1
2
3
4
5
6
7 LONG TITLE
8 General Description:
9 This bill modifies and enacts provisions related to alcohol.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ provides a tolerance for the alcohol content of beer;
14 ▸ modifies which individuals associated with an applicant are subject to a criminal
15 background check by the Alcoholic Beverage Control Commission;
16 ▸ amends the deadline for a retail manager or an off-premise retail manager to
17 complete the department's manager training program;
18 ▸ clarifies how the department determines eligibility for the small manufacturer
19 markup;
20 ▸ prohibits a person from maintaining a minibar in a hotel guest room;
21 ▸ authorizes interim alcoholic beverage management agreements and inventory
22 transfer agreements, under certain circumstances;
23 ▸ requires each employee of a retail license who sells, offers for sale, or furnishes an
24 alcoholic product to wear an identification badge;
25 ▸ allows a retail licensee to unlock a liquor storage area for the purpose of performing
26 inventory, restocking, repairing, or cleaning;
27 ▸ provides that a retail licensee may sell, offer for sale, or furnish beer to a patron in
28 more than one container;
29 ▸ provides that a closing retail licensee may transfer its inventory of alcoholic product
30 to another retail licensee owned by the same person;
31 ▸ permits a minor who is at least 16 years of age and employed by the restaurant to be
32 present in the restaurant's dispensing area;
33 ▸ provides that a performing arts facility may hold an on-premise banquet license;
34 ▸ allows certain manufacturing package agencies to hold an off-premise beer retailer
35 state license for the same premises, provided the licensee only sells beer that is the
36 product of the manufacturing licensee that holds the package agency;
37 ▸ creates a master off-premise beer retailer state license and a master brewery
38 manufacturing license;
39 ▸ enacts the Liquor Transport License Act, which authorizes the commission to issue
40 liquor transport licenses under which a person may transport liquor from a state
41 store or package agency to a retail licensee; and
42 ▸ makes technical and conforming changes.
43 Money Appropriated in this Bill:
44 None
45 Other Special Clauses:
46 None
47 Utah Code Sections Affected:
48 AMENDS:
49 32B-1-102, as last amended by Laws of Utah 2018, Chapters 249 and 313
50 32B-1-305, as last amended by Laws of Utah 2017, Chapter 455
51 32B-1-606, as last amended by Laws of Utah 2018, Chapter 249
52 32B-2-202, as last amended by Laws of Utah 2018, Second Special Session, Chapter 7
53 32B-2-204, as enacted by Laws of Utah 2010, Chapter 276
54 32B-2-304, as last amended by Laws of Utah 2018, Chapters 313, 329, and 415
55 32B-2-605, as last amended by Laws of Utah 2018, Chapter 249
56 32B-5-102, as enacted by Laws of Utah 2010, Chapter 276
57 32B-5-207, as last amended by Laws of Utah 2018, Chapter 249
58 32B-5-301, as last amended by Laws of Utah 2011, Chapter 334
59 32B-5-303, as last amended by Laws of Utah 2011, Chapter 307
60 32B-5-304, as last amended by Laws of Utah 2011, Chapters 307 and 334
61 32B-5-306, as enacted by Laws of Utah 2010, Chapter 276
62 32B-5-308, as last amended by Laws of Utah 2018, Chapter 249
63 32B-5-310, as enacted by Laws of Utah 2010, Chapter 276
64 32B-6-203, as last amended by Laws of Utah 2017, Chapter 471
65 32B-6-205, as last amended by Laws of Utah 2018, Chapter 249
66 32B-6-205.2, as last amended by Laws of Utah 2018, Chapters 249 and 281
67 32B-6-206, as enacted by Laws of Utah 2013, Chapter 349
68 32B-6-303, as last amended by Laws of Utah 2017, Chapter 471
69 32B-6-305, as last amended by Laws of Utah 2018, Chapter 249
70 32B-6-305.2, as last amended by Laws of Utah 2018, Chapters 249 and 281
71 32B-6-603, as last amended by Laws of Utah 2016, Chapter 82
72 32B-6-605, as last amended by Laws of Utah 2018, Chapter 249
73 32B-6-702, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
74 32B-6-703, as last amended by Laws of Utah 2017, Chapter 455
75 32B-6-803, as last amended by Laws of Utah 2016, Chapter 82
76 32B-6-805, as last amended by Laws of Utah 2012, Chapter 365
77 32B-6-902, as last amended by Laws of Utah 2018, Chapters 249 and 281
78 32B-6-903, as last amended by Laws of Utah 2017, Chapter 471
79 32B-6-905, as last amended by Laws of Utah 2018, Chapter 249
80 32B-6-905.1, as last amended by Laws of Utah 2018, Chapters 249 and 281
81 62A-15-401, as last amended by Laws of Utah 2018, Chapters 249 and 281
82 63I-2-232, as last amended by Laws of Utah 2018, Chapters 249 and 313
83 ENACTS:
84 32B-7-407, Utah Code Annotated 1953
85 32B-7-408, Utah Code Annotated 1953
86 32B-11-504, Utah Code Annotated 1953
87 32B-17-101, Utah Code Annotated 1953
88 32B-17-201, Utah Code Annotated 1953
89 32B-17-202, Utah Code Annotated 1953
90 32B-17-203, Utah Code Annotated 1953
91 32B-17-204, Utah Code Annotated 1953
92 32B-17-205, Utah Code Annotated 1953
93 32B-17-206, Utah Code Annotated 1953
94 32B-17-301, Utah Code Annotated 1953
95 32B-17-302, Utah Code Annotated 1953
96 RENUMBERS AND AMENDS:
97 32B-1-701, (Renumbered from 32B-5-402, as last amended by Laws of Utah 2017,
98 Chapter 455)
99 32B-1-702, (Renumbered from 32B-5-403, as last amended by Laws of Utah 2017,
100 Chapter 455)
101 32B-1-703, (Renumbered from 32B-5-404, as last amended by Laws of Utah 2017,
102 Chapter 455)
103 32B-1-704, (Renumbered from 32B-5-405, as last amended by Laws of Utah 2018,
104 Chapter 249)
105 32B-1-705, (Renumbered from 32B-5-406, as last amended by Laws of Utah 2018,
106 Chapter 249)
107 REPEALS:
108 32B-5-401, as enacted by Laws of Utah 2010, Chapter 276
109
110 Be it enacted by the Legislature of the state of Utah:
111 Section 1. Section 32B-1-102 is amended to read:
112 32B-1-102. Definitions.
113 As used in this title:
114 (1) "Airport lounge" means a business location:
115 (a) at which an alcoholic product is sold at retail for consumption on the premises; and
116 (b) that is located at an international airport with a United States Customs office on the
117 premises of the international airport.
118 (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
119 Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
120 (3) "Alcoholic beverage" means the following:
121 (a) beer; or
122 (b) liquor.
123 (4) (a) "Alcoholic product" means a product that:
124 (i) contains at least .5% of alcohol by volume; and
125 (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
126 process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
127 in an amount equal to or greater than .5% of alcohol by volume.
128 (b) "Alcoholic product" includes an alcoholic beverage.
129 (c) "Alcoholic product" does not include any of the following common items that
130 otherwise come within the definition of an alcoholic product:
131 (i) except as provided in Subsection (4)(d), an extract;
132 (ii) vinegar;
133 (iii) preserved nonintoxicating cider;
134 (iv) essence;
135 (v) tincture;
136 (vi) food preparation; or
137 (vii) an over-the-counter medicine.
138 (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
139 when it is used as a flavoring in the manufacturing of an alcoholic product.
140 (5) "Alcohol training and education seminar" means a seminar that is:
141 (a) required by Chapter 5, Part 4, Alcohol Training and Education Act; and
142 (b) described in Section 62A-15-401.
143 (6) "Banquet" means [
144 (a) that is held at one or more designated locations approved by the commission in or
145 on the premises of a:
146 (i) hotel;
147 (ii) resort facility;
148 (iii) sports center; [
149 (iv) convention center; or
150 (v) performing arts facility;
151 (b) for which there is a contract:
152 (i) between a person operating a facility listed in Subsection (6)(a) and another person;
153 and
154 (ii) under which the person operating a facility listed in Subsection (6)(a) is required to
155 provide an alcoholic product at the event; and
156 (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
157 (7) "Bar structure" means a surface or structure on a licensed premises if on or at any
158 place of the surface or structure an alcoholic product is:
159 (a) stored; or
160 (b) dispensed.
161 (8) (a) "Bar establishment license" means a license issued in accordance with Chapter
162 5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License.
163 (b) "Bar establishment license" includes:
164 (i) a dining club license;
165 (ii) an equity license;
166 (iii) a fraternal license; or
167 (iv) a bar license.
168 (9) "Bar license" means a license issued in accordance with Chapter 5, Retail License
169 Act, and Chapter 6, Part 4, Bar Establishment License.
170 (10) (a) Subject to Subsection (10)(d), "beer" means a product that:
171 (i) contains at least .5% of alcohol by volume, but not more than:
172 (A) 4% of alcohol by volume, plus a tolerance of 0.18%; or
173 (B) 3.2% by weight, plus a tolerance of 0.15%; and
174 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
175 (b) "Beer" may or may not contain hops or other vegetable products.
176 (c) "Beer" includes a product that:
177 (i) contains alcohol in the percentages described in Subsection (10)(a); and
178 (ii) is referred to as:
179 (A) beer;
180 (B) ale;
181 (C) porter;
182 (D) stout;
183 (E) lager; or
184 (F) a malt or malted beverage.
185 (d) "Beer" does not include a flavored malt beverage.
186 (11) "Beer-only restaurant license" means a license issued in accordance with Chapter
187 5, Retail License Act, and Chapter 6, Part 9, Beer-Only Restaurant License.
188 (12) "Beer retailer" means a business that:
189 (a) is engaged, primarily or incidentally, in the retail sale of beer to a patron, whether
190 for consumption on or off the business premises; and
191 (b) is licensed as:
192 (i) an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-Premise Beer
193 Retailer Local Authority; or
194 (ii) an on-premise beer retailer, in accordance with Chapter 5, Retail License Act, and
195 Chapter 6, Part 7, On-Premise Beer Retailer License.
196 (13) "Beer wholesaling license" means a license:
197 (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
198 (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
199 retail licensees or off-premise beer retailers.
200 (14) "Billboard" means a public display used to advertise, including:
201 (a) a light device;
202 (b) a painting;
203 (c) a drawing;
204 (d) a poster;
205 (e) a sign;
206 (f) a signboard; or
207 (g) a scoreboard.
208 (15) "Brewer" means a person engaged in manufacturing:
209 (a) beer;
210 (b) heavy beer; or
211 (c) a flavored malt beverage.
212 (16) "Brewery manufacturing license" means a license issued in accordance with
213 Chapter 11, Part 5, Brewery Manufacturing License.
214 (17) "Certificate of approval" means a certificate of approval obtained from the
215 department under Section 32B-11-201.
216 (18) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
217 a bus company to a group of persons pursuant to a common purpose:
218 (a) under a single contract;
219 (b) at a fixed charge in accordance with the bus company's tariff; and
220 (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
221 motor vehicle, and a driver to travel together to one or more specified destinations.
222 (19) "Church" means a building:
223 (a) set apart for worship;
224 (b) in which religious services are held;
225 (c) with which clergy is associated; and
226 (d) that is tax exempt under the laws of this state.
227 (20) "Commission" means the Alcoholic Beverage Control Commission created in
228 Section 32B-2-201.
229 (21) "Commissioner" means a member of the commission.
230 (22) "Community location" means:
231 (a) a public or private school;
232 (b) a church;
233 (c) a public library;
234 (d) a public playground; or
235 (e) a public park.
236 (23) "Community location governing authority" means:
237 (a) the governing body of the community location; or
238 (b) if the commission does not know who is the governing body of a community
239 location, a person who appears to the commission to have been given on behalf of the
240 community location the authority to prohibit an activity at the community location.
241 (24) "Container" means a receptacle that contains an alcoholic product, including:
242 (a) a bottle;
243 (b) a vessel; or
244 (c) a similar item.
245 (25) "Convention center" means a facility that is:
246 (a) in total at least 30,000 square feet; and
247 (b) otherwise defined as a "convention center" by the commission by rule.
248 (26) (a) "Counter" means a surface or structure in a dining area of a licensed premises
249 where seating is provided to a patron for service of food.
250 (b) "Counter" does not include a dispensing structure.
251 (27) "Crime involving moral turpitude" is as defined by the commission by rule.
252 [
253 in Section 32B-2-203.
254 [
255 (a) an auditor or inspector; and
256 (b) employed by the department.
257 [
258 department for testing, analysis, and sampling.
259 [
260 Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
261 commission as a dining club license.
262 [
263 department.
264 [
265 under this 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 [
269 (i) drawing an alcoholic product; and
270 (ii) using the alcoholic product at the location from which it was drawn to mix or
271 prepare an alcoholic product to be furnished to a patron of the retail licensee.
272 (b) The definition of "dispense" in this Subsection [
273 (i) a full-service restaurant license;
274 (ii) a limited-service restaurant license;
275 (iii) a reception center license; and
276 (iv) a beer-only restaurant license.
277 [
278 (a) where an alcoholic product is dispensed; or
279 (b) from which an alcoholic product is served.
280 [
281 with Chapter 11, Part 4, Distillery Manufacturing License.
282 [
283 the department that is saleable, but for some reason is unappealing to the public.
284 [
285 (a) a nursery school;
286 (b) an infant day care center; and
287 (c) a trade and technical school.
288 [
289 Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
290 commission as an equity license.
291 [
292 (a) a single event permit; or
293 (b) a temporary beer event permit.
294 [
295 being considered in determining the total number of retail licenses that the commission may
296 issue at any time.
297 [
298 (i) that contains at least .5% alcohol by volume;
299 (ii) that is treated by processing, filtration, or another method of manufacture that is not
300 generally recognized as a traditional process in the production of a beer as described in 27
301 C.F.R. Sec. 25.55;
302 (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
303 extract; and
304 (iv) (A) for which the producer is required to file a formula for approval with the
305 federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
306 (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
307 (b) "Flavored malt beverage" is considered liquor for purposes of this title.
308 [
309 Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
310 commission as a fraternal license.
311 [
312 Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-Service Restaurant License.
313 [
314 individual an alcoholic product, by sale or otherwise.
315 (b) "Furnish" includes to:
316 (i) serve;
317 (ii) deliver; or
318 (iii) otherwise make available.
319 [
320 32B-6-407(9).
321 [
322 [
323 (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
324 (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
325 (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
326 (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
327 Act;
328 (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
329 Nurse Practice Act;
330 (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
331 Practice Act;
332 (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
333 Therapy Practice Act;
334 (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
335 (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
336 Professional Practice Act;
337 (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
338 (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
339 Practice Act;
340 (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
341 Hygienist Practice Act; and
342 (m) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act.
343 [
344 (i) contains more than:
345 (A) 4% alcohol by volume[
346 (B) 3.2% alcohol by weight, less a tolerance of 0.15%; and
347 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
348 (b) "Heavy beer" is considered liquor for the purposes of this title.
349 [
350 (50) "Hotel" means a commercial lodging establishment that:
351 (a) offers at least 30 temporary sleeping accommodations for compensation;
352 (b) is capable of hosting conventions, conferences, and food and beverage functions
353 under a banquet contract; and
354 (c) (i) has adequate kitchen or culinary facilities on the premises to provide complete
355 meals; or
356 (ii) (A) has at least 1,000 square feet of function space consisting of meeting or dining
357 rooms that can be reserved for private use under a banquet contract that can accommodate a
358 least 75 individuals; or
359 (B) if the establishment is located in a small or unincorporated locality, has an
360 appropriate amount of function space consisting of meeting or dining rooms that can be
361 reserved for private use under a banquet contract, as determined by the commission.
362 [
363 License Act, and Chapter 8b, Hotel License Act.
364 [
365 Chapter 3, Part 8, Identification Card Act.
366 [
367 salary, commission, or other means for representing and selling an alcoholic product of a
368 manufacturer, supplier, or importer of liquor.
369 [
370 possession of the department for testing, analysis, and sampling by a local industry
371 representative on the premises of the department to educate the local industry representative of
372 the quality and characteristics of the product.
373 [
374 furnishing of an alcoholic product is prohibited by:
375 (a) law; or
376 (b) court order.
377 [
378 (a) is significantly impaired as to the person's mental or physical functions as a result of
379 the use of:
380 (i) an alcoholic product;
381 (ii) a controlled substance;
382 (iii) a substance having the property of releasing toxic vapors; or
383 (iv) a combination of Subsections [
384 (b) exhibits plain and easily observed outward manifestations of behavior or physical
385 signs produced by the overconsumption of an alcoholic product.
386 [
387 (a) a department compliance officer; or
388 (b) a nondepartment enforcement officer.
389 [
390 [
391 (a) a retail license;
392 (b) a license issued in accordance with Chapter 11, Manufacturing and Related
393 Licenses Act;
394 (c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
395 [
396 (d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act[
397 or
398 (e) a license issued in accordance with Chapter 17, Liquor Transport License Act.
399 [
400 [
401 with Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-Service Restaurant License.
402 [
403 authority, other than a bus or taxicab:
404 (a) in which the driver and a passenger are separated by a partition, glass, or other
405 barrier;
406 (b) that is provided by a business entity to one or more individuals at a fixed charge in
407 accordance with the business entity's tariff; and
408 (c) to give the one or more individuals the exclusive use of the limousine and a driver
409 to travel to one or more specified destinations.
410 [
411 (A) is:
412 (I) alcohol;
413 (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
414 (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
415 (IV) other drink or drinkable liquid; and
416 (B) (I) contains at least .5% alcohol by volume; and
417 (II) is suitable to use for beverage purposes.
418 (ii) "Liquor" includes:
419 (A) heavy beer;
420 (B) wine; and
421 (C) a flavored malt beverage.
422 (b) "Liquor" does not include beer.
423 [
424 32B-2-301.
425 (65) "Liquor transport license" means a license issued in accordance with Chapter 17,
426 Liquor Transport License Act.
427 [
428 (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
429 (b) to a person, other than a licensed manufacturer, who engages in the importation for
430 storage, sale, or distribution of liquor regardless of amount.
431 [
432 (a) for premises that are located in an unincorporated area of a county, the governing
433 body of a county; or
434 (b) for premises that are located in an incorporated city, town, or metro township, the
435 governing body of the city, town, or metro township.
436 [
437 [
438 ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
439 others.
440 [
441 privileges in an equity licensee or fraternal licensee.
442 [
443 center, or homeport facility for a ship:
444 (i) (A) under the control of the United States Department of Defense; or
445 (B) of the National Guard;
446 (ii) that is located within the state; and
447 (iii) including a leased facility.
448 (b) "Military installation" does not include a facility used primarily for:
449 (i) civil works;
450 (ii) a rivers and harbors project; or
451 (iii) a flood control project.
452 (72) "Minibar" means an area of a hotel guest room where one or more alcoholic
453 products are kept and offered for self-service sale or consumption.
454 [
455 [
456 (a) (i) is a state agency other than the department; or
457 (ii) is an agency of a county, city, town, or metro township; and
458 (b) has a responsibility to enforce one or more provisions of this title.
459 [
460 (a) a peace officer, examiner, or investigator; and
461 (b) employed by a nondepartment enforcement agency.
462 [
463 (i) licensed in accordance with Chapter 7, Off-Premise Beer Retailer Act; and
464 (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
465 premises.
466 (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
467 [
468 accordance with Chapter 7, Part 4, Off-Premise Beer Retailer State License.
469 [
470 Chapter 5, Retail License Act, and Chapter 6, Part 6, On-Premise Banquet License.
471 [
472 (a) authorized to sell, offer for sale, or furnish beer under a license issued in
473 accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-Premise Beer
474 Retailer License; and
475 (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
476 premises:
477 (i) regardless of whether the beer retailer sells beer for consumption off the licensed
478 premises; and
479 (ii) on and after March 1, 2012, operating:
480 (A) as a tavern; or
481 (B) in a manner that meets the requirements of Subsection 32B-6-703(2)(e)(i).
482 [
483 [
484 (a) under an agreement with the department; and
485 (b) by a person:
486 (i) other than the state; and
487 (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
488 Agency, to sell packaged liquor for consumption off the premises of the package agency.
489 [
490 [
491 offered for sale, or furnished, or who consumes an alcoholic product including:
492 (a) a customer;
493 (b) a member;
494 (c) a guest;
495 (d) an attendee of a banquet or event;
496 (e) an individual who receives room service;
497 (f) a resident of a resort;
498 (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102;
499 or
500 (h) an invitee.
501 (84) (a) "Performing arts facility" means a multi-use performance space that:
502 (i) is primarily used to present various types of performing arts, including dance,
503 music, and theater;
504 (ii) contains over 2,500 seats;
505 (iii) is owned and operated by a governmental entity; and
506 (iv) is located in a city of the first class.
507 (b) "Performing arts facility" does not include a space that is used to present sporting
508 events or sporting competitions.
509 [
510 (a) Chapter 9, Event Permit Act; or
511 (b) Chapter 10, Special Use Permit Act.
512 [
513 (a) a licensee;
514 (b) a permittee;
515 (c) a manufacturer;
516 (d) a supplier;
517 (e) an importer;
518 (f) one of the following holding a certificate of approval:
519 (i) an out-of-state brewer;
520 (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
521 (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
522 (g) staff of:
523 (i) a person listed in Subsections [
524 (ii) a package agent.
525 [
526 the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic
527 product, unless otherwise defined in this title or rules made by the commission.
528 [
529 (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
530 to prescribe a controlled substance, other drug, or device for medicinal purposes;
531 (b) the order is made in the course of that health care practitioner's professional
532 practice; and
533 (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
534 [
535 (i) for which an entire room, area, or hall is leased or rented in advance by an identified
536 group; and
537 (ii) that is limited in attendance to people who are specifically designated and their
538 guests.
