Senator Jerry W. Stevenson proposes the following substitute bill:


1     
ALCOHOL AMENDMENTS

2     
2018 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 and modifies defined terms;
13          ▸     clarifies the appropriate measurement point for determining proximity to a
14     community location;
15          ▸     addresses the standard for demonstrating a previously approved variance for
16     purposes of proximity to a community location;
17          ▸     requires electronic age verification of certain individuals who are within 10 feet of a
18     grandfathered bar structure;
19          ▸     clarifies and amends labeling requirements for certain malted beverages;
20          ▸     allows the Alcoholic Beverage Control Advisory Board to meet at the chair's
21     discretion;
22          ▸     modifies the days on which certain package agencies located at a manufacturing
23     facility may operate;
24          ▸     modifies the circumstances under which a retail licensee shall submit a responsible
25     alcohol service plan to the department;

26          ▸     addresses expungement of a record related to a violation of a provision of the
27     Alcoholic Beverage Control Act;
28          ▸     amends the requirements related to when a retail manager or an off-premise retail
29     manager must complete a department training program;
30          ▸     amends the requirements related to voting rights to obtain an equity license;
31          ▸     modifies the circumstances under which a person may hold two retail licenses for
32     the same premises or room;
33          ▸     addresses the circumstances under which a hotel licensee or a resort licensee may
34     have two sublicenses in the same room;
35          ▸     allows a patron to transport beer between two adjacent licensed premises located in
36     a sports center with a minimum seating capacity;
37          ▸     provides that a restaurant licensee may employ a minor who is at least 18 years of
38     age to bus tables;
39          ▸     provides an exemption from certain dispensing area requirements for small
40     restaurant licensees;
41          ▸     repeals the requirement for restaurant licensees to display a sign stating the
42     restaurant's license type;
43          ▸     allows a dining club licensee to convert to a full-service restaurant license or a bar
44     license before July 1, 2018;
45          ▸     increases the number of airport lounge licenses the commission may issue;
46          ▸     provides that the Department of Alcoholic Beverage Control shall study issues
47     related to the use of banquet catering contracts and report to the Business and Labor
48     Interim Committee;
49          ▸     modifies the off-premise beer retailer state license fee for a person who operates an
50     off-premise beer retailer on July 1, 2018;
51          ▸     extends the time for a business entity to transfer a retail license following a change
52     in ownership;
53          ▸     modifies the operational requirements for a hotel license and for a sublicense related
54     to calculating the percentage of gross receipts from the sale of food;
55          ▸     addresses the grades in which an LEA may offer the Underage Drinking Prevention
56     Program to students; and

57          ▸     makes technical and conforming changes.
58     Money Appropriated in this Bill:
59          None
60     Other Special Clauses:
61          None
62     Utah Code Sections Affected:
63     AMENDS:
64          32B-1-102, as last amended by Laws of Utah 2017, Chapter 455
65          32B-1-202, as last amended by Laws of Utah 2017, Chapters 455, 471 and last
66     amended by Coordination Clause, Laws of Utah 2017, Chapter 471
67          32B-1-407, as last amended by Laws of Utah 2017, Chapter 455
68          32B-1-606, as last amended by Laws of Utah 2017, Chapter 455
69          32B-2-210, as last amended by Laws of Utah 2017, Chapter 455
70          32B-2-605, as last amended by Laws of Utah 2016, Chapter 80
71          32B-3-102, as last amended by Laws of Utah 2017, Chapter 455
72          32B-3-205, as last amended by Laws of Utah 2017, Chapter 455
73          32B-4-415, as last amended by Laws of Utah 2017, Chapter 455
74          32B-5-202, as last amended by Laws of Utah 2017, Chapter 455
75          32B-5-207, as enacted by Laws of Utah 2017, Chapter 455
76          32B-5-307, as last amended by Laws of Utah 2017, Chapter 455
77          32B-5-308, as last amended by Laws of Utah 2011, Chapter 307
78          32B-5-405, as enacted by Laws of Utah 2017, Chapter 455
79          32B-5-406, as enacted by Laws of Utah 2017, Chapter 455
80          32B-6-202, as last amended by Laws of Utah 2017, Chapter 455
81          32B-6-205, as last amended by Laws of Utah 2017, Chapter 455
82          32B-6-205.2, as enacted by Laws of Utah 2017, Chapter 455
83          32B-6-302, as last amended by Laws of Utah 2017, Chapter 455
84          32B-6-305, as last amended by Laws of Utah 2017, Chapter 455
85          32B-6-305.2, as enacted by Laws of Utah 2017, Chapter 455
86          32B-6-403, as last amended by Laws of Utah 2017, Chapter 455
87          32B-6-404, as last amended by Laws of Utah 2017, Chapter 455

88          32B-6-404.1, as enacted by Laws of Utah 2017, Chapter 455
89          32B-6-406, as last amended by Laws of Utah 2017, Chapter 455
90          32B-6-409, as enacted by Laws of Utah 2011, Chapter 334
91          32B-6-503, as last amended by Laws of Utah 2011, Chapter 334
92          32B-6-605, as last amended by Laws of Utah 2011, Chapters 307 and 334
93          32B-6-902, as last amended by Laws of Utah 2017, Chapter 455
94          32B-6-905, as last amended by Laws of Utah 2017, Chapter 455
95          32B-6-905.1, as enacted by Laws of Utah 2017, Chapter 455
96          32B-7-202, as last amended by Laws of Utah 2017, Chapter 455
97          32B-7-401, as enacted by Laws of Utah 2017, Chapter 455
98          32B-8a-202, as last amended by Laws of Utah 2016, Chapter 82
99          32B-8a-203, as last amended by Laws of Utah 2016, Chapter 82
100          32B-8b-102, as last amended by Laws of Utah 2017, Chapter 455
101          32B-8b-301, as enacted by Laws of Utah 2016, Chapter 80
102          32B-8b-302, as enacted by Laws of Utah 2016, Chapter 80
103          53F-9-304, as renumbered and amended by Laws of Utah 2018, Chapter 2
104          53G-10-406, as renumbered and amended by Laws of Utah 2018, Chapter 3
105          62A-15-401, as last amended by Laws of Utah 2017, Chapter 455
106          63I-2-232, as last amended by Laws of Utah 2017, Chapter 455
107     ENACTS:
108          32B-6-205.4, Utah Code Annotated 1953
109          32B-6-305.4, Utah Code Annotated 1953
110          32B-6-605.1, Utah Code Annotated 1953
111          32B-6-905.3, Utah Code Annotated 1953
112     

113     Be it enacted by the Legislature of the state of Utah:
114          Section 1. Section 32B-1-102 is amended to read:
115          32B-1-102. Definitions.
116          As used in this title:
117          (1) "Airport lounge" means a business location:
118          (a) at which an alcoholic product is sold at retail for consumption on the premises; and

119          (b) that is located at an international airport with a United States Customs office on the
120     premises of the international airport.
121          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
122     Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
123          (3) "Alcoholic beverage" means the following:
124          (a) beer; or
125          (b) liquor.
126          (4) (a) "Alcoholic product" means a product that:
127          (i) contains at least .5% of alcohol by volume; and
128          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
129     process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
130     in an amount equal to or greater than .5% of alcohol by volume.
131          (b) "Alcoholic product" includes an alcoholic beverage.
132          (c) "Alcoholic product" does not include any of the following common items that
133     otherwise come within the definition of an alcoholic product:
134          (i) except as provided in Subsection (4)(d), an extract;
135          (ii) vinegar;
136          (iii) cider;
137          (iv) essence;
138          (v) tincture;
139          (vi) food preparation; or
140          (vii) an over-the-counter medicine.
141          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
142     when it is used as a flavoring in the manufacturing of an alcoholic product.
143          (5) "Alcohol training and education seminar" means a seminar that is:
144          (a) required by Chapter 5, Part 4, Alcohol Training and Education Act; and
145          (b) described in Section 62A-15-401.
146          (6) "Banquet" means an event:
147          (a) that is held at one or more designated locations approved by the commission in or
148     on the premises of a:
149          (i) hotel;

150          (ii) resort facility;
151          (iii) sports center; or
152          (iv) convention center;
153          (b) for which there is a contract:
154          (i) between a person operating a facility listed in Subsection (6)(a) and another person;
155     and
156          (ii) under which the person operating a facility listed in Subsection (6)(a) is required to
157     provide an alcoholic product at the event; and
158          (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
159          (7) "Bar structure" means a surface or structure on a licensed premises if on or at any
160     place of the surface or structure an alcoholic product is:
161          (a) stored; or
162          (b) dispensed.
163          (8) (a) " Bar establishment license" means a license issued in accordance with Chapter
164     5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License.
165          (b) " Bar establishment license" includes:
166          (i) a dining club license;
167          (ii) an equity license;
168          (iii) a fraternal license; or
169          (iv) a bar license.
170          (9) " Bar license" means a license issued in accordance with Chapter 5, Retail License
171     Act, and Chapter 6, Part 4, Bar Establishment License.
172          (10) (a) Subject to Subsection (10)(d), "beer" means a product that:
173          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
174     volume or 3.2% by weight; and
175          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
176          (b) "Beer" may or may not contain hops or other vegetable products.
177          (c) "Beer" includes a product that:
178          (i) contains alcohol in the percentages described in Subsection (10)(a); and
179          (ii) is referred to as:
180          (A) beer;

181          (B) ale;
182          (C) porter;
183          (D) stout;
184          (E) lager; or
185          (F) a malt or malted beverage.
186          (d) "Beer" does not include a flavored malt beverage.
187          (11) "Beer-only restaurant license" means a license issued in accordance with Chapter
188     5, Retail License Act, and Chapter 6, Part 9, Beer-Only Restaurant License.
189          (12) "Beer retailer" means a business that:
190          (a) is engaged, primarily or incidentally, in the retail sale of beer to a patron, whether
191     for consumption on or off the business premises; and
192          (b) is licensed as:
193          (i) an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-Premise Beer
194     Retailer Local Authority; or
195          (ii) an on-premise beer retailer, in accordance with Chapter 5, Retail License Act, and
196     Chapter 6, Part 7, On-Premise Beer Retailer License.
197          (13) "Beer wholesaling license" means a license:
198          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
199          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
200     retail licensees or off-premise beer retailers.
201          (14) "Billboard" means a public display used to advertise, including:
202          (a) a light device;
203          (b) a painting;
204          (c) a drawing;
205          (d) a poster;
206          (e) a sign;
207          (f) a signboard; or
208          (g) a scoreboard.
209          (15) "Brewer" means a person engaged in manufacturing:
210          (a) beer;
211          (b) heavy beer; or

212          (c) a flavored malt beverage.
213          (16) "Brewery manufacturing license" means a license issued in accordance with
214     Chapter 11, Part 5, Brewery Manufacturing License.
215          (17) "Certificate of approval" means a certificate of approval obtained from the
216     department under Section 32B-11-201.
217          (18) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
218     a bus company to a group of persons pursuant to a common purpose:
219          (a) under a single contract;
220          (b) at a fixed charge in accordance with the bus company's tariff; and
221          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
222     motor vehicle, and a driver to travel together to one or more specified destinations.
223          (19) "Church" means a building:
224          (a) set apart for worship;
225          (b) in which religious services are held;
226          (c) with which clergy is associated; and
227          (d) that is tax exempt under the laws of this state.
228          (20) "Commission" means the Alcoholic Beverage Control Commission created in
229     Section 32B-2-201.
230          (21) "Commissioner" means a member of the commission.
231          (22) "Community location" means:
232          (a) a public or private school;
233          (b) a church;
234          (c) a public library;
235          (d) a public playground; or
236          (e) a public park.
237          (23) "Community location governing authority" means:
238          (a) the governing body of the community location; or
239          (b) if the commission does not know who is the governing body of a community
240     location, a person who appears to the commission to have been given on behalf of the
241     community location the authority to prohibit an activity at the community location.
242          (24) "Container" means a receptacle that contains an alcoholic product, including:

243          (a) a bottle;
244          (b) a vessel; or
245          (c) a similar item.
246          (25) "Convention center" means a facility that is:
247          (a) in total at least 30,000 square feet; and
248          (b) otherwise defined as a "convention center" by the commission by rule.
249          (26) (a) "Counter" means a surface or structure in a dining area of a licensed premises
250     where seating is provided to a patron for service of food.
251          (b) "Counter" does not include a dispensing structure.
252          (27) "Department" means the Department of Alcoholic Beverage Control created in
253     Section 32B-2-203.
254          (28) "Department compliance officer" means an individual who is:
255          (a) an auditor or inspector; and
256          (b) employed by the department.
257          (29) "Department sample" means liquor that is placed in the possession of the
258     department for testing, analysis, and sampling.
259          (30) "Dining club license" means a license issued in accordance with Chapter 5, Retail
260     License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
261     commission as a dining club license.
262          (31) "Director," unless the context requires otherwise, means the director of the
263     department.
264          (32) "Disciplinary proceeding" means an adjudicative proceeding permitted under this
265     title:
266          (a) against a person subject to administrative action; and
267          (b) that is brought on the basis of a violation of this title.
268          (33) (a) Subject to Subsection (33)(b), "dispense" means:
269          (i) drawing [of] an alcoholic product[:]; and
270          [(A) from an area where it is stored; or]
271          [(B) as provided in Subsection 32B-6-205(12)(b)(ii), 32B-6-305(12)(b)(ii),
272     32B-6-805(15)(b)(ii), or 32B-6-905(12)(b)(ii); and]
273          (ii) using the alcoholic product [described in Subsection (33)(a)(i) on the premises of

274     the licensed premises] at the location from which it was drawn to mix or prepare an alcoholic
275     product to be furnished to a patron of the retail licensee.
276          (b) The definition of "dispense" in this Subsection (33) applies only to:
277          (i) a full-service restaurant license;
278          (ii) a limited-service restaurant license;
279          (iii) a reception center license; and
280          (iv) a beer-only restaurant license.
281          (34) "Dispensing structure" means a surface or structure on a licensed premises:
282          (a) where an alcoholic product is [stored or] dispensed; or
283          (b) from which an alcoholic product is served.
284          (35) "Distillery manufacturing license" means a license issued in accordance with
285     Chapter 11, Part 4, Distillery Manufacturing License.
286          (36) "Distressed merchandise" means an alcoholic product in the possession of the
287     department that is saleable, but for some reason is unappealing to the public.
288          (37) "Educational facility" includes:
289          (a) a nursery school;
290          (b) an infant day care center; and
291          (c) a trade and technical school.
292          (38) "Equity license" means a license issued in accordance with Chapter 5, Retail
293     License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
294     commission as an equity license.
295          (39) "Event permit" means:
296          (a) a single event permit; or
297          (b) a temporary beer event permit.
298          (40) "Exempt license" means a license exempt under Section 32B-1-201 from being
299     considered in determining the total number of retail licenses that the commission may issue at
300     any time.
301          (41) (a) "Flavored malt beverage" means a beverage:
302          (i) that contains at least .5% alcohol by volume;
303          (ii) that is treated by processing, filtration, or another method of manufacture that is not
304     generally recognized as a traditional process in the production of a beer as described in 27

305     C.F.R. Sec. 25.55;
306          (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
307     extract; and
308          (iv) (A) for which the producer is required to file a formula for approval with the
309     federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
310          (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
311          (b) "Flavored malt beverage" is considered liquor for purposes of this title.
312          (42) "Fraternal license" means a license issued in accordance with Chapter 5, Retail
313     License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
314     commission as a fraternal license.
315          (43) "Full-service restaurant license" means a license issued in accordance with
316     Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-Service Restaurant License.
317          (44) (a) "Furnish" means by any means to provide with, supply, or give an individual
318     an alcoholic product, by sale or otherwise.
319          (b) "Furnish" includes to:
320          (i) serve;
321          (ii) deliver; or
322          (iii) otherwise make available.
323          (45) "Guest" means an individual who meets the requirements of Subsection
324     32B-6-407(9).
325          (46) "Health care practitioner" means:
326          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
327          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
328          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
329          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
330     Act;
331          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
332     Nurse Practice Act;
333          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
334     Practice Act;
335          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational

336     Therapy Practice Act;
337          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
338          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
339     Professional Practice Act;
340          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
341          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
342     Practice Act;
343          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
344     Hygienist Practice Act; and
345          (m) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act.
346          (47) (a) "Heavy beer" means a product that:
347          (i) contains more than 4% alcohol by volume; and
348          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
349          (b) "Heavy beer" is considered liquor for the purposes of this title.
350          (48) "Hotel" is as defined by the commission by rule.
351          (49) "Hotel license" means a license issued in accordance with Chapter 5, Retail
352     License Act, and Chapter 8b, Hotel License Act.
353          (50) "Identification card" means an identification card issued under Title 53, Chapter 3,
354     Part 8, Identification Card Act.
355          (51) "Industry representative" means an individual who is compensated by salary,
356     commission, or other means for representing and selling an alcoholic product of a
357     manufacturer, supplier, or importer of liquor.
358          (52) "Industry representative sample" means liquor that is placed in the possession of
359     the department for testing, analysis, and sampling by a local industry representative on the
360     premises of the department to educate the local industry representative of the quality and
361     characteristics of the product.
362          (53) "Interdicted person" means a person to whom the sale, offer for sale, or furnishing
363     of an alcoholic product is prohibited by:
364          (a) law; or
365          (b) court order.
366          (54) "Intoxicated" means that a person:

367          (a) is significantly impaired as to the person's mental or physical functions as a result of
368     the use of:
369          (i) an alcoholic product;
370          (ii) a controlled substance;
371          (iii) a substance having the property of releasing toxic vapors; or
372          (iv) a combination of Subsections (54)(a)(i) through (iii); and
373          (b) exhibits plain and easily observed outward manifestations of behavior or physical
374     signs produced by the overconsumption of an alcoholic product.
375          (55) "Investigator" means an individual who is:
376          (a) a department compliance officer; or
377          (b) a nondepartment enforcement officer.
378          (56) "Invitee" means the same as that term is defined in Section 32B-8-102.
379          (57) "License" means:
380          (a) a retail license;
381          (b) a license issued in accordance with Chapter 11, Manufacturing and Related
382     Licenses Act;
383          (c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
384     or
385          (d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act.
386          (58) "Licensee" means a person who holds a license.
387          (59) "Limited-service restaurant license" means a license issued in accordance with
388     Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-Service Restaurant License.
389          (60) "Limousine" means a motor vehicle licensed by the state or a local authority, other
390     than a bus or taxicab:
391          (a) in which the driver and a passenger are separated by a partition, glass, or other
392     barrier;
393          (b) that is provided by a business entity to one or more individuals at a fixed charge in
394     accordance with the business entity's tariff; and
395          (c) to give the one or more individuals the exclusive use of the limousine and a driver
396     to travel to one or more specified destinations.
397          (61) (a) (i) "Liquor" means a liquid that:

398          (A) is:
399          (I) alcohol;
400          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
401          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
402          (IV) other drink or drinkable liquid; and
403          (B) (I) contains at least .5% alcohol by volume; and
404          (II) is suitable to use for beverage purposes.
405          (ii) "Liquor" includes:
406          (A) heavy beer;
407          (B) wine; and
408          (C) a flavored malt beverage.
409          (b) "Liquor" does not include beer.
410          (62) "Liquor Control Fund" means the enterprise fund created by Section 32B-2-301.
411          (63) "Liquor warehousing license" means a license that is issued:
412          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
413          (b) to a person, other than a licensed manufacturer, who engages in the importation for
414     storage, sale, or distribution of liquor regardless of amount.
415          (64) "Local authority" means:
416          (a) for premises that are located in an unincorporated area of a county, the governing
417     body of a county; or
418          (b) for premises that are located in an incorporated city, town, or metro township, the
419     governing body of the city, town, or metro township.
420          (65) "Lounge or bar area" is as defined by rule made by the commission.
421          (66) "Manufacture" means to distill, brew, rectify, mix, compound, process, ferment, or
422     otherwise make an alcoholic product for personal use or for sale or distribution to others.
423          (67) "Member" means an individual who, after paying regular dues, has full privileges
424     in an equity licensee or fraternal licensee.
425          (68) (a) "Military installation" means a base, air field, camp, post, station, yard, center,
426     or homeport facility for a ship:
427          (i) (A) under the control of the United States Department of Defense; or
428          (B) of the National Guard;

429          (ii) that is located within the state; and
430          (iii) including a leased facility.
431          (b) "Military installation" does not include a facility used primarily for:
432          (i) civil works;
433          (ii) a rivers and harbors project; or
434          (iii) a flood control project.
435          (69) "Minor" means an individual under the age of 21 years.
436          (70) "Nondepartment enforcement agency" means an agency that:
437          (a) (i) is a state agency other than the department; or
438          (ii) is an agency of a county, city, town, or metro township; and
439          (b) has a responsibility to enforce one or more provisions of this title.
440          (71) "Nondepartment enforcement officer" means an individual who is:
441          (a) a peace officer, examiner, or investigator; and
442          (b) employed by a nondepartment enforcement agency.
443          (72) (a) "Off-premise beer retailer" means a beer retailer who is:
444          (i) licensed in accordance with Chapter 7, Off-Premise Beer Retailer Act; and
445          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
446     premises.
447          (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
448          (73) "Off-premise beer retailer state license" means a state license issued in accordance
449     with Chapter 7, Part 4, Off-Premise Beer Retailer State License.
450          (74) "On-premise banquet license" means a license issued in accordance with Chapter
451     5, Retail License Act, and Chapter 6, Part 6, On-Premise Banquet License.
452          (75) "On-premise beer retailer" means a beer retailer who is:
453          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
454     accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-Premise Beer
455     Retailer License; and
456          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
457     premises:
458          (i) regardless of whether the beer retailer sells beer for consumption off the licensed
459     premises; and

460          (ii) on and after March 1, 2012, operating:
461          (A) as a tavern; or
462          (B) in a manner that meets the requirements of Subsection 32B-6-703(2)(e)(i).
463          (76) "Opaque" means impenetrable to sight.
464          (77) "Package agency" means a retail liquor location operated:
465          (a) under an agreement with the department; and
466          (b) by a person:
467          (i) other than the state; and
468          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
469     Agency, to sell packaged liquor for consumption off the premises of the package agency.
470          (78) "Package agent" means a person who holds a package agency.
471          (79) "Patron" means an individual to whom food, beverages, or services are sold,
472     offered for sale, or furnished, or who consumes an alcoholic product including:
473          (a) a customer;
474          (b) a member;
475          (c) a guest;
476          (d) an attendee of a banquet or event;
477          (e) an individual who receives room service;
478          (f) a resident of a resort;
479          (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102;
480     or
481          (h) an invitee.
482          (80) "Permittee" means a person issued a permit under:
483          (a) Chapter 9, Event Permit Act; or
484          (b) Chapter 10, Special Use Permit Act.
485          (81) "Person subject to administrative action" means:
486          (a) a licensee;
487          (b) a permittee;
488          (c) a manufacturer;
489          (d) a supplier;
490          (e) an importer;

491          (f) one of the following holding a certificate of approval:
492          (i) an out-of-state brewer;
493          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
494          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
495          (g) staff of:
496          (i) a person listed in Subsections (81)(a) through (f); or
497          (ii) a package agent.
498          (82) "Premises" means a building, enclosure, or room used in connection with the
499     storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic product,
500     unless otherwise defined in this title or rules made by the commission.
501          (83) "Prescription" means an order issued by a health care practitioner when:
502          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
503     to prescribe a controlled substance, other drug, or device for medicinal purposes;
504          (b) the order is made in the course of that health care practitioner's professional
505     practice; and
506          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
507          (84) (a) "Private event" means a specific social, business, or recreational event:
508          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
509     group; and
510          (ii) that is limited in attendance to people who are specifically designated and their
511     guests.
512          (b) "Private event" does not include an event to which the general public is invited,
513     whether for an admission fee or not.
514          (85) (a) "Proof of age" means:
515          (i) an identification card;
516          (ii) an identification that:
517          (A) is substantially similar to an identification card;
518          (B) is issued in accordance with the laws of a state other than Utah in which the
519     identification is issued;
520          (C) includes date of birth; and
521          (D) has a picture affixed;

