Representative Jefferson S. Burton proposes the following substitute bill:


1     
ALCOHOL AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jefferson S. Burton

5     
Senate Sponsor: Jerry W Stevenson

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to alcohol.
10     Highlighted Provisions:
11          This bill:
12          ▸     requires the director of the Department of Alcoholic Beverage Services to form a
13     workgroup to make recommendations related to:
14               •     alcohol training and education for licensees; and
15               •     recordkeeping for certain cash transactions involving the sale of an alcoholic
16     beverage;
17          ▸     authorizes the department to establish a round up program, under which a state store
18     customer could elect to round up the customer's purchase to the nearest dollar to
19     help fund substance use disorder treatment services;
20          ▸     increases the state markup on spirituous liquor, wine, and flavored malt beverages;
21          ▸     clarifies the markup on spirituous liquor, wine, heavy beer, and flavored malt
22     beverages sold by a package agency located at a manufacturing facility;
23          ▸     increases the tax on beer and uses the additional revenue to fund three new
24     alcohol-related law enforcement officers who are dedicated to compliance;
25          ▸     prohibits a state store or off-premise beer retailer from selling liquor or beer that is

26     intended to be frozen and consumed in a manner other than as a beverage;
27          ▸     prohibits a state store or package agency from selling liquor that contains more than
28     80% alcohol by volume;
29          ▸     requires the department to initiate disciplinary proceedings under certain
30     circumstances;
31          ▸     prohibits a person from selling in the state vaporized alcohol;
32          ▸     requires the commission to issue any available retail license, including through a
33     conditional retail license, if an applicant satisfies the requirements for the retail
34     license;
35          ▸     allows a retail licensee to sell, offer for sale, or furnish spirituous liquor in a
36     pre-mixed beverage, if the beverage is in the original, sealed container and satisfies
37     other requirements, including requirements related to volume, alcohol content, and
38     labeling;
39          ▸     increases the number of full-service restaurant and bar establishment licenses the
40     commission is authorized to issue;
41          ▸     requires the department to prorate the initial licensing fee for retail licenses;
42          ▸     decreases the required capacity of a sports facility or concert venue to qualify as a
43     recreational amenity for purposes of an on-premise beer retailer license;
44          ▸     provides that a patron in a hotel with a hotel license or resort license may carry an
45     alcoholic beverage between specified locations within the hotel, provided the patron
46     travels within a designated conveyance area and the alcoholic beverage is in an
47     approved container;
48          ▸     allows an entity that is not an airline to obtain a public service permit for the
49     purpose of operating a hospitality room at an international airport;
50          ▸     modifies the required showing for prima facie evidence of dram shop liability;
51          ▸     allows an individual to obtain a DUI investigative report if the individual suffered
52     loss or injury as a result of the defendant's actions;
53          ▸     establishes a place of last drink program, operated by the Department of Public
54     Safety;
55          ▸     clarifies that the beer tax applies to beer and heavy beer;
56          ▸     repeals the Alcoholic Beverage Services Advisory Board; and

57          ▸     makes technical and conforming changes.
58     Money Appropriated in this Bill:
59          None
60     Other Special Clauses:
61          None
62     Utah Code Sections Affected:
63     AMENDS:
64          32B-1-304, as last amended by Laws of Utah 2023, Chapter 371
65          32B-2-205, as last amended by Laws of Utah 2022, Chapter 447
66          32B-2-304, as last amended by Laws of Utah 2022, Chapter 447
67          32B-2-305, as last amended by Laws of Utah 2023, Chapter 396
68          32B-2-503, as last amended by Laws of Utah 2011, Chapters 307, 334
69          32B-2-605, as last amended by Laws of Utah 2022, Chapter 447
70          32B-3-203, as last amended by Laws of Utah 2012, Chapter 369
71          32B-4-422, as last amended by Laws of Utah 2020, Chapter 219
72          32B-4-424, as enacted by Laws of Utah 2015, Chapter 54
73          32B-4-501, as last amended by Laws of Utah 2017, Chapter 455
74          32B-5-201, as last amended by Laws of Utah 2022, Chapter 447
75          32B-5-304, as last amended by Laws of Utah 2023, Chapter 371
76          32B-6-203, as last amended by Laws of Utah 2023, Chapter 371
77          32B-6-204, as last amended by Laws of Utah 2017, Chapter 455
78          32B-6-206, as last amended by Laws of Utah 2023, Chapter 371
79          32B-6-302, as last amended by Laws of Utah 2018, Chapters 249, 313
80          32B-6-304, as last amended by Laws of Utah 2016, Chapter 82
81          32B-6-306, as enacted by Laws of Utah 2013, Chapter 349
82          32B-6-403, as last amended by Laws of Utah 2023, Chapter 371
83          32B-6-405, as last amended by Laws of Utah 2017, Chapter 455
84          32B-6-504, as last amended by Laws of Utah 2011, Chapter 334
85          32B-6-604, as last amended by Laws of Utah 2011, Chapter 334
86          32B-6-605, as last amended by Laws of Utah 2023, Chapters 371, 400
87          32B-6-702, as last amended by Laws of Utah 2021, Chapter 280

88          32B-6-705, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
89          32B-6-804, as enacted by Laws of Utah 2011, Chapter 334
90          32B-6-902, as last amended by Laws of Utah 2019, Chapter 403
91          32B-6-904, as last amended by Laws of Utah 2012, Fourth Special Session, Chapter 1
92          32B-6-1004, as last amended by Laws of Utah 2021, Chapter 291
93          32B-7-202, as last amended by Laws of Utah 2022, Chapter 447
94          32B-8-102, as last amended by Laws of Utah 2020, Chapter 219
95          32B-8-201, as last amended by Laws of Utah 2022, Chapter 447
96          32B-8-202, as last amended by Laws of Utah 2020, Chapter 219
97          32B-8-401, as last amended by Laws of Utah 2023, Chapter 371
98          32B-8b-102, as last amended by Laws of Utah 2023, Chapter 371
99          32B-8b-201, as last amended by Laws of Utah 2020, Chapter 219
100          32B-8b-202, as last amended by Laws of Utah 2020, Chapter 219
101          32B-8b-301, as last amended by Laws of Utah 2023, Chapter 371
102          32B-8d-104, as last amended by Laws of Utah 2022, Chapter 447
103          32B-10-202, as enacted by Laws of Utah 2010, Chapter 276
104          32B-10-303, as last amended by Laws of Utah 2020, Sixth Special Session, Chapter 6
105          32B-10-304, as last amended by Laws of Utah 2020, Sixth Special Session, Chapter 6
106          32B-15-201, as last amended by Laws of Utah 2023, Chapter 400
107          59-15-101, as last amended by Laws of Utah 2019, Chapter 336
108          59-15-109, as last amended by Laws of Utah 2023, Chapter 396
109          63I-2-232, as last amended by Laws of Utah 2023, Chapter 371
110     ENACTS:
111          32B-2-213, Utah Code Annotated 1953
112          41-6a-531, Utah Code Annotated 1953
113          53-28-101, Utah Code Annotated 1953
114          53-28-102, Utah Code Annotated 1953
115     REPEALS:
116          32B-2-210, as last amended by Laws of Utah 2022, Chapter 447
117     

118     Be it enacted by the Legislature of the state of Utah:

119          Section 1. Section 32B-1-304 is amended to read:
120          32B-1-304. Qualifications for a package agency, license, or permit -- Minors.
121          (1) (a) Except as provided in Subsection (7), the commission may not issue a package
122     agency, license, or permit to a person who has been convicted of:
123          (i) within seven years before the day on which the commission issues the package
124     agency, license, or permit, a felony under a federal law or state law;
125          (ii) within four years before the day on which the commission issues the package
126     agency, license, or permit:
127          (A) a violation of a federal law, state law, or local ordinance concerning the sale, offer
128     for sale, warehousing, manufacture, distribution, transportation, or adulteration of an alcoholic
129     product; or
130          (B) a crime involving moral turpitude; or
131          (iii) on two or more occasions within the five years before the day on which the
132     package agency, license, or permit is issued, driving under the influence of alcohol, drugs, or
133     the combined influence of alcohol and drugs.
134          (b) If the person is a partnership, corporation, or limited liability company, the
135     proscription under Subsection (1)(a) applies if any of the following has been convicted of an
136     offense described in Subsection (1)(a):
137          (i) a partner;
138          (ii) a managing agent;
139          (iii) a manager;
140          (iv) an officer;
141          (v) a director;
142          (vi) a stockholder who holds at least 20% of the total issued and outstanding stock of
143     the corporation; or
144          (vii) a member who owns at least 20% of the limited liability company.
145          (c) Except as provided in Subsection (7), the proscription under Subsection (1)(a)
146     applies if a person who is employed to act in a supervisory or managerial capacity for a
147     package agency, licensee, or permittee has been convicted of an offense described in
148     Subsection (1)(a).
149          (2) Except as described in Section 32B-8-501, the commission may immediately

150     suspend or revoke a package agency, license, or permit, and terminate a package agency
151     agreement, if a person described in Subsection (1):
152          (a) after the day on which the package agency, license, or permit is issued, is found to
153     have been convicted of an offense described in Subsection (1)(a) before the package agency,
154     license, or permit is issued; or
155          (b) on or after the day on which the package agency, license, or permit is issued:
156          (i) is convicted of an offense described in Subsection (1)(a)(i) or (ii); or
157          (ii) (A) is convicted of driving under the influence of alcohol, drugs, or the combined
158     influence of alcohol and drugs; and
159          (B) was convicted of driving under the influence of alcohol, drugs, or the combined
160     influence of alcohol and drugs within five years before the day on which the person is
161     convicted of the offense described in Subsection (2)(b)(ii)(A).
162          (3) Except as described in Section 32B-8-501, the director may take emergency action
163     by immediately suspending the operation of the package agency, licensee, or permittee for the
164     period during which a criminal matter is being adjudicated if a person described in Subsection
165     (1):
166          (a) is arrested on a charge for an offense described in Subsection (1)(a)(i) or (ii); or
167          (b) (i) is arrested on a charge for the offense of driving under the influence of alcohol,
168     drugs, or the combined influence of alcohol and drugs; and
169          (ii) was convicted of driving under the influence of alcohol, drugs, or the combined
170     influence of alcohol and drugs within five years before the day on which the person is arrested
171     on a charge described in Subsection (3)(b)(i).
172          (4) (a) (i) The commission may not issue a package agency, license, or permit to a
173     person who has had any type of agency, license, or permit issued under this title revoked within
174     the last three years.
175          (ii) The commission may not issue a package agency, license, or permit to a
176     partnership, corporation, or limited liability company if a partner, managing agent, manager,
177     officer, director, stockholder who holds at least 20% of the total issued and outstanding stock
178     of the corporation, or member who owns at least 20% of the limited liability company is or
179     was:
180          (A) a partner or managing agent of a partnership that had any type of agency, license,

181     or permit issued under this title revoked within the last three years;
182          (B) a managing agent, officer, director, or stockholder who holds or held at least 20%
183     of the total issued and outstanding stock of any corporation that had any type of agency,
184     license, or permit issued under this title revoked within the last three years; or
185          (C) a manager or member who owns or owned at least 20% of a limited liability
186     company that had any type of agency, license, or permit issued under this title revoked within
187     the last three years.
188          (b) The commission may not issue a package agency, license, or permit to a
189     partnership, corporation, or limited liability company if any of the following had any type of
190     agency, license, or permit issued under this title revoked while acting in that person's individual
191     capacity within the last three years:
192          (i) a partner or managing agent of a partnership;
193          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
194     total issued and outstanding stock of a corporation; or
195          (iii) a manager or member who owns at least 20% of a limited liability company.
196          (c) The commission may not issue a package agency, license, or permit to a person
197     acting in an individual capacity if that person was:
198          (i) a partner or managing agent of a partnership that had any type of agency, license, or
199     permit issued under this title revoked within the last three years;
200          (ii) a managing agent, officer, director, or stockholder who held at least 20% of the
201     total issued and outstanding stock of a corporation that had any type of agency, license, or
202     permit issued under this title revoked within the last three years; or
203          (iii) a manager or member who owned at least 20% of the limited liability company
204     that had any type of agency, license, or permit issued under this title revoked within the last
205     three years.
206          (5) (a) The commission may not issue a package agency, license, or permit to a minor.
207          (b) The commission may not issue a package agency, license, or permit to a
208     partnership, corporation, or limited liability company if any of the following is a minor:
209          (i) a partner or managing agent of the partnership;
210          (ii) a managing agent, officer, director, or stockholder who holds at least 20% of the
211     total issued and outstanding stock of the corporation; or

212          (iii) a manager or member who owns at least 20% of the limited liability company.
213          (c) For purposes of Subsection (5)(b), the commission may not consider a minor's
214     position with or ownership interest in an entity that has an ownership interest in the entity that
215     is applying for the package agency, license, or permit unless the minor would exercise direct
216     decision-making control over the package agency, license, or permit.
217          (6) Except as described in Section 32B-8-501, if a package agent, licensee, or permittee
218     no longer possesses the qualifications required by this title for obtaining a package agency,
219     license, or permit, the commission may terminate the package agency agreement, or revoke the
220     license or permit.
221          (7) (a) If the licensee is a resort licensee:
222          (i) Subsection (1)(a) only applies if an individual listed in Subsection (1)(b) engages in
223     the management of the resort, as the commission defines in rule; and
224          (ii) Subsection (1)(c) only applies to an individual employed to act in a supervisory or
225     managerial capacity for the resort licensee or in relation to a sublicense of the resort license.
226          (b) If the permittee is a public service permittee under Chapter 10, Special Use Permit
227     Act:
228          (i) Subsection (1)(a) only applies if an individual listed in Subsection (1)(b) engages in
229     the management of the [airline, railroad, or other public conveyance] public service permittee,
230     as the commission defines in rule; and
231          (ii) Subsection (1)(c) only applies to an individual employed to act in a supervisory or
232     managerial capacity for the public service permittee.
233          Section 2. Section 32B-2-205 is amended to read:
234          32B-2-205. Director of alcoholic beverage services.
235          (1) (a) In accordance with Subsection (1)(b), the governor, with the advice and consent
236     of the Senate, shall appoint a director of alcoholic beverage services to a four-year term. The
237     director may be appointed to more than one four-year term. The director is the administrative
238     head of the department.
239          (b) (i) The governor shall appoint the director from nominations made by the
240     commission.
241          (ii) The commission shall submit the nomination of three individuals to the governor
242     for appointment of the director.

243          (iii) By no later than 30 calendar days from the day on which the governor receives the
244     three nominations submitted by the commission, the governor may:
245          (A) appoint the director; or
246          (B) reject the three nominations.
247          (iv) If the governor rejects the nominations or fails to take action within the 30-day
248     period, the commission shall nominate three different individuals from which the governor may
249     appoint the director or reject the nominations until such time as the governor appoints the
250     director.
251          (v) The governor may reappoint the director without seeking nominations from the
252     commission. Reappointment of a director is subject to the advice and consent of the Senate.
253          (c) (i) If there is a vacancy in the position of director, during the nomination process
254     described in Subsection (1)(b), the governor may appoint an interim director for a period of up
255     to 30 calendar days.
256          (ii) If a director is not appointed within the 30-day period, the interim director may
257     continue to serve beyond the 30-day period subject to the advice and consent of the Senate at
258     the next scheduled time for the Senate giving consent to appointments of the governor.
259          (iii) Except that if the Senate does not act on the consent to the appointment of the
260     interim director within 60 days of the end of the initial 30-day period, the interim director may
261     continue as the interim director.
262          (d) The director may be terminated by:
263          (i) the commission by a vote of four commissioners; or
264          (ii) the governor after consultation with the commission.
265          (e) The director may not be a commissioner.
266          (f) The director shall:
267          (i) be qualified in administration;
268          (ii) be knowledgeable by experience and training in the field of business management;
269     and
270          (iii) possess any other qualification prescribed by the commission.
271          (2) The governor shall establish the director's compensation within the salary range
272     fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
273          (3) The director shall:

274          (a) carry out the policies of the commission;
275          (b) carry out the policies of the department;
276          (c) fully inform the commission of the operations and administrative activities of the
277     department; and
278          (d) assist the commission in the proper discharge of the commission's duties.
279          (4) (a) The director shall form a workgoup that includes representatives from the
280     following:
281          (i) the department;
282          (ii) the Division of Integrated Healthcare created in Section 26B-1-202;
283          (iii) the Department of Public Safety created in Section 53-10-103;
284          (iv) the retail alcohol industry;
285          (v) the bar or restaurant industry;
286          (vi) organizations related to alcohol and drug abuse prevention, alcohol or drug related
287     enforcement, or alcohol or drug related education; and
288          (vii) any other organization or industry the director determines beneficial.
289          (b) (i) The workgroup shall study and make recommendations to:
290          (A) improve the efficacy of the alcohol training and education described in Section
291     26B-5-205, including recommendations related to the curriculum, development, provider, and
292     delivery; and
293          (B) maintain appropriate records of cash sale transactions in bar establishments.
294          (ii) The workgoup shall ensure that the workgroup's recommendations under
295     Subsection (4)(b)(i)(A) include a focus on improving training with respect to laws governing
296     the responsible sale and service of alcohol.
297          (c) No later than September 1, 2024, the workgroup shall provide written
298     recommendations as provided in this Subsection (4) to the Business and Labor Interim
299     Committee.
300          Section 3. Section 32B-2-213 is enacted to read:
301          32B-2-213. Round up program.
302          (1) The department may establish a round up program under which an individual who
303     makes a purchase at a state store may elect to round the purchase price up to the nearest dollar.
304          (2) The department shall deposit money the department collects under Subsection (1)