539 (b) "Private event" does not include an event to which the general public is invited,
540 whether for an admission fee or not.
541 [
542 (i) an identification card;
543 (ii) an identification that:
544 (A) is substantially similar to an identification card;
545 (B) is issued in accordance with the laws of a state other than Utah in which the
546 identification is issued;
547 (C) includes date of birth; and
548 (D) has a picture affixed;
549 (iii) a valid driver license certificate that:
550 (A) includes date of birth;
551 (B) has a picture affixed; and
552 (C) is issued:
553 (I) under Title 53, Chapter 3, Uniform Driver License Act; or
554 (II) in accordance with the laws of the state in which it is issued;
555 (iv) a military identification card that:
556 (A) includes date of birth; and
557 (B) has a picture affixed; or
558 (v) a valid passport.
559 (b) "Proof of age" does not include a driving privilege card issued in accordance with
560 Section 53-3-207.
561 [
562 (i) owned or leased by:
563 (A) the state; or
564 (B) a local government entity; and
565 (ii) used for:
566 (A) public education;
567 (B) transacting public business; or
568 (C) regularly conducting government activities.
569 (b) "Public building" does not include a building owned by the state or a local
570 government entity when the building is used by a person, in whole or in part, for a proprietary
571 function.
572 [
573 public has access to and a right to use for transportation, including an airline, railroad, bus,
574 boat, or other public conveyance.
575 [
576 (a) operates facilities that are at least 5,000 square feet; and
577 (b) has as its primary purpose the leasing of the facilities described in Subsection [
578 (93)(a) to a third party for the third party's event.
579 [
580 Chapter 5, Retail License Act, and Chapter 6, Part 8, Reception Center License.
581 [
582 (i) inscribed on a tangible medium; or
583 (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
584 (b) "Record" includes:
585 (i) a book;
586 (ii) a book of account;
587 (iii) a paper;
588 (iv) a contract;
589 (v) an agreement;
590 (vi) a document; or
591 (vii) a recording in any medium.
592 [
593 [
594 Section 32B-8-102.
595 [
596 [
597 [
598 Retail License Act, and Chapter 8, Resort License Act.
599 [
600 procedures that outlines measures to prevent employees from:
601 (a) over-serving alcoholic beverages to customers;
602 (b) serving alcoholic beverages to customers who are actually, apparently, or obviously
603 intoxicated; and
604 (c) serving alcoholic beverages to minors.
605 [
606 (a) at which a variety of foods are prepared;
607 (b) at which complete meals are served; and
608 (c) that is engaged primarily in serving meals.
609 [
610 (a) a full-service restaurant license;
611 (b) a master full-service restaurant license;
612 (c) a limited-service restaurant license;
613 (d) a master limited-service restaurant license;
614 (e) a bar establishment license;
615 (f) an airport lounge license;
616 (g) an on-premise banquet license;
617 (h) an on-premise beer license;
618 (i) a reception center license;
619 (j) a beer-only restaurant license;
620 (k) a resort license; or
621 (l) a hotel license.
622 [
623 guest room of a:
624 (a) hotel; or
625 (b) resort facility.
626 [
627 minors.
628 (b) "School" does not include an educational facility.
629 [
630 whereby, for consideration, an alcoholic product is either directly or indirectly transferred,
631 solicited, ordered, delivered for value, or by a means or under a pretext is promised or
632 obtained, whether done by a person as a principal, proprietor, or as staff, unless otherwise
633 defined in this title or the rules made by the commission.
634 [
635 [
636 seminudity appears at or performs:
637 (a) for the entertainment of one or more patrons;
638 (b) on the premises of:
639 (i) a bar licensee; or
640 (ii) a tavern;
641 (c) on behalf of or at the request of the licensee described in Subsection [
642 (108)(b);
643 (d) on a contractual or voluntary basis; and
644 (e) whether or not the person is designated as:
645 (i) an employee;
646 (ii) an independent contractor;
647 (iii) an agent of the licensee; or
648 (iv) a different type of classification.
649 [
650 9, Part 3, Single Event Permit.
651 [
652 barrels of beer, heavy beer, and flavored malt beverages per year.
653 (111) "Small or unincorporated locality" means:
654 (a) a city of the third, fourth, or fifth class, as classified under Section 10-2-301;
655 (b) a town, as classified under Section 10-2-301; or
656 (c) an unincorporated area in a county of the third, fourth, or fifth class, as classified
657 under Section 17-50-501.
658 [
659 10, Special Use Permit Act.
660 [
661 (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
662 27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
663 [
664 [
665 title:
666 (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
667 holder;
668 (ii) at the request of the business, including a package agent, licensee, permittee, or
669 certificate holder; or
670 (iii) under the authority of the business, including a package agent, licensee, permittee,
671 or certificate holder.
672 (b) "Staff" includes:
673 (i) an officer;
674 (ii) a director;
675 (iii) an employee;
676 (iv) personnel management;
677 (v) an agent of the licensee, including a managing agent;
678 (vi) an operator; or
679 (vii) a representative.
680 [
681 (a) the appearance of:
682 (i) the nipple or areola of a female human breast;
683 (ii) a human genital;
684 (iii) a human pubic area; or
685 (iv) a human anus; or
686 (b) a state of dress that fails to opaquely cover:
687 (i) the nipple or areola of a female human breast;
688 (ii) a human genital;
689 (iii) a human pubic area; or
690 (iv) a human anus.
691 [
692 covers no more than:
693 (a) the nipple and areola of the female human breast in a shape and color other than the
694 natural shape and color of the nipple and areola; and
695 (b) the human genitals, pubic area, and anus:
696 (i) with no less than the following at its widest point:
697 (A) four inches coverage width in the front of the human body; and
698 (B) five inches coverage width in the back of the human body; and
699 (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
700 [
701 (i) located on premises owned or leased by the state; and
702 (ii) operated by a state employee.
703 (b) "State store" does not include:
704 (i) a package agency;
705 (ii) a licensee; or
706 (iii) a permittee.
707 [
708 stores an alcoholic product.
709 (b) "Store" means to place or maintain in a location an alcoholic product.
710 [
711 32B-8-102 or 32B-8b-102.
712 [
713 department.
714 [
715 (a) issued a license by the commission in accordance with Chapter 5, Retail License
716 Act, and Chapter 6, Part 7, On-Premise Beer Retailer License; and
717 (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
718 On-Premise Beer Retailer License.
719 [
720 Chapter 9, Part 4, Temporary Beer Event Permit.
721 [
722 a person who does not have a present intention to continue residency within Utah permanently
723 or indefinitely.
724 [
725 does not allow an object or person to be seen through the substance.
726 [
727 (a) is unsaleable because the container is:
728 (i) unlabeled;
729 (ii) leaky;
730 (iii) damaged;
731 (iv) difficult to open; or
732 (v) partly filled;
733 (b) (i) has faded labels or defective caps or corks;
734 (ii) has contents that are:
735 (A) cloudy;
736 (B) spoiled; or
737 (C) chemically determined to be impure; or
738 (iii) contains:
739 (A) sediment; or
740 (B) a foreign substance; or
741 (c) is otherwise considered by the department as unfit for sale.
742 [
743 the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or
744 not another ingredient is added.
745 (b) "Wine" includes:
746 (i) an alcoholic beverage defined as wine under 27 U.S.C. Sec. 211 and 27 C.F.R. Sec.
747 4.10; and
748 (ii) hard cider.
749 (c) "Wine" is considered liquor for purposes of this title, except as otherwise provided
750 in this title.
751 [
752 with Chapter 11, Part 3, Winery Manufacturing License.
753 Section 2. Section 32B-1-305 is amended to read:
754 32B-1-305. Requirement for a background check.
755 (1) The department shall require an individual listed in Subsection (2), in accordance
756 with this part, to:
757 (a) provide a signed waiver from the individual whose fingerprints may be registered in
758 the Federal Bureau of Investigation Rap Back system that notifies the signee:
759 (i) that a criminal history background check will be conducted;
760 (ii) who will see the information; and
761 (iii) how the information will be used;
762 (b) submit to a background check in a form acceptable to the department; and
763 (c) consent to a background check by:
764 (i) the Utah Bureau of Criminal Identification; and
765 (ii) the Federal Bureau of Investigation.
766 (2) The following shall comply with Subsection (1):
767 (a) an individual applying for employment with the department if:
768 (i) the department makes the decision to offer the individual employment with the
769 department; and
770 (ii) once employed, the individual will receive benefits;
771 (b) an individual applying to the commission to operate a package agency;
772 (c) an individual applying to the commission for a license, unless the license is an
773 off-premise beer retailer state license;
774 (d) an individual who with regard to an entity that is applying to the commission to
775 operate a package agency or for a license is:
776 (i) a partner;
777 (ii) a managing agent;
778 (iii) a manager;
779 (iv) an officer;
780 (v) a director;
781 (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of a
782 corporation;
783 (vii) a member who owns at least 20% of a limited liability company; or
784 (viii) an individual employed to act in a supervisory or managerial capacity; or
785 (e) an individual who becomes involved with an entity that operates a package agency
786 or holds a license, if the individual is in a capacity listed in Subsection (2)(d) on or after the day
787 on which the entity:
788 (i) is approved to operate a package agency; or
789 (ii) is licensed by the commission.
790 (3) (a) Except as provided in Subsection (3)(b), the commission may not require an
791 individual to comply with Subsection (1) based on the individual's position with or ownership
792 interest in an entity that has an ownership interest in the entity that is applying for the package
793 agency or license.
794 (b) The commission may require an individual described in Subsection (3)(a) to
795 comply with Subsection (1) if the individual exercises direct decision making control over the
796 day-to-day operations of the licensee.
797 [
798 of an entity's:
799 (a) continued operation of a package agency; or
800 (b) renewal of a license.
801 [
802 department employee:
803 (a) submit to a background check in a form acceptable to the department; and
804 (b) consent to a fingerprint criminal background check by:
805 (i) the Utah Bureau of Criminal Identification; and
806 (ii) the Federal Bureau of Investigation.
807 Section 3. Section 32B-1-606 is amended to read:
808 32B-1-606. Special procedure for certain malted beverages.
809 (1) A manufacturer of a malted beverage may not distribute or sell the malted beverage
810 in the state until the day on which the manufacturer receives approval of the labeling and
811 packaging from the department in accordance with :
812 (a) Sections 32B-1-604 and 32B-1-605; and
813 (b) this section, if the malted beverage is labeled or packaged in a manner that is:
814 (i) similar to a label or packaging used for a nonalcoholic beverage; or
815 (ii) likely to confuse or mislead a patron to believe the malted beverage is a
816 nonalcoholic beverage.
817 (2) The department may not approve the labeling and packaging of a malted beverage
818 described in Subsection (1) unless in addition to the requirements of Section 32B-1-604 the
819 labeling and packaging complies with the following:
820 (a) the front of the label on the malted beverage bears a prominently displayed label or
821 a firmly affixed sticker that provides the following information in a font that measures at least
822 three millimeters high:
823 (i) the statement:
824 (A) "alcoholic beverage"; or
825 (B) "contains alcohol"; and
826 (ii) subject to Subsection (3), the alcohol content of the malted beverage, if the alcohol
827 content is not otherwise provided:
828 (A) in a serving facts statement on the container; and
829 (B) in a format allowed by the Federal Alcohol and Tobacco Tax Trade Bureau;
830 (b) the packaging of the malted beverage prominently includes, either imprinted on the
831 packaging or imprinted on a sticker firmly affixed to the packaging in a font that measures at
832 least three millimeters high, the statement:
833 (i) "alcoholic beverage"; or
834 (ii) "contains alcohol";
835 (c) a statement required by Subsection (2)(a) or (b) appears in a format required by rule
836 made by the commission; and
837 (d) a statement of alcohol content required by Subsection (2)(a)(ii):
838 (i) states the alcohol content as a percentage of alcohol by volume or by weight; and
839 (ii) is in a format required by rule made by the commission.
840 (3) A label satisfies the requirement described in Subsection (2)(a)(ii) if the alcohol
841 content stated on the label is:
842 (a) 0.18% or less above or below the actual alcohol content of the malted beverage, if
843 stated by volume; or
844 (b) 0.15% or less above or below the actual alcohol content of the malted beverage, if
845 stated by weight.
846 [
847 obscure the information required by Subsection (2).
848 [
849 subject to this section, the department may consider in addition to other factors one or more of
850 the following factors:
851 (a) whether the coloring, carbonation, and packaging of the malted beverage:
852 (i) is similar to those of a nonalcoholic beverage or product; or
853 (ii) can be confused with a nonalcoholic beverage;
854 (b) whether the malted beverage possesses a character and flavor distinctive from a
855 traditional malted beverage;
856 (c) whether the malted beverage:
857 (i) is prepackaged;
858 (ii) contains high levels of caffeine and other additives; and
859 (iii) is marketed as a beverage that is specifically designed to provide energy;
860 (d) whether the malted beverage contains added sweetener or sugar substitutes; or
861 (e) whether the malted beverage contains an added fruit flavor or other flavor that
862 masks the taste of a traditional malted beverage.
863 Section 4. Section 32B-1-701, which is renumbered from Section 32B-5-402 is
864 renumbered and amended to read:
865
866 [
867 As used in this part:
868 (1) "Off-premise retail manager" means an individual who[
869 a premises that is licensed under Chapter 7, Off-Premise Beer Retailer Act[
870 [
871
872 (2) (a) "Off-premise retail staff" means an individual who sells beer at a premises that
873 is licensed under Chapter 7, Off-Premise Beer Retailer Act.
874 (b) "Off-premise retail staff" does not include an off-premise retail manager.
875 (3) "Retail manager" means an individual who:
876 (a) manages operations at a premises that is licensed under this chapter; or
877 (b) supervises the furnishing of an alcoholic product at a premises that is licensed
878 under this chapter.
879 (4) (a) "Retail staff" means an individual who serves an alcoholic product at a premises
880 licensed under this chapter.
881 (b) "Retail staff" does not include a retail manager.
882 Section 5. Section 32B-1-702, which is renumbered from Section 32B-5-403 is
883 renumbered and amended to read:
884 [
885 suspension, or nonrenewal of retail license.
886 (1) The commission may suspend, revoke, or not renew a license of a retail licensee if
887 any of the following individuals fail to complete an alcohol training and education seminar:
888 (a) a retail manager; or
889 (b) retail staff.
890 (2) A city, town, metro township, or county in which a retail licensee conducts
891 business may suspend, revoke, or not renew the business license of the retail licensee if a retail
892 manager or retail staff fails to complete an alcohol training and education seminar.
893 (3) A local authority that issues an off-premise beer retailer license to a business that is
894 engaged in the retail sale of beer for consumption off the beer retailer's premises may
895 immediately suspend the off-premise beer retailer license if any of the following individuals
896 fails to complete an alcohol training and education seminar:
897 (a) an off-premise retail manager; or
898 (b) off-premise retail staff.
899 Section 6. Section 32B-1-703, which is renumbered from Section 32B-5-404 is
900 renumbered and amended to read:
901 [
902 consumption.
903 (1) (a) A local authority that issues an off-premise beer retailer license to a business to
904 sell beer at retail for off-premise consumption shall require the following to have a valid record
905 that the individual completed an alcohol training and education seminar in the time periods
906 required by Subsection (1)(b):
907 (i) an off-premise retail manager; or
908 (ii) off-premise retail staff.
909 (b) If an individual on the date the individual becomes staff to an off-premise beer
910 retailer does not have a valid record that the individual has completed an alcohol training and
911 education seminar for purposes of this part, the individual shall complete an alcohol training
912 and education seminar within 30 days of the day on which the individual becomes staff of an
913 off-premise beer retailer.
914 (c) Section 62A-15-401 governs the validity of a record that an individual has
915 completed an alcohol training and education seminar required by this part.
916 (2) In accordance with Section [
917 immediately suspend the license of an off-premise beer retailer that allows an individual to
918 work as an off-premise retail manager without having a valid record that the individual
919 completed an alcohol training and education seminar in accordance with Subsection (1).
920 Section 7. Section 32B-1-704, which is renumbered from Section 32B-5-405 is
921 renumbered and amended to read:
922 [
923 (1) No later than January 1, 2018, the department shall develop the following training
924 programs that are provided either in-person or online:
925 (a) a training program for retail managers that addresses:
926 (i) the statutes and rules that govern alcohol sales and consumption in the state;
927 (ii) the requirements for operating as a retail licensee;
928 (iii) using compliance assistance from the department; and
929 (iv) any other topic the department determines beneficial to a retail manager; and
930 (b) a training program for an individual employed by a retail licensee or an off-premise
931 beer retailer who violates a provision of this title related to the sale, service, or furnishing of an
932 alcoholic beverage to an intoxicated individual or a minor, that addresses:
933 (i) the statutes and rules that govern the most common types of violations under this
934 title;
935 (ii) how to avoid common violations; and
936 (iii) any other topic the department determines beneficial to the training program.
937 (2) No later than January 1, 2019, the department shall develop a training program for
938 off-premise retail managers that is provided either in-person or online and addresses:
939 (a) the statutes and rules that govern sales at an off-premise beer retailer;
940 (b) the requirements for operating an off-premise beer retailer;
941 (c) using compliance assistance from the department; and
942 (d) any other topic the department determines beneficial to an off-premise retail
943 manager.
944 (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
945 the provisions of this section, the department shall make rules to develop and implement the
946 training programs described in this section, including rules that establish:
947 (a) the requirements for each training program described in this section;
948 (b) measures that accurately identify each individual who takes and completes a
949 training program;
950 (c) measures that ensure an individual taking a training program is focused and actively
951 engaged in the training material throughout the training program;
952 (d) a record that certifies that an individual has completed a training program; and
953 (e) a fee for participation in a training program to cover the department's cost of
954 providing the training program.
955 (4) (a) Except as provided in Subsection (5), each retail manager shall complete the
956 training described in Subsection (1)(a) no later than the [
957 (i) 30 days after the day on which the retail manager is hired; or
958 (ii) [
959 under this chapter.
960 (b) Except as provided in Subsection (5), each off-premise retail manager shall
961 complete the training described in Subsection (2) no later than the [
962 (i) 30 days after the day on which the off-premise retail manager is hired; or
963 (ii) [
964 off-premise beer retailer state license.
965 (c) (i) If the commission finds that a retail licensee violated a provision of this title
966 related to the sale, service, or furnishing of an alcoholic beverage to an intoxicated individual
967 or a minor for a second time within 36 consecutive months after the day on which the first
968 violation was adjudicated, the violator, all retail staff, and each retail manager shall complete
969 the training program described in Subsection (1)(b).
970 (ii) If the commission finds that an off-premise beer retailer violated a provision of this
971 title related to the sale, service, or furnishing of an alcoholic beverage to an intoxicated
972 individual or a minor for a second time within 36 consecutive months after the day on which
973 the first violation was adjudicated, the violator and each off-premise retail manager shall
974 complete the training program described in Subsection (1)(b).
975 (5) (a) For a person who holds a retail license on January 1, 2018, each retail manager
976 shall complete the training program described in Subsection (1)(a) for the first time as a
977 condition of renewing the licensee's retail license in 2018.
978 (b) For a person who holds an off-premise beer retailer state license on January 1,
979 2019, each off-premise retail manager shall complete the training program described in
980 Subsection (1)(b) for the first time as a condition of renewing the licensee's off-premise beer
981 retailer state license in 2019.
982 (6) If an individual fails to complete a required training program under this section:
983 (a) the commission may suspend, revoke, or not renew the retail license or off-premise
984 beer retailer state license;
985 (b) a city, town, metro township, or county in which the retail licensee or off-premise
986 beer retailer is located may suspend, revoke, or not renew the retail licensee's or off-premise
987 beer retailer's business license; or
988 (c) a local authority may suspend, revoke, or not renew the off-premise beer retailer's
989 license.
990 Section 8. Section 32B-1-705, which is renumbered from Section 32B-5-406 is
991 renumbered and amended to read:
992 [
993 (1) For each violation of a provision of this title involving the sale of an alcoholic
994 product to a minor that staff of a retail licensee commits, the commission shall:
995 (a) maintain a record of the violation until the record is expunged in accordance with
996 Subsection (3);
997 (b) include in the record described in Subsection (1)(a):
998 (i) the name of the individual who committed the violation;
999 (ii) the name of the retail licensee; and
1000 (iii) the date of the adjudication of the violation; and
1001 (c) provide the information described in Subsection (1)(b) to the Department of Public
1002 Safety within 30 days after the day on which the violation is adjudicated.
1003 (2) (a) The Department of Public Safety shall develop and operate a system to collect,
1004 analyze, maintain, track, and disseminate the information that the Department of Public Safety
1005 receives in accordance with Subsection (1).
1006 (b) The Department of Public Safety shall make the system described in Subsection
1007 (2)(a) available to:
1008 (i) assist the commission in assessing penalties under this title; and
1009 (ii) inform a retail licensee of an individual who has a violation history in the system.
1010 (3) The commission and the Department of Public Safety shall expunge each record in
1011 the system described in Subsection (2) that relates to an individual if the individual does not
1012 violate a provision of this title related to the sale of an alcoholic product to a minor for a period
1013 of 36 consecutive months from the day on which the individual's last violation related to the
1014 sale of an alcoholic product to a minor was adjudicated.
1015 Section 9. Section 32B-2-202 is amended to read:
1016 32B-2-202. Powers and duties of the commission.
