This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Mon, Feb 27, 2023 at 4:15 PM by lpoole.
Senator Jerry W. Stevenson proposes the following substitute bill:


1     
ALCOHOLIC BEVERAGE CONTROL ACT AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jerry W. Stevenson

5     
House Sponsor: Jefferson S. Burton

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Alcoholic Beverage Control Act and related provisions.
10     Highlighted Provisions:
11          This bill:
12          ▸     creates and modifies definitions;
13          ▸     modifies the proximity within which a hotel licensee may be to a community
14     location;
15          ▸     clarifies hotel and resort licensee room service requirements;
16          ▸     modifies provisions related to flavored beer, heavy beer, and other malt beverages;
17          ▸     establishes a process for the Department of Alcoholic Beverage Services
18     (department) to review and approve flavoring in beer;
19          ▸     addresses minor ownership in an entity that applies for an alcohol license, package
20     agency, or permit;
21          ▸     prohibits the department from purchasing or stocking spirituous liquor in a
22     container under 200 milliliters except for certain purposes;
23          ▸     modifies alcohol training and education requirements for certain staff of an alcohol
24     licensee;
25          ▸     requires the Alcoholic Beverage Services Commission (commission) to provide

26     information regarding an off-premise beer retailer licensee's sale of an alcoholic product to a
27     minor to the Department of Public Safety and requires the Department of Public Safety to
28     manage the information;
29          ▸     modifies alcohol license renewal fee requirements;
30          ▸     removes provisions requiring the clerk of the court to notify the department of
31     violations of the Alcoholic Beverage Control Act or alcohol-related local
32     ordinances;
33          ▸     prohibits storage of an alcoholic beverage for sale if a person is not authorized to
34     sell the alcoholic beverage;
35          ▸     modifies license forfeiture requirements for retail licensees that cease operations;
36          ▸     allows certain restaurant venues to obtain an on-premise banquet license for the
37     same premises as a restaurant license;
38          ▸     limits the number of on-premise banquet licenses the commission may issue to a
39     restaurant venue;
40          ▸     addresses the proximity within which a restaurant venue on-premise banquet license
41     may be to a community location;
42          ▸     allows a hotel or resort to obtain an off-premise beer retailer state license;
43          ▸     allows a restaurant patron who is escorted by a restaurant employee to carry an
44     unfinished drink from the dispensing area to the dining area;
45          ▸     modifies serving size requirements for hard cider;
46          ▸     modifies requirements for master full-service restaurant licensees;
47          ▸     exempts resort sublicenses from the commission's calculation regarding the total
48     number of retail licenses issued;
49          ▸     exempts a certain number of full-service restaurant licenses from the population
50     quota applicable to full-service restaurant licenses;
51          ▸     exempts a certain number of bar establishment licenses from the population quota
52     applicable to bar establishment licenses;
53          ▸     modifies requirements for certain equity licensees to maintain a substantial
54     recreational facility;
55          ▸     provides that an equity licensee may have more than one dispensing structure on the
56     equity licensee's premises;

57          ▸     increases the number of airport lounge licenses the commission may issue for an
58     international airport;
59          ▸     allows the commission to issue a certain number of airport lounge licenses to a
60     domestic airport;
61          ▸     requires a person who transports liquor to a domestic airport to obtain a liquor
62     transport license;
63          ▸     modifies department notice requirements for, and the process for issuance of, an
64     event permit;
65          ▸     allows the commission to deem certain licenses forfeited for the licensee's failure to
66     meet change in ownership notice requirements;
67          ▸     modifies the time period within which a local industry representative licensee and
68     liquor warehousing licensee is required to notify the department regarding change of
69     ownership;
70          ▸     modifies provisions related to management agreements concerning a business that is
71     utilizing an alcohol license;
72          ▸     clarifies provisions related to alcohol inventory transfer agreements; and
73          ▸     makes technical and conforming changes.
74     Money Appropriated in this Bill:
75          None
76     Other Special Clauses:
77          None
78     Utah Code Sections Affected:
79     AMENDS:
80          32B-1-102, as last amended by Laws of Utah 2022, Chapter 447
81          32B-1-202, as last amended by Laws of Utah 2021, Chapter 291
82          32B-1-202.1, as last amended by Laws of Utah 2022, Chapter 447
83          32B-1-304, as last amended by Laws of Utah 2021, Chapter 291
84          32B-1-603, as last amended by Laws of Utah 2022, Chapter 447
85          32B-1-703, as renumbered and amended by Laws of Utah 2019, Chapter 403
86          32B-1-705, as renumbered and amended by Laws of Utah 2019, Chapter 403
87          32B-2-202, as last amended by Laws of Utah 2022, Chapter 447

88          32B-2-303, as last amended by Laws of Utah 2011, Chapter 307
89          32B-4-202, as last amended by Laws of Utah 2016, Chapter 176
90          32B-4-418, as enacted by Laws of Utah 2010, Chapter 276
91          32B-5-304, as last amended by Laws of Utah 2022, Chapter 447
92          32B-5-309, as last amended by Laws of Utah 2022, Chapter 447
93          32B-6-203, as last amended by Laws of Utah 2019, Chapter 403
94          32B-6-205.2, as last amended by Laws of Utah 2022, Chapter 447
95          32B-6-206, as last amended by Laws of Utah 2019, Chapter 403
96          32B-6-305.2, as last amended by Laws of Utah 2022, Chapter 447
97          32B-6-403, as last amended by Laws of Utah 2018, Chapter 249
98          32B-6-404, as last amended by Laws of Utah 2018, Chapter 249
99          32B-6-406, as last amended by Laws of Utah 2020, Chapter 219
100          32B-6-503, as last amended by Laws of Utah 2020, Fifth Special Session, Chapter 3
101          32B-6-603, as last amended by Laws of Utah 2020, Chapter 219
102          32B-6-605, as last amended by Laws of Utah 2022, Chapter 447
103          32B-6-905.1, as last amended by Laws of Utah 2022, Chapter 447
104          32B-6-1005, as last amended by Laws of Utah 2022, Chapter 447
105          32B-7-409, as enacted by Laws of Utah 2020, Chapter 219
106          32B-8-401, as last amended by Laws of Utah 2020, Chapter 219
107          32B-8b-102, as last amended by Laws of Utah 2020, Chapter 219
108          32B-8b-301, as last amended by Laws of Utah 2022, Chapter 447
109          32B-8d-103, as last amended by Laws of Utah 2022, Chapter 447
110          32B-8d-205, as last amended by Laws of Utah 2022, Chapter 447
111          32B-9-202, as last amended by Laws of Utah 2016, Chapter 35
112          32B-11-209, as enacted by Laws of Utah 2010, Chapter 276
113          32B-11-210, as enacted by Laws of Utah 2016, Chapter 266
114          32B-11-609, as enacted by Laws of Utah 2010, Chapter 276
115          32B-12-302, as enacted by Laws of Utah 2010, Chapter 276
116          32B-17-102, as enacted by Laws of Utah 2020, Fifth Special Session, Chapter 3
117          32B-18-204, as renumbered and amended by Laws of Utah 2022, Chapter 447
118          32B-18-205, as enacted by Laws of Utah 2022, Chapter 447

119          62A-15-401, as last amended by Laws of Utah 2022, Chapter 447
120     ENACTS:
121          32B-1-603.5, Utah Code Annotated 1953
122     

123     Be it enacted by the Legislature of the state of Utah:
124          Section 1. Section 32B-1-102 is amended to read:
125          32B-1-102. Definitions.
126          As used in this title:
127          (1) "Airport lounge" means a business location:
128          (a) at which an alcoholic product is sold at retail for consumption on the premises; and
129          (b) that is located at an international airport or domestic airport.
130          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
131     Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
132          (3) "Alcoholic beverage" means the following:
133          (a) beer; or
134          (b) liquor.
135          (4) (a) "Alcoholic product" means a product that:
136          (i) contains at least .5% of alcohol by volume; and
137          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
138     process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
139     in an amount equal to or greater than .5% of alcohol by volume.
140          (b) "Alcoholic product" includes an alcoholic beverage.
141          (c) "Alcoholic product" does not include any of the following common items that
142     otherwise come within the definition of an alcoholic product:
143          (i) except as provided in Subsection (4)(d), an extract;
144          (ii) vinegar;
145          (iii) preserved nonintoxicating cider;
146          (iv) essence;
147          (v) tincture;
148          (vi) food preparation; or
149          (vii) an over-the-counter medicine.

150          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
151     when it is used as a flavoring in the manufacturing of an alcoholic product.
152          (5) "Alcohol training and education seminar" means a seminar that is:
153          (a) required by Chapter 1, Part 7, Alcohol Training and Education Act; and
154          (b) described in Section 62A-15-401.
155          (6) "Arena" means an enclosed building:
156          (a) that is managed by:
157          (i) the same person who owns the enclosed building;
158          (ii) a person who has a majority interest in each person who owns or manages a space
159     in the enclosed building; or
160          (iii) a person who has authority to direct or exercise control over the management or
161     policy of each person who owns or manages a space in the enclosed building;
162          (b) that operates as a venue; and
163          (c) that has an occupancy capacity of at least 12,500.
164          (7) "Arena license" means a license issued in accordance with Chapter 5, Retail
165     License Act, and Chapter 8c, Arena License Act.
166          (8) "Banquet" means an event:
167          (a) that is a private event or a privately sponsored event;
168          (b) that is held at one or more designated locations approved by the commission in or
169     on the premises of:
170          (i) a hotel;
171          (ii) a resort facility;
172          (iii) a sports center;
173          (iv) a convention center;
174          (v) a performing arts facility; [or]
175          (vi) an arena; or
176          (vii) a restaurant venue;
177          (c) for which there is a contract:
178          (i) between a person operating a facility listed in Subsection (8)(b) and another person
179     that has common ownership of less than 20% with the person operating the facility; and
180          (ii) under which the person operating a facility listed in Subsection (8)(b) is required to

181     provide an alcoholic product at the event; and
182          (d) at which food and alcoholic products may be sold, offered for sale, or furnished.
183          (9) (a) "Bar establishment license" means a license issued in accordance with Chapter
184     5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License.
185          (b) "Bar establishment license" includes:
186          (i) a dining club license;
187          (ii) an equity license;
188          (iii) a fraternal license; or
189          (iv) a bar license.
190          (10) "Bar license" means a license issued in accordance with Chapter 5, Retail License
191     Act, and Chapter 6, Part 4, Bar Establishment License.
192          (11) (a) "Beer" means a product that:
193          (i) contains:
194          (A) at least .5% of alcohol by volume; and
195          (B) no more than 5% of alcohol by volume or 4% by weight;
196          (ii) is obtained by fermentation, infusion, or decoction of:
197          (A) malt; or
198          (B) a malt substitute; and
199          (iii) is clearly marketed, labeled, and identified as:
200          (A) beer;
201          (B) ale;
202          (C) porter;
203          (D) stout;
204          (E) lager;
205          (F) a malt;
206          (G) a malted beverage; or
207          (H) seltzer.
208          (b) "Beer" may contain:
209          (i) hops extract; [or]
210          (ii) caffeine, if the caffeine is a natural constituent of an added ingredient[.]; or
211          (iii) a propylene glycol-, ethyl alcohol-, or ethanol-based flavoring agent that:

212          (A) is used in the production of beer;
213          (B) is in a formula approved by the federal Alcohol and Tobacco Tax and Trade
214     Bureau after the formula is filed for approval under 27 C.F.R. Sec. 25.55; and
215          (C) does not contribute more than 10% of the overall alcohol content of the beer.
216          (c) "Beer" does not include:
217          (i) a flavored malt beverage;
218          (ii) a product that contains alcohol derived from:
219          (A) except as provided in Subsection (11)(b)(iii), spirituous liquor; or
220          (B) wine; or
221          (iii) a product that contains an additive masking or altering a physiological effect of
222     alcohol, including kratom, kava, cannabidiol, or natural or synthetic tetrahydrocannabinol.
223          (12) "Beer-only restaurant license" means a license issued in accordance with Chapter
224     5, Retail License Act, and Chapter 6, Part 9, Beer-Only Restaurant License.
225          (13) "Beer retailer" means a business that:
226          (a) is engaged, primarily or incidentally, in the retail sale of beer to a patron, whether
227     for consumption on or off the business premises; and
228          (b) is licensed as:
229          (i) an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-Premise Beer
230     Retailer Local Authority; or
231          (ii) an on-premise beer retailer, in accordance with Chapter 5, Retail License Act, and
232     Chapter 6, Part 7, On-Premise Beer Retailer License.
233          (14) "Beer wholesaling license" means a license:
234          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
235          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
236     retail licensees or off-premise beer retailers.
237          (15) "Billboard" means a public display used to advertise, including:
238          (a) a light device;
239          (b) a painting;
240          (c) a drawing;
241          (d) a poster;
242          (e) a sign;

243          (f) a signboard; or
244          (g) a scoreboard.
245          (16) "Brewer" means a person engaged in manufacturing:
246          (a) beer;
247          (b) heavy beer; or
248          (c) a flavored malt beverage.
249          (17) "Brewery manufacturing license" means a license issued in accordance with
250     Chapter 11, Part 5, Brewery Manufacturing License.
251          (18) "Certificate of approval" means a certificate of approval obtained from the
252     department under Section 32B-11-201.
253          (19) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by
254     a bus company to a group of persons pursuant to a common purpose:
255          (a) under a single contract;
256          (b) at a fixed charge in accordance with the bus company's tariff; and
257          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
258     motor vehicle, and a driver to travel together to one or more specified destinations.
259          (20) "Church" means a building:
260          (a) set apart for worship;
261          (b) in which religious services are held;
262          (c) with which clergy is associated; and
263          (d) that is tax exempt under the laws of this state.
264          (21) "Commission" means the Alcoholic Beverage Services Commission created in
265     Section 32B-2-201.
266          (22) "Commissioner" means a member of the commission.
267          (23) "Community location" means:
268          (a) a public or private school;
269          (b) a church;
270          (c) a public library;
271          (d) a public playground; or
272          (e) a public park.
273          (24) "Community location governing authority" means:

274          (a) the governing body of the community location; or
275          (b) if the commission does not know who is the governing body of a community
276     location, a person who appears to the commission to have been given on behalf of the
277     community location the authority to prohibit an activity at the community location.
278          (25) "Container" means a receptacle that contains an alcoholic product, including:
279          (a) a bottle;
280          (b) a vessel; or
281          (c) a similar item.
282          (26) "Controlled group of manufacturers" means as the commission defines by rule
283     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
284          (27) "Convention center" means a facility that is:
285          (a) in total at least 30,000 square feet; and
286          (b) otherwise defined as a "convention center" by the commission by rule.
287          (28) (a) "Counter" means a surface or structure in a dining area of a licensed premises
288     where seating is provided to a patron for service of food.
289          (b) "Counter" does not include a dispensing structure.
290          (29) "Crime involving moral turpitude" is as defined by the commission by rule.
291          (30) "Department" means the Department of Alcoholic Beverage Services created in
292     Section 32B-2-203.
293          (31) "Department compliance officer" means an individual who is:
294          (a) an auditor or inspector; and
295          (b) employed by the department.
296          (32) "Department sample" means liquor that is placed in the possession of the
297     department for testing, analysis, and sampling.
298          (33) "Dining club license" means a license issued in accordance with Chapter 5, Retail
299     License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
300     commission as a dining club license.
301          (34) "Director," unless the context requires otherwise, means the director of the
302     department.
303          (35) "Disciplinary proceeding" means an adjudicative proceeding permitted under this
304     title:

305          (a) against a person subject to administrative action; and
306          (b) that is brought on the basis of a violation of this title.
307          (36) (a) Subject to Subsection (36)(b), "dispense" means:
308          (i) drawing an alcoholic product; and
309          (ii) using the alcoholic product at the location from which it was drawn to mix or
310     prepare an alcoholic product to be furnished to a patron of the retail licensee.
311          (b) The definition of "dispense" in this Subsection (36) applies only to:
312          (i) a full-service restaurant license;
313          (ii) a limited-service restaurant license;
314          (iii) a reception center license;
315          (iv) a beer-only restaurant license;
316          (v) a bar license;
317          (vi) an on-premise beer retailer;
318          (vii) an airport lounge license;
319          (viii) an on-premise banquet license; and
320          (ix) a hospitality amenity license.
321          (37) "Dispensing structure" means a surface or structure on a licensed premises:
322          (a) where an alcoholic product is dispensed; or
323          (b) from which an alcoholic product is served.
324          (38) "Distillery manufacturing license" means a license issued in accordance with
325     Chapter 11, Part 4, Distillery Manufacturing License.
326          (39) "Distressed merchandise" means an alcoholic product in the possession of the
327     department that is saleable, but for some reason is unappealing to the public.
328          (40) "Domestic airport" means an airport that:
329          (a) has at least 15,000 commercial airline passenger boardings in any five-year period;
330          (b) receives scheduled commercial passenger aircraft service; and
331          (c) is not an international airport.
332          [(40)] (41) "Equity license" means a license issued in accordance with Chapter 5,
333     Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
334     commission as an equity license.
335          [(41)] (42) "Event permit" means:

336          (a) a single event permit; or
337          (b) a temporary beer event permit.
338          [(42)] (43) "Exempt license" means a license exempt under Section 32B-1-201 from
339     being considered in determining the total number of retail licenses that the commission may
340     issue at any time.
341          [(43)] (44) (a) "Flavored malt beverage" means a beverage:
342          (i) that contains at least .5% alcohol by volume;
343          (ii) for which the producer is required to file a formula for approval with the federal
344     Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 because the beverage
345     is treated by processing, filtration, or another method of manufacture that is not generally
346     recognized as a traditional process in the production of a beer, ale, porter, stout, lager, or malt
347     liquor; and
348          (iii) for which the producer is required to file a formula for approval with the federal
349     Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 because the beverage
350     includes an ingredient containing alcohol.
351          (b) "Flavored malt beverage" may contain a propylene glycol-, ethyl alcohol-, or
352     ethanol-based flavoring agent that contributes to the overall alcohol content of the beverage.
353          (c) "Flavored malt beverage" does not include beer or heavy beer.
354          (d) "Flavored malt beverage" is considered liquor for purposes of this title.
355          [(44)] (45) "Fraternal license" means a license issued in accordance with Chapter 5,
356     Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the
357     commission as a fraternal license.
358          [(45)] (46) "Full-service restaurant license" means a license issued in accordance with
359     Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-Service Restaurant License.
360          [(46)] (47) (a) "Furnish" means by any means to provide with, supply, or give an
361     individual an alcoholic product, by sale or otherwise.
362          (b) "Furnish" includes to:
363          (i) serve;
364          (ii) deliver; or
365          (iii) otherwise make available.
366          [(47)] (48) "Guest" means an individual who meets the requirements of Subsection

367     32B-6-407(9).
368          [(48)] (49) "Hard cider" means the same as that term is defined in 26 U.S.C. Sec. 5041.
369          [(49)] (50) "Health care practitioner" means:
370          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
371          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
372          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
373          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
374     Act;
375          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
376     Nurse Practice Act;
377          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
378     Practice Act;
379          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
380     Therapy Practice Act;
381          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
382          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
383     Professional Practice Act;
384          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
385          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
386     Practice Act;
387          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
388     Hygienist Practice Act; and
389          (m) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician
390     Assistant Act.
391          [(50)] (51) (a) "Heavy beer" means a product that:
392          (i) (A) contains more than 5% alcohol by volume; [and] or
393          (B) contains at least .5% of alcohol by volume and no more than 5% of alcohol by
394     volume or 4% by weight, and a propolyne glycol-, ethyl alcohol-, or ethanol-based flavoring
395     agent that contributes more than 10% of the overall alcohol content of the product; and
396          (ii) is obtained by fermentation, infusion, or decoction of:
397          (A) malt; or

398          (B) a malt substitute.
399          (b) "Heavy beer" may, if the heavy beer contains more than 5% alcohol by volume,
400     contain a propolyne glycol-, ethyl alcohol-, or ethanol-based flavoring agent that contributes to
401     the overall alcohol content of the heavy beer.
402          (c) "Heavy beer" does not include:
403          (i) a flavored malt beverage;
404          (ii) a product that contains alcohol derived from:
405          (A) except as provided in Ŝ→ [
Subsection (51)(a)(i)(B)] Subsections (51)(a)(i)(B) and
405a     (51)(b) ←Ŝ , spirituous liquor; or
406          (B) wine; or
407          (iii) a product that contains an additive masking or altering a physiological effect of
408     alcohol, including kratom, kava, cannabidiol, or natural or synthetic tetrahydrocannabinol.
409          [(b)] (d) "Heavy beer" is considered liquor for the purposes of this title.
410          [(51)] (52) "Hospitality amenity license" means a license issued in accordance with
411     Chapter 5, Retail License Act, and Chapter 6, Part 10, Hospitality Amenity License.
412          [(52)] (53) (a) "Hotel" means a commercial lodging establishment that:
413          (i) offers at least 40 rooms as temporary sleeping accommodations for compensation;
414          (ii) is capable of hosting conventions, conferences, and food and beverage functions
415     under a banquet contract; and
416          (iii) (A) has adequate kitchen or culinary facilities on the premises to provide complete
417     meals;
418          (B) has at least 1,000 square feet of function space consisting of meeting or dining
419     rooms that can be reserved for a banquet and can accommodate at least 75 individuals; or
420          (C) if the establishment is located in a small or unincorporated locality, has an
421     appropriate amount of function space consisting of meeting or dining rooms that can be
422     reserved for private use under a banquet contract, as determined by the commission.
423          (b) "Hotel" includes a commercial lodging establishment that:
424          (i) meets the requirements under Subsection [(52)(a);] (53)(a); and
425          (ii) has one or more privately owned dwelling units.
426          [(53)] (54) "Hotel license" means a license issued in accordance with Chapter 5, Retail
427     License Act, and Chapter 8b, Hotel License Act.
428          [(54)] (55) "Identification card" means an identification card issued under Title 53,

429     Chapter 3, Part 8, Identification Card Act.
430          [(55)] (56) "Industry representative" means an individual who is compensated by
431     salary, commission, or other means for representing and selling an alcoholic product of a
432     manufacturer, supplier, or importer of liquor.
433          [(56)] (57) "Industry representative sample" means liquor that is placed in the
434     possession of the department for testing, analysis, and sampling by a local industry
435     representative on the premises of the department to educate the local industry representative of
436     the quality and characteristics of the product.
437          [(57)] (58) "Interdicted person" means a person to whom the sale, offer for sale, or
438     furnishing of an alcoholic product is prohibited by:
439          (a) law; or
440          (b) court order.
441          [(58)] (59) "International airport" means an airport:
442          (a) with a United States Customs and Border Protection office on the premises of the
443     airport; and
444          (b) at which international flights may enter and depart.
445          [(59)] (60) "Intoxicated" means that a person:
446          (a) is significantly impaired as to the person's mental or physical functions as a result of
447     the use of:
448          (i) an alcoholic product;
449          (ii) a controlled substance;
450          (iii) a substance having the property of releasing toxic vapors; or
451          (iv) a combination of Subsections [(59)(a)(i)] (60)(a)(i) through (iii); and
452          (b) exhibits plain and easily observed outward manifestations of behavior or physical
453     signs produced by the overconsumption of an alcoholic product.
454          [(60)] (61) "Investigator" means an individual who is:
455          (a) a department compliance officer; or
456          (b) a nondepartment enforcement officer.
457          [(61)] (62) "License" means:
458          (a) a retail license;
459          (b) a sublicense;

460          (c) a license issued in accordance with Chapter 7, Part 4, Off-Premise Beer Retailer
461     State License;
462          (d) a license issued in accordance with Chapter 11, Manufacturing and Related
463     Licenses Act;
464          (e) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
465          (f) a license issued in accordance with Chapter 13, Beer Wholesaling License Act; or
466          (g) a license issued in accordance with Chapter 17, Liquor Transport License Act.
467          [(62)] (63) "Licensee" means a person who holds a license.
468          [(63)] (64) "Limited-service restaurant license" means a license issued in accordance
469     with Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-Service Restaurant License.
470          [(64)] (65) "Limousine" means a motor vehicle licensed by the state or a local
471     authority, other than a bus or taxicab:
472          (a) in which the driver and a passenger are separated by a partition, glass, or other
473     barrier;
474          (b) that is provided by a business entity to one or more individuals at a fixed charge in
475     accordance with the business entity's tariff; and
476          (c) to give the one or more individuals the exclusive use of the limousine and a driver
477     to travel to one or more specified destinations.
478          [(65)] (66) (a) (i) "Liquor" means a liquid that:
479          (A) is:
480          (I) alcohol;
481          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
482          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
483          (IV) other drink or drinkable liquid; and
484          (B) (I) contains at least .5% alcohol by volume; and
485          (II) is suitable to use for beverage purposes.
486          (ii) "Liquor" includes:
487          (A) heavy beer;
488          (B) wine; and
489          (C) a flavored malt beverage.
490          (b) "Liquor" does not include beer.

