1     
ALCOHOL AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Timothy D. Hawkes

5     
Senate Sponsor: Jerry W. Stevenson

6     

7     LONG TITLE
8     General Description:
9          This bill amends and enacts provisions of the Alcoholic Beverage Control Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     provides a grandfather clause for certain licensees regarding proximity
14     requirements;
15          ▸     prohibits advertising that promotes the intoxicating effects of alcohol or emphasizes
16     the high alcohol content of an alcoholic product;
17          ▸     enacts provisions regarding percentage lease agreements;
18          ▸     consolidates provisions regarding qualifications for a resort license;
19          ▸     grants the Alcoholic Beverage Control Commission (commission) plenary power to
20     deem a license, permit, or certificate of approval forfeit;
21          ▸     consolidates provisions regarding application requirements for retail licenses;
22          ▸     grants the commission rulemaking authority to set standards for dispensing stations
23     and areas;
24          ▸     permits certain package agencies and an on-premise banquet licensee to provide an
25     alcoholic product free of charge to a guest room as part of room service under
26     certain conditions;
27          ▸     amends provisions regarding the timing of reporting violations;
28          ▸     grants the department power to issue an order to show cause under certain
29     conditions;

30          ▸     amends provisions regarding multiple retail licenses operating on the same
31     premises;
32          ▸     amends provisions regarding bringing an alcoholic product onto or removing an
33     alcoholic product from licensed premises;
34          ▸     amends provisions regarding a retail licensee ceasing operation;
35          ▸     amends operational requirements for a full-service restaurant licensee regarding
36     leasing a locker for a patron's storage of wine;
37          ▸     amends provisions regarding minors in or on the lounge or bar areas of certain
38     licensees;
39          ▸     amends the definition of recreational amenity;
40          ▸     grants the commission power to designate by rule a recreational amenity under
41     certain conditions;
42          ▸     amends the total annual gross receipts from the sale of food that a reception center
43     licensee must maintain;
44          ▸     creates a hospitality amenity license as a retail license and establishes operational
45     requirements;
46          ▸     prohibits one or more licensees from having a retail license on the same licensed
47     premises or adjacent to an off-premise beer retailer state licensee's licensed
48     premises, except under certain conditions;
49          ▸     amends the Transfer of Retail License Act to:
50               •     govern the transfer of an off-premise beer retailer state license, a manufacturing
51     license, and an industrial or manufacturing use permit; and
52               •     permit the transfer of a bar establishment license across county lines;
53          ▸     creates an arena license, including licensing requirements, operational requirements,
54     and enforcement;
55          ▸     consolidates provisions regarding sublicenses, creating the Sublicense Act;
56          ▸     requires a person who substantially changes an event permit application to pay a
57     nonrefundable fee;

58          ▸     repeals provisions regarding enforcement of the Nuisance Retail Licensee Act in
59     relation to hotel and resort licensees; and
60          ▸     makes technical and conforming changes.
61     Money Appropriated in this Bill:
62          None
63     Other Special Clauses:
64          None
65     Utah Code Sections Affected:
66     AMENDS:
67          32B-1-102, as last amended by Laws of Utah 2019, Chapters 336, 403, 498 and last
68     amended by Coordination Clause, Laws of Utah 2019, Chapter 403
69          32B-1-202, as last amended by Laws of Utah 2018, Chapter 249
70          32B-1-206, as renumbered and amended by Laws of Utah 2011, Chapter 307
71          32B-1-304, as last amended by Laws of Utah 2019, Chapter 145
72          32B-1-305, as last amended by Laws of Utah 2019, Chapter 403
73          32B-1-607, as last amended by Laws of Utah 2019, Chapter 403
74          32B-2-202, as last amended by Laws of Utah 2019, Chapter 403
75          32B-2-605, as last amended by Laws of Utah 2019, Chapter 403
76          32B-3-202, as enacted by Laws of Utah 2010, Chapter 276
77          32B-3-204, as last amended by Laws of Utah 2012, Chapter 365
78          32B-4-415, as last amended by Laws of Utah 2018, Chapter 249
79          32B-4-422, as last amended by Laws of Utah 2011, Chapter 307
80          32B-5-201, as last amended by Laws of Utah 2017, Chapter 455
81          32B-5-202, as last amended by Laws of Utah 2018, Chapter 249
82          32B-5-203, as enacted by Laws of Utah 2010, Chapter 276
83          32B-5-204, as enacted by Laws of Utah 2010, Chapter 276
84          32B-5-207, as last amended by Laws of Utah 2019, Chapter 403
85          32B-5-301, as last amended by Laws of Utah 2019, Chapter 403

86          32B-5-307, as last amended by Laws of Utah 2018, Chapter 249
87          32B-5-309, as and further amended by Revisor Instructions, Laws of Utah 2013,
88     Chapter 349
89          32B-6-205, as last amended by Laws of Utah 2019, Chapter 403
90          32B-6-205.2, as last amended by Laws of Utah 2019, Chapter 403
91          32B-6-406, as last amended by Laws of Utah 2018, Chapter 249
92          32B-6-603, as last amended by Laws of Utah 2019, Chapter 403
93          32B-6-605, as last amended by Laws of Utah 2019, Chapter 403
94          32B-6-702, as last amended by Laws of Utah 2019, Chapter 403
95          32B-6-803, as last amended by Laws of Utah 2019, Chapter 403
96          32B-6-805, as last amended by Laws of Utah 2019, Chapter 403
97          32B-8-102, as last amended by Laws of Utah 2017, Chapter 455
98          32B-8-201, as enacted by Laws of Utah 2010, Chapter 276
99          32B-8-202, as last amended by Laws of Utah 2011, Chapter 334
100          32B-8-401, as last amended by Laws of Utah 2011, Chapters 307 and 334
101          32B-8-501, as last amended by Laws of Utah 2019, Chapter 145
102          32B-8-502, as enacted by Laws of Utah 2010, Chapter 276
103          32B-8a-101, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
104     Revisor Instructions, Laws of Utah 2013, Chapter 349
105          32B-8a-102, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
106     Revisor Instructions, Laws of Utah 2013, Chapter 349
107          32B-8a-201, as last amended by Laws of Utah 2013, Chapter 349 and further amended
108     by Revisor Instructions, Laws of Utah 2013, Chapter 349
109          32B-8a-202, as last amended by Laws of Utah 2018, Chapter 249
110          32B-8a-203, as last amended by Laws of Utah 2018, Chapter 249
111          32B-8a-302, as last amended by Laws of Utah 2017, Chapters 455, 471 and last
112     amended by Coordination Clause, Laws of Utah 2017, Chapter 471
113          32B-8a-303, as and further amended by Revisor Instructions, Laws of Utah 2013,

114     Chapter 349
115          32B-8a-401, as last amended by Laws of Utah 2016, Chapter 82
116          32B-8a-402, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
117     Revisor Instructions, Laws of Utah 2013, Chapter 349
118          32B-8a-404, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
119     Revisor Instructions, Laws of Utah 2013, Chapter 349
120          32B-8a-501, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
121     Revisor Instructions, Laws of Utah 2013, Chapter 349
122          32B-8a-502, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
123     Revisor Instructions, Laws of Utah 2013, Chapter 349
124          32B-8b-102, as last amended by Laws of Utah 2018, Chapter 249
125          32B-8b-201, as last amended by Laws of Utah 2017, Chapter 455
126          32B-8b-202, as enacted by Laws of Utah 2016, Chapter 80
127          32B-8b-301, as last amended by Laws of Utah 2018, Chapter 249
128          32B-8b-401, as enacted by Laws of Utah 2016, Chapter 80
129          32B-9-201, as last amended by Laws of Utah 2012, Chapter 365
130          32B-10-206, as enacted by Laws of Utah 2010, Chapter 276
131          32B-11-208, as enacted by Laws of Utah 2010, Chapter 276
132          32B-11-403, as last amended by Laws of Utah 2016, Chapter 266
133          63I-2-232, as last amended by Laws of Utah 2019, First Special Session, Chapter 2
134     ENACTS:
135          32B-1-208, Utah Code Annotated 1953
136          32B-7-409, Utah Code Annotated 1953
137          32B-6-1001, Utah Code Annotated 1953
138          32B-6-1002, Utah Code Annotated 1953
139          32B-6-1003, Utah Code Annotated 1953
140          32B-6-1004, Utah Code Annotated 1953
141          32B-6-1005, Utah Code Annotated 1953

142          32B-8c-101, Utah Code Annotated 1953
143          32B-8c-102, Utah Code Annotated 1953
144          32B-8c-201, Utah Code Annotated 1953
145          32B-8c-202, Utah Code Annotated 1953
146          32B-8c-301, Utah Code Annotated 1953
147          32B-8c-401, Utah Code Annotated 1953
148          32B-8d-101, Utah Code Annotated 1953
149          32B-8d-102, Utah Code Annotated 1953
150          32B-8d-103, Utah Code Annotated 1953
151          32B-8d-104, Utah Code Annotated 1953
152          32B-8d-105, Utah Code Annotated 1953
153          32B-8d-201, Utah Code Annotated 1953
154     RENUMBERS AND AMENDS:
155          32B-8d-202, (Renumbered from 32B-8-301, as enacted by Laws of Utah 2010, Chapter
156     276)
157          32B-8d-203, (Renumbered from 32B-8-302, as enacted by Laws of Utah 2010, Chapter
158     276)
159          32B-8d-204, (Renumbered from 32B-8-303, as enacted by Laws of Utah 2010, Chapter
160     276)
161          32B-8d-205, (Renumbered from 32B-8-304, as last amended by Laws of Utah 2017,
162     Chapter 455)
163     REPEALS:
164          32B-8-203, as enacted by Laws of Utah 2010, Chapter 276
165          32B-8-204, as last amended by Laws of Utah 2011, Chapter 334
166          32B-8-402, as last amended by Laws of Utah 2011, Chapter 334
167          32B-8-503, as enacted by Laws of Utah 2010, Chapter 276
168          32B-8b-203, as enacted by Laws of Utah 2016, Chapter 80
169          32B-8b-204, as enacted by Laws of Utah 2016, Chapter 80

170          32B-8b-302, as last amended by Laws of Utah 2018, Chapter 249
171          32B-8b-402, as enacted by Laws of Utah 2016, Chapter 80
172     

173     Be it enacted by the Legislature of the state of Utah:
174          Section 1. Section 32B-1-102 is amended to read:
175          32B-1-102. Definitions.
176          As used in this title:
177          (1) "Airport lounge" means a business location:
178          (a) at which an alcoholic product is sold at retail for consumption on the premises; and
179          (b) that is located at an international airport with a United States Customs office on the
180     premises of the international airport.
181          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
182     Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
183          (3) "Alcoholic beverage" means the following:
184          (a) beer; or
185          (b) liquor.
186          (4) (a) "Alcoholic product" means a product that:
187          (i) contains at least .5% of alcohol by volume; and
188          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
189     process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
190     in an amount equal to or greater than .5% of alcohol by volume.
191          (b) "Alcoholic product" includes an alcoholic beverage.
192          (c) "Alcoholic product" does not include any of the following common items that
193     otherwise come within the definition of an alcoholic product:
194          (i) except as provided in Subsection (4)(d), an extract;
195          (ii) vinegar;
196          (iii) preserved nonintoxicating cider;
197          (iv) essence;

198          (v) tincture;
199          (vi) food preparation; or
200          (vii) an over-the-counter medicine.
201          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
202     when it is used as a flavoring in the manufacturing of an alcoholic product.
203          (5) "Alcohol training and education seminar" means a seminar that is:
204          (a) required by Chapter 1, Part 7, Alcohol Training and Education Act; and
205          (b) described in Section 62A-15-401.
206          (6) "Arena" means an enclosed building:
207          (a) that is managed by:
208          (i) the same person who owns the enclosed building;
209          (ii) a person who has a majority interest in each person who owns or manages a space
210     in the enclosed building; or
211          (iii) a person who has authority to direct or exercise control over the management or
212     policy of each person who owns or manages a space in the enclosed building;
213          (b) that operates as a venue; and
214          (c) that has an occupancy capacity of at least 12,500.
215          (7) "Arena license" means a license issued in accordance with Chapter 5, Retail
216     License Act, and Chapter 8c, Arena License Act.
217          [(6)] (8) "Banquet" means [a private] an event:
218          (a) that is a private event or a privately sponsored event;
219          [(a)] (b) that is held at one or more designated locations approved by the commission
220     in or on the premises of [a]:
221          (i) a hotel;
222          (ii) a resort facility;
223          (iii) a sports center;
224          (iv) a convention center; [or]
225          (v) a performing arts facility; or

226          (vi) an arena;
227          [(b)] (c) for which there is a contract:
228          (i) between a person operating a facility listed in Subsection [(6)(a)] (8)(b) and another
229     person that has common ownership of less than 20% with the person operating the facility; and
230          (ii) under which the person operating a facility listed in Subsection [(6)(a)] (8)(b) is
231     required to provide an alcoholic product at the event; and
232          [(c)] (d) at which food and alcoholic products may be sold, offered for sale, or
233     furnished.
234          [(7)] (9) "Bar structure" means a surface or structure on a licensed premises if on or at
235     any place of the surface or structure an alcoholic product is:
236          (a) stored; or
237          (b) dispensed.
238          [(8)] (10) (a) "Bar establishment license" means a license issued in accordance with
239     Chapter 5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License.
240          (b) "Bar establishment license" includes:
241          (i) a dining club license;
242          (ii) an equity license;
243          (iii) a fraternal license; or
244          (iv) a bar license.
245          [(9)] (11) "Bar license" means a license issued in accordance with Chapter 5, Retail
246     License Act, and Chapter 6, Part 4, Bar Establishment License.
247          [(10)] (12) (a) Subject to Subsection (10)(d), "beer" means a product that:
248          (i) contains at least .5% of alcohol by volume, but not more than 5% of alcohol by
249     volume or 4% by weight; and
250          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
251          (b) "Beer" may or may not contain hops or other vegetable products.
252          (c) "Beer" includes a product that:
253          (i) contains alcohol in the percentages described in Subsection [(10)] (12)(a); and

254          (ii) is referred to as:
255          (A) beer;
256          (B) ale;
257          (C) porter;
258          (D) stout;
259          (E) lager; or
260          (F) a malt or malted beverage.
261          (d) "Beer" does not include a flavored malt beverage.
262          [(11)] (13) "Beer-only restaurant license" means a license issued in accordance with
263     Chapter 5, Retail License Act, and Chapter 6, Part 9, Beer-Only Restaurant License.
264          [(12)] (14) "Beer retailer" means a business that:
265          (a) is engaged, primarily or incidentally, in the retail sale of beer to a patron, whether
266     for consumption on or off the business premises; and
267          (b) is licensed as:
268          (i) an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-Premise Beer
269     Retailer Local Authority; or
270          (ii) an on-premise beer retailer, in accordance with Chapter 5, Retail License Act, and
271     Chapter 6, Part 7, On-Premise Beer Retailer License.
272          [(13)] (15) "Beer wholesaling license" means a license:
273          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
274          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
275     retail licensees or off-premise beer retailers.
276          [(14)] (16) "Billboard" means a public display used to advertise, including:
277          (a) a light device;
278          (b) a painting;
279          (c) a drawing;
280          (d) a poster;
281          (e) a sign;

282          (f) a signboard; or
283          (g) a scoreboard.
284          [(15)] (17) "Brewer" means a person engaged in manufacturing:
285          (a) beer;
286          (b) heavy beer; or
287          (c) a flavored malt beverage.
288          [(16)] (18) "Brewery manufacturing license" means a license issued in accordance with
289     Chapter 11, Part 5, Brewery Manufacturing License.
290          [(17)] (19) "Certificate of approval" means a certificate of approval obtained from the
291     department under Section 32B-11-201.
292          [(18)] (20) "Chartered bus" means a passenger bus, coach, or other motor vehicle
293     provided by a bus company to a group of persons pursuant to a common purpose:
294          (a) under a single contract;
295          (b) at a fixed charge in accordance with the bus company's tariff; and
296          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
297     motor vehicle, and a driver to travel together to one or more specified destinations.
298          [(19)] (21) "Church" means a building:
299          (a) set apart for worship;
300          (b) in which religious services are held;
301          (c) with which clergy is associated; and
302          (d) that is tax exempt under the laws of this state.
303          [(20)] (22) "Commission" means the Alcoholic Beverage Control Commission created
304     in Section 32B-2-201.
305          [(21)] (23) "Commissioner" means a member of the commission.
306          [(22)] (24) "Community location" means:
307          (a) a public or private school;
308          (b) a church;
309          (c) a public library;

310          (d) a public playground; or
311          (e) a public park.
312          [(23)] (25) "Community location governing authority" means:
313          (a) the governing body of the community location; or
314          (b) if the commission does not know who is the governing body of a community
315     location, a person who appears to the commission to have been given on behalf of the
316     community location the authority to prohibit an activity at the community location.
317          [(24)] (26) "Container" means a receptacle that contains an alcoholic product,
318     including:
319          (a) a bottle;
320          (b) a vessel; or
321          (c) a similar item.
322          [(25)] (27) "Convention center" means a facility that is:
323          (a) in total at least 30,000 square feet; and
324          (b) otherwise defined as a "convention center" by the commission by rule.
325          [(26)] (28) (a) "Counter" means a surface or structure in a dining area of a licensed
326     premises where seating is provided to a patron for service of food.
327          (b) "Counter" does not include a dispensing structure.
328          [(27)] (29) "Crime involving moral turpitude" is as defined by the commission by rule.
329          [(28)] (30) "Department" means the Department of Alcoholic Beverage Control created
330     in Section 32B-2-203.
331          [(29)] (31) "Department compliance officer" means an individual who is:
332          (a) an auditor or inspector; and
333          (b) employed by the department.
334          [(30)] (32) "Department sample" means liquor that is placed in the possession of the
335     department for testing, analysis, and sampling.
336          [(31)] (33) "Dining club license" means a license issued in accordance with Chapter 5,
337     Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the

338     commission as a dining club license.
339          [(32)] (34) "Director," unless the context requires otherwise, means the director of the
340     department.
341          [(33)] (35) "Disciplinary proceeding" means an adjudicative proceeding permitted
342     under this title:
343          (a) against a person subject to administrative action; and
344          (b) that is brought on the basis of a violation of this title.
345          [(34)] (36) (a) Subject to Subsection [(34)] (36)(b), "dispense" means:
346          (i) drawing an alcoholic product; and
347          (ii) using the alcoholic product at the location from which it was drawn to mix or
348     prepare an alcoholic product to be furnished to a patron of the retail licensee.
349          (b) The definition of "dispense" in this Subsection [(34)] (36) applies only to:
350          (i) a full-service restaurant license;
351          (ii) a limited-service restaurant license;
352          (iii) a reception center license; and
353          (iv) a beer-only restaurant license.
354          [(35)] (37) "Dispensing structure" means a surface or structure on a licensed premises:
355          (a) where an alcoholic product is dispensed; or
356          (b) from which an alcoholic product is served.
357          [(36)] (38) "Distillery manufacturing license" means a license issued in accordance
358     with Chapter 11, Part 4, Distillery Manufacturing License.
359          [(37)] (39) "Distressed merchandise" means an alcoholic product in the possession of
360     the department that is saleable, but for some reason is unappealing to the public.
361          [(38) "Educational facility" includes:]
362          [(a) a nursery school;]
363          [(b) an infant day care center; and]
364          [(c) a trade and technical school.]
365          [(39)] (40) "Equity license" means a license issued in accordance with Chapter 5,

366     Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
367     commission as an equity license.
368          [(40)] (41) "Event permit" means:
369          (a) a single event permit; or
370          (b) a temporary beer event permit.
371          [(41)] (42) "Exempt license" means a license exempt under Section 32B-1-201 from
372     being considered in determining the total number of retail licenses that the commission may
373     issue at any time.
374          [(42)] (43) (a) "Flavored malt beverage" means a beverage:
375          (i) that contains at least .5% alcohol by volume;
376          (ii) that is treated by processing, filtration, or another method of manufacture that is not
377     generally recognized as a traditional process in the production of a beer as described in 27
378     C.F.R. Sec. 25.55;
379          (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
380     extract; and
381          (iv) (A) for which the producer is required to file a formula for approval with the
382     federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
383          (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
384          (b) "Flavored malt beverage" is considered liquor for purposes of this title.
385          [(43)] (44) "Fraternal license" means a license issued in accordance with Chapter 5,
386     Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
387     commission as a fraternal license.
388          [(44)] (45) "Full-service restaurant license" means a license issued in accordance with
389     Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-Service Restaurant License.
390          [(45)] (46) (a) "Furnish" means by any means to provide with, supply, or give an
391     individual an alcoholic product, by sale or otherwise.
392          (b) "Furnish" includes to:
393          (i) serve;

394          (ii) deliver; or
395          (iii) otherwise make available.
396          [(46)] (47) "Guest" means an individual who meets the requirements of Subsection
397     32B-6-407(9).
398          [(47)] (48) "Hard cider" means the same as that term is defined in 26 U.S.C. Sec. 5041.
399          [(48)] (49) "Health care practitioner" means:
400          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
401          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
402          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
403          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
404     Act;
405          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
406     Nurse Practice Act;
407          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
408     Practice Act;
409          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
410     Therapy Practice Act;
411          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
412          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
413     Professional Practice Act;
414          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
415          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
416     Practice Act;
417          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
418     Hygienist Practice Act; and
419          (m) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
420     Assistant Act.
421          [(49)] (50) (a) "Heavy beer" means a product that:

422          (i) contains more than 5% alcohol by volume; and
423          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
424          (b) "Heavy beer" is considered liquor for the purposes of this title.
425          (51) "Hospitality amenity license" means a license issued in accordance with Chapter
426     5, Retail License Act, and Chapter 6, Part 10, Hospitality Amenity License.
427          [(50)] (52) "Hotel" means a commercial lodging establishment that:
428          (a) offers at least [30] 40 rooms as temporary sleeping accommodations for
429     compensation;
430          (b) is capable of hosting conventions, conferences, and food and beverage functions
431     under a banquet contract; and
432          (c) (i) has adequate kitchen or culinary facilities on the premises to provide complete
433     meals; or
434          (ii) (A) has at least 1,000 square feet of function space consisting of meeting or dining
435     rooms that can be reserved for private use under a banquet contract [that] and can
436     accommodate at least 75 individuals; or
437          (B) if the establishment is located in a small or unincorporated locality, has an
438     appropriate amount of function space consisting of meeting or dining rooms that can be
439     reserved for private use under a banquet contract, as determined by the commission.
440          [(51)] (53) "Hotel license" means a license issued in accordance with Chapter 5, Retail
441     License Act, and Chapter 8b, Hotel License Act.
442          [(52)] (54) "Identification card" means an identification card issued under Title 53,
443     Chapter 3, Part 8, Identification Card Act.
444          [(53)] (55) "Industry representative" means an individual who is compensated by
445     salary, commission, or other means for representing and selling an alcoholic product of a
446     manufacturer, supplier, or importer of liquor.
447          [(54)] (56) "Industry representative sample" means liquor that is placed in the
448     possession of the department for testing, analysis, and sampling by a local industry
449     representative on the premises of the department to educate the local industry representative of

450     the quality and characteristics of the product.
451          [(55)] (57) "Interdicted person" means a person to whom the sale, offer for sale, or
452     furnishing of an alcoholic product is prohibited by:
453          (a) law; or
454          (b) court order.
455          [(56)] (58) "Intoxicated" means that a person:
456          (a) is significantly impaired as to the person's mental or physical functions as a result of
457     the use of:
458          (i) an alcoholic product;
459          (ii) a controlled substance;
460          (iii) a substance having the property of releasing toxic vapors; or
461          (iv) a combination of Subsections [(56)] (58)(a)(i) through (iii); and
462          (b) exhibits plain and easily observed outward manifestations of behavior or physical
463     signs produced by the overconsumption of an alcoholic product.
464          [(57)] (59) "Investigator" means an individual who is:
465          (a) a department compliance officer; or
466          (b) a nondepartment enforcement officer.
467          [(58) "Invitee" means the same as that term is defined in Section 32B-8-102.]
468          [(59)] (60) "License" means:
469          (a) a retail license;
470          (b) a sublicense;
471          [(b)] (c) a license issued in accordance with Chapter 11, Manufacturing and Related
472     Licenses Act;
473          [(c)] (d) a license issued in accordance with Chapter 12, Liquor Warehousing License
474     Act;
475          [(d)] (e) a license issued in accordance with Chapter 13, Beer Wholesaling License
476     Act; or
477          [(e)] (f) a license issued in accordance with Chapter 17, Liquor Transport License Act.

478          [(60)] (61) "Licensee" means a person who holds a license.
479          [(61)] (62) "Limited-service restaurant license" means a license issued in accordance
480     with Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-Service Restaurant License.
481          [(62)] (63) "Limousine" means a motor vehicle licensed by the state or a local
482     authority, other than a bus or taxicab:
483          (a) in which the driver and a passenger are separated by a partition, glass, or other
484     barrier;
485          (b) that is provided by a business entity to one or more individuals at a fixed charge in
486     accordance with the business entity's tariff; and
487          (c) to give the one or more individuals the exclusive use of the limousine and a driver
488     to travel to one or more specified destinations.
489          [(63)] (64) (a) (i) "Liquor" means a liquid that:
490          (A) is:
491          (I) alcohol;
492          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
493          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
494          (IV) other drink or drinkable liquid; and
495          (B) (I) contains at least .5% alcohol by volume; and
496          (II) is suitable to use for beverage purposes.
497          (ii) "Liquor" includes:
498          (A) heavy beer;
499          (B) wine; and
500          (C) a flavored malt beverage.
501          (b) "Liquor" does not include beer.
502          [(64)] (65) "Liquor Control Fund" means the enterprise fund created by Section
503     32B-2-301.
504          [(65)] (66) "Liquor transport license" means a license issued in accordance with
505     Chapter 17, Liquor Transport License Act.

506          [(66)] (67) "Liquor warehousing license" means a license that is issued:
507          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
508          (b) to a person, other than a licensed manufacturer, who engages in the importation for
509     storage, sale, or distribution of liquor regardless of amount.
510          [(67)] (68) "Local authority" means:
511          (a) for premises that are located in an unincorporated area of a county, the governing
512     body of a county;
513          (b) for premises that are located in an incorporated city, town, or metro township, the
514     governing body of the city, town, or metro township; or
515          (c) for premises that are located in a project area as defined in Section 63H-1-201 and
516     in a project area plan adopted by the Military Installation Development Authority under Title
517     63H, Chapter 1, Military Installation Development Authority Act, the Military Installation
518     Development Authority.
519          [(68)] (69) "Lounge or bar area" is as defined by rule made by the commission.
520          [(69)] (70) "Manufacture" means to distill, brew, rectify, mix, compound, process,
521     ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
522     others.
523          [(70)] (71) "Member" means an individual who, after paying regular dues, has full
524     privileges in an equity licensee or fraternal licensee.
525          [(71)] (72) (a) "Military installation" means a base, air field, camp, post, station, yard,
526     center, or homeport facility for a ship:
527          (i) (A) under the control of the United States Department of Defense; or
528          (B) of the National Guard;
529          (ii) that is located within the state; and
530          (iii) including a leased facility.
531          (b) "Military installation" does not include a facility used primarily for:
532          (i) civil works;
533          (ii) a rivers and harbors project; or

534          (iii) a flood control project.
535          [(72)] (73) "Minibar" means an area of a hotel guest room where one or more alcoholic
536     products are kept and offered for self-service sale or consumption.
537          [(73)] (74) "Minor" means an individual under the age of 21 years.
538          [(74)] (75) "Nondepartment enforcement agency" means an agency that:
539          (a) (i) is a state agency other than the department; or
540          (ii) is an agency of a county, city, town, or metro township; and
541          (b) has a responsibility to enforce one or more provisions of this title.
542          [(75)] (76) "Nondepartment enforcement officer" means an individual who is:
543          (a) a peace officer, examiner, or investigator; and
544          (b) employed by a nondepartment enforcement agency.
545          [(76)] (77) (a) "Off-premise beer retailer" means a beer retailer who is:
546          (i) licensed in accordance with Chapter 7, Off-Premise Beer Retailer Act; and
547          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
548     premises.
549          (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
550          [(77)] (78) "Off-premise beer retailer state license" means a state license issued in
551     accordance with Chapter 7, Part 4, Off-Premise Beer Retailer State License.
552          [(78)] (79) "On-premise banquet license" means a license issued in accordance with
553     Chapter 5, Retail License Act, and Chapter 6, Part 6, On-Premise Banquet License.
554          [(79)] (80) "On-premise beer retailer" means a beer retailer who is:
555          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
556     accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-Premise Beer
557     Retailer License; and
558          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
559     premises:
560          (i) regardless of whether the beer retailer sells beer for consumption off the licensed
561     premises; and

562          (ii) on and after March 1, 2012, operating:
563          (A) as a tavern; or
564          (B) in a manner that meets the requirements of Subsection 32B-6-703(2)(e)(i).
565          [(80)] (81) "Opaque" means impenetrable to sight.
566          [(81)] (82) "Package agency" means a retail liquor location operated:
567          (a) under an agreement with the department; and
568          (b) by a person:
569          (i) other than the state; and
570          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
571     Agency, to sell packaged liquor for consumption off the premises of the package agency.
572          [(82)] (83) "Package agent" means a person who holds a package agency.
573          [(83)] (84) "Patron" means an individual to whom food, beverages, or services are sold,
574     offered for sale, or furnished, or who consumes an alcoholic product including:
575          (a) a customer;
576          (b) a member;
577          (c) a guest;
578          (d) an attendee of a banquet or event;
579          (e) an individual who receives room service;
580          (f) a resident of a resort; or
581          [(g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102;
582     or]
583          [(h) an invitee.]
584          (g) a hospitality guest, as defined in Section 32B-6-1002, under a hospitality amenity
585     license.
586          [(84)] (85) (a) "Performing arts facility" means a multi-use performance space that:
587          (i) is primarily used to present various types of performing arts, including dance,
588     music, and theater;
589          (ii) contains over 2,500 seats;

590          (iii) is owned and operated by a governmental entity; and
591          (iv) is located in a city of the first class.
592          (b) "Performing arts facility" does not include a space that is used to present sporting
593     events or sporting competitions.
594          [(85)] (86) "Permittee" means a person issued a permit under:
595          (a) Chapter 9, Event Permit Act; or
596          (b) Chapter 10, Special Use Permit Act.
597          [(86)] (87) "Person subject to administrative action" means:
598          (a) a licensee;
599          (b) a permittee;
600          (c) a manufacturer;
601          (d) a supplier;
602          (e) an importer;
603          (f) one of the following holding a certificate of approval:
604          (i) an out-of-state brewer;
605          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
606          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
607          (g) staff of:
608          (i) a person listed in Subsections [(86)] (87)(a) through (f); or
609          (ii) a package agent.
610          [(87)] (88) "Premises" means a building, enclosure, or room used in connection with
611     the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic
612     product, unless otherwise defined in this title or rules made by the commission.
613          [(88)] (89) "Prescription" means an order issued by a health care practitioner when:
614          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
615     to prescribe a controlled substance, other drug, or device for medicinal purposes;
616          (b) the order is made in the course of that health care practitioner's professional
617     practice; and

