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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 provisions regarding minors in or on the lounge or bar areas of certain
36 licensees;
37 ▸ amends the definition of recreational amenity;
38 ▸ grants the commission power to designate by rule a recreational amenity under
39 certain conditions;
40 ▸ amends the total annual gross receipts from the sale of food that a reception center
41 licensee must maintain;
42 ▸ creates a hospitality amenity license as a retail license and establishes operational
43 requirements;
44 ▸ prohibits one or more licensees from having a retail license on the same licensed
45 premises or adjacent to an off-premise beer retailer state licensee's licensed
46 premises, except under certain conditions;
47 ▸ amends the Transfer of Retail License Act to:
48 • govern the transfer of an off-premise beer retailer state license, a manufacturing
49 license, and an industrial or manufacturing use permit; and
50 • permit the transfer of a bar establishment license across county lines;
51 ▸ creates an arena license, including licensing requirements, operational requirements,
52 and enforcement;
53 ▸ consolidates provisions regarding sublicenses, creating the Sublicense Act;
54 ▸ requires a person who substantially changes an event permit application to pay a
55 nonrefundable fee;
56 ▸ repeals provisions regarding enforcement of the Nuisance Retail Licensee Act in
57 relation to hotel and resort licensees; and
58 ▸ makes technical and conforming changes.
59 Money Appropriated in this Bill:
60 None
61 Other Special Clauses:
62 None
63 Utah Code Sections Affected:
64 AMENDS:
65 32B-1-102, as last amended by Laws of Utah 2019, Chapters 336, 403, 498 and last
66 amended by Coordination Clause, Laws of Utah 2019, Chapter 403
67 32B-1-202, as last amended by Laws of Utah 2018, Chapter 249
68 32B-1-206, as renumbered and amended by Laws of Utah 2011, Chapter 307
69 32B-1-304, as last amended by Laws of Utah 2019, Chapter 145
70 32B-1-305, as last amended by Laws of Utah 2019, Chapter 403
71 32B-1-607, as last amended by Laws of Utah 2019, Chapter 403
72 32B-2-202, as last amended by Laws of Utah 2019, Chapter 403
73 32B-2-605, as last amended by Laws of Utah 2019, Chapter 403
74 32B-3-202, as enacted by Laws of Utah 2010, Chapter 276
75 32B-3-204, as last amended by Laws of Utah 2012, Chapter 365
76 32B-4-415, as last amended by Laws of Utah 2018, Chapter 249
77 32B-4-422, as last amended by Laws of Utah 2011, Chapter 307
78 32B-5-201, as last amended by Laws of Utah 2017, Chapter 455
79 32B-5-202, as last amended by Laws of Utah 2018, Chapter 249
80 32B-5-203, as enacted by Laws of Utah 2010, Chapter 276
81 32B-5-204, as enacted by Laws of Utah 2010, Chapter 276
82 32B-5-207, as last amended by Laws of Utah 2019, Chapter 403
83 32B-5-301, as last amended by Laws of Utah 2019, Chapter 403
84 32B-5-307, as last amended by Laws of Utah 2018, Chapter 249
85 32B-5-309, as and further amended by Revisor Instructions, Laws of Utah 2013,
86 Chapter 349
87 32B-6-406, as last amended by Laws of Utah 2018, Chapter 249
88 32B-6-603, as last amended by Laws of Utah 2019, Chapter 403
89 32B-6-605, as last amended by Laws of Utah 2019, Chapter 403
90 32B-6-702, as last amended by Laws of Utah 2019, Chapter 403
91 32B-6-803, as last amended by Laws of Utah 2019, Chapter 403
92 32B-6-805, as last amended by Laws of Utah 2019, Chapter 403
93 32B-8-102, as last amended by Laws of Utah 2017, Chapter 455
94 32B-8-201, as enacted by Laws of Utah 2010, Chapter 276
95 32B-8-202, as last amended by Laws of Utah 2011, Chapter 334
96 32B-8-401, as last amended by Laws of Utah 2011, Chapters 307 and 334
97 32B-8-501, as last amended by Laws of Utah 2019, Chapter 145
98 32B-8-502, as enacted by Laws of Utah 2010, Chapter 276
99 32B-8a-101, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
100 Revisor Instructions, Laws of Utah 2013, Chapter 349
101 32B-8a-102, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
102 Revisor Instructions, Laws of Utah 2013, Chapter 349
103 32B-8a-201, as last amended by Laws of Utah 2013, Chapter 349 and further amended
104 by Revisor Instructions, Laws of Utah 2013, Chapter 349
105 32B-8a-202, as last amended by Laws of Utah 2018, Chapter 249
106 32B-8a-203, as last amended by Laws of Utah 2018, Chapter 249
107 32B-8a-302, as last amended by Laws of Utah 2017, Chapters 455, 471 and last
108 amended by Coordination Clause, Laws of Utah 2017, Chapter 471
109 32B-8a-303, as and further amended by Revisor Instructions, Laws of Utah 2013,
110 Chapter 349
111 32B-8a-401, as last amended by Laws of Utah 2016, Chapter 82
112 32B-8a-402, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
113 Revisor Instructions, Laws of Utah 2013, Chapter 349
114 32B-8a-404, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
115 Revisor Instructions, Laws of Utah 2013, Chapter 349
116 32B-8a-501, 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-502, as enacted by Laws of Utah 2011, Chapter 334 and further amended by
119 Revisor Instructions, Laws of Utah 2013, Chapter 349
120 32B-8b-102, as last amended by Laws of Utah 2018, Chapter 249
121 32B-8b-201, as last amended by Laws of Utah 2017, Chapter 455
122 32B-8b-202, as enacted by Laws of Utah 2016, Chapter 80
123 32B-8b-301, as last amended by Laws of Utah 2018, Chapter 249
124 32B-8b-401, as enacted by Laws of Utah 2016, Chapter 80
125 32B-9-201, as last amended by Laws of Utah 2012, Chapter 365
126 32B-10-206, as enacted by Laws of Utah 2010, Chapter 276
127 32B-11-208, as enacted by Laws of Utah 2010, Chapter 276
128 32B-11-403, as last amended by Laws of Utah 2016, Chapter 266
129 63I-2-232, as last amended by Laws of Utah 2019, First Special Session, Chapter 2
130 ENACTS:
131 32B-1-208, Utah Code Annotated 1953
132 32B-7-409, Utah Code Annotated 1953
133 32B-6-1001, Utah Code Annotated 1953
134 32B-6-1002, Utah Code Annotated 1953
135 32B-6-1003, Utah Code Annotated 1953
136 32B-6-1004, Utah Code Annotated 1953
137 32B-6-1005, Utah Code Annotated 1953
138 32B-8c-101, Utah Code Annotated 1953
139 32B-8c-102, Utah Code Annotated 1953
140 32B-8c-201, Utah Code Annotated 1953
141 32B-8c-202, Utah Code Annotated 1953
142 32B-8c-301, Utah Code Annotated 1953
143 32B-8c-401, Utah Code Annotated 1953
144 32B-8d-101, Utah Code Annotated 1953
145 32B-8d-102, Utah Code Annotated 1953
146 32B-8d-103, Utah Code Annotated 1953
147 32B-8d-104, Utah Code Annotated 1953
148 32B-8d-105, Utah Code Annotated 1953
149 32B-8d-201, Utah Code Annotated 1953
150 RENUMBERS AND AMENDS:
151 32B-8d-202, (Renumbered from 32B-8-301, as enacted by Laws of Utah 2010, Chapter
152 276)
153 32B-8d-203, (Renumbered from 32B-8-302, as enacted by Laws of Utah 2010, Chapter
154 276)
155 32B-8d-204, (Renumbered from 32B-8-303, as enacted by Laws of Utah 2010, Chapter
156 276)
157 32B-8d-205, (Renumbered from 32B-8-304, as last amended by Laws of Utah 2017,
158 Chapter 455)
159 REPEALS:
160 32B-8-203, as enacted by Laws of Utah 2010, Chapter 276
161 32B-8-204, as last amended by Laws of Utah 2011, Chapter 334
162 32B-8-402, as last amended by Laws of Utah 2011, Chapter 334
163 32B-8-503, as enacted by Laws of Utah 2010, Chapter 276
164 32B-8b-203, as enacted by Laws of Utah 2016, Chapter 80
165 32B-8b-204, as enacted by Laws of Utah 2016, Chapter 80
166 32B-8b-302, as last amended by Laws of Utah 2018, Chapter 249
167 32B-8b-402, as enacted by Laws of Utah 2016, Chapter 80
168
169 Be it enacted by the Legislature of the state of Utah:
170 Section 1. Section 32B-1-102 is amended to read:
171 32B-1-102. Definitions.
172 As used in this title:
173 (1) "Airport lounge" means a business location:
174 (a) at which an alcoholic product is sold at retail for consumption on the premises; and
175 (b) that is located at an international airport with a United States Customs office on the
176 premises of the international airport.
177 (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
178 Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
179 (3) "Alcoholic beverage" means the following:
180 (a) beer; or
181 (b) liquor.
182 (4) (a) "Alcoholic product" means a product that:
183 (i) contains at least .5% of alcohol by volume; and
184 (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
185 process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
186 in an amount equal to or greater than .5% of alcohol by volume.
187 (b) "Alcoholic product" includes an alcoholic beverage.
188 (c) "Alcoholic product" does not include any of the following common items that
189 otherwise come within the definition of an alcoholic product:
190 (i) except as provided in Subsection (4)(d), an extract;
191 (ii) vinegar;
192 (iii) preserved nonintoxicating cider;
193 (iv) essence;
194 (v) tincture;
195 (vi) food preparation; or
196 (vii) an over-the-counter medicine.
197 (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
198 when it is used as a flavoring in the manufacturing of an alcoholic product.
199 (5) "Alcohol training and education seminar" means a seminar that is:
200 (a) required by Chapter 1, Part 7, Alcohol Training and Education Act; and
201 (b) described in Section 62A-15-401.
202 (6) "Arena" means an enclosed building:
203 (a) that is managed by:
204 (i) the same person who owns the enclosed building;
205 (ii) a person who has a majority interest in each person who owns or manages a space
206 in the enclosed building; or
207 (iii) a person who has authority to direct or exercise control over the management or
208 policy of each person who owns or manages a space in the enclosed building;
209 (b) that operates as a venue; and
210 (c) that has an occupancy capacity of at least 12,500.
211 (7) "Arena license" means a license issued in accordance with Chapter 5, Retail
212 License Act, and Chapter 8c, Arena License Act.
213 [
214 (a) that is a private event or a privately sponsored event;
215 [
216 in or on the premises of [
217 (i) a hotel;
218 (ii) a resort facility;
219 (iii) a sports center;
220 (iv) a convention center; [
221 (v) a performing arts facility; or
222 (vi) an arena;
223 [
224 (i) between a person operating a facility listed in Subsection [
225 person that has common ownership of less than 20% with the person operating the facility; and
226 (ii) under which the person operating a facility listed in Subsection [
227 required to provide an alcoholic product at the event; and
228 [
229 furnished.
230 [
231 any place of the surface or structure an alcoholic product is:
232 (a) stored; or
233 (b) dispensed.
234 [
235 Chapter 5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License.
236 (b) "Bar establishment license" includes:
237 (i) a dining club license;
238 (ii) an equity license;
239 (iii) a fraternal license; or
240 (iv) a bar license.
241 [
242 License Act, and Chapter 6, Part 4, Bar Establishment License.
243 [
244 (i) contains at least .5% of alcohol by volume, but not more than 5% of alcohol by
245 volume or 4% by weight; and
246 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
247 (b) "Beer" may or may not contain hops or other vegetable products.
248 (c) "Beer" includes a product that:
249 (i) contains alcohol in the percentages described in Subsection [
250 (ii) is referred to as:
251 (A) beer;
252 (B) ale;
253 (C) porter;
254 (D) stout;
255 (E) lager; or
256 (F) a malt or malted beverage.
257 (d) "Beer" does not include a flavored malt beverage.
258 [
259 Chapter 5, Retail License Act, and Chapter 6, Part 9, Beer-Only Restaurant License.
260 [
261 (a) is engaged, primarily or incidentally, in the retail sale of beer to a patron, whether
262 for consumption on or off the business premises; and
263 (b) is licensed as:
264 (i) an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-Premise Beer
265 Retailer Local Authority; or
266 (ii) an on-premise beer retailer, in accordance with Chapter 5, Retail License Act, and
267 Chapter 6, Part 7, On-Premise Beer Retailer License.
268 [
269 (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
270 (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
271 retail licensees or off-premise beer retailers.
272 [
273 (a) a light device;
274 (b) a painting;
275 (c) a drawing;
276 (d) a poster;
277 (e) a sign;
278 (f) a signboard; or
279 (g) a scoreboard.
280 [
281 (a) beer;
282 (b) heavy beer; or
283 (c) a flavored malt beverage.
284 [
285 Chapter 11, Part 5, Brewery Manufacturing License.
286 [
287 department under Section 32B-11-201.
288 [
289 provided by a bus company to a group of persons pursuant to a common purpose:
290 (a) under a single contract;
291 (b) at a fixed charge in accordance with the bus company's tariff; and
292 (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
293 motor vehicle, and a driver to travel together to one or more specified destinations.
294 [
295 (a) set apart for worship;
296 (b) in which religious services are held;
297 (c) with which clergy is associated; and
298 (d) that is tax exempt under the laws of this state.
299 [
300 in Section 32B-2-201.
301 [
302 [
303 (a) a public or private school;
304 (b) a church;
305 (c) a public library;
306 (d) a public playground; or
307 (e) a public park.
308 [
309 (a) the governing body of the community location; or
310 (b) if the commission does not know who is the governing body of a community
311 location, a person who appears to the commission to have been given on behalf of the
312 community location the authority to prohibit an activity at the community location.
313 [
314 including:
315 (a) a bottle;
316 (b) a vessel; or
317 (c) a similar item.
318 [
319 (a) in total at least 30,000 square feet; and
320 (b) otherwise defined as a "convention center" by the commission by rule.
321 [
322 premises where seating is provided to a patron for service of food.
323 (b) "Counter" does not include a dispensing structure.
324 [
325 [
326 in Section 32B-2-203.
327 [
328 (a) an auditor or inspector; and
329 (b) employed by the department.
330 [
331 department for testing, analysis, and sampling.
332 [
333 Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
334 commission as a dining club license.
335 [
336 department.
337 [
338 under this title:
339 (a) against a person subject to administrative action; and
340 (b) that is brought on the basis of a violation of this title.
341 [
342 (i) drawing an alcoholic product; and
343 (ii) using the alcoholic product at the location from which it was drawn to mix or
344 prepare an alcoholic product to be furnished to a patron of the retail licensee.
345 (b) The definition of "dispense" in this Subsection [
346 (i) a full-service restaurant license;
347 (ii) a limited-service restaurant license;
348 (iii) a reception center license; and
349 (iv) a beer-only restaurant license.
350 [
351 (a) where an alcoholic product is dispensed; or
352 (b) from which an alcoholic product is served.
353 [
354 with Chapter 11, Part 4, Distillery Manufacturing License.
355 [
356 the department that is saleable, but for some reason is unappealing to the public.
357 [
358 [
359 [
360 [
361 [
362 Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
363 commission as an equity license.
364 [
365 (a) a single event permit; or
366 (b) a temporary beer event permit.
367 [
368 being considered in determining the total number of retail licenses that the commission may
369 issue at any time.
370 [
371 (i) that contains at least .5% alcohol by volume;
372 (ii) that is treated by processing, filtration, or another method of manufacture that is not
373 generally recognized as a traditional process in the production of a beer as described in 27
374 C.F.R. Sec. 25.55;
375 (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
376 extract; and
377 (iv) (A) for which the producer is required to file a formula for approval with the
378 federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
379 (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
380 (b) "Flavored malt beverage" is considered liquor for purposes of this title.
381 [
382 Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
383 commission as a fraternal license.
384 [
385 Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-Service Restaurant License.
386 [
387 individual an alcoholic product, by sale or otherwise.
388 (b) "Furnish" includes to:
389 (i) serve;
390 (ii) deliver; or
391 (iii) otherwise make available.
392 [
393 32B-6-407(9).
394 [
395 [
396 (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
397 (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
398 (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
399 (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
400 Act;
401 (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
402 Nurse Practice Act;
403 (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
404 Practice Act;
405 (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
406 Therapy Practice Act;
407 (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
408 (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
409 Professional Practice Act;
410 (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
411 (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
412 Practice Act;
413 (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
414 Hygienist Practice Act; and
415 (m) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
416 Assistant Act.
417 [
418 (i) contains more than 5% alcohol by volume; and
419 (ii) is obtained by fermentation, infusion, or decoction of malted grain.
420 (b) "Heavy beer" is considered liquor for the purposes of this title.
421 (51) "Hospitality amenity license" means a license issued in accordance with Chapter,
422 5, Retail License Act, and Chapter 6, Part 10, Hospitality Amenity License.
423 [
424 (a) offers at least [
425 compensation;
426 (b) is capable of hosting conventions, conferences, and food and beverage functions
427 under a banquet contract; and
428 (c) (i) has adequate kitchen or culinary facilities on the premises to provide complete
429 meals; or
430 (ii) (A) has at least 1,000 square feet of function space consisting of meeting or dining
431 rooms that can be reserved for private use under a banquet contract [
432 accommodate at least 75 individuals; or
433 (B) if the establishment is located in a small or unincorporated locality, has an
434 appropriate amount of function space consisting of meeting or dining rooms that can be
435 reserved for private use under a banquet contract, as determined by the commission.
436 [
437 License Act, and Chapter 8b, Hotel License Act.
438 [
439 Chapter 3, Part 8, Identification Card Act.
440 [
441 salary, commission, or other means for representing and selling an alcoholic product of a
442 manufacturer, supplier, or importer of liquor.
443 [
444 possession of the department for testing, analysis, and sampling by a local industry
445 representative on the premises of the department to educate the local industry representative of
446 the quality and characteristics of the product.
447 [
448 furnishing of an alcoholic product is prohibited by:
449 (a) law; or
450 (b) court order.
451 [
452 (a) is significantly impaired as to the person's mental or physical functions as a result of
453 the use of:
454 (i) an alcoholic product;
455 (ii) a controlled substance;
456 (iii) a substance having the property of releasing toxic vapors; or
457 (iv) a combination of Subsections [
458 (b) exhibits plain and easily observed outward manifestations of behavior or physical
459 signs produced by the overconsumption of an alcoholic product.
460 [
461 (a) a department compliance officer; or
462 (b) a nondepartment enforcement officer.
463 [
464 [
465 (a) a retail license;
466 (b) a sublicense;
467 [
468 Licenses Act;
469 [
470 Act;
471 [
472 Act; or
473 [
474 [
475 [
476 with Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-Service Restaurant License.
477 [
478 authority, other than a bus or taxicab:
479 (a) in which the driver and a passenger are separated by a partition, glass, or other
480 barrier;
481 (b) that is provided by a business entity to one or more individuals at a fixed charge in
482 accordance with the business entity's tariff; and
483 (c) to give the one or more individuals the exclusive use of the limousine and a driver
484 to travel to one or more specified destinations.
485 [
486 (A) is:
487 (I) alcohol;
488 (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
489 (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
490 (IV) other drink or drinkable liquid; and
491 (B) (I) contains at least .5% alcohol by volume; and
492 (II) is suitable to use for beverage purposes.
493 (ii) "Liquor" includes:
494 (A) heavy beer;
495 (B) wine; and
496 (C) a flavored malt beverage.
497 (b) "Liquor" does not include beer.
498 [
499 32B-2-301.
500 [
501 Chapter 17, Liquor Transport License Act.
502 [
503 (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
504 (b) to a person, other than a licensed manufacturer, who engages in the importation for
505 storage, sale, or distribution of liquor regardless of amount.
506 [
507 (a) for premises that are located in an unincorporated area of a county, the governing
508 body of a county;
509 (b) for premises that are located in an incorporated city, town, or metro township, the
510 governing body of the city, town, or metro township; or
511 (c) for premises that are located in a project area as defined in Section 63H-1-201 and
512 in a project area plan adopted by the Military Installation Development Authority under Title
513 63H, Chapter 1, Military Installation Development Authority Act, the Military Installation
514 Development Authority.
515 [
516 [
517 ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
518 others.
519 [
520 privileges in an equity licensee or fraternal licensee.
521 [
522 center, or homeport facility for a ship:
523 (i) (A) under the control of the United States Department of Defense; or
524 (B) of the National Guard;
525 (ii) that is located within the state; and
526 (iii) including a leased facility.
527 (b) "Military installation" does not include a facility used primarily for:
528 (i) civil works;
529 (ii) a rivers and harbors project; or
530 (iii) a flood control project.
531 [
532 products are kept and offered for self-service sale or consumption.
533 [
534 [
535 (a) (i) is a state agency other than the department; or
536 (ii) is an agency of a county, city, town, or metro township; and
537 (b) has a responsibility to enforce one or more provisions of this title.
538 [
539 (a) a peace officer, examiner, or investigator; and
540 (b) employed by a nondepartment enforcement agency.
541 [
542 (i) licensed in accordance with Chapter 7, Off-Premise Beer Retailer Act; and
543 (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
544 premises.
545 (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
546 [
547 accordance with Chapter 7, Part 4, Off-Premise Beer Retailer State License.
548 [
549 Chapter 5, Retail License Act, and Chapter 6, Part 6, On-Premise Banquet License.
550 [
551 (a) authorized to sell, offer for sale, or furnish beer under a license issued in
552 accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-Premise Beer
553 Retailer License; and
554 (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
555 premises:
556 (i) regardless of whether the beer retailer sells beer for consumption off the licensed
557 premises; and
558 (ii) on and after March 1, 2012, operating:
559 (A) as a tavern; or
560 (B) in a manner that meets the requirements of Subsection 32B-6-703(2)(e)(i).
561 [
562 [
563 (a) under an agreement with the department; and
564 (b) by a person:
565 (i) other than the state; and
566 (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
567 Agency, to sell packaged liquor for consumption off the premises of the package agency.
568 [
569 [
570 offered for sale, or furnished, or who consumes an alcoholic product including:
571 (a) a customer;
572 (b) a member;
573 (c) a guest;
574 (d) an attendee of a banquet or event;
575 (e) an individual who receives room service;
576 (f) a resident of a resort; or
577 [
578
579 [
580 (g) a hospitality guest, as defined in Section 32B-6-1002, under a hospitality amenity
581 license.
582 [
583 (i) is primarily used to present various types of performing arts, including dance,
584 music, and theater;
585 (ii) contains over 2,500 seats;
586 (iii) is owned and operated by a governmental entity; and
587 (iv) is located in a city of the first class.
588 (b) "Performing arts facility" does not include a space that is used to present sporting
589 events or sporting competitions.
590 [
591 (a) Chapter 9, Event Permit Act; or
592 (b) Chapter 10, Special Use Permit Act.
593 [
594 (a) a licensee;
595 (b) a permittee;
596 (c) a manufacturer;
597 (d) a supplier;
598 (e) an importer;
599 (f) one of the following holding a certificate of approval:
600 (i) an out-of-state brewer;
601 (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
602 (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
603 (g) staff of:
604 (i) a person listed in Subsections [
605 (ii) a package agent.
606 [
607 the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic
608 product, unless otherwise defined in this title or rules made by the commission.
609 [
610 (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
611 to prescribe a controlled substance, other drug, or device for medicinal purposes;
612 (b) the order is made in the course of that health care practitioner's professional
613 practice; and
614 (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
615 (90) (a) "Primary spirituous liquor" means the main distilled spirit in a beverage.
616 (b) "Primary spirituous liquor" does not include a secondary flavoring ingredient.
617 (91) "Principal license" means:
618 (a) a resort license;
619 (b) a hotel license; or
620 (c) an arena license.
621 [
622 (i) for which an entire room, area, or hall is leased or rented in advance by an identified
623 group; and
624 (ii) that is limited in attendance to people who are specifically designated and their
625 guests.
626 (b) "Private event" does not include an event to which the general public is invited,
627 whether for an admission fee or not.
628 (93) "Privately sponsored event" means a specific social, business, or recreational
629 event:
630 (a) that is held in or on the premises of an on-premise banquet licensee; and
631 (b) to which entry is restricted by an admission fee.
632 [
633 (i) an identification card;
634 (ii) an identification that:
635 (A) is substantially similar to an identification card;
636 (B) is issued in accordance with the laws of a state other than Utah in which the
637 identification is issued;
638 (C) includes date of birth; and
639 (D) has a picture affixed;
640 (iii) a valid driver license certificate that:
641 (A) includes date of birth;
642 (B) has a picture affixed; and
643 (C) is issued:
644 (I) under Title 53, Chapter 3, Uniform Driver License Act; or
645 (II) in accordance with the laws of the state in which it is issued;
646 (iv) a military identification card that:
647 (A) includes date of birth; and
648 (B) has a picture affixed; or
649 (v) a valid passport.
