1     
BEER DELIVERY PROGRAM

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Robert M. Spendlove

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill enacts the Beer Delivery License Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     grants the Alcoholic Beverage Control Commission power to issue a beer delivery
14     license under certain conditions;
15          ▸     establishes application requirements for a beer delivery license;
16          ▸     establishes renewal requirements for a beer delivery license;
17          ▸     requires a beer delivery licensee to notify the Department of Alcoholic Beverage
18     Control of certain changes in ownership;
19          ▸     establishes operational requirements for a beer delivery licensee;
20          ▸     establishes additional penalties for furnishing beer to a minor;
21          ▸     requires the Department of Alcoholic Beverage Control and the Division of
22     Substance Abuse and Mental Health to establish training for authorized delivery
23     agents; and
24          ▸     makes technical and conforming changes.
25     Money Appropriated in this Bill:
26          None
27     Other Special Clauses:
28          None
29     Utah Code Sections Affected:
30     AMENDS:
31          32B-1-102, as last amended by Laws of Utah 2019, Chapters 336, 403, 498 and last
32     amended by Coordination Clause, Laws of Utah 2019, Chapter 403
33          32B-1-305, as last amended by Laws of Utah 2019, Chapter 403
34          32B-1-407, as last amended by Laws of Utah 2018, Chapter 249
35          32B-1-607, as last amended by Laws of Utah 2019, Chapter 403
36          32B-1-704, as renumbered and amended by Laws of Utah 2019, Chapter 403
37          62A-15-401, as last amended by Laws of Utah 2019, Chapter 403
38          63I-2-232, as last amended by Laws of Utah 2019, First Special Session, Chapter 2
39     ENACTS:
40          32B-7a-101, Utah Code Annotated 1953
41          32B-7a-102, Utah Code Annotated 1953
42          32B-7a-201, Utah Code Annotated 1953
43          32B-7a-202, Utah Code Annotated 1953
44          32B-7a-203, Utah Code Annotated 1953
45          32B-7a-204, Utah Code Annotated 1953
46          32B-7a-205, Utah Code Annotated 1953
47          32B-7a-301, Utah Code Annotated 1953
48          32B-7a-302, Utah Code Annotated 1953
49          32B-7a-303, Utah Code Annotated 1953
50          32B-7a-401, Utah Code Annotated 1953
51     

52     Be it enacted by the Legislature of the state of Utah:
53          Section 1. Section 32B-1-102 is amended to read:
54          32B-1-102. Definitions.
55          As used in this title:
56          (1) "Airport lounge" means a business location:
57          (a) at which an alcoholic product is sold at retail for consumption on the premises; and
58          (b) that is located at an international airport with a United States Customs office on the
59     premises of the international airport.
60          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
61     Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
62          (3) "Alcoholic beverage" means the following:
63          (a) beer; or
64          (b) liquor.
65          (4) (a) "Alcoholic product" means a product that:
66          (i) contains at least .5% of alcohol by volume; and
67          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
68     process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
69     in an amount equal to or greater than .5% of alcohol by volume.
70          (b) "Alcoholic product" includes an alcoholic beverage.
71          (c) "Alcoholic product" does not include any of the following common items that
72     otherwise come within the definition of an alcoholic product:
73          (i) except as provided in Subsection (4)(d), an extract;
74          (ii) vinegar;
75          (iii) preserved nonintoxicating cider;
76          (iv) essence;
77          (v) tincture;
78          (vi) food preparation; or
79          (vii) an over-the-counter medicine.
80          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
81     when it is used as a flavoring in the manufacturing of an alcoholic product.
82          (5) "Alcohol training and education seminar" means a seminar that is:
83          (a) required by Chapter 1, Part 7, Alcohol Training and Education Act; and
84          (b) described in Section 62A-15-401.
85          (6) (a) "Authorized delivery agent" means an individual whom a beer delivery licensee
86     authorizes to make an off-premise beer delivery on behalf of the licensee.
87          (b) "Authorized delivery agent" may include:
88          (i) staff of a beer delivery licensee; or
89          (ii) an individual who:
90          (A) is an independent contractor; and
91          (B) contracts with a beer delivery licensee to make an off-premise beer delivery.
92          [(6)] (7) "Banquet" means a private event:
93          (a) that is held at one or more designated locations approved by the commission in or
94     on the premises of a:
95          (i) hotel;
96          (ii) resort facility;
97          (iii) sports center;
98          (iv) convention center; or
99          (v) performing arts facility;
100          (b) for which there is a contract:
101          (i) between a person operating a facility listed in Subsection [(6)] (7)(a) and another
102     person; and
103          (ii) under which the person operating a facility listed in Subsection [(6)] (7)(a) is
104     required to provide an alcoholic product at the event; and
105          (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
106          [(7)] (8) "Bar structure" means a surface or structure on a licensed premises if on or at
107     any place of the surface or structure an alcoholic product is:
108          (a) stored; or
109          (b) dispensed.
110          [(8)] (9) (a) "Bar establishment license" means a license issued in accordance with
111     Chapter 5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License.
112          (b) "Bar establishment license" includes:
113          (i) a dining club license;
114          (ii) an equity license;
115          (iii) a fraternal license; or
116          (iv) a bar license.
117          [(9)] (10) "Bar license" means a license issued in accordance with Chapter 5, Retail
118     License Act, and Chapter 6, Part 4, Bar Establishment License.
119          [(10)] (11) (a) Subject to Subsection [(10)] (11)(d), "beer" means a product that:
120          (i) contains at least .5% of alcohol by volume, but not more than 5% of alcohol by
121     volume or 4% by weight; and
122          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
123          (b) "Beer" may or may not contain hops or other vegetable products.
124          (c) "Beer" includes a product that:
125          (i) contains alcohol in the percentages described in Subsection [(10)] (11)(a); and
126          (ii) is referred to as:
127          (A) beer;
128          (B) ale;
129          (C) porter;
130          (D) stout;
131          (E) lager; or
132          (F) a malt or malted beverage.
133          (d) "Beer" does not include a flavored malt beverage.
134          (12) "Beer delivery license" means a licensed issued in accordance with Chapter 7a,
135     Beer Delivery License Act.
136          [(11)] (13) "Beer-only restaurant license" means a license issued in accordance with
137     Chapter 5, Retail License Act, and Chapter 6, Part 9, Beer-Only Restaurant License.
138          [(12)] (14) "Beer retailer" means a business that:
139          (a) is engaged, primarily or incidentally, in the retail sale of beer to a patron, whether
140     for consumption on or off the business premises; and
141          (b) is licensed as:
142          (i) an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-Premise Beer
143     Retailer Local Authority; or
144          (ii) an on-premise beer retailer, in accordance with Chapter 5, Retail License Act, and
145     Chapter 6, Part 7, On-Premise Beer Retailer License.
146          [(13)] (15) "Beer wholesaling license" means a license:
147          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
148          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
149     retail licensees or off-premise beer retailers.
150          [(14)] (16) "Billboard" means a public display used to advertise, including:
151          (a) a light device;
152          (b) a painting;
153          (c) a drawing;
154          (d) a poster;
155          (e) a sign;
156          (f) a signboard; or
157          (g) a scoreboard.
158          [(15)] (17) "Brewer" means a person engaged in manufacturing:
159          (a) beer;
160          (b) heavy beer; or
161          (c) a flavored malt beverage.
162          [(16)] (18) "Brewery manufacturing license" means a license issued in accordance with
163     Chapter 11, Part 5, Brewery Manufacturing License.
164          [(17)] (19) "Certificate of approval" means a certificate of approval obtained from the
165     department under Section 32B-11-201.
166          [(18)] (20) "Chartered bus" means a passenger bus, coach, or other motor vehicle
167     provided by a bus company to a group of persons pursuant to a common purpose:
168          (a) under a single contract;
169          (b) at a fixed charge in accordance with the bus company's tariff; and
170          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
171     motor vehicle, and a driver to travel together to one or more specified destinations.
172          [(19)] (21) "Church" means a building:
173          (a) set apart for worship;
174          (b) in which religious services are held;
175          (c) with which clergy is associated; and
176          (d) that is tax exempt under the laws of this state.
177          [(20)] (22) "Commission" means the Alcoholic Beverage Control Commission created
178     in Section 32B-2-201.
179          [(21)] (23) "Commissioner" means a member of the commission.
180          [(22)] (24) "Community location" means:
181          (a) a public or private school;
182          (b) a church;
183          (c) a public library;
184          (d) a public playground; or
185          (e) a public park.