522          (iii) a valid driver license certificate that:
523          (A) includes date of birth;
524          (B) has a picture affixed; and
525          (C) is issued:
526          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
527          (II) in accordance with the laws of the state in which it is issued;
528          (iv) a military identification card that:
529          (A) includes date of birth; and
530          (B) has a picture affixed; or
531          (v) a valid passport.
532          (b) "Proof of age" does not include a driving privilege card issued in accordance with
533     Section 53-3-207.
534          (86) (a) "Public building" means a building or permanent structure that is:
535          (i) owned or leased by:
536          (A) the state; or
537          (B) a local government entity; and
538          (ii) used for:
539          (A) public education;
540          (B) transacting public business; or
541          (C) regularly conducting government activities.
542          (b) "Public building" does not include a building owned by the state or a local
543     government entity when the building is used by a person, in whole or in part, for a proprietary
544     function.
545          (87) "Public conveyance" means a conveyance that the public or a portion of the public
546     has access to and a right to use for transportation, including an airline, railroad, bus, boat, or
547     other public conveyance.
548          (88) "Reception center" means a business that:
549          (a) operates facilities that are at least 5,000 square feet; and
550          (b) has as its primary purpose the leasing of the facilities described in Subsection
551     (88)(a) to a third party for the third party's event.
552          (89) "Reception center license" means a license issued in accordance with Chapter 5,

553     Retail License Act, and Chapter 6, Part 8, Reception Center License.
554          (90) (a) "Record" means information that is:
555          (i) inscribed on a tangible medium; or
556          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
557          (b) "Record" includes:
558          (i) a book;
559          (ii) a book of account;
560          (iii) a paper;
561          (iv) a contract;
562          (v) an agreement;
563          (vi) a document; or
564          (vii) a recording in any medium.
565          (91) "Residence" means a person's principal place of abode within Utah.
566          (92) "Resident," in relation to a resort, means the same as that term is defined in
567     Section 32B-8-102.
568          (93) "Resort" means the same as that term is defined in Section 32B-8-102.
569          (94) "Resort facility" is as defined by the commission by rule.
570          (95) "Resort license" means a license issued in accordance with Chapter 5, Retail
571     License Act, and Chapter 8, Resort License Act.
572          (96) "Responsible alcohol service plan" means a written set of policies and procedures
573     that outlines measures to prevent employees from:
574          (a) over-serving alcoholic beverages to customers;
575          (b) serving alcoholic beverages to customers who are actually, apparently, or obviously
576     intoxicated; and
577          (c) serving alcoholic beverages to minors.
578          (97) "Restaurant" means a business location:
579          (a) at which a variety of foods are prepared;
580          (b) at which complete meals are served [to the general public]; and
581          (c) that is engaged primarily in serving meals [to the general public].
582          (98) "Retail license" means one of the following licenses issued under this title:
583          (a) a full-service restaurant license;

584          (b) a master full-service restaurant license;
585          (c) a limited-service restaurant license;
586          (d) a master limited-service restaurant license;
587          (e) a bar establishment license;
588          (f) an airport lounge license;
589          (g) an on-premise banquet license;
590          (h) an on-premise beer license;
591          (i) a reception center license;
592          (j) a beer-only restaurant license;
593          (k) a resort license; or
594          (l) a hotel license.
595          (99) "Room service" means furnishing an alcoholic product to a person in a guest room
596     of a:
597          (a) hotel; or
598          (b) resort facility.
599          (100) (a) "School" means a building used primarily for the general education of minors.
600          (b) "School" does not include an educational facility.
601          (101) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby, for
602     consideration, an alcoholic product is either directly or indirectly transferred, solicited, ordered,
603     delivered for value, or by a means or under a pretext is promised or obtained, whether done by
604     a person as a principal, proprietor, or as staff, unless otherwise defined in this title or the rules
605     made by the commission.
606          (102) "Serve" means to place an alcoholic product before an individual.
607          (103) "Sexually oriented entertainer" means a person who while in a state of
608     seminudity appears at or performs:
609          (a) for the entertainment of one or more patrons;
610          (b) on the premises of:
611          (i) a bar licensee; or
612          (ii) a tavern;
613          (c) on behalf of or at the request of the licensee described in Subsection (103)(b);
614          (d) on a contractual or voluntary basis; and

615          (e) whether or not the person is designated as:
616          (i) an employee;
617          (ii) an independent contractor;
618          (iii) an agent of the licensee; or
619          (iv) a different type of classification.
620          (104) "Single event permit" means a permit issued in accordance with Chapter 9, Part
621     3, Single Event Permit.
622          (105) "Small brewer" means a brewer who manufactures less than 60,000 barrels of
623     beer, heavy beer, and flavored malt beverages per year.
624          (106) "Special use permit" means a permit issued in accordance with Chapter 10,
625     Special Use Permit Act.
626          (107) (a) "Spirituous liquor" means liquor that is distilled.
627          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
628     27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
629          (108) "Sports center" is as defined by the commission by rule.
630          (109) (a) "Staff" means an individual who engages in activity governed by this title:
631          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
632     holder;
633          (ii) at the request of the business, including a package agent, licensee, permittee, or
634     certificate holder; or
635          (iii) under the authority of the business, including a package agent, licensee, permittee,
636     or certificate holder.
637          (b) "Staff" includes:
638          (i) an officer;
639          (ii) a director;
640          (iii) an employee;
641          (iv) personnel management;
642          (v) an agent of the licensee, including a managing agent;
643          (vi) an operator; or
644          (vii) a representative.
645          (110) "State of nudity" means:

646          (a) the appearance of:
647          (i) the nipple or areola of a female human breast;
648          (ii) a human genital;
649          (iii) a human pubic area; or
650          (iv) a human anus; or
651          (b) a state of dress that fails to opaquely cover:
652          (i) the nipple or areola of a female human breast;
653          (ii) a human genital;
654          (iii) a human pubic area; or
655          (iv) a human anus.
656          (111) "State of seminudity" means a state of dress in which opaque clothing covers no
657     more than:
658          (a) the nipple and areola of the female human breast in a shape and color other than the
659     natural shape and color of the nipple and areola; and
660          (b) the human genitals, pubic area, and anus:
661          (i) with no less than the following at its widest point:
662          (A) four inches coverage width in the front of the human body; and
663          (B) five inches coverage width in the back of the human body; and
664          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
665          (112) (a) "State store" means a facility for the sale of packaged liquor:
666          (i) located on premises owned or leased by the state; and
667          (ii) operated by a state employee.
668          (b) "State store" does not include:
669          (i) a package agency;
670          (ii) a licensee; or
671          (iii) a permittee.
672          (113) (a) "Storage area" means an area on licensed premises where the licensee stores
673     an alcoholic product.
674          (b) "Store" means to place or maintain in a location an alcoholic product [from which a
675     person draws to prepare an alcoholic product to be furnished to a patron, except as provided in
676     Subsection 32B-6-205(12)(b)(ii), 32B-6-305(12)(b)(ii), 32B-6-805(15)(b)(ii), or

677     32B-6-905(12)(b)(ii)].
678          (114) "Sublicense" means the same as that term is defined in Section 32B-8-102 or
679     32B-8b-102.
680          (115) "Supplier" means a person who sells an alcoholic product to the department.
681          (116) "Tavern" means an on-premise beer retailer who is:
682          (a) issued a license by the commission in accordance with Chapter 5, Retail License
683     Act, and Chapter 6, Part 7, On-Premise Beer Retailer License; and
684          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
685     On-Premise Beer Retailer License.
686          (117) "Temporary beer event permit" means a permit issued in accordance with
687     Chapter 9, Part 4, Temporary Beer Event Permit.
688          (118) "Temporary domicile" means the principal place of abode within Utah of a
689     person who does not have a present intention to continue residency within Utah permanently or
690     indefinitely.
691          (119) "Translucent" means a substance that allows light to pass through, but does not
692     allow an object or person to be seen through the substance.
693          (120) "Unsaleable liquor merchandise" means a container that:
694          (a) is unsaleable because the container is:
695          (i) unlabeled;
696          (ii) leaky;
697          (iii) damaged;
698          (iv) difficult to open; or
699          (v) partly filled;
700          (b) (i) has faded labels or defective caps or corks;
701          (ii) has contents that are:
702          (A) cloudy;
703          (B) spoiled; or
704          (C) chemically determined to be impure; or
705          (iii) contains:
706          (A) sediment; or
707          (B) a foreign substance; or

708          (c) is otherwise considered by the department as unfit for sale.
709          (121) (a) "Wine" means an alcoholic product obtained by the fermentation of the
710     natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
711     another ingredient is added.
712          (b) "Wine" is considered liquor for purposes of this title, except as otherwise provided
713     in this title.
714          (122) "Winery manufacturing license" means a license issued in accordance with
715     Chapter 11, Part 3, Winery Manufacturing License.
716          Section 2. Section 32B-1-202 is amended to read:
717          32B-1-202. Proximity to community location.
718          (1) As used in this section:
719          (a) (i) "Outlet" means:
720          (A) a state store;
721          (B) a package agency; or
722          (C) a retail licensee.
723          (ii) "Outlet" does not include:
724          (A) an airport lounge licensee; or
725          (B) a restaurant.
726          (b) "Restaurant" means:
727          (i) a full-service restaurant licensee;
728          (ii) a limited-service restaurant licensee; or
729          (iii) a beer-only restaurant licensee.
730          (2) (a) The commission may not issue a license for an outlet if, on the date the
731     commission takes final action to approve or deny the application, there is a community
732     location:
733          (i) within 600 feet of the proposed outlet , as measured from the nearest patron entrance
734     of the proposed outlet by following the shortest route of ordinary pedestrian travel to the
735     property boundary of the community location; or
736          (ii) within 200 feet of the proposed outlet , measured in a straight line from the nearest
737     patron entrance of the proposed outlet to the nearest property boundary of the community
738     location.

739          (b) The commission may not issue a license for a restaurant if, on the date the
740     commission takes final action to approve or deny the application, there is a community
741     location:
742          (i) within 300 feet of the proposed restaurant, as measured from the nearest patron
743     entrance of the proposed restaurant by following the shortest route of ordinary pedestrian travel
744     to the property boundary of the community location; or
745          (ii) within 200 feet of the proposed restaurant, measured in a straight line from the
746     nearest patron entrance of the proposed restaurant to the nearest property boundary of the
747     community location.
748          (3) (a) For an outlet or a restaurant that holds a license on May 9, 2017, and operates
749     under a previously approved variance to one or more proximity requirements in effect before
750     May 9, 2017, subject to the other provisions of this title, that outlet or restaurant, or another
751     outlet or restaurant with the same type of license as that outlet or restaurant, may operate under
752     the previously approved variance regardless of whether:
753          [(a)] (i) the outlet or restaurant changes ownership;
754          [(b)] (ii) the property on which the outlet or restaurant is located changes ownership; or
755          [(c)] (iii) there is a lapse in the use of the property as an outlet or a restaurant with the
756     same type of license, unless during the lapse, the property is used for a different purpose.
757          (b) An outlet or a restaurant that has continuously operated at a location since before
758     January 1, 2007, is considered to have a previously approved variance.
759          (4) (a) If, after an outlet or a restaurant obtains a license under this title, a person
760     establishes a community location on a property that puts the outlet or restaurant in violation of
761     the proximity requirements in effect at the time the license is issued or a previously approved
762     variance described in Subsection (3), subject to the other provisions of this title, that outlet or
763     restaurant, or an outlet or a restaurant with the same type of license as that outlet or restaurant,
764     may operate at the premises regardless of whether:
765          (i) the outlet or restaurant changes ownership;
766          (ii) the property on which the outlet or restaurant is located changes ownership; or
767          (iii) there is a lapse in the use of the property as an outlet or a restaurant with the same
768     type of license, unless during the lapse the property is used for a different purpose.
769          (b) The provisions of this Subsection (4) apply regardless of when the outlet's or

770     restaurant's license is issued.
771          (5) Nothing in this section prevents the commission from considering the proximity of
772     an educational, religious, and recreational facility, or any other relevant factor in reaching a
773     decision on a proposed location of an outlet.
774          Section 3. Section 32B-1-407 is amended to read:
775          32B-1-407. Verification of proof of age by applicable licensees.
776          (1) As used in this section, "applicable licensee" means:
777          (a) a dining club;
778          (b) a bar;
779          (c) a tavern;
780          (d) a full-service restaurant;
781          (e) a limited-service restaurant; or
782          (f) a beer-only restaurant.
783          (2) Notwithstanding any other provision of this part, an applicable licensee shall
784     require that an authorized person for the applicable licensee verify proof of age as provided in
785     this section.
786          (3) An authorized person is required to verify proof of age under this section before an
787     individual who appears to be 35 years of age or younger:
788          (a) gains admittance to the premises of a bar licensee or tavern;
789          (b) procures an alcoholic product on the premises of a dining club licensee; [or]
790          (c) procures an alcoholic product in a dispensing area in the premises of a full-service
791     restaurant licensee, a limited-service restaurant licensee, or a beer-only restaurant licensee[.]; or
792          (d) on or after July 1, 2018, procures an alcoholic product within 10 feet of a
793     grandfathered bar structure.
794          (4) To comply with Subsection (3), an authorized person shall:
795          (a) request the individual present proof of age; and
796          (b) (i) verify the validity of the proof of age electronically under the verification
797     program created in Subsection (5); or
798          (ii) if the proof of age cannot be electronically verified as provided in Subsection
799     (4)(b)(i), request that the individual comply with a process established by the commission by
800     rule.

801          (5) The commission shall establish by rule an electronic verification program that
802     includes the following:
803          (a) the specifications for the technology used by the applicable licensee to
804     electronically verify proof of age, including that the technology display to the person described
805     in Subsection (2) no more than the following for the individual who presents the proof of age:
806          (i) the name;
807          (ii) the age;
808          (iii) the number assigned to the individual's proof of age by the issuing authority;
809          (iv) the birth date;
810          (v) the gender; and
811          (vi) the status and expiration date of the individual's proof of age; and
812          (b) the security measures that shall be used by an applicable licensee to ensure that
813     information obtained under this section is:
814          (i) used by the applicable licensee only for purposes of verifying proof of age in
815     accordance with this section; and
816          (ii) retained by the applicable licensee for seven days after the day on which the
817     applicable licensee obtains the information.
818          (6) (a) An applicable licensee may not disclose information obtained under this section
819     except as provided under this title.
820          (b) Information obtained under this section is considered a record for any purpose
821     under Chapter 5, Part 3, Retail Licensee Operational Requirements.
822          Section 4. Section 32B-1-606 is amended to read:
823          32B-1-606. Special procedure for certain malted beverages.
824          (1) A manufacturer of a malted beverage may not distribute or sell the malted beverage
825     in the state until the day on which the manufacturer receives approval of the labeling and
826     packaging from the department in accordance with :
827          (a) Sections 32B-1-604 and 32B-1-605; and
828          (b) this section, if the malted beverage is labeled or packaged in a manner that is:
829          (i) similar to a label or packaging used for a nonalcoholic beverage; or
830          (ii) likely to confuse or mislead a patron to believe the malted beverage is a
831     nonalcoholic beverage.

832          (2) The department may not approve the labeling and packaging of a malted beverage
833     described in Subsection (1) unless in addition to the requirements of Section 32B-1-604 the
834     labeling and packaging complies with the following:
835          (a) the front of the label on the malted beverage bears a prominently displayed label or
836     a firmly affixed sticker that provides the following information in a font that measures at least
837     three millimeters high:
838          (i) the statement:
839          (A) "alcoholic beverage"; or
840          (B) "contains alcohol"; and
841          (ii) the alcohol content of the [flavored malt] malted beverage[;], if the alcohol content
842     is not otherwise provided:
843          (A) in a serving facts statement on the container; and
844          (B) in a format allowed by the Federal Alcohol and Tobacco Tax Trade Bureau;
845          (b) [the front of] the packaging of the malted beverage prominently includes, either
846     imprinted on the packaging or imprinted on a sticker firmly affixed to the packaging in a font
847     that measures at least three millimeters high, the statement:
848          (i) "alcoholic beverage"; or
849          (ii) "contains alcohol";
850          (c) a statement required by Subsection (2)(a) or (b) appears in a format required by rule
851     made by the commission; and
852          (d) a statement of alcohol content required by Subsection (2)(a)(ii):
853          (i) states the alcohol content as a percentage of alcohol by volume or by weight; and
854          (ii) is in a format required by rule made by the commission.
855          (3) The department may reject a label or packaging that appears designed to obscure
856     the information required by Subsection (2).
857          (4) To determine whether a malted beverage is described in Subsection (1) and subject
858     to this section, the department may consider in addition to other factors one or more of the
859     following factors:
860          (a) whether the coloring, carbonation, and packaging of the malted beverage:
861          (i) is similar to those of a nonalcoholic beverage or product; or
862          (ii) can be confused with a nonalcoholic beverage;

863          (b) whether the malted beverage possesses a character and flavor distinctive from a
864     traditional malted beverage;
865          (c) whether the malted beverage:
866          (i) is prepackaged;
867          (ii) contains high levels of caffeine and other additives; and
868          (iii) is marketed as a beverage that is specifically designed to provide energy;
869          (d) whether the malted beverage contains added sweetener or sugar substitutes; or
870          (e) whether the malted beverage contains an added fruit flavor or other flavor that
871     masks the taste of a traditional malted beverage.
872          Section 5. Section 32B-2-210 is amended to read:
873          32B-2-210. Alcoholic Beverage Control Advisory Board.
874          (1) There is created within the department an advisory board known as the "Alcoholic
875     Beverage Control Advisory Board."
876          (2) The advisory board shall consist of eight voting members and one nonvoting
877     member as follows:
878          (a) four voting members appointed by the commission:
879          (i) one of whom represents the retail alcohol industry;
880          (ii) one of whom represents the wholesale alcohol industry;
881          (iii) one of whom represents the alcohol manufacturing industry; and
882          (iv) one of whom represents the restaurant industry;
883          (b) two voting members appointed by the commission, each of whom represents an
884     organization that addresses alcohol or drug abuse prevention, alcohol or drug related
885     enforcement, or alcohol or drug related education;
886          (c) the director of the Division of Substance Abuse and Mental Health or the director's
887     designee who serves as a voting member;
888          (d) the chair of the Utah Substance Use and Mental Health Advisory Council, or the
889     chair's designee, who serves as a voting member; and
890          (e) the chair of the commission or the chair's designee from the members of the
891     commission, who serves as a nonvoting member.
892          (3) (a) Except as required by Subsection (3)(b), as terms of current voting members of
893     the advisory board expire, the commission shall appoint each new member or reappointed

894     member to a four-year term beginning July 1 and ending June 30.
895          (b) Notwithstanding the requirements of Subsection (3)(a), the commission shall, at the
896     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
897     voting advisory board members are staggered so that approximately half of the advisory board
898     is appointed every two years.
899          (c) No two members of the board may be employed by the same company or nonprofit
900     organization.
901          (4) (a) When a vacancy occurs in the membership for any reason, the commission shall
902     appoint a replacement for the unexpired term.
903          (b) The commission shall terminate the term of a voting advisory board member who
904     ceases to be representative as designated by the member's original appointment.
905          (5) The advisory board shall meet [no more than quarterly] as called by the chair for
906     the purpose of advising the commission and the department, with discussion limited to
907     administrative rules made under this title.
908          (6) The chair of the commission or the chair's designee shall serve as the chair of the
909     advisory board and call the necessary meetings.
910          (7) (a) Five members of the board constitute a quorum of the board.
911          (b) An action of the majority when a quorum is present is the action of the board.
912          (8) The department shall provide staff support to the advisory board.
913          (9) A member may not receive compensation or benefits for the member's service, but
914     may receive per diem and travel expenses in accordance with:
915          (a) Section 63A-3-106;
916          (b) Section 63A-3-107; and
917          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
918     63A-3-107.
919          Section 6. Section 32B-2-605 is amended to read:
920          32B-2-605. Operational requirements for package agency.
921          (1) (a) A person may not operate a package agency until a package agency agreement is
922     entered into by the package agent and the department.
923          (b) A package agency agreement shall state the conditions of operation by which the
924     package agent and the department are bound.

925          (c) (i) If a package agent or staff of the package agent violates this title, rules under this
926     title, or the package agency agreement, the department may take any action against the package
927     agent that is allowed by the package agency agreement.
928          (ii) An action against a package agent is governed solely by its package agency
929     agreement and may include suspension or revocation of the package agency.
930          (iii) A package agency agreement shall provide procedures to be followed if a package
931     agent fails to pay money owed to the department including a procedure for replacing the
932     package agent or operator of the package agency.
933          (iv) A package agency agreement shall provide that the package agency is subject to
934     covert investigations for selling an alcoholic product to a minor.
935          (v) Notwithstanding that this part refers to "package agency" or "package agent," staff
936     of the package agency or package agent is subject to the same requirement or prohibition.
937          (2) (a) A package agency shall be operated by an individual who is either:
938          (i) the package agent; or
939          (ii) an individual designated by the package agent.
940          (b) An individual who is a designee under this Subsection (2) shall be:
941          (i) an employee of the package agent; and
942          (ii) responsible for the operation of the package agency.
943          (c) The conduct of the designee is attributable to the package agent.
944          (d) A package agent shall submit the name of the person operating the package agency
945     to the department for the department's approval.
946          (e) A package agent shall state the name and title of a designee on the application for a
947     package agency.
948          (f) A package agent shall:
949          (i) inform the department of a proposed change in the individual designated to operate
950     a package agency; and
951          (ii) receive prior approval from the department before implementing the change
952     described in this Subsection (2)(f).
953          (g) Failure to comply with the requirements of this Subsection (2) may result in the
954     immediate termination of a package agency agreement.
955          (3) (a) A package agent shall display in a prominent place in the package agency the

956     record issued by the commission that designates the package agency.
957          (b) A package agent that displays or stores liquor at a location visible to the public
958     shall display in a prominent place in the package agency a sign in large letters that consists of
959     text in the following order:
960          (i) a header that reads: "WARNING";
961          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
962     can cause birth defects and permanent brain damage for the child.";
963          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
964     [insert most current toll-free number] with questions or for more information.";
965          (iv) a header that reads: "WARNING"; and
966          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
967     serious crime that is prosecuted aggressively in Utah."
968          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
969     font style than the text described in Subsections (3)(b)(iv) and (v).
970          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
971     same font size.
972          (d) The Department of Health shall work with the commission and department to
973     facilitate consistency in the format of a sign required under this section.
974          (4) A package agency may not display liquor or a price list in a window or showcase
975     that is visible to passersby.
976          (5) (a) A package agency may not purchase liquor from a person except from the
977     department.
978          (b) At the discretion of the department, liquor may be provided by the department to a
979     package agency for sale on consignment.
980          (6) A package agency may not store, sell, offer for sale, or furnish liquor in a place
981     other than as designated in the package agent's application, unless the package agent first
982     applies for and receives approval from the department for a change of location within the
983     package agency premises.
984          (7) A package agency may not sell, offer for sale, or furnish liquor except at a price
985     fixed by the commission.
986          (8) A package agency may not sell, offer for sale, or furnish liquor to:

987          (a) a minor;
988          (b) a person actually, apparently, or obviously intoxicated;
989          (c) a known interdicted person; or
990          (d) a known habitual drunkard.
991          (9) (a) A package agency may not employ a minor to handle liquor.
992          (b) (i) Staff of a package agency may not:
993          (A) consume an alcoholic product on the premises of a package agency; or
994          (B) allow any person to consume an alcoholic product on the premises of a package
995     agency.
996          (ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
997          (10) (a) A package agency may not close or cease operation for a period longer than 72
998     hours, unless:
999          (i) the package agency notifies the department in writing at least seven days before the
1000     closing; and
1001          (ii) the closure or cessation of operation is first approved by the department.
1002          (b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package
1003     agency shall immediately notify the department by telephone.
1004          (c) (i) The department may authorize a closure or cessation of operation for a period
1005     not to exceed 60 days.
1006          (ii) The department may extend the initial period an additional 30 days upon written
1007     request of the package agency and upon a showing of good cause.
1008          (iii) A closure or cessation of operation may not exceed a total of 90 days without
1009     commission approval.
1010          (d) The notice required by Subsection (10)(a) shall include:
1011          (i) the dates of closure or cessation of operation;
1012          (ii) the reason for the closure or cessation of operation; and
1013          (iii) the date on which the package agency will reopen or resume operation.
1014          (e) Failure of a package agency to provide notice and to obtain department
1015     authorization before closure or cessation of operation results in an automatic termination of the
1016     package agency agreement effective immediately.
1017          (f) Failure of a package agency to reopen or resume operation by the approved date

1018     results in an automatic termination of the package agency agreement effective on that date.
1019          (11) A package agency may not transfer its operations from one location to another
1020     location without prior written approval of the commission.
1021          (12) (a) A person, having been issued a package agency, may not sell, transfer, assign,
1022     exchange, barter, give, or attempt in any way to dispose of the package agency to another
1023     person, whether for monetary gain or not.
1024          (b) A package agency has no monetary value for any type of disposition.
1025          (13) (a) Subject to the other provisions of this Subsection (13):
1026          (i) sale or delivery of liquor may not be made on or from the premises of a package
1027     agency, and a package agency may not be kept open for the sale of liquor:
1028          (A) on Sunday; or
1029          (B) on a state or federal legal holiday.
1030          (ii) Sale or delivery of liquor may be made on or from the premises of a package
1031     agency, and a package agency may be open for the sale of liquor, only on a day and during
1032     hours that the commission directs by rule or order.
1033          (b) A package agency located at a manufacturing facility is not subject to Subsection
1034     (13)(a) if:
1035          (i) the package agency is located at a manufacturing facility licensed in accordance
1036     with Chapter 11, Manufacturing and Related Licenses Act;
1037          (ii) the manufacturing facility licensed in accordance with Chapter 11, Manufacturing
1038     and Related Licenses Act, holds:
1039          (A) a full-service restaurant license;
1040          (B) a limited-service restaurant license;
1041          (C) a beer-only restaurant license; [or]
1042          (D) a dining club license; or
1043          (E) a bar license;
1044          (iii) the restaurant [or], dining club, or bar is located at the manufacturing facility;
1045          (iv) the restaurant [or], dining club, or bar sells an alcoholic product produced at the
1046     manufacturing facility;
1047          (v) the manufacturing facility:
1048          (A) owns the restaurant [or], dining club, or bar; or

1049          (B) operates the restaurant [or], dining club, or bar;
1050          (vi) the package agency only sells an alcoholic product produced at the manufacturing
1051     facility; and
1052          (vii) the package agency's days and hours of sale are the same as the days and hours of
1053     sale at the restaurant [or], dining club, or bar.
1054          (c) (i) Subsection (13)(a) does not apply to a package agency held by the following if
1055     the package agent that holds the package agency to sell liquor at a resort or hotel does not sell
1056     liquor in a manner similar to a state store:
1057          (A) a resort licensee; or
1058          (B) a hotel licensee.
1059          (ii) The commission may by rule define what constitutes a package agency that sells
1060     liquor "in a manner similar to a state store."
1061          (14) (a) Except to the extent authorized by commission rule, a minor may not be
1062     admitted into, or be on the premises of, a package agency unless accompanied by a person who
1063     is:
1064          (i) 21 years of age or older; and
1065          (ii) the minor's parent, legal guardian, or spouse.
1066          (b) A package agent or staff of a package agency that has reason to believe that a
1067     person who is on the premises of a package agency is under the age of 21 and is not
1068     accompanied by a person described in Subsection (14)(a) may:
1069          (i) ask the suspected minor for proof of age;
1070          (ii) ask the person who accompanies the suspected minor for proof of age; and
1071          (iii) ask the suspected minor or the person who accompanies the suspected minor for
1072     proof of parental, guardianship, or spousal relationship.
1073          (c) A package agent or staff of a package agency shall refuse to sell liquor to the
1074     suspected minor and to the person who accompanies the suspected minor into the package
1075     agency if the minor or person fails to provide any information specified in Subsection (14)(b).
1076          (d) A package agent or staff of a package agency shall require the suspected minor and
1077     the person who accompanies the suspected minor into the package agency to immediately leave
1078     the premises of the package agency if the minor or person fails to provide information specified
1079     in Subsection (14)(b).