618          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
619          (90) (a) "Primary spirituous liquor" means the main distilled spirit in a beverage.
620          (b) "Primary spirituous liquor" does not include a secondary flavoring ingredient.
621          (91) "Principal license" means:
622          (a) a resort license;
623          (b) a hotel license; or
624          (c) an arena license.
625          [(89)] (92) (a) "Private event" means a specific social, business, or recreational event:
626          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
627     group; and
628          (ii) that is limited in attendance to people who are specifically designated and their
629     guests.
630          (b) "Private event" does not include an event to which the general public is invited,
631     whether for an admission fee or not.
632          (93) "Privately sponsored event" means a specific social, business, or recreational
633     event:
634          (a) that is held in or on the premises of an on-premise banquet licensee; and
635          (b) to which entry is restricted by an admission fee.
636          [(90)] (94) (a) "Proof of age" means:
637          (i) an identification card;
638          (ii) an identification that:
639          (A) is substantially similar to an identification card;
640          (B) is issued in accordance with the laws of a state other than Utah in which the
641     identification is issued;
642          (C) includes date of birth; and
643          (D) has a picture affixed;
644          (iii) a valid driver license certificate that:
645          (A) includes date of birth;

646          (B) has a picture affixed; and
647          (C) is issued:
648          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
649          (II) in accordance with the laws of the state in which it is issued;
650          (iv) a military identification card that:
651          (A) includes date of birth; and
652          (B) has a picture affixed; or
653          (v) a valid passport.
654          (b) "Proof of age" does not include a driving privilege card issued in accordance with
655     Section 53-3-207.
656          (95) "Provisions applicable to a sublicense" means:
657          (a) for a full-service restaurant sublicense, the provisions applicable to a full-service
658     restaurant license under Chapter 6, Part 2, Full-Service Restaurant License;
659          (b) for a limited-service restaurant sublicense, the provisions applicable to a
660     limited-service restaurant license under Chapter 6, Part 3, Limited-Service Restaurant License;
661          (c) for a bar establishment sublicense, the provisions applicable to a bar establishment
662     license under Chapter 6, Part 4, Bar Establishment License;
663          (d) for an on-premise banquet sublicense, the provisions applicable to an on-premise
664     banquet license under Chapter 6, Part 6, On-Premise Banquet License;
665          (e) for an on-premise beer retailer sublicense, the provisions applicable to an
666     on-premise beer retailer license under Chapter 6, Part 7, On-Premise Beer Retailer license;
667          (f) for a beer-only restaurant sublicense, the provisions applicable to a beer-only
668     restaurant license under Chapter 6, Part 9, Beer-Only Restaurant License;
669          (g) for a hospitality amenity license, the provisions applicable to a hospitality amenity
670     license under Chapter 6, Part 10, Hospitality Amenity License; and
671          (h) for a resort spa sublicense, the provisions applicable to the sublicense under
672     Chapter 8d, Part 2, Resort Spa Sublicense.
673          [(91)] (96) (a) "Public building" means a building or permanent structure that is:

674          (i) owned or leased by:
675          (A) the state; or
676          (B) a local government entity; and
677          (ii) used for:
678          (A) public education;
679          (B) transacting public business; or
680          (C) regularly conducting government activities.
681          (b) "Public building" does not include a building owned by the state or a local
682     government entity when the building is used by a person, in whole or in part, for a proprietary
683     function.
684          [(92)] (97) "Public conveyance" means a conveyance that the public or a portion of the
685     public has access to and a right to use for transportation, including an airline, railroad, bus,
686     boat, or other public conveyance.
687          [(93)] (98) "Reception center" means a business that:
688          (a) operates facilities that are at least 5,000 square feet; and
689          (b) has as its primary purpose the leasing of the facilities described in Subsection [(93)]
690     (98)(a) to a third party for the third party's event.
691          [(94)] (99) "Reception center license" means a license issued in accordance with
692     Chapter 5, Retail License Act, and Chapter 6, Part 8, Reception Center License.
693          [(95)] (100) (a) "Record" means information that is:
694          (i) inscribed on a tangible medium; or
695          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
696          (b) "Record" includes:
697          (i) a book;
698          (ii) a book of account;
699          (iii) a paper;
700          (iv) a contract;
701          (v) an agreement;

702          (vi) a document; or
703          (vii) a recording in any medium.
704          [(96)] (101) "Residence" means a person's principal place of abode within Utah.
705          [(97)] (102) "Resident," in relation to a resort, means the same as that term is defined
706     in Section 32B-8-102.
707          [(98)] (103) "Resort" means the same as that term is defined in Section 32B-8-102.
708          [(99)] (104) "Resort facility" is as defined by the commission by rule.
709          (105) "Resort spa sublicense" means a resort license sublicense issued in accordance
710     with Chapter 8d, Part 2, Resort Spa Sublicense.
711          [(100)] (106) "Resort license" means a license issued in accordance with Chapter 5,
712     Retail License Act, and Chapter 8, Resort License Act.
713          [(101)] (107) "Responsible alcohol service plan" means a written set of policies and
714     procedures that outlines measures to prevent employees from:
715          (a) over-serving alcoholic beverages to customers;
716          (b) serving alcoholic beverages to customers who are actually, apparently, or obviously
717     intoxicated; and
718          (c) serving alcoholic beverages to minors.
719          [(102)] (108) "Restaurant" means a business location:
720          (a) at which a variety of foods are prepared;
721          (b) at which complete meals are served; and
722          (c) that is engaged primarily in serving meals.
723          (109) "Restaurant license" means one of the following licenses issued under this title:
724          (a) a full-service restaurant license;
725          (b) a limited-service restaurant license; or
726          (c) a beer-only restaurant license.
727          [(103)] (110) "Retail license" means one of the following licenses issued under this
728     title:
729          (a) a full-service restaurant license;

730          (b) a master full-service restaurant license;
731          (c) a limited-service restaurant license;
732          (d) a master limited-service restaurant license;
733          (e) a bar establishment license;
734          (f) an airport lounge license;
735          (g) an on-premise banquet license;
736          (h) an on-premise beer license;
737          (i) a reception center license;
738          (j) a beer-only restaurant license;
739          (k) a hospitality amenity license;
740          [(k)] (l) a resort license; [or]
741          [(l)] (m) a hotel license[.]; or
742          (n) an arena license.
743          [(104)] (111) "Room service" means furnishing an alcoholic product to a person in a
744     guest room of a:
745          (a) hotel; or
746          (b) resort facility.
747          [(105) (a) "School" means a building used primarily for the general education of
748     minors.]
749          (112) (a) "School" means a building in which any part is used for more than three
750     hours each weekday during a school year as a public or private:
751          (i) elementary school;
752          (ii) secondary school; or
753          (iii) kindergarten.
754          (b) "School" does not include [an educational facility.]:
755          (i) a nursery school;
756          (ii) a day care center;
757          (iii) a trade and technical school;

758          (iv) a preschool; or
759          (v) a home school.
760          (113) "Secondary flavoring ingredient" means any spirituous liquor added to a
761     beverage for additional flavoring that is different in type, flavor, or brand from the primary
762     spirituous liquor in the beverage.
763          [(106)] (114) "Sell" or "offer for sale" means a transaction, exchange, or barter
764     whereby, for consideration, an alcoholic product is either directly or indirectly transferred,
765     solicited, ordered, delivered for value, or by a means or under a pretext is promised or
766     obtained, whether done by a person as a principal, proprietor, or as staff, unless otherwise
767     defined in this title or the rules made by the commission.
768          [(107)] (115) "Serve" means to place an alcoholic product before an individual.
769          [(108)] (116) "Sexually oriented entertainer" means a person who while in a state of
770     seminudity appears at or performs:
771          (a) for the entertainment of one or more patrons;
772          (b) on the premises of:
773          (i) a bar licensee; or
774          (ii) a tavern;
775          (c) on behalf of or at the request of the licensee described in Subsection [(108)]
776     (116)(b);
777          (d) on a contractual or voluntary basis; and
778          (e) whether or not the person is designated as:
779          (i) an employee;
780          (ii) an independent contractor;
781          (iii) an agent of the licensee; or
782          (iv) a different type of classification.
783          (117) "Shared seating area" means the licensed premises of two or more restaurant
784     licensees that the restaurant licensees share as an area for alcoholic beverage consumption in
785     accordance with Subsection 32B-5-207(3).

786          [(109)] (118) "Single event permit" means a permit issued in accordance with Chapter
787     9, Part 3, Single Event Permit.
788          [(110)] (119) "Small brewer" means a brewer who manufactures less than 60,000
789     barrels of beer, heavy beer, and flavored malt beverages per year.
790          [(111)] (120) "Small or unincorporated locality" means:
791          (a) a city of the third, fourth, or fifth class, as classified under Section 10-2-301;
792          (b) a town, as classified under Section 10-2-301; or
793          (c) an unincorporated area in a county of the third, fourth, or fifth class, as classified
794     under Section 17-50-501.
795          [(112)] (121) "Special use permit" means a permit issued in accordance with Chapter
796     10, Special Use Permit Act.
797          [(113)] (122) (a) "Spirituous liquor" means liquor that is distilled.
798          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
799     27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
800          [(114)] (123) "Sports center" is as defined by the commission by rule.
801          [(115)] (124) (a) "Staff" means an individual who engages in activity governed by this
802     title:
803          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
804     holder;
805          (ii) at the request of the business, including a package agent, licensee, permittee, or
806     certificate holder; or
807          (iii) under the authority of the business, including a package agent, licensee, permittee,
808     or certificate holder.
809          (b) "Staff" includes:
810          (i) an officer;
811          (ii) a director;
812          (iii) an employee;
813          (iv) personnel management;

814          (v) an agent of the licensee, including a managing agent;
815          (vi) an operator; or
816          (vii) a representative.
817          [(116)] (125) "State of nudity" means:
818          (a) the appearance of:
819          (i) the nipple or areola of a female human breast;
820          (ii) a human genital;
821          (iii) a human pubic area; or
822          (iv) a human anus; or
823          (b) a state of dress that fails to opaquely cover:
824          (i) the nipple or areola of a female human breast;
825          (ii) a human genital;
826          (iii) a human pubic area; or
827          (iv) a human anus.
828          [(117)] (126) "State of seminudity" means a state of dress in which opaque clothing
829     covers no more than:
830          (a) the nipple and areola of the female human breast in a shape and color other than the
831     natural shape and color of the nipple and areola; and
832          (b) the human genitals, pubic area, and anus:
833          (i) with no less than the following at its widest point:
834          (A) four inches coverage width in the front of the human body; and
835          (B) five inches coverage width in the back of the human body; and
836          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
837          [(118)] (127) (a) "State store" means a facility for the sale of packaged liquor:
838          (i) located on premises owned or leased by the state; and
839          (ii) operated by a state employee.
840          (b) "State store" does not include:
841          (i) a package agency;

842          (ii) a licensee; or
843          (iii) a permittee.
844          [(119)] (128) (a) "Storage area" means an area on licensed premises where the licensee
845     stores an alcoholic product.
846          (b) "Store" means to place or maintain in a location an alcoholic product.
847          [(120)] (129) "Sublicense" means [the same as that term is defined in Section
848     32B-8-102 or 32B-8b-102.]:
849          (a) any of the following licenses issued as a subordinate license to, and contingent on
850     the issuance of, a principal license:
851          (i) a full-service restaurant license;
852          (ii) a limited-service restaurant license;
853          (iii) a bar establishment license;
854          (iv) an on-premise banquet license;
855          (v) an on-premise beer retailer license;
856          (vi) a beer-only restaurant license; or
857          (vii) a hospitality amenity license; or
858          (b) a resort spa sublicense.
859          [(121)] (130) "Supplier" means a person who sells an alcoholic product to the
860     department.
861          [(122)] (131) "Tavern" means an on-premise beer retailer who is:
862          (a) issued a license by the commission in accordance with Chapter 5, Retail License
863     Act, and Chapter 6, Part 7, On-Premise Beer Retailer License; and
864          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
865     On-Premise Beer Retailer License.
866          [(123)] (132) "Temporary beer event permit" means a permit issued in accordance with
867     Chapter 9, Part 4, Temporary Beer Event Permit.
868          [(124)] (133) "Temporary domicile" means the principal place of abode within Utah of
869     a person who does not have a present intention to continue residency within Utah permanently

870     or indefinitely.
871          [(125)] (134) "Translucent" means a substance that allows light to pass through, but
872     does not allow an object or person to be seen through the substance.
873          [(126)] (135) "Unsaleable liquor merchandise" means a container that:
874          (a) is unsaleable because the container is:
875          (i) unlabeled;
876          (ii) leaky;
877          (iii) damaged;
878          (iv) difficult to open; or
879          (v) partly filled;
880          (b) (i) has faded labels or defective caps or corks;
881          (ii) has contents that are:
882          (A) cloudy;
883          (B) spoiled; or
884          (C) chemically determined to be impure; or
885          (iii) contains:
886          (A) sediment; or
887          (B) a foreign substance; or
888          (c) is otherwise considered by the department as unfit for sale.
889          [(127)] (136) (a) "Wine" means an alcoholic product obtained by the fermentation of
890     the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or
891     not another ingredient is added.
892          (b) "Wine" includes:
893          (i) an alcoholic beverage defined as wine under 27 U.S.C. Sec. 211 and 27 C.F.R. Sec.
894     4.10; and
895          (ii) hard cider.
896          (c) "Wine" is considered liquor for purposes of this title, except as otherwise provided
897     in this title.

898          [(128)] (137) "Winery manufacturing license" means a license issued in accordance
899     with Chapter 11, Part 3, Winery Manufacturing License.
900          Section 2. Section 32B-1-202 is amended to read:
901          32B-1-202. Proximity to community location.
902          (1) As used in this section:
903          (a) (i) "Outlet" means:
904          (A) a state store;
905          (B) a package agency; or
906          (C) a retail licensee.
907          (ii) "Outlet" does not include:
908          (A) an airport lounge licensee; or
909          (B) a restaurant.
910          (b) "Restaurant" means:
911          (i) a full-service restaurant licensee;
912          (ii) a limited-service restaurant licensee; or
913          (iii) a beer-only restaurant licensee.
914          (2) (a) The commission may not issue a license for an outlet if, on the date the
915     commission takes final action to approve or deny the application, there is a community
916     location:
917          (i) within 600 feet of the proposed outlet , as measured from the nearest patron entrance
918     of the proposed outlet by following the shortest route of ordinary pedestrian travel to the
919     property boundary of the community location; or
920          (ii) within 200 feet of the proposed outlet , measured in a straight line from the nearest
921     patron entrance of the proposed outlet to the nearest property boundary of the community
922     location.
923          (b) The commission may not issue a license for a restaurant if, on the date the
924     commission takes final action to approve or deny the application, there is a community
925     location:

926          (i) within 300 feet of the proposed restaurant, as measured from the nearest patron
927     entrance of the proposed restaurant by following the shortest route of ordinary pedestrian travel
928     to the property boundary of the community location; or
929          (ii) within 200 feet of the proposed restaurant, measured in a straight line from the
930     nearest patron entrance of the proposed restaurant to the nearest property boundary of the
931     community location.
932          (3) (a) For an outlet or a restaurant that holds a license on May 9, 2017, and operates
933     under a previously approved variance to one or more proximity requirements in effect before
934     May 9, 2017, subject to the other provisions of this title, that outlet or restaurant, or another
935     outlet or restaurant with the same type of license as that outlet or restaurant, may operate under
936     the previously approved variance regardless of whether:
937          (i) the outlet or restaurant changes ownership;
938          (ii) the property on which the outlet or restaurant is located changes ownership; or
939          (iii) there is a lapse in the use of the property as an outlet or a restaurant with the same
940     type of license, unless during the lapse, the property is used for a different purpose.
941          (b) An outlet or a restaurant that has continuously operated at a location since before
942     January 1, 2007, is considered to have a previously approved variance.
943          (4) An outlet or restaurant that holds a license on May 12, 2020, and operates in
944     accordance with the proximity requirements in effect at the time the commission issued the
945     license or operates under a previously approved variance described in Subsection (3), subject to
946     the other provisions of this title, that outlet or restaurant or an outlet or a restaurant with the
947     same type of license as that outlet or restaurant may operate at the premises regardless of
948     whether:
949          (a) the outlet or restaurant changes ownership;
950          (b) the property on which the outlet or restaurant is located changes ownership; or
951          (c) there is a lapse of one year or less in the use of the property as an outlet or a
952     restaurant with the same type of license, unless during the lapse the property is used for a
953     different purpose.

954          [(4)] (5) (a) If, after an outlet or a restaurant obtains a license under this title, a person
955     establishes a community location on a property that puts the outlet or restaurant in violation of
956     the proximity requirements in effect at the time the license is issued or a previously approved
957     variance described in Subsection (3), subject to the other provisions of this title, that outlet or
958     restaurant, or an outlet or a restaurant with the same type of license as that outlet or restaurant,
959     may operate at the premises regardless of whether:
960          (i) the outlet or restaurant changes ownership;
961          (ii) the property on which the outlet or restaurant is located changes ownership; or
962          (iii) there is a lapse in the use of the property as an outlet or a restaurant with the same
963     type of license, unless during the lapse the property is used for a different purpose.
964          (b) The provisions of this Subsection [(4)] (5) apply regardless of when the outlet's or
965     restaurant's license is issued.
966          [(5)] (6) Nothing in this section prevents the commission from considering the
967     proximity of an educational, religious, and recreational facility, or any other relevant factor in
968     reaching a decision on a proposed location of an outlet.
969          Section 3. Section 32B-1-206 is amended to read:
970          32B-1-206. Advertising prohibited -- Exceptions.
971          (1) (a) The department may not advertise liquor, except:
972          (i) the department may provide for an appropriate sign in the window or on the front of
973     a state store or package agency denoting that it is a state authorized liquor retail facility;
974          (ii) the department or a package agency may provide a printed price list to the public;
975          (iii) the department may authorize the use of price posting and floor stacking of liquor
976     within a state store;
977          (iv) subject to Subsection (1)(b), the department may provide a listing of the address
978     and telephone number of a state store in one or more printed or electronic directories available
979     to the general public; and
980          (v) subject to Subsection (1)(b), a package agency may provide a listing of its address
981     and telephone number in one or more printed or electronic directories available to the general

982     public.
983          (b) A listing under Subsection (1)(a)(iv) or (v) in the business or yellow pages of a
984     telephone directory may not be displayed in an advertisement or other promotional format.
985          (2) (a) The department may not advertise an alcoholic product on a billboard.
986          (b) A package agency may not advertise an alcoholic product on a billboard, except to
987     the extent allowed by the commission by rule.
988          (3) (a) The department may not display liquor or a price list in a window or showcase
989     visible to passersby.
990          (b) A package agency may not display liquor or a price list in a window or showcase
991     visible to passersby, except to the extent allowed by the commission by rule.
992          (4) Advertising of an alcoholic product may not:
993          (a) promote the intoxicating effects of alcohol; or
994          (b) emphasize the high alcohol content of the alcoholic product.
995          [(4)] (5) Except to the extent prohibited by this title, the advertising of an alcoholic
996     product is allowed under guidelines established by the commission by rule.
997          [(5)] (6) The advertising or use of any means or media to offer an alcoholic product to
998     the general public without charge is prohibited.
999          Section 4. Section 32B-1-208 is enacted to read:
1000          32B-1-208. Percentage lease agreements.
1001          (1) As used in this section:
1002          (a) "Percentage lease agreement" means a lease agreement in which the lessee:
1003          (i) is a retail licensee; and
1004          (ii) pays the lessor:
1005          (A) a base rent; and
1006          (B) percentage rent.
1007          (b) "Percentage rent" means a percentage:
1008          (i) agreed upon between a lessor and lessee; and
1009          (ii) of the total sales revenue that:

1010          (A) exceed a fixed dollar amount of sales revenue; and
1011          (B) the lessee earns while doing business on the rental premises.
1012          (2) (a) The parties to a percentage lease agreement shall submit a copy of the
1013     percentage lease agreement to the department.
1014          (b) If there is a material change to the percentage lease agreement submitted to the
1015     department under Subsection (2)(a), the parties to the percentage lease agreement shall
1016     promptly submit a copy of the changed percentage lease agreement to the department.
1017          (3) If a percentage lease agreement requires a retail licensee to pay the lessor a
1018     percentage rent of 6% or less, the department may not conduct any further investigation into
1019     the percentage lease agreement.
1020          (4) The commission shall make rules in accordance with Title 63G, Chapter 3, Utah
1021     Administrative Rulemaking Act, establishing:
1022          (a) the maximum percentage of revenue from alcohol sales a percentage lease
1023     agreement may require; and
1024          (b) the procedure for submitting a percentage lease agreement under Subsection (2).
1025          Section 5. Section 32B-1-304 is amended to read:
1026          32B-1-304. Qualifications for a package agency, license, or permit -- Minors.
1027          (1) (a) [The] Except as provided in Subsection (7), the commission may not issue a
1028     package agency, license, or permit to a person who has been convicted of:
1029          (i) within seven years before the day on which the commission issues the package
1030     agency, license, or permit, a felony under a federal law or state law;
1031          (ii) within four years before the day on which the commission issues the package
1032     agency, license, or permit:
1033          (A) a violation of a federal law, state law, or local ordinance concerning the sale, offer
1034     for sale, warehousing, manufacture, distribution, transportation, or adulteration of an alcoholic
1035     product; or
1036          (B) a crime involving moral turpitude; or
1037          (iii) on two or more occasions within the five years before the day on which the

1038     package agency, license, or permit is issued, driving under the influence of alcohol, drugs, or
1039     the combined influence of alcohol and drugs.
1040          (b) If the person is a partnership, corporation, or limited liability company, the
1041     proscription under Subsection (1)(a) applies if any of the following has been convicted of an
1042     offense described in Subsection (1)(a):
1043          (i) a partner;
1044          (ii) a managing agent;
1045          (iii) a manager;
1046          (iv) an officer;
1047          (v) a director;
1048          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
1049     the corporation; or
1050          (vii) a member who owns at least 20% of the limited liability company.
1051          (c) [The] Except as provided in Subsection (7), the proscription under Subsection
1052     (1)(a) applies if a person who is employed to act in a supervisory or managerial capacity for a
1053     package agency, licensee, or permittee has been convicted of an offense described in
1054     Subsection (1)(a).
1055          (2) [The] Except as described in Section 32B-8-501, the commission may immediately
1056     suspend or revoke a package agency, license, or permit, and terminate a package agency
1057     agreement, if a person described in Subsection (1):
1058          (a) after the day on which the package agency, license, or permit is issued, is found to
1059     have been convicted of an offense described in Subsection (1)(a) before the package agency,
1060     license, or permit is issued; or
1061          (b) on or after the day on which the package agency, license, or permit is issued:
1062          (i) is convicted of an offense described in Subsection (1)(a)(i) or (ii); or
1063          (ii) (A) is convicted of driving under the influence of alcohol, drugs, or the combined
1064     influence of alcohol and drugs; and
1065          (B) was convicted of driving under the influence of alcohol, drugs, or the combined

1066     influence of alcohol and drugs within five years before the day on which the person is
1067     convicted of the offense described in Subsection (2)(b)(ii)(A).
1068          (3) [The] Except as described in Section 32B-8-501, the director may take emergency
1069     action by immediately suspending the operation of the package agency, licensee, or permittee
1070     for the period during which a criminal matter is being adjudicated if a person described in
1071     Subsection (1):
1072          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i) or (ii); or
1073          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
1074     drugs, or the combined influence of alcohol and drugs; and
1075          (ii) was convicted of driving under the influence of alcohol, drugs, or the combined
1076     influence of alcohol and drugs within five years before the day on which the person is arrested
1077     on a charge described in Subsection (3)(b)(i).
1078          (4) (a) (i) The commission may not issue a package agency, license, or permit to a
1079     person who has had any type of agency, license, or permit issued under this title revoked within
1080     the last three years.
1081          (ii) The commission may not issue a package agency, license, or permit to a
1082     partnership, corporation, or limited liability company if a partner, managing agent, manager,
1083     officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
1084     of the corporation, or member who owns at least 20% of the limited liability company is or
1085     was:
1086          (A) a partner or managing agent of a partnership that had any type of agency, license,
1087     or permit issued under this title revoked within the last three years;
1088          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
1089     of the total issued and outstanding stock of any corporation that had any type of agency,
1090     license, or permit issued under this title revoked within the last three years; or
1091          (C) a manager or member who owns or owned at least 20% of a limited liability
1092     company that had any type of agency, license, or permit issued under this title revoked within
1093     the last three years.

1094          (b) The commission may not issue a package agency, licence, or permit to a
1095     partnership, corporation, or limited liability company if any of the following had any type of
1096     agency, license, or permit issued under this title revoked while acting in that person's individual
1097     capacity within the last three years:
1098          (i) a partner or managing agent of a partnership;
1099          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
1100     total issued and outstanding stock of a corporation; or
1101          (iii) a manager or member who owns at least 20% of a limited liability company.
1102          (c) The commission may not issue a package agency, license, or permit to a person
1103     acting in an individual capacity if that person was:
1104          (i) a partner or managing agent of a partnership that had any type of agency, license, or
1105     permit issued under this title revoked within the last three years;
1106          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
1107     total issued and outstanding stock of a corporation that had any type of agency, license, or
1108     permit issued under this title revoked within the last three years; or
1109          (iii) a manager or member who owned at least 20% of the limited liability company
1110     that had any type of agency, license, or permit issued under this title revoked within the last
1111     three years.
1112          (5) (a) The commission may not issue a package agency, license, or permit to a minor.
1113          (b) The commission may not issue a package agency, license, or permit to a
1114     partnership, corporation, or limited liability company if any of the following is a minor:
1115          (i) a partner or managing agent of the partnership;
1116          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
1117     total issued and outstanding stock of the corporation; or
1118          (iii) a manager or member who owns at least 20% of the limited liability company.
1119          (6) [If] Except as described in Section 32B-8-501, if a package agent, licensee, or
1120     permittee no longer possesses the qualifications required by this title for obtaining a package
1121     agency, license, or permit, the commission may terminate the package agency agreement, or

1122     revoke the license or permit.
1123          (7) If the licensee is a resort licensee:
1124          (a) Subsection (1)(a) only applies if an individual listed in Subsection (1)(b) engages in
1125     the management of the resort, as the commission defines in rule; and
1126          (b) Subsection (1)(c) only applies to an individual employed to act in a supervisory or
1127     managerial capacity for the resort licensee or in relation to a sublicense of the resort license.
1128          Section 6. Section 32B-1-305 is amended to read:
1129          32B-1-305. Requirement for a background check.
1130          (1) The department shall require an individual listed in Subsection (2), in accordance
1131     with this part, to:
1132          (a) provide a signed waiver from the individual whose fingerprints may be registered in
1133     the Federal Bureau of Investigation Rap Back system that notifies the signee:
1134          (i) that a criminal history background check will be conducted;
1135          (ii) who will see the information; and
1136          (iii) how the information will be used;
1137          (b) submit to a background check in a form acceptable to the department; and
1138          (c) consent to a background check by:
1139          (i) the Utah Bureau of Criminal Identification; and
1140          (ii) the Federal Bureau of Investigation.
1141          (2) The following shall comply with Subsection (1):
1142          (a) an individual applying for employment with the department if:
1143          (i) the department makes the decision to offer the individual employment with the
1144     department; and
1145          (ii) once employed, the individual will receive benefits;
1146          (b) an individual applying to the commission to operate a package agency;
1147          (c) an individual applying to the commission for a license, unless the license is an
1148     off-premise beer retailer state license;
1149          (d) an individual who with regard to an entity that is applying to the commission to

1150     operate a package agency or for a license is:
1151          (i) a partner;
1152          (ii) a managing agent;
1153          (iii) a manager;
1154          (iv) an officer;
1155          (v) a director;
1156          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of a
1157     corporation;
1158          (vii) a member who owns at least 20% of a limited liability company; or
1159          (viii) an individual employed to act in a supervisory or managerial capacity; or
1160          (e) an individual who becomes involved with an entity that operates a package agency
1161     or holds a license, if the individual is in a capacity listed in Subsection (2)(d) on or after the day
1162     on which the entity:
1163          (i) is approved to operate a package agency; or
1164          (ii) is licensed by the commission.
1165          (3) (a) Except as provided in Subsection (3)(b), the commission may not require an
1166     individual to comply with Subsection (1) based on the individual's position with or ownership
1167     interest in an entity that has an ownership interest in the entity that is applying for the package
1168     agency or license.
1169          (b) The commission may require an individual described in Subsection (3)(a) to
1170     comply with Subsection (1) if the individual exercises direct decision making control over the
1171     day-to-day operations of the package agency or licensee.
1172          (4) The department shall require compliance with Subsection (2)(e) as a condition of
1173     an entity's:
1174          (a) continued operation of a package agency; or
1175          (b) renewal of a license.
1176          (5) The department may require as a condition of continued employment that a
1177     department employee:

1178          (a) submit to a background check in a form acceptable to the department; and
1179          (b) consent to a fingerprint criminal background check by:
1180          (i) the Utah Bureau of Criminal Identification; and
1181          (ii) the Federal Bureau of Investigation.
1182          Section 7. Section 32B-1-607 is amended to read:
1183          32B-1-607. Rulemaking authority.
1184          (1) The commission may adopt rules necessary to implement this part.
1185          (2) Notwithstanding Subsections 32B-1-102[(10)](12) and [(49)] (50), in accordance
1186     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make
1187     rules that allow for a tolerance in the alcohol content of beer or heavy beer as follows:
1188          (a) up to 0.18% above or below when measured by volume; or
1189          (b) up to 0.15% above or below when measured by weight.
1190          Section 8. Section 32B-2-202 is amended to read:
1191          32B-2-202. Powers and duties of the commission.
1192          (1) The commission shall:
1193          (a) consistent with the policy established by the Legislature by statute, act as a general
1194     policymaking body on the subject of alcoholic product control;
1195          (b) adopt and issue policies, rules, and procedures;
1196          (c) set policy by written rules that establish criteria and procedures for:
1197          (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
1198     permit, or certificate of approval; and
1199          (ii) determining the location of a state store, package agency, or retail licensee;
1200          (d) decide within the limits, and under the conditions imposed by this title, the number
1201     and location of state stores, package agencies, and retail licensees in the state;
1202          (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
1203     sublicenses, permits, or certificates of approval for the purchase, storage, sale, offer for sale,
1204     furnishing, consumption, manufacture, and distribution of an alcoholic product:
1205          (i) a package agency;

1206          (ii) a full-service restaurant license;
1207          (iii) a master full-service restaurant license;
1208          (iv) a limited-service restaurant license;
1209          (v) a master limited-service restaurant license;
1210          (vi) a bar establishment license;
1211          (vii) an airport lounge license;
1212          (viii) an on-premise banquet license;
1213          (ix) a resort license, [under which at least] which includes four or more sublicenses
1214     [may be included];
1215          (x) an on-premise beer retailer license;
1216          (xi) a reception center license;
1217          (xii) a beer-only restaurant license;
1218          (xiii) a hotel license, [under which at least] which includes three or more sublicenses
1219     [may be included];
1220          (xiv) an arena license, which includes three or more sublicenses;
1221          (xv) a hospitality amenity license;
1222          [(xiv)] (xvi) subject to Subsection (4), a single event permit;
1223          [(xv)] (xvii) subject to Subsection (4), a temporary beer event permit;
1224          [(xvi)] (xviii) a special use permit;
1225          [(xvii)] (xix) a manufacturing license;
1226          [(xviii)] (xx) a liquor warehousing license;
1227          [(xix)] (xxi) a beer wholesaling license;
1228          [(xx)] (xxii) a liquor transport license;
1229          [(xxi)] (xxiii) an off-premise beer retailer state license;
1230          [(xxii)] (xxiv) a master off-premise beer retailer state license; [and]
1231          [(xxiii)] (xxv) one of the following that holds a certificate of approval:
1232          (A) an out-of-state brewer;
1233          (B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and

