1     
BEER ORDER AND DELIVERY AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Joel K. Briscoe

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill permits an off-premise beer retailer to make off-premise beer deliveries under
10     certain circumstances.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     permits an off-premise beer retailer to make off-premise beer deliveries under
15     certain circumstances;
16          ▸     requires the Alcoholic Beverage Services Commission to make administrative rules
17     to establish an application process for off-premise beer deliveries;
18          ▸     requires the Division of Substance Abuse and Mental Health to establish training
19     regarding off-premise beer delivery; and
20          ▸     makes technical and conforming changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:
26     AMENDS:
27          32B-1-102, as last amended by Laws of Utah 2022, Chapter 447

28          32B-1-701, as last amended by Laws of Utah 2022, Chapter 447
29          32B-7-202, as last amended by Laws of Utah 2022, Chapter 447
30          62A-15-401, as last amended by Laws of Utah 2022, Chapter 447
31     

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 32B-1-102 is amended to read:
34          32B-1-102. Definitions.
35          As used in this title:
36          (1) "Airport lounge" means a business location:
37          (a) at which an alcoholic product is sold at retail for consumption on the premises; and
38          (b) that is located at an international airport.
39          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
40     Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
41          (3) "Alcoholic beverage" means the following:
42          (a) beer; or
43          (b) liquor.
44          (4) (a) "Alcoholic product" means a product that:
45          (i) contains at least .5% of alcohol by volume; and
46          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
47     process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
48     in an amount equal to or greater than .5% of alcohol by volume.
49          (b) "Alcoholic product" includes an alcoholic beverage.
50          (c) "Alcoholic product" does not include any of the following common items that
51     otherwise come within the definition of an alcoholic product:
52          (i) except as provided in Subsection (4)(d), an extract;
53          (ii) vinegar;
54          (iii) preserved nonintoxicating cider;
55          (iv) essence;
56          (v) tincture;
57          (vi) food preparation; or
58          (vii) an over-the-counter medicine.

59          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
60     when it is used as a flavoring in the manufacturing of an alcoholic product.
61          (5) "Alcohol training and education seminar" means a seminar that is:
62          (a) required by Chapter 1, Part 7, Alcohol Training and Education Act; and
63          (b) described in Section 62A-15-401.
64          (6) "Arena" means an enclosed building:
65          (a) that is managed by:
66          (i) the same person who owns the enclosed building;
67          (ii) a person who has a majority interest in each person who owns or manages a space
68     in the enclosed building; or
69          (iii) a person who has authority to direct or exercise control over the management or
70     policy of each person who owns or manages a space in the enclosed building;
71          (b) that operates as a venue; and
72          (c) that has an occupancy capacity of at least 12,500.
73          (7) "Arena license" means a license issued in accordance with Chapter 5, Retail
74     License Act, and Chapter 8c, Arena License Act.
75          (8) "Banquet" means an event:
76          (a) that is a private event or a privately sponsored event;
77          (b) that is held at one or more designated locations approved by the commission in or
78     on the premises of:
79          (i) a hotel;
80          (ii) a resort facility;
81          (iii) a sports center;
82          (iv) a convention center;
83          (v) a performing arts facility; or
84          (vi) an arena;
85          (c) for which there is a contract:
86          (i) between a person operating a facility listed in Subsection (8)(b) and another person
87     that has common ownership of less than 20% with the person operating the facility; and
88          (ii) under which the person operating a facility listed in Subsection (8)(b) is required to
89     provide an alcoholic product at the event; and

90          (d) at which food and alcoholic products may be sold, offered for sale, or furnished.
91          (9) (a) "Bar establishment license" means a license issued in accordance with Chapter
92     5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License.
93          (b) "Bar establishment license" includes:
94          (i) a dining club license;
95          (ii) an equity license;
96          (iii) a fraternal license; or
97          (iv) a bar license.
98          (10) "Bar license" means a license issued in accordance with Chapter 5, Retail License
99     Act, and Chapter 6, Part 4, Bar Establishment License.
100          (11) (a) "Beer" means a product that:
101          (i) contains:
102          (A) at least .5% of alcohol by volume; and
103          (B) no more than 5% of alcohol by volume or 4% by weight;
104          (ii) is obtained by fermentation, infusion, or decoction of:
105          (A) malt; or
106          (B) a malt substitute; and
107          (iii) is clearly marketed, labeled, and identified as:
108          (A) beer;
109          (B) ale;
110          (C) porter;
111          (D) stout;
112          (E) lager;
113          (F) a malt;
114          (G) a malted beverage; or
115          (H) seltzer.
116          (b) "Beer" may contain:
117          (i) hops extract; or
118          (ii) caffeine, if the caffeine is a natural constituent of an added ingredient.
119          (c) "Beer" does not include:
120          (i) a flavored malt beverage;

121          (ii) a product that contains alcohol derived from:
122          (A) spirituous liquor; or
123          (B) wine; or
124          (iii) a product that contains an additive masking or altering a physiological effect of
125     alcohol, including kratom, kava, cannabidiol, or natural or synthetic tetrahydrocannabinol.
126          (12) "Beer-only restaurant license" means a license issued in accordance with Chapter
127     5, Retail License Act, and Chapter 6, Part 9, Beer-Only Restaurant License.
128          (13) "Beer retailer" means a business that:
129          (a) is engaged, primarily or incidentally, in the retail sale of beer to a patron, whether
130     for consumption on or off the business premises; and
131          (b) is licensed as:
132          (i) an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-Premise Beer
133     Retailer Local Authority; or
134          (ii) an on-premise beer retailer, in accordance with Chapter 5, Retail License Act, and
135     Chapter 6, Part 7, On-Premise Beer Retailer License.
136          (14) "Beer wholesaling license" means a license:
137          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
138          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
139     retail licensees or off-premise beer retailers.
140          (15) "Billboard" means a public display used to advertise, including:
141          (a) a light device;
142          (b) a painting;
143          (c) a drawing;
144          (d) a poster;
145          (e) a sign;
146          (f) a signboard; or
147          (g) a scoreboard.
148          (16) "Brewer" means a person engaged in manufacturing:
149          (a) beer;
150          (b) heavy beer; or
151          (c) a flavored malt beverage.