1017 (1) The commission shall:
1018 (a) consistent with the policy established by the Legislature by statute, act as a general
1019 policymaking body on the subject of alcoholic product control;
1020 (b) adopt and issue policies, rules, and procedures;
1021 (c) set policy by written rules that establish criteria and procedures for:
1022 (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
1023 permit, or certificate of approval; and
1024 (ii) determining the location of a state store, package agency, or retail licensee;
1025 (d) decide within the limits, and under the conditions imposed by this title, the number
1026 and location of state stores, package agencies, and retail licensees in the state;
1027 (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
1028 permits, or certificates of approval for the purchase, storage, sale, offer for sale, furnishing,
1029 consumption, manufacture, and distribution of an alcoholic product:
1030 (i) a package agency;
1031 (ii) a full-service restaurant license;
1032 (iii) a master full-service restaurant license;
1033 (iv) a limited-service restaurant license;
1034 (v) a master limited-service restaurant license;
1035 (vi) a bar establishment license;
1036 (vii) an airport lounge license;
1037 (viii) an on-premise banquet license;
1038 (ix) a resort license, under which at least four or more sublicenses may be included;
1039 (x) an on-premise beer retailer license;
1040 (xi) a reception center license;
1041 (xii) a beer-only restaurant license;
1042 (xiii) a hotel license, under which at least three or more sublicenses may be included;
1043 (xiv) subject to Subsection (4), a single event permit;
1044 (xv) subject to Subsection (4), a temporary beer event permit;
1045 (xvi) a special use permit;
1046 (xvii) a manufacturing license;
1047 (xviii) a master brewery manufacturing license;
1048 [
1049 [
1050 (xxi) a liquor transport license;
1051 (xxii) an off-premise beer retailer state license;
1052 (xxiii) a master off-premise beer retailer state license; and
1053 [
1054 (A) an out-of-state brewer;
1055 (B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and
1056 (C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages;
1057 (f) issue, deny, suspend, or revoke the following conditional licenses:
1058 (i) a conditional retail license as defined in Section 32B-5-205; and
1059 (ii) a conditional off-premise beer retailer state license as defined in Section
1060 32B-7-406;
1061 (g) prescribe the duties of the department in assisting the commission in issuing a
1062 package agency, license, permit, or certificate of approval under this title;
1063 (h) to the extent a fee is not specified in this title, establish a fee allowed under this title
1064 in accordance with Section 63J-1-504;
1065 (i) fix prices at which liquor is sold that are the same at all state stores, package
1066 agencies, and retail licensees;
1067 (j) issue and distribute price lists showing the price to be paid by a purchaser for each
1068 class, variety, or brand of liquor kept for sale by the department;
1069 (k) (i) require the director to follow sound management principles; and
1070 (ii) require periodic reporting from the director to ensure that:
1071 (A) sound management principles are being followed; and
1072 (B) policies established by the commission are being observed;
1073 (l) (i) receive, consider, and act in a timely manner upon the reports, recommendations,
1074 and matters submitted by the director to the commission; and
1075 (ii) do the things necessary to support the department in properly performing the
1076 department's duties;
1077 (m) obtain temporarily and for special purposes the services of an expert or person
1078 engaged in the practice of a profession, or a person who possesses a needed skill if:
1079 (i) considered expedient; and
1080 (ii) approved by the governor;
1081 (n) prescribe by rule the conduct, management, and equipment of premises upon which
1082 an alcoholic product may be stored, sold, offered for sale, furnished, or consumed;
1083 (o) make rules governing the credit terms of beer sales within the state to retail
1084 licensees; and
1085 (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
1086 disciplinary action against a person subject to administrative action.
1087 (2) Consistent with the policy established by the Legislature by statute, the power of
1088 the commission to do the following is plenary, except as otherwise provided by this title, and
1089 not subject to review:
1090 (a) establish a state store;
1091 (b) issue authority to act as a package agent or operate a package agency; and
1092 (c) issue or deny a license, permit, or certificate of approval.
1093 (3) If the commission is authorized or required to make a rule under this title, the
1094 commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
1095 Rulemaking Act.
1096 (4) Notwithstanding Subsections (1)(e)(xiv) and (xv), the director or deputy director
1097 may issue an event permit in accordance with Chapter 9, Event Permit Act.
1098 Section 10. Section 32B-2-204 is amended to read:
1099 32B-2-204. Powers and duties of the department -- Immunity.
1100 (1) The department shall control liquor merchandise inventory including:
1101 (a) listing and delisting a product;
1102 (b) the procedures for testing a new product;
1103 (c) purchasing policy;
1104 (d) turnover requirements for a regularly coded product to be continued; and
1105 (e) the disposition of discontinued, distressed, or unsaleable merchandise.
1106 (2) (a) The department shall report to the governor on the administration of this title:
1107 (i) as the governor may require; and
1108 (ii) annually by no later than November 30, for the fiscal year ending June 30 of the
1109 year in which the report is made.
1110 (b) A report under this Subsection (2) shall contain:
1111 (i) a statement of the nature and amount of the business transacted by the department
1112 during the year;
1113 (ii) a statement of the department's assets and liabilities including a profit and loss
1114 account, and other accounts and matters necessary to show the results of operations of the
1115 department for the year;
1116 (iii) general information on the application of this title in the state; and
1117 (iv) any other information requested by the governor.
1118 (c) The department shall submit a copy of a report described in this Subsection (2) to
1119 the Legislature.
1120 (3) The department shall maintain insurance against loss on each motor vehicle
1121 operated by it on any public highway. A motor vehicle shall be covered for:
1122 (a) liability imposed by law upon the department for damages from bodily injuries
1123 suffered by one or more persons by reason of the ownership, maintenance, or use of the motor
1124 vehicle; and
1125 (b) liability or loss from damage to or destruction of property of any description,
1126 including liability of the department for the resultant loss of use of the property, which results
1127 from accident due to the ownership, maintenance, or use of the motor vehicle.
1128 (4) (a) The department may sue, be sued, and defend in a proceeding, in a court of law
1129 or otherwise, in the name of the department.
1130 (b) An action may not be taken:
1131 (i) against the commission; or
1132 (ii) in the name of a commissioner.
1133 (5) The department is liable to respond in damages in a case if a private corporation
1134 under the same circumstances would be liable.
1135 (6) (a) Title 63G, Chapter 7, Governmental Immunity Act of Utah, applies in an action
1136 commenced against the department for damages sustained as a result of department ownership,
1137 maintenance, or use of a motor vehicle under Subsections (4) and (5).
1138 (b) In an action described in Subsection (6)(a), the commission and each commissioner
1139 are immune from suit.
1140 (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1141 department may make rules related to measuring the alcohol content of beer.
1142 Section 11. Section 32B-2-304 is amended to read:
1143 32B-2-304. Liquor price -- School lunch program -- Remittance of markup.
1144 (1) For purposes of this section:
1145 (a) (i) "Landed case cost" means:
1146 (A) the cost of the product; and
1147 (B) inbound shipping costs incurred by the department.
1148 (ii) "Landed case cost" does not include the outbound shipping cost from a warehouse
1149 of the department to a state store.
1150 (b) "Proof gallon" means the same as that term is defined in 26 U.S.C. Sec. 5002.
1151 (c) Notwithstanding Section 32B-1-102, "small brewer" means a brewer who
1152 manufactures in a calendar year less than 40,000 barrels of beer, heavy beer, and flavored malt
1153 beverage.
1154 (2) Except as provided in Subsection (3):
1155 (a) spirituous liquor sold by the department within the state shall be marked up in an
1156 amount not less than 88% above the landed case cost to the department;
1157 (b) wine sold by the department within the state shall be marked up in an amount not
1158 less than 88% above the landed case cost to the department;
1159 (c) heavy beer sold by the department within the state shall be marked up in an amount
1160 not less than 66.5% above the landed case cost to the department; and
1161 (d) a flavored malt beverage sold by the department within the state shall be marked up
1162 in an amount not less than 88% above the landed case cost to the department.
1163 (3) (a) Liquor sold by the department to a military installation in Utah shall be marked
1164 up in an amount not less than 17% above the landed case cost to the department.
1165 (b) Except for spirituous liquor sold by the department to a military installation in
1166 Utah, spirituous liquor that is sold by the department within the state shall be marked up 49%
1167 above the landed case cost to the department if:
1168 (i) the spirituous liquor is manufactured by a manufacturer producing less than 30,000
1169 proof gallons of spirituous liquor in a calendar year; and
1170 (ii) the manufacturer applies to the department for a reduced markup.
1171 (c) Except for wine sold by the department to a military installation in Utah, wine that
1172 is sold by the department within the state shall be marked up 49% above the landed case cost to
1173 the department if:
1174 (i) (A) except as provided in Subsection (3)(c)(i)(B), the wine is manufactured by a
1175 manufacturer producing less than 20,000 gallons of wine in a calendar year; or
1176 (B) for hard cider, the hard cider is manufactured by a manufacturer producing less
1177 than 620,000 gallons of hard cider in a calendar year; and
1178 (ii) the manufacturer applies to the department for a reduced markup.
1179 (d) Except for heavy beer sold by the department to a military installation in Utah,
1180 heavy beer that is sold by the department within the state shall be marked up 32% above the
1181 landed case cost to the department if:
1182 (i) a small brewer manufactures the heavy beer; and
1183 (ii) the small brewer applies to the department for a reduced markup.
1184 (e) The department shall verify an amount described in Subsection (3)(b), (c), or (d)
1185 pursuant to a federal or other verifiable production report.
1186 (f) For purposes of determining whether an alcoholic product qualifies for a markup
1187 under this Subsection (3), the department shall evaluate whether the manufacturer satisfies the
1188 applicable production requirement without considering the manufacturer's production of any
1189 other type of alcoholic product.
1190 (4) The department shall deposit 10% of the total gross revenue from sales of liquor
1191 with the state treasurer to be credited to the Uniform School Fund and used to support the
1192 school lunch program administered by the State Board of Education under Section 53E-3-510.
1193 (5) This section does not prohibit the department from selling discontinued items at a
1194 discount.
1195 Section 12. Section 32B-2-605 is amended to read:
1196 32B-2-605. Operational requirements for package agency.
1197 (1) (a) A person may not operate a package agency until a package agency agreement is
1198 entered into by the package agent and the department.
1199 (b) A package agency agreement shall state the conditions of operation by which the
1200 package agent and the department are bound.
1201 (c) (i) If a package agent or staff of the package agent violates this title, rules under this
1202 title, or the package agency agreement, the department may take any action against the package
1203 agent that is allowed by the package agency agreement.
1204 (ii) An action against a package agent is governed solely by its package agency
1205 agreement and may include suspension or revocation of the package agency.
1206 (iii) A package agency agreement shall provide procedures to be followed if a package
1207 agent fails to pay money owed to the department including a procedure for replacing the
1208 package agent or operator of the package agency.
1209 (iv) A package agency agreement shall provide that the package agency is subject to
1210 covert investigations for selling an alcoholic product to a minor.
1211 (v) Notwithstanding that this part refers to "package agency" or "package agent," staff
1212 of the package agency or package agent is subject to the same requirement or prohibition.
1213 (2) (a) A package agency shall be operated by an individual who is either:
1214 (i) the package agent; or
1215 (ii) an individual designated by the package agent.
1216 (b) An individual who is a designee under this Subsection (2) shall be:
1217 (i) an employee of the package agent; and
1218 (ii) responsible for the operation of the package agency.
1219 (c) The conduct of the designee is attributable to the package agent.
1220 (d) A package agent shall submit the name of the person operating the package agency
1221 to the department for the department's approval.
1222 (e) A package agent shall state the name and title of a designee on the application for a
1223 package agency.
1224 (f) A package agent shall:
1225 (i) inform the department of a proposed change in the individual designated to operate
1226 a package agency; and
1227 (ii) receive prior approval from the department before implementing the change
1228 described in this Subsection (2)(f).
1229 (g) Failure to comply with the requirements of this Subsection (2) may result in the
1230 immediate termination of a package agency agreement.
1231 (3) (a) A package agent shall display in a prominent place in the package agency the
1232 record issued by the commission that designates the package agency.
1233 (b) A package agent that displays or stores liquor at a location visible to the public
1234 shall display in a prominent place in the package agency a sign in large letters that consists of
1235 text in the following order:
1236 (i) a header that reads: "WARNING";
1237 (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
1238 can cause birth defects and permanent brain damage for the child.";
1239 (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
1240 [insert most current toll-free number] with questions or for more information.";
1241 (iv) a header that reads: "WARNING"; and
1242 (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
1243 serious crime that is prosecuted aggressively in Utah."
1244 (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
1245 font style than the text described in Subsections (3)(b)(iv) and (v).
1246 (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
1247 same font size.
1248 (d) The Department of Health shall work with the commission and department to
1249 facilitate consistency in the format of a sign required under this section.
1250 (4) A package agency may not display liquor or a price list in a window or showcase
1251 that is visible to passersby.
1252 (5) (a) A package agency may not purchase liquor from a person except from the
1253 department.
1254 (b) At the discretion of the department, liquor may be provided by the department to a
1255 package agency for sale on consignment.
1256 (6) A package agency may not store, sell, offer for sale, or furnish liquor in a place
1257 other than as designated in the package agent's application, unless the package agent first
1258 applies for and receives approval from the department for a change of location within the
1259 package agency premises.
1260 (7) A package agency may not sell, offer for sale, or furnish liquor except at a price
1261 fixed by the commission.
1262 (8) A package agency may not sell, offer for sale, or furnish liquor to:
1263 (a) a minor;
1264 (b) a person actually, apparently, or obviously intoxicated;
1265 (c) a known interdicted person; or
1266 (d) a known habitual drunkard.
1267 (9) (a) A package agency may not employ a minor to handle liquor.
1268 (b) (i) Staff of a package agency may not:
1269 (A) consume an alcoholic product on the premises of a package agency; or
1270 (B) allow any person to consume an alcoholic product on the premises of a package
1271 agency.
1272 (ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
1273 (10) (a) A package agency may not close or cease operation for a period longer than 72
1274 hours, unless:
1275 (i) the package agency notifies the department in writing at least seven days before the
1276 closing; and
1277 (ii) the closure or cessation of operation is first approved by the department.
1278 (b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package
1279 agency shall immediately notify the department by telephone.
1280 (c) (i) The department may authorize a closure or cessation of operation for a period
1281 not to exceed 60 days.
1282 (ii) The department may extend the initial period an additional 30 days upon written
1283 request of the package agency and upon a showing of good cause.
1284 (iii) A closure or cessation of operation may not exceed a total of 90 days without
1285 commission approval.
1286 (d) The notice required by Subsection (10)(a) shall include:
1287 (i) the dates of closure or cessation of operation;
1288 (ii) the reason for the closure or cessation of operation; and
1289 (iii) the date on which the package agency will reopen or resume operation.
1290 (e) Failure of a package agency to provide notice and to obtain department
1291 authorization before closure or cessation of operation results in an automatic termination of the
1292 package agency agreement effective immediately.
1293 (f) Failure of a package agency to reopen or resume operation by the approved date
1294 results in an automatic termination of the package agency agreement effective on that date.
1295 (11) A package agency may not transfer its operations from one location to another
1296 location without prior written approval of the commission.
1297 (12) (a) A person, having been issued a package agency, may not sell, transfer, assign,
1298 exchange, barter, give, or attempt in any way to dispose of the package agency to another
1299 person, whether for monetary gain or not.
1300 (b) A package agency has no monetary value for any type of disposition.
1301 (13) (a) Subject to the other provisions of this Subsection (13):
1302 (i) sale or delivery of liquor may not be made on or from the premises of a package
1303 agency, and a package agency may not be kept open for the sale of liquor:
1304 (A) on Sunday; or
1305 (B) on a state or federal legal holiday.
1306 (ii) Sale or delivery of liquor may be made on or from the premises of a package
1307 agency, and a package agency may be open for the sale of liquor, only on a day and during
1308 hours that the commission directs by rule or order.
1309 (b) A package agency located at a manufacturing facility is not subject to Subsection
1310 (13)(a) if:
1311 (i) the package agency is located at a manufacturing facility licensed in accordance
1312 with Chapter 11, Manufacturing and Related Licenses Act;
1313 (ii) the manufacturing facility licensed in accordance with Chapter 11, Manufacturing
1314 and Related Licenses Act, holds:
1315 (A) a full-service restaurant license;
1316 (B) a limited-service restaurant license;
1317 (C) a beer-only restaurant license;
1318 (D) a dining club license; or
1319 (E) a bar license;
1320 (iii) the restaurant, dining club, or bar is located at the manufacturing facility;
1321 (iv) the restaurant, dining club, or bar sells an alcoholic product produced at the
1322 manufacturing facility;
1323 (v) the manufacturing facility:
1324 (A) owns the restaurant, dining club, or bar; or
1325 (B) operates the restaurant, dining club, or bar;
1326 (vi) the package agency only sells an alcoholic product produced at the manufacturing
1327 facility; and
1328 (vii) the package agency's days and hours of sale are the same as the days and hours of
1329 sale at the restaurant, dining club, or bar.
1330 (c) (i) Subsection (13)(a) does not apply to a package agency held by the following if
1331 the package agent that holds the package agency to sell liquor at a resort or hotel does not sell
1332 liquor in a manner similar to a state store:
1333 (A) a resort licensee; or
1334 (B) a hotel licensee.
1335 (ii) The commission may by rule define what constitutes a package agency that sells
1336 liquor "in a manner similar to a state store."
1337 (14) (a) Except to the extent authorized by commission rule, a minor may not be
1338 admitted into, or be on the premises of, a package agency unless accompanied by a person who
1339 is:
1340 (i) 21 years of age or older; and
1341 (ii) the minor's parent, legal guardian, or spouse.
1342 (b) A package agent or staff of a package agency that has reason to believe that a
1343 person who is on the premises of a package agency is under the age of 21 and is not
1344 accompanied by a person described in Subsection (14)(a) may:
1345 (i) ask the suspected minor for proof of age;
1346 (ii) ask the person who accompanies the suspected minor for proof of age; and
1347 (iii) ask the suspected minor or the person who accompanies the suspected minor for
1348 proof of parental, guardianship, or spousal relationship.
1349 (c) A package agent or staff of a package agency shall refuse to sell liquor to the
1350 suspected minor and to the person who accompanies the suspected minor into the package
1351 agency if the minor or person fails to provide any information specified in Subsection (14)(b).
1352 (d) A package agent or staff of a package agency shall require the suspected minor and
1353 the person who accompanies the suspected minor into the package agency to immediately leave
1354 the premises of the package agency if the minor or person fails to provide information specified
1355 in Subsection (14)(b).
1356 (15) (a) A package agency shall sell, offer for sale, or furnish liquor in a sealed
1357 container.
1358 (b) A person may not open a sealed container on the premises of a package agency.
1359 (c) Notwithstanding Subsection (15)(a), a package agency may sell, offer for sale, or
1360 furnish liquor in other than a sealed container:
1361 (i) if the package agency is the type of package agency that authorizes the package
1362 agency to sell, offer for sale, or furnish the liquor as part of room service;
1363 (ii) if the liquor is sold, offered for sale, or furnished as part of room service; and
1364 (iii) subject to:
1365 (A) staff of the package agency providing the liquor in person only to an adult guest in
1366 the guest room;
1367 (B) staff of the package agency not leaving the liquor outside a guest room for retrieval
1368 by a guest; and
1369 (C) the same limits on the portions in which an alcoholic product may be sold by a
1370 retail licensee under Section 32B-5-304.
1371 (16) On or after October 1, 2011, a package agency may not sell, offer for sale, or
1372 furnish heavy beer in a sealed container that exceeds two liters.
1373 (17) The department may pay or otherwise remunerate a package agent on any basis,
1374 including sales or volume of business done by the package agency.
1375 (18) The commission may prescribe by policy or rule general operational requirements
1376 of a package agency that are consistent with this title and relate to:
1377 (a) physical facilities;
1378 (b) conditions of operation;
1379 (c) hours of operation;
1380 (d) inventory levels;
1381 (e) payment schedules;
1382 (f) methods of payment;
1383 (g) premises security; and
1384 (h) any other matter considered appropriate by the commission.
1385 (19) A package agency may not maintain a minibar.
1386 Section 13. Section 32B-5-102 is amended to read:
1387 32B-5-102. Definitions.
1388 [
1389 As used in this chapter:
1390 (1) "Interim alcoholic beverage management agreement" means an agreement:
1391 (a) in connection with:
1392 (i) the transfer of a retail license; and
1393 (ii) (A) an asset sale of a retail licensee; or
1394 (B) a transfer of the management of a retail licensee to a new entity; and
1395 (b) under which the purchaser or the new management entity agrees to perform the
1396 operations of the retail licensee during the period that:
1397 (i) begins when:
1398 (A) the asset sale closes; or
1399 (B) the new management agreement is executed; and
1400 (ii) ends on the day after the day on which the commission approves the transfer of the
1401 retail license.
1402 (2) "Inventory transfer agreement" means an agreement under which a retail licensee
1403 agrees to sell or otherwise transfer all or part of the retail licensee's inventory of alcoholic
1404 product.
1405 Section 14. Section 32B-5-207 is amended to read:
1406 32B-5-207. Multiple retail licenses on same premises.
1407 (1) As used in this section, "sublicense premises" means the same as that term is
1408 defined in Sections 32B-8-102 and 32B-8b-102.
1409 (2) (a) The commission may not issue and one or more licensees may not hold more
1410 than one type of retail license for the same premises.
1411 (b) Notwithstanding Subsection (2)(a), the commission may issue and one or more
1412 licensees may hold more than one type of retail license for the same premises if:
1413 (i) the applicant or licensee satisfies the requirements for each retail license;
1414 (ii) the types of retail licenses issued or held are two or more of the following:
1415 (A) a restaurant license;
1416 (B) an on-premise beer retailer license that is not a tavern; and
1417 (C) an on-premise banquet license or a reception center license; and
1418 (iii) the retail licenses do not operate at the same time on the same day.