305     into the Pamela Atkinson Homeless Account created in Section 35A-16-301 to be used for
306     substance use disorder treatment services.
307          Section 4. Section 32B-2-304 is amended to read:
308          32B-2-304. Liquor price -- Remittance of markup -- School lunch program --
309     Remittance of markup.
310          (1) For purposes of this section:
311          (a) (i) "Landed case cost" means the sum of:
312          (A) the cost of the product; [and]
313          (B) inbound shipping costs [incurred by the department.] the department incurs; and
314          (C) case handling costs the department incurs.
315          (ii) "Landed case cost" does not include the outbound shipping cost from a warehouse
316     of the department to a state store.
317          (b) "Proof gallon" means the same as that term is defined in 26 U.S.C. Sec. 5002.
318          (2) Except as provided in Subsections (3) and (4):
319          (a) spirituous liquor sold by the department within the state shall be marked up in an
320     amount not less than [88%] 88.5% above the landed case cost to the department;
321          (b) wine sold by the department within the state shall be marked up in an amount not
322     less than [88%] 88.5% above the landed case cost to the department;
323          (c) heavy beer sold by the department within the state shall be marked up in an amount
324     not less than 66.5% above the landed case cost to the department; and
325          (d) a flavored malt beverage sold by the department within the state shall be marked up
326     in an amount not less than [88%] 88.5% above the landed case cost to the department.
327          (3) (a) Liquor sold by the department to a military installation in Utah shall be marked
328     up in an amount not less than 17% above the landed case cost to the department.
329          (b) Except for spirituous liquor sold by the department to a military installation in
330     Utah, spirituous liquor that is sold by the department within the state shall be marked up 49%
331     above the landed case cost to the department if:
332          (i) the spirituous liquor is manufactured by a manufacturer producing less than 30,000
333     proof gallons of spirituous liquor in a calendar year; and
334          (ii) the manufacturer applies to the department for a reduced markup.
335          (c) Except for wine sold by the department to a military installation in Utah, wine that

336     is sold by the department within the state shall be marked up 49% above the landed case cost to
337     the department if:
338          (i) (A) except as provided in Subsection (3)(c)(i)(B), the wine is manufactured by a
339     manufacturer producing less than 20,000 gallons of wine in a calendar year; or
340          (B) for hard cider, the hard cider is manufactured by a manufacturer producing less
341     than 620,000 gallons of hard cider in a calendar year; and
342          (ii) the manufacturer applies to the department for a reduced markup.
343          (d) Except for heavy beer sold by the department to a military installation in Utah,
344     heavy beer that is sold by the department within the state shall be marked up 32% above the
345     landed case cost to the department if:
346          (i) a small brewer manufactures the heavy beer; and
347          (ii) the small brewer applies to the department for a reduced markup.
348          (e) The department shall:
349          (i) for purposes of Subsections (3)(b) and (c), calculate the production amount of a
350     manufacturer:
351          (A) by, if the manufacturer is part of a controlled group of manufacturers, including the
352     combined volume totals of spirituous liquor, wine, or cider, as applicable, for all manufacturers
353     that constitute the controlled group of manufacturers; and
354          (B) without considering the manufacturer's production of any other type of alcoholic
355     product; and
356          (ii) verify that a manufacturer meets a production amount described in Subsection
357     (3)(b) or (c) and the production amount of a small brewer [pursuant to] under a federal or other
358     verifiable production report.
359          (f) A manufacturer seeking to obtain a reduced markup under Subsection (3)(b), (c), or
360     (d), shall provide to the department any documentation or information the department
361     determines necessary to determine if the manufacturer is part of a controlled group of
362     manufacturers.
363          (g) The department may, at any time, revoke a reduced markup granted to a
364     manufacturer under Subsection (3)(b), (c), or (d), if the department determines the
365     manufacturer no longer qualifies for the reduced markup.
366          (4) Wine the department purchases on behalf of a subscriber through the wine

367     subscription program established in Section 32B-2-702 shall be marked up not less than [88%]
368     88.5% above the cost of the subscription for the interval in which the wine is purchased.
369          (5) The department shall deposit 10% of the total gross revenue from sales of liquor
370     with the state treasurer to be credited to the Uniform School Fund and used to support the
371     school meals program administered by the State Board of Education under Section 53E-3-510.
372          (6) (a) Each month, the department shall collect from each package agency located at a
373     manufacturing facility owned or operated by a person licensed under Chapter 11,
374     Manufacturing and Related Licenses Act, 12.295% of the package agency's reported monthly
375     revenue and deposit the money as follows:
376          (i) 1.695% of the reported monthly revenue into the Alcoholic Beverage Control Act
377     Enforcement Fund;
378          (ii) 10% of the reported monthly revenue into the Uniform School Fund and used to
379     support the school meals program administered by the State Board of Education under Section
380     53E-3-510; and
381          (iii) 0.60% of the reported monthly revenue into the Underage Drinking Prevention
382     Media and Education Campaign Restricted Account.
383          (b) The department may collect a fee established in accordance with Section 63J-1-504
384     from a package agency described in this subsection to cover the costs of regulation.
385          [(6)] (7) This section does not prohibit the department from selling discontinued items
386     at a discount.
387          (8) The Legislature shall annually appropriate to support substance use disorder
388     treatment services, an amount equal to the revenue generated from a 0.5% markup above the
389     landed case cost to the department on spirituous liquor
390          Section 5. Section 32B-2-305 is amended to read:
391          32B-2-305. Alcoholic Beverage Control Act Enforcement Fund.
392          (1) As used in this section:
393          (a) "Alcohol-related law enforcement officer" means the same as that term is defined in
394     Section 32B-1-201.
395          (b) "Drug-related law enforcement officer" means a law enforcement officer employed
396     by the Department of Public Safety who has enforcement of drug-related offenses as a primary
397     responsibility.

398          (c) "Enforcement ratio" means the same as that term is defined in Section 32B-1-201.
399          (d) "Fund" means the Alcoholic Beverage Control Act Enforcement Fund created in
400     this section.
401          (e) "SBI drug-related law enforcement officer" means a law enforcement officer
402     employed by the State Bureau of Investigation within the Department of Public Safety who has
403     investigation of drug-related offenses as a primary responsibility.
404          (f) "Social worker" means an individual licensed under Title 58, Chapter 60, Part 2,
405     Social Worker Licensing Act, and employed by the Department of Public Safety who has
406     provision of caseworker services to individuals under 21 years old as a primary responsibility.
407          (2) There is created an expendable special revenue fund known as the "Alcoholic
408     Beverage Control Act Enforcement Fund."
409          (3) (a) The fund consists of:
410          (i) deposits made under Subsection (4); [and]
411          (ii) deposits made under Section 59-15-109; and
412          [(ii)] (iii) interest earned on the fund.
413          (b) (i) The fund shall earn interest.
414          (ii) Interest on the fund shall be deposited into the fund.
415          (4) After the deposit made under Section 32B-2-304 for the school lunch program, the
416     department shall deposit 1.695% of the total gross revenue from the sale of liquor with the state
417     treasurer to be credited to the fund [to be:].
418          (5) The deposits made under Subsection (4) and Section 59-15-109 shall be:
419          (a) used by the Department of Public Safety as provided in Subsection [(5)] (6); and
420          (b) reallocated to the General Fund as described in Subsection [(6)] (7).
421          [(5)] (6) (a) The Department of Public Safety shall expend money from the fund to:
422          (i) supplement appropriations by the Legislature so that the Department of Public
423     Safety maintains a sufficient number of alcohol-related law enforcement officers such that each
424     year the enforcement ratio as of July 1 is equal to or less than the number specified in Section
425     32B-1-201; and
426          (ii) maintain at least:
427          (A) 10 drug-related law enforcement officers;
428          (B) eight SBI drug-related law enforcement officers; [and]

429          (C) two social workers[.]; and
430          (D) three additional alcohol-related law enforcement officers who are dedicated to
431     compliance or enforcement of this title.
432          (b) Four of the alcohol-related law enforcement officers described in Subsection
433     [(5)(a)(i)] (6)(a)(i) shall have as a primary focus the enforcement of this title in relationship to
434     restaurants.
435          [(6)] (7) For fiscal year 2023, the Division of Finance shall deposit into the General
436     Fund $3 million of unspent money in the fund.
437          Section 6. Section 32B-2-503 is amended to read:
438          32B-2-503. Operational requirements for a state store.
439          (1) (a) A state store shall display in a prominent place in the store a sign in large letters
440     that consists of text in the following order:
441          (i) a header that reads: "WARNING";
442          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
443     can cause birth defects and permanent brain damage for the child.";
444          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
445     [insert most current toll-free number] with questions or for more information.";
446          (iv) a header that reads: "WARNING"; and
447          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
448     serious crime that is prosecuted aggressively in Utah."
449          (b) (i) The text described in Subsections (1)(a)(i) through (iii) shall be in a different
450     font style than the text described in Subsections (1)(a)(iv) and (v).
451          (ii) The warning statements in the sign described in Subsection (1)(a) shall be in the
452     same font size.
453          (c) The Department of Health shall work with the commission and department to
454     facilitate consistency in the format of a sign required under this section.
455          (2) A state store may not sell, offer for sale, or furnish liquor except at a price fixed by
456     the commission.
457          (3) A state store may not sell, offer for sale, or furnish liquor to:
458          (a) a minor;
459          (b) a person actually, apparently, or obviously intoxicated;

460          (c) a known interdicted person; or
461          (d) a known habitual drunkard.
462          (4) (a) A state store employee may not:
463          (i) consume an alcoholic product on the premises of a state store; or
464          (ii) allow any person to consume an alcoholic product on the premises of a state store.
465          (b) A violation of this Subsection (4) is a class B misdemeanor.
466          (5) (a) Sale or delivery of liquor may not be made on or from the premises of a state
467     store, and a state store may not be kept open for the sale of liquor:
468          (i) on Sunday; or
469          (ii) on a state or federal legal holiday.
470          (b) Sale or delivery of liquor may be made on or from the premises of a state store, and
471     a state store may be open for the sale of liquor, only on a day and during hours that the
472     commission directs by rule or order.
473          (6) (a) A minor may not be admitted into, or be on the premises of, a state store unless
474     accompanied by a person who is:
475          (i) 21 years of age or older; and
476          (ii) the minor's parent, legal guardian, or spouse.
477          (b) A state store employee that has reason to believe that a person who is on the
478     premises of a state store is under the age of 21 and is not accompanied by a person described in
479     Subsection (6)(a) may:
480          (i) ask the suspected minor for proof of age;
481          (ii) ask the person who accompanies the suspected minor for proof of age; and
482          (iii) ask the suspected minor or the person who accompanies the suspected minor for
483     proof of parental, guardianship, or spousal relationship.
484          (c) A state store employee shall refuse to sell liquor to the suspected minor and to the
485     person who accompanies the suspected minor into the state store if the suspected minor or
486     person fails to provide information specified in Subsection (6)(b).
487          (d) A state store employee shall require a suspected minor and the person who
488     accompanies the suspected minor into the state store to immediately leave the premises of the
489     state store if the suspected minor or person fails to provide information specified in Subsection
490     (6)(b).

491          (7) (a) A state store may not sell, offer for sale, or furnish liquor except in a sealed
492     container.
493          (b) A person may not open a sealed container on the premises of a state store.
494          (8) On or after October 1, 2011, a state store may not sell, offer for sale, or furnish
495     heavy beer in a sealed container that exceeds two liters.
496          (9) A state store may not sell, offer for sale, or furnish:
497          (a) liquor that is intended to be frozen and consumed in manner other than as a
498     beverage, including liquor in the form of a freeze pop, popsicle, ice cream, or sorbet; or
499          (b) liquor that contains more than 80% alcohol by volume.
500          Section 7. Section 32B-2-605 is amended to read:
501          32B-2-605. Operational requirements for package agency.
502          (1) (a) A person may not operate a package agency until a package agency agreement is
503     entered into by the package agent and the department.
504          (b) A package agency agreement shall state the conditions of operation by which the
505     package agent and the department are bound.
506          (c) (i) If a package agent or staff of the package agent violates this title, rules under this
507     title, or the package agency agreement, the department may take any action against the package
508     agent that is allowed by the package agency agreement.
509          (ii) An action against a package agent is governed solely by its package agency
510     agreement and may include suspension or revocation of the package agency.
511          (iii) A package agency agreement shall provide procedures to be followed if a package
512     agent fails to pay money owed to the department including a procedure for replacing the
513     package agent or operator of the package agency.
514          (iv) A package agency agreement shall provide that the package agency is subject to
515     covert investigations for selling an alcoholic product to a minor.
516          (v) Notwithstanding that this part refers to "package agency" or "package agent," staff
517     of the package agency or package agent is subject to the same requirement or prohibition.
518          (2) (a) A package agency shall be operated by an individual who is either:
519          (i) the package agent; or
520          (ii) an individual designated by the package agent.
521          (b) An individual who is a designee under this Subsection (2) shall be:

522          (i) an employee of the package agent; and
523          (ii) responsible for the operation of the package agency.
524          (c) The conduct of the designee is attributable to the package agent.
525          (d) A package agent shall submit the name of the person operating the package agency
526     to the department for the department's approval.
527          (e) A package agent shall state the name and title of a designee on the application for a
528     package agency.
529          (f) A package agent shall:
530          (i) inform the department of a proposed change in the individual designated to operate
531     a package agency; and
532          (ii) receive prior approval from the department before implementing the change
533     described in this Subsection (2)(f).
534          (g) Failure to comply with the requirements of this Subsection (2) may result in the
535     immediate termination of a package agency agreement.
536          (3) (a) A package agent shall display in a prominent place in the package agency the
537     record issued by the commission that designates the package agency.
538          (b) A package agent that displays or stores liquor at a location visible to the public
539     shall display in a prominent place in the package agency a sign in large letters that consists of
540     text in the following order:
541          (i) a header that reads: "WARNING";
542          (ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
543     can cause birth defects and permanent brain damage for the child.";
544          (iii) a statement in smaller font that reads: "Call the Utah Department of Health at
545     [insert most current toll-free number] with questions or for more information.";
546          (iv) a header that reads: "WARNING"; and
547          (v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a
548     serious crime that is prosecuted aggressively in Utah."
549          (c) (i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different
550     font style than the text described in Subsections (3)(b)(iv) and (v).
551          (ii) The warning statements in the sign described in Subsection (3)(b) shall be in the
552     same font size.

553          (d) The Department of Health and Human Services shall work with the commission
554     and department to facilitate consistency in the format of a sign required under this section.
555          (4) A package agency may not display liquor or a price list in a window or showcase
556     that is visible to passersby.
557          (5) (a) A package agency may not purchase liquor from a person except from the
558     department.
559          (b) At the discretion of the department, the department may provide liquor to a package
560     agency for sale on consignment.
561          (6) A package agency may not store, sell, offer for sale, or furnish liquor in a place
562     other than as designated in the package agent's application, unless the package agent first
563     applies for and receives approval from the department for a change of location within the
564     package agency premises.
565          (7) (a) Except as provided in Subsection (7)(b), a package agency may not sell, offer
566     for sale, or furnish liquor except at a price fixed by the commission.
567          (b) A package agency may provide as room service one alcoholic product free of
568     charge per guest reservation, per guest room, if:
569          (i) the package agency is the type of package agency that authorizes the package
570     agency to sell, offer for sale, or furnish an alcoholic product as part of room service;
571          (ii) staff of the package agency provides the alcoholic product:
572          (A) in person; and
573          (B) only to an adult guest in the guest room;
574          (iii) staff of the package agency does not leave the alcoholic product outside a guest
575     room for retrieval by a guest; and
576          (iv) the alcoholic product:
577          (A) is not a spirituous liquor; and
578          (B) is in an unopened container not to exceed 750 milliliters.
579          (8) A package agency may not sell, offer for sale, or furnish liquor to:
580          (a) a minor;
581          (b) a person actually, apparently, or obviously intoxicated;
582          (c) a known interdicted person; or
583          (d) a known habitual drunkard.

584          (9) (a) A package agency may not employ a minor to handle liquor.
585          (b) (i) Staff of a package agency may not:
586          (A) consume an alcoholic product on the premises of a package agency; or
587          (B) allow any person to consume an alcoholic product on the premises of a package
588     agency.
589          (ii) Violation of this Subsection (9)(b) is a class B misdemeanor.
590          (10) (a) A package agency may not close or cease operation for a period longer than 72
591     hours, unless:
592          (i) the package agency notifies the department in writing at least seven days before the
593     day on which the package agency closes or ceases operation; and
594          (ii) the closure or cessation of operation is first approved by the department.
595          (b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package
596     agency shall immediately notify the department by telephone.
597          (c) (i) The department may authorize a closure or cessation of operation for a period
598     not to exceed 60 days.
599          (ii) The department may extend the initial period described in Subsection (10)(c)(i) an
600     additional 30 days upon written request of the package agency and upon a showing of good
601     cause.
602          (iii) A closure or cessation of operation may not exceed a total of 90 days without
603     commission approval.
604          (d) The notice required by Subsection (10)(a) shall include:
605          (i) the dates of closure or cessation of operation;
606          (ii) the reason for the closure or cessation of operation; and
607          (iii) the date on which the package agency will reopen or resume operation.
608          (e) Failure of a package agency to provide notice and to obtain department
609     authorization before closure or cessation of operation results in an automatic termination of the
610     package agency agreement effective immediately.
611          (f) Failure of a package agency to reopen or resume operation by the approved date
612     results in an automatic termination of the package agency agreement effective on that date.
613          (11) A package agency may not transfer the package agency's operations from one
614     location to another location without prior written approval of the commission.