152          (17) "Brewery manufacturing license" means a license issued in accordance with
153     Chapter 11, Part 5, Brewery Manufacturing License.
154          (18) "Certificate of approval" means a certificate of approval obtained from the
155     department under Section 32B-11-201.
156          (19) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
157     a bus company to a group of persons pursuant to a common purpose:
158          (a) under a single contract;
159          (b) at a fixed charge in accordance with the bus company's tariff; and
160          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
161     motor vehicle, and a driver to travel together to one or more specified destinations.
162          (20) "Church" means a building:
163          (a) set apart for worship;
164          (b) in which religious services are held;
165          (c) with which clergy is associated; and
166          (d) that is tax exempt under the laws of this state.
167          (21) "Commission" means the Alcoholic Beverage Services Commission created in
168     Section 32B-2-201.
169          (22) "Commissioner" means a member of the commission.
170          (23) "Community location" means:
171          (a) a public or private school;
172          (b) a church;
173          (c) a public library;
174          (d) a public playground; or
175          (e) a public park.
176          (24) "Community location governing authority" means:
177          (a) the governing body of the community location; or
178          (b) if the commission does not know who is the governing body of a community
179     location, a person who appears to the commission to have been given on behalf of the
180     community location the authority to prohibit an activity at the community location.
181          (25) "Container" means a receptacle that contains an alcoholic product, including:
182          (a) a bottle;

183          (b) a vessel; or
184          (c) a similar item.
185          (26) "Controlled group of manufacturers" means as the commission defines by rule
186     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
187          (27) "Convention center" means a facility that is:
188          (a) in total at least 30,000 square feet; and
189          (b) otherwise defined as a "convention center" by the commission by rule.
190          (28) (a) "Counter" means a surface or structure in a dining area of a licensed premises
191     where seating is provided to a patron for service of food.
192          (b) "Counter" does not include a dispensing structure.
193          (29) "Crime involving moral turpitude" is as defined by the commission by rule.
194          (30) "Department" means the Department of Alcoholic Beverage Services created in
195     Section 32B-2-203.
196          (31) "Department compliance officer" means an individual who is:
197          (a) an auditor or inspector; and
198          (b) employed by the department.
199          (32) "Department sample" means liquor that is placed in the possession of the
200     department for testing, analysis, and sampling.
201          (33) "Dining club license" means a license issued in accordance with Chapter 5, Retail
202     License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
203     commission as a dining club license.
204          (34) "Director," unless the context requires otherwise, means the director of the
205     department.
206          (35) "Disciplinary proceeding" means an adjudicative proceeding permitted under this
207     title:
208          (a) against a person subject to administrative action; and
209          (b) that is brought on the basis of a violation of this title.
210          (36) (a) Subject to Subsection (36)(b), "dispense" means:
211          (i) drawing an alcoholic product; and
212          (ii) using the alcoholic product at the location from which it was drawn to mix or
213     prepare an alcoholic product to be furnished to a patron of the retail licensee.

214          (b) The definition of "dispense" in this Subsection (36) applies only to:
215          (i) a full-service restaurant license;
216          (ii) a limited-service restaurant license;
217          (iii) a reception center license;
218          (iv) a beer-only restaurant license;
219          (v) a bar license;
220          (vi) an on-premise beer retailer;
221          (vii) an airport lounge license;
222          (viii) an on-premise banquet license; and
223          (ix) a hospitality amenity license.
224          (37) "Dispensing structure" means a surface or structure on a licensed premises:
225          (a) where an alcoholic product is dispensed; or
226          (b) from which an alcoholic product is served.
227          (38) "Distillery manufacturing license" means a license issued in accordance with
228     Chapter 11, Part 4, Distillery Manufacturing License.
229          (39) "Distressed merchandise" means an alcoholic product in the possession of the
230     department that is saleable, but for some reason is unappealing to the public.
231          (40) "Equity license" means a license issued in accordance with Chapter 5, Retail
232     License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
233     commission as an equity license.
234          (41) "Event permit" means:
235          (a) a single event permit; or
236          (b) a temporary beer event permit.
237          (42) "Exempt license" means a license exempt under Section 32B-1-201 from being
238     considered in determining the total number of retail licenses that the commission may issue at
239     any time.
240          (43) (a) "Flavored malt beverage" means a beverage:
241          (i) that contains at least .5% alcohol by volume;
242          (ii) for which the producer is required to file a formula for approval with the federal
243     Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 because the beverage
244     is treated by processing, filtration, or another method of manufacture that is not generally

245     recognized as a traditional process in the production of a beer, ale, porter, stout, lager, or malt
246     liquor; and
247          (iii) for which the producer is required to file a formula for approval with the federal
248     Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 because the beverage
249     includes an ingredient containing alcohol.
250          (b) "Flavored malt beverage" is considered liquor for purposes of this title.
251          (44) "Fraternal license" means a license issued in accordance with Chapter 5, Retail
252     License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
253     commission as a fraternal license.
254          (45) "Full-service restaurant license" means a license issued in accordance with
255     Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-Service Restaurant License.
256          (46) (a) "Furnish" means by any means to provide with, supply, or give an individual
257     an alcoholic product, by sale or otherwise.
258          (b) "Furnish" includes to:
259          (i) serve;
260          (ii) deliver; or
261          (iii) otherwise make available.
262          (47) "Guest" means an individual who meets the requirements of Subsection
263     32B-6-407(9).
264          (48) "Hard cider" means the same as that term is defined in 26 U.S.C. Sec. 5041.
265          (49) "Health care practitioner" means:
266          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
267          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
268          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
269          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
270     Act;
271          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
272     Nurse Practice Act;
273          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
274     Practice Act;
275          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational

276     Therapy Practice Act;
277          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
278          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
279     Professional Practice Act;
280          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
281          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
282     Practice Act;
283          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
284     Hygienist Practice Act; and
285          (m) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
286     Assistant Act.
287          (50) (a) "Heavy beer" means a product that:
288          (i) contains more than 5% alcohol by volume; and
289          (ii) is obtained by fermentation, infusion, or decoction of:
290          (A) malt; or
291          (B) a malt substitute.
292          (b) "Heavy beer" is considered liquor for the purposes of this title.
293          (51) "Hospitality amenity license" means a license issued in accordance with Chapter
294     5, Retail License Act, and Chapter 6, Part 10, Hospitality Amenity License.
295          (52) (a) "Hotel" means a commercial lodging establishment that:
296          (i) offers at least 40 rooms as temporary sleeping accommodations for compensation;
297          (ii) is capable of hosting conventions, conferences, and food and beverage functions
298     under a banquet contract; and
299          (iii) (A) has adequate kitchen or culinary facilities on the premises to provide complete
300     meals;
301          (B) has at least 1,000 square feet of function space consisting of meeting or dining
302     rooms that can be reserved for a banquet and can accommodate at least 75 individuals; or
303          (C) if the establishment is located in a small or unincorporated locality, has an
304     appropriate amount of function space consisting of meeting or dining rooms that can be
305     reserved for private use under a banquet contract, as determined by the commission.
306          (b) "Hotel" includes a commercial lodging establishment that:

307          (i) meets the requirements under Subsection (52)(a); and
308          (ii) has one or more privately owned dwelling units.
309          (53) "Hotel license" means a license issued in accordance with Chapter 5, Retail
310     License Act, and Chapter 8b, Hotel License Act.
311          (54) "Identification card" means an identification card issued under Title 53, Chapter 3,
312     Part 8, Identification Card Act.
313          (55) "Industry representative" means an individual who is compensated by salary,
314     commission, or other means for representing and selling an alcoholic product of a
315     manufacturer, supplier, or importer of liquor.
316          (56) "Industry representative sample" means liquor that is placed in the possession of
317     the department for testing, analysis, and sampling by a local industry representative on the
318     premises of the department to educate the local industry representative of the quality and
319     characteristics of the product.
320          (57) "Interdicted person" means a person to whom the sale, offer for sale, or furnishing
321     of an alcoholic product is prohibited by:
322          (a) law; or
323          (b) court order.
324          (58) "International airport" means an airport:
325          (a) with a United States Customs and Border Protection office on the premises of the
326     airport; and
327          (b) at which international flights may enter and depart.
328          (59) "Intoxicated" means that a person:
329          (a) is significantly impaired as to the person's mental or physical functions as a result of
330     the use of:
331          (i) an alcoholic product;
332          (ii) a controlled substance;
333          (iii) a substance having the property of releasing toxic vapors; or
334          (iv) a combination of Subsections (59)(a)(i) through (iii); and
335          (b) exhibits plain and easily observed outward manifestations of behavior or physical
336     signs produced by the overconsumption of an alcoholic product.
337          (60) "Investigator" means an individual who is:

338          (a) a department compliance officer; or
339          (b) a nondepartment enforcement officer.
340          (61) "License" means:
341          (a) a retail license;
342          (b) a sublicense;
343          (c) a license issued in accordance with Chapter 7, Part 4, Off-Premise Beer Retailer
344     State License;
345          (d) a license issued in accordance with Chapter 11, Manufacturing and Related
346     Licenses Act;
347          (e) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
348          (f) a license issued in accordance with Chapter 13, Beer Wholesaling License Act; or
349          (g) a license issued in accordance with Chapter 17, Liquor Transport License Act.
350          (62) "Licensee" means a person who holds a license.
351          (63) "Limited-service restaurant license" means a license issued in accordance with
352     Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-Service Restaurant License.
353          (64) "Limousine" means a motor vehicle licensed by the state or a local authority, other
354     than a bus or taxicab:
355          (a) in which the driver and a passenger are separated by a partition, glass, or other
356     barrier;
357          (b) that is provided by a business entity to one or more individuals at a fixed charge in
358     accordance with the business entity's tariff; and
359          (c) to give the one or more individuals the exclusive use of the limousine and a driver
360     to travel to one or more specified destinations.
361          (65) (a) (i) "Liquor" means a liquid that:
362          (A) is:
363          (I) alcohol;
364          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
365          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
366          (IV) other drink or drinkable liquid; and
367          (B) (I) contains at least .5% alcohol by volume; and
368          (II) is suitable to use for beverage purposes.

369          (ii) "Liquor" includes:
370          (A) heavy beer;
371          (B) wine; and
372          (C) a flavored malt beverage.
373          (b) "Liquor" does not include beer.
374          (66) "Liquor Control Fund" means the enterprise fund created by Section 32B-2-301.
375          (67) "Liquor transport license" means a license issued in accordance with Chapter 17,
376     Liquor Transport License Act.
377          (68) "Liquor warehousing license" means a license that is issued:
378          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
379          (b) to a person, other than a licensed manufacturer, who engages in the importation for
380     storage, sale, or distribution of liquor regardless of amount.
381          (69) "Local authority" means:
382          (a) for premises that are located in an unincorporated area of a county, the governing
383     body of a county;
384          (b) for premises that are located in an incorporated city, town, or metro township, the
385     governing body of the city, town, or metro township; or
386          (c) for premises that are located in a project area as defined in Section 63H-1-102 and
387     in a project area plan adopted by the Military Installation Development Authority under Title
388     63H, Chapter 1, Military Installation Development Authority Act, the Military Installation
389     Development Authority.
390          (70) "Lounge or bar area" is as defined by rule made by the commission.
391          (71) "Malt substitute" means:
392          (a) rice;
393          (b) grain;
394          (c) bran;
395          (d) glucose;
396          (e) sugar; or
397          (f) molasses.
398          (72) "Manufacture" means to distill, brew, rectify, mix, compound, process, ferment, or
399     otherwise make an alcoholic product for personal use or for sale or distribution to others.

400          (73) "Member" means an individual who, after paying regular dues, has full privileges
401     in an equity licensee or fraternal licensee.
402          (74) (a) "Military installation" means a base, air field, camp, post, station, yard, center,
403     or homeport facility for a ship:
404          (i) (A) under the control of the United States Department of Defense; or
405          (B) of the National Guard;
406          (ii) that is located within the state; and
407          (iii) including a leased facility.
408          (b) "Military installation" does not include a facility used primarily for:
409          (i) civil works;
410          (ii) a rivers and harbors project; or
411          (iii) a flood control project.
412          (75) "Minibar" means an area of a hotel guest room where one or more alcoholic
413     products are kept and offered for self-service sale or consumption.
414          (76) "Minor" means an individual under 21 years old.
415          (77) "Nondepartment enforcement agency" means an agency that:
416          (a) (i) is a state agency other than the department; or
417          (ii) is an agency of a county, city, town, or metro township; and
418          (b) has a responsibility to enforce one or more provisions of this title.
419          (78) "Nondepartment enforcement officer" means an individual who is:
420          (a) a peace officer, examiner, or investigator; and
421          (b) employed by a nondepartment enforcement agency.
422          (79) "Off-premise beer delivery" means the delivery of beer:
423          (a) that an individual orders from an off-premise beer retailer;
424          (b) by staff of the off-premise beer retailer; and
425          (c) to a location in this state that is off the licensed premises of the off-premise beer
426     retailer.
427          [(79)] (80) (a) "Off-premise beer retailer" means a beer retailer who is:
428          (i) licensed in accordance with Chapter 7, Off-Premise Beer Retailer Act; and
429          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
430     premises.

431          (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
432          [(80)] (81) "Off-premise beer retailer state license" means a state license issued in
433     accordance with Chapter 7, Part 4, Off-Premise Beer Retailer State License.
434          [(81)] (82) "On-premise banquet license" means a license issued in accordance with
435     Chapter 5, Retail License Act, and Chapter 6, Part 6, On-Premise Banquet License.
436          [(82)] (83) "On-premise beer retailer" means a beer retailer who is:
437          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
438     accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-Premise Beer
439     Retailer License; and
440          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
441     premises:
442          (i) regardless of whether the beer retailer sells beer for consumption off the licensed
443     premises; and
444          (ii) on and after March 1, 2012, operating:
445          (A) as a tavern; or
446          (B) in a manner that meets the requirements of Subsection 32B-6-703(2)(e)(i).
447          [(83)] (84) "Opaque" means impenetrable to sight.
448          [(84)] (85) "Package agency" means a retail liquor location operated:
449          (a) under an agreement with the department; and
450          (b) by a person:
451          (i) other than the state; and
452          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
453     Agency, to sell packaged liquor for consumption off the premises of the package agency.
454          [(85)] (86) "Package agent" means a person who holds a package agency.
455          [(86)] (87) "Patron" means an individual to whom food, beverages, or services are sold,
456     offered for sale, or furnished, or who consumes an alcoholic product including:
457          (a) a customer;
458          (b) a member;
459          (c) a guest;
460          (d) an attendee of a banquet or event;
461          (e) an individual who receives room service;