1080          (15) (a) A package agency shall sell, offer for sale, or furnish liquor in a sealed
1081     container.
1082          (b) A person may not open a sealed container on the premises of a package agency.
1083          (c) Notwithstanding Subsection (15)(a), a package agency may sell, offer for sale, or
1084     furnish liquor in other than a sealed container:
1085          (i) if the package agency is the type of package agency that authorizes the package
1086     agency to sell, offer for sale, or furnish the liquor as part of room service;
1087          (ii) if the liquor is sold, offered for sale, or furnished as part of room service; and
1088          (iii) subject to:
1089          (A) staff of the package agency providing the liquor in person only to an adult guest in
1090     the guest room;
1091          (B) staff of the package agency not leaving the liquor outside a guest room for retrieval
1092     by a guest; and
1093          (C) the same limits on the portions in which an alcoholic product may be sold by a
1094     retail licensee under Section 32B-5-304.
1095          (16) On or after October 1, 2011, a package agency may not sell, offer for sale, or
1096     furnish heavy beer in a sealed container that exceeds two liters.
1097          (17) The department may pay or otherwise remunerate a package agent on any basis,
1098     including sales or volume of business done by the package agency.
1099          (18) The commission may prescribe by policy or rule general operational requirements
1100     of a package agency that are consistent with this title and relate to:
1101          (a) physical facilities;
1102          (b) conditions of operation;
1103          (c) hours of operation;
1104          (d) inventory levels;
1105          (e) payment schedules;
1106          (f) methods of payment;
1107          (g) premises security; and
1108          (h) any other matter considered appropriate by the commission.
1109          Section 7. Section 32B-3-102 is amended to read:
1110          32B-3-102. Definitions.

1111          As used in this chapter:
1112          (1) "Aggravating circumstances" means:
1113          (a) prior warnings about compliance problems;
1114          (b) a prior violation history;
1115          (c) a lack of written policies governing employee conduct;
1116          (d) multiple violations during the course of an investigation;
1117          (e) efforts to conceal a violation;
1118          (f) an intentional violation;
1119          (g) the violation involved more than one patron or employee; or
1120          (h) a violation that results in injury or death.
1121          (2) "Final adjudication" means an adjudication for which a final judgment or order is
1122     issued that:
1123          (a) is not appealed, and the time to appeal the judgment has expired; or
1124          (b) is appealed, and is affirmed, in whole or in part, on appeal.
1125          (3) "Mitigating circumstances" means:
1126          (a) no prior violation history for the licensee or permittee;
1127          (b) no prior violation history for the individual who committed the violation;
1128          (c) motive for the individual who engaged in or allowed the violation to retaliate
1129     against the licensee or permittee; or
1130          (d) extraordinary cooperation with the investigation of the violation that demonstrates
1131     that the licensee or permittee and the individual who committed the violation accept
1132     responsibility for the violation.
1133          Section 8. Section 32B-3-205 is amended to read:
1134          32B-3-205. Penalties.
1135          (1) If the commission is satisfied that a person subject to administrative action violates
1136     this title or the commission's rules, in accordance with Title 63G, Chapter 4, Administrative
1137     Procedures Act, the commission may:
1138          (a) suspend or revoke the person's license, permit, or certificate of approval;
1139          (b) subject to Subsection (2), impose a fine against the person, including individual
1140     staff of a licensee, permittee, or certificate holder;
1141          (c) assess the administrative costs of a disciplinary proceeding to the person if the

1142     person is a licensee, permittee, or certificate holder; or
1143          (d) take a combination of actions described in this Subsection (1).
1144          (2) (a) A fine imposed may not exceed $25,000 in the aggregate for:
1145          (i) a single notice of agency action; or
1146          (ii) a single action against a package agency.
1147          (b) The commission shall by rule establish a schedule setting forth a range of fines for
1148     each violation.
1149          (c) When a presiding officer imposes a fine, the presiding officer shall consider any
1150     aggravating circumstances or mitigating circumstances in deciding where within the applicable
1151     range to set the fine.
1152          (3) The commission shall transfer the costs assessed under this section into the General
1153     Fund in accordance with Section 32B-2-301.
1154          (4) (a) If a license or permit is suspended under this section, the licensee or permittee
1155     shall prominently display a sign provided by the department:
1156          (i) during the suspension; and
1157          (ii) at the entrance of the premises of the licensee or permittee.
1158          (b) The sign required by this Subsection (4) shall:
1159          (i) read "The Utah Alcoholic Beverage Control Commission has suspended the
1160     alcoholic product license or permit of this establishment. An alcoholic product may not be
1161     sold, offered for sale, furnished, or consumed on these premises during the period of
1162     suspension."; and
1163          (ii) include the dates of the suspension period.
1164          (c) A licensee or permittee may not remove, alter, obscure, or destroy a sign required to
1165     be displayed under this Subsection (4) during the suspension period.
1166          (5) (a) If a license or permit is revoked, the commission may order the revocation of a
1167     bond posted by the licensee or permittee under this title.
1168          (b) Notwithstanding Subsection (5)(a), the department may make a claim against a
1169     bond posted by a licensee or permittee for money owed the department under this title without
1170     the commission first revoking the license or permit.
1171          (6) A licensee or permittee whose license or permit is revoked may not reapply for a
1172     license or permit under this title for three years from the date on which the license or permit is

1173     revoked.
1174          (7) If a staff member of a licensee, permittee, or certificate holder is found to have
1175     violated this title, in addition to imposing another penalty authorized by this title, the
1176     commission may prohibit the staff member from handling, selling, furnishing, distributing,
1177     manufacturing, wholesaling, or warehousing an alcoholic product in the course of acting as
1178     staff with a licensee, permittee, or certificate holder under this title for a period determined by
1179     the commission.
1180          (8) (a) If the commission makes the finding described in Subsection (8)(b), in addition
1181     to other penalties prescribed by this title, the commission may order:
1182          (i) the removal of an alcoholic product of the manufacturer's, supplier's, or importer's
1183     from the department's sales list; and
1184          (ii) a suspension of the department's purchase of an alcoholic product described in
1185     Subsection (8)(a)(i) for a period determined by the commission.
1186          (b) The commission may take the action described in Subsection (8)(a) if:
1187          (i) a manufacturer, supplier, or importer of liquor or its staff or representative violates
1188     this title; and
1189          (ii) the manufacturer, supplier, or importer:
1190          (A) directly commits the violation; or
1191          (B) solicits, requests, commands, encourages, or intentionally aids another to engage in
1192     the violation.
1193          (9) If the commission makes a finding that the brewer holding a certificate of approval
1194     violates this title or rules of the commission, the commission may take an action against the
1195     brewer holding a certificate of approval that the commission could take against a licensee
1196     including:
1197          (a) suspension or revocation of the certificate of approval; and
1198          (b) imposition of a fine.
1199          (10) Notwithstanding the other provisions of this title, the commission may not order a
1200     disciplinary action or fine in accordance with this section if the disciplinary action or fine is
1201     ordered on the basis of a violation:
1202          (a) of a provision in this title related to intoxication or becoming intoxicated; and
1203          (b) if the violation is first investigated by a law enforcement officer, as defined in

1204     Section 53-13-103, who has not received training regarding the requirements of this title
1205     related to responsible alcoholic product sale or service.
1206          (11) The commission shall expunge each record that relates to an individual's violation
1207     of a provision of this title, if the individual does not violate a provision of this title for a period
1208     of 36 consecutive months from the day on which the individual's last violation was adjudicated.
1209          Section 9. Section 32B-4-415 is amended to read:
1210          32B-4-415. Unlawful bringing onto premises for consumption.
1211          (1) Except as provided in Subsection (4) and Subsection 32B-5-307(4), a person may
1212     not bring an alcoholic product for on-premise consumption onto the premises of:
1213          (a) a retail licensee or person required to be licensed under this title as a retail licensee;
1214          (b) an establishment that conducts a business similar to a retail licensee;
1215          (c) an event where an alcoholic product is sold, offered for sale, or furnished under a
1216     single event permit or temporary beer event permit issued under this title;
1217          (d) an establishment open to the general public; or
1218          (e) the capitol hill complex.
1219          (2) Except as provided in Subsection (4) and Subsection 32B-5-307(4), the following
1220     may not allow a person to bring onto its premises an alcoholic product for on-premise
1221     consumption or allow consumption of an alcoholic product brought onto its premises in
1222     violation of this section:
1223          (a) a retail licensee or a person required to be licensed under this title as a retail
1224     licensee;
1225          (b) an establishment that conducts a business similar to a retail licensee;
1226          (c) a single event permittee or temporary beer event permittee;
1227          (d) an establishment open to the general public;
1228          (e) the State Capitol Preservation Board created in Section 63C-9-201; or
1229          (f) staff of a person listed in Subsections (2)(a) through (e).
1230          (3) Except as provided in Subsection (4)(c)(i)(A), a person may not consume an
1231     alcoholic product in a limousine or chartered bus if the limousine or chartered bus drops off a
1232     passenger at:
1233          (a) a location from which the passenger departs in a private vehicle; or
1234          (b) the capitol hill complex.

1235          (4) (a) A person may bring bottled wine onto the premises of the following and
1236     consume the wine pursuant to Section 32B-5-307:
1237          (i) a full-service restaurant licensee;
1238          (ii) a limited restaurant licensee;
1239          (iii) a bar establishment licensee; or
1240          (iv) a person operating under a resort spa sublicense.
1241          (b) A passenger of a limousine may bring onto, possess, and consume an alcoholic
1242     product in the limousine if:
1243          (i) the travel of the limousine begins and ends at:
1244          (A) the residence of the passenger;
1245          (B) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
1246          (C) the temporary domicile of the passenger;
1247          (ii) the driver of the limousine is separated from the passengers by partition or other
1248     means approved by the department; and
1249          (iii) the limousine is not located on the capitol hill complex.
1250          (c) A passenger of a chartered bus may bring onto, possess, and consume an alcoholic
1251     product on the chartered bus:
1252          (i) (A) but may consume only during travel to a specified destination of the chartered
1253     bus and not during travel back to the place where the travel begins; or
1254          (B) if the travel of the chartered bus begins and ends at:
1255          (I) the residence of the passenger;
1256          (II) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
1257          (III) the temporary domicile of the passenger;
1258          (ii) if the chartered bus has a nondrinking designee other than the driver traveling on
1259     the chartered bus to monitor consumption; and
1260          (iii) if the chartered bus is not located on the capitol hill complex.
1261          (5) A person may bring onto any premises, possess, and consume an alcoholic product
1262     at a private event.
1263          (6) Notwithstanding Subsection (5), private and public facilities may prohibit the
1264     possession or consumption of alcohol on their premises.
1265          (7) The restrictions of Subsections (2) and (3) apply to a resort licensee or hotel

1266     licensee or person operating under a sublicense in relationship to:
1267          (a) the boundary of a resort building or boundary of a hotel in an area that is open to
1268     the public; or
1269          (b) except as provided in Subsection (4), a sublicense premises.
1270          Section 10. Section 32B-5-202 is amended to read:
1271          32B-5-202. Renewal requirements.
1272          (1) A retail license expires each year on the day specified in the relevant part under
1273     Chapter 6, Specific Retail License Act, for that type of retail license.
1274          (2) (a) To renew a person's retail license, a retail licensee shall, by no later than the day
1275     specified in the relevant part under Chapter 6, Specific Retail License Act, for the type of retail
1276     license that is being renewed, submit:
1277          [(a)] (i) a completed renewal application [that includes a responsible alcohol service
1278     plan to the department] in a form prescribed by the department; and
1279          [(b)] (ii) a renewal fee in the amount specified in the relevant part under Chapter 6,
1280     Specific Retail License Act, for the type of retail license that is being renewed.
1281          (b) A retail licensee shall submit a responsible alcohol service plan as part of the retail
1282     licensee's renewal application if, since the retail licensee's most recent application or renewal,
1283     the retail licensee:
1284          (i) made substantial changes to the retail licensee's responsible alcohol service plan; or
1285          (ii) violated a provision of this chapter.
1286          (c) The department may audit a retail licensee's responsible alcohol service plan.
1287          (3) Failure to meet the renewal requirements results in an automatic forfeiture of the
1288     retail license effective on the date the existing retail license expires.
1289          Section 11. Section 32B-5-207 is amended to read:
1290          32B-5-207. Multiple retail licenses on same premises.
1291          (1) As used in this section, "sublicense premises" means the same as that term is
1292     defined in Sections 32B-8-102 and 32B-8b-102.
1293          [(1) (a) (i)] (2) (a) The commission may not issue and one or more licensees may not
1294     hold more than one type of retail license for the same [room] premises.
1295          [(ii) The commission may define "room" by rule made in accordance with Title 63G,
1296     Chapter 3, Utah Administrative Rulemaking Act.]

1297          (b) Notwithstanding Subsection [(1)] (2)(a), the commission may issue and one or
1298     more licensees may hold more than one type of retail license for the same [room] premises if:
1299          (i) the applicant or licensee satisfies the requirements for each retail license;
1300          (ii) the types of retail licenses issued or held are two or more of the following:
1301          (A) a restaurant license;
1302          (B) an on-premise beer retailer license that is not a tavern; and
1303          (C) an on-premise banquet license or a reception center license; and
1304          (iii) the retail licenses do not operate at the same time on the same day.
1305          [(2)] (3) When one or more licensees hold more than one type of retail license for the
1306     same [room] premises under Subsection [(1)] (2)(b), the one or more licensees shall post in a
1307     conspicuous location at the entrance of the room a sign that:
1308          (a) measures 8-1/2 inches by 11 inches; and
1309          (b) states whether the premises is currently operating as:
1310          (i) a restaurant;
1311          (ii) an on-premise beer retailer that is not a tavern; or
1312          (iii) a banquet or a reception center.
1313          (4) (a) The commission may not issue and one or more licensees may not hold a bar
1314     license or a tavern license in the same room as a restaurant license.
1315          (b) For purposes of Subsection (4)(a), two licenses are not considered in the same room
1316     if:
1317          (i) each shared permanent wall between the premises licensed as a bar or a tavern and
1318     the premises licensed as a restaurant measures at least eight feet high;
1319          (ii) the premises for each license has a separate entryway that does not require a patron
1320     to pass through the premises licensed as a bar or a tavern to access the premises licensed as a
1321     restaurant; and
1322          (iii) if a patron must pass through the premises licensed as a restaurant to access the
1323     entryway to the premises licensed as a bar or a tavern, a patron on the premises licensed as a
1324     restaurant cannot see a dispensing structure on the premises licensed as a bar or a tavern.
1325          [(3)] (5) (a) If, on May 9, 2017, one or more licensees hold more than one type of retail
1326     license [for the same room] in violation of Subsection [(1)] (2) or (4), the one or more licensees
1327     may operate under the different types of retail licenses through June 30, 2018.

1328          (b) A licensee may not operate in violation of Subsection [(1)] (2) or (4) on or after
1329     July 1, 2018.
1330          (c) Before July 1, 2018, each licensee described in Subsection [(3)] (5)(a) shall notify
1331     the commission of each retail license that the licensee will surrender effective July 1, 2018, to
1332     comply with the provisions of Subsection [(1)] (2) or (4).
1333          (d) The commission shall establish by rule, made in accordance with Title 63G,
1334     Chapter 3, Utah Administrative Rulemaking Act, a procedure by which a licensee surrenders a
1335     retail license under this Subsection [(3)] (5).
1336          (6) (a) The commission may issue more than one type of sublicense to a resort licensed
1337     under Chapter 8, Resort License Act, or a hotel licensed under Chapter 8b, Hotel License Act,
1338     for the same room if the sublicense premises are clearly delineated by one or more permanent
1339     physical structures, such as a wall or other architectural feature, that separate the sublicense
1340     premises.
1341          (b) A patron may not transport an alcoholic beverage between two sublicense premises
1342     located in the same room in accordance with Subsection (6)(a).
1343          (c) Notwithstanding any provision to the contrary, a minor may momentarily pass
1344     through a sublicense premises that is a bar to reach another location where a minor may
1345     lawfully be, if there is no practical alternative route to the location.
1346          Section 12. Section 32B-5-307 is amended to read:
1347          32B-5-307. Bringing alcoholic product onto or removing alcoholic product from
1348     premises.
1349          (1) Except as provided in Subsection (3):
1350          (a) A person may not bring onto the licensed premises of a retail licensee an alcoholic
1351     product for on-premise consumption.
1352          (b) A retail licensee may not allow a person to:
1353          (i) bring onto licensed premises an alcoholic product for on-premise consumption; or
1354          (ii) consume an alcoholic product brought onto the licensed premises by a person other
1355     than the retail licensee.
1356          (c) A retail licensee may not sell, offer for sale, or furnish an alcoholic product through
1357     a window or door to a location off the licensed premises or to a vehicular traffic area.
1358          (2) Except as provided in [Subsection (3)] Subsections (3), (4), and 32B-4-415(5):

1359          (a) a person may not carry from a licensed premises of a retail licensee an open
1360     container that:
1361          (i) is used primarily for drinking purposes; and
1362          (ii) contains an alcoholic product[.];
1363          (b) a retail licensee may not permit a patron to carry from the licensed premises an
1364     open container described in Subsection (2)(a)[.]; and
1365          [(c) Except as provided in Subsection (3)(d) or Subsection 32B-4-415(5):]
1366          (c) (i) a person may not carry from a licensed premises of a retail licensee a sealed
1367     container of liquor that has been purchased from the retail licensee; and
1368          (ii) a retail licensee may not permit a patron to carry from the licensed premises a
1369     sealed container of liquor that has been purchased from the retail licensee.
1370          (3) (a) A patron may bring a bottled wine onto the premises of a retail licensee for
1371     on-premise consumption if:
1372          (i) permitted by the retail licensee; and
1373          (ii) the retail licensee is authorized to sell, offer for sale, or furnish wine.
1374          (b) If a patron carries bottled wine onto the licensed premises of a retail licensee, the
1375     patron shall deliver the bottled wine to a server or other representative of the retail licensee
1376     upon entering the licensed premises.
1377          (c) A retail licensee authorized to sell, offer for sale, or furnish wine, may provide a
1378     wine service for a bottled wine carried onto the licensed premises in accordance with this
1379     Subsection (3) or a bottled wine purchased at the licensed premises.
1380          (d) A patron may remove from a licensed premises the unconsumed contents of a bottle
1381     of wine purchased at the licensed premises, or brought onto the licensed premises in
1382     accordance with this Subsection (3), only if before removal the bottle is recorked or recapped.
1383          (4) A patron may transport beer between the premises of an on-premise banquet license
1384     and an on-premise beer retailer license that is not a tavern, and consume the beer on either
1385     licensed premises, if the licensed premises are:
1386          (a) immediately adjacent to one another; and
1387          (b) located in a sports center that has a seating capacity of at least 6,500.
1388          Section 13. Section 32B-5-308 is amended to read:
1389          32B-5-308. Requirements on staff or others on premises -- Employing a minor.