615          (12) (a) A person, having been issued a package agency, may not sell, transfer, assign,
616     exchange, barter, give, or attempt in any way to dispose of the package agency to another
617     person, whether for monetary gain or not.
618          (b) A package agency has no monetary value for any type of disposition.
619          (13) (a) Subject to the other provisions of this Subsection (13):
620          (i) sale or delivery of liquor may not be made on or from the premises of a package
621     agency, and a package agency may not be kept open for the sale of liquor:
622          (A) on Sunday; or
623          (B) on a state or federal legal holiday; and
624          (ii) sale or delivery of liquor may be made on or from the premises of a package
625     agency, and a package agency may be open for the sale of liquor, only on a day and during
626     hours that the commission directs by rule or order.
627          (b) A package agency located at a manufacturing facility is not subject to Subsection
628     (13)(a) if:
629          (i) the package agency is located at a manufacturing facility licensed in accordance
630     with Chapter 11, Manufacturing and Related Licenses Act; and
631          (ii) the package agency only sells an alcoholic product produced at the manufacturing
632     facility.
633          (c) (i) Subsection (13)(a) does not apply to a package agency held by the following if
634     the package agent that holds the package agency to sell liquor at a resort or hotel does not sell
635     liquor in a manner similar to a state store:
636          (A) a resort licensee; or
637          (B) a hotel licensee.
638          (ii) The commission may by rule define what constitutes a package agency that sells
639     liquor "in a manner similar to a state store."
640          (14) (a) Except to the extent authorized by commission rule, a minor may not be
641     admitted into, or be on the premises of, a package agency unless accompanied by a person who
642     is:
643          (i) 21 years old or older; and
644          (ii) the minor's parent, legal guardian, or spouse.
645          (b) A package agent or staff of a package agency that has reason to believe that a

646     person who is on the premises of a package agency is under 21 years old and is not
647     accompanied by a person described in Subsection (14)(a) may:
648          (i) ask the suspected minor for proof of age;
649          (ii) ask the person who accompanies the suspected minor for proof of age; and
650          (iii) ask the suspected minor or the person who accompanies the suspected minor for
651     proof of parental, guardianship, or spousal relationship.
652          (c) A package agent or staff of a package agency shall refuse to sell liquor to the
653     suspected minor and to the person who accompanies the suspected minor into the package
654     agency if the minor or person fails to provide any information specified in Subsection (14)(b).
655          (d) A package agent or staff of a package agency shall require the suspected minor and
656     the person who accompanies the suspected minor into the package agency to immediately leave
657     the premises of the package agency if the minor or person fails to provide information specified
658     in Subsection (14)(b).
659          (15) (a) A package agency shall sell, offer for sale, or furnish liquor in a sealed
660     container.
661          (b) A person may not open a sealed container on the premises of a package agency.
662          (c) Notwithstanding Subsection (15)(a), a package agency may sell, offer for sale, or
663     furnish liquor in other than a sealed container:
664          (i) if the package agency is the type of package agency that authorizes the package
665     agency to sell, offer for sale, or furnish the liquor as part of room service;
666          (ii) if the liquor is sold, offered for sale, or furnished as part of room service; and
667          (iii) subject to:
668          (A) staff of the package agency providing the liquor in person only to an adult guest in
669     the guest room or privately owned dwelling unit;
670          (B) staff of the package agency not leaving the liquor outside a guest room or privately
671     owned dwelling unit for retrieval by a guest or resident; and
672          (C) the same limits on the portions in which an alcoholic product may be sold by a
673     retail licensee under Section 32B-5-304.
674          (16) A package agency may not sell, offer for sale, or furnish:
675          (a) heavy beer in a sealed container that exceeds two liters[.]; or
676          (b) liquor that contains more than 80% alcohol by volume.

677          (17) The department may pay or otherwise remunerate a package agent on any basis,
678     including sales or volume of business done by the package agency.
679          (18) The commission may prescribe by policy or rule general operational requirements
680     of a package agency that are consistent with this title and relate to:
681          (a) physical facilities;
682          (b) conditions of operation;
683          (c) hours of operation;
684          (d) inventory levels;
685          (e) payment schedules;
686          (f) methods of payment;
687          (g) premises security; and
688          (h) any other matter considered appropriate by the commission.
689          (19) A package agency may not maintain a minibar.
690          Section 8. Section 32B-3-203 is amended to read:
691          32B-3-203. Initiating a disciplinary proceeding.
692          Subject to Section 32B-3-202:
693          (1) [The department may] Subject to Subsection (3), the department shall initiate a
694     disciplinary proceeding described in Subsection (2) if the department [receives]:
695          (a) receives a report from an investigator alleging that a person subject to
696     administrative action violated this title or the rules of the commission;
697          (b) [a final adjudication of criminal liability] receives notice of criminal proceedings
698     against a person subject to administrative action on the basis of an alleged violation of this
699     title; [or]
700          (c) [a final adjudication of civil liability in accordance with] receives notice of civil
701     proceedings in accordance with Chapter 15, Alcoholic Product Liability Act, against a person
702     subject to administrative action on the basis of an alleged violation of this title[.]; or
703          (d) otherwise becomes aware that a person subject to administrative action on the basis
704     of an alleged violation of this title may have violated this title or commission rule.
705          (2) [If the condition of Subsection (1) is met,] Subject to Subsection (3), if a condition
706     in Subsection (1) is met, the department shall:
707          (a) [the department may] initiate a disciplinary proceeding to determine:

708          [(a)] (i) whether a person subject to administrative action violated this title or rules of
709     the commission; and
710          [(b)] (ii) if a violation is found, the appropriate sanction to be imposed[.]; and
711          (b) refer the matter to the State Bureau of Investigation, created in Section 53-10-301.
712          (3) The department is not required to initiate a disciplinary proceeding described in
713     Subsection (2) if after reviewing the information described in Subsection (1), the department
714     determines:
715          (a) that there is no basis for initiating a disciplinary proceeding; or
716          (b) in consultation with the prosecutor or plaintiff's counsel, as applicable, that
717     initiating a disciplinary proceeding would pose a significant risk of interfering with a criminal
718     or civil proceeding.
719          [(3)] (4) (a) Unless waived by the respondent, a disciplinary proceeding shall be held:
720          (i) if required by law;
721          (ii) before revoking or suspending a license, permit, or certificate of approval issued
722     under this title; or
723          (iii) before imposing a fine against a person subject to administrative action.
724          (b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding
725     hearing after receiving proper notice is an admission of the charged violation.
726          (c) The validity of a disciplinary proceeding is not affected by the failure of a person to
727     attend or remain in attendance.
728          Section 9. Section 32B-4-422 is amended to read:
729          32B-4-422. Unlawful dispensing.
730          (1) A retail licensee licensed under this title to sell, offer for sale, or furnish spirituous
731     liquor for consumption on the licensed premises, or staff of the retail licensee may not:
732          (a) sell, offer for sale, or furnish a primary spirituous liquor to a person on the licensed
733     premises except in a quantity that does not exceed 1.5 ounces per beverage dispensed through a
734     calibrated metered dispensing system approved by the department;
735          (b) sell, offer for sale, or furnish more than a total of 2.5 ounces of spirituous liquor per
736     beverage;
737          (c) allow a person on the licensed premises to have more than a total of 2.5 ounces of
738     spirituous liquor at a time; or

739          (d) (i) except as provided in Subsection (1)(d)(ii), allow a person to have more than
740     two spirituous liquor beverages at a time; or
741          (ii) allow a person on the premises of the following to have more than one spirituous
742     liquor beverage at a time:
743          (A) a full-service restaurant licensee;
744          (B) a person operating under a full-service restaurant sublicense;
745          (C) an on-premise banquet licensee;
746          (D) a person operating under an on-premise banquet sublicense; [or]
747          (E) a single event permittee[.]; or
748          (F) a hospitality amenity licensee.
749          (2) A violation of this section is a class C misdemeanor.
750          Section 10. Section 32B-4-424 is amended to read:
751          32B-4-424. Powdered or vaporized alcohol.
752          (1) As used in this section[, "powdered alcohol"]:
753          (a) "Powdered alcohol" means a product that is in a powdered or crystalline form and
754     contains any amount of alcohol.
755          (b) "Vaporized alcohol" means a product created by mixing alcohol with pure oxygen
756     or another gas to produce a vaporized product for the purpose of consumption through
757     inhalation.
758          (2) It is unlawful for a person to use, offer for use, purchase, offer to purchase, sell,
759     offer to sell, furnish, or possess [powdered alcohol] for human consumption powdered alcohol
760     or vaporized alcohol.
761          (3) It is unlawful for a holder of a retail license to use powdered alcohol or vaporized
762     alcohol as an alcoholic product.
763          (4) This section does not apply to the use of powdered alcohol or vaporized alcohol for
764     a commercial use specifically approved by state law or bona fide research purposes by a:
765          (a) health care practitioner that operates primarily for the purpose of conducting
766     scientific research;
767          (b) department, commission, board, council, agency, institution, division, office,
768     committee, authority, laboratory, library, unit, bureau, panel, or other administrative unit of the
769     state, including a state institution of higher education listed in Section 53B-2-101;

770          (c) private college or university research facility; or
771          (d) pharmaceutical or biotechnology company.
772          Section 11. Section 32B-4-501 is amended to read:
773          32B-4-501. Operating without a license or permit.
774          (1) A person may not operate the following businesses without first obtaining a license
775     under this title if the business allows a person to purchase or consume an alcoholic product on
776     the premises of the business:
777          (a) a restaurant;
778          (b) an airport lounge;
779          (c) a business operated in the same manner as a bar establishment licensee;
780          (d) a resort;
781          (e) a business operated to sell, offer for sale, or furnish beer for on-premise
782     consumption;
783          (f) a business operated as an on-premise banquet licensee;
784          (g) a hotel; [or]
785          (h) an arena; or
786          [(h)] (i) a business similar to one listed in Subsections (1)(a) through [(g)] (h).
787          (2) A person conducting an event that is open to the general public may not directly or
788     indirectly sell, offer for sale, or furnish an alcoholic product to a person attending the event
789     without first obtaining an event permit under this title.
790          (3) A person conducting a private event may not directly or indirectly sell or offer for
791     sale an alcoholic product to a person attending the private event without first obtaining an
792     event permit under this title.
793          (4) A person may not operate the following businesses in this state without first
794     obtaining a license under this title:
795          (a) a winery manufacturer;
796          (b) a distillery manufacturer;
797          (c) a brewery manufacturer;
798          (d) a local industry representative of:
799          (i) a manufacturer of an alcoholic product;
800          (ii) a supplier of an alcoholic product; or

801          (iii) an importer of an alcoholic product;
802          (e) a liquor warehouser; or
803          (f) a beer wholesaler.
804          (5) A person may not operate a public conveyance in this state without first obtaining a
805     public service permit under this title if that public conveyance allows a person to purchase or
806     consume an alcoholic product:
807          (a) on the public conveyance; or
808          (b) on the premises of a hospitality room located within a depot, terminal, or similar
809     facility at which a service is provided to a patron of the public conveyance.
810          Section 12. Section 32B-5-201 is amended to read:
811          32B-5-201. Application requirements for retail license.
812          (1) (a) Before a person may store, sell, offer for sale, furnish, or permit consumption of
813     an alcoholic product on licensed premises as a retail licensee, the person shall first obtain a
814     retail license issued by the commission, notwithstanding whether the person holds a local
815     license or a permit issued by a local authority.
816          (b) Violation of this Subsection (1) is a class B misdemeanor.
817          (2) To obtain a retail license under this title, a person shall submit to the department:
818          (a) a written application in a form prescribed by the department;
819          (b) a nonrefundable application fee in the amount specified in the relevant chapter or
820     part for the type of retail license for which the person is applying;
821          (c) an initial license fee:
822          (i) in the amount specified in the relevant chapter or part for the type of retail license
823     for which the person is applying; and
824          (ii) that is refundable if a retail license is not issued;
825          (d) written consent of the local authority, including, if applicable, consent for each
826     proposed sublicense;
827          (e) a copy of:
828          (i) every license the local authority requires, including the person's current business
829     license; and
830          (ii) if the person is applying for a principal license, the current business license for each
831     proposed sublicense, except if the local authority determines that the business license for a

832     proposed sublicense is included in the person's current business license;
833          (f) evidence of the proposed retail licensee's proximity to any community location, with
834     proximity requirements being governed by Section 32B-1-202;
835          (g) a bond as specified by Section 32B-5-204;
836          (h) a floor plan, and boundary map where applicable, of the premises of the retail
837     license and each, if any, accompanying sublicense, including any:
838          (i) consumption area; and
839          (ii) area where the person proposes to store, sell, offer for sale, or furnish an alcoholic
840     beverage;
841          (i) evidence that the retail licensee carries public liability insurance in an amount and
842     form satisfactory to the department;
843          (j) evidence that the retail licensee carries dramshop insurance coverage of at least:
844          (i) $1,000,000 per occurrence and $2,000,000 in the aggregate;
845          (ii) if the retail licensee is a hotel licensee or a resort licensee, $1,000,000 per
846     occurrence and $2,000,000 in the aggregate to cover both the principal license and all
847     accompanying sublicenses; or
848          (iii) if the retail licensee is an arena licensee, $10,000,000 per occurrence and
849     $20,000,000 in the aggregate to cover both the arena license and all accompanying
850     sublicenses[.];
851          (k) a signed consent form stating that the retail licensee will permit any authorized
852     representative of the commission, department, or any law enforcement officer to have
853     unrestricted right to enter:
854          (i) the premises of the retail licensee; and
855          (ii) if applicable, the premises of each of the retail licensee's accompanying
856     sublicenses;
857          (l) if the person is an entity, proper verification evidencing that a person who signs the
858     application is authorized to sign on behalf of the entity;
859          (m) a responsible alcohol service plan;
860          (n) evidence that each individual the person has hired to work as a retail manager, as
861     defined in Section 32B-1-701, has completed the alcohol training and education seminar as
862     required under Chapter 1, Part 7, Alcohol Training and Education Act; and

863          (o) any other information the commission or department may require.
864          (3) The commission may not issue a retail license to a person who:
865          (a) is disqualified under Section 32B-1-304; or
866          (b) is not lawfully present in the United States.
867          (4) Unless otherwise provided in the relevant chapter or part for the type of retail
868     license for which the person is applying, the commission may not issue a retail license to a
869     person if the proposed licensed premises does not meet the proximity requirements of Section
870     32B-1-202.
871          (5) The commission may not deny an application for a retail license, an application for
872     a conditional retail license under Section 32B-5-205, or an application for a sublicense under
873     Chapter 8d, Sublicense Act, if:
874          (a) the applicant satisfies the requirements of this chapter; and
875          (b) for a retail license or a conditional retail license, granting the retail license or the
876     conditional retail license would not cause the commission to exceeded the maximum number
877     of licenses of that retail license type that the commission is authorized to issue under this
878     chapter.
879          Section 13. Section 32B-5-304 is amended to read:
880          32B-5-304. Portions in which alcoholic product may be sold.
881          (1) (a) A retail licensee may sell, offer for sale, or furnish spirituous liquor that is a
882     primary spirituous liquor only in a quantity that does not exceed 1.5 ounces per beverage
883     dispensed through a calibrated metered dispensing system approved by the department in
884     accordance with commission rules adopted under this title.
885          (b) A retail license is not required to dispense spirituous liquor through a calibrated
886     metered dispensing system if the spirituous liquor is:
887          (i) a secondary flavoring ingredient;
888          (ii) used as a flavoring on a dessert; [or]
889          (iii) used to set aflame a food dish, drink, or dessert[.]; or
890          (iv) in a beverage that:
891          (A) is served to a patron in the original, sealed container;
892          (B) is not more than 12 ounces;
893          (C) contains no more than 10% alcohol by volume or 8% by weight; and

894          (D) is in a container that has the alcohol by volume percentage on the front label and in
895     a font that measures at least three millimeters high.
896          (c) A retail licensee that dispenses spirituous liquor that is a secondary flavoring
897     ingredient shall:
898          (i) designate a location where the retail licensee stores secondary flavoring ingredients
899     on the floor plan the retail licensee submits to the department; and
900          (ii) clearly and conspicuously label each secondary flavoring ingredient's container
901     "flavorings".
902          (d) (i) A patron may have no more than 2.5 ounces of spirituous liquor at a time.
903          (ii) Subsection (1)(d)(i) does not apply to a beverage described in Subsection (1)(b)(iv).
904          (2) (a) (i) A retail licensee may sell, offer for sale, or furnish wine by the glass or in an
905     individual portion that does not exceed 5 ounces per glass or individual portion.
906          (ii) A retail licensee may sell, offer for sale, or furnish an individual portion of wine to
907     a patron in more than one glass if the total amount of wine does not exceed 5 ounces.
908          (b) (i) A retail licensee may sell, offer for sale, or furnish wine in a container not
909     exceeding 1.5 liters at a price fixed by the commission to a table of four or more persons.
910          (ii) A retail licensee may sell, offer for sale, or furnish wine in a container not to
911     exceed 750 milliliters at a price fixed by the commission to a table of less than four persons.
912          (c) Notwithstanding Subsections (2)(a) and (b), a retail licensee may sell, offer for sale,
913     or furnish hard cider that contains no more than 5% of alcohol by volume in a sealed container
914     not to exceed 16 ounces.
915          (3) A retail licensee may sell, offer for sale, or furnish heavy beer in an original
916     container at a price fixed by the commission, except that the original container may not exceed
917     one liter.
918          (4) A retail licensee may sell, offer for sale, or furnish a flavored malt beverage in an
919     original container at a price fixed by the commission, except that the original container may not
920     exceed one liter.
921          (5) (a) (i) Subject to Subsection (5)(a)(ii), a retail licensee may sell, offer for sale, or
922     furnish beer for on-premise consumption:
923          (A) in an open original container; and
924          (B) in a container on draft.