650 (b) "Proof of age" does not include a driving privilege card issued in accordance with
651 Section 53-3-207.
652 (95) "Provisions applicable to a sublicense" means:
653 (a) for a full-service restaurant sublicense, the provisions applicable to a full-service
654 restaurant license under Chapter 6, Part 2, Full-Service Restaurant License;
655 (b) for a limited-service restaurant sublicense, the provisions applicable to a
656 limited-service restaurant license under Chapter 6, Part 3, Limited-Service Restaurant License;
657 (c) for a bar establishment sublicense, the provisions applicable to a bar establishment
658 license under Chapter 6, Part 4, Bar Establishment License;
659 (d) for an on-premise banquet sublicense, the provisions applicable to an on-premise
660 banquet license under Chapter 6, Part 6, On-Premise Banquet License;
661 (e) for an on-premise beer retailer sublicense, the provisions applicable to an
662 on-premise beer retailer license under Chapter 6, Part 7, On-Premise Beer Retailer license;
663 (f) for a beer-only restaurant sublicense, the provisions applicable to a beer-only
664 restaurant license under Chapter 6, Part 9, Beer-Only Restaurant License;
665 (g) for a hospitality amenity license, the provisions applicable to a hospitality amenity
666 license under Chapter 6, Part 10, Hospitality Amenity Sublicense; and
667 (h) for a resort spa sublicense, the provisions applicable to the sublicense under
668 Chapter 8d, Part 2, Resort Spa License.
669 [
670 (i) owned or leased by:
671 (A) the state; or
672 (B) a local government entity; and
673 (ii) used for:
674 (A) public education;
675 (B) transacting public business; or
676 (C) regularly conducting government activities.
677 (b) "Public building" does not include a building owned by the state or a local
678 government entity when the building is used by a person, in whole or in part, for a proprietary
679 function.
680 [
681 public has access to and a right to use for transportation, including an airline, railroad, bus,
682 boat, or other public conveyance.
683 [
684 (a) operates facilities that are at least 5,000 square feet; and
685 (b) has as its primary purpose the leasing of the facilities described in Subsection [
686 (98)(a) to a third party for the third party's event.
687 [
688 Chapter 5, Retail License Act, and Chapter 6, Part 8, Reception Center License.
689 [
690 (i) inscribed on a tangible medium; or
691 (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
692 (b) "Record" includes:
693 (i) a book;
694 (ii) a book of account;
695 (iii) a paper;
696 (iv) a contract;
697 (v) an agreement;
698 (vi) a document; or
699 (vii) a recording in any medium.
700 [
701 [
702 in Section 32B-8-102.
703 [
704 [
705 (105) "Resort spa sublicense" means a resort license sublicense issued in accordance
706 with Chapter 8d, Part 2, Resort Spa Sublicense.
707 [
708 Retail License Act, and Chapter 8, Resort License Act.
709 [
710 procedures that outlines measures to prevent employees from:
711 (a) over-serving alcoholic beverages to customers;
712 (b) serving alcoholic beverages to customers who are actually, apparently, or obviously
713 intoxicated; and
714 (c) serving alcoholic beverages to minors.
715 [
716 (a) at which a variety of foods are prepared;
717 (b) at which complete meals are served; and
718 (c) that is engaged primarily in serving meals.
719 (109) "Restaurant license" means one of the following licenses issued under this title:
720 (a) a full-service restaurant license;
721 (b) a limited-service restaurant license; or
722 (c) a beer-only restaurant license.
723 [
724 title:
725 (a) a full-service restaurant license;
726 (b) a master full-service restaurant license;
727 (c) a limited-service restaurant license;
728 (d) a master limited-service restaurant license;
729 (e) a bar establishment license;
730 (f) an airport lounge license;
731 (g) an on-premise banquet license;
732 (h) an on-premise beer license;
733 (i) a reception center license;
734 (j) a beer-only restaurant license;
735 (k) a hospitality amenity license;
736 [
737 [
738 (n) an arena license.
739 [
740 guest room of a:
741 (a) hotel; or
742 (b) resort facility.
743 [
744
745 (112) (a) "School" means a building in which any part is used for more than three
746 hours each weekday during a school year as a public or private:
747 (i) elementary school;
748 (ii) secondary school; or
749 (iii) kindergarten.
750 (b) "School" does not include [
751 (i) a nursery school;
752 (ii) a day care center;
753 (iii) a trade and technical school;
754 (iv) a preschool; or
755 (v) a home school.
756 (113) "Secondary flavoring ingredient" means any spirituous liquor added to a
757 beverage for additional flavoring that is different in type, flavor, or brand from the primary
758 spirituous liquor in the beverage.
759 [
760 whereby, for consideration, an alcoholic product is either directly or indirectly transferred,
761 solicited, ordered, delivered for value, or by a means or under a pretext is promised or
762 obtained, whether done by a person as a principal, proprietor, or as staff, unless otherwise
763 defined in this title or the rules made by the commission.
764 [
765 [
766 seminudity appears at or performs:
767 (a) for the entertainment of one or more patrons;
768 (b) on the premises of:
769 (i) a bar licensee; or
770 (ii) a tavern;
771 (c) on behalf of or at the request of the licensee described in Subsection [
772 (116)(b);
773 (d) on a contractual or voluntary basis; and
774 (e) whether or not the person is designated as:
775 (i) an employee;
776 (ii) an independent contractor;
777 (iii) an agent of the licensee; or
778 (iv) a different type of classification.
779 (117) "Shared seating area" means the licensed premises of two or more restaurant
780 licensees that the restaurant licensees share as an area for alcoholic beverage consumption in
781 accordance with Subsection 32B-5-207(3).
782 [
783 9, Part 3, Single Event Permit.
784 [
785 barrels of beer, heavy beer, and flavored malt beverages per year.
786 [
787 (a) a city of the third, fourth, or fifth class, as classified under Section 10-2-301;
788 (b) a town, as classified under Section 10-2-301; or
789 (c) an unincorporated area in a county of the third, fourth, or fifth class, as classified
790 under Section 17-50-501.
791 [
792 10, Special Use Permit Act.
793 [
794 (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
795 27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
796 [
797 [
798 title:
799 (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
800 holder;
801 (ii) at the request of the business, including a package agent, licensee, permittee, or
802 certificate holder; or
803 (iii) under the authority of the business, including a package agent, licensee, permittee,
804 or certificate holder.
805 (b) "Staff" includes:
806 (i) an officer;
807 (ii) a director;
808 (iii) an employee;
809 (iv) personnel management;
810 (v) an agent of the licensee, including a managing agent;
811 (vi) an operator; or
812 (vii) a representative.
813 [
814 (a) the appearance of:
815 (i) the nipple or areola of a female human breast;
816 (ii) a human genital;
817 (iii) a human pubic area; or
818 (iv) a human anus; or
819 (b) a state of dress that fails to opaquely cover:
820 (i) the nipple or areola of a female human breast;
821 (ii) a human genital;
822 (iii) a human pubic area; or
823 (iv) a human anus.
824 [
825 covers no more than:
826 (a) the nipple and areola of the female human breast in a shape and color other than the
827 natural shape and color of the nipple and areola; and
828 (b) the human genitals, pubic area, and anus:
829 (i) with no less than the following at its widest point:
830 (A) four inches coverage width in the front of the human body; and
831 (B) five inches coverage width in the back of the human body; and
832 (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
833 [
834 (i) located on premises owned or leased by the state; and
835 (ii) operated by a state employee.
836 (b) "State store" does not include:
837 (i) a package agency;
838 (ii) a licensee; or
839 (iii) a permittee.
840 [
841 stores an alcoholic product.
842 (b) "Store" means to place or maintain in a location an alcoholic product.
843 [
844
845 (a) any of the following licenses issued as a subordinate license to, and contingent on
846 the issuance of, a principal license:
847 (i) a full-service restaurant license;
848 (ii) a limited-service restaurant license;
849 (iii) a bar establishment license;
850 (iv) an on-premise banquet license;
851 (v) an on-premise beer retailer license;
852 (vi) a beer-only restaurant license; or
853 (vii) a hospitality amenity license; or
854 (b) a resort spa sublicense.
855 [
856 department.
857 [
858 (a) issued a license by the commission in accordance with Chapter 5, Retail License
859 Act, and Chapter 6, Part 7, On-Premise Beer Retailer License; and
860 (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
861 On-Premise Beer Retailer License.
862 [
863 Chapter 9, Part 4, Temporary Beer Event Permit.
864 [
865 a person who does not have a present intention to continue residency within Utah permanently
866 or indefinitely.
867 [
868 does not allow an object or person to be seen through the substance.
869 [
870 (a) is unsaleable because the container is:
871 (i) unlabeled;
872 (ii) leaky;
873 (iii) damaged;
874 (iv) difficult to open; or
875 (v) partly filled;
876 (b) (i) has faded labels or defective caps or corks;
877 (ii) has contents that are:
878 (A) cloudy;
879 (B) spoiled; or
880 (C) chemically determined to be impure; or
881 (iii) contains:
882 (A) sediment; or
883 (B) a foreign substance; or
884 (c) is otherwise considered by the department as unfit for sale.
885 [
886 the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or
887 not another ingredient is added.
888 (b) "Wine" includes:
889 (i) an alcoholic beverage defined as wine under 27 U.S.C. Sec. 211 and 27 C.F.R. Sec.
890 4.10; and
891 (ii) hard cider.
892 (c) "Wine" is considered liquor for purposes of this title, except as otherwise provided
893 in this title.
894 [
895 with Chapter 11, Part 3, Winery Manufacturing License.
896 Section 2. Section 32B-1-202 is amended to read:
897 32B-1-202. Proximity to community location.
898 (1) As used in this section:
899 (a) (i) "Outlet" means:
900 (A) a state store;
901 (B) a package agency; or
902 (C) a retail licensee.
903 (ii) "Outlet" does not include:
904 (A) an airport lounge licensee; or
905 (B) a restaurant.
906 (b) "Restaurant" means:
907 (i) a full-service restaurant licensee;
908 (ii) a limited-service restaurant licensee; or
909 (iii) a beer-only restaurant licensee.
910 (2) (a) The commission may not issue a license for an outlet if, on the date the
911 commission takes final action to approve or deny the application, there is a community
912 location:
913 (i) within 600 feet of the proposed outlet , as measured from the nearest patron entrance
914 of the proposed outlet by following the shortest route of ordinary pedestrian travel to the
915 property boundary of the community location; or
916 (ii) within 200 feet of the proposed outlet , measured in a straight line from the nearest
917 patron entrance of the proposed outlet to the nearest property boundary of the community
918 location.
919 (b) The commission may not issue a license for a restaurant if, on the date the
920 commission takes final action to approve or deny the application, there is a community
921 location:
922 (i) within 300 feet of the proposed restaurant, as measured from the nearest patron
923 entrance of the proposed restaurant by following the shortest route of ordinary pedestrian travel
924 to the property boundary of the community location; or
925 (ii) within 200 feet of the proposed restaurant, measured in a straight line from the
926 nearest patron entrance of the proposed restaurant to the nearest property boundary of the
927 community location.
928 (3) (a) For an outlet or a restaurant that holds a license on May 9, 2017, and operates
929 under a previously approved variance to one or more proximity requirements in effect before
930 May 9, 2017, subject to the other provisions of this title, that outlet or restaurant, or another
931 outlet or restaurant with the same type of license as that outlet or restaurant, may operate under
932 the previously approved variance regardless of whether:
933 (i) the outlet or restaurant changes ownership;
934 (ii) the property on which the outlet or restaurant is located changes ownership; or
935 (iii) there is a lapse in the use of the property as an outlet or a restaurant with the same
936 type of license, unless during the lapse, the property is used for a different purpose.
937 (b) An outlet or a restaurant that has continuously operated at a location since before
938 January 1, 2007, is considered to have a previously approved variance.
939 (4) An outlet or restaurant that holds a license on May 12, 2020, and operates in
940 accordance with the proximity requirements in effect at the time the commission issued the
941 license or operates under a previously approved variance described in Subsection (3), subject to
942 the other provisions of this title, that outlet or restaurant or an outlet or a restaurant with the
943 same type of license as that outlet or restaurant may operate at the premises regardless of
944 whether:
945 (a) the outlet or restaurant changes ownership;
946 (b) the property on which the outlet or restaurant is located changes ownership; or
947 (c) there is a lapse of one year or less in the use of the property as an outlet or a
948 restaurant with the same type of license, unless during the lapse the property is used for a
949 different purpose.
950 [
951 establishes a community location on a property that puts the outlet or restaurant in violation of
952 the proximity requirements in effect at the time the license is issued or a previously approved
953 variance described in Subsection (3), subject to the other provisions of this title, that outlet or
954 restaurant, or an outlet or a restaurant with the same type of license as that outlet or restaurant,
955 may operate at the premises regardless of whether:
956 (i) the outlet or restaurant changes ownership;
957 (ii) the property on which the outlet or restaurant is located changes ownership; or
958 (iii) there is a lapse in the use of the property as an outlet or a restaurant with the same
959 type of license, unless during the lapse the property is used for a different purpose.
960 (b) The provisions of this Subsection [
961 restaurant's license is issued.
962 [
963 proximity of an educational, religious, and recreational facility, or any other relevant factor in
964 reaching a decision on a proposed location of an outlet.
965 Section 3. Section 32B-1-206 is amended to read:
966 32B-1-206. Advertising prohibited -- Exceptions.
967 (1) (a) The department may not advertise liquor, except:
968 (i) the department may provide for an appropriate sign in the window or on the front of
969 a state store or package agency denoting that it is a state authorized liquor retail facility;
970 (ii) the department or a package agency may provide a printed price list to the public;
971 (iii) the department may authorize the use of price posting and floor stacking of liquor
972 within a state store;
973 (iv) subject to Subsection (1)(b), the department may provide a listing of the address
974 and telephone number of a state store in one or more printed or electronic directories available
975 to the general public; and
976 (v) subject to Subsection (1)(b), a package agency may provide a listing of its address
977 and telephone number in one or more printed or electronic directories available to the general
978 public.
979 (b) A listing under Subsection (1)(a)(iv) or (v) in the business or yellow pages of a
980 telephone directory may not be displayed in an advertisement or other promotional format.
981 (2) (a) The department may not advertise an alcoholic product on a billboard.
982 (b) A package agency may not advertise an alcoholic product on a billboard, except to
983 the extent allowed by the commission by rule.
984 (3) (a) The department may not display liquor or a price list in a window or showcase
985 visible to passersby.
986 (b) A package agency may not display liquor or a price list in a window or showcase
987 visible to passersby, except to the extent allowed by the commission by rule.
988 (4) Advertising of an alcoholic product may not:
989 (a) promote the intoxicating effects of alcohol; or
990 (b) emphasize the high alcohol content of the alcoholic product.
991 [
992 product is allowed under guidelines established by the commission by rule.
993 [
994 the general public without charge is prohibited.
995 Section 4. Section 32B-1-208 is enacted to read:
996 32B-1-208. Percentage lease agreements.
997 (1) As used in this section:
998 (a) "Percentage lease agreement" means a lease agreement in which the lessee:
999 (i) is a retail licensee; and
1000 (ii) pays the lessor:
1001 (A) a base rent; and
1002 (B) percentage rent.
1003 (b) "Percentage rent" means a percentage:
1004 (i) agreed upon between a lessor and lessee; and
1005 (ii) of the total sales revenue that:
1006 (A) exceed a fixed dollar amount of sales revenue; and
1007 (B) the lessee earns while doing business on the rental premises.
1008 (2) (a) The parties to a percentage lease agreement shall submit a copy of the
1009 percentage lease agreement to the department.
1010 (b) If there is a material change to the percentage lease agreement submitted to the
1011 department under Subsection (2)(a), the parties to the percentage lease agreement shall
1012 promptly submit a copy of the changed percentage lease agreement to the department.
1013 (3) If a percentage lease agreement requires a retail licensee to pay the lessor a
1014 percentage rent of 6% or less, the department may not conduct any further investigation into
1015 the percentage lease agreement.
1016 (4) The commission shall make rules in accordance with Title 63G, Chapter 3, Utah
1017 Administrative Rulemaking Act, establishing:
1018 (a) the maximum percentage of revenue from alcohol sales a percentage lease
1019 agreement may require; and
1020 (b) the procedure for submitting a percentage lease agreement under Subsection (2).
1021 Section 5. Section 32B-1-304 is amended to read:
1022 32B-1-304. Qualifications for a package agency, license, or permit -- Minors.
1023 (1) (a) [
1024 package agency, license, or permit to a person who has been convicted of:
1025 (i) within seven years before the day on which the commission issues the package
1026 agency, license, or permit, a felony under a federal law or state law;
1027 (ii) within four years before the day on which the commission issues the package
1028 agency, license, or permit:
1029 (A) a violation of a federal law, state law, or local ordinance concerning the sale, offer
1030 for sale, warehousing, manufacture, distribution, transportation, or adulteration of an alcoholic
1031 product; or
1032 (B) a crime involving moral turpitude; or
1033 (iii) on two or more occasions within the five years before the day on which the
1034 package agency, license, or permit is issued, driving under the influence of alcohol, drugs, or
1035 the combined influence of alcohol and drugs.
1036 (b) If the person is a partnership, corporation, or limited liability company, the
1037 proscription under Subsection (1)(a) applies if any of the following has been convicted of an
1038 offense described in Subsection (1)(a):
1039 (i) a partner;
1040 (ii) a managing agent;
1041 (iii) a manager;
1042 (iv) an officer;
1043 (v) a director;
1044 (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
1045 the corporation; or
1046 (vii) a member who owns at least 20% of the limited liability company.
1047 (c) [
1048 (1)(a) applies if a person who is employed to act in a supervisory or managerial capacity for a
1049 package agency, licensee, or permittee has been convicted of an offense described in
1050 Subsection (1)(a).
1051 (2) [
1052 suspend or revoke a package agency, license, or permit, and terminate a package agency
1053 agreement, if a person described in Subsection (1):
1054 (a) after the day on which the package agency, license, or permit is issued, is found to
1055 have been convicted of an offense described in Subsection (1)(a) before the package agency,
1056 license, or permit is issued; or
1057 (b) on or after the day on which the package agency, license, or permit is issued:
1058 (i) is convicted of an offense described in Subsection (1)(a)(i) or (ii); or
1059 (ii) (A) is convicted of driving under the influence of alcohol, drugs, or the combined
1060 influence of alcohol and drugs; and
1061 (B) was convicted of driving under the influence of alcohol, drugs, or the combined
1062 influence of alcohol and drugs within five years before the day on which the person is
1063 convicted of the offense described in Subsection (2)(b)(ii)(A).
1064 (3) [
1065 action by immediately suspending the operation of the package agency, licensee, or permittee
1066 for the period during which a criminal matter is being adjudicated if a person described in
1067 Subsection (1):
1068 (a) is arrested on a charge for an offense described in Subsection (1)(a)(i) or (ii); or
1069 (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
1070 drugs, or the combined influence of alcohol and drugs; and
1071 (ii) was convicted of driving under the influence of alcohol, drugs, or the combined
1072 influence of alcohol and drugs within five years before the day on which the person is arrested
1073 on a charge described in Subsection (3)(b)(i).
1074 (4) (a) (i) The commission may not issue a package agency, license, or permit to a
1075 person who has had any type of agency, license, or permit issued under this title revoked within
1076 the last three years.
1077 (ii) The commission may not issue a package agency, license, or permit to a
1078 partnership, corporation, or limited liability company if a partner, managing agent, manager,
1079 officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
1080 of the corporation, or member who owns at least 20% of the limited liability company is or
1081 was:
1082 (A) a partner or managing agent of a partnership that had any type of agency, license,
1083 or permit issued under this title revoked within the last three years;
1084 (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
1085 of the total issued and outstanding stock of any corporation that had any type of agency,
1086 license, or permit issued under this title revoked within the last three years; or
1087 (C) a manager or member who owns or owned at least 20% of a limited liability
1088 company that had any type of agency, license, or permit issued under this title revoked within
1089 the last three years.
1090 (b) The commission may not issue a package agency, licence, or permit to a
1091 partnership, corporation, or limited liability company if any of the following had any type of
1092 agency, license, or permit issued under this title revoked while acting in that person's individual
1093 capacity within the last three years:
1094 (i) a partner or managing agent of a partnership;
1095 (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
1096 total issued and outstanding stock of a corporation; or
1097 (iii) a manager or member who owns at least 20% of a limited liability company.
1098 (c) The commission may not issue a package agency, license, or permit to a person
1099 acting in an individual capacity if that person was:
1100 (i) a partner or managing agent of a partnership that had any type of agency, license, or
1101 permit issued under this title revoked within the last three years;
1102 (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
1103 total issued and outstanding stock of a corporation that had any type of agency, license, or
1104 permit issued under this title revoked within the last three years; or
1105 (iii) a manager or member who owned at least 20% of the limited liability company
1106 that had any type of agency, license, or permit issued under this title revoked within the last
1107 three years.
1108 (5) (a) The commission may not issue a package agency, license, or permit to a minor.
1109 (b) The commission may not issue a package agency, license, or permit to a
1110 partnership, corporation, or limited liability company if any of the following is a minor:
1111 (i) a partner or managing agent of the partnership;
1112 (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
1113 total issued and outstanding stock of the corporation; or
1114 (iii) a manager or member who owns at least 20% of the limited liability company.
1115 (6) [
1116 permittee no longer possesses the qualifications required by this title for obtaining a package
1117 agency, license, or permit, the commission may terminate the package agency agreement, or
1118 revoke the license or permit.
1119 (7) If the licensee is a resort licensee:
1120 (a) Subsection (1)(a) only applies if an individual listed in Subsection (1)(b) engages in
1121 the management of the resort, as the commission defines in rule; and
1122 (b) Subsection (1)(c) only applies to an individual employed to act in a supervisory or
1123 managerial capacity for the resort licensee or in relation to a sublicense of the resort license.
1124 Section 6. Section 32B-1-305 is amended to read:
1125 32B-1-305. Requirement for a background check.
1126 (1) The department shall require an individual listed in Subsection (2), in accordance
1127 with this part, to:
1128 (a) provide a signed waiver from the individual whose fingerprints may be registered in
1129 the Federal Bureau of Investigation Rap Back system that notifies the signee:
1130 (i) that a criminal history background check will be conducted;
1131 (ii) who will see the information; and
1132 (iii) how the information will be used;
1133 (b) submit to a background check in a form acceptable to the department; and
1134 (c) consent to a background check by:
1135 (i) the Utah Bureau of Criminal Identification; and
1136 (ii) the Federal Bureau of Investigation.
1137 (2) The following shall comply with Subsection (1):
1138 (a) an individual applying for employment with the department if:
1139 (i) the department makes the decision to offer the individual employment with the
1140 department; and
1141 (ii) once employed, the individual will receive benefits;
1142 (b) an individual applying to the commission to operate a package agency;
1143 (c) an individual applying to the commission for a license, unless the license is an
1144 off-premise beer retailer state license;
1145 (d) an individual who with regard to an entity that is applying to the commission to
1146 operate a package agency or for a license is:
1147 (i) a partner;
1148 (ii) a managing agent;
1149 (iii) a manager;
1150 (iv) an officer;
1151 (v) a director;
1152 (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of a
1153 corporation;
1154 (vii) a member who owns at least 20% of a limited liability company; or
1155 (viii) an individual employed to act in a supervisory or managerial capacity; or
1156 (e) an individual who becomes involved with an entity that operates a package agency
1157 or holds a license, if the individual is in a capacity listed in Subsection (2)(d) on or after the day
1158 on which the entity:
1159 (i) is approved to operate a package agency; or
1160 (ii) is licensed by the commission.
1161 (3) (a) Except as provided in Subsection (3)(b), the commission may not require an
1162 individual to comply with Subsection (1) based on the individual's position with or ownership
1163 interest in an entity that has an ownership interest in the entity that is applying for the package
1164 agency or license.
1165 (b) The commission may require an individual described in Subsection (3)(a) to
1166 comply with Subsection (1) if the individual exercises direct decision making control over the
1167 day-to-day operations of the package agency or licensee.
1168 (4) The department shall require compliance with Subsection (2)(e) as a condition of
1169 an entity's:
1170 (a) continued operation of a package agency; or
1171 (b) renewal of a license.
1172 (5) The department may require as a condition of continued employment that a
1173 department employee:
1174 (a) submit to a background check in a form acceptable to the department; and
1175 (b) consent to a fingerprint criminal background check by:
1176 (i) the Utah Bureau of Criminal Identification; and
1177 (ii) the Federal Bureau of Investigation.
1178 Section 7. Section 32B-1-607 is amended to read:
1179 32B-1-607. Rulemaking authority.
1180 (1) The commission may adopt rules necessary to implement this part.
1181 (2) Notwithstanding Subsections 32B-1-102[
1182 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make
1183 rules that allow for a tolerance in the alcohol content of beer or heavy beer as follows:
1184 (a) up to 0.18% above or below when measured by volume; or
1185 (b) up to 0.15% above or below when measured by weight.
1186 Section 8. Section 32B-2-202 is amended to read:
1187 32B-2-202. Powers and duties of the commission.