1234          (C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; and
1235          (xxvi) a resort spa sublicense;
1236          (f) issue, deny, suspend, or revoke the following conditional licenses:
1237          (i) a conditional retail license as defined in Section 32B-5-205; and
1238          (ii) a conditional off-premise beer retailer state license as defined in Section
1239     32B-7-406;
1240          (g) prescribe the duties of the department in assisting the commission in issuing a
1241     package agency, license, permit, or certificate of approval under this title;
1242          (h) to the extent a fee is not specified in this title, establish a fee allowed under this title
1243     in accordance with Section 63J-1-504;
1244          (i) fix prices at which liquor is sold that are the same at all state stores, package
1245     agencies, and retail licensees;
1246          (j) issue and distribute price lists showing the price to be paid by a purchaser for each
1247     class, variety, or brand of liquor kept for sale by the department;
1248          (k) (i) require the director to follow sound management principles; and
1249          (ii) require periodic reporting from the director to ensure that:
1250          (A) sound management principles are being followed; and
1251          (B) policies established by the commission are being observed;
1252          (l) (i) receive, consider, and act in a timely manner upon the reports, recommendations,
1253     and matters submitted by the director to the commission; and
1254          (ii) do the things necessary to support the department in properly performing the
1255     department's duties;
1256          (m) obtain temporarily and for special purposes the services of an expert or person
1257     engaged in the practice of a profession, or a person who possesses a needed skill if:
1258          (i) considered expedient; and
1259          (ii) approved by the governor;
1260          (n) prescribe by rule the conduct, management, and equipment of premises upon which
1261     an alcoholic product may be stored, sold, offered for sale, furnished, or consumed;

1262          (o) make rules governing the credit terms of beer sales within the state to retail
1263     licensees; and
1264          (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
1265     disciplinary action against a person subject to administrative action.
1266          (2) Consistent with the policy established by the Legislature by statute, the power of
1267     the commission to do the following is plenary, except as otherwise provided by this title, and
1268     not subject to review:
1269          (a) establish a state store;
1270          (b) issue authority to act as a package agent or operate a package agency; and
1271          (c) issue [or], deny, or deem forfeit a license, permit, or certificate of approval.
1272          (3) If the commission is authorized or required to make a rule under this title, the
1273     commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
1274     Rulemaking Act.
1275          (4) Notwithstanding Subsections [(1)(e)(xiv) and (xv)] (1)(e)(xvi) and (xvii), the
1276     director or deputy director may issue an event permit in accordance with Chapter 9, Event
1277     Permit Act.
1278          Section 9. Section 32B-2-605 is amended to read:
1279          32B-2-605. Operational requirements for package agency.
1280          (1) (a) A person may not operate a package agency until a package agency agreement is
1281     entered into by the package agent and the department.
1282          (b) A package agency agreement shall state the conditions of operation by which the
1283     package agent and the department are bound.
1284          (c) (i) If a package agent or staff of the package agent violates this title, rules under this
1285     title, or the package agency agreement, the department may take any action against the package
1286     agent that is allowed by the package agency agreement.
1287          (ii) An action against a package agent is governed solely by its package agency
1288     agreement and may include suspension or revocation of the package agency.
1289          (iii) A package agency agreement shall provide procedures to be followed if a package

1290     agent fails to pay money owed to the department including a procedure for replacing the
1291     package agent or operator of the package agency.
1292          (iv) A package agency agreement shall provide that the package agency is subject to
1293     covert investigations for selling an alcoholic product to a minor.
1294          (v) Notwithstanding that this part refers to "package agency" or "package agent," staff
1295     of the package agency or package agent is subject to the same requirement or prohibition.
1296          (2) (a) A package agency shall be operated by an individual who is either:
1297          (i) the package agent; or
1298          (ii) an individual designated by the package agent.
1299          (b) An individual who is a designee under this Subsection (2) shall be:
1300          (i) an employee of the package agent; and
1301          (ii) responsible for the operation of the package agency.
1302          (c) The conduct of the designee is attributable to the package agent.
1303          (d) A package agent shall submit the name of the person operating the package agency
1304     to the department for the department's approval.
1305          (e) A package agent shall state the name and title of a designee on the application for a
1306     package agency.
1307          (f) A package agent shall:
1308          (i) inform the department of a proposed change in the individual designated to operate
1309     a package agency; and
1310          (ii) receive prior approval from the department before implementing the change
1311     described in this Subsection (2)(f).
1312          (g) Failure to comply with the requirements of this Subsection (2) may result in the
1313     immediate termination of a package agency agreement.
1314          (3) (a) A package agent shall display in a prominent place in the package agency the
1315     record issued by the commission that designates the package agency.
1316          (b) A package agent that displays or stores liquor at a location visible to the public
1317     shall display in a prominent place in the package agency a sign in large letters that consists of

1318     text in the following order:
1319          (i) a header that reads: "WARNING";
1320          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
1321     can cause birth defects and permanent brain damage for the child.";
1322          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
1323     [insert most current toll-free number] with questions or for more information.";
1324          (iv) a header that reads: "WARNING"; and
1325          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
1326     serious crime that is prosecuted aggressively in Utah."
1327          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
1328     font style than the text described in Subsections (3)(b)(iv) and (v).
1329          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
1330     same font size.
1331          (d) The Department of Health shall work with the commission and department to
1332     facilitate consistency in the format of a sign required under this section.
1333          (4) A package agency may not display liquor or a price list in a window or showcase
1334     that is visible to passersby.
1335          (5) (a) A package agency may not purchase liquor from a person except from the
1336     department.
1337          (b) At the discretion of the department, the department may provide liquor [may be
1338     provided by the department] to a package agency for sale on consignment.
1339          (6) A package agency may not store, sell, offer for sale, or furnish liquor in a place
1340     other than as designated in the package agent's application, unless the package agent first
1341     applies for and receives approval from the department for a change of location within the
1342     package agency premises.
1343          (7) (a) [A] Except as provided in Subsection (7)(b), a package agency may not sell,
1344     offer for sale, or furnish liquor except at a price fixed by the commission.
1345          (b) A package agency may provide as room service one alcoholic product free of

1346     charge per guest reservation, per guest room, if:
1347          (i) the package agency is the type of package agency that authorizes the package
1348     agency to sell, offer for sale, or furnish an alcoholic product as part of room service;
1349          (ii) staff of the package agency provides the alcoholic product:
1350          (A) in person; and
1351          (B) only to an adult guest in the guest room;
1352          (iii) staff of the package agency does not leave the alcoholic product outside a guest
1353     room for retrieval by a guest; and
1354          (iv) the alcoholic product:
1355          (A) is not a spirituous liquor; and
1356          (B) is in an unopened container not to exceed 750 milliliters.
1357          (8) A package agency may not sell, offer for sale, or furnish liquor to:
1358          (a) a minor;
1359          (b) a person actually, apparently, or obviously intoxicated;
1360          (c) a known interdicted person; or
1361          (d) a known habitual drunkard.
1362          (9) (a) A package agency may not employ a minor to handle liquor.
1363          (b) (i) Staff of a package agency may not:
1364          (A) consume an alcoholic product on the premises of a package agency; or
1365          (B) allow any person to consume an alcoholic product on the premises of a package
1366     agency.
1367          (ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
1368          (10) (a) A package agency may not close or cease operation for a period longer than 72
1369     hours, unless:
1370          (i) the package agency notifies the department in writing at least seven days before the
1371     [closing] day on which the package agency closes or ceases operation; and
1372          (ii) the closure or cessation of operation is first approved by the department.
1373          (b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package

1374     agency shall immediately notify the department by telephone.
1375          (c) (i) The department may authorize a closure or cessation of operation for a period
1376     not to exceed 60 days.
1377          (ii) The department may extend the initial period described in Subsection (10)(c)(i) an
1378     additional 30 days upon written request of the package agency and upon a showing of good
1379     cause.
1380          (iii) A closure or cessation of operation may not exceed a total of 90 days without
1381     commission approval.
1382          (d) The notice required by Subsection (10)(a) shall include:
1383          (i) the dates of closure or cessation of operation;
1384          (ii) the reason for the closure or cessation of operation; and
1385          (iii) the date on which the package agency will reopen or resume operation.
1386          (e) Failure of a package agency to provide notice and to obtain department
1387     authorization before closure or cessation of operation results in an automatic termination of the
1388     package agency agreement effective immediately.
1389          (f) Failure of a package agency to reopen or resume operation by the approved date
1390     results in an automatic termination of the package agency agreement effective on that date.
1391          (11) A package agency may not transfer [its] the package agency's operations from one
1392     location to another location without prior written approval of the commission.
1393          (12) (a) A person, having been issued a package agency, may not sell, transfer, assign,
1394     exchange, barter, give, or attempt in any way to dispose of the package agency to another
1395     person, whether for monetary gain or not.
1396          (b) A package agency has no monetary value for any type of disposition.
1397          (13) (a) Subject to the other provisions of this Subsection (13):
1398          (i) sale or delivery of liquor may not be made on or from the premises of a package
1399     agency, and a package agency may not be kept open for the sale of liquor:
1400          (A) on Sunday; or
1401          (B) on a state or federal legal holiday.

1402          (ii) Sale or delivery of liquor may be made on or from the premises of a package
1403     agency, and a package agency may be open for the sale of liquor, only on a day and during
1404     hours that the commission directs by rule or order.
1405          (b) A package agency located at a manufacturing facility is not subject to Subsection
1406     (13)(a) if:
1407          (i) the package agency is located at a manufacturing facility licensed in accordance
1408     with Chapter 11, Manufacturing and Related Licenses Act;
1409          (ii) the manufacturing facility licensed in accordance with Chapter 11, Manufacturing
1410     and Related Licenses Act, holds:
1411          (A) a full-service restaurant license;
1412          (B) a limited-service restaurant license;
1413          (C) a beer-only restaurant license;
1414          (D) a dining club license; or
1415          (E) a bar license;
1416          (iii) the restaurant, dining club, or bar is located at the manufacturing facility;
1417          (iv) the restaurant, dining club, or bar sells an alcoholic product produced at the
1418     manufacturing facility;
1419          (v) the manufacturing facility:
1420          (A) owns the restaurant, dining club, or bar; or
1421          (B) operates the restaurant, dining club, or bar;
1422          (vi) the package agency only sells an alcoholic product produced at the manufacturing
1423     facility; and
1424          (vii) the package agency's days and hours of sale are the same as the days and hours of
1425     sale at the restaurant, dining club, or bar.
1426          (c) (i) Subsection (13)(a) does not apply to a package agency held by the following if
1427     the package agent that holds the package agency to sell liquor at a resort or hotel does not sell
1428     liquor in a manner similar to a state store:
1429          (A) a resort licensee; or

1430          (B) a hotel licensee.
1431          (ii) The commission may by rule define what constitutes a package agency that sells
1432     liquor "in a manner similar to a state store."
1433          (14) (a) Except to the extent authorized by commission rule, a minor may not be
1434     admitted into, or be on the premises of, a package agency unless accompanied by a person who
1435     is:
1436          (i) 21 years of age or older; and
1437          (ii) the minor's parent, legal guardian, or spouse.
1438          (b) A package agent or staff of a package agency that has reason to believe that a
1439     person who is on the premises of a package agency is under the age of 21 and is not
1440     accompanied by a person described in Subsection (14)(a) may:
1441          (i) ask the suspected minor for proof of age;
1442          (ii) ask the person who accompanies the suspected minor for proof of age; and
1443          (iii) ask the suspected minor or the person who accompanies the suspected minor for
1444     proof of parental, guardianship, or spousal relationship.
1445          (c) A package agent or staff of a package agency shall refuse to sell liquor to the
1446     suspected minor and to the person who accompanies the suspected minor into the package
1447     agency if the minor or person fails to provide any information specified in Subsection (14)(b).
1448          (d) A package agent or staff of a package agency shall require the suspected minor and
1449     the person who accompanies the suspected minor into the package agency to immediately leave
1450     the premises of the package agency if the minor or person fails to provide information specified
1451     in Subsection (14)(b).
1452          (15) (a) A package agency shall sell, offer for sale, or furnish liquor in a sealed
1453     container.
1454          (b) A person may not open a sealed container on the premises of a package agency.
1455          (c) Notwithstanding Subsection (15)(a), a package agency may sell, offer for sale, or
1456     furnish liquor in other than a sealed container:
1457          (i) if the package agency is the type of package agency that authorizes the package

1458     agency to sell, offer for sale, or furnish the liquor as part of room service;
1459          (ii) if the liquor is sold, offered for sale, or furnished as part of room service; and
1460          (iii) subject to:
1461          (A) staff of the package agency providing the liquor in person only to an adult guest in
1462     the guest room;
1463          (B) staff of the package agency not leaving the liquor outside a guest room for retrieval
1464     by a guest; and
1465          (C) the same limits on the portions in which an alcoholic product may be sold by a
1466     retail licensee under Section 32B-5-304.
1467          (16) On or after October 1, 2011, a package agency may not sell, offer for sale, or
1468     furnish heavy beer in a sealed container that exceeds two liters.
1469          (17) The department may pay or otherwise remunerate a package agent on any basis,
1470     including sales or volume of business done by the package agency.
1471          (18) The commission may prescribe by policy or rule general operational requirements
1472     of a package agency that are consistent with this title and relate to:
1473          (a) physical facilities;
1474          (b) conditions of operation;
1475          (c) hours of operation;
1476          (d) inventory levels;
1477          (e) payment schedules;
1478          (f) methods of payment;
1479          (g) premises security; and
1480          (h) any other matter considered appropriate by the commission.
1481          (19) A package agency may not maintain a minibar.
1482          Section 10. Section 32B-3-202 is amended to read:
1483          32B-3-202. Timing of reporting violations.
1484          [Except when the person subject to administrative action is staff:]
1485          [(1) A disciplinary proceeding may not be initiated or maintained by the commission or

1486     department on the basis, in whole or in part, of a violation of this title unless a person subject to
1487     administrative action against whom the violation is alleged is notified by the department of the
1488     violation in accordance with this section.]
1489          [(2) (a) A nondepartment enforcement agency or nondepartment enforcement officer
1490     may not report a violation of this title to the department more than eight business days after the
1491     day on which a nondepartment enforcement officer or agency completes an investigation that
1492     finds a violation of this title.]
1493          [(b) If the commission or department wants the right to initiate or maintain a
1494     disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged in a
1495     report described in Subsection (2)(a), the department shall notify a person subject to
1496     administrative action who is alleged by the report to have violated this title:]
1497          [(i) by no later than eight business days of the day on which the department receives
1498     the report described in Subsection (2)(a); and]
1499          [(ii) that the commission or department may initiate or maintain a disciplinary
1500     proceeding on the basis, in whole or in part, of the violation.]
1501          [(3) If the commission or department wants the right to initiate or maintain a
1502     disciplinary proceeding on the basis, in whole or in part, of a violation of this title alleged by a
1503     report of a department compliance officer, the department shall notify a person subject to
1504     administrative action who is alleged by the report to have violated this title:]
1505          [(a) by no later than eight business days of the day on which the department
1506     compliance officer completes an investigation that finds a violation of this title; and]
1507          [(b) that the commission or department may initiate or maintain a disciplinary
1508     proceeding on the basis, in whole or in part, of the violation.]
1509          (1) The department or the commission may not take administrative action against a
1510     person subject to administrative action before:
1511          (a) a nondepartment enforcement agency or enforcement officer or a department
1512     compliance officer submits to the department a report:
1513          (i) containing facts that could support a finding that the person subject to

1514     administrative action violated this title or a commission rule; and
1515          (ii) no more than eight business days after the day on which the nondepartment
1516     enforcement agency or officer or the compliance officer completes the investigation containing
1517     the facts described in Subsection (1)(a)(i); and
1518          (b) subject to Subsection (5), the department notifies the person subject to
1519     administrative action, no more than eight business days after the day on which the department
1520     receives the report described in Subsection (1)(a), that the commission or department:
1521          (i) received the report described in Subsection (1)(a); and
1522          (ii) may initiate or maintain a disciplinary proceeding on the basis, in whole or in part,
1523     on the facts contained in the report described in Subsection (1)(a).
1524          [(4)] (2) (a) [A] The department may provide the notice required [by] under this section
1525     [may be done] orally, if after the oral notification the department provides written notification.
1526          (b) The department may provide the written notification described in Subsection [(4)]
1527     (2)(a) [may be sent] outside the time periods required [by] under this section.
1528          [(5)] (3) The department shall maintain a record of a notification required [by] under
1529     this section that includes:
1530          (a) the name of the person notified; [and]
1531          (b) the date of the notification[.]; and
1532          (c) the type of notification given.
1533          (4) (a) The department may issue an order to show cause if the department receives a
1534     report described in Subsection (1)(a), containing facts that could support a finding that the
1535     person subject to administrative action violated:
1536          (i) this title regarding necessary licensing requirements; or
1537          (ii) a commission rule regarding necessary licensing requirements.
1538          (b) A necessary licensing requirement described in Subsection (4)(a) includes:
1539          (i) maintaining an approved, licensed premise;
1540          (ii) maintaining insurance;
1541          (iii) maintaining a bond;

1542          (iv) following the requirements in Section 32B-1-304, regarding qualifications;
1543          (v) maintaining required store hours;
1544          (vi) failing to utilize the license issued; or
1545          (vii) transferring a license in violation of Chapter 8a, Transfer of Alcohol License Act.
1546          (c) The department's issuance of an order to show cause in accordance with this
1547     Subsection (4):
1548          (i) does not initiate a disciplinary proceeding; and
1549          (ii) is not subject to Title 63G, Chapter 4, Administrative Procedures Act.
1550          (5) The department is not required to provide notice as described in Subsection (1)(b)
1551     if the person subject to administrative action is staff.
1552          Section 11. Section 32B-3-204 is amended to read:
1553          32B-3-204. Disciplinary proceeding procedure.
1554          (1) (a) Subject to Section 32B-3-202, the following may conduct an adjudicative
1555     proceeding to inquire into a matter necessary and proper for the administration of this title and
1556     rules adopted under this title:
1557          (i) the commission;
1558          (ii) a hearing examiner appointed by the commission to conduct a suspension,
1559     non-renewal, or revocation hearing required by law;
1560          (iii) the director; and
1561          (iv) the department.
1562          (b) Except as provided in this section or Section 32B-2-605, a person described in
1563     Subsection (1)(a) shall comply with Title 63G, Chapter 4, Administrative Procedures Act, in an
1564     adjudicative proceeding.
1565          (c) Except when otherwise provided by law, an adjudicative proceeding before the
1566     commission or a hearing examiner appointed by the commission shall be:
1567          (i) video or audio recorded; and
1568          (ii) subject to Subsection (3)(b), conducted in accordance with Title 52, Chapter 4,
1569     Open and Public Meetings Act.

1570          (d) A person listed in Subsection (1)(a) shall conduct an adjudicative proceeding
1571     concerning departmental personnel in accordance with Title 67, Chapter 19, Utah State
1572     Personnel Management Act.
1573          (e) A hearing that is informational, fact gathering, and nonadversarial in nature shall be
1574     conducted in accordance with rules, policies, and procedures made by the commission,
1575     director, or department.
1576          (2) (a) Subject to Section 32B-3-202, a disciplinary proceeding shall be conducted
1577     under the authority of the commission, which is responsible for rendering a final decision and
1578     order on a disciplinary matter.
1579          (b) (i) The commission may appoint a necessary officer, including a hearing examiner,
1580     from within or without the department, to administer the disciplinary proceeding process.
1581          (ii) A hearing examiner appointed by the commission:
1582          (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
1583          (B) shall submit to the commission a report including:
1584          (I) findings of fact determined on the basis of a preponderance of the evidence
1585     presented at the hearing;
1586          (II) conclusions of law; and
1587          (III) recommendations.
1588          (iii) A report of a hearing examiner under this Subsection (2)(b) may not recommend a
1589     penalty more severe than that initially sought by the department in the notice of agency action.
1590          (iv) A copy of a hearing examiner report under this Subsection (2)(b) shall be served
1591     upon the respective parties.
1592          (v) Before final commission action, the commission shall give a respondent and the
1593     department reasonable opportunity to file a written objection to a hearing examiner report.
1594          (3) (a) The commission or an appointed hearing examiner shall preside over a
1595     disciplinary proceeding hearing.
1596          (b) A disciplinary proceeding hearing may be closed only after the commission or
1597     hearing examiner makes a written finding that the public interest in an open hearing is clearly

1598     outweighed by factors enumerated in the closure order.
1599          (c) (i) The commission or [its] an appointed hearing examiner as part of a disciplinary
1600     proceeding hearing may:
1601          (A) administer an oath or affirmation;
1602          (B) take evidence, including evidence provided in relation to an order to show cause
1603     the department issued in accordance with Section 32B-3-202;
1604          (C) take a deposition within or without this state; and
1605          (D) require by subpoena from a place within this state:
1606          (I) the testimony of a person at a hearing; and
1607          (II) the production of a record or other evidence considered relevant to the inquiry.
1608          (ii) A person subpoenaed in accordance with this Subsection (3)(c) shall testify and
1609     produce a record or tangible thing as required in the subpoena.
1610          (iii) A witness subpoenaed, called to testify, or called to produce evidence who claims
1611     a privilege against self-incrimination may not be compelled to testify, but the commission or
1612     the hearing examiner shall file a written report with the county attorney or district attorney in
1613     the jurisdiction where the privilege is claimed or where the witness resides setting forth the
1614     circumstance of the claimed privilege.
1615          (iv) (A) A person is not excused from obeying a subpoena without just cause.
1616          (B) A district court within the judicial district in which a person alleged to be guilty of
1617     willful contempt of court or refusal to obey a subpoena is found or resides, upon application by
1618     the party issuing the subpoena, may issue an order requiring the person to:
1619          (I) appear before the issuing party; and
1620          (II) (Aa) produce documentary evidence if so ordered; or
1621          (Bb) give evidence regarding the matter in question.
1622          (C) Failure to obey an order of the court may be punished by the court as contempt.
1623          (d) In a case heard by the commission, the commission shall issue its final decision and
1624     order in accordance with Subsection (2).
1625          (4) (a) The commission shall:

1626          (i) render a final decision and order on a disciplinary action; and
1627          (ii) cause its final order to be prepared in writing, issued, and served on all parties.
1628          (b) An order of the commission is final on the date the order is issued.
1629          (c) The commission, after the commission renders its final decision and order, may
1630     require the director to prepare, issue, and cause to be served on the parties the final written
1631     order on behalf of the commission.
1632          (5) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by
1633     the commission or a hearing examiner appointed by the commission shall proceed formally in
1634     accordance with Sections 63G-4-204 through 63G-4-209 if:
1635          (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
1636     and welfare;
1637          (ii) the alleged violation involves:
1638          (A) selling or furnishing an alcoholic product to a minor;
1639          (B) attire, conduct, or entertainment prohibited by Chapter 1, Part 5, Attire, Conduct,
1640     and Entertainment Act;
1641          (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
1642     of the respondent;
1643          (D) interfering or refusing to cooperate with:
1644          (I) an authorized official of the department or the state in the discharge of the official's
1645     duties in relation to the enforcement of this title; or
1646          (II) a peace officer in the discharge of the peace officer's duties in relation to the
1647     enforcement of this title;
1648          (E) an unlawful trade practice under Chapter 4, Part 7, Trade Practices Act;
1649          (F) unlawful importation of an alcoholic product; or
1650          (G) unlawful supply of liquor by a liquor industry member, as defined in Section
1651     32B-4-702, to a person other than the department or a military installation, except to the extent
1652     permitted by this title; or
1653          (iii) the department determines to seek in a disciplinary proceeding hearing:

1654          (A) an administrative fine exceeding $3,000;
1655          (B) a suspension of a license, permit, or certificate of approval of more than 10 days; or
1656          (C) a revocation of a license, permit, or certificate of approval.
1657          (b) If a respondent does not request a disciplinary proceeding hearing, a hearing shall
1658     proceed informally unless it is designated as a formal proceeding pursuant to rules adopted by
1659     the commission in accordance with Subsection (5)(c).
1660          (c) The commission shall make rules to provide a procedure to implement this
1661     Subsection (5).
1662          (6) (a) If the department recommends nonrenewal of a license, the department shall
1663     notify the licensee of the recommendation at least 15 days before the commission takes action
1664     on the nonrenewal.
1665          (b) Notwithstanding Subsection (2), the commission shall appoint a hearing examiner
1666     to conduct an adjudicative hearing in accordance with this section if the licensee files a request
1667     for a hearing within 10 days of receipt of the notice under Subsection (6)(a).
1668          Section 12. Section 32B-4-415 is amended to read:
1669          32B-4-415. Unlawful bringing onto premises for consumption.
1670          (1) Except as provided in Subsection (4) and [Subsection 32B-5-307(4)] Section
1671     32B-5-307, a person may not bring an alcoholic product for on-premise consumption onto the
1672     premises of:
1673          (a) a retail licensee or person required to be licensed under this title as a retail licensee;
1674          (b) an establishment that conducts a business similar to a retail licensee;
1675          (c) an event where an alcoholic product is sold, offered for sale, or furnished under a
1676     single event permit or temporary beer event permit issued under this title;
1677          (d) an establishment open to the general public; or
1678          (e) the capitol hill complex.
1679          (2) Except as provided in Subsection (4) and [Subsection 32B-5-307(4)] Section
1680     32B-5-307, the following may not allow a person to bring onto its premises an alcoholic
1681     product for on-premise consumption or allow consumption of an alcoholic product brought

1682     onto its premises in violation of this section:
1683          (a) a retail licensee or a person required to be licensed under this title as a retail
1684     licensee;
1685          (b) an establishment that conducts a business similar to a retail licensee;
1686          (c) a single event permittee or temporary beer event permittee;
1687          (d) an establishment open to the general public;
1688          (e) the State Capitol Preservation Board created in Section 63C-9-201; or
1689          (f) staff of a person listed in Subsections (2)(a) through (e).
1690          (3) Except as provided in Subsection (4)(c)(i)(A), a person may not consume an
1691     alcoholic product in a limousine or chartered bus if the limousine or chartered bus drops off a
1692     passenger at:
1693          (a) a location from which the passenger departs in a private vehicle; or
1694          (b) the capitol hill complex.
1695          (4) (a) A person may bring bottled wine onto the premises of the following and
1696     consume the wine pursuant to Section 32B-5-307:
1697          (i) a full-service restaurant licensee;
1698          (ii) a limited restaurant licensee;
1699          (iii) a bar establishment licensee; or
1700          (iv) a person operating under a resort spa sublicense.
1701          (b) A passenger of a limousine may bring onto, possess, and consume an alcoholic
1702     product in the limousine if:
1703          (i) the travel of the limousine begins and ends at:
1704          (A) the residence of the passenger;
1705          (B) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
1706          (C) the temporary domicile of the passenger;
1707          (ii) the driver of the limousine is separated from the passengers by partition or other
1708     means approved by the department; and
1709          (iii) the limousine is not located on the capitol hill complex.

1710          (c) A passenger of a chartered bus may bring onto, possess, and consume an alcoholic
1711     product on the chartered bus:
1712          (i) (A) but may consume only during travel to a specified destination of the chartered
1713     bus and not during travel back to the place where the travel begins; or
1714          (B) if the travel of the chartered bus begins and ends at:
1715          (I) the residence of the passenger;
1716          (II) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
1717          (III) the temporary domicile of the passenger;
1718          (ii) if the chartered bus has a nondrinking designee other than the driver traveling on
1719     the chartered bus to monitor consumption; and
1720          (iii) if the chartered bus is not located on the capitol hill complex.
1721          (5) A person may bring onto any premises, possess, and consume an alcoholic product
1722     at a private event.
1723          (6) Notwithstanding Subsection (5), private and public facilities may prohibit the
1724     possession or consumption of alcohol on their premises.
1725          (7) The restrictions of Subsections (2) and (3) apply to a resort licensee or hotel
1726     licensee or person operating under a sublicense in relationship to:
1727          (a) the boundary of a resort building, as defined in Section 32B-8-102, or the boundary
1728     of a hotel, as defined in Section 32B-8b-102, in an area that is open to the public; or
1729          (b) except as provided in Subsection (4), [a sublicense] sublicensed premises.
1730          Section 13. Section 32B-4-422 is amended to read:
1731          32B-4-422. Unlawful dispensing.
1732          [(1) For purposes of this section:]
1733          [(a) "Primary spirituous liquor" means the main distilled spirit in a beverage.]
1734          [(b) "Primary spirituous liquor" does not include a secondary alcoholic product used as
1735     a flavoring in conjunction with the primary distilled spirit in a beverage.]
1736          [(2)] (1) A retail licensee licensed under this title to sell, offer for sale, or furnish
1737     spirituous liquor for consumption on the licensed premises, or staff of the retail licensee may

1738     not:
1739          (a) sell, offer for sale, or furnish a primary spirituous liquor to a person on the licensed
1740     premises except in a quantity that does not exceed 1.5 ounces per beverage dispensed through a
1741     calibrated metered dispensing system approved by the department;
1742          (b) sell, offer for sale, or furnish more than a total of 2.5 ounces of spirituous liquor per
1743     beverage;
1744          (c) allow a person on the licensed premises to have more than a total of 2.5 ounces of
1745     spirituous liquor at a time; or
1746          (d) (i) except as provided in Subsection [(2)] (1)(d)(ii), allow a person to have more
1747     than two spirituous liquor beverages at a time; or
1748          (ii) allow a person on the premises of the following to have more than one spirituous
1749     liquor beverage at a time:
1750          (A) a full-service restaurant licensee;
1751          (B) a person operating under a full-service restaurant sublicense;
1752          (C) an on-premise banquet licensee;
1753          (D) a person operating under an on-premise banquet sublicense; or
1754          (E) a single event permittee.
1755          [(3)] (2) A violation of this section is a class C misdemeanor.
1756          Section 14. Section 32B-5-201 is amended to read:
1757          32B-5-201. Application requirements for retail license.
1758          (1) (a) Before a person may store, sell, offer for sale, furnish, or permit consumption of
1759     an alcoholic product on licensed premises as a retail licensee, the person shall first obtain a
1760     retail license issued by the commission, notwithstanding whether the person holds a local
1761     license or a permit issued by a local authority.
1762          (b) Violation of this Subsection (1) is a class B misdemeanor.
1763          (2) To obtain a retail license under this title, a person shall submit to the department:
1764          (a) a written application in a form prescribed by the department;
1765          (b) a nonrefundable application fee in the amount specified in the relevant [part under

1766     Chapter 6, Specific Retail License Act,] chapter or part for the type of retail license for which
1767     the person is applying;
1768          (c) an initial license fee:
1769          (i) in the amount specified in the relevant [part under Chapter 6, Specific Retail
1770     License Act,] chapter or part for the type of retail license for which the person is applying; and
1771          (ii) that is refundable if a retail license is not issued;
1772          (d) written consent of the local authority, including, if applicable, consent for each
1773     proposed sublicense;
1774          (e) a copy of:
1775          (i) the person's current business license; and
1776          (ii) if the person is applying for a principal license, the current business license for each
1777     proposed sublicense, except if the relevant political subdivision determines that the business
1778     license for a proposed sublicense is included in the person's current business license;
1779          (f) evidence of the proposed retail licensee's proximity to any community location, with
1780     proximity requirements being governed by Section 32B-1-202;
1781          (g) a bond as specified by Section 32B-5-204;
1782          (h) a floor plan, and boundary map where applicable, of the premises of the retail
1783     license and each, if any, accompanying sublicense, including any:
1784          (i) consumption area; and
1785          (ii) area where the person proposes to store, sell, offer for sale, or furnish an alcoholic
1786     beverage;
1787          (i) evidence that the retail licensee [is carrying] carries public liability insurance in an
1788     amount and form satisfactory to the department;
1789          (j) evidence that the retail licensee [is carrying] carries dramshop insurance coverage of
1790     at least:
1791          (i) $1,000,000 per occurrence and $2,000,000 in the aggregate;
1792          (ii) if the retail licensee is a hotel licensee or a resort licensee, $1,000,000 per
1793     occurrence and $2,000,000 in the aggregate to cover both the principal license and all