186          [(23)] (25) "Community location governing authority" means:
187          (a) the governing body of the community location; or
188          (b) if the commission does not know who is the governing body of a community
189     location, a person who appears to the commission to have been given on behalf of the
190     community location the authority to prohibit an activity at the community location.
191          [(24)] (26) "Container" means a receptacle that contains an alcoholic product,
192     including:
193          (a) a bottle;
194          (b) a vessel; or
195          (c) a similar item.
196          [(25)] (27) "Convention center" means a facility that is:
197          (a) in total at least 30,000 square feet; and
198          (b) otherwise defined as a "convention center" by the commission by rule.
199          [(26)] (28) (a) "Counter" means a surface or structure in a dining area of a licensed
200     premises where seating is provided to a patron for service of food.
201          (b) "Counter" does not include a dispensing structure.
202          [(27)] (29) "Crime involving moral turpitude" is as defined by the commission by rule.
203          [(28)] (30) "Department" means the Department of Alcoholic Beverage Control created
204     in Section 32B-2-203.
205          [(29)] (31) "Department compliance officer" means an individual who is:
206          (a) an auditor or inspector; and
207          (b) employed by the department.
208          [(30)] (32) "Department sample" means liquor that is placed in the possession of the
209     department for testing, analysis, and sampling.
210          [(31)] (33) "Dining club license" means a license issued in accordance with Chapter 5,
211     Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
212     commission as a dining club license.
213          [(32)] (34) "Director," unless the context requires otherwise, means the director of the
214     department.
215          [(33)] (35) "Disciplinary proceeding" means an adjudicative proceeding permitted
216     under this title:
217          (a) against a person subject to administrative action; and
218          (b) that is brought on the basis of a violation of this title.
219          [(34)] (36) (a) Subject to Subsection [(34)] (36)(b), "dispense" means:
220          (i) drawing an alcoholic product; and
221          (ii) using the alcoholic product at the location from which it was drawn to mix or
222     prepare an alcoholic product to be furnished to a patron of the retail licensee.
223          (b) The definition of "dispense" in this Subsection [(34)] (36) applies only to:
224          (i) a full-service restaurant license;
225          (ii) a limited-service restaurant license;
226          (iii) a reception center license; and
227          (iv) a beer-only restaurant license.
228          [(35)] (37) "Dispensing structure" means a surface or structure on a licensed premises:
229          (a) where an alcoholic product is dispensed; or
230          (b) from which an alcoholic product is served.
231          [(36)] (38) "Distillery manufacturing license" means a license issued in accordance
232     with Chapter 11, Part 4, Distillery Manufacturing License.
233          [(37)] (39) "Distressed merchandise" means an alcoholic product in the possession of
234     the department that is saleable, but for some reason is unappealing to the public.
235          [(38)] (40) "Educational facility" includes:
236          (a) a nursery school;
237          (b) an infant day care center; and
238          (c) a trade and technical school.
239          [(39)] (41) "Equity license" means a license issued in accordance with Chapter 5,
240     Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
241     commission as an equity license.
242          [(40)] (42) "Event permit" means:
243          (a) a single event permit; or
244          (b) a temporary beer event permit.
245          [(41)] (43) "Exempt license" means a license exempt under Section 32B-1-201 from
246     being considered in determining the total number of retail licenses that the commission may
247     issue at any time.
248          [(42)] (44) (a) "Flavored malt beverage" means a beverage:
249          (i) that contains at least .5% alcohol by volume;
250          (ii) that is treated by processing, filtration, or another method of manufacture that is not
251     generally recognized as a traditional process in the production of a beer as described in 27
252     C.F.R. Sec. 25.55;
253          (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
254     extract; and
255          (iv) (A) for which the producer is required to file a formula for approval with the
256     federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
257          (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
258          (b) "Flavored malt beverage" is considered liquor for purposes of this title.
259          [(43)] (45) "Fraternal license" means a license issued in accordance with Chapter 5,
260     Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
261     commission as a fraternal license.
262          [(44)] (46) "Full-service restaurant license" means a license issued in accordance with
263     Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-Service Restaurant License.
264          [(45)] (47) (a) "Furnish" means by any means to provide with, supply, or give an
265     individual an alcoholic product, by sale or otherwise.
266          (b) "Furnish" includes to:
267          (i) serve;
268          (ii) deliver; or
269          (iii) otherwise make available.
270          [(46)] (48) "Guest" means an individual who meets the requirements of Subsection
271     32B-6-407(9).
272          [(47)] (49) "Hard cider" means the same as that term is defined in 26 U.S.C. Sec. 5041.
273          [(48)] (50) "Health care practitioner" means:
274          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
275          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
276          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
277          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
278     Act;
279          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
280     Nurse Practice Act;
281          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
282     Practice Act;
283          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
284     Therapy Practice Act;
285          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
286          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
287     Professional Practice Act;
288          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
289          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
290     Practice Act;
291          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
292     Hygienist Practice Act; and
293          (m) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
294     Assistant Act.
295          [(49)] (51) (a) "Heavy beer" means a product that:
296          (i) contains more than 5% alcohol by volume; and
297          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
298          (b) "Heavy beer" is considered liquor for the purposes of this title.
299          [(50)] (52) "Hotel" means a commercial lodging establishment that:
300          (a) offers at least 30 temporary sleeping accommodations for compensation;
301          (b) is capable of hosting conventions, conferences, and food and beverage functions
302     under a banquet contract; and
303          (c) (i) has adequate kitchen or culinary facilities on the premises to provide complete
304     meals; or
305          (ii) (A) has at least 1,000 square feet of function space consisting of meeting or dining
306     rooms that can be reserved for private use under a banquet contract that can accommodate at
307     least 75 individuals; or
308          (B) if the establishment is located in a small or unincorporated locality, has an
309     appropriate amount of function space consisting of meeting or dining rooms that can be
310     reserved for private use under a banquet contract, as determined by the commission.
311          [(51)] (53) "Hotel license" means a license issued in accordance with Chapter 5, Retail
312     License Act, and Chapter 8b, Hotel License Act.
313          [(52)] (54) "Identification card" means an identification card issued under Title 53,
314     Chapter 3, Part 8, Identification Card Act.
315          [(53)] (55) "Industry representative" means an individual who is compensated by
316     salary, commission, or other means for representing and selling an alcoholic product of a
317     manufacturer, supplier, or importer of liquor.
318          [(54)] (56) "Industry representative sample" means liquor that is placed in the
319     possession of the department for testing, analysis, and sampling by a local industry
320     representative on the premises of the department to educate the local industry representative of
321     the quality and characteristics of the product.
322          [(55)] (57) "Interdicted person" means a person to whom the sale, offer for sale, or
323     furnishing of an alcoholic product is prohibited by:
324          (a) law; or
325          (b) court order.
326          [(56)] (58) "Intoxicated" means that a person:
327          (a) is significantly impaired as to the person's mental or physical functions as a result of
328     the use of:
329          (i) an alcoholic product;
330          (ii) a controlled substance;
331          (iii) a substance having the property of releasing toxic vapors; or
332          (iv) a combination of Subsections [(56)] (58)(a)(i) through (iii); and
333          (b) exhibits plain and easily observed outward manifestations of behavior or physical
334     signs produced by the overconsumption of an alcoholic product.
335          [(57)] (59) "Investigator" means an individual who is:
336          (a) a department compliance officer; or
337          (b) a nondepartment enforcement officer.
338          [(58)] (60) "Invitee" means the same as that term is defined in Section 32B-8-102.
339          [(59)] (61) "License" means:
340          (a) a retail license;
341          (b) a license issued in accordance with Chapter 7, Off-Premise Beer Retailer Act;
342          (c) a license issued in accordance with Chapter 7a, Beer Delivery License Act;
343          [(b)] (d) a license issued in accordance with Chapter 11, Manufacturing and Related
344     Licenses Act;
345          [(c)] (e) a license issued in accordance with Chapter 12, Liquor Warehousing License
346     Act;
347          [(d)] (f) a license issued in accordance with Chapter 13, Beer Wholesaling License Act;
348     or
349          [(e)] (g) a license issued in accordance with Chapter 17, Liquor Transport License Act.
350          [(60)] (62) "Licensee" means a person who holds a license.
351          [(61)] (63) "Limited-service restaurant license" means a license issued in accordance
352     with Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-Service Restaurant License.
353          [(62)] (64) "Limousine" means a motor vehicle licensed by the state or a local
354     authority, other than a bus or taxicab:
355          (a) in which the driver and a passenger are separated by a partition, glass, or other
356     barrier;
357          (b) that is provided by a business entity to one or more individuals at a fixed charge in
358     accordance with the business entity's tariff; and
359          (c) to give the one or more individuals the exclusive use of the limousine and a driver
360     to travel to one or more specified destinations.