1419 (3) When one or more licensees hold more than one type of retail license for the same
1420 premises under Subsection (2)(b), the one or more licensees shall post in a conspicuous
1421 location at the entrance of the room a sign that:
1422 (a) measures 8-1/2 inches by 11 inches; and
1423 (b) states whether the premises is currently operating as:
1424 (i) a restaurant;
1425 (ii) an on-premise beer retailer that is not a tavern; or
1426 (iii) a banquet or a reception center.
1427 (4) (a) The commission may not issue and one or more licensees may not hold a bar
1428 license or a tavern license in the same room as a restaurant license.
1429 (b) For purposes of Subsection (4)(a), two licenses are not considered in the same room
1430 if:
1431 (i) each shared permanent wall between the premises licensed as a bar or a tavern and
1432 the premises licensed as a restaurant measures at least eight feet high;
1433 (ii) the premises for each license has a separate entryway that does not require a patron
1434 to pass through the premises licensed as a bar or a tavern to access the premises licensed as a
1435 restaurant; and
1436 (iii) if a patron must pass through the premises licensed as a restaurant to access the
1437 entryway to the premises licensed as a bar or a tavern, a patron on the premises licensed as a
1438 restaurant cannot see a dispensing structure on the premises licensed as a bar or a tavern.
1439 (5) (a) If, on May 9, 2017, one or more licensees hold more than one type of retail
1440 license in violation of Subsection (2) or (4), the one or more licensees may operate under the
1441 different types of retail licenses through June 30, 2018.
1442 (b) A licensee may not operate in violation of Subsection (2) or (4) on or after July 1,
1443 2018.
1444 (c) Before July 1, 2018, each licensee described in Subsection (5)(a) shall notify the
1445 commission of each retail license that the licensee will surrender effective July 1, 2018, to
1446 comply with the provisions of Subsection (2) or (4).
1447 [
1448
1449
1450 (6) (a) The commission may issue more than one type of sublicense to a resort licensed
1451 under Chapter 8, Resort License Act, or a hotel licensed under Chapter 8b, Hotel License Act,
1452 for the same room if the sublicense premises are clearly delineated by one or more permanent
1453 physical structures, such as a wall or other architectural feature, that separate the sublicense
1454 premises.
1455 (b) A patron may not transport an alcoholic beverage between two sublicense premises
1456 located in the same room in accordance with Subsection (6)(a).
1457 (c) Notwithstanding any provision to the contrary, a minor may momentarily pass
1458 through a sublicense premises that is a bar to reach another location where a minor may
1459 lawfully be, if there is no practical alternative route to the location.
1460 Section 15. Section 32B-5-301 is amended to read:
1461 32B-5-301. General operational requirements.
1462 (1) (a) A retail licensee and staff of a retail licensee shall comply with this title and the
1463 rules of the commission, including the relevant part under Chapter 6, Specific Retail License
1464 Act, for the specific type of retail license.
1465 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
1466 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
1467 (i) a retail licensee;
1468 (ii) individual staff of a retail licensee; or
1469 (iii) both a retail licensee and staff of the retail licensee.
1470 (2) (a) If there is a conflict between this part and the relevant part under Chapter 6,
1471 Specific Retail License Act, for the specific type of retail license, the relevant part under
1472 Chapter 6 governs.
1473 (b) Notwithstanding that this part refers to "liquor" or an "alcoholic product," a retail
1474 licensee may only sell, offer for sale, furnish, or allow the consumption of an alcoholic product
1475 specifically authorized by the relevant part under Chapter 6, Specific Retail License Act.
1476 (c) Notwithstanding that this part or the relevant part under Chapter 6, Specific Retail
1477 License Act, refers to "retail licensee," staff of the retail licensee is subject to the same
1478 requirement or prohibition.
1479 (3) (a) A retail licensee shall display in a prominent place in the licensed premises the
1480 retail license that is issued by the department.
1481 (b) A retail licensee shall display in a prominent place a sign in large letters that
1482 consists of text in the following order:
1483 (i) a header that reads: "WARNING";
1484 (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
1485 can cause birth defects and permanent brain damage for the child.";
1486 (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
1487 [insert most current toll-free number] with questions or for more information.";
1488 (iv) a header that reads: "WARNING"; and
1489 (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
1490 serious crime that is prosecuted aggressively in Utah."
1491 (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
1492 font style than the text described in Subsections (3)(b)(iv) and (v).
1493 (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
1494 same font size.
1495 (d) The Department of Health shall work with the commission and department to
1496 facilitate consistency in the format of a sign required under this section.
1497 (4) A retail licensee may not on the licensed premises:
1498 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
1499 Chapter 10, Part 11, Gambling;
1500 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
1501 Part 11, Gambling; or
1502 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
1503 the risking of something of value for a return or for an outcome when the return or outcome is
1504 based upon an element of chance, excluding the playing of an amusement device that confers
1505 only an immediate and unrecorded right of replay not exchangeable for value.
1506 (5) A retail licensee may not knowingly allow a person on the licensed premises to, in
1507 violation of Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
1508 Paraphernalia Act:
1509 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
1510 58-37-2; or
1511 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
1512 Section 58-37a-3.
1513 (6) Upon the presentation of credentials, at any time during which a retail licensee is
1514 open for the transaction of business, the retail licensee shall immediately:
1515 (a) admit a commissioner, authorized department employee, or law enforcement officer
1516 to the retail licensee's premises; and
1517 (b) permit, without hindrance or delay, the person described in Subsection (6)(a) to
1518 inspect completely:
1519 (i) the entire premises of the retail licensee; and
1520 (ii) the records of the retail licensee.
1521 (7) An individual may not consume an alcoholic product on the licensed premises of a
1522 retail licensee on any day during the period:
1523 (a) beginning one hour after the time of day that the period during which a retail
1524 licensee may not sell, offer for sale, or furnish an alcoholic product on the licensed premises
1525 begins; and
1526 (b) ending at the time specified in the relevant part under Chapter 6, Specific Retail
1527 License Act, for the type of retail license when the retail licensee may first sell, offer for sale,
1528 or furnish an alcoholic product on the licensed premises on that day.
1529 (8) (a) An employee of a retail licensee who sells, offers for sale, or furnishes an
1530 alcoholic product to a patron shall wear an identification badge.
1531 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1532 commission shall make rules related to the requirement described in Subsection (8)(a).
1533 Section 16. Section 32B-5-303 is amended to read:
1534 32B-5-303. Purchase and storage of an alcoholic product by a retail licensee.
1535 (1) (a) A retail licensee may not purchase liquor except from a state store or package
1536 agency.
1537 (b) A retail licensee may transport liquor purchased from a state store or package
1538 agency from the place of purchase to the licensed premises.
1539 (c) A retail licensee shall pay for liquor in accordance with rules established by the
1540 commission.
1541 (2) (a) (i) A retail licensee may not purchase, acquire, possess for the purpose of resale,
1542 or sell beer except beer that the retail licensee purchases from:
1543 (A) a beer wholesaler licensee; or
1544 (B) a small brewer that manufactures the beer.
1545 (ii) Violation of this Subsection (2)(a) is a class A misdemeanor.
1546 (b) (i) If a retail licensee purchases beer under Subsection (2)(a) from a beer wholesaler
1547 licensee, the retail licensee shall purchase beer only from a beer wholesaler licensee who is
1548 designated by the manufacturer to sell beer in the geographical area in which the retail licensee
1549 is located, unless an alternate wholesaler is authorized by the department to sell to the retail
1550 licensee as provided in Section 32B-13-301.
1551 (ii) Violation of Subsection (2)(b) is a class B misdemeanor.
1552 (3) A retail licensee may not store, sell, offer for sale, or furnish an alcoholic product in
1553 a place other than as designated in the retail licensee's application, unless the retail licensee
1554 first applies for and receives approval from the department for a change of location within the
1555 licensed premises.
1556 (4) A liquor storage area shall remain locked at all times [
1557
1558 (a) liquor sales are authorized by law[
1559 (b) the licensee:
1560 (i) inventories or restocks the alcoholic product in the liquor storage area; or
1561 (ii) repairs or cleans the liquor storage area.
1562 Section 17. Section 32B-5-304 is amended to read:
1563 32B-5-304. Portions in which alcoholic product may be sold.
1564 (1) A retail licensee may sell, offer for sale, or furnish a primary spirituous liquor only
1565 in a quantity that does not exceed 1.5 ounces per beverage dispensed through a calibrated
1566 metered dispensing system approved by the department in accordance with commission rules
1567 adopted under this title, except that:
1568 (a) spirituous liquor need not be dispensed through a calibrated metered dispensing
1569 system if used as a secondary flavoring ingredient in a beverage subject to the following
1570 requirements:
1571 (i) the secondary ingredient may be dispensed only in conjunction with the purchase of
1572 a primary spirituous liquor;
1573 (ii) the secondary ingredient may not be the only spirituous liquor in the beverage;
1574 (iii) the retail licensee shall designate a location where flavorings are stored on the
1575 floor plan submitted to the department; and
1576 (iv) a flavoring container shall be plainly and conspicuously labeled "flavorings";
1577 (b) spirituous liquor need not be dispensed through a calibrated metered dispensing
1578 system if used:
1579 (i) as a flavoring on a dessert; and
1580 (ii) in the preparation of a flaming food dish, drink, or dessert; and
1581 (c) a patron may have no more than 2.5 ounces of spirituous liquor at a time.
1582 (2) (a) (i) A retail licensee may sell, offer for sale, or furnish wine by the glass or in an
1583 individual portion that does not exceed 5 ounces per glass or individual portion.
1584 (ii) A retail licensee may sell, offer for sale, or furnish an individual portion of wine to
1585 a patron in more than one glass if the total amount of wine does not exceed 5 ounces.
1586 (b) (i) A retail licensee may sell, offer for sale, or furnish wine in a container not
1587 exceeding 1.5 liters at a price fixed by the commission to a table of four or more persons.
1588 (ii) A retail licensee may sell, offer for sale, or furnish wine in a container not to
1589 exceed 750 milliliters at a price fixed by the commission to a table of less than four persons.
1590 (3) A retail licensee may sell, offer for sale, or furnish heavy beer in an original
1591 container at a price fixed by the commission, except that the original container may not exceed
1592 one liter.
1593 (4) A retail licensee may sell, offer for sale, or furnish a flavored malt beverage in an
1594 original container at a price fixed by the commission, except that the original container may not
1595 exceed one liter.
1596 (5) (a) Subject to Subsection (5)(b), a retail licensee may sell, offer for sale, or furnish
1597 beer for on-premise consumption:
1598 (i) in an open original container; and
1599 (ii) in a container on draft.
1600 (b) A retail licensee may not sell, offer for sale, or furnish beer under Subsection (5)(a):
1601 (i) in a size of container that exceeds two liters; or
1602 (ii) to an individual patron in a size of container that exceeds one liter.
1603 (c) A retail licensee may sell, offer for sale, or furnish a flight of beer to an individual
1604 patron if the total amount of beer does not exceed 16 ounces.
1605 Section 18. Section 32B-5-306 is amended to read:
1606 32B-5-306. Purchasing or selling alcoholic product.
1607 (1) A retail licensee may not sell, offer for sale, or furnish an alcoholic product to:
1608 (a) a minor;
1609 (b) a person actually, apparently, or obviously intoxicated;
1610 (c) a known interdicted person; or
1611 (d) a known habitual drunkard.
1612 (2) (a) A patron may only purchase an alcoholic product in the licensed premises of a
1613 retail licensee from and be served by an individual who is:
1614 (i) staff of the retail licensee; and
1615 (ii) designated and trained by the retail licensee to sell and serve an alcoholic product.
1616 (b) An individual may sell, offer for sale, or furnish an alcoholic product to a patron
1617 only if the individual is:
1618 (i) staff of the retail licensee; and
1619 (ii) designated and trained by the retail licensee to sell and serve an alcoholic product.
1620 (c) Notwithstanding Subsection (2)(a) or (b), a patron who purchases bottled wine from
1621 staff of the retail licensee or carries bottled wine onto the retail licensee's premises pursuant to
1622 Section 32B-5-307 may thereafter serve wine from the bottle to the patron or others at the
1623 patron's table.
1624 (3) The following may not purchase an alcoholic product for a patron:
1625 (a) a retail licensee; or
1626 (b) staff of a retail licensee.
1627 (4) After a retail licensee closes the retail licensee's business at the licensed premises,
1628 the retail licensee may transfer the retail licensee's inventory of alcoholic product from that
1629 premises to another premises licensed under this chapter that is owned by the same retail
1630 licensee.
1631 Section 19. Section 32B-5-308 is amended to read:
1632 32B-5-308. Requirements on staff or others on premises -- Employing a minor.
1633 (1) Staff of a retail licensee, while on duty, may not:
1634 (a) consume an alcoholic product; or
1635 (b) be intoxicated.
1636 (2) (a) A retail licensee may not employ a minor to sell, offer for sale, furnish, or
1637 dispense an alcoholic product.
1638 (b) Notwithstanding Subsection (2)(a), unless otherwise prohibited in the provisions
1639 related to the specific type of retail license, a retail licensee may employ a minor who is at least
1640 16 years of age to enter the sale at a cash register or other sales recording device.
1641 (3) A full-service restaurant licensee, limited-service restaurant licensee, or beer-only
1642 restaurant licensee may employ a minor who is at least [
1643 including containers that contain an alcoholic product.
1644 Section 20. Section 32B-5-310 is amended to read:
1645 32B-5-310. Notifying department of change in ownership -- Inventory transfers --
1646 Interim alcoholic beverage management agreements.
1647 (1) The commission may suspend or revoke a retail license if the retail licensee does
1648 not immediately notify the department of a change in:
1649 [
1650 (b) the entity that manages the retail licensee or a premises licensed under this chapter;
1651 [
1652 [
1653 [
1654 the corporation; or
1655 [
1656 [
1657 [
1658 (2) Notwithstanding any other provision of this title, in connection with an event
1659 described in Section 32B-8a-202 or an asset sale of a retail licensee, the parties to the
1660 transaction may enter into an inventory transfer agreement.
1661 (3) A retail licensee may enter into an interim alcoholic beverage management
1662 agreement that provides:
1663 (a) all proceeds, less cost of goods sold, from the sale of alcohol shall accrue to the
1664 current retail licensee; and
1665 (b) for the duration of the agreement, the current retail licensee:
1666 (i) shall comply with the requirements of this title that are applicable to the retail
1667 license; and
1668 (ii) in accordance with this title, is subject to disciplinary action by the commission for
1669 any violation of this title.
1670 (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1671 department may make rules governing the requirements of:
1672 (a) an inventory transfer agreement; and
1673 (b) an interim alcoholic beverage management agreement.
1674 Section 21. Section 32B-6-203 is amended to read:
1675 32B-6-203. Commission's power to issue full-service restaurant license.
1676 (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
1677 an alcoholic product on its premises as a full-service restaurant, the person shall first obtain a
1678 full-service restaurant license from the commission in accordance with this part.
1679 (2) The commission may issue a full-service restaurant license to establish full-service
1680 restaurant licensed premises at places and in numbers the commission considers proper for the
1681 storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises
1682 operated as a full-service restaurant.
1683 (3) Subject to Section 32B-1-201:
1684 (a) The commission may not issue a total number of full-service restaurant licenses that
1685 at any time exceeds the number determined by dividing the population of the state by 4,467.
1686 (b) The commission may issue a seasonal full-service restaurant license in accordance
1687 with Section 32B-5-206.
1688 (c) (i) If the location, design, and construction of a hotel may require more than one
1689 full-service restaurant sales location within the hotel to serve the public convenience, the
1690 commission may authorize the sale, offer for sale, or furnishing of an alcoholic product at as
1691 many as three full-service restaurant locations within the hotel under one full-service restaurant
1692 license if:
1693 (A) the hotel has a minimum of 150 guest rooms; and
1694 (B) the locations under the full-service restaurant license are:
1695 (I) within the same hotel; and
1696 (II) on premises that are managed or operated, and owned or leased, by the full-service
1697 restaurant licensee.
1698 (ii) A facility other than a hotel shall have a separate full-service restaurant license for
1699 each full-service restaurant where an alcoholic product is sold, offered for sale, or furnished.
1700 (4) Except as otherwise provided in Section 32B-1-202, the commission may not issue
1701 a full-service restaurant license for premises that do not meet the proximity requirements of
1702 Subsection 32B-1-202(2).
1703 (5) To be licensed as a full-service restaurant, a person shall maintain at least 70% of
1704 the restaurant's gross revenues from the sale of food, which does not include:
1705 (a) mix for an alcoholic product; or
1706 (b) a service charge.
1707 Section 22. Section 32B-6-205 is amended to read:
1708 32B-6-205. Specific operational requirements for a full-service restaurant license
1709 -- Before July 1, 2018, or July 1, 2022.
1710 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
1711 Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
1712 shall comply with this section.
1713 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
1714 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
1715 (i) a full-service restaurant licensee;
1716 (ii) individual staff of a full-service restaurant licensee; or
1717 (iii) both a full-service restaurant licensee and staff of the full-service restaurant
1718 licensee.
1719 (2) In addition to complying with Subsection 32B-5-301(3), a full-service restaurant
1720 licensee shall display in a prominent place in the restaurant a list of the types and brand names
1721 of liquor being furnished through the full-service restaurant licensee's calibrated metered
1722 dispensing system.
1723 (3) In addition to complying with Section 32B-5-303, a full-service restaurant licensee
1724 shall store an alcoholic product in a storage area described in Subsection [
1725 (4) (a) An individual who serves an alcoholic product in a full-service restaurant
1726 licensee's premises shall make a written beverage tab for each table or group that orders or
1727 consumes an alcoholic product on the premises.
1728 (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
1729 alcoholic product ordered or consumed.
1730 (5) A person's willingness to serve an alcoholic product may not be made a condition
1731 of employment as a server with a full-service restaurant licensee.
1732 (6) (a) A full-service restaurant licensee may sell, offer for sale, or furnish liquor at the
1733 licensed premises during the following time periods only:
1734 (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
1735 (ii) on a weekend or a state or federal legal holiday or for a private event, during the
1736 period that begins at 10:30 a.m. and ends at 11:59 p.m.
1737 (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer at the
1738 licensed premises during the following time periods only:
1739 (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
1740 (ii) on a weekend or a state or federal legal holiday or for a private event, during the
1741 period that begins at 10:30 a.m. and ends at 12:59 a.m.
1742 [
1743
1744 [
1745 [
1746 [
1747 alcoholic product except after the full-service restaurant licensee confirms that the patron has
1748 the intent to order food prepared, sold, and furnished at the licensed premises.
1749 (b) A full-service restaurant licensee shall maintain on the licensed premises adequate
1750 culinary facilities for food preparation and dining accommodations.
1751 [
1752 not have more than two alcoholic products of any kind at a time before the patron.
1753 (b) A patron may not have more than one spirituous liquor drink at a time before the
1754 patron.
1755 (c) An individual portion of wine is considered to be one alcoholic product under
1756 Subsection [
1757 [
1758 (a) at:
1759 (i) the patron's table;
1760 (ii) a counter; or
1761 (iii) a seating grandfathered bar structure ; and
1762 (b) where food is served.
1763 [
1764 an alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
1765 structure that is not a seating grandfathered bar structure.
1766 (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
1767 may:
1768 (i) sit;
1769 (ii) be furnished an alcoholic product; and
1770 (iii) consume an alcoholic product.
1771 (c) Except as provided in Subsection [
1772 structure a full-service restaurant licensee may not permit a minor to, and a minor may not:
1773 (i) sit; or
1774 (ii) consume food or beverages.
1775 (d) (i) A minor may be at a seating grandfathered bar structure if the minor is
1776 employed by a full-service restaurant licensee:
1777 (A) as provided in Subsection 32B-5-308(2); or
1778 (B) to perform maintenance and cleaning services during an hour when the full-service
1779 restaurant licensee is not open for business.
1780 (ii) A minor may momentarily pass by a seating grandfathered bar structure without
1781 remaining or sitting at the bar structure en route to an area of a full-service restaurant licensee's
1782 premises in which the minor is permitted to be.
1783 [
1784 licensee may dispense an alcoholic product only if:
1785 (a) the alcoholic product is dispensed from:
1786 (i) a grandfathered bar structure;
1787 (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
1788 the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
1789 12, 2009; or
1790 (iii) an area that is:
1791 (A) separated from an area for the consumption of food by a patron by a solid,
1792 translucent, permanent structural barrier such that the facilities for the storage or dispensing of
1793 an alcoholic product are:
1794 (I) not readily visible to a patron; and
1795 (II) not accessible by a patron; and
1796 (B) apart from an area used:
1797 (I) for dining;
1798 (II) for staging; or
1799 (III) as a lobby or waiting area;
1800 (b) the full-service restaurant licensee uses an alcoholic product that is:
1801 (i) stored in an area described in Subsection [
1802 (ii) in an area not described in Subsection [
1803 (A) immediately before the alcoholic product is dispensed it is in an unopened
1804 container; (B) the unopened container is taken to an area described in Subsection [
1805 before it is opened; and (C) once opened, the container is stored in an area described in
1806 Subsection [
1807 (c) any instrument or equipment used to dispense alcoholic product is located in an
1808 area described in Subsection [
1809 [
1810 menu a charge or fee made in connection with the sale, service, or consumption of liquor
1811 including:
1812 (a) a set-up charge;
1813 (b) a service charge; or
1814 (c) a chilling fee.
1815 [
1816 beverages within 10 feet of a grandfathered bar structure, unless:
1817 (a) seating within 10 feet of the grandfathered bar structure is the only seating available
1818 in the licensed premises; and
1819 (b) the minor is accompanied by an individual who is 21 years of age or older.
1820 [
1821 32B-6-205.3, the provisions of this section apply before July 1, 2018.