491          [(66)] (67) "Liquor Control Fund" means the enterprise fund created by Section
492     32B-2-301.
493          [(67)] (68) "Liquor transport license" means a license issued in accordance with
494     Chapter 17, Liquor Transport License Act.
495          [(68)] (69) "Liquor warehousing license" means a license that is issued:
496          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
497          (b) to a person, other than a licensed manufacturer, who engages in the importation for
498     storage, sale, or distribution of liquor regardless of amount.
499          [(69)] (70) "Local authority" means:
500          (a) for premises that are located in an unincorporated area of a county, the governing
501     body of a county;
502          (b) for premises that are located in an incorporated city, town, or metro township, the
503     governing body of the city, town, or metro township; or
504          (c) for premises that are located in a project area as defined in Section 63H-1-102 and
505     in a project area plan adopted by the Military Installation Development Authority under Title
506     63H, Chapter 1, Military Installation Development Authority Act, the Military Installation
507     Development Authority.
508          [(70)] (71) "Lounge or bar area" is as defined by rule made by the commission.
509          [(71)] (72) "Malt substitute" means:
510          (a) rice;
511          (b) grain;
512          (c) bran;
513          (d) glucose;
514          (e) sugar; or
515          (f) molasses.
516          [(72)] (73) "Manufacture" means to distill, brew, rectify, mix, compound, process,
517     ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to
518     others.
519          [(73)] (74) "Member" means an individual who, after paying regular dues, has full
520     privileges in an equity licensee or fraternal licensee.
521          [(74)] (75) (a) "Military installation" means a base, air field, camp, post, station, yard,

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          [(75)] (76) "Minibar" means an area of a hotel guest room where one or more alcoholic
532     products are kept and offered for self-service sale or consumption.
533          [(76)] (77) "Minor" means an individual under 21 years old.
534          [(77)] (78) "Nondepartment enforcement agency" means an agency that:
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          [(78)] (79) "Nondepartment enforcement officer" means an individual who is:
539          (a) a peace officer, examiner, or investigator; and
540          (b) employed by a nondepartment enforcement agency.
541          [(79)] (80) (a) "Off-premise beer retailer" means a beer retailer who is:
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          [(80)] (81) "Off-premise beer retailer state license" means a state license issued in
547     accordance with Chapter 7, Part 4, Off-Premise Beer Retailer State License.
548          [(81)] (82) "On-premise banquet license" means a license issued in accordance with
549     Chapter 5, Retail License Act, and Chapter 6, Part 6, On-Premise Banquet License.
550          [(82)] (83) "On-premise beer retailer" means a beer retailer who is:
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          [(83)] (84) "Opaque" means impenetrable to sight.
562          [(84)] (85) "Package agency" means a retail liquor location operated:
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          [(85)] (86) "Package agent" means a person who holds a package agency.
569          [(86)] (87) "Patron" means an individual to whom food, beverages, or services are sold,
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          (g) a hospitality guest, as defined in Section 32B-6-1002, under a hospitality amenity
578     license.
579          [(87)] (88) (a) "Performing arts facility" means a multi-use performance space that:
580          (i) is primarily used to present various types of performing arts, including dance,
581     music, and theater;
582          (ii) contains over 2,500 seats;
583          (iii) is owned and operated by a governmental entity; and

584          (iv) is located in a city of the first class.
585          (b) "Performing arts facility" does not include a space that is used to present sporting
586     events or sporting competitions.
587          [(88)] (89) "Permittee" means a person issued a permit under:
588          (a) Chapter 9, Event Permit Act; or
589          (b) Chapter 10, Special Use Permit Act.
590          [(89)] (90) "Person subject to administrative action" means:
591          (a) a licensee;
592          (b) a permittee;
593          (c) a manufacturer;
594          (d) a supplier;
595          (e) an importer;
596          (f) one of the following holding a certificate of approval:
597          (i) an out-of-state brewer;
598          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
599          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
600          (g) staff of:
601          (i) a person listed in Subsections [(89)(a] (90)(a) through (f); or
602          (ii) a package agent.
603          [(90)] (91) "Premises" means a building, enclosure, or room used in connection with
604     the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic
605     product, unless otherwise defined in this title or rules made by the commission.
606          [(91)] (92) "Prescription" means an order issued by a health care practitioner when:
607          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
608     to prescribe a controlled substance, other drug, or device for medicinal purposes;
609          (b) the order is made in the course of that health care practitioner's professional
610     practice; and
611          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
612          [(92)] (93) (a) "Primary spirituous liquor" means the main distilled spirit in a beverage.
613          (b) "Primary spirituous liquor" does not include a secondary flavoring ingredient.
614          [(93)] (94) "Principal license" means:

615          (a) a resort license;
616          (b) a hotel license; or
617          (c) an arena license.
618          [(94)] (95) (a) "Private event" means a specific social, business, or recreational event:
619          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
620     group; and
621          (ii) that is limited in attendance to people who are specifically designated and their
622     guests.
623          (b) "Private event" does not include an event to which the general public is invited,
624     whether for an admission fee or not.
625          [(95)] (96) "Privately sponsored event" means a specific social, business, or
626     recreational event:
627          (a) that is held in or on the premises of an on-premise banquet licensee; and
628          (b) to which entry is restricted by an admission fee.
629          [(96)] (97) (a) "Proof of age" means:
630          (i) an identification card;
631          (ii) an identification that:
632          (A) is substantially similar to an identification card;
633          (B) is issued in accordance with the laws of a state other than Utah in which the
634     identification is issued;
635          (C) includes date of birth; and
636          (D) has a picture affixed;
637          (iii) a valid driver license certificate that:
638          (A) includes date of birth;
639          (B) has a picture affixed; and
640          (C) is issued:
641          (I) under Title 53, Chapter 3, Uniform Driver License Act;
642          (II) in accordance with the laws of the state in which it is issued; or
643          (III) in accordance with federal law by the United States Department of State;
644          (iv) a military identification card that:
645          (A) includes date of birth; and

646          (B) has a picture affixed; or
647          (v) a valid passport.
648          (b) "Proof of age" does not include a driving privilege card issued in accordance with
649     Section 53-3-207.
650          [(97)] (98) "Provisions applicable to a sublicense" means:
651          (a) for a full-service restaurant sublicense, the provisions applicable to a full-service
652     restaurant license under Chapter 6, Part 2, Full-Service Restaurant License;
653          (b) for a limited-service restaurant sublicense, the provisions applicable to a
654     limited-service restaurant license under Chapter 6, Part 3, Limited-Service Restaurant License;
655          (c) for a bar establishment sublicense, the provisions applicable to a bar establishment
656     license under Chapter 6, Part 4, Bar Establishment License;
657          (d) for an on-premise banquet sublicense, the provisions applicable to an on-premise
658     banquet license under Chapter 6, Part 6, On-Premise Banquet License;
659          (e) for an on-premise beer retailer sublicense, the provisions applicable to an
660     on-premise beer retailer license under Chapter 6, Part 7, On-Premise Beer Retailer License;
661          (f) for a beer-only restaurant sublicense, the provisions applicable to a beer-only
662     restaurant license under Chapter 6, Part 9, Beer-Only Restaurant License;
663          (g) for a hospitality amenity license, the provisions applicable to a hospitality amenity
664     license under Chapter 6, Part 10, Hospitality Amenity License; and
665          (h) for a spa sublicense, the provisions applicable to the sublicense under Chapter 8d,
666     Part 2, Spa Sublicense.
667          [(98)] (99) (a) "Public building" means a building or permanent structure that is:
668          (i) owned or leased by:
669          (A) the state; or
670          (B) a local government entity; and
671          (ii) used for:
672          (A) public education;
673          (B) transacting public business; or
674          (C) regularly conducting government activities.
675          (b) "Public building" does not include a building owned by the state or a local
676     government entity when the building is used by a person, in whole or in part, for a proprietary

677     function.
678          [(99)] (100) "Public conveyance" means a conveyance that the public or a portion of
679     the public has access to and a right to use for transportation, including an airline, railroad, bus,
680     boat, or other public conveyance.
681          [(100)] (101) "Reception center" means a business that:
682          (a) operates facilities that are at least 5,000 square feet; and
683          (b) has as its primary purpose the leasing of the facilities described in Subsection
684     [(100)(a)] (101)(a) to a third party for the third party's event.
685          [(101)] (102) "Reception center license" means a license issued in accordance with
686     Chapter 5, Retail License Act, and Chapter 6, Part 8, Reception Center License.
687          [(102)] (103) (a) "Record" means information that is:
688          (i) inscribed on a tangible medium; or
689          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
690          (b) "Record" includes:
691          (i) a book;
692          (ii) a book of account;
693          (iii) a paper;
694          (iv) a contract;
695          (v) an agreement;
696          (vi) a document; or
697          (vii) a recording in any medium.
698          [(103)] (104) "Residence" means a person's principal place of abode within Utah.
699          [(104)] (105) "Resident," in relation to a resort, means the same as that term is defined
700     in Section 32B-8-102.
701          [(105)] (106) "Resort" means the same as that term is defined in Section 32B-8-102.
702          [(106)] (107) "Resort facility" is as defined by the commission by rule.
703          [(107)] (108) "Resort license" means a license issued in accordance with Chapter 5,
704     Retail License Act, and Chapter 8, Resort License Act.
705          [(108)] (109) "Responsible alcohol service plan" means a written set of policies and
706     procedures that outlines measures to prevent employees from:
707          (a) over-serving alcoholic beverages to customers;

708          (b) serving alcoholic beverages to customers who are actually, apparently, or obviously
709     intoxicated; and
710          (c) serving alcoholic beverages to minors.
711          [(109)] (110) "Restaurant" means a business location:
712          (a) at which a variety of foods are prepared;
713          (b) at which complete meals are served; and
714          (c) that is engaged primarily in serving meals.
715          [(110)] (111) "Restaurant license" means one of the following licenses issued under
716     this title:
717          (a) a full-service restaurant license;
718          (b) a limited-service restaurant license; or
719          (c) a beer-only restaurant license.
720          (112) "Restaurant venue" means a room within a restaurant that:
721          (a) is located on the licensed premises of a restaurant licensee;
722          (b) is separated from the area within the restaurant for a patron's consumption of food
723     by a permanent, opaque, floor-to-ceiling wall such that the inside of the room is not visible to a
724     patron in the area within the restaurant for a patron's consumption of food; and
725          (c) (i) has at least 1,000 square feet that:
726          (A) may be reserved for a banquet; and
727          (B) accommodates at least 75 individuals; or
728          (ii) if the restaurant is located in a small or unincorporated locality, has an appropriate
729     amount of space, as determined by the commission, that may be reserved for a banquet.
730          [(111)] (113) "Retail license" means one of the following licenses issued under this
731     title:
732          (a) a full-service restaurant license;
733          (b) a master full-service restaurant license;
734          (c) a limited-service restaurant license;
735          (d) a master limited-service restaurant license;
736          (e) a bar establishment license;
737          (f) an airport lounge license;
738          (g) an on-premise banquet license;

739          (h) an on-premise beer license;
740          (i) a reception center license;
741          (j) a beer-only restaurant license;
742          (k) a hospitality amenity license;
743          (l) a resort license;
744          (m) a hotel license; or
745          (n) an arena license.
746          [(112)] (114) "Room service" means furnishing an alcoholic product to a person in a
747     guest room or privately owned dwelling unit of a:
748          (a) hotel; or
749          (b) resort facility.
750          [(113)] (115) (a) "School" means a building in which any part is used for more than
751     three hours each weekday during a school year as a public or private:
752          (i) elementary school;
753          (ii) secondary school; or
754          (iii) kindergarten.
755          (b) "School" does not include:
756          (i) a nursery school;
757          (ii) a day care center;
758          (iii) a trade and technical school;
759          (iv) a preschool; or
760          (v) a home school.
761          [(114)] (116) "Secondary flavoring ingredient" means any spirituous liquor added to a
762     beverage for additional flavoring that is different in type, flavor, or brand from the primary
763     spirituous liquor in the beverage.
764          [(115)] (117) "Sell" or "offer for sale" means a transaction, exchange, or barter
765     whereby, for consideration, an alcoholic product is either directly or indirectly transferred,
766     solicited, ordered, delivered for value, or by a means or under a pretext is promised or
767     obtained, whether done by a person as a principal, proprietor, or as staff, unless otherwise
768     defined in this title or the rules made by the commission.
769          [(116)] (118) "Serve" means to place an alcoholic product before an individual.

770          [(117)] (119) "Sexually oriented entertainer" means a person who while in a state of
771     seminudity appears at or performs:
772          (a) for the entertainment of one or more patrons;
773          (b) on the premises of:
774          (i) a bar licensee; or
775          (ii) a tavern;
776          (c) on behalf of or at the request of the licensee described in Subsection [(117)(b)]
777     (119)(b);
778          (d) on a contractual or voluntary basis; and
779          (e) whether or not the person is designated as:
780          (i) an employee;
781          (ii) an independent contractor;
782          (iii) an agent of the licensee; or
783          (iv) a different type of classification.
784          [(118)] (120) "Shared seating area" means the licensed premises of two or more
785     restaurant licensees that the restaurant licensees share as an area for alcoholic beverage
786     consumption in accordance with Subsection 32B-5-207(3).
787          [(119)] (121) "Single event permit" means a permit issued in accordance with Chapter
788     9, Part 3, Single Event Permit.
789          [(120)] (122) "Small brewer" means a brewer who manufactures less than 60,000
790     barrels of beer, heavy beer, and flavored malt beverage per year, as the department calculates
791     by:
792          (a) if the brewer is part of a controlled group of manufacturers, including the combined
793     volume totals of production for all breweries that constitute the controlled group of
794     manufacturers; and
795          (b) excluding beer, heavy beer, or flavored malt beverage the brewer:
796          (i) manufactures that is unfit for consumption as, or in, a beverage, as the commission
797     determines by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
798     Rulemaking Act; and
799          (ii) does not sell for consumption as, or in, a beverage.
800          [(121)] (123) "Small or unincorporated locality" means:

801          (a) a city of the third, fourth, or fifth class, as classified under Section 10-2-301;
802          (b) a town, as classified under Section 10-2-301; or
803          (c) an unincorporated area in a county of the third, fourth, or fifth class, as classified
804     under Section 17-50-501.
805          [(122)] (124) "Spa sublicense" means a sublicense:
806          (a) to a resort license or hotel license; and
807          (b) that the commission issues in accordance with Chapter 8d, Part 2, Spa Sublicense.
808          [(123)] (125) "Special use permit" means a permit issued in accordance with Chapter
809     10, Special Use Permit Act.
810          [(124)] (126) (a) "Spirituous liquor" means liquor that is distilled.
811          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
812     27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
813          [(125)] (127) "Sports center" is as defined by the commission by rule.
814          [(126)] (128) (a) "Staff" means an individual who engages in activity governed by this
815     title:
816          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
817     holder;
818          (ii) at the request of the business, including a package agent, licensee, permittee, or
819     certificate holder; or
820          (iii) under the authority of the business, including a package agent, licensee, permittee,
821     or certificate holder.
822          (b) "Staff" includes:
823          (i) an officer;
824          (ii) a director;
825          (iii) an employee;
826          (iv) personnel management;
827          (v) an agent of the licensee, including a managing agent;
828          (vi) an operator; or
829          (vii) a representative.
830          [(127)] (129) "State of nudity" means:
831          (a) the appearance of:

832          (i) the nipple or areola of a female human breast;
833          (ii) a human genital;
834          (iii) a human pubic area; or
835          (iv) a human anus; or
836          (b) a state of dress that fails to opaquely cover:
837          (i) the nipple or areola of a female human breast;
838          (ii) a human genital;
839          (iii) a human pubic area; or
840          (iv) a human anus.
841          [(128)] (130) "State of seminudity" means a state of dress in which opaque clothing
842     covers no more than:
843          (a) the nipple and areola of the female human breast in a shape and color other than the
844     natural shape and color of the nipple and areola; and
845          (b) the human genitals, pubic area, and anus:
846          (i) with no less than the following at its widest point:
847          (A) four inches coverage width in the front of the human body; and
848          (B) five inches coverage width in the back of the human body; and
849          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
850          [(129)] (131) (a) "State store" means a facility for the sale of packaged liquor:
851          (i) located on premises owned or leased by the state; and
852          (ii) operated by a state employee.
853          (b) "State store" does not include:
854          (i) a package agency;
855          (ii) a licensee; or
856          (iii) a permittee.
857          [(130)] (132) (a) "Storage area" means an area on licensed premises where the licensee
858     stores an alcoholic product.
859          (b) "Store" means to place or maintain in a location an alcoholic product.
860          [(131)] (133) "Sublicense" means:
861          (a) any of the following licenses issued as a subordinate license to, and contingent on
862     the issuance of, a principal license:

863          (i) a full-service restaurant license;
864          (ii) a limited-service restaurant license;
865          (iii) a bar establishment license;
866          (iv) an on-premise banquet license;
867          (v) an on-premise beer retailer license;
868          (vi) a beer-only restaurant license; or
869          (vii) a hospitality amenity license; or
870          (b) a spa sublicense.
871          [(132)] (134) "Supplier" means a person who sells an alcoholic product to the
872     department.
873          [(133)] (135) "Tavern" means an on-premise beer retailer who is:
874          (a) issued a license by the commission in accordance with Chapter 5, Retail License
875     Act, and Chapter 6, Part 7, On-Premise Beer Retailer License; and
876          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
877     On-Premise Beer Retailer License.
878          [(134)] (136) "Temporary beer event permit" means a permit issued in accordance with
879     Chapter 9, Part 4, Temporary Beer Event Permit.
880          [(135)] (137) "Temporary domicile" means the principal place of abode within Utah of
881     a person who does not have a present intention to continue residency within Utah permanently
882     or indefinitely.
883          [(136)] (138) "Translucent" means a substance that allows light to pass through, but
884     does not allow an object or person to be seen through the substance.
885          [(137)] (139) "Unsaleable liquor merchandise" means a container that:
886          (a) is unsaleable because the container is:
887          (i) unlabeled;
888          (ii) leaky;
889          (iii) damaged;
890          (iv) difficult to open; or
891          (v) partly filled;
892          (b) (i) has faded labels or defective caps or corks;
893          (ii) has contents that are:

894          (A) cloudy;
895          (B) spoiled; or
896          (C) chemically determined to be impure; or
897          (iii) contains:
898          (A) sediment; or
899          (B) a foreign substance; or
900          (c) is otherwise considered by the department as unfit for sale.
901          [(138)] (140) (a) "Wine" means an alcoholic product obtained by the fermentation of
902     the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or
903     not another ingredient is added.
904          (b) "Wine" includes:
905          (i) an alcoholic beverage defined as wine under 27 U.S.C. Sec. 211 and 27 C.F.R. Sec.
906     4.10; and
907          (ii) hard cider.
908          (c) "Wine" is considered liquor for purposes of this title, except as otherwise provided
909     in this title.
910          [(139)] (141) "Winery manufacturing license" means a license issued in accordance
911     with Chapter 11, Part 3, Winery Manufacturing License.
912          Section 2. Section 32B-1-202 is amended to read:
913          32B-1-202. Proximity to community location.
914          (1) As used in this section:
915          (a) (i) "Outlet" means:
916          (A) a state store;
917          (B) a package agency; or
918          (C) a retail licensee.
919          (ii) "Outlet" does not include:
920          (A) an airport lounge licensee; or
921          (B) a restaurant.
922          (b) "Restaurant" means:
923          (i) a full-service restaurant licensee;
924          (ii) a limited-service restaurant licensee; [or]

925          (iii) a beer-only restaurant licensee[.]; or
926          (iv) a restaurant venue on-premise banquet licensee.
927          (2) (a) Except as otherwise provided in this section or Section 32B-1-202.1, the
928     commission may not issue a license for an outlet if, on the date the commission takes final
929     action to approve or deny the application, there is a community location:
930          (i) within 600 feet of the proposed outlet, as measured from the nearest patron
931     entrance of the proposed outlet by following the shortest route of ordinary pedestrian travel to
932     the property boundary of the community location; or
933          (ii) within 200 feet of the proposed outlet, measured in a straight line from the nearest
934     patron entrance of the proposed outlet to the nearest property boundary of the community
935     location.
936          (b) Except as otherwise provided in this section or Section 32B-1-202.1, the
937     commission may not issue a license for a restaurant if, on the date the commission takes final
938     action to approve or deny the application, there is a community location:
939          (i) within 300 feet of the proposed restaurant, as measured from the nearest patron
940     entrance of the proposed restaurant by following the shortest route of ordinary pedestrian travel
941     to the property boundary of the community location; or
942          (ii) within 200 feet of the proposed restaurant, measured in a straight line from the
943     nearest patron entrance of the proposed restaurant to the nearest property boundary of the
944     community location.
945          (3) (a) For an outlet or a restaurant that holds a license on May 9, 2017, and operates
946     under a previously approved variance to one or more proximity requirements in effect before
947     May 9, 2017, subject to the other provisions of this title, that outlet or restaurant, or another
948     outlet or restaurant with the same type of license as that outlet or restaurant, may operate under
949     the previously approved variance regardless of whether:
950          (i) the outlet or restaurant changes ownership;
951          (ii) the property on which the outlet or restaurant is located changes ownership; or
952          (iii) there is a lapse in the use of the property as an outlet or a restaurant with the same
953     type of license, unless during the lapse, the property is used for a different purpose.
954          (b) An outlet or a restaurant that has continuously operated at a location since before
955     January 1, 2007, is considered to have a previously approved variance.