925          (ii) A retail licensee may not sell, offer for sale, or furnish beer under Subsection
926     (5)(a)(i):
927          (A) in a size of container that exceeds two liters; or
928          (B) to an individual patron in a size of container that exceeds one liter.
929          (b) A retail licensee may sell, offer for sale, or furnish beer for off-premise
930     consumption:
931          (i) in a sealed container; and
932          (ii) in a size of container that does not exceed two liters.
933          (c) A retail licensee may sell, offer for sale, or furnish a flight of beer to an individual
934     patron if the total amount of beer does not exceed 16 ounces.
935          Section 14. Section 32B-6-203 is amended to read:
936          32B-6-203. Commission's power to issue full-service restaurant license.
937          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
938     an alcoholic product on its premises as a full-service restaurant, the person shall first obtain a
939     full-service restaurant license from the commission in accordance with this part.
940          (2) The commission may issue a full-service restaurant license to establish full-service
941     restaurant licensed premises at places and in numbers the commission considers proper for the
942     storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises
943     operated as a full-service restaurant.
944          (3) Subject to Section 32B-1-201:
945          (a) the commission may not issue a total number of full-service restaurant licenses that
946     at any time exceeds the sum of:
947          (i) 30; and
948          (ii) the number determined by dividing the population of the state by [4,467;]:
949          (A) before July 1, 2024, 4,467;
950          (B) in fiscal year 2025, 4,281;
951          (C) in fiscal year 2026, 4,095;
952          (D) in fiscal year 2027, 3,909;
953          (E) in fiscal year 2028, 3,723;
954          (F) in fiscal year 2029, 3,537;
955          (G) in fiscal year 2030, 3,351; and

956          (H) in fiscal year 2031, and in each fiscal year thereafter, 3,167;
957          (b) the commission may issue a seasonal full-service restaurant license in accordance
958     with Section 32B-5-206; and
959          (c) (i) if the location, design, and construction of a hotel may require more than one
960     full-service restaurant sales location within the hotel to serve the public convenience, the
961     commission may authorize the sale, offer for sale, or furnishing of an alcoholic product at as
962     many as three full-service restaurant locations within the hotel under one full-service restaurant
963     license if:
964          (A) the hotel has a minimum of 150 guest rooms; and
965          (B) the locations under the full-service restaurant license are:
966          (I) within the same hotel; and
967          (II) on premises that are managed or operated, and owned or leased, by the full-service
968     restaurant licensee; and
969          (ii) except for a hotel, a facility shall have a separate full-service restaurant license for
970     each full-service restaurant where an alcoholic product is sold, offered for sale, or furnished.
971          (4) Except as otherwise provided in Section 32B-1-202, the commission may not issue
972     a full-service restaurant license for premises that do not meet the proximity requirements of
973     Subsection 32B-1-202(2).
974          (5) To be licensed as a full-service restaurant, a person shall maintain at least 70% of
975     the restaurant's gross revenues from the sale of food, which does not include:
976          (a) mix for an alcoholic product; or
977          (b) a service charge.
978          Section 15. Section 32B-6-204 is amended to read:
979          32B-6-204. Specific licensing requirements for full-service restaurant license.
980          (1) To obtain a full-service restaurant license a person shall comply with Chapter 5,
981     Part 2, Retail Licensing Process.
982          (2) (a) A full-service restaurant license expires on October 31 of each year.
983          (b) To renew a person's full-service restaurant license, a person shall comply with the
984     renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
985     September 30.
986          (3) (a) The nonrefundable application fee for a full-service restaurant license is $330.

987          (b) (i) The initial license fee for a full-service restaurant license is $2,200.
988          (ii) The department shall prorate the $2,200 initial license fee for the period that begins
989     the day on which the initial license fee is paid and ends the day on which the full-service
990     restaurant license expires.
991          (c) The renewal fee for a full-service restaurant license is $1,650.
992          (4) The bond amount required for a full-service restaurant license is the penal sum of
993     $10,000.
994          Section 16. Section 32B-6-206 is amended to read:
995          32B-6-206. Master full-service restaurant license.
996          (1) (a) The commission may issue a master full-service restaurant license that
997     authorizes a person to store, sell, offer for sale, furnish, or allow the consumption of an
998     alcoholic product on premises at multiple locations as full-service restaurants if the person
999     applying for the master full-service restaurant license:
1000          (i) owns each of the full-service restaurants;
1001          (ii) except for the fee requirements, establishes to the satisfaction of the commission
1002     that each location of a full-service restaurant under the master full-service restaurant license
1003     separately meets the requirements of this part; and
1004          (iii) the master full-service restaurant license includes at least five full-service
1005     restaurant locations.
1006          (b) The person seeking a master full-service restaurant license shall designate which
1007     full-service restaurant locations the person seeks to have under the master full-service
1008     restaurant license.
1009          (c) A full-service restaurant location under a master full-service restaurant license is
1010     considered separately licensed for purposes of this title, except as provided in this section.
1011          (2) A master full-service restaurant license and each location designated under
1012     Subsection (1) are considered a single full-service restaurant license for purposes of Subsection
1013     32B-6-203(3)(a).
1014          (3) (a) A master full-service restaurant license expires on October 31 of each year.
1015          (b) To renew a person's master full-service restaurant license, a person shall comply
1016     with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
1017     September 30.

1018          (4) (a) The nonrefundable application fee for a master full-service restaurant license is
1019     $330.
1020          (b) (i) The initial license fee for a master full-service restaurant license is $5,000 plus a
1021     separate initial license fee for each newly licensed full-service restaurant [license] location
1022     under the master full-service restaurant license determined in accordance with Subsection
1023     32B-6-204(3)(b).
1024          (ii) The department [may] shall prorate the $5,000 initial license fee [based on the
1025     number of months out of a year the master full-service restaurant licensee is licensed before]
1026     for the period that begins the day on which the initial license fee is paid and ends the day on
1027     which the master full-service restaurant license expires.
1028          (c) To renew a master full-service restaurant license the master full-service restaurant
1029     licensee shall pay a separate renewal fee for each full-service [license] restaurant location under
1030     the master full-service restaurant license [determined] in accordance with Subsection
1031     32B-6-204(3)(c).
1032          (5) A new location may be added to a master full-service restaurant license after the
1033     master full-service restaurant license is issued if:
1034          (a) the master full-service restaurant licensee pays a nonrefundable application fee of
1035     $330; and
1036          (b) including payment of the initial license fee, the location separately meets the
1037     requirements of this part.
1038          (6) (a) A master full-service restaurant licensee shall notify the department of a change
1039     in the persons managing a location covered by a master full-service restaurant license:
1040          (i) immediately, if the management personnel is not management personnel at a
1041     location covered by the master full-service restaurant licensee at the time of the change; or
1042          (ii) within 30 days of the change, if the master full-service restaurant licensee is
1043     transferring management personnel from one location to another location covered by the master
1044     full-service restaurant licensee.
1045          (b) A location covered by a master full-service restaurant license shall keep the
1046     location's own records on the location's premises so that the department may audit the records.
1047          (c) A master full-service restaurant licensee may not transfer alcoholic products
1048     between different locations covered by the master full-service restaurant license.

1049          (7) If there is a violation of this title at a location covered by a master full-service
1050     restaurant license, the violation may result in disciplinary action in accordance with Chapter 3,
1051     Disciplinary Actions and Enforcement Act, against:
1052          (a) the single location under a master full-service restaurant license;
1053          (b) individual staff of the location under the master full-service restaurant license; or
1054          (c) a combination of persons or locations described in Subsections (7)(a) and (b).
1055          (8) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah
1056     Administrative Rulemaking Act, to establish how a person may apply for a master full-service
1057     restaurant license under this section.
1058          Section 17. Section 32B-6-302 is amended to read:
1059          32B-6-302. Definitions.
1060          As used in this part:
1061          (1) (a) "Dining area" means an area in the licensed premises of a limited-service
1062     restaurant licensee that is primarily used for the service and consumption of food by one or
1063     more patrons.
1064          (b) "Dining area" does not include a dispensing area.
1065          (2) (a) "Dispensing area" means an area in the licensed premises of a limited-service
1066     restaurant licensee where a dispensing structure is located and that:
1067          (i) is physically separated from the dining area and any waiting area by a structure or
1068     other barrier that prevents a patron seated in the dining area or a waiting area from viewing the
1069     dispensing of alcoholic product;
1070          (ii) except as provided in Subsection (2)(b), measures at least 10 feet from the dining
1071     area and any waiting area to the nearest edge of the dispensing structure; or
1072          (iii) is physically separated from the dining area and any waiting area by a permanent
1073     physical structure that complies with the provisions of Title 15A, State Construction and Fire
1074     Codes Act, and, to the extent allowed under Title 15A, State Construction and Fire Codes Act,
1075     measures:
1076          (A) at least 42 inches high; and
1077          (B) at least 60 inches from the inside edge of the barrier to the nearest edge of the
1078     dispensing structure.
1079          (b) "Dispensing area" does not include any area described in Subsection (2)(a)(ii) that

1080     is less than 10 feet from an area where alcoholic product is dispensed, but from which a patron
1081     seated at a table or counter cannot view the dispensing of alcoholic product.
1082          (3) "Small limited-service restaurant licensee" means a limited-service restaurant
1083     licensee [that has a grandfathered bar structure] whose dispensing area includes more than 45%
1084     of the available seating for patrons on the licensed premises, excluding outdoor seating:
1085          (a) when measured in accordance with Subsection (2)(a)(ii); and
1086          (b) based on the licensee's floor plan on file with the department on July 1, 2017.
1087          (4) "Waiting area" includes a lobby.
1088          Section 18. Section 32B-6-304 is amended to read:
1089          32B-6-304. Specific licensing requirements for limited-service restaurant license.
1090          (1) To obtain a limited-service restaurant license a person shall comply with Chapter 5,
1091     Part 2, Retail Licensing Process.
1092          (2) (a) A limited-service restaurant license expires on October 31 of each year.
1093          (b) To renew a person's limited-service restaurant license, a person shall comply with
1094     the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
1095     September 30.
1096          (3) (a) The nonrefundable application fee for a limited-service restaurant license is
1097     $330.
1098          (b) (i) The initial license fee for a limited-service restaurant license is $1,275.
1099          (ii) The department shall prorate the $1,275 initial license fee for the period that begins
1100     the day on which the initial license fee is paid and ends the day on which the limited-service
1101     restaurant license expires.
1102          (c) The renewal fee for a limited-service restaurant license is $750.
1103          (4) The bond amount required for a limited-service restaurant license is the penal sum
1104     of $5,000.
1105          Section 19. Section 32B-6-306 is amended to read:
1106          32B-6-306. Master limited-service restaurant license.
1107          (1) (a) The commission may issue a master limited-service restaurant license that
1108     authorizes a person to store, sell, offer for sale, furnish, or allow the consumption of an
1109     alcoholic product on premises at multiple locations as limited-service restaurants if the person
1110     applying for the master limited-service restaurant license:

1111          (i) owns each of the limited-service restaurants;
1112          (ii) except for the fee requirements, establishes to the satisfaction of the commission
1113     that each location of a limited-service restaurant under the master limited-service restaurant
1114     license separately meets the requirements of this part; and
1115          (iii) the master limited-service restaurant includes at least five limited-service
1116     restaurant locations.
1117          (b) The person seeking a master limited-service restaurant license shall designate
1118     which limited-service restaurant locations the person seeks to have under the master
1119     limited-service restaurant license.
1120          (c) A limited-service restaurant location under a master limited-service restaurant
1121     license is considered separately licensed for purposes of this title, except as provided in this
1122     section.
1123          (2) A master limited-service restaurant license and each location under Subsection (1)
1124     are considered a single limited-service restaurant license for purposes of Subsection
1125     32B-6-303(3)(a).
1126          (3) (a) A master limited-service restaurant license expires on October 31 of each year.
1127          (b) To renew a person's master limited-service restaurant license, a person shall comply
1128     with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
1129     September 30.
1130          (4) (a) The nonrefundable application fee for a master limited-service restaurant license
1131     is $330.
1132          (b) (i) The initial license fee for a master limited-service restaurant license is $5,000
1133     plus a separate initial license fee for each newly licensed limited-service restaurant license
1134     under the master limited-service restaurant license determined in accordance with Subsection
1135     32B-6-304(3)(b).
1136          (ii) The department shall prorate the $5,000 initial license fee for the period that begins
1137     the day on which the initial license fee is paid and ends the day on which the master
1138     limited-service restaurant license expires.
1139          (c) The renewal fee for a master limited-service restaurant license is $500 plus a
1140     separate renewal fee for each limited-service license under the master limited-service restaurant
1141     license determined in accordance with Subsection 32B-6-304(3)(c).

1142          (5) A new location may be added to a master limited-service restaurant license after the
1143     master limited-service restaurant license is issued if:
1144          (a) the master limited-service restaurant licensee pays a nonrefundable application fee
1145     of $330; and
1146          (b) including payment of the initial license fee, the location separately meets the
1147     requirements of this part.
1148          (6) (a) A master limited-service restaurant licensee shall notify the department of a
1149     change in the persons managing a location covered by a master limited-service restaurant
1150     license:
1151          (i) immediately, if the management personnel is not management personnel at a
1152     location covered by the master limited-service restaurant licensee at the time of the change; or
1153          (ii) within 30 days of the change, if the master limited-service restaurant licensee is
1154     transferring management personnel from one location to another location covered by the master
1155     limited-service restaurant licensee.
1156          (b) A location covered by a master limited-service restaurant license shall keep its own
1157     records on its premises so that the department may audit the records.
1158          (c) A master limited-service restaurant licensee may not transfer alcoholic products
1159     between different locations covered by the master limited-service restaurant license.
1160          (7) (a) If there is a violation of this title at a location covered by a master
1161     limited-service restaurant license, the violation may result in disciplinary action in accordance
1162     with Chapter 3, Disciplinary Actions and Enforcement Act, against:
1163          (i) the single location under a master limited-service restaurant license;
1164          (ii) individual staff of the location under the master limited-service restaurant license;
1165     or
1166          (iii) a combination of persons or locations described in Subsections (7)(a)(i) and (ii).
1167          (b) In addition to disciplinary action under Subsection (7)(a), disciplinary action in
1168     accordance with Chapter 3, Disciplinary Actions and Enforcement Act, may be taken against a
1169     master limited-service restaurant licensee or individual staff of the master limited-service
1170     restaurant licensee if during a period beginning on November 1 and ending October 31:
1171          (i) at least 25% of the locations covered by the master limited-service restaurant license
1172     have been found by the commission to have committed a serious or grave violation of this title,

1173     as defined by rule made by the commission; or
1174          (ii) at least 50% of the locations covered by the master limited-service restaurant
1175     license have been found by the commission to have violated this title.
1176          (8) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah
1177     Administrative Rulemaking Act, to establish how a person may apply for a master
1178     limited-service restaurant license under this section.
1179          Section 20. Section 32B-6-403 is amended to read:
1180          32B-6-403. Commission's power to issue bar establishment license.
1181          (1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of
1182     an alcoholic product on the person's premises as a bar establishment licensee, the person shall
1183     first obtain a bar establishment license from the commission in accordance with this part.
1184          (2) The commission may issue a bar establishment license to establish bar
1185     establishment licensed premises at places and in numbers the commission considers proper for
1186     the storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on
1187     premises operated by a bar establishment licensee.
1188          (3) Subject to Section 32B-1-201:
1189          (a) the commission may not issue a total number of bar establishment licenses that at
1190     any time exceeds the sum of:
1191          (i) 15; and
1192          (ii) the number determined by dividing the population of the state by [10,200;]:
1193          (A) before fiscal July 1, 2024, 10,200;
1194          (B) in fiscal year 2025, 9,778;
1195          (C) in fiscal year 2026, 9,356;
1196          (D) in fiscal year 2027, 8,934;
1197          (E) in fiscal year 2028, 8,512;
1198          (F) in fiscal year 2029, 8,090;
1199          (G) in fiscal year 2030, 7,668; and
1200          (H) in fiscal year 2031, and in each fiscal year thereafter, 7,246;
1201          (b) the commission may issue a seasonal bar establishment license in accordance with
1202     Section 32B-5-206 to a bar licensee;
1203          (c) the commission may authorize as many as three bar establishment license locations

1204     within a hotel under one bar establishment license if:
1205          (i) the location, design, and construction of the hotel requires more than one bar license
1206     location within the hotel to serve the public convenience;
1207          (ii) the hotel has a minimum of 150 guest rooms;
1208          (iii) all locations under the bar establishment license are:
1209          (A) within the same hotel; and
1210          (B) on premises that are managed or operated, and owned or leased, by the bar
1211     establishment licensee;
1212          (d) the commission may authorize up to five dispensing [structures] locations under
1213     one equity license if the locations under the equity license:
1214          (i) are connected by a private roadway to which the equity licensee, each member of
1215     the equity licensee, and each guest has a legal right of access; and
1216          (ii) are located on premises managed or operated, and owned or leased, by the equity
1217     licensee;
1218          (e) except for a facility operating in accordance with Subsection (3)(d) or a hotel, a
1219     facility shall have a separate bar establishment license for each bar establishment license
1220     location where an alcoholic product is sold, offered for sale, or furnished;
1221          (f) when a business establishment undergoes a change of ownership, the commission
1222     may issue a bar establishment license to the new owner of the business establishment
1223     notwithstanding that there is no bar establishment license available under Subsection (3)(a) if:
1224          (i) the primary business activity at the business establishment before and after the
1225     change of ownership is not the sale, offer for sale, or furnishing of an alcoholic product;
1226          (ii) before the change of ownership there are two or more licensed premises on the
1227     business establishment that operate under a retail license, with at least one of the retail licenses
1228     being a bar establishment license;
1229          (iii) subject to Subsection (3)(g) the licensed premises of the bar establishment license
1230     issued under this Subsection (3)(f) is at the same location where the bar establishment license
1231     licensed premises was located before the change of ownership; and
1232          (iv) the person who is the new owner of the business establishment qualifies for the bar
1233     establishment license, except for there being no bar establishment license available under
1234     Subsection (3)(a); and