1822 Section 23. Section 32B-6-205.2 is amended to read:
1823 32B-6-205.2. Specific operational requirements for a full-service restaurant
1824 license -- On and after July 1, 2018, or July 1, 2022.
1825 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
1826 Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
1827 shall comply with this section.
1828 (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in
1829 accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
1830 (i) a full-service restaurant licensee;
1831 (ii) individual staff of a full-service restaurant licensee; or
1832 (iii) both a full-service restaurant licensee and staff of the full-service restaurant
1833 licensee.
1834 (2) (a) An individual who serves an alcoholic product in a full-service restaurant
1835 licensee's premises shall make a beverage tab for each table or group that orders or consumes
1836 an alcoholic product on the premises.
1837 (b) A beverage tab described in this Subsection (2) shall state the type and amount of
1838 each alcoholic product ordered or consumed.
1839 (3) A full-service restaurant licensee may not make an individual's willingness to serve
1840 an alcoholic product a condition of employment with a full-service restaurant licensee.
1841 (4) (a) A full-service restaurant licensee may sell, offer for sale, or furnish liquor at the
1842 licensed premises during the following time periods only:
1843 (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
1844 (ii) on a weekend or a state or federal legal holiday or for a private event, during the
1845 period that begins at 10:30 a.m. and ends at 11:59 p.m.
1846 (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer at the
1847 licensed premises during the following time periods only:
1848 (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
1849 (ii) on a weekend or a state or federal legal holiday or for a private event, during the
1850 period that begins at 10:30 a.m. and ends at 12:59 a.m.
1851 [
1852
1853 [
1854 [
1855 [
1856 except after:
1857 (i) the patron to whom the full-service restaurant licensee furnishes the alcoholic
1858 product is seated at:
1859 (A) a table that is located in a dining area or a dispensing area;
1860 (B) a counter that is located in a dining area or a dispensing area; or
1861 (C) a dispensing structure that is located in a dispensing area; and
1862 (ii) the full-service restaurant licensee confirms that the patron intends to:
1863 (A) order food prepared, sold, and furnished at the licensed premises; and
1864 (B) except as provided in Subsection [
1865 location where the patron is seated and furnished the alcoholic product.
1866 (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
1867 full-service restaurant licensee, the full-service restaurant licensee may sell, offer for sale, or
1868 furnish to the patron one drink that contains a single portion of an alcoholic product as
1869 described in Section 32B-5-304 if:
1870 (A) the patron is in a dispensing area and seated at a table, counter, or dispensing
1871 structure; and
1872 (B) the full-service restaurant licensee first confirms that after the patron is seated in
1873 the dining area, the patron intends to order food prepared, sold, and furnished at the licensed
1874 premises.
1875 (ii) If the patron does not finish the patron's alcoholic product before moving to a seat
1876 in the dining area, an employee of the full-service restaurant licensee who is qualified to sell
1877 and serve an alcoholic product under Section 32B-5-306 shall transport any unfinished portion
1878 of the patron's alcoholic product to the patron's seat in the dining area.
1879 (iii) For purposes of Subsection [
1880 less.
1881 (c) A full-service restaurant licensee shall maintain on the licensed premises adequate
1882 culinary facilities for food preparation and dining accommodations.
1883 [
1884 (a) a table that is located in a dining area or dispensing area;
1885 (b) a counter that is located in a dining area or dispensing area; or
1886 (c) a dispensing structure located in a dispensing area.
1887 [
1888 not have more than two alcoholic products of any kind at a time before the patron.
1889 (b) A patron may not have more than one spirituous liquor drink at a time before the
1890 patron.
1891 (c) An individual portion of wine is considered to be one alcoholic product under
1892 Subsection [
1893 [
1894 21 years of age may consume food and beverages in a dispensing area.
1895 [
1896 remain, or consume food or beverages in a dispensing area.
1897 (b) (i) A minor may be in a dispensing area if the minor is [
1898
1899 [
1900 (A) at least 16 years of age and working as an employee of the full-service restaurant
1901 licensee; or
1902 (B) [
1903 full-service restaurant licensee when the full-service restaurant licensee is not open for
1904 business.
1905 (ii) If there is no alternative route available, a minor may momentarily pass through a
1906 dispensing area without remaining or sitting in the dispensing area en route to an area of the
1907 full-service restaurant licensee's premises in which the minor is permitted to be.
1908 [
1909 licensee may dispense an alcoholic product only if:
1910 (a) the alcoholic product is dispensed from:
1911 (i) a dispensing structure that is located in a dispensing area;
1912 (ii) an area that is:
1913 (A) separated from an area for the consumption of food by a patron by a solid,
1914 translucent, permanent structural barrier such that the facilities for the dispensing of an
1915 alcoholic product are not readily visible to a patron and not accessible by a patron; and
1916 (B) apart from an area used for dining, for staging, or as a waiting area; or
1917 (iii) the premises of a bar licensee that is:
1918 (A) owned by the same person or persons as the full-service restaurant licensee; and
1919 (B) located immediately adjacent to the premises of the full-service restaurant licensee;
1920 and
1921 (b) any instrument or equipment used to dispense alcoholic product is located in an
1922 area described in Subsection [
1923 [
1924 area in the licensed premises.
1925 (b) Each dispensing area in a licensed premises may satisfy the requirements for a
1926 dispensing area under Subsection 32B-6-202(2)(a)(i), (ii), or (iii), regardless of how any other
1927 dispensing area in the licensed premises satisfies the requirements for a dispensing area.
1928 [
1929 (a) transfer, dispense, or serve an alcoholic product on or from a movable cart; or
1930 (b) display an alcoholic product or a product intended to appear like an alcoholic
1931 product by moving a cart or similar device around the licensed premises.
1932 [
1933 menu a charge or fee made in connection with the sale, service, or consumption of liquor,
1934 including:
1935 (a) a set-up charge;
1936 (b) a service charge; or
1937 (c) a chilling fee.
1938 [
1939 full-service restaurant licensee shall maintain each of the following records for at least three
1940 years:
1941 (i) a record required by Section 32B-5-302; and
1942 (ii) a record that the commission requires a full-service restaurant licensee to use or
1943 maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1944 Rulemaking Act.
1945 (b) The department shall audit the records of a full-service restaurant licensee at least
1946 once each calendar year.
1947 [
1948 licensee:
1949 (i) may comply with the provisions of this section beginning on or after July 1, 2017;
1950 and
1951 (ii) shall comply with the provisions of this section:
1952 (A) for a full-service restaurant licensee that does not have a grandfathered bar
1953 structure, on and after July 1, 2018; or
1954 (B) for a full-service restaurant licensee that has a grandfathered bar structure, on and
1955 after July 1, 2022.
1956 (b) A full-service restaurant licensee that elects to comply with the provisions of this
1957 section before the latest applicable date described in Subsection [
1958 (i) shall comply with each provision of this section; and
1959 (ii) is not required to comply with the provisions of Section 32B-6-205.
1960 Section 24. Section 32B-6-206 is amended to read:
1961 32B-6-206. Master full-service restaurant license.
1962 (1) (a) The commission may issue a master full-service restaurant license that
1963 authorizes a person to store, sell, offer for sale, furnish, or allow the consumption of an
1964 alcoholic product on premises at multiple locations as full-service restaurants if the person
1965 applying for the master full-service restaurant license:
1966 (i) owns each of the full-service restaurants;
1967 (ii) except for the fee requirements, establishes to the satisfaction of the commission
1968 that each location of a full-service restaurant under the master full-service restaurant license
1969 separately meets the requirements of this part; and
1970 (iii) the master full-service restaurant license includes at least five full-service
1971 restaurant locations.
1972 (b) The person seeking a master full-service restaurant license shall designate which
1973 full-service restaurant locations the person seeks to have under the master full-service
1974 restaurant license.
1975 (c) A full-service restaurant location under a master full-service restaurant license is
1976 considered separately licensed for purposes of this title, except as provided in this section.
1977 (2) A master full-service restaurant license and each location designated under
1978 Subsection (1) are considered a single full-service restaurant license for purposes of Subsection
1979 32B-6-203(3)(a).
1980 (3) (a) A master full-service restaurant license expires on October 31 of each year.
1981 (b) To renew a person's master full-service restaurant license, a person shall comply
1982 with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
1983 September 30.
1984 (4) (a) The nonrefundable application fee for a master full-service restaurant license is
1985 $330.
1986 (b) The initial license fee for a master full-service restaurant license is $10,000 plus a
1987 separate initial license fee for each newly licensed full-service restaurant license under the
1988 master full-service restaurant license determined in accordance with Subsection
1989 32B-6-204(3)(b).
1990 (c) The renewal fee for a master full-service restaurant license is $1,000 plus a separate
1991 renewal fee for each full-service license under the master full-service restaurant license
1992 determined in accordance with Subsection 32B-6-204(3)(c).
1993 (5) A new location may be added to a master full-service restaurant license after the
1994 master full-service restaurant license is issued if:
1995 (a) the master full-service restaurant licensee pays a nonrefundable application fee of
1996 $330; and
1997 (b) including payment of the initial license fee, the location separately meets the
1998 requirements of this part.
1999 (6) (a) A master full-service restaurant licensee shall notify the department of a change
2000 in the persons managing a location covered by a master full-service restaurant license:
2001 (i) immediately, if the management personnel is not management personnel at a
2002 location covered by the master full-service restaurant licensee at the time of the change; or
2003 (ii) within 30 days of the change, if the master full-service restaurant licensee is
2004 transferring management personnel from one location to another location covered by the master
2005 full-service restaurant licensee.
2006 (b) A location covered by a master full-service restaurant license shall keep its own
2007 records on its premises so that the department may audit the records.
2008 (c) A master full-service restaurant licensee may not transfer alcoholic products
2009 between different locations covered by the master full-service restaurant license.
2010 (7) (a) If there is a violation of this title at a location covered by a master full-service
2011 restaurant license, the violation may result in disciplinary action in accordance with Chapter 3,
2012 Disciplinary Actions and Enforcement Act, against:
2013 (i) the single location under a master full-service restaurant license;
2014 (ii) individual staff of the location under the master full-service restaurant license; or
2015 (iii) a combination of persons or locations described in Subsections (7)(a)(i) and (ii).
2016 (b) In addition to disciplinary action under Subsection (7)(a), disciplinary action in
2017 accordance with Chapter 3, Disciplinary Actions and Enforcement Act, may be taken against a
2018 master full-service restaurant licensee or individual staff of the master full-service restaurant
2019 licensee if during a period beginning on November 1 and ending October 31:
2020 (i) at least 25% of the locations covered by the master full-service restaurant license
2021 have been found by the commission to have committed a serious or grave violation of this title,
2022 as defined by rule made by the commission; or
2023 (ii) at least 50% of the locations covered by the master full-service restaurant license
2024 have been found by the commission to have violated this title.
2025 (8) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah
2026 Administrative Rulemaking Act, to establish how a person may apply for a master full-service
2027 restaurant license under this section.
2028 Section 25. Section 32B-6-303 is amended to read:
2029 32B-6-303. Commission's power to issue limited-service restaurant license.
2030 (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
2031 wine, heavy beer, or beer on its premises as a limited-service restaurant, the person shall first
2032 obtain a limited-service restaurant license from the commission in accordance with this part.
2033 (2) (a) The commission may issue a limited-service restaurant license to establish
2034 limited-service restaurant licensed premises at places and in numbers the commission considers
2035 proper for the storage, sale, offer for sale, furnishing, and consumption of wine, heavy beer, or
2036 beer on premises operated as a limited-service restaurant.
2037 (b) A person may not sell, offer for sale, furnish, or allow the consumption of the
2038 following on the licensed premises of a limited-service restaurant licensee:
2039 (i) spirituous liquor; or
2040 (ii) a flavored malt beverage.
2041 (3) Subject to Section 32B-1-201:
2042 (a) The commission may not issue a total number of limited-service restaurant licenses
2043 that at any time exceeds the number determined by dividing the population of the state by
2044 6,817.
2045 (b) The commission may issue a seasonal limited-service restaurant license in
2046 accordance with Section 32B-5-206.
2047 (c) (i) If the location, design, and construction of a hotel may require more than one
2048 limited-service restaurant sales location within the hotel to serve the public convenience, the
2049 commission may authorize the sale of wine, heavy beer, and beer at as many as three
2050 limited-service restaurant locations within the hotel under one limited-service restaurant license
2051 if:
2052 (A) the hotel has a minimum of 150 guest rooms; and
2053 (B) the locations under the limited-service restaurant license are:
2054 (I) within the same hotel; and
2055 (II) on premises that are managed or operated, and owned or leased, by the
2056 limited-service restaurant licensee.
2057 (ii) A facility other than a hotel shall have a separate limited-service restaurant license
2058 for each limited-service restaurant where wine, heavy beer, or beer is sold, offered for sale, or
2059 furnished.
2060 (4) Except as otherwise provided in Section 32B-1-202, the commission may not issue
2061 a limited-service restaurant license for premises that do not meet the proximity requirements of
2062 Subsection 32B-1-202(2).
2063 (5) To be licensed as a limited-service restaurant, a person shall maintain at least 70%
2064 of the restaurant's gross revenues from the sale of food, which does not include:
2065 (a) mix for an alcoholic product; or
2066 (b) a service charge.
2067 Section 26. Section 32B-6-305 is amended to read:
2068 32B-6-305. Specific operational requirements for a limited-service restaurant
2069 license -- Before July 1, 2018, or July 1, 2022.
2070 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2071 Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
2072 licensee shall comply with this section.
2073 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2074 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2075 (i) a limited-service restaurant licensee;
2076 (ii) individual staff of a limited-service restaurant licensee; or
2077 (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
2078 licensee.
2079 (2) (a) A limited-service restaurant licensee on the licensed premises may not sell, offer
2080 for sale, furnish, or allow consumption of:
2081 (i) spirituous liquor; or
2082 (ii) a flavored malt beverage.
2083 (b) A product listed in Subsection (2)(a) may not be on the premises of a
2084 limited-service restaurant licensee except for use:
2085 (i) as a flavoring on a dessert; and
2086 (ii) in the preparation of a flaming food dish, drink, or dessert.
2087 (3) In addition to complying with Section 32B-5-303, a limited-service restaurant
2088 licensee shall store an alcoholic product in a storage area described in Subsection [
2089 (11)(a).
2090 (4) (a) An individual who serves an alcoholic product in a limited-service restaurant
2091 licensee's premises shall make a written beverage tab for each table or group that orders or
2092 consumes an alcoholic product on the premises.
2093 (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
2094 alcoholic product ordered or consumed.
2095 (5) A person's willingness to serve an alcoholic product may not be made a condition
2096 of employment as a server with a limited-service restaurant licensee.
2097 (6) (a) A limited-service restaurant licensee may sell, offer for sale, or furnish wine or
2098 heavy beer at the licensed premises during the following time periods only:
2099 (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
2100 (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2101 period that begins at 10:30 a.m. and ends at 11:59 p.m.
2102 (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer at the
2103 licensed premises during the following time periods only:
2104 (i) on a weekday, during the period that beings at 11:30 a.m. and ends at 12:59 a.m.; or
2105 (ii) on a weekend or state or federal legal holiday or for a private event, during the
2106 period that begins at 10:30 a.m. and ends at 12:59 a.m.
2107 [
2108
2109 [
2110 an alcoholic product except after the limited-service restaurant licensee confirms that the
2111 patron has the intent to order food prepared, sold, and furnished at the licensed premises.
2112 (b) A limited-service restaurant licensee shall maintain on the licensed premises
2113 adequate culinary facilities for food preparation and dining accommodations.
2114 [
2115 not have more than two alcoholic products of any kind at a time before the patron.
2116 (b) An individual portion of wine is considered to be one alcoholic product under
2117 Subsection [
2118 [
2119 (a) at:
2120 (i) the patron's table;
2121 (ii) a counter; or
2122 (iii) a seating grandfathered bar structure; and
2123 (b) where food is served.
2124 [
2125 furnish an alcoholic product to a patron, and a patron may not consume an alcoholic product at
2126 a bar structure that is not a seating grandfathered bar structure.
2127 (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
2128 may:
2129 (i) sit;
2130 (ii) be furnished an alcoholic product; and
2131 (iii) consume an alcoholic product.
2132 (c) Except as provided in Subsection [
2133 structure a limited-service restaurant licensee may not permit a minor to, and a minor may not:
2134 (i) sit; or
2135 (ii) consume food or beverages.
2136 (d) (i) A minor may be at a seating grandfathered bar structure if the minor is
2137 employed by a limited-service restaurant licensee:
2138 (A) as provided in Subsection 32B-5-308(2); or
2139 (B) to perform maintenance and cleaning services during an hour when the
2140 limited-service restaurant licensee is not open for business.
2141 (ii) A minor may momentarily pass by a seating grandfathered bar structure without
2142 remaining or sitting at the bar structure en route to an area of a limited-service restaurant
2143 licensee's premises in which the minor is permitted to be.
2144 [
2145 restaurant licensee may dispense an alcoholic product only if:
2146 (a) the alcoholic product is dispensed from:
2147 (i) a grandfathered bar structure;
2148 (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
2149 the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
2150 12, 2009; or
2151 (iii) an area that is:
2152 (A) separated from an area for the consumption of food by a patron by a solid,
2153 translucent, permanent structural barrier such that the facilities for the storage or dispensing of
2154 an alcoholic product are:
2155 (I) not readily visible to a patron; and
2156 (II) not accessible by a patron; and
2157 (B) apart from an area used:
2158 (I) for dining;
2159 (II) for staging; or
2160 (III) as a lobby or waiting area;
2161 (b) the limited-service restaurant licensee uses an alcoholic product that is:
2162 (i) stored in an area described in Subsection [
2163 (ii) in an area not described in Subsection [
2164 (A) immediately before the alcoholic product is dispensed it is in an unopened
2165 container;
2166 (B) the unopened container is taken to an area described in Subsection [
2167 before it is opened; and
2168 (C) once opened, the container is stored in an area described in Subsection [
2169 (11)(a); and
2170 (c) any instrument or equipment used to dispense alcoholic product is located in an
2171 area described in Subsection [
2172 [
2173 product menu a charge or fee made in connection with the sale, service, or consumption of
2174 wine or heavy beer including:
2175 (a) a set-up charge;
2176 (b) a service charge; or
2177 (c) a chilling fee.
2178 [
2179 beverages within 10 feet of a grandfathered bar structure, unless:
2180 (a) seating within 10 feet of the grandfathered bar structure is the only seating available
2181 in the licensed premises; and
2182 (b) the minor is accompanied by an individual who is 21 years of age or older.
2183 [
2184 32B-6-305.3, the provisions of this section apply before July 1, 2018.
2185 Section 27. Section 32B-6-305.2 is amended to read:
2186 32B-6-305.2. Specific operational requirements for a limited-service restaurant
2187 license -- On and after July 1, 2018, or July 1, 2022.
2188 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2189 Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
2190 licensee shall comply with this section.
2191 (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in
2192 accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2193 (i) a limited-service restaurant licensee;
2194 (ii) individual staff of a limited-service restaurant licensee; or
2195 (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
2196 licensee.
2197 (2) (a) An individual who serves an alcoholic product in a limited-service restaurant
2198 licensee's premises shall make a beverage tab for each table or group that orders or consumes
2199 an alcoholic product on the premises.
2200 (b) A beverage tab described in this Subsection (2) shall state the type and amount of
2201 each alcoholic product ordered or consumed.
2202 (3) A limited-service restaurant licensee may not make an individual's willingness to
2203 serve an alcoholic product a condition of employment with a limited-service restaurant
2204 licensee.
2205 (4) (a) A limited-service restaurant licensee may sell, offer for sale, or furnish wine or
2206 heavy beer at the licensed premises during the following time periods only:
2207 (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
2208 (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2209 period that begins at 10:30 a.m. and ends at 11:59 p.m.
2210 (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer at the
2211 licensed premises during the following time periods only:
2212 (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
2213 (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2214 period that begins at 10:30 a.m. and ends at 12:59 a.m.
2215 [
2216
2217
2218 [
2219 except after:
2220 (i) the patron to whom the limited-service restaurant licensee furnishes the alcoholic
2221 product is seated at:
2222 (A) a table that is located in a dining area or a dispensing area;
2223 (B) a counter that is located in a dining area or a dispensing area; or
2224 (C) a dispensing structure that is located in a dispensing area; and
2225 (ii) the limited-service restaurant licensee confirms that the patron intends to:
2226 (A) order food prepared, sold, and furnished at the licensed premises; and
2227 (B) except as provided in Subsection [
2228 location where the patron is seated and furnished the alcoholic product.
2229 (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
2230 limited-service restaurant licensee, the limited-service restaurant licensee may sell, offer for
2231 sale, or furnish to the patron one drink that contains a single portion of an alcoholic product as
2232 described in Section 32B-5-304 if:
2233 (A) the patron is in a dispensing area and seated at a table, counter, or dispensing
2234 structure; and
2235 (B) the limited-service restaurant licensee first confirms that after the patron is seated
2236 in the dining area, the patron intends to order food prepared, sold, and furnished at the licensed
2237 premises.
2238 (ii) If the patron does not finish the patron's alcoholic product before moving to a seat
2239 in the dining area, an employee of the limited-service restaurant licensee who is qualified to
2240 sell and serve an alcoholic product under Section 32B-5-306 shall transport any unfinished
2241 portion of the patron's alcoholic product to the patron's seat in the dining area.
2242 (iii) For purposes of Subsection [
2243 less.
2244 (c) A limited-service restaurant licensee shall maintain on the licensed premises
2245 adequate culinary facilities for food preparation and dining accommodations.
2246 [
2247 (a) a table that is located in a dining area or a dispensing area;
2248 (b) a counter that is located in a dining area or a dispensing area; or
2249 (c) a dispensing structure located in a dispensing area.