956          (4) An outlet or restaurant that holds a license on May 12, 2020, and operates in
957     accordance with the proximity requirements in effect at the time the commission issued the
958     license or operates under a previously approved variance described in Subsection (3), subject to
959     the other provisions of this title, that outlet or restaurant or an outlet or a restaurant with the
960     same type of license as that outlet or restaurant may operate at the premises regardless of
961     whether:
962          (a) the outlet or restaurant changes ownership;
963          (b) the property on which the outlet or restaurant is located changes ownership; or
964          (c) there is a lapse of one year or less in the use of the property as an outlet or a
965     restaurant with the same type of license, unless during the lapse the property is used for a
966     different purpose.
967          (5) (a) If, after an outlet or a restaurant obtains a license under this title, a person
968     establishes a community location on a property that puts the outlet or restaurant in violation of
969     the proximity requirements in effect at the time the license is issued or a previously approved
970     variance described in Subsection (3), subject to the other provisions of this title, that outlet or
971     restaurant, or an outlet or a restaurant with the same type of license as that outlet or restaurant,
972     may operate at the premises regardless of whether:
973          (i) the outlet or restaurant changes ownership;
974          (ii) the property on which the outlet or restaurant is located changes ownership; or
975          (iii) there is a lapse in the use of the property as an outlet or a restaurant with the same
976     type of license, unless during the lapse the property is used for a different purpose.
977          (b) The provisions of this Subsection (5) apply regardless of when the outlet's or
978     restaurant's license is issued.
979          (6) Nothing in this section prevents the commission from considering the proximity of
980     an educational, religious, and recreational facility, or any other relevant factor in reaching a
981     decision on a proposed location of an outlet.
982          Section 3. Section 32B-1-202.1 is amended to read:
983          32B-1-202.1. Proximity for certain hotel and arena licensees.
984          (1) As used in this section, "hotel" means the same as that term is defined in Section
985     32B-8b-102.
986          (2) The commission may issue a hotel license for a proposed location that does not

987     meet the proximity requirements under Section 32B-1-202, if:
988          (a) the proposed hotel is:
989          (i) located in a city classified as a city of the first class under Section 10-2-301;
990          (ii) within [600] 650 feet of two community locations, as measured from the nearest
991     patron entrance of the proposed hotel by following the shortest route of ordinary pedestrian
992     travel to the property boundary of each community location;
993          (iii) not within 300 feet of a community location, as measured from the nearest patron
994     entrance of the proposed hotel by following the shortest route of ordinary pedestrian travel to
995     the property boundary of the community location; and
996          (iv) not within 200 feet of a community location, as measured in a straight line from
997     the nearest patron entrance of the proposed hotel to the nearest property boundary of the
998     community location;
999          (b) the proposed sublicensed premises of a bar establishment sublicense under the hotel
1000     license:
1001          (i) is on the second or higher floor of a hotel;
1002          (ii) is not accessible at street level; and
1003          (iii) is only accessible to an individual who passes through another area of the hotel in
1004     which the bar establishment sublicense is located; and
1005          (c) the applicant meets all other criteria under this title for the hotel license.
1006          (3) The commission may issue authority to operate as a package agency to a hotel
1007     licensee who meets the requirements described in Subsection (2).
1008          (4) (a) The commission may issue an arena license for a proposed location that does
1009     not meet the proximity requirements described in Section 32B-1-202, if, on the day before the
1010     day on which the commission issues the license, each proposed sublicense of the arena license:
1011          (i) operates as an outlet or restaurant; and
1012          (ii) (A) operates on the proposed sublicense premises under a variance to one or more
1013     proximity requirements in accordance with Section 32B-1-202; or
1014          (B) has been in operation on the proposed sublicense premises for at least 10 years.
1015          (b) After the commission issues an arena license in accordance with Subsection (4)(a),
1016     the commission may not issue the arena licensee an additional sublicense.
1017          Section 4. Section 32B-1-304 is amended to read:

1018          32B-1-304. Qualifications for a package agency, license, or permit -- Minors.
1019          (1) (a) Except as provided in Subsection (7), the commission may not issue a package
1020     agency, license, or permit to a person who has been convicted of:
1021          (i) within seven years before the day on which the commission issues the package
1022     agency, license, or permit, a felony under a federal law or state law;
1023          (ii) within four years before the day on which the commission issues the package
1024     agency, license, or permit:
1025          (A) a violation of a federal law, state law, or local ordinance concerning the sale, offer
1026     for sale, warehousing, manufacture, distribution, transportation, or adulteration of an alcoholic
1027     product; or
1028          (B) a crime involving moral turpitude; or
1029          (iii) on two or more occasions within the five years before the day on which the
1030     package agency, license, or permit is issued, driving under the influence of alcohol, drugs, or
1031     the combined influence of alcohol and drugs.
1032          (b) If the person is a partnership, corporation, or limited liability company, the
1033     proscription under Subsection (1)(a) applies if any of the following has been convicted of an
1034     offense described in Subsection (1)(a):
1035          (i) a partner;
1036          (ii) a managing agent;
1037          (iii) a manager;
1038          (iv) an officer;
1039          (v) a director;
1040          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
1041     the corporation; or
1042          (vii) a member who owns at least 20% of the limited liability company.
1043          (c) Except as provided in Subsection (7), the proscription under Subsection (1)(a)
1044     applies if a person who is employed to act in a supervisory or managerial capacity for a
1045     package agency, licensee, or permittee has been convicted of an offense described in
1046     Subsection (1)(a).
1047          (2) Except as described in Section 32B-8-501, the commission may immediately
1048     suspend or revoke a package agency, license, or permit, and terminate a package agency

1049     agreement, if a person described in Subsection (1):
1050          (a) after the day on which the package agency, license, or permit is issued, is found to
1051     have been convicted of an offense described in Subsection (1)(a) before the package agency,
1052     license, or permit is issued; or
1053          (b) on or after the day on which the package agency, license, or permit is issued:
1054          (i) is convicted of an offense described in Subsection (1)(a)(i) or (ii); or
1055          (ii) (A) is convicted of driving under the influence of alcohol, drugs, or the combined
1056     influence of alcohol and drugs; and
1057          (B) was convicted of driving under the influence of alcohol, drugs, or the combined
1058     influence of alcohol and drugs within five years before the day on which the person is
1059     convicted of the offense described in Subsection (2)(b)(ii)(A).
1060          (3) Except as described in Section 32B-8-501, the director may take emergency action
1061     by immediately suspending the operation of the package agency, licensee, or permittee for the
1062     period during which a criminal matter is being adjudicated if a person described in Subsection
1063     (1):
1064          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i) or (ii); or
1065          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
1066     drugs, or the combined influence of alcohol and drugs; and
1067          (ii) was convicted of driving under the influence of alcohol, drugs, or the combined
1068     influence of alcohol and drugs within five years before the day on which the person is arrested
1069     on a charge described in Subsection (3)(b)(i).
1070          (4) (a) (i) The commission may not issue a package agency, license, or permit to a
1071     person who has had any type of agency, license, or permit issued under this title revoked within
1072     the last three years.
1073          (ii) The commission may not issue a package agency, license, or permit to a
1074     partnership, corporation, or limited liability company if a partner, managing agent, manager,
1075     officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
1076     of the corporation, or member who owns at least 20% of the limited liability company is or
1077     was:
1078          (A) a partner or managing agent of a partnership that had any type of agency, license,
1079     or permit issued under this title revoked within the last three years;

1080          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
1081     of the total issued and outstanding stock of any corporation that had any type of agency,
1082     license, or permit issued under this title revoked within the last three years; or
1083          (C) a manager or member who owns or owned at least 20% of a limited liability
1084     company that had any type of agency, license, or permit issued under this title revoked within
1085     the last three years.
1086          (b) The commission may not issue a package agency, [licence] license, or permit to a
1087     partnership, corporation, or limited liability company if any of the following had any type of
1088     agency, license, or permit issued under this title revoked while acting in that person's individual
1089     capacity within the last three years:
1090          (i) a partner or managing agent of a partnership;
1091          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
1092     total issued and outstanding stock of a corporation; or
1093          (iii) a manager or member who owns at least 20% of a limited liability company.
1094          (c) The commission may not issue a package agency, license, or permit to a person
1095     acting in an individual capacity if that person was:
1096          (i) a partner or managing agent of a partnership that had any type of agency, license, or
1097     permit issued under this title revoked within the last three years;
1098          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
1099     total issued and outstanding stock of a corporation that had any type of agency, license, or
1100     permit issued under this title revoked within the last three years; or
1101          (iii) a manager or member who owned at least 20% of the limited liability company
1102     that had any type of agency, license, or permit issued under this title revoked within the last
1103     three years.
1104          (5) (a) The commission may not issue a package agency, license, or permit to a minor.
1105          (b) The commission may not issue a package agency, license, or permit to a
1106     partnership, corporation, or limited liability company if any of the following is a minor:
1107          (i) a partner or managing agent of the partnership;
1108          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
1109     total issued and outstanding stock of the corporation; or
1110          (iii) a manager or member who owns at least 20% of the limited liability company.

1111          (c) For purposes of Subsection (5)(b), the commission may not consider a minor's
1112     position with or ownership interest in an entity that has an ownership interest in the entity that
1113     is applying for the package agency, license, or permit unless the minor would exercise direct
1114     decision making control over the package agency, license, or permit.
1115          (6) Except as described in Section 32B-8-501, if a package agent, licensee, or permittee
1116     no longer possesses the qualifications required by this title for obtaining a package agency,
1117     license, or permit, the commission may terminate the package agency agreement, or revoke the
1118     license or permit.
1119          (7) (a) If the licensee is a resort licensee:
1120          (i) 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          (ii) 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          (b) If the permittee is a public service permittee under Chapter 10, Special Use Permit
1125     Act:
1126          (i) Subsection (1)(a) only applies if an individual listed in Subsection (1)(b) engages in
1127     the management of the airline, railroad, or other public conveyance, as the commission defines
1128     in rule; and
1129          (ii) Subsection (1)(c) only applies to an individual employed to act in a supervisory or
1130     managerial capacity for the public service permittee.
1131          Section 5. Section 32B-1-603 is amended to read:
1132          32B-1-603. Power of the commission and department to classify flavored malt
1133     beverages.
1134          (1) The commission and department shall regulate a flavored malt beverage as liquor.
1135          (2) (a) The department shall make available to the public on the Internet a list of the
1136     flavored malt beverages authorized to be sold in this state as liquor.
1137          (b) The list described in Subsection (2)(a) shall be updated at least quarterly.
1138          (3) (a) A manufacturer shall file, under penalty of perjury, a report with the department
1139     listing each flavored malt beverage manufactured by the manufacturer that the manufacturer
1140     wants to distribute in this state subject to the manufacturer holding:
1141          (i) a brewery manufacturing license issued in accordance with Chapter 11, Part 5,

1142     Brewery Manufacturing License; or
1143          (ii) a certificate of approval.
1144          (b) A manufacturer may not distribute or sell in this state a flavored malt beverage if
1145     the manufacturer does not list the flavored malt beverage in a filing with the department in
1146     accordance with this Subsection (3) before distributing or selling the flavored malt beverage.
1147          (4) The department may require a manufacturer of a flavored malt beverage to provide
1148     the department with a copy of the following filed with the federal Alcohol and Tobacco Tax
1149     and Trade Bureau, pursuant to 27 C.F.R. Sec. 25.55:
1150          (a) a statement of process; or
1151          (b) a formula.
1152          (5) (a) A manufacturer of an alcoholic product that the department is classifying or
1153     proposes to classify as a flavored malt beverage may submit evidence to the department that the
1154     manufacturer's alcoholic product should not be treated as [liquor] a flavored malt beverage
1155     under this section because [no formula for the alcoholic product is required to be filed for a
1156     reason described in:] the alcoholic product is beer or heavy beer.
1157          [(i) Subsection 32B-1-102(43)(a)(ii), as shown by a determination issued by the federal
1158     Alcohol and Tobacco Tax and Trade Bureau; or]
1159          [(ii) Subsection 32B-1-102(43)(a)(iii).]
1160          (b) The department shall review the evidence submitted by the manufacturer under this
1161     Subsection (5).
1162          (c) The department shall make available to the public on the Internet a list of the
1163     alcoholic products authorized under this Subsection (5) to be sold as beer in this state.
1164          (d) A decision of the department under this Subsection (5) may be appealed to the
1165     commission.
1166          Section 6. Section 32B-1-603.5 is enacted to read:
1167          32B-1-603.5. Requirements for beer flavorings -- Procedure for approval.
1168          (1) To obtain approval for use of a propylene glycol-, ethyl alcohol-, or ethanol-based
1169     flavoring agent in a beer as described in Subsection 32B-1-102(11)(b)(iii), the manufacturer of
1170     the beer shall submit an application to the department for approval.
1171          (2) The application shall require:
1172          (a) a copy of:

1173          (i) the statement of process and formula filed with the federal Alcohol and Tobacco
1174     Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 for the beer; and
1175          (ii) the formula approval from the federal Alcohol and Tobacco Tax and Trade Bureau
1176     for the beer;
1177          (b) a complete list of each propylene glycol-, ethyl alcohol-, or ethanol-based flavoring
1178     agent in the beer;
1179          (c) a description of the total amount of alcohol each propylene glycol-, ethyl alcohol-,
1180     or ethanol-based flavoring agent contributes to the beer; and
1181          (d) other information required by the department to determine whether the beer meets
1182     the requirements described in Subsection 32B-1-102(11)(b)(iii).
1183          (3) The department may assess a fee established under Section 63J-1-504 for reviewing
1184     an application for approval under this section.
1185          (4) A manufacturer shall obtain the department's approval for a revision to previously
1186     approved flavoring agents used in a beer before the beer may be distributed or sold in this state.
1187          (5) (a) The department may revoke a previous approval under this section upon a
1188     finding that the beer is not in compliance with this title or rules of the commission.
1189          (b) The department shall notify the manufacturer that applied for an approval under
1190     this section at least 30 business days before the day on which the approval is revoked.
1191          (c) Within 20 business days after the day on which a manufacturer receives the notice
1192     under Subsection (5)(b), the manufacturer may present a written argument or evidence to the
1193     department regarding why the revocation should not occur.
1194          (6) (a) A manufacturer that applies for approval under this section may appeal a denial
1195     or revocation of the approval to the commission.
1196          (b) During the period in which a manufacturer appeals a denial or revocation to the
1197     commission under Subsection (6)(a), the denial or revocation remains in force.
1198          Section 7. Section 32B-1-703 is amended to read:
1199          32B-1-703. Alcohol training and education for off-premise consumption.
1200          (1) (a) A local authority that issues an off-premise beer retailer license to a business to
1201     sell beer at retail for off-premise consumption shall require the following to have a valid record
1202     that the individual completed an alcohol training and education seminar in the time periods
1203     required by Subsection (1)(b):

1204          (i) an off-premise retail manager; or
1205          (ii) off-premise retail staff.
1206          (b) If an individual on the date the individual becomes staff to an off-premise beer
1207     retailer does not have a valid record that the individual has completed an alcohol training and
1208     education seminar for purposes of this part, the individual shall complete an alcohol training
1209     and education seminar [within 30 days of] in accordance with Section 62A-15-401 before the
1210     day on which the individual [becomes] begins work as staff of an off-premise beer retailer.
1211          (c) An off-premise beer retailer may not permit an individual who is not in compliance
1212     with Subsection (1)(b) to:
1213          (i) directly supervise the sale of beer to a customer for consumption off the premises of
1214     the off-premise beer retailer; or
1215          (ii) sell beer to a customer for consumption off the premises of the off-premise beer
1216     retailer.
1217          [(c) Section 62A-15-401 governs the validity of a record that an individual has
1218     completed an alcohol training and education seminar required by this part.]
1219          (2) A licensee that violates this section is subject to Section 32B-1-702.
1220          [(2) In accordance with Section 32B-1-702, a local authority may immediately suspend
1221     the license of an off-premise beer retailer that allows an individual to work as an off-premise
1222     retail manager without having a valid record that the individual completed an alcohol training
1223     and education seminar in accordance with Subsection (1).]
1224          Section 8. Section 32B-1-705 is amended to read:
1225          32B-1-705. Tracking certain enforcement actions.
1226          (1) For each violation of a provision of this title involving the sale of an alcoholic
1227     product to a minor that staff of a retail licensee or off-premise beer retailer commits, the
1228     commission shall:
1229          (a) maintain a record of the violation until the record is expunged in accordance with
1230     Subsection (3);
1231          (b) include in the record described in Subsection (1)(a):
1232          (i) the name of the individual who committed the violation;
1233          (ii) the name of the retail licensee or off-premise beer retailer; and
1234          (iii) the date of the adjudication of the violation; and

1235          (c) provide the information described in Subsection (1)(b) to the Department of Public
1236     Safety within 30 days after the day on which the violation is adjudicated.
1237          (2) (a) The Department of Public Safety shall develop and operate a system to collect,
1238     analyze, maintain, track, and disseminate the information that the Department of Public Safety
1239     receives in accordance with Subsection (1).
1240          (b) The Department of Public Safety shall make the system described in Subsection
1241     (2)(a) available to:
1242          (i) assist the commission in assessing penalties under this title; and
1243          (ii) inform a retail licensee or off-premise beer retailer of an individual who has a
1244     violation history in the system.
1245          (3) The commission and the Department of Public Safety shall expunge each record in
1246     the system described in Subsection (2) that relates to an individual if the individual does not
1247     violate a provision of this title related to the sale of an alcoholic product to a minor for a period
1248     of 36 consecutive months from the day on which the individual's last violation related to the
1249     sale of an alcoholic product to a minor was adjudicated.
1250          Section 9. Section 32B-2-202 is amended to read:
1251          32B-2-202. Powers and duties of the commission.
1252          (1) The commission shall:
1253          (a) consistent with the policy established by the Legislature by statute, act as a general
1254     policymaking body on the subject of alcoholic product control;
1255          (b) adopt and issue policies, rules, and procedures;
1256          (c) set policy by written rules that establish criteria and procedures for:
1257          (i) issuing, denying, not renewing, suspending, or revoking a package agency, license,
1258     permit, or certificate of approval; and
1259          (ii) determining the location of a state store, package agency, or retail licensee;
1260          (d) decide within the limits, and under the conditions imposed by this title, the number
1261     and location of state stores, package agencies, and retail licensees in the state;
1262          (e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses,
1263     sublicenses, permits, or certificates of approval for the purchase, storage, sale, offer for sale,
1264     furnishing, consumption, manufacture, and distribution of an alcoholic product:
1265          (i) a package agency;

1266          (ii) a full-service restaurant license;
1267          (iii) a master full-service restaurant license;
1268          (iv) a limited-service restaurant license;
1269          (v) a master limited-service restaurant license;
1270          (vi) a bar establishment license;
1271          (vii) an airport lounge license;
1272          (viii) an on-premise banquet license;
1273          (ix) a resort license, which includes four or more sublicenses;
1274          (x) an on-premise beer retailer license;
1275          (xi) a reception center license;
1276          (xii) a beer-only restaurant license;
1277          (xiii) a hotel license, which includes three or more sublicenses;
1278          (xiv) an arena license, which includes three or more sublicenses;
1279          (xv) a hospitality amenity license;
1280          (xvi) subject to Subsection (5), a single event permit;
1281          (xvii) subject to Subsection (5), a temporary beer event permit;
1282          (xviii) a special use permit;
1283          (xix) a manufacturing license;
1284          (xx) a liquor warehousing license;
1285          (xxi) a beer wholesaling license;
1286          (xxii) a liquor transport license;
1287          (xxiii) an off-premise beer retailer state license;
1288          (xxiv) a master off-premise beer retailer state license;
1289          (xxv) one of the following that holds a certificate of approval:
1290          (A) an out-of-state brewer;
1291          (B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and
1292          (C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; and
1293          (xxvi) a spa sublicense;
1294          (f) issue, deny, suspend, or revoke the following conditional licenses:
1295          (i) a conditional retail license as defined in Section 32B-5-205; and
1296          (ii) a conditional off-premise beer retailer state license as defined in Section