1390          (1) Staff of a retail licensee, while on duty, may not:
1391          (a) consume an alcoholic product; or
1392          (b) be intoxicated.
1393          (2) (a) A retail licensee may not employ a minor to sell, offer for sale, furnish, or
1394     dispense an alcoholic product.
1395          (b) Notwithstanding Subsection (2)(a), unless otherwise prohibited in the provisions
1396     related to the specific type of retail license, a retail licensee may employ a minor who is at least
1397     16 years of age to enter the sale at a cash register or other sales recording device.
1398          (3) A full-service restaurant licensee, limited-service restaurant licensee, or beer-only
1399     restaurant licensee may employ a minor who is at least 18 years of age to bus tables, including
1400     containers that contain an alcoholic product.
1401          Section 14. Section 32B-5-405 is amended to read:
1402          32B-5-405. Department training programs.
1403          (1) No later than January 1, 2018, the department shall develop the following training
1404     programs that are provided either in-person or online:
1405          (a) a training program for retail managers that addresses:
1406          (i) the statutes and rules that govern alcohol sales and consumption in the state;
1407          (ii) the requirements for operating as a retail licensee;
1408          (iii) using compliance assistance from the department; and
1409          (iv) any other topic the department determines beneficial to a retail manager; and
1410          (b) a training program for an individual employed by a retail licensee or an off-premise
1411     beer retailer who violates a provision of this title related to the sale, service, or furnishing of an
1412     alcoholic beverage to an intoxicated individual or a minor, that addresses:
1413          (i) the statutes and rules that govern the most common types of violations under this
1414     title;
1415          (ii) how to avoid common violations; and
1416          (iii) any other topic the department determines beneficial to the training program.
1417          (2) No later than January 1, 2019, the department shall develop a training program for
1418     off-premise retail managers that is provided either in-person or online and addresses:
1419          (a) the statutes and rules that govern sales at an off-premise beer retailer;
1420          (b) the requirements for operating an off-premise beer retailer;

1421          (c) using compliance assistance from the department; and
1422          (d) any other topic the department determines beneficial to an off-premise retail
1423     manager.
1424          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
1425     the provisions of this section, the department shall make rules to develop and implement the
1426     training programs described in this section, including rules that establish:
1427          (a) the requirements for each training program described in this section;
1428          (b) measures that accurately identify each individual who takes and completes a
1429     training program;
1430          (c) measures that ensure an individual taking a training program is focused and actively
1431     engaged in the training material throughout the training program;
1432          (d) a record that certifies that an individual has completed a training program; and
1433          (e) a fee for participation in a training program to cover the department's cost of
1434     providing the training program.
1435          (4) (a) Except as provided in Subsection (5), each retail manager shall[: (i)] complete
1436     the training described in Subsection (1)(a) no later than the earlier of:
1437          [(A)] (i) 30 days after the day on which the retail manager is hired; or
1438          [(B)] (ii) before the day on which the retail licensee obtains a retail license under this
1439     chapter[; and].
1440          [(ii) retake the training program described in Subsection (1)(a) once every three years.]
1441          (b) Except as provided in Subsection (5), each off-premise retail manager shall[: (i)]
1442     complete the training described in Subsection (2) no later than the earlier of:
1443          [(A)] (i) 30 days after the day on which the off-premise retail manager is hired; or
1444          [(B)] (ii) before the day on which the off-premise beer retailer obtains an off-premise
1445     beer retailer state license[; and].
1446          [(ii) retake the training program described in Subsection (2) once every three years.]
1447          (c) (i) If the commission finds that [an individual employed by] a retail licensee
1448     violated a provision of this title related to the sale, service, or furnishing of an alcoholic
1449     beverage to an intoxicated individual or a minor for a second time [while employed by the
1450     same retail licensee] within 36 consecutive months after the day on which the first violation
1451     was adjudicated, the violator, all retail staff, and each retail manager shall complete the training

1452     program described in Subsection (1)(b).
1453          (ii) If the commission finds that [an individual employed by] an off-premise beer
1454     retailer violated a provision of this title related to the sale, service, or furnishing of an alcoholic
1455     beverage to an intoxicated individual or a minor for a second time [while employed by the
1456     same off-premise beer retailer] within 36 consecutive months after the day on which the first
1457     violation was adjudicated, the violator and each off-premise retail manager shall complete the
1458     training program described in Subsection (1)(b).
1459          (5) (a) For a person who holds a retail license on January 1, 2018, each retail manager
1460     shall complete the training program described in Subsection (1)(a) for the first time as a
1461     condition of renewing the licensee's retail license in 2018.
1462          (b) For a person who holds an off-premise beer retailer state license on January 1,
1463     2019, each off-premise retail manager shall complete the training program described in
1464     Subsection (1)(b) for the first time as a condition of renewing the licensee's off-premise beer
1465     retailer state license in 2019.
1466          (6) If an individual fails to complete a required training program under this section:
1467          (a) the commission may suspend, revoke, or not renew the retail license or off-premise
1468     beer retailer state license;
1469          (b) a city, town, metro township, or county in which the retail licensee or off-premise
1470     beer retailer is located may suspend, revoke, or not renew the retail licensee's or off-premise
1471     beer retailer's business license; or
1472          (c) a local authority may suspend, revoke, or not renew the off-premise beer retailer's
1473     license.
1474          Section 15. Section 32B-5-406 is amended to read:
1475          32B-5-406. Tracking certain enforcement actions.
1476          (1) For each violation of a provision of this title involving the sale of an alcoholic
1477     product to a minor that staff of a retail licensee commits, the commission shall:
1478          (a) maintain a record of the violation until the record is expunged in accordance with
1479     Subsection (3);
1480          (b) include in the record described in Subsection (1)(a):
1481          (i) the name of the individual who committed the violation;
1482          (ii) the name of the retail licensee; and

1483          (iii) the date of the adjudication of the violation; and
1484          (c) provide the information described in Subsection (1)(b) to the Department of Public
1485     Safety within 30 days after the day on which the violation is adjudicated.
1486          (2) (a) The Department of Public Safety shall develop and operate a system to collect,
1487     analyze, maintain, track, and disseminate the information that the Department of Public Safety
1488     receives in accordance with Subsection (1).
1489          (b) The Department of Public Safety shall make the system described in Subsection
1490     (2)(a) available to:
1491          (i) assist the commission in assessing penalties under this title; and
1492          (ii) inform a retail licensee of an individual who has a violation history in the system.
1493          (3) The commission and the Department of Public Safety shall expunge each record in
1494     the system described in Subsection (2) that relates to an individual if the individual does not
1495     violate a provision of this title related to the sale of an alcoholic product to a minor for a period
1496     of 36 consecutive months from the day on which the [individual was last found to have
1497     violated a provision of this title related to the sale of an alcoholic product to a minor]
1498     individual's last violation related to the sale of an alcoholic product to a minor was adjudicated.
1499          Section 16. Section 32B-6-202 is amended to read:
1500          32B-6-202. Definitions.
1501          As used in this part:
1502          (1) (a) "Dining area" means an area in the licensed premises of a full-service restaurant
1503     licensee that is primarily used for the service and consumption of food by one or more patrons.
1504          (b) "Dining area" does not include a dispensing area.
1505          (2) (a) "Dispensing area" means an area in the licensed premises of a full-service
1506     restaurant licensee where a dispensing structure is located and that:
1507          (i) is physically separated from the dining area and any waiting area by a structure or
1508     other barrier that prevents a patron seated in the dining area or a waiting area from viewing the
1509     dispensing of alcoholic product;
1510          (ii) except as provided in Subsection (2)(b), measures at least 10 feet from [any area
1511     where alcoholic product is dispensed to] the dining area and any waiting area[, measured from
1512     the point of the area where alcoholic product is dispensed that is closest to the dining area or
1513     waiting area] to the nearest edge of the dispensing structure; or

1514          (iii) is physically separated from the dining area and any waiting area by a permanent
1515     physical structure that complies with the provisions of Title 15A, State Construction and Fire
1516     Codes Act, and, to the extent allowed under Title 15A, State Construction and Fire Codes Act,
1517     measures:
1518          (A) at least 42 inches high; and
1519          (B) at least 60 inches from the inside edge of the barrier to the nearest edge of the
1520     dispensing structure.
1521          (b) "Dispensing area" does not include any area described in Subsection (2)(a)(ii) that
1522     is less than 10 feet from an area where alcoholic product is dispensed, but from which a patron
1523     seated at a table or counter cannot view the dispensing of alcoholic product.
1524          (3) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
1525     full-service restaurant licensee that:
1526          (i) as of May 11, 2009, has:
1527          (A) patron seating at the bar structure;
1528          (B) a partition at one or more locations on the bar structure that is along:
1529          (I) the width of the bar structure; or
1530          (II) the length of the bar structure; and
1531          (C) facilities for the dispensing or storage of an alcoholic product:
1532          (I) on the portion of the bar structure that is separated by the partition described in
1533     Subsection (3)(a)(i)(B); or
1534          (II) if the partition as described in Subsection (3)(a)(i)(B)(II) is adjacent to the bar
1535     structure in a manner visible to a patron sitting at the bar structure;
1536          (ii) is not operational as of May 12, 2009, if:
1537          (A) a person applying for a full-service restaurant license:
1538          (I) has as of May 12, 2009, a building permit to construct the restaurant;
1539          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
1540     defined by rule made by the commission; and
1541          (III) is issued the full-service restaurant license by no later than December 31, 2009;
1542     and
1543          (B) once constructed, the licensed premises has a bar structure described in Subsection
1544     (3)(a)(i);

1545          (iii) as of May 12, 2009, has no patron seating at the bar structure; or
1546          (iv) is not operational as of May 12, 2009, if:
1547          (A) a person applying for a full-service restaurant license:
1548          (I) has as of May 12, 2009, a building permit to construct the restaurant;
1549          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
1550     defined by rule made by the commission; and
1551          (III) is issued a full-service restaurant license by no later than December 31, 2009; and
1552          (B) once constructed, the licensed premises has a bar structure with no patron seating.
1553          (b) "Grandfathered bar structure" does not include a grandfathered bar structure
1554     described in Subsection (3)(a) on or after the day on which a restaurant remodels the
1555     grandfathered bar structure, as defined by rule made by the commission.
1556          (c) Subject to Subsection (3)(b), a grandfathered bar structure remains a grandfathered
1557     bar structure notwithstanding whether a restaurant undergoes a change of ownership.
1558          (4) "Seating grandfathered bar structure" means:
1559          (a) a grandfathered bar structure described in Subsection (3)(a)(i) or (ii); or
1560          (b) a bar structure grandfathered under Section 32B-6-409.
1561          (5) "Small full-service restaurant licensee" means a converted full-service restaurant
1562     licensee as defined in Section 32B-6-404.1 or a full-service restaurant licensee that has a
1563     grandfathered bar structure, whose dispensing area includes more than 45% of the available
1564     seating for patrons on the licensed premises, excluding outdoor seating:
1565          (a) when measured in accordance with Subsection (2)(a)(ii); and
1566          (b) based on the licensee's floor plan on file with the department on July 1, 2017.
1567          [(5)] (6) "Waiting area" includes a lobby.
1568          Section 17. Section 32B-6-205 is amended to read:
1569          32B-6-205. Specific operational requirements for a full-service restaurant license
1570     -- Before July 1, 2018, or July 1, 2022.
1571          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
1572     Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
1573     shall comply with this section.
1574          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
1575     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

1576          (i) a full-service restaurant licensee;
1577          (ii) individual staff of a full-service restaurant licensee; or
1578          (iii) both a full-service restaurant licensee and staff of the full-service restaurant
1579     licensee.
1580          (2) In addition to complying with Subsection 32B-5-301(3), a full-service restaurant
1581     licensee shall[: (a)] display in a prominent place in the restaurant a list of the types and brand
1582     names of liquor being furnished through the full-service restaurant licensee's calibrated metered
1583     dispensing system[; and].
1584          [(b) display in a conspicuous place at the entrance to the licensed premises a sign
1585     approved by the commission that:]
1586          [(i) measures at least 8-1/2 inches long and 11 inches wide; and]
1587          [(ii) clearly states that the full-service restaurant licensee is a restaurant and not a bar.]
1588          (3) In addition to complying with Section 32B-5-303, a full-service restaurant licensee
1589     shall store an alcoholic product in a storage area described in Subsection (12)(a).
1590          (4) (a) An individual who serves an alcoholic product in a full-service restaurant
1591     licensee's premises shall make a written beverage tab for each table or group that orders or
1592     consumes an alcoholic product on the premises.
1593          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
1594     alcoholic product ordered or consumed.
1595          (5) A person's willingness to serve an alcoholic product may not be made a condition
1596     of employment as a server with a full-service restaurant licensee.
1597          (6) (a) A full-service restaurant licensee may sell, offer for sale, or furnish liquor at the
1598     licensed premises during the following time periods only:
1599          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
1600          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
1601     period that begins at 10:30 a.m. and ends at 11:59 p.m.
1602          (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer at the
1603     licensed premises during the following time periods only:
1604          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
1605          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
1606     period that begins at 10:30 a.m. and ends at 12:59 a.m.

1607          (7) A full-service restaurant licensee shall maintain at least 70% of its total restaurant
1608     business from the sale of food, which does not include:
1609          (a) mix for an alcoholic product; or
1610          (b) a service charge.
1611          (8) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
1612     alcoholic product except after the full-service restaurant licensee confirms that the patron has
1613     the intent to order food prepared, sold, and furnished at the licensed premises.
1614          (b) A full-service restaurant licensee shall maintain on the licensed premises adequate
1615     culinary facilities for food preparation and dining accommodations.
1616          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
1617     more than two alcoholic products of any kind at a time before the patron.
1618          (b) A patron may not have more than one spirituous liquor drink at a time before the
1619     patron.
1620          (c) An individual portion of wine is considered to be one alcoholic product under
1621     Subsection (9)(a).
1622          (10) A patron may consume an alcoholic product only :
1623          (a) at:
1624          (i) the patron's table;
1625          (ii) a counter; or
1626          (iii) a seating grandfathered bar structure ; and
1627          (b) where food is served.
1628          (11) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
1629     alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
1630     structure that is not a seating grandfathered bar structure.
1631          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
1632     may:
1633          (i) sit;
1634          (ii) be furnished an alcoholic product; and
1635          (iii) consume an alcoholic product.
1636          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
1637     full-service restaurant licensee may not permit a minor to, and a minor may not:

1638          (i) sit; or
1639          (ii) consume food or beverages.
1640          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is
1641     employed by a full-service restaurant licensee:
1642          (A) as provided in Subsection 32B-5-308(2); or
1643          (B) to perform maintenance and cleaning services during an hour when the full-service
1644     restaurant licensee is not open for business.
1645          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
1646     remaining or sitting at the bar structure en route to an area of a full-service restaurant licensee's
1647     premises in which the minor is permitted to be.
1648          (12) Except as provided in Subsection 32B-5-307(3), a full-service restaurant licensee
1649     may dispense an alcoholic product only if:
1650          (a) the alcoholic product is dispensed from:
1651          (i) a grandfathered bar structure;
1652          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
1653     the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
1654     12, 2009; or
1655          (iii) an area that is:
1656          (A) separated from an area for the consumption of food by a patron by a solid,
1657     translucent, permanent structural barrier such that the facilities for the storage or dispensing of
1658     an alcoholic product are:
1659          (I) not readily visible to a patron; and
1660          (II) not accessible by a patron; and
1661          (B) apart from an area used:
1662          (I) for dining;
1663          (II) for staging; or
1664          (III) as a lobby or waiting area;
1665          (b) the full-service restaurant licensee uses an alcoholic product that is:
1666          (i) stored in an area described in Subsection (12)(a); or
1667          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
1668          (A) immediately before the alcoholic product is dispensed it is in an unopened

1669     container; (B) the unopened container is taken to an area described in Subsection (12)(a) before
1670     it is opened; and (C) once opened, the container is stored in an area described in Subsection
1671     (12)(a); and
1672          (c) any instrument or equipment used to dispense alcoholic product is located in an
1673     area described in Subsection (12)(a).
1674          (13) A full-service restaurant licensee may state in a food or alcoholic product menu a
1675     charge or fee made in connection with the sale, service, or consumption of liquor including:
1676          (a) a set-up charge;
1677          (b) a service charge; or
1678          (c) a chilling fee.
1679          (14) Beginning on July 1, 2018, a minor may not sit, remain, or consume food or
1680     beverages within 10 feet of a grandfathered bar structure, unless:
1681          (a) seating within 10 feet of the grandfathered bar structure is the only seating available
1682     in the licensed premises; and
1683          (b) the minor is accompanied by an individual who is 21 years of age or older.
1684          (15) Except as provided in Subsection 32B-6-205.2[(18)](16) and Section
1685     32B-6-205.3, the provisions of this section apply before July 1, 2018.
1686          Section 18. Section 32B-6-205.2 is amended to read:
1687          32B-6-205.2. Specific operational requirements for a full-service restaurant
1688     license -- On and after July 1, 2018, or July 1, 2022.
1689          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
1690     Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
1691     shall comply with this section.
1692          (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in
1693     accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
1694          (i) a full-service restaurant licensee;
1695          (ii) individual staff of a full-service restaurant licensee; or
1696          (iii) both a full-service restaurant licensee and staff of the full-service restaurant
1697     licensee.
1698          [(2) In addition to complying with Subsection 32B-5-301(3), a full-service restaurant
1699     licensee shall display in a conspicuous place at the entrance to the licensed premises a sign

1700     approved by the commission that:]
1701          [(a) measures at least 8-1/2 inches long and 11 inches wide; and]
1702          [(b) clearly states that the full-service restaurant licensee is a restaurant and not a bar.]
1703          [(3) In addition to complying with Section 32B-5-303, a full-service restaurant licensee
1704     shall store an alcoholic product in a storage area described in Subsection (13) (a).]
1705          [(4)] (2) (a) An individual who serves an alcoholic product in a full-service restaurant
1706     licensee's premises shall make a beverage tab for each table or group that orders or consumes
1707     an alcoholic product on the premises.
1708          (b) A beverage tab described in this Subsection [(4)] (2) shall state the type and amount
1709     of each alcoholic product ordered or consumed.
1710          [(5)] (3) A full-service restaurant licensee may not make an individual's willingness to
1711     serve an alcoholic product a condition of employment with a full-service restaurant licensee.
1712          [(6)] (4) (a) A full-service restaurant licensee may sell, offer for sale, or furnish liquor
1713     at the licensed premises during the following time periods only:
1714          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
1715          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
1716     period that begins at 10:30 a.m. and ends at 11:59 p.m.
1717          (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer at the
1718     licensed premises during the following time periods only:
1719          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
1720          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
1721     period that begins at 10:30 a.m. and ends at 12:59 a.m.
1722          [(7)] (5) A full-service restaurant licensee shall maintain at least 70% of the
1723     full-service restaurant licensee's total restaurant business from the sale of food, which does not
1724     include:
1725          (a) mix for an alcoholic product; or
1726          (b) a service charge.
1727          [(8)] (6) (a) A full-service restaurant licensee may not [sell, offer for sale, or] furnish
1728     an alcoholic product except after:
1729          (i) the patron to whom the full-service restaurant licensee [sells, offers for sale, or]
1730     furnishes the alcoholic product is seated at:

1731          (A) a table that is located in a dining area or a dispensing area;
1732          (B) a counter that is located in a dining area or a dispensing area; or
1733          (C) a dispensing structure that is located in a dispensing area; and
1734          (ii) the full-service restaurant licensee confirms that the patron intends to:
1735          (A) order food prepared, sold, and furnished at the licensed premises; and
1736          (B) except as provided in Subsection [(8)] (6)(b), consume the food at the same
1737     location where the patron is seated and [sold, offered for sale, or] furnished the alcoholic
1738     product.
1739          (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
1740     full-service restaurant licensee, the full-service restaurant licensee may sell, offer for sale, or
1741     furnish to the patron one drink that contains a single portion of an alcoholic product as
1742     described in Section 32B-5-304 if:
1743          (A) the patron is in a dispensing area and seated at a table, counter, or dispensing
1744     structure; and
1745          (B) the full-service restaurant licensee first confirms that after the patron is seated in
1746     the dining area, the patron intends to order food prepared, sold, and furnished at the licensed
1747     premises.
1748          (ii) If the patron does not finish the patron's alcoholic product before moving to a seat
1749     in the dining area, an employee of the full-service restaurant licensee who is qualified to sell
1750     and serve an alcoholic product under Section 32B-5-306 shall transport any unfinished portion
1751     of the patron's alcoholic product to the patron's seat in the dining area.
1752          (iii) For purposes of Subsection [(8)] (6)(b)(i) a single portion of wine is 5 ounces or
1753     less.
1754          (c) A full-service restaurant licensee shall maintain on the licensed premises adequate
1755     culinary facilities for food preparation and dining accommodations.
1756          [(9)] (7) A patron may consume an alcoholic product only if the patron is seated at:
1757          (a) a table that is located in a dining area or dispensing area;
1758          (b) a counter that is located in a dining area or dispensing area; or
1759          (c) a dispensing structure located in a dispensing area.
1760          [(10)] (8) (a) Subject to the other provisions of this Subsection [(10)] (8), a patron may
1761     not have more than two alcoholic products of any kind at a time before the patron.

1762          (b) A patron may not have more than one spirituous liquor drink at a time before the
1763     patron.
1764          (c) An individual portion of wine is considered to be one alcoholic product under
1765     Subsection [(10)] (8)(a).
1766          [(11)] (9) In accordance with the provisions of this section, an individual who is at
1767     least 21 years of age may consume food and beverages in a dispensing area.
1768          [(12)] (10) (a) Except as provided in Subsection [(12)] (10)(b), a minor may not sit,
1769     remain, or consume food or beverages in a dispensing area.
1770          (b) (i) A minor may be in a dispensing area if the minor is employed by the full-service
1771     restaurant licensee:
1772          (A) in accordance with Subsection 32B-5-308(2); or
1773          (B) to perform maintenance and cleaning services when the full-service restaurant
1774     licensee is not open for business.
1775          (ii) If there is no alternative route available, a minor may momentarily pass through a
1776     dispensing area without remaining or sitting in the dispensing area en route to an area of the
1777     full-service restaurant licensee's premises in which the minor is permitted to be.
1778          [(13)] (11) Except as provided in Subsection 32B-5-307(3), a full-service restaurant
1779     licensee may dispense an alcoholic product only if:
1780          (a) the alcoholic product is dispensed from:
1781          (i) a dispensing structure that is located in a dispensing area;
1782          (ii) an area that is:
1783          (A) separated from an area for the consumption of food by a patron by a solid,
1784     translucent, permanent structural barrier such that the facilities for the [storage or] dispensing
1785     of an alcoholic product are not readily visible to a patron and not accessible by a patron; and
1786          (B) apart from an area used for dining, for staging, or as a lobby or waiting area; or
1787          (iii) the premises of a bar licensee that is:
1788          (A) owned by the same person or persons as the full-service restaurant licensee; and
1789          (B) located immediately adjacent to the premises of the full-service restaurant licensee;
1790     and
1791          [(b) the full-service restaurant licensee uses an alcoholic product that is stored in an
1792     area described in Subsection (13) (a) or in accordance with Section 32B-5-303; and]

1793          [(c)] (b) any instrument or equipment used to dispense alcoholic product is located in
1794     an area described in Subsection [(13)] (11)(a).
1795          [(14)] (12) (a) A full-service restaurant licensee may have more than one dispensing
1796     area in the licensed premises.
1797          (b) Each dispensing area in a licensed premises may satisfy the requirements for a
1798     dispensing area under Subsection 32B-6-202(2)(a)(i), (ii), or (iii), regardless of how any other
1799     dispensing area in the licensed premises satisfies the requirements for a dispensing area.
1800          [(15)] (13) A full-service restaurant licensee may not:
1801          (a) transfer, dispense, or serve an alcoholic product on or from a movable cart; or
1802          (b) display an alcoholic product or a product intended to appear like an alcoholic
1803     product by moving a cart or similar device around the licensed premises.
1804          [(16)] (14) A full-service restaurant licensee may state in a food or alcoholic product
1805     menu a charge or fee made in connection with the sale, service, or consumption of liquor,
1806     including:
1807          (a) a set-up charge;
1808          (b) a service charge; or
1809          (c) a chilling fee.
1810          [(17)] (15) (a) In addition to the requirements described in Section 32B-5-302, a
1811     full-service restaurant licensee shall maintain each of the following records for at least three
1812     years:
1813          (i) a record required by Section 32B-5-302; and
1814          (ii) a record that the commission requires a full-service restaurant licensee to use or
1815     maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1816     Rulemaking Act.
1817          (b) The department shall audit the records of a full-service restaurant licensee at least
1818     once each calendar year.
1819          [(18)] (16) (a) In accordance with Section 32B-6-205.3, a full-service restaurant
1820     licensee:
1821          (i) may comply with the provisions of this section beginning on or after July 1, 2017;
1822     and
1823          (ii) shall comply with the provisions of this section:

1824          (A) for a full-service restaurant licensee that does not have a grandfathered bar
1825     structure, on and after July 1, 2018; or
1826          (B) for a full-service restaurant licensee that has a grandfathered bar structure, on and
1827     after July 1, 2022.
1828          (b) A full-service restaurant licensee that elects to comply with the provisions of this
1829     section before the latest applicable date described in Subsection [(18)] (16)(a)(ii):
1830          (i) shall comply with each provision of this section; and
1831          (ii) is not required to comply with the provisions of Section 32B-6-205.
1832          Section 19. Section 32B-6-205.4 is enacted to read:
1833          32B-6-205.4. Small full-service restaurant licensee -- Exemption.
1834          (1) Notwithstanding the provisions of Section 32B-6-205 or 32B-6-205.2 and subject
1835     to Subsection (2), a minor may sit, remain, or consume food or beverages in the dispensing
1836     area of a small full-service restaurant licensee if:
1837          (a) seating in the dispensing area is the only seating available for patrons on the
1838     licensed premises;
1839          (b) the minor is accompanied by an individual who is 21 years of age or older; and
1840          (c) the small full-service restaurant licensee applies for and obtains approval from the
1841     department to seat minors in the dispensing area in accordance with this section.
1842          (2) A minor may not sit, remain, or consume food or beverages at a dispensing
1843     structure.
1844          (3) The department shall:
1845          (a) grant an approval described in Subsection (1)(c) if the small full-service restaurant
1846     licensee demonstrates that the small full-service restaurant licensee meets the requirements
1847     described in Subsection 32B-6-202(5); and
1848          (b) for each application described in Subsection (1)(c) that the department receives on
1849     or before May 8, 2018, act on the application on or before July 1, 2018.
1850          Section 20. Section 32B-6-302 is amended to read:
1851          32B-6-302. Definitions.
1852          As used in this part:
1853          (1) (a) "Dining area" means an area in the licensed premises of a limited-service
1854     restaurant licensee that is primarily used for the service and consumption of food by one or