2250 [
2251 not have more than two alcoholic products of any kind at a time before the patron.
2252 (b) An individual portion of wine is considered to be one alcoholic product under
2253 Subsection [
2254 [
2255 21 years of age may consume food and beverages in a dispensing area.
2256 [
2257 remain, or consume food or beverages in a dispensing area.
2258 (b) (i) A minor may be in a dispensing area if the minor is [
2259
2260 [
2261 (A) at least 16 years of age and working as an employee of the limited-service
2262 restaurant licensee; or
2263 (B) [
2264 limited-service restaurant licensee when the limited-service restaurant licensee is not open for
2265 business.
2266 (ii) If there is no alternative route available, a minor may momentarily pass through a
2267 dispensing area without remaining or sitting in the dispensing area en route to an area of the
2268 limited-service restaurant licensee's premises in which the minor is permitted to be.
2269 [
2270 licensee may dispense an alcoholic product only if:
2271 (a) the alcoholic product is dispensed from:
2272 (i) a dispensing structure that is located in a dispensing area;
2273 (ii) an area that is:
2274 (A) separated from an area for the consumption of food by a patron by a solid,
2275 translucent, permanent structural barrier such that the facilities for the dispensing of an
2276 alcoholic product are not readily visible to a patron and not accessible by a patron; and
2277 (B) apart from an area used for dining, for staging, or as a waiting area; or
2278 (iii) the premises of a bar licensee that is:
2279 (A) owned by the same person or persons as the limited-service restaurant licensee; and
2280 (B) located immediately adjacent to the premises of the limited-service restaurant
2281 licensee; and
2282 (b) any instrument or equipment used to dispense alcoholic product is located in an
2283 area described in Subsection [
2284 [
2285 dispensing area in the licensed premises.
2286 (b) Each dispensing area in a licensed premises may satisfy the requirements for a
2287 dispensing area under Subsection 32B-6-202(2)(a)(i), (ii), or (iii), regardless of how any other
2288 dispensing area in the licensed premises satisfies the requirements for a dispensing area.
2289 [
2290 (a) transfer, dispense, or serve an alcoholic product on or from a movable cart; or
2291 (b) display an alcoholic product or a product intended to appear like an alcoholic
2292 product by moving a cart or similar device around the licensed premises.
2293 [
2294 product menu a charge or fee made in connection with the sale, service, or consumption of
2295 wine or heavy beer, including:
2296 (a) a set-up charge;
2297 (b) a service charge; or
2298 (c) a chilling fee.
2299 [
2300 limited-service restaurant licensee shall maintain each of the following records for at least three
2301 years:
2302 (i) a record required by Section 32B-5-302; and
2303 (ii) a record that the commission requires a limited-service restaurant licensee to use or
2304 maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2305 Rulemaking Act.
2306 (b) The department shall audit the records of a limited-service restaurant licensee at
2307 least once each calendar year.
2308 [
2309 licensee:
2310 (i) may comply with the provisions of this section beginning on or after July 1, 2017;
2311 and
2312 (ii) shall comply with the provisions of this section:
2313 (A) for a limited-service restaurant licensee that does not have a grandfathered bar
2314 structure, on and after July 1, 2018; or
2315 (B) for a limited-service restaurant licensee that has a grandfathered bar structure, on
2316 and after July 1, 2022.
2317 (b) A limited-service restaurant licensee that elects to comply with the provisions of
2318 this section before the latest applicable date described in Subsection [
2319 (i) shall comply with each provision of this section; and
2320 (ii) is not required to comply with the provisions of Section 32B-6-305.
2321 Section 28. Section 32B-6-603 is amended to read:
2322 32B-6-603. Commission's power to issue on-premise banquet license -- Contracts
2323 as host.
2324 (1) (a) Before a person may store, sell, offer for sale, furnish, or allow the consumption
2325 of an alcoholic product in connection with the person's banquet and room service activities at
2326 one of the following, the person shall first obtain an on-premise banquet license in accordance
2327 with this part:
2328 (i) a hotel;
2329 (ii) a resort facility;
2330 (iii) a sports center; [
2331 (iv) a convention center[
2332 (v) a performing arts facility.
2333 (b) This part does not prohibit an alcoholic product on the premises of a person listed
2334 in Subsection (1)(a) to the extent otherwise permitted by this title.
2335 (c) This section does not prohibit a person who applies for an on-premise banquet
2336 license to also apply for a package agency if otherwise qualified.
2337 (2) The commission may issue an on-premise banquet license to establish on-premise
2338 banquet licensees in the numbers the commission considers proper for the storage, sale, offer
2339 for sale, furnishing, and consumption of an alcoholic product at a banquet or as part of room
2340 service activities operated by an on-premise banquet licensee.
2341 (3) Subject to Section 32B-1-201, the commission may not issue a total number of
2342 on-premise banquet licenses that at any time exceed the number determined by dividing the
2343 population of the state by 28,765.
2344 (4) Pursuant to a contract between the host of a banquet and an on-premise banquet
2345 licensee:
2346 (a) the host of the banquet may request an on-premise banquet licensee to provide an
2347 alcoholic product served at the banquet; and
2348 (b) an on-premise banquet licensee may provide an alcoholic product served at the
2349 banquet.
2350 (5) At a banquet, an on-premise banquet licensee may furnish an alcoholic product:
2351 (a) without charge to a patron at a banquet, except that the host of the banquet shall pay
2352 for an alcoholic product furnished at the banquet; or
2353 (b) with a charge to a patron at the banquet.
2354 (6) To be licensed as an on-premise banquet, a person shall maintain at least 50% of
2355 the person's total annual banquet gross receipts from the sale of food, which does not include:
2356 (a) mix for an alcoholic product; or
2357 (b) a charge in connection with the furnishing of an alcoholic product.
2358 Section 29. Section 32B-6-605 is amended to read:
2359 32B-6-605. Specific operational requirements for on-premise banquet license.
2360 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2361 Requirements, an on-premise banquet licensee and staff of the on-premise banquet licensee
2362 shall comply with this section.
2363 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2364 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2365 (i) an on-premise banquet licensee;
2366 (ii) individual staff of an on-premise banquet licensee; or
2367 (iii) both an on-premise banquet licensee and staff of the on-premise banquet licensee.
2368 (2) An on-premise banquet licensee shall comply with Subsections 32B-5-301(4) and
2369 (5) for the entire premises of the hotel, resort facility, sports center, [
2370 performing arts facility that is the basis for the on-premise banquet license.
2371 (3) (a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee
2372 shall provide the department with advance notice of a scheduled banquet in accordance with
2373 rules made by the commission.
2374 (b) Any of the following may conduct a random inspection of a banquet:
2375 (i) an authorized representative of the commission or the department; or
2376 (ii) a law enforcement officer.
2377 (4) (a) An on-premise banquet licensee is not subject to Section 32B-5-302, but shall
2378 make and maintain the records the commission or department requires.
2379 (b) Section 32B-1-205 applies to a record required to be made or maintained in
2380 accordance with this Subsection (4).
2381 (5) (a) Except as otherwise provided in this title, an on-premise banquet licensee may
2382 sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption at the
2383 location of the banquet.
2384 (b) Except as provided in Subsection 32B-5-307(4), a host of a banquet, a patron, or a
2385 person other than the on-premise banquet licensee or staff of the on-premise banquet licensee,
2386 may not remove an alcoholic product from the premises of the banquet.
2387 (c) Notwithstanding Subsection 32B-5-307(3) and except as provided in Subsection
2388 32B-5-307(4), a patron at a banquet may not bring an alcoholic product into or onto, or remove
2389 an alcoholic product from, the premises of a banquet.
2390 (6) (a) An on-premise banquet licensee may not leave an unsold alcoholic product at
2391 the banquet following the conclusion of the banquet.
2392 (b) At the conclusion of a banquet, an on-premise banquet licensee shall:
2393 (i) destroy an opened and unused alcoholic product that is not saleable, under
2394 conditions established by the department; and
2395 (ii) return to the on-premise banquet licensee's approved locked storage area any:
2396 (A) opened and unused alcoholic product that is saleable; and
2397 (B) unopened container of an alcoholic product.
2398 (c) Except as provided in Subsection (6)(b) with regard to an open or sealed container
2399 of an alcoholic product not sold or consumed at a banquet, an on-premise banquet licensee:
2400 (i) shall store the alcoholic product in the on-premise banquet licensee's approved
2401 locked storage area; and
2402 (ii) may use the alcoholic product at more than one banquet.
2403 (7) Notwithstanding Section 32B-5-308, an on-premise banquet licensee may not
2404 employ a minor to sell, furnish, or dispense an alcoholic product in connection with the
2405 on-premise banquet licensee's banquet and room service activities.
2406 (8) An on-premise banquet licensee:
2407 (a) may provide room service in portions described in Section 32B-5-304; and
2408 (b) may not sell, offer for sale, or furnish an alcoholic product at a banquet or in
2409 connection with room service any day during a period that:
2410 [
2411 [
2412 [
2413
2414 [
2415 [
2416 [
2417 not have more than two alcoholic products of any kind at a time before the patron.
2418 (b) A patron may not have more than one spirituous liquor drink at a time before the
2419 patron.
2420 (c) An individual portion of wine is considered to be one alcoholic product under
2421 Subsection [
2422 [
2423 involved in the sale, offer for sale, or furnishing of an alcoholic product.
2424 (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
2425 shall complete an alcohol training and education seminar.
2426 [
2427 banquet at all times when an alcoholic product is sold, offered for sale, furnished, or consumed
2428 at the banquet.
2429 [
2430 facility shall be provided in person by staff of an on-premise banquet licensee only to an adult
2431 guest in the guest room.
2432 (b) An alcoholic product may not be left outside a guest room for retrieval by a guest.
2433 (13) An on-premise banquet licensee may not maintain a minibar.
2434 Section 30. Section 32B-6-702 is amended to read:
2435 32B-6-702. Definitions.
2436 As used in this part, "recreational amenity" [
2437
2438
2439
2440 (1) a billiard parlor;
2441 (2) a pool parlor;
2442 (3) a bowling facility;
2443 (4) a golf course;
2444 (5) miniature golf;
2445 (6) a golf driving range;
2446 (7) a tennis club;
2447 (8) a sports facility that hosts professional sporting events and has a seating capacity
2448 equal to or greater than 6,500;
2449 (9) a concert venue that has a seating capacity equal to or greater than 6,500;
2450 (10) one of the following if owned by a government agency:
2451 (a) a convention center;
2452 (b) a fair facility;
2453 (c) an equestrian park;
2454 (d) a theater; or
2455 (e) a concert venue;
2456 (11) an amusement park:
2457 (a) with one or more permanent amusement rides; and
2458 (b) located on at least 50 acres;
2459 (12) a ski resort;
2460 (13) a venue for live entertainment if the venue:
2461 (a) is not regularly open for more than five hours on any day;
2462 (b) is operated so that food is available whenever beer is sold, offered for sale, or
2463 furnished at the venue; and
2464 (c) is operated so that no more than 15% of its total annual receipts are from the sale of
2465 beer; or
2466 (14) concessions operated within the boundary of a park administered by the:
2467 (a) Division of Parks and Recreation; or
2468 (b) National Parks Service.
2469 Section 31. Section 32B-6-703 is amended to read:
2470 32B-6-703. Commission's power to issue on-premise beer retailer license.
2471 (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
2472 beer on the premises as an on-premise beer retailer, the person shall first obtain an on-premise
2473 beer retailer license from the commission in accordance with this part.
2474 (2) (a) The commission may issue an on-premise beer retailer license to establish
2475 on-premise beer retailer licensed premises at places and in numbers as the commission
2476 considers proper for the storage, sale, offer for sale, furnishing, and consumption of beer on
2477 premises operated as an on-premise beer retailer.
2478 (b) At the time that the commission issues an on-premise beer retailer license, the
2479 commission shall designate whether the on-premise beer retailer is a tavern.
2480 (c) The commission may change its designation of whether an on-premise beer retailer
2481 is a tavern in accordance with rules made by the commission.
2482 (d) (i) In determining whether an on-premise beer retailer is a tavern, the commission
2483 shall determine whether the on-premise beer retailer will engage primarily in the retail sale of
2484 beer for consumption on the establishment's premises.
2485 (ii) In making a determination under this Subsection (2)(d), the commission shall
2486 consider:
2487 (A) whether the on-premise beer retailer will operate as one of the following:
2488 (I) a beer bar;
2489 (II) a parlor;
2490 (III) a lounge;
2491 (IV) a cabaret; or
2492 (V) a nightclub;
2493 (B) if the on-premise beer retailer will operate as described in Subsection (2)(d)(ii)(A):
2494 (I) whether the on-premise beer retailer will sell food in the establishment; and
2495 (II) if the on-premise beer retailer sells food, whether the revenue from the sale of beer
2496 will exceed the revenue of the sale of food;
2497 (C) whether full meals including appetizers, main courses, and desserts will be served;
2498 (D) the square footage and seating capacity of the premises;
2499 (E) what portion of the square footage and seating capacity will be used for a dining
2500 area in comparison to the portion that will be used as a lounge or bar area;
2501 (F) whether the person will maintain adequate on-premise culinary facilities to prepare
2502 full meals, except a person that is located on the premises of a hotel or resort facility may use
2503 the culinary facilities of the hotel or resort facility;
2504 (G) whether the entertainment provided on the premises of the beer retailer will be
2505 suitable for minors; and
2506 (H) the beer retailer management's ability to manage and operate an on-premise beer
2507 retailer license including:
2508 (I) management experience;
2509 (II) past beer retailer management experience; and
2510 (III) the type of management scheme that will be used by the beer retailer.
2511 (e) On or after March 1, 2012:
2512 (i) To be licensed as an on-premise beer retailer that is not a tavern, a person shall:
2513 (A) maintain at least 70% of the person's total gross revenues from business directly
2514 related to a recreational amenity on or directly adjoining the licensed premises of the beer
2515 retailer, except that a person may include gross revenue from business directly related to a
2516 recreational amenity that is owned or operated by a political subdivision if the person has a
2517 contract meeting the requirements of Subsection (2)(e)(iv) with the political subdivision; or
2518 (B) have a recreational amenity on or directly adjoining the licensed premises of the
2519 beer retailer and maintain at least 70% of the person's total gross revenues from the sale of
2520 food.
2521 (ii) The commission may not license a person as an on-premise beer retailer if the
2522 person does not:
2523 (A) meet the requirements of Subsection (2)(e)(i); or
2524 (B) operate as a tavern.
2525 (iii) A person who, after August 1, 2011, applies for an on-premise beer retailer license
2526 that is not a tavern and does not meet the requirements of Subsection (2)(e)(i), may not have or
2527 construct facilities for the dispensing or storage of an alcoholic product that do not meet the
2528 requirements of Subsection 32B-6-905[
2529 (iv) A contract described in Subsection (2)(e)(i)(A) shall:
2530 (A) allow the beer retailer to include the total gross revenue from operations of the
2531 recreational amenity in the beer retailer's total gross receipts for purposes of Subsection
2532 (2)(e)(i)(A); and
2533 (B) give the department the authority to audit financial information of the political
2534 subdivision to the extent necessary to confirm that the requirements of Subsection (2)(e)(i)(A)
2535 are met.
2536 (3) Subject to Section 32B-1-201:
2537 (a) The commission may not issue a total number of on-premise beer retailer licenses
2538 that are taverns that at any time exceeds the number determined by dividing the population of
2539 the state by 73,666.
2540 (b) The commission may issue a seasonal on-premise beer retailer license for a tavern
2541 in accordance with Section 32B-5-206.
2542 (4) (a) Unless otherwise provided in Subsection (4)(b):
2543 (i) only one on-premise beer retailer license is required for each building or resort
2544 facility owned or leased by the same person; and
2545 (ii) a separate license is not required for each retail beer dispensing location in the
2546 same building or on the same resort premises owned or operated by the same person.
2547 (b) (i) Subsection (4)(a) applies only if each retail beer dispensing location in the
2548 building or resort facility operates in the same manner.
2549 (ii) If each retail beer dispensing location does not operate in the same manner:
2550 (A) one on-premise beer retailer license designated as a tavern is required for the
2551 locations in the same building or on the same resort premises that operate as a tavern; and
2552 (B) one on-premise beer retailer license is required for the locations in the same
2553 building or on the same resort premises that do not operate as a tavern.
2554 Section 32. Section 32B-6-803 is amended to read:
2555 32B-6-803. Commission's power to issue reception center license.
2556 (1) Before a person may store, sell, offer for sale, or furnish an alcoholic product on its
2557 premises as a reception center, the person shall first obtain a reception center license from the
2558 commission in accordance with this part.
2559 (2) The commission may issue a reception center license to establish reception center
2560 licensed premises at places and in numbers the commission considers proper for the storage,
2561 sale, offer for sale, furnishing, and consumption of an alcoholic product on premises operated
2562 as a reception center.
2563 (3) Subject to Section 32B-1-201, the commission may not issue a total number of
2564 reception center licenses that at any time exceeds the number determined by dividing the
2565 population of the state by 251,693.
2566 (4) The commission may not issue a reception center license for premises that do not
2567 meet the proximity requirements of Section 32B-1-202.
2568 (5) (a) To be licensed as a reception center, a person may not maintain in excess of
2569 30% of its total annual receipts from the sale of an alcoholic product, which includes:
2570 (i) mix for an alcoholic product; or
2571 (ii) a charge in connection with the furnishing of an alcoholic product.
2572 (b) A reception center licensee shall report the information necessary to show
2573 compliance with this Subsection (5) to the department on an annual basis.
2574 Section 33. Section 32B-6-805 is amended to read:
2575 32B-6-805. Specific operational requirements for a reception center license.
2576 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2577 Requirements, a reception center licensee and staff of the reception center licensee shall
2578 comply with this section.
2579 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2580 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2581 (i) a reception center licensee;
2582 (ii) individual staff of a reception center licensee; or
2583 (iii) both a reception center licensee and staff of the reception center licensee.
2584 (2) In addition to complying with Section 32B-5-303, a reception center licensee shall
2585 store an alcoholic product in a storage area described in Subsection [
2586 (3) (a) For the purpose described in Subsection (3)(b), a reception center licensee shall
2587 provide the following with advance notice of a scheduled event in accordance with rules made
2588 by the commission:
2589 (i) the department; and
2590 (ii) the local law enforcement agency responsible for the enforcement of this title in the
2591 jurisdiction where the reception center is located.
2592 (b) Any of the following may conduct a random inspection of an event:
2593 (i) an authorized representative of the commission or the department; or
2594 (ii) a law enforcement officer.
2595 (4) (a) Except as otherwise provided in this title, a reception center licensee may sell,
2596 offer for sale, or furnish an alcoholic product at an event only for consumption at the reception
2597 center's licensed premises.
2598 (b) A host of an event, a patron, or a person other than the reception center licensee or
2599 staff of the reception center licensee, may not remove an alcoholic product from the reception
2600 center's licensed premises.
2601 (c) Notwithstanding Section 32B-5-307, a patron at an event may not bring an
2602 alcoholic product into or onto, or remove an alcoholic product from, the reception center.
2603 (5) (a) A reception center licensee may not leave an unsold alcoholic product at an
2604 event following the conclusion of the event.
2605 (b) At the conclusion of an event, a reception center licensee shall:
2606 (i) destroy an opened and unused alcoholic product that is not saleable, under
2607 conditions established by the department; and
2608 (ii) return to the reception center licensee's approved locked storage area any:
2609 (A) opened and unused alcoholic product that is saleable; and
2610 (B) unopened container of an alcoholic product.
2611 (c) Except as provided in Subsection (5)(b) with regard to an open or sealed container
2612 of an alcoholic product not sold or consumed at an event, a reception center licensee:
2613 (i) shall store the alcoholic product in accordance with Subsection (2); and
2614 (ii) may use the alcoholic product at more than one event.
2615 (6) Notwithstanding Section 32B-5-308, a reception center licensee may not employ a
2616 minor in connection with an event at the reception center at which food is not made available.
2617 (7) A person's willingness to serve an alcoholic product may not be made a condition
2618 of employment as a server with a reception center licensee.
2619 (8) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
2620 product at the licensed premises on any day during the period that:
2621 (a) begins at 1 a.m.; and
2622 (b) ends at 9:59 a.m.
2623 [
2624
2625 [
2626 [
2627 [
2628
2629 [
2630 alcoholic product at an event at which a minor is present unless the reception center licensee
2631 makes food available at all times when an alcoholic product is sold, offered for sale, furnished,
2632 or consumed during the event.
2633 [
2634 may not have more than two alcoholic products of any kind at a time before the patron.
2635 (b) An individual portion of wine is considered to be one alcoholic product under
2636 Subsection [
2637 [
2638 in the sale, offer for sale, or furnishing of an alcoholic product.
2639 (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
2640 shall complete an alcohol training and education seminar.
2641 [
2642 times when an alcoholic product is sold, offered for sale, furnished, or consumed at the event.
2643 [
2644 alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
2645 structure.
2646 [
2647 may dispense an alcoholic product only if:
2648 (a) the alcoholic product is dispensed from an area that is:
2649 (i) separated from an area for the consumption of food by a patron by a solid,
2650 translucent, permanent structural barrier such that the facilities for the storage or dispensing of
2651 an alcoholic product are:
2652 (A) not readily visible to a patron; and
2653 (B) not accessible by a patron; and
2654 (ii) apart from an area used:
2655 (A) for staging; or
2656 (B) as a lobby or waiting area;
2657 (b) the reception center licensee uses an alcoholic product that is:
2658 (i) stored in an area described in Subsection [
2659 (ii) in an area not described in Subsection [
2660 (A) immediately before the alcoholic product is dispensed it is in an unopened
2661 container;
2662 (B) the unopened container is taken to an area described in Subsection [
2663 before it is opened; and
2664 (C) once opened, the container is stored in an area described in Subsection [
2665 (14)(a); and
2666 (c) any instrument or equipment used to dispense an alcoholic product is located in an
2667 area described in Subsection [
2668 [
2669 mobile serving area that:
2670 (a) is moved only by staff of the reception center licensee;
2671 (b) is capable of being moved by only one individual; and
2672 (c) is no larger than 6 feet long and 30 inches wide.