462          (f) a resident of a resort; or
463          (g) a hospitality guest, as defined in Section 32B-6-1002, under a hospitality amenity
464     license.
465          [(87)] (88) (a) "Performing arts facility" means a multi-use performance space that:
466          (i) is primarily used to present various types of performing arts, including dance,
467     music, and theater;
468          (ii) contains over 2,500 seats;
469          (iii) is owned and operated by a governmental entity; and
470          (iv) is located in a city of the first class.
471          (b) "Performing arts facility" does not include a space that is used to present sporting
472     events or sporting competitions.
473          [(88)] (89) "Permittee" means a person issued a permit under:
474          (a) Chapter 9, Event Permit Act; or
475          (b) Chapter 10, Special Use Permit Act.
476          [(89)] (90) "Person subject to administrative action" means:
477          (a) a licensee;
478          (b) a permittee;
479          (c) a manufacturer;
480          (d) a supplier;
481          (e) an importer;
482          (f) one of the following holding a certificate of approval:
483          (i) an out-of-state brewer;
484          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
485          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
486          (g) staff of:
487          (i) a person listed in Subsections (89)(a) through (f); or
488          (ii) a package agent.
489          [(90)] (91) "Premises" means a building, enclosure, or room used in connection with
490     the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic
491     product, unless otherwise defined in this title or rules made by the commission.
492          [(91)] (92) "Prescription" means an order issued by a health care practitioner when:

493          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
494     to prescribe a controlled substance, other drug, or device for medicinal purposes;
495          (b) the order is made in the course of that health care practitioner's professional
496     practice; and
497          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
498          [(92)] (93) (a) "Primary spirituous liquor" means the main distilled spirit in a beverage.
499          (b) "Primary spirituous liquor" does not include a secondary flavoring ingredient.
500          [(93)] (94) "Principal license" means:
501          (a) a resort license;
502          (b) a hotel license; or
503          (c) an arena license.
504          [(94)] (95) (a) "Private event" means a specific social, business, or recreational event:
505          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
506     group; and
507          (ii) that is limited in attendance to people who are specifically designated and their
508     guests.
509          (b) "Private event" does not include an event to which the general public is invited,
510     whether for an admission fee or not.
511          [(95)] (96) "Privately sponsored event" means a specific social, business, or
512     recreational event:
513          (a) that is held in or on the premises of an on-premise banquet licensee; and
514          (b) to which entry is restricted by an admission fee.
515          [(96)] (97) (a) "Proof of age" means:
516          (i) an identification card;
517          (ii) an identification that:
518          (A) is substantially similar to an identification card;
519          (B) is issued in accordance with the laws of a state other than Utah in which the
520     identification is issued;
521          (C) includes date of birth; and
522          (D) has a picture affixed;
523          (iii) a valid driver license certificate that:

524          (A) includes date of birth;
525          (B) has a picture affixed; and
526          (C) is issued:
527          (I) under Title 53, Chapter 3, Uniform Driver License Act;
528          (II) in accordance with the laws of the state in which it is issued; or
529          (III) in accordance with federal law by the United States Department of State;
530          (iv) a military identification card that:
531          (A) includes date of birth; and
532          (B) has a picture affixed; or
533          (v) a valid passport.
534          (b) "Proof of age" does not include a driving privilege card issued in accordance with
535     Section 53-3-207.
536          [(97)] (98) "Provisions applicable to a sublicense" means:
537          (a) for a full-service restaurant sublicense, the provisions applicable to a full-service
538     restaurant license under Chapter 6, Part 2, Full-Service Restaurant License;
539          (b) for a limited-service restaurant sublicense, the provisions applicable to a
540     limited-service restaurant license under Chapter 6, Part 3, Limited-Service Restaurant License;
541          (c) for a bar establishment sublicense, the provisions applicable to a bar establishment
542     license under Chapter 6, Part 4, Bar Establishment License;
543          (d) for an on-premise banquet sublicense, the provisions applicable to an on-premise
544     banquet license under Chapter 6, Part 6, On-Premise Banquet License;
545          (e) for an on-premise beer retailer sublicense, the provisions applicable to an
546     on-premise beer retailer license under Chapter 6, Part 7, On-Premise Beer Retailer License;
547          (f) for a beer-only restaurant sublicense, the provisions applicable to a beer-only
548     restaurant license under Chapter 6, Part 9, Beer-Only Restaurant License;
549          (g) for a hospitality amenity license, the provisions applicable to a hospitality amenity
550     license under Chapter 6, Part 10, Hospitality Amenity License; and
551          (h) for a spa sublicense, the provisions applicable to the sublicense under Chapter 8d,
552     Part 2, Spa Sublicense.
553          [(98)] (99) (a) "Public building" means a building or permanent structure that is:
554          (i) owned or leased by:

555          (A) the state; or
556          (B) a local government entity; and
557          (ii) used for:
558          (A) public education;
559          (B) transacting public business; or
560          (C) regularly conducting government activities.
561          (b) "Public building" does not include a building owned by the state or a local
562     government entity when the building is used by a person, in whole or in part, for a proprietary
563     function.
564          [(99)] (100) "Public conveyance" means a conveyance that the public or a portion of
565     the public has access to and a right to use for transportation, including an airline, railroad, bus,
566     boat, or other public conveyance.
567          [(100)] (101) "Reception center" means a business that:
568          (a) operates facilities that are at least 5,000 square feet; and
569          (b) has as its primary purpose the leasing of the facilities described in Subsection
570     (100)(a) to a third party for the third party's event.
571          [(101)] (102) "Reception center license" means a license issued in accordance with
572     Chapter 5, Retail License Act, and Chapter 6, Part 8, Reception Center License.
573          [(102)] (103) (a) "Record" means information that is:
574          (i) inscribed on a tangible medium; or
575          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
576          (b) "Record" includes:
577          (i) a book;
578          (ii) a book of account;
579          (iii) a paper;
580          (iv) a contract;
581          (v) an agreement;
582          (vi) a document; or
583          (vii) a recording in any medium.
584          [(103)] (104) "Residence" means a person's principal place of abode within Utah.
585          [(104)] (105) "Resident," in relation to a resort, means the same as that term is defined

586     in Section 32B-8-102.
587          [(105)] (106) "Resort" means the same as that term is defined in Section 32B-8-102.
588          [(106)] (107) "Resort facility" is as defined by the commission by rule.
589          [(107)] (108) "Resort license" means a license issued in accordance with Chapter 5,
590     Retail License Act, and Chapter 8, Resort License Act.
591          [(108)] (109) "Responsible alcohol service plan" means a written set of policies and
592     procedures that outlines measures to prevent employees from:
593          (a) over-serving alcoholic beverages to customers;
594          (b) serving alcoholic beverages to customers who are actually, apparently, or obviously
595     intoxicated; and
596          (c) serving alcoholic beverages to minors.
597          [(109)] (110) "Restaurant" means a business location:
598          (a) at which a variety of foods are prepared;
599          (b) at which complete meals are served; and
600          (c) that is engaged primarily in serving meals.
601          [(110)] (111) "Restaurant license" means one of the following licenses issued under
602     this title:
603          (a) a full-service restaurant license;
604          (b) a limited-service restaurant license; or
605          (c) a beer-only restaurant license.
606          [(111)] (112) "Retail license" means one of the following licenses issued under this
607     title:
608          (a) a full-service restaurant license;
609          (b) a master full-service restaurant license;
610          (c) a limited-service restaurant license;
611          (d) a master limited-service restaurant license;
612          (e) a bar establishment license;
613          (f) an airport lounge license;
614          (g) an on-premise banquet license;
615          (h) an on-premise beer license;
616          (i) a reception center license;