1794     accompanying sublicenses; or
1795          (iii) if the retail licensee is an arena licensee, $10,000,000 per occurrence and
1796     $20,000,000 in the aggregate to cover both the arena license and all accompanying sublicenses.
1797          (k) a signed consent form stating that the retail licensee will permit any authorized
1798     representative of the commission, department, or any law enforcement officer to have
1799     unrestricted right to enter:
1800          (i) the premises of the retail licensee; and
1801          (ii) if applicable, the premises of each of the retail licensee's accompanying
1802     sublicenses;
1803          (l) if the person is an entity, proper verification evidencing that a person who signs the
1804     application is authorized to sign on behalf of the entity;
1805          (m) a responsible alcohol service plan; and
1806          (n) any other information the commission or department may require.
1807          (3) The commission may not issue a retail license to a person who:
1808          (a) is disqualified under Section 32B-1-304; or
1809          (b) is not lawfully present in the United States.
1810          (4) Unless otherwise provided in the relevant [part under Chapter 6, Specific Retail
1811     License Act,] chapter or part for the type of retail license for which the person is applying, the
1812     commission may not issue a retail license to a person if the proposed licensed premises does
1813     not meet the proximity requirements of Section 32B-1-202.
1814          Section 15. Section 32B-5-202 is amended to read:
1815          32B-5-202. Renewal requirements.
1816          (1) A retail license expires each year on the day specified in the relevant [part under
1817     Chapter 6, Specific Retail License Act,] chapter or part for that type of retail license.
1818          (2) (a) To renew a person's retail license, a retail licensee shall, by no later than the day
1819     specified in the relevant [part under Chapter 6, Specific Retail License Act,] chapter or part for
1820     the type of retail license that [is being renewed] the person seeks to renew, submit:
1821          (i) a completed renewal application in a form prescribed by the department; and

1822          (ii) a renewal fee in the amount specified in the relevant [part under Chapter 6, Specific
1823     Retail License Act,] chapter or part for the type of retail license that [is being renewed] the
1824     person seeks to renew.
1825          (b) A retail licensee shall submit a responsible alcohol service plan as part of the retail
1826     licensee's renewal application if, since the retail licensee's most recent application or renewal,
1827     the retail licensee:
1828          (i) made substantial changes to the retail licensee's responsible alcohol service plan; or
1829          (ii) violated a provision of this chapter.
1830          (c) The department may audit a retail licensee's responsible alcohol service plan.
1831          (3) Failure to meet the renewal requirements results in an automatic forfeiture of the
1832     retail license effective on the [date] day on which the existing retail license expires.
1833          Section 16. Section 32B-5-203 is amended to read:
1834          32B-5-203. Commission and department duties before issuing a retail license.
1835          (1) (a) Before the commission may issue a retail license, the department shall conduct
1836     an investigation and may hold public hearings to gather information and make
1837     recommendations to the commission as to whether a retail license and, if applicable, each
1838     accompanying sublicense should be issued.
1839          (b) The department shall forward the information and recommendations described in
1840     Subsection (1)(a) to the commission to aid in the commission's determination.
1841          (2) Before issuing a retail license, the commission shall:
1842          (a) determine that the person filed a complete application and is in compliance with:
1843          (i) Section 32B-5-201; and
1844          (ii) the specific licensing requirements specified in the relevant [part under Chapter 6,
1845     Specific Retail License Act,] chapter or part for the type of retail license for which the person is
1846     applying;
1847          (b) determine that the person and, if applicable, each of the person's accompanying
1848     sublicenses is not disqualified under Section 32B-1-304;
1849          (c) consider the locality within which the proposed licensed premises and, if

1850     applicable, each proposed sublicensed premises is located, including:
1851          (i) physical characteristics such as:
1852          (A) condition of the licensed or sublicensed premises;
1853          (B) square footage; and
1854          (C) parking availability; and
1855          (ii) operational factors such as:
1856          (A) tourist traffic;
1857          (B) demographics;
1858          (C) population to be served;
1859          (D) proximity to and density of other state stores, package agencies, and retail
1860     licensees; and
1861          (E) the extent of and proximity to any community location;
1862          (d) consider the person's ability to manage and operate a retail license, and if applicable
1863     the ability of each individual who will act in a supervisory or managerial capacity for each
1864     accompanying sublicense to supervise or manage a sublicense, of the type for which the person
1865     is applying, including:
1866          (i) management experience;
1867          (ii) past retail alcoholic product experience; and
1868          (iii) the type of management scheme to be used by the retail licensee or accompanying
1869     sublicensee;
1870          (e) consider the nature or type of retail licensee operation, and if applicable each
1871     proposed accompanying sublicensee's operation, of the proposed retail licensee, including:
1872          (i) the type of menu items that will be offered and emphasized;
1873          (ii) whether the retail licensee or the retail licensee's accompanying sublicensee will
1874     emphasize service to an adult clientele or to minors;
1875          (iii) the proposed hours of operation;
1876          (iv) the seating capacity of the premises; and
1877          (v) the estimated gross sales of food items; and

1878          (f) consider any other factor the commission considers necessary.
1879          (3) The commission shall determine whether an applicant under this section has an
1880     adequate kitchen or culinary facilities by considering:
1881          (a) the type of retail license or sublicense for which the person is applying;
1882          (b) the purpose of the proposed retail license or sublicense; and
1883          (c) the locality within which the proposed licensed or sublicensed premises is located.
1884          Section 17. Section 32B-5-204 is amended to read:
1885          32B-5-204. Bond for retail license.
1886          (1) (a) A retail licensee shall post a cash bond or surety bond:
1887          (i) in the amount specified in the relevant [part under Chapter 6, Specific Retail
1888     License Act,] chapter or part for the type of retail license for which the person is applying; and
1889          (ii) payable to the department.
1890          (b) A retail licensee shall procure and maintain the bond required under this section for
1891     as long as the retail licensee continues to operate as a retail licensee.
1892          (2) A bond required under this section shall be:
1893          (a) in a form approved by the attorney general; and
1894          (b) conditioned upon the retail licensee's faithful compliance with this title and the
1895     rules of the commission.
1896          (3) (a) If a surety bond posted by a retail licensee under this section is canceled due to
1897     the retail licensee's negligence, the department may assess a $300 reinstatement fee.
1898          (b) No part of a bond posted by a retail licensee under this section may be withdrawn:
1899          (i) during the period the retail license is in effect; or
1900          (ii) while a revocation proceeding is pending against the retail licensee.
1901          (4) (a) A bond posted under this section by a retail licensee may be forfeited if the
1902     retail license is revoked.
1903          (b) Notwithstanding Subsection (4)(a), the department may make a claim against a
1904     bond posted by a retail licensee for money owed the department under this title without the
1905     commission first revoking the retail license.

1906          Section 18. Section 32B-5-207 is amended to read:
1907          32B-5-207. Multiple retail licenses on same premises.
1908          (1) As used in this section, ["sublicense premises" means the same as that term is
1909     defined in Sections 32B-8-102 and 32B-8b-102.] "license" means:
1910          (a) a retail license; or
1911          (b) a sublicense.
1912          (2) [(a) The] Except as provided in Subsection (3), the commission may not issue and
1913     one or more licensees may not hold more than one type of [retail] license for the same
1914     premises.
1915          [(b)] (3) (a) [Notwithstanding Subsection (2)(a), the] The commission may issue and
1916     one or more licensees may hold more than one type of [retail] license for the same premises if:
1917          (i) the applicant or licensee satisfies the requirements for each [retail] license;
1918          (ii) the types of [retail] licenses issued or held are two or more of the following:
1919          (A) a restaurant license;
1920          (B) an on-premise beer retailer license that is not a tavern; [and]
1921          (C) an on-premise banquet license or a reception center license; and
1922          (D) a hospitality amenity license; and
1923          (iii) the [retail] licenses do not operate at the same time on the same day.
1924          (b) The commission may issue and two or more restaurant licensees may share an area
1925     of each restaurant licensee's licensed premises designated for alcoholic beverage consumption,
1926     if:
1927          (i) the applicants or licensees satisfy the requirements for each license; and
1928          (ii) the only shared premises between the issued or held restaurant licenses is the area
1929     for alcoholic beverage consumption.
1930          (c) The commission may issue and two or more licensees may share a kitchen or
1931     culinary facilities located in or on one or more of the licensees' licensed premises, if:
1932          (i) the types of licenses issued or held are two or more sublicenses of a principal
1933     licensee:

1934          (A) one of which is an on-premise banquet sublicense; and
1935          (B) one of which is a restaurant license that is a sublicense, an on-premise beer retailer
1936     sublicense that is not a tavern, or a bar sublicense; or
1937          (ii) (A) the same person applies for or holds each license;
1938          (B) the licensed premises are each owned or leased by the same person and located in
1939     the same building; and
1940          (C) the only shared premises between the issued or held licenses is the kitchen or
1941     culinary facilities area, including any pathway necessary to transport an item to and from the
1942     area.
1943          [(3)] (4) When one or more licensees hold more than one type of [retail] license for the
1944     same premises under Subsection [(2)(b)] (3)(a), the one or more licensees shall post in a
1945     conspicuous location at the entrance of the room a sign that:
1946          (a) measures 8-1/2 inches by 11 inches; and
1947          (b) states whether the premises is currently operating as:
1948          (i) a restaurant;
1949          (ii) an on-premise beer retailer that is not a tavern; [or]
1950          (iii) a banquet or a reception center[.]; or
1951          (iv) a hospitality amenity.
1952          (5) When two or more restaurant licensees share an area of each restaurant licensee's
1953     licensed premises designated for alcoholic beverage consumption in accordance with
1954     Subsection (3)(b), each licensee shall:
1955          (a) maintain control over the licensee's patrons; and
1956          (b) use a visual marker to clearly identify which licensee served each patron.
1957          [(4)] (6) (a) [The] For purposes of Subsection (3)(a), the commission may not issue and
1958     one or more licensees may not hold a bar license or a tavern license in the same room as a
1959     restaurant license.
1960          (b) For purposes of Subsection [(4)] (6)(a), two licenses are not considered in the same
1961     room if:

1962          (i) each shared permanent wall between the premises licensed as a bar or a tavern and
1963     the premises licensed as a restaurant measures at least eight feet high;
1964          (ii) the premises for each license has a separate entryway that does not require a patron
1965     to pass through the premises licensed as a bar or a tavern to access the premises licensed as a
1966     restaurant; and
1967          (iii) if a patron must pass through the premises licensed as a restaurant to access the
1968     entryway to the premises licensed as a bar or a tavern, a patron on the premises licensed as a
1969     restaurant cannot see a dispensing structure on the premises licensed as a bar or a tavern.
1970          [(5) (a) If, on May 9, 2017, one or more licensees hold more than one type of retail
1971     license in violation of Subsection (2) or (4), the one or more licensees may operate under the
1972     different types of retail licenses through June 30, 2018.]
1973          [(b) A licensee may not operate in violation of Subsection (2) or (4) on or after July 1,
1974     2018.]
1975          [(c) Before July 1, 2018, each licensee described in Subsection (5)(a) shall notify the
1976     commission of each retail license that the licensee will surrender effective July 1, 2018, to
1977     comply with the provisions of Subsection (2) or (4).]
1978          [(6)] (7) (a) The commission may issue more than one type of sublicense to a resort
1979     licensed under Chapter 8, Resort License Act, or a hotel licensed under Chapter 8b, Hotel
1980     License Act, for the same room if the [sublicense] sublicensed premises are clearly delineated
1981     by one or more permanent physical structures, such as a wall or other architectural feature, that
1982     separate the [sublicense] sublicensed premises.
1983          (b) A patron may not transport an alcoholic beverage between two [sublicense]
1984     sublicensed premises located in the same room in accordance with Subsection [(6)] (7)(a).
1985          (c) Notwithstanding any provision to the contrary, a minor may momentarily pass
1986     through a [sublicense] sublicensed premises that is a bar to reach another location where a
1987     minor may lawfully be, if there is no practical alternative route to the location.
1988          Section 19. Section 32B-5-301 is amended to read:
1989          32B-5-301. General operational requirements.

1990          (1) (a) A retail licensee and staff of a retail licensee shall comply with this title and the
1991     rules of the commission, including the relevant [part under Chapter 6, Specific Retail License
1992     Act,] chapter or part for the specific type of retail license.
1993          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
1994     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
1995          (i) a retail licensee;
1996          (ii) individual staff of a retail licensee; or
1997          (iii) both a retail licensee and staff of the retail licensee.
1998          (2) (a) If there is a conflict between this part and the relevant [part under Chapter 6,
1999     Specific Retail License Act,] chapter or part for the specific type of retail license, the relevant
2000     [part under Chapter 6, Specific Retail License Act,] chapter or part for the specific type of retail
2001     license governs.
2002          (b) Notwithstanding that this part refers to "liquor" or an "alcoholic product," a retail
2003     licensee may only sell, offer for sale, furnish, or allow the consumption of an alcoholic product
2004     specifically authorized by the relevant [part under Chapter 6, Specific Retail License Act]
2005     chapter or part for the retail licensee's specific type of retail license.
2006          (c) Notwithstanding that this part or the relevant [part under Chapter 6, Specific Retail
2007     License Act,] chapter or part for a specific retail licensee refers to "retail licensee," staff of the
2008     retail licensee is subject to the same requirement or prohibition.
2009          (3) (a) A retail licensee shall display in a prominent place in the licensed premises the
2010     retail license that is issued by the department.
2011          (b) A retail licensee shall display in a prominent place a sign in large letters that
2012     consists of text in the following order:
2013          (i) a header that reads: "WARNING";
2014          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
2015     can cause birth defects and permanent brain damage for the child.";
2016          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
2017     [insert most current toll-free number] with questions or for more information.";

2018          (iv) a header that reads: "WARNING"; and
2019          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
2020     serious crime that is prosecuted aggressively in Utah."
2021          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
2022     font style than the text described in Subsections (3)(b)(iv) and (v).
2023          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
2024     same font size.
2025          (d) The Department of Health shall work with the commission and department to
2026     facilitate consistency in the format of a sign required under this section.
2027          (4) A retail licensee may not on the licensed premises:
2028          (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
2029     Chapter 10, Part 11, Gambling;
2030          (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
2031     Part 11, Gambling; or
2032          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
2033     the risking of something of value for a return or for an outcome when the return or outcome is
2034     based upon an element of chance, excluding the playing of an amusement device that confers
2035     only an immediate and unrecorded right of replay not exchangeable for value.
2036          (5) A retail licensee may not knowingly allow a person on the licensed premises to, in
2037     violation of Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
2038     Paraphernalia Act:
2039          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
2040     58-37-2; or
2041          (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
2042     Section 58-37a-3.
2043          (6) Upon the presentation of credentials, at any time during which a retail licensee is
2044     open for the transaction of business, the retail licensee shall immediately:
2045          (a) admit a commissioner, authorized department employee, or law enforcement officer

2046     to the retail licensee's premises; and
2047          (b) permit, without hindrance or delay, the person described in Subsection (6)(a) to
2048     inspect completely:
2049          (i) the entire premises of the retail licensee; and
2050          (ii) the records of the retail licensee.
2051          (7) An individual may not consume an alcoholic product on the licensed premises of a
2052     retail licensee on any day during the period:
2053          (a) beginning one hour after the time of day that the period during which a retail
2054     licensee may not sell, offer for sale, or furnish an alcoholic product on the licensed premises
2055     begins; and
2056          (b) ending at the time specified in the relevant [part under Chapter 6, Specific Retail
2057     License Act,] chapter or part for the retail licensee's specific type of retail license when the
2058     retail licensee may first sell, offer for sale, or furnish an alcoholic product on the licensed
2059     premises on that day.
2060          (8) [(a)] An employee of a retail licensee who sells, offers for sale, or furnishes an
2061     alcoholic product to a patron shall wear an identification badge.
2062          [(b)] (9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
2063     Act, the commission shall make rules:
2064          (a) related to the requirement described in Subsection (8)[(a).]; and
2065          (b) for dispensing systems and dispensing areas of restaurant licensees, bar licensees,
2066     and taverns, establishing standards:
2067          (i) in accordance with the provisions of this title; and
2068          (ii) prohibiting a dispensing system to remain at a patron's table.
2069          Section 20. Section 32B-5-307 is amended to read:
2070          32B-5-307. Bringing alcoholic product onto or removing alcoholic product from
2071     premises.
2072          (1) Except as provided in [Subsection (3)] Subsections (3) through (5):
2073          (a) A person may not bring onto the licensed premises of a retail licensee an alcoholic

2074     product for on-premise consumption.
2075          (b) A retail licensee may not allow a person to:
2076          (i) bring onto licensed premises an alcoholic product for on-premise consumption; or
2077          (ii) consume an alcoholic product brought onto the licensed premises by a person other
2078     than the retail licensee.
2079          (c) A retail licensee may not sell, offer for sale, or furnish an alcoholic product through
2080     a window or door to a location off the licensed premises or to a vehicular traffic area.
2081          (2) Except as provided in Subsections (3)[, (4),] through (5) and 32B-4-415(5):
2082          (a) a person may not carry from a licensed premises of a retail licensee an open
2083     container that:
2084          (i) is used primarily for drinking purposes; and
2085          (ii) contains an alcoholic product;
2086          (b) a retail licensee may not permit a patron to carry from the licensed premises an
2087     open container described in Subsection (2)(a); and
2088          (c) (i) a person may not carry from a licensed premises of a retail licensee a sealed
2089     container of liquor that has been purchased from the retail licensee; and
2090          (ii) a retail licensee may not permit a patron to carry from the licensed premises a
2091     sealed container of liquor that has been purchased from the retail licensee.
2092          (3) (a) A patron may bring a bottled wine onto the premises of a retail licensee for
2093     on-premise consumption if:
2094          (i) permitted by the retail licensee; and
2095          (ii) the retail licensee is authorized to sell, offer for sale, or furnish wine.
2096          (b) If a patron carries bottled wine onto the licensed premises of a retail licensee, the
2097     patron shall deliver the bottled wine to a server or other representative of the retail licensee
2098     upon entering the licensed premises.
2099          (c) A retail licensee authorized to sell, offer for sale, or furnish wine, may provide a
2100     wine service for a bottled wine carried onto the licensed premises in accordance with this
2101     Subsection (3) or a bottled wine purchased at the licensed premises.

2102          (d) A patron may remove from a licensed premises the unconsumed contents of a bottle
2103     of wine purchased at the licensed premises, or brought onto the licensed premises in
2104     accordance with this Subsection (3), only if before removal the bottle is recorked or recapped.
2105          [(4) A patron may transport beer between the premises of an on-premise banquet
2106     license and an on-premise beer retailer license that is not a tavern, and consume the beer on
2107     either licensed premises, if the licensed premises are:]
2108          [(a) immediately adjacent to one another; and]
2109          [(b) located in a sports center that has a seating capacity of at least 6,500.]
2110          (4) A patron may transport beer between the sublicensed premises of an arena
2111     licensee's accompanying sublicenses, if the patron transports the beer from and to an area of
2112     each sublicensed premises:
2113          (a) that is adjacent to the other; and
2114          (b) where the consumption of beer is permitted.
2115          (5) Neither a patron nor a retail licensee violates this section if:
2116          (a) the patron is in shared seating; and
2117          (b) the patron purchased the patron's alcoholic beverage from a restaurant licensee
2118     whose licensed premises include the shared seating area the patron is in.
2119          Section 21. Section 32B-5-309 is amended to read:
2120          32B-5-309. Ceasing operation.
2121          (1) Except as provided in Subsection (8), a retail licensee may not close or cease
2122     operation for a period longer than 240 hours, unless:
2123          (a) the retail licensee notifies the department in writing at least seven days before the
2124     day on which the retail licensee closes or ceases operation; and
2125          (b) the closure or cessation of operation is first approved by the department.
2126          (2) Notwithstanding Subsection (1), in the case of emergency closure, a retail licensee
2127     shall immediately notify the department by telephone.
2128          (3) (a) The department may authorize a closure or cessation of operation of a retail
2129     licensee for a period not to exceed 60 days.

2130          (b) The department may extend the initial period an additional 30 days upon:
2131          (i) written request of the retail licensee; and
2132          (ii) a showing of good cause.
2133          (4) A closure or cessation of operation may not exceed a total of 90 days without
2134     commission approval.
2135          (5) A notice required under this section shall include:
2136          (a) the dates of closure or cessation of operation;
2137          (b) the reason for the closure or cessation of operation; and
2138          (c) the date on which the retail licensee will reopen or resume operation.
2139          (6) Failure of a retail licensee to provide notice and to obtain department approval
2140     before closure or cessation of operation results in an automatic forfeiture of:
2141          (a) the retail license; and
2142          (b) the unused portion of the retail license fee for the remainder of the retail license
2143     year effective immediately.
2144          (7) Failure of a retail licensee to reopen or resume operation by the approved date
2145     results in an automatic forfeiture of:
2146          (a) the retail license; and
2147          (b) the unused portion of the retail license fee for the remainder of the retail license
2148     year.
2149          (8) This section does not apply to:
2150          (a) an on-premise beer retailer who is not a tavern; or
2151          (b) an airport lounge licensee[.]; or
2152          (c) a hospitality amenity licensee.
2153          Section 22. Section 32B-6-205 is amended to read:
2154          32B-6-205. Specific operational requirements for a full-service restaurant license
2155     -- Before July 1, 2018, or July 1, 2022.
2156          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2157     Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee

2158     shall comply with this section.
2159          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2160     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2161          (i) a full-service restaurant licensee;
2162          (ii) individual staff of a full-service restaurant licensee; or
2163          (iii) both a full-service restaurant licensee and staff of the full-service restaurant
2164     licensee.
2165          (2) In addition to complying with Subsection 32B-5-301(3), a full-service restaurant
2166     licensee shall display in a prominent place in the restaurant a list of the types and brand names
2167     of liquor being furnished through the full-service restaurant licensee's calibrated metered
2168     dispensing system.
2169          (3) In addition to complying with Section 32B-5-303, a full-service restaurant licensee
2170     shall store an alcoholic product in a storage area described in Subsection (11)(a).
2171          (4) (a) An individual who serves an alcoholic product in a full-service restaurant
2172     licensee's premises shall make a written beverage tab for each table or group that orders or
2173     consumes an alcoholic product on the premises.
2174          (b) A beverage tab required by this Subsection (4) shall list the type and amount of an
2175     alcoholic product ordered or consumed.
2176          (5) A person's willingness to serve an alcoholic product may not be made a condition
2177     of employment as a server with a full-service restaurant licensee.
2178          (6) (a) A full-service restaurant licensee may sell, offer for sale, or furnish liquor at the
2179     licensed premises during the following time periods only:
2180          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
2181          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2182     period that begins at 10:30 a.m. and ends at 11:59 p.m.
2183          (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer at the
2184     licensed premises during the following time periods only:
2185          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or

2186          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2187     period that begins at 10:30 a.m. and ends at 12:59 a.m.
2188          (7) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
2189     alcoholic product except after the full-service restaurant licensee confirms that the patron has
2190     the intent to order food prepared, sold, and furnished at the licensed premises.
2191          (b) A full-service restaurant licensee shall maintain on the licensed premises adequate
2192     culinary facilities for food preparation and dining accommodations.
2193          (8) (a) Subject to the other provisions of this Subsection (8), a patron may not have
2194     more than two alcoholic products of any kind at a time before the patron.
2195          (b) A patron may not have more than one spirituous liquor drink at a time before the
2196     patron.
2197          (c) An individual portion of wine is considered to be one alcoholic product under
2198     Subsection (8)(a).
2199          (9) A patron may consume an alcoholic product only :
2200          (a) at:
2201          (i) the patron's table;
2202          (ii) a counter; or
2203          (iii) a seating grandfathered bar structure ; and
2204          (b) where food is served.
2205          (10) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
2206     alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar
2207     structure that is not a seating grandfathered bar structure.
2208          (b) At a seating grandfathered bar structure a patron who is 21 years of age or older
2209     may:
2210          (i) sit;
2211          (ii) be furnished an alcoholic product; and
2212          (iii) consume an alcoholic product.
2213          (c) Except as provided in Subsection (10)(d), at a seating grandfathered bar structure a

2214     full-service restaurant licensee may not permit a minor to, and a minor may not:
2215          (i) sit; or
2216          (ii) consume food or beverages.
2217          (d) (i) A minor may be at a seating grandfathered bar structure if the minor is
2218     employed by a full-service restaurant licensee:
2219          (A) as provided in Subsection 32B-5-308(2); or
2220          (B) to perform maintenance and cleaning services during an hour when the full-service
2221     restaurant licensee is not open for business.
2222          (ii) A minor may momentarily pass by a seating grandfathered bar structure without
2223     remaining or sitting at the bar structure en route to an area of a full-service restaurant licensee's
2224     premises in which the minor is permitted to be.
2225          (11) Except as provided in Subsection 32B-5-307(3), a full-service restaurant licensee
2226     may dispense an alcoholic product only if:
2227          (a) the alcoholic product is dispensed from:
2228          (i) a grandfathered bar structure;
2229          (ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
2230     the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
2231     12, 2009; or
2232          (iii) an area that is:
2233          (A) separated from an area for the consumption of food by a patron by a solid,
2234     translucent, permanent structural barrier such that the facilities for the storage or dispensing of
2235     an alcoholic product are:
2236          (I) not readily visible to a patron; and
2237          (II) not accessible by a patron; and
2238          (B) apart from an area used:
2239          (I) for dining;
2240          (II) for staging; or
2241          (III) as a lobby or waiting area;

2242          (b) the full-service restaurant licensee uses an alcoholic product that is:
2243          (i) stored in an area described in Subsection (11)(a); or
2244          (ii) in an area not described in Subsection (11)(a) on the licensed premises and:
2245          (A) immediately before the alcoholic product is dispensed it is in an unopened
2246     container; (B) the unopened container is taken to an area described in Subsection (11)(a) before
2247     it is opened; and (C) once opened, the container is stored in an area described in Subsection
2248     (11)(a); and
2249          (c) any instrument or equipment used to dispense alcoholic product is located in an
2250     area described in Subsection (11)(a).
2251          (12) A full-service restaurant licensee may state in a food or alcoholic product menu a
2252     charge or fee made in connection with the sale, service, or consumption of liquor including:
2253          (a) a set-up charge;
2254          (b) a service charge; or
2255          (c) a chilling fee.
2256          (13) Beginning on July 1, 2018, a minor may not sit, remain, or consume food or
2257     beverages within 10 feet of a grandfathered bar structure, unless:
2258          (a) seating within 10 feet of the grandfathered bar structure is the only seating available
2259     in the licensed premises; and
2260          (b) the minor is accompanied by an individual who is 21 years of age or older.
2261          (14) Except as provided in Subsection 32B-6-205.2[(15)](16) and Section
2262     32B-6-205.3, the provisions of this section apply before July 1, 2018.
2263          Section 23. Section 32B-6-205.2 is amended to read:
2264          32B-6-205.2. Specific operational requirements for a full-service restaurant
2265     license -- On and after July 1, 2018, or July 1, 2022.
2266          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2267     Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
2268     shall comply with this section.
2269          (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in

2270     accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2271          (i) a full-service restaurant licensee;
2272          (ii) individual staff of a full-service restaurant licensee; or
2273          (iii) both a full-service restaurant licensee and staff of the full-service restaurant
2274     licensee.
2275          (2) (a) An individual who serves an alcoholic product in a full-service restaurant
2276     licensee's premises shall make a beverage tab for each table or group that orders or consumes
2277     an alcoholic product on the premises.
2278          (b) A beverage tab described in this Subsection (2) shall state the type and amount of
2279     each alcoholic product ordered or consumed.
2280          (3) A full-service restaurant licensee may not make an individual's willingness to serve
2281     an alcoholic product a condition of employment with a full-service restaurant licensee.
2282          (4) (a) A full-service restaurant licensee may sell, offer for sale, or furnish liquor at the
2283     licensed premises during the following time periods only:
2284          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
2285          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2286     period that begins at 10:30 a.m. and ends at 11:59 p.m.
2287          (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer at the
2288     licensed premises during the following time periods only:
2289          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
2290          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
2291     period that begins at 10:30 a.m. and ends at 12:59 a.m.
2292          (5) (a) A full-service restaurant licensee may not furnish an alcoholic product except
2293     after:
2294          (i) the patron to whom the full-service restaurant licensee furnishes the alcoholic
2295     product is seated at:
2296          (A) a table that is located in a dining area or a dispensing area;
2297          (B) a counter that is located in a dining area or a dispensing area; or

2298          (C) a dispensing structure that is located in a dispensing area; and
2299          (ii) the full-service restaurant licensee confirms that the patron intends to:
2300          (A) order food prepared, sold, and furnished at the licensed premises; and
2301          (B) except as provided in Subsection (5)(b), consume the food at the same location
2302     where the patron is seated and furnished the alcoholic product.
2303          (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
2304     full-service restaurant licensee, the full-service restaurant licensee may sell, offer for sale, or
2305     furnish to the patron one drink that contains a single portion of an alcoholic product as
2306     described in Section 32B-5-304 if:
2307          (A) the patron is in a dispensing area and seated at a table, counter, or dispensing
2308     structure; and
2309          (B) the full-service restaurant licensee first confirms that after the patron is seated in
2310     the dining area, the patron intends to order food prepared, sold, and furnished at the licensed
2311     premises.
2312          (ii) If the patron does not finish the patron's alcoholic product before moving to a seat
2313     in the dining area, an employee of the full-service restaurant licensee who is qualified to sell
2314     and serve an alcoholic product under Section 32B-5-306 shall transport any unfinished portion
2315     of the patron's alcoholic product to the patron's seat in the dining area.
2316          (iii) For purposes of Subsection (5)(b)(i) a single portion of wine is [5] five ounces or
2317     less.
2318          (c) A full-service restaurant licensee shall maintain on the licensed premises adequate
2319     culinary facilities for food preparation and dining accommodations.
2320          (6) A patron may consume an alcoholic product only if the patron is seated at:
2321          (a) a table that is located in a dining area or dispensing area;
2322          (b) a counter that is located in a dining area or dispensing area; or
2323          (c) a dispensing structure located in a dispensing area.
2324          (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have
2325     more than two alcoholic products of any kind at a time before the patron.