1235          (g) if a bar establishment licensee of a bar establishment license issued under
1236     Subsection (3)(f) requests a change of location, the bar establishment licensee may retain the
1237     bar establishment license after the change of location only if on the day on which the bar
1238     establishment licensee seeks a change of location a bar establishment license is available under
1239     Subsection (3)(a).
1240          Section 21. Section 32B-6-405 is amended to read:
1241          32B-6-405. Specific licensing requirements for bar establishment license.
1242          (1) To obtain a bar establishment license, in addition to complying with Chapter 5, Part
1243     2, Retail Licensing Process, a person shall submit with the written application:
1244          (a) (i) a statement as to whether the person is seeking to qualify as:
1245          (A) an equity licensee;
1246          (B) a fraternal licensee;
1247          (C) a dining club licensee; or
1248          (D) a bar licensee; and
1249          (ii) evidence that the person meets the requirements for the type of bar establishment
1250     license for which the person is applying;
1251          (b) evidence that the person operates a premises where a variety of food is prepared
1252     and served in connection with dining accommodations; and
1253          (c) if the person is applying for an equity license or fraternal license, a copy of the
1254     entity's bylaws or house rules, and an amendment to those records.
1255          (2) The commission may refuse to issue a bar establishment license to a person for an
1256     equity license or fraternal license if the commission determines that a provision of the person's
1257     bylaws or house rules, or amendments to those records is not:
1258          (a) reasonable; and
1259          (b) consistent with:
1260          (i) the declared nature and purpose of the bar establishment licensee; and
1261          (ii) the purposes of this part.
1262          (3) (a) A bar establishment license expires on June 30 of each year.
1263          (b) To renew a bar establishment license, a person shall comply with the requirements
1264     of Chapter 5, Part 2, Retail Licensing Process, by no later than May 31.
1265          (4) (a) The nonrefundable application fee for a bar establishment license is $300.

1266          (b) (i) The initial license fee for a bar establishment license is $2,750.
1267          (ii) The department shall prorate the $2,750 initial license fee based on the number of
1268     months out of a year the bar establishment licensee is licensed before the day on which the bar
1269     establishment license expires.
1270          (c) The renewal fee for a bar establishment license is $2,000.
1271          (5) The bond amount required for a bar establishment license is the penal sum of
1272     $10,000.
1273          Section 22. Section 32B-6-504 is amended to read:
1274          32B-6-504. Specific licensing requirements for airport lounge license.
1275          (1) To obtain an airport lounge license, in addition to complying with Chapter 5, Part
1276     2, Retail Licensing Process, a person shall submit with the written application:
1277          (a) both the written consent of the local authority and the written consent of the airport
1278     authority; and
1279          (b) a copy of the sign proposed to be used by the airport lounge licensee on its licensed
1280     premises to inform the public that alcoholic products are sold and consumed on the licensed
1281     premises.
1282          (2) (a) An airport lounge license expires on October 31 of each year.
1283          (b) To renew a person's airport lounge license, a person shall comply with the renewal
1284     requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
1285          (3) (a) The nonrefundable application fee for an airport lounge license is $300.
1286          (b) (i) The initial license fee for an airport lounge license is $8,000.
1287          (ii) The department shall prorate the $8,000 initial license fee for the period that begins
1288     the day on which the initial license fee is paid and ends the day on which the airport lounge
1289     license expires.
1290          (c) The renewal fee for an airport lounge license is $6,000.
1291          (4) The bond amount required for an airport lounge license is the penal sum of
1292     $10,000.
1293          (5) An airport lounge license is not subject to the proximity requirements of Section
1294     32B-1-202.
1295          Section 23. Section 32B-6-604 is amended to read:
1296          32B-6-604. Specific licensing requirements for an on-premise banquet license.

1297          (1) To obtain an on-premise banquet license a person shall comply with Chapter 5, Part
1298     2, Retail Licensing Process.
1299          (2) (a) An on-premise banquet license expires on October 31 of each year.
1300          (b) To renew a person's on-premise banquet license, a person shall comply with the
1301     requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
1302          (3) (a) The nonrefundable application fee for an on-premise banquet license is $300.
1303          (b) (i) The initial license fee for an on-premise banquet license is $750.
1304          (ii) The department shall prorate the $750 initial license fee for the period that begins
1305     the day on which the initial license fee is paid and ends the day on which the on-premise
1306     banquet license expires.
1307          (c) The renewal fee for an on-premise banquet license is $750.
1308          (4) The bond amount required for an on-premise banquet license is the penal sum of
1309     $10,000.
1310          (5) Notwithstanding the other provisions of this part, if an applicant is a state agency or
1311     political subdivision of the state it is not required to:
1312          (a) pay an application fee, initial license fee, or renewal fee;
1313          (b) obtain the written consent of the local authority;
1314          (c) submit a copy of the applicant's current business license; or
1315          (d) post a bond as specified by Section 32B-5-204.
1316          (6) Notwithstanding Subsection 32B-5-303(3), the department may approve an
1317     additional location in or on the licensed premises of an on-premise banquet licensee from
1318     which the on-premise banquet licensee may store, sell, offer for sale, furnish, or allow the
1319     consumption of an alcoholic product that is not included in its original application only:
1320          (a) upon proper application by an on-premise banquet licensee; and
1321          (b) in accordance with guidelines approved by the commission.
1322          Section 24. Section 32B-6-605 is amended to read:
1323          32B-6-605. Specific operational requirements for on-premise banquet license.
1324          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
1325     Requirements, an on-premise banquet licensee and staff of the on-premise banquet licensee
1326     shall comply with this section.
1327          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action

1328     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
1329          (i) an on-premise banquet licensee;
1330          (ii) individual staff of an on-premise banquet licensee; or
1331          (iii) both an on-premise banquet licensee and staff of the on-premise banquet licensee.
1332          (2) An on-premise banquet licensee shall comply with Subsections 32B-5-301(4) and
1333     (5) for the entire premises of the hotel, resort facility, sports center, convention center,
1334     performing arts facility, arena, or restaurant venue that is the basis for the on-premise banquet
1335     license.
1336          (3) (a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee
1337     shall provide the department with advance notice of a scheduled banquet in accordance with
1338     rules made by the commission.
1339          (b) Any of the following may conduct a random inspection of a banquet:
1340          (i) an authorized representative of the commission or the department; or
1341          (ii) a law enforcement officer.
1342          (4) (a) An on-premise banquet licensee is not subject to Subsection 32B-5-302(1), but
1343     shall make and maintain the records described in Subsection 32B-5-302(2) and the records the
1344     commission or department requires.
1345          (b) Section 32B-1-205 applies to a record required to be made or maintained in
1346     accordance with this Subsection (4).
1347          (5) (a) Except as otherwise provided in this title, an on-premise banquet licensee may
1348     sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption at the
1349     location of the banquet.
1350          (b) [Except as provided in Subsection 32B-5-307(4),] Notwithstanding Section
1351     32B-5-307 and except as otherwise provided in this title:
1352          (i) [a host of a banquet, a patron, or] a person at a banquet other than the on-premise
1353     banquet licensee or staff of the on-premise banquet licensee, may not remove an alcoholic
1354     product from the premises of the banquet[.]; and
1355          [(c) Notwithstanding Subsections 32B-5-307(3) and (5) and except as provided in
1356     Subsection 32B-5-307(4),]
1357          (ii) a patron at a banquet may not bring an alcoholic product into or onto[, or remove
1358     an alcoholic product from,] the premises of [a] the banquet.

1359          (6) (a) An on-premise banquet licensee may not leave an unsold alcoholic product at
1360     the banquet following the conclusion of the banquet.
1361          (b) At the conclusion of a banquet, an on-premise banquet licensee shall:
1362          (i) destroy an opened and unused alcoholic product that is not saleable, under
1363     conditions established by the department; and
1364          (ii) return to the on-premise banquet licensee's approved locked storage area any:
1365          (A) opened and unused alcoholic product that is saleable; and
1366          (B) unopened container of an alcoholic product.
1367          (c) Except as provided in Subsection (6)(b) with regard to an open or sealed container
1368     of an alcoholic product not sold or consumed at a banquet, an on-premise banquet licensee:
1369          (i) shall store the alcoholic product in the on-premise banquet licensee's approved
1370     locked storage area; and
1371          (ii) may use the alcoholic product at more than one banquet.
1372          (7) Notwithstanding Section 32B-5-308, an on-premise banquet licensee may not
1373     employ a minor to sell, furnish, or dispense an alcoholic product in connection with the
1374     on-premise banquet licensee's banquet and room service activities.
1375          (8) An on-premise banquet licensee:
1376          (a) may provide room service in portions described in Section 32B-5-304;
1377          (b) may not sell, offer for sale, or furnish an alcoholic product at a banquet or in
1378     connection with room service any day during a period that:
1379          (i) begins at 1 a.m.; and
1380          (ii) ends at 9:59 a.m.; and
1381          (c) notwithstanding Section 32B-5-305, may provide as room service one alcoholic
1382     product free of charge per guest reservation, per guest room, if the alcoholic product:
1383          (i) is not a spirituous liquor; and
1384          (ii) is in an unopened container not to exceed 750 milliliters.
1385          (9) (a) Subject to the other provisions of this Subsection (9), a patron may not have
1386     more than two alcoholic products of any kind at a time before the patron.
1387          (b) A patron may not have more than one spirituous liquor drink at a time before the
1388     patron.
1389          (c) An individual portion of wine is considered to be one alcoholic product under

1390     Subsection (9)(a).
1391          (10) (a) An on-premise banquet licensee shall supervise and direct a person involved in
1392     the sale, offer for sale, or furnishing of an alcoholic product.
1393          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
1394     shall complete an alcohol training and education seminar.
1395          (11) A staff person of an on-premise banquet licensee shall remain at the banquet at all
1396     times when an alcoholic product is sold, offered for sale, furnished, or consumed at the
1397     banquet.
1398          (12) (a) Room service of an alcoholic product to a guest room or privately owned
1399     dwelling unit of a hotel or resort facility shall be provided in person by staff of an on-premise
1400     banquet licensee only to an adult guest in the guest room or privately owned dwelling unit.
1401          (b) An alcoholic product may not be left outside a guest room or privately owned
1402     dwelling unit for retrieval by a guest or resident.
1403          (13) An on-premise banquet licensee may not maintain a minibar.
1404          Section 25. Section 32B-6-702 is amended to read:
1405          32B-6-702. Definitions.
1406          As used in this part:
1407          (1) "Commission-approved activity" means a leisure activity that:
1408          (a) the commission approves by rule made in accordance with Title 63G, Chapter 3,
1409     Utah Administrative Rulemaking Act; and
1410          (b) does not involve the use of a dangerous weapon.
1411          (2) (a) "Recreational amenity" means:
1412          (i) a billiard parlor;
1413          (ii) a pool parlor;
1414          (iii) a bowling facility;
1415          (iv) a golf course;
1416          (v) miniature golf;
1417          (vi) a golf driving range;
1418          (vii) a tennis club;
1419          (viii) a sports facility that hosts professional sporting events and has a seating capacity
1420     equal to or greater than [6,500] 5,000;

1421          (ix) a concert venue that has a seating capacity equal to or greater than [6,500] 5,000;
1422          (x) one of the following if owned by a government agency:
1423          (A) a convention center;
1424          (B) a fair facility;
1425          (C) an equestrian park;
1426          (D) a theater; or
1427          (E) a concert venue;
1428          (xi) an amusement park:
1429          (A) with one or more permanent amusement rides; and
1430          (B) located on at least 50 acres;
1431          (xii) a ski resort;
1432          (xiii) a venue for live entertainment if the venue:
1433          (A) is not regularly open for more than five hours on any day;
1434          (B) is operated so that food is available whenever beer is sold, offered for sale, or
1435     furnished at the venue; and
1436          (C) is operated so that no more than 15% of its total annual receipts are from the sale
1437     of beer;
1438          (xiv) concessions operated within the boundary of a park administered by the:
1439          (A) Division of State Parks; or
1440          (B) National Parks Service;
1441          (xv) a facility or venue that is a recreational amenity for a person licensed under this
1442     part before May 12, 2020;
1443          (xvi) a venue for karaoke; or
1444          (xvii) an enterprise developed around a commission-approved activity.
1445          (b) "Recreational amenity" does not include an item described in Subsection (2)(a), if
1446     the item is tangential to an enterprise or activity that is not included in Subsection (2)(a).
1447          Section 26. Section 32B-6-705 is amended to read:
1448          32B-6-705. Specific licensing requirements for on-premise beer retailer license.
1449          (1) To obtain an on-premise beer retailer license a person shall comply with Chapter 5,
1450     Part 2, Retail Licensing Process, except that an on-premise beer retailer is required to carry
1451     dramshop insurance coverage in accordance with Section 32B-5-201 only if the on-premise

1452     beer retailer sells more than $5,000 of beer annually.
1453          (2) (a) An on-premise beer retailer license expires on the last day of February each
1454     year.
1455          (b) To renew a person's on-premise beer retailer license, a person shall comply with the
1456     renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than January
1457     31.
1458          (3) (a) The nonrefundable application fee for an on-premise beer retailer license is
1459     $300.
1460          (b) (i) (A) The initial license fee for an on-premise beer retailer license that is not a
1461     tavern is $300.
1462          (B) The department shall prorate the $300 initial license fee for the period that begins
1463     the day on which the initial license fee is paid and ends the day on which the on-premise beer
1464     retailer license expires.
1465          (ii) (A) The initial license fee for an on-premise beer retailer license that is a tavern is
1466     $1,500.
1467          (B) The department shall prorate the $1,500 initial license fee for the period that begins
1468     the day on which the initial license fee is paid and ends the day on which the on-premise beer
1469     retailer license expires.
1470          (c) (i) The renewal fee for an on-premise beer retailer license that is not a tavern is
1471     $350.
1472          (ii) The renewal fee for an on-premise beer retailer license that is a tavern is $1,250.
1473          (4) The bond amount required for an on-premise beer retailer license is the penal sum
1474     of $5,000.
1475          (5) Notwithstanding the other provisions of this part, if an applicant is a state agency or
1476     political subdivision of the state it is not required to:
1477          (a) pay an application fee, initial license fee, or renewal fee;
1478          (b) obtain the written consent of the local authority;
1479          (c) submit a copy of the applicant's current business license; or
1480          (d) post a bond as specified by Section 32B-5-204.
1481          Section 27. Section 32B-6-804 is amended to read:
1482          32B-6-804. Specific licensing requirements for reception center license.

1483          (1) To obtain a reception center license a person shall comply with Chapter 5, Part 2,
1484     Retail Licensing Process.
1485          (2) (a) A reception center license expires on October 31 of each year.
1486          (b) To renew a person's reception center license, a person shall comply with the
1487     renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
1488     September 30.
1489          (3) (a) The nonrefundable application fee for a reception center license is $300.
1490          (b) (i) The initial license fee for a reception center license is $750.
1491          (ii) The department shall prorate the $750 initial license fee for the period that begins
1492     the day on which the initial license fee is paid and ends the day on which the reception center
1493     license expires.
1494          (c) The renewal fee for a reception center license is $750.
1495          (4) The bond amount required for a reception center license is the penal sum of
1496     $10,000.
1497          Section 28. Section 32B-6-902 is amended to read:
1498          32B-6-902. Definitions.
1499          (1) As used in this part:
1500          (a) (i) "Dining area" means an area in the licensed premises of a beer-only restaurant
1501     licensee that is primarily used for the service and consumption of food by one or more patrons.
1502          (ii) "Dining area" does not include a dispensing area.
1503          (b) (i) "Dispensing area" means an area in the licensed premises of a beer-only
1504     restaurant licensee where a dispensing structure is located and that:
1505          (A) is physically separated from the dining area and any waiting area by a structure or
1506     other barrier that prevents a patron seated in the dining area or a waiting area from viewing the
1507     dispensing of beer;
1508          (B) except as provided in Subsection (1)(b)(ii), measures at least 10 feet from the
1509     dining area and any waiting area to the nearest edge of the dispensing structure; or
1510          (C) is physically separated from the dining area and any waiting area by a permanent
1511     physical structure that complies with the provisions of Title 15A, State Construction and Fire
1512     Codes Act, and, to the extent allowed under Title 15A, State Construction and Fire Codes Act,
1513     measures at least 42 inches high, and at least 60 inches from the inside edge of the barrier to

1514     the nearest edge of the dispensing structure.
1515          (ii) "Dispensing area" does not include any area described in Subsection (1)(b)(i)(B)
1516     that is less than 10 feet from an area where beer is dispensed, but from which a patron seated at
1517     a table or counter cannot view the dispensing of beer.
1518          (c) "Small beer-only restaurant licensee" means a beer-only restaurant licensee [that
1519     has a grandfathered bar structure] whose dispensing area includes more than 45% of the
1520     available seating for patrons on the licensed premises, excluding outdoor seating:
1521          (i) when measured in accordance with Subsection (1)(b)(i)(B); and
1522          (ii) based on the licensee's floor plan on file with the department on July 1, 2017.
1523          (d) "Waiting area" includes a lobby.
1524          Section 29. Section 32B-6-904 is amended to read:
1525          32B-6-904. Specific licensing requirements for beer-only restaurant license.
1526          (1) To obtain a beer-only restaurant license a person shall comply with Chapter 5, Part
1527     2, Retail Licensing Process.
1528          (2) (a) A beer-only restaurant license expires the last day of February of each year.
1529          (b) To renew a person's beer-only restaurant license, a person shall comply with the
1530     renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than January
1531     31.
1532          (3) (a) The nonrefundable application fee for a beer-only restaurant license is $330.
1533          (b) (i) The initial license fee for a beer-only restaurant license is $825.
1534          (ii) The department shall prorate the $825 initial license fee for the period that begins
1535     the day on which the initial license fee is paid and ends the day on which the beer-only license
1536     expires.
1537          (c) The renewal fee for a beer-only restaurant license is $605.
1538          (4) The bond amount required for a beer-only restaurant license is the penal sum of
1539     $5,000.
1540          Section 30. Section 32B-6-1004 is amended to read:
1541          32B-6-1004. Specific licensing requirements for a hospitality amenity license.
1542          (1) To obtain a hospitality amenity license a person shall comply with Chapter 5, Part
1543     2, Retail Licensing Process.
1544          (2) (a) A hospitality amenity license expires on October 31 of each year.