361          [(63)] (65) (a) (i) "Liquor" means a liquid that:
362          (A) is:
363          (I) alcohol;
364          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
365          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
366          (IV) other drink or drinkable liquid; and
367          (B) (I) contains at least .5% alcohol by volume; and
368          (II) is suitable to use for beverage purposes.
369          (ii) "Liquor" includes:
370          (A) heavy beer;
371          (B) wine; and
372          (C) a flavored malt beverage.
373          (b) "Liquor" does not include beer.
374          [(64)] (66) "Liquor Control Fund" means the enterprise fund created by Section
375     32B-2-301.
376          [(65)] (67) "Liquor transport license" means a license issued in accordance with
377     Chapter 17, Liquor Transport License Act.
378          [(66)] (68) "Liquor warehousing license" means a license that is issued:
379          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
380          (b) to a person, other than a licensed manufacturer, who engages in the importation for
381     storage, sale, or distribution of liquor regardless of amount.
382          [(67)] (69) "Local authority" means:
383          (a) for premises that are located in an unincorporated area of a county, the governing
384     body of a county;
385          (b) for premises that are located in an incorporated city, town, or metro township, the
386     governing body of the city, town, or metro township; or
387          (c) for premises that are located in a project area as defined in Section 63H-1-201 and
388     in a project area plan adopted by the Military Installation Development Authority under Title
389     63H, Chapter 1, Military Installation Development Authority Act, the Military Installation
390     Development Authority.
391          [(68)] (70) "Lounge or bar area" is as defined by rule made by the commission.
392          [(69)] (71) "Manufacture" means to distill, brew, rectify, mix, compound, process,
393     ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
394     others.
395          [(70)] (72) "Member" means an individual who, after paying regular dues, has full
396     privileges in an equity licensee or fraternal licensee.
397          [(71)] (73) (a) "Military installation" means a base, air field, camp, post, station, yard,
398     center, or homeport facility for a ship:
399          (i) (A) under the control of the United States Department of Defense; or
400          (B) of the National Guard;
401          (ii) that is located within the state; and
402          (iii) including a leased facility.
403          (b) "Military installation" does not include a facility used primarily for:
404          (i) civil works;
405          (ii) a rivers and harbors project; or
406          (iii) a flood control project.
407          [(72)] (74) "Minibar" means an area of a hotel guest room where one or more alcoholic
408     products are kept and offered for self-service sale or consumption.
409          [(73)] (75) "Minor" means an individual under the age of 21 years.
410          [(74)] (76) "Nondepartment enforcement agency" means an agency that:
411          (a) (i) is a state agency other than the department; or
412          (ii) is an agency of a county, city, town, or metro township; and
413          (b) has a responsibility to enforce one or more provisions of this title.
414          [(75)] (77) "Nondepartment enforcement officer" means an individual who is:
415          (a) a peace officer, examiner, or investigator; and
416          (b) employed by a nondepartment enforcement agency.
417          (78) "Off-premise beer delivery" means the delivery of beer:
418          (a) to a location in this state off premises licensed under this title; and
419          (b) by a person licensed to conduct business in this state.
420          [(76)] (79) (a) "Off-premise beer retailer" means a beer retailer who is:
421          (i) licensed in accordance with Chapter 7, Off-Premise Beer Retailer Act; and
422          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
423     premises.
424          (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
425          [(77)] (80) "Off-premise beer retailer state license" means a state license issued in
426     accordance with Chapter 7, Part 4, Off-Premise Beer Retailer State License.
427          [(78)] (81) "On-premise banquet license" means a license issued in accordance with
428     Chapter 5, Retail License Act, and Chapter 6, Part 6, On-Premise Banquet License.
429          [(79)] (82) "On-premise beer retailer" means a beer retailer who is:
430          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
431     accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-Premise Beer
432     Retailer License; and
433          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
434     premises:
435          (i) regardless of whether the beer retailer sells beer for consumption off the licensed
436     premises; and
437          (ii) on and after March 1, 2012, operating:
438          (A) as a tavern; or
439          (B) in a manner that meets the requirements of Subsection 32B-6-703(2)(e)(i).
440          [(80)] (83) "Opaque" means impenetrable to sight.
441          [(81)] (84) "Package agency" means a retail liquor location operated:
442          (a) under an agreement with the department; and
443          (b) by a person:
444          (i) other than the state; and
445          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
446     Agency, to sell packaged liquor for consumption off the premises of the package agency.
447          [(82)] (85) "Package agent" means a person who holds a package agency.
448          [(83)] (86) "Patron" means an individual to whom food, beverages, or services are sold,
449     offered for sale, or furnished, or who consumes an alcoholic product including:
450          (a) a customer;
451          (b) a member;
452          (c) a guest;
453          (d) an attendee of a banquet or event;
454          (e) an individual who receives room service;
455          (f) a resident of a resort;
456          (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102;
457     or
458          (h) an invitee.
459          [(84)] (87) (a) "Performing arts facility" means a multi-use performance space that:
460          (i) is primarily used to present various types of performing arts, including dance,
461     music, and theater;
462          (ii) contains over 2,500 seats;
463          (iii) is owned and operated by a governmental entity; and
464          (iv) is located in a city of the first class.
465          (b) "Performing arts facility" does not include a space that is used to present sporting
466     events or sporting competitions.
467          [(85)] (88) "Permittee" means a person issued a permit under:
468          (a) Chapter 9, Event Permit Act; or
469          (b) Chapter 10, Special Use Permit Act.
470          [(86)] (89) "Person subject to administrative action" means:
471          (a) a licensee;
472          (b) a permittee;
473          (c) a manufacturer;
474          (d) a supplier;
475          (e) an importer;
476          (f) one of the following holding a certificate of approval:
477          (i) an out-of-state brewer;
478          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
479          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
480          (g) staff of:
481          (i) a person listed in Subsections [(86)] (89)(a) through (f); or
482          (ii) a package agent.
483          [(87)] (90) "Premises" means a building, enclosure, or room used in connection with
484     the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic
485     product, unless otherwise defined in this title or rules made by the commission.
486          [(88)] (91) "Prescription" means an order issued by a health care practitioner when:
487          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
488     to prescribe a controlled substance, other drug, or device for medicinal purposes;
489          (b) the order is made in the course of that health care practitioner's professional
490     practice; and
491          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
492          [(89)] (92) (a) "Private event" means a specific social, business, or recreational event:
493          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
494     group; and
495          (ii) that is limited in attendance to people who are specifically designated and their
496     guests.
497          (b) "Private event" does not include an event to which the general public is invited,
498     whether for an admission fee or not.
499          [(90)] (93) (a) "Proof of age" means:
500          (i) an identification card;
501          (ii) an identification that:
502          (A) is substantially similar to an identification card;
503          (B) is issued in accordance with the laws of a state other than Utah in which the
504     identification is issued;
505          (C) includes date of birth; and
506          (D) has a picture affixed;
507          (iii) a valid driver license certificate that:
508          (A) includes date of birth;
509          (B) has a picture affixed; and
510          (C) is issued:
511          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
512          (II) in accordance with the laws of the state in which it is issued;
513          (iv) a military identification card that:
514          (A) includes date of birth; and
515          (B) has a picture affixed; or
516          (v) a valid passport.
517          (b) "Proof of age" does not include a driving privilege card issued in accordance with
518     Section 53-3-207.
519          [(91)] (94) (a) "Public building" means a building or permanent structure that is:
520          (i) owned or leased by:
521          (A) the state; or
522          (B) a local government entity; and
523          (ii) used for:
524          (A) public education;
525          (B) transacting public business; or
526          (C) regularly conducting government activities.
527          (b) "Public building" does not include a building owned by the state or a local
528     government entity when the building is used by a person, in whole or in part, for a proprietary
529     function.
530          [(92)] (95) "Public conveyance" means a conveyance that the public or a portion of the
531     public has access to and a right to use for transportation, including an airline, railroad, bus,
532     boat, or other public conveyance.
533          [(93)] (96) "Reception center" means a business that:
534          (a) operates facilities that are at least 5,000 square feet; and
535          (b) has as its primary purpose the leasing of the facilities described in Subsection [(93)]
536     (96)(a) to a third party for the third party's event.
537          [(94)] (97) "Reception center license" means a license issued in accordance with
538     Chapter 5, Retail License Act, and Chapter 6, Part 8, Reception Center License.
539          [(95)] (98) (a) "Record" means information that is:
540          (i) inscribed on a tangible medium; or
541          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
542          (b) "Record" includes:
543          (i) a book;
544          (ii) a book of account;
545          (iii) a paper;
546          (iv) a contract;
547          (v) an agreement;
548          (vi) a document; or
549          (vii) a recording in any medium.