2673 [
2674 premises except pursuant to a contract between a third party host of the event and the reception
2675 center licensee under which the reception center licensee provides an alcoholic product sold,
2676 offered for sale, or furnished at an event.
2677 (b) At an event, a reception center licensee may furnish an alcoholic product:
2678 (i) without charge to a patron, except that the third party host of the event shall pay for
2679 an alcoholic product furnished at the event; or
2680 (ii) with a charge to a patron at the event.
2681 (c) The commission may by rule define what constitutes a "third-party host" for
2682 purposes of this Subsection [
2683 host are not owned by or operated by the same persons, except that the rule shall permit a
2684 reception center licensee to host an event for an immediate family member of the reception
2685 center licensee.
2686 [
2687 (a) adequate to prepare a full meal; and
2688 (b) (i) located on the licensed premises; or
2689 (ii) under the same control as the reception center licensee.
2690 [
2691 licensee may not operate an event:
2692 (i) that is open to the general public; and
2693 (ii) at which an alcoholic product is sold or offered for sale.
2694 (b) A reception center licensee may operate an event described in Subsection [
2695 (18)(a) if the event is hosted:
2696 (i) at the reception center no more frequently than once a calendar year; and
2697 (ii) by a nonprofit organization that is organized and qualified under Section 501(c),
2698 Internal Revenue Code.
2699 Section 34. Section 32B-6-902 is amended to read:
2700 32B-6-902. Definitions.
2701 (1) As used in this part:
2702 (a) (i) "Dining area" means an area in the licensed premises of a beer-only restaurant
2703 licensee that is primarily used for the service and consumption of food by one or more patrons.
2704 (ii) "Dining area" does not include a dispensing area.
2705 (b) (i) "Dispensing area" means an area in the licensed premises of a beer-only
2706 restaurant licensee where a dispensing structure is located and that:
2707 (A) is physically separated from the dining area and any waiting area by a structure or
2708 other barrier that prevents a patron seated in the dining area or a waiting area from viewing the
2709 dispensing of beer;
2710 (B) except as provided in Subsection (1)(b)(ii), measures at least 10 feet from the
2711 dining area and any waiting area to the nearest edge of the dispensing structure; or
2712 (C) is physically separated from the dining area and any waiting area by a permanent
2713 physical structure that complies with the provisions of Title 15A, State Construction and Fire
2714 Codes Act, and, to the extent allowed under Title 15A, State Construction and Fire Codes Act,
2715 measures at least 42 inches high, and at least 60 inches from the inside edge of the barrier to
2716 the nearest edge of the dispensing structure.
2717 (ii) "Dispensing area" does not include any area described in Subsection (1)(b)(i)(B)
2718 that is less than 10 feet from an area where beer is dispensed, but from which a patron seated at
2719 a table or counter cannot view the dispensing of beer.
2720 (c) "Grandfathered bar structure" means a bar structure in a licensed premises of a
2721 beer-only restaurant licensee that:
2722 (i) was licensed as an on-premise beer retailer as of August 1, 2011, and as of August
2723 1, 2011:
2724 (A) is operational;
2725 (B) has facilities for the dispensing or storage of an alcoholic product that do not meet
2726 the requirements of Subsection 32B-6-905[
2727 (C) in accordance with Subsection 32B-6-703(2)(e), notifies the department that
2728 effective March 1, 2012, the on-premise beer retailer licensee will seek to be licensed as a
2729 beer-only restaurant; or
2730 (ii) is a bar structure grandfathered under Section 32B-6-409.
2731 (d) "Grandfathered bar structure" does not include a grandfathered bar structure
2732 described in Subsection (1)(a) on or after the day on which a restaurant remodels the
2733 grandfathered bar structure, as defined by rule made by the commission.
2734 (e) "Small beer-only restaurant licensee" means a beer-only restaurant licensee that has
2735 a grandfathered bar structure whose dispensing area includes more than 45% of the available
2736 seating for patrons on the licensed premises, excluding outdoor seating:
2737 (i) when measured in accordance with Subsection (1)(b)(i)(B); and
2738 (ii) based on the licensee's floor plan on file with the department on July 1, 2017.
2739 (f) "Waiting area" includes a lobby.
2740 (2) Subject to Subsection (1)(d), a grandfathered bar structure remains a grandfathered
2741 bar structure notwithstanding whether a restaurant undergoes a change of ownership.
2742 Section 35. Section 32B-6-903 is amended to read:
2743 32B-6-903. Commission's power to issue beer-only restaurant license.
2744 (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
2745 beer on its premises as a beer-only restaurant, the person shall first obtain a beer-only
2746 restaurant license from the commission in accordance with this part.
2747 (2) (a) The commission may issue a beer-only restaurant license to establish beer-only
2748 restaurant licensed premises at places and in numbers the commission considers proper for the
2749 storage, sale, offer for sale, furnishing, and consumption of beer on premises operated as a
2750 beer-only restaurant.
2751 (b) A person may not sell, offer for sale, furnish, or allow the consumption of liquor on
2752 the licensed premises of a beer-only restaurant licensee.
2753 (3) (a) Only one beer-only restaurant license is required for each building or resort
2754 facility owned or leased by the same person.
2755 (b) A separate license is not required for each beer-only restaurant license dispensing
2756 location in the same building or on the same resort premises owned or operated by the same
2757 person.
2758 (4) Except as otherwise provided in Section 32B-1-202, the commission may not issue
2759 a beer-only restaurant license for premises that do not meet the proximity requirements of
2760 Subsection 32B-1-202(2).
2761 (5) To be licensed as a beer-only restaurant, a person shall maintain at least 70% of the
2762 restaurant's gross revenues from the sale of food, which does not include a service charge.
2763 Section 36. Section 32B-6-905 is amended to read:
2764 32B-6-905. Specific operational requirements for a beer-only restaurant license --
2765 Before July 1, 2018, or July 1, 2022.
2766 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2767 Requirements, a beer-only restaurant licensee and staff of the beer-only restaurant licensee
2768 shall comply with this section.
2769 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2770 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2771 (i) a beer-only restaurant licensee;
2772 (ii) individual staff of a beer-only restaurant licensee; or
2773 (iii) both a beer-only restaurant licensee and staff of the beer-only restaurant licensee.
2774 (2) (a) A beer-only restaurant licensee on the licensed premises may not sell, offer for
2775 sale, furnish, or allow consumption of liquor.
2776 (b) Liquor may not be on the premises of a beer-only restaurant licensee except for use:
2777 (i) as a flavoring on a dessert; and
2778 (ii) in the preparation of a flaming food dish, drink, or dessert.
2779 (3) In addition to complying with Section 32B-5-303, a beer-only restaurant licensee
2780 shall store beer in a storage area described in Subsection [
2781 (4) (a) An individual who serves beer in a beer-only restaurant licensee's premises shall
2782 make a written beverage tab for each table or group that orders or consumes an alcoholic
2783 product on the premises.
2784 (b) A beverage tab required by this Subsection (4) shall list the type and amount of
2785 beer ordered or consumed.
2786 (5) A person's willingness to serve beer may not be made a condition of employment as
2787 a server with a beer-only restaurant licensee.
2788 (6) A beer-only restaurant licensee may sell, offer for sale, or furnish beer at the
2789 licensed premises during the following time periods only:
2790 (a) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
2791 (b) on a weekend or a state or federal legal holiday or for a private event, during the
2792 period that begins at 10:30 a.m. and ends at 12:59 a.m.
2793 [
2794
2795 [
2796 after the beer-only restaurant licensee confirms that the patron has the intent to order food
2797 prepared, sold, and furnished at the licensed premises.
2798 (b) A beer-only restaurant shall maintain on the licensed premises adequate culinary
2799 facilities for food preparation and dining accommodations.
2800 [
2801 [
2802 (a) at:
2803 (i) the patron's table;
2804 (ii) a grandfathered bar structure; or
2805 (iii) a counter; and
2806 (b) where food is served.
2807 [
2808 beer to a patron, and a patron may not consume an alcoholic product at a bar structure.
2809 (b) Notwithstanding Subsection [
2810 patron who is 21 years of age or older may:
2811 (i) sit;
2812 (ii) be furnished a beer; and
2813 (iii) consume a beer.
2814 (c) Except as provided in Subsection [
2815 beer-only restaurant licensee may not permit a minor to, and a minor may not:
2816 (i) sit; or
2817 (ii) consume food or beverages.
2818 (d) (i) A minor may be at a grandfathered bar structure if the minor is employed by a
2819 beer-only restaurant licensee:
2820 (A) as provided in Subsection 32B-5-308(2); or
2821 (B) to perform maintenance and cleaning services during an hour when the beer-only
2822 restaurant licensee is not open for business.
2823 (ii) A minor may momentarily pass by a grandfathered bar structure without
2824 remaining or sitting at the bar structure en route to an area of a beer-only restaurant licensee's
2825 premises in which the minor is permitted to be.
2826 [
2827 (a) the beer is dispensed from an area that is:
2828 (i) a grandfathered bar structure; or
2829 (ii) separated from an area for the consumption of food by a patron by a solid,
2830 translucent, permanent structural barrier such that the facilities for the storage or dispensing of
2831 an alcoholic product are not readily visible to a patron, not accessible by a patron, and apart
2832 from an area used for dining, for staging, or as a lobby or waiting area;
2833 (b) the beer-only restaurant licensee uses a beer that is:
2834 (i) stored in an area described in Subsection [
2835 (ii) in an area not described in Subsection [
2836 (A) immediately before the beer is dispensed it is in an unopened container;
2837 (B) the unopened container is taken to an area described in Subsection [
2838 before it is opened; and
2839 (C) once opened, the container is stored in an area described in Subsection [
2840 (11)(a) ; and
2841 (c) any instrument or equipment used to dispense the beer is located in an area
2842 described in Subsection [
2843 [
2844 beverages within 10 feet of a grandfathered bar structure, unless:
2845 (a) seating within 10 feet of the grandfathered bar structure is the only seating available
2846 in the licensed premises; and
2847 (b) the minor is accompanied by an individual who is 21 years of age or older.
2848 [
2849 32B-6-905.2, the provisions of this section apply before July 1, 2018.
2850 Section 37. Section 32B-6-905.1 is amended to read:
2851 32B-6-905.1. Specific operational requirements for a beer-only restaurant license
2852 -- On and after July 1, 2018, or July 1, 2022.
2853 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2854 Requirements, a beer-only restaurant licensee and staff of the beer-only restaurant licensee
2855 shall comply with this section.
2856 (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in
2857 accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2858 (i) a beer-only restaurant licensee;
2859 (ii) individual staff of a beer-only restaurant licensee; or
2860 (iii) both a beer-only restaurant licensee and staff of the beer-only restaurant licensee.
2861 (2) (a) A beer-only restaurant licensee on the licensed premises may not sell, offer for
2862 sale, furnish, or allow consumption of liquor.
2863 (b) Liquor may not be on the premises of a beer-only restaurant licensee except for use:
2864 (i) as a flavoring on a dessert; or
2865 (ii) in the preparation of a flaming food dish, drink, or dessert.
2866 (3) (a) An individual who serves beer in a beer-only restaurant licensee's premises shall
2867 make a beverage tab for each table or group that orders or consumes beer on the premises.
2868 (b) A beverage tab described in this Subsection (3) shall state the type and amount of
2869 each beer ordered or consumed.
2870 (4) A beer-only restaurant licensee may not make an individual's willingness to serve
2871 beer a condition of employment as a server with a beer-only restaurant licensee.
2872 (5) A beer-only restaurant licensee may sell, offer for sale, or furnish beer at the
2873 licensed premises during the following time periods only:
2874 (a) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
2875 (b) on a weekend or a state or federal legal holiday or for a private event, during the
2876 period that begins at 10:30 a.m. and ends at 12:59 a.m.
2877 [
2878
2879
2880 [
2881 (i) the patron to whom the beer-only restaurant licensee furnishes the beer is seated at:
2882 (A) a table that is located in a dining area or a dispensing area;
2883 (B) a counter that is located in a dining area or a dispensing area; or
2884 (C) a dispensing structure that is located in a dispensing area; and
2885 (ii) the beer-only restaurant licensee confirms that the patron intends to:
2886 (A) order food prepared, sold, and furnished at the licensed premises; and
2887 (B) except as provided in Subsection [
2888 location where the patron is seated and furnished the beer.
2889 (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
2890 beer-only restaurant licensee, the beer-only restaurant licensee may sell, offer for sale, or
2891 furnish to the patron one portion of beer as described in Section 32B-5-304 if:
2892 (A) the patron is in a dispensing area and seated at a table, counter, or dispensing
2893 structure; and
2894 (B) the beer-only restaurant licensee first confirms that after the patron is seated in the
2895 dining area, the patron intends to order food prepared, sold, and furnished at the licensed
2896 premises.
2897 (ii) If the patron does not finish the patron's beer before moving to a seat in the dining
2898 area, an employee of the beer-only restaurant licensee who is qualified to sell and serve an
2899 alcoholic product under Section 32B-5-306 shall transport any unfinished portion of the
2900 patron's beer to the patron's seat in the dining area.
2901 (c) A beer-only restaurant licensee shall maintain on the licensed premises adequate
2902 culinary facilities for food preparation and dining accommodations.
2903 [
2904 (a) a table that is located in a dining area or a dispensing area;
2905 (b) a counter that is located in a dining area or a dispensing area; or
2906 (c) a dispensing structure located in a dispensing area.
2907 [
2908 [
2909 least 21 years of age may consume food and beverages in a dispensing area.
2910 [
2911 remain, or consume food or beverages in a dispensing area.
2912 (b) (i) A minor may be in a dispensing area if the minor is [
2913
2914 [
2915 (A) at least 16 years of age and working as an employee of the beer-only restaurant
2916 licensee; or
2917 (B) [
2918 beer-only restaurant licensee when the beer-only restaurant licensee is not open for business.
2919 (ii) If there is no alternative route available, a minor may momentarily pass through a
2920 dispensing area without remaining or sitting in the dispensing area en route to an area of the
2921 beer-only restaurant licensee's premises in which the minor is permitted to be.
2922 [
2923 (a) the beer is dispensed from:
2924 (i) a dispensing structure that is located in a dispensing area;
2925 (ii) an area that is:
2926 (A) separated from an area for the consumption of food by a patron by a solid,
2927 translucent, permanent structural barrier such that the facilities for the dispensing of an
2928 alcoholic product are not readily visible to a patron and not accessible by a patron; and
2929 (B) apart from an area used for dining, for staging, or as a waiting area; or
2930 (iii) the premises of a bar licensee that is:
2931 (A) owned by the same person or persons as the beer-only restaurant licensee; and
2932 (B) located immediately adjacent to the premises of the beer-only restaurant licensee;
2933 and
2934 (b) any instrument or equipment used to dispense the beer is located in an area
2935 described in Subsection [
2936 [
2937 in the licensed premises.
2938 (b) Each dispensing area in a licensed premises may satisfy the requirements for a
2939 dispensing area under Subsection 32B-6-902(1)(b)(i)(A), (B), or (C), regardless of how any
2940 other dispensing area in the licensed premises satisfies the requirements for a dispensing area.
2941 [
2942 or from a movable cart.
2943 [
2944 beer-only restaurant licensee shall maintain each of the following records for at least three
2945 years:
2946 (i) a record required by Section 32B-5-302; and
2947 (ii) a record that the commission requires a beer-only restaurant licensee to use or
2948 maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2949 Rulemaking Act.
2950 (b) The department shall audit the records of a beer-only restaurant licensee at least
2951 once each calendar year.
2952 [
2953 (i) may comply with the provisions of this section beginning on or after July 1, 2017;
2954 and
2955 (ii) shall comply with the provisions of this section:
2956 (A) for a beer-only restaurant licensee that does not have a grandfathered bar structure,
2957 on and after July 1, 2018; or
2958 (B) for a beer-only restaurant licensee that has a grandfathered bar structure, on and
2959 after July 1, 2022.
2960 (b) A beer-only restaurant licensee that elects to comply with the provisions of this
2961 section before the latest applicable date described in Subsection [
2962 (i) shall comply with each provision of this section; and
2963 (ii) is not required to comply with the provisions of Section 32B-6-905.
2964 Section 38. Section 32B-7-407 is enacted to read:
2965 32B-7-407. Premises with multiple licenses prohibited -- Exception.
2966 (1) Subject to Subsection (2), the commission may issue an off-premise beer retailer
2967 state license for a premises that is a package agency described in Subsection 32B-2-605(13)(b).
2968 (2) An off-premise beer retailer state licensee described in Subsection (2) may not sell
2969 beer other than beer that is the product of the manufacturing licensee that holds the package
2970 agency located on the premises.
2971 Section 39. Section 32B-7-408 is enacted to read:
2972 32B-7-408. Master off-premise beer retailer state license.
2973 (1) (a) The commission may issue a master off-premise beer retailer state license that
2974 authorizes a person to store, sell, or offer for sale beer for consumption off the person's
2975 premises at multiple locations as off-premise beer retailers if the person applying for the master
2976 off-premise beer retailer state license:
2977 (i) owns each of the off-premise beer retailers;
2978 (ii) except for the fee requirements, establishes to the satisfaction of the commission
2979 that each location of an off-premise beer retailer under the master off-premise beer retailer state
2980 license separately meets the requirements of this part; and
2981 (iii) the master off-premise beer retailer state license includes at least five off-premise
2982 beer retailer locations.
2983 (b) The person seeking a master off-premise beer retailer state license shall designate
2984 which off-premise beer retailer locations the person seeks to have under the master off-premise
2985 beer retailer state license.
2986 (c) An off-premise beer retailer location under a master off-premise beer retailer state
2987 license is considered separately licensed for purposes of this title.
2988 (2) (a) A master off-premise beer retailer state license expires on the last day of
2989 February each year.
2990 (b) To renew a person's master off-premise beer retailer state license, a person shall
2991 comply with the renewal requirements of Section 32B-7-403 by no later than January 31 of the
2992 year in which the off-premise beer retailer state license expires.
2993 (3) (a) The nonrefundable application fee for a master off-premise beer retailer state
2994 license is $75.
2995 (b) The initial license fee for a master off-premise beer retailer state license is:
2996 (i) $1,100 plus a separate initial license fee for each newly licensed off-premise beer
2997 retailer state license under the master off-premise beer retailer state license determined in
2998 accordance with Subsection 32B-7-402(3); and
2999 (ii) refundable if the commission does not issue the master off-premise beer retailer
3000 state license.
3001 (c) The renewal fee for a master off-premise beer retailer state license is $300 plus a
3002 separate renewal fee for each off-premise beer retailer state license under the master
3003 off-premise beer retailer state license determined in accordance with Subsection
3004 32B-7-403(2)(b).
3005 (4) A new location may be added to a master off-premise beer retailer state license
3006 after the master off-premise beer retailer state license is issued if, including payment of the
3007 initial license fee, the location separately meets the requirements of this part.
3008 (5) (a) A master off-premise beer retailer state licensee shall notify the department of a
3009 change in the persons managing a location covered by a master off-premise beer retailer state
3010 license:
3011 (i) immediately, if the management personnel is not management personnel at a
3012 location covered by the master off-premise beer retailer state licensee at the time of the change;
3013 or
3014 (ii) within 30 days of the change, if the off-premise beer retailer state licensee is
3015 transferring management personnel from one location to another location covered by the master
3016 off-premise beer retailer state license.
3017 (b) A location covered by a master off-premise beer retailer state license shall keep its
3018 own records on its premises so that the department may audit the records.
3019 (c) A master off-premise beer retailer state licensee may not transfer beer between
3020 different locations covered by the master off-premise beer retailer state license.
3021 (6) (a) If there is a violation of this title at a location covered by a master off-premise
3022 beer retailer state license, the violation may result in disciplinary action in accordance with
3023 Chapter 3, Disciplinary Actions and Enforcement Act, against:
3024 (i) the single location under a master off-premise beer retailer state license;
3025 (ii) individual staff of the location under the master off-premise beer retailer state
3026 license; or
3027 (iii) a combination of persons or locations described in Subsections (6)(a)(i) and (ii).
3028 (b) In addition to disciplinary action under Subsection (6)(a), disciplinary action in
3029 accordance with Chapter 3, Disciplinary Actions and Enforcement Act, may be taken against a
3030 master off-premise beer retailer state licensee or individual staff of the master off-premise beer
3031 retailer state licensee if during a period beginning on March 1 and ending the last day of
3032 February:
3033 (i) at least 25% of the locations covered by the master off-premise beer retailer state
3034 license have been found by the commission to have committed a serious or grave violation of
3035 this title, as defined by rule made by the commission; or
3036 (ii) at least 50% of the locations covered by the master off-premise beer retailer state
3037 license have been found by the commission to have violated this title.
3038 (7) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah
3039 Administrative Rulemaking Act, to establish how a person may apply for a master off-premise
3040 beer retailer state license under this section.
3041 Section 40. Section 32B-11-504 is enacted to read:
3042 32B-11-504. Master brewery manufacturing license.
3043 (1) (a) The commission may issue a master brewery manufacturing license that
3044 authorizes a person to engage in the actions described in Subsection 32B-11-503(1) at multiple
3045 locations as brewery manufacturing licensees if the person applying for the master brewery
3046 manufacturing license:
3047 (i) owns each of the entities acting as a brewery manufacturing licensee under the
3048 master brewery manufacturing license;
3049 (ii) except for the fee requirements, establishes to the satisfaction of the commission
3050 that each location acting as a brewery manufacturing licensee under the master brewery
3051 manufacturing license separately meets the requirements of this chapter; and
3052 (iii) the master brewery manufacturing license includes at least two locations.