1188 (1) The commission shall:
1189 (a) consistent with the policy established by the Legislature by statute, act as a general
1190 policymaking body on the subject of alcoholic product control;
1191 (b) adopt and issue policies, rules, and procedures;
1192 (c) set policy by written rules that establish criteria and procedures for:
1193 (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
1194 permit, or certificate of approval; and
1195 (ii) determining the location of a state store, package agency, or retail licensee;
1196 (d) decide within the limits, and under the conditions imposed by this title, the number
1197 and location of state stores, package agencies, and retail licensees in the state;
1198 (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
1199 sublicenses, permits, or certificates of approval for the purchase, storage, sale, offer for sale,
1200 furnishing, consumption, manufacture, and distribution of an alcoholic product:
1201 (i) a package agency;
1202 (ii) a full-service restaurant license;
1203 (iii) a master full-service restaurant license;
1204 (iv) a limited-service restaurant license;
1205 (v) a master limited-service restaurant license;
1206 (vi) a bar establishment license;
1207 (vii) an airport lounge license;
1208 (viii) an on-premise banquet license;
1209 (ix) a resort license, [
1210 [
1211 (x) an on-premise beer retailer license;
1212 (xi) a reception center license;
1213 (xii) a beer-only restaurant license;
1214 (xiii) a hotel license, [
1215 [
1216 (xiv) an arena license, which includes three or more sublicenses;
1217 (xv) a hospitality amenity license;
1218 [
1219 [
1220 [
1221 [
1222 [
1223 [
1224 [
1225 [
1226 [
1227 [
1228 (A) an out-of-state brewer;
1229 (B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and
1230 (C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; and
1231 (xxvi) a resort spa sublicense;
1232 (f) issue, deny, suspend, or revoke the following conditional licenses:
1233 (i) a conditional retail license as defined in Section 32B-5-205; and
1234 (ii) a conditional off-premise beer retailer state license as defined in Section
1235 32B-7-406;
1236 (g) prescribe the duties of the department in assisting the commission in issuing a
1237 package agency, license, permit, or certificate of approval under this title;
1238 (h) to the extent a fee is not specified in this title, establish a fee allowed under this title
1239 in accordance with Section 63J-1-504;
1240 (i) fix prices at which liquor is sold that are the same at all state stores, package
1241 agencies, and retail licensees;
1242 (j) issue and distribute price lists showing the price to be paid by a purchaser for each
1243 class, variety, or brand of liquor kept for sale by the department;
1244 (k) (i) require the director to follow sound management principles; and
1245 (ii) require periodic reporting from the director to ensure that:
1246 (A) sound management principles are being followed; and
1247 (B) policies established by the commission are being observed;
1248 (l) (i) receive, consider, and act in a timely manner upon the reports, recommendations,
1249 and matters submitted by the director to the commission; and
1250 (ii) do the things necessary to support the department in properly performing the
1251 department's duties;
1252 (m) obtain temporarily and for special purposes the services of an expert or person
1253 engaged in the practice of a profession, or a person who possesses a needed skill if:
1254 (i) considered expedient; and
1255 (ii) approved by the governor;
1256 (n) prescribe by rule the conduct, management, and equipment of premises upon which
1257 an alcoholic product may be stored, sold, offered for sale, furnished, or consumed;
1258 (o) make rules governing the credit terms of beer sales within the state to retail
1259 licensees; and
1260 (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
1261 disciplinary action against a person subject to administrative action.
1262 (2) Consistent with the policy established by the Legislature by statute, the power of
1263 the commission to do the following is plenary, except as otherwise provided by this title, and
1264 not subject to review:
1265 (a) establish a state store;
1266 (b) issue authority to act as a package agent or operate a package agency; and
1267 (c) issue [
1268 (3) If the commission is authorized or required to make a rule under this title, the
1269 commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
1270 Rulemaking Act.
1271 (4) Notwithstanding Subsections [
1272 director or deputy director may issue an event permit in accordance with Chapter 9, Event
1273 Permit Act.
1274 Section 9. Section 32B-2-605 is amended to read:
1275 32B-2-605. Operational requirements for package agency.
1276 (1) (a) A person may not operate a package agency until a package agency agreement is
1277 entered into by the package agent and the department.
1278 (b) A package agency agreement shall state the conditions of operation by which the
1279 package agent and the department are bound.
1280 (c) (i) If a package agent or staff of the package agent violates this title, rules under this
1281 title, or the package agency agreement, the department may take any action against the package
1282 agent that is allowed by the package agency agreement.
1283 (ii) An action against a package agent is governed solely by its package agency
1284 agreement and may include suspension or revocation of the package agency.
1285 (iii) A package agency agreement shall provide procedures to be followed if a package
1286 agent fails to pay money owed to the department including a procedure for replacing the
1287 package agent or operator of the package agency.
1288 (iv) A package agency agreement shall provide that the package agency is subject to
1289 covert investigations for selling an alcoholic product to a minor.
1290 (v) Notwithstanding that this part refers to "package agency" or "package agent," staff
1291 of the package agency or package agent is subject to the same requirement or prohibition.
1292 (2) (a) A package agency shall be operated by an individual who is either:
1293 (i) the package agent; or
1294 (ii) an individual designated by the package agent.
1295 (b) An individual who is a designee under this Subsection (2) shall be:
1296 (i) an employee of the package agent; and
1297 (ii) responsible for the operation of the package agency.
1298 (c) The conduct of the designee is attributable to the package agent.
1299 (d) A package agent shall submit the name of the person operating the package agency
1300 to the department for the department's approval.
1301 (e) A package agent shall state the name and title of a designee on the application for a
1302 package agency.
1303 (f) A package agent shall:
1304 (i) inform the department of a proposed change in the individual designated to operate
1305 a package agency; and
1306 (ii) receive prior approval from the department before implementing the change
1307 described in this Subsection (2)(f).
1308 (g) Failure to comply with the requirements of this Subsection (2) may result in the
1309 immediate termination of a package agency agreement.
1310 (3) (a) A package agent shall display in a prominent place in the package agency the
1311 record issued by the commission that designates the package agency.
1312 (b) A package agent that displays or stores liquor at a location visible to the public
1313 shall display in a prominent place in the package agency a sign in large letters that consists of
1314 text in the following order:
1315 (i) a header that reads: "WARNING";
1316 (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
1317 can cause birth defects and permanent brain damage for the child.";
1318 (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
1319 [insert most current toll-free number] with questions or for more information.";
1320 (iv) a header that reads: "WARNING"; and
1321 (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
1322 serious crime that is prosecuted aggressively in Utah."
1323 (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
1324 font style than the text described in Subsections (3)(b)(iv) and (v).
1325 (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
1326 same font size.
1327 (d) The Department of Health shall work with the commission and department to
1328 facilitate consistency in the format of a sign required under this section.
1329 (4) A package agency may not display liquor or a price list in a window or showcase
1330 that is visible to passersby.
1331 (5) (a) A package agency may not purchase liquor from a person except from the
1332 department.
1333 (b) At the discretion of the department, the department may provide liquor [
1334
1335 (6) A package agency may not store, sell, offer for sale, or furnish liquor in a place
1336 other than as designated in the package agent's application, unless the package agent first
1337 applies for and receives approval from the department for a change of location within the
1338 package agency premises.
1339 (7) (a) [
1340 offer for sale, or furnish liquor except at a price fixed by the commission.
1341 (b) A package agency may provide as room service one alcoholic product free of
1342 charge per guest reservation, per guest room, if;
1343 (i) the package agency is the type of package agency that authorizes the package
1344 agency to sell, offer for sale, or furnish an alcoholic product as part of room service;
1345 (ii) staff of the package agency provides the alcoholic product:
1346 (A) in person; and
1347 (B) only to an adult guest in the guest room;
1348 (iii) staff of the package agency does not leave the alcoholic product outside a guest
1349 room for retrieval by a guest; and
1350 (iv) the alcoholic product:
1351 (A) is not a spirituous liquor; and
1352 (B) is in an unopened container not to exceed 750 milliliters.
1353 (8) A package agency may not sell, offer for sale, or furnish liquor to:
1354 (a) a minor;
1355 (b) a person actually, apparently, or obviously intoxicated;
1356 (c) a known interdicted person; or
1357 (d) a known habitual drunkard.
1358 (9) (a) A package agency may not employ a minor to handle liquor.
1359 (b) (i) Staff of a package agency may not:
1360 (A) consume an alcoholic product on the premises of a package agency; or
1361 (B) allow any person to consume an alcoholic product on the premises of a package
1362 agency.
1363 (ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
1364 (10) (a) A package agency may not close or cease operation for a period longer than 72
1365 hours, unless:
1366 (i) the package agency notifies the department in writing at least seven days before the
1367 [
1368 (ii) the closure or cessation of operation is first approved by the department.
1369 (b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package
1370 agency shall immediately notify the department by telephone.
1371 (c) (i) The department may authorize a closure or cessation of operation for a period
1372 not to exceed 60 days.
1373 (ii) The department may extend the initial period described in Subsection (10)(c)(i) an
1374 additional 30 days upon written request of the package agency and upon a showing of good
1375 cause.
1376 (iii) A closure or cessation of operation may not exceed a total of 90 days without
1377 commission approval.
1378 (d) The notice required by Subsection (10)(a) shall include:
1379 (i) the dates of closure or cessation of operation;
1380 (ii) the reason for the closure or cessation of operation; and
1381 (iii) the date on which the package agency will reopen or resume operation.
1382 (e) Failure of a package agency to provide notice and to obtain department
1383 authorization before closure or cessation of operation results in an automatic termination of the
1384 package agency agreement effective immediately.
1385 (f) Failure of a package agency to reopen or resume operation by the approved date
1386 results in an automatic termination of the package agency agreement effective on that date.
1387 (11) A package agency may not transfer [
1388 location to another location without prior written approval of the commission.
1389 (12) (a) A person, having been issued a package agency, may not sell, transfer, assign,
1390 exchange, barter, give, or attempt in any way to dispose of the package agency to another
1391 person, whether for monetary gain or not.
1392 (b) A package agency has no monetary value for any type of disposition.
1393 (13) (a) Subject to the other provisions of this Subsection (13):
1394 (i) sale or delivery of liquor may not be made on or from the premises of a package
1395 agency, and a package agency may not be kept open for the sale of liquor:
1396 (A) on Sunday; or
1397 (B) on a state or federal legal holiday.
1398 (ii) Sale or delivery of liquor may be made on or from the premises of a package
1399 agency, and a package agency may be open for the sale of liquor, only on a day and during
1400 hours that the commission directs by rule or order.
1401 (b) A package agency located at a manufacturing facility is not subject to Subsection
1402 (13)(a) if:
1403 (i) the package agency is located at a manufacturing facility licensed in accordance
1404 with Chapter 11, Manufacturing and Related Licenses Act;
1405 (ii) the manufacturing facility licensed in accordance with Chapter 11, Manufacturing
1406 and Related Licenses Act, holds:
1407 (A) a full-service restaurant license;
1408 (B) a limited-service restaurant license;
1409 (C) a beer-only restaurant license;
1410 (D) a dining club license; or
1411 (E) a bar license;
1412 (iii) the restaurant, dining club, or bar is located at the manufacturing facility;
1413 (iv) the restaurant, dining club, or bar sells an alcoholic product produced at the
1414 manufacturing facility;
1415 (v) the manufacturing facility:
1416 (A) owns the restaurant, dining club, or bar; or
1417 (B) operates the restaurant, dining club, or bar;
1418 (vi) the package agency only sells an alcoholic product produced at the manufacturing
1419 facility; and
1420 (vii) the package agency's days and hours of sale are the same as the days and hours of
1421 sale at the restaurant, dining club, or bar.
1422 (c) (i) Subsection (13)(a) does not apply to a package agency held by the following if
1423 the package agent that holds the package agency to sell liquor at a resort or hotel does not sell
1424 liquor in a manner similar to a state store:
1425 (A) a resort licensee; or
1426 (B) a hotel licensee.
1427 (ii) The commission may by rule define what constitutes a package agency that sells
1428 liquor "in a manner similar to a state store."
1429 (14) (a) Except to the extent authorized by commission rule, a minor may not be
1430 admitted into, or be on the premises of, a package agency unless accompanied by a person who
1431 is:
1432 (i) 21 years of age or older; and
1433 (ii) the minor's parent, legal guardian, or spouse.
1434 (b) A package agent or staff of a package agency that has reason to believe that a
1435 person who is on the premises of a package agency is under the age of 21 and is not
1436 accompanied by a person described in Subsection (14)(a) may:
1437 (i) ask the suspected minor for proof of age;
1438 (ii) ask the person who accompanies the suspected minor for proof of age; and
1439 (iii) ask the suspected minor or the person who accompanies the suspected minor for
1440 proof of parental, guardianship, or spousal relationship.
1441 (c) A package agent or staff of a package agency shall refuse to sell liquor to the
1442 suspected minor and to the person who accompanies the suspected minor into the package
1443 agency if the minor or person fails to provide any information specified in Subsection (14)(b).
1444 (d) A package agent or staff of a package agency shall require the suspected minor and
1445 the person who accompanies the suspected minor into the package agency to immediately leave
1446 the premises of the package agency if the minor or person fails to provide information specified
1447 in Subsection (14)(b).
1448 (15) (a) A package agency shall sell, offer for sale, or furnish liquor in a sealed
1449 container.
1450 (b) A person may not open a sealed container on the premises of a package agency.
1451 (c) Notwithstanding Subsection (15)(a), a package agency may sell, offer for sale, or
1452 furnish liquor in other than a sealed container:
1453 (i) if the package agency is the type of package agency that authorizes the package
1454 agency to sell, offer for sale, or furnish the liquor as part of room service;
1455 (ii) if the liquor is sold, offered for sale, or furnished as part of room service; and
1456 (iii) subject to:
1457 (A) staff of the package agency providing the liquor in person only to an adult guest in
1458 the guest room;
1459 (B) staff of the package agency not leaving the liquor outside a guest room for retrieval
1460 by a guest; and
1461 (C) the same limits on the portions in which an alcoholic product may be sold by a
1462 retail licensee under Section 32B-5-304.
1463 (16) On or after October 1, 2011, a package agency may not sell, offer for sale, or
1464 furnish heavy beer in a sealed container that exceeds two liters.
1465 (17) The department may pay or otherwise remunerate a package agent on any basis,
1466 including sales or volume of business done by the package agency.
1467 (18) The commission may prescribe by policy or rule general operational requirements
1468 of a package agency that are consistent with this title and relate to:
1469 (a) physical facilities;
1470 (b) conditions of operation;
1471 (c) hours of operation;
1472 (d) inventory levels;
1473 (e) payment schedules;
1474 (f) methods of payment;
1475 (g) premises security; and
1476 (h) any other matter considered appropriate by the commission.
1477 (19) A package agency may not maintain a minibar.
1478 Section 10. Section 32B-3-202 is amended to read:
1479 32B-3-202. Timing of reporting violations.
1480 [
1481 [
1482
1483
1484
1485 [
1486
1487
1488
1489 [
1490
1491
1492
1493 [
1494
1495 [
1496
1497 [
1498
1499
1500
1501 [
1502
1503 [
1504
1505 (1) The department or the commission may not take administrative action against a
1506 person subject to administrative action before:
1507 (a) a nondepartment enforcement agency or enforcement officer or a department
1508 compliance officer submits to the department a report:
1509 (i) containing facts that could support a finding that the person subject to
1510 administrative action violated this title or a commission rule; and
1511 (ii) no more than eight business days after the day on which the nondepartment
1512 enforcement agency or officer or the compliance officer completes the investigation containing
1513 the facts described in Subsection (1)(a)(i); and
1514 (b) subject to Subsection (5), the department notifies the person subject to
1515 administrative action, no more than eight business days after the day on which the department
1516 receives the report described in Subsection (1)(a), that the commission or department:
1517 (i) received the report described in Subsection (1)(a); and
1518 (ii) may initiate or maintain a disciplinary proceeding on the basis, in whole or in part,
1519 on the facts contained in the report described in Subsection (1)(a).
1520 [
1521 [
1522 (b) The department may provide the written notification described in Subsection [
1523 (2)(a) [
1524 [
1525 this section that includes:
1526 (a) the name of the person notified; [
1527 (b) the date of the notification[
1528 (c) the type of notification given.
1529 (4) (a) The department may issue an order to show cause if the department receives a
1530 report described in Subsection (1)(a), containing facts that could support a finding that the
1531 person subject to administrative action violated:
1532 (i) this title regarding necessary licensing requirements; or
1533 (ii) a commission rule regarding necessary licensing requirements.
1534 (b) A necessary licensing requirement described in Subsection (4)(a) includes:
1535 (i) maintaining an approved, licensed premise;
1536 (ii) maintaining insurance;
1537 (iii) maintaining a bond;
1538 (iv) following the requirements in Section 32B-1-304, regarding qualifications;
1539 (v) maintaining required store hours;
1540 (vi) failing to utilize the license issued; or
1541 (vii) transferring a license in violation of Chapter 8a, Transfer of Applicable License
1542 Act.
1543 (c) The department's issuance of an order to show cause in accordance with this
1544 Subsection (4):
1545 (i) does not initiate a disciplinary proceeding; and
1546 (ii) is not subject to Title 63G, Chapter 4, Administrative Procedures Act.
1547 (5) The department is not required to provide notice as described in Subsection (1)(b)
1548 if the person subject to administrative action is staff.
1549 Section 11. Section 32B-3-204 is amended to read:
1550 32B-3-204. Disciplinary proceeding procedure.
1551 (1) (a) Subject to Section 32B-3-202, the following may conduct an adjudicative
1552 proceeding to inquire into a matter necessary and proper for the administration of this title and
1553 rules adopted under this title:
1554 (i) the commission;
1555 (ii) a hearing examiner appointed by the commission to conduct a suspension,
1556 non-renewal, or revocation hearing required by law;
1557 (iii) the director; and
1558 (iv) the department.
1559 (b) Except as provided in this section or Section 32B-2-605, a person described in
1560 Subsection (1)(a) shall comply with Title 63G, Chapter 4, Administrative Procedures Act, in an
1561 adjudicative proceeding.
1562 (c) Except when otherwise provided by law, an adjudicative proceeding before the
1563 commission or a hearing examiner appointed by the commission shall be:
1564 (i) video or audio recorded; and
1565 (ii) subject to Subsection (3)(b), conducted in accordance with Title 52, Chapter 4,
1566 Open and Public Meetings Act.
1567 (d) A person listed in Subsection (1)(a) shall conduct an adjudicative proceeding
1568 concerning departmental personnel in accordance with Title 67, Chapter 19, Utah State
1569 Personnel Management Act.
1570 (e) A hearing that is informational, fact gathering, and nonadversarial in nature shall be
1571 conducted in accordance with rules, policies, and procedures made by the commission,
1572 director, or department.
1573 (2) (a) Subject to Section 32B-3-202, a disciplinary proceeding shall be conducted
1574 under the authority of the commission, which is responsible for rendering a final decision and
1575 order on a disciplinary matter.
1576 (b) (i) The commission may appoint a necessary officer, including a hearing examiner,
1577 from within or without the department, to administer the disciplinary proceeding process.
1578 (ii) A hearing examiner appointed by the commission:
1579 (A) may conduct a disciplinary proceeding hearing on behalf of the commission; and
1580 (B) shall submit to the commission a report including:
1581 (I) findings of fact determined on the basis of a preponderance of the evidence
1582 presented at the hearing;
1583 (II) conclusions of law; and
1584 (III) recommendations.
1585 (iii) A report of a hearing examiner under this Subsection (2)(b) may not recommend a
1586 penalty more severe than that initially sought by the department in the notice of agency action.
1587 (iv) A copy of a hearing examiner report under this Subsection (2)(b) shall be served
1588 upon the respective parties.
1589 (v) Before final commission action, the commission shall give a respondent and the
1590 department reasonable opportunity to file a written objection to a hearing examiner report.
1591 (3) (a) The commission or an appointed hearing examiner shall preside over a
1592 disciplinary proceeding hearing.
1593 (b) A disciplinary proceeding hearing may be closed only after the commission or
1594 hearing examiner makes a written finding that the public interest in an open hearing is clearly
1595 outweighed by factors enumerated in the closure order.
1596 (c) (i) The commission or [
1597 proceeding hearing may:
1598 (A) administer an oath or affirmation;
1599 (B) take evidence, including evidence provided in relation to an order to show cause
1600 the department issued in accordance with Section 32B-3-202;
1601 (C) take a deposition within or without this state; and
1602 (D) require by subpoena from a place within this state:
1603 (I) the testimony of a person at a hearing; and
1604 (II) the production of a record or other evidence considered relevant to the inquiry.
1605 (ii) A person subpoenaed in accordance with this Subsection (3)(c) shall testify and
1606 produce a record or tangible thing as required in the subpoena.
1607 (iii) A witness subpoenaed, called to testify, or called to produce evidence who claims
1608 a privilege against self-incrimination may not be compelled to testify, but the commission or
1609 the hearing examiner shall file a written report with the county attorney or district attorney in
1610 the jurisdiction where the privilege is claimed or where the witness resides setting forth the
1611 circumstance of the claimed privilege.
1612 (iv) (A) A person is not excused from obeying a subpoena without just cause.
1613 (B) A district court within the judicial district in which a person alleged to be guilty of
1614 willful contempt of court or refusal to obey a subpoena is found or resides, upon application by
1615 the party issuing the subpoena, may issue an order requiring the person to:
1616 (I) appear before the issuing party; and
1617 (II) (Aa) produce documentary evidence if so ordered; or
1618 (Bb) give evidence regarding the matter in question.
1619 (C) Failure to obey an order of the court may be punished by the court as contempt.
1620 (d) In a case heard by the commission, the commission shall issue its final decision and
1621 order in accordance with Subsection (2).
1622 (4) (a) The commission shall:
1623 (i) render a final decision and order on a disciplinary action; and
1624 (ii) cause its final order to be prepared in writing, issued, and served on all parties.
1625 (b) An order of the commission is final on the date the order is issued.
1626 (c) The commission, after the commission renders its final decision and order, may
1627 require the director to prepare, issue, and cause to be served on the parties the final written
1628 order on behalf of the commission.
1629 (5) (a) If a respondent requests a disciplinary proceeding hearing, the hearing held by
1630 the commission or a hearing examiner appointed by the commission shall proceed formally in
1631 accordance with Sections 63G-4-204 through 63G-4-209 if:
1632 (i) the alleged violation poses, or potentially poses, a grave risk to public safety, health,
1633 and welfare;
1634 (ii) the alleged violation involves:
1635 (A) selling or furnishing an alcoholic product to a minor;
1636 (B) attire, conduct, or entertainment prohibited by Chapter 1, Part 5, Attire, Conduct,
1637 and Entertainment Act;
1638 (C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf
1639 of the respondent;
1640 (D) interfering or refusing to cooperate with:
1641 (I) an authorized official of the department or the state in the discharge of the official's
1642 duties in relation to the enforcement of this title; or
1643 (II) a peace officer in the discharge of the peace officer's duties in relation to the
1644 enforcement of this title;
1645 (E) an unlawful trade practice under Chapter 4, Part 7, Trade Practices Act;
1646 (F) unlawful importation of an alcoholic product; or
1647 (G) unlawful supply of liquor by a liquor industry member, as defined in Section
1648 32B-4-702, to a person other than the department or a military installation, except to the extent
1649 permitted by this title; or
1650 (iii) the department determines to seek in a disciplinary proceeding hearing:
1651 (A) an administrative fine exceeding $3,000;
1652 (B) a suspension of a license, permit, or certificate of approval of more than 10 days; or
1653 (C) a revocation of a license, permit, or certificate of approval.
1654 (b) If a respondent does not request a disciplinary proceeding hearing, a hearing shall
1655 proceed informally unless it is designated as a formal proceeding pursuant to rules adopted by
1656 the commission in accordance with Subsection (5)(c).
1657 (c) The commission shall make rules to provide a procedure to implement this
1658 Subsection (5).
1659 (6) (a) If the department recommends nonrenewal of a license, the department shall
1660 notify the licensee of the recommendation at least 15 days before the commission takes action
1661 on the nonrenewal.
1662 (b) Notwithstanding Subsection (2), the commission shall appoint a hearing examiner
1663 to conduct an adjudicative hearing in accordance with this section if the licensee files a request
1664 for a hearing within 10 days of receipt of the notice under Subsection (6)(a).
1665 Section 12. Section 32B-4-415 is amended to read:
1666 32B-4-415. Unlawful bringing onto premises for consumption.
1667 (1) Except as provided in Subsection (4) and [
1668 32B-5-307, a person may not bring an alcoholic product for on-premise consumption onto the
1669 premises of:
1670 (a) a retail licensee or person required to be licensed under this title as a retail licensee;
1671 (b) an establishment that conducts a business similar to a retail licensee;
1672 (c) an event where an alcoholic product is sold, offered for sale, or furnished under a
1673 single event permit or temporary beer event permit issued under this title;
1674 (d) an establishment open to the general public; or
1675 (e) the capitol hill complex.
1676 (2) Except as provided in Subsection (4) and [
1677 32B-5-307, the following may not allow a person to bring onto its premises an alcoholic
1678 product for on-premise consumption or allow consumption of an alcoholic product brought
1679 onto its premises in violation of this section:
1680 (a) a retail licensee or a person required to be licensed under this title as a retail
1681 licensee;
1682 (b) an establishment that conducts a business similar to a retail licensee;
1683 (c) a single event permittee or temporary beer event permittee;
1684 (d) an establishment open to the general public;
1685 (e) the State Capitol Preservation Board created in Section 63C-9-201; or
1686 (f) staff of a person listed in Subsections (2)(a) through (e).
1687 (3) Except as provided in Subsection (4)(c)(i)(A), a person may not consume an
1688 alcoholic product in a limousine or chartered bus if the limousine or chartered bus drops off a
1689 passenger at:
1690 (a) a location from which the passenger departs in a private vehicle; or
1691 (b) the capitol hill complex.