550          [(96)] (99) "Residence" means a person's principal place of abode within Utah.
551          [(97)] (100) "Resident," in relation to a resort, means the same as that term is defined
552     in Section 32B-8-102.
553          [(98)] (101) "Resort" means the same as that term is defined in Section 32B-8-102.
554          [(99)] (102) "Resort facility" is as defined by the commission by rule.
555          [(100)] (103) "Resort license" means a license issued in accordance with Chapter 5,
556     Retail License Act, and Chapter 8, Resort License Act.
557          [(101)] (104) "Responsible alcohol service plan" means a written set of policies and
558     procedures that outlines measures to prevent employees from:
559          (a) over-serving alcoholic beverages to customers;
560          (b) serving alcoholic beverages to customers who are actually, apparently, or obviously
561     intoxicated; and
562          (c) serving alcoholic beverages to minors.
563          [(102)] (105) "Restaurant" means a business location:
564          (a) at which a variety of foods are prepared;
565          (b) at which complete meals are served; and
566          (c) that is engaged primarily in serving meals.
567          [(103)] (106) "Retail license" means one of the following licenses issued under this
568     title:
569          (a) a full-service restaurant license;
570          (b) a master full-service restaurant license;
571          (c) a limited-service restaurant license;
572          (d) a master limited-service restaurant license;
573          (e) a bar establishment license;
574          (f) an airport lounge license;
575          (g) an on-premise banquet license;
576          (h) an on-premise beer license;
577          (i) a reception center license;
578          (j) a beer-only restaurant license;
579          (k) a resort license; or
580          (l) a hotel license.
581          [(104)] (107) "Room service" means furnishing an alcoholic product to a person in a
582     guest room of a:
583          (a) hotel; or
584          (b) resort facility.
585          [(105)] (108) (a) "School" means a building used primarily for the general education of
586     minors.
587          (b) "School" does not include an educational facility.
588          [(106)] (109) "Sell" or "offer for sale" means a transaction, exchange, or barter
589     whereby, for consideration, an alcoholic product is either directly or indirectly transferred,
590     solicited, ordered, delivered for value, or by a means or under a pretext is promised or
591     obtained, whether done by a person as a principal, proprietor, or as staff, unless otherwise
592     defined in this title or the rules made by the commission.
593          [(107)] (110) "Serve" means to place an alcoholic product before an individual.
594          [(108)] (111) "Sexually oriented entertainer" means a person who while in a state of
595     seminudity appears at or performs:
596          (a) for the entertainment of one or more patrons;
597          (b) on the premises of:
598          (i) a bar licensee; or
599          (ii) a tavern;
600          (c) on behalf of or at the request of the licensee described in Subsection [(108)]
601     (111)(b);
602          (d) on a contractual or voluntary basis; and
603          (e) whether or not the person is designated as:
604          (i) an employee;
605          (ii) an independent contractor;
606          (iii) an agent of the licensee; or
607          (iv) a different type of classification.
608          [(109)] (112) "Single event permit" means a permit issued in accordance with Chapter
609     9, Part 3, Single Event Permit.
610          [(110)] (113) "Small brewer" means a brewer who manufactures less than 60,000
611     barrels of beer, heavy beer, and flavored malt beverages per year.
612          [(111)] (114) "Small or unincorporated locality" means:
613          (a) a city of the third, fourth, or fifth class, as classified under Section 10-2-301;
614          (b) a town, as classified under Section 10-2-301; or
615          (c) an unincorporated area in a county of the third, fourth, or fifth class, as classified
616     under Section 17-50-501.
617          [(112)] (115) "Special use permit" means a permit issued in accordance with Chapter
618     10, Special Use Permit Act.
619          [(113)] (116) (a) "Spirituous liquor" means liquor that is distilled.
620          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
621     27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
622          [(114)] (117) "Sports center" is as defined by the commission by rule.
623          [(115)] (118) (a) "Staff" means an individual who engages in activity governed by this
624     title:
625          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
626     holder;
627          (ii) at the request of the business, including a package agent, licensee, permittee, or
628     certificate holder; or
629          (iii) under the authority of the business, including a package agent, licensee, permittee,
630     or certificate holder.
631          (b) "Staff" includes:
632          (i) an officer;
633          (ii) a director;
634          (iii) an employee;
635          (iv) personnel management;
636          (v) an agent of the licensee, including a managing agent;
637          (vi) an operator; or
638          (vii) a representative.
639          [(116)] (119) "State of nudity" means:
640          (a) the appearance of:
641          (i) the nipple or areola of a female human breast;
642          (ii) a human genital;
643          (iii) a human pubic area; or
644          (iv) a human anus; or
645          (b) a state of dress that fails to opaquely cover:
646          (i) the nipple or areola of a female human breast;
647          (ii) a human genital;
648          (iii) a human pubic area; or
649          (iv) a human anus.
650          [(117)] (120) "State of seminudity" means a state of dress in which opaque clothing
651     covers no more than:
652          (a) the nipple and areola of the female human breast in a shape and color other than the
653     natural shape and color of the nipple and areola; and
654          (b) the human genitals, pubic area, and anus:
655          (i) with no less than the following at its widest point:
656          (A) four inches coverage width in the front of the human body; and
657          (B) five inches coverage width in the back of the human body; and
658          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
659          [(118)] (121) (a) "State store" means a facility for the sale of packaged liquor:
660          (i) located on premises owned or leased by the state; and
661          (ii) operated by a state employee.
662          (b) "State store" does not include:
663          (i) a package agency;
664          (ii) a licensee; or
665          (iii) a permittee.
666          [(119)] (122) (a) "Storage area" means an area on licensed premises where the licensee
667     stores an alcoholic product.
668          (b) "Store" means to place or maintain in a location an alcoholic product.
669          [(120)] (123) "Sublicense" means the same as that term is defined in Section
670     32B-8-102 or 32B-8b-102.
671          [(121)] (124) "Supplier" means a person who sells an alcoholic product to the
672     department.
673          [(122)] (125) "Tavern" means an on-premise beer retailer who is:
674          (a) issued a license by the commission in accordance with Chapter 5, Retail License
675     Act, and Chapter 6, Part 7, On-Premise Beer Retailer License; and
676          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
677     On-Premise Beer Retailer License.
678          [(123)] (126) "Temporary beer event permit" means a permit issued in accordance with
679     Chapter 9, Part 4, Temporary Beer Event Permit.
680          [(124)] (127) "Temporary domicile" means the principal place of abode within Utah of
681     a person who does not have a present intention to continue residency within Utah permanently
682     or indefinitely.
683          [(125)] (128) "Translucent" means a substance that allows light to pass through, but
684     does not allow an object or person to be seen through the substance.
685          [(126)] (129) "Unsaleable liquor merchandise" means a container that:
686          (a) is unsaleable because the container is:
687          (i) unlabeled;
688          (ii) leaky;
689          (iii) damaged;
690          (iv) difficult to open; or
691          (v) partly filled;
692          (b) (i) has faded labels or defective caps or corks;
693          (ii) has contents that are:
694          (A) cloudy;
695          (B) spoiled; or
696          (C) chemically determined to be impure; or
697          (iii) contains:
698          (A) sediment; or
699          (B) a foreign substance; or
700          (c) is otherwise considered by the department as unfit for sale.
701          [(127)] (130) (a) "Wine" means an alcoholic product obtained by the fermentation of
702     the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or
703     not another ingredient is added.
704          (b) "Wine" includes:
705          (i) an alcoholic beverage defined as wine under 27 U.S.C. Sec. 211 and 27 C.F.R. Sec.
706     4.10; and
707          (ii) hard cider.
708          (c) "Wine" is considered liquor for purposes of this title, except as otherwise provided
709     in this title.
710          [(128)] (131) "Winery manufacturing license" means a license issued in accordance
711     with Chapter 11, Part 3, Winery Manufacturing License.
712          Section 2. Section 32B-1-305 is amended to read:
713          32B-1-305. Requirement for a background check.
714          (1) The department shall require an individual listed in Subsection (2), in accordance
715     with this part, to:
716          (a) provide a signed waiver from the individual whose fingerprints may be registered in
717     the Federal Bureau of Investigation Rap Back system that notifies the signee:
718          (i) that a criminal history background check will be conducted;
719          (ii) who will see the information; and
720          (iii) how the information will be used;
721          (b) submit to a background check in a form acceptable to the department; and
722          (c) consent to a background check by:
723          (i) the Utah Bureau of Criminal Identification; and
724          (ii) the Federal Bureau of Investigation.