1545          (b) To renew a person's hospitality amenity license, a person shall comply with the
1546     renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than
1547     September 30.
1548          (3) (a) The nonrefundable application fee for a hospitality amenity license is $330.
1549          (b) (i) The initial license fee for a hospitality amenity license is $2,000.
1550          (ii) The department shall prorate the $2,000 initial license fee for the period that begins
1551     the day on which the initial license fee is paid and ends the day on which the hospitality
1552     amenity license expires.
1553          (c) The renewal fee for a hospitality amenity license is $1,000.
1554          (4) The bond amount required for a hospitality amenity license is the penal sum of
1555     $10,000.
1556          (5) Notwithstanding Subsection 32B-5-303(3), the commission may approve an
1557     additional location in or on the licensed premises of a hospitality amenity licensee from which
1558     the hospitality amenity licensee may store, sell, offer for sale, furnish, or allow the
1559     consumption of an alcoholic product that is not included in the person's original application
1560     only:
1561          (a) upon proper application by a hospitality amenity licensee; and
1562          (b) in accordance with guidelines the commission approves.
1563          Section 31. Section 32B-7-202 is amended to read:
1564          32B-7-202. General operational requirements for off-premise beer retailer.
1565          (1) (a) An off-premise beer retailer or staff of the off-premise beer retailer shall comply
1566     with the provisions of this title and any applicable rules made by the commission.
1567          (b) Failure to comply with this section may result in a suspension or revocation of a
1568     local license and, on or after July 1, 2018, disciplinary action in accordance with Chapter 3,
1569     Disciplinary Actions and Enforcement Act.
1570          (2) (a) (i) An off-premise beer retailer may not purchase, acquire, possess for the
1571     purpose of resale, or sell beer, except beer that the off-premise beer retailer lawfully purchases
1572     from:
1573          (A) a beer wholesaler licensee; or
1574          (B) a small brewer that manufactures the beer.
1575          (ii) A violation of Subsection (2)(a) is a class A misdemeanor.

1576          (b) (i) If an off-premise beer retailer purchases beer under this Subsection (2) from a
1577     beer wholesaler licensee, the off-premise beer retailer shall purchase beer only from a beer
1578     wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area
1579     in which the off-premise beer retailer is located, unless an alternate wholesaler is authorized by
1580     the department to sell to the off-premise beer retailer as provided in Section 32B-13-301.
1581          (ii) A violation of Subsection (2)(b) is a class B misdemeanor.
1582          (3) An off-premise beer retailer may not possess, sell, offer for sale, or furnish beer in a
1583     container larger than two liters.
1584          (4) (a) Staff of an off-premise beer retailer, while on duty, may not:
1585          (i) consume an alcoholic product; or
1586          (ii) be intoxicated.
1587          (b) A minor may not sell beer on the licensed premises of an off-premise beer retailer
1588     unless:
1589          (i) the sale is done under the supervision of a person 21 years old or older who is on the
1590     licensed premises; and
1591          (ii) the minor is at least 16 years old.
1592          (5) An off-premise beer retailer may not sell, offer for sale, or furnish an alcoholic
1593     product to:
1594          (a) a minor;
1595          (b) a person actually, apparently, or obviously intoxicated;
1596          (c) a known interdicted person; or
1597          (d) a known habitual drunkard.
1598          (6) (a) Subject to the other provisions of this Subsection (6), an off-premise beer
1599     retailer shall:
1600          (i) display all beer accessible by and visible to a patron in no more than two locations
1601     on the retail sales floor, each of which is:
1602          (A) a display cabinet, cooler, aisle, floor display, or room where beer is the only
1603     beverage displayed; and
1604          (B) not adjacent to a display of nonalcoholic beverages, unless the location is a cooler
1605     with a door from which the nonalcoholic beverages are not accessible, or the beer is separated
1606     from the display of nonalcoholic beverages by a display of one or more nonbeverage products

1607     or another physical divider; and
1608          (ii) display a sign in the area described in Subsection (6)(a)(i) that:
1609          (A) is prominent;
1610          (B) is easily readable by a consumer;
1611          (C) meets the requirements for format established by the commission by rule; and
1612          (D) reads in print that is no smaller than .5 inches, bold type, "These beverages contain
1613     alcohol. Please read the label carefully."
1614          (b) Notwithstanding Subsection (6)(a), a nonalcoholic beer may be displayed with beer
1615     if the nonalcoholic beer is labeled, packaged, or advertised as a nonalcoholic beer.
1616          (c) The requirements of this Subsection (6) apply to beer notwithstanding that it is
1617     labeled, packaged, or advertised as:
1618          (i) a malt cooler; or
1619          (ii) a beverage that may provide energy.
1620          (d) A violation of this Subsection (6) is an infraction.
1621          (e) (i) Except as provided in Subsection (6)(e)(ii), the provisions of Subsection (6)(a)(i)
1622     apply on and after May 9, 2017.
1623          (ii) For a beer retailer that operates two or more off-premise beer retailers, the
1624     provisions of Subsection (6)(a)(i) apply on and after August 1, 2017.
1625          (7) (a) Staff of an off-premise beer retailer who directly supervises the sale of beer or
1626     who sells beer to a patron for consumption off the premises of the off-premise beer retailer
1627     shall wear a unique identification badge:
1628          (i) on the front of the staff's clothing;
1629          (ii) visible above the waist;
1630          (iii) bearing the staff's:
1631          (A) first or last name;
1632          (B) initials; or
1633          (C) unique identification in letters or numbers; and
1634          (iv) with the number or letters on the unique identification badge being sufficiently
1635     large to be clearly visible and identifiable while engaging in or directly supervising the retail
1636     sale of beer.
1637          (b) An off-premise beer retailer shall make and maintain a record of each current staff's

1638     unique identification badge assigned by the off-premise beer retailer that includes the staff's:
1639          (i) full name;
1640          (ii) address; and
1641          (iii) (A) driver license number; or
1642          (B) similar identification number.
1643          (c) An off-premise beer retailer shall make available a record required to be made or
1644     maintained under this Subsection (7) for immediate inspection by:
1645          (i) a peace officer;
1646          (ii) a representative of the local authority that issues the off-premise beer retailer
1647     license; or
1648          (iii) for an off-premise beer retailer state license, a representative of the commission or
1649     department.
1650          (d) A local authority may impose a fine of up to $250 against an off-premise beer
1651     retailer that does not comply or require its staff to comply with this Subsection (7).
1652          (8) (a) An off-premise beer retailer may sell, offer for sale, or furnish beer through a
1653     drive through window.
1654          (b) Subsection (8)(a) does not modify the display limitations and requirements
1655     described in Subsection (6).
1656          (9) An off-premise beer retailer may not on the licensed premises:
1657          (a) engage in or permit any form of:
1658          (i) gambling, as defined in Section 76-10-1101; or
1659          (ii) fringe gambling, as defined in Section 76-10-1101;
1660          (b) have any fringe gaming device, video gaming device, or gambling device or record
1661     as defined in Section 76-10-1101; or
1662          (c) engage in or permit a contest, game, gaming scheme, or gaming device that requires
1663     the risking of something of value for a return or for an outcome when the return or outcome is
1664     based upon an element of chance, excluding the playing of an amusement device that confers
1665     only an immediate and unrecorded right of replay not exchangeable for value.
1666          (10) An off-premise beer retailer may not knowingly allow a person on the licensed
1667     premises to, in violation of Title 58, Chapter 37, Utah Controlled Substances Act, or Chapter
1668     37a, Utah Drug Paraphernalia Act:

1669          (a) sell, distribute, possess, or use a controlled substance, as defined in Section
1670     58-37-2; or
1671          (b) use, deliver, or possess, with the intent to deliver, drug paraphernalia, as defined in
1672     Section 58-37a-3.
1673          (11) An off-premise beer retailer may not sell, offer for sale, or furnish a beer that is
1674     intended to be frozen and consumed in a manner other than as a beverage, including beer in the
1675     form of a freeze pop, popsicle, ice cream, or sorbet.
1676          Section 32. Section 32B-8-102 is amended to read:
1677          32B-8-102. Definitions.
1678          As used in this chapter:
1679          (1) "Boundary of a resort building" means the physical boundary of the real property
1680     reasonably related to a resort building and any structure or improvement to that land as
1681     determined by the commission.
1682          (2) "Designated conveyance area" means a route within a hotel or resort:
1683          (a) that connects one or more of the following:
1684          (i) the premises of a sublicensed bar;
1685          (ii) the premises of a sublicensed hospitality amenity area;
1686          (iii) a sublicensed banquet premises; or
1687          (iv) a guest's room; and
1688          (b) that does not begin, end, or pass through a pool area or other recreation area, a
1689     designated business center, or a sublicensed premises not described in Subsection (2)(a).
1690          [(2)] (3) "Dwelling" means a portion of a resort building:
1691          (a) owned by one or more individuals;
1692          (b) that is used or designated for use as a residence by one or more persons; and
1693          (c) that may be rented, loaned, leased, or hired out for a period of no longer than 30
1694     consecutive days by a person who uses it for a residence.
1695          [(3)] (4) "Engaged in the management of the resort" may be defined by the commission
1696     by rule.
1697          [(4)] (5) "Resident" means an individual who:
1698          (a) owns a dwelling located within a resort building; or
1699          (b) rents lodging accommodations for 30 consecutive days or less from:

1700          (i) an owner of a dwelling described in Subsection [(4)(a)] (5)(a); or
1701          (ii) the resort licensee.
1702          [(5)] (6) "Resort" means a location:
1703          (a) on which is located one resort building; and
1704          (b) that is affiliated with a ski area that physically touches the boundary of the resort
1705     building.
1706          [(6)] (7) "Resort building" means a building:
1707          (a) that is primarily operated to provide dwellings or lodging accommodations;
1708          (b) that has at least 150 units that consist of a dwelling or lodging accommodations;
1709          (c) that consists of at least 400,000 square feet:
1710          (i) including only the building itself; and
1711          (ii) not including areas such as above ground surface parking; and
1712          (d) of which at least 50% of the units described in Subsection [(6)(b)] (7)(b) consist of
1713     dwellings owned by a person other than the resort licensee.
1714          Section 33. Section 32B-8-201 is amended to read:
1715          32B-8-201. Commission's power to issue a resort license.
1716          (1) Before a person as a resort under a single license may store, sell, offer for sale,
1717     furnish, or allow the consumption of an alcoholic product on sublicense premises, the person
1718     shall first obtain a resort license from the commission in accordance with this part.
1719          (2) (a) The commission may issue to a person a resort license to allow the storage, sale,
1720     offer for sale, furnishing, and consumption of an alcoholic product in connection with a resort
1721     designated in the resort license if the person operates at least four sublicenses under the resort
1722     license.
1723          (b) A resort license shall:
1724          (i) consist of:
1725          (A) a general resort license; and
1726          (B) four or more sublicenses; and
1727          (ii) designate the boundary of the resort building, each sublicense, and each designated
1728     conveyance area.
1729          (c) This chapter does not prohibit an alcoholic product in or on the boundary of the
1730     resort building to the extent otherwise permitted by this title.

1731          (3) The commission may not issue a total number of resort licenses that at any time
1732     totals more than eight.
1733          Section 34. Section 32B-8-202 is amended to read:
1734          32B-8-202. Specific licensing requirements for resort license.
1735          (1) To obtain a resort license, in addition to complying with Chapter 5, Part 2, Retail
1736     Licensing Process, a person shall submit with the person's written application:
1737          (a) evidence:
1738          (i) of proximity of the resort building to any community location;
1739          (ii) that each proposed sublicensed premises is entirely within the boundaries of the
1740     resort building; and
1741          (iii) that the building designated in the application as the resort building qualifies as a
1742     resort building; [and]
1743          (b) a description and boundary map of the resort building[.];
1744          (c) a description, floor plan, and boundary map of each proposed designated
1745     conveyance area; and
1746          (d) a signed consent form stating that the resort licensee will permit any authorized
1747     representative of the commission or department, or any law enforcement officer, to have an
1748     unrestricted right to enter any proposed designated conveyance area.
1749          (2) (a) A resort license expires on October 31 of each year.
1750          (b) To renew a person's resort license, the person shall comply with the requirements of
1751     Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
1752          (3) (a) The nonrefundable application fee for a resort license is $300.
1753          (b) The initial license fee for a resort license is calculated as follows:
1754          (i) if four sublicenses are being applied for under the resort license, $10,000; or
1755          (ii) if more than four sublicenses are being applied for under the resort license, the sum
1756     of:
1757          (A) $10,000; and
1758          (B) $2,000 for each sublicense in excess of four sublicenses for which the person is
1759     applying.
1760          (c) The renewal fee for a resort license is $1,000 for each sublicense under the resort
1761     license.

1762          (4) (a) The bond amount required for a resort license is the penal sum of $25,000[.],
1763     covering each sublicense and each designated conveyance area under the resort license.
1764          (b) A resort licensee is not required to have a separate bond for each sublicense[,
1765     except that the aggregate of the bonds posted by the resort licensee shall cover each sublicense
1766     under the resort license] or each designated conveyance area.
1767          (5) The commission may not issue a resort license for a resort building that does not
1768     meet the proximity requirements of Section 32B-1-202.
1769          (6) In accordance with Subsection 32B-8d-103(4), a resort licensee may request to add
1770     a sublicense after the commission issues the resort licensee's resort license.
1771          (7) (a) A resort licensee may request to add a designated conveyance area after the
1772     commission issues the resort licensee's resort license.
1773          (b) If a resort licensee seeks to add a designated conveyance area under Subsection
1774     (7)(a), the resort licensee shall submit to the department:
1775          (i) the information and evidence described in Subsections (1)(a)(iii), (1)(c), and (1)(d);
1776     and
1777          (ii) if the resort licensee is an entity, proper verification evidencing that the person who
1778     signs the submission is authorized to sign on behalf of the entity.
1779          Section 35. Section 32B-8-401 is amended to read:
1780          32B-8-401. Specific operational requirements for resort license.
1781          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
1782     Requirements, a resort licensee, staff of the resort licensee, and a sublicensee or a person
1783     otherwise operating under a sublicense shall comply with this section.
1784          (b) Subject to Section 32B-8-502, failure to comply as provided in Subsection (1)(a)
1785     may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and
1786     Enforcement Act, against:
1787          (i) the resort licensee;
1788          (ii) individual staff of the resort licensee;
1789          (iii) a sublicensee or person otherwise operating under a sublicense of the resort
1790     licensee;
1791          (iv) individual staff of a sublicensee or person otherwise operating under a sublicense
1792     of the resort licensee; or

1793          (v) any combination of the persons listed in Subsections (1)(b)(i) through (iv).
1794          (2) (a) A resort licensee may not sell, offer for sale, or furnish an alcoholic product
1795     except:
1796          (i) on sublicensed premises;
1797          (ii) pursuant to a permit issued under this title;
1798          (iii) under a package agency agreement with the department, subject to Chapter 2, Part
1799     6, Package Agency; or
1800          (iv) through room service.
1801          (b) A resort licensee who sells, offers for sale, or furnishes an alcoholic product as
1802     provided in Subsection (2)(a), shall sell, offer for sale, or furnish the alcoholic product:
1803          (i) if on a sublicense premises, in accordance with the operational requirements
1804     described in Section 32B-8d-104;
1805          (ii) if under a permit issued under this title, in accordance with the operational
1806     requirements under the provisions applicable to the permit;
1807          (iii) if as a package agency, in accordance with the contract with the department and
1808     Chapter 2, Part 6, Package Agency; and
1809          (iv) if through room service, in accordance with Subsection [(5)] (6).
1810          (3) A resort licensee shall operate in a manner so that at least 70% of the annual
1811     aggregate of the gross receipts related to the sale of food or beverages for the resort license and
1812     each of the resort licensee's sublicenses is from the sale of food, not including:
1813          (a) mix for an alcoholic product; and
1814          (b) a charge in connection with the service of an alcoholic product.
1815          (4) (a) A resort licensee shall supervise and direct a person involved in the sale, offer
1816     for sale, or furnishing of an alcoholic product under a resort license.
1817          (b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product
1818     under a resort license shall complete the alcohol training and education seminar.
1819          (5) (a) A resort licensee shall:
1820          (i) in accordance with commission rule, establish and maintain signage that clearly
1821     identifies each designated conveyance area and conspicuously states that a patron may not take
1822     an alcoholic beverage beyond the designated conveyance area except as otherwise provided in
1823     this chapter;