1692 (4) (a) A person may bring bottled wine onto the premises of the following and
1693 consume the wine pursuant to Section 32B-5-307:
1694 (i) a full-service restaurant licensee;
1695 (ii) a limited restaurant licensee;
1696 (iii) a bar establishment licensee; or
1697 (iv) a person operating under a resort spa sublicense.
1698 (b) A passenger of a limousine may bring onto, possess, and consume an alcoholic
1699 product in the limousine if:
1700 (i) the travel of the limousine begins and ends at:
1701 (A) the residence of the passenger;
1702 (B) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
1703 (C) the temporary domicile of the passenger;
1704 (ii) the driver of the limousine is separated from the passengers by partition or other
1705 means approved by the department; and
1706 (iii) the limousine is not located on the capitol hill complex.
1707 (c) A passenger of a chartered bus may bring onto, possess, and consume an alcoholic
1708 product on the chartered bus:
1709 (i) (A) but may consume only during travel to a specified destination of the chartered
1710 bus and not during travel back to the place where the travel begins; or
1711 (B) if the travel of the chartered bus begins and ends at:
1712 (I) the residence of the passenger;
1713 (II) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
1714 (III) the temporary domicile of the passenger;
1715 (ii) if the chartered bus has a nondrinking designee other than the driver traveling on
1716 the chartered bus to monitor consumption; and
1717 (iii) if the chartered bus is not located on the capitol hill complex.
1718 (5) A person may bring onto any premises, possess, and consume an alcoholic product
1719 at a private event.
1720 (6) Notwithstanding Subsection (5), private and public facilities may prohibit the
1721 possession or consumption of alcohol on their premises.
1722 (7) The restrictions of Subsections (2) and (3) apply to a resort licensee or hotel
1723 licensee or person operating under a sublicense in relationship to:
1724 (a) the boundary of a resort building, as defined in Section 32B-8-102, or the boundary
1725 of a hotel, as defined in Section 32B-8b-102, in an area that is open to the public; or
1726 (b) except as provided in Subsection (4), [
1727 Section 13. Section 32B-4-422 is amended to read:
1728 32B-4-422. Unlawful dispensing.
1729 [
1730 [
1731 [
1732
1733 [
1734 spirituous liquor for consumption on the licensed premises, or staff of the retail licensee may
1735 not:
1736 (a) sell, offer for sale, or furnish a primary spirituous liquor to a person on the licensed
1737 premises except in a quantity that does not exceed 1.5 ounces per beverage dispensed through a
1738 calibrated metered dispensing system approved by the department;
1739 (b) sell, offer for sale, or furnish more than a total of 2.5 ounces of spirituous liquor per
1740 beverage;
1741 (c) allow a person on the licensed premises to have more than a total of 2.5 ounces of
1742 spirituous liquor at a time; or
1743 (d) (i) except as provided in Subsection [
1744 than two spirituous liquor beverages at a time; or
1745 (ii) allow a person on the premises of the following to have more than one spirituous
1746 liquor beverage at a time:
1747 (A) a full-service restaurant licensee;
1748 (B) a person operating under a full-service restaurant sublicense;
1749 (C) an on-premise banquet licensee;
1750 (D) a person operating under an on-premise banquet sublicense; or
1751 (E) a single event permittee.
1752 [
1753 Section 14. Section 32B-5-201 is amended to read:
1754 32B-5-201. Application requirements for retail license.
1755 (1) (a) Before a person may store, sell, offer for sale, furnish, or permit consumption of
1756 an alcoholic product on licensed premises as a retail licensee, the person shall first obtain a
1757 retail license issued by the commission, notwithstanding whether the person holds a local
1758 license or a permit issued by a local authority.
1759 (b) Violation of this Subsection (1) is a class B misdemeanor.
1760 (2) To obtain a retail license under this title, a person shall submit to the department:
1761 (a) a written application in a form prescribed by the department;
1762 (b) a nonrefundable application fee in the amount specified in the relevant [
1763
1764 the person is applying;
1765 (c) an initial license fee:
1766 (i) in the amount specified in the relevant [
1767
1768 (ii) that is refundable if a retail license is not issued;
1769 (d) written consent of the local authority, including, if applicable, consent for each
1770 proposed sublicense;
1771 (e) a copy of:
1772 (i) the person's current business license; and
1773 (ii) if the person is applying for a principal license, the current business license for each
1774 proposed sublicense, except if the relevant political subdivision determines that the business
1775 license for a proposed sublicense is included in the person's current business license;
1776 (f) evidence of the proposed retail licensee's proximity to any community location, with
1777 proximity requirements being governed by Section 32B-1-202;
1778 (g) a bond as specified by Section 32B-5-204;
1779 (h) a floor plan, and boundary map where applicable, of the premises of the retail
1780 license and each, if any, accompanying sublicense, including any:
1781 (i) consumption area; and
1782 (ii) area where the person proposes to store, sell, offer for sale, or furnish an alcoholic
1783 beverage;
1784 (i) evidence that the retail licensee [
1785 amount and form satisfactory to the department;
1786 (j) evidence that the retail licensee [
1787 at least:
1788 (i) $1,000,000 per occurrence and $2,000,000 in the aggregate;
1789 (ii) if the retail licensee is a hotel licensee or a resort licensee, $1,000,000 per
1790 occurrence and $2,000,000 in the aggregate to cover both the principal license and all
1791 accompanying sublicenses; or
1792 (iii) if the retail licensee is an arena licensee, $10,000,000 per occurrence and
1793 $20,000,000 in the aggregate to cover both the arena license and all accompanying sublicenses.
1794 (k) a signed consent form stating that the retail licensee will permit any authorized
1795 representative of the commission, department, or any law enforcement officer to have
1796 unrestricted right to enter:
1797 (i) the premises of the retail licensee; and
1798 (ii) if applicable, the premises of each of the retail licensee's accompanying
1799 sublicenses;
1800 (l) if the person is an entity, proper verification evidencing that a person who signs the
1801 application is authorized to sign on behalf of the entity;
1802 (m) a responsible alcohol service plan; and
1803 (n) any other information the commission or department may require.
1804 (3) The commission may not issue a retail license to a person who:
1805 (a) is disqualified under Section 32B-1-304; or
1806 (b) is not lawfully present in the United States.
1807 (4) Unless otherwise provided in the relevant [
1808
1809 commission may not issue a retail license to a person if the proposed licensed premises does
1810 not meet the proximity requirements of Section 32B-1-202.
1811 Section 15. Section 32B-5-202 is amended to read:
1812 32B-5-202. Renewal requirements.
1813 (1) A retail license expires each year on the day specified in the relevant [
1814
1815 (2) (a) To renew a person's retail license, a retail licensee shall, by no later than the day
1816 specified in the relevant [
1817 the type of retail license that [
1818 (i) a completed renewal application in a form prescribed by the department; and
1819 (ii) a renewal fee in the amount specified in the relevant [
1820
1821 person seeks to renew.
1822 (b) A retail licensee shall submit a responsible alcohol service plan as part of the retail
1823 licensee's renewal application if, since the retail licensee's most recent application or renewal,
1824 the retail licensee:
1825 (i) made substantial changes to the retail licensee's responsible alcohol service plan; or
1826 (ii) violated a provision of this chapter.
1827 (c) The department may audit a retail licensee's responsible alcohol service plan.
1828 (3) Failure to meet the renewal requirements results in an automatic forfeiture of the
1829 retail license effective on the [
1830 Section 16. Section 32B-5-203 is amended to read:
1831 32B-5-203. Commission and department duties before issuing a retail license.
1832 (1) (a) Before the commission may issue a retail license, the department shall conduct
1833 an investigation and may hold public hearings to gather information and make
1834 recommendations to the commission as to whether a retail license and, if applicable, each
1835 accompanying sublicense should be issued.
1836 (b) The department shall forward the information and recommendations described in
1837 Subsection (1)(a) to the commission to aid in the commission's determination.
1838 (2) Before issuing a retail license, the commission shall:
1839 (a) determine that the person filed a complete application and is in compliance with:
1840 (i) Section 32B-5-201; and
1841 (ii) the specific licensing requirements specified in the relevant [
1842
1843 applying;
1844 (b) determine that the person and, if applicable, each of the person's accompanying
1845 sublicenses is not disqualified under Section 32B-1-304;
1846 (c) consider the locality within which the proposed licensed premises and, if
1847 applicable, each proposed sublicensed premises is located, including:
1848 (i) physical characteristics such as:
1849 (A) condition of the licensed or sublicensed premises;
1850 (B) square footage; and
1851 (C) parking availability; and
1852 (ii) operational factors such as:
1853 (A) tourist traffic;
1854 (B) demographics;
1855 (C) population to be served;
1856 (D) proximity to and density of other state stores, package agencies, and retail
1857 licensees; and
1858 (E) the extent of and proximity to any community location;
1859 (d) consider the person's ability to manage and operate a retail license, and if applicable
1860 the ability of each individual who will act in a supervisory or managerial capacity for each
1861 accompanying sublicense to supervise or manage a sublicense, of the type for which the person
1862 is applying, including:
1863 (i) management experience;
1864 (ii) past retail alcoholic product experience; and
1865 (iii) the type of management scheme to be used by the retail licensee or accompanying
1866 sublicensee;
1867 (e) consider the nature or type of retail licensee operation, and if applicable each
1868 proposed accompanying sublicensee's operation, of the proposed retail licensee, including:
1869 (i) the type of menu items that will be offered and emphasized;
1870 (ii) whether the retail licensee or the retail licensee's accompanying sublicensee will
1871 emphasize service to an adult clientele or to minors;
1872 (iii) the proposed hours of operation;
1873 (iv) the seating capacity of the premises; and
1874 (v) the estimated gross sales of food items; and
1875 (f) consider any other factor the commission considers necessary.
1876 (3) The commission shall determine whether an applicant under this section has an
1877 adequate kitchen or culinary facilities by considering:
1878 (a) the type of retail license or sublicense for which the person is applying;
1879 (b) the purpose of the proposed retail license or sublicense; and
1880 (c) the locality within which the proposed licensed or sublicensed premises is located.
1881 Section 17. Section 32B-5-204 is amended to read:
1882 32B-5-204. Bond for retail license.
1883 (1) (a) A retail licensee shall post a cash bond or surety bond:
1884 (i) in the amount specified in the relevant [
1885
1886 (ii) payable to the department.
1887 (b) A retail licensee shall procure and maintain the bond required under this section for
1888 as long as the retail licensee continues to operate as a retail licensee.
1889 (2) A bond required under this section shall be:
1890 (a) in a form approved by the attorney general; and
1891 (b) conditioned upon the retail licensee's faithful compliance with this title and the
1892 rules of the commission.
1893 (3) (a) If a surety bond posted by a retail licensee under this section is canceled due to
1894 the retail licensee's negligence, the department may assess a $300 reinstatement fee.
1895 (b) No part of a bond posted by a retail licensee under this section may be withdrawn:
1896 (i) during the period the retail license is in effect; or
1897 (ii) while a revocation proceeding is pending against the retail licensee.
1898 (4) (a) A bond posted under this section by a retail licensee may be forfeited if the
1899 retail license is revoked.
1900 (b) Notwithstanding Subsection (4)(a), the department may make a claim against a
1901 bond posted by a retail licensee for money owed the department under this title without the
1902 commission first revoking the retail license.
1903 Section 18. Section 32B-5-207 is amended to read:
1904 32B-5-207. Multiple retail licenses on same premises.
1905 (1) As used in this section, [
1906
1907 (a) a retail license; or
1908 (b) a sublicense.
1909 (2) [
1910 one or more licensees may not hold more than one type of [
1911 premises.
1912 [
1913 one or more licensees may hold more than one type of [
1914 (i) the applicant or licensee satisfies the requirements for each [
1915 (ii) the types of [
1916 (A) a restaurant license;
1917 (B) an on-premise beer retailer license that is not a tavern; [
1918 (C) an on-premise banquet license or a reception center license; and
1919 (D) a hospitality amenity license; and
1920 (iii) the [
1921 (b) The commission may issue and two or more restaurant licensees may share an area
1922 of each restaurant licensee's licensed premises designated for alcoholic beverage consumption,
1923 if:
1924 (i) the applicants or licensees satisfy the requirements for each license; and
1925 (ii) the only shared premises between the issued or held restaurant licenses is the area
1926 for alcoholic beverage consumption.
1927 (c) The commission may issue and two or more licensees may share a kitchen or
1928 culinary facilities located in or on one or more of the licensees' licensed premises, if:
1929 (i) the types of licenses issued or held are two or more sublicenses of a principal
1930 licensee:
1931 (A) one of which is an on-premise banquet sublicense; and
1932 (B) one of which is a restaurant license that is a sublicense, an on-premise beer retailer
1933 sublicense that is not a tavern, or a bar sublicense; or
1934 (ii) (A) the same person applies for or holds each license;
1935 (B) the licensed premises are each owned or leased by the same person and located in
1936 the same building; and
1937 (C) the only shared premises between the issued or held licenses is the kitchen or
1938 culinary facilities area, including any pathway necessary to transport an item to and from the
1939 area.
1940 [
1941 same premises under Subsection [
1942 conspicuous location at the entrance of the room a sign that:
1943 (a) measures 8-1/2 inches by 11 inches; and
1944 (b) states whether the premises is currently operating as:
1945 (i) a restaurant;
1946 (ii) an on-premise beer retailer that is not a tavern; [
1947 (iii) a banquet or a reception center[
1948 (iv) a hospitality amenity.
1949 (5) When two or more restaurant licensees share an area of each restaurant licensee's
1950 licensed premises designated for alcoholic beverage consumption in accordance with
1951 Subsection (3)(b), each licensee shall:
1952 (a) maintain control over the licensee's patrons; and
1953 (b) use a visual marker to clearly identify which licensee served each patron.
1954 [
1955 one or more licensees may not hold a bar license or a tavern license in the same room as a
1956 restaurant license.
1957 (b) For purposes of Subsection [
1958 room if:
1959 (i) each shared permanent wall between the premises licensed as a bar or a tavern and
1960 the premises licensed as a restaurant measures at least eight feet high;
1961 (ii) the premises for each license has a separate entryway that does not require a patron
1962 to pass through the premises licensed as a bar or a tavern to access the premises licensed as a
1963 restaurant; and
1964 (iii) if a patron must pass through the premises licensed as a restaurant to access the
1965 entryway to the premises licensed as a bar or a tavern, a patron on the premises licensed as a
1966 restaurant cannot see a dispensing structure on the premises licensed as a bar or a tavern.
1967 [
1968
1969
1970 [
1971
1972 [
1973
1974
1975 [
1976 licensed under Chapter 8, Resort License Act, or a hotel licensed under Chapter 8b, Hotel
1977 License Act, for the same room if the [
1978 by one or more permanent physical structures, such as a wall or other architectural feature, that
1979 separate the [
1980 (b) A patron may not transport an alcoholic beverage between two [
1981 sublicensed premises located in the same room in accordance with Subsection [
1982 (c) Notwithstanding any provision to the contrary, a minor may momentarily pass
1983 through a [
1984 minor may lawfully be, if there is no practical alternative route to the location.
1985 Section 19. Section 32B-5-301 is amended to read:
1986 32B-5-301. General operational requirements.
1987 (1) (a) A retail licensee and staff of a retail licensee shall comply with this title and the
1988 rules of the commission, including the relevant [
1989
1990 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
1991 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
1992 (i) a retail licensee;
1993 (ii) individual staff of a retail licensee; or
1994 (iii) both a retail licensee and staff of the retail licensee.
1995 (2) (a) If there is a conflict between this part and the relevant [
1996
1997 [
1998 license governs.
1999 (b) Notwithstanding that this part refers to "liquor" or an "alcoholic product," a retail
2000 licensee may only sell, offer for sale, furnish, or allow the consumption of an alcoholic product
2001 specifically authorized by the relevant [
2002 chapter or part for the retail licensee's specific type of retail license.
2003 (c) Notwithstanding that this part or the relevant [
2004
2005 retail licensee is subject to the same requirement or prohibition.
2006 (3) (a) A retail licensee shall display in a prominent place in the licensed premises the
2007 retail license that is issued by the department.
2008 (b) A retail licensee shall display in a prominent place a sign in large letters that
2009 consists of text in the following order:
2010 (i) a header that reads: "WARNING";
2011 (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
2012 can cause birth defects and permanent brain damage for the child.";
2013 (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
2014 [insert most current toll-free number] with questions or for more information.";
2015 (iv) a header that reads: "WARNING"; and
2016 (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
2017 serious crime that is prosecuted aggressively in Utah."
2018 (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
2019 font style than the text described in Subsections (3)(b)(iv) and (v).
2020 (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
2021 same font size.
2022 (d) The Department of Health shall work with the commission and department to
2023 facilitate consistency in the format of a sign required under this section.
2024 (4) A retail licensee may not on the licensed premises:
2025 (a) engage in or permit any form of gambling, as defined and proscribed in Title 76,
2026 Chapter 10, Part 11, Gambling;
2027 (b) have any video gaming device, as defined and proscribed by Title 76, Chapter 10,
2028 Part 11, Gambling; or
2029 (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
2030 the risking of something of value for a return or for an outcome when the return or outcome is
2031 based upon an element of chance, excluding the playing of an amusement device that confers
2032 only an immediate and unrecorded right of replay not exchangeable for value.
2033 (5) A retail licensee may not knowingly allow a person on the licensed premises to, in
2034 violation of Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter 37a, Utah Drug
2035 Paraphernalia Act:
2036 (a) sell, distribute, possess, or use a controlled substance, as defined in Section
2037 58-37-2; or
2038 (b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in
2039 Section 58-37a-3.
2040 (6) Upon the presentation of credentials, at any time during which a retail licensee is
2041 open for the transaction of business, the retail licensee shall immediately:
2042 (a) admit a commissioner, authorized department employee, or law enforcement officer
2043 to the retail licensee's premises; and
2044 (b) permit, without hindrance or delay, the person described in Subsection (6)(a) to
2045 inspect completely:
2046 (i) the entire premises of the retail licensee; and
2047 (ii) the records of the retail licensee.
2048 (7) An individual may not consume an alcoholic product on the licensed premises of a
2049 retail licensee on any day during the period:
2050 (a) beginning one hour after the time of day that the period during which a retail
2051 licensee may not sell, offer for sale, or furnish an alcoholic product on the licensed premises
2052 begins; and
2053 (b) ending at the time specified in the relevant [
2054
2055 retail licensee may first sell, offer for sale, or furnish an alcoholic product on the licensed
2056 premises on that day.
2057 (8) [
2058 alcoholic product to a patron shall wear an identification badge.
2059 [
2060 Act, the commission shall make rules:
2061 (a) related to the requirement described in Subsection (8)[
2062 (b) for dispensing systems and dispensing areas of restaurant licensees, bar licensees,
2063 and taverns, establishing standards:
2064 (i) in accordance with the provisions of this title; and
2065 (ii) prohibiting a dispensing system to remain at a patron's table.
2066 Section 20. Section 32B-5-307 is amended to read:
2067 32B-5-307. Bringing alcoholic product onto or removing alcoholic product from
2068 premises.
2069 (1) Except as provided in [
2070 (a) A person may not bring onto the licensed premises of a retail licensee an alcoholic
2071 product for on-premise consumption.
2072 (b) A retail licensee may not allow a person to:
2073 (i) bring onto licensed premises an alcoholic product for on-premise consumption; or
2074 (ii) consume an alcoholic product brought onto the licensed premises by a person other
2075 than the retail licensee.
2076 (c) A retail licensee may not sell, offer for sale, or furnish an alcoholic product through
2077 a window or door to a location off the licensed premises or to a vehicular traffic area.
2078 (2) Except as provided in Subsections (3)[
2079 (a) a person may not carry from a licensed premises of a retail licensee an open
2080 container that:
2081 (i) is used primarily for drinking purposes; and
2082 (ii) contains an alcoholic product;
2083 (b) a retail licensee may not permit a patron to carry from the licensed premises an
2084 open container described in Subsection (2)(a); and
2085 (c) (i) a person may not carry from a licensed premises of a retail licensee a sealed
2086 container of liquor that has been purchased from the retail licensee; and
2087 (ii) a retail licensee may not permit a patron to carry from the licensed premises a
2088 sealed container of liquor that has been purchased from the retail licensee.
2089 (3) (a) A patron may bring a bottled wine onto the premises of a retail licensee for
2090 on-premise consumption if:
2091 (i) permitted by the retail licensee; and
2092 (ii) the retail licensee is authorized to sell, offer for sale, or furnish wine.
2093 (b) If a patron carries bottled wine onto the licensed premises of a retail licensee, the
2094 patron shall deliver the bottled wine to a server or other representative of the retail licensee
2095 upon entering the licensed premises.
2096 (c) A retail licensee authorized to sell, offer for sale, or furnish wine, may provide a
2097 wine service for a bottled wine carried onto the licensed premises in accordance with this
2098 Subsection (3) or a bottled wine purchased at the licensed premises.
2099 (d) A patron may remove from a licensed premises the unconsumed contents of a bottle
2100 of wine purchased at the licensed premises, or brought onto the licensed premises in
2101 accordance with this Subsection (3), only if before removal the bottle is recorked or recapped.
2102 [
2103
2104
2105 [
2106 [
2107 (4) A patron may transport beer between the sublicensed premises of an arena
2108 licensee's accompanying sublicenses, if the patron transports the beer from and to an area of
2109 each sublicensed premises:
2110 (a) that is adjacent to the other; and
2111 (b) where the consumption of beer is permitted.
2112 (5) Neither a patron nor a retail licensee violates this section if:
2113 (a) the patron is in shared seating; and
2114 (b) the patron purchased the patron's alcoholic beverage from a restaurant licensee
2115 whose licensed premises include the shared seating area the patron is in.
2116 Section 21. Section 32B-5-309 is amended to read:
2117 32B-5-309. Ceasing operation.
2118 (1) Except as provided in Subsection (8), a retail licensee may not close or cease
2119 operation for a period longer than 240 hours, unless:
2120 (a) the retail licensee notifies the department in writing at least seven days before the
2121 day on which the retail licensee closes or ceases operation; and
2122 (b) the closure or cessation of operation is first approved by the department.
2123 (2) Notwithstanding Subsection (1), in the case of emergency closure, a retail licensee
2124 shall immediately notify the department by telephone.
2125 (3) (a) The department may authorize a closure or cessation of operation of a retail
2126 licensee for a period not to exceed 60 days.
2127 (b) The department may extend the initial period an additional 30 days upon:
2128 (i) written request of the retail licensee; and
2129 (ii) a showing of good cause.
2130 (4) A closure or cessation of operation may not exceed a total of 90 days without
2131 commission approval.
2132 (5) A notice required under this section shall include:
2133 (a) the dates of closure or cessation of operation;
2134 (b) the reason for the closure or cessation of operation; and
2135 (c) the date on which the retail licensee will reopen or resume operation.
2136 (6) Failure of a retail licensee to provide notice and to obtain department approval
2137 before closure or cessation of operation results in an automatic forfeiture of:
2138 (a) the retail license; and
2139 (b) the unused portion of the retail license fee for the remainder of the retail license
2140 year effective immediately.
2141 (7) Failure of a retail licensee to reopen or resume operation by the approved date
2142 results in an automatic forfeiture of:
2143 (a) the retail license; and
2144 (b) the unused portion of the retail license fee for the remainder of the retail license
2145 year.
2146 (8) This section does not apply to:
2147 (a) an on-premise beer retailer who is not a tavern; or
2148 (b) an airport lounge licensee[
2149 (c) a hospitality amenity licensee.
2150 Section 22. Section 32B-6-406 is amended to read:
2151 32B-6-406. Specific operational requirements for a bar establishment license.
2152 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2153 Requirements, a bar establishment licensee and staff of the bar establishment licensee shall
2154 comply with this section.
2155 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2156 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2157 (i) a bar establishment licensee;
2158 (ii) individual staff of a bar establishment licensee; or
2159 (iii) both a bar establishment licensee and staff of the bar establishment licensee.
2160 (2) In addition to complying with Subsection 32B-5-301(3), a bar licensee shall display
2161 in a conspicuous place at the entrance to the licensed premises a sign that:
2162 (a) measures at least 8-1/2 inches long and 11 inches wide; and
2163 (b) clearly states that the bar licensee is a bar and that no one under 21 years of age is
2164 allowed.
2165 (3) (a) In addition to complying with Section 32B-5-302, a bar establishment licensee
2166 shall maintain for a minimum of three years:
2167 (i) a record required by Section 32B-5-302; and
2168 (ii) a record maintained or used by the bar establishment licensee, as the department
2169 requires.
2170 (b) Section 32B-1-205 applies to a record required to be made, maintained, or used in
2171 accordance with this Subsection (3).
2172 (c) The department shall audit the records of a bar establishment licensee at least once
2173 annually.
2174 (4) (a) A bar establishment licensee may not sell, offer for sale, or furnish liquor on the
2175 licensed premises on any day during a period that:
2176 (i) begins at 1 a.m.; and
2177 (ii) ends at 9:59 a.m.
2178 (b) A bar establishment licensee may sell, offer for sale, or furnish beer during the
2179 hours specified in Part 7, On-Premise Beer Retailer License, for an on-premise beer retailer
2180 license.