725          (2) The following shall comply with Subsection (1):
726          (a) an individual applying for employment with the department if:
727          (i) the department makes the decision to offer the individual employment with the
728     department; and
729          (ii) once employed, the individual will receive benefits;
730          (b) an individual applying to the commission to operate a package agency;
731          (c) an individual applying to the commission for a license, unless the license is:
732          (i) an off-premise beer retailer state license; or
733          (ii) a beer delivery license;
734          (d) an individual who with regard to an entity that is applying to the commission to
735     operate a package agency or for a license is:
736          (i) a partner;
737          (ii) a managing agent;
738          (iii) a manager;
739          (iv) an officer;
740          (v) a director;
741          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of a
742     corporation;
743          (vii) a member who owns at least 20% of a limited liability company; or
744          (viii) an individual employed to act in a supervisory or managerial capacity; or
745          (e) an individual who becomes involved with an entity that operates a package agency
746     or holds a license, if the individual is in a capacity listed in Subsection (2)(d) on or after the day
747     on which the entity:
748          (i) is approved to operate a package agency; or
749          (ii) is licensed by the commission.
750          (3) (a) Except as provided in Subsection (3)(b), the commission may not require an
751     individual to comply with Subsection (1) based on the individual's position with or ownership
752     interest in an entity that has an ownership interest in the entity that is applying for the package
753     agency or license.
754          (b) The commission may require an individual described in Subsection (3)(a) to
755     comply with Subsection (1) if the individual exercises direct decision making control over the
756     day-to-day operations of the licensee.
757          (4) The department shall require compliance with Subsection (2)(e) as a condition of
758     an entity's:
759          (a) continued operation of a package agency; or
760          (b) renewal of a license.
761          (5) The department may require as a condition of continued employment that a
762     department employee:
763          (a) submit to a background check in a form acceptable to the department; and
764          (b) consent to a fingerprint criminal background check by:
765          (i) the Utah Bureau of Criminal Identification; and
766          (ii) the Federal Bureau of Investigation.
767          Section 3. Section 32B-1-407 is amended to read:
768          32B-1-407. Verification of proof of age by applicable licensees.
769          (1) As used in this section, "applicable licensee" means:
770          (a) a dining club;
771          (b) a bar;
772          (c) a tavern;
773          (d) a full-service restaurant;
774          (e) a limited-service restaurant; [or]
775          (f) a beer-only restaurant[.]; or
776          (g) a beer delivery licensee.
777          (2) Notwithstanding any other provision of this part, an applicable licensee shall
778     require that an authorized person for the applicable licensee verify proof of age as provided in
779     this section.
780          (3) An authorized person [is required to] shall verify proof of age under this section
781     before an individual who appears to be 35 years of age or younger:
782          (a) gains admittance to the premises of a bar licensee or tavern;
783          (b) procures an alcoholic product on the premises of a dining club licensee;
784          (c) procures an alcoholic product in a dispensing area in the premises of a full-service
785     restaurant licensee, a limited-service restaurant licensee, or a beer-only restaurant licensee; [or]
786          (d) [on or after July 1, 2018,] procures an alcoholic product within 10 feet of a
787     grandfathered bar structure[.]; or
788          (e) procures beer from a beer delivery licensee.
789          (4) To comply with Subsection (3), an authorized person shall:
790          (a) request the individual present proof of age; and
791          (b) (i) verify the validity of the proof of age electronically under the verification
792     program created in Subsection (5); or
793          (ii) if the proof of age cannot be electronically verified as provided in Subsection
794     (4)(b)(i), request that the individual comply with a process established by the commission by
795     rule.
796          (5) The commission shall establish by rule an electronic verification program that
797     includes the following:
798          (a) the specifications for the technology used by the applicable licensee to
799     electronically verify proof of age, including that the technology display to the person described
800     in Subsection (2) no more than the following for the individual who presents the proof of age:
801          (i) the name;
802          (ii) the age;
803          (iii) the number assigned to the individual's proof of age by the issuing authority;
804          (iv) the birth date;
805          (v) the gender; and
806          (vi) the status and expiration date of the individual's proof of age; and
807          (b) the security measures that shall be used by an applicable licensee to ensure that
808     information obtained under this section is:
809          (i) used by the applicable licensee only for purposes of verifying proof of age in
810     accordance with this section; and
811          (ii) except as provided in Subsection (7), retained by the applicable licensee for seven
812     days after the day on which the applicable licensee obtains the information.
813          (6) (a) An applicable licensee may not disclose information obtained under this section
814     except as provided under this title.
815          (b) Information obtained under this section is considered a record for any purpose
816     under Chapter 5, Part 3, Retail Licensee Operational Requirements.
817          (7) A beer delivery licensee shall retain information obtained under this section for
818     three years after the day on which the beer delivery licensee obtains the information.
819          Section 4. Section 32B-1-607 is amended to read:
820          32B-1-607. Rulemaking authority.
821          (1) The commission may adopt rules necessary to implement this part.
822          (2) Notwithstanding Subsections 32B-1-102[(10)](11) and [(49)] (51), in accordance
823     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make
824     rules that allow for a tolerance in the alcohol content of beer or heavy beer as follows:
825          (a) up to 0.18% above or below when measured by volume; or
826          (b) up to 0.15% above or below when measured by weight.
827          Section 5. Section 32B-1-704 is amended to read:
828          32B-1-704. Department training programs.
829          (1) [No later than January 1, 2018, the] The department shall develop the following
830     training programs that are provided either in-person or online:
831          (a) a training program for retail managers that addresses:
832          (i) the statutes and rules that govern alcohol sales and consumption in the state;
833          (ii) the requirements for operating as a retail licensee;
834          (iii) using compliance assistance from the department; and
835          (iv) any other topic the department determines beneficial to a retail manager; [and]
836          (b) a training program for an individual employed by a retail licensee or an off-premise
837     beer retailer who violates a provision of this title related to the sale, service, or furnishing of an
838     alcoholic beverage to an intoxicated individual or a minor, that addresses:
839          (i) the statutes and rules that govern the most common types of violations under this
840     title;
841          (ii) how to avoid common violations; and
842          (iii) any other topic the department determines beneficial to the training program[.];
843     and
844          (c) no later than January 1, 2021, a training program:
845          (i) for an individual who:
846          (A) is an authorized delivery agent; and
847          (B) violates a provision of this title related to the furnishing of an alcoholic beverage to
848     an intoxicated individual or a minor; and
849          (ii) that addresses:
850          (A) the statutes and rules that govern the most common types of violations under this
851     title;
852          (B) how to avoid common violations; and
853          (C) any other topic the department determines beneficial to the training program.
854          (2) [No later than January 1, 2019, the] The department shall develop a training
855     program:
856          (a) for off-premise retail managers;
857          (b) that is provided either in-person or online; and
858          (c) that addresses:
859          [(a)] (i) the statutes and rules that govern sales at an off-premise beer retailer;
860          [(b)] (ii) the requirements for operating an off-premise beer retailer;
861          [(c)] (iii) using compliance assistance from the department; and
862          [(d)] (iv) any other topic the department determines beneficial to an off-premise retail
863     manager.
864          (3) No later than January 1, 2021, the department shall develop a training program:
865          (a) for authorized delivery agents;
866          (b) that is provided either in-person or online; and
867          (c) addresses:
868          (i) the statutes and rules that govern off-premise beer delivery;
869          (ii) the requirements of making an off-premise beer delivery;
870          (iii) using compliance assistance from the department; and
871          (iv) any other topic the department determines beneficial to an authorized delivery
872     agent.
873          [(3)] (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
874     Act, and the provisions of this section, the department shall make rules to develop and
875     implement the training programs described in this section, including rules that establish:
876          (a) the requirements for each training program described in this section;
877          (b) measures that accurately identify each individual who takes and completes a
878     training program;
879          (c) measures that ensure an individual taking a training program is focused and actively
880     engaged in the training material throughout the training program;
881          (d) a record that certifies that an individual has completed a training program; and
882          (e) a fee for participation in a training program to cover the department's cost of
883     providing the training program.
884          [(4)] (5) (a) Except as provided in Subsection [(5)] (6), each retail manager shall
885     complete the training described in Subsection (1)(a) no later than the later of:
886          (i) 30 days after the day on which the retail manager is hired; or
887          (ii) 30 days after the day on which the retail licensee obtains a retail license under this
888     chapter.
889          (b) Except as provided in Subsection [(5)] (6), each off-premise retail manager shall
890     complete the training described in Subsection (2) no later than the later of:
891          (i) 30 days after the day on which the off-premise retail manager is hired; or
892          (ii) 30 days after the day on which the off-premise beer retailer obtains an off-premise
893     beer retailer state license.