1824          (ii) ensure that an alcoholic beverage is not left unattended in a designated conveyance
1825     area; and
1826          (iii) ensure that each patron complies with the requirements of Subsection
1827     32B-8d-104(5)(b)(ii).
1828          [(5)] (6) (a) [Room] Staff of the resort licensee shall provide room service of an
1829     alcoholic product to a lodging accommodation of a resort licensee [shall be provided] in person
1830     [by staff of the resort licensee] only to an adult occupant in the lodging accommodation.
1831          (b) An alcoholic product may not be left outside a lodging accommodation for retrieval
1832     by an occupant.
1833          Section 36. Section 32B-8b-102 is amended to read:
1834          32B-8b-102. Definitions.
1835          As used in this chapter:
1836          (1) "Boundary of a hotel" means the physical boundary of one or more contiguous
1837     parcels of real property owned or managed by the same person and on which a hotel is located.
1838          (2) "Designated conveyance area" means a route within a hotel or resort:
1839          (a) that connects one or more of the following:
1840          (i) the premises of a sublicensed bar;
1841          (ii) the premises of a sublicensed hospitality amenity area;
1842          (iii) a sublicensed banquet premises; or
1843          (iv) a guest's room; and
1844          (b) does not begin, end, or pass through a pool area or other recreation area, a
1845     designated business center, or a sublicensed premises not described in Subsection (2)(a).
1846          [(2)] (3) "Hotel" means one or more buildings that:
1847          (a) comprise a hotel, as defined by the commission;
1848          (b) are owned or managed by the same person or by a person who has a majority
1849     interest in or can direct or exercise control over the management or policy of the person who
1850     owns or manages any other building under the hotel license within the boundary of the hotel;
1851          (c) primarily operate to provide lodging accommodations;
1852          (d) have on-premise banquet space and provide on-premise banquet service within the
1853     boundary of the hotel meeting the requirements of this title;
1854          (e) have a restaurant or bar establishment within the boundary of the hotel meeting the

1855     requirements of this title; and
1856          (f) have at least 40 rooms as temporary sleeping accommodations for compensation.
1857          Section 37. Section 32B-8b-201 is amended to read:
1858          32B-8b-201. Commission's power to issue a hotel license.
1859          (1) Before a person as a hotel under a single license may store, sell, offer for sale,
1860     furnish, or allow the consumption of an alcoholic product on sublicense premises, the person
1861     shall first obtain a hotel license from the commission in accordance with this part.
1862          (2) (a) The commission may issue to a person a hotel license to allow the storage, sale,
1863     offer for sale, furnishing, and consumption of an alcoholic product in connection with a hotel
1864     designated in the hotel license if the person operates at least three sublicenses under the hotel
1865     license:
1866          (i) one of which is an on-premise banquet license; and
1867          (ii) one of which is:
1868          (A) a full-service restaurant sublicense;
1869          (B) a limited-service restaurant sublicense;
1870          (C) a beer-only restaurant sublicense; or
1871          (D) a bar establishment sublicense.
1872          (b) A hotel license shall:
1873          (i) consist of:
1874          (A) a general hotel license; and
1875          (B) three or more sublicenses meeting the requirements of Subsection (2)(a); and
1876          (ii) designate the boundary of the hotel [and], sublicenses[.], and each designated
1877     conveyance area.
1878          (c) This chapter does not prohibit an alcoholic product on the boundary of the hotel to
1879     the extent otherwise permitted by this title.
1880          (3) The commission may not issue a total number of hotel licenses that at any time
1881     totals more than 80.
1882          Section 38. Section 32B-8b-202 is amended to read:
1883          32B-8b-202. Specific licensing requirements for hotel license.
1884          (1) To obtain a hotel license, in addition to complying with Chapter 5, Part 2, Retail
1885     Licensing Process, a person shall submit with the person's written application:

1886          (a) evidence:
1887          (i) of proximity of each building under the hotel license to any community location;
1888          (ii) that each proposed sublicensed premises is entirely within the boundary of the
1889     hotel; and
1890          (iii) that each building designated in the application as a building under the hotel
1891     license qualifies to be under the hotel license; [and]
1892          (b) a description and boundary map of the hotel[.];
1893          (c) a description, floor plan, and boundary map of each proposed designated
1894     conveyance area; and
1895          (d) a signed consent form stating that the hotel licensee will permit any authorized
1896     representative of the commission or department, or any law enforcement officer, to have an
1897     unrestricted right to enter any proposed designated conveyance area.
1898          (2) (a) A hotel license expires on October 31 of each year.
1899          (b) To renew a person's hotel license, the person shall comply with the requirements of
1900     Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.
1901          (3) (a) The nonrefundable application fee for a hotel license is $500.
1902          (b) The initial license fee for a hotel license is calculated as follows:
1903          (i) if three sublicenses are being applied for under the hotel license, $5,000; or
1904          (ii) if more than three sublicenses are being applied for under the hotel license, the sum
1905     of:
1906          (A) $5,000; and
1907          (B) $2,000 for each sublicense in excess of three sublicenses for which the person is
1908     applying.
1909          (c) The renewal fee for a hotel license is $1,000 for each sublicense under the hotel
1910     license.
1911          (4) (a) The bond amount required for a hotel license is the penal sum of $10,000,
1912     covering each sublicense and each designated conveyance area under the hotel license.
1913          (b) A hotel licensee is not required to have a separate bond for each sublicense[, except
1914     that the aggregate of the bonds posted by the hotel licensee shall cover each sublicense under
1915     the hotel license] or each designated conveyance area.
1916          (5) The commission may not issue a hotel license that includes a building under the

1917     hotel license that does not meet the proximity requirements of Section 32B-1-202.
1918          (6) In accordance with Subsection 32B-8d-103(4), a hotel licensee may request to add a
1919     sublicense after the commission issues the hotel licensee's hotel license.
1920          (7) (a) A hotel licensee may request to add a designated conveyance area after the
1921     commission issues the hotel licensee's hotel license.
1922          (b) If a hotel licensee seeks to add a designated conveyance area under Subsection
1923     (7)(a), the hotel licensee shall submit to the department:
1924          (i) the information and evidence described in Subsections (1)(a)(iii), (1)(c), and (1)(d);
1925     and
1926          (ii) if the hotel licensee is an entity, proper verification evidencing that the person who
1927     signs the submission is authorized to sign on behalf of the entity.
1928          Section 39. Section 32B-8b-301 is amended to read:
1929          32B-8b-301. Specific operational requirements for hotel license.
1930          (1) (a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational
1931     Requirements, a hotel licensee, staff of the hotel licensee, and a sublicensee or person
1932     otherwise operating under a sublicense shall comply with this section.
1933          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
1934     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
1935          (i) the hotel licensee;
1936          (ii) individual staff of the hotel licensee;
1937          (iii) a sublicensee or person otherwise operating under a sublicense of the hotel
1938     licensee;
1939          (iv) individual staff of a sublicensee or person otherwise operating under a sublicense
1940     of the hotel licensee; or
1941          (v) any combination of the persons listed in this Subsection (1)(b).
1942          (2) (a) A hotel licensee may not sell, offer for sale, or furnish an alcoholic product
1943     except:
1944          (i) on sublicensed premises;
1945          (ii) pursuant to a permit issued under this title;
1946          (iii) under a package agency agreement with the department, subject to Chapter 2, Part
1947     6, Package Agency; or

1948          (iv) through room service.
1949          (b) A hotel licensee who sells, offers for sale, or furnishes an alcoholic product as
1950     provided in Subsection (2)(a) shall sell, offer for sale, or furnish the alcoholic product:
1951          (i) if on sublicensed premises, in accordance with the operational requirements
1952     described in Section 32B-8d-104;
1953          (ii) if under a permit issued under this title, in accordance with the operational
1954     requirements under the provisions applicable to the permit;
1955          (iii) if as a package agency, in accordance with the contract with the department and
1956     Chapter 2, Part 6, Package Agency; and
1957          (iv) if through room service, in accordance with Subsection [(4)] (5).
1958          (c) Notwithstanding the other provisions of this Subsection (2) and except as provided
1959     in Section 32B-8d-104, a hotel licensee may not permit a patron to carry an alcoholic product
1960     off the premises of a sublicense in violation of Section 32B-5-307 [or], off an area designated
1961     under a permit, or off a designated conveyance area.
1962          (3) A hotel licensee shall supervise and direct a person involved in the sale, offer for
1963     sale, or furnishing of an alcoholic product under a hotel license.
1964          (4) (a) A hotel licensee shall:
1965          (i) in accordance with commission rule, establish and maintain signage that clearly
1966     identifies each designated conveyance area and conspicuously states that a patron may not take
1967     an alcoholic beverage beyond the designated conveyance area except as otherwise provided in
1968     this chapter;
1969          (ii) ensure that an alcoholic beverage is not left unattended in a designated conveyance
1970     area; and
1971          (iii) ensure that each patron complies with the requirements of Subsection
1972     32B-8d-104(5)(b)(ii).
1973          (b) In accordance with Subsection (2), a hotel licensee may not sell, offer for sale, or
1974     furnish an alcoholic product in a designated conveyance area.
1975          [(4)] (5) (a) [Room] Staff of the hotel licensee shall provide room service of an
1976     alcoholic product to a lodging accommodation of a hotel licensee [shall be provided] in person
1977     [by staff of the hotel licensee] only to an adult occupant in the lodging accommodation.
1978          (b) An alcoholic product may not be left outside a lodging accommodation for retrieval

1979     by an occupant.
1980          [(5)] (6) A hotel licensee shall operate in a manner so that at least 70% of the annual
1981     aggregate of the gross receipts related to the sale of food or beverages for the hotel license and
1982     each of the hotel license's sublicenses is from the sale of food, not including:
1983          (a) mix for an alcoholic product; and
1984          (b) a charge in connection with the service of an alcoholic product.
1985          Section 40. Section 32B-8d-104 is amended to read:
1986          32B-8d-104. General operational requirements for a sublicense.
1987          (1) Except as provided in Subsections (2) through [(3)] (5), a person operating under a
1988     sublicense is subject to the operational requirements under the provisions applicable to the
1989     sublicense.
1990          (2) Notwithstanding a requirement in the provisions applicable to the sublicense, a
1991     person operating under the sublicense is not subject to a requirement that a certain percentage
1992     of the gross receipts for the sublicense be from the sale of food, except to the extent that the
1993     gross receipts for the sublicense are included in calculating the percentages under Subsections
1994     32B-8-401(3), [32B-8b-301(5)] 32B-8b-301(6), and 32B-8c-301(3).
1995          (3) Notwithstanding [Section 32B-5-307:] Sections 32B-5-307 and,
1996          [(a)] a patron may transport beer between the sublicensed premises of an arena
1997     licensee's accompanying sublicenses, if the patron transports the beer from and to an area of
1998     each sublicensed premises:
1999          [(i)] (a) that is adjacent to the other; and
2000          [(ii)] (b) where the consumption of beer is permitted[; and].
2001          [(b)] (4) Notwithstanding Section 32B-5-307, staff of a sublicensee or person
2002     otherwise operating under a sublicense of a hotel licensee or a resort licensee may transport an
2003     alcoholic beverage from and to sublicensed premises of the hotel license or resort license, if:
2004          [(i)] (a) the sublicensee is:
2005          [(A)] (i) a full-service restaurant sublicensee;
2006          [(B)] (ii) a limited-service restaurant sublicensee;
2007          [(C)] (iii) a bar establishment sublicensee;
2008          [(D)] (iv) a beer-only restaurant sublicensee; or
2009          [(E)] (v) an on-premise beer retailer sublicensee;

2010          [(ii)] (b) the individual staff carries the alcoholic beverage:
2011          [(A)] (i) from the sublicensed premises of a sublicensee described in Subsection
2012     [(3)(b)(i)] (4)(a);
2013          [(B)] (ii) briefly through an unlicensed area or briefly through sublicensed premises on
2014     which the type of alcoholic beverage that the individual staff carries is permitted; and
2015          [(C)] (iii) to the sublicensed premises of a sublicensee described in Subsection
2016     [(3)(b)(i)] (4)(a); and
2017          [(iii)] (c) the individual staff at all times stays within:
2018          [(A)] (i) the boundary of the hotel; or
2019          [(B)] (ii) the boundary of the resort building.
2020          [(4)] (5) (a) Notwithstanding Section 32B-5-307, 32B-6-605, or 32B-6-1005, a patron
2021     may transport an alcoholic beverage between any of the following locations, if the patron
2022     lawfully obtained the alcoholic beverage on the premises of a sublicensee described in
2023     Subsections (5)(a)(i) through (iv) and complies with Subsection (5)(b):
2024          (i) a bar establishment sublicensee's sublicensed premises;
2025          (ii) a hospitality amenity sublicensee's sublicensed premises;
2026          (iii) an on-premise banquet sublicensee's sublicensed premises; and
2027          (iv) a guest room.
2028          (b) A patron may transport an alcoholic beverage in accordance with Subsection (5)(a)
2029     only if:
2030          (i) the patron travels exclusively within a designated conveyance area as defined in
2031     Section 32B-8-102 or 32B-8b-102; and
2032          (ii) the alcoholic beverage:
2033          (A) is not in the alcoholic beverage's original container; and
2034          (B) is in an opaque or solid color container that is readily identifiable as intended for
2035     use in a designated conveyance area.
2036          (6) Except as provided in Section 32B-8-502, for purposes of interpreting an
2037     operational requirement imposed by the provisions applicable to a sublicense:
2038          (a) a requirement imposed on a sublicensee or person operating under a sublicense
2039     applies to the principal licensee; and
2040          (b) a requirement imposed on staff of a sublicensee or person operating under a

2041     sublicense applies to staff of the principal licensee.
2042          Section 41. Section 32B-10-202 is amended to read:
2043          32B-10-202. Application for special use permit -- Qualifications.
2044          (1) To obtain a special use permit, a person shall submit to the department:
2045          (a) a written application in a form prescribed by the department;
2046          (b) a nonrefundable application fee, if required by the relevant part of this chapter
2047     applicable to the type of special use permit for which the person applies;
2048          (c) an initial permit fee:
2049          (i) if required by the relevant part of this chapter applicable to the type of special use
2050     permit for which the person applies; and
2051          (ii) that is refundable if a special use permit is not issued;
2052          (d) a one-time special use permit fee if required by a section of this chapter:
2053          (i) applicable to the type of special use permit for which the person applies; and
2054          (ii) that is refundable if a special use permit is not issued;
2055          (e) a statement of the purpose for which the person applies for the special use permit;
2056          (f) a description of the types of alcoholic product the person intends to use under
2057     authority of the special use permit;
2058          (g) written consent of the local authority;
2059          (h) if required, a bond as provided in Section 32B-10-205;
2060          (i) a floor plan of the immediate area within the premises in which the person proposes
2061     that an alcoholic product will be used, mixed, stored, sold, or consumed if required by the
2062     relevant part of this chapter applicable to the type of special use permit for which the person
2063     applies;
2064          (j) a signed consent form stating that the special use permittee will permit any
2065     authorized representative of the commission, department, or any other law enforcement officer
2066     to have unrestricted right to enter the special use permittee's premises;
2067          (k) if the person is an entity, proper verification evidencing that a person who signs the
2068     application is authorized to sign on behalf of the entity; and
2069          (l) any other information the commission or department may require.
2070          (2) (a) The commission may issue a special use permit only to a person who qualifies
2071     as follows:

2072          (i) the commission may issue a religious wine use permit to a religious organization;
2073          (ii) the commission may issue an industrial or manufacturing use permit to a person
2074     engaged in an industrial or manufacturing pursuit;
2075          (iii) the commission may issue a scientific or educational use permit to a person
2076     engaged in a scientific or educational pursuit; and
2077          (iv) the commission may issue a public service permit to:
2078          (A) an operator of an airline, railroad, or other public conveyance[.]; or
2079          (B) an entity with authorization from an international airport to establish and operate a
2080     hospitality room at the international airport.
2081          (b) The commission may not issue a special use permit to a person who is disqualified
2082     under Section 32B-1-304.
2083          (c) If a person to whom a special use permit is issued no longer possesses the
2084     qualifications required by this title for obtaining that special use permit, the commission may
2085     suspend or revoke that special use permit.
2086          Section 42. Section 32B-10-303 is amended to read:
2087          32B-10-303. Specific application and renewal requirements for public service
2088     permit.
2089          (1) To obtain a public service permit, in addition to complying with Section
2090     32B-10-202, a person shall submit to the department:
2091          (a) a statement of the total of regularly numbered flights, trains, buses, boats, or other
2092     types of public conveyance for which the person plans to use the special use permit;
2093          (b) a floor plan of any room or facility in which the person plans to establish a
2094     hospitality room; and
2095          (c) evidence of proximity of a proposed hospitality room to:
2096          (i) the arrival and departure area used by a person traveling on the person's airline,
2097     railroad, bus, boat, or other public conveyance[.]; or
2098          (ii) if the applicant is a person described in Subsection 32B-10-202(2)(a)(iv)(B), the
2099     arrival and departure area of another person's airline.
2100          (2) (a) The nonrefundable application fee for a public service permit is $75.
2101          (b) The initial permit fee for a public service permit is $250.
2102          (c) The bond amount required for a public service permittee is the penal sum of $1,000.