2326          (b) A patron may not have more than one spirituous liquor drink at a time before the
2327     patron.
2328          (c) An individual portion of wine is considered to be one alcoholic product under
2329     Subsection (7)(a).
2330          (8) In accordance with the provisions of this section, an individual who is at least 21
2331     years of age may consume food and beverages in a dispensing area.
2332          (9) (a) Except as provided in Subsection (9)(b), a minor may not sit, remain, or
2333     consume food or beverages in a dispensing area.
2334          (b) (i) A minor may be in a dispensing area if the minor is:
2335          (A) at least 16 years of age and working as an employee of the full-service restaurant
2336     licensee; or
2337          (B) performing maintenance and cleaning services as an employee of the full-service
2338     restaurant licensee when the full-service restaurant licensee is not open for business.
2339          (ii) If there is no alternative route available, a minor may momentarily pass through a
2340     dispensing area without remaining or sitting in the dispensing area en route to an area of the
2341     full-service restaurant licensee's premises in which the minor is permitted to be.
2342          (10) Except as provided in Subsection 32B-5-307(3), a full-service restaurant licensee
2343     may dispense an alcoholic product only if:
2344          (a) the alcoholic product is dispensed from:
2345          (i) a dispensing structure that is located in a dispensing area;
2346          (ii) an area that is:
2347          (A) separated from an area for the consumption of food by a patron by a solid,
2348     translucent, permanent structural barrier such that the facilities for the dispensing of an
2349     alcoholic product are not readily visible to a patron and not accessible by a patron; and
2350          (B) apart from an area used for dining, for staging, or as a waiting area; or
2351          (iii) the premises of a bar licensee that is:
2352          (A) owned by the same person or persons as the full-service restaurant licensee; and
2353          (B) located immediately adjacent to the premises of the full-service restaurant licensee;

2354     and
2355          (b) any instrument or equipment used to dispense alcoholic product is located in an
2356     area described in Subsection (10)(a).
2357          (11) (a) A full-service restaurant licensee may have more than one dispensing area in
2358     the licensed premises.
2359          (b) Each dispensing area in a licensed premises may satisfy the requirements for a
2360     dispensing area under Subsection 32B-6-202(2)(a)(i), (ii), or (iii), regardless of how any other
2361     dispensing area in the licensed premises satisfies the requirements for a dispensing area.
2362          (12) A full-service restaurant licensee may not:
2363          (a) transfer, dispense, or serve an alcoholic product on or from a movable cart; or
2364          (b) display an alcoholic product or a product intended to appear like an alcoholic
2365     product by moving a cart or similar device around the licensed premises.
2366          (13) A full-service restaurant licensee may state in a food or alcoholic product menu a
2367     charge or fee made in connection with the sale, service, or consumption of liquor, including:
2368          (a) a set-up charge;
2369          (b) a service charge; or
2370          (c) a chilling fee.
2371          (14) (a) In addition to the requirements described in Section 32B-5-302, a full-service
2372     restaurant licensee shall maintain each of the following records for at least three years:
2373          (i) a record required by Section 32B-5-302; and
2374          (ii) a record that the commission requires a full-service restaurant licensee to use or
2375     maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2376     Rulemaking Act.
2377          (b) The department shall audit the records of a full-service restaurant licensee at least
2378     once each calendar year.
2379          (15) A full-service restaurant licensee may lease to a patron of the full-service
2380     restaurant licensee a locked storage space:
2381          (a) that the commission considers proper for the storage of wine; and

2382          (b) for the storage of wine that:
2383          (i) the patron purchases from the full-service restaurant licensee; and
2384          (ii) only the full-service restaurant licensee or staff of the full-service restaurant
2385     licensee may remove from the locker for the patron's use in accordance with this title,
2386     including:
2387          (A) service and consumption on licensed premises as described in Section 32B-5-306;
2388     or
2389          (B) removal from the full-service retail licensee's licensed premises in accordance with
2390     Section 32B-5-307.
2391          [(15)] (16) (a) In accordance with Section 32B-6-205.3, a full-service restaurant
2392     licensee:
2393          (i) may comply with the provisions of this section beginning on or after July 1, 2017;
2394     and
2395          (ii) shall comply with the provisions of this section:
2396          (A) for a full-service restaurant licensee that does not have a grandfathered bar
2397     structure, on and after July 1, 2018; or
2398          (B) for a full-service restaurant licensee that has a grandfathered bar structure, on and
2399     after July 1, 2022.
2400          (b) A full-service restaurant licensee that elects to comply with the provisions of this
2401     section before the latest applicable date described in Subsection [(15)] (16)(a)(ii):
2402          (i) shall comply with each provision of this section; and
2403          (ii) is not required to comply with the provisions of Section 32B-6-205.
2404          Section 24. Section 32B-6-406 is amended to read:
2405          32B-6-406. Specific operational requirements for a bar establishment license.
2406          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2407     Requirements, a bar establishment licensee and staff of the bar establishment licensee shall
2408     comply with this section.
2409          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action

2410     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2411          (i) a bar establishment licensee;
2412          (ii) individual staff of a bar establishment licensee; or
2413          (iii) both a bar establishment licensee and staff of the bar establishment licensee.
2414          (2) In addition to complying with Subsection 32B-5-301(3), a bar licensee shall display
2415     in a conspicuous place at the entrance to the licensed premises a sign that:
2416          (a) measures at least 8-1/2 inches long and 11 inches wide; and
2417          (b) clearly states that the bar licensee is a bar and that no one under 21 years of age is
2418     allowed.
2419          (3) (a) In addition to complying with Section 32B-5-302, a bar establishment licensee
2420     shall maintain for a minimum of three years:
2421          (i) a record required by Section 32B-5-302; and
2422          (ii) a record maintained or used by the bar establishment licensee, as the department
2423     requires.
2424          (b) Section 32B-1-205 applies to a record required to be made, maintained, or used in
2425     accordance with this Subsection (3).
2426          (c) The department shall audit the records of a bar establishment licensee at least once
2427     annually.
2428          (4) (a) A bar establishment licensee may not sell, offer for sale, or furnish liquor on the
2429     licensed premises on any day during a period that:
2430          (i) begins at 1 a.m.; and
2431          (ii) ends at 9:59 a.m.
2432          (b) A bar establishment licensee may sell, offer for sale, or furnish beer during the
2433     hours specified in Part 7, On-Premise Beer Retailer License, for an on-premise beer retailer
2434     license.
2435          (c) (i) Notwithstanding Subsections (4)(a) and (b), a bar establishment licensee shall
2436     keep its licensed premises open for one hour after the bar establishment licensee ceases the sale
2437     and furnishing of an alcoholic product during which time a patron of the bar establishment

2438     licensee may finish consuming:
2439          (A) a single drink containing spirituous liquor;
2440          (B) a single serving of wine not exceeding five ounces;
2441          (C) a single serving of heavy beer;
2442          (D) a single serving of beer not exceeding 26 ounces; or
2443          (E) a single serving of a flavored malt beverage.
2444          (ii) A bar establishment licensee is not required to remain open:
2445          (A) after all patrons have vacated the premises; or
2446          (B) during an emergency.
2447          (5) (a) A minor:
2448          (i) may not be admitted into, use, or be in[: (i) a lounge or bar area of the premises of:
2449     (A) an equity licensee; (B) a fraternal licensee; or (C) a dining club licensee; or (ii) ] the
2450     licensed premises of:
2451          (A) a dining club licensee unless accompanied by an individual who is 21 years of age
2452     or older; or
2453          (B) a bar licensee, except to the extent provided for under Section 32B-6-406.1[.];
2454          (ii) may only be admitted into, use, or be in the lounge or bar area of an equity
2455     licensee's or fraternal licensee's licensed premises:
2456          (A) when accompanied by an individual who is 21 years of age or older; and
2457          (B) momentarily while en route to another area of the licensee's premises; and
2458          (iii) may not remain or sit in the lounge or bar area of an equity licensee's or fraternal
2459     licensee's licensed premises.
2460          (b) Notwithstanding Section 32B-5-308, a bar establishment licensee may not employ a
2461     minor to:
2462          (i) work in a lounge or bar area of an equity licensee, fraternal licensee, or dining club
2463     licensee; or
2464          (ii) handle an alcoholic product.
2465          (c) Notwithstanding Section 32B-5-308, a minor may not be employed on the licensed

2466     premises of a bar licensee.
2467          (d) Nothing in this part or Section 32B-5-308 precludes a local authority from being
2468     more restrictive of a minor's admittance to, use of, or presence on the licensed premises of a bar
2469     establishment licensee.
2470          (6) A bar establishment licensee shall have food available at all times when an
2471     alcoholic product is sold, offered for sale, furnished, or consumed on the licensed premises.
2472          (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have
2473     more than two alcoholic products of any kind at a time before the patron.
2474          (b) A patron may not have two spirituous liquor drinks before the bar establishment
2475     licensee patron if one of the spirituous liquor drinks consists only of the primary spirituous
2476     liquor for the other spirituous liquor drink.
2477          (c) An individual portion of wine is considered to be one alcoholic product under
2478     Subsection (7)(a).
2479          (8) A bar establishment licensee shall have available on the premises for a patron to
2480     review at the time that the patron requests it, a written alcoholic product price list or a menu
2481     containing the price of an alcoholic product sold, offered for sale, or furnished by the bar
2482     establishment licensee including:
2483          (a) a set-up charge;
2484          (b) a service charge; or
2485          (c) a chilling fee.
2486          (9) Subject to Section 32B-5-309, a bar establishment licensee may not temporarily
2487     rent or otherwise temporarily lease its premises to a person unless:
2488          (a) the person to whom the bar establishment licensee rents or leases the premises
2489     agrees in writing to comply with this title as if the person is the bar establishment licensee,
2490     except for a requirement related to making or maintaining a record; and
2491          (b) the bar establishment licensee takes reasonable steps to ensure that the person
2492     complies with this section as provided in Subsection (9)(a).
2493          (10) If a bar establishment licensee is an equity licensee or fraternal licensee, the bar

2494     establishment licensee shall comply with Section 32B-6-407.
2495          (11) If a bar establishment licensee is a dining club licensee or bar licensee, the bar
2496     establishment licensee shall comply with Section 32B-1-407.
2497          (12) (a) A bar establishment licensee shall own or lease premises suitable for the bar
2498     establishment licensee's activities.
2499          (b) A bar establishment licensee may not maintain licensed premises in a manner that
2500     barricades or conceals the bar establishment licensee's operation.
2501          Section 25. Section 32B-6-603 is amended to read:
2502          32B-6-603. Commission's power to issue on-premise banquet license -- Contracts
2503     as host.
2504          (1) (a) Before a person may store, sell, offer for sale, furnish, or allow the consumption
2505     of an alcoholic product in connection with the person's banquet and room service activities at
2506     one of the following, the person shall first obtain an on-premise banquet license in accordance
2507     with this part:
2508          (i) a hotel;
2509          (ii) a resort facility;
2510          (iii) a sports center;
2511          (iv) a convention center; [or]
2512          (v) a performing arts facility[.]; or
2513          (vi) an arena.
2514          (b) This part does not prohibit an alcoholic product on the premises of a person listed
2515     in Subsection (1)(a) to the extent otherwise permitted by this title.
2516          (c) This section does not prohibit a person who applies for an on-premise banquet
2517     license to also apply for a package agency if otherwise qualified.
2518          (2) The commission may issue an on-premise banquet license to establish on-premise
2519     banquet licensees in the numbers the commission considers proper for the storage, sale, offer
2520     for sale, furnishing, and consumption of an alcoholic product at a banquet or as part of room
2521     service activities operated by an on-premise banquet licensee.

2522          (3) Subject to Section 32B-1-201, the commission may not issue a total number of
2523     on-premise banquet licenses that at any time exceed the number determined by dividing the
2524     population of the state by 28,765.
2525          (4) Pursuant to a contract between the host of a banquet and an on-premise banquet
2526     licensee:
2527          (a) the host of the banquet may request an on-premise banquet licensee to provide an
2528     alcoholic product served at the banquet; and
2529          (b) an on-premise banquet licensee may provide an alcoholic product served at the
2530     banquet.
2531          (5) At a banquet, an on-premise banquet licensee may furnish an alcoholic product:
2532          (a) without charge to a patron at a banquet, except that the host of the banquet shall pay
2533     for an alcoholic product furnished at the banquet; or
2534          (b) with a charge to a patron at the banquet.
2535          (6) To be licensed as an on-premise banquet, a person shall maintain at least 50% of
2536     the person's total annual banquet gross receipts from the sale of food, which does not include:
2537          (a) mix for an alcoholic product; or
2538          (b) a charge in connection with the furnishing of an alcoholic product.
2539          Section 26. Section 32B-6-605 is amended to read:
2540          32B-6-605. Specific operational requirements for on-premise banquet license.
2541          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2542     Requirements, an on-premise banquet licensee and staff of the on-premise banquet licensee
2543     shall comply with this section.
2544          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2545     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2546          (i) an on-premise banquet licensee;
2547          (ii) individual staff of an on-premise banquet licensee; or
2548          (iii) both an on-premise banquet licensee and staff of the on-premise banquet licensee.
2549          (2) An on-premise banquet licensee shall comply with Subsections 32B-5-301(4) and

2550     (5) for the entire premises of the hotel, resort facility, sports center, convention center, or
2551     performing arts facility that is the basis for the on-premise banquet license.
2552          (3) (a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee
2553     shall provide the department with advance notice of a scheduled banquet in accordance with
2554     rules made by the commission.
2555          (b) Any of the following may conduct a random inspection of a banquet:
2556          (i) an authorized representative of the commission or the department; or
2557          (ii) a law enforcement officer.
2558          (4) (a) An on-premise banquet licensee is not subject to Section 32B-5-302, but shall
2559     make and maintain the records the commission or department requires.
2560          (b) Section 32B-1-205 applies to a record required to be made or maintained in
2561     accordance with this Subsection (4).
2562          (5) (a) Except as otherwise provided in this title, an on-premise banquet licensee may
2563     sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption at the
2564     location of the banquet.
2565          (b) Except as provided in [Subsection] Subsections 32B-5-307(4) and (5), a host of a
2566     banquet, a patron, or a person other than the on-premise banquet licensee or staff of the
2567     on-premise banquet licensee, may not remove an alcoholic product from the premises of the
2568     banquet.
2569          (c) Notwithstanding Subsection 32B-5-307(3) and except as provided in [Subsection]
2570     Subsections 32B-5-307(4) and (5), a patron at a banquet may not bring an alcoholic product
2571     into or onto, or remove an alcoholic product from, the premises of a banquet.
2572          (6) (a) An on-premise banquet licensee may not leave an unsold alcoholic product at
2573     the banquet following the conclusion of the banquet.
2574          (b) At the conclusion of a banquet, an on-premise banquet licensee shall:
2575          (i) destroy an opened and unused alcoholic product that is not saleable, under
2576     conditions established by the department; and
2577          (ii) return to the on-premise banquet licensee's approved locked storage area any:

2578          (A) opened and unused alcoholic product that is saleable; and
2579          (B) unopened container of an alcoholic product.
2580          (c) Except as provided in Subsection (6)(b) with regard to an open or sealed container
2581     of an alcoholic product not sold or consumed at a banquet, an on-premise banquet licensee:
2582          (i) shall store the alcoholic product in the on-premise banquet licensee's approved
2583     locked storage area; and
2584          (ii) may use the alcoholic product at more than one banquet.
2585          (7) Notwithstanding Section 32B-5-308, an on-premise banquet licensee may not
2586     employ a minor to sell, furnish, or dispense an alcoholic product in connection with the
2587     on-premise banquet licensee's banquet and room service activities.
2588          (8) An on-premise banquet licensee:
2589          (a) may provide room service in portions described in Section 32B-5-304; [and]
2590          (b) may not sell, offer for sale, or furnish an alcoholic product at a banquet or in
2591     connection with room service any day during a period that:
2592          (i) begins at 1 a.m.; and
2593          (ii) ends at 9:59 a.m.; and
2594          (c) notwithstanding Section 32B-5-305, may provide as room service one alcoholic
2595     product free of charge per guest reservation, per guest room, if the alcoholic product:
2596          (i) is not a spirituous liquor; and
2597          (ii) is in an unopened container not to exceed 750 milliliters.
2598          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
2599     more than two alcoholic products of any kind at a time before the patron.
2600          (b) A patron may not have more than one spirituous liquor drink at a time before the
2601     patron.
2602          (c) An individual portion of wine is considered to be one alcoholic product under
2603     Subsection (9)(a).
2604          (10) (a) An on-premise banquet licensee shall supervise and direct a person involved in
2605     the sale, offer for sale, or furnishing of an alcoholic product.

2606          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
2607     shall complete an alcohol training and education seminar.
2608          (11) A staff person of an on-premise banquet licensee shall remain at the banquet at all
2609     times when an alcoholic product is sold, offered for sale, furnished, or consumed at the
2610     banquet.
2611          (12) (a) Room service of an alcoholic product to a guest room of a hotel or resort
2612     facility shall be provided in person by staff of an on-premise banquet licensee only to an adult
2613     guest in the guest room.
2614          (b) An alcoholic product may not be left outside a guest room for retrieval by a guest.
2615          (13) An on-premise banquet licensee may not maintain a minibar.
2616          Section 27. Section 32B-6-702 is amended to read:
2617          32B-6-702. Definitions.
2618          As used in this part[, "recreational]:
2619          (1) "Commission-approved activity" means a leisure activity that:
2620          (a) the commission approves by rule made in accordance with Title 63G, Chapter 3,
2621     Utah Administrative Rulemaking Act; and
2622          (b) does not involve the use of a dangerous weapon.
2623          (2) (a) "Recreational amenity" means:
2624          [(1)] (i) a billiard parlor;
2625          [(2)] (ii) a pool parlor;
2626          [(3)] (iii) a bowling facility;
2627          [(4)] (iv) a golf course;
2628          [(5)] (v) miniature golf;
2629          [(6)] (vi) a golf driving range;
2630          [(7)] (vii) a tennis club;
2631          [(8)] (viii) a sports facility that hosts professional sporting events and has a seating
2632     capacity equal to or greater than 6,500;
2633          [(9)] (ix) a concert venue that has a seating capacity equal to or greater than 6,500;

2634          [(10)] (x) one of the following if owned by a government agency:
2635          [(a)] (A) a convention center;
2636          [(b)] (B) a fair facility;
2637          [(c)] (C) an equestrian park;
2638          [(d)] (D) a theater; or
2639          [(e)] (E) a concert venue;
2640          [(11)] (xi) an amusement park:
2641          [(a)] (A) with one or more permanent amusement rides; and
2642          [(b)] (B) located on at least 50 acres;
2643          [(12)] (xii) a ski resort;
2644          [(13)] (xiii) a venue for live entertainment if the venue:
2645          [(a)] (A) is not regularly open for more than five hours on any day;
2646          [(b)] (B) is operated so that food is available whenever beer is sold, offered for sale, or
2647     furnished at the venue; and
2648          [(c)] (C) is operated so that no more than 15% of its total annual receipts are from the
2649     sale of beer; [or]
2650          [(14)] (xiv) concessions operated within the boundary of a park administered by the:
2651          [(a)] (A) Division of Parks and Recreation; or
2652          [(b)] (B) National Parks Service[.];
2653          (xv) a facility or venue that is a recreational amenity for a person licensed under this
2654     part before May 12, 2020;
2655          (xvi) a venue for karaoke; or
2656          (xvii) an enterprise developed around a commission-approved activity.
2657          (b) "Recreational amenity" does not include an item described in Subsection (2)(a), if
2658     the item is tangential to an enterprise or activity that is not included in Subsection (2)(a).
2659          Section 28. Section 32B-6-803 is amended to read:
2660          32B-6-803. Commission's power to issue reception center license.
2661          (1) Before a person may store, sell, offer for sale, or furnish an alcoholic product on

2662     [its] the person's premises as a reception center, the person shall first obtain a reception center
2663     license from the commission in accordance with this part.
2664          (2) The commission may issue a reception center license to establish reception center
2665     licensed premises at places and in numbers the commission considers proper for the storage,
2666     sale, offer for sale, furnishing, and consumption of an alcoholic product on premises operated
2667     as a reception center.
2668          (3) Subject to Section 32B-1-201, the commission may not issue a total number of
2669     reception center licenses that at any time exceeds the number determined by dividing the
2670     population of the state by 251,693.
2671          (4) The commission may not issue a reception center license for premises that do not
2672     meet the proximity requirements of Section 32B-1-202.
2673          (5) (a) To be licensed as a reception center, a person [may not maintain in excess of
2674     30% of its total annual receipts from the sale of an alcoholic product, which includes] shall
2675     maintain at least 50% of the person's total annual gross receipts from the sale of food, which
2676     does not include:
2677          (i) mix for an alcoholic product; or
2678          (ii) a charge in connection with the furnishing of an alcoholic product.
2679          (b) A reception center licensee shall report the information necessary to show
2680     compliance with this Subsection (5) to the department on an annual basis.
2681          Section 29. Section 32B-6-805 is amended to read:
2682          32B-6-805. Specific operational requirements for a reception center license.
2683          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2684     Requirements, a reception center licensee and staff of the reception center licensee shall
2685     comply with this section.
2686          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2687     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2688          (i) a reception center licensee;
2689          (ii) individual staff of a reception center licensee; or

2690          (iii) both a reception center licensee and staff of the reception center licensee.
2691          (2) In addition to complying with Section 32B-5-303, a reception center licensee shall
2692     store an alcoholic product in a storage area described in Subsection (14)(a).
2693          (3) (a) For the purpose described in Subsection (3)(b), a reception center licensee shall
2694     provide the following with advance notice of a scheduled event in accordance with rules made
2695     by the commission:
2696          (i) the department; and
2697          (ii) the local law enforcement agency responsible for the enforcement of this title in the
2698     jurisdiction where the reception center is located.
2699          (b) Any of the following may conduct a random inspection of an event:
2700          (i) an authorized representative of the commission or the department; or
2701          (ii) a law enforcement officer.
2702          (4) (a) Except as otherwise provided in this title, a reception center licensee may sell,
2703     offer for sale, or furnish an alcoholic product at an event only for consumption at the reception
2704     center's licensed premises.
2705          (b) A host of an event, a patron, or a person other than the reception center licensee or
2706     staff of the reception center licensee, may not remove an alcoholic product from the reception
2707     center's licensed premises.
2708          (c) Notwithstanding Section 32B-5-307, a patron at an event may not bring an
2709     alcoholic product into or onto, or remove an alcoholic product from, the reception center.
2710          (5) (a) A reception center licensee may not leave an unsold alcoholic product at an
2711     event following the conclusion of the event.
2712          (b) At the conclusion of an event, a reception center licensee shall:
2713          (i) destroy an opened and unused alcoholic product that is not saleable, under
2714     conditions established by the department; and
2715          (ii) return to the reception center licensee's approved locked storage area any:
2716          (A) opened and unused alcoholic product that is saleable; and
2717          (B) unopened container of an alcoholic product.

2718          (c) Except as provided in Subsection (5)(b) with regard to an open or sealed container
2719     of an alcoholic product not sold or consumed at an event, a reception center licensee:
2720          (i) shall store the alcoholic product in accordance with Subsection (2); and
2721          (ii) may use the alcoholic product at more than one event.
2722          (6) Notwithstanding Section 32B-5-308, a reception center licensee may not employ a
2723     minor in connection with an event at the reception center at which food is not made available.
2724          (7) A person's willingness to serve an alcoholic product may not be made a condition
2725     of employment as a server with a reception center licensee.
2726          (8) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
2727     product at the licensed premises on any day during the period that:
2728          (a) begins at 1 a.m.; and
2729          (b) ends at 9:59 a.m.
2730          (9) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
2731     product at an event at which a minor is present unless the reception center licensee makes food
2732     available at all times when an alcoholic product is sold, offered for sale, furnished, or
2733     consumed during the event.
2734          (10) (a) Subject to the other provisions of this Subsection (10), a patron may not have
2735     more than two alcoholic products of any kind at a time before the patron.
2736          (b) An individual portion of wine is considered to be one alcoholic product under
2737     Subsection (10)(a).
2738          (11) (a) A reception center licensee shall supervise and direct a person involved in the
2739     sale, offer for sale, or furnishing of an alcoholic product.
2740          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
2741     shall complete an alcohol training and education seminar.
2742          (12) A staff person of a reception center licensee shall remain at an event at all times
2743     when an alcoholic product is sold, offered for sale, furnished, or consumed at the event.
2744          (13) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
2745     product to a patron, and a patron may not consume an alcoholic product at a bar structure.

2746          (14) Except as provided in Subsection (15), a reception center licensee may dispense
2747     an alcoholic product only if:
2748          (a) the alcoholic product is dispensed from an area that is:
2749          (i) separated from an area for the consumption of food by a patron by a solid,
2750     translucent, permanent structural barrier such that the facilities for the storage or dispensing of
2751     an alcoholic product are:
2752          (A) not readily visible to a patron; and
2753          (B) not accessible by a patron; and
2754          (ii) apart from an area used:
2755          (A) for staging; or
2756          (B) as a lobby or waiting area;
2757          (b) the reception center licensee uses an alcoholic product that is:
2758          (i) stored in an area described in Subsection (14)(a); or
2759          (ii) in an area not described in Subsection (14)(a) on the licensed premises and:
2760          (A) immediately before the alcoholic product is dispensed it is in an unopened
2761     container;
2762          (B) the unopened container is taken to an area described in Subsection (14)(a) before it
2763     is opened; and
2764          (C) once opened, the container is stored in an area described in Subsection (14)(a); and
2765          (c) any instrument or equipment used to dispense an alcoholic product is located in an
2766     area described in Subsection (14)(a).
2767          (15) A reception center licensee may dispense an alcoholic product from a mobile
2768     serving area that:
2769          (a) is moved only by staff of the reception center licensee;
2770          (b) is capable of being moved by only one individual; and
2771          (c) is no larger than 6 feet long and 30 inches wide.
2772          (16) (a) A reception center licensee may not have an event on the licensed premises
2773     [except] unless the event:

2774          (i) is pursuant to a contract between a third party host of the event and the reception
2775     center licensee under which the reception center licensee provides an alcoholic product sold,
2776     offered for sale, or furnished at an event[.]; or
2777          (ii) is a private event.
2778          (b) At an event, a reception center licensee may furnish an alcoholic product:
2779          (i) without charge to a patron, except that the third party host of the event shall pay for
2780     an alcoholic product furnished at the event; or
2781          (ii) with a charge to a patron at the event.
2782          (c) The commission may by rule define what constitutes a "third-party host" for
2783     purposes of this Subsection (16) so that a reception center licensee and the third-party host are
2784     not owned by or operated by the same persons, except that the rule shall permit a reception
2785     center licensee to host an event for an immediate family member of the reception center
2786     licensee.
2787          (17) A reception center licensee shall have culinary facilities that are:
2788          (a) adequate to prepare a full meal; and
2789          (b) (i) located on the licensed premises; or
2790          (ii) under the same control as the reception center licensee.
2791          (18) (a) Except as provided in Subsection (18)(b), a reception center licensee may not
2792     operate an event:
2793          (i) that is open to the general public; and
2794          (ii) at which an alcoholic product is sold or offered for sale.
2795          (b) A reception center licensee may operate an event described in Subsection (18)(a) if
2796     the event is hosted:
2797          (i) at the reception center no more frequently than once a calendar year; and
2798          (ii) by a nonprofit organization that is organized and qualified under Section 501(c),
2799     Internal Revenue Code.
2800          Section 30. Section 32B-6-1001 is enacted to read:
2801     
Part 10. Hospitality Amenity License


2802          32B-6-1001. Hospitality Amenity License.
2803          This part is known as "Hospitality Amenity License."
2804          Section 31. Section 32B-6-1002 is enacted to read:
2805          32B-6-1002. Definitions.
2806          As used in this part:
2807          (1) "Hospitality guest" means an individual:
2808          (a) (i) who is a resident of a resort;
2809          (ii) for whom a resident of a resort provides lodging accommodations for
2810     compensation;
2811          (iii) for whom a hotel provides lodging accommodations for compensation; or
2812          (iv) for whom a resort provides lodging accommodations for compensation; and
2813          (b) who is at least 21 years of age.
2814          (2) "Boundary of a hotel" means the physical boundary of one or more contiguous
2815     parcels of real property owned or managed by the same person and on which a hotel is located.
2816          (3) "Boundary of a resort building" means the same as that term is defined in Section
2817     32B-8-102.
2818          (4) "Hotel" means a commercial lodging establishment that offers at least 40 rooms as
2819     temporary sleeping accommodations for compensation.
2820          Section 32. Section 32B-6-1003 is enacted to read:
2821          32B-6-1003. Commission's power to issue hospitality amenity license.
2822          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
2823     an alcoholic product on the person's premises as a hospitality amenity licensee, the person shall
2824     first obtain a hospitality amenity license from the commission in accordance with this part.
2825          (2) (a) The commission may only issue a hospitality amenity license to a hotel or a
2826     resort.
2827          (b) Beginning November 1, 2020, the commission may issue a hospitality amenity
2828     license to establish hospitality amenity licensed premises at places and in numbers the
2829     commission considers proper for the storage, sale, offer for sale, furnishing, and consumption

2830     of alcoholic products on premises operated as a hospitality amenity licensee.
2831          (3) The commission may authorize the sale of an alcoholic product at as many as three
2832     hospitality amenity locations within the boundary of a hotel or the boundary of a resort building
2833     under one hospitality amenity license if:
2834          (a) the hotel or resort has a minimum of 150 rooms for temporary sleeping
2835     accommodations; and
2836          (b) the commission determines the location, design, and construction of the hotel or
2837     resort requires more than one hospitality amenity location within the hotel or resort to serve the
2838     public convenience.
2839          (4) Except as otherwise provided in Section 32B-1-202, the commission may not issue
2840     a hospitality amenity license for premises that do not meet the proximity requirements of
2841     Subsection 32B-1-202(2).
2842          Section 33. Section 32B-6-1004 is enacted to read:
2843          32B-6-1004. Specific licensing requirements for a hospitality amenity license.
2844          (1) To obtain a hospitality amenity license a person shall comply with Chapter 5, Part
2845     2, Retail Licensing Process.
2846          (2) (a) A hospitality amenity license expires on October 31 of each year.
2847          (b) To renew a person's hospitality amenity license, a person shall comply with the
2848     renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
2849     September 30.
2850          (3) (a) The nonrefundable application fee for a hospitality amenity license is $330.
2851          (b) The initial license fee for a hospitality amenity license is $2,000.
2852          (c) The renewal fee for a hospitality amenity license is $1,000.
2853          (4) The bond amount required for a hospitality amenity license is the penal sum of
2854     $10,000.
2855          (5) Notwithstanding Subsection 32B-5-303(3), the department may approve an
2856     additional location in or on the licensed premises of a hospitality amenity licensee from which
2857     the hospitality amenity licensee may store, sell, offer for sale, furnish, or allow the

2858     consumption of an alcoholic product that is not included in the person's original application
2859     only:
2860          (a) upon proper application by a hospitality amenity licensee; and
2861          (b) in accordance with guidelines the commission approves.
2862          Section 34. Section 32B-6-1005 is enacted to read:
2863          32B-6-1005. Specific operational requirements for hospitality amenity license.
2864          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2865     Requirements, a hospitality amenity licensee and staff of the hospitality amenity licensee shall
2866     comply with this section.
2867          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2868     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2869          (i) the hospitality amenity licensee;
2870          (ii) individual staff of the hospitality amenity licensee; or
2871          (iii) both the hospitality amenity licensee and staff of the hospitality amenity licensee.
2872          (2) (a) A hospitality amenity licensee may sell, offer for sale, or furnish an alcoholic
2873     product:
2874          (i) to a hospitality guest; and
2875          (ii) for consumption in or on the hospitality amenity licensee's licensed premises.
2876          (b) (i) A hospitality amenity licensee may sell, offer for sale, or furnish an alcoholic
2877     product that is not spirituous liquor in or on:
2878          (A) licensed premises physically separated from an area to which a hospitality guest or
2879     the public has access by a permanent or temporary structure or barrier; or
2880          (B) licensed premises described in Subsection (2)(b)(ii).
2881          (ii) A hospitality amenity licensee may sell, offer for sale, or furnish spirituous liquor
2882     in or on licensed premises that:
2883          (A) allows access only through the use of a key or code; and
2884          (B) fills the entirety of a physically and permanently enclosed area within the hotel or
2885     resort.