894          (c) Each authorized delivery agent shall complete the training described in Subsection
895     (3) no later than 30 days after the day on which a beer delivery licensee makes the individual an
896     authorized delivery agent.
897          [(c)] (d) (i) If the commission finds that a retail licensee violated a provision of this
898     title related to the sale, service, or furnishing of an alcoholic beverage to an intoxicated
899     individual or a minor for a second time within 36 consecutive months after the day on which
900     the first violation was adjudicated, the violator, all retail staff, and each retail manager shall
901     complete the training program described in Subsection (1)(b).
902          (ii) If the commission finds that an off-premise beer retailer violated a provision of this
903     title related to the sale, service, or furnishing of an alcoholic beverage to an intoxicated
904     individual or a minor for a second time within 36 consecutive months after the day on which
905     the first violation was adjudicated, the violator and each off-premise retail manager shall
906     complete the training program described in Subsection (1)(b).
907          (iii) If the commission finds that an authorized delivery agent violates a provision of
908     this title related to the furnishing of an alcoholic beverage to an intoxicated individual or minor
909     for a second time within 36 consecutive months after the day on which the first violation was
910     adjudicated, the authorized delivery agent shall complete the training program described in
911     Subsection (1)(c).
912          [(5)] (6) (a) For a person who holds a retail license on January 1, 2018, each retail
913     manager shall complete the training program described in Subsection (1)(a) for the first time as
914     a condition of renewing the licensee's retail license in 2018.
915          (b) For a person who holds an off-premise beer retailer state license on January 1,
916     2019, each off-premise retail manager shall complete the training program described in
917     Subsection (1)(b) for the first time as a condition of renewing the licensee's off-premise beer
918     retailer state license in 2019.
919          [(6)] (7) If an individual fails to complete a required training program under this
920     section:
921          (a) the commission may suspend, revoke, or not renew the retail license [or],
922     off-premise beer retailer state license, or beer delivery license;
923          (b) a city, town, metro township, or county in which the retail licensee or off-premise
924     beer retailer is located may suspend, revoke, or not renew the retail licensee's or off-premise
925     beer retailer's business license; or
926          (c) a local authority may suspend, revoke, or not renew the off-premise beer retailer's
927     license.
928          Section 6. Section 32B-7a-101 is enacted to read:
929     
CHAPTER 7a. BEER DELIVERY LICENSE ACT

930          32B-7a-101. Title.
931          This chapter is known as the "Beer Delivery License Act."
932          Section 7. Section 32B-7a-102 is enacted to read:
933          32B-7a-102. Definitions.
934          As used in this chapter:
935          (1) "Software application" means an internet-connected software platform that a person
936     uses to place a delivery order for a product from a business.
937          (2) "Third-party delivery service" means a business that:
938          (a) primarily entails the delivery of another business's product to a person; and
939          (b) uses a software application to facilitate each delivery.
940          Section 8. Section 32B-7a-201 is enacted to read:
941          32B-7a-201. Commission's power to issue a beer delivery license.
942          (1) Before a person may make an off-premise beer delivery, the person shall first
943     obtain a beer delivery license from the commission in accordance with this chapter.
944          (2) The commission may only issue an off-premise beer delivery license to:
945          (a) an off-premise beer retailer licensee; or
946          (b) a third-party delivery service.
947          (3) The commission may not issue a beer delivery license to any person before January
948     1, 2021.
949          Section 9. Section 32B-7a-202 is enacted to read:
950          32B-7a-202. Application for a beer delivery license.
951          To obtain a beer delivery license a person shall submit to the department:
952          (1) a written application in a form the department prescribes;
953          (2) a nonrefundable application fee of $150;
954          (3) an initial licensing fee of $350 that is refundable if the commission does not issue
955     the beer delivery license;
956          (4) a copy of the person's current business license;
957          (5) evidence that the person carries public liability insurance in the amount of
958     $1,000,000 per occurrence;
959          (6) if the person is an entity, proper verification evidencing that the individual who
960     signs the application is authorized to sign on behalf of the entity; and
961          (7) any other information that the commission or department requires.
962          Section 10. Section 32B-7a-203 is enacted to read:
963          32B-7a-203. Renewal of beer delivery license.
964          (1) A beer delivery license expires on the last day of February each year.
965          (2) To renew a beer delivery license, a beer delivery licensee shall, no later than
966     January 31, submit:
967          (a) a completed renewal application to the department in a form the department
968     prescribes; and
969          (b) a renewal fee of $175.
970          (3) A beer delivery licensee automatically forfeits the beer delivery license if the beer
971     delivery licensee fails to satisfy the renewal requirements described in this section.
972          Section 11. Section 32B-7a-204 is enacted to read:
973          32B-7a-204. Duties of commission and department before issuing beer delivery
974     license.
975          (1) (a) Before the commission issues a beer delivery license, the department shall
976     conduct an investigation and may hold one or more public hearings to gather information and
977     make recommendations to the commission regarding whether the commission should issue the
978     beer delivery license.
979          (b) The department shall forward the information the department gathers under
980     Subsection (1)(a) and the department's recommendations to the commission.
981          (2) Before the commission issues a beer delivery license, the commission shall:
982          (a) determine that the person filed a complete application and is in compliance with the
983     provisions of this chapter;
984          (b) determine that the person is not disqualified under Section 32B-1-304; and
985          (c) consider any other factor that the commission considers necessary.
986          Section 12. Section 32B-7a-205 is enacted to read:
987          32B-7a-205. Notifying department of change of ownership.
988          The commission may suspend or revoke a beer delivery license if a beer delivery
989     licensee does not immediately notify the department of a change in:
990          (1) ownership of the licensee's business;
991          (2) for a corporate owner, a shareholder holding at least 20% of the total issued and
992     outstanding stock of the corporation; or
993          (3) for a limited liability company, a member owning at least 20% of the limited
994     liability company.
995          Section 13. Section 32B-7a-301 is enacted to read:
996          32B-7a-301. Bond for beer delivery license.
997          (1) (a) A beer delivery licensee shall post a cash or surety bond:
998          (i) in the penal sum of $5,000; and
999          (ii) payable to the department.
1000          (b) A beer delivery licensee shall procure and maintain the bond required under this
1001     section for as long as the beer delivery licensee continues to operate as a beer delivery licensee.
1002          (2) The bond a beer delivery licensee posts in accordance with this section shall be:
1003          (a) in a form the attorney general approves; and
1004          (b) conditioned upon the beer delivery licensee's faithful compliance with this title and
1005     the rules of the commission.
1006          (3) (a) If a surety bond that a beer delivery licensee posts in accordance with this
1007     section is canceled because of the beer delivery licensee's negligence, the department may
1008     assess a $300 reinstatement fee.
1009          (b) No part of a bond that a beer delivery licensee posts in accordance with this section
1010     may be withdrawn:
1011          (i) during the period the beer delivery license is in effect; or
1012          (ii) while a revocation proceeding is pending against the beer delivery licensee.
1013          (4) (a) A bond that a beer delivery licensee posts under this section may be forfeited if
1014     the commission revokes the beer delivery license.
1015          (b) Notwithstanding Subsection (4)(a), the department may make a claim against a
1016     bond that a beer delivery licensee posts for money owed the department under this title without
1017     the commission first revoking the beer delivery license.
1018          Section 14. Section 32B-7a-302 is enacted to read:
1019          32B-7a-302. Recordkeeping.
1020          (1) A beer delivery licensee shall make and maintain a record showing in detail:
1021          (a) each beer delivery; and
1022          (b) any other item the department requires.
1023          (2) A beer delivery licensee shall make and maintain a record required under
1024     Subsection (1):
1025          (a) in a form the department approves; and
1026          (b) current for each three-month period.
1027          (3) A beer delivery licensee shall support a delivery by:
1028          (a) a delivery ticket;
1029          (b) an invoice;
1030          (c) a receipted bill; or
1031          (d) other sustaining datum or memorandum.
1032          (4) In addition to a record required under Subsection (1), a beer delivery licensee shall
1033     make and maintain any other record the department may require.
1034          (5) (a) A record of a beer delivery licensee is subject to inspection by:
1035          (i) an authorized representative of the commission and the department; or
1036          (ii) an alcohol-related law enforcement officer.
1037          (b) A beer delivery licensee shall allow the department, through an auditor or examiner
1038     of the department, to audit the records of the beer delivery licensee at times the department
1039     considers advisable.
1040          (6) Section 32B-1-205 applies to a record required to be made or maintained under this
1041     section.