1297     32B-7-406;
1298          (g) prescribe the duties of the department in assisting the commission in issuing a
1299     package agency, license, permit, or certificate of approval under this title;
1300          (h) to the extent a fee is not specified in this title, establish a fee allowed under this title
1301     in accordance with Section 63J-1-504;
1302          (i) fix prices at which liquor is sold that are the same at all state stores, package
1303     agencies, and retail licensees;
1304          (j) issue and distribute price lists showing the price to be paid by a purchaser for each
1305     class, variety, or brand of liquor kept for sale by the department;
1306          (k) (i) require the director to follow sound management principles; and
1307          (ii) require periodic reporting from the director to ensure that:
1308          (A) sound management principles are being followed; and
1309          (B) policies established by the commission are being observed;
1310          (l) (i) receive, consider, and act in a timely manner upon the reports, recommendations,
1311     and matters submitted by the director to the commission; and
1312          (ii) do the things necessary to support the department in properly performing the
1313     department's duties;
1314          (m) obtain temporarily and for special purposes the services of an expert or person
1315     engaged in the practice of a profession, or a person who possesses a needed skill if:
1316          (i) considered expedient; and
1317          (ii) approved by the governor;
1318          (n) prescribe by rule the conduct, management, and equipment of premises upon which
1319     an alcoholic product may be stored, sold, offered for sale, furnished, or consumed;
1320          (o) make rules governing the credit terms of beer sales within the state to retail
1321     licensees; and
1322          (p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take
1323     disciplinary action against a person subject to administrative action.
1324          (2) Consistent with the policy established by the Legislature by statute, the power of
1325     the commission to do the following is plenary, except as otherwise provided by this title, and
1326     not subject to review:
1327          (a) establish a state store;

1328          (b) issue authority to act as a package agent or operate a package agency; and
1329          (c) issue, deny, or deem forfeit a license, permit, or certificate of approval.
1330          (3) (a) Subject to [Subsection] Subsections (3)(b) and (c), the commission may[:]
1331          [(i)] make rules permitting and establishing the parameters of a late license renewal[;
1332     and].
1333          [(ii) establish a fee, in accordance with Section 63J-1-504, for a late license renewal.]
1334          (b) The commission may not allow for the late renewal of a license after the later of:
1335          (i) the tenth day of the month after the month in which the license type is required to be
1336     renewed; or
1337          (ii) if the tenth day of the month after the month in which the license type is required to
1338     be renewed falls on a Saturday, Sunday, or state or federal holiday, the first business day after
1339     the Saturday, Sunday, or holiday.
1340          (c) The fee for a late license renewal is $300.
1341          (4) If the commission is authorized or required to make a rule under this title, the
1342     commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative
1343     Rulemaking Act.
1344          (5) Notwithstanding Subsections (1)(e)(xvi) and (xvii), the director or deputy director
1345     may issue an event permit in accordance with Chapter 9, Event Permit Act.
1346          Section 10. Section 32B-2-303 is amended to read:
1347          32B-2-303. Purchase of liquor.
1348          [(1) The department may not purchase or stock spirituous liquor in a container smaller
1349     than 200 milliliters, except as otherwise allowed by the commission.]
1350          (1) The department may only:
1351          (a) purchase or stock spirituous liquor in a container smaller than 200 milliliters for the
1352     purpose of furnishing the spirituous liquor to a public service permittee issued a permit under
1353     Chapter 10, Part 3, Public Service Permit; and
1354          (b) furnish spirituous liquor in a container smaller than 200 milliliters to a public
1355     service permittee issued a permit under Chapter 10, Part 3, Public Service Permit.
1356          (2) (a) An order by the department for the purchase of liquor, or a cancellation by the
1357     department of an order of liquor:
1358          (i) shall be executed in writing by the department; and

1359          (ii) is not valid or binding unless executed in writing.
1360          (b) The department shall maintain a copy of an order or cancellation on file for at least
1361     three years.
1362          (c) An electronic record satisfies Subsections (2)(a) and (b) pursuant to Title 46,
1363     Chapter 4, Uniform Electronic Transactions Act.
1364          Section 11. Section 32B-4-202 is amended to read:
1365          32B-4-202. Duties to enforce this title.
1366          [(1)] It is the duty of the following to diligently enforce this title in their respective
1367     capacities:
1368          [(a)] (1) the governor;
1369          [(b)] (2) a commissioner;
1370          [(c)] (3) the director;
1371          [(d)] (4) an official, inspector, or department employee;
1372          [(e)] (5) a prosecuting official of the state or its political subdivisions;
1373          [(f)] (6) a county, city, town, or metro township;
1374          [(g)] (7) a peace officer, sheriff, deputy sheriff, constable, marshal, or law enforcement
1375     official;
1376          [(h)] (8) a state health official; and
1377          [(i)] (9) a clerk of the court.
1378          [(2) Immediately upon conviction of a person for violation of this title or of a local
1379     ordinance relating to an alcoholic product, it is the duty of the clerk of the court to notify the
1380     department of the conviction in writing on forms supplied by the department.]
1381          Section 12. Section 32B-4-418 is amended to read:
1382          32B-4-418. Unlawful storage.
1383          It is unlawful for a person to store:
1384          (1) liquor on premises for which the person is authorized to sell beer for on-premise
1385     consumption, but for which the person is not licensed under this title to sell liquor[.]; or
1386          (2) an alcoholic beverage for sale on premises for which the person is not licensed or
1387     otherwise authorized under this title to sell the alcoholic beverage.
1388          Section 13. Section 32B-5-304 is amended to read:
1389          32B-5-304. Portions in which alcoholic product may be sold.

1390          (1) (a) A retail licensee may sell, offer for sale, or furnish spirituous liquor that is a
1391     primary spirituous liquor only in a quantity that does not exceed 1.5 ounces per beverage
1392     dispensed through a calibrated metered dispensing system approved by the department in
1393     accordance with commission rules adopted under this title.
1394          (b) A retail license is not required to dispense spirituous liquor through a calibrated
1395     metered dispensing system if the spirituous liquor is:
1396          (i) a secondary flavoring ingredient;
1397          (ii) used as a flavoring on a dessert; or
1398          (iii) used to set aflame a food dish, drink, or dessert.
1399          (c) A retail licensee that dispenses spirituous liquor that is a secondary flavoring
1400     ingredient shall:
1401          (i) designate a location where the retail licensee stores secondary flavoring ingredients
1402     on the floor plan the retail licensee submits to the department; and
1403          (ii) clearly and conspicuously label each secondary flavoring ingredient's container
1404     "flavorings".
1405          (d) A patron may have no more than 2.5 ounces of spirituous liquor at a time.
1406          (2) (a) (i) A retail licensee may sell, offer for sale, or furnish wine by the glass or in an
1407     individual portion that does not exceed 5 ounces per glass or individual portion.
1408          (ii) A retail licensee may sell, offer for sale, or furnish an individual portion of wine to
1409     a patron in more than one glass if the total amount of wine does not exceed 5 ounces.
1410          (b) (i) A retail licensee may sell, offer for sale, or furnish wine in a container not
1411     exceeding 1.5 liters at a price fixed by the commission to a table of four or more persons.
1412          (ii) A retail licensee may sell, offer for sale, or furnish wine in a container not to
1413     exceed 750 milliliters at a price fixed by the commission to a table of less than four persons.
1414          [(3)] (c) Notwithstanding Subsections (2)(a) and (b), a retail licensee may sell, offer for
1415     sale, or furnish hard cider that contains no more than 5% of alcohol by volume in a sealed
1416     container not to exceed 16 ounces.
1417          (3) A retail licensee may sell, offer for sale, or furnish heavy beer in an original
1418     container at a price fixed by the commission, except that the original container may not exceed
1419     one liter.
1420          (4) A retail licensee may sell, offer for sale, or furnish a flavored malt beverage in an

1421     original container at a price fixed by the commission, except that the original container may not
1422     exceed one liter.
1423          (5) (a) (i) Subject to Subsection (5)(a)(ii), a retail licensee may sell, offer for sale, or
1424     furnish beer for on-premise consumption:
1425          (A) in an open original container; and
1426          (B) in a container on draft.
1427          (ii) A retail licensee may not sell, offer for sale, or furnish beer under Subsection
1428     (5)(a)(i):
1429          (A) in a size of container that exceeds two liters; or
1430          (B) to an individual patron in a size of container that exceeds one liter.
1431          (b) A retail licensee may sell, offer for sale, or furnish beer for off-premise
1432     consumption:
1433          (i) in a sealed container; and
1434          (ii) in a size of container that does not exceed two liters.
1435          (c) A retail licensee may sell, offer for sale, or furnish a flight of beer to an individual
1436     patron if the total amount of beer does not exceed 16 ounces.
1437          Section 14. Section 32B-5-309 is amended to read:
1438          32B-5-309. Ceasing operation.
1439          (1) Except as provided in Subsection (8), a retail licensee may not close or cease
1440     operation for a period longer than 240 hours, unless:
1441          (a) the retail licensee notifies the department in writing at least seven days before the
1442     day on which the retail licensee closes or ceases operation; and
1443          (b) the closure or cessation of operation is first approved by the department.
1444          (2) Notwithstanding Subsection (1), in the case of emergency closure, a retail licensee
1445     shall immediately notify the department by telephone.
1446          (3) (a) The department may authorize an initial closure or cessation of operation of a
1447     retail licensee for a period not to exceed 60 days.
1448          (b) Upon written request of the retail licensee and a showing of good cause, the
1449     department may extend the initial period described in Subsection (3)(a) for a period not to
1450     exceed the greater of:
1451          (i) 30 days; or

1452          (ii) the number of days until the day on which the commission holds the commission's
1453     next regularly scheduled meeting.
1454          (4) A closure or cessation of operation may not exceed the time limits described in
1455     Subsection (3) without commission approval.
1456          (5) A notice required under this section shall include:
1457          (a) the dates of closure or cessation of operation;
1458          (b) the reason for the closure or cessation of operation; and
1459          (c) the date on which the retail licensee will reopen or resume operation.
1460          (6) [Failure of] If a retail licensee fails to provide notice and to obtain department
1461     approval before closure or cessation of operation [results in an automatic forfeiture of], the
1462     commission may:
1463          (a) suspend, revoke, or deem forfeited the retail license; [and] or
1464          (b) deem the unused portion of the retail license fee for the remainder of the retail
1465     license year [effective immediately] forfeited.
1466          (7) [Failure of] If a retail licensee fails to reopen or resume operation by the [approved
1467     date results in an automatic forfeiture of] date approved under Subsections (3) and (4), the
1468     commission may:
1469          (a) suspend, revoke, or deem forfeited the retail license; [and] or
1470          (b) deem the unused portion of the retail license fee for the remainder of the retail
1471     license year forfeited.
1472          (8) This section does not apply to:
1473          (a) an on-premise beer retailer who is not a tavern;
1474          (b) an airport lounge licensee; or
1475          (c) a hospitality amenity licensee.
1476          (9) For purposes of this section, the department may not base a determination that a
1477     retail licensee has ceased operation solely upon the retail licensee's lack of sales.
1478          Section 15. Section 32B-6-203 is amended to read:
1479          32B-6-203. Commission's power to issue full-service restaurant license.
1480          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
1481     an alcoholic product on its premises as a full-service restaurant, the person shall first obtain a
1482     full-service restaurant license from the commission in accordance with this part.

1483          (2) The commission may issue a full-service restaurant license to establish full-service
1484     restaurant licensed premises at places and in numbers the commission considers proper for the
1485     storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises
1486     operated as a full-service restaurant.
1487          (3) Subject to Section 32B-1-201:
1488          (a) [The] the commission may not issue a total number of full-service restaurant
1489     licenses that at any time exceeds the [number] sum of:
1490          (i) 35; and
1491          (ii) the number determined by dividing the population of the state by 4,467[.];
1492          (b) [The] the commission may issue a seasonal full-service restaurant license in
1493     accordance with Section 32B-5-206[.]; Ŝ→ and ←Ŝ
1494          (c) (i) [If] if the location, design, and construction of a hotel may require more than one
1495     full-service restaurant sales location within the hotel to serve the public convenience, the
1496     commission may authorize the sale, offer for sale, or furnishing of an alcoholic product at as
1497     many as three full-service restaurant locations within the hotel under one full-service restaurant
1498     license if:
1499          (A) the hotel has a minimum of 150 guest rooms; and
1500          (B) the locations under the full-service restaurant license are:
1501          (I) within the same hotel; and
1502          (II) on premises that are managed or operated, and owned or leased, by the full-service
1503     restaurant licensee[.]; and
1504          (ii) [A] except for a hotel, a facility [other than a hotel] shall have a separate
1505     full-service restaurant license for each full-service restaurant where an alcoholic product is
1506     sold, offered for sale, or furnished.
1507          (4) Except as otherwise provided in Section 32B-1-202, the commission may not issue
1508     a full-service restaurant license for premises that do not meet the proximity requirements of
1509     Subsection 32B-1-202(2).
1510          (5) To be licensed as a full-service restaurant, a person shall maintain at least 70% of
1511     the restaurant's gross revenues from the sale of food, which does not include:
1512          (a) mix for an alcoholic product; or
1513          (b) a service charge.

1514          Section 16. Section 32B-6-205.2 is amended to read:
1515          32B-6-205.2. Specific operational requirements for a full-service restaurant
1516     license -- On and after July 1, 2018, or July 1, 2022.
1517          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
1518     Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee
1519     shall comply with this section.
1520          (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in
1521     accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
1522          (i) a full-service restaurant licensee;
1523          (ii) individual staff of a full-service restaurant licensee; or
1524          (iii) both a full-service restaurant licensee and staff of the full-service restaurant
1525     licensee.
1526          (2) (a) An individual who serves an alcoholic product in a full-service restaurant
1527     licensee's premises shall make a beverage tab for each table or group that orders or consumes
1528     an alcoholic product on the premises.
1529          (b) A beverage tab described in this Subsection (2) shall state the type and amount of
1530     each alcoholic product ordered or consumed.
1531          (3) A full-service restaurant licensee may not make an individual's willingness to serve
1532     an alcoholic product a condition of employment with a full-service restaurant licensee.
1533          (4) (a) A full-service restaurant licensee may sell, offer for sale, or furnish liquor at the
1534     licensed premises during the following time periods only:
1535          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
1536          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
1537     period that begins at 10:30 a.m. and ends at 11:59 p.m.
1538          (b) A full-service restaurant licensee may sell, offer for sale, or furnish beer at the
1539     licensed premises during the following time periods only:
1540          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
1541          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
1542     period that begins at 10:30 a.m. and ends at 12:59 a.m.
1543          (5) (a) A full-service restaurant licensee may not furnish an alcoholic product for
1544     on-premise consumption except after:

1545          (i) the patron to whom the full-service restaurant licensee furnishes the alcoholic
1546     product is seated at:
1547          (A) a table that is located in a dining area or a dispensing area;
1548          (B) a counter that is located in a dining area or a dispensing area; or
1549          (C) a dispensing structure that is located in a dispensing area; and
1550          (ii) the full-service restaurant licensee confirms that the patron intends to:
1551          (A) order food prepared, sold, and furnished at the licensed premises; and
1552          (B) except as provided in Subsection (5)(b), consume the food at the same location
1553     where the patron is seated and furnished the alcoholic product.
1554          (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
1555     full-service restaurant licensee, the full-service restaurant licensee may sell, offer for sale, or
1556     furnish to the patron one drink that contains a single portion of an alcoholic product as
1557     described in Section 32B-5-304 if:
1558          (A) the patron is in a dispensing area and seated at a table, counter, or dispensing
1559     structure; and
1560          (B) the full-service restaurant licensee first confirms that after the patron is seated in
1561     the dining area, the patron intends to order food prepared, sold, and furnished at the licensed
1562     premises.
1563          [(ii) If] (ii) (A) Subject to Subsection (5)(b)(ii)(B), if the patron does not finish the
1564     patron's alcoholic product before moving to a seat in the dining area, [an employee of the
1565     full-service restaurant licensee who is qualified to sell and serve an alcoholic product under
1566     Section 32B-5-306 shall] the patron may transport any unfinished portion of the patron's
1567     alcoholic product to the patron's seat in the dining area.
1568          (B) An employee of the full-service restaurant licensee shall escort a patron who
1569     transports an unfinished portion of the patron's alcoholic product to the patron's seat in the
1570     dining area.
1571          (iii) For purposes of Subsection (5)(b)(i) a single portion of wine is five ounces or less.
1572          (c) Notwithstanding Section 32B-5-307, a full-service restaurant licensee may not
1573     furnish beer for off-premise consumption except after the patron consumes on the licensed
1574     premises food prepared, sold, and furnished at the licensed premises.
1575          (d) A full-service restaurant licensee shall maintain on the licensed premises adequate

1576     culinary facilities for food preparation and dining accommodations.
1577          (6) A patron may consume an alcoholic product on the full-service restaurant licensee's
1578     licensed premises only if the patron is seated at:
1579          (a) a table that is located in a dining area or dispensing area;
1580          (b) a counter that is located in a dining area or dispensing area; or
1581          (c) a dispensing structure located in a dispensing area.
1582          (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have
1583     more than two alcoholic products of any kind at a time before the patron.
1584          (b) A patron may not have more than one spirituous liquor drink at a time before the
1585     patron.
1586          (c) An individual portion of wine is considered to be one alcoholic product under
1587     Subsection (7)(a).
1588          (8) In accordance with the provisions of this section, an individual who is at least 21
1589     years old may consume food and beverages in a dispensing area.
1590          (9) (a) Except as provided in Subsection (9)(b), a minor may not sit, remain, or
1591     consume food or beverages in a dispensing area.
1592          (b) (i) A minor may be in a dispensing area if the minor is:
1593          (A) at least 16 years old and working as an employee of the full-service restaurant
1594     licensee; or
1595          (B) performing maintenance and cleaning services as an employee of the full-service
1596     restaurant licensee when the full-service restaurant licensee is not open for business.
1597          (ii) If there is no alternative route available, a minor may momentarily pass through a
1598     dispensing area without remaining or sitting in the dispensing area en route to an area of the
1599     full-service restaurant licensee's premises in which the minor is permitted to be.
1600          (10) Except as provided in Subsection 32B-5-307(3), a full-service restaurant licensee
1601     may dispense an alcoholic product only if:
1602          (a) the alcoholic product is dispensed from:
1603          (i) a dispensing structure that is located in a dispensing area;
1604          (ii) an area that is:
1605          (A) separated from an area for the consumption of food by a patron by a solid,
1606     translucent, permanent structural barrier such that the facilities for the dispensing of an

1607     alcoholic product are not readily visible to a patron and not accessible by a patron; and
1608          (B) apart from an area used for dining, for staging, or as a waiting area; or
1609          (iii) the premises of a bar licensee that is:
1610          (A) owned by the same person or persons as the full-service restaurant licensee; and
1611          (B) located immediately adjacent to the premises of the full-service restaurant licensee;
1612     and
1613          (b) any instrument or equipment used to dispense alcoholic product is located in an
1614     area described in Subsection (10)(a).
1615          (11) (a) A full-service restaurant licensee may have more than one dispensing area in
1616     the licensed premises.
1617          (b) Each dispensing area in a licensed premises may satisfy the requirements for a
1618     dispensing area under Subsection 32B-6-202(2)(a)(i), (ii), or (iii), regardless of how any other
1619     dispensing area in the licensed premises satisfies the requirements for a dispensing area.
1620          (12) A full-service restaurant licensee may not:
1621          (a) transfer, dispense, or serve an alcoholic product on or from a movable cart; or
1622          (b) display an alcoholic product or a product intended to appear like an alcoholic
1623     product by moving a cart or similar device around the licensed premises.
1624          (13) A full-service restaurant licensee may state in a food or alcoholic product menu a
1625     charge or fee made in connection with the sale, service, or consumption of liquor, including:
1626          (a) a set-up charge;
1627          (b) a service charge; or
1628          (c) a chilling fee.
1629          (14) (a) In addition to the requirements described in Section 32B-5-302, a full-service
1630     restaurant licensee shall maintain each of the following records for at least three years:
1631          (i) a record required by Section 32B-5-302; and
1632          (ii) a record that the commission requires a full-service restaurant licensee to use or
1633     maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1634     Rulemaking Act.
1635          (b) The department shall audit the records of a full-service restaurant licensee at least
1636     once annually.
1637          (15) A full-service restaurant licensee may lease to a patron of the full-service

1638     restaurant licensee a locked storage space:
1639          (a) that the commission considers proper for the storage of wine; and
1640          (b) for the storage of wine that:
1641          (i) the patron purchases from the full-service restaurant licensee; and
1642          (ii) only the full-service restaurant licensee or staff of the full-service restaurant
1643     licensee may remove from the locker for the patron's use in accordance with this title,
1644     including:
1645          (A) service and consumption on licensed premises as described in Section 32B-5-306;
1646     or
1647          (B) removal from the full-service retail licensee's licensed premises in accordance with
1648     Section 32B-5-307.
1649          Section 17. Section 32B-6-206 is amended to read:
1650          32B-6-206. Master full-service restaurant license.
1651          (1) (a) The commission may issue a master full-service restaurant license that
1652     authorizes a person to store, sell, offer for sale, furnish, or allow the consumption of an
1653     alcoholic product on premises at multiple locations as full-service restaurants if the person
1654     applying for the master full-service restaurant license:
1655          (i) owns each of the full-service restaurants;
1656          (ii) except for the fee requirements, establishes to the satisfaction of the commission
1657     that each location of a full-service restaurant under the master full-service restaurant license
1658     separately meets the requirements of this part; and
1659          (iii) the master full-service restaurant license includes at least five full-service
1660     restaurant locations.
1661          (b) The person seeking a master full-service restaurant license shall designate which
1662     full-service restaurant locations the person seeks to have under the master full-service
1663     restaurant license.
1664          (c) A full-service restaurant location under a master full-service restaurant license is
1665     considered separately licensed for purposes of this title, except as provided in this section.
1666          (2) A master full-service restaurant license and each location designated under
1667     Subsection (1) are considered a single full-service restaurant license for purposes of Subsection
1668     32B-6-203(3)(a).