2181 (c) (i) Notwithstanding Subsections (4)(a) and (b), a bar establishment licensee shall
2182 keep its licensed premises open for one hour after the bar establishment licensee ceases the sale
2183 and furnishing of an alcoholic product during which time a patron of the bar establishment
2184 licensee may finish consuming:
2185 (A) a single drink containing spirituous liquor;
2186 (B) a single serving of wine not exceeding five ounces;
2187 (C) a single serving of heavy beer;
2188 (D) a single serving of beer not exceeding 26 ounces; or
2189 (E) a single serving of a flavored malt beverage.
2190 (ii) A bar establishment licensee is not required to remain open:
2191 (A) after all patrons have vacated the premises; or
2192 (B) during an emergency.
2193 (5) (a) A minor:
2194 (i) may not be admitted into, use, or be in[
2195
2196 licensed premises of:
2197 (A) a dining club licensee unless accompanied by an individual who is 21 years of age
2198 or older; or
2199 (B) a bar licensee, except to the extent provided for under Section 32B-6-406.1[
2200 (ii) may only be admitted into, use, or be in the lounge or bar area of an equity
2201 licensee's or fraternal licensee's licensed premises:
2202 (A) when accompanied by an individual who is 21 years of age or older; and
2203 (B) momentarily while en route to another area of the licensee's premises; and
2204 (iii) may not remain or sit in the lounge or bar area of an equity licensee's or fraternal
2205 licensee's licensed premises.
2206 (b) Notwithstanding Section 32B-5-308, a bar establishment licensee may not employ a
2207 minor to:
2208 (i) work in a lounge or bar area of an equity licensee, fraternal licensee, or dining club
2209 licensee; or
2210 (ii) handle an alcoholic product.
2211 (c) Notwithstanding Section 32B-5-308, a minor may not be employed on the licensed
2212 premises of a bar licensee.
2213 (d) Nothing in this part or Section 32B-5-308 precludes a local authority from being
2214 more restrictive of a minor's admittance to, use of, or presence on the licensed premises of a bar
2215 establishment licensee.
2216 (6) A bar establishment licensee shall have food available at all times when an
2217 alcoholic product is sold, offered for sale, furnished, or consumed on the licensed premises.
2218 (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have
2219 more than two alcoholic products of any kind at a time before the patron.
2220 (b) A patron may not have two spirituous liquor drinks before the bar establishment
2221 licensee patron if one of the spirituous liquor drinks consists only of the primary spirituous
2222 liquor for the other spirituous liquor drink.
2223 (c) An individual portion of wine is considered to be one alcoholic product under
2224 Subsection (7)(a).
2225 (8) A bar establishment licensee shall have available on the premises for a patron to
2226 review at the time that the patron requests it, a written alcoholic product price list or a menu
2227 containing the price of an alcoholic product sold, offered for sale, or furnished by the bar
2228 establishment licensee including:
2229 (a) a set-up charge;
2230 (b) a service charge; or
2231 (c) a chilling fee.
2232 (9) Subject to Section 32B-5-309, a bar establishment licensee may not temporarily
2233 rent or otherwise temporarily lease its premises to a person unless:
2234 (a) the person to whom the bar establishment licensee rents or leases the premises
2235 agrees in writing to comply with this title as if the person is the bar establishment licensee,
2236 except for a requirement related to making or maintaining a record; and
2237 (b) the bar establishment licensee takes reasonable steps to ensure that the person
2238 complies with this section as provided in Subsection (9)(a).
2239 (10) If a bar establishment licensee is an equity licensee or fraternal licensee, the bar
2240 establishment licensee shall comply with Section 32B-6-407.
2241 (11) If a bar establishment licensee is a dining club licensee or bar licensee, the bar
2242 establishment licensee shall comply with Section 32B-1-407.
2243 (12) (a) A bar establishment licensee shall own or lease premises suitable for the bar
2244 establishment licensee's activities.
2245 (b) A bar establishment licensee may not maintain licensed premises in a manner that
2246 barricades or conceals the bar establishment licensee's operation.
2247 Section 23. Section 32B-6-603 is amended to read:
2248 32B-6-603. Commission's power to issue on-premise banquet license -- Contracts
2249 as host.
2250 (1) (a) Before a person may store, sell, offer for sale, furnish, or allow the consumption
2251 of an alcoholic product in connection with the person's banquet and room service activities at
2252 one of the following, the person shall first obtain an on-premise banquet license in accordance
2253 with this part:
2254 (i) a hotel;
2255 (ii) a resort facility;
2256 (iii) a sports center;
2257 (iv) a convention center; [
2258 (v) a performing arts facility[
2259 (vi) an arena.
2260 (b) This part does not prohibit an alcoholic product on the premises of a person listed
2261 in Subsection (1)(a) to the extent otherwise permitted by this title.
2262 (c) This section does not prohibit a person who applies for an on-premise banquet
2263 license to also apply for a package agency if otherwise qualified.
2264 (2) The commission may issue an on-premise banquet license to establish on-premise
2265 banquet licensees in the numbers the commission considers proper for the storage, sale, offer
2266 for sale, furnishing, and consumption of an alcoholic product at a banquet or as part of room
2267 service activities operated by an on-premise banquet licensee.
2268 (3) Subject to Section 32B-1-201, the commission may not issue a total number of
2269 on-premise banquet licenses that at any time exceed the number determined by dividing the
2270 population of the state by 28,765.
2271 (4) Pursuant to a contract between the host of a banquet and an on-premise banquet
2272 licensee:
2273 (a) the host of the banquet may request an on-premise banquet licensee to provide an
2274 alcoholic product served at the banquet; and
2275 (b) an on-premise banquet licensee may provide an alcoholic product served at the
2276 banquet.
2277 (5) At a banquet, an on-premise banquet licensee may furnish an alcoholic product:
2278 (a) without charge to a patron at a banquet, except that the host of the banquet shall pay
2279 for an alcoholic product furnished at the banquet; or
2280 (b) with a charge to a patron at the banquet.
2281 (6) To be licensed as an on-premise banquet, a person shall maintain at least 50% of
2282 the person's total annual banquet gross receipts from the sale of food, which does not include:
2283 (a) mix for an alcoholic product; or
2284 (b) a charge in connection with the furnishing of an alcoholic product.
2285 Section 24. Section 32B-6-605 is amended to read:
2286 32B-6-605. Specific operational requirements for on-premise banquet license.
2287 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2288 Requirements, an on-premise banquet licensee and staff of the on-premise banquet licensee
2289 shall comply with this section.
2290 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2291 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2292 (i) an on-premise banquet licensee;
2293 (ii) individual staff of an on-premise banquet licensee; or
2294 (iii) both an on-premise banquet licensee and staff of the on-premise banquet licensee.
2295 (2) An on-premise banquet licensee shall comply with Subsections 32B-5-301(4) and
2296 (5) for the entire premises of the hotel, resort facility, sports center, convention center, or
2297 performing arts facility that is the basis for the on-premise banquet license.
2298 (3) (a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee
2299 shall provide the department with advance notice of a scheduled banquet in accordance with
2300 rules made by the commission.
2301 (b) Any of the following may conduct a random inspection of a banquet:
2302 (i) an authorized representative of the commission or the department; or
2303 (ii) a law enforcement officer.
2304 (4) (a) An on-premise banquet licensee is not subject to Section 32B-5-302, but shall
2305 make and maintain the records the commission or department requires.
2306 (b) Section 32B-1-205 applies to a record required to be made or maintained in
2307 accordance with this Subsection (4).
2308 (5) (a) Except as otherwise provided in this title, an on-premise banquet licensee may
2309 sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption at the
2310 location of the banquet.
2311 (b) Except as provided in [
2312 banquet, a patron, or a person other than the on-premise banquet licensee or staff of the
2313 on-premise banquet licensee, may not remove an alcoholic product from the premises of the
2314 banquet.
2315 (c) Notwithstanding Subsection 32B-5-307(3) and except as provided in [
2316 Subsections 32B-5-307(4) and (5), a patron at a banquet may not bring an alcoholic product
2317 into or onto, or remove an alcoholic product from, the premises of a banquet.
2318 (6) (a) An on-premise banquet licensee may not leave an unsold alcoholic product at
2319 the banquet following the conclusion of the banquet.
2320 (b) At the conclusion of a banquet, an on-premise banquet licensee shall:
2321 (i) destroy an opened and unused alcoholic product that is not saleable, under
2322 conditions established by the department; and
2323 (ii) return to the on-premise banquet licensee's approved locked storage area any:
2324 (A) opened and unused alcoholic product that is saleable; and
2325 (B) unopened container of an alcoholic product.
2326 (c) Except as provided in Subsection (6)(b) with regard to an open or sealed container
2327 of an alcoholic product not sold or consumed at a banquet, an on-premise banquet licensee:
2328 (i) shall store the alcoholic product in the on-premise banquet licensee's approved
2329 locked storage area; and
2330 (ii) may use the alcoholic product at more than one banquet.
2331 (7) Notwithstanding Section 32B-5-308, an on-premise banquet licensee may not
2332 employ a minor to sell, furnish, or dispense an alcoholic product in connection with the
2333 on-premise banquet licensee's banquet and room service activities.
2334 (8) An on-premise banquet licensee:
2335 (a) may provide room service in portions described in Section 32B-5-304; [
2336 (b) may not sell, offer for sale, or furnish an alcoholic product at a banquet or in
2337 connection with room service any day during a period that:
2338 (i) begins at 1 a.m.; and
2339 (ii) ends at 9:59 a.m[
2340 (c) notwithstanding Section 32B-5-305, may provide as room service one alcoholic
2341 product free of charge per guest reservation, per guest room, if the alcoholic product:
2342 (i) is not a spirituous liquor; and
2343 (ii) is in an unopened container not to exceed 750 milliliters.
2344 (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
2345 more than two alcoholic products of any kind at a time before the patron.
2346 (b) A patron may not have more than one spirituous liquor drink at a time before the
2347 patron.
2348 (c) An individual portion of wine is considered to be one alcoholic product under
2349 Subsection (9)(a).
2350 (10) (a) An on-premise banquet licensee shall supervise and direct a person involved in
2351 the sale, offer for sale, or furnishing of an alcoholic product.
2352 (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
2353 shall complete an alcohol training and education seminar.
2354 (11) A staff person of an on-premise banquet licensee shall remain at the banquet at all
2355 times when an alcoholic product is sold, offered for sale, furnished, or consumed at the
2356 banquet.
2357 (12) (a) Room service of an alcoholic product to a guest room of a hotel or resort
2358 facility shall be provided in person by staff of an on-premise banquet licensee only to an adult
2359 guest in the guest room.
2360 (b) An alcoholic product may not be left outside a guest room for retrieval by a guest.
2361 (13) An on-premise banquet licensee may not maintain a minibar.
2362 Section 25. Section 32B-6-702 is amended to read:
2363 32B-6-702. Definitions.
2364 As used in this part[
2365 (1) "Commission-approved activity" means a leisure activity that:
2366 (a) the commission approves by rule made in accordance with Title 63G, Chapter 3,
2367 Utah Administrative Rulemaking Act; and
2368 (b) does not involve the use of a dangerous weapon.
2369 (2) (a) "Recreational amenity" means:
2370 [
2371 [
2372 [
2373 [
2374 [
2375 [
2376 [
2377 [
2378 capacity equal to or greater than 6,500;
2379 [
2380 [
2381 [
2382 [
2383 [
2384 [
2385 [
2386 [
2387 [
2388 [
2389 [
2390 [
2391 [
2392 [
2393 furnished at the venue; and
2394 [
2395 sale of beer; [
2396 [
2397 [
2398 [
2399 (xv) a facility or venue that is a recreational amenity for a person licensed under this
2400 part before May 12, 2020;
2401 (xvi) a venue for karaoke; or
2402 (xvii) an enterprise developed around a commission-approved activity.
2403 (b) "Recreational amenity" does not include an item described in Subsection (3)(a), if
2404 the item is tangential to an enterprise or activity that is not included in Subsection (3)(a).
2405 Section 26. Section 32B-6-803 is amended to read:
2406 32B-6-803. Commission's power to issue reception center license.
2407 (1) Before a person may store, sell, offer for sale, or furnish an alcoholic product on
2408 [
2409 license from the commission in accordance with this part.
2410 (2) The commission may issue a reception center license to establish reception center
2411 licensed premises at places and in numbers the commission considers proper for the storage,
2412 sale, offer for sale, furnishing, and consumption of an alcoholic product on premises operated
2413 as a reception center.
2414 (3) Subject to Section 32B-1-201, the commission may not issue a total number of
2415 reception center licenses that at any time exceeds the number determined by dividing the
2416 population of the state by 251,693.
2417 (4) The commission may not issue a reception center license for premises that do not
2418 meet the proximity requirements of Section 32B-1-202.
2419 (5) (a) To be licensed as a reception center, a person [
2420
2421 maintain at least 50% of the person's total annual gross receipts from the sale of food, which
2422 does not include:
2423 (i) mix for an alcoholic product; or
2424 (ii) a charge in connection with the furnishing of an alcoholic product.
2425 (b) A reception center licensee shall report the information necessary to show
2426 compliance with this Subsection (5) to the department on an annual basis.
2427 Section 27. Section 32B-6-805 is amended to read:
2428 32B-6-805. Specific operational requirements for a reception center license.
2429 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2430 Requirements, a reception center licensee and staff of the reception center licensee shall
2431 comply with this section.
2432 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2433 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2434 (i) a reception center licensee;
2435 (ii) individual staff of a reception center licensee; or
2436 (iii) both a reception center licensee and staff of the reception center licensee.
2437 (2) In addition to complying with Section 32B-5-303, a reception center licensee shall
2438 store an alcoholic product in a storage area described in Subsection (14)(a).
2439 (3) (a) For the purpose described in Subsection (3)(b), a reception center licensee shall
2440 provide the following with advance notice of a scheduled event in accordance with rules made
2441 by the commission:
2442 (i) the department; and
2443 (ii) the local law enforcement agency responsible for the enforcement of this title in the
2444 jurisdiction where the reception center is located.
2445 (b) Any of the following may conduct a random inspection of an event:
2446 (i) an authorized representative of the commission or the department; or
2447 (ii) a law enforcement officer.
2448 (4) (a) Except as otherwise provided in this title, a reception center licensee may sell,
2449 offer for sale, or furnish an alcoholic product at an event only for consumption at the reception
2450 center's licensed premises.
2451 (b) A host of an event, a patron, or a person other than the reception center licensee or
2452 staff of the reception center licensee, may not remove an alcoholic product from the reception
2453 center's licensed premises.
2454 (c) Notwithstanding Section 32B-5-307, a patron at an event may not bring an
2455 alcoholic product into or onto, or remove an alcoholic product from, the reception center.
2456 (5) (a) A reception center licensee may not leave an unsold alcoholic product at an
2457 event following the conclusion of the event.
2458 (b) At the conclusion of an event, a reception center licensee shall:
2459 (i) destroy an opened and unused alcoholic product that is not saleable, under
2460 conditions established by the department; and
2461 (ii) return to the reception center licensee's approved locked storage area any:
2462 (A) opened and unused alcoholic product that is saleable; and
2463 (B) unopened container of an alcoholic product.
2464 (c) Except as provided in Subsection (5)(b) with regard to an open or sealed container
2465 of an alcoholic product not sold or consumed at an event, a reception center licensee:
2466 (i) shall store the alcoholic product in accordance with Subsection (2); and
2467 (ii) may use the alcoholic product at more than one event.
2468 (6) Notwithstanding Section 32B-5-308, a reception center licensee may not employ a
2469 minor in connection with an event at the reception center at which food is not made available.
2470 (7) A person's willingness to serve an alcoholic product may not be made a condition
2471 of employment as a server with a reception center licensee.
2472 (8) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
2473 product at the licensed premises on any day during the period that:
2474 (a) begins at 1 a.m.; and
2475 (b) ends at 9:59 a.m.
2476 (9) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
2477 product at an event at which a minor is present unless the reception center licensee makes food
2478 available at all times when an alcoholic product is sold, offered for sale, furnished, or
2479 consumed during the event.
2480 (10) (a) Subject to the other provisions of this Subsection (10), a patron may not have
2481 more than two alcoholic products of any kind at a time before the patron.
2482 (b) An individual portion of wine is considered to be one alcoholic product under
2483 Subsection (10)(a).
2484 (11) (a) A reception center licensee shall supervise and direct a person involved in the
2485 sale, offer for sale, or furnishing of an alcoholic product.
2486 (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
2487 shall complete an alcohol training and education seminar.
2488 (12) A staff person of a reception center licensee shall remain at an event at all times
2489 when an alcoholic product is sold, offered for sale, furnished, or consumed at the event.
2490 (13) A reception center licensee may not sell, offer for sale, or furnish an alcoholic
2491 product to a patron, and a patron may not consume an alcoholic product at a bar structure.
2492 (14) Except as provided in Subsection (15), a reception center licensee may dispense
2493 an alcoholic product only if:
2494 (a) the alcoholic product is dispensed from an area that is:
2495 (i) separated from an area for the consumption of food by a patron by a solid,
2496 translucent, permanent structural barrier such that the facilities for the storage or dispensing of
2497 an alcoholic product are:
2498 (A) not readily visible to a patron; and
2499 (B) not accessible by a patron; and
2500 (ii) apart from an area used:
2501 (A) for staging; or
2502 (B) as a lobby or waiting area;
2503 (b) the reception center licensee uses an alcoholic product that is:
2504 (i) stored in an area described in Subsection (14)(a); or
2505 (ii) in an area not described in Subsection (14)(a) on the licensed premises and:
2506 (A) immediately before the alcoholic product is dispensed it is in an unopened
2507 container;
2508 (B) the unopened container is taken to an area described in Subsection (14)(a) before it
2509 is opened; and
2510 (C) once opened, the container is stored in an area described in Subsection (14)(a); and
2511 (c) any instrument or equipment used to dispense an alcoholic product is located in an
2512 area described in Subsection (14)(a).
2513 (15) A reception center licensee may dispense an alcoholic product from a mobile
2514 serving area that:
2515 (a) is moved only by staff of the reception center licensee;
2516 (b) is capable of being moved by only one individual; and
2517 (c) is no larger than 6 feet long and 30 inches wide.
2518 (16) (a) A reception center licensee may not have an event on the licensed premises
2519 [
2520 (i) is pursuant to a contract between a third party host of the event and the reception
2521 center licensee under which the reception center licensee provides an alcoholic product sold,
2522 offered for sale, or furnished at an event[
2523 (ii) is a private event.
2524 (b) At an event, a reception center licensee may furnish an alcoholic product:
2525 (i) without charge to a patron, except that the third party host of the event shall pay for
2526 an alcoholic product furnished at the event; or
2527 (ii) with a charge to a patron at the event.
2528 (c) The commission may by rule define what constitutes a "third-party host" for
2529 purposes of this Subsection (16) so that a reception center licensee and the third-party host are
2530 not owned by or operated by the same persons, except that the rule shall permit a reception
2531 center licensee to host an event for an immediate family member of the reception center
2532 licensee.
2533 (17) A reception center licensee shall have culinary facilities that are:
2534 (a) adequate to prepare a full meal; and
2535 (b) (i) located on the licensed premises; or
2536 (ii) under the same control as the reception center licensee.
2537 (18) (a) Except as provided in Subsection (18)(b), a reception center licensee may not
2538 operate an event:
2539 (i) that is open to the general public; and
2540 (ii) at which an alcoholic product is sold or offered for sale.
2541 (b) A reception center licensee may operate an event described in Subsection (18)(a) if
2542 the event is hosted:
2543 (i) at the reception center no more frequently than once a calendar year; and
2544 (ii) by a nonprofit organization that is organized and qualified under Section 501(c),
2545 Internal Revenue Code.
2546 Section 28. Section 32B-6-1001 is enacted to read:
2547
2548 32B-6-1001. Hospitality Amenity License.
2549 This part is known as "Hospitality Amenity License."
2550 Section 29. Section 32B-6-1002 is enacted to read:
2551 32B-6-1002. Definitions.
2552 As used in this part:
2553 (1) "Hospitality guest" means an individual:
2554 (a) (i) who is a resident of a resort;
2555 (ii) for whom a resident of a resort provides lodging accommodations for
2556 compensation;
2557 (iii) for whom a hotel provides lodging accommodations for compensation; or
2558 (iv) for whom a resort provides lodging accommodations for compensation; and
2559 (b) who is at least 21 years of age.
2560 (2) "Boundary of a hotel" means the physical boundary of one or more contiguous
2561 parcels of real property owned or managed by the same person and on which a hotel is located.
2562 (3) "Boundary of a resort building" means the same as that term is defined in Section
2563 32B-8-102.
2564 (4) "Hotel" means a commercial lodging establishment that offers at least 40 rooms as
2565 temporary sleeping accommodations for compensation.
2566 Section 30. Section 32B-6-1003 is enacted to read:
2567 32B-6-1003. Commission's power to issue hospitality amenity license.
2568 (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
2569 an alcoholic product on the person's premises as a hospitality amenity licensee, the person shall
2570 first obtain a hospitality amenity license from the commission in accordance with this part.
2571 (2) (a) The commission may only issue a hospitality amenity license to a hotel or a
2572 resort.
2573 (b) Beginning November 1, 2020, the commission may issue a hospitality amenity
2574 license to establish hospitality amenity licensed premises at places and in numbers the
2575 commission considers proper for the storage, sale, offer for sale, furnishing, and consumption
2576 of alcoholic products on premises operated as a hospitality amenity licensee.
2577 (3) The commission may authorize the sale of an alcoholic product at as many as three
2578 hospitality amenity locations within the boundary of a hotel or the boundary of a resort building
2579 under one hospitality amenity license if:
2580 (a) the hotel or resort has a minimum of 150 rooms for temporary sleeping
2581 accommodations; and
2582 (b) the commission determines the location, design, and construction of the hotel or
2583 resort requires more than one hospitality amenity location within the hotel or resort to serve the
2584 public convenience.
2585 (4) Except as otherwise provided in Section 32B-1-202, the commission may not issue
2586 a hospitality amenity license for premises that do not meet the proximity requirements of
2587 Subsection 32B-1-202(2).
2588 Section 31. Section 32B-6-1004 is enacted to read:
2589 32B-6-1004. Specific licensing requirements for a hospitality amenity license.
2590 (1) To obtain a hospitality amenity license a person shall comply with Chapter 5, Part
2591 2, Retail Licensing Process.
2592 (2) (a) A hospitality amenity license expires on October 31 of each year.
2593 (b) To renew a person's hospitality amenity license, a person shall comply with the
2594 renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
2595 September 30.
2596 (3) (a) The nonrefundable application fee for a hospitality amenity license is $330.
2597 (b) The initial license fee for a hospitality amenity license is $2,000.
2598 (c) The renewal fee for a hospitality amenity license is $1,000.
2599 (4) The bond amount required for a hospitality amenity license is the penal sum of
2600 $10,000.
2601 (5) Notwithstanding Subsection 32B-5-303(3), the department may approve an
2602 additional location in or on the licensed premises of a hospitality amenity licensee from which
2603 the hospitality amenity licensee may store, sell, offer for sale, furnish, or allow the
2604 consumption of an alcoholic product that is not included in the person's original application
2605 only:
2606 (a) upon proper application by a hospitality amenity licensee; and
2607 (b) in accordance with guidelines the commission approves.
2608 Section 32. Section 32B-6-1005 is enacted to read:
2609 32B-6-1005. Specific operational requirements for hospitality amenity license.
2610 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2611 Requirements, a hospitality amenity licensee and staff of the hospitality amenity licensee shall
2612 comply with this section.
2613 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2614 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2615 (i) the hospitality amenity licensee;
2616 (ii) individual staff of the hospitality amenity licensee; or
2617 (iii) both the hospitality amenity licensee and staff of the hospitality amenity licensee.
2618 (2) (a) A hospitality amenity licensee may sell, offer for sale, or furnish an alcoholic
2619 product:
2620 (i) to a hospitality guest; and
2621 (ii) for consumption in or on the hospitality amenity licensee's licensed premises.
2622 (b) (i) A hospitality amenity licensee may sell, offer for sale, or furnish an alcoholic
2623 product that is not spirituous liquor in or on:
2624 (A) licensed premises physically separated from an area to which a hospitality guest or
2625 the public has access by a permanent or temporary structure or barrier; or
2626 (B) licensed premises described in Subsection (2)(b)(ii).
2627 (ii) A hospitality amenity licensee may sell, offer for sale, or furnish spirituous liquor
2628 in or on licensed premises that:
2629 (A) allows access only through the use of a key or code; and
2630 (B) fills the entirety of a physically and permanently enclosed area within the hotel or
2631 resort.
2632 (c) Spirituous liquor may not be in or on the licensed premises described in Subsection
2633 (2)(b)(i)(A) of a hospitality amenity licensee, except for use:
2634 (i) as a flavoring on a dessert; and
2635 (ii) in the preparation of a flaming food dish or dessert.
2636 (d) a hospitality amenity licensee may not allow self-service of an alcoholic product in
2637 or on the hospitality amenity licensee's licensed premises.
2638 (3) (a) Subject to Subsections (3)(b) and (c), a hospitality guest may not have more
2639 than two alcoholic products of any kind at a time before the hospitality guest.
2640 (b) A hospitality guest may not have more than one spirituous liquor drink at a time
2641 before the hospitality guest.