1855     more patrons.
1856          (b) "Dining area" does not include a dispensing area.
1857          (2) (a) "Dispensing area" means an area in the licensed premises of a limited-service
1858     restaurant licensee where a dispensing structure is located and that:
1859          (i) is physically separated from the dining area and any waiting area by a structure or
1860     other barrier that prevents a patron seated in the dining area or a waiting area from viewing the
1861     dispensing of alcoholic product;
1862          (ii) except as provided in Subsection (2)(b), measures at least 10 feet from [any area
1863     where alcoholic product is dispensed to] the dining area and any waiting area[, measured from
1864     the point of the area where alcoholic product is dispensed that is closest to the dining area or
1865     waiting area] to the nearest edge of the dispensing structure; or
1866          (iii) is physically separated from the dining area and any waiting area by a permanent
1867     physical structure that complies with the provisions of Title 15A, State Construction and Fire
1868     Codes Act, and, to the extent allowed under Title 15A, State Construction and Fire Codes Act,
1869     measures:
1870          (A) at least 42 inches high; and
1871          (B) at least 60 inches from the inside edge of the barrier to the nearest edge of the
1872     dispensing structure.
1873          (b) "Dispensing area" does not include any area described in Subsection (2)(a)(ii) that
1874     is less than 10 feet from an area where alcoholic product is dispensed, but from which a patron
1875     seated at a table or counter cannot view the dispensing of alcoholic product.
1876          (3) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
1877     limited-service restaurant licensee that:
1878          (i) as of May 11, 2009, has:
1879          (A) patron seating at the bar structure;
1880          (B) a partition at one or more locations on the bar structure that is along:
1881          (I) the width of the bar structure; or
1882          (II) the length of the bar structure; and
1883          (C) facilities for the dispensing or storage of an alcoholic product:
1884          (I) on the portion of the bar structure that is separated by the partition described in
1885     Subsection (3)(a)(i)(B); or

1886          (II) if the partition as described in Subsection (3)(a)(i)(B)(II) is adjacent to the bar
1887     structure in a manner visible to a patron sitting at the bar structure;
1888          (ii) is not operational as of May 12, 2009, if:
1889          (A) a person applying for a limited-service restaurant license:
1890          (I) has as of May 12, 2009, a building permit to construct the restaurant;
1891          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
1892     defined by rule made by the commission; and
1893          (III) is issued the limited-service restaurant license by no later than December 31,
1894     2009; and
1895          (B) once constructed, the licensed premises has a bar structure described in Subsection
1896     (3)(a)(i);
1897          (iii) as of May 12, 2009, has no patron seating at the bar structure; or
1898          (iv) is not operational as of May 12, 2009, if:
1899          (A) a person applying for a limited-service restaurant license:
1900          (I) has as of May 12, 2009, a building permit to construct the restaurant;
1901          (II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
1902     defined by rule made by the commission; and
1903          (III) is issued a limited-service restaurant license by no later than December 31, 2009;
1904     and
1905          (B) once constructed, the licensed premises has a bar structure with no patron seating.
1906          (b) "Grandfathered bar structure" does not include a grandfathered bar structure
1907     described in Subsection (3)(a) on or after the day on which a restaurant remodels the
1908     grandfathered bar structure, as defined by rule made by the commission.
1909          (c) Subject to Subsection (3)(b), a grandfathered bar structure remains a grandfathered
1910     bar structure notwithstanding whether a restaurant undergoes a change of ownership.
1911          (4) "Seating grandfathered bar structure" means:
1912          (a) a grandfathered bar structure described in Subsection (3)(a)(i) or (ii); or
1913          (b) a bar structure grandfathered under Section 32B-6-409.
1914          (5) "Small limited-service restaurant licensee" means a limited-service restaurant
1915     licensee that has a grandfathered bar structure whose dispensing area includes more than 45%
1916     of the available seating for patrons on the licensed premises, excluding outdoor seating:

1917          (a) when measured in accordance with Subsection (2)(a)(ii); and
1918          (b) based on the licensee's floor plan on file with the department on July 1, 2017.
1919          [(5)] (6) "Waiting area" includes a lobby.
1920          [(6)] (7) "Wine" includes an alcoholic beverage defined as wine under 27 U.S.C. Sec.
1921     211 and 27 C.F.R. Sec. 4.10, including the following alcoholic beverages made in the manner
1922     of wine containing not less than 7% and not more than 24% of alcohol by volume:
1923          (a) sparkling and carbonated wine;
1924          (b) wine made from condensed grape must;
1925          (c) wine made from other agricultural products than the juice of sound, ripe grapes;
1926          (d) imitation wine;
1927          (e) compounds sold as wine;
1928          (f) vermouth;
1929          (g) cider;
1930          (h) perry; and
1931          (i) sake.
1932          Section 21. Section 32B-6-305 is amended to read:
1933          32B-6-305. Specific operational requirements for a limited-service restaurant
1934     license -- Before July 1, 2018, or July 1, 2022.
1935          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
1936     Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
1937     licensee shall comply with this section.
1938          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
1939     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
1940          (i) a limited-service restaurant licensee;
1941          (ii) individual staff of a limited-service restaurant licensee; or
1942          (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
1943     licensee.
1944          (2) (a) A limited-service restaurant licensee on the licensed premises may not sell, offer
1945     for sale, furnish, or allow consumption of:
1946          (i) spirituous liquor; or
1947          (ii) a flavored malt beverage.

1948          (b) A product listed in Subsection (2)(a) may not be on the premises of a
1949     limited-service restaurant licensee except for use:
1950          (i) as a flavoring on a dessert; and
1951          (ii) in the preparation of a flaming food dish, drink, or dessert.
1952          (3) In addition to complying with Section 32B-5-303, a limited-service restaurant
1953     licensee shall store an alcoholic product in a storage area described in Subsection (12)(a).
1954          (4) (a) An individual who serves an alcoholic product in a limited-service restaurant
1955     licensee's premises shall make a written beverage tab for each table or group that orders or
1956     consumes an alcoholic product on the premises.
1957          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
1958     alcoholic product ordered or consumed.
1959          (5) A person's willingness to serve an alcoholic product may not be made a condition
1960     of employment as a server with a limited-service restaurant licensee.
1961          (6) (a) A limited-service restaurant licensee may sell, offer for sale, or furnish wine or
1962     heavy beer at the licensed premises during the following time periods only:
1963          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
1964          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
1965     period that begins at 10:30 a.m. and ends at 11:59 p.m.
1966          (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer at the
1967     licensed premises during the following time periods only:
1968          (i) on a weekday, during the period that beings at 11:30 a.m. and ends at 12:59 a.m.; or
1969          (ii) on a weekend or state or federal legal holiday or for a private event, during the
1970     period that begins at 10:30 a.m. and ends at 12:59 a.m.
1971          (7) A limited-service restaurant licensee shall maintain at least 70% of its total
1972     restaurant business from the sale of food, which does not include a service charge.
1973          (8) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
1974     alcoholic product except after the limited-service restaurant licensee confirms that the patron
1975     has the intent to order food prepared, sold, and furnished at the licensed premises.
1976          (b) A limited-service restaurant licensee shall maintain on the licensed premises
1977     adequate culinary facilities for food preparation and dining accommodations.
1978          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have

1979     more than two alcoholic products of any kind at a time before the patron.
1980          (b) An individual portion of wine is considered to be one alcoholic product under
1981     Subsection (9)(a).
1982          (10) A patron may consume an alcoholic product only:
1983          (a) at:
1984          (i) the patron's table;
1985          (ii) a counter; or
1986          (iii) a seating grandfathered bar structure; and
1987          (b) where food is served.
1988          (11) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
1989     alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
1990     structure that is not a seating grandfathered bar structure.
1991          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
1992     may:
1993          (i) sit;
1994          (ii) be furnished an alcoholic product; and
1995          (iii) consume an alcoholic product.
1996          (c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
1997     limited-service restaurant licensee may not permit a minor to, and a minor may not:
1998          (i) sit; or
1999          (ii) consume food or beverages.
2000          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is
2001     employed by a limited-service restaurant licensee:
2002          (A) as provided in Subsection 32B-5-308(2); or
2003          (B) to perform maintenance and cleaning services during an hour when the
2004     limited-service restaurant licensee is not open for business.
2005          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
2006     remaining or sitting at the bar structure en route to an area of a limited-service restaurant
2007     licensee's premises in which the minor is permitted to be.
2008          (12) Except as provided in Subsection 32B-5-307(3), a limited-service restaurant
2009     licensee may dispense an alcoholic product only if:

2010          (a) the alcoholic product is dispensed from:
2011          (i) a grandfathered bar structure;
2012          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
2013     the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
2014     12, 2009; or
2015          (iii) an area that is:
2016          (A) separated from an area for the consumption of food by a patron by a solid,
2017     translucent, permanent structural barrier such that the facilities for the storage or dispensing of
2018     an alcoholic product are:
2019          (I) not readily visible to a patron; and
2020          (II) not accessible by a patron; and
2021          (B) apart from an area used:
2022          (I) for dining;
2023          (II) for staging; or
2024          (III) as a lobby or waiting area;
2025          (b) the limited-service restaurant licensee uses an alcoholic product that is:
2026          (i) stored in an area described in Subsection (12)(a); or
2027          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
2028          (A) immediately before the alcoholic product is dispensed it is in an unopened
2029     container;
2030          (B) the unopened container is taken to an area described in Subsection (12)(a) before it
2031     is opened; and
2032          (C) once opened, the container is stored in an area described in Subsection (12)(a); and
2033          (c) any instrument or equipment used to dispense alcoholic product is located in an
2034     area described in Subsection (12)(a).
2035          (13) A limited-service restaurant licensee may state in a food or alcoholic product
2036     menu a charge or fee made in connection with the sale, service, or consumption of wine or
2037     heavy beer including:
2038          (a) a set-up charge;
2039          (b) a service charge; or
2040          (c) a chilling fee.

2041          [(14) In addition to complying with Subsection 32B-5-301(3), a limited-service
2042     restaurant licensee shall display in a conspicuous place at the entrance to the licensed premises
2043     a sign approved by the commission that:]
2044          [(a) measures at least 8-1/2 inches long and 11 inches wide; and]
2045          [(b) clearly states that the limited-service restaurant licensee is a restaurant and not a
2046     bar.]
2047          [(15)] (14) Beginning on July 1, 2018, a minor may not sit, remain, or consume food or
2048     beverages within 10 feet of a grandfathered bar structure, unless:
2049          (a) seating within 10 feet of the grandfathered bar structure is the only seating available
2050     in the licensed premises; and
2051          (b) the minor is accompanied by an individual who is 21 years of age or older.
2052          [(16)] (15) Except as provided in Subsection 32B-6-305.2[(18)](16) and Section
2053     32B-6-305.3, the provisions of this section apply before July 1, 2018.
2054          Section 22. Section 32B-6-305.2 is amended to read:
2055          32B-6-305.2. Specific operational requirements for a limited-service restaurant
2056     license -- On and after July 1, 2018, or July 1, 2022.
2057          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2058     Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
2059     licensee shall comply with this section.
2060          (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in
2061     accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2062          (i) a limited-service restaurant licensee;
2063          (ii) individual staff of a limited-service restaurant licensee; or
2064          (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
2065     licensee.
2066          [(2) In addition to complying with Subsection 32B-5-301(3), a limited-service
2067     restaurant licensee shall display in a conspicuous place at the entrance to the licensed premises
2068     a sign approved by the commission that:]
2069          [(a) measures at least 8-1/2 inches long and 11 inches wide; and]
2070          [(b) clearly states that the limited-service restaurant licensee is a restaurant and not a
2071     bar.]

2072          [(3) In addition to complying with Section 32B-5-303, a limited-service restaurant
2073     licensee shall store an alcoholic product in a storage area described in Subsection (13) (a).]
2074          [(4)] (2) (a) An individual who serves an alcoholic product in a limited-service
2075     restaurant licensee's premises shall make a beverage tab for each table or group that orders or
2076     consumes an alcoholic product on the premises.
2077          (b) A beverage tab described in this Subsection [(4)] (2) shall state the type and amount
2078     of each alcoholic product ordered or consumed.
2079          [(5)] (3) A limited-service restaurant licensee may not make an individual's willingness
2080     to serve an alcoholic product a condition of employment with a limited-service restaurant
2081     licensee.
2082          [(6)] (4) (a) A limited-service restaurant licensee may sell, offer for sale, or furnish
2083     wine or heavy beer at the licensed premises during the following time periods only:
2084          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
2085          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2086     period that begins at 10:30 a.m. and ends at 11:59 p.m.
2087          (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer at the
2088     licensed premises during the following time periods only:
2089          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
2090          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2091     period that begins at 10:30 a.m. and ends at 12:59 a.m.
2092          [(7)] (5) A limited-service restaurant licensee shall maintain at least 70% of the
2093     limited-service restaurant licensee's total restaurant business from the sale of food, which does
2094     not include a service charge.
2095          [(8)] (6) (a) A limited-service restaurant licensee may not [sell, offer for sale, or]
2096     furnish an alcoholic product except after:
2097          (i) the patron to whom the limited-service restaurant licensee [sells, offers for sale, or]
2098     furnishes the alcoholic product is seated at:
2099          (A) a table that is located in a dining area or a dispensing area;
2100          (B) a counter that is located in a dining area or a dispensing area; or
2101          (C) a dispensing structure that is located in a dispensing area; and
2102          (ii) the limited-service restaurant licensee confirms that the patron intends to:

2103          (A) order food prepared, sold, and furnished at the licensed premises; and
2104          (B) except as provided in Subsection [(8)] (6)(b), consume the food at the same
2105     location where the patron is seated and [sold, offered for sale, or] furnished the alcoholic
2106     product.
2107          (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
2108     limited-service restaurant licensee, the limited-service restaurant licensee may sell, offer for
2109     sale, or furnish to the patron one drink that contains a single portion of an alcoholic product as
2110     described in Section 32B-5-304 if:
2111          (A) the patron is in a dispensing area and seated at a table, counter, or dispensing
2112     structure; and
2113          (B) the limited-service restaurant licensee first confirms that after the patron is seated
2114     in the dining area, the patron intends to order food prepared, sold, and furnished at the licensed
2115     premises.
2116          (ii) If the patron does not finish the patron's alcoholic product before moving to a seat
2117     in the dining area, an employee of the limited-service restaurant licensee who is qualified to
2118     sell and serve an alcoholic product under Section 32B-5-306 shall transport any unfinished
2119     portion of the patron's alcoholic product to the patron's seat in the dining area.
2120          (iii) For purposes of Subsection [(8)] (6)(b)(i) a single portion of wine is 5 ounces or
2121     less.
2122          (c) A limited-service restaurant licensee shall maintain on the licensed premises
2123     adequate culinary facilities for food preparation and dining accommodations.
2124          [(9)] (7) A patron may consume an alcoholic product only if the patron is seated at:
2125          (a) a table that is located in a dining area or a dispensing area;
2126          (b) a counter that is located in a dining area or a dispensing area; or
2127          (c) a dispensing structure located in a dispensing area.
2128          [(10)] (8) (a) Subject to the other provisions of this Subsection [(10)] (8), a patron may
2129     not have more than two alcoholic products of any kind at a time before the patron.
2130          (b) An individual portion of wine is considered to be one alcoholic product under
2131     Subsection [(10)] (8)(a).
2132          [(11)] (9) In accordance with the provisions of this section, an individual who is at
2133     least 21 years of age may consume food and beverages in a dispensing area.

2134          [(12)] (10) (a) Except as provided in Subsection [(12)] (10)(b), a minor may not sit,
2135     remain, or consume food or beverages in a dispensing area.
2136          (b) (i) A minor may be in a dispensing area if the minor is employed by the
2137     limited-service restaurant licensee:
2138          (A) in accordance with Subsection 32B-5-308(2); or
2139          (B) to perform maintenance and cleaning services when the limited-service restaurant
2140     licensee is not open for business.
2141          (ii) If there is no alternative route available, a minor may momentarily pass through a
2142     dispensing area without remaining or sitting in the dispensing area en route to an area of the
2143     limited-service restaurant licensee's premises in which the minor is permitted to be.
2144          [(13)] (11) Except as provided in Subsection 32B-5-307(3), a limited-service restaurant
2145     licensee may dispense an alcoholic product only if:
2146          (a) the alcoholic product is dispensed from:
2147          (i) a dispensing structure that is located in a dispensing area;
2148          (ii) an area that is:
2149          (A) separated from an area for the consumption of food by a patron by a solid,
2150     translucent, permanent structural barrier such that the facilities for the [storage or] dispensing
2151     of an alcoholic product are not readily visible to a patron and not accessible by a patron; and
2152          (B) apart from an area used for dining, for staging, or as a lobby or waiting area; or
2153          (iii) the premises of a bar licensee that is:
2154          (A) owned by the same person or persons as the limited-service restaurant licensee; and
2155          (B) located immediately adjacent to the premises of the limited-service restaurant
2156     licensee; and
2157          [(b) the limited-service restaurant licensee uses an alcoholic product that is stored in an
2158     area described in Subsection (13) (a) or in accordance with Section 32B-5-303; and]
2159          [(c)] (b) any instrument or equipment used to dispense alcoholic product is located in
2160     an area described in Subsection [(13)] (11)(a).
2161          [(14)] (12) (a) A limited-service restaurant licensee may have more than one
2162     dispensing area in the licensed premises.
2163          (b) Each dispensing area in a licensed premises may satisfy the requirements for a
2164     dispensing area under Subsection 32B-6-202(2)(a)(i), (ii), or (iii), regardless of how any other

2165     dispensing area in the licensed premises satisfies the requirements for a dispensing area.
2166          [(15)] (13) A limited-service restaurant licensee may not:
2167          (a) transfer, dispense, or serve an alcoholic product on or from a movable cart; or
2168          (b) display an alcoholic product or a product intended to appear like an alcoholic
2169     product by moving a cart or similar device around the licensed premises.
2170          [(16)] (14) A limited-service restaurant licensee may state in a food or alcoholic
2171     product menu a charge or fee made in connection with the sale, service, or consumption of
2172     wine or heavy beer, including:
2173          (a) a set-up charge;
2174          (b) a service charge; or
2175          (c) a chilling fee.
2176          [(17)] (15) (a) In addition to the requirements described in Section 32B-5-302, a
2177     limited-service restaurant licensee shall maintain each of the following records for at least three
2178     years:
2179          (i) a record required by Section 32B-5-302; and
2180          (ii) a record that the commission requires a limited-service restaurant licensee to use or
2181     maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2182     Rulemaking Act.
2183          (b) The department shall audit the records of a limited-service restaurant licensee at
2184     least once each calendar year.
2185          [(18)] (16) (a) In accordance with Section 32B-6-305.3, a limited-service restaurant
2186     licensee:
2187          (i) may comply with the provisions of this section beginning on or after July 1, 2017;
2188     and
2189          (ii) shall comply with the provisions of this section:
2190          (A) for a limited-service restaurant licensee that does not have a grandfathered bar
2191     structure, on and after July 1, 2018; or
2192          (B) for a limited-service restaurant licensee that has a grandfathered bar structure, on
2193     and after July 1, 2022.
2194          (b) A limited-service restaurant licensee that elects to comply with the provisions of
2195     this section before the latest applicable date described in Subsection [(18)] (16)(a)(ii):

2196          (i) shall comply with each provision of this section; and
2197          (ii) is not required to comply with the provisions of Section 32B-6-305.
2198          Section 23. Section 32B-6-305.4 is enacted to read:
2199          32B-6-305.4. Small limited-service restaurant licensee -- Exemption.
2200          (1) Notwithstanding the provisions of Section 32B-6-305 or 32B-6-305.2 and subject
2201     to Subsection (2), a minor may sit, remain, or consume food or beverages in the dispensing
2202     area of a small limited-service restaurant licensee if:
2203          (a) seating in the dispensing area is the only seating available for patrons on the
2204     licensed premises;
2205          (b) the minor is accompanied by an individual who is 21 years of age or older; and
2206          (c) the small limited-service restaurant licensee applies for and obtains approval from
2207     the department to seat minors in the dispensing area in accordance with this section.
2208          (2) A minor may not sit, remain, or consume food or beverages at a dispensing
2209     structure.
2210          (3) The department shall:
2211          (a) grant an approval described in Subsection (1)(c) if the small limited-service
2212     restaurant licensee demonstrates that the small limited-service restaurant licensee meets the
2213     requirements described in Subsection 32B-6-302(5); and
2214          (b) for each application described in Subsection (1)(c) that the department receives on
2215     or before May 8, 2018, act on the application on or before July 1, 2018.
2216          Section 24. Section 32B-6-403 is amended to read:
2217          32B-6-403. Commission's power to issue bar establishment license.
2218          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
2219     an alcoholic product on its premises as a bar establishment licensee, the person shall first
2220     obtain a bar establishment license from the commission in accordance with this part.
2221          (2) The commission may issue a bar establishment license to establish bar
2222     establishment licensed premises at places and in numbers the commission considers proper for
2223     the storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on
2224     premises operated by a bar establishment licensee.
2225          (3) Subject to Section 32B-1-201:
2226          (a) (i) before July 1, 2018, the commission may not issue a total number of bar

2227     establishment licenses that at any time exceeds the number determined by dividing the
2228     population of the state by 7,850; and
2229          (ii) beginning on July 1, 2018, the commission may not issue a total number of bar
2230     establishment licenses that at any time exceeds the number determined by dividing the
2231     population of the state by [10,538] 10,200;
2232          (b) the commission may issue a seasonal bar establishment license in accordance with
2233     Section 32B-5-206 to:
2234          (i) a dining club licensee; or
2235          (ii) a bar licensee;
2236          (c) (i) if the location, design, and construction of a hotel may require more than one
2237     dining club license or bar license location within the hotel to serve the public convenience, the
2238     commission may authorize as many as three bar establishment license locations within the
2239     hotel under one bar establishment license if:
2240          (A) the hotel has a minimum of 150 guest rooms;
2241          (B) all locations under the bar establishment license are:
2242          (I) within the same hotel; and
2243          (II) on premises that are managed or operated, and owned or leased, by the bar
2244     establishment licensee; and
2245          (C) the locations under the bar establishment license operate under the same type of bar
2246     establishment license; and
2247          (ii) a facility other than a hotel shall have a separate bar establishment license for each
2248     bar establishment license location where an alcoholic product is sold, offered for sale, or
2249     furnished;
2250          (d) when a business establishment undergoes a change of ownership, the commission
2251     may issue a bar establishment license to the new owner of the business establishment
2252     notwithstanding that there is no bar establishment license available under Subsection (3)(a) if:
2253          (i) the primary business activity at the business establishment before and after the
2254     change of ownership is not the sale, offer for sale, or furnishing of an alcoholic product;
2255          (ii) before the change of ownership there are two or more licensed premises on the
2256     business establishment that operate under a retail license, with at least one of the retail licenses
2257     being a bar establishment license;

2258          (iii) subject to Subsection (3)(e), the licensed premises of the bar establishment license
2259     issued under this Subsection (3)(d) is at the same location where the bar establishment license
2260     licensed premises was located before the change of ownership; and
2261          (iv) the person who is the new owner of the business establishment qualifies for the bar
2262     establishment license, except for there being no bar establishment license available under
2263     Subsection (3)(a); and
2264          (e) if a bar establishment licensee of a bar establishment license issued under
2265     Subsection (3)(d) requests a change of location, the bar establishment licensee may retain the
2266     bar establishment license after the change of location only if on the day on which the bar
2267     establishment licensee seeks a change of location a bar establishment license is available under
2268     Subsection (3)(a).
2269          Section 25. Section 32B-6-404 is amended to read:
2270          32B-6-404. Types of bar license.
2271          (1) To obtain an equity license, in addition to meeting the other requirements of this
2272     part, a person shall:
2273          (a) whether incorporated or unincorporated:
2274          (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
2275     purpose;
2276          (ii) have members;
2277          (iii) limit access to its licensed premises to a member or a guest of the member; and
2278          (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
2279     to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
2280          (b) own, maintain, or operate a substantial recreational facility in conjunction with a
2281     club house such as:
2282          (i) a golf course; or
2283          (ii) a tennis facility;
2284          (c) have at least 50% of the total membership having[:(i) full voting rights; and (ii)] an
2285     equal share of the equity of the entity or a right to redemption or refund at the equal value; and
2286          (d) if there is more than one class of membership, have at least one class of
2287     membership that entitles each member in that class to[:(i) full voting rights; and(ii)] an equal
2288     share of the equity of the entity or a right to redemption or refund at the equal value.