1042          Section 15. Section 32B-7a-303 is enacted to read:
1043          32B-7a-303. Operational requirements for a beer delivery license.
1044          (1) (a) A beer delivery licensee and an authorized delivery agent shall comply with the
1045     provisions of this title and any applicable rules the commission makes in accordance with Title
1046     63G, Chapter 3, Utah Administrative Rulemaking Act.
1047          (b) Failure to comply with this section may result in a suspension or revocation of a
1048     local license or disciplinary action in accordance with Chapter 3, Disciplinary Actions and
1049     Enforcement Act.
1050          (2) A beer delivery license permits a licensee to make an off-premise beer delivery:
1051          (a) to an individual who requests the delivery through a software application; and
1052          (b) through an authorized delivery agent.
1053          (3) A beer delivery licensee that is an off-premise beer retailer may only deliver or
1054     offer for delivery beer:
1055          (a) that an individual purchases from the off-premise beer retailer through a software
1056     application;
1057          (b) that the licensee is authorized to possess, sell, offer for sale, and furnish under the
1058     licensee's off-premise beer retailer state license; and
1059          (c) during days and hours the licensee is authorized to sell, offer for sale, and furnish
1060     beer under the licensee's off-premise beer retailer state license.
1061          (4) A beer delivery licensee that is a third-party delivery service may only deliver or
1062     offer for delivery beer:
1063          (a) that an individual purchases:
1064          (i) from an off-premise beer retailer; and
1065          (ii) through a software application;
1066          (b) that the off-premise beer retailer described in Subsection (4)(a) is authorized to
1067     possess, sell, offer for sale, and furnish under the off-premise beer retailer's state license; and
1068          (c) during days and hours the off-premise beer retailer described in Subsection (4)(a) is
1069     authorized to sell, offer for sale, and furnish beer under the licensee's off-premise beer retailer
1070     state license.
1071          (5) A beer delivery licensee shall ensure that an authorized delivery agent for the
1072     licensee:
1073          (a) is at least 21 years of age;
1074          (b) while making an off-premise beer delivery:
1075          (i) does not consume an alcoholic product; and
1076          (ii) is not intoxicated;
1077          (c) completes an alcohol training and education seminar; and
1078          (d) follows the requirements for delivery described in Subsection (6).
1079          (6) (a) An authorized delivery agent may not fulfill an off-premise beer delivery unless
1080     the authorized delivery agent verifies that the individual to whom the authorized delivery agent
1081     delivers the beer:
1082          (i) is at least 21 years of age;
1083          (ii) is not actually, apparently, or obviously intoxicated;
1084          (iii) electronically paid in full for the off-premise beer delivery; and
1085          (iv) is the same individual whose name is attached to the electronic payment described
1086     in Subsection (6)(a).
1087          (b) An authorized delivery agent shall verify an individual's age in accordance with
1088     Section 32B-1-407.
1089          (c) Any beer that an authorized delivery agent is unable to deliver in accordance with
1090     this Subsection (6), the authorized delivery agent shall immediately return to the off-premise
1091     beer retailer from which the beer was purchased.
1092          (7) A beer delivery licensee shall retain a record of each delivery for three years after
1093     the day on which the delivery is made.
1094          Section 16. Section 32B-7a-401 is enacted to read:
1095          32B-7a-401. Enforcement.
1096          (1) In addition to any criminal penalty that may be imposed, if an authorized delivery
1097     agent violates a provision of this title related to the furnishing of beer to an intoxicated
1098     individual or a minor:
1099          (a) the Department of Public Safety shall:
1100          (i) enter the authorized delivery agent's information in the system described in Section
1101     32B-7-305; and
1102          (ii) inform a beer delivery licensee of an individual who has a violation history; and
1103          (b) the commission shall revoke the beer delivery license of the beer delivery licensee
1104     for whom the authorized delivery agent made the off-premise beer delivery that resulted in the
1105     violation.
1106          (2) The Department of Public Safety shall maintain a record of a violation in
1107     accordance with Subsection (1) until the record is expunged under Subsection (3).
1108          (3) The Department of Public Safety shall expunge from the system described in
1109     Section 32B-7-305 a violation of this chapter if the individual is not found in violation of any
1110     law involving the sale of an alcoholic product to a minor for a period of 36 consecutive months
1111     from the day on which the individual is last adjudicated as violating a law involving the sale of
1112     an alcoholic product to a minor.
1113          (4) Any of the following may conduct a random investigation or compliance check of
1114     an off-premise beer delivery:
1115          (a) an authorized representative of the commission or department; or
1116          (b) an alcohol-related law enforcement officer.
1117          Section 17. Section 62A-15-401 is amended to read:
1118          62A-15-401. Alcohol training and education seminar.
1119          (1) As used in this part:
1120          (a) "Authorized delivery agent" means the same as that term is defined in Section
1121     32B-1-102.
1122          [(a)] (b) "Instructor" means a person that directly provides the instruction during an
1123     alcohol training and education seminar for a seminar provider.
1124          [(b)] (c) "Licensee" means a person who is:
1125          (i) (A) a new or renewing licensee under Title 32B, Alcoholic Beverage Control Act;
1126     and
1127          (B) engaged in the retail sale of an alcoholic product for consumption on the premises
1128     of the licensee; or
1129          (ii) a business that is:
1130          (A) a new or renewing licensee licensed by a city, town, or county; and
1131          (B) engaged in the retail sale of beer for consumption off the premises of the licensee.
1132          [(c)] (d) "Off-premise beer retailer" [is as] means the same as that term is defined in
1133     Section 32B-1-102.
1134          [(d)] (e) "Seminar provider" means a person other than the division who provides an
1135     alcohol training and education seminar meeting the requirements of this section.
1136          (2) (a) This section applies to:
1137          (i) a retail manager as defined in Section 32B-1-701;
1138          (ii) retail staff as defined in Section 32B-1-701; and
1139          (iii) an individual who, as defined by division rule:
1140          (A) directly supervises the sale of beer to a customer for consumption off the premises
1141     of an off-premise beer retailer; [or]
1142          (B) sells beer to a customer for consumption off the premises of an off-premise beer
1143     retailer[.]; or
1144          (C) delivers beer, as an authorized delivery agent, to a customer located off licensed
1145     premises.
1146          (b) If the individual does not have a valid record that the individual has completed an
1147     alcohol training and education seminar, an individual described in Subsection (2)(a) shall:
1148          (i) (A) complete an alcohol training and education seminar within 30 days of the
1149     following if the individual is described in Subsection (2)(a)(i) or (ii):
1150          (I) if the individual is an employee, the day the individual begins employment;
1151          (II) if the individual is an independent contractor, the day the individual is first hired;
1152     or
1153          (III) if the individual holds an ownership interest in the licensee, the day that the
1154     individual first engages in an activity that would result in that individual being required to
1155     complete an alcohol training and education seminar; [or]
1156          (B) complete an alcohol training and education seminar within the time periods
1157     specified in Subsection 32B-1-703(1) if the individual is described in Subsection (2)(a)(iii)(A)
1158     or (B); [and] or
1159          (C) complete an alcohol training and education seminar within the time period
1160     specified in Subsection 32B-1-704(5)(c) if the individual is described in Subsection
1161     (2)(a)(iii)(C); and
1162          (ii) pay a fee:
1163          (A) to the seminar provider; and
1164          (B) that is equal to or greater than the amount established under Subsection (4)(h).
1165          (c) An individual shall have a valid record that the individual completed an alcohol
1166     training and education seminar within the time period provided in this Subsection (2) to engage
1167     in an activity described in Subsection (2)(a).
1168          (d) A record that an individual has completed an alcohol training and education
1169     seminar is valid for:
1170          (i) three years from the day on which the record is issued for an individual described in
1171     Subsection (2)(a)(i) or (ii); and
1172          (ii) five years from the day on which the record is issued for an individual described in
1173     Subsection (2)(a)(iii)(A) or (B).
1174          (e) On and after July 1, 2011, to be considered as having completed an alcohol training
1175     and education seminar, an individual shall:
1176          (i) attend the alcohol training and education seminar and take any test required to
1177     demonstrate completion of the alcohol training and education seminar in the physical presence
1178     of an instructor of the seminar provider; or
1179          (ii) complete the alcohol training and education seminar and take any test required to
1180     demonstrate completion of the alcohol training and education seminar through an online course
1181     or testing program that meets the requirements described in Subsection (2)(f).