2886          (c) Spirituous liquor may not be in or on the licensed premises described in Subsection
2887     (2)(b)(i)(A) of a hospitality amenity licensee, except for use:
2888          (i) as a flavoring on a dessert; and
2889          (ii) in the preparation of a flaming food dish or dessert.
2890          (d) A hospitality amenity licensee may not allow self-service of an alcoholic product in
2891     or on the hospitality amenity licensee's licensed premises.
2892          (3) (a) Subject to Subsections (3)(b) and (c), a hospitality guest may not have more
2893     than two alcoholic products of any kind at a time before the hospitality guest.
2894          (b) A hospitality guest may not have more than one spirituous liquor drink at a time
2895     before the hospitality guest.
2896          (c) An individual portion of wine is considered to be one alcoholic product under
2897     Subsection (3)(a).
2898          (4) A hospitality amenity licensee shall make food available at all times that the
2899     licensee sells, offers for sale, furnishes, or allows the consumption of an alcoholic product on
2900     the licensed premises.
2901          (5) (a) A hospitality amenity licensee may not sell, offer for sale, or furnish an
2902     alcoholic product any day during a period that:
2903          (i) begins at 1:00 a.m.; and
2904          (ii) ends at 9:59 a.m.
2905          (b) A hospitality amenity licensee shall remain open for one hour after the licensee
2906     ceases to sell and furnish an alcoholic product, during which time a hospitality guest in or on
2907     the hospitality amenity licensed premises may finish consuming:
2908          (i) a single drink containing spirituous liquor;
2909          (ii) a single serving of wine not exceeding five ounces;
2910          (iii) a single serving of heavy beer;
2911          (iv) a single serving of beer not exceeding 26 ounces; or
2912          (v) a single serving of a flavored malt beverage.
2913          (c) A hospitality amenity licensee is not required to remain open:

2914          (i) after all individuals have vacated the licensee's licensed premises; or
2915          (ii) during an emergency.
2916          (6) (a) Notwithstanding Section 32B-5-305, a hospitality amenity licensee may provide
2917     a hospitality guest up to two single servings of an alcoholic product free of charge or at a
2918     reduced rate, if:
2919          (i) the alcoholic product is not a spirituous liquor; and
2920          (ii) the hospitality amenity licensee offers the alcohol product:
2921          (A) to all hospitality guests;
2922          (B) during a specific time; and
2923          (C) on the hospitality amenity licensee's licensed premises.
2924          (b) Before a hospitality amenity licensee provides an alcoholic product free of charge
2925     or at a reduced rate as described in Subsection (6)(a), the licensee shall provide the department
2926     with advance notice of the event, in accordance with commission rules that permit a licensee to
2927     provide a single notice for a reoccurring event or multiple events.
2928          (7) A hospitality amenity licensee may permit a hospitality guest to purchase an
2929     alcoholic product through a charge to the hospitality guest's lodging accommodations.
2930          (8) (a) A hospitality guest, or a person other than the hospitality amenity licensee or
2931     staff of the hospitality amenity licensee, may not remove an alcoholic product from the
2932     hospitality amenity licensee's licensed premises.
2933          (b) Notwithstanding Subsection 32B-5-307(3), a hospitality guest may not bring an
2934     alcoholic product within the hospitality amenity licensee's licensed premises.
2935          (9) A hospitality amenity licensee shall display at each entrance to the licensee's
2936     licensed premises a conspicuous sign that:
2937          (a) measures at least 8-1/2 inches long and 11 inches wide; and
2938          (b) clearly states that entry is limited to individuals who are hospitality guests, as
2939     defined in this title.
2940          (10) A hospitality amenity licensee may not permit a minor to enter the licensee's
2941     licensed premises at any time during which an alcoholic product is sold, offered for sale,

2942     furnished, or consumed, unless the minor is accompanied at all times on the licensed premises
2943     by a hospitality guest.
2944          (11) A staff person of a hospitality amenity licensee shall remain on the licensed
2945     premises at all times when an alcoholic product is sold, offered for sale, furnished, or
2946     consumed in or on the licensed premises.
2947          (12) A hospitality amenity licensee may transfer an alcoholic product to or from
2948     another licensee within the boundary of the hotel or within the boundary of the resort building,
2949     if:
2950          (a) the hospitality amenity licensee and each licensee involved in the transfer tracks the
2951     transfer of the alcoholic product; and
2952          (b) the alcoholic product is in a sealed, unopened container.
2953          (13) (a) In addition to the requirements described in Section 32B-5-302, a hospitality
2954     amenity licensee shall maintain each of the following records for at least three years:
2955          (i) a record required under Section 32B-5-302; and
2956          (ii) a record that the commission requires a hospitality amenity licensee to use or
2957     maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2958     Rulemaking Act.
2959          (b) The department shall audit the records of a hospitality amenity licensee at least
2960     once each calendar year.
2961          Section 35. Section 32B-7-409 is enacted to read:
2962          32B-7-409. Multiple licenses on same premises.
2963          (1) Except as provided in Subsection (2), the commission may not issue and one or
2964     more licensees may not hold an off-premise beer retailer state license for the same licensed
2965     premises or adjacent licensed premises as a retail licensee, unless the licensed premises:
2966          (a) are separated by a permanent, opaque, floor-to-ceiling wall;
2967          (b) each have a separate entrance to the licensed premises; and
2968          (c) each have separate restroom facilities on the licensed premises.
2969          (2) The commission may issue and an off-premise beer retailer state licensee may hold

2970     more than one type of license for the same licensed premises or adjacent licensed premises, if:
2971          (a) a manufacturing licensee is located on or adjacent to the licensed premises; and
2972          (b) a package agency is located on or adjacent to the licensed premises.
2973          Section 36. Section 32B-8-102 is amended to read:
2974          32B-8-102. Definitions.
2975          As used in this chapter:
2976          (1) "Boundary of a resort building" means the physical boundary of the [land] real
2977     property reasonably related to a resort building and any structure or improvement to that land
2978     as determined by the commission.
2979          (2) "Dwelling" means a portion of a resort building:
2980          (a) owned by one or more individuals;
2981          (b) that is used or designated for use as a residence by one or more persons; and
2982          (c) that may be rented, loaned, leased, or hired out for a period of no longer than 30
2983     consecutive days by a person who uses it for a residence.
2984          (3) "Engaged in the management of the resort" may be defined by the commission by
2985     rule.
2986          [(4) "Invitee" means an individual who in accordance with Subsection 32B-8-304 (11)
2987     is authorized to use a resort spa by a host who is:]
2988          [(a) a resident; or]
2989          [(b) a public customer.]
2990          [(5) "Provisions applicable to a sublicense" means:]
2991          [(a) for a full-service restaurant sublicense, Chapter 6, Part 2, Full-Service Restaurant
2992     License;]
2993          [(b) for a limited-service restaurant sublicense, Chapter 6, Part 3, Limited-Service
2994     Restaurant License;]
2995          [(c) for a bar establishment sublicense, Chapter 6, Part 4, Bar Establishment License;]
2996          [(d) for an on-premise banquet sublicense, Chapter 6, Part 6, On-Premise Banquet
2997     License;]

2998          [(e) for an on-premise beer retailer sublicense, Chapter 6, Part 7, On-Premise Beer
2999     Retailer License; and]
3000          [(f) for a resort spa sublicense, Part 3, Resort Spa Sublicense.]
3001          [(6) "Public customer" means an individual who holds a customer card in accordance
3002     with Subsection 32B-8-304(12).]
3003          [(7)] (4) "Resident" means an individual who:
3004          (a) owns a dwelling located within a resort building; or
3005          (b) rents lodging accommodations for 30 consecutive days or less from:
3006          (i) an owner of a dwelling described in Subsection [(7)] (4)(a); or
3007          (ii) the resort licensee.
3008          [(8)] (5) "Resort" means a location:
3009          (a) on which is located one resort building; and
3010          (b) that is affiliated with a ski area that physically touches the boundary of the resort
3011     building.
3012          [(9)] (6) "Resort building" means a building:
3013          (a) that is primarily operated to provide dwellings or lodging accommodations;
3014          (b) that has at least 150 units that consist of a dwelling or lodging accommodations;
3015          (c) that consists of at least 400,000 square feet:
3016          (i) including only the building itself; and
3017          (ii) not including areas such as above ground surface parking; and
3018          (d) of which at least 50% of the units described in Subsection [(9)] (6)(b) consist of
3019     dwellings owned by a person other than the resort licensee.
3020          [(10) "Resort spa" means a spa, as defined by rule by the commission, that is within the
3021     boundary of a resort building.]
3022          [(11) "Sublicense" means:]
3023          [(a) a full-service restaurant sublicense;]
3024          [(b) a limited-service restaurant sublicense;]
3025          [(c) a bar establishment sublicense;]

3026          [(d) an on-premise banquet sublicense;]
3027          [(e) an on-premise beer retailer sublicense; and]
3028          [(f) a resort spa sublicense.]
3029          [(12) "Sublicense premises" means a building, enclosure, or room used pursuant to a
3030     sublicense in connection with the storage, sale, furnishing, or consumption of an alcoholic
3031     product, unless otherwise defined in this title or in the rules made by the commission.]
3032          Section 37. Section 32B-8-201 is amended to read:
3033          32B-8-201. Commission's power to issue a resort license.
3034          (1) Before a person as a resort under a single license may store, sell, offer for sale,
3035     furnish, or allow the consumption of an alcoholic product on sublicense premises, the person
3036     shall first obtain a resort license from the commission in accordance with this part.
3037          (2) (a) The commission may issue to a person a resort license to allow the storage, sale,
3038     offer for sale, furnishing, and consumption of an alcoholic product in connection with a resort
3039     designated in the resort license if the person operates at least four sublicenses under the resort
3040     license.
3041          (b) A resort license shall:
3042          (i) consist of:
3043          (A) a general resort license; and
3044          (B) [the] four or more sublicenses; and
3045          (ii) designate the boundary of the resort building.
3046          (c) This chapter does not prohibit an alcoholic product in or on the boundary of the
3047     resort building to the extent otherwise permitted by this title.
3048          [(d) The commission may not issue a sublicense that is separate from a resort license.]
3049          (3) [(a)] The commission may not issue a total number of resort licenses that at any
3050     time totals more than four.
3051          [(b) Subject to Subsection (3)(c), when determining the total number of licenses the
3052     commission has issued for each type of retail license, the commission may not include a
3053     sublicense as one of the retail licenses issued under the provisions applicable to the sublicense.]

3054          [(c) If a resort license issued under this chapter includes a sublicense that before the
3055     issuance of the resort license was a retail licensee under this chapter, the commission shall
3056     include the sublicense as one of the retail licenses issued under the provisions applicable to the
3057     sublicense in determining if the total number of licenses issued under the provisions applicable
3058     to the sublicense exceeds the number calculated by dividing the population of the state by the
3059     number specified in the provisions applicable to the sublicense.]
3060          Section 38. Section 32B-8-202 is amended to read:
3061          32B-8-202. Specific licensing requirements for resort license.
3062          (1) To obtain a resort license, in addition to complying with Chapter 5, Part 2, Retail
3063     Licensing Process, a person shall submit with the person's written application:
3064          [(a) the current business license for each sublicense, if the business license is separate
3065     from the person's business license;]
3066          [(b)] (a) evidence:
3067          (i) of proximity of the resort building to any community location[, with proximity
3068     requirements being governed by Section 32B-1-202];
3069          (ii) that each [of the four or more sublicense] proposed sublicensed premises is entirely
3070     within the boundaries of the resort building; and
3071          (iii) that the building designated in the application as the resort building qualifies as a
3072     resort building; and
3073          [(c)] (b) a description and boundary map of the resort building[;].
3074          [(d) a description, floor plan, and boundary map of each sublicense premises
3075     designating:]
3076          [(i) any location at which the person proposes that an alcoholic product be stored; and]
3077          [(ii) a designated location on the sublicense premises from which the person proposes
3078     that an alcoholic product be sold, furnished, or consumed;]
3079          [(e) evidence that the resort license person carries dramshop insurance coverage equal
3080     to the sum of at least $1,000,000 per occurrence and $2,000,000 in the aggregate to cover both
3081     the general resort license and each sublicense; and]

3082          [(f) a signed consent form stating that the person will permit any authorized
3083     representative of the commission, department, or any law enforcement officer to have
3084     unrestricted right to enter the boundary of the resort building and each sublicense premises.]
3085          (2) (a) A resort license expires on October 31 of each year.
3086          (b) To renew a person's resort license, the person shall comply with the requirements of
3087     Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
3088          (3) (a) The nonrefundable application fee for a resort license is $300.
3089          (b) The initial license fee for a resort license is calculated as follows:
3090          (i) [$10,000] if four sublicenses are being applied for under the resort license, $10,000;
3091     or
3092          (ii) if more than four sublicenses are being applied for under the resort license, the sum
3093     of:
3094          (A) $10,000; and
3095          (B) $2,000 for each sublicense in excess of four sublicenses for which the person is
3096     applying.
3097          (c) The renewal fee for a resort license is $1,000 for each sublicense under the resort
3098     license.
3099          (4) (a) The bond amount required for a resort license is the penal sum of $25,000.
3100          (b) A resort licensee is not required to have a separate bond for each sublicense, except
3101     that the aggregate of the bonds posted by the resort licensee shall cover each sublicense under
3102     the resort license.
3103          (5) The commission may not issue a resort license for a resort building that does not
3104     meet the proximity requirements of Section 32B-1-202.
3105          (6) In accordance with Subsection 32B-8d-103(4), a resort licensee may request to add
3106     a sublicense after the commission issues the resort licensee's resort license.
3107          Section 39. Section 32B-8-401 is amended to read:
3108          32B-8-401. Specific operational requirements for resort license.
3109          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational

3110     Requirements, a resort licensee, staff of the resort licensee, and a sublicensee or a person
3111     otherwise operating under a sublicense shall comply with this section.
3112          (b) Subject to Section 32B-8-502, failure to comply as provided in Subsection (1)(a)
3113     may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
3114     Enforcement Act, against:
3115          (i) [a] the resort licensee;
3116          (ii) individual staff of [a] the resort licensee;
3117          (iii) a sublicensee or person otherwise operating under a sublicense of the resort
3118     licensee;
3119          (iv) individual staff of a sublicensee or person otherwise operating under a sublicense
3120     of the resort licensee; or
3121          (v) any combination of the persons listed in [this Subsection (1)(b)] Subsections
3122     (1)(b)(i) through (iv).
3123          (2) (a) A resort licensee may not sell, offer for sale, or furnish an alcoholic product
3124     except:
3125          (i) on [a sublicense] sublicensed premises;
3126          (ii) pursuant to a permit issued under this title; or
3127          (iii) under a package agency agreement with the department, subject to Chapter 2, Part
3128     6, Package Agency.
3129          (b) A resort licensee who sells, offers for sale, or furnishes an alcoholic product as
3130     provided in Subsection (2)(a), shall sell, offer for sale, or furnish the alcoholic product:
3131          (i) if on a sublicense premises, in accordance with the operational requirements [under
3132     the provisions applicable to the sublicense, except as provided in Section 32B-8-402] described
3133     in Section 32B-8d-104;
3134          (ii) if under a permit issued under this title, in accordance with the operational
3135     requirements under the provisions applicable to the permit; and
3136          (iii) if as a package agency, in accordance with the contract with the department and
3137     Chapter 2, Part 6, Package Agency.

3138          [(3) A resort licensee shall comply with Subsections 32B-5-301(4) and (5) within the
3139     boundary of the resort building.]
3140          [(4)] (3) A resort licensee shall operate in a manner so that at least 70% of the annual
3141     aggregate of the gross receipts related to the sale of food or beverages for the resort license and
3142     each of [its] the resort licensee's sublicenses is from the sale of food, not including:
3143          (a) mix for an alcoholic product; and
3144          (b) a charge in connection with the service of an alcoholic product.
3145          [(5)] (4) (a) A resort licensee shall supervise and direct a person involved in the sale,
3146     offer for sale, or furnishing of an alcoholic product under a resort license.
3147          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
3148     under a resort license shall complete the alcohol training and education seminar.
3149          [(6)] (5) (a) Room service of an alcoholic product to a lodging accommodation of a
3150     resort licensee shall be provided in person by staff of [a] the resort licensee only to an adult
3151     occupant in the lodging accommodation.
3152          (b) An alcoholic product may not be left outside a lodging accommodation for retrieval
3153     by an occupant.
3154          Section 40. Section 32B-8-501 is amended to read:
3155          32B-8-501. Enforcement of qualifications for resort license or sublicense.
3156          (1) The commission or department may not take an action described in Subsection (2)
3157     with regard to a resort license unless the person who is found not to meet the qualifications of
3158     [Section 32B-8-203] Subsection 32B-1-304(1) is one of the following who is engaged in the
3159     management of the resort:
3160          (a) a partner;
3161          (b) a managing agent;
3162          (c) a manager;
3163          (d) an officer;
3164          (e) a director;
3165          (f) a stockholder who holds at least 20% of the total issued and outstanding stock of the

3166     corporation;
3167          (g) a member who owns at least 20% of the limited liability company; or
3168          (h) a person employed to act in a supervisory or managerial capacity for the resort
3169     licensee.
3170          (2) Subsection (1) applies to:
3171          (a) the commission immediately suspending or revoking a resort license, if after the
3172     day on which the resort license is issued, a person described in Subsection [32B-8-203(1)]
3173     32B-1-304(7)(a):
3174          (i) is found to have been convicted of an offense described in Subsection
3175     32B-1-304(1)(a) before the commission issues the resort license [is issued]; or
3176          (ii) on or after the day on which the commission issues the resort license [is issued]:
3177          (A) is convicted of an offense described in Subsection 32B-1-304(1)(a)(i) or (ii); or
3178          (B) (I) is convicted of driving under the influence of alcohol, a drug, or the combined
3179     influence of alcohol and a drug; and
3180          (II) was convicted of driving under the influence of alcohol, a drug, or the combined
3181     influence of alcohol and a drug within five years before the day on which the person is
3182     convicted of the offense described in Subsection (2)(b)(ii)(A);
3183          (b) the director taking an emergency action by immediately suspending the operation of
3184     a resort license in accordance with Title 63G, Chapter 4, Administrative Procedures Act, for
3185     the period during which the criminal matter is being adjudicated if a person described in
3186     Subsection [32B-8-203(1)] 32B-1-304(7):
3187          (i) is arrested on a charge for an offense described in Subsection 32B-1-304(1)(a)(i) or
3188     (ii); or
3189          (ii) (A) is arrested on a charge for the offense of driving under the influence of alcohol,
3190     a drug, or the combined influence of alcohol and a drug; and
3191          (B) was convicted of driving under the influence of alcohol, a drug, or the combined
3192     influence of alcohol and a drug within five years before the day on which the person is arrested
3193     on a charge described in Subsection (2)(b)(ii)(A); and

3194          (c) the commission suspending or revoking a resort license because a person to whom
3195     the commission issues a resort license [is issued] under this chapter no longer possesses the
3196     qualifications required by this title for obtaining the resort license.
3197          (3) This section does not prevent the commission from suspending or revoking a
3198     sublicense that is part of a resort license if a person employed to act in a supervisory or
3199     managerial capacity for a sublicense no longer meets the qualification requirements in the
3200     provisions applicable to the sublicense.
3201          Section 41. Section 32B-8-502 is amended to read:
3202          32B-8-502. Enforcement of operational requirements for resort license or
3203     sublicense.
3204          (1) (a) Except as provided in Subsection (2) [and in addition to Subsection (3)], failure
3205     by a person described in Subsection (1)(b) to comply with this chapter or [an operational
3206     requirement under a provision applicable to a sublicense] Chapter 8d, Sublicense Act, may
3207     result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
3208     Enforcement Act, against:
3209          (i) a resort licensee;
3210          (ii) individual staff of a resort licensee;
3211          (iii) a sublicense or person otherwise operating under a sublicense;
3212          (iv) individual staff of a sublicense or person otherwise operating under a sublicense;
3213     or
3214          (v) any combination of the persons listed in [this Subsection (1)(a)] Subsections
3215     (1)(a)(i) through (iv).
3216          (b) This Subsection (1) applies to:
3217          (i) a resort licensee;
3218          (ii) a sublicense or person operating under a sublicense of a resort license; or
3219          (iii) staff of a resort licensee or sublicensee or other person operating under a
3220     sublicense of a resort license.
3221          (2) (a) Notwithstanding the other provisions of this title, if the failure to comply with

3222     this chapter described in Subsection (1) relates to a sale, offer for sale, or furnishing of an
3223     alcoholic product on [a sublicense] sublicensed premises, a resort licensee or an individual
3224     member of the resort licensee's management personnel is subject to a sanction described in
3225     Subsection (1), only if the commission finds that:
3226          (i) during the three years before the day on which the commission makes the finding,
3227     there are three or more disciplinary proceedings against any sublicensee or person operating
3228     under a sublicense of the resort licensee for failure to comply with an operational requirement
3229     applicable to the sublicense; and
3230          (ii) the resort licensee has not taken reasonable steps to prevent persons operating
3231     under a sublicense of the resort licensee from failing to comply with operational requirements
3232     applicable to the sublicense.
3233          (b) This Subsection (2) applies if the three or more disciplinary proceedings described
3234     in Subsection (2)(a) are against:
3235          (i) the same person operating under a sublicense of the resort licensee; or
3236          (ii) two or more different persons operating under a sublicense of the resort licensee.
3237          [(3) An operational requirement applicable to a person operating under a sublicense is
3238     enforced as provided by the provisions applicable to the sublicense.]
3239          Section 42. Section 32B-8a-101 is amended to read:
3240     
Part 8a. Transfer of Alcohol License Act

3241          32B-8a-101. Title.
3242          This chapter is known as the "Transfer of [Retail] Alcohol License Act."
3243          Section 43. Section 32B-8a-102 is amended to read:
3244          32B-8a-102. Definitions.
3245          As used in this chapter:
3246          (1) "Alcohol license" means:
3247          (a) a retail license;
3248          (b) an off-premise beer retailer state license;
3249          (c) a brewery manufacturing license;

3250          (d) a distillery manufacturing license;
3251          (e) a winery manufacturing license; and
3252          (f) a special use permit that is an industrial or manufacturing use permit.
3253          [(1)] (2) "Business entity" means a corporation, partnership, limited liability company,
3254     sole proprietorship, or similar entity.
3255          [(2)] (3) "Transfer fee" means a fee described in Section 32B-8a-303.
3256          [(3)] (4) "Transferee" means a person who intends to hold [a retail] an alcohol license
3257     after the transfer of the [retail] alcohol license if the transfer is approved by the commission
3258     under this chapter.
3259          [(4)] (5) "Transferor" means [a retail] an alcohol licensee who intends to transfer [a
3260     retail] an alcohol license held by the [retail] alcohol licensee if the commission approves the
3261     transfer [is approved by the commission] under this chapter.
3262          Section 44. Section 32B-8a-201 is amended to read:
3263          32B-8a-201. Transferability of alcohol license.
3264          (1) (a) [A retail] An alcohol license is separate from other property of [a retail] an
3265     alcohol licensee.
3266          (b) Notwithstanding Subsection (1)(a), the Legislature may terminate or modify the
3267     existence of any type of [retail] alcohol license.
3268          (c) Except as provided in this chapter, a person may not:
3269          (i) transfer [a retail] an alcohol license from one location to another location; or
3270          (ii) sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the
3271     [retail] alcohol license to another person whether for monetary gain or not.
3272          (d) If approved by the commission and subject to the requirements of this chapter, [a
3273     retail] an alcohol licensee may transfer [a retail] the alcohol license:
3274          (i) from the [retail] alcohol licensee to another person, regardless of whether [it] the
3275     alcohol license is for the same premises; and
3276          (ii) from one premises of the [retail] alcohol licensee to another premises of the [retail]
3277     alcohol licensee.

3278          (2) (a) The commission may not approve the transfer of [a retail] an alcohol license
3279     that results in a transferee holding a different type of [retail] alcohol license than is held by the
3280     transferor.
3281          (b) [The] Unless the alcohol license is a bar establishment license, the commission may
3282     not approve the transfer of [a retail] an alcohol license from one location to another location, if
3283     the location of the premises to which the [retail] alcohol license would be transferred is in a
3284     different county than the location of the licensed premises of the [retail] alcohol license being
3285     transferred.
3286          (3) The commission may not approve the transfer of [a retail] an alcohol license if the
3287     transferee:
3288          (a) is not eligible to hold the same type of [retail] alcohol license as the [retail] alcohol
3289     license to be transferred at the premises to which the [retail] alcohol license would be
3290     transferred; or
3291          (b) is delinquent in the payment of any of the following that arises in full or in part out
3292     of the operation of a [retail] alcohol license:
3293          (i) a tax, fee, or charge due under this title or Title 59, Revenue and Taxation; or
3294          (ii) an amount due under Title 35A, Chapter 4, Employment Security Act.
3295          (4) This chapter does not apply to a:
3296          (a) master full-service restaurant license; [or]
3297          (b) master limited-service restaurant license[.]; or
3298          (c) master off-premise beer retailer state license.
3299          Section 45. Section 32B-8a-202 is amended to read:
3300          32B-8a-202. Effect of transfer of ownership of business entity.
3301          (1) (a) When the ownership of 51% or more of the shares of stock of a corporation is
3302     acquired by or transferred to one or more persons who did not hold the ownership of 51% of
3303     those shares of stock on the date [a retail] an alcohol license is issued to the corporation, the
3304     corporation shall comply with this chapter to transfer the [retail] alcohol license to the
3305     corporation as if the corporation is newly constituted.

3306          (b) When there is a new general partner or when the ownership of 51% or more of the
3307     capital or profits of a limited partnership is acquired by or transferred to one or more persons as
3308     general or limited partners and who did not hold ownership of 51% or more of the capital or
3309     profits of the limited partnership on the date [a retail] an alcohol license is issued to the limited
3310     partnership, the limited partnership shall comply with this chapter to transfer the [retail]
3311     alcohol license to the limited partnership as if the limited partnership is newly constituted.
3312          (c) When the ownership of 51% or more of the interests in a limited liability company
3313     is acquired by or transferred to one or more persons as members who did not hold ownership of
3314     51% or more of the interests in the limited liability company on the date [a retail] an alcohol
3315     license is issued to the limited liability company, the limited liability company shall comply
3316     with this chapter to transfer the [retail] alcohol license to the limited liability company as if the
3317     limited liability company is newly constituted.
3318          (2) A business entity shall comply with this section within 60 days after the day on
3319     which the event described in Subsection (1) occurs.
3320          Section 46. Section 32B-8a-203 is amended to read:
3321          32B-8a-203. Operational requirements for transferee.
3322          (1) (a) A transferee shall begin operations of the [retail] alcohol license within 30 days
3323     [from] after the day on which a transfer is approved by the commission, except that:
3324          (i) the department may grant an extension of this time period not to exceed 30 days;
3325     and
3326          (ii) after the extension is authorized by the department under Subsection (1)(a)(i), the
3327     commission may grant one or more additional extensions not to exceed, in the aggregate, seven
3328     months from the day on which the commission approves the transfer, if the transferee can
3329     demonstrate to the commission that the transferee:
3330          (A) cannot begin operations because the transferee is improving the licensed premises;
3331          (B) has obtained a building permit for the improvements described in Subsection
3332     (1)(a)(ii)(A); and
3333          (C) is working expeditiously to complete the improvements to the licensed premises.