617          (j) a beer-only restaurant license;
618          (k) a hospitality amenity license;
619          (l) a resort license;
620          (m) a hotel license; or
621          (n) an arena license.
622          [(112)] (113) "Room service" means furnishing an alcoholic product to a person in a
623     guest room or privately owned dwelling unit of a:
624          (a) hotel; or
625          (b) resort facility.
626          [(113)] (114) (a) "School" means a building in which any part is used for more than
627     three hours each weekday during a school year as a public or private:
628          (i) elementary school;
629          (ii) secondary school; or
630          (iii) kindergarten.
631          (b) "School" does not include:
632          (i) a nursery school;
633          (ii) a day care center;
634          (iii) a trade and technical school;
635          (iv) a preschool; or
636          (v) a home school.
637          [(114)] (115) "Secondary flavoring ingredient" means any spirituous liquor added to a
638     beverage for additional flavoring that is different in type, flavor, or brand from the primary
639     spirituous liquor in the beverage.
640          [(115)] (116) "Sell" or "offer for sale" means a transaction, exchange, or barter
641     whereby, for consideration, an alcoholic product is either directly or indirectly transferred,
642     solicited, ordered, delivered for value, or by a means or under a pretext is promised or
643     obtained, whether done by a person as a principal, proprietor, or as staff, unless otherwise
644     defined in this title or the rules made by the commission.
645          [(116)] (117) "Serve" means to place an alcoholic product before an individual.
646          [(117)] (118) "Sexually oriented entertainer" means a person who while in a state of
647     seminudity appears at or performs:

648          (a) for the entertainment of one or more patrons;
649          (b) on the premises of:
650          (i) a bar licensee; or
651          (ii) a tavern;
652          (c) on behalf of or at the request of the licensee described in Subsection (117)(b);
653          (d) on a contractual or voluntary basis; and
654          (e) whether or not the person is designated as:
655          (i) an employee;
656          (ii) an independent contractor;
657          (iii) an agent of the licensee; or
658          (iv) a different type of classification.
659          [(118)] (119) "Shared seating area" means the licensed premises of two or more
660     restaurant licensees that the restaurant licensees share as an area for alcoholic beverage
661     consumption in accordance with Subsection 32B-5-207(3).
662          [(119)] (120) "Single event permit" means a permit issued in accordance with Chapter
663     9, Part 3, Single Event Permit.
664          [(120)] (121) "Small brewer" means a brewer who manufactures less than 60,000
665     barrels of beer, heavy beer, and flavored malt beverage per year, as the department calculates
666     by:
667          (a) if the brewer is part of a controlled group of manufacturers, including the combined
668     volume totals of production for all breweries that constitute the controlled group of
669     manufacturers; and
670          (b) excluding beer, heavy beer, or flavored malt beverage the brewer:
671          (i) manufactures that is unfit for consumption as, or in, a beverage, as the commission
672     determines by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
673     Rulemaking Act; and
674          (ii) does not sell for consumption as, or in, a beverage.
675          [(121)] (122) "Small or unincorporated locality" means:
676          (a) a city of the third, fourth, or fifth class, as classified under Section 10-2-301;
677          (b) a town, as classified under Section 10-2-301; or
678          (c) an unincorporated area in a county of the third, fourth, or fifth class, as classified

679     under Section 17-50-501.
680          [(122)] (123) "Spa sublicense" means a sublicense:
681          (a) to a resort license or hotel license; and
682          (b) that the commission issues in accordance with Chapter 8d, Part 2, Spa Sublicense.
683          [(123)] (124) "Special use permit" means a permit issued in accordance with Chapter
684     10, Special Use Permit Act.
685          [(124)] (125) (a) "Spirituous liquor" means liquor that is distilled.
686          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
687     27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
688          [(125)] (126) "Sports center" is as defined by the commission by rule.
689          [(126)] (127) (a) "Staff" means an individual who engages in activity governed by this
690     title:
691          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
692     holder;
693          (ii) at the request of the business, including a package agent, licensee, permittee, or
694     certificate holder; or
695          (iii) under the authority of the business, including a package agent, licensee, permittee,
696     or certificate holder.
697          (b) "Staff" includes:
698          (i) an officer;
699          (ii) a director;
700          (iii) an employee;
701          (iv) personnel management;
702          (v) an agent of the licensee, including a managing agent;
703          (vi) an operator; or
704          (vii) a representative.
705          [(127)] (128) "State of nudity" means:
706          (a) the appearance of:
707          (i) the nipple or areola of a female human breast;
708          (ii) a human genital;
709          (iii) a human pubic area; or

710          (iv) a human anus; or
711          (b) a state of dress that fails to opaquely cover:
712          (i) the nipple or areola of a female human breast;
713          (ii) a human genital;
714          (iii) a human pubic area; or
715          (iv) a human anus.
716          [(128)] (129) "State of seminudity" means a state of dress in which opaque clothing
717     covers no more than:
718          (a) the nipple and areola of the female human breast in a shape and color other than the
719     natural shape and color of the nipple and areola; and
720          (b) the human genitals, pubic area, and anus:
721          (i) with no less than the following at its widest point:
722          (A) four inches coverage width in the front of the human body; and
723          (B) five inches coverage width in the back of the human body; and
724          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
725          [(129)] (130) (a) "State store" means a facility for the sale of packaged liquor:
726          (i) located on premises owned or leased by the state; and
727          (ii) operated by a state employee.
728          (b) "State store" does not include:
729          (i) a package agency;
730          (ii) a licensee; or
731          (iii) a permittee.
732          [(130)] (131) (a) "Storage area" means an area on licensed premises where the licensee
733     stores an alcoholic product.
734          (b) "Store" means to place or maintain in a location an alcoholic product.
735          [(131)] (132) "Sublicense" means:
736          (a) any of the following licenses issued as a subordinate license to, and contingent on
737     the issuance of, a principal license:
738          (i) a full-service restaurant license;
739          (ii) a limited-service restaurant license;
740          (iii) a bar establishment license;

741          (iv) an on-premise banquet license;
742          (v) an on-premise beer retailer license;
743          (vi) a beer-only restaurant license; or
744          (vii) a hospitality amenity license; or
745          (b) a spa sublicense.
746          [(132)] (133) "Supplier" means a person who sells an alcoholic product to the
747     department.
748          [(133)] (134) "Tavern" means an on-premise beer retailer who is:
749          (a) issued a license by the commission in accordance with Chapter 5, Retail License
750     Act, and Chapter 6, Part 7, On-Premise Beer Retailer License; and
751          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
752     On-Premise Beer Retailer License.
753          [(134)] (135) "Temporary beer event permit" means a permit issued in accordance with
754     Chapter 9, Part 4, Temporary Beer Event Permit.
755          [(135)] (136) "Temporary domicile" means the principal place of abode within Utah of
756     a person who does not have a present intention to continue residency within Utah permanently
757     or indefinitely.
758          [(136)] (137) "Translucent" means a substance that allows light to pass through, but
759     does not allow an object or person to be seen through the substance.
760          [(137)] (138) "Unsaleable liquor merchandise" means a container that:
761          (a) is unsaleable because the container is:
762          (i) unlabeled;
763          (ii) leaky;
764          (iii) damaged;
765          (iv) difficult to open; or
766          (v) partly filled;
767          (b) (i) has faded labels or defective caps or corks;
768          (ii) has contents that are:
769          (A) cloudy;
770          (B) spoiled; or
771          (C) chemically determined to be impure; or