3053 (b) The person seeking a master brewery manufacturing license shall designate which
3054 locations the person seeks to have under the master brewery manufacturing license.
3055 (c) A location under a master brewery manufacturing license is considered separately
3056 licensed for purposes of this title.
3057 (2) (a) A master brewery manufacturing license expires on December 31 of each year.
3058 (b) To renew a person's master brewery manufacturing license, a person shall comply
3059 with the renewal requirements of Section 32B-11-204 by no later than November 30 of the year
3060 in which the master brewery manufacturing license expires.
3061 (3) (a) The nonrefundable application fee for a master brewery manufacturing license is
3062 $300.
3063 (b) The initial license fee for a master brewery manufacturing license is:
3064 (i) $7,500 plus a separate initial license fee of $3,000 for each newly licensed brewery
3065 manufacturing license under the master brewery manufacturing license; and
3066 (ii) refundable if the commission does not issue the master brewery manufacturing
3067 license.
3068 (c) The renewal fee for a master brewery manufacturing license is $1,000 plus a
3069 separate renewal fee of $1,000 for each brewery manufacturing license under the master
3070 brewery manufacturing license.
3071 (4) A new location may be added to a master brewery manufacturing license after the
3072 master brewery manufacturing license is issued if, including payment of the initial license fee,
3073 the location separately meets the requirements of this chapter.
3074 (5) (a) A master brewery manufacturing licensee shall notify the department of a
3075 change in the persons managing a location covered by the master brewery manufacturing
3076 license:
3077 (i) immediately, if the management personnel is not management personnel at the
3078 location covered by the master brewery manufacturing license at the time of the change; or
3079 (ii) within 30 days of the change, if the master brewery manufacturing license is
3080 transferring management personnel from one location to another location covered by the master
3081 brewery manufacturing licensee.
3082 (b) A location covered by a master brewery manufacturing license shall keep its own
3083 records on its premises for audit by the department.
3084 (6) A master brewery manufacturing licensee may transport alcoholic product between
3085 locations under the licensee's master brewery manufacturing license.
3086 (7) (a) If there is a violation of this title at a location covered by a master brewery
3087 manufacturing license, the violation may result in disciplinary action in accordance with
3088 Chapter 3, Disciplinary Actions and Enforcement Act, against:
3089 (i) the single location under a master brewery manufacturing license;
3090 (ii) individual staff of the location under the master brewery manufacturing license; or
3091 (iii) a combination of persons or locations described in Subsections (7)(a)(i) and (ii).
3092 (b) In addition to disciplinary action under Subsection (7)(a), disciplinary action in
3093 accordance with Chapter 3, Disciplinary Actions and Enforcement Act, may be taken against a
3094 master brewery manufacturing licensee or individual staff of the master brewery manufacturing
3095 licensee if the master brewery manufacturing licensee demonstrates a pattern or practice of
3096 mismanagement of the persons or locations described in Subsection (7)(a).
3097 (8) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah
3098 Administrative Rulemaking Act, to establish how a person may apply for a master brewery
3099 manufacturing license under this section.
3100 Section 41. Section 32B-17-101 is enacted to read:
3101
3102
3103 32B-17-101. Title.
3104 This chapter is known as the "Liquor Transport License Act."
3105 Section 42. Section 32B-17-201 is enacted to read:
3106
3107 32B-17-201. Commission's power to issue liquor transport license.
3108 (1) (a) Before a person other than the retail licensee may pickup and deliver liquor to a
3109 retail licensee, the person shall obtain a liquor transport license issued by the commission in
3110 accordance with this chapter.
3111 (b) A violation of Subsection (1)(a) is a class A misdemeanor.
3112 (2) The commission may issue a liquor transport license for the pickup and delivery of
3113 liquor to a retail licensee.
3114 (3) A liquor transport license entitles the holder to:
3115 (a) pickup liquor from a package agency or state store on behalf of a retail licensee
3116 using the licensee's funds; and
3117 (b) transport and deliver the liquor directly to a retail licensee.
3118 Section 43. Section 32B-17-202 is enacted to read:
3119 32B-17-202. Application requirements for liquor transport license.
3120 To obtain a liquor transport license, a person shall submit to the department:
3121 (1) a written application in a form prescribed by the department;
3122 (2) a nonrefundable $300 application fee;
3123 (3) an initial license fee of $2,300 that is refundable if the commission does not issue a
3124 liquor transport license;
3125 (4) a copy of the person's current business license;
3126 (5) a bond as specified in Section 32B-17-206;
3127 (6) evidence that the person carries liability insurance in an amount and form
3128 satisfactory to the department; and
3129 (7) any other information the commission or department may require.
3130 Section 44. Section 32B-17-203 is enacted to read:
3131 32B-17-203. Renewal requirements for liquor transport license.
3132 (1) A liquor transport license expires on May 31 of each year.
3133 (2) To renew a liquor transport license, a person shall submit to the department by no
3134 later then April 30 of the year in which the license expires:
3135 (a) a completed renewal application in a form prescribed by the department;
3136 (b) a copy of the person's current business license;
3137 (c) a bond as specified in Section 32B-17-206;
3138 (d) evidence that the person carries liability insurance in an amount and form
3139 satisfactory to the department;
3140 (e) a report that includes the following information for the period since the liquor
3141 transport licensee obtained or renewed a liquor transport license:
3142 (i) the number of deliveries the liquor transport licensee made to each type of retail
3143 licensee;
3144 (ii) each state store and each package agency from which the liquor transport licensee
3145 picked up liquor as a liquor transport licensee;
3146 (iii) any breakage or shrinkage; and
3147 (iv) any other information required by the department; and
3148 (f) a $1,200 renewal fee.
3149 (3) Failure to meet the renewal requirements described in this section results in an
3150 automatic forfeiture of the liquor transport license effective on the date the existing liquor
3151 transport license expires.
3152 Section 45. Section 32B-17-204 is enacted to read:
3153 32B-17-204. Qualifications for liquor transport license.
3154 (1) The commission may not issue a liquor transport license to a person who is
3155 disqualified under Section 32B-1-304.
3156 (2) If a person to whom a liquor transport license is issued under this chapter no longer
3157 possesses the qualifications required by this title for obtaining the liquor transport license, the
3158 commission may suspend or revoke the person's liquor transport license.
3159 Section 46. Section 32B-17-205 is enacted to read:
3160 32B-17-205. Commission and department duties before issuing liquor transport
3161 license.
3162 (1) (a) Before the commission may issue a liquor transport license, the department shall
3163 conduct an investigation and may hold public hearings to gather information and make
3164 recommendations to the commission as to whether a liquor transport license should be issued.
3165 (b) The department shall forward the information and recommendations described in
3166 Subsection (1)(a) to the commission to aid in the commission's determination.
3167 (2) Before issuing a liquor transport license, the commission shall:
3168 (a) determine that the person filed a complete application that complies with Sections
3169 32B-17-202 and 32B-17-204;
3170 (b) determine that the person is not disqualified under Section 32B-1-304;
3171 (c) consider the person's ability to manage and operate a liquor transport operation,
3172 including:
3173 (i) management experience;
3174 (ii) past related experience; and
3175 (iii) the means the person intends to use to deliver liquor to retail licensees; and
3176 (d) consider any other factor that the commission considers necessary.
3177 Section 47. Section 32B-17-206 is enacted to read:
3178 32B-17-206. Bond for liquor transport license.
3179 (1) (a) A liquor transport licensee shall post a cash bond or surety bond in the penal
3180 sum of $10,000 payable to the department.
3181 (b) A liquor transport licensee shall procure and maintain a bond in accordance with
3182 this section for as long as the liquor transport licensee operates as a liquor transport licensee.
3183 (2) A bond posted under this section shall be:
3184 (a) in a form approved by the attorney general; and
3185 (b) conditioned upon a liquor transport licensee's faithful compliance with this title and
3186 the rules of the commission.
3187 (3) If a surety bond posted by a liquor transport licensee under this section is canceled
3188 due to the liquor transport licensee's negligence, the department may assess a $300
3189 reinstatement fee.
3190 (4) No part of a bond posted under this section may be withdrawn during the period the
3191 liquor transport license is in effect.
3192 (5) (a) A bond posted under this section may be forfeited if the liquor transport license
3193 is revoked.
3194 (b) Notwithstanding Subsection (5)(a), the department may make a claim against a
3195 bond posted by a liquor transport licensee for money owed the department under this title
3196 without the commission first revoking the liquor transport license.
3197 Section 48. Section 32B-17-301 is enacted to read:
3198
3199 32B-17-301. General operational requirements for liquor transport license.
3200 (1) (a) A liquor transport licensee and staff of the liquor transport licensee shall comply
3201 with this title and the rules of the commission.
3202 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
3203 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3204 (i) a liquor transport licensee;
3205 (ii) individual staff of a liquor transport licensee; or
3206 (iii) both a liquor transport licensee and staff of the liquor transport licensee.
3207 (2) A liquor transport licensee may not employ a minor to handle an alcoholic product.
3208 (3) A liquor transport licensee may not sell, transfer, assign, exchange, barter, give, or
3209 attempt in any way to dispose of the liquor transport license to a person, regardless of whether
3210 done for monetary gain.
3211 (4) (a) A liquor transport licensee may not deliver liquor to a person within the state
3212 except to a retail licensee.
3213 (b) A violation of this Subsection (4) is a class A misdemeanor.
3214 (5) The commission may prescribe by rule, consistent with this title, the general
3215 operational requirements of a liquor transport licensee.
3216 Section 49. Section 32B-17-302 is enacted to read:
3217 32B-17-302. Notifying the department of change of ownership.
3218 The commission may suspend or revoke a liquor transport license if a liquor transport
3219 licensee does not immediately notify the department of a change in:
3220 (1) ownership of the liquor transport service;
3221 (2) for a corporate owner:
3222 (a) the corporate officers or directors; or
3223 (b) shareholders holding at least 20% of the total issued and outstanding stock of the
3224 corporation; or
3225 (3) for a limited liability company:
3226 (a) the managers; or
3227 (b) the members owing at least 20% of the limited liability company.
3228 Section 50. Section 62A-15-401 is amended to read:
3229 62A-15-401. Alcohol training and education seminar.
3230 (1) As used in this part:
3231 (a) "Instructor" means a person that directly provides the instruction during an alcohol
3232 training and education seminar for a seminar provider.
3233 (b) "Licensee" means a person who is:
3234 (i) (A) a new or renewing licensee under Title 32B, Alcoholic Beverage Control Act;
3235 and
3236 (B) engaged in the retail sale of an alcoholic product for consumption on the premises
3237 of the licensee; or
3238 (ii) a business that is:
3239 (A) a new or renewing licensee licensed by a city, town, or county; and
3240 (B) engaged in the retail sale of beer for consumption off the premises of the licensee.
3241 (c) "Off-premise beer retailer" is as defined in Section 32B-1-102.
3242 (d) "Seminar provider" means a person other than the division who provides an alcohol
3243 training and education seminar meeting the requirements of this section.
3244 (2) (a) This section applies to:
3245 (i) a retail manager as defined in Section [
3246 (ii) retail staff as defined in Section [
3247 (iii) an individual who, as defined by division rule:
3248 (A) directly supervises the sale of beer to a customer for consumption off the premises
3249 of an off-premise beer retailer; or
3250 (B) sells beer to a customer for consumption off the premises of an off-premise beer
3251 retailer.
3252 (b) If the individual does not have a valid record that the individual has completed an
3253 alcohol training and education seminar, an individual described in Subsection (2)(a) shall:
3254 (i) (A) complete an alcohol training and education seminar within 30 days of the
3255 following if the individual is described in Subsection (2)(a)(i) or (ii):
3256 (I) if the individual is an employee, the day the individual begins employment;
3257 (II) if the individual is an independent contractor, the day the individual is first hired;
3258 or
3259 (III) if the individual holds an ownership interest in the licensee, the day that the
3260 individual first engages in an activity that would result in that individual being required to
3261 complete an alcohol training and education seminar; or
3262 (B) complete an alcohol training and education seminar within the time periods
3263 specified in Subsection [
3264 Subsection (2)(a)(iii)(A) or (B); and
3265 (ii) pay a fee:
3266 (A) to the seminar provider; and
3267 (B) that is equal to or greater than the amount established under Subsection (4)(h).
3268 (c) An individual shall have a valid record that the individual completed an alcohol
3269 training and education seminar within the time period provided in this Subsection (2) to engage
3270 in an activity described in Subsection (2)(a).
3271 (d) A record that an individual has completed an alcohol training and education
3272 seminar is valid for:
3273 (i) three years from the day on which the record is issued for an individual described in
3274 Subsection (2)(a)(i) or (ii); and
3275 (ii) five years from the day on which the record is issued for an individual described in
3276 Subsection (2)(a)(iii)(A) or (B).
3277 (e) On and after July 1, 2011, to be considered as having completed an alcohol training
3278 and education seminar, an individual shall:
3279 (i) attend the alcohol training and education seminar and take any test required to
3280 demonstrate completion of the alcohol training and education seminar in the physical presence
3281 of an instructor of the seminar provider; or
3282 (ii) complete the alcohol training and education seminar and take any test required to
3283 demonstrate completion of the alcohol training and education seminar through an online course
3284 or testing program that meets the requirements described in Subsection (2)(f).
3285 (f) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
3286 Administrative Rulemaking Act, establish one or more requirements for an online course or
3287 testing program described in Subsection (2)(e) that are designed to inhibit fraud in the use of
3288 the online course or testing program. In developing the requirements by rule the division shall
3289 consider whether to require:
3290 (i) authentication that the an individual accurately identifies the individual as taking the
3291 online course or test;
3292 (ii) measures to ensure that an individual taking the online course or test is focused on
3293 training material throughout the entire training period;
3294 (iii) measures to track the actual time an individual taking the online course or test is
3295 actively engaged online;
3296 (iv) a seminar provider to provide technical support, such as requiring a telephone
3297 number, email, or other method of communication that allows an individual taking the online
3298 course or test to receive assistance if the individual is unable to participate online because of
3299 technical difficulties;
3300 (v) a test to meet quality standards, including randomization of test questions and
3301 maximum time limits to take a test;
3302 (vi) a seminar provider to have a system to reduce fraud as to who completes an online
3303 course or test, such as requiring a distinct online certificate with information printed on the
3304 certificate that identifies the person taking the online course or test, or requiring measures to
3305 inhibit duplication of a certificate;
3306 (vii) measures for the division to audit online courses or tests;
3307 (viii) measures to allow an individual taking an online course or test to provide an
3308 evaluation of the online course or test;
3309 (ix) a seminar provider to track the Internet protocol address or similar electronic
3310 location of an individual who takes an online course or test;
3311 (x) an individual who takes an online course or test to use an e-signature; or
3312 (xi) a seminar provider to invalidate a certificate if the seminar provider learns that the
3313 certificate does not accurately reflect the individual who took the online course or test.
3314 (3) (a) A licensee may not permit an individual who is not in compliance with
3315 Subsection (2) to:
3316 (i) serve or supervise the serving of an alcoholic product to a customer for
3317 consumption on the premises of the licensee;
3318 (ii) engage in any activity that would constitute managing operations at the premises of
3319 a licensee that engages in the retail sale of an alcoholic product for consumption on the
3320 premises of the licensee;
3321 (iii) directly supervise the sale of beer to a customer for consumption off the premises
3322 of an off-premise beer retailer; or
3323 (iv) sell beer to a customer for consumption off the premises of an off-premise beer
3324 retailer.
3325 (b) A licensee that violates Subsection (3)(a) is subject to Section [
3326 32B-1-702.
3327 (4) The division shall:
3328 (a) (i) provide alcohol training and education seminars; or
3329 (ii) certify one or more seminar providers;
3330 (b) establish the curriculum for an alcohol training and education seminar that includes
3331 the following subjects:
3332 (i) (A) alcohol as a drug; and
3333 (B) alcohol's effect on the body and behavior;
3334 (ii) recognizing the problem drinker or signs of intoxication;
3335 (iii) an overview of state alcohol laws related to responsible beverage sale or service,
3336 as determined in consultation with the Department of Alcoholic Beverage Control;
3337 (iv) dealing with the problem customer, including ways to terminate sale or service;
3338 and
3339 (v) for those supervising or engaging in the retail sale of an alcoholic product for
3340 consumption on the premises of a licensee, alternative means of transportation to get the
3341 customer safely home;
3342 (c) recertify each seminar provider every three years;
3343 (d) monitor compliance with the curriculum described in Subsection (4)(b);
3344 (e) maintain for at least five years a record of every person who has completed an
3345 alcohol training and education seminar;
3346 (f) provide the information described in Subsection (4)(e) on request to:
3347 (i) the Department of Alcoholic Beverage Control;
3348 (ii) law enforcement; or
3349 (iii) a person licensed by the state or a local government to sell an alcoholic product;
3350 (g) provide the Department of Alcoholic Beverage Control on request a list of any
3351 seminar provider certified by the division; and
3352 (h) establish a fee amount for each person attending an alcohol training and education
3353 seminar that is sufficient to offset the division's cost of administering this section.
3354 (5) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
3355 Administrative Rulemaking Act:
3356 (a) define what constitutes under this section an individual who:
3357 (i) manages operations at the premises of a licensee engaged in the retail sale of an
3358 alcoholic product for consumption on the premises of the licensee;
3359 (ii) supervises the serving of an alcoholic product to a customer for consumption on the
3360 premises of a licensee;
3361 (iii) serves an alcoholic product to a customer for consumption on the premises of a
3362 licensee;
3363 (iv) directly supervises the sale of beer to a customer for consumption off the premises
3364 of an off-premise beer retailer; or
3365 (v) sells beer to a customer for consumption off the premises of an off-premise beer
3366 retailer;
3367 (b) establish criteria for certifying and recertifying a seminar provider; and
3368 (c) establish guidelines for the manner in which an instructor provides an alcohol
3369 education and training seminar.
3370 (6) A seminar provider shall:
3371 (a) obtain recertification by the division every three years;
3372 (b) ensure that an instructor used by the seminar provider:
3373 (i) follows the curriculum established under this section; and
3374 (ii) conducts an alcohol training and education seminar in accordance with the
3375 guidelines established by rule;
3376 (c) ensure that any information provided by the seminar provider or instructor of a
3377 seminar provider is consistent with:
3378 (i) the curriculum established under this section; and
3379 (ii) this section;
3380 (d) provide the division with the names of all persons who complete an alcohol training
3381 and education seminar provided by the seminar provider;
3382 (e) (i) collect a fee for each person attending an alcohol training and education seminar
3383 in accordance with Subsection (2); and
3384 (ii) forward to the division the portion of the fee that is equal to the amount described
3385 in Subsection (4)(h); and
3386 (f) issue a record to an individual that completes an alcohol training and education
3387 seminar provided by the seminar provider.
3388 (7) (a) If after a hearing conducted in accordance with Title 63G, Chapter 4,
3389 Administrative Procedures Act, the division finds that a seminar provider violates this section
3390 or that an instructor of the seminar provider violates this section, the division may:
3391 (i) suspend the certification of the seminar provider for a period not to exceed 90 days;
3392 (ii) revoke the certification of the seminar provider;
3393 (iii) require the seminar provider to take corrective action regarding an instructor; or
3394 (iv) prohibit the seminar provider from using an instructor until such time that the
3395 seminar provider establishes to the satisfaction of the division that the instructor is in
3396 compliance with Subsection (6)(b).
3397 (b) The division may certify a seminar provider whose certification is revoked:
3398 (i) no sooner than 90 days from the date the certification is revoked; and
3399 (ii) if the seminar provider establishes to the satisfaction of the division that the
3400 seminar provider will comply with this section.
3401 Section 51. Section 63I-2-232 is amended to read:
3402 63I-2-232. Repeal dates -- Title 32B.
3403 (1) Subsection 32B-1-102(7) is repealed July 1, 2022.
3404 (2) Subsection 32B-1-407(3)(d) is repealed July 1, 2022.
3405 (3) Subsection 32B-1-604(4) is repealed June 1, 2018.
3406 (4) Subsections 32B-6-202(3) and (4) are repealed July 1, 2022.
3407 (5) Section 32B-6-205 is repealed July 1, 2022.
3408 (6) Subsection 32B-6-205.2[
3409 (7) Section 32B-6-205.3 is repealed July 1, 2022.
3410 (8) Subsections 32B-6-302(3) and (4) are repealed July 1, 2022.
3411 (9) Section 32B-6-305 is repealed July 1, 2022.
3412 (10) Subsection 32B-6-305.2[
3413 (11) Section 32B-6-305.3 is repealed July 1, 2022.
3414 (12) Section 32B-6-404.1 is repealed July 1, 2022.
3415 (13) Section 32B-6-409 is repealed July 1, 2022.
3416 (14) Section 32B-6-605.1 is repealed July 1, 2019.
3417 (15) Subsection 32B-6-703(2)(e)(iv) is repealed July 1, 2022.
3418 (16) Subsections 32B-6-902(1)(c), (1)(d), and (2) are repealed July 1, 2022.
3419 (17) Section 32B-6-905 is repealed July 1, 2022.
3420 (18) Subsection 32B-6-905.1[
3421 (19) Section 32B-6-905.2 is repealed July 1, 2022.
3422 (20) Section 32B-7-303 is repealed March 1, 2019.
3423 (21) Section 32B-7-304 is repealed March 1, 2019.
3424 (22) Subsection 32B-8-402(1)(b) is repealed July 1, 2022.
3425 Section 52. Repealer.
3426 This bill repeals:
3427 Section 32B-5-401, Title.