1182          (f) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
1183     Administrative Rulemaking Act, establish one or more requirements for an online course or
1184     testing program described in Subsection (2)(e) that are designed to inhibit fraud in the use of
1185     the online course or testing program. In developing the requirements by rule the division shall
1186     consider whether to require:
1187          (i) authentication that the an individual accurately identifies the individual as taking the
1188     online course or test;
1189          (ii) measures to ensure that an individual taking the online course or test is focused on
1190     training material throughout the entire training period;
1191          (iii) measures to track the actual time an individual taking the online course or test is
1192     actively engaged online;
1193          (iv) a seminar provider to provide technical support, such as requiring a telephone
1194     number, email, or other method of communication that allows an individual taking the online
1195     course or test to receive assistance if the individual is unable to participate online because of
1196     technical difficulties;
1197          (v) a test to meet quality standards, including randomization of test questions and
1198     maximum time limits to take a test;
1199          (vi) a seminar provider to have a system to reduce fraud as to who completes an online
1200     course or test, such as requiring a distinct online certificate with information printed on the
1201     certificate that identifies the person taking the online course or test, or requiring measures to
1202     inhibit duplication of a certificate;
1203          (vii) measures for the division to audit online courses or tests;
1204          (viii) measures to allow an individual taking an online course or test to provide an
1205     evaluation of the online course or test;
1206          (ix) a seminar provider to track the Internet protocol address or similar electronic
1207     location of an individual who takes an online course or test;
1208          (x) an individual who takes an online course or test to use an e-signature; or
1209          (xi) a seminar provider to invalidate a certificate if the seminar provider learns that the
1210     certificate does not accurately reflect the individual who took the online course or test.
1211          (3) (a) A licensee may not permit an individual who is not in compliance with
1212     Subsection (2) to:
1213          (i) serve or supervise the serving of an alcoholic product to a customer for
1214     consumption on the premises of the licensee;
1215          (ii) engage in any activity that would constitute managing operations at the premises of
1216     a licensee that engages in the retail sale of an alcoholic product for consumption on the
1217     premises of the licensee;
1218          (iii) directly supervise the sale of beer to a customer for consumption off the premises
1219     of an off-premise beer retailer; [or]
1220          (iv) sell beer to a customer for consumption off the premises of an off-premise beer
1221     retailer[.]; or
1222          (v) deliver beer, as an authorized delivery agent, to a customer located off licensed
1223     premises.
1224          (b) A licensee that violates Subsection (3)(a) is subject to Section 32B-1-702.
1225          (4) The division shall:
1226          (a) (i) provide alcohol training and education seminars; or
1227          (ii) certify one or more seminar providers;
1228          (b) establish the curriculum for an alcohol training and education seminar that includes
1229     the following subjects:
1230          (i) (A) alcohol as a drug; and
1231          (B) alcohol's effect on the body and behavior;
1232          (ii) recognizing the problem drinker or signs of intoxication;
1233          (iii) an overview of state alcohol laws related to responsible beverage sale or service,
1234     as determined in consultation with the Department of Alcoholic Beverage Control;
1235          (iv) dealing with the problem customer, including ways to terminate sale or service;
1236     and
1237          (v) for those supervising or engaging in the retail sale of an alcoholic product for
1238     consumption on the premises of a licensee, alternative means of transportation to get the
1239     customer safely home;
1240          (c) recertify each seminar provider every three years;
1241          (d) monitor compliance with the curriculum described in Subsection (4)(b);
1242          (e) maintain for at least five years a record of every person who has completed an
1243     alcohol training and education seminar;
1244          (f) provide the information described in Subsection (4)(e) on request to:
1245          (i) the Department of Alcoholic Beverage Control;
1246          (ii) law enforcement; or
1247          (iii) a person licensed by the state or a local government to sell an alcoholic product;
1248          (g) provide the Department of Alcoholic Beverage Control on request a list of any
1249     seminar provider certified by the division; and
1250          (h) establish a fee amount for each person attending an alcohol training and education
1251     seminar that is sufficient to offset the division's cost of administering this section.
1252          (5) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
1253     Administrative Rulemaking Act:
1254          (a) define what constitutes under this section an individual who:
1255          (i) manages operations at the premises of a licensee engaged in the retail sale of an
1256     alcoholic product for consumption on the premises of the licensee;
1257          (ii) supervises the serving of an alcoholic product to a customer for consumption on the
1258     premises of a licensee;
1259          (iii) serves an alcoholic product to a customer for consumption on the premises of a
1260     licensee;
1261          (iv) directly supervises the sale of beer to a customer for consumption off the premises
1262     of an off-premise beer retailer; [or]
1263          (v) sells beer to a customer for consumption off the premises of an off-premise beer
1264     retailer; or
1265          (vi) delivers beer, as an authorized delivery agent, to a customer located off licensed
1266     premises;
1267          (b) establish criteria for certifying and recertifying a seminar provider; and
1268          (c) establish guidelines for the manner in which an instructor provides an alcohol
1269     education and training seminar.
1270          (6) A seminar provider shall:
1271          (a) obtain recertification by the division every three years;
1272          (b) ensure that an instructor used by the seminar provider:
1273          (i) follows the curriculum established under this section; and
1274          (ii) conducts an alcohol training and education seminar in accordance with the
1275     guidelines established by rule;
1276          (c) ensure that any information provided by the seminar provider or instructor of a
1277     seminar provider is consistent with:
1278          (i) the curriculum established under this section; and
1279          (ii) this section;
1280          (d) provide the division with the names of all persons who complete an alcohol training
1281     and education seminar provided by the seminar provider;
1282          (e) (i) collect a fee for each person attending an alcohol training and education seminar
1283     in accordance with Subsection (2); and
1284          (ii) forward to the division the portion of the fee that is equal to the amount described
1285     in Subsection (4)(h); and
1286          (f) issue a record to an individual that completes an alcohol training and education
1287     seminar provided by the seminar provider.
1288          (7) (a) If after a hearing conducted in accordance with Title 63G, Chapter 4,
1289     Administrative Procedures Act, the division finds that a seminar provider violates this section
1290     or that an instructor of the seminar provider violates this section, the division may:
1291          (i) suspend the certification of the seminar provider for a period not to exceed 90 days;
1292          (ii) revoke the certification of the seminar provider;
1293          (iii) require the seminar provider to take corrective action regarding an instructor; or
1294          (iv) prohibit the seminar provider from using an instructor until such time that the
1295     seminar provider establishes to the satisfaction of the division that the instructor is in
1296     compliance with Subsection (6)(b).
1297          (b) The division may certify a seminar provider whose certification is revoked:
1298          (i) no sooner than 90 days from the date the certification is revoked; and
1299          (ii) if the seminar provider establishes to the satisfaction of the division that the
1300     seminar provider will comply with this section.
1301          Section 18. Section 63I-2-232 is amended to read:
1302          63I-2-232. Repeal dates -- Title 32B.
1303          (1) Subsection 32B-1-102[(7)](8) is repealed July 1, 2022.
1304          [(2) Section 32B-1-207.1 is repealed November 1, 2019.]
1305          [(3)] (2) Subsection 32B-1-407(3)(d) is repealed July 1, 2022.
1306          [(4)] (3) Section 32B-2-211.1 is repealed November 1, 2020.
1307          [(5)] (4) Subsections 32B-6-202(3) and (4) are repealed July 1, 2022.
1308          [(6)] (5) Section 32B-6-205 is repealed July 1, 2022.
1309          [(7)] (6) Subsection 32B-6-205.2(14) is repealed July 1, 2022.
1310          [(8)] (7) Section 32B-6-205.3 is repealed July 1, 2022.
1311          [(9)] (8) Subsections 32B-6-302(3) and (4) are repealed July 1, 2022.
1312          [(10)] (9) Section 32B-6-305 is repealed July 1, 2022.
1313          [(11)] (10) Subsection 32B-6-305.2(14) is repealed July 1, 2022.
1314          [(12)] (11) Section 32B-6-305.3 is repealed July 1, 2022.
1315          [(13)] (12) Section 32B-6-404.1 is repealed July 1, 2022.
1316          [(14)] (13) Section 32B-6-409 is repealed July 1, 2022.
1317          [(15)] (14) Subsection 32B-6-703(2)(e)(iv) is repealed July 1, 2022.
1318          [(16)] (15) Subsections 32B-6-902(1)(c), (1)(d), and (2) are repealed July 1, 2022.
1319          [(17)] (16) Section 32B-6-905 is repealed July 1, 2022.
1320          [(18)] (17) Subsection 32B-6-905.1(15) is repealed July 1, 2022.
1321          [(19)] (18) Section 32B-6-905.2 is repealed July 1, 2022.
1322          [(20)] (19) Subsection 32B-8-402(1)(b) is repealed July 1, 2022.