2642 (c) An individual portion of wine is considered to be one alcoholic product under
2643 Subsection (3)(a).
2644 (4) A hospitality amenity licensee shall make food available at all times that the
2645 licensee sells, offers for sale, furnishes, or allows the consumption of an alcoholic product on
2646 the licensed premises.
2647 (5) (a) A hospitality amenity licensee may not sell, offer for sale, or furnish an
2648 alcoholic product any day during a period that:
2649 (i) begins at 1:00 a.m.; and
2650 (ii) ends at 9:59 a.m.
2651 (b) A hospitality amenity licensee shall remain open for one hour after the licensee
2652 ceases to sell and furnish an alcoholic product, during which time a hospitality guest in or on
2653 the hospitality amenity licensed premises may finish consuming:
2654 (i) a single drink containing spirituous liquor;
2655 (ii) a single serving of wine not exceeding five ounces;
2656 (iii) a single serving of heavy beer;
2657 (iv) a single serving of beer not exceeding 26 ounces; or
2658 (v) a single serving of a flavored malt beverage.
2659 (c) A hospitality amenity licensee is not required to remain open:
2660 (i) after all individuals have vacated the licensee's licensed premises; or
2661 (ii) during an emergency.
2662 (6) (a) Notwithstanding Section 32B-5-305, a hospitality amenity licensee may provide
2663 a hospitality guest up to two single servings of an alcoholic product free of charge or at a
2664 reduced rate, if:
2665 (i) the alcoholic product is not a spirituous liquor; and
2666 (ii) the hospitality amenity licensee offers the alcohol product:
2667 (A) to all hospitality guests:
2668 (B) during a specific time; and
2669 (C) on the hospitality amenity licensee's licensed premises.
2670 (b) Before a hospitality amenity licensee provides an alcoholic product free of charge
2671 or at a reduced rate as described in Subsection (6)(a), the licensee shall provide the department
2672 with advance notice of the event, in accordance with commission rules that permit a licensee to
2673 provide a single notice for a reoccurring event or multiple events.
2674 (7) A hospitality amenity licensee may permit a hospitality guest to purchase an alcohol
2675 product through a charge to the hospitality guest's lodging accommodations.
2676 (8) (a) A hospitality guest, or a person other than the hospitality amenity licensee or
2677 staff of the hospitality amenity licensee, may not remove an alcoholic product from the
2678 hospitality amenity licensee's licensed premises.
2679 (b) Notwithstanding Section 32B-5-307(3), a hospitality guest may not bring an
2680 alcoholic product within the hospitality amenity licensee's licensed premises.
2681 (9) A hospitality amenity licensee shall display at each entrance to the licensee's
2682 licensed premises a conspicuous sign that:
2683 (a) measures at least 8-1/2 inches long and 11 inches wide; and
2684 (b) clearly states that entry is limited to individuals who are hospitality guests, as
2685 defined in this title.
2686 (10) A hospitality amenity licensee may not permit a minor to enter the licensee's
2687 licensed premises at any time during which an alcoholic product is sold, offered for sale,
2688 furnished, or consumed, unless the minor is accompanied at all times on the licensed premises
2689 by a hospitality guest.
2690 (11) A staff person of a hospitality amenity licensee shall remain on the licensed
2691 premises at all times when an alcoholic product is sold, offered for sale, furnished, or
2692 consumed in or on the licensed premises.
2693 (12) A hospitality amenity licensee may transfer an alcoholic product to or from
2694 another licensee within the boundary of the hotel or within the boundary of the resort building,
2695 if:
2696 (a) the hospitality amenity licensee and each licensee involved in the transfer tracks the
2697 transfer of the alcoholic product; and
2698 (b) the alcoholic product is in a sealed, unopened container.
2699 (13) (a) In addition to the requirements described in Section 32B-5-302, a hospitality
2700 amenity licensee shall maintain each of the following records for at least three years:
2701 (i) a record required under Section 32B-5-302; and
2702 (ii) a record that the commission requires a hospitality amenity licensee to use or
2703 maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2704 Rulemaking Act.
2705 (b) The department shall audit the records of a hospitality amenity licensee at least
2706 once each calendar year.
2707 Section 33. Section 32B-7-409 is enacted to read:
2708 32B-7-409. Multiple licenses on same premises.
2709 (1) Except as provided in Subsection (2), the commission may not issue and one or
2710 more licensees may not hold an off-premise beer retailer state licensee for the same licensed
2711 premises or adjacent licensed premises as a retail licensee, unless the licensed premises:
2712 (a) are separated by a permanent, opaque, floor-to-ceiling wall;
2713 (b) each have a separate entrance to the licensed premises; and
2714 (c) each have separate restroom facilities on the licensed premises.
2715 (2) The commission may issue and an off-premise beer retailer state licensee may hold
2716 more than one type of license for the same licensed premises or adjacent licensed premises, if:
2717 (a) a manufacturing licensee is located on or adjacent to the licensed premises; and
2718 (b) a package agency is located on or adjacent to the licensed premises.
2719 Section 34. Section 32B-8-102 is amended to read:
2720 32B-8-102. Definitions.
2721 As used in this chapter:
2722 (1) "Boundary of a resort building" means the physical boundary of the [
2723 property reasonably related to a resort building and any structure or improvement to that land
2724 as determined by the commission.
2725 (2) "Dwelling" means a portion of a resort building:
2726 (a) owned by one or more individuals;
2727 (b) that is used or designated for use as a residence by one or more persons; and
2728 (c) that may be rented, loaned, leased, or hired out for a period of no longer than 30
2729 consecutive days by a person who uses it for a residence.
2730 (3) "Engaged in the management of the resort" may be defined by the commission by
2731 rule.
2732 [
2733
2734 [
2735 [
2736 [
2737 [
2738
2739 [
2740
2741 [
2742 [
2743
2744 [
2745
2746 [
2747 [
2748
2749 [
2750 (a) owns a dwelling located within a resort building; or
2751 (b) rents lodging accommodations for 30 consecutive days or less from:
2752 (i) an owner of a dwelling described in Subsection [
2753 (ii) the resort licensee.
2754 [
2755 (a) on which is located one resort building; and
2756 (b) that is affiliated with a ski area that physically touches the boundary of the resort
2757 building.
2758 [
2759 (a) that is primarily operated to provide dwellings or lodging accommodations;
2760 (b) that has at least 150 units that consist of a dwelling or lodging accommodations;
2761 (c) that consists of at least 400,000 square feet:
2762 (i) including only the building itself; and
2763 (ii) not including areas such as above ground surface parking; and
2764 (d) of which at least 50% of the units described in Subsection [
2765 dwellings owned by a person other than the resort licensee.
2766 [
2767
2768 [
2769 [
2770 [
2771 [
2772 [
2773 [
2774 [
2775 [
2776
2777
2778 Section 35. Section 32B-8-201 is amended to read:
2779 32B-8-201. Commission's power to issue a resort license.
2780 (1) Before a person as a resort under a single license may store, sell, offer for sale,
2781 furnish, or allow the consumption of an alcoholic product on sublicense premises, the person
2782 shall first obtain a resort license from the commission in accordance with this part.
2783 (2) (a) The commission may issue to a person a resort license to allow the storage, sale,
2784 offer for sale, furnishing, and consumption of an alcoholic product in connection with a resort
2785 designated in the resort license if the person operates at least four sublicenses under the resort
2786 license.
2787 (b) A resort license shall:
2788 (i) consist of:
2789 (A) a general resort license; and
2790 (B) [
2791 (ii) designate the boundary of the resort building.
2792 (c) This chapter does not prohibit an alcoholic product in or on the boundary of the
2793 resort building to the extent otherwise permitted by this title.
2794 [
2795 (3) [
2796 time totals more than four.
2797 [
2798
2799
2800 [
2801
2802
2803
2804
2805
2806 Section 36. Section 32B-8-202 is amended to read:
2807 32B-8-202. Specific licensing requirements for resort license.
2808 (1) To obtain a resort license, in addition to complying with Chapter 5, Part 2, Retail
2809 Licensing Process, a person shall submit with the person's written application:
2810 [
2811
2812 [
2813 (i) of proximity of the resort building to any community location[
2814
2815 (ii) that each [
2816 within the boundaries of the resort building; and
2817 (iii) that the building designated in the application as the resort building qualifies as a
2818 resort building; and
2819 [
2820 [
2821
2822 [
2823 [
2824
2825 [
2826
2827
2828 [
2829
2830
2831 (2) (a) A resort license expires on October 31 of each year.
2832 (b) To renew a person's resort license, the person shall comply with the requirements of
2833 Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
2834 (3) (a) The nonrefundable application fee for a resort license is $300.
2835 (b) The initial license fee for a resort license is calculated as follows:
2836 (i) [
2837 or
2838 (ii) if more than four sublicenses are being applied for under the resort license, the sum
2839 of:
2840 (A) $10,000; and
2841 (B) $2,000 for each sublicense in excess of four sublicenses for which the person is
2842 applying.
2843 (c) The renewal fee for a resort license is $1,000 for each sublicense under the resort
2844 license.
2845 (4) (a) The bond amount required for a resort license is the penal sum of $25,000.
2846 (b) A resort licensee is not required to have a separate bond for each sublicense, except
2847 that the aggregate of the bonds posted by the resort licensee shall cover each sublicense under
2848 the resort license.
2849 (5) The commission may not issue a resort license for a resort building that does not
2850 meet the proximity requirements of Section 32B-1-202.
2851 (6) In accordance with Subsection 32B-8d-103(4), a resort licensee may request to add
2852 a sublicense after the commission issues the resort licensee's resort license.
2853 Section 37. Section 32B-8-401 is amended to read:
2854 32B-8-401. Specific operational requirements for resort license.
2855 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2856 Requirements, a resort licensee, staff of the resort licensee, and a sublicensee or a person
2857 otherwise operating under a sublicense shall comply with this section.
2858 (b) Subject to Section 32B-8-502, failure to comply as provided in Subsection (1)(a)
2859 may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
2860 Enforcement Act, against:
2861 (i) [
2862 (ii) individual staff of [
2863 (iii) a sublicensee or person otherwise operating under a sublicense of the resort
2864 licensee;
2865 (iv) individual staff of a sublicensee or person otherwise operating under a sublicense
2866 of the resort licensee; or
2867 (v) any combination of the persons listed in [
2868 (1)(b)(i) through (iv).
2869 (2) (a) A resort licensee may not sell, offer for sale, or furnish an alcoholic product
2870 except:
2871 (i) on [
2872 (ii) pursuant to a permit issued under this title; or
2873 (iii) under a package agency agreement with the department, subject to Chapter 2, Part
2874 6, Package Agency.
2875 (b) A resort licensee who sells, offers for sale, or furnishes an alcoholic product as
2876 provided in Subsection (2)(a), shall sell, offer for sale, or furnish the alcoholic product:
2877 (i) if on a sublicense premises, in accordance with the operational requirements [
2878
2879 in Section 32B-8d-104;
2880 (ii) if under a permit issued under this title, in accordance with the operational
2881 requirements under the provisions applicable to the permit; and
2882 (iii) if as a package agency, in accordance with the contract with the department and
2883 Chapter 2, Part 6, Package Agency.
2884 [
2885
2886 [
2887 aggregate of the gross receipts related to the sale of food or beverages for the resort license and
2888 each of [
2889 (a) mix for an alcoholic product; and
2890 (b) a charge in connection with the service of an alcoholic product.
2891 [
2892 offer for sale, or furnishing of an alcoholic product under a resort license.
2893 (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
2894 under a resort license shall complete the alcohol training and education seminar.
2895 [
2896 resort licensee shall be provided in person by staff of [
2897 occupant in the lodging accommodation.
2898 (b) An alcoholic product may not be left outside a lodging accommodation for retrieval
2899 by an occupant.
2900 Section 38. Section 32B-8-501 is amended to read:
2901 32B-8-501. Enforcement of qualifications for resort license or sublicense.
2902 (1) The commission or department may not take an action described in Subsection (2)
2903 with regard to a resort license unless the person who is found not to meet the qualifications of
2904 [
2905 management of the resort:
2906 (a) a partner;
2907 (b) a managing agent;
2908 (c) a manager;
2909 (d) an officer;
2910 (e) a director;
2911 (f) a stockholder who holds at least 20% of the total issued and outstanding stock of the
2912 corporation;
2913 (g) a member who owns at least 20% of the limited liability company; or
2914 (h) a person employed to act in a supervisory or managerial capacity for the resort
2915 licensee.
2916 (2) Subsection (1) applies to:
2917 (a) the commission immediately suspending or revoking a resort license, if after the
2918 day on which the resort license is issued, a person described in Subsection [
2919 32B-1-304(7)(a):
2920 (i) is found to have been convicted of an offense described in Subsection
2921 32B-1-304(1)(a) before the commission issues the resort license [
2922 (ii) on or after the day on which the commission issues the resort license [
2923 (A) is convicted of an offense described in Subsection 32B-1-304(1)(a)(i) or (ii); or
2924 (B) (I) is convicted of driving under the influence of alcohol, a drug, or the combined
2925 influence of alcohol and a drug; and
2926 (II) was convicted of driving under the influence of alcohol, a drug, or the combined
2927 influence of alcohol and a drug within five years before the day on which the person is
2928 convicted of the offense described in Subsection (2)(b)(ii)(A);
2929 (b) the director taking an emergency action by immediately suspending the operation of
2930 a resort license in accordance with Title 63G, Chapter 4, Administrative Procedures Act, for
2931 the period during which the criminal matter is being adjudicated if a person described in
2932 Subsection [
2933 (i) is arrested on a charge for an offense described in Subsection 32B-1-304(1)(a)(i) or
2934 (ii); or
2935 (ii) (A) is arrested on a charge for the offense of driving under the influence of alcohol,
2936 a drug, or the combined influence of alcohol and a drug; and
2937 (B) was convicted of driving under the influence of alcohol, a drug, or the combined
2938 influence of alcohol and a drug within five years before the day on which the person is arrested
2939 on a charge described in Subsection (2)(b)(ii)(A); and
2940 (c) the commission suspending or revoking a resort license because a person to whom
2941 the commission issues a resort license [
2942 qualifications required by this title for obtaining the resort license.
2943 (3) This section does not prevent the commission from suspending or revoking a
2944 sublicense that is part of a resort license if a person employed to act in a supervisory or
2945 managerial capacity for a sublicense no longer meets the qualification requirements in the
2946 provisions applicable to the sublicense.
2947 Section 39. Section 32B-8-502 is amended to read:
2948 32B-8-502. Enforcement of operational requirements for resort license or
2949 sublicense.
2950 (1) (a) Except as provided in Subsection (2) [
2951 by a person described in Subsection (1)(b) to comply with this chapter or [
2952
2953 result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
2954 Enforcement Act, against:
2955 (i) a resort licensee;
2956 (ii) individual staff of a resort licensee;
2957 (iii) a sublicense or person otherwise operating under a sublicense;
2958 (iv) individual staff of a sublicense or person otherwise operating under a sublicense;
2959 or
2960 (v) any combination of the persons listed in [
2961 (1)(a)(i) through (iv).
2962 (b) This Subsection (1) applies to:
2963 (i) a resort licensee;
2964 (ii) a sublicense or person operating under a sublicense of a resort license; or
2965 (iii) staff of a resort licensee or sublicensee or other person operating under a
2966 sublicense of a resort license.
2967 (2) (a) Notwithstanding the other provisions of this title, if the failure to comply with
2968 this chapter described in Subsection (1) relates to a sale, offer for sale, or furnishing of an
2969 alcoholic product on [
2970 member of the resort licensee's management personnel is subject to a sanction described in
2971 Subsection (1), only if the commission finds that:
2972 (i) during the three years before the day on which the commission makes the finding,
2973 there are three or more disciplinary proceedings against any sublicensee or person operating
2974 under a sublicense of the resort licensee for failure to comply with an operational requirement
2975 applicable to the sublicense; and
2976 (ii) the resort licensee has not taken reasonable steps to prevent persons operating
2977 under a sublicense of the resort licensee from failing to comply with operational requirements
2978 applicable to the sublicense.
2979 (b) This Subsection (2) applies if the three or more disciplinary proceedings described
2980 in Subsection (2)(a) are against:
2981 (i) the same person operating under a sublicense of the resort licensee; or
2982 (ii) two or more different persons operating under a sublicense of the resort licensee.
2983 [
2984
2985 Section 40. Section 32B-8a-101 is amended to read:
2986
2987 32B-8a-101. Title.
2988 This chapter is known as the "Transfer of [
2989 Section 41. Section 32B-8a-102 is amended to read:
2990 32B-8a-102. Definitions.
2991 As used in this chapter:
2992 (1) "Alcohol license" means:
2993 (a) a retail license;
2994 (b) an off-premise beer retailer state license;
2995 (c) a brewery manufacturing license;
2996 (d) a distillery manufacturing license;
2997 (e) a winery manufacturing license; and
2998 (f) a special use permit that is an industrial or manufacturing use permit.
2999 [
3000 sole proprietorship, or similar entity.
3001 [
3002 [
3003 after the transfer of the [
3004 under this chapter.
3005 [
3006
3007 transfer [
3008 Section 42. Section 32B-8a-201 is amended to read:
3009 32B-8a-201. Transferability of alcohol license.
3010 (1) (a) [
3011 alcohol licensee.
3012 (b) Notwithstanding Subsection (1)(a), the Legislature may terminate or modify the
3013 existence of any type of [
3014 (c) Except as provided in this chapter, a person may not:
3015 (i) transfer [
3016 (ii) sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the
3017 [
3018 (d) If approved by the commission and subject to the requirements of this chapter, [
3019
3020 (i) from the [
3021 alcohol license is for the same premises; and
3022 (ii) from one premises of the [
3023 alcohol licensee.
3024 (2) (a) The commission may not approve the transfer of [
3025 that results in a transferee holding a different type of [
3026 transferor.
3027 (b) [
3028 not approve the transfer of [
3029 the location of the premises to which the [
3030 different county than the location of the licensed premises of the [
3031 transferred.
3032 (3) The commission may not approve the transfer of [
3033 transferee:
3034 (a) is not eligible to hold the same type of [
3035 license to be transferred at the premises to which the [
3036 transferred; or
3037 (b) is delinquent in the payment of any of the following that arises in full or in part out
3038 of the operation of a [
3039 (i) a tax, fee, or charge due under this title or Title 59, Revenue and Taxation; or
3040 (ii) an amount due under Title 35A, Chapter 4, Employment Security Act.
3041 (4) This chapter does not apply to a:
3042 (a) master full-service restaurant license; [
3043 (b) master limited-service restaurant license[
3044 (c) master off-premise beer retailer state license.
3045 Section 43. Section 32B-8a-202 is amended to read:
3046 32B-8a-202. Effect of transfer of ownership of business entity.
3047 (1) (a) When the ownership of 51% or more of the shares of stock of a corporation is
3048 acquired by or transferred to one or more persons who did not hold the ownership of 51% of
3049 those shares of stock on the date [
3050 corporation shall comply with this chapter to transfer the [
3051 corporation as if the corporation is newly constituted.
3052 (b) When there is a new general partner or when the ownership of 51% or more of the
3053 capital or profits of a limited partnership is acquired by or transferred to one or more persons as
3054 general or limited partners and who did not hold ownership of 51% or more of the capital or
3055 profits of the limited partnership on the date [
3056 partnership, the limited partnership shall comply with this chapter to transfer the [
3057 alcohol license to the limited partnership as if the limited partnership is newly constituted.
3058 (c) When the ownership of 51% or more of the interests in a limited liability company
3059 is acquired by or transferred to one or more persons as members who did not hold ownership of
3060 51% or more of the interests in the limited liability company on the date [
3061 license is issued to the limited liability company, the limited liability company shall comply
3062 with this chapter to transfer the [
3063 limited liability company is newly constituted.
3064 (2) A business entity shall comply with this section within 60 days after the day on
3065 which the event described in Subsection (1) occurs.
3066 Section 44. Section 32B-8a-203 is amended to read:
3067 32B-8a-203. Operational requirements for transferee.
3068 (1) (a) A transferee shall begin operations of the [
3069 [
3070 (i) the department may grant an extension of this time period not to exceed 30 days;
3071 and
3072 (ii) after the extension is authorized by the department under Subsection (1)(a)(i), the
3073 commission may grant one or more additional extensions not to exceed, in the aggregate, seven
3074 months from the day on which the commission approves the transfer, if the transferee can
3075 demonstrate to the commission that the transferee:
3076 (A) cannot begin operations because the transferee is improving the licensed premises;
3077 (B) has obtained a building permit for the improvements described in Subsection
3078 (1)(a)(ii)(A); and
3079 (C) is working expeditiously to complete the improvements to the licensed premises.
3080 (b) A transferee is considered to have begun operations of the [
3081 the transferee:
3082 (i) has a licensed premises that is open for business;
3083 (ii) (A) sells, offers for sale, or furnishes alcoholic products to a patron on the licensed
3084 premises described in Subsection (1)(b)(i); [
3085 (B) manufactures an alcoholic product on the licensed premises described in
3086 Subsection (1)(b)(i); or
3087 (C) engages in an industrial or manufacturing pursuit containing alcohol on the
3088 licensed premises described in Subsection (1)(b)(i); and
3089 [
3090 (2) If a transferee fails to begin operations of the [
3091 period required by Subsection (1), the following are automatically forfeited effective
3092 immediately:
3093 (a) the [
3094 (b) the [
3095 (3) A transferee shall begin operations of the [
3096 which the transfer applies before the transferee may seek a transfer of the [
3097 license to a different location.
3098 (4) Notwithstanding Subsection (1), the commission may not issue a conditional
3099 license unless the requirements of Section 32B-5-205 are met, except that the time periods
3100 required by this section supersede the time period provided in Section 32B-5-205.
3101 Section 45. Section 32B-8a-302 is amended to read:
3102 32B-8a-302. Application -- Approval process.
3103 (1) To obtain the transfer of [
3104 licensee, the transferee shall file a transfer application with the department that includes:
3105 (a) an application in the form provided by the department;
3106 (b) a statement as to whether the consideration, if any, to be paid to the transferor
3107 includes payment for transfer of the [
3108 (c) a statement executed under penalty of perjury that the consideration as set forth in
3109 the escrow agreement required by Section 32B-8a-401 is deposited with the escrow holder; and
3110 (d) (i) an application fee of $300; and
3111 (ii) a transfer fee determined in accordance with Section 32B-8a-303.
3112 (2) If the intended transfer of [
3113 least 10 days before the commission may approve the transfer, the department shall post a
3114 notice of the intended transfer on the Public Notice Website created in Section 63F-1-701 that
3115 states the following:
3116 (a) the name of the transferor;
3117 (b) the name and address of the business currently associated with the [
3118 license;
3119 (c) instructions for filing a claim with the escrow holder; and
3120 (d) the projected date that the commission may consider the transfer application.
3121 (3) (a) (i) Before the commission may approve the transfer of [
3122 license, the department shall conduct an investigation and may hold public hearings to gather
3123 information and make recommendations to the commission as to whether the transfer of the
3124 [
3125 (ii) The department shall forward the information and recommendations described in
3126 this Subsection (3)(a) to the commission to aid in the commission's determination.
3127 (b) Before approving a transfer, the commission shall:
3128 (i) determine that the transferee filed a complete application;
3129 (ii) determine that the transferee is eligible to hold the type of [
3130 that is to be transferred at the premises to which the [
3131 transferred;
3132 (iii) determine that the transferee is not delinquent in the payment of an amount
3133 described in Subsection 32B-8a-201(3);
3134 (iv) determine that the transferee is not disqualified under Section 32B-1-304;
3135 (v) consider the locality within which the proposed licensed premises is located,
3136 including:
3137 (A) the factors listed in Section 32B-5-203 for the issuance of a retail license;
3138 (B) the factors listed in Section 32B-7-404 for the issuance of an off-premise beer
3139 retailer state license;
3140 (C) the factors listed in Section 32B-11-206 for the issuance of a manufacturing
3141 license; and
3142 (D) the factors listed in Section 32B-10-204 for the issuance of a special use permit
3143 that is an industrial and manufacturing use permit;
3144 (vi) consider the transferee's ability to manage and operate the retail license to be
3145 transferred, including:
3146 (A) the factors listed in Section 32B-5-203 for the issuance of a retail license;
3147 (B) the factors listed in Section 32B-7-404 for the issuance of an off-premise beer
3148 retailer state license;
3149 (C) the factors listed in Section 32B-11-206 for the issuance of a manufacturing
3150 license; and
3151 (D) the factors listed in Section 32B-10-204 for the issuance of a special use permit
3152 that is an industrial and manufacturing use permit;
3153 (vii) consider the nature or type of [
3154 including:
3155 (A) the factors listed in Section 32B-5-203 for the issuance of a retail license;
3156 (B) the factors listed in Section 32B-7-404 for the issuance of an off-premise beer
3157 retailer state license;
3158 (C) the factors listed in Section 32B-11-206 for the issuance of a manufacturing
3159 license; and
3160 (D) the factors listed in Section 32B-10-204 for the issuance of a special use permit
3161 that is an industrial and manufacturing use permit;
3162 (viii) if the transfer involves consideration, determine that the transferee and transferor
3163 have complied with Part 4, Protection of Creditors; and
3164 (ix) consider any other factor the commission considers necessary.
3165 (4) Except as otherwise provided in Section 32B-1-202, the commission may not
3166 approve the transfer of [
3167 requirements of Subsection 32B-1-202(2), Section 32B-7-201, or Section 32B-11-210, as
3168 applicable.