1669          (3) (a) A master full-service restaurant license expires on October 31 of each year.
1670          (b) To renew a person's master full-service restaurant license, a person shall comply
1671     with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
1672     September 30.
1673          (4) (a) The nonrefundable application fee for a master full-service restaurant license is
1674     $330.
1675          (b) (i) The initial license fee for a master full-service restaurant license is [$10,000]
1676     $5,000 plus a separate initial license fee for each newly licensed full-service restaurant license
1677     under the master full-service restaurant license determined in accordance with Subsection
1678     32B-6-204(3)(b).
1679          (ii) The department may prorate the $5,000 initial license fee based on the number of
1680     months out of a year the master full-service restaurant licensee is licensed before the day on
1681     which the master full-service restaurant license expires.
1682          (c) [The renewal fee for a] To renew a master full-service restaurant license [is $1,000
1683     plus a] the master full-service restaurant licensee shall pay a separate renewal fee for each
1684     full-service license under the master full-service restaurant license determined in accordance
1685     with Subsection 32B-6-204(3)(c).
1686          (5) A new location may be added to a master full-service restaurant license after the
1687     master full-service restaurant license is issued if:
1688          (a) the master full-service restaurant licensee pays a nonrefundable application fee of
1689     $330; and
1690          (b) including payment of the initial license fee, the location separately meets the
1691     requirements of this part.
1692          (6) (a) A master full-service restaurant licensee shall notify the department of a change
1693     in the persons managing a location covered by a master full-service restaurant license:
1694          (i) immediately, if the management personnel is not management personnel at a
1695     location covered by the master full-service restaurant licensee at the time of the change; or
1696          (ii) within 30 days of the change, if the master full-service restaurant licensee is
1697     transferring management personnel from one location to another location covered by the master
1698     full-service restaurant licensee.
1699          (b) A location covered by a master full-service restaurant license shall keep [its] the

1700     location's own records on [its] the location's premises so that the department may audit the
1701     records.
1702          (c) A master full-service restaurant licensee may not transfer alcoholic products
1703     between different locations covered by the master full-service restaurant license.
1704          (7) [(a)] If there is a violation of this title at a location covered by a master full-service
1705     restaurant license, the violation may result in disciplinary action in accordance with Chapter 3,
1706     Disciplinary Actions and Enforcement Act, against:
1707          [(i)] (a) the single location under a master full-service restaurant license;
1708          [(ii)] (b) individual staff of the location under the master full-service restaurant license;
1709     or
1710          [(iii)] (c) a combination of persons or locations described in Subsections (7)(a)(i) and
1711     (ii).
1712          [(b) In addition to disciplinary action under Subsection (7)(a), disciplinary action in
1713     accordance with Chapter 3, Disciplinary Actions and Enforcement Act, may be taken against a
1714     master full-service restaurant licensee or individual staff of the master full-service restaurant
1715     licensee if during a period beginning on November 1 and ending October 31:]
1716          [(i) at least 25% of the locations covered by the master full-service restaurant license
1717     have been found by the commission to have committed a serious or grave violation of this title,
1718     as defined by rule made by the commission; or]
1719          [(ii) at least 50% of the locations covered by the master full-service restaurant license
1720     have been found by the commission to have violated this title.]
1721          (8) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah
1722     Administrative Rulemaking Act, to establish how a person may apply for a master full-service
1723     restaurant license under this section.
1724          Section 18. Section 32B-6-305.2 is amended to read:
1725          32B-6-305.2. Specific operational requirements for a limited-service restaurant
1726     license -- On and after July 1, 2018, or July 1, 2022.
1727          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
1728     Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant
1729     licensee shall comply with this section.
1730          (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in

1731     accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
1732          (i) a limited-service restaurant licensee;
1733          (ii) individual staff of a limited-service restaurant licensee; or
1734          (iii) both a limited-service restaurant licensee and staff of the limited-service restaurant
1735     licensee.
1736          (2) (a) An individual who serves an alcoholic product in a limited-service restaurant
1737     licensee's premises shall make a beverage tab for each table or group that orders or consumes
1738     an alcoholic product on the premises.
1739          (b) A beverage tab described in this Subsection (2) shall state the type and amount of
1740     each alcoholic product ordered or consumed.
1741          (3) A limited-service restaurant licensee may not make an individual's willingness to
1742     serve an alcoholic product a condition of employment with a limited-service restaurant
1743     licensee.
1744          (4) (a) A limited-service restaurant licensee may sell, offer for sale, or furnish wine or
1745     heavy beer at the licensed premises during the following time periods only:
1746          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or
1747          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
1748     period that begins at 10:30 a.m. and ends at 11:59 p.m.
1749          (b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer at the
1750     licensed premises during the following time periods only:
1751          (i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
1752          (ii) on a weekend or a state or federal legal holiday or for a private event, during the
1753     period that begins at 10:30 a.m. and ends at 12:59 a.m.
1754          (5) (a) A limited-service restaurant licensee may not furnish an alcoholic product for
1755     on-premise consumption except after:
1756          (i) the patron to whom the limited-service restaurant licensee furnishes the alcoholic
1757     product is seated at:
1758          (A) a table that is located in a dining area or a dispensing area;
1759          (B) a counter that is located in a dining area or a dispensing area; or
1760          (C) a dispensing structure that is located in a dispensing area; and
1761          (ii) the limited-service restaurant licensee confirms that the patron intends to:

1762          (A) order food prepared, sold, and furnished at the licensed premises; and
1763          (B) except as provided in Subsection (5)(b), consume the food at the same location
1764     where the patron is seated and furnished the alcoholic product.
1765          (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
1766     limited-service restaurant licensee, the limited-service restaurant licensee may sell, offer for
1767     sale, or furnish to the patron one drink that contains a single portion of an alcoholic product as
1768     described in Section 32B-5-304 if:
1769          (A) the patron is in a dispensing area and seated at a table, counter, or dispensing
1770     structure; and
1771          (B) the limited-service restaurant licensee first confirms that after the patron is seated
1772     in the dining area, the patron intends to order food prepared, sold, and furnished at the licensed
1773     premises.
1774          [(ii) If] (ii) (A) Subject to Subsection (5)(b)(ii)(B), if the patron does not finish the
1775     patron's alcoholic product before moving to a seat in the dining area, [an employee of the
1776     limited-service restaurant licensee who is qualified to sell and serve an alcoholic product under
1777     Section 32B-5-306 shall] the patron may transport any unfinished portion of the patron's
1778     alcoholic product to the patron's seat in the dining area.
1779          (B) An employee of the limited-service restaurant licensee shall escort a patron who
1780     transports an unfinished portion of the patron's alcoholic product to the patron's seat in the
1781     dining area.
1782          (iii) For purposes of Subsection (5)(b)(i) a single portion of wine is 5 ounces or less.
1783          (c) Notwithstanding Section 32B-5-307, a limited-service restaurant licensee may not
1784     furnish beer for off-premise consumption except after the patron consumes on the licensed
1785     premises food prepared, sold, and furnished at the licensed premises.
1786          (d) A limited-service restaurant licensee shall maintain on the licensed premises
1787     adequate culinary facilities for food preparation and dining accommodations.
1788          (6) A patron may consume an alcoholic product on the limited-service restaurant
1789     licensee's licensed premises only if the patron is seated at:
1790          (a) a table that is located in a dining area or a dispensing area;
1791          (b) a counter that is located in a dining area or a dispensing area; or
1792          (c) a dispensing structure located in a dispensing area.

1793          (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have
1794     more than two alcoholic products of any kind at a time before the patron.
1795          (b) An individual portion of wine is considered to be one alcoholic product under
1796     Subsection (7)(a).
1797          (8) In accordance with the provisions of this section, an individual who is at least 21
1798     years old may consume food and beverages in a dispensing area.
1799          (9) (a) Except as provided in Subsection (9)(b), a minor may not sit, remain, or
1800     consume food or beverages in a dispensing area.
1801          (b) (i) A minor may be in a dispensing area if the minor is:
1802          (A) at least 16 years old and working as an employee of the limited-service restaurant
1803     licensee; or
1804          (B) performing maintenance and cleaning services as an employee of the
1805     limited-service restaurant licensee when the limited-service restaurant licensee is not open for
1806     business.
1807          (ii) If there is no alternative route available, a minor may momentarily pass through a
1808     dispensing area without remaining or sitting in the dispensing area en route to an area of the
1809     limited-service restaurant licensee's premises in which the minor is permitted to be.
1810          (10) Except as provided in Subsection 32B-5-307(3), a limited-service restaurant
1811     licensee may dispense an alcoholic product only if:
1812          (a) the alcoholic product is dispensed from:
1813          (i) a dispensing structure that is located in a dispensing area;
1814          (ii) an area that is:
1815          (A) separated from an area for the consumption of food by a patron by a solid,
1816     translucent, permanent structural barrier such that the facilities for the dispensing of an
1817     alcoholic product are not readily visible to a patron and not accessible by a patron; and
1818          (B) apart from an area used for dining, for staging, or as a waiting area; or
1819          (iii) the premises of a bar licensee that is:
1820          (A) owned by the same person or persons as the limited-service restaurant licensee; and
1821          (B) located immediately adjacent to the premises of the limited-service restaurant
1822     licensee; and
1823          (b) any instrument or equipment used to dispense alcoholic product is located in an

1824     area described in Subsection (10)(a).
1825          (11) (a) A limited-service restaurant licensee may have more than one dispensing area
1826     in the licensed premises.
1827          (b) Each dispensing area in a licensed premises may satisfy the requirements for a
1828     dispensing area under Subsection 32B-6-202(2)(a)(i), (ii), or (iii), regardless of how any other
1829     dispensing area in the licensed premises satisfies the requirements for a dispensing area.
1830          (12) A limited-service restaurant licensee may not:
1831          (a) transfer, dispense, or serve an alcoholic product on or from a movable cart; or
1832          (b) display an alcoholic product or a product intended to appear like an alcoholic
1833     product by moving a cart or similar device around the licensed premises.
1834          (13) A limited-service restaurant licensee may state in a food or alcoholic product
1835     menu a charge or fee made in connection with the sale, service, or consumption of wine or
1836     heavy beer, including:
1837          (a) a set-up charge;
1838          (b) a service charge; or
1839          (c) a chilling fee.
1840          (14) (a) In addition to the requirements described in Section 32B-5-302, a
1841     limited-service restaurant licensee shall maintain each of the following records for at least three
1842     years:
1843          (i) a record required by Section 32B-5-302; and
1844          (ii) a record that the commission requires a limited-service restaurant licensee to use or
1845     maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1846     Rulemaking Act.
1847          (b) The department shall audit the records of a limited-service restaurant licensee at
1848     least once each calendar year.
1849          Section 19. Section 32B-6-403 is amended to read:
1850          32B-6-403. Commission's power to issue bar establishment license.
1851          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
1852     an alcoholic product on [its] the person's premises as a bar establishment licensee, the person
1853     shall first obtain a bar establishment license from the commission in accordance with this part.
1854          (2) The commission may issue a bar establishment license to establish bar

1855     establishment licensed premises at places and in numbers the commission considers proper for
1856     the storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on
1857     premises operated by a bar establishment licensee.
1858          (3) Subject to Section 32B-1-201:
1859          [(a) (i)] before July 1, 2018, the commission may not issue a total number of bar
1860     establishment licenses that at any time exceeds the number determined by dividing the
1861     population of the state by 7,850; and
1862          (a) [(ii) beginning on July 1, 2018,] the commission may not issue a total number of
1863     bar establishment licenses that at any time exceeds the [number] sum of:
1864          (i) 20; and
1865          (ii) the number determined by dividing the population of the state by 10,200;
1866          (b) the commission may issue a seasonal bar establishment license in accordance with
1867     Section 32B-5-206 to[:]
1868          [(i) a dining club licensee; or]
1869          [(ii)] a bar licensee;
1870          (c) [(i) if the location, design, and construction of a hotel may require more than one
1871     dining club license or bar license location within the hotel to serve the public convenience,] the
1872     commission may authorize as many as three bar establishment license locations within [the] a
1873     hotel under one bar establishment license if:
1874          [(A)] (i) the location, design, and construction of the hotel requires more than one bar
1875     license location within the hotel to serve the public convenience;
1876          (ii) the hotel has a minimum of 150 guest rooms;
1877          [(B)] (iii) all locations under the bar establishment license are:
1878          [(I)] (A) within the same hotel; and
1879          [(II)] (B) on premises that are managed or operated, and owned or leased, by the bar
1880     establishment licensee; [and]
1881          [(C) the locations under the bar establishment license operate under the same type of
1882     bar establishment license; and]
1883          (d) the commission may authorize up to five dispensing structures under one equity
1884     license if the locations under the equity license:
1885          (i) are connected by a private roadway to which the equity licensee, each member of

1886     the equity licensee, and each guest has a legal right of access; and
1887          (ii) are managed or operated, and owned or leased, by the equity licensee;
1888          [(ii)] (e) except for a facility operating in accordance with Subsection (3)(d) or a hotel,
1889     a facility [other than a hotel] shall have a separate bar establishment license for each bar
1890     establishment license location where an alcoholic product is sold, offered for sale, or furnished;
1891          [(d)] (f) when a business establishment undergoes a change of ownership, the
1892     commission may issue a bar establishment license to the new owner of the business
1893     establishment notwithstanding that there is no bar establishment license available under
1894     Subsection (3)(a) if:
1895          (i) the primary business activity at the business establishment before and after the
1896     change of ownership is not the sale, offer for sale, or furnishing of an alcoholic product;
1897          (ii) before the change of ownership there are two or more licensed premises on the
1898     business establishment that operate under a retail license, with at least one of the retail licenses
1899     being a bar establishment license;
1900          (iii) subject to Subsection [(3)(e),] (3)(g) the licensed premises of the bar establishment
1901     license issued under this Subsection [(3)(d)] (3)(f) is at the same location where the bar
1902     establishment license licensed premises was located before the change of ownership; and
1903          (iv) the person who is the new owner of the business establishment qualifies for the bar
1904     establishment license, except for there being no bar establishment license available under
1905     Subsection (3)(a); and
1906          [(e)] (g) if a bar establishment licensee of a bar establishment license issued under
1907     Subsection [(3)(d)] (3)(f) requests a change of location, the bar establishment licensee may
1908     retain the bar establishment license after the change of location only if on the day on which the
1909     bar establishment licensee seeks a change of location a bar establishment license is available
1910     under Subsection (3)(a).
1911          Section 20. Section 32B-6-404 is amended to read:
1912          32B-6-404. Types of bar license.
1913          (1) To obtain an equity license, in addition to meeting the other requirements of this
1914     part, a person shall:
1915          (a) whether incorporated or unincorporated:
1916          (i) be organized and operated solely for a social, recreational, patriotic, or fraternal

1917     purpose;
1918          (ii) have members;
1919          (iii) limit access to its licensed premises to a member or a guest of the member; and
1920          (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
1921     to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
1922          (b) except as provided in Subsection (8), own, maintain, or operate a substantial
1923     recreational facility in conjunction with a club house such as:
1924          (i) a golf course; or
1925          (ii) a tennis facility;
1926          (c) have at least 50% of the total membership having an equal share of the equity of the
1927     entity or a right to redemption or refund at the equal value; and
1928          (d) if there is more than one class of membership, have at least one class of
1929     membership that entitles each member in that class to an equal share of the equity of the entity
1930     or a right to redemption or refund at the equal value.
1931          (2) To obtain a fraternal license, in addition to meeting the other requirements of this
1932     part, a person shall:
1933          (a) whether incorporated or unincorporated:
1934          (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
1935     purpose;
1936          (ii) have members;
1937          (iii) limit access to its licensed premises to a member or a guest of the member; and
1938          (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
1939     to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
1940          (b) have no capital stock;
1941          (c) exist solely for:
1942          (i) the benefit of its members and their beneficiaries; and
1943          (ii) a lawful social, intellectual, educational, charitable, benevolent, moral, fraternal,
1944     patriotic, or religious purpose for the benefit of its members or the public, carried on through
1945     voluntary activity of its members in their local lodges;
1946          (d) have a representative form of government;
1947          (e) have a lodge system in which:

1948          (i) there is a supreme governing body;
1949          (ii) subordinate to the supreme governing body are local lodges, however designated,
1950     into which individuals are admitted as members in accordance with the laws of the fraternal;
1951          (iii) the local lodges are required by the laws of the fraternal to hold regular meetings at
1952     least monthly; and
1953          (iv) the local lodges regularly engage in one or more programs involving member
1954     participation to implement the purposes of Subsection (2)(c); and
1955          (f) own or lease a building or space in a building used for lodge activities.
1956          (3) To obtain a dining club license, in addition to meeting the other requirements of
1957     this part, a person shall:
1958          (a) maintain at least the following percentages of its total club business from the sale of
1959     food, not including mix for alcoholic products, or service charges:
1960          (i) for a dining club license that is issued as an original license on or after July 1, 2011,
1961     60%; and
1962          (ii) for a dining club license that is issued on or before June 30, 2011:
1963          (A) 50% on or before June 30, 2012; and
1964          (B) 60% on and after July 1, 2012; and
1965          (b) obtain a determination by the commission that the person will operate as a dining
1966     club licensee, as part of which the commission may consider:
1967          (i) the square footage and seating capacity of the premises;
1968          (ii) what portion of the square footage and seating capacity will be used for a dining
1969     area in comparison to the portion that will be used as a lounge or bar area;
1970          (iii) whether full meals including appetizers, main courses, and desserts are served;
1971          (iv) whether the person will maintain adequate on-premise culinary facilities to prepare
1972     full meals, except a person who is located on the premise of a hotel or resort facility may use
1973     the culinary facilities of the hotel or resort facility;
1974          (v) whether the entertainment provided at the premises is suitable for minors; and
1975          (vi) the club management's ability to manage and operate a dining club license
1976     including:
1977          (A) management experience;
1978          (B) past dining club licensee or restaurant management experience; and

1979          (C) the type of management scheme used by the dining club license.
1980          (4) To obtain a bar license, a person is required to meet the requirements of this part
1981     except those listed in Subsection (1), (2), or (3).
1982          (5) (a) At the time that the commission issues a bar establishment license, the
1983     commission shall designate the type of bar establishment license for which the person qualifies.
1984          (b) If requested by a bar establishment licensee, the commission may approve a change
1985     in the type of bar establishment license in accordance with rules made by the commission.
1986          (6) To the extent not prohibited by law, this part does not prevent a dining club
1987     licensee or bar licensee from restricting access to the licensed premises on the basis of an
1988     individual:
1989          (a) paying a fee; or
1990          (b) agreeing to being on a list of individuals who have access to the licensed premises.
1991          (7) (a) (i) On or after July 1, 2017, the commission may not issue or renew a dining
1992     club license.
1993          (ii) No later than July 1, 2018, the department shall convert each dining club license to
1994     a full-service restaurant license or a bar license in accordance with the provisions of this
1995     Subsection (7).
1996          (b) (i) (A) A person licensed as a dining club on July 1, 2017, shall notify the
1997     department no later than May 31, 2018, whether the person elects to be licensed as a
1998     full-service restaurant or a bar.
1999          (B) No later than July 1, 2018, the department shall convert a dining club license to a
2000     full-service restaurant license or a bar license in accordance with the dining club licensee's
2001     election under Subsection (7)(b)(i)(A).
2002          (ii) If a dining club licensee fails to timely notify the department in accordance with
2003     Subsection (7)(b)(i), the dining club license is automatically converted to a full-service
2004     restaurant license on July 1, 2018.
2005          (c) Subject to Section 32B-6-404.1, after a dining club license converts to a full-service
2006     restaurant license or a bar license, the retail licensee shall operate under the provisions that
2007     govern the full-service restaurant license or the bar license, as applicable.
2008          (d) After a dining club license converts to a full-service restaurant license or a bar
2009     license in accordance with this Subsection (7):

2010          (i) the full-service restaurant license is not considered in determining the total number
2011     of full-service restaurant licenses available under Section 32B-6-203; or
2012          (ii) the bar license is not considered in determining the total number of bar
2013     establishment licenses available under Section 32B-6-403.
2014          (e) Except as provided in Subsections (7)(a) and (b), before July 1, 2018, the
2015     commission may not issue a full-service restaurant license, a limited-service restaurant license,
2016     or a beer-only restaurant license to a person who holds a dining club license on May 9, 2017,
2017     for the same premises.
2018          (f) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2019     commission may make rules establishing a procedure by which a dining club licensee elects
2020     and converts to a full-service restaurant licensee or a bar licensee under this Subsection (7).
2021          (8) Subsection (1)(b) does not apply to a person who renews an equity license issued
2022     before January 1, 2020, if the person did not meet the requirements under Subsection (1)(b) at
2023     the time the equity license was issued.
2024          Section 21. Section 32B-6-406 is amended to read:
2025          32B-6-406. Specific operational requirements for a bar establishment license.
2026          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2027     Requirements, a bar establishment licensee and staff of the bar establishment licensee shall
2028     comply with this section.
2029          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2030     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2031          (i) a bar establishment licensee;
2032          (ii) individual staff of a bar establishment licensee; or
2033          (iii) both a bar establishment licensee and staff of the bar establishment licensee.
2034          (2) In addition to complying with Subsection 32B-5-301(3), a bar licensee shall display
2035     in a conspicuous place at the entrance to the licensed premises a sign that:
2036          (a) measures at least 8-1/2 inches long and 11 inches wide; and
2037          (b) clearly states that the bar licensee is a bar and that no one under 21 years of age is
2038     allowed.
2039          (3) (a) In addition to complying with Section 32B-5-302, a bar establishment licensee
2040     shall maintain for a minimum of three years:

2041          (i) a record required by Section 32B-5-302; and
2042          (ii) a record maintained or used by the bar establishment licensee, as the department
2043     requires.
2044          (b) Section 32B-1-205 applies to a record required to be made, maintained, or used in
2045     accordance with this Subsection (3).
2046          (c) The department shall audit the records of a bar establishment licensee at least once
2047     annually.
2048          (4) (a) A bar establishment licensee may not sell, offer for sale, or furnish liquor on the
2049     licensed premises on any day during a period that:
2050          (i) begins at 1 a.m.; and
2051          (ii) ends at 9:59 a.m.
2052          (b) A bar establishment licensee may sell, offer for sale, or furnish beer during the
2053     hours specified in Part 7, On-Premise Beer Retailer License, for an on-premise beer retailer
2054     license.
2055          (c) (i) Notwithstanding Subsections (4)(a) and (b), a bar establishment licensee shall
2056     keep its licensed premises open for one hour after the bar establishment licensee ceases the sale
2057     and furnishing of an alcoholic product during which time a patron of the bar establishment
2058     licensee may finish consuming:
2059          (A) a single drink containing spirituous liquor;
2060          (B) except as provided in Subsection (4)(c)(i)(C), a single serving of wine not
2061     exceeding five ounces;
2062          (C) a single serving not exceeding 16 ounces of hard cider that is furnished in a sealed
2063     container and contains no more than 5% of alcohol by volume;
2064          [(C)] (D) a single serving of heavy beer;
2065          [(D)] (E) a single serving of beer not exceeding 26 ounces; or
2066          [(E)] (F) a single serving of a flavored malt beverage.
2067          (ii) A bar establishment licensee is not required to remain open:
2068          (A) after all patrons have vacated the premises; or
2069          (B) during an emergency.
2070          (5) (a) A minor:
2071          (i) may not be admitted into, use, or be in the licensed premises of:

2072          (A) a dining club licensee unless accompanied by an individual who is 21 years of age
2073     or older; or
2074          (B) a bar licensee, except to the extent provided for under Section 32B-6-406.1;
2075          (ii) may only be admitted into, use, or be in the lounge or bar area of an equity
2076     licensee's or fraternal licensee's licensed premises:
2077          (A) when accompanied by an individual who is 21 years of age or older; and
2078          (B) momentarily while en route to another area of the licensee's premises; and
2079          (iii) may not remain or sit in the lounge or bar area of an equity licensee's or fraternal
2080     licensee's licensed premises.
2081          (b) Notwithstanding Section 32B-5-308, a bar establishment licensee may not employ a
2082     minor to:
2083          (i) work in a lounge or bar area of an equity licensee, fraternal licensee, or dining club
2084     licensee; or
2085          (ii) handle an alcoholic product.
2086          (c) Notwithstanding Section 32B-5-308, a minor may not be employed on the licensed
2087     premises of a bar licensee.
2088          (d) Nothing in this part or Section 32B-5-308 precludes a local authority from being
2089     more restrictive of a minor's admittance to, use of, or presence on the licensed premises of a bar
2090     establishment licensee.
2091          (6) A bar establishment licensee shall have food available at all times when an
2092     alcoholic product is sold, offered for sale, furnished, or consumed on the licensed premises.
2093          (7) (a) Subject to the other provisions of this Subsection (7), a patron may not have
2094     more than two alcoholic products of any kind at a time before the patron.
2095          (b) A patron may not have two spirituous liquor drinks before the bar establishment
2096     licensee patron if one of the spirituous liquor drinks consists only of the primary spirituous
2097     liquor for the other spirituous liquor drink.
2098          (c) An individual portion of wine is considered to be one alcoholic product under
2099     Subsection (7)(a).
2100          (8) A bar establishment licensee shall have available on the premises for a patron to
2101     review at the time that the patron requests it, a written alcoholic product price list or a menu
2102     containing the price of an alcoholic product sold, offered for sale, or furnished by the bar

2103     establishment licensee including:
2104          (a) a set-up charge;
2105          (b) a service charge; or
2106          (c) a chilling fee.
2107          (9) Subject to Section 32B-5-309, a bar establishment licensee may not temporarily
2108     rent or otherwise temporarily lease its premises to a person unless:
2109          (a) the person to whom the bar establishment licensee rents or leases the premises
2110     agrees in writing to comply with this title as if the person is the bar establishment licensee,
2111     except for a requirement related to making or maintaining a record; and
2112          (b) the bar establishment licensee takes reasonable steps to ensure that the person
2113     complies with this section as provided in Subsection (9)(a).
2114          (10) If a bar establishment licensee is an equity licensee or fraternal licensee, the bar
2115     establishment licensee shall comply with Section 32B-6-407.
2116          (11) If a bar establishment licensee is a dining club licensee or bar licensee, the bar
2117     establishment licensee shall comply with Section 32B-1-407.
2118          (12) (a) A bar establishment licensee shall own or lease premises suitable for the bar
2119     establishment licensee's activities.
2120          (b) A bar establishment licensee may not maintain licensed premises in a manner that
2121     barricades or conceals the bar establishment licensee's operation.
2122          Section 22. Section 32B-6-503 is amended to read:
2123          32B-6-503. Commission's power to issue airport lounge license.
2124          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
2125     an alcoholic product on its premises as an airport lounge licensee, the person shall first obtain
2126     an airport lounge license from the commission in accordance with this part.
2127          (2) [The] Subject to Subsection (3), the commission may issue an airport lounge
2128     license:
2129          (a) to establish airport lounge licensed premises beyond the security point at an
2130     international airport or a domestic airport; and
2131          (b) in the numbers the commission considers proper for the storage, sale, offer for sale,
2132     furnishing, and consumption of an alcoholic product on licensed premises operated as an
2133     airport lounge.

2134          (3) (a) The commission may not issue more than [13] 26 airport lounge licenses for an
2135     international airport at any time.
2136          (b) The commission may not issue a total number of domestic airport airport lounge
2137     licenses that at any time exceeds three.
2138          Section 23. Section 32B-6-603 is amended to read:
2139          32B-6-603. Commission's power to issue on-premise banquet license -- Contracts
2140     as host.
2141          (1) (a) Before a person may store, sell, offer for sale, furnish, or allow the consumption
2142     of an alcoholic product in connection with the person's banquet and room service activities at
2143     one of the following, the person shall first obtain an on-premise banquet license in accordance
2144     with this part:
2145          (i) a hotel;
2146          (ii) a resort facility;
2147          (iii) a sports center;
2148          (iv) a convention center;
2149          (v) a performing arts facility; [or]
2150          (vi) an arena[.]; or
2151          (vii) a restaurant venue.
2152          (b) This part does not prohibit an alcoholic product on the premises of a person listed
2153     in Subsection (1)(a) to the extent otherwise permitted by this title.
2154          (c) This section does not prohibit a person who applies for an on-premise banquet
2155     license to also apply for a package agency if otherwise qualified.
2156          (2) The commission may issue an on-premise banquet license to establish on-premise
2157     banquet licensees in the numbers the commission considers proper for the storage, sale, offer
2158     for sale, furnishing, and consumption of an alcoholic product at a banquet or as part of room
2159     service activities operated by an on-premise banquet licensee.
2160          (3) Subject to Section 32B-1-201, the commission [may not]:
2161          (a) may not issue a total number of restaurant venue on-premise banquet licenses that
2162     at any time exceeds Ŝ→ [
20] 25 ←Ŝ ; and
2163          (b) may not issue a total number of on-premise banquet licenses that at any time
2164     [exceed] exceeds the number determined by dividing the population of the state by 28,765.

2165          (4) Pursuant to a contract between the host of a banquet and an on-premise banquet
2166     licensee:
2167          (a) the host of the banquet may request an on-premise banquet licensee to provide an
2168     alcoholic product served at the banquet; and
2169          (b) an on-premise banquet licensee may provide an alcoholic product served at the
2170     banquet.
2171          (5) At a banquet, an on-premise banquet licensee may furnish an alcoholic product:
2172          (a) without charge to a patron at a banquet, except that the host of the banquet shall pay
2173     for an alcoholic product furnished at the banquet; or
2174          (b) with a charge to a patron at the banquet.
2175          (6) To be licensed as an on-premise banquet, a person shall maintain at least 50% of
2176     the person's total annual banquet gross receipts from the sale of food, which does not include:
2177          (a) mix for an alcoholic product; or
2178          (b) a charge in connection with the furnishing of an alcoholic product.
2179          Section 24. Section 32B-6-605 is amended to read:
2180          32B-6-605. Specific operational requirements for on-premise banquet license.
2181          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2182     Requirements, an on-premise banquet licensee and staff of the on-premise banquet licensee
2183     shall comply with this section.
2184          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2185     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2186          (i) an on-premise banquet licensee;
2187          (ii) individual staff of an on-premise banquet licensee; or
2188          (iii) both an on-premise banquet licensee and staff of the on-premise banquet licensee.
2189          (2) An on-premise banquet licensee shall comply with Subsections 32B-5-301(4) and
2190     (5) for the entire premises of the hotel, resort facility, sports center, convention center,
2191     performing arts facility, [or arena] arena, or restaurant venue that is the basis for the on-premise
2192     banquet license.
2193          (3) (a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee
2194     shall provide the department with advance notice of a scheduled banquet in accordance with
2195     rules made by the commission.

2196          (b) Any of the following may conduct a random inspection of a banquet:
2197          (i) an authorized representative of the commission or the department; or
2198          (ii) a law enforcement officer.
2199          (4) (a) An on-premise banquet licensee is not subject to Section 32B-5-302, but shall
2200     make and maintain the records the commission or department requires.
2201          (b) Section 32B-1-205 applies to a record required to be made or maintained in
2202     accordance with this Subsection (4).
2203          (5) (a) Except as otherwise provided in this title, an on-premise banquet licensee may
2204     sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption at the
2205     location of the banquet.
2206          (b) Except as provided in Subsection 32B-5-307(4), a host of a banquet, a patron, or a
2207     person other than the on-premise banquet licensee or staff of the on-premise banquet licensee,
2208     may not remove an alcoholic product from the premises of the banquet.
2209          (c) Notwithstanding Subsections 32B-5-307(3) and (5) and except as provided in
2210     Subsection 32B-5-307(4), a patron at a banquet may not bring an alcoholic product into or
2211     onto, or remove an alcoholic product from, the premises of a banquet.
2212          (6) (a) An on-premise banquet licensee may not leave an unsold alcoholic product at
2213     the banquet following the conclusion of the banquet.
2214          (b) At the conclusion of a banquet, an on-premise banquet licensee shall:
2215          (i) destroy an opened and unused alcoholic product that is not saleable, under
2216     conditions established by the department; and
2217          (ii) return to the on-premise banquet licensee's approved locked storage area any:
2218          (A) opened and unused alcoholic product that is saleable; and
2219          (B) unopened container of an alcoholic product.
2220          (c) Except as provided in Subsection (6)(b) with regard to an open or sealed container
2221     of an alcoholic product not sold or consumed at a banquet, an on-premise banquet licensee:
2222          (i) shall store the alcoholic product in the on-premise banquet licensee's approved
2223     locked storage area; and
2224          (ii) may use the alcoholic product at more than one banquet.
2225          (7) Notwithstanding Section 32B-5-308, an on-premise banquet licensee may not
2226     employ a minor to sell, furnish, or dispense an alcoholic product in connection with the

2227     on-premise banquet licensee's banquet and room service activities.
2228          (8) An on-premise banquet licensee:
2229          (a) may provide room service in portions described in Section 32B-5-304;
2230          (b) may not sell, offer for sale, or furnish an alcoholic product at a banquet or in
2231     connection with room service any day during a period that:
2232          (i) begins at 1 a.m.; and
2233          (ii) ends at 9:59 a.m.; and
2234          (c) notwithstanding Section 32B-5-305, may provide as room service one alcoholic
2235     product free of charge per guest reservation, per guest room, if the alcoholic product:
2236          (i) is not a spirituous liquor; and
2237          (ii) is in an unopened container not to exceed 750 milliliters.
2238          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
2239     more than two alcoholic products of any kind at a time before the patron.
2240          (b) A patron may not have more than one spirituous liquor drink at a time before the
2241     patron.
2242          (c) An individual portion of wine is considered to be one alcoholic product under
2243     Subsection (9)(a).
2244          (10) (a) An on-premise banquet licensee shall supervise and direct a person involved in
2245     the sale, offer for sale, or furnishing of an alcoholic product.
2246          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
2247     shall complete an alcohol training and education seminar.
2248          (11) A staff person of an on-premise banquet licensee shall remain at the banquet at all
2249     times when an alcoholic product is sold, offered for sale, furnished, or consumed at the
2250     banquet.
2251          (12) (a) Room service of an alcoholic product to a guest room or privately owned
2252     dwelling unit of a hotel or resort facility shall be provided in person by staff of an on-premise
2253     banquet licensee only to an adult guest in the guest room or privately owned dwelling unit.
2254          (b) An alcoholic product may not be left outside a guest room or privately owned
2255     dwelling unit for retrieval by a guest or resident.
2256          (13) An on-premise banquet licensee may not maintain a minibar.
2257          Section 25. Section 32B-6-905.1 is amended to read:

2258          32B-6-905.1. Specific operational requirements for a beer-only restaurant license
2259     -- On and after July 1, 2018, or July 1, 2022.
2260          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2261     Requirements, a beer-only restaurant licensee and staff of the beer-only restaurant licensee
2262     shall comply with this section.
2263          (b) Failure to comply with Subsection (1)(a) may result in disciplinary action in
2264     accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2265          (i) a beer-only restaurant licensee;
2266          (ii) individual staff of a beer-only restaurant licensee; or
2267          (iii) both a beer-only restaurant licensee and staff of the beer-only restaurant licensee.
2268          (2) (a) A beer-only restaurant licensee on the licensed premises may not sell, offer for
2269     sale, furnish, or allow consumption of liquor.
2270          (b) Liquor may not be on the premises of a beer-only restaurant licensee except for use:
2271          (i) as a flavoring on a dessert; or
2272          (ii) in the preparation of a flaming food dish, drink, or dessert.
2273          (3) (a) An individual who serves beer in a beer-only restaurant licensee's premises shall
2274     make a beverage tab for each table or group that orders or consumes beer on the premises.
2275          (b) A beverage tab described in this Subsection (3) shall state the type and amount of
2276     each beer ordered or consumed.
2277          (4) A beer-only restaurant licensee may not make an individual's willingness to serve
2278     beer a condition of employment as a server with a beer-only restaurant licensee.
2279          (5) A beer-only restaurant licensee may sell, offer for sale, or furnish beer at the
2280     licensed premises during the following time periods only:
2281          (a) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or
2282          (b) on a weekend or a state or federal legal holiday or for a private event, during the
2283     period that begins at 10:30 a.m. and ends at 12:59 a.m.
2284          (6) (a) A beer-only restaurant licensee may not furnish beer for on-premise
2285     consumption except after:
2286          (i) the patron to whom the beer-only restaurant licensee furnishes the beer is seated at:
2287          (A) a table that is located in a dining area or a dispensing area;
2288          (B) a counter that is located in a dining area or a dispensing area; or

2289          (C) a dispensing structure that is located in a dispensing area; and
2290          (ii) the beer-only restaurant licensee confirms that the patron intends to:
2291          (A) order food prepared, sold, and furnished at the licensed premises; and
2292          (B) except as provided in Subsection (6)(b), consume the food at the same location
2293     where the patron is seated and furnished the beer.
2294          (b) (i) While a patron waits for a seat at a table or counter in the dining area of a
2295     beer-only restaurant licensee, the beer-only restaurant licensee may sell, offer for sale, or
2296     furnish to the patron one portion of beer as described in Section 32B-5-304 if:
2297          (A) the patron is in a dispensing area and seated at a table, counter, or dispensing
2298     structure; and
2299          (B) the beer-only restaurant licensee first confirms that after the patron is seated in the
2300     dining area, the patron intends to order food prepared, sold, and furnished at the licensed
2301     premises.
2302          [(ii) If] (ii) (A) Subject to Subsection (6)(b)(ii)(B), if the patron does not finish the
2303     patron's beer before moving to a seat in the dining area, [an employee of the beer-only
2304     restaurant licensee who is qualified to sell and serve an alcoholic product under Section
2305     32B-5-306 shall] the patron may transport any unfinished portion of the patron's beer to the
2306     patron's seat in the dining area.
2307          (B) An employee of the beer-only restaurant licensee shall escort a patron who
2308     transports an unfinished portion of the patron's beer to the patron's seat in the dining area.
2309          (c) Notwithstanding Section 32B-5-307, a beer-only restaurant licensee may not
2310     furnish beer for off-premise consumption except after the patron consumes on the licensed
2311     premises food prepared, sold, and furnished at the licensed premises.
2312          (d) A beer-only restaurant licensee shall maintain on the licensed premises adequate
2313     culinary facilities for food preparation and dining accommodations.
2314          (7) A patron may consume a beer on the beer-only licensee's licensed premises only at:
2315          (a) a table that is located in a dining area or a dispensing area;
2316          (b) a counter that is located in a dining area or a dispensing area; or
2317          (c) a dispensing structure located in a dispensing area.
2318          (8) A patron may not have more than two beers at a time before the patron.
2319          (9) In accordance with the provisions of this section, an individual who is at least 21

2320     years old may consume food and beverages in a dispensing area.
2321          (10) (a) Except as provided in Subsection (10)(b), a minor may not sit, remain, or
2322     consume food or beverages in a dispensing area.
2323          (b) (i) A minor may be in a dispensing area if the minor is:
2324          (A) at least 16 years old and working as an employee of the beer-only restaurant
2325     licensee; or
2326          (B) performing maintenance and cleaning services as an employee of the beer-only
2327     restaurant licensee when the beer-only restaurant licensee is not open for business.
2328          (ii) If there is no alternative route available, a minor may momentarily pass through a
2329     dispensing area without remaining or sitting in the dispensing area en route to an area of the
2330     beer-only restaurant licensee's premises in which the minor is permitted to be.
2331          (11) A beer-only restaurant licensee may dispense a beer only if:
2332          (a) the beer is dispensed from:
2333          (i) a dispensing structure that is located in a dispensing area;
2334          (ii) an area that is:
2335          (A) separated from an area for the consumption of food by a patron by a solid,
2336     translucent, permanent structural barrier such that the facilities for the dispensing of an
2337     alcoholic product are not readily visible to a patron and not accessible by a patron; and
2338          (B) apart from an area used for dining, for staging, or as a waiting area; or
2339          (iii) the premises of a bar licensee that is:
2340          (A) owned by the same person or persons as the beer-only restaurant licensee; and
2341          (B) located immediately adjacent to the premises of the beer-only restaurant licensee;
2342     and
2343          (b) any instrument or equipment used to dispense the beer is located in an area
2344     described in Subsection (11)(a).
2345          (12) (a) A beer-only restaurant licensee may have more than one dispensing area in the
2346     licensed premises.
2347          (b) Each dispensing area in a licensed premises may satisfy the requirements for a
2348     dispensing area under Subsection 32B-6-902(1)(b)(i)(A), (B), or (C), regardless of how any
2349     other dispensing area in the licensed premises satisfies the requirements for a dispensing area.
2350          (13) A beer-only restaurant licensee may not transfer, dispense, or serve beer on or

2351     from a movable cart.
2352          (14) (a) In addition to the requirements described in Section 32B-5-302, a beer-only
2353     restaurant licensee shall maintain each of the following records for at least three years:
2354          (i) a record required by Section 32B-5-302; and
2355          (ii) a record that the commission requires a beer-only restaurant licensee to use or
2356     maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2357     Rulemaking Act.
2358          (b) The department shall audit the records of a beer-only restaurant licensee at least
2359     once annually.
2360          Section 26. Section 32B-6-1005 is amended to read:
2361          32B-6-1005. Specific operational requirements for hospitality amenity license.
2362          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2363     Requirements, a hospitality amenity licensee and staff of the hospitality amenity licensee shall
2364     comply with this section.
2365          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2366     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2367          (i) the hospitality amenity licensee;
2368          (ii) individual staff of the hospitality amenity licensee; or
2369          (iii) both the hospitality amenity licensee and staff of the hospitality amenity licensee.
2370          (2) (a) A hospitality amenity licensee may sell, offer for sale, or furnish an alcoholic
2371     product:
2372          (i) to a hospitality guest; and
2373          (ii) for consumption in or on the hospitality amenity licensee's licensed premises.
2374          (b) (i) A hospitality amenity licensee may sell, offer for sale, or furnish an alcoholic
2375     product that is not spirituous liquor in or on:
2376          (A) licensed premises physically separated from an area to which a hospitality guest or
2377     the public has access by a permanent or temporary structure or barrier; or
2378          (B) licensed premises described in Subsection (2)(b)(ii).
2379          (ii) A hospitality amenity licensee may sell, offer for sale, or furnish spirituous liquor
2380     in or on licensed premises that:
2381          (A) allows access only through the use of a key or code; and

2382          (B) fills the entirety of a physically and permanently enclosed area within the hotel or
2383     resort.
2384          (c) Spirituous liquor may not be in or on the licensed premises described in Subsection
2385     (2)(b)(i)(A) of a hospitality amenity licensee, except for use:
2386          (i) as a flavoring on a dessert; and
2387          (ii) in the preparation of a flaming food dish or dessert.
2388          (d) A hospitality amenity licensee may not allow self-service of an alcoholic product in
2389     or on the hospitality amenity licensee's licensed premises.
2390          (3) (a) Subject to Subsections (3)(b) and (c), a hospitality guest may not have more
2391     than two alcoholic products of any kind at a time before the hospitality guest.
2392          (b) A hospitality guest may not have more than one spirituous liquor drink at a time
2393     before the hospitality guest.
2394          (c) An individual portion of wine is considered to be one alcoholic product under
2395     Subsection (3)(a).
2396          (4) A hospitality amenity licensee shall make food available at all times that the
2397     licensee sells, offers for sale, furnishes, or allows the consumption of an alcoholic product on
2398     the licensed premises.
2399          (5) (a) A hospitality amenity licensee may not sell, offer for sale, or furnish an
2400     alcoholic product any day during a period that:
2401          (i) begins at 1:00 a.m.; and
2402          (ii) ends at 9:59 a.m.
2403          (b) A hospitality amenity licensee shall remain open for one hour after the licensee
2404     ceases to sell and furnish an alcoholic product, during which time a hospitality guest in or on
2405     the hospitality amenity licensed premises may finish consuming:
2406          (i) a single drink containing spirituous liquor;
2407          (ii) except as provided in Subsection (5)(b)(iii), a single serving of wine not exceeding
2408     five ounces;
2409          (iii) a single serving not exceeding 16 ounces of hard cider that is furnished in a sealed
2410     container and contains no more than 5% of alcohol by volume;
2411          [(iii)] (iv) a single serving of heavy beer;
2412          [(iv)] (v) a single serving of beer not exceeding 26 ounces; or