3334          (b) A transferee is considered to have begun operations of the [retail] alcohol license if
3335     the transferee:
3336          (i) has a licensed premises that is open for business;
3337          (ii) (A) sells, offers for sale, or furnishes alcoholic products to a patron on the licensed
3338     premises described in Subsection (1)(b)(i); [and]
3339          (B) manufactures an alcoholic product on the licensed premises described in
3340     Subsection (1)(b)(i); or
3341          (C) engages in an industrial or manufacturing pursuit containing alcohol on the
3342     licensed premises described in Subsection (1)(b)(i); and
3343          (iii) has a valid business license.
3344          (2) If a transferee fails to begin operations of the [retail] alcohol license within the time
3345     period required by Subsection (1), the following are automatically forfeited effective
3346     immediately:
3347          (a) the [retail] alcohol license; and
3348          (b) the [retail] alcohol license fee.
3349          (3) A transferee shall begin operations of the [retail] alcohol license at the location to
3350     which the transfer applies before the transferee may seek a transfer of the [retail] alcohol
3351     license to a different location.
3352          (4) Notwithstanding Subsection (1), the commission may not issue a conditional
3353     license unless the requirements of Section 32B-5-205 are met, except that the time periods
3354     required by this section supersede the time period provided in Section 32B-5-205.
3355          Section 47. Section 32B-8a-302 is amended to read:
3356          32B-8a-302. Application -- Approval process.
3357          (1) To obtain the transfer of [a retail] an alcohol license from [a retail] an alcohol
3358     licensee, the transferee shall file a transfer application with the department that includes:
3359          (a) an application in the form provided by the department;
3360          (b) a statement as to whether the consideration, if any, to be paid to the transferor
3361     includes payment for transfer of the [retail] alcohol license;

3362          (c) a statement executed under penalty of perjury that the consideration as set forth in
3363     the escrow agreement required by Section 32B-8a-401 is deposited with the escrow holder; and
3364          (d) (i) an application fee of $300; and
3365          (ii) a transfer fee determined in accordance with Section 32B-8a-303.
3366          (2) If the intended transfer of [a retail] an alcohol license involves consideration, at
3367     least 10 days before the commission may approve the transfer, the department shall post a
3368     notice of the intended transfer on the Public Notice Website created in Section 63F-1-701 that
3369     states the following:
3370          (a) the name of the transferor;
3371          (b) the name and address of the business currently associated with the [retail] alcohol
3372     license;
3373          (c) instructions for filing a claim with the escrow holder; and
3374          (d) the projected date that the commission may consider the transfer application.
3375          (3) (a) (i) Before the commission may approve the transfer of [a retail] an alcohol
3376     license, the department shall conduct an investigation and may hold public hearings to gather
3377     information and make recommendations to the commission as to whether the transfer of the
3378     [retail] alcohol license should be approved.
3379          (ii) The department shall forward the information and recommendations described in
3380     this Subsection (3)(a) to the commission to aid in the commission's determination.
3381          (b) Before approving a transfer, the commission shall:
3382          (i) determine that the transferee filed a complete application;
3383          (ii) determine that the transferee is eligible to hold the type of [retail] alcohol license
3384     that is to be transferred at the premises to which the [retail] alcohol license would be
3385     transferred;
3386          (iii) determine that the transferee is not delinquent in the payment of an amount
3387     described in Subsection 32B-8a-201(3);
3388          (iv) determine that the transferee is not disqualified under Section 32B-1-304;
3389          (v) consider the locality within which the proposed licensed premises is located,

3390     including:
3391          (A) the factors listed in Section 32B-5-203 for the issuance of a retail license;
3392          (B) the factors listed in Section 32B-7-404 for the issuance of an off-premise beer
3393     retailer state license;
3394          (C) the factors listed in Section 32B-11-206 for the issuance of a manufacturing
3395     license; and
3396          (D) the factors listed in Section 32B-10-204 for the issuance of a special use permit
3397     that is an industrial and manufacturing use permit;
3398          (vi) consider the transferee's ability to manage and operate the retail license to be
3399     transferred, including:
3400          (A) the factors listed in Section 32B-5-203 for the issuance of a retail license;
3401          (B) the factors listed in Section 32B-7-404 for the issuance of an off-premise beer
3402     retailer state license;
3403          (C) the factors listed in Section 32B-11-206 for the issuance of a manufacturing
3404     license; and
3405          (D) the factors listed in Section 32B-10-204 for the issuance of a special use permit
3406     that is an industrial and manufacturing use permit;
3407          (vii) consider the nature or type of [retail] alcohol licensee operation of the transferee,
3408     including:
3409          (A) the factors listed in Section 32B-5-203 for the issuance of a retail license;
3410          (B) the factors listed in Section 32B-7-404 for the issuance of an off-premise beer
3411     retailer state license;
3412          (C) the factors listed in Section 32B-11-206 for the issuance of a manufacturing
3413     license; and
3414          (D) the factors listed in Section 32B-10-204 for the issuance of a special use permit
3415     that is an industrial and manufacturing use permit;
3416          (viii) if the transfer involves consideration, determine that the transferee and transferor
3417     have complied with Part 4, Protection of Creditors; and

3418          (ix) consider any other factor the commission considers necessary.
3419          (4) Except as otherwise provided in Section 32B-1-202, the commission may not
3420     approve the transfer of [a retail] an alcohol license to premises that do not meet the proximity
3421     requirements of Subsection 32B-1-202(2), Section 32B-7-201, or Section 32B-11-210, as
3422     applicable.
3423          Section 48. Section 32B-8a-303 is amended to read:
3424          32B-8a-303. Transfer fees.
3425          (1) Except as otherwise provided in this section, the department shall charge the
3426     following transfer fees:
3427          (a) for a transfer of [a retail] an alcohol license from [a retail] an alcohol licensee to
3428     another person, the transfer fee equals the initial license fee amount specified in the relevant
3429     chapter or part [under Chapter 6, Specific Retail License Act,] for the type of [retail] alcohol
3430     license that is being transferred;
3431          (b) for the transfer of [a retail] an alcohol license from one premises to another
3432     premises of the same [retail] alcohol licensee, the transfer fee equals the renewal fee amount
3433     specified in the relevant chapter or part [under Chapter 6, Specific Retail License Act,] for the
3434     type of [retail] alcohol license that is being transferred;
3435          (c) subject to Subsections (1)(d) and (2), for a transfer described in Section
3436     32B-8a-202, the transfer fee equals the renewal fee amount specified in the relevant chapter or
3437     part [under Chapter 6, Specific Retail License Act,] for the type of [retail] alcohol license that
3438     is being transferred;
3439          (d) for a transfer of [a retail] an alcohol license to include the parent or adult child of [a
3440     retail] an alcohol licensee, when no consideration is given for the transfer, the transfer fee is
3441     one-half of the amount described in Subsection (1)(a); and
3442          (e) for one of the following transfers, the transfer fee is one-half of the amount
3443     described in Subsection (1)(a):
3444          (i) [a retail] an alcohol license of one spouse to the other spouse when the transfer
3445     application is made before the entry of a final decree of divorce;

3446          (ii) [a retail] an alcohol license of a deceased [retail] alcohol licensee to:
3447          (A) the one or more surviving partners of the deceased [retail] alcohol licensee;
3448          (B) the executor, administrator, or conservator of the estate of the deceased [retail]
3449     alcohol licensee; or
3450          (C) the surviving spouse of the deceased [retail] alcohol licensee, if the deceased
3451     [retail] alcohol licensee leaves no estate to be administered;
3452          (iii) [a retail] an alcohol license of an incompetent person or conservatee by or to the
3453     conservator or guardian for the incompetent person or conservatee who is the [retail] alcohol
3454     licensee;
3455          (iv) [a retail] an alcohol license of a debtor in a bankruptcy case by or to the trustee of a
3456     bankrupt estate of the [retail] alcohol licensee;
3457          (v) [a retail] an alcohol license of a person for whose estate a receiver is appointed may
3458     be transferred by or to a receiver of the estate of the [retail] alcohol licensee;
3459          (vi) [a retail] an alcohol license of an assignor for the benefit of creditors by or to an
3460     assignee for the benefit of creditors of a licensee with the consent of the assignor;
3461          (vii) [a retail] an alcohol license transferred to a revocable living trust if the [retail]
3462     alcohol licensee is the trustee of the revocable living trust;
3463          (viii) [a retail] an alcohol license transferred between partners when no new partner is
3464     being licensed;
3465          (ix) [a retail] an alcohol license transferred between corporations whose outstanding
3466     shares of stock are owned by the same individuals;
3467          (x) upon compliance with Section 32B-8a-202, [a retail] an alcohol license to a
3468     corporation whose entire stock is owned by:
3469          (A) the transferor; or
3470          (B) the spouse of the transferor;
3471          (xi) upon compliance with Section 32B-8a-202, [a retail] an alcohol license to a limited
3472     liability company whose entire membership consists of:
3473          (A) the transferor; or

3474          (B) the spouse of the transferor; or
3475          (xii) [a retail] an alcohol license transferred from a corporation to a person who owns,
3476     or whose spouse owns, the entire stock of the corporation.
3477          (2) If there are multiple and simultaneous transfers of [retail] alcohol licenses under
3478     Section 32B-8a-202, a transfer fee described in Subsection (1)(c) is required for only one of the
3479     [retail] alcohol licenses being transferred.
3480          (3) (a) Except as provided in Subsection (3)(b), a transfer fee required under
3481     Subsection (1) is due for a transfer subsequent to a transfer under Subsection (1)(e)(xii) if the
3482     subsequent transfer is of 51% of the stock in a corporation to which [a retail] an alcohol license
3483     is transferred by [a retail] an alcohol licensee or the spouse of [a retail] an alcohol licensee.
3484          (b) If the transfer of stock described in Subsection (3)(a) is from a parent to the parent's
3485     adult child or adult grandchild, the transfer fee is one-half of the amount described in
3486     Subsection (1)(a).
3487          (4) Money collected from a transfer fee shall be deposited in the Liquor Control Fund.
3488          Section 49. Section 32B-8a-401 is amended to read:
3489          32B-8a-401. Notification of creditors -- Escrow -- Priority of payments.
3490          (1) Before the filing of a transfer application with the department, if the intended
3491     transfer of [a retail] an alcohol license involves consideration:
3492          (a) the transferor shall provide the transferee a list of creditors who have a claim
3493     against the transferor;
3494          (b) the transferee shall notify each creditor on the list provided under Subsection (1)(a)
3495     of the intended transfer;
3496          (c) the transferor and the transferee shall establish an escrow with a person who is not a
3497     party to the transfer to act as escrow holder;
3498          (d) the transferee shall deposit with the escrow holder the full amount of the
3499     consideration; and
3500          (e) the transferor and transferee shall enter into an agreement that:
3501          (i) the consideration is deposited with the escrow holder;

3502          (ii) requires the escrow holder to distribute the consideration within a reasonable time
3503     after the completion of the transfer of the [retail] alcohol license; and
3504          (iii) directs the escrow holder to distribute the consideration in accordance with
3505     Subsection (2).
3506          (2) Subject to the other requirements of this section, if a creditor with a claim against
3507     the transferor files the claim with the escrow holder before the escrow holder is notified by the
3508     department that the transfer is approved, the escrow holder shall distribute the consideration in
3509     the following order:
3510          (a) to the payment of:
3511          (i) the United States for a claim based on income or withholding taxes; and
3512          (ii) a claim based on a tax other than specified in Subsection 32B-8a-201(3);
3513          (b) to the payment of a claim for wages, salaries, or fringe benefits earned or accrued
3514     by an employee of the transferor before the transfer or opening of the escrow for the transfer of
3515     the [retail] alcohol license;
3516          (c) to the payment of a claim of a secured creditor to the extent of the proceeds that
3517     arise from the sale of the security;
3518          (d) to the payment of a claim on a mechanics lien;
3519          (e) to the payment of:
3520          (i) escrow fees;
3521          (ii) a claim for prevailing brokerage fees for services rendered; and
3522          (iii) a claim for reasonable attorney fees for services rendered;
3523          (f) to the payment of claims:
3524          (i) of a landlord, to the extent of proceeds on past due rent or lease requirements;
3525          (ii) for goods sold and delivered to the [retail] alcohol licensee for resale at the
3526     transferor's licensed premises; and
3527          (iii) for services rendered, performed, or supplied in connection with the operation of
3528     the transferor's licensed business;
3529          (g) to the payment of other types of claims that are reduced to court-ordered judgments,

3530     including a claim for court-ordered support of a minor child; and
3531          (h) to the payment of all other claims.
3532          Section 50. Section 32B-8a-402 is amended to read:
3533          32B-8a-402. Duties of escrow holder.
3534          (1) To act as an escrow holder under Section 32B-8a-401, a person shall comply with
3535     Title 7, Chapter 22, Regulation of Independent Escrow Agents.
3536          (2) Not more than 10 days after [receiving] the day on which the escrow holder
3537     receives a claim from a creditor, an escrow holder shall acknowledge receipt of the claim.
3538          (3) (a) Not more than 10 days after [a retail] the day on which an alcohol license is
3539     transferred and before the distribution of the consideration held by an escrow holder, the
3540     escrow holder shall advise each creditor who files a claim against the escrow whether there is
3541     sufficient consideration in the escrow to pay all creditors in full.
3542          (b) If the consideration in an escrow is sufficient to pay all creditors in full, the escrow
3543     holder shall advise each creditor of the date on or before which payment will be made.
3544          (c) If there are not sufficient assets to pay all creditors in full, the escrow holder shall
3545     advise each creditor who filed a claim of the following:
3546          (i) the total assets placed in escrow with the escrow holder;
3547          (ii) the nature of each asset;
3548          (iii) the name of each creditor who filed a claim against the escrow and the amount of
3549     the claim;
3550          (iv) the amount the escrow holder proposes to pay each creditor; and
3551          (v) the date on or before which the escrow holder will pay each creditor.
3552          (4) An escrow holder may not release money in the escrow in exchange for:
3553          (a) a promissory note; or
3554          (b) any other consideration of less value to the creditors than the money exchanged.
3555          (5) If sufficient assets are not available in the escrow for the payment of the claims in
3556     full, the escrow holder shall pay the claims pro rata.
3557          (6) If the [retail] alcohol licensee who transfers the [retail] alcohol license disputes a

3558     claim, the escrow holder shall:
3559          (a) notify the creditor making the claim;
3560          (b) retain the amount to be paid to the creditor under this section for a period of 25
3561     days; and
3562          (c) to the extent that creditors do not successfully recover the amount described in
3563     Subsection (6)(b) in accordance with this part, pay the amount to the [retail] alcohol licensee.
3564          (7) An escrow holder shall distribute the money in the escrow account after the
3565     payments made under Subsections 32B-8a-401(2) and this section within a reasonable time
3566     after the completion of the transfer of the [retail] alcohol license.
3567          Section 51. Section 32B-8a-404 is amended to read:
3568          32B-8a-404. When escrow not required.
3569          (1) Notwithstanding the other provisions of this part, an escrow is not required to be
3570     established in connection with the transfer of [a retail] an alcohol license if:
3571          (a) a business entity files with the department a guaranty of full, prompt, and faithful
3572     payment of all claims of a creditor of the [retail] alcohol licensee; and
3573          (b) the guaranty described in Subsection (1)(a) is accepted in writing by the creditors
3574     listed in Subsection 32B-8a-401(2).
3575          (2) A transfer of [a retail] an alcohol license described in Subsection (1) is not
3576     considered complete until:
3577          (a) the guarantor pays all creditors' claims in full; and
3578          (b) the guarantor files with the department a statement executed under penalty of
3579     perjury that all conditions of the transfer have been satisfied.
3580          (3) Payment of a claim by a guarantor shall be made in United States currency or by
3581     certified check in a manner acceptable to the creditors.
3582          (4) This section applies only in the case of a transfer in which the guarantor business
3583     entity has a net worth on a consolidated basis, according to [its] the guarantor business entity's
3584     most recent audited financial statement, of not less than $5,000,000.
3585          Section 52. Section 32B-8a-501 is amended to read:

3586          32B-8a-501. License not to be pledged as security -- Prohibited transfers.
3587          (1) [A retail] An alcohol licensee may not enter into any agreement under which the
3588     [retail] alcohol licensee pledges the [retail] alcohol license as security for a loan or as security
3589     for the fulfillment of any agreement.
3590          (2) [A retail] An alcohol licensee may not transfer [a retail] an alcohol license if the
3591     transfer is to:
3592          (a) satisfy a loan or to fulfill an agreement entered into more than 90 days [preceding
3593     the date] before the day on which the transfer application is filed;
3594          (b) gain or establish a preference to or for any creditor of the transferor, except as
3595     provided by Section 32B-8a-202; or
3596          (c) defraud or injure a creditor of the transferor.
3597          (3) An alcohol licensee may not transfer a bar establishment license in a manner that
3598     circumvents the limitations of Subsection 32B-8d-103(3)(b) or (c).
3599          [(3)] (4) [A retail] An alcohol licensee may not transfer [a retail] an alcohol license
3600     except in accordance with this chapter.
3601          Section 53. Section 32B-8a-502 is amended to read:
3602          32B-8a-502. Effect of transfer in violation of this chapter.
3603          (1) If [a retail] an alcohol license is transferred in violation of this chapter, the
3604     commission may:
3605          (a) void the transfer; and
3606          (b) require the [retail] alcohol license to be forfeited.
3607          (2) Subsection (1) is in addition to any other penalty under this title that is applicable to
3608     the person who violates this chapter.
3609          Section 54. Section 32B-8b-102 is amended to read:
3610          32B-8b-102. Definitions.
3611          As used in this chapter:
3612          (1) "Boundary of a hotel" means the physical boundary of one or more contiguous
3613     parcels of real [estate] property owned or managed by the same person and on which a hotel is

3614     located.
3615          (2) "Hotel" means one or more buildings that:
3616          (a) comprise a hotel, as defined by the commission;
3617          (b) are owned or managed by the same person or by a person who has a majority
3618     interest in or can direct or exercise control over the management or policy of the person who
3619     owns or manages any other building under the hotel license within the boundary of the hotel;
3620          (c) primarily operate to provide lodging accommodations;
3621          (d) provide room service within the boundary of the hotel meeting the requirements of
3622     this title;
3623          (e) have on-premise banquet space and provide on-premise banquet service within the
3624     boundary of the hotel meeting the requirements of this title;
3625          (f) have a restaurant or bar establishment within the boundary of the hotel meeting the
3626     requirements of this title; and
3627          (g) have at least 40 [guest rooms] rooms as temporary sleeping accommodations for
3628     compensation.
3629          [(3) "Provisions applicable to a sublicense" means:]
3630          [(a) for a full-service restaurant sublicense, Chapter 6, Part 2, Full-Service Restaurant
3631     License;]
3632          [(b) for a limited-service restaurant sublicense, Chapter 6, Part 3, Limited-Service
3633     Restaurant License;]
3634          [(c) for a bar establishment sublicense, Chapter 6, Part 4, Bar Establishment License;]
3635          [(d) for an on-premise banquet sublicense, Chapter 6, Part 6, On-Premise Banquet
3636     License;]
3637          [(e) for an on-premise beer retailer sublicense, Chapter 6, Part 7, On-Premise Beer
3638     Retailer License; and]
3639          [(f) for a beer-only restaurant sublicense, Chapter 6, Part 9, Beer-Only Restaurant
3640     License.]
3641          [(4) "Sublicense" means:]

3642          [(a) a full-service restaurant sublicense;]
3643          [(b) a limited-service restaurant sublicense;]
3644          [(c) a bar establishment sublicense;]
3645          [(d) an on-premise banquet sublicense;]
3646          [(e) an on-premise beer retailer sublicense; and]
3647          [(f) a beer-only restaurant sublicense.]
3648          [(5) "Sublicense premises" means a building, enclosure, or room used pursuant to a
3649     sublicense in connection with the storage, sale, furnishing, or consumption of an alcoholic
3650     product, unless otherwise defined in this title or in the rules made by the commission.]
3651          Section 55. Section 32B-8b-201 is amended to read:
3652          32B-8b-201. Commission's power to issue a hotel license.
3653          (1) Before a person as a hotel under a single license may store, sell, offer for sale,
3654     furnish, or allow the consumption of an alcoholic product on sublicense premises, the person
3655     shall first obtain a hotel license from the commission in accordance with this part.
3656          (2) (a) The commission may issue to a person a hotel license to allow the storage, sale,
3657     offer for sale, furnishing, and consumption of an alcoholic product in connection with a hotel
3658     designated in the hotel license if the person operates at least three sublicenses under the hotel
3659     license:
3660          (i) one of which is an on-premise banquet license; and
3661          (ii) one of which is [a sublicense for a restaurant or bar establishment.]:
3662          (A) a full-service restaurant sublicense;
3663          (B) a limited-service restaurant sublicense;
3664          (C) a beer-only restaurant sublicense; or
3665          (D) a bar establishment sublicense.
3666          (b) A hotel license shall:
3667          (i) consist of:
3668          (A) a general hotel license; and
3669          (B) three or more sublicenses meeting the requirements of Subsection (2)(a); and

3670          (ii) designate the boundary of the hotel and sublicenses.
3671          (c) This chapter does not prohibit an alcoholic product on the boundary of the hotel to
3672     the extent otherwise permitted by this title.
3673          [(d) The commission may not issue a sublicense that is separate from a hotel license.]
3674          (3) [(a)] The commission may not issue a total number of hotel licenses that at any time
3675     totals more than 80.
3676          [(b) Subject to Subsection (3)(c), when determining the total number of licenses the
3677     commission has issued for each type of retail license, the commission may not include a
3678     sublicense as one of the retail licenses issued under the provisions applicable to the sublicense.]
3679          [(c) If a hotel license issued under this chapter includes a bar establishment sublicense
3680     that before the issuance of the hotel license was a bar establishment license, the commission
3681     shall include the bar establishment sublicense as one of the bar establishment licenses in
3682     determining if the total number of licenses issued under the provisions applicable to the bar
3683     establishment license exceeds the number calculated by dividing the population of the state by
3684     the number specified in the provisions applicable to the bar establishment license.]
3685          [(d) A person may not transfer a bar establishment license under Chapter 8a, Transfer
3686     of Retail License Act, in a manner that circumvents the limitations of Subsection (3)(c).]
3687          Section 56. Section 32B-8b-202 is amended to read:
3688          32B-8b-202. Specific licensing requirements for hotel license.
3689          (1) To obtain a hotel license, in addition to complying with Chapter 5, Part 2, Retail
3690     Licensing Process, a person shall submit with the person's written application:
3691          [(a) the current business license for each sublicense, if the business license is separate
3692     from the person's business license;]
3693          [(b)] (a) evidence:
3694          (i) of proximity of each building under the hotel license to any community location[,
3695     with proximity requirements being governed by Section 32B-1-202];
3696          (ii) that each [of the three or more sublicense] proposed sublicensed premises is
3697     entirely within the boundary of the hotel; and

3698          (iii) that [a] each building designated in the application as a building under the hotel
3699     license qualifies to be under the hotel license; and
3700          [(c)] (b) a description and boundary map of the hotel[;].
3701          [(d) a description, floor plan, and boundary map of each sublicense premises
3702     designating:]
3703          [(i) any location at which the person proposes that an alcoholic product be stored; and]
3704          [(ii) a designated location on the sublicense premises from which the person proposes
3705     that an alcoholic product be sold, furnished, or consumed;]
3706          [(e) evidence that the hotel licensee carries dramshop insurance coverage equal to the
3707     sum of at least $1,000,000 per occurrence and $2,000,000 in the aggregate to cover both the
3708     general hotel license and each sublicense; and]
3709          [(f) a signed consent form stating that the person will permit any authorized
3710     representative of the commission or department, or any law enforcement officer, to have
3711     unrestricted right to enter the boundary of the hotel and each sublicense premises.]
3712          (2) (a) A hotel license expires on October 31 of each year.
3713          (b) To renew a person's hotel license, the person shall comply with the requirements of
3714     Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
3715          (3) (a) The nonrefundable application fee for a hotel license is $500.
3716          (b) The initial license fee for a hotel license is calculated as follows:
3717          (i) [$5,000] if three sublicenses are being applied for under the hotel license, $5,000; or
3718          (ii) if more than three sublicenses are being applied for under the hotel license, the sum
3719     of:
3720          (A) $5,000; and
3721          (B) $2,000 for each sublicense in excess of three sublicenses for which the person is
3722     applying.
3723          (c) The renewal fee for a hotel license is $1,000 for each sublicense under the hotel
3724     license.
3725          (4) (a) The bond amount required for a hotel license is the penal sum of $10,000.

3726          (b) A hotel licensee is not required to have a separate bond for each sublicense, except
3727     that the aggregate of the bonds posted by the hotel licensee shall cover each sublicense under
3728     the hotel license.
3729          (5) The commission may not issue a hotel license that includes a building under the
3730     hotel license that does not meet the proximity requirements of Section 32B-1-202.
3731          (6) In accordance with Subsection 32B-8d-103(4), a hotel licensee may request to add a
3732     sublicense after the commission issues the hotel licensee's hotel license.
3733          Section 57. Section 32B-8b-301 is amended to read:
3734          32B-8b-301. Specific operational requirements for hotel license.
3735          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3736     Requirements, a hotel licensee, staff of the hotel licensee, and a sublicensee or person
3737     otherwise operating under a sublicense shall comply with this section.
3738          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
3739     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3740          (i) [a] the hotel licensee;
3741          (ii) individual staff of [a] the hotel licensee;
3742          (iii) a sublicensee or person otherwise operating under a sublicense of the hotel
3743     licensee;
3744          (iv) individual staff of a sublicensee or person otherwise operating under a sublicense
3745     of the hotel licensee; or
3746          (v) any combination of the persons listed in this Subsection (1)(b).
3747          (2) (a) A hotel licensee may not sell, offer for sale, or furnish an alcoholic product
3748     except:
3749          (i) on [a sublicense] sublicensed premises;
3750          (ii) pursuant to a permit issued under this title; or
3751          (iii) under a package agency agreement with the department, subject to Chapter 2, Part
3752     6, Package Agency.
3753          (b) A hotel licensee who sells, offers for sale, or furnishes an alcoholic product as

3754     provided in Subsection (2)(a) shall sell, offer for sale, or furnish the alcoholic product:
3755          (i) [except as provided in Section 32B-8b-302,] if on [a sublicense] sublicensed
3756     premises, in accordance with the operational requirements [under the provisions applicable to
3757     the sublicense] described in Section 32B-8d-104;
3758          (ii) if under a permit issued under this title, in accordance with the operational
3759     requirements under the provisions applicable to the permit; and
3760          (iii) if as a package agency, in accordance with the contract with the department and
3761     Chapter 2, Part 6, Package Agency.
3762          (c) Notwithstanding the other provisions of this Subsection (2), a hotel licensee may
3763     not permit a patron to carry an alcoholic product off the premises of a sublicense in violation of
3764     Section 32B-5-307 or off an area designated under a permit.
3765          [(3) A hotel licensee shall comply with Subsections 32B-5-301(4) and (5) within the
3766     boundary of the hotel.]
3767          [(4)] (3) A hotel licensee shall supervise and direct a person involved in the sale, offer
3768     for sale, or furnishing of an alcoholic product under a hotel license.
3769          [(5)] (4) (a) Room service of an alcoholic product to a lodging accommodation of a
3770     hotel licensee shall be provided in person by staff of [a] the hotel licensee only to an adult
3771     occupant in the lodging accommodation.
3772          (b) An alcoholic product may not be left outside a lodging accommodation for retrieval
3773     by an occupant.
3774          [(6)] (5) A hotel licensee shall operate in a manner so that at least 70% of the annual
3775     aggregate of the gross receipts related to the sale of food or beverages for the hotel license and
3776     each of the hotel license's sublicenses is from the sale of food, not including:
3777          (a) mix for an alcoholic product; and
3778          (b) a charge in connection with the service of an alcoholic product.
3779          Section 58. Section 32B-8b-401 is amended to read:
3780          32B-8b-401. Enforcement of operational requirements for hotel license or
3781     sublicense.

3782          [(1) (a)] (1) Failure by a person described in Subsection [(1)(b)] (2) to comply with this
3783     chapter or [an operational requirement under a provision applicable to a sublicense] Chapter
3784     8d, Sublicense Act, may result in disciplinary action in accordance with Chapter 3, Disciplinary
3785     Actions and Enforcement Act, against:
3786          [(i)] (a) [a] the hotel licensee;
3787          [(ii)] (b) individual staff of [a] the hotel licensee;
3788          [(iii)] (c) a sublicensee or person otherwise operating under a sublicense of the hotel
3789     licensee;
3790          [(iv)] (d) individual staff of a sublicensee or person otherwise operating under a
3791     sublicense of the hotel licensee; or
3792          [(v)] (e) any combination of the persons listed in this Subsection (1)[(a)].
3793          [(b)] (2) [This] Subsection (1) applies to:
3794          [(i)] (a) a hotel licensee;
3795          [(ii)] (b) a sublicensee or person operating under a sublicense of a hotel licensee; or
3796          [(iii)] (c) staff of a hotel licensee or sublicensee or other person operating under a
3797     sublicense of a hotel licensee.
3798          [(2) An operational requirement applicable to a person operating under a sublicense is
3799     enforced as provided by the provisions applicable to the sublicense.]
3800          Section 59. Section 32B-8c-101 is enacted to read:
3801     
CHAPTER 8c. ARENA LICENSE ACT

3802          32B-8c-101. Title.
3803          This chapter is known as the "Arena License Act."
3804          Section 60. Section 32B-8c-102 is enacted to read:
3805          32B-8c-102. Definitions.
3806          Reserved
3807          Section 61. Section 32B-8c-201 is enacted to read:
3808          32B-8c-201. Commission's power to issue an arena license.
3809          (1) Before a person as an arena under a single license may store, sell, offer for sale,

3810     furnish, or allow the consumption of an alcoholic product on sublicensed premises, the person
3811     shall first obtain an arena license from the commission in accordance with this part.
3812          (2) (a) Beginning November 1, 2020, the commission may issue to a person an arena
3813     license to allow the storage, sale, offer for sale, furnishing, and consumption of an alcoholic
3814     product in connection with the arena designated in the arena license, if the person operates at
3815     least three sublicenses under the arena license, including:
3816          (i) one of which is an on-premise banquet sublicense;
3817          (ii) one of which is:
3818          (A) a full-service restaurant sublicense;
3819          (B) a limited-service restaurant sublicense;
3820          (C) a beer-only restaurant sublicense; or
3821          (D) a bar establishment sublicense; and
3822          (iii) one of which is an on-premise beer retailer sublicense that is not a tavern.
3823          (b) An arena license shall:
3824          (i) consist of:
3825          (A) a general arena license; and
3826          (B) three or more sublicenses meeting the requirements of Subsection (2)(a); and
3827          (ii) designate the enclosed building that is the arena.
3828          (c) This chapter does not prohibit an alcoholic product in an arena to the extent
3829     otherwise permitted by this title.
3830          (3) The commission may not issue a total number of arena licenses that at any time
3831     totals more than 10.
3832          Section 62. Section 32B-8c-202 is enacted to read:
3833          32B-8c-202. Specific licensing requirements for arena license.
3834          (1) To obtain an arena license, in addition to complying with Chapter 5, Part 2, Retail
3835     Licensing Process, a person shall submit with the person's written application:
3836          (a) evidence:
3837          (i) of proximity of the arena to any community location;

3838          (ii) that each proposed sublicense premises is entirely within the arena; and
3839          (iii) that the building designated in the application as the arena qualifies as an arena;
3840     and
3841          (b) a description and map of the arena.
3842          (2) (a) An arena license expires on October 31 of each year.
3843          (b) To renew a person's arena license, the person shall comply with the requirements of
3844     Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
3845          (3) (a) The nonrefundable application fee for an arena license is $500.
3846          (b) The initial license fee for an arena license is calculated as follows:
3847          (i) if the person applies for three sublicenses under the arena license, $5,000; or
3848          (ii) if the person applies for more than three sublicenses under the arena license, the
3849     sum of:
3850          (A) $5,000; and
3851          (B) $1,000 for each sublicense in excess of three sublicenses for which the person
3852     applies.
3853          (c) The renewal fee for an arena license is $1,000 plus $1,000 for each sublicense
3854     under the arena license.
3855          (4) (a) The bond amount required for an arena license is the penal sum of $100,000.
3856          (b) An arena licensee is not required to have a separate bond for each sublicense,
3857     except that the aggregate of the bonds posted by the arena licensee shall cover each sublicense
3858     under the arena license.
3859          (5) In accordance with Subsection 32B-8d-103(4), an arena may request to add a
3860     sublicense after the commission issues the arena licensee's arena license.
3861          Section 63. Section 32B-8c-301 is enacted to read:
3862          32B-8c-301. Specific operational requirements for arena license.
3863          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensing Operational
3864     Requirements, an arena licensee, staff of the arena licensee, and a sublicensee or person
3865     otherwise operating under a sublicense shall comply with this section.

3866          (b) Failure to comply as provided in Subjection (1)(a) may result in disciplinary action
3867     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3868          (i) the arena licensee;
3869          (ii) individual staff of the arena licensee;
3870          (iii) a sublicensee or person otherwise operating under a sublicense of the arena
3871     licensee;
3872          (iv) individual staff of a sublicensee or person otherwise operating under a sublicense;
3873     or
3874          (v) any combination of the persons listed in Subsections (1)(b)(i) through (iv).
3875          (2) (a) An arena licensee may not sell, offer for sale, or furnish an alcoholic product
3876     except:
3877          (i) on sublicensed premises;
3878          (ii) pursuant to a permit issued under this title; or
3879          (iii) under a package agency agreement with the department, subject to Chapter 2, Part
3880     6, Package Agency.
3881          (b) An arena licensee who sells, offers for sale, or furnishes an alcoholic product as
3882     provided in Subsection (2)(a) shall sell, offer for sale, or furnish the alcoholic product:
3883          (i) if on sublicensed premises, in accordance with the operational requirements
3884     described in Section 32B-8d-104;
3885          (ii) if under a permit issued under this title, in accordance with the operational
3886     requirements under the provisions applicable to the permit; and
3887          (iii) if as a package agency, in accordance with the contract with the department and
3888     Chapter 2, Part 6, Package Agency.
3889          (3) An arena licensee shall operate in a manner so that at least 70% of the annual
3890     aggregate of the gross receipts related to the sale of food and beverages for the arena license
3891     and each of the arena license's sublicenses is from the sale of food, not including:
3892          (a) mix for an alcoholic product; and
3893          (b) a charge in connection with the service of an alcoholic product.

3894          (4) An arena licensee shall, directly or indirectly, supervise and direct a person
3895     involved in the sale, offer for sale, or furnishing of an alcoholic product under an arena license.
3896          Section 64. Section 32B-8c-401 is enacted to read:
3897          32B-8c-401. Enforcement.
3898          (1) Failure by a person described in Subsection (2) to comply with this chapter or
3899     Chapter 8d, Sublicense Act, may result in disciplinary action in accordance with Chapter 3,
3900     Disciplinary Actions and Enforcement Act, against:
3901          (a) the arena licensee;
3902          (b) individual staff of the arena licensee;
3903          (c) a sublicensee or a person otherwise operating under a sublicense of the arena
3904     licensee;
3905          (d) individual staff of a sublicensee or person otherwise operating under a sublicense of
3906     the arena licensee; or
3907          (e) any combination of the persons listed in Subsections (1)(a) through (d).
3908          (2) Subsection (1) applies to:
3909          (a) an arena licensee;
3910          (b) a sublicensee or person operating under a sublicense of an arena licensee;
3911          (c) staff of an arena licensee or sublicensee or other person operating under a
3912     sublicense of the arena licensee.
3913          Section 65. Section 32B-8d-101 is enacted to read:
3914     
CHAPTER 8d. SUBLICENSE ACT

3915          32B-8d-101. Title.
3916          This chapter is known as the "Sublicense Act."
3917          Section 66. Section 32B-8d-102 is enacted to read:
3918          32B-8d-102. Definitions.
3919          As used in this chapter:
3920          (1) "Resident" means the same as that term is defined in Section 32B-8-102.
3921          (2) "Resort building" means the same as that term is defined in Section 32B-8-102.