772          (iii) contains:
773          (A) sediment; or
774          (B) a foreign substance; or
775          (c) is otherwise considered by the department as unfit for sale.
776          [(138)] (139) (a) "Wine" means an alcoholic product obtained by the fermentation of
777     the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or
778     not another ingredient is added.
779          (b) "Wine" includes:
780          (i) an alcoholic beverage defined as wine under 27 U.S.C. Sec. 211 and 27 C.F.R. Sec.
781     4.10; and
782          (ii) hard cider.
783          (c) "Wine" is considered liquor for purposes of this title, except as otherwise provided
784     in this title.
785          [(139)] (140) "Winery manufacturing license" means a license issued in accordance
786     with Chapter 11, Part 3, Winery Manufacturing License.
787          Section 2. Section 32B-1-701 is amended to read:
788          32B-1-701. Definitions.
789          As used in this part:
790          (1) "Off-premise retail manager" means an individual who manages operations at a
791     premises that is licensed under Chapter 7, Off-Premise Beer Retailer Act.
792          (2) (a) "Off-premise retail staff" means an individual who:
793          (i) sells beer at a premises that is licensed under Chapter 7, Off-Premise Beer Retailer
794     Act[.]; or
795          (ii) makes an off-premise beer delivery.
796          (b) "Off-premise retail staff" does not include an off-premise retail manager.
797          (3) "Retail manager" means an individual who:
798          (a) manages operations at a premises that is licensed under Chapter 5, Retail License
799     Act; or
800          (b) supervises the furnishing of an alcoholic product at a premises that is licensed
801     under Chapter 5, Retail License Act.
802          (4) (a) "Retail staff" means an individual who serves an alcoholic product at a premises

803     licensed under Chapter 5, Retail License Act.
804          (b) "Retail staff" does not include a retail manager.
805          Section 3. Section 32B-7-202 is amended to read:
806          32B-7-202. General operational requirements for off-premise beer retailer.
807          (1) (a) An off-premise beer retailer or staff of the off-premise beer retailer shall comply
808     with the provisions of this title and any applicable rules made by the commission.
809          (b) Failure to comply with this section may result in:
810          (i) a suspension or revocation of a local license; and[,]
811          (ii) [on or after July 1, 2018,] disciplinary action in accordance with Chapter 3,
812     Disciplinary Actions and Enforcement Act.
813          (2) (a) (i) An off-premise beer retailer may not purchase, acquire, possess for the
814     purpose of resale, or sell beer, except beer that the off-premise beer retailer lawfully purchases
815     from:
816          (A) a beer wholesaler licensee; or
817          (B) a small brewer that manufactures the beer.
818          (ii) A violation of Subsection (2)(a) is a class A misdemeanor.
819          (b) (i) If an off-premise beer retailer purchases beer under this Subsection (2) from a
820     beer wholesaler licensee, the off-premise beer retailer shall purchase beer only from a beer
821     wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area
822     in which the off-premise beer retailer is located, unless an alternate wholesaler is authorized by
823     the department to sell to the off-premise beer retailer as provided in Section 32B-13-301.
824          (ii) A violation of Subsection (2)(b) is a class B misdemeanor.
825          (3) An off-premise beer retailer may not possess, sell, offer for sale, or furnish beer in a
826     container larger than two liters.
827          (4) (a) Staff of an off-premise beer retailer, while on duty, may not:
828          (i) consume an alcoholic product; or
829          (ii) be intoxicated.
830          (b) A minor may not sell beer on the licensed premises of an off-premise beer retailer
831     unless:
832          (i) the sale is done under the supervision of a person 21 years old or older who is on the
833     licensed premises; and

834          (ii) the minor is at least 16 years old.
835          (5) An off-premise beer retailer may not sell, offer for sale, or furnish an alcoholic
836     product to:
837          (a) a minor;
838          (b) a person actually, apparently, or obviously intoxicated;
839          (c) a known interdicted person; or
840          (d) a known habitual drunkard.
841          (6) (a) Subject to the other provisions of this Subsection (6), an off-premise beer
842     retailer shall:
843          (i) display all beer accessible by and visible to a patron in no more than two locations
844     on the retail sales floor, each of which is:
845          (A) a display cabinet, cooler, aisle, floor display, or room where beer is the only
846     beverage displayed; and
847          (B) not adjacent to a display of nonalcoholic beverages, unless the location is a cooler
848     with a door from which the nonalcoholic beverages are not accessible, or the beer is separated
849     from the display of nonalcoholic beverages by a display of one or more nonbeverage products
850     or another physical divider; and
851          (ii) display a sign in the area described in Subsection (6)(a)(i) that:
852          (A) is prominent;
853          (B) is easily readable by a consumer;
854          (C) meets the requirements for format established by the commission by rule; and
855          (D) reads in print that is no smaller than .5 inches, bold type, "These beverages contain
856     alcohol. Please read the label carefully."
857          (b) Notwithstanding Subsection (6)(a), a nonalcoholic beer may be displayed with beer
858     if the nonalcoholic beer is labeled, packaged, or advertised as a nonalcoholic beer.
859          (c) The requirements of this Subsection (6) apply to beer notwithstanding that it is
860     labeled, packaged, or advertised as:
861          (i) a malt cooler; or
862          (ii) a beverage that may provide energy.
863          (d) A violation of this Subsection (6) is an infraction.
864          [(e) (i) Except as provided in Subsection (6)(e)(ii), the provisions of Subsection

865     (6)(a)(i) apply on and after May 9, 2017.]
866          [(ii) For a beer retailer that operates two or more off-premise beer retailers, the
867     provisions of Subsection (6)(a)(i) apply on and after August 1, 2017.]
868          (7) (a) Staff of an off-premise beer retailer who directly supervises the sale of beer or
869     who sells or delivers beer to a patron for consumption off the premises of the off-premise beer
870     retailer shall wear a unique identification badge:
871          (i) on the front of the staff's clothing;
872          (ii) visible above the waist;
873          (iii) bearing the staff's:
874          (A) first or last name;
875          (B) initials; or
876          (C) unique identification in letters or numbers; and
877          (iv) with the number or letters on the unique identification badge being sufficiently
878     large to be clearly visible and identifiable while engaging in or directly supervising the retail
879     sale of beer.
880          (b) An off-premise beer retailer shall make and maintain a record of each current staff's
881     unique identification badge assigned by the off-premise beer retailer that includes the staff's:
882          (i) full name;
883          (ii) address; and
884          (iii) (A) driver license number; or
885          (B) similar identification number.
886          (c) An off-premise beer retailer shall make available a record required to be made or
887     maintained under this Subsection (7) for immediate inspection by:
888          (i) a peace officer;
889          (ii) a representative of the local authority that issues the off-premise beer retailer
890     license; or
891          (iii) for an off-premise beer retailer state license, a representative of the commission or
892     department.
893          (d) A local authority may impose a fine of up to $250 against an off-premise beer
894     retailer that does not comply or require its staff to comply with this Subsection (7).
895          (8) (a) An off-premise beer retailer may sell, offer for sale, or furnish beer through a