2289          (2) To obtain a fraternal license, in addition to meeting the other requirements of this
2290     part, a person shall:
2291          (a) whether incorporated or unincorporated:
2292          (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
2293     purpose;
2294          (ii) have members;
2295          (iii) limit access to its licensed premises to a member or a guest of the member; and
2296          (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
2297     to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
2298          (b) have no capital stock;
2299          (c) exist solely for:
2300          (i) the benefit of its members and their beneficiaries; and
2301          (ii) a lawful social, intellectual, educational, charitable, benevolent, moral, fraternal,
2302     patriotic, or religious purpose for the benefit of its members or the public, carried on through
2303     voluntary activity of its members in their local lodges;
2304          (d) have a representative form of government;
2305          (e) have a lodge system in which:
2306          (i) there is a supreme governing body;
2307          (ii) subordinate to the supreme governing body are local lodges, however designated,
2308     into which individuals are admitted as members in accordance with the laws of the fraternal;
2309          (iii) the local lodges are required by the laws of the fraternal to hold regular meetings at
2310     least monthly; and
2311          (iv) the local lodges regularly engage in one or more programs involving member
2312     participation to implement the purposes of Subsection (2)(c); and
2313          (f) own or lease a building or space in a building used for lodge activities.
2314          (3) To obtain a dining club license, in addition to meeting the other requirements of
2315     this part, a person shall:
2316          (a) maintain at least the following percentages of its total club business from the sale of
2317     food, not including mix for alcoholic products, or service charges:
2318          (i) for a dining club license that is issued as an original license on or after July 1, 2011,
2319     60%; and

2320          (ii) for a dining club license that is issued on or before June 30, 2011:
2321          (A) 50% on or before June 30, 2012; and
2322          (B) 60% on and after July 1, 2012; and
2323          (b) obtain a determination by the commission that the person will operate as a dining
2324     club licensee, as part of which the commission may consider:
2325          (i) the square footage and seating capacity of the premises;
2326          (ii) what portion of the square footage and seating capacity will be used for a dining
2327     area in comparison to the portion that will be used as a lounge or bar area;
2328          (iii) whether full meals including appetizers, main courses, and desserts are served;
2329          (iv) whether the person will maintain adequate on-premise culinary facilities to prepare
2330     full meals, except a person who is located on the premise of a hotel or resort facility may use
2331     the culinary facilities of the hotel or resort facility;
2332          (v) whether the entertainment provided at the premises is suitable for minors; and
2333          (vi) the club management's ability to manage and operate a dining club license
2334     including:
2335          (A) management experience;
2336          (B) past dining club licensee or restaurant management experience; and
2337          (C) the type of management scheme used by the dining club license.
2338          (4) To obtain a bar license, a person is required to meet the requirements of this part
2339     except those listed in Subsection (1), (2), or (3).
2340          (5) (a) At the time that the commission issues a bar establishment license, the
2341     commission shall designate the type of bar establishment license for which the person qualifies.
2342          (b) If requested by a bar establishment licensee, the commission may approve a change
2343     in the type of bar establishment license in accordance with rules made by the commission.
2344          (6) To the extent not prohibited by law, this part does not prevent a dining club
2345     licensee or bar licensee from restricting access to the licensed premises on the basis of an
2346     individual:
2347          (a) paying a fee; or
2348          (b) agreeing to being on a list of individuals who have access to the licensed premises.
2349          (7) (a) (i) On or after July 1, 2017, the commission may not issue or renew a dining
2350     club license.

2351          (ii) [Effective] No later than July 1, 2018, the department shall convert each dining
2352     club license to a full-service restaurant license or a bar license in accordance with the
2353     provisions of this Subsection (7).
2354          (b) (i) (A) A person licensed as a dining club on July 1, 2017, shall notify the
2355     department no later than May 31, 2018, whether [effective July 1, 2018,] the person elects to be
2356     licensed as a full-service restaurant or a bar.
2357          (B) [Effective] No later than July 1, 2018, the department shall convert a dining club
2358     license to a full-service restaurant license or a bar license in accordance with the dining club
2359     licensee's election under Subsection (7)(b)(i)(A).
2360          (ii) If a dining club licensee fails to timely notify the department in accordance with
2361     Subsection (7)(b)(i), the dining club license is automatically converted to a full-service
2362     restaurant license on July 1, 2018.
2363          (c) Subject to Section 32B-6-404.1, after a dining club license converts to a full-service
2364     restaurant license or a bar license, the retail licensee shall operate under the provisions that
2365     govern the full-service restaurant license or the bar license, as applicable.
2366          (d) After a dining club license converts to a full-service restaurant license or a bar
2367     license in accordance with this Subsection (7):
2368          (i) the full-service restaurant license is not considered in determining the total number
2369     of full-service restaurant licenses available under Section 32B-6-203; or
2370          (ii) the bar license is not considered in determining the total number of bar
2371     establishment licenses available under Section 32B-6-403.
2372          (e) [Before] Except as provided in Subsections (7)(a) and (b), before July 1, 2018, the
2373     commission may not issue a full-service restaurant license, a limited-service restaurant license,
2374     or a beer-only restaurant license to a person who holds a dining club license on May 9, 2017,
2375     for the same premises.
2376          (f) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2377     commission may make rules establishing a procedure by which a dining club licensee elects
2378     and converts to a full-service restaurant licensee or a bar licensee under this Subsection (7).
2379          Section 26. Section 32B-6-404.1 is amended to read:
2380          32B-6-404.1. Transition from dining club license to full-service restaurant license.
2381          (1) As used in this section:

2382          (a) "Converted full-service restaurant licensee" means a dining club licensee that
2383     converts to a full-service restaurant licensee on or before July 1, 2018, in accordance with
2384     Subsection 32B-6-404(7).
2385          (b) "Grandfathered bar structure" means the same as that term is defined in Section
2386     32B-6-202.
2387          (2) (a) Except as provided in Subsection (2)(c)[, beginning on July 1, 2018] and subject
2388     to the provisions of this section, a converted full-service restaurant licensee shall operate under
2389     the provisions that govern a full-service restaurant licensee that has a grandfathered bar
2390     structure.
2391          (b) For purposes of applying the provisions that govern a full-service restaurant
2392     licensee with a grandfathered bar structure, a converted full-service restaurant licensee's bar
2393     structure is considered a grandfathered bar structure.
2394          (c) The provisions of Section 32B-6-205.3 do not apply to a converted full-service
2395     restaurant licensee.
2396          (3) (a) A converted full-service restaurant licensee shall comply with the provisions of
2397     Section 32B-6-205.2 on or before the earlier of:
2398          (i) July 1, 2022;
2399          (ii) the date on which the converted full-service restaurant licensee remodels, as
2400     defined by commission rule made in accordance with Title 63G, Chapter 3, Utah
2401     Administrative Rulemaking Act, the converted full-service restaurant licensee's bar structure or
2402     dining area; or
2403          (iii) the date on which the converted full-service restaurant licensee experiences a
2404     change of ownership described in Subsection 32B-8a-202(1).
2405          (b) Before a converted full-service restaurant licensee changes the converted
2406     full-service restaurant licensee's approved location for storage, dispensing, or consumption to
2407     comply with the provisions of Section 32B-6-205.2, the converted full-service restaurant
2408     licensee shall submit an application for approval to the department in accordance with
2409     Subsection 32B-5-303(3).
2410          (c) A converted full-service restaurant licensee that cannot comply with the provisions
2411     of Section 32B-6-205.2 without a change to the converted full-service restaurant licensee's
2412     approved location for storage, dispensing, or consumption shall submit an application for

2413     approval described in Subsection (3)(b) on or before May 1, 2022.
2414          (4) (a) Notwithstanding any provision to the contrary, a converted full-service
2415     restaurant licensee shall maintain at least the following percentage of the converted full-service
2416     restaurant licensee's total restaurant business from the sale of food:
2417          (i) beginning [July 1, 2018] the day on which the licensee becomes a converted
2418     full-service restaurant licensee, and ending June 30, 2019, 64%;
2419          (ii) beginning July 1, 2019, and ending June 30, 2020, 68%; and
2420          (iii) on and after July 1, 2021, 70%.
2421          (b) For purposes of Subsection (4)(a), a converted full-service restaurant licensee's
2422     restaurant business from the sale of food does not include:
2423          (i) mix for an alcoholic product; or
2424          (ii) a service charge.
2425          Section 27. Section 32B-6-406 is amended to read:
2426          32B-6-406. Specific operational requirements for a bar establishment license.
2427          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2428     Requirements, a bar establishment licensee and staff of the bar establishment licensee shall
2429     comply with this section.
2430          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2431     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2432          (i) a bar establishment licensee;
2433          (ii) individual staff of a bar establishment licensee; or
2434          (iii) both a bar establishment licensee and staff of the bar establishment licensee.
2435          (2) In addition to complying with Subsection 32B-5-301(3), a bar licensee shall display
2436     in a conspicuous place at the entrance to the licensed premises a sign [approved by the
2437     commission] that:
2438          (a) measures at least 8-1/2 inches long and 11 inches wide; and
2439          (b) clearly states that the bar licensee is a bar and [not a restaurant] that no one under
2440     21 years of age is allowed.
2441          (3) (a) In addition to complying with Section 32B-5-302, a bar establishment licensee
2442     shall maintain for a minimum of three years:
2443          (i) a record required by Section 32B-5-302; and

2444          (ii) a record maintained or used by the bar establishment licensee, as the department
2445     requires.
2446          (b) Section 32B-1-205 applies to a record required to be made, maintained, or used in
2447     accordance with this Subsection (3).
2448          (c) The department shall audit the records of a bar establishment licensee at least once
2449     annually.
2450          (4) (a) A bar establishment licensee may not sell, offer for sale, or furnish liquor on the
2451     licensed premises on any day during a period that:
2452          (i) begins at 1 a.m.; and
2453          (ii) ends at 9:59 a.m.
2454          (b) A bar establishment licensee may sell, offer for sale, or furnish beer during the
2455     hours specified in Part 7, On-Premise Beer Retailer License, for an on-premise beer retailer
2456     license.
2457          (c) (i) Notwithstanding Subsections (4)(a) and (b), a bar establishment licensee shall
2458     keep its licensed premises open for one hour after the bar establishment licensee ceases the sale
2459     and furnishing of an alcoholic product during which time a patron of the bar establishment
2460     licensee may finish consuming:
2461          (A) a single drink containing spirituous liquor;
2462          (B) a single serving of wine not exceeding five ounces;
2463          (C) a single serving of heavy beer;
2464          (D) a single serving of beer not exceeding 26 ounces; or
2465          (E) a single serving of a flavored malt beverage.
2466          (ii) A bar establishment licensee is not required to remain open:
2467          (A) after all patrons have vacated the premises; or
2468          (B) during an emergency.
2469          (5) (a) A minor may not be admitted into, use, or be in:
2470          (i) a lounge or bar area of the premises of:
2471          (A) an equity licensee;
2472          (B) a fraternal licensee; or
2473          (C) a dining club licensee; or
2474          (ii) the premises of:

2475          (A) a dining club licensee unless accompanied by an individual who is 21 years of age
2476     or older; or
2477          (B) a bar licensee, except to the extent provided for under Section 32B-6-406.1.
2478          (b) Notwithstanding Section 32B-5-308, a bar establishment licensee may not employ a
2479     minor to:
2480          (i) work in a lounge or bar area of an equity licensee, fraternal licensee, or dining club
2481     licensee; or
2482          (ii) handle an alcoholic product.
2483          (c) Notwithstanding Section 32B-5-308, a minor may not be employed on the licensed
2484     premises of a bar licensee.
2485          (d) Nothing in this part or Section 32B-5-308 precludes a local authority from being
2486     more restrictive of a minor's admittance to, use of, or presence on the licensed premises of a bar
2487     establishment licensee.
2488          (6) A bar establishment licensee shall have food available at all times when an
2489     alcoholic product is sold, offered for sale, furnished, or consumed on the licensed premises.
2490          (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have
2491     more than two alcoholic products of any kind at a time before the patron.
2492          (b) A patron may not have two spirituous liquor drinks before the bar establishment
2493     licensee patron if one of the spirituous liquor drinks consists only of the primary spirituous
2494     liquor for the other spirituous liquor drink.
2495          (c) An individual portion of wine is considered to be one alcoholic product under
2496     Subsection (7)(a).
2497          (8) A bar establishment licensee shall have available on the premises for a patron to
2498     review at the time that the patron requests it, a written alcoholic product price list or a menu
2499     containing the price of an alcoholic product sold, offered for sale, or furnished by the bar
2500     establishment licensee including:
2501          (a) a set-up charge;
2502          (b) a service charge; or
2503          (c) a chilling fee.
2504          (9) Subject to Section 32B-5-309, a bar establishment licensee may not temporarily
2505     rent or otherwise temporarily lease its premises to a person unless:

2506          (a) the person to whom the bar establishment licensee rents or leases the premises
2507     agrees in writing to comply with this title as if the person is the bar establishment licensee,
2508     except for a requirement related to making or maintaining a record; and
2509          (b) the bar establishment licensee takes reasonable steps to ensure that the person
2510     complies with this section as provided in Subsection (9)(a).
2511          (10) If a bar establishment licensee is an equity licensee or fraternal licensee, the bar
2512     establishment licensee shall comply with Section 32B-6-407.
2513          (11) If a bar establishment licensee is a dining club licensee or bar licensee, the bar
2514     establishment licensee shall comply with Section 32B-1-407.
2515          (12) (a) A bar establishment licensee shall own or lease premises suitable for the bar
2516     establishment licensee's activities.
2517          (b) A bar establishment licensee may not maintain licensed premises in a manner that
2518     barricades or conceals the bar establishment licensee's operation.
2519          Section 28. Section 32B-6-409 is amended to read:
2520          32B-6-409. Conversion from dining club license to different type of retail license.
2521          (1) In accordance with this section, a dining club licensee may convert its dining club
2522     license to a different type of retail license, including a different type of club license during the
2523     time period:
2524          (a) beginning on July 1, 2011; and
2525          (b) ending on June 30, 2013.
2526          (2) A dining club licensee may convert its dining license only to a retail license for
2527     which the dining club licensee qualifies.
2528          (3) The commission shall provide a procedure for a dining club to convert to a different
2529     type of retail license as provided in this section by rule made in accordance with Title 63G,
2530     Chapter 3, Utah Administrative Rulemaking Act.
2531          (4) After a dining club license is converted to another type of retail license, the retail
2532     licensee shall operate under the provisions relevant to the type of retail license held by the retail
2533     licensee[, except that, in accordance with Section 32B-1-201, the retail license is not
2534     considered in determining the total number of licenses available for that type of retail license].
2535          (5) If a dining club license is converted to full-service restaurant license,
2536     limited-service restaurant license, or beer-only restaurant license, the bar structure of the dining

2537     club is considered:
2538          (a) a seating grandfathered bar structure for purposes of a full-service restaurant license
2539     or a limited-service restaurant license; or
2540          (b) a grandfathered bar structure for purposes of a beer-only restaurant license.
2541          Section 29. Section 32B-6-503 is amended to read:
2542          32B-6-503. Commission's power to issue airport lounge license.
2543          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
2544     an alcoholic product on its premises as an airport lounge licensee, the person shall first obtain
2545     an airport lounge license from the commission in accordance with this part.
2546          (2) The commission may issue an airport lounge license to establish airport lounge
2547     licensed premises beyond the security point at an international airport and in the numbers the
2548     commission considers proper for the storage, sale, offer for sale, furnishing, and consumption
2549     of an alcoholic product on licensed premises operated as an airport lounge.
2550          (3) (a) The commission may not issue a total number of airport lounge licenses for an
2551     international airport that at any time exceed one airport lounge license for each [2,500,000]
2552     1,750,000 of total passengers at the international airport.
2553          (b) Notwithstanding Subsection (3)(a), the commission may not reduce the total
2554     number of airport lounge licenses unless:
2555          (i) the commission determines that the number of total passengers is reduced by more
2556     than 25% from the last day on which the commission determined the total number of airport
2557     lounge licenses allowed for that international airport under this Subsection (3); and
2558          (ii) the reduction can be accomplished without the international airport terminating a
2559     lease for an airport lounge before:
2560          (A) the expiration of the lease;
2561          (B) the airport lounge undergoes a change of ownership; or
2562          (C) the airport lounge ceases operations.
2563          Section 30. Section 32B-6-605 is amended to read:
2564          32B-6-605. Specific operational requirements for on-premise banquet license.
2565          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2566     Requirements, an on-premise banquet licensee and staff of the on-premise banquet licensee
2567     shall comply with this section.

2568          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2569     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2570          (i) an on-premise banquet licensee;
2571          (ii) individual staff of an on-premise banquet licensee; or
2572          (iii) both an on-premise banquet licensee and staff of the on-premise banquet licensee.
2573          (2) An on-premise banquet licensee shall comply with Subsections 32B-5-301(4) and
2574     (5) for the entire premises of the hotel, resort facility, sports center, or convention center that is
2575     the basis for the on-premise banquet license.
2576          (3) (a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee
2577     shall provide the department with advance notice of a scheduled banquet in accordance with
2578     rules made by the commission.
2579          (b) Any of the following may conduct a random inspection of a banquet:
2580          (i) an authorized representative of the commission or the department; or
2581          (ii) a law enforcement officer.
2582          (4) (a) An on-premise banquet licensee is not subject to Section 32B-5-302, but shall
2583     make and maintain the records the commission or department requires.
2584          (b) Section 32B-1-205 applies to a record required to be made or maintained in
2585     accordance with this Subsection (4).
2586          (5) (a) Except as otherwise provided in this title, an on-premise banquet licensee may
2587     sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption at the
2588     location of the banquet.
2589          (b) [A] Except as provided in Subsection 32B-5-307(4), a host of a banquet, a patron,
2590     or a person other than the on-premise banquet licensee or staff of the on-premise banquet
2591     licensee, may not remove an alcoholic product from the premises of the banquet.
2592          (c) Notwithstanding [Section 32B-5-307] Subsection 32B-5-307(3) and except as
2593     provided in Subsection 32B-5-307(4), a patron at a banquet may not bring an alcoholic product
2594     into or onto, or remove an alcoholic product from, the premises of a banquet.
2595          (6) (a) An on-premise banquet licensee may not leave an unsold alcoholic product at
2596     the banquet following the conclusion of the banquet.
2597          (b) At the conclusion of a banquet, an on-premise banquet licensee shall:
2598          (i) destroy an opened and unused alcoholic product that is not saleable, under

2599     conditions established by the department; and
2600          (ii) return to the on-premise banquet licensee's approved locked storage area any:
2601          (A) opened and unused alcoholic product that is saleable; and
2602          (B) unopened container of an alcoholic product.
2603          (c) Except as provided in Subsection (6)(b) with regard to an open or sealed container
2604     of an alcoholic product not sold or consumed at a banquet, an on-premise banquet licensee:
2605          (i) shall store the alcoholic product in the on-premise banquet licensee's approved
2606     locked storage area; and
2607          (ii) may use the alcoholic product at more than one banquet.
2608          (7) Notwithstanding Section 32B-5-308, an on-premise banquet licensee may not
2609     employ a minor to sell, furnish, or dispense an alcoholic product in connection with the
2610     on-premise banquet licensee's banquet and room service activities.
2611          (8) An on-premise banquet licensee may not sell, offer for sale, or furnish an alcoholic
2612     product at a banquet or in connection with room service any day during a period that:
2613          (a) begins at 1 a.m.; and
2614          (b) ends at 9:59 a.m.
2615          (9) An on-premise banquet licensee shall maintain at least 50% of its total annual
2616     banquet gross receipts from the sale of food, not including:
2617          (a) mix for an alcoholic product; and
2618          (b) a charge in connection with the furnishing of an alcoholic product.
2619          (10) (a) Subject to the other provisions of this Subsection (10), a patron may not have
2620     more than two alcoholic products of any kind at a time before the patron.
2621          (b) A patron may not have more than one spirituous liquor drink at a time before the
2622     patron.
2623          (c) An individual portion of wine is considered to be one alcoholic product under
2624     Subsection (10)(a).
2625          (11) (a) An on-premise banquet licensee shall supervise and direct a person involved in
2626     the sale, offer for sale, or furnishing of an alcoholic product.
2627          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
2628     shall complete an alcohol training and education seminar.
2629          (12) A staff person of an on-premise banquet licensee shall remain at the banquet at all

2630     times when an alcoholic product is sold, offered for sale, furnished, or consumed at the
2631     banquet.
2632          (13) (a) Room service of an alcoholic product to a guest room of a hotel or resort
2633     facility shall be provided in person by staff of an on-premise banquet licensee only to an adult
2634     guest in the guest room.
2635          (b) An alcoholic product may not be left outside a guest room for retrieval by a guest.
2636          Section 31. Section 32B-6-605.1 is enacted to read:
2637          32B-6-605.1. Department study -- Rulemaking authority.
2638          (1) The department shall:
2639          (a) study the use of banquet catering contracts and the operation of on-premise banquet
2640     licenses under the provisions of this part; and
2641          (b) no later than November 30, 2018, submit a written report to the Business and Labor
2642     Interim Committee that:
2643          (i) identifies any issues the department discovers during the study described in
2644     Subsection (1)(a); and
2645          (ii) recommends possible legislative solutions to the issues, if any.
2646          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2647     commission may make rules establishing:
2648          (a) required terms in a contract between the host of a banquet and an on-premise
2649     banquet licensee; and
2650          (b) size requirements for a location of a banquet.
2651          Section 32. Section 32B-6-902 is amended to read:
2652          32B-6-902. Definitions.
2653          (1) As used in this part:
2654          (a) (i) "Dining area" means an area in the licensed premises of a beer-only restaurant
2655     licensee that is primarily used for the service and consumption of food by one or more patrons.
2656          (ii) "Dining area" does not include a dispensing area.
2657          (b) (i) "Dispensing area" means an area in the licensed premises of a beer-only
2658     restaurant licensee where a dispensing structure is located and that:
2659          (A) is physically separated from the dining area and any waiting area by a structure or
2660     other barrier that prevents a patron seated in the dining area or a waiting area from viewing the

2661     dispensing of beer;
2662          (B) except as provided in Subsection (1)(b)(ii), measures at least 10 feet from [any area
2663     where beer is dispensed to] the dining area and any waiting area[, measured from the point of
2664     the area where beer is dispensed that is closest to the dining area or waiting area] to the nearest
2665     edge of the dispensing structure; or
2666          (C) is physically separated from the dining area and any waiting area by a permanent
2667     physical structure that complies with the provisions of Title 15A, State Construction and Fire
2668     Codes Act, and, to the extent allowed under Title 15A, State Construction and Fire Codes Act,
2669     measures at least 42 inches high, and at least 60 inches from the inside edge of the barrier to
2670     the nearest edge of the dispensing structure.
2671          (ii) "Dispensing area" does not include any area described in Subsection (1)(b)(i)(B)
2672     that is less than 10 feet from an area where alcoholic product is dispensed, but from which a
2673     patron seated at a table or counter cannot view the dispensing of alcoholic product.
2674          (c) "Grandfathered bar structure" means a bar structure in a licensed premises of a
2675     beer-only restaurant licensee that:
2676          (i) was licensed as an on-premise beer retailer as of August 1, 2011, and as of August
2677     1, 2011:
2678          (A) is operational;
2679          (B) has facilities for the dispensing or storage of an alcoholic product that do not meet
2680     the requirements of Subsection 32B-6-905(12)(a)(ii); and
2681          (C) in accordance with Subsection 32B-6-703(2)(e), notifies the department that
2682     effective March 1, 2012, the on-premise beer retailer licensee will seek to be licensed as a
2683     beer-only restaurant; or
2684          (ii) is a bar structure grandfathered under Section 32B-6-409.
2685          (d) "Grandfathered bar structure" does not include a grandfathered bar structure
2686     described in Subsection (1)(a) on or after the day on which a restaurant remodels the
2687     grandfathered bar structure, as defined by rule made by the commission.
2688          (e) "Small beer-only restaurant licensee" means a beer-only restaurant licensee that has
2689     a grandfathered bar structure whose dispensing area includes more than 45% of the available
2690     seating for patrons on the licensed premises, excluding outdoor seating:
2691          (i) when measured in accordance with Subsection (1)(b)(i)(B); and