2413          [(v)] (vi) a single serving of a flavored malt beverage.
2414          (c) A hospitality amenity licensee is not required to remain open:
2415          (i) after all individuals have vacated the licensee's licensed premises; or
2416          (ii) during an emergency.
2417          (6) (a) Notwithstanding Section 32B-5-305, a hospitality amenity licensee may provide
2418     a hospitality guest up to two single servings of an alcoholic product free of charge or at a
2419     reduced rate, if:
2420          (i) the alcoholic product is not a spirituous liquor; and
2421          (ii) the hospitality amenity licensee offers the alcohol product:
2422          (A) to all hospitality guests;
2423          (B) during a specific time; and
2424          (C) on the hospitality amenity licensee's licensed premises.
2425          (b) Before a hospitality amenity licensee provides an alcoholic product free of charge
2426     or at a reduced rate as described in Subsection (6)(a), the licensee shall provide the department
2427     with advance notice of the event, in accordance with commission rules that permit a licensee to
2428     provide a single notice for a reoccurring event or multiple events.
2429          (7) A hospitality amenity licensee may permit a hospitality guest to purchase an
2430     alcoholic product through a charge to the hospitality guest's lodging accommodations.
2431          (8) (a) Notwithstanding Section 32B-5-307, a hospitality guest, or a person other than
2432     the hospitality amenity licensee or staff of the hospitality amenity licensee, may not remove an
2433     alcoholic product from the hospitality amenity licensee's licensed premises.
2434          (b) Notwithstanding Subsection 32B-5-307(3), a hospitality guest may not bring an
2435     alcoholic product within the hospitality amenity licensee's licensed premises.
2436          (9) A hospitality amenity licensee shall display at each entrance to the licensee's
2437     licensed premises a conspicuous sign that:
2438          (a) measures at least 8-1/2 inches long and 11 inches wide; and
2439          (b) clearly states that entry is limited to individuals who are hospitality guests, as
2440     defined in this title.
2441          (10) A hospitality amenity licensee may not permit a minor to enter the licensee's
2442     licensed premises at any time during which an alcoholic product is sold, offered for sale,
2443     furnished, or consumed, unless the minor is accompanied at all times on the licensed premises

2444     by a hospitality guest.
2445          (11) A staff person of a hospitality amenity licensee shall remain on the licensed
2446     premises at all times when an alcoholic product is sold, offered for sale, furnished, or
2447     consumed in or on the licensed premises.
2448          (12) A hospitality amenity licensee may transfer an alcoholic product to or from
2449     another licensee within the boundary of the hotel or within the boundary of the resort building,
2450     if:
2451          (a) the hospitality amenity licensee and each licensee involved in the transfer tracks the
2452     transfer of the alcoholic product; and
2453          (b) the alcoholic product is in a sealed, unopened container.
2454          (13) (a) In addition to the requirements described in Section 32B-5-302, a hospitality
2455     amenity licensee shall maintain each of the following records for at least three years:
2456          (i) a record required under Section 32B-5-302; and
2457          (ii) a record that the commission requires a hospitality amenity licensee to use or
2458     maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2459     Rulemaking Act.
2460          (b) The department shall audit the records of a hospitality amenity licensee at least
2461     once annually.
2462          Section 27. Section 32B-7-409 is amended to read:
2463          32B-7-409. Multiple licenses on same premises.
2464          (1) Except as provided in Subsection (2), the commission may not issue and one or
2465     more licensees may not hold an off-premise beer retailer state license for the same licensed
2466     premises or adjacent licensed premises as a retail licensee, unless the licensed premises:
2467          (a) are separated by a permanent, opaque, floor-to-ceiling wall;
2468          (b) each have a separate entrance to the licensed premises; and
2469          (c) each have separate restroom facilities on the licensed premises.
2470          (2) (a) The commission may issue and an off-premise beer retailer state licensee may
2471     hold more than one type of license for the same licensed premises or adjacent licensed
2472     premises, if:
2473          [(a)] (i) a manufacturing licensee is located on or adjacent to the licensed premises; and
2474          [(b)] (ii) a package agency is located on or adjacent to the licensed premises.

2475          (b) Notwithstanding Subsection (1), the commission may issue an off-premise beer
2476     retailer state license to a hotel or resort.
2477          Section 28. Section 32B-8-401 is amended to read:
2478          32B-8-401. Specific operational requirements for resort license.
2479          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2480     Requirements, a resort licensee, staff of the resort licensee, and a sublicensee or a person
2481     otherwise operating under a sublicense shall comply with this section.
2482          (b) Subject to Section 32B-8-502, failure to comply as provided in Subsection (1)(a)
2483     may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
2484     Enforcement Act, against:
2485          (i) the resort licensee;
2486          (ii) individual staff of the resort licensee;
2487          (iii) a sublicensee or person otherwise operating under a sublicense of the resort
2488     licensee;
2489          (iv) individual staff of a sublicensee or person otherwise operating under a sublicense
2490     of the resort licensee; or
2491          (v) any combination of the persons listed in Subsections (1)(b)(i) through (iv).
2492          (2) (a) A resort licensee may not sell, offer for sale, or furnish an alcoholic product
2493     except:
2494          (i) on sublicensed premises;
2495          (ii) pursuant to a permit issued under this title; [or]
2496          (iii) under a package agency agreement with the department, subject to Chapter 2, Part
2497     6, Package Agency[.]; or
2498          (iv) through room service.
2499          (b) A resort licensee who sells, offers for sale, or furnishes an alcoholic product as
2500     provided in Subsection (2)(a), shall sell, offer for sale, or furnish the alcoholic product:
2501          (i) if on a sublicense premises, in accordance with the operational requirements
2502     described in Section 32B-8d-104;
2503          (ii) if under a permit issued under this title, in accordance with the operational
2504     requirements under the provisions applicable to the permit; [and]
2505          (iii) if as a package agency, in accordance with the contract with the department and

2506     Chapter 2, Part 6, Package Agency[.]; and
2507          (iv) if through room service, in accordance with Subsection (5).
2508          (3) A resort licensee shall operate in a manner so that at least 70% of the annual
2509     aggregate of the gross receipts related to the sale of food or beverages for the resort license and
2510     each of the resort licensee's sublicenses is from the sale of food, not including:
2511          (a) mix for an alcoholic product; and
2512          (b) a charge in connection with the service of an alcoholic product.
2513          (4) (a) A resort licensee shall supervise and direct a person involved in the sale, offer
2514     for sale, or furnishing of an alcoholic product under a resort license.
2515          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
2516     under a resort license shall complete the alcohol training and education seminar.
2517          (5) (a) Room service of an alcoholic product to a lodging accommodation of a resort
2518     licensee shall be provided in person by staff of the resort licensee only to an adult occupant in
2519     the lodging accommodation.
2520          (b) An alcoholic product may not be left outside a lodging accommodation for retrieval
2521     by an occupant.
2522          Section 29. Section 32B-8b-102 is amended to read:
2523          32B-8b-102. Definitions.
2524          As used in this chapter:
2525          (1) "Boundary of a hotel" means the physical boundary of one or more contiguous
2526     parcels of real property owned or managed by the same person and on which a hotel is located.
2527          (2) "Hotel" means one or more buildings that:
2528          (a) comprise a hotel, as defined by the commission;
2529          (b) are owned or managed by the same person or by a person who has a majority
2530     interest in or can direct or exercise control over the management or policy of the person who
2531     owns or manages any other building under the hotel license within the boundary of the hotel;
2532          (c) primarily operate to provide lodging accommodations;
2533          [(d) provide room service within the boundary of the hotel meeting the requirements of
2534     this title;]
2535          [(e)] (d) have on-premise banquet space and provide on-premise banquet service within
2536     the boundary of the hotel meeting the requirements of this title;

2537          [(f)] (e) have a restaurant or bar establishment within the boundary of the hotel meeting
2538     the requirements of this title; and
2539          [(g)] (f) have at least 40 rooms as temporary sleeping accommodations for
2540     compensation.
2541          Section 30. Section 32B-8b-301 is amended to read:
2542          32B-8b-301. Specific operational requirements for hotel license.
2543          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2544     Requirements, a hotel licensee, staff of the hotel licensee, and a sublicensee or person
2545     otherwise operating under a sublicense shall comply with this section.
2546          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2547     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2548          (i) the hotel licensee;
2549          (ii) individual staff of the hotel licensee;
2550          (iii) a sublicensee or person otherwise operating under a sublicense of the hotel
2551     licensee;
2552          (iv) individual staff of a sublicensee or person otherwise operating under a sublicense
2553     of the hotel licensee; or
2554          (v) any combination of the persons listed in this Subsection (1)(b).
2555          (2) (a) A hotel licensee may not sell, offer for sale, or furnish an alcoholic product
2556     except:
2557          (i) on sublicensed premises;
2558          (ii) pursuant to a permit issued under this title; [or]
2559          (iii) under a package agency agreement with the department, subject to Chapter 2, Part
2560     6, Package Agency[.]; or
2561          (iv) through room service.
2562          (b) A hotel licensee who sells, offers for sale, or furnishes an alcoholic product as
2563     provided in Subsection (2)(a) shall sell, offer for sale, or furnish the alcoholic product:
2564          (i) if on sublicensed premises, in accordance with the operational requirements
2565     described in Section 32B-8d-104;
2566          (ii) if under a permit issued under this title, in accordance with the operational
2567     requirements under the provisions applicable to the permit; [and]

2568          (iii) if as a package agency, in accordance with the contract with the department and
2569     Chapter 2, Part 6, Package Agency[.]; and
2570          (iv) if through room service, in accordance with Subsection (4).
2571          (c) Notwithstanding the other provisions of this Subsection (2) and except as provided
2572     in Section 32B-8d-104, a hotel licensee may not permit a patron to carry an alcoholic product
2573     off the premises of a sublicense in violation of Section 32B-5-307 or off an area designated
2574     under a permit.
2575          (3) A hotel licensee shall supervise and direct a person involved in the sale, offer for
2576     sale, or furnishing of an alcoholic product under a hotel license.
2577          (4) (a) Room service of an alcoholic product to a lodging accommodation of a hotel
2578     licensee shall be provided in person by staff of the hotel licensee only to an adult occupant in
2579     the lodging accommodation.
2580          (b) An alcoholic product may not be left outside a lodging accommodation for retrieval
2581     by an occupant.
2582          (5) A hotel licensee shall operate in a manner so that at least 70% of the annual
2583     aggregate of the gross receipts related to the sale of food or beverages for the hotel license and
2584     each of the hotel license's sublicenses is from the sale of food, not including:
2585          (a) mix for an alcoholic product; and
2586          (b) a charge in connection with the service of an alcoholic product.
2587          Section 31. Section 32B-8d-103 is amended to read:
2588          32B-8d-103. Commission's power to issue a sublicense.
2589          (1) Before a person as a sublicensee may store, sell, offer for sale, furnish, or allow the
2590     consumption of an alcoholic product on sublicensed premises, the person shall first obtain a
2591     sublicense from the commission in accordance with:
2592          (a) this chapter;
2593          (b) Chapter 8, Resort License Act;
2594          (c) Chapter 8b, Hotel License Act; and
2595          (d) Chapter 8c, Arena License Act.
2596          (2) (a) The commission may issue to a person a sublicense to allow the storage, sale,
2597     offering for sale, furnishing, or consumption of an alcoholic product on the premises of the
2598     sublicense, if the person is:

2599          (i) a principal licensee; or
2600          (ii) a person seeking a principal license, contingent on the issuance of the principal
2601     license.
2602          (b) The commission may not:
2603          (i) issue a sublicense that is separate from a principal license; or
2604          (ii) issue a single sublicense that covers more than one outlet in or on the boundaries of
2605     the principal licensee.
2606          (3) [(a) Except as provided in Subsection (3)(b), when] When determining the total
2607     number of licenses the commission has issued for each type of retail license, the commission
2608     may not include a sublicense as one of the retail licenses issued under the provisions applicable
2609     to that sublicense.
2610          [(b) If a resort license includes a sublicense that before the issuance of the resort
2611     license was a retail license that was not a bar establishment license, the commission shall
2612     include the sublicense as a license in calculating the total number of licenses issued under the
2613     provisions applicable to the sublicense.]
2614          (4) If a principal licensee seeks to add a sublicense after the commission issues the
2615     person's principal license, the principal licensee shall file with the department:
2616          (a) a nonrefundable $300 application fee;
2617          (b) an initial license fee of $2,250, which the commission shall refund if the
2618     commission does not issue the proposed sublicense;
2619          (c) written consent of the local authority;
2620          (d) a copy of:
2621          (i) the principal licensee's current business; and
2622          (ii) the proposed sublicensee's current business license, if the relevant political
2623     subdivision determines that the proposed sublicensee's business license is separate from the
2624     principal licensee's business license;
2625          (e) evidence that the proposed sublicensed premises is entirely within the boundary of
2626     the principal license;
2627          (f) a description, floor plan, and boundary map of the proposed sublicensed premises
2628     designating:
2629          (i) each location at which the principal licensee proposes that an alcoholic product be

2630     stored; and
2631          (ii) each location from which the principal licensee proposes that an alcoholic product
2632     be sold, furnished, or consumed;
2633          (g) evidence that the principal licensee carries:
2634          (i) public liability insurance in an amount and form satisfactory to the department; and
2635          (ii) dramshop insurance coverage in the amount required by Section 32B-5-201 that
2636     covers the proposed sublicense;
2637          (h) a signed consent form stating that the principal licensee will permit any authorized
2638     representative of the commission or department, or any law enforcement officer, to have an
2639     unrestricted right to enter the proposed sublicensed premises;
2640          (i) if the principal licensee is an entity, proper verification evidencing that a person
2641     who signs the application is authorized to sign on behalf of the entity; and
2642          (j) any other information the commission or department may require.
2643          Section 32. Section 32B-8d-205 is amended to read:
2644          32B-8d-205. Specific operational requirements for a spa sublicense.
2645          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
2646     Requirements, a resort licensee, staff of the resort licensee, a hotel licensee, and staff of the
2647     hotel licensee, shall comply with this section.
2648          (b) A spa sublicensee or a person otherwise operating under a spa sublicense and staff
2649     of a spa sublicensee or a person otherwise operating under a spa sublicense shall comply with:
2650          (i) Chapter 5, Part 3, Retail Licensee Operational Requirements as if the spa
2651     sublicensee is a retail licensee, unless a provision conflicts with this chapter; and
2652          (ii) this chapter.
2653          (c) Subject to Section 32B-8-502, failure to comply as provided in Subsection (1)(a)
2654     may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
2655     Enforcement Act, against:
2656          (i) a resort licensee;
2657          (ii) staff of a resort licensee;
2658          (iii) a hotel licensee;
2659          (iv) staff of a hotel licensee;
2660          (v) a spa sublicensee or person otherwise operating under a spa sublicense;

2661          (vi) individual staff of a spa sublicensee or person otherwise operating under a spa
2662     sublicense; or
2663          (vii) any combination of the persons listed in Subsections (1)(c)(i) through (vi).
2664          (2) (a) For purposes of the spa sublicense, the corresponding resort licensee or hotel
2665     licensee shall ensure that a record is maintained or used for the spa sublicense:
2666          (i) as the department requires; and
2667          (ii) for a minimum period of three years.
2668          (b) A spa sublicensee record is subject to inspection by an authorized representative of
2669     the commission and the department.
2670          (c) A resort licensee or a hotel licensee shall allow the department, through a
2671     compliance officer of the department, to audit the records for a spa sublicense at the times the
2672     department considers advisable.
2673          (d) The department shall audit the records for a spa sublicense at least once annually.
2674          (e) Section 32B-1-205 applies to a record required to be made, maintained, or used in
2675     accordance with this Subsection (2).
2676          (3) (a) A spa sublicensee or person operating under a spa sublicense may not sell, offer
2677     for sale, or furnish liquor at a spa during a period that:
2678          (i) begins at 1 a.m.; and
2679          (ii) ends at 9:59 a.m.
2680          (b) A spa sublicensee or person operating under a spa sublicense may sell, offer for
2681     sale, or furnish beer during the hours specified in Chapter 6, Part 7, On-Premise Beer Retailer
2682     License, for an on-premise beer retailer.
2683          (c) (i) Notwithstanding Subsections (3)(a) and (b), a spa shall remain open for one hour
2684     after the spa ceases the sale and furnishing of an alcoholic product during which time a person
2685     at the spa may finish consuming:
2686          (A) a single drink containing spirituous liquor;
2687          (B) except as provided in Subsection (3)(c)(i)(C), a single serving of wine not
2688     exceeding five ounces;
2689          (C) a single serving not exceeding 16 ounces of hard cider that is furnished in a sealed
2690     container and contains no more than 5% of alcohol by volume;
2691          [(C)] (D) a single serving of heavy beer;

2692          [(D)] (E) a single serving of beer not exceeding 26 ounces; or
2693          [(E)] (F) a single serving of a flavored malt beverage.
2694          (ii) A spa is not required to remain open:
2695          (A) after all individuals have vacated the spa sublicensee's sublicensed premises; or
2696          (B) during an emergency.
2697          (4) (a) A minor may not be admitted into, use, or be on the sublicensed premises of a
2698     spa sublicense unless accompanied by an individual 21 years old or older.
2699          (b) A minor permitted under Subsection (4)(a) to be admitted into, use, or be on the
2700     sublicensed premises of a spa sublicense:
2701          (i) may only be admitted into or be on a lounge or bar area of the spa sublicensee's
2702     sublicensed premises momentarily while en route to another area of the spa; and
2703          (ii) may not remain or sit in the lounge or bar area of the spa sublicensee's sublicensed
2704     premises.
2705          (5) A spa sublicensee shall have food available at all times when an alcoholic product
2706     is sold, offered for sale, furnished, or consumed on the spa sublicensee's sublicensed premises.
2707          (6) (a) Subject to the other provisions of this Subsection (6), a patron may not have
2708     more than two alcoholic products of any kind at a time before the patron.
2709          (b) A spa patron may not have two spirituous liquor drinks before the spa patron if one
2710     of the spirituous liquor drinks consists only of the primary spirituous liquor for the other
2711     spirituous liquor drink.
2712          (c) An individual portion of wine is considered to be one alcoholic product under this
2713     Subsection (6).
2714          (7) (a) An alcoholic product may only be consumed at a table or counter.
2715          (b) An alcoholic product may not be served to or consumed by a patron at a dispensing
2716     structure.
2717          (8) (a) A spa sublicensee or person operating under a spa sublicense shall have
2718     available on the spa sublicense's sublicensed premises for a patron to review at the time that the
2719     patron requests it, a written alcoholic product price list or a menu containing the price of an
2720     alcoholic product sold or furnished by the spa sublicensee including:
2721          (i) a set-up charge;
2722          (ii) a service charge; or

2723          (iii) a chilling fee.
2724          (b) A charge or fee made in connection with the sale, service, or consumption of liquor
2725     may be stated in food or alcoholic product menus including:
2726          (i) a set-up charge;
2727          (ii) a service charge; or
2728          (iii) a chilling fee.
2729          (9) (a) A resort licensee or hotel licensee shall own or lease premises suitable for the
2730     spa sublicense's activities.
2731          (b) A resort licensee or hotel licensee may not maintain premises in a manner that
2732     barricades or conceals the spa sublicense's operation.
2733          (10) Subject to the other provisions of this section, a spa sublicensee or person
2734     operating under a spa sublicense may not sell an alcoholic product to or allow an individual to
2735     be admitted to or use the spa sublicensee's sublicensed premises other than:
2736          (a) a resident; or
2737          (b) a customer.
2738          Section 33. Section 32B-9-202 is amended to read:
2739          32B-9-202. Duties before issuing event permit.
2740          (1) (a) Before the director may issue an event permit, the department shall conduct an
2741     investigation and may hold public hearings to gather information and make recommendations
2742     to the director as to whether the director should issue an event permit.
2743          (b) The department shall [forward] provide the information and recommendations
2744     described in Subsection (1)(a) to the director [and the Compliance, Licensing, and Enforcement
2745     Subcommittee] to aid in the director's determination.
2746          (2) Before issuing an event permit, the director shall:
2747          (a) determine that the person filed a complete application and is in compliance with:
2748          (i) Section 32B-9-201; and
2749          (ii) the relevant part under this chapter for the type of event permit for which the
2750     person is applying;
2751          (b) determine that the person is not disqualified under Section 32B-1-304;
2752          (c) consider the purpose of the organization or its local lodge, chapter, or other local
2753     unit;

2754          (d) consider the times, dates, location, estimated attendance, nature, and purpose of the
2755     event;
2756          (e) to minimize the risk of minors being sold or furnished alcohol or adults being
2757     overserved alcohol at the event, determine that adequate and appropriate control measures and
2758     adequate and appropriate enforcement measures are in place at the event to assure that minors
2759     will not be sold or furnished alcohol and that adults will not be overserved, except that
2760     adequate and appropriate control and enforcement measures may be different for small, large,
2761     indoor, or outdoor events;
2762          (f) determine that the event permit is not being sought by the person as a means to
2763     circumvent other applicable requirements of this title, notwithstanding that the applicant may
2764     hold one or more licenses issued under this title;
2765          (g) consider, for the period of three years before the date of the event, the violation
2766     history of:
2767          (i) the applicant; and
2768          (ii) the venue where the event will be held;
2769          (h) provide the information and recommendations described in Subsection (1) to, and
2770     obtain the approval of, the Compliance, Licensing, and Enforcement Subcommittee [before
2771     issuing an event permit];
2772          (i) notify each commissioner [at least three business days] before the director issues the
2773     event permit in accordance with Subsection (3); and
2774          (j) consider any other factor the director considers necessary.
2775          (3) (a) [The] Except as provided in Subsections (3)(d) and (e), the director shall
2776     [inform] notify each commissioner of the director's preliminary decision to issue or deny the
2777     issuance of an event permit three business days before the day on which the decision is to be
2778     final.
2779          (b) The preliminary decision becomes a final decision of the director unless:
2780          (i) [unless] within three business days [of receipt of] after the day on which the notice
2781     is received at least three of the commissioners request a meeting to discuss whether the event
2782     permit should be issued; or
2783          (ii) the director modifies or revokes the preliminary decision to issue or deny issuance
2784     of the event permit.