3922          (3) "Resort spa" means a spa:
3923          (a) as the commission defines by rule made in accordance with Title 63G, Chapter 3,
3924     Utah Administrative Rulemaking Act; and
3925          (b) that is within the boundary of a resort building.
3926          Section 67. Section 32B-8d-103 is enacted to read:
3927          32B-8d-103. Commission's power to issue a sublicense.
3928          (1) Before a person as a sublicensee may store, sell, offer for sale, furnish, or allow the
3929     consumption of an alcoholic product on sublicensed premises, the person shall first obtain a
3930     sublicense from the commission in accordance with:
3931          (a) this chapter;
3932          (b) Chapter 8, Resort License Act;
3933          (c) Chapter 8b, Hotel License Act; and
3934          (d) Chapter 8c, Arena License Act.
3935          (2) (a) The commission may issue to a person a sublicense to allow the storage, sale,
3936     offering for sale, furnishing, or consumption of an alcoholic product on the premises of the
3937     sublicense, if the person is:
3938          (i) a principal licensee; or
3939          (ii) a person seeking a principal license, contingent on the issuance of the principal
3940     license.
3941          (b) The commission may not:
3942          (i) issue a sublicense that is separate from a principal license; or
3943          (ii) issue a single sublicense that covers more than one outlet in or on the boundaries of
3944     the principal licensee.
3945          (3) (a) Subject to Subsections (3)(b) and (c), when determining the total number of
3946     licenses the commission has issued for each type of retail license, the commission may not
3947     include a sublicense as one of the retail licenses issued under the provisions applicable to that
3948     sublicense.
3949          (b) If a principal license includes a bar establishment sublicense that before the

3950     issuance of the principal license was a bar establishment license, the commission shall include
3951     the bar establishment sublicense as a bar establishment license in calculating the total number
3952     of licenses issued under the provisions applicable to a bar establishment license.
3953          (c) If a resort license includes a sublicense that before the issuance of the resort license
3954     was a retail license, the commission shall include the sublicense as a license in calculating the
3955     total number of licenses issued under the provisions applicable to the sublicense.
3956          (4) If a principal licensee seeks to add a sublicense after the commission issues the
3957     person's principal license, the principal licensee shall file with the department:
3958          (a) a nonrefundable $300 application fee;
3959          (b) an initial license fee of $2,250, which the commission shall refund if the
3960     commission does not issue the proposed sublicense;
3961          (c) written consent of the local authority;
3962          (d) a copy of:
3963          (i) the principal licensee's current business; and
3964          (ii) the proposed sublicensee's current business license, if the relevant political
3965     subdivision determines that the proposed sublicensee's business license is separate from the
3966     principal licensee's business license;
3967          (e) evidence that the proposed sublicensed premises is entirely within the boundary of
3968     the principal license;
3969          (f) a description, floor plan, and boundary map of the proposed sublicensed premises
3970     designating:
3971          (i) each location at which the principal licensee proposes that an alcoholic product be
3972     stored; and
3973          (ii) each location from which the principal licensee proposes that an alcoholic product
3974     be sold, furnished, or consumed;
3975          (g) evidence that the principal licensee carries:
3976          (i) public liability insurance in an amount and form satisfactory to the department; and
3977          (ii) dramshop insurance coverage in the amount required by Section 32B-5-201 that

3978     covers the proposed sublicense;
3979          (h) a signed consent form stating that the principal licensee will permit any authorized
3980     representative of the commission or department, or any law enforcement officer, to have an
3981     unrestricted right to enter the proposed sublicensed premises;
3982          (i) if the principal licensee is an entity, proper verification evidencing that a person
3983     who signs the application is authorized to sign on behalf of the entity; and
3984          (j) any other information the commission or department may require.
3985          Section 68. Section 32B-8d-104 is enacted to read:
3986          32B-8d-104. General operational requirements for a sublicense.
3987          (1) Except as provided in Subsections (2) and (3), a person operating under a
3988     sublicense is subject to the operational requirements under the provisions applicable to the
3989     sublicense.
3990          (2) Notwithstanding a requirement in the provisions applicable to the sublicense, a
3991     person operating under the sublicense is not subject to a requirement that a certain percentage
3992     of the gross receipts for the sublicense be from the sale of food, except to the extent that the
3993     gross receipts for the sublicense are included in calculating the percentages under Subsections
3994     32B-8-401(3), 32B-8b-301(7), and 32B-8c-301(3).
3995          (3) Notwithstanding Sections 32B-6-202 and 32B-6-302, a bar structure in a
3996     sublicensed premises operated under a full-service restaurant sublicense or a limited-service
3997     restaurant sublicense is considered a grandfathered bar structure if the sublicense is a
3998     sublicense to a resort license issued on or before December 31, 2010.
3999          (4) Except as provided in Section 32B-8-502, for purposes of interpreting an
4000     operational requirement imposed by the provisions applicable to a sublicense:
4001          (a) a requirement imposed on a sublicensee or person operating under a sublicense
4002     applies to the principal licensee; and
4003          (b) a requirement imposed on staff of a sublicensee or person operating under a
4004     sublicense applies to staff of the principal licensee.
4005          Section 69. Section 32B-8d-105 is enacted to read:

4006          32B-8d-105. Enforcement of operational requirements.
4007          (1) Except as provided in Subsection 32B-8-502(2) and in addition to Subsection (2),
4008     failure by a person to comply with this chapter or an operational requirement under a provision
4009     applicable to a sublicense may result in disciplinary action in accordance with Chapter 3,
4010     Disciplinary Actions and Enforcement Act, against:
4011          (a) a principal licensee;
4012          (b) individual staff of a principal licensee;
4013          (c) a sublicensee or person otherwise operating under a sublicense;
4014          (d) individual staff of a sublicensee or person otherwise operating under a sublicense;
4015     or
4016          (e) any combination of the persons listed in Subsections (1)(a) through (d).
4017          (2) An operational requirement applicable to a sublicensee or person operating under a
4018     sublicense is enforced as provided by the provisions applicable to the sublicense.
4019          Section 70. Section 32B-8d-201 is enacted to read:
4020     
Part 2. Resort Spa Sublicense

4021          32B-8d-201. Title.
4022          This part is known as "Resort Spa Sublicense."
4023          Section 71. Section 32B-8d-202, which is renumbered from Section 32B-8-301 is
4024     renumbered and amended to read:
4025          [32B-8-301].      32B-8d-202. Commission's power to issue resort spa
4026     sublicense.
4027          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
4028     an alcoholic product on [its] the person's premises as a resort spa sublicensee, a resort licensee
4029     or a person applying for a resort license shall first obtain a resort spa sublicense from the
4030     commission in accordance with this part.
4031          (2) The commission may only issue a resort spa sublicense to [establish a resort spa
4032     license within the boundary of a resort building for the storage, sale, offer for sale, furnishing,
4033     and consumption of liquor on premises operated as a resort spa.]:

4034          (a) a resort licensee; or
4035          (b) a person applying for a resort license, contingent on the issuance of the resort
4036     license.
4037          (3) The resort spa sublicense premises shall fall entirely within the boundary of a resort
4038     building that is part of the resort to which the resort spa sublicense is connected.
4039          Section 72. Section 32B-8d-203, which is renumbered from Section 32B-8-302 is
4040     renumbered and amended to read:
4041          [32B-8-302].      32B-8d-203. Specific licensing requirements for resort spa
4042     sublicense.
4043          (1) (a) [A] In accordance with Subsection 32B-8d-103(2), a person may not file a
4044     written application with the department to obtain a resort spa sublicense that is separate from
4045     the application of the resort license, unless the person seeks the resort spa sublicense [is being
4046     sought] after the [issuing of] commission issues the person a resort license.
4047          [(2)] (b) If a resort licensee seeks to add a resort spa sublicense after its resort license is
4048     issued, the resort licensee shall comply with Subsection [32B-8-204(3)(b)] 32B-8d-103(4).
4049          [(3)] (2) (a) A resort spa sublicense expires on October 31 of each year.
4050          (b) A resort licensee desiring to renew the resort licensee's resort spa sublicense shall
4051     renew the resort spa sublicense as part of renewing the resort license.
4052          (c) Failure to meet the renewal requirements for a resort license results in an automatic
4053     forfeiture of the resort spa sublicense effective on the date the resort license expires.
4054          Section 73. Section 32B-8d-204, which is renumbered from Section 32B-8-303 is
4055     renumbered and amended to read:
4056          [32B-8-303].      32B-8d-204. Specific qualifications for resort spa sublicense.
4057          (1) A person employed to act in a supervisory or managerial capacity for the resort spa
4058     sublicense is subject to qualification requirements of Section [32B-8-203] 32B-1-304 for
4059     licensees.
4060          (2) If a person no longer possesses the qualifications required by Section [32B-8-203]
4061     32B-1-304 for obtaining the resort license or resort spa sublicense, the commission may

4062     suspend or revoke the resort spa sublicense that is part of the resort license.
4063          Section 74. Section 32B-8d-205, which is renumbered from Section 32B-8-304 is
4064     renumbered and amended to read:
4065          [32B-8-304].      32B-8d-205. Specific operational requirements for resort spa
4066     sublicense.
4067          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
4068     Requirements, a resort licensee[,] and staff of the resort licensee[, or a person otherwise related
4069     to a resort spa sublicense] shall comply with this section.
4070          (b) A resort spa sublicensee or a person otherwise operating under a resort spa
4071     sublicense and staff of a resort spa sublicensee or a person otherwise operating under a resort
4072     spa sublicense shall comply with:
4073          (i) Chapter 5, Part 3, Retail Licensee Operational Requirements as if the resort spa
4074     sublicensee is a retail licensee, unless a provision conflicts with this chapter; and
4075          (ii) this chapter.
4076          [(b)] (c) Subject to Section 32B-8-502, failure to comply as provided in Subsection
4077     (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
4078     Enforcement Act, against:
4079          (i) a [retail] resort licensee;
4080          (ii) staff of the [retail] resort licensee;
4081          (iii) a resort spa sublicensee or person otherwise [related to] operating under a resort
4082     spa sublicense; [or]
4083          (iv) individual staff of a resort spa sublicensee or person otherwise operating under a
4084     resort spa sublicense; or
4085          [(iv)] (v) any combination of the persons listed in [this Subsection (1)(b)] Subsections
4086     (1)(c)(i) through (iv).
4087          (2) (a) For purposes of the resort spa sublicense, the resort licensee shall ensure that [a
4088     record required by this title is maintained, and] a record is maintained or used for the resort spa
4089     sublicense:

4090          (i) as the department requires; and
4091          (ii) for a minimum period of three years.
4092          (b) A resort spa sublicensee record is subject to inspection by an authorized
4093     representative of the commission and the department.
4094          (c) A resort licensee shall allow the department, through [an auditor or examiner] a
4095     compliance officer of the department, to audit the records for a resort spa sublicense at the
4096     times the department considers advisable.
4097          (d) The department shall audit the records for a resort spa sublicense at least once
4098     annually.
4099          (e) Section 32B-1-205 applies to a record required to be made, maintained, or used in
4100     accordance with this Subsection (2).
4101          (3) (a) A resort spa sublicensee or person operating under a resort spa sublicense may
4102     not sell, offer for sale, or furnish liquor at a resort spa during a period that:
4103          (i) begins at 1 a.m.; and
4104          (ii) ends at 9:59 a.m.
4105          (b) A resort spa sublicensee or person operating under a resort spa sublicense may sell,
4106     offer for sale, or furnish beer during the hours specified in Chapter 6, Part 7, On-Premise Beer
4107     Retailer License, for an on-premise beer retailer.
4108          (c) (i) Notwithstanding Subsections (3)(a) and (b), a resort spa shall remain open for
4109     one hour after the resort spa ceases the sale and furnishing of an alcoholic product during
4110     which time a person at the resort spa may finish consuming:
4111          (A) a single drink containing spirituous liquor;
4112          (B) a single serving of wine not exceeding five ounces;
4113          (C) a single serving of heavy beer;
4114          (D) a single serving of beer not exceeding 26 ounces; or
4115          (E) a single serving of a flavored malt beverage.
4116          (ii) A resort spa is not required to remain open:
4117          (A) after all [persons] individuals have vacated the resort spa [sublicense] sublicensee's

4118     sublicensed premises; or
4119          (B) during an emergency.
4120          (4) (a) A minor may not be admitted into, use, or be on[: (a)] the [sublicense]
4121     sublicensed premises of a resort spa sublicense unless accompanied by [a person] an individual
4122     21 years of age or older[; or].
4123          (b) A minor permitted under Subsection (4)(a) to be admitted into, use, or be on the
4124     sublicensed premises of a resort spa sublicense:
4125          [(b)] (i) may only be admitted into or be on a lounge or bar area of the resort spa
4126     [sublicense] sublicensee's sublicensed premises[.] momentarily while en route to another area
4127     of the resort spa; and
4128          (ii) may not remain or sit in the lounge or bar area of the resort spa sublicensee's
4129     sublicensed premises.
4130          (5) A resort spa sublicensee shall have food available at all times when an alcoholic
4131     product is sold, offered for sale, furnished, or consumed on the resort spa [sublicense]
4132     sublicensee's sublicensed premises.
4133          (6) (a) Subject to the other provisions of this Subsection (6), a patron may not have
4134     more than two alcoholic products of any kind at a time before the patron.
4135          (b) A resort spa patron may not have two spirituous liquor drinks before the resort spa
4136     patron if one of the spirituous liquor drinks consists only of the primary spirituous liquor for
4137     the other spirituous liquor drink.
4138          (c) An individual portion of wine is considered to be one alcoholic product under this
4139     Subsection (6).
4140          (7) (a) An alcoholic product may only be consumed at a table or counter.
4141          (b) An alcoholic product may not be served to or consumed by a patron at a dispensing
4142     structure.
4143          (8) (a) A resort spa sublicensee or person operating under a resort spa sublicense shall
4144     have available on the resort spa [sublicense] sublicense's sublicensed premises for a patron to
4145     review at the time that the patron requests it, a written alcoholic product price list or a menu

4146     containing the price of an alcoholic product sold or furnished by the resort spa sublicensee
4147     including:
4148          (i) a set-up charge;
4149          (ii) a service charge; or
4150          (iii) a chilling fee.
4151          (b) A charge or fee made in connection with the sale, service, or consumption of liquor
4152     may be stated in food or alcoholic product menus including:
4153          (i) a set-up charge;
4154          (ii) a service charge; or
4155          (iii) a chilling fee.
4156          (9) (a) A resort licensee shall own or lease premises suitable for the resort [spa's] spa
4157     sublicense's activities.
4158          (b) A resort licensee may not maintain premises in a manner that barricades or conceals
4159     the resort spa sublicense's operation.
4160          (10) Subject to the other provisions of this section, a resort spa sublicensee or person
4161     operating under a resort spa sublicense may not sell an alcoholic product to or allow [a person]
4162     an individual to be admitted to or use the resort spa [sublicense] sublicensee's sublicensed
4163     premises other than:
4164          (a) a resident; or
4165          (b) a customer.
4166          [(b) a public customer who holds a valid customer card issued under Subsection (12);
4167     or]
4168          [(c) an invitee.]
4169          [(11) A person operating under a resort spa sublicense may allow an individual to be
4170     admitted to or use the resort spa sublicense premises as an invitee subject to the following
4171     conditions:]
4172          [(a) the individual shall be previously authorized by one of the following who agrees to
4173     host the individual as an invitee into the resort spa:]

4174          [(i) a resident; or]
4175          [(ii) a public customer as described in Subsection (10);]
4176          [(b) the individual has only those privileges derived from the individual's host for the
4177     duration of the invitee's visit to the resort spa; and]
4178          [(c) a resort licensee, resort spa, or staff of the resort licensee or resort spa may not
4179     enter into an agreement or arrangement with a resident or public customer to indiscriminately
4180     host a member of the general public into the resort spa as an invitee.]
4181          [(12) A person operating under a resort spa sublicense may issue a customer card to
4182     allow an individual to enter and use the resort spa sublicense premises on a temporary basis
4183     under the following conditions:]
4184          [(a) the resort spa may not issue a customer card for a time period that exceeds three
4185     weeks;]
4186          [(b) the resort spa shall assess a fee to a public customer for a customer card;]
4187          [(c) the resort spa may not issue a customer card to a minor; and]
4188          [(d) a public customer may not host more than seven invitees at one time.]
4189          Section 75. Section 32B-9-201 is amended to read:
4190          32B-9-201. Application requirements for event permit.
4191          (1) To obtain an event permit, a person shall submit to the department:
4192          (a) a written application in a form that the department prescribes;
4193          (b) an event permit fee:
4194          (i) in the amount specified in the relevant part under this chapter for the type of event
4195     permit for which the person is applying; and
4196          (ii) that is refundable if an event permit is not issued;
4197          (c) written consent of the local authority;
4198          (d) a bond as specified by Section 32B-9-203;
4199          (e) the times, dates, location, estimated attendance, nature, and purpose of the event;
4200          (f) a description or floor plan designating:
4201          (i) the area in which the person proposes that an alcoholic product be stored;

4202          (ii) the site from which the person proposes that an alcoholic product be sold, offered
4203     for sale, or furnished; and
4204          (iii) the area in which the person proposes that an alcoholic product be allowed to be
4205     consumed;
4206          (g) a signed consent form stating that the event permittee will permit any authorized
4207     representative of the commission, department, or any law enforcement officer to have
4208     unrestricted right to enter the premises during the event;
4209          (h) if the person is an entity, proper verification evidencing that a person who signs the
4210     application is authorized to sign on behalf of the entity; and
4211          (i) any other information as the commission or department may require.
4212          (2) If a person substantially changes the person's application under Subsection (1) after
4213     the person initially submits the application, the person shall pay to the department a fee:
4214          (a) in an amount the department prescribes in accordance with Section 63J-1-504; and
4215          (b) that is nonrefundable, regardless of whether the department issues an event permit.
4216          [(2)] (3) An entity applying for a permit need not meet the requirements of Subsections
4217     (1)(b), (c), and (d) if the entity is:
4218          (a) a state agency; or
4219          (b) a political subdivision of the state.
4220          [(3)] (4) The director may not issue an event permit to a person who is disqualified
4221     under Section 32B-1-304.
4222          [(4)] (5) (a) The proximity requirements of Section 32B-1-202 do not apply to an event
4223     permit.
4224          (b) Notwithstanding Subsection [(4)] (5)(a), nothing in this section prevents the
4225     director, the Compliance, Licensing, and Enforcement Subcommittee, or the commission from
4226     considering the proximity of an educational, religious, or recreational facility, or any other
4227     relevant factor in deciding whether to issue an event permit.
4228          Section 76. Section 32B-10-206 is amended to read:
4229          32B-10-206. General operational requirements for special use permit.

4230          (1) (a) A special use permittee and staff of the special use permittee shall comply with
4231     this title and rules of the commission, including the relevant part of the chapter that applies to
4232     the type of special use permit held by the special use permittee.
4233          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
4234     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
4235          (i) a special use permittee;
4236          (ii) individual staff of a special use permittee; or
4237          (iii) a special use permittee and staff of the special use permittee.
4238          (c) The commission may suspend or revoke a special use permit with or without cause.
4239          (2) (a) If there is a conflict between this part and the relevant part under this chapter for
4240     the specific type of special use permit, the relevant part under this chapter governs.
4241          (b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," a
4242     special use permittee may only purchase, use, store, sell, offer for sale, allow consumption, or
4243     manufacture an alcoholic product authorized for the special use permit that is held by the
4244     special use permittee.
4245          (c) Notwithstanding that this part or the relevant part under this chapter for the type of
4246     special use permit held by a special use permittee refers to "special use permittee," a person
4247     involved in the purchase, use, store, sell, offer for sale, allow consumption, or manufacture of
4248     an alcoholic product for which the special use permit is issued is subject to the same
4249     requirement or prohibition.
4250          (3) (a) A special use permittee shall make and maintain a record, as required by
4251     commission rule, of any alcoholic product purchased, used, sold, or manufactured.
4252          (b) Section 32B-1-205 applies to a record required to be made or maintained in
4253     accordance with this Subsection (3).
4254          (4) (a) Except as otherwise provided in this title, a special use permittee may not
4255     purchase liquor except from a state store or package agency.
4256          (b) A special use permittee may transport liquor purchased by the special use permittee
4257     in accordance with this Subsection (4) from the place of purchase to the special use permittee's

4258     premises.
4259          (c) A special use permittee shall purchase liquor at prices set by the commission.
4260          (d) When authorized by a special use permit, a special use permittee may purchase and
4261     receive an alcoholic product directly from a manufacturer for a purpose that is industrial,
4262     educational, scientific, or manufacturing.
4263          (e) A health care facility may purchase and receive an alcoholic product directly from a
4264     manufacturer for use at the health care facility.
4265          (5) A special use permittee may not use, mix, store, sell, offer for sale, furnish,
4266     manufacture, or allow consumption of an alcoholic product in a location other than as
4267     designated in a special use permittee's application.
4268          (6) Except as otherwise provided, a special use permittee may not sell, offer for sale, or
4269     furnish an alcoholic product to:
4270          (a) a minor;
4271          (b) a person actually, apparently, or obviously intoxicated;
4272          (c) a known interdicted person; or
4273          (d) a known habitual drunkard.
4274          (7) A special use permittee may not employ a minor to handle an alcoholic product.
4275          (8) (a) The location specified in a special use permit may not be transferred from one
4276     location to another location, [without prior written approval of the commission], except as
4277     provided in Chapter 8a, Transfer of Alcohol License Act.
4278          (b) A special use permittee may not sell, transfer, assign, exchange, barter, give, or
4279     attempt in any way to dispose of the permit to another person whether for monetary gain or not,
4280     except as provided in Chapter 8a, Transfer of Alcohol License Act.
4281          (9) A special use permittee may not purchase, use, mix, store, sell, offer for sale,
4282     furnish, consume, or manufacture an alcoholic product for a purpose other than that authorized
4283     by the special use permit.
4284          (10) The commission may prescribe by policy or rule consistent with this title, the
4285     general operational requirements of a special use permittee relating to:

4286          (a) physical facilities;
4287          (b) conditions of purchase, use, storage, sale, consumption, or manufacture of an
4288     alcoholic product;
4289          (c) purchase, storage, and sales quantity limitations; and
4290          (d) other matters considered appropriate by the commission.
4291          Section 77. Section 32B-11-208 is amended to read:
4292          32B-11-208. General operational requirements for manufacturing license.
4293          (1) (a) A manufacturing licensee and staff of the manufacturing licensee shall comply
4294     with this title and the rules of the commission, including the relevant part of this chapter
4295     applicable to the type of manufacturing license held by the manufacturing licensee.
4296          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
4297     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
4298          (i) a manufacturing licensee;
4299          (ii) individual staff of a manufacturing licensee; or
4300          (iii) a manufacturing licensee and staff of the manufacturing licensee.
4301          (2) A manufacturing licensee shall prominently display the manufacturing license on
4302     the licensed premises.
4303          (3) (a) A manufacturing licensee shall make and maintain the records required by the
4304     department.
4305          (b) Section 32B-1-205 applies to a record required to be made or maintained in
4306     accordance with this Subsection (3).
4307          (4) A manufacturing licensee may not sell liquor within the state except to:
4308          (a) the department; or
4309          (b) a military installation.
4310          (5) A manufacturing license may not be transferred from one location to another
4311     location, [without prior written approval of the commission] except as provided in Chapter 8a,
4312     Transfer of Alcohol License Act.
4313          (6) (a) A manufacturing licensee may not sell, transfer, assign, exchange, barter, give,

4314     or attempt in any way to dispose of the license to another person, whether for monetary gain or
4315     not, except as provided in Chapter 8a, Transfer of Alcohol License Act.
4316          (b) A manufacturing license has no monetary value for any type of disposition.
4317          (7) A manufacturing licensee may not advertise [its] the manufacturing licensee's
4318     product in violation of this title or any other federal or state law, except that nothing in this title
4319     prohibits the advertising or solicitation of an order for industrial alcohol from a holder of a
4320     special use permit.
4321          (8) A manufacturing licensee shall from time to time, on request of the department,
4322     furnish for analytical purposes a sample of the alcoholic product that the manufacturing
4323     licensee has:
4324          (a) for sale; or
4325          (b) in the course of manufacture for sale in this state.
4326          (9) The commission may prescribe by policy or rule, consistent with this title, the
4327     general operational requirements of a manufacturing licensee relating to:
4328          (a) physical facilities;
4329          (b) conditions of storage, sale, or manufacture of an alcoholic product;
4330          (c) storage and sales quantity limitations; and
4331          (d) other matters considered appropriate by the commission.
4332          Section 78. Section 32B-11-403 is amended to read:
4333          32B-11-403. Specific authority and operational requirements for distillery
4334     manufacturing license.
4335          (1) A distillery manufacturing license allows a distillery manufacturing licensee to:
4336          (a) store, manufacture, transport, import, or export liquor;
4337          (b) sell liquor to:
4338          (i) the department;
4339          (ii) an out-of-state customer; and
4340          (iii) as provided in Subsection (2);
4341          (c) purchase an alcoholic product for mixing and manufacturing purposes if the

4342     department is notified of:
4343          (i) the purchase; and
4344          (ii) the date of delivery; [and]
4345          (d) warehouse on [its] the distillery manufacturing licensee's licensed premises an
4346     alcoholic product that the distillery manufacturing licensee manufactures or purchases for
4347     manufacturing purposes[.];
4348          (e) if the distillery manufacturing licensee holds two or more distillery manufacturing
4349     licenses under this chapter, transport an alcoholic product from one of the distillery
4350     manufacturing licensee's licensed premises to another, if the transportation occurs for the
4351     purpose of:
4352          (i) continuing or completing the manufacturing process; or
4353          (ii) storing a bulk container or an alcoholic product that is distilled and packaged in the
4354     state, including the transport of an alcoholic product to a package agency located at any of the
4355     distillery manufacturing licensee's licensed premises; and
4356          (f) receive samples of an alcoholic product from a person outside the state for the sole
4357     purpose of performing tests and analysis, if the distillery manufacturing licensee:
4358          (i) performs the tests and analysis in accordance with 27 C.F.R. Secs. 19.434(a), (c),
4359     (d), (e), and (f), Secs. 19.435 through 19.437, and Sec. 19.616;
4360          (ii) keeps records of the samples received, including:
4361          (A) all data required under 27 C.F.R. Sec. 19.616;
4362          (B) a description of the sample; and
4363          (C) the date the distillery manufacturing licensee receives the sample; and
4364          (iii) upon request, provides the records described in Subsection (1)(f)(ii) to the
4365     department.
4366          (2) (a) Subject to the other provisions of this Subsection (2), a distillery manufacturing
4367     licensee may directly sell an alcoholic product to a person engaged within the state in:
4368          (i) a mechanical or industrial business that requires the use of an alcoholic product; or
4369          (ii) scientific pursuits that require the use of an alcoholic product.

4370          (b) A person who purchases an alcoholic product under Subsection (2)(a) shall hold a
4371     valid special use permit issued in accordance with Chapter 10, Special Use Permit Act,
4372     authorizing the use of the alcoholic product.
4373          (c) A distillery manufacturing licensee may sell to a special use permittee described in
4374     Subsection (2)(b) an alcoholic product only in the type for which the special use permit
4375     provides.
4376          (d) The sale of an alcoholic product under this Subsection (2) is subject to rules
4377     prescribed by the department and the federal government.
4378          (3) The federal definitions, standards of identity and quality, and labeling requirements
4379     for distilled liquor, in the regulations issued under Federal Alcohol Administration Act, 27
4380     U.S.C. Sec. 201 et seq., are adopted to the extent the regulations are not contrary to or
4381     inconsistent with laws of this state.
4382          (4) If considered necessary, the commission or department may require:
4383          (a) the alteration of the plant, equipment, or licensed premises;
4384          (b) the alteration or removal of unsuitable alcoholic product-making equipment or
4385     material;
4386          (c) a distillery manufacturing licensee to clean, disinfect, ventilate, or otherwise
4387     improve the sanitary and working conditions of the plant, licensed premises, and equipment; or
4388          (d) that a record pertaining to the materials and ingredients used in the manufacture of
4389     an alcoholic product be made available to the commission or department upon request.
4390          (5) A distillery manufacturing licensee may not permit an alcoholic product to be
4391     consumed on [its] the distillery manufacturing licensee's premises, except that:
4392          (a) a distillery manufacturing licensee may allow [its] the distillery manufacturing
4393     licensee's on-duty staff to taste on the licensed premises an alcoholic product that the distillery
4394     manufacturing licensee manufactures on [its] the distillery manufacturing licensee's licensed
4395     premises without charge, but only in connection with the on-duty staff's duties of
4396     manufacturing the alcoholic product during the manufacturing process and not otherwise;
4397          (b) a distillery manufacturing licensee may allow a person who can lawfully purchase

4398     an alcoholic product for wholesale or retail distribution to consume a bona fide sample of the
4399     distillery manufacturing licensee's product on the licensed premises; and
4400          (c) a distillery manufacturing licensee may conduct tastings as provided in Section
4401     32B-11-210.
4402          Section 79. Section 63I-2-232 is amended to read:
4403          63I-2-232. Repeal dates -- Title 32B.
4404          (1) Subsection 32B-1-102[(7)](9) is repealed July 1, 2022.
4405          [(2) Section 32B-1-207.1 is repealed November 1, 2019.]
4406          [(3)] (2) Subsection 32B-1-407(3)(d) is repealed July 1, 2022.
4407          [(4)] (3) Section 32B-2-211.1 is repealed November 1, 2020.
4408          [(5)] (4) Subsections 32B-6-202(3) and (4) are repealed July 1, 2022.
4409          [(6)] (5) Section 32B-6-205 is repealed July 1, 2022.
4410          [(7)] (6) Subsection 32B-6-205.2[(14)](16) is repealed July 1, 2022.
4411          [(8)] (7) Section 32B-6-205.3 is repealed July 1, 2022.
4412          [(9)] (8) Subsections 32B-6-302(3) and (4) are repealed July 1, 2022.
4413          [(10)] (9) Section 32B-6-305 is repealed July 1, 2022.
4414          [(11)] (10) Subsection 32B-6-305.2[(14)](15) is repealed July 1, 2022.
4415          [(12)] (11) Section 32B-6-305.3 is repealed July 1, 2022.
4416          [(13)] (12) Section 32B-6-404.1 is repealed July 1, 2022.
4417          [(14)] (13) Section 32B-6-409 is repealed July 1, 2022.
4418          [(15)] (14) Subsection 32B-6-703(2)(e)(iv) is repealed July 1, 2022.
4419          [(16)] (15) Subsections 32B-6-902(1)(c), (1)(d), and (2) are repealed July 1, 2022.
4420          [(17)] (16) Section 32B-6-905 is repealed July 1, 2022.
4421          [(18)] (17) Subsection 32B-6-905.1(15) is repealed July 1, 2022.
4422          [(19)] (18) Section 32B-6-905.2 is repealed July 1, 2022.
4423          [(20) Subsection 32B-8-402(1)(b) is repealed July 1, 2022.]
4424          (19) Subsection 32B-8d-104(3) is repealed July 1, 2022.
4425          Section 80. Repealer.

4426          This bill repeals:
4427          Section 32B-8-203, Specific qualifications for resort license.
4428          Section 32B-8-204, Commission and department duties before issuing resort
4429     license.
4430          Section 32B-8-402, Specific operational requirements for a sublicense.
4431          Section 32B-8-503, Enforcement of Nuisance Retail Licensee Act.
4432          Section 32B-8b-203, Qualifications for hotel license and sublicense.
4433          Section 32B-8b-204, Commission and department duties before issuing hotel
4434     license.
4435          Section 32B-8b-302, Specific operational requirements for a sublicense.
4436          Section 32B-8b-402, Enforcement of Nuisance Retail Licensee Act.