2692          (ii) based on the licensee's floor plan on file with the department on July 1, 2017.
2693          [(e)] (f) "Waiting area" includes a lobby.
2694          (2) Subject to Subsection (1)(d), a grandfathered bar structure remains a grandfathered
2695     bar structure notwithstanding whether a restaurant undergoes a change of ownership.
2696          Section 33. Section 32B-6-905 is amended to read:
2697          32B-6-905. Specific operational requirements for a beer-only restaurant license --
2698     Before July 1, 2018, or July 1, 2022.
2699          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2700     Requirements, a beer-only restaurant licensee and staff of the beer-only restaurant licensee
2701     shall comply with this section.
2702          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2703     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2704          (i) a beer-only restaurant licensee;
2705          (ii) individual staff of a beer-only restaurant licensee; or
2706          (iii) both a beer-only restaurant licensee and staff of the beer-only restaurant licensee.
2707          (2) (a) A beer-only restaurant licensee on the licensed premises may not sell, offer for
2708     sale, furnish, or allow consumption of liquor.
2709          (b) Liquor may not be on the premises of a beer-only restaurant licensee except for use:
2710          (i) as a flavoring on a dessert; and
2711          (ii) in the preparation of a flaming food dish, drink, or dessert.
2712          (3) In addition to complying with Section 32B-5-303, a beer-only restaurant licensee
2713     shall store beer in a storage area described in Subsection (12)(a).
2714          (4) (a) An individual who serves beer in a beer-only restaurant licensee's premises shall
2715     make a written beverage tab for each table or group that orders or consumes an alcoholic
2716     product on the premises.
2717          (b) A beverage tab required by this Subsection (4) shall list the type and amount of
2718     beer ordered or consumed.
2719          (5) A person's willingness to serve beer may not be made a condition of employment as
2720     a server with a beer-only restaurant licensee.
2721          (6) A beer-only restaurant licensee may sell, offer for sale, or furnish beer at the
2722     licensed premises during the following time periods only:

2723          (a) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
2724          (b) on a weekend or a state or federal legal holiday or for a private event, during the
2725     period that begins at 10:30 a.m. and ends at 12:59 a.m.
2726          (7) A beer-only restaurant licensee shall maintain at least 70% of its total restaurant
2727     business from the sale of food, which does not include a service charge.
2728          (8) (a) A beer-only restaurant may not sell, offer for sale, or furnish beer except after
2729     the beer-only restaurant licensee confirms that the patron has the intent to order food prepared,
2730     sold, and furnished at the licensed premises.
2731          (b) A beer-only restaurant shall maintain on the licensed premises adequate culinary
2732     facilities for food preparation and dining accommodations.
2733          (9) A patron may not have more than two beers at a time before the patron.
2734          (10) A patron may consume a beer only:
2735          (a) at:
2736          (i) the patron's table;
2737          (ii) a grandfathered bar structure; or
2738          (iii) a counter; and
2739          (b) where food is served.
2740          (11) (a) A beer-only restaurant licensee may not sell, offer for sale, or furnish a beer to
2741     a patron, and a patron may not consume an alcoholic product at a bar structure.
2742          (b) Notwithstanding Subsection (11)(a), at a grandfathered bar structure, a patron who
2743     is 21 years of age or older may:
2744          (i) sit;
2745          (ii) be furnished a beer; and
2746          (iii) consume a beer.
2747          (c) Except as provided in Subsection (11)(d), at a grandfathered bar structure, a
2748     beer-only restaurant licensee may not permit a minor to, and a minor may not:
2749          (i) sit; or
2750          (ii) consume food or beverages.
2751          (d) (i) A minor may be at a grandfathered bar structure if the minor is employed by a
2752     beer-only restaurant licensee:
2753          (A) as provided in Subsection 32B-5-308(2); or

2754          (B) to perform maintenance and cleaning services during an hour when the beer-only
2755     restaurant licensee is not open for business.
2756          (ii) A minor may momentarily pass by a grandfathered bar structure without
2757     remaining or sitting at the bar structure en route to an area of a beer-only restaurant licensee's
2758     premises in which the minor is permitted to be.
2759          (12) A beer-only restaurant licensee may dispense a beer only if:
2760          (a) the beer is dispensed from an area that is:
2761          (i) a grandfathered bar structure; or
2762          (ii) separated from an area for the consumption of food by a patron by a solid,
2763     translucent, permanent structural barrier such that the facilities for the storage or dispensing of
2764     an alcoholic product are not readily visible to a patron, not accessible by a patron, and apart
2765     from an area used for dining, for staging, or as a lobby or waiting area;
2766          (b) the beer-only restaurant licensee uses a beer that is:
2767          (i) stored in an area described in Subsection (12)(a); or
2768          (ii) in an area not described in Subsection (12)(a) on the licensed premises and:
2769          (A) immediately before the beer is dispensed it is in an unopened container;
2770          (B) the unopened container is taken to an area described in Subsection (12)(a) before it
2771     is opened; and
2772          (C) once opened, the container is stored in an area described in Subsection (12)(a) ; and
2773          (c) any instrument or equipment used to dispense the beer is located in an area
2774     described in Subsection (12)(a).
2775          [(13) In addition to complying with Subsection 32B-5-301(3), a beer-only restaurant
2776     licensee shall display in a conspicuous place at the entrance to the licensed premises a sign
2777     approved by the commission that:]
2778          [(a) measures at least 8-1/2 inches long and 11 inches wide; and]
2779          [(b) clearly states that the beer-only restaurant licensee is a restaurant and not a bar.]
2780          [(14)] (13) Beginning on July 1, 2018, a minor may not sit, remain, or consume food or
2781     beverages within 10 feet of a grandfathered bar structure, unless:
2782          (a) seating within 10 feet of the grandfathered bar structure is the only seating available
2783     in the licensed premises; and
2784          (b) the minor is accompanied by an individual who is 21 years of age or older.

2785          [(15)] (14) Except as provided in Subsection 32B-6-905.1[(18)](16) and Section
2786     32B-6-905.2, the provisions of this section apply before July 1, 2018.
2787          Section 34. Section 32B-6-905.1 is amended to read:
2788          32B-6-905.1. Specific operational requirements for a beer-only restaurant license
2789     -- On and after July 1, 2018, or July 1, 2022.
2790          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2791     Requirements, a beer-only restaurant licensee and staff of the beer-only restaurant licensee
2792     shall comply with this section.
2793          (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in
2794     accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2795          (i) a beer-only restaurant licensee;
2796          (ii) individual staff of a beer-only restaurant licensee; or
2797          (iii) both a beer-only restaurant licensee and staff of the beer-only restaurant licensee.
2798          (2) (a) A beer-only restaurant licensee on the licensed premises may not sell, offer for
2799     sale, furnish, or allow consumption of liquor.
2800          (b) Liquor may not be on the premises of a beer-only restaurant licensee except for use:
2801          (i) as a flavoring on a dessert; and
2802          (ii) in the preparation of a flaming food dish, drink, or dessert.
2803          [(3) In addition to complying with Section 32B-5-303, a beer-only restaurant licensee
2804     shall store beer in a storage area described in Subsection (13)(a).]
2805          [(4)] (3) (a) An individual who serves beer in a beer-only restaurant licensee's premises
2806     shall make a beverage tab for each table or group that orders or consumes an alcoholic product
2807     on the premises.
2808          (b) A beverage tab described in this Subsection [(4)] (3) shall state the type and amount
2809     of each alcoholic product ordered or consumed.
2810          [(5)] (4) A beer-only restaurant licensee may not make an individual's willingness to
2811     serve beer a condition of employment as a server with a beer-only restaurant licensee.
2812          [(6)] (5) A beer-only restaurant licensee may sell, offer for sale, or furnish beer at the
2813     licensed premises during the following time periods only:
2814          (a) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
2815          (b) on a weekend or a state or federal legal holiday or for a private event, during the

2816     period that begins at 10:30 a.m. and ends at 12:59 a.m.
2817          [(7)] (6) A beer-only restaurant licensee shall maintain at least 70% of the beer-only
2818     restaurant licensee's total restaurant business from the sale of food, which does not include a
2819     service charge.
2820          [(8)] (7) (a) A beer-only restaurant licensee may not [sell, offer for sale, or] furnish
2821     beer except after:
2822          (i) the patron to whom the beer-only restaurant licensee [sells, offers for sale, or]
2823     furnishes the beer is seated at:
2824          (A) a table that is located in a dining area or a dispensing area;
2825          (B) a counter that is located in a dining area or a dispensing area; or
2826          (C) a dispensing structure that is located in a dispensing area; and
2827          (ii) the beer-only restaurant licensee confirms that the patron intends to:
2828          (A) order food prepared, sold, and furnished at the licensed premises; and
2829          (B) except as provided in Subsection [(8)] (7)(b), consume the food at the same
2830     location where the patron is seated and [sold, offered for sale, or] furnished the beer.
2831          (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
2832     beer-only restaurant licensee, the beer-only restaurant licensee may sell, offer for sale, or
2833     furnish to the patron one portion of beer as described in Section 32B-5-304 if:
2834          (A) the patron is in a dispensing area and seated at a table, counter, or dispensing
2835     structure; and
2836          (B) the beer-only restaurant licensee first confirms that after the patron is seated in the
2837     dining area, the patron intends to order food prepared, sold, and furnished at the licensed
2838     premises.
2839          (ii) If the patron does not finish the patron's beer before moving to a seat in the dining
2840     area, an employee of the beer-only restaurant licensee who is qualified to sell and serve an
2841     alcoholic product under Section 32B-5-306 shall transport any unfinished portion of the
2842     patron's beer to the patron's seat in the dining area.
2843          (c) A beer-only restaurant licensee shall maintain on the licensed premises adequate
2844     culinary facilities for food preparation and dining accommodations.
2845          [(9)] (8) A patron may consume a beer only at:
2846          (a) a table that is located in a dining area or a dispensing area;

2847          (b) a counter that is located in a dining area or a dispensing area; or
2848          (c) a dispensing structure located in a dispensing area.
2849          [(10)] (9) A patron may not have more than two beers at a time before the patron.
2850          [(11)] (10) In accordance with the provisions of this section, an individual who is at
2851     least 21 years of age may consume food and beverages in a dispensing area.
2852          [(12)] (11) (a) Except as provided in Subsection [(12)] (11)(b), a minor may not sit,
2853     remain, or consume food or beverages in a dispensing area.
2854          (b) (i) A minor may be in a dispensing area if the minor is employed by the beer-only
2855     restaurant licensee:
2856          (A) in accordance with Subsection 32B-5-308(2); or
2857          (B) to perform maintenance and cleaning services when the beer-only restaurant
2858     licensee is not open for business.
2859          (ii) If there is no alternative route available, a minor may momentarily pass through a
2860     dispensing area without remaining or sitting in the dispensing area en route to an area of the
2861     beer-only restaurant licensee's premises in which the minor is permitted to be.
2862          [(13)] (12) A beer-only restaurant licensee may dispense a beer only if:
2863          (a) the beer is dispensed from:
2864          (i) a dispensing structure that is located in a dispensing area;
2865          (ii) an area that is:
2866          (A) separated from an area for the consumption of food by a patron by a solid,
2867     translucent, permanent structural barrier such that the facilities for the [storage or] dispensing
2868     of an alcoholic product are not readily visible to a patron, not accessible by a patron; and
2869          (B) apart from an area used for dining, for staging, or as a lobby or waiting area; or
2870          (iii) the premises of a bar licensee that is:
2871          (A) owned by the same person or persons as the beer-only restaurant licensee; and
2872          (B) located immediately adjacent to the premises of the beer-only restaurant licensee;
2873     and
2874          [(b) the beer-only restaurant licensee uses a beer that is stored in an area described in
2875     Subsection (13)(a) or in accordance with Section 32B-5-303; and]
2876          [(c)] (b) any instrument or equipment used to dispense the beer is located in an area
2877     described in Subsection [(13)] (12)(a).

2878          [(14)] (13) (a) A beer-only restaurant licensee may have more than one dispensing area
2879     in the licensed premises.
2880          (b) Each dispensing area in a licensed premises may satisfy the requirements for a
2881     dispensing area under Subsection [32B-6-202] 32B-6-902(1)(b)(i)(A), (B), or (C), regardless of
2882     how any other dispensing area in the licensed premises satisfies the requirements for a
2883     dispensing area.
2884          [(15)] (14) A beer-only restaurant licensee may not transfer, dispense, or serve beer on
2885     or from a movable cart.
2886          [(16)] (15) (a) In addition to the requirements described in Section 32B-5-302, a
2887     beer-only restaurant licensee shall maintain each of the following records for at least three
2888     years:
2889          (i) a record required by Section 32B-5-302; and
2890          (ii) a record that the commission requires a beer-only restaurant licensee to use or
2891     maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2892     Rulemaking Act.
2893          (b) The department shall audit the records of a beer-only restaurant licensee at least
2894     once each calendar year.
2895          [(17) A beer-only restaurant licensee shall display in a conspicuous place at the
2896     entrance to the licensed premises a sign approved by the commission that:]
2897          [(a) measures at least 8-1/2 inches long and 11 inches wide; and]
2898          [(b) clearly states that the beer-only restaurant licensee is a restaurant and not a bar.]
2899          [(18)] (16) (a) In accordance with Section 32B-6-905.2, a beer-only restaurant licensee:
2900          (i) may comply with the provisions of this section beginning on or after July 1, 2017;
2901     and
2902          (ii) shall comply with the provisions of this section:
2903          (A) for a beer-only restaurant licensee that does not have a grandfathered bar structure,
2904     on and after July 1, 2018; or
2905          (B) for a beer-only restaurant licensee that has a grandfathered bar structure, on and
2906     after July 1, 2022.
2907          (b) A beer-only restaurant licensee that elects to comply with the provisions of this
2908     section before the latest applicable date described in Subsection [(18)] (16)(a)(ii):

2909          (i) shall comply with each provision of this section; and
2910          (ii) is not required to comply with the provisions of Section 32B-6-905.
2911          Section 35. Section 32B-6-905.3 is enacted to read:
2912          32B-6-905.3. Small beer-only restaurant licensee -- Exemption.
2913          (1) Notwithstanding the provisions of Section 32B-6-905 or 32B-6-905.2 and subject
2914     to Subsection (2), a minor may sit, remain, or consume food or beverages in the dispensing
2915     area of a small beer-only restaurant licensee if:
2916          (a) seating in the dispensing area is the only seating available for patrons on the
2917     licensed premises;
2918          (b) the minor is accompanied by an individual who is 21 years of age or older; and
2919          (c) the small beer-only restaurant licensee applies for and obtains approval from the
2920     department to seat minors in the dispensing area in accordance with this section.
2921          (2) A minor may not sit, remain, or consume food or beverages at a dispensing
2922     structure.
2923          (3) The department shall:
2924          (a) grant an approval described in Subsection (1)(c) if the small beer-only restaurant
2925     licensee demonstrates that the small beer-only restaurant licensee meets the requirements
2926     described in Subsection 32B-6-902(1)(e); and
2927          (b) for each application described in Subsection (1)(c) that the department receives on
2928     or before May 8, 2018, act on the application on or before July 1, 2018.
2929          Section 36. Section 32B-7-202 is amended to read:
2930          32B-7-202. General operational requirements for off-premise beer retailer.
2931          (1) (a) An off-premise beer retailer or staff of the off-premise beer retailer shall comply
2932     with the provisions of this title and any applicable rules made by the commission.
2933          (b) Failure to comply with this section may result in a suspension or revocation of a
2934     local license and, on or after July 1, 2018, disciplinary action in accordance with Chapter 3,
2935     Disciplinary Actions and Enforcement Act.
2936          (2) (a) (i) An off-premise beer retailer may not purchase, acquire, possess for the
2937     purpose of resale, or sell beer, except beer that the off-premise beer retailer lawfully purchases
2938     from:
2939          (A) a beer wholesaler licensee; or

2940          (B) a small brewer that manufactures the beer.
2941          (ii) A violation of Subsection (2)(a) is a class A misdemeanor.
2942          (b) (i) If an off-premise beer retailer purchases beer under this Subsection (2) from a
2943     beer wholesaler licensee, the off-premise beer retailer shall purchase beer only from a beer
2944     wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area
2945     in which the off-premise beer retailer is located, unless an alternate wholesaler is authorized by
2946     the department to sell to the off-premise beer retailer as provided in Section 32B-13-301.
2947          (ii) A violation of Subsection (2)(b) is a class B misdemeanor.
2948          (3) An off-premise beer retailer may not possess, sell, offer for sale, or furnish beer in a
2949     container larger than two liters.
2950          (4) (a) Staff of an off-premise beer retailer, while on duty, may not:
2951          (i) consume an alcoholic product; or
2952          (ii) be intoxicated.
2953          [(4)] (b) A minor may not sell beer on the licensed premises of an off-premise beer
2954     retailer unless:
2955          [(a)] (i) the sale is done under the supervision of a person 21 years of age or older who
2956     is on the licensed premises; and
2957          [(b)] (ii) the minor is at least 16 years of age.
2958          (5) An off-premise beer retailer may not sell, offer for sale, or furnish an alcoholic
2959     product to:
2960          (a) a minor;
2961          (b) a person actually, apparently, or obviously intoxicated;
2962          (c) a known interdicted person; or
2963          (d) a known habitual drunkard.
2964          [(5)] (6) (a) Subject to the other provisions of this Subsection [(5)] (6), an off-premise
2965     beer retailer shall:
2966          (i) display all beer accessible by and visible to a patron in no more than two locations
2967     on the retail sales floor, each of which is:
2968          (A) a display cabinet, cooler, aisle, floor display, or room where beer is the only
2969     beverage displayed; and
2970          (B) not adjacent to a display of nonalcoholic beverages, unless the location is a cooler

2971     with a door from which the nonalcoholic beverages are not accessible, or the beer is separated
2972     from the display of nonalcoholic beverages by a display of one or more nonbeverage products
2973     or another physical divider; and
2974          (ii) display a sign in the area described in Subsection [(5)] (6)(a)(i) that:
2975          (A) is prominent;
2976          (B) is easily readable by a consumer;
2977          (C) meets the requirements for format established by the commission by rule; and
2978          (D) reads in print that is no smaller than .5 inches, bold type, "These beverages contain
2979     alcohol. Please read the label carefully."
2980          (b) Notwithstanding Subsection [(5)] (6)(a), a nonalcoholic beer may be displayed with
2981     beer if the nonalcoholic beer is labeled, packaged, or advertised as a nonalcoholic beer.
2982          (c) The requirements of this Subsection [(5)] (6) apply to beer notwithstanding that it is
2983     labeled, packaged, or advertised as:
2984          (i) a malt cooler; or
2985          (ii) a beverage that may provide energy.
2986          (d) A violation of this Subsection [(5)] (6) is an infraction.
2987          (e) (i) Except as provided in Subsection [(5)] (6)(e)(ii), the provisions of Subsection
2988     [(5)] (6)(a)(i) apply on and after May 9, 2017.
2989          (ii) For a beer retailer that operates two or more off-premise beer retailers, the
2990     provisions of Subsection [(5)] (6)(a)(i) apply on and after August 1, 2017.
2991          [(6)] (7) (a) Staff of an off-premise beer retailer who directly supervises the sale of beer
2992     or who sells beer to a patron for consumption off the premises of the off-premise beer retailer
2993     shall wear a unique identification badge:
2994          (i) on the front of the staff's clothing;
2995          (ii) visible above the waist;
2996          (iii) bearing the staff's:
2997          (A) first or last name;
2998          (B) initials; or
2999          (C) unique identification in letters or numbers; and
3000          (iv) with the number or letters on the unique identification badge being sufficiently
3001     large to be clearly visible and identifiable while engaging in or directly supervising the retail

3002     sale of beer.
3003          (b) An off-premise beer retailer shall make and maintain a record of each current staff's
3004     unique identification badge assigned by the off-premise beer retailer that includes the staff's:
3005          (i) full name;
3006          (ii) address; and
3007          (iii) (A) driver license number; or
3008          (B) similar identification number.
3009          (c) An off-premise beer retailer shall make available a record required to be made or
3010     maintained under this Subsection [(6)] (7) for immediate inspection by:
3011          (i) a peace officer;
3012          (ii) a representative of the local authority that issues the off-premise beer retailer
3013     license; or
3014          (iii) for an off-premise beer retailer state license, a representative of the commission or
3015     department.
3016          (d) A local authority may impose a fine of up to $250 against an off-premise beer
3017     retailer that does not comply or require its staff to comply with this Subsection [(6)] (7).
3018          Section 37. Section 32B-7-401 is amended to read:
3019          32B-7-401. Commission's power to issue off-premise beer retailer state license.
3020          (1) Beginning on July 1, 2018, and except as provided in Subsection (3), before a
3021     person may purchase, store, sell, or offer for sale beer for consumption off the person's
3022     premises, the person shall obtain an off-premise beer retailer state license in accordance with
3023     this part.
3024          (2) The commission may issue an off-premise beer retailer state license for the retail
3025     sale of beer for consumption off the beer retailer's premises.
3026          (3) (a) A person who operates as an off-premise beer retailer on July 1, 2018, shall
3027     [obtain] submit an application for an off-premise beer retailer state license on or before March
3028     1, 2019.
3029          [(b) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
3030     the commission shall establish a deadline for each off-premise beer retailer described in
3031     Subsection (3)(a) to submit to the department an application for an off-premise beer retailer
3032     state license.]