2785          (c) If three or more of the commissioners request a meeting[,]:
2786          (i) the applicant for the event permit shall be notified; and
2787          (ii) the commission shall:
2788          [(i)] (A) [shall] hold a meeting on the application for an event permit no later than the
2789     next regularly scheduled meeting of the commission; and
2790          [(ii)] (B) [shall] issue the event permit if the applicant meets the requirements of this
2791     chapter or [shall] deny issuance of the event permit if the applicant fails to meet the
2792     requirements of this chapter.
2793          (d) The commission may waive the three business day notice period described in
2794     Subsection (3)(a) on behalf of a commissioner.
2795          [(d)] (e) (i) [Notwithstanding the other provisions of this Subsection (3), the] The
2796     director may at any time refer an application for an event permit directly to the commission for
2797     a determination as to whether an event permit should be issued or denied.
2798          [(e)] (ii) For purposes of this title, an event permit issued by the commission is to be
2799     treated the same as an event permit issued by the director.
2800          (f) If the commission finds that an event permit was improperly issued or that the
2801     permittee has violated this chapter, the commission may take any action permitted under this
2802     title.
2803          (4) Once the director issues an event permit, the department shall send a copy of the
2804     approved application and the event permit by written or electronic means to the state and local
2805     law enforcement authorities at least three days before the event.
2806          (5) The director shall provide the commission a monthly report of the actions taken by
2807     the director under this part.
2808          (6) If authorized by the director, the deputy director may act on behalf of the director
2809     for purposes of issuing an event permit under this chapter.
2810          Section 34. Section 32B-11-209 is amended to read:
2811          32B-11-209. Notifying department of change in ownership.
2812          The commission may suspend [or], revoke, or deem forfeited a manufacturing license if
2813     the manufacturing licensee does not immediately notify the department of a change in:
2814          (1) ownership of the manufacturing licensee;
2815          (2) for a corporate owner, the:

2816          (a) corporate officers or directors; or
2817          (b) shareholders holding at least 20% of the total issued and outstanding stock of the
2818     corporation; or
2819          (3) for a limited liability company:
2820          (a) managers; or
2821          (b) members owning at least 20% of the limited liability company.
2822          Section 35. Section 32B-11-210 is amended to read:
2823          32B-11-210. Tasting provided by manufacturing licensee.
2824          (1) As used in this section:
2825          (a) "Parcel" means the same identifiable contiguous unit of property that is treated as
2826     separate for valuation or zoning purposes and includes an improvement on that unit of
2827     property.
2828          (b) "Taste" means an amount of an alcoholic product provided by a manufacturing
2829     licensee for consumption under this section.
2830          (2) A manufacturing licensee may provide for a tasting in accordance with this section.
2831          (3) Before conducting a tasting, the manufacturing licensee shall provide the
2832     department:
2833          (a) evidence of proximity to any community location, with proximity requirements
2834     being governed by Section 32B-1-202 as if the manufacturing licensee were a retail licensee;
2835          (b) a floor plan, and boundary map where applicable, of the premises of the
2836     manufacturing licensee, including any:
2837          (i) consumption area; and
2838          (ii) area where the person proposes to store, sell, offer for sale, or furnish an alcoholic
2839     product to be tasted;
2840          (c) evidence that the manufacturing licensee is carrying public liability insurance in an
2841     amount and form satisfactory to the department;
2842          (d) evidence that the manufacturing licensee is carrying dramshop insurance coverage
2843     in an amount and form satisfactory to the department; and
2844          (e) any other information the commission or department may require.
2845          (4) A manufacturing licensee may not sell, offer for sale, or furnish a taste on any day
2846     during the period that:

2847          (a) begins at midnight; and
2848          (b) ends at 10:59 a.m.
2849          (5) A person who serves a taste on behalf of the manufacturing licensee shall complete
2850     an alcohol training and education seminar as if the person were employed by a retail licensee.
2851          (6) (a) A manufacturing licensee shall establish a distinct area for consumption of a
2852     taste outside the view of minors on the licensed premises and in which minors are not allowed
2853     during the time period when tasting occurs.
2854          (b) The distinct area for consumption for a taste established under this Subsection (6)
2855     shall be in the same building as where the manufacturing licensee produces alcoholic product,
2856     in a building on the same parcel as the building where the manufacturing licensee produces
2857     alcoholic product, or in a patio or similar area immediately adjacent to a building described in
2858     this Subsection (6)(b).
2859          (7) (a) A manufacturing licensee shall have substantial food available that is served on
2860     the licensed premises to an individual consuming a taste.
2861          (b) The commission may define what constitutes "substantial food" by rule made in
2862     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, except that the
2863     rule may not require culinary facilities for food preparation that are equivalent to a restaurant or
2864     dining club.
2865          (8) A manufacturing licensee shall charge an individual for a taste and may not sell,
2866     offer for sale, or furnish a taste at less than the cost of the taste to a retail licensee.
2867          (9) (a) A manufacturing licensee may provide a taste in more than one container except
2868     that the aggregate total of the taste in all of the containers may not exceed:
2869          (i) [5 ounces of wine] for a winery manufacturing licensee[;]:
2870          (A) except as provided in Subsection (9)(a)(i)(B), five ounces of wine; or
2871          (B) 16 ounces of hard cider that is furnished in a sealed container and contains no more
2872     than 5% of alcohol by volume;
2873          (ii) for a distillery manufacturing licensee, 2.5 ounces of spirituous liquor [for a
2874     distillery manufacturing licensee]; or
2875          (iii) for a brewery manufacturing licensee, 16 ounces of beer, heavy beer, or flavored
2876     malt beverages [for a brewery manufacturing licensee].
2877          (b) A manufacturing licensee may not allow an individual to participate in more than

2878     one tasting within a calendar day.
2879          (10) A manufacturing licensee may provide a taste of alcoholic product that is:
2880          (a) manufactured by the manufacturing licensee; and
2881          (b) purchased by the manufacturing licensee from:
2882          (i) a state store or package agency; or
2883          (ii) for beer, the off-premise retail licensee described in Subsection 32B-11-503(4)(c).
2884          (11) (a) A manufacturing licensee shall display in a prominent place in the location
2885     where tastes are consumed a sign in large letters that consists of text in the following order:
2886          (i) a header that reads: "WARNING";
2887          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
2888     can cause birth defects and permanent brain damage for the child.";
2889          (iii) a statement in smaller font that reads: "Call the Utah Department of Health and
2890     Human Services at [insert most current toll-free number] with questions or for more
2891     information.";
2892          (iv) a header that reads: "WARNING"; and
2893          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
2894     serious crime that is prosecuted aggressively in Utah."
2895          (b) (i) The text described in Subsections (11)(a)(i) through (iii) shall be in a different
2896     font style than the text described in Subsections (11)(a)(iv) and (v).
2897          (ii) The warning statements in the sign described in Subsection (11)(a) shall be in the
2898     same font size.
2899          (c) The Department of Health and Human Services shall work with the commission
2900     and department to facilitate consistency in the format of a sign required under this Subsection
2901     (11).
2902          (12) A manufacturing licensee shall provide educational information as defined by rule
2903     by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
2904     Act, as part of the tasting.
2905          (13) A manufacturing licensee that conducts tastings under a scientific or educational
2906     use permit issued by the commission as of May 10, 2016, shall comply with this section by no
2907     later than December 31, 2016, in conducting a tasting. In accordance with Subsection
2908     32B-10-206(1)(c), effective no later than January 1, 2017, the commission shall take action on

2909     a scientific or educational use permit used by a manufacturing licensee to conduct tastings.
2910          Section 36. Section 32B-11-609 is amended to read:
2911          32B-11-609. Notifying department of change in ownership.
2912          The commission may suspend [or], revoke, or deem forfeited a local industry
2913     representative license if a local industry representative licensee does not [immediately] notify
2914     the department, within 60 days after the day on which the change occurs, of a change in:
2915          (1) ownership of the business;
2916          (2) for a corporate owner, the:
2917          (a) corporate officers or directors; or
2918          (b) shareholders holding at least 20% of the total issued and outstanding stock of the
2919     corporation; or
2920          (3) for a limited liability company:
2921          (a) managers; or
2922          (b) members owning at least 20% of the limited liability company.
2923          Section 37. Section 32B-12-302 is amended to read:
2924          32B-12-302. Notifying the department of change in ownership.
2925          The commission may suspend [or], revoke, or deem forfeited a liquor warehousing
2926     license if a liquor warehouser licensee does not [immediately] notify the department, within 60
2927     days after the day on which the change occurs, of a change in:
2928          (1) ownership of the liquor warehouser licensee;
2929          (2) for a corporate owner, the:
2930          (a) corporate officers or directors; or
2931          (b) shareholders holding at least 20% of the total issued and outstanding stock of the
2932     corporation; or
2933          (3) for a limited liability company:
2934          (a) managers; or
2935          (b) members owning at least 20% of the limited liability company.
2936          Section 38. Section 32B-17-102 is amended to read:
2937          32B-17-102. Definitions.
2938          As used in this chapter:
2939          (1) "Airport licensee" means a person who holds a valid:

2940          (a) retail license for premises located at an international airport or domestic airport; or
2941          (b) special use permit for premises located at an international airport or domestic
2942     airport.
2943          (2) "Central receiving and distribution center" means a facility that:
2944          (a) operates at an international airport or domestic airport;
2945          (b) receives goods and supplies delivered to the international airport or domestic
2946     airport for an airport licensee;
2947          (c) screens the goods and supplies described in Subsection (2)(b) for security purposes;
2948     and
2949          (d) distributes the goods and supplies described in Subsection (2)(b) to the airport
2950     licensee for whom the goods and supplies were delivered.
2951          Section 39. Section 32B-18-204 is amended to read:
2952          32B-18-204. Notifying department of change in ownership.
2953          The commission may suspend [or], revoke, or deem forfeited an alcohol license if the
2954     alcohol licensee does not notify the department, within 60 days after the day on which the
2955     change occurs, of a change in:
2956          (1) ownership of the business entity holding the alcohol license;
2957          (2) for a corporate owner, the:
2958          (a) corporate officers or directors of the alcohol licensee; or
2959          (b) shareholders holding at least 20% of the total issued and outstanding stock of the
2960     corporation; or
2961          (3) for a limited liability company:
2962          (a) managers of the limited liability company; or
2963          (b) members owning at least 20% of the limited liability company.
2964          Section 40. Section 32B-18-205 is amended to read:
2965          32B-18-205. Management agreements -- Inventory transfers.
2966          (1) (a) A management agreement may provide for the sharing of revenue from a
2967     business utilizing an alcohol license, including revenue from the sale of an alcoholic product,
2968     if, regardless of which party holds the alcohol license, [all parties to the management
2969     agreement qualify under Section 32B-1-304 to hold the license.] neither the owner nor operator
2970     is disqualified from holding the license for a previous violation of this title.

2971          (b) The parties to a management agreement shall submit to the department:
2972          (i) a copy of the management agreement; and
2973          (ii) any other information the department requires.
2974          (c) If there is a material change to the management agreement submitted to the
2975     department under Subsection (1)(b), the parties to the management agreement shall submit to
2976     the department the following within 30 days after the day on which the change occurs:
2977          (i) a copy of the changed management agreement; and
2978          (ii) any other information the department requires.
2979          (2) (a) Notwithstanding any other provision of this title, in connection with a change of
2980     ownership described in Section 32B-18-202 or an asset sale of an alcohol licensee, the parties
2981     to the transaction may enter into an inventory transfer agreement.
2982          (b) The inventory transfer agreement described in Subsection (2)(a) may allow for the
2983     transfer of inventory between parties regardless of whether the parties hold or are applying for
2984     the same retail license.
2985          (3) In accordance with this section and Title 63G, Chapter 3, Utah Administrative
2986     Rulemaking Act, the commission may make rules governing the requirements of:
2987          (a) a management agreement; or
2988          (b) an inventory transfer agreement.
2989          Section 41. Section 62A-15-401 is amended to read:
2990          62A-15-401. Alcohol training and education seminar.
2991          (1) As used in this [part] section:
2992          (a) "Instructor" means a person that directly provides the instruction during an alcohol
2993     training and education seminar for a seminar provider.
2994          (b) "Licensee" means a person who is:
2995          (i) (A) a new or renewing licensee under Title 32B, Alcoholic Beverage Control Act;
2996     and
2997          (B) engaged in the retail sale of an alcoholic product for consumption on the premises
2998     of the licensee; or
2999          (ii) a business that is:
3000          (A) a new or renewing licensee licensed by a city, town, or county; and
3001          (B) engaged in the retail sale of beer for consumption off the premises of the licensee.

3002          (c) "Licensee staff" means a retail manager, retail staff, an off-premise retail manager,
3003     or off-premise retail staff.
3004          [(c)] (d) "Off-premise beer retailer" is as defined in Section 32B-1-102.
3005          (e) "Off-premise retail manager" means the same as that term is defined in Section
3006     32B-1-701.
3007          (f) "Off-premise retail staff" means the same as that term is defined in Section
3008     32B-1-701.
3009          (g) "Retail manager" means the same as that term is defined in Section 32B-1-701.
3010          (h) "Retail staff" means the same as that term is defined in Section 32B-1-701.
3011          [(d)] (i) "Seminar provider" means a person other than the division who provides an
3012     alcohol training and education seminar meeting the requirements of this section.
3013          (2) (a) This section applies to[:] licensee staff.
3014          [(i) a retail manager as defined in Section 32B-1-701;]
3015          [(ii) retail staff as defined in Section 32B-1-701; and]
3016          [(iii) an individual who, as defined by division rule:]
3017          [(A) directly supervises the sale of beer to a customer for consumption off the premises
3018     of an off-premise beer retailer; or]
3019          [(B) sells beer to a customer for consumption off the premises of an off-premise beer
3020     retailer.]
3021          (b) [If the] An individual who does not have a valid record that the individual has
3022     completed an alcohol training and education seminar[, an individual described in Subsection
3023     (2)(a)] shall:
3024          (i) complete an alcohol training and education seminar before the day on which the
3025     individual begins work as licensee staff of a licensee; and
3026          [(i) (A) complete an alcohol training and education seminar within 30 days of the
3027     following if the individual is described in Subsection (2)(a)(i) or (ii):]
3028          [(I) if the individual is an employee, the day the individual begins employment;]
3029          [(II) if the individual is an independent contractor, the day the individual is first hired;
3030     or]
3031          [(III) if the individual holds an ownership interest in the licensee, the day that the
3032     individual first engages in an activity that would result in that individual being required to

3033     complete an alcohol training and education seminar; or]
3034          [(B) complete an alcohol training and education seminar within the time periods
3035     specified in Subsection 32B-1-703(1) if the individual is described in Subsection (2)(a)(iii)(A)
3036     or (B); and]
3037          (ii) pay a fee[:]
3038          [(A)] to the seminar provider[; and]
3039          [(B)] that is equal to or greater than the amount established under Subsection (4)(h).
3040          (c) An individual shall have a valid record that the individual completed an alcohol
3041     training and education seminar within the time period provided in this Subsection (2) to
3042     [engage in an activity described in Subsection (2)(a)] act as licensee staff.
3043          (d) A record that [an individual] licensee staff has completed an alcohol training and
3044     education seminar is valid for[:]
3045          [(i)] three years [from] after the day on which the record is issued [for an individual
3046     described in Subsection (2)(a)(i) or (ii); and].
3047          [(ii) five years from the day on which the record is issued for an individual described in
3048     Subsection (2)(a)(iii)(A) or (B).]
3049          (e) [On and after July 1, 2011, to] To be considered as having completed an alcohol
3050     training and education seminar, an individual shall:
3051          (i) attend the alcohol training and education seminar and take any test required to
3052     demonstrate completion of the alcohol training and education seminar in the physical presence
3053     of an instructor of the seminar provider; or
3054          (ii) complete the alcohol training and education seminar and take any test required to
3055     demonstrate completion of the alcohol training and education seminar through an online course
3056     or testing program that meets the requirements described in Subsection (2)(f).
3057          (f) (i) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
3058     Administrative Rulemaking Act, establish one or more requirements for an online course or
3059     testing program described in Subsection (2)(e) that are designed to inhibit fraud in the use of
3060     the online course or testing program.
3061          (ii) In developing the requirements by rule, the division shall consider whether to
3062     require:
3063          [(i)] (A) authentication that the an individual accurately identifies the individual as

3064     taking the online course or test;
3065          [(ii)] (B) measures to ensure that an individual taking the online course or test is
3066     focused on training material throughout the entire training period;
3067          [(iii)] (C) measures to track the actual time an individual taking the online course or
3068     test is actively engaged online;
3069          [(iv)] (D) a seminar provider to provide technical support, such as requiring a
3070     telephone number, email, or other method of communication that allows an individual taking
3071     the online course or test to receive assistance if the individual is unable to participate online
3072     because of technical difficulties;
3073          [(v)] (E) a test to meet quality standards, including randomization of test questions and
3074     maximum time limits to take a test;
3075          [(vi)] (F) a seminar provider to have a system to reduce fraud as to who completes an
3076     online course or test, such as requiring a distinct online certificate with information printed on
3077     the certificate that identifies the person taking the online course or test, or requiring measures
3078     to inhibit duplication of a certificate;
3079          [(vii)] (G) measures for the division to audit online courses or tests;
3080          [(viii)] (H) measures to allow an individual taking an online course or test to provide
3081     an evaluation of the online course or test;
3082          [(ix)] (I) a seminar provider to track the Internet protocol address or similar electronic
3083     location of an individual who takes an online course or test;
3084          [(x)] (J) an individual who takes an online course or test to use an e-signature; or
3085          [(xi)] (K) a seminar provider to invalidate a certificate if the seminar provider learns
3086     that the certificate does not accurately reflect the individual who took the online course or test.
3087          (3) (a) A licensee may not permit an individual who is not in compliance with
3088     Subsection (2) to:
3089          (i) serve or supervise the serving of an alcoholic product to a customer for
3090     consumption on the premises of the licensee;
3091          (ii) engage in any activity that would constitute managing operations at the premises of
3092     a licensee that engages in the retail sale of an alcoholic product for consumption on the
3093     premises of the licensee;
3094          (iii) directly supervise the sale of beer to a customer for consumption off the premises

3095     of an off-premise beer retailer; or
3096          (iv) sell beer to a customer for consumption off the premises of an off-premise beer
3097     retailer.
3098          (b) A licensee that violates Subsection (3)(a) is subject to Section 32B-1-702.
3099          (4) The division shall:
3100          (a) (i) provide alcohol training and education seminars; or
3101          (ii) certify one or more seminar providers;
3102          (b) establish the curriculum for an alcohol training and education seminar that includes
3103     the following subjects:
3104          (i) (A) alcohol as a drug; and
3105          (B) alcohol's effect on the body and behavior;
3106          (ii) recognizing the problem drinker or signs of intoxication;
3107          (iii) an overview of state alcohol laws related to responsible beverage sale or service,
3108     as determined in consultation with the Department of Alcoholic Beverage Services;
3109          (iv) dealing with the problem customer, including ways to terminate sale or service;
3110     and
3111          (v) for those supervising or engaging in the retail sale of an alcoholic product for
3112     consumption on the premises of a licensee, alternative means of transportation to get the
3113     customer safely home;
3114          (c) recertify each seminar provider every three years;
3115          (d) monitor compliance with the curriculum described in Subsection (4)(b);
3116          (e) maintain for at least five years a record of every person who has completed an
3117     alcohol training and education seminar;
3118          (f) provide the information described in Subsection (4)(e) on request to:
3119          (i) the Department of Alcoholic Beverage Services;
3120          (ii) law enforcement; or
3121          (iii) a person licensed by the state or a local government to sell an alcoholic product;
3122          (g) provide the Department of Alcoholic Beverage Services on request a list of any
3123     seminar provider certified by the division; and
3124          (h) establish a fee amount for each person attending an alcohol training and education
3125     seminar that is sufficient to offset the division's cost of administering this section.

3126          (5) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
3127     Administrative Rulemaking Act:
3128          [(a) define what constitutes under this section an individual who:]
3129          [(i) manages operations at the premises of a licensee engaged in the retail sale of an
3130     alcoholic product for consumption on the premises of the licensee;]
3131          [(ii) supervises the serving of an alcoholic product to a customer for consumption on
3132     the premises of a licensee;]
3133          [(iii) serves an alcoholic product to a customer for consumption on the premises of a
3134     licensee;]
3135          [(iv) directly supervises the sale of beer to a customer for consumption off the premises
3136     of an off-premise beer retailer; or]
3137          [(v) sells beer to a customer for consumption off the premises of an off-premise beer
3138     retailer;]
3139          [(b)] (a) establish criteria for certifying and recertifying a seminar provider; and
3140          [(c)] (b) establish guidelines for the manner in which an instructor provides an alcohol
3141     education and training seminar.
3142          (6) A seminar provider shall:
3143          (a) obtain recertification by the division every three years;
3144          (b) ensure that an instructor used by the seminar provider:
3145          (i) follows the curriculum established under this section; and
3146          (ii) conducts an alcohol training and education seminar in accordance with the
3147     guidelines established by rule;
3148          (c) ensure that any information provided by the seminar provider or instructor of a
3149     seminar provider is consistent with:
3150          (i) the curriculum established under this section; and
3151          (ii) this section;
3152          (d) provide the division with the names of all persons who complete an alcohol training
3153     and education seminar provided by the seminar provider;
3154          (e) (i) collect a fee for each person attending an alcohol training and education seminar
3155     in accordance with Subsection (2); and
3156          (ii) forward to the division the portion of the fee that is equal to the amount described

3157     in Subsection (4)(h); and
3158          (f) issue a record to an individual that completes an alcohol training and education
3159     seminar provided by the seminar provider.
3160          (7) (a) If after a hearing conducted in accordance with Title 63G, Chapter 4,
3161     Administrative Procedures Act, the division finds that a seminar provider violates this section
3162     or that an instructor of the seminar provider violates this section, the division may:
3163          (i) suspend the certification of the seminar provider for a period not to exceed 90 days
3164     after the day on which the suspension begins;
3165          (ii) revoke the certification of the seminar provider;
3166          (iii) require the seminar provider to take corrective action regarding an instructor; or
3167          (iv) prohibit the seminar provider from using an instructor until such time that the
3168     seminar provider establishes to the satisfaction of the division that the instructor is in
3169     compliance with Subsection (6)(b).
3170          (b) The division may certify a seminar provider whose certification is revoked:
3171          (i) no sooner than 90 days [from the date] after the day on which the certification is
3172     revoked; and
3173          (ii) if the seminar provider establishes to the satisfaction of the division that the
3174     seminar provider will comply with this section.