896     drive through window.
897          (b) Subsection (8)(a) does not modify the display limitations and requirements
898     described in Subsection (6).
899          (9) (a) Subject to Subsection (9)(b), an off-premise beer retailer may allow the staff of
900     the off-premise beer retailer to make an off-premise beer delivery if:
901          (i) the off-premise beer retailer does not process payment for the order until after the
902     time at which the delivery of the beer is complete;
903          (ii) the order is for the lesser of:
904          (A) four cases; or
905          (B) 1,152 ounces of beer;
906          (iii) the staff:
907          (A) is at least 21 years old;
908          (B) verifies that the name on the proof of age of the individual to whom the staff
909     delivers the beer matches the name of the individual who ordered the beer;
910          (C) only delivers the beer to a physical address; and
911          (D) only delivers the beer during the period that begins at 10:00 a.m. and ends at 11:50
912     p.m.;
913          (iv) the staff electronically records for the delivery:
914          (A) verification of proof of age for the individual to whom the staff delivers the beer
915     that includes no more than the individual's name, age, birth date, and gender, and the status of,
916     expiration date of, and number assigned by the issuing authority to, the individual's proof of
917     age;
918          (B) the date on which the staff delivers the beer;
919          (C) the time at which the staff delivers the beer; and
920          (D) the physical address to which the staff delivers the beer; and
921          (v) the off-premise beer retailer keeps for one year after the day on which the delivery
922     occurs:
923          (A) the electronic record described in Subsection (9)(a)(iv); and
924          (B) the receipt for the order.
925          (b) (i) Before the staff of an off-premise beer retailer makes an off-premise beer
926     delivery, the off-premise beer retailer shall apply for and obtain permission from the

927     department to make off-premise beer deliveries.
928          (ii) The commission shall determine by rule made in accordance with Title 63G,
929     Chapter 3, Utah Administrative Rulemaking Act, the manner in which an off-premise beer
930     retailer applies for permission to make off-premise beer deliveries under Subsection (9)(b)(i).
931          (c) An off-premise beer retailer shall make the information described in Subsection
932     (9)(a)(v) available upon request to:
933          (i) the department;
934          (ii) the local authority; or
935          (iii) the Department of Public Safety.
936          [(9)] (10) An off-premise beer retailer may not on the licensed premises:
937          (a) engage in or permit any form of:
938          (i) gambling, as defined in Section 76-10-1101; or
939          (ii) fringe gambling, as defined in Section 76-10-1101;
940          (b) have any fringe gaming device, video gaming device, or gambling device or record
941     as defined in Section 76-10-1101; or
942          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
943     the risking of something of value for a return or for an outcome when the return or outcome is
944     based upon an element of chance, excluding the playing of an amusement device that confers
945     only an immediate and unrecorded right of replay not exchangeable for value.
946          [(10)] (11) An off-premise beer retailer may not knowingly allow a person on the
947     licensed premises to, in violation of Title 58, Chapter 37, Utah Controlled Substances Act, or
948     Chapter 37a, Utah Drug Paraphernalia Act:
949          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
950     58-37-2; or
951          (b) use, deliver, or possess, with the intent to deliver, drug paraphernalia, as defined in
952     Section 58-37a-3.
953          Section 4. Section 62A-15-401 is amended to read:
954          62A-15-401. Alcohol training and education seminar.
955          (1) As used in this [part] section:
956          (a) "Instructor" means a person that directly provides the instruction during an alcohol
957     training and education seminar for a seminar provider.

958          (b) "Licensee" means a person who is:
959          (i) (A) a new or renewing licensee under Title 32B, Alcoholic Beverage Control Act;
960     and
961          (B) engaged in the retail sale of an alcoholic product for consumption on the premises
962     of the licensee; or
963          (ii) a business that is:
964          (A) a new or renewing licensee licensed by a city, town, or county; and
965          (B) engaged in the retail sale of beer for consumption off the premises of the licensee.
966          (c) "Off-premise beer delivery" means the same as that term is defined in Section
967     32B-1-102.
968          [(c)] (d) "Off-premise beer retailer" [is as] means the same as that term is defined in
969     Section 32B-1-102.
970          [(d)] (e) "Seminar provider" means a person other than the division who provides an
971     alcohol training and education seminar meeting the requirements of this section.
972          (2) (a) This section applies to:
973          (i) a retail manager as defined in Section 32B-1-701;
974          (ii) retail staff as defined in Section 32B-1-701; and
975          (iii) an individual who, as defined by division rule made in accordance with Title 63G,
976     Chapter 3, Utah Administrative Rulemaking Act:
977          (A) directly supervises the sale of beer to a customer for consumption off the premises
978     of an off-premise beer retailer; [or]
979          (B) sells beer to a customer for consumption off the premises of an off-premise beer
980     retailer[.]; or
981          (C) makes an off-premise beer delivery to an individual.
982          (b) If the individual does not have a valid record that the individual has completed an
983     alcohol training and education seminar, an individual described in Subsection (2)(a) shall:
984          (i) (A) complete an alcohol training and education seminar within 30 days [of the
985     following] after the day on which one of the following occurs if the individual is described in
986     Subsection (2)(a)(i) or (ii):
987          (I) if the individual is an employee, the day on which the individual begins
988     employment;

989          (II) if the individual is an independent contractor, the day on which the individual is
990     first hired; or
991          (III) if the individual holds an ownership interest in the licensee, the day [that] on
992     which the individual first engages in an activity that would result in that individual being
993     required to complete an alcohol training and education seminar; or
994          (B) complete an alcohol training and education seminar within the time periods
995     specified in Subsection 32B-1-703(1) if the individual is described in Subsection [(2)(a)(iii)(A)
996     or (B)] (2)(a)(iii); and
997          (ii) pay a fee:
998          (A) to the seminar provider; and
999          (B) that is equal to or greater than the amount established under Subsection (4)(h).
1000          (c) An individual shall have a valid record that the individual completed an alcohol
1001     training and education seminar within the time period provided in this Subsection (2) to engage
1002     in an activity described in Subsection (2)(a).
1003          (d) A record that an individual has completed an alcohol training and education
1004     seminar is valid for:
1005          (i) three years [from] after the day on which the record is issued for an individual
1006     described in Subsection (2)(a)(i) or (ii); and
1007          (ii) five years [from] after the day on which the record is issued for an individual
1008     described in Subsection [(2)(a)(iii)(A) or (B)] (2)(a)(iii).
1009          (e) [On and after July 1, 2011, to] To be considered as having completed an alcohol
1010     training and education seminar, an individual shall:
1011          (i) attend the alcohol training and education seminar and take any test required to
1012     demonstrate completion of the alcohol training and education seminar in the physical presence
1013     of an instructor of the seminar provider; or
1014          (ii) complete the alcohol training and education seminar and take any test required to
1015     demonstrate completion of the alcohol training and education seminar through an online course
1016     or testing program that meets the requirements described in Subsection (2)(f).
1017          (f) (i) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
1018     Administrative Rulemaking Act, establish one or more requirements for an online course or
1019     testing program described in Subsection (2)(e) that are designed to inhibit fraud in the use of