3033          [(ii) The commission shall act upon each timely application submitted in accordance
3034     with this Subsection (3) on or before February 28, 2019.]
3035          [(c) An off-premise beer retailer described in Subsection (3)(a) may continue to operate
3036     without an off-premise beer retailer state license through February 28, 2019.]
3037          Section 38. Section 32B-8a-202 is amended to read:
3038          32B-8a-202. Effect of transfer of ownership of business entity.
3039          (1) (a) When the ownership of 51% or more of the shares of stock of a corporation is
3040     acquired by or transferred to one or more persons who did not hold the ownership of 51% of
3041     those shares of stock on the date a retail license is issued to the corporation, the corporation
3042     shall comply with this chapter to transfer the retail license to the corporation as if the
3043     corporation is newly constituted.
3044          (b) When there is a new general partner or when the ownership of 51% or more of the
3045     capital or profits of a limited partnership is acquired by or transferred to one or more persons as
3046     general or limited partners and who did not hold ownership of 51% or more of the capital or
3047     profits of the limited partnership on the date a retail license is issued to the limited partnership,
3048     the limited partnership shall comply with this chapter to transfer the retail license to the limited
3049     partnership as if the limited partnership is newly constituted.
3050          (c) When the ownership of 51% or more of the interests in a limited liability company
3051     is acquired by or transferred to one or more persons as members who did not hold ownership of
3052     51% or more of the interests in the limited liability company on the date a retail license is
3053     issued to the limited liability company, the limited liability company shall comply with this
3054     chapter to transfer the retail license to the limited liability company as if the limited liability
3055     company is newly constituted.
3056          (2) [If a] A business entity [fails to] shall comply with this section within [30] 60 days
3057     [of] after the day on which the event described in Subsection (1) occurs[, the business entity's
3058     retail license is automatically forfeited].
3059          Section 39. Section 32B-8a-203 is amended to read:
3060          32B-8a-203. Operational requirements for transferee.
3061          (1) (a) A transferee shall begin operations of the retail license within 30 days from the
3062     day on which a transfer is approved by the commission, except that:
3063          (i) the department may grant an extension of this time period not to exceed 30 days;

3064     and
3065          (ii) after the extension is authorized by the department under Subsection (1)(a)(i), the
3066     commission may grant one or more additional extensions not to exceed, in the aggregate, seven
3067     months from the day on which the commission approves the transfer, if the transferee can
3068     demonstrate to the commission that the transferee:
3069          (A) cannot begin operations because the transferee is improving the licensed premises;
3070          (B) has obtained a building permit for the improvements described in Subsection
3071     (1)(a)(ii)(A); and
3072          (C) is working expeditiously to complete the improvements to the licensed premises.
3073          (b) A transferee is considered to have begun operations of the retail license if the
3074     transferee:
3075          (i) has a licensed premises that is open [to the public] for business;
3076          (ii) sells, offers for sale, or furnishes alcoholic products to a patron on the licensed
3077     premises described in Subsection (1)(b)(i); and
3078          (iii) has a valid business license.
3079          (2) If a transferee fails to begin operations of the retail license within the time period
3080     required by Subsection (1), the following are automatically forfeited effective immediately:
3081          (a) the retail license; and
3082          (b) the retail license fee.
3083          (3) A transferee shall begin operations of the retail license at the location to which the
3084     transfer applies before the transferee may seek a transfer of the retail license to a different
3085     location.
3086          (4) Notwithstanding Subsection (1), the commission may not issue a conditional
3087     license unless the requirements of Section 32B-5-205 are met, except that the time periods
3088     required by this section supersede the time period provided in Section 32B-5-205.
3089          Section 40. Section 32B-8b-102 is amended to read:
3090          32B-8b-102. Definitions.
3091          As used in this chapter:
3092          (1) "Boundary of a hotel" means the physical boundary of [the] one or more contiguous
3093     parcels of real estate owned or managed by the same person and on which a hotel is located
3094     [one or more buildings and any structure or improvement to that real estate as determined by

3095     the commission].
3096          (2) "Hotel" means one or more buildings that:
3097          (a) [constitute] comprise a hotel, as defined by the commission;
3098          (b) are owned or managed by the same person or by a person who has a majority
3099     interest in [and] or can direct or exercise control over the management or policy of the person
3100     who owns or manages any other building under the hotel license within the boundary of the
3101     hotel;
3102          (c) primarily operate to provide lodging accommodations;
3103          (d) provide room service within the boundary of the hotel meeting the requirements of
3104     this title;
3105          (e) have on-premise banquet space and provide on-premise banquet service within the
3106     boundary of the hotel meeting the requirements of this title;
3107          (f) have a restaurant or bar establishment within the boundary of the hotel meeting the
3108     requirements of this title; and
3109          (g) have at least 40 guest rooms.
3110          (3) "Provisions applicable to a sublicense" means:
3111          (a) for a full-service restaurant sublicense, Chapter 6, Part 2, Full-Service Restaurant
3112     License;
3113          (b) for a limited-service restaurant sublicense, Chapter 6, Part 3, Limited-Service
3114     Restaurant License;
3115          (c) for a bar establishment sublicense, Chapter 6, Part 4, Bar Establishment License;
3116          (d) for an on-premise banquet sublicense, Chapter 6, Part 6, On-Premise Banquet
3117     License;
3118          (e) for an on-premise beer retailer sublicense, Chapter 6, Part 7, On-Premise Beer
3119     Retailer License; and
3120          (f) for a beer-only restaurant sublicense, Chapter 6, Part 9, Beer-Only Restaurant
3121     License.
3122          (4) "Sublicense" means:
3123          (a) a full-service restaurant sublicense;
3124          (b) a limited-service restaurant sublicense;
3125          (c) a bar establishment sublicense;

3126          (d) an on-premise banquet sublicense;
3127          (e) an on-premise beer retailer sublicense; and
3128          (f) a beer-only restaurant sublicense.
3129          (5) "Sublicense premises" means a building, enclosure, or room used pursuant to a
3130     sublicense in connection with the storage, sale, furnishing, or consumption of an alcoholic
3131     product, unless otherwise defined in this title or in the rules made by the commission[, except
3132     that sublicense premises may have only one sublicense within a room or an enclosure that is
3133     separate from a room].
3134          Section 41. Section 32B-8b-301 is amended to read:
3135          32B-8b-301. Specific operational requirements for hotel license.
3136          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3137     Requirements, a hotel licensee, staff of the hotel licensee, and a person otherwise operating
3138     under a sublicense shall comply with this section.
3139          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
3140     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3141          (i) a hotel licensee;
3142          (ii) individual staff of a hotel licensee;
3143          (iii) a person otherwise operating under a sublicense;
3144          (iv) individual staff of a person otherwise operating under a sublicense; or
3145          (v) any combination of the persons listed in this Subsection (1)(b).
3146          (2) (a) A hotel licensee may not sell, offer for sale, or furnish an alcoholic product
3147     except:
3148          (i) on a sublicense premises;
3149          (ii) pursuant to a permit issued under this title; or
3150          (iii) under a package agency agreement with the department, subject to Chapter 2, Part
3151     6, Package Agency.
3152          (b) A hotel licensee who sells, offers for sale, or furnishes an alcoholic product as
3153     provided in Subsection (2)(a) shall sell, offer for sale, or furnish the alcoholic product:
3154          (i) except as provided in Section 32B-8b-302, if on a sublicense premises, in
3155     accordance with the operational requirements under the provisions applicable to the sublicense;
3156          (ii) if under a permit issued under this title, in accordance with the operational

3157     requirements under the provisions applicable to the permit; and
3158          (iii) if as a package agency, in accordance with the contract with the department and
3159     Chapter 2, Part 6, Package Agency.
3160          (c) Notwithstanding the other provisions of this Subsection (2), a hotel licensee may
3161     not permit a patron to carry an alcoholic product off the premises of a sublicense in violation of
3162     Section 32B-5-307 or off an area designated under a permit.
3163          (3) A hotel licensee shall comply with Subsections 32B-5-301(4) and (5) within the
3164     boundary of the hotel.
3165          (4) A hotel licensee shall supervise and direct a person involved in the sale, offer for
3166     sale, or furnishing of an alcoholic product under a hotel license.
3167          (5) (a) Room service of an alcoholic product to a lodging accommodation of a hotel
3168     licensee shall be provided in person by staff of a hotel licensee only to an adult occupant in the
3169     lodging accommodation.
3170          (b) An alcoholic product may not be left outside a lodging accommodation for retrieval
3171     by an occupant.
3172          (6) A hotel licensee shall operate in a manner so that at least 70% of the annual
3173     aggregate of the gross receipts related to the sale of food or beverages for the hotel license and
3174     each of the hotel license's sublicenses is from the sale of food, not including:
3175          (a) mix for an alcoholic product; and
3176          (b) a charge in connection with the service of an alcoholic product.
3177          Section 42. Section 32B-8b-302 is amended to read:
3178          32B-8b-302. Specific operational requirements for a sublicense.
3179          (1) [A] Except as provided in Subsection (2), a person operating under a sublicense is
3180     subject to the operational requirements under the provisions applicable to the sublicense.
3181          (2) A person operating under a sublicense is not subject to a requirement that a certain
3182     percentage of the gross receipts for the sublicense be from the sale of food, except to the extent
3183     the gross receipts for the sublicense are included in calculating the percentages under
3184     Subsection 32B-8-401(4).
3185          [(2)] (3) For purposes of interpreting an operational requirement imposed by the
3186     provisions applicable to a sublicense:
3187          (a) a requirement imposed on a person operating under a sublicense applies to the hotel

3188     licensee; and
3189          (b) a requirement imposed on staff of a person operating under a sublicense applies to
3190     staff of the hotel licensee.
3191          Section 43. Section 53F-9-304 is amended to read:
3192          53F-9-304. Underage Drinking Prevention Program Restricted Account.
3193          (1) As used in this section, "account" means the Underage Drinking Prevention
3194     Program Restricted Account created in this section.
3195          (2) There is created within the Education Fund a restricted account known as the
3196     "Underage Drinking Prevention Program Restricted Account."
3197          (3) (a) Before the Department of Alcoholic Beverage Control [remits] deposits any
3198     portion of the markup collected under Section 32B-2-304 [to the State Tax Commission, the
3199     department] into the Liquor Control Fund in accordance with Section 32B-2-301, the
3200     Department of Alcoholic Beverage Control shall deposit into the account:
3201          (i) for the fiscal year that begins July 1, 2017, $1,750,000; or
3202          (ii) for each fiscal year that begins on or after July 1, 2018, an amount equal to the
3203     amount that the [department] Department of Alcoholic Beverage Control deposited into the
3204     account during the preceding fiscal year increased or decreased by a percentage equal to the
3205     percentage difference between the Consumer Price Index for the second preceding calendar
3206     year and the Consumer Price Index for the preceding calendar year [2017].
3207          (b) For purposes of this Subsection (3), the department shall calculate the Consumer
3208     Price Index in accordance with 26 U.S.C. Secs. 1(f)(4) and 1(f)(5).
3209          (4) The account shall be funded:
3210          (a) in accordance with Subsection (3);
3211          (b) by appropriations made to the account by the Legislature; and
3212          (c) by interest earned on money in the account.
3213          (5) The State Board of Education shall use money in the account for the Underage
3214     Drinking Prevention Program described in Section 53G-10-406.
3215          Section 44. Section 53G-10-406 is amended to read:
3216          53G-10-406. Underage Drinking Prevention Program -- State Board of Education
3217     rules.
3218          (1) As used in this section:

3219          (a) "Advisory council" means the Underage Drinking Prevention Program Advisory
3220     Council created in this section.
3221          (b) "Board" means the State Board of Education.
3222          (c) "LEA" means:
3223          (i) a school district;
3224          (ii) a charter school; or
3225          (iii) the Utah Schools for the Deaf and the Blind.
3226          (d) "Program" means the Underage Drinking Prevention Program created in this
3227     section.
3228          (e) "School-based prevention [presentation] program" means an evidence-based
3229     program intended for students aged 13 and older that:
3230          (i) is aimed at preventing underage consumption of alcohol;
3231          (ii) is delivered by methods that engage students in storytelling and visualization;
3232          (iii) addresses the behavioral risk factors associated with underage drinking; and
3233          (iv) provides practical tools to address the dangers of underage drinking.
3234          (2) There is created the Underage Drinking Prevention Program that consists of:
3235          (a) a school-based prevention [presentation] program for students in grade 7 or 8; and
3236          (b) a school-based prevention [presentation] program for students in grade 9 or 10 that
3237     increases awareness of the dangers of driving under the influence of alcohol.
3238          (3) (a) Beginning with the 2018-19 school year, an LEA shall offer the program each
3239     school year to each student in grade 7 or 8 and grade 9 or 10.
3240          (b) An LEA shall select from the providers qualified by the board under Subsection (6)
3241     to offer the program.
3242          (4) The board shall administer the program with input from the advisory council.
3243          (5) There is created the Underage Drinking Prevention Program Advisory Council
3244     comprised of the following members:
3245          (a) the executive director of the Department of Alcoholic Beverage Control or the
3246     executive director's designee;
3247          (b) the executive director of the Department of Health or the executive director's
3248     designee;
3249          (c) the director of the Division of Substance Abuse and Mental Health or the director's

3250     designee;
3251          (d) the director of the Division of Child and Family Services or the director's designee;
3252          (e) the director of the Division of Juvenile Justice Services or the director's designee;
3253          (f) the state superintendent of public instruction or the state superintendent of public
3254     instruction's designee; and
3255          (g) two members of the State Board of Education, appointed by the chair of the State
3256     Board of Education.
3257          (6) (a) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the board
3258     shall qualify one or more providers to provide the program to an LEA.
3259          (b) In selecting a provider described in Subsection (6)(a), the board shall consider:
3260          (i) whether the provider's program complies with the requirements described in this
3261     section;
3262          (ii) the extent to which the provider's underage drinking prevention program aligns
3263     with core standards for Utah public schools; and
3264          (iii) the provider's experience in providing a program that is effective at reducing
3265     underage drinking.
3266          (7) (a) The board shall use money from the Underage Drinking Prevention Program
3267     Restricted Account described in Section 53F-9-304 for the program.
3268          (b) The board may use money from the Underage Drinking Prevention Program
3269     Restricted Account to fund up to .5 of a full-time equivalent position to administer the
3270     program.
3271          (8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3272     board shall make rules that:
3273          (a) beginning with the 2018-19 school year, require an LEA to offer the Underage
3274     Drinking Prevention Program each school year to each student in grade 7 or 8 and grade 9 or
3275     10; and
3276          (b) establish criteria for the board to use in selecting a provider described in Subsection
3277     (6).
3278          Section 45. Section 62A-15-401 is amended to read:
3279          62A-15-401. Alcohol training and education seminar.
3280          (1) As used in this part:

3281          (a) "Instructor" means a person that directly provides the instruction during an alcohol
3282     training and education seminar for a seminar provider.
3283          (b) "Licensee" means a person who is:
3284          (i) (A) a new or renewing licensee under Title 32B, Alcoholic Beverage Control Act;
3285     and
3286          (B) engaged in the retail sale of an alcoholic product for consumption on the premises
3287     of the licensee; or
3288          (ii) a business that is:
3289          (A) a new or renewing licensee licensed by a city, town, or county; and
3290          (B) engaged in the retail sale of beer for consumption off the premises of the licensee.
3291          (c) "Off-premise beer retailer" is as defined in Section 32B-1-102.
3292          (d) "Seminar provider" means a person other than the division who provides an alcohol
3293     training and education seminar meeting the requirements of this section.
3294          (2) (a) This section applies to:
3295          (i) a retail manager as defined in Section 32B-5-402;
3296          (ii) retail staff as defined in Section 32B-5-402; and
3297          (iii) an individual who, as defined by division rule:
3298          (A) directly supervises the sale of beer to a customer for consumption off the premises
3299     of an off-premise beer retailer; or
3300          (B) sells beer to a customer for consumption off the premises of an off-premise beer
3301     retailer.
3302          (b) If the individual does not have a valid record that the individual has completed an
3303     alcohol training and education seminar, an individual described in Subsection (2)(a) shall:
3304          (i) (A) complete an alcohol training and education seminar within 30 days of the
3305     following if the individual is described in [Subsections] Subsection (2)(a)(i) [through (iii)] or
3306     (ii):
3307          (I) if the individual is an employee, the day the individual begins employment;
3308          (II) if the individual is an independent contractor, the day the individual is first hired;
3309     or
3310          (III) if the individual holds an ownership interest in the licensee, the day that the
3311     individual first engages in an activity that would result in that individual being required to

3312     complete an alcohol training and education seminar; or
3313          (B) complete an alcohol training and education seminar within the time periods
3314     specified in Subsection 32B-5-404(1) if the individual is described in [Subsections (2)(a)(iv)
3315     and (v)] Subsection (2)(a)(iii)(A) or (B); and
3316          (ii) pay a fee:
3317          (A) to the seminar provider; and
3318          (B) that is equal to or greater than the amount established under Subsection (4)(h).
3319          (c) An individual shall have a valid record that the individual completed an alcohol
3320     training and education seminar within the time period provided in this Subsection (2) to engage
3321     in an activity described in Subsection (2)(a).
3322          (d) A record that an individual has completed an alcohol training and education
3323     seminar is valid for:
3324          (i) three years from the day on which the record is issued for an individual described in
3325     Subsection (2)(a)(i)[,] or (ii)[, or (iii)]; and
3326          (ii) five years from the day on which the record is issued for an individual described in
3327     Subsection (2)(a)[(iv) or (v)](iii)(A) or (B).
3328          (e) On and after July 1, 2011, to be considered as having completed an alcohol training
3329     and education seminar, an individual shall:
3330          (i) attend the alcohol training and education seminar and take any test required to
3331     demonstrate completion of the alcohol training and education seminar in the physical presence
3332     of an instructor of the seminar provider; or
3333          (ii) complete the alcohol training and education seminar and take any test required to
3334     demonstrate completion of the alcohol training and education seminar through an online course
3335     or testing program that meets the requirements described in Subsection (2)(f).
3336          (f) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
3337     Administrative Rulemaking Act, establish one or more requirements for an online course or
3338     testing program described in Subsection (2)(e) that are designed to inhibit fraud in the use of
3339     the online course or testing program. In developing the requirements by rule the division shall
3340     consider whether to require:
3341          (i) authentication that the an individual accurately identifies the individual as taking the
3342     online course or test;

3343          (ii) measures to ensure that an individual taking the online course or test is focused on
3344     training material throughout the entire training period;
3345          (iii) measures to track the actual time an individual taking the online course or test is
3346     actively engaged online;
3347          (iv) a seminar provider to provide technical support, such as requiring a telephone
3348     number, email, or other method of communication that allows an individual taking the online
3349     course or test to receive assistance if the individual is unable to participate online because of
3350     technical difficulties;
3351          (v) a test to meet quality standards, including randomization of test questions and
3352     maximum time limits to take a test;
3353          (vi) a seminar provider to have a system to reduce fraud as to who completes an online
3354     course or test, such as requiring a distinct online certificate with information printed on the
3355     certificate that identifies the person taking the online course or test, or requiring measures to
3356     inhibit duplication of a certificate;
3357          (vii) measures for the division to audit online courses or tests;
3358          (viii) measures to allow an individual taking an online course or test to provide an
3359     evaluation of the online course or test;
3360          (ix) a seminar provider to track the Internet protocol address or similar electronic
3361     location of an individual who takes an online course or test;
3362          (x) an individual who takes an online course or test to use an e-signature; or
3363          (xi) a seminar provider to invalidate a certificate if the seminar provider learns that the
3364     certificate does not accurately reflect the individual who took the online course or test.
3365          (3) (a) A licensee may not permit an individual who is not in compliance with
3366     Subsection (2) to:
3367          (i) serve or supervise the serving of an alcoholic product to a customer for
3368     consumption on the premises of the licensee;
3369          (ii) engage in any activity that would constitute managing operations at the premises of
3370     a licensee that engages in the retail sale of an alcoholic product for consumption on the
3371     premises of the licensee;
3372          (iii) directly supervise the sale of beer to a customer for consumption off the premises
3373     of an off-premise beer retailer; or

3374          (iv) sell beer to a customer for consumption off the premises of an off-premise beer
3375     retailer.
3376          (b) A licensee that violates Subsection (3)(a) is subject to Section 32B-5-403.
3377          (4) The division shall:
3378          (a) (i) provide alcohol training and education seminars; or
3379          (ii) certify one or more seminar providers;
3380          (b) establish the curriculum for an alcohol training and education seminar that includes
3381     the following subjects:
3382          (i) (A) alcohol as a drug; and
3383          (B) alcohol's effect on the body and behavior;
3384          (ii) recognizing the problem drinker or signs of intoxication;
3385          (iii) an overview of state alcohol laws related to responsible beverage sale or service,
3386     as determined in consultation with the Department of Alcoholic Beverage Control;
3387          (iv) dealing with the problem customer, including ways to terminate sale or service;
3388     and
3389          (v) for those supervising or engaging in the retail sale of an alcoholic product for
3390     consumption on the premises of a licensee, alternative means of transportation to get the
3391     customer safely home;
3392          (c) recertify each seminar provider every three years;
3393          (d) monitor compliance with the curriculum described in Subsection (4)(b);
3394          (e) maintain for at least five years a record of every person who has completed an
3395     alcohol training and education seminar;
3396          (f) provide the information described in Subsection (4)(e) on request to:
3397          (i) the Department of Alcoholic Beverage Control;
3398          (ii) law enforcement; or
3399          (iii) a person licensed by the state or a local government to sell an alcoholic product;
3400          (g) provide the Department of Alcoholic Beverage Control on request a list of any
3401     seminar provider certified by the division; and
3402          (h) establish a fee amount for each person attending an alcohol training and education
3403     seminar that is sufficient to offset the division's cost of administering this section.
3404          (5) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah

3405     Administrative Rulemaking Act:
3406          (a) define what constitutes under this section an individual who:
3407          (i) manages operations at the premises of a licensee engaged in the retail sale of an
3408     alcoholic product for consumption on the premises of the licensee;
3409          (ii) supervises the serving of an alcoholic product to a customer for consumption on the
3410     premises of a licensee;
3411          (iii) serves an alcoholic product to a customer for consumption on the premises of a
3412     licensee;
3413          (iv) directly supervises the sale of beer to a customer for consumption off the premises
3414     of an off-premise beer retailer; or
3415          (v) sells beer to a customer for consumption off the premises of an off-premise beer
3416     retailer;
3417          (b) establish criteria for certifying and recertifying a seminar provider; and
3418          (c) establish guidelines for the manner in which an instructor provides an alcohol
3419     education and training seminar.
3420          (6) A seminar provider shall:
3421          (a) obtain recertification by the division every three years;
3422          (b) ensure that an instructor used by the seminar provider:
3423          (i) follows the curriculum established under this section; and
3424          (ii) conducts an alcohol training and education seminar in accordance with the
3425     guidelines established by rule;
3426          (c) ensure that any information provided by the seminar provider or instructor of a
3427     seminar provider is consistent with:
3428          (i) the curriculum established under this section; and
3429          (ii) this section;
3430          (d) provide the division with the names of all persons who complete an alcohol training
3431     and education seminar provided by the seminar provider;
3432          (e) (i) collect a fee for each person attending an alcohol training and education seminar
3433     in accordance with Subsection (2); and
3434          (ii) forward to the division the portion of the fee that is equal to the amount described
3435     in Subsection (4)(h); and

3436          (f) issue a record to an individual that completes an alcohol training and education
3437     seminar provided by the seminar provider.
3438          (7) (a) If after a hearing conducted in accordance with Title 63G, Chapter 4,
3439     Administrative Procedures Act, the division finds that a seminar provider violates this section
3440     or that an instructor of the seminar provider violates this section, the division may:
3441          (i) suspend the certification of the seminar provider for a period not to exceed 90 days;
3442          (ii) revoke the certification of the seminar provider;
3443          (iii) require the seminar provider to take corrective action regarding an instructor; or
3444          (iv) prohibit the seminar provider from using an instructor until such time that the
3445     seminar provider establishes to the satisfaction of the division that the instructor is in
3446     compliance with Subsection (6)(b).
3447          (b) The division may certify a seminar provider whose certification is revoked:
3448          (i) no sooner than 90 days from the date the certification is revoked; and
3449          (ii) if the seminar provider establishes to the satisfaction of the division that the
3450     seminar provider will comply with this section.
3451          Section 46. Section 63I-2-232 is amended to read:
3452          63I-2-232. Repeal dates -- Title 32B.
3453          (1) Subsection 32B-1-102(7) is repealed July 1, 2022.
3454          [(2) Subsection 32B-1-102(33) (a)(i)(B), the language that states
3455     "32B-6-205(12)(b)(ii), 32B-6-305(12)(b)(ii)," and ", or 32B-6-905(12)(b)(ii)" is repealed July
3456     1, 2022.]
3457          [(3) Subsection 32B-1-102(114)(b), the language that states "32B-6-205(12)(b)(ii),
3458     32B-6-305(12)(b)(ii)," and ", or 32B-6-905(12)(b)(ii)" is repealed July 1, 2022.]
3459          (2) Subsection 32B-1-407(3)(d) is repealed July 1, 2022.
3460          [(4)] (3) Subsection 32B-1-604(4) is repealed June 1, 2018.
3461          [(5)] (4) Subsections 32B-6-202(3) and (4) are repealed July 1, 2022.
3462          [(6)] (5) Section 32B-6-205 is repealed July 1, 2022.
3463          [(7)] (6) Subsection 32B-6-205.2[(17)](15) is repealed July 1, 2022.
3464          [(8)] (7) Section 32B-6-205.3 is repealed July 1, 2022.
3465          [(9)] (8) Subsections 32B-6-302(3) and (4) are repealed July 1, 2022.
3466          [(10)] (9) Section 32B-6-305 is repealed July 1, 2022.

3467          [(11)] (10) Subsection 32B-6-305.2[(17)](15) is repealed July 1, 2022.
3468          [(12)] (11) Section 32B-6-305.3 is repealed July 1, 2022.
3469          [(13)] (12) Section 32B-6-404.1 is repealed July 1, 2022.
3470          [(14)] (13) Section 32B-6-409 is repealed July 1, 2022.
3471          (14) Section 32B-6-605.1 is repealed July 1, 2019.
3472          (15) Subsection 32B-6-703(2)(e)(iv) is repealed July 1, 2022.
3473          (16) Subsections 32B-6-902(1)(c), (1)(d), and (2) are repealed July 1, 2022.
3474          (17) Section 32B-6-905 is repealed July 1, 2022.
3475          (18) Subsection 32B-6-905.1[(17)](16) is repealed July 1, 2022.
3476          (19) Section 32B-6-905.2 is repealed July 1, 2022.
3477          (20) Section 32B-7-303 is repealed March 1, 2019.
3478          (21) Section 32B-7-304 is repealed March 1, 2019.
3479          (22) Subsection 32B-8-402(1)(b) is repealed July 1, 2022.