3169 Section 46. Section 32B-8a-303 is amended to read:
3170 32B-8a-303. Transfer fees.
3171 (1) Except as otherwise provided in this section, the department shall charge the
3172 following transfer fees:
3173 (a) for a transfer of [
3174 another person, the transfer fee equals the initial license fee amount specified in the relevant
3175 chapter or part [
3176 license that is being transferred;
3177 (b) for the transfer of [
3178 premises of the same [
3179 specified in the relevant chapter or part [
3180 type of [
3181 (c) subject to Subsections (1)(d) and (2), for a transfer described in Section
3182 32B-8a-202, the transfer fee equals the renewal fee amount specified in the relevant chapter or
3183 part [
3184 is being transferred;
3185 (d) for a transfer of [
3186
3187 one-half of the amount described in Subsection (1)(a); and
3188 (e) for one of the following transfers, the transfer fee is one-half of the amount
3189 described in Subsection (1)(a):
3190 (i) [
3191 application is made before the entry of a final decree of divorce;
3192 (ii) [
3193 (A) the one or more surviving partners of the deceased [
3194 (B) the executor, administrator, or conservator of the estate of the deceased [
3195 alcohol licensee; or
3196 (C) the surviving spouse of the deceased [
3197 [
3198 (iii) [
3199 conservator or guardian for the incompetent person or conservatee who is the [
3200 licensee;
3201 (iv) [
3202 bankrupt estate of the [
3203 (v) [
3204 be transferred by or to a receiver of the estate of the [
3205 (vi) [
3206 assignee for the benefit of creditors of a licensee with the consent of the assignor;
3207 (vii) [
3208 alcohol licensee is the trustee of the revocable living trust;
3209 (viii) [
3210 being licensed;
3211 (ix) [
3212 shares of stock are owned by the same individuals;
3213 (x) upon compliance with Section 32B-8a-202, [
3214 corporation whose entire stock is owned by:
3215 (A) the transferor; or
3216 (B) the spouse of the transferor;
3217 (xi) upon compliance with Section 32B-8a-202, [
3218 liability company whose entire membership consists of:
3219 (A) the transferor; or
3220 (B) the spouse of the transferor; or
3221 (xii) [
3222 or whose spouse owns, the entire stock of the corporation.
3223 (2) If there are multiple and simultaneous transfers of [
3224 Section 32B-8a-202, a transfer fee described in Subsection (1)(c) is required for only one of the
3225 [
3226 (3) (a) Except as provided in Subsection (3)(b), a transfer fee required under
3227 Subsection (1) is due for a transfer subsequent to a transfer under Subsection (1)(e)(xii) if the
3228 subsequent transfer is of 51% of the stock in a corporation to which [
3229 is transferred by [
3230 (b) If the transfer of stock described in Subsection (3)(a) is from a parent to the parent's
3231 adult child or adult grandchild, the transfer fee is one-half of the amount described in
3232 Subsection (1)(a).
3233 (4) Money collected from a transfer fee shall be deposited in the Liquor Control Fund.
3234 Section 47. Section 32B-8a-401 is amended to read:
3235 32B-8a-401. Notification of creditors -- Escrow -- Priority of payments.
3236 (1) Before the filing of a transfer application with the department, if the intended
3237 transfer of [
3238 (a) the transferor shall provide the transferee a list of creditors who have a claim
3239 against the transferor;
3240 (b) the transferee shall notify each creditor on the list provided under Subsection (1)(a)
3241 of the intended transfer;
3242 (c) the transferor and the transferee shall establish an escrow with a person who is not a
3243 party to the transfer to act as escrow holder;
3244 (d) the transferee shall deposit with the escrow holder the full amount of the
3245 consideration; and
3246 (e) the transferor and transferee shall enter into an agreement that:
3247 (i) the consideration is deposited with the escrow holder;
3248 (ii) requires the escrow holder to distribute the consideration within a reasonable time
3249 after the completion of the transfer of the [
3250 (iii) directs the escrow holder to distribute the consideration in accordance with
3251 Subsection (2).
3252 (2) Subject to the other requirements of this section, if a creditor with a claim against
3253 the transferor files the claim with the escrow holder before the escrow holder is notified by the
3254 department that the transfer is approved, the escrow holder shall distribute the consideration in
3255 the following order:
3256 (a) to the payment of:
3257 (i) the United States for a claim based on income or withholding taxes; and
3258 (ii) a claim based on a tax other than specified in Subsection 32B-8a-201(3);
3259 (b) to the payment of a claim for wages, salaries, or fringe benefits earned or accrued
3260 by an employee of the transferor before the transfer or opening of the escrow for the transfer of
3261 the [
3262 (c) to the payment of a claim of a secured creditor to the extent of the proceeds that
3263 arise from the sale of the security;
3264 (d) to the payment of a claim on a mechanics lien;
3265 (e) to the payment of:
3266 (i) escrow fees;
3267 (ii) a claim for prevailing brokerage fees for services rendered; and
3268 (iii) a claim for reasonable attorney fees for services rendered;
3269 (f) to the payment of claims:
3270 (i) of a landlord, to the extent of proceeds on past due rent or lease requirements;
3271 (ii) for goods sold and delivered to the [
3272 transferor's licensed premises; and
3273 (iii) for services rendered, performed, or supplied in connection with the operation of
3274 the transferor's licensed business;
3275 (g) to the payment of other types of claims that are reduced to court-ordered judgments,
3276 including a claim for court-ordered support of a minor child; and
3277 (h) to the payment of all other claims.
3278 Section 48. Section 32B-8a-402 is amended to read:
3279 32B-8a-402. Duties of escrow holder.
3280 (1) To act as an escrow holder under Section 32B-8a-401, a person shall comply with
3281 Title 7, Chapter 22, Regulation of Independent Escrow Agents.
3282 (2) Not more than 10 days after [
3283 receives a claim from a creditor, an escrow holder shall acknowledge receipt of the claim.
3284 (3) (a) Not more than 10 days after [
3285 transferred and before the distribution of the consideration held by an escrow holder, the
3286 escrow holder shall advise each creditor who files a claim against the escrow whether there is
3287 sufficient consideration in the escrow to pay all creditors in full.
3288 (b) If the consideration in an escrow is sufficient to pay all creditors in full, the escrow
3289 holder shall advise each creditor of the date on or before which payment will be made.
3290 (c) If there are not sufficient assets to pay all creditors in full, the escrow holder shall
3291 advise each creditor who filed a claim of the following:
3292 (i) the total assets placed in escrow with the escrow holder;
3293 (ii) the nature of each asset;
3294 (iii) the name of each creditor who filed a claim against the escrow and the amount of
3295 the claim;
3296 (iv) the amount the escrow holder proposes to pay each creditor; and
3297 (v) the date on or before which the escrow holder will pay each creditor.
3298 (4) An escrow holder may not release money in the escrow in exchange for:
3299 (a) a promissory note; or
3300 (b) any other consideration of less value to the creditors than the money exchanged.
3301 (5) If sufficient assets are not available in the escrow for the payment of the claims in
3302 full, the escrow holder shall pay the claims pro rata.
3303 (6) If the [
3304 claim, the escrow holder shall:
3305 (a) notify the creditor making the claim;
3306 (b) retain the amount to be paid to the creditor under this section for a period of 25
3307 days; and
3308 (c) to the extent that creditors do not successfully recover the amount described in
3309 Subsection (6)(b) in accordance with this part, pay the amount to the [
3310 (7) An escrow holder shall distribute the money in the escrow account after the
3311 payments made under Subsections 32B-8a-401(2) and this section within a reasonable time
3312 after the completion of the transfer of the [
3313 Section 49. Section 32B-8a-404 is amended to read:
3314 32B-8a-404. When escrow not required.
3315 (1) Notwithstanding the other provisions of this part, an escrow is not required to be
3316 established in connection with the transfer of [
3317 (a) a business entity files with the department a guaranty of full, prompt, and faithful
3318 payment of all claims of a creditor of the [
3319 (b) the guaranty described in Subsection (1)(a) is accepted in writing by the creditors
3320 listed in Subsection 32B-8a-401(2).
3321 (2) A transfer of [
3322 considered complete until:
3323 (a) the guarantor pays all creditors' claims in full; and
3324 (b) the guarantor files with the department a statement executed under penalty of
3325 perjury that all conditions of the transfer have been satisfied.
3326 (3) Payment of a claim by a guarantor shall be made in United States currency or by
3327 certified check in a manner acceptable to the creditors.
3328 (4) This section applies only in the case of a transfer in which the guarantor business
3329 entity has a net worth on a consolidated basis, according to [
3330 most recent audited financial statement, of not less than $5,000,000.
3331 Section 50. Section 32B-8a-501 is amended to read:
3332 32B-8a-501. License not to be pledged as security -- Prohibited transfers.
3333 (1) [
3334 [
3335 for the fulfillment of any agreement.
3336 (2) [
3337 transfer is to:
3338 (a) satisfy a loan or to fulfill an agreement entered into more than 90 days [
3339
3340 (b) gain or establish a preference to or for any creditor of the transferor, except as
3341 provided by Section 32B-8a-202; or
3342 (c) defraud or injure a creditor of the transferor.
3343 (3) An alcohol licensee may not transfer a bar establishment license in a manner that
3344 circumvents the limitations of Subsection 32B-8d-103(3)(b) or (c).
3345 [
3346 except in accordance with this chapter.
3347 Section 51. Section 32B-8a-502 is amended to read:
3348 32B-8a-502. Effect of transfer in violation of this chapter.
3349 (1) If [
3350 commission may:
3351 (a) void the transfer; and
3352 (b) require the [
3353 (2) Subsection (1) is in addition to any other penalty under this title that is applicable to
3354 the person who violates this chapter.
3355 Section 52. Section 32B-8b-102 is amended to read:
3356 32B-8b-102. Definitions.
3357 As used in this chapter:
3358 (1) "Boundary of a hotel" means the physical boundary of one or more contiguous
3359 parcels of real [
3360 located.
3361 (2) "Hotel" means one or more buildings that:
3362 (a) comprise a hotel, as defined by the commission;
3363 (b) are owned or managed by the same person or by a person who has a majority
3364 interest in or can direct or exercise control over the management or policy of the person who
3365 owns or manages any other building under the hotel license within the boundary of the hotel;
3366 (c) primarily operate to provide lodging accommodations;
3367 (d) provide room service within the boundary of the hotel meeting the requirements of
3368 this title;
3369 (e) have on-premise banquet space and provide on-premise banquet service within the
3370 boundary of the hotel meeting the requirements of this title;
3371 (f) have a restaurant or bar establishment within the boundary of the hotel meeting the
3372 requirements of this title; and
3373 (g) have at least 40 [
3374 compensation.
3375 [
3376 [
3377
3378 [
3379
3380 [
3381 [
3382
3383 [
3384
3385 [
3386
3387 [
3388 [
3389 [
3390 [
3391 [
3392 [
3393 [
3394 [
3395
3396
3397 Section 53. Section 32B-8b-201 is amended to read:
3398 32B-8b-201. Commission's power to issue a hotel license.
3399 (1) Before a person as a hotel under a single license may store, sell, offer for sale,
3400 furnish, or allow the consumption of an alcoholic product on sublicense premises, the person
3401 shall first obtain a hotel license from the commission in accordance with this part.
3402 (2) (a) The commission may issue to a person a hotel license to allow the storage, sale,
3403 offer for sale, furnishing, and consumption of an alcoholic product in connection with a hotel
3404 designated in the hotel license if the person operates at least three sublicenses under the hotel
3405 license:
3406 (i) one of which is an on-premise banquet license; and
3407 (ii) one of which is [
3408 (A) a full-service restaurant sublicense;
3409 (B) a limited-service restaurant sublicense;
3410 (C) a beer-only restaurant sublicense; or
3411 (D) a bar establishment sublicense.
3412 (b) A hotel license shall:
3413 (i) consist of:
3414 (A) a general hotel license; and
3415 (B) three or more sublicenses meeting the requirements of Subsection (2)(a); and
3416 (ii) designate the boundary of the hotel and sublicenses.
3417 (c) This chapter does not prohibit an alcoholic product on the boundary of the hotel to
3418 the extent otherwise permitted by this title.
3419 [
3420 (3) [
3421 totals more than 80.
3422 [
3423
3424
3425 [
3426
3427
3428
3429
3430
3431 [
3432
3433 Section 54. Section 32B-8b-202 is amended to read:
3434 32B-8b-202. Specific licensing requirements for hotel license.
3435 (1) To obtain a hotel license, in addition to complying with Chapter 5, Part 2, Retail
3436 Licensing Process, a person shall submit with the person's written application:
3437 [
3438
3439 [
3440 (i) of proximity of each building under the hotel license to any community location[
3441
3442 (ii) that each [
3443 entirely within the boundary of the hotel; and
3444 (iii) that [
3445 license qualifies to be under the hotel license; and
3446 [
3447 [
3448
3449 [
3450 [
3451
3452 [
3453
3454
3455 [
3456
3457
3458 (2) (a) A hotel license expires on October 31 of each year.
3459 (b) To renew a person's hotel license, the person shall comply with the requirements of
3460 Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
3461 (3) (a) The nonrefundable application fee for a hotel license is $500.
3462 (b) The initial license fee for a hotel license is calculated as follows:
3463 (i) [
3464 (ii) if more than three sublicenses are being applied for under the hotel license, the sum
3465 of:
3466 (A) $5,000; and
3467 (B) $2,000 for each sublicense in excess of three sublicenses for which the person is
3468 applying.
3469 (c) The renewal fee for a hotel license is $1,000 for each sublicense under the hotel
3470 license.
3471 (4) (a) The bond amount required for a hotel license is the penal sum of $10,000.
3472 (b) A hotel licensee is not required to have a separate bond for each sublicense, except
3473 that the aggregate of the bonds posted by the hotel licensee shall cover each sublicense under
3474 the hotel license.
3475 (5) The commission may not issue a hotel license that includes a building under the
3476 hotel license that does not meet the proximity requirements of Section 32B-1-202.
3477 (6) In accordance with Subsection 32B-8d-103(4), a hotel licensee may request to add a
3478 sublicense after the commission issues the hotel licensee's hotel license.
3479 Section 55. Section 32B-8b-301 is amended to read:
3480 32B-8b-301. Specific operational requirements for hotel license.
3481 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3482 Requirements, a hotel licensee, staff of the hotel licensee, and a sublicensee or person
3483 otherwise operating under a sublicense shall comply with this section.
3484 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
3485 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3486 (i) [
3487 (ii) individual staff of [
3488 (iii) a sublicensee or person otherwise operating under a sublicense of the hotel
3489 licensee;
3490 (iv) individual staff of a sublicensee or person otherwise operating under a sublicense
3491 of the hotel licensee; or
3492 (v) any combination of the persons listed in this Subsection (1)(b).
3493 (2) (a) A hotel licensee may not sell, offer for sale, or furnish an alcoholic product
3494 except:
3495 (i) on [
3496 (ii) pursuant to a permit issued under this title; or
3497 (iii) under a package agency agreement with the department, subject to Chapter 2, Part
3498 6, Package Agency.
3499 (b) A hotel licensee who sells, offers for sale, or furnishes an alcoholic product as
3500 provided in Subsection (2)(a) shall sell, offer for sale, or furnish the alcoholic product:
3501 (i) [
3502 premises, in accordance with the operational requirements [
3503
3504 (ii) if under a permit issued under this title, in accordance with the operational
3505 requirements under the provisions applicable to the permit; and
3506 (iii) if as a package agency, in accordance with the contract with the department and
3507 Chapter 2, Part 6, Package Agency.
3508 (c) Notwithstanding the other provisions of this Subsection (2), a hotel licensee may
3509 not permit a patron to carry an alcoholic product off the premises of a sublicense in violation of
3510 Section 32B-5-307 or off an area designated under a permit.
3511 [
3512
3513 [
3514 for sale, or furnishing of an alcoholic product under a hotel license.
3515 [
3516 hotel licensee shall be provided in person by staff of [
3517 occupant in the lodging accommodation.
3518 (b) An alcoholic product may not be left outside a lodging accommodation for retrieval
3519 by an occupant.
3520 [
3521 aggregate of the gross receipts related to the sale of food or beverages for the hotel license and
3522 each of the hotel license's sublicenses is from the sale of food, not including:
3523 (a) mix for an alcoholic product; and
3524 (b) a charge in connection with the service of an alcoholic product.
3525 Section 56. Section 32B-8b-401 is amended to read:
3526 32B-8b-401. Enforcement of operational requirements for hotel license or
3527 sublicense.
3528 [
3529 chapter or [
3530 8d, Sublicense Act, may result in disciplinary action in accordance with Chapter 3, Disciplinary
3531 Actions and Enforcement Act, against:
3532 [
3533 [
3534 [
3535 licensee;
3536 [
3537 sublicense of the hotel licensee; or
3538 [
3539 [
3540 [
3541 [
3542 [
3543 sublicense of a hotel licensee.
3544 [
3545
3546 Section 57. Section 32B-8c-101 is enacted to read:
3547
3548 32B-8c-101. Title.
3549 This chapter is known as the "Arena License Act."
3550 Section 58. Section 32B-8c-102 is enacted to read:
3551 32B-8c-102. Definitions.
3552 Reserved
3553 Section 59. Section 32B-8c-201 is enacted to read:
3554 32B-8c-201. Commission's power to issue an arena license.
3555 (1) Before a person as an arena under a single license may store, sell, offer for sale,
3556 furnish, or allow the consumption of an alcoholic product on sublicensed premises, the person
3557 shall first obtain an arena license from the commission in accordance with this part.
3558 (2) (a) Beginning November 1, 2020, the commission may issue to a person an arena
3559 license to allow the storage, sale, offer for sale, furnishing, and consumption of an alcoholic
3560 product in connection with the arena designated in the arena license, if the person operates at
3561 least three sublicenses under the arena license, including:
3562 (i) one of which is an on-premise banquet sublicense;
3563 (ii) one of which is:
3564 (A) a full-service restaurant sublicense;
3565 (B) a limited-service restaurant sublicense;
3566 (C) a beer-only restaurant sublicense; or
3567 (D) a bar establishment sublicense; and
3568 (iii) one of which is an on-premise beer retailer sublicense that is not a tavern.
3569 (b) An arena license shall:
3570 (i) consist of:
3571 (A) a general arena license; and
3572 (B) three or more sublicenses meeting the requirements of Subsection (2)(a); and
3573 (ii) designate the enclosed building that is the arena.
3574 (c) This chapter does not prohibit an alcoholic product in an arena to the extent
3575 otherwise permitted by this title.
3576 (3) The commission may not issue a total number of arena licenses that at any time
3577 totals more than 10.
3578 Section 60. Section 32B-8c-202 is enacted to read:
3579 32B-8c-202. Specific licensing requirements for arena license.
3580 (1) To obtain an arena license, in addition to complying with Chapter 5, Part 2, Retail
3581 Licensing Process, a person shall submit with the person's written application:
3582 (a) evidence:
3583 (i) of proximity of the arena to any community location;
3584 (ii) that each proposed sublicense premises is entirely within the arena; and
3585 (iii) that the building designated in the application as the arena qualifies as an arena;
3586 and
3587 (b) a description and map of the arena.
3588 (2) (a) An arena license expires on October 31 of each year.
3589 (b) To renew a person's arena license, the person shall comply with the requirements of
3590 Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
3591 (3) (a) The nonrefundable application fee for an arena license is $500.
3592 (b) The initial license fee for an arena license is calculated as follows:
3593 (i) if the person applies for three sublicenses under the arena license, $5,000; or
3594 (ii) if the person applies for more than three sublicenses under the arena license, the
3595 sum of:
3596 (A) $5,000; and
3597 (B) $1,000 for each sublicense in excess of three sublicenses for which the person
3598 applies.
3599 (c) The renewal fee for an arena license is $1,000 plus $1,000 for each sublicense
3600 under the arena license.
3601 (4) (a) The bond amount required for an arena license is the penal sum of $100,000.
3602 (b) An arena licensee is not required to have a separate bond for each sublicense,
3603 except that the aggregate of the bonds posted by the arena licensee shall cover each sublicense
3604 under the arena license.
3605 (5) In accordance with Subsection 32B-8d-103(4), an arena may request to add a
3606 sublicense after the commission issues the arena licensee's arena license.
3607 Section 61. Section 32B-8c-301 is enacted to read:
3608 32B-8c-301. Specific operational requirements for arena license.
3609 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensing Operational
3610 Requirements, an arena licensee, staff of the arena licensee, and a sublicensee or person
3611 otherwise operating under a sublicense shall comply with this section.
3612 (b) Failure to comply as provided in Subjection (1)(a) may result in disciplinary action
3613 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3614 (i) the arena licensee;
3615 (ii) individual staff of the arena licensee;
3616 (iii) a sublicensee or person otherwise operating under a sublicense of the arena
3617 licensee;
3618 (iv) individual staff of a sublicensee or person otherwise operating under a sublicense;
3619 or
3620 (v) any combination of the persons listed in Subsections (1)(b)(i) through (iv).
3621 (2) (a) An arena licensee may not sell, offer for sale, or furnish an alcoholic product
3622 except:
3623 (i) on sublicensed premises;
3624 (ii) pursuant to a permit issued under this title; or
3625 (iii) under a package agency agreement with the department, subject to Chapter 2, Part
3626 6, Package Agency.
3627 (b) An arena licensee who sells, offers for sale, or furnishes an alcoholic product as
3628 provided in Subsection (2)(a) shall sell, offer for sale, or furnish the alcoholic product:
3629 (i) if on sublicensed premises, in accordance with the operational requirements
3630 described in Section 32B-8d-104;
3631 (ii) if under a permit issued under this title, in accordance with the operational
3632 requirements under the provisions applicable to the permit; and
3633 (iii) if as a package agency, in accordance with the contract with the department and
3634 Chapter 2, Part 6, Package Agency.
3635 (3) An arena licensee shall operate in a manner so that at least 70% of the annual
3636 aggregate of the gross receipts related to the sale of food and beverages for the arena license
3637 and each of the arena license's sublicenses is from the sale of food, not including:
3638 (a) mix for an alcoholic product; and
3639 (b) a charge in connection with the service of an alcoholic product.
3640 (4) An arena licensee shall, directly or indirectly, supervise and direct a person
3641 involved in the sale, offer for sale, or furnishing of an alcoholic product under an arena license.
3642 Section 62. Section 32B-8c-401 is enacted to read:
3643 32B-8c-401. Enforcement.
3644 (1) Failure by a person described in Subsection (2) to comply with this chapter or
3645 Chapter 8d, Sublicense Act, may result in disciplinary action in accordance with Chapter 3,
3646 Disciplinary Actions and Enforcement Act, against:
3647 (a) the arena licensee;
3648 (b) individual staff of the arena licensee;
3649 (c) a sublicensee or a person otherwise operating under a sublicense of the arena
3650 licensee;
3651 (d) individual staff of a sublicensee or person otherwise operating under a sublicense of
3652 the arena licensee; or
3653 (e) any combination of the persons listed in Subsections (1)(a) through (d).
3654 (2) Subsection (1) applies to:
3655 (a) an arena licensee;
3656 (b) a sublicensee or person operating under a sublicense of an arena licensee;
3657 (c) staff of an arena licensee or sublicensee or other person operating under a
3658 sublicense of the arena licensee.
3659 Section 63. Section 32B-8d-101 is enacted to read:
3660
3661 32B-8d-101. Title.
3662 This chapter is known as the "Sublicense Act."
3663 Section 64. Section 32B-8d-102 is enacted to read:
3664 32B-8d-102. Definitions.
3665 As used in this chapter:
3666 (1) "Resident" means the same as that term is defined in Section 32B-8-102.
3667 (2) "Resort building" means the same as that term is defined in Section 32B-8-102.
3668 (3) "Resort spa" means a spa:
3669 (a) as the commission defines by rule made in accordance with Title 63G, Chapter 3,
3670 Utah Administrative Rulemaking Act; and
3671 (b) that is within the boundary of a resort building.
3672 Section 65. Section 32B-8d-103 is enacted to read:
3673 32B-8d-103. Commission's power to issue a sublicense.
3674 (1) Before a person as a sublicensee may store, sell, offer for sale, furnish, or allow the
3675 consumption of an alcoholic product on sublicensed premises, the person shall first obtain a
3676 sublicense from the commission in accordance with:
3677 (a) this chapter;
3678 (b) Chapter 8, Resort License Act;
3679 (c) Chapter 8b, Hotel License Act; and
3680 (d) Chapter 8c, Arena License Act.
3681 (2) (a) The commission may issue to a person a sublicense to allow the storage, sale,
3682 offering for sale, furnishing, or consumption of an alcoholic product on the premises of the
3683 sublicense, if the person is:
3684 (i) a principal licensee; or
3685 (ii) a person seeking a principal license, contingent on the issuance of the principal
3686 license.
3687 (b) The commission may not:
3688 (i) issue a sublicense that is separate from a principal license; or
3689 (ii) issue a single sublicense that covers more than one outlet in or on the boundaries of
3690 the principal licensee.
3691 (3) (a) Subject to Subsections (3)(b) and (c), when determining the total number of
3692 licenses the commission has issued for each type of retail license, the commission may not
3693 include a sublicense as one of the retail licenses issued under the provisions applicable to that
3694 sublicense.