2103          (3) (a) To renew a public service permit, a person shall comply with Section
2104     32B-10-203.
2105          (b) (i) [The] Except as provided in Subsection (3)(b)(ii), the renewal fee for a public
2106     service permit is $30 for each regularly numbered passenger airplane flight, passenger train,
2107     bus, boat, or any other regularly scheduled public conveyance upon which an alcoholic product
2108     is sold, offered for sale, or furnished.
2109          (ii) For an applicant described in Subsection 32B-10-202(2)(a)(iv)(B), the renewal fee
2110     for a public service permit is $5,000.
2111          Section 43. Section 32B-10-304 is amended to read:
2112          32B-10-304. Specific operational requirements for a public service permit.
2113          (1) (a) In addition to complying with Section 32B-10-206, a public service permittee
2114     and staff of the public service permittee shall comply with this section.
2115          (b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action
2116     in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:
2117          (i) a public service permittee;
2118          (ii) individual staff of a public service permittee; or
2119          (iii) both a public service permittee and staff of the public service permittee.
2120          (2) (a) A public service permittee described in Subsection 32B-10-202(2)(a)(iv)(A)
2121     whose public conveyances operate on an interstate basis may do the following:
2122          (i) purchase an alcoholic product outside of the state;
2123          (ii) bring an alcoholic product purchased outside of the state into the state; and
2124          (iii) sell, offer for sale, and furnish an alcoholic product purchased outside of the state
2125     to a passenger traveling on the public service permittee's public conveyance for consumption
2126     while en route on the public conveyance.
2127          (b) A public service permittee described in Subsection 32B-10-202(2)(a)(iv)(A) whose
2128     public conveyance operates solely within the state[, to]:
2129          (i) may sell, offer for sale, or furnish an alcoholic product to a passenger traveling on
2130     the public service permittee's public conveyance for consumption while en route on the public
2131     conveyance[, shall purchase:]; and
2132          (ii) shall purchase:
2133          [(i)] (A) liquor from a state store or package agency; and

2134          [(ii)] (B) beer from a beer wholesaler licensee.
2135          (c) A public service permittee described in Subsection 32B-10-202(2)(a)(iv)(B):
2136          (i) may sell, offer for sale, or furnish an alcoholic product to a patron at the public
2137     service permittee's hospitality room; and
2138          (ii) shall purchase:
2139          (A) liquor from a state store or package agency; and
2140          (B) beer from a beer wholesaler licensee.
2141          (3) (a) A public service permittee may establish a hospitality room, if:
2142          (i) (A) the room is located within a depot, terminal, or similar facility adjacent to and
2143     servicing the public service permittee's airline, railroad, bus, boat, or other public conveyance;
2144     or
2145          (B) the room is located within a terminal at an international airport and servicing
2146     another public service permittee's airline;
2147          (ii) the room is completely enclosed and the interior is not visible to the public;
2148          (iii) the sale, offer for sale, or furnishing of an alcoholic product is made only to a
2149     person:
2150          (A) then in transit using the public service permittee's airline, railroad, bus line, or
2151     other public conveyance or, for a public service permittee described in Subsection (2), another
2152     public service permittee's airline; and
2153          (B) holding a valid boarding pass or similar travel document issued by [the] a public
2154     service permittee; and
2155          (iv) (A) liquor is purchased from:
2156          (I) a state store; or
2157          (II) a package agency; and
2158          (B) beer is purchased from a beer wholesaler licensee.
2159          (b) (i) A public service permittee operating a hospitality room shall display in a
2160     prominent place in the hospitality room, a sign in large letters that consists of text in the
2161     following order:
2162          (A) a header that reads: "WARNING";
2163          (B) a warning statement that reads: "Drinking alcoholic beverages during pregnancy
2164     can cause birth defects and permanent brain damage for the child.";

2165          (C) a statement in smaller font that reads: "Call the Utah Department of Health at
2166     [insert most current toll-free number] with questions or for more information.";
2167          (D) a header that reads: "WARNING"; and
2168          (E) a warning statement that reads: "Driving under the influence of alcohol or drugs is
2169     a serious crime that is prosecuted aggressively in Utah."
2170          (ii) (A) The text described in Subsections (3)(b)(i)(A) through (C) shall be in a
2171     different font style than the text described in Subsections (3)(b)(i)(D) and (E).
2172          (B) The warning statements in the sign described in Subsection (3)(b)(i) shall be in the
2173     same font size.
2174          (iii) The Department of Health shall work with the commission and department to
2175     facilitate consistency in the format of a sign required under this section.
2176          (c) A hospitality room shall be operated in accordance with this chapter and rules
2177     adopted by the commission.
2178          Section 44. Section 32B-15-201 is amended to read:
2179          32B-15-201. Liability for injuries and damage resulting from distribution of
2180     alcoholic products -- Prima facie evidence.
2181          (1) (a) Except as provided in Subsections 32B-15-202(2) and (3), a person described in
2182     Subsection (1)(b) is liable for:
2183          (i) any and all injury and damage, except punitive damages to:
2184          (A) a third person; or
2185          (B) the heir, as defined in Section 78B-3-105, of the third person; or
2186          (ii) the death of a third person.
2187          (b) A person is liable under Subsection (1)(a) if:
2188          (i) the person directly gives, sells, or otherwise provides an alcoholic product:
2189          (A) to a person described in Subsection (1)(b)(ii); and
2190          (B) as part of the commercial sale, storage, service, manufacture, distribution, or
2191     consumption of an alcoholic product;
2192          (ii) those actions cause the intoxication of:
2193          (A) an individual under 21 years old;
2194          (B) an individual who is apparently under the influence of an alcoholic product or
2195     drug;

2196          (C) an individual whom the person furnishing the alcoholic product knew or should
2197     have known from the circumstances was under the influence of an alcoholic product or drug; or
2198          (D) an individual who is a known interdicted person; and
2199          (iii) the injury or death described in Subsection (1)(a) results from the intoxication of
2200     the individual who is provided the alcoholic product.
2201          (c) It is prima facie evidence that a person is liable under Subsection (1)(a) for an
2202     injury or death that results from the intoxication of an individual described in Subsection
2203     (1)(b)(ii)(B) or (C) if:
2204          (i) the person directly gives, sells, or otherwise provides the individual the last
2205     alcoholic product the individual consumes before the injury or death described in Subsection
2206     (1)(b)(iii);
2207          (ii) the individual consumes the alcoholic product at the location where the person
2208     directly gives, sells, or otherwise provides the individual the alcoholic product;
2209          (iii) the injury or death occurs within 30 minutes after the time at which the individual
2210     leaves, and within a 10 mile radius of, the location where the person gives, sells, or otherwise
2211     provides the individual the alcoholic product; and
2212          (iv) (A) the individual is charged with [a criminal violation of Section 41-6a-502 for
2213     driving under the influence of an alcoholic product in relation to the injury or death.] an offense
2214     described in Subsection 41-6a-501(2)(a); or
2215          (B) if the individual dies as a result of the event that caused the injury or death, a
2216     subsequent chemical test shows that the individual had a blood alcohol concentration of .05
2217     grams or greater at the time of the test.
2218          (2) (a) A person 21 years old or older who is described in Subsection (2)(b) is liable
2219     for:
2220          (i) any and all injury and damage, except punitive damages to:
2221          (A) a third person; or
2222          (B) the heir, as defined in Section 78B-3-105, of the third person; or
2223          (ii) the death of the third person.
2224          (b) A person is liable under Subsection (2)(a) if:
2225          (i) the person directly gives or otherwise provides an alcoholic product to an individual
2226     who the person knows or should have known is under 21 years old;

2227          (ii) those actions caused the intoxication of the individual provided the alcoholic
2228     product;
2229          (iii) the injury or death described in Subsection (2)(a) results from the intoxication of
2230     the individual who is provided the alcoholic product; and
2231          (iv) the person is not liable under Subsection (1), because the person did not directly
2232     give or provide the alcoholic product as part of the commercial sale, storage, service,
2233     manufacture, distribution, or consumption of an alcoholic product.
2234          (3) This section does not apply to a business licensed in accordance with Chapter 7,
2235     Off-Premise Beer Retailer Act, to sell beer at retail only for off-premise consumption.
2236          Section 45. Section 41-6a-531 is enacted to read:
2237          41-6a-531. Access to DUI investigative reports.
2238          (1) As used in this section:
2239          (a) "Agent" means a person's attorney that has been formally engaged.
2240          (b) "DUI investigative report" means all materials that a peace officer gathers as part of
2241     investigating an offense described in Subsection 41-6a-501 including:
2242          (i) the identity of witnesses and, if known, contact information;
2243          (ii) witness statements;
2244          (iii) photographs and videotapes;
2245          (iv) diagrams;
2246          (v) field notes;
2247          (vi) test results; and
2248          (vii) any Targeted Responsibility for Alcohol Connected Emergencies investigation
2249     report.
2250          (2) (a) Upon request, a law enforcement agency shall disclose an unredacted DUI
2251     investigative report to:
2252          (i) a person who suffers loss or injury related to the person's actions that gave rise to
2253     the investigation; or
2254          (ii) an agent, parent, or legal guardian of the person described in Subsection (2)(a)(i).
2255          (b) A law enforcement agency responding to a request under Subsection (2)(a) may:
2256          (i) withhold a portion of the DUI investigative report if disclosure would materially
2257     prejudice an ongoing criminal investigation or criminal prosecution;

2258          (ii) redact or withhold any privileged information;
2259          (iii) redact an individual's phone number or address, if disclosure of the individual's
2260     phone number or address may endanger an individual's physical safety; or
2261          (iv) provide the DUI investigative report subject to an agreement that limits the
2262     recipient's use of the DUI investigative report to use solely for the purpose of pursuing a civil
2263     claim related to the incident.
2264          (3) A law enforcement agency may charge a reasonable fee to cover the cost incurred
2265     by disclosing a DUI investigative report in accordance with this section.
2266          Section 46. Section 53-28-101 is enacted to read:
2267     
CHAPTER 28. PLACE OF LAST DRINK PROGRAM

2268          53-28-101. Definitions.
2269          (1) "Alcohol-related law enforcement officer" means the same as that term is defined in
2270     Section 32B-1-201.
2271          (2) "Alcohol-related traffic stop" means a traffic stop that results in an individual being
2272     arrested for an offense described in Subsection 41-6a-501(2)(a) related to alcohol.
2273          (3) "Alcoholic beverage" means the same as that term is defined in Section 32B-1-102.
2274          (4) "Place of last drink" means the location where an individual obtains and consumes
2275     the last alcoholic beverage before the individual is the subject of an alcohol-related traffic stop.
2276          (5) "Retail licensee" means the same as that term is defined in Section 32B-1-102.
2277          Section 47. Section 53-28-102 is enacted to read:
2278          53-28-102. Place of last drink reporting requirements.
2279          (1) The department shall establish a program in accordance with this chapter to:
2280          (a) identify when an individual's place of last drink is a retail licensee; and
2281          (b) efficiently share information with alcohol-related law enforcement officers about
2282     each retail licensee that is an individual's place of last drink for the purpose of allowing the
2283     alcohol-related law enforcement officers to investigate a possible violation of Section
2284     32B-5-306.
2285          (2) In developing the program described in this section, the department shall coordinate
2286     with and take input from the Department of Alcoholic Beverage Services created in Section
2287     32B-2-203.
2288          (3) Before November 1, 2025, the department shall provide a written report to the

2289     Criminal Justice and Law Enforcement Interim Committee that describes how the department
2290     implemented the program, the extent to which the program accomplishes the objectives
2291     described in Subsection (1), and any planned or recommended changes.
2292          Section 48. Section 59-15-101 is amended to read:
2293          59-15-101. Tax basis -- Rate.
2294          (1) As used in this chapter, "beer" means:
2295          (a) beer as defined in Section 32B-1-102; or
2296          (b) heavy beer as defined in Section 32B-1-102.
2297          (2) (a) A tax is imposed at the rate specified in [Subsection (1)(b) on all beer, as
2298     defined in Section 32B-1-102,] Subsection (2)(b) on beer that is imported or manufactured for
2299     sale, use, or distribution in this state.
2300          [(b) The tax described in Subsection (1)(a) shall be imposed at a rate of:]
2301          [(i) $11 per 31-gallon barrel for beer imported or manufactured:]
2302          [(A) before July 1, 2003; and]
2303          [(B) for sale, use, or distribution in this state; and]
2304          [(ii) $13.10 per 31-gallon barrel for beer imported or manufactured:]
2305          [(A) on or after July 1, 2003; and]
2306          [(B) for sale, use, or distribution in this state.]
2307          (b) The rate of the tax imposed under this Subsection (2) is:
2308          (i) $13.10 per 31-gallon barrel for beer imported or manufactured before July 1, 2024;
2309          (ii) $13.35 per 31-gallon barrel for beer imported or manufactured on or after July 1,
2310     2024, and before July 1, 2025;
2311          (iii) $13.60 per 31-gallon barrel for beer imported or manufactured on or after July 1,
2312     2025, and before July 1, 2026;
2313          (iv) $13.85 per 31-gallon barrel for beer imported or manufactured on or after July 1,
2314     2026, and before July 1, 2027; and
2315          (v) $14.10 per 31-gallon barrel for beer imported or manufactured on or after July 1,
2316     2027.
2317          (c) The tax imposed under this Subsection [(1)] (2):
2318          (i) shall be imposed at a proportionate rate for:
2319          (A) any quantity of beer other than a 31-gallon barrel; or

2320          (B) the fractional parts of a 31-gallon barrel; and
2321          (ii) may not be imposed more than once on the same beer.
2322          [(2)] (3) A tax may not be imposed on beer:
2323          (a) sold to the United States and its agencies; or
2324          (b) (i) manufactured or imported for sale, use, or distribution outside the state; and
2325          (ii) exported from the state.
2326          Section 49. Section 59-15-109 is amended to read:
2327          59-15-109. Commission to deposit beer tax revenue.
2328          (1) [Except as provided in Subsection (2), taxes collected under this chapter shall be
2329     paid by the commission to the state treasurer daily for deposit] Except as provided in
2330     Subsections (2) and (3), the commission shall deposit revenue collected under this chapter as
2331     follows:
2332          (a) the greater of the following shall be deposited into the Alcoholic Beverage
2333     Enforcement and Treatment Restricted Account created in Section 32B-2-403:
2334          (i) an amount calculated by:
2335          (A) determining an amount equal to 50% of the revenue collected for the fiscal year
2336     two years preceding the fiscal year for which the deposit is made; and
2337          (B) subtracting $30,000 from the amount determined under Subsection (1)(a)(i)(A); or
2338          (ii) $4,350,000; and
2339          (b) the revenue collected in excess of the amount deposited in accordance with
2340     Subsection (1)(a) shall be deposited into the General Fund.
2341          (2) The [state treasurer] commission shall annually deposit into the Alcoholic Beverage
2342     Enforcement and Treatment Restricted Account created in Section 32B-2-403 an amount equal
2343     to the amount of revenue generated in the current fiscal year by the portion of the tax imposed
2344     under Section 59-15-101 that [exceeds] is equal to:
2345          [(a) $12.80 per 31-gallon barrel for beer imported or manufactured:]
2346          [(i) on or after July 1, 2003; and]
2347          [(ii) for sale, use, or distribution in this state; and]
2348          (a) $0.30 per 31-gallon barrel for beer imported or manufactured on or after July 1,
2349     2003; and
2350          (b) a proportionate rate to the rate described in Subsection (2)(a) for:

2351          (i) any quantity of beer other than a 31-gallon barrel; or
2352          (ii) the fractional parts of a 31-gallon barrel.
2353          (3) Beginning fiscal year 2024-25, the commission shall annually deposit into the
2354     Alcoholic Beverage Control Act Enforcement Fund created in Section 32B-2-305 an amount
2355     equal to the amount of revenue generated in the current fiscal year by the portion of the tax
2356     imposed under Section 59-15-101 that exceeds:
2357          (a) $13.10 per 31-gallon barrel for beer imported or manufactured on or after July 1,
2358     2024; and
2359          (b) a proportionate rate to the rate described in Subsection (3)(a) for:
2360          (i) any quantity of beer other than a 31-gallon barrel; or
2361          (ii) the fractional parts of a 31-gallon barrel.
2362          [(3)] (4) (a) The commission shall notify the entities described in Subsection [(3)(b)]
2363     (4)(b) not later than the September 1 preceding the fiscal year of the deposit of:
2364          (i) the amount of the proceeds of the beer excise tax collected in accordance with this
2365     section for the fiscal year two years preceding the fiscal year of deposit; and
2366          (ii) an amount equal to 50% of the amount listed in Subsection [(3)(a)(i)] (4)(a)(i).
2367          (b) The notification required by Subsection [(3)(a)] (4)(a) shall be sent to:
2368          (i) the Governor's Office of Planning and Budget; and
2369          (ii) the Legislative Fiscal Analyst.
2370          Section 50. Section 63I-2-232 is amended to read:
2371          63I-2-232. Repeal dates: Title 32B.
2372          (1) Subsection 32B-1-603.5(7), regarding the Department of Alcoholic Beverage
2373     Services' review of beer that is sold or distributed in the state, is repealed December 31, 2024.
2374          (2) Subsection 32B-2-205(4), which creates a workgroup to make recommendations
2375     regarding training and recordkeeping for certain cash transactions, is repealed January 1, 2025.
2376          Section 51. Repealer.
2377          This bill repeals:
2378          Section 32B-2-210, Alcoholic Beverage Services Advisory Board.
2379          Section 52. Effective date.
2380          This bill takes effect on May 1, 2024.