)(ii)" is repealed July 1, 2022.
4686          (4) Subsection 32B-1-604(4) is repealed June 1, 2018.
4687          (5) Subsections 32B-6-202(3) and (4) are repealed July 1, 2022.
4688          (6) Section 32B-6-205 is repealed July 1, 2022.
4689          (7) Subsection 32B-6-205.2(17) is repealed July 1, 2022.
4690          (8) Section 32B-6-205.3 is repealed July 1, 2022.
4691          (9) Subsections 32B-6-302(3) and (4) are repealed July 1, 2022.
4692          (10) Section 32B-6-305 is repealed July 1, 2022.
4693          (11) Subsection 32B-6-305.2(17) is repealed July 1, 2022.
4694          (12) Section 32B-6-305.3 is repealed July 1, 2022.
4695          (13) Section 32B-6-404.1 is repealed July 1, 2022.
4696          (14) Section 32B-6-409 is repealed July 1, 2022.
4697          (15) Subsection 32B-6-703(2)(e)(iv) is repealed July 1, 2022.
4698          (16) Subsections 32B-6-902(1)(c), (1)(d), and (2) are repealed July 1, 2022.
4699          (17) Section 32B-6-905 is repealed July 1, 2022.
4700          (18) Subsection 32B-6-905.1(17) is repealed July 1, 2022.
4701          (19) Section 32B-6-905.2 is repealed July 1, 2022.
4702          (20) Section 32B-7-303 is repealed March 1, 2019.
4703          (21) Section 32B-7-304 is repealed March 1, 2019.
4704          (22) Subsection 32B-8-402(1)(b) is repealed July 1, 2022.
4705          Section 75. Repealer.

4706          This bill repeals:
4707          Section 32B-6-205.1, Credit for grandfathered bar structures of full-service
4708     restaurant licensee.
4709          Section 32B-6-305.1, Credit for grandfathered bar structures for limited-service
4710     restaurant licensee.