3695 (b) If a principal license includes a bar establishment sublicense that before the
3696 issuance of the principal license was a bar establishment license, the commission shall include
3697 the bar establishment sublicense as a bar establishment license in calculating the total number
3698 of licenses issued under the provisions applicable to a bar establishment license.
3699 (c) If a resort license includes a sublicense that before the issuance of the resort license
3700 was a retail license, the commission shall include the sublicense as a license in calculating the
3701 total number of licenses issued under the provisions applicable to the sublicense.
3702 (4) If a principal licensee seeks to add a sublicense after the commission issues the
3703 person's principal license, the principal licensee shall file with the department:
3704 (a) a nonrefundable $300 application fee;
3705 (b) an initial license fee of $2,250, which the commission shall refund if the
3706 commission does not issue the proposed sublicense;
3707 (c) written consent of the local authority;
3708 (d) a copy of:
3709 (i) the principal licensee's current business; and
3710 (ii) the proposed sublicensee's current business license, if the relevant political
3711 subdivision determines that the proposed sublicensee's business license is separate from the
3712 principal licensee's business license;
3713 (e) evidence that the proposed sublicensed premises is entirely within the boundary of
3714 the principal license;
3715 (f) a description, floor plan, and boundary map of the proposed sublicensed premises
3716 designating:
3717 (i) each location at which the principal licensee proposes that an alcoholic product be
3718 stored; and
3719 (ii) each location from which the principal licensee proposes that an alcoholic product
3720 be sold, furnished, or consumed;
3721 (g) evidence that the principal licensee carries:
3722 (i) public liability insurance in an amount and form satisfactory to the department; and
3723 (ii) dramshop insurance coverage in the amount required by Section 32B-5-201 that
3724 covers the proposed sublicense;
3725 (h) a signed consent form stating that the principal licensee will permit any authorized
3726 representative of the commission or department, or any law enforcement officer, to have an
3727 unrestricted right to enter the proposed sublicensed premises;
3728 (i) if the principal licensee is an entity, proper verification evidencing that a person
3729 who signs the application is authorized to sign on behalf of the entity; and
3730 (j) any other information the commission or department may require.
3731 Section 66. Section 32B-8d-104 is enacted to read:
3732 32B-8d-104. General operational requirements for a sublicense.
3733 (1) Except as provided in Subsections (2) and (3), a person operating under a
3734 sublicense is subject to the operational requirements under the provisions applicable to the
3735 sublicense.
3736 (2) Notwithstanding a requirement in the provisions applicable to the sublicense, a
3737 person operating under the sublicense is not subject to a requirement that a certain percentage
3738 of the gross receipts for the sublicense be from the sale of food, except to the extent that the
3739 gross receipts for the sublicense are included in calculating the percentages under Subsections
3740 32B-8-401(3), 32B-8b-301(7), and 32B-8c-301(3).
3741 (3) Notwithstanding Sections 32B-6-202 and 32B-6-302, a bar structure in a
3742 sublicensed premises operated under a full-service restaurant sublicense or a limited-service
3743 restaurant sublicense is considered a grandfathered bar structure if the sublicense is a
3744 sublicense to a resort license issued on or before December 31, 2010.
3745 (4) Except as provided in Section 32B-8-502, for purposes of interpreting an
3746 operational requirement imposed by the provisions applicable to a sublicense:
3747 (a) a requirement imposed on a sublicensee or person operating under a sublicense
3748 applies to the principal licensee; and
3749 (b) a requirement imposed on staff of a sublicensee or person operating under a
3750 sublicense applies to staff of the principal licensee.
3751 Section 67. Section 32B-8d-105 is enacted to read:
3752 32B-8d-105. Enforcement of operational requirements.
3753 (1) Except as provided in Subsection 32B-8-502(2) and in addition to Subsection (2),
3754 failure by a person to comply with this chapter or an operational requirement under a provision
3755 applicable to a sublicense may result in disciplinary action in accordance with Chapter 3,
3756 Disciplinary Actions and Enforcement Act, against:
3757 (a) a principal licensee;
3758 (b) individual staff of a principal licensee;
3759 (c) a sublicensee or person otherwise operating under a sublicense;
3760 (d) individual staff of a sublicensee or person otherwise operating under a sublicense;
3761 or
3762 (e) any combination of the persons listed in Subsections (1)(a) through (d).
3763 (2) An operational requirement applicable to a sublicensee or person operating under a
3764 sublicense is enforced as provided by the provisions applicable to the sublicense.
3765 Section 68. Section 32B-8d-201 is enacted to read:
3766
3767 32B-8d-201. Title.
3768 This part is known as "Resort Spa Sublicense."
3769 Section 69. Section 32B-8d-202, which is renumbered from Section 32B-8-301 is
3770 renumbered and amended to read:
3771 [
3772 sublicense.
3773 (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
3774 an alcoholic product on [
3775 or a person applying for a resort license shall first obtain a resort spa sublicense from the
3776 commission in accordance with this part.
3777 (2) The commission may only issue a resort spa sublicense to [
3778
3779
3780 (a) a resort licensee; or
3781 (b) a person applying for a resort license, contingent on the issuance of the resort
3782 license.
3783 (3) The resort spa sublicense premises shall fall entirely within the boundary of a resort
3784 building that is part of the resort to which the resort spa sublicense is connected.
3785 Section 70. Section 32B-8d-203, which is renumbered from Section 32B-8-302 is
3786 renumbered and amended to read:
3787 [
3788 sublicense.
3789 (1) (a) [
3790 written application with the department to obtain a resort spa sublicense that is separate from
3791 the application of the resort license, unless the person seeks the resort spa sublicense [
3792
3793 [
3794 issued, the resort licensee shall comply with Subsection [
3795 [
3796 (b) A resort licensee desiring to renew the resort licensee's resort spa sublicense shall
3797 renew the resort spa sublicense as part of renewing the resort license.
3798 (c) Failure to meet the renewal requirements for a resort license results in an automatic
3799 forfeiture of the resort spa sublicense effective on the date the resort license expires.
3800 Section 71. Section 32B-8d-204, which is renumbered from Section 32B-8-303 is
3801 renumbered and amended to read:
3802 [
3803 (1) A person employed to act in a supervisory or managerial capacity for the resort spa
3804 sublicense is subject to qualification requirements of Section [
3805 licensees.
3806 (2) If a person no longer possesses the qualifications required by Section [
3807 32B-1-304 for obtaining the resort license or resort spa sublicense, the commission may
3808 suspend or revoke the resort spa sublicense that is part of the resort license.
3809 Section 72. Section 32B-8d-205, which is renumbered from Section 32B-8-304 is
3810 renumbered and amended to read:
3811 [
3812 sublicense.
3813 (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
3814 Requirements, a resort licensee[
3815
3816 (b) A resort spa sublicensee or a person otherwise operating under a resort spa
3817 sublicense and staff of a resort spa sublicensee or a person otherwise operating under a resort
3818 spa sublicense shall comply with:
3819 (i) Chapter 5, Part 3, Retail Licensee Operational Requirements as if the resort spa
3820 sublicensee is a retail licensee, unless a provision conflicts with this chapter; and
3821 (ii) this chapter.
3822 [
3823 (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
3824 Enforcement Act, against:
3825 (i) a [
3826 (ii) staff of the [
3827 (iii) a resort spa sublicensee or person otherwise [
3828 spa sublicense; [
3829 (iv) individual staff of a resort spa sublicensee or person otherwise operating under a
3830 resort spa sublicense; or
3831 [
3832 (1)(c)(i) through (iv).
3833 (2) (a) For purposes of the resort spa sublicense, the resort licensee shall ensure that [
3834
3835 sublicense:
3836 (i) as the department requires; and
3837 (ii) for a minimum period of three years.
3838 (b) A resort spa sublicensee record is subject to inspection by an authorized
3839 representative of the commission and the department.
3840 (c) A resort licensee shall allow the department, through [
3841 compliance officer of the department, to audit the records for a resort spa sublicense at the
3842 times the department considers advisable.
3843 (d) The department shall audit the records for a resort spa sublicense at least once
3844 annually.
3845 (e) Section 32B-1-205 applies to a record required to be made, maintained, or used in
3846 accordance with this Subsection (2).
3847 (3) (a) A resort spa sublicensee or person operating under a resort spa sublicense may
3848 not sell, offer for sale, or furnish liquor at a resort spa during a period that:
3849 (i) begins at 1 a.m.; and
3850 (ii) ends at 9:59 a.m.
3851 (b) A resort spa sublicensee or person operating under a resort spa sublicense may sell,
3852 offer for sale, or furnish beer during the hours specified in Chapter 6, Part 7, On-Premise Beer
3853 Retailer License, for an on-premise beer retailer.
3854 (c) (i) Notwithstanding Subsections (3)(a) and (b), a resort spa shall remain open for
3855 one hour after the resort spa ceases the sale and furnishing of an alcoholic product during
3856 which time a person at the resort spa may finish consuming:
3857 (A) a single drink containing spirituous liquor;
3858 (B) a single serving of wine not exceeding five ounces;
3859 (C) a single serving of heavy beer;
3860 (D) a single serving of beer not exceeding 26 ounces; or
3861 (E) a single serving of a flavored malt beverage.
3862 (ii) A resort spa is not required to remain open:
3863 (A) after all [
3864 sublicensed premises; or
3865 (B) during an emergency.
3866 (4) (a) A minor may not be admitted into, use, or be on[
3867 sublicensed premises of a resort spa sublicense unless accompanied by [
3868 21 years of age or older[
3869 (b) A minor permitted under Subsection (4)(a) to be admitted into, use, or be on the
3870 sublicensed premises of a resort spa sublicense:
3871 [
3872 [
3873 of the resort spa; and
3874 (ii) may not remain or sit in the lounge or bar area of the resort spa sublicensee's
3875 sublicensed premises.
3876 (5) A resort spa sublicensee shall have food available at all times when an alcoholic
3877 product is sold, offered for sale, furnished, or consumed on the resort spa [
3878 sublicensee's sublicensed premises.
3879 (6) (a) Subject to the other provisions of this Subsection (6), a patron may not have
3880 more than two alcoholic products of any kind at a time before the patron.
3881 (b) A resort spa patron may not have two spirituous liquor drinks before the resort spa
3882 patron if one of the spirituous liquor drinks consists only of the primary spirituous liquor for
3883 the other spirituous liquor drink.
3884 (c) An individual portion of wine is considered to be one alcoholic product under this
3885 Subsection (6).
3886 (7) (a) An alcoholic product may only be consumed at a table or counter.
3887 (b) An alcoholic product may not be served to or consumed by a patron at a dispensing
3888 structure.
3889 (8) (a) A resort spa sublicensee or person operating under a resort spa sublicense shall
3890 have available on the resort spa [
3891 review at the time that the patron requests it, a written alcoholic product price list or a menu
3892 containing the price of an alcoholic product sold or furnished by the resort spa sublicensee
3893 including:
3894 (i) a set-up charge;
3895 (ii) a service charge; or
3896 (iii) a chilling fee.
3897 (b) A charge or fee made in connection with the sale, service, or consumption of liquor
3898 may be stated in food or alcoholic product menus including:
3899 (i) a set-up charge;
3900 (ii) a service charge; or
3901 (iii) a chilling fee.
3902 (9) (a) A resort licensee shall own or lease premises suitable for the resort [
3903 sublicense's activities.
3904 (b) A resort licensee may not maintain premises in a manner that barricades or conceals
3905 the resort spa sublicense's operation.
3906 (10) Subject to the other provisions of this section, a resort spa sublicensee or person
3907 operating under a resort spa sublicense may not sell an alcoholic product to or allow [
3908 an individual to be admitted to or use the resort spa [
3909 premises other than:
3910 (a) a resident; or
3911 (b) a customer.
3912 [
3913
3914 [
3915 [
3916
3917
3918 [
3919
3920 [
3921 [
3922 [
3923
3924 [
3925
3926
3927 [
3928
3929
3930 [
3931
3932 [
3933 [
3934 [
3935 Section 73. Section 32B-9-201 is amended to read:
3936 32B-9-201. Application requirements for event permit.
3937 (1) To obtain an event permit, a person shall submit to the department:
3938 (a) a written application in a form that the department prescribes;
3939 (b) an event permit fee:
3940 (i) in the amount specified in the relevant part under this chapter for the type of event
3941 permit for which the person is applying; and
3942 (ii) that is refundable if an event permit is not issued;
3943 (c) written consent of the local authority;
3944 (d) a bond as specified by Section 32B-9-203;
3945 (e) the times, dates, location, estimated attendance, nature, and purpose of the event;
3946 (f) a description or floor plan designating:
3947 (i) the area in which the person proposes that an alcoholic product be stored;
3948 (ii) the site from which the person proposes that an alcoholic product be sold, offered
3949 for sale, or furnished; and
3950 (iii) the area in which the person proposes that an alcoholic product be allowed to be
3951 consumed;
3952 (g) a signed consent form stating that the event permittee will permit any authorized
3953 representative of the commission, department, or any law enforcement officer to have
3954 unrestricted right to enter the premises during the event;
3955 (h) if the person is an entity, proper verification evidencing that a person who signs the
3956 application is authorized to sign on behalf of the entity; and
3957 (i) any other information as the commission or department may require.
3958 (2) If a person substantially changes the person's application under Subsection (1) after
3959 the person initially submits the application, the person shall pay to the department a fee:
3960 (a) in an amount the department prescribes in accordance with Section 63J-1-504; and
3961 (b) that is nonrefundable, regardless of whether the department issues an event permit.
3962 [
3963 (1)(b), (c), and (d) if the entity is:
3964 (a) a state agency; or
3965 (b) a political subdivision of the state.
3966 [
3967 under Section 32B-1-304.
3968 [
3969 permit.
3970 (b) Notwithstanding Subsection [
3971 director, the Compliance, Licensing, and Enforcement Subcommittee, or the commission from
3972 considering the proximity of an educational, religious, or recreational facility, or any other
3973 relevant factor in deciding whether to issue an event permit.
3974 Section 74. Section 32B-10-206 is amended to read:
3975 32B-10-206. General operational requirements for special use permit.
3976 (1) (a) A special use permittee and staff of the special use permittee shall comply with
3977 this title and rules of the commission, including the relevant part of the chapter that applies to
3978 the type of special use permit held by the special use permittee.
3979 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
3980 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
3981 (i) a special use permittee;
3982 (ii) individual staff of a special use permittee; or
3983 (iii) a special use permittee and staff of the special use permittee.
3984 (c) The commission may suspend or revoke a special use permit with or without cause.
3985 (2) (a) If there is a conflict between this part and the relevant part under this chapter for
3986 the specific type of special use permit, the relevant part under this chapter governs.
3987 (b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," a
3988 special use permittee may only purchase, use, store, sell, offer for sale, allow consumption, or
3989 manufacture an alcoholic product authorized for the special use permit that is held by the
3990 special use permittee.
3991 (c) Notwithstanding that this part or the relevant part under this chapter for the type of
3992 special use permit held by a special use permittee refers to "special use permittee," a person
3993 involved in the purchase, use, store, sell, offer for sale, allow consumption, or manufacture of
3994 an alcoholic product for which the special use permit is issued is subject to the same
3995 requirement or prohibition.
3996 (3) (a) A special use permittee shall make and maintain a record, as required by
3997 commission rule, of any alcoholic product purchased, used, sold, or manufactured.
3998 (b) Section 32B-1-205 applies to a record required to be made or maintained in
3999 accordance with this Subsection (3).
4000 (4) (a) Except as otherwise provided in this title, a special use permittee may not
4001 purchase liquor except from a state store or package agency.
4002 (b) A special use permittee may transport liquor purchased by the special use permittee
4003 in accordance with this Subsection (4) from the place of purchase to the special use permittee's
4004 premises.
4005 (c) A special use permittee shall purchase liquor at prices set by the commission.
4006 (d) When authorized by a special use permit, a special use permittee may purchase and
4007 receive an alcoholic product directly from a manufacturer for a purpose that is industrial,
4008 educational, scientific, or manufacturing.
4009 (e) A health care facility may purchase and receive an alcoholic product directly from a
4010 manufacturer for use at the health care facility.
4011 (5) A special use permittee may not use, mix, store, sell, offer for sale, furnish,
4012 manufacture, or allow consumption of an alcoholic product in a location other than as
4013 designated in a special use permittee's application.
4014 (6) Except as otherwise provided, a special use permittee may not sell, offer for sale, or
4015 furnish an alcoholic product to:
4016 (a) a minor;
4017 (b) a person actually, apparently, or obviously intoxicated;
4018 (c) a known interdicted person; or
4019 (d) a known habitual drunkard.
4020 (7) A special use permittee may not employ a minor to handle an alcoholic product.
4021 (8) (a) The location specified in a special use permit may not be transferred from one
4022 location to another location, [
4023 provided in Chapter 8a, Transfer of Alcohol License Act.
4024 (b) A special use permittee may not sell, transfer, assign, exchange, barter, give, or
4025 attempt in any way to dispose of the permit to another person whether for monetary gain or not,
4026 except as provided in Chapter 8a, Transfer of Alcohol License Act.
4027 (9) A special use permittee may not purchase, use, mix, store, sell, offer for sale,
4028 furnish, consume, or manufacture an alcoholic product for a purpose other than that authorized
4029 by the special use permit.
4030 (10) The commission may prescribe by policy or rule consistent with this title, the
4031 general operational requirements of a special use permittee relating to:
4032 (a) physical facilities;
4033 (b) conditions of purchase, use, storage, sale, consumption, or manufacture of an
4034 alcoholic product;
4035 (c) purchase, storage, and sales quantity limitations; and
4036 (d) other matters considered appropriate by the commission.
4037 Section 75. Section 32B-11-208 is amended to read:
4038 32B-11-208. General operational requirements for manufacturing license.
4039 (1) (a) A manufacturing licensee and staff of the manufacturing licensee shall comply
4040 with this title and the rules of the commission, including the relevant part of this chapter
4041 applicable to the type of manufacturing license held by the manufacturing licensee.
4042 (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
4043 in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
4044 (i) a manufacturing licensee;
4045 (ii) individual staff of a manufacturing licensee; or
4046 (iii) a manufacturing licensee and staff of the manufacturing licensee.
4047 (2) A manufacturing licensee shall prominently display the manufacturing license on
4048 the licensed premises.
4049 (3) (a) A manufacturing licensee shall make and maintain the records required by the
4050 department.
4051 (b) Section 32B-1-205 applies to a record required to be made or maintained in
4052 accordance with this Subsection (3).
4053 (4) A manufacturing licensee may not sell liquor within the state except to:
4054 (a) the department; or
4055 (b) a military installation.
4056 (5) A manufacturing license may not be transferred from one location to another
4057 location, [
4058 Transfer of Alcohol License Act.
4059 (6) (a) A manufacturing licensee may not sell, transfer, assign, exchange, barter, give,
4060 or attempt in any way to dispose of the license to another person, whether for monetary gain or
4061 not, except as provided in Chapter 8a, Transfer of Alcohol License Act.
4062 (b) A manufacturing license has no monetary value for any type of disposition.
4063 (7) A manufacturing licensee may not advertise [
4064 product in violation of this title or any other federal or state law, except that nothing in this title
4065 prohibits the advertising or solicitation of an order for industrial alcohol from a holder of a
4066 special use permit.
4067 (8) A manufacturing licensee shall from time to time, on request of the department,
4068 furnish for analytical purposes a sample of the alcoholic product that the manufacturing
4069 licensee has:
4070 (a) for sale; or
4071 (b) in the course of manufacture for sale in this state.
4072 (9) The commission may prescribe by policy or rule, consistent with this title, the
4073 general operational requirements of a manufacturing licensee relating to:
4074 (a) physical facilities;
4075 (b) conditions of storage, sale, or manufacture of an alcoholic product;
4076 (c) storage and sales quantity limitations; and
4077 (d) other matters considered appropriate by the commission.
4078 Section 76. Section 32B-11-403 is amended to read:
4079 32B-11-403. Specific authority and operational requirements for distillery
4080 manufacturing license.
4081 (1) A distillery manufacturing license allows a distillery manufacturing licensee to:
4082 (a) store, manufacture, transport, import, or export liquor;
4083 (b) sell liquor to:
4084 (i) the department;
4085 (ii) an out-of-state customer; and
4086 (iii) as provided in Subsection (2);
4087 (c) purchase an alcoholic product for mixing and manufacturing purposes if the
4088 department is notified of:
4089 (i) the purchase; and
4090 (ii) the date of delivery; [
4091 (d) warehouse on [
4092 alcoholic product that the distillery manufacturing licensee manufactures or purchases for
4093 manufacturing purposes[
4094 (e) if the distillery manufacturing licensee holds two or more distillery manufacturing
4095 licenses under this chapter, transport an alcoholic product from one of the distillery
4096 manufacturing licensee's licensed premises to another, if the transportation occurs for the
4097 purpose of:
4098 (i) continuing or completing the manufacturing process; or
4099 (ii) storing a bulk container or an alcoholic product that is distilled and packaged in the
4100 state, including the transport of an alcoholic product to a package agency located at any of the
4101 distillery manufacturing licensee's licensed premises; and
4102 (f) receive samples of an alcoholic product from a person outside the state for the sole
4103 purpose of performing tests and analysis, if the distillery manufacturing licensee:
4104 (i) performs the tests and analysis in accordance with 27 C.F.R. Secs. 19.434(a), (c),
4105 (d), (e), and (f), Secs. 19.435 through 19.437, and Sec. 19.616;
4106 (ii) keeps records of the samples received, including:
4107 (A) all data required under 27.C.F.R. Sec. 19.616;
4108 (B) a description of the sample; and
4109 (C) the date the distillery manufacturing licensee receives the sample; and
4110 (iii) upon request, provides the records described in Subsection (1)(f)(ii) to the
4111 department.
4112 (2) (a) Subject to the other provisions of this Subsection (2), a distillery manufacturing
4113 licensee may directly sell an alcoholic product to a person engaged within the state in:
4114 (i) a mechanical or industrial business that requires the use of an alcoholic product; or
4115 (ii) scientific pursuits that require the use of an alcoholic product.
4116 (b) A person who purchases an alcoholic product under Subsection (2)(a) shall hold a
4117 valid special use permit issued in accordance with Chapter 10, Special Use Permit Act,
4118 authorizing the use of the alcoholic product.
4119 (c) A distillery manufacturing licensee may sell to a special use permittee described in
4120 Subsection (2)(b) an alcoholic product only in the type for which the special use permit
4121 provides.
4122 (d) The sale of an alcoholic product under this Subsection (2) is subject to rules
4123 prescribed by the department and the federal government.
4124 (3) The federal definitions, standards of identity and quality, and labeling requirements
4125 for distilled liquor, in the regulations issued under Federal Alcohol Administration Act, 27
4126 U.S.C. Sec. 201 et seq., are adopted to the extent the regulations are not contrary to or
4127 inconsistent with laws of this state.
4128 (4) If considered necessary, the commission or department may require:
4129 (a) the alteration of the plant, equipment, or licensed premises;
4130 (b) the alteration or removal of unsuitable alcoholic product-making equipment or
4131 material;
4132 (c) a distillery manufacturing licensee to clean, disinfect, ventilate, or otherwise
4133 improve the sanitary and working conditions of the plant, licensed premises, and equipment; or
4134 (d) that a record pertaining to the materials and ingredients used in the manufacture of
4135 an alcoholic product be made available to the commission or department upon request.
4136 (5) A distillery manufacturing licensee may not permit an alcoholic product to be
4137 consumed on [
4138 (a) a distillery manufacturing licensee may allow [
4139 licensee's on-duty staff to taste on the licensed premises an alcoholic product that the distillery
4140 manufacturing licensee manufactures on [
4141 premises without charge, but only in connection with the on-duty staff's duties of
4142 manufacturing the alcoholic product during the manufacturing process and not otherwise;
4143 (b) a distillery manufacturing licensee may allow a person who can lawfully purchase
4144 an alcoholic product for wholesale or retail distribution to consume a bona fide sample of the
4145 distillery manufacturing licensee's product on the licensed premises; and
4146 (c) a distillery manufacturing licensee may conduct tastings as provided in Section
4147 32B-11-210.
4148 Section 77. Section 63I-2-232 is amended to read:
4149 63I-2-232. Repeal dates -- Title 32B.
4150 (1) Subsection 32B-1-102[
4151 [
4152 [
4153 [
4154 [
4155 [
4156 [
4157 [
4158 [
4159 [
4160 [
4161 [
4162 [
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4164 [
4165 [
4166 [
4167 [
4168 [
4169 [
4170 (19) Subsection 32B-8d-104(3) is repealed July 1, 2022.
4171 Section 78. Repealer.
4172 This bill repeals:
4173 Section 32B-8-203, Specific qualifications for resort license.
4174 Section 32B-8-204, Commission and department duties before issuing resort
4175 license.
4176 Section 32B-8-402, Specific operational requirements for a sublicense.
4177 Section 32B-8-503, Enforcement of Nuisance Retail Licensee Act.
4178 Section 32B-8b-203, Qualifications for hotel license and sublicense.
4179 Section 32B-8b-204, Commission and department duties before issuing hotel
4180 license.
4181 Section 32B-8b-302, Specific operational requirements for a sublicense.
4182 Section 32B-8b-402, Enforcement of Nuisance Retail Licensee Act.