1020     the online course or testing program.
1021          (ii) In developing the requirements by rule the division shall consider whether to
1022     require:
1023          [(i)] (A) authentication that the an individual accurately identifies the individual as
1024     taking the online course or test;
1025          [(ii)] (B) measures to ensure that an individual taking the online course or test is
1026     focused on training material throughout the entire training period;
1027          [(iii)] (C) measures to track the actual time an individual taking the online course or
1028     test is actively engaged online;
1029          [(iv)] (D) a seminar provider to provide technical support, such as requiring a
1030     telephone number, email, or other method of communication that allows an individual taking
1031     the online course or test to receive assistance if the individual is unable to participate online
1032     because of technical difficulties;
1033          [(v)] (E) a test to meet quality standards, including randomization of test questions and
1034     maximum time limits to take a test;
1035          [(vi)] (F) a seminar provider to have a system to reduce fraud as to who completes an
1036     online course or test, such as requiring a distinct online certificate with information printed on
1037     the certificate that identifies the person taking the online course or test, or requiring measures
1038     to inhibit duplication of a certificate;
1039          [(vii)] (G) measures for the division to audit online courses or tests;
1040          [(viii)] (H) measures to allow an individual taking an online course or test to provide
1041     an evaluation of the online course or test;
1042          [(ix)] (I) a seminar provider to track the Internet protocol address or similar electronic
1043     location of an individual who takes an online course or test;
1044          [(x)] (J) an individual who takes an online course or test to use an e-signature; or
1045          [(xi)] (K) a seminar provider to invalidate a certificate if the seminar provider learns
1046     that the certificate does not accurately reflect the individual who took the online course or test.
1047          (3) (a) A licensee may not permit an individual who is not in compliance with
1048     Subsection (2) to:
1049          (i) serve or supervise the serving of an alcoholic product to a customer for
1050     consumption on the premises of the licensee;

1051          (ii) engage in any activity that would constitute managing operations at the premises of
1052     a licensee that engages in the retail sale of an alcoholic product for consumption on the
1053     premises of the licensee;
1054          (iii) directly supervise the sale of beer to a customer for consumption off the premises
1055     of an off-premise beer retailer; [or]
1056          (iv) sell beer to a customer for consumption off the premises of an off-premise beer
1057     retailer[.]; or
1058          (v) make an off-premise beer delivery.
1059          (b) A licensee that violates Subsection (3)(a) is subject to Section 32B-1-702.
1060          (4) The division shall:
1061          (a) (i) provide alcohol training and education seminars; or
1062          (ii) certify one or more seminar providers;
1063          (b) establish the curriculum for an alcohol training and education seminar that includes
1064     the following subjects:
1065          (i) (A) alcohol as a drug; and
1066          (B) alcohol's effect on the body and behavior;
1067          (ii) recognizing the problem drinker or signs of intoxication;
1068          (iii) an overview of state alcohol laws related to responsible beverage sale or service,
1069     as determined in consultation with the Department of Alcoholic Beverage Services;
1070          (iv) dealing with the problem customer, including ways to terminate sale or service;
1071     and
1072          (v) for those supervising or engaging in the retail sale of an alcoholic product for
1073     consumption on the premises of a licensee, alternative means of transportation to get the
1074     customer safely home;
1075          (c) recertify each seminar provider every three years;
1076          (d) monitor compliance with the curriculum described in Subsection (4)(b);
1077          (e) maintain for at least five years a record of every person who has completed an
1078     alcohol training and education seminar;
1079          (f) provide the information described in Subsection (4)(e) on request to:
1080          (i) the Department of Alcoholic Beverage Services;
1081          (ii) law enforcement; or

1082          (iii) a person licensed by the state or a local government to sell an alcoholic product;
1083          (g) provide the Department of Alcoholic Beverage Services on request a list of any
1084     seminar provider certified by the division; and
1085          (h) establish a fee amount for each person attending an alcohol training and education
1086     seminar that is sufficient to offset the division's cost of administering this section.
1087          (5) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
1088     Administrative Rulemaking Act:
1089          (a) define what constitutes under this section an individual who:
1090          (i) manages operations at the premises of a licensee engaged in the retail sale of an
1091     alcoholic product for consumption on the premises of the licensee;
1092          (ii) supervises the serving of an alcoholic product to a customer for consumption on the
1093     premises of a licensee;
1094          (iii) serves an alcoholic product to a customer for consumption on the premises of a
1095     licensee;
1096          (iv) directly supervises the sale of beer to a customer for consumption off the premises
1097     of an off-premise beer retailer; [or]
1098          (v) sells beer to a customer for consumption off the premises of an off-premise beer
1099     retailer; or
1100          (vi) makes an off-premise beer delivery;
1101          (b) establish criteria for certifying and recertifying a seminar provider; and
1102          (c) establish guidelines for the manner in which an instructor provides an alcohol
1103     education and training seminar.
1104          (6) A seminar provider shall:
1105          (a) obtain recertification by the division every three years;
1106          (b) ensure that an instructor used by the seminar provider:
1107          (i) follows the curriculum established under this section; and
1108          (ii) conducts an alcohol training and education seminar in accordance with the
1109     guidelines established by rule;
1110          (c) ensure that any information provided by the seminar provider or instructor of a
1111     seminar provider is consistent with:
1112          (i) the curriculum established under this section; and

1113          (ii) this section;
1114          (d) provide the division with the names of all persons who complete an alcohol training
1115     and education seminar provided by the seminar provider;
1116          (e) (i) collect a fee for each person attending an alcohol training and education seminar
1117     in accordance with Subsection (2); and
1118          (ii) forward to the division the portion of the fee that is equal to the amount described
1119     in Subsection (4)(h); and
1120          (f) issue a record to an individual that completes an alcohol training and education
1121     seminar provided by the seminar provider.
1122          (7) (a) If after a hearing conducted in accordance with Title 63G, Chapter 4,
1123     Administrative Procedures Act, the division finds that a seminar provider violates this section
1124     or that an instructor of the seminar provider violates this section, the division may:
1125          (i) suspend the certification of the seminar provider for a period not to exceed 90 days
1126     after the day on which the suspension begins;
1127          (ii) revoke the certification of the seminar provider;
1128          (iii) require the seminar provider to take corrective action regarding an instructor; or
1129          (iv) prohibit the seminar provider from using an instructor until such time that the
1130     seminar provider establishes to the satisfaction of the division that the instructor is in
1131     compliance with Subsection (6)(b).
1132          (b) The division may certify a seminar provider whose certification is revoked:
1133          (i) no sooner than 90 days [from the date the] after the day on which the certification is
1134     revoked; and
1135          (ii) if the seminar provider establishes to the satisfaction of the division that the
1136     seminar provider will comply with this section.