Title 32B — Alcoholic Beverage Control Act

Title 32B Alcoholic Beverage Control Act

Chapter 1 Alcoholic Beverage Control General Provisions

Part 1 General Provisions

§ 32B-1-101 Title.

(1) This title is known as the "Alcoholic Beverage Control Act."

(2) This chapter is known as "Alcoholic Beverage Control General Provisions."

§ 32B-1-102 Definitions.

As used in this title:

(1) "Airport lounge" means a business location:

(a) at which an alcoholic product is sold at retail for consumption on the premises; and

(b) that is located at an international airport or domestic airport.

(2) "Airport lounge license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 5, Airport Lounge License.

(3) "Alcoholic beverage" means the following:

(a) beer; or

(b) liquor.

(4)

(a) "Alcoholic product" means a product that:

(i) contains at least .5% of alcohol by volume; and

(ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol in an amount equal to or greater than .5% of alcohol by volume.

(b) "Alcoholic product" includes an alcoholic beverage.

(c) "Alcoholic product" does not include any of the following common items that otherwise come within the definition of an alcoholic product:

(i) except as provided in Subsection (4)(d), an extract;

(ii) vinegar;

(iii) preserved nonintoxicating cider;

(iv) essence;

(v) tincture;

(vi) food preparation; or

(vii) an over-the-counter medicine.

(d) "Alcoholic product" includes an extract containing alcohol obtained by distillation when it is used as a flavoring in the manufacturing of an alcoholic product.

(5) "Alcohol training and education seminar" means a seminar that is:

(a) required by Chapter 1, Part 7, Alcohol Training and Education Act; and

(b) described in Section 26B-5-205.

(6)

(a) "Amphitheater" means an outdoor, multi-use performance venue that:

(i) is primarily used to present live entertainment, including music, dance, comedy, and theater;

(ii) has the capacity to hold over 10,000 patrons; and

(iii) is located in a county of the first class.

(b) "Amphitheater" does not include a space that is used to present sporting events or sporting competitions.

(7) "Arena" means an enclosed building:

(a) that is managed by:

(i) the same person who owns the enclosed building;

(ii) a person who has a majority interest in each person who owns or manages a space in the enclosed building; or

(iii) a person who has authority to direct or exercise control over the management or policy of each person who owns or manages a space in the enclosed building;

(b) that operates as a venue; and

(c) that has an occupancy capacity of at least 12,500.

(8) "Arena license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 8c, Arena License Act.

(9) "Banquet" means an event:

(a) that is a private event or a privately sponsored event;

(b) that is held at one or more designated locations approved by the commission in or on the premises of:

(i) a hotel;

(ii) a resort facility;

(iii) a sports center;

(iv) a convention center;

(v) a performing arts facility;

(vi) an arena;

(vii) a restaurant venue; or

(viii) an amphitheater;

(c) for which there is a contract:

(i) between a person operating a facility listed in Subsection (9)(b) and another person that has common ownership of less than 20% with the person operating the facility; and

(ii) under which the person operating a facility listed in Subsection (9)(b) is required to provide an alcoholic product at the event; and

(d) at which food and alcoholic products may be sold, offered for sale, or furnished.

(10)

(a) "Bar establishment license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License.

(b) "Bar establishment license" includes:

(i) a dining club license;

(ii) an equity license;

(iii) a fraternal license; or

(iv) a bar license.

(11) "Bar license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License.

(12)

(a) "Beer" means a product that:

(i) contains:

(A) at least .5% of alcohol by volume; and

(B) no more than 5% of alcohol by volume or 4% by weight;

(ii) is obtained by fermentation, infusion, or decoction of:

(A) malt; or

(B) a malt substitute; and

(iii) is clearly marketed, labeled, and identified as:

(A) beer;

(B) ale;

(C) porter;

(D) stout;

(E) lager;

(F) a malt;

(G) a malted beverage; or

(H) seltzer.

(b) "Beer" may contain:

(i) hops extract;

(ii) caffeine, if the caffeine is a natural constituent of an added ingredient; or

(iii) a propylene glycol-, ethyl alcohol-, or ethanol-based flavoring agent that:

(A) is used in the production of beer;

(B) is in a formula approved by the federal Alcohol and Tobacco Tax and Trade Bureau after the formula is filed for approval under 27 C.F.R. Sec. 25.55; and

(C) does not contribute more than 10% of the overall alcohol content of the beer.

(c) "Beer" does not include:

(i) a flavored malt beverage;

(ii) a product that contains alcohol derived from:

(A) except as provided in Subsection (12)(b)(iii), spirituous liquor; or

(B) wine; or

(iii) a product that contains an additive masking or altering a physiological effect of alcohol, including kratom, kava, cannabidiol, or natural or synthetic tetrahydrocannabinol.

(13) "Beer-only restaurant license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 9, Beer-Only Restaurant License.

(14) "Beer retailer" means a business that:

(a) is engaged, primarily or incidentally, in the retail sale of beer to a patron, whether for consumption on or off the business premises; and

(b) is licensed as:

(i) an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-Premise Beer Retailer Local Authority; or

(ii) an on-premise beer retailer, in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-Premise Beer Retailer License.

(15) "Beer wholesaling license" means a license:

(a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and

(b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more retail licensees or off-premise beer retailers.

(16) "Billboard" means a public display used to advertise, including:

(a) a light device;

(b) a painting;

(c) a drawing;

(d) a poster;

(e) a sign;

(f) a signboard; or

(g) a scoreboard.

(17) "Brewer" means a person engaged in manufacturing:

(a) beer;

(b) heavy beer; or

(c) a flavored malt beverage.

(18) "Brewery manufacturing license" means a license issued in accordance with Chapter 11, Part 5, Brewery Manufacturing License.

(19) "Certificate of approval" means a certificate of approval obtained from the department under Section 32B-11-201.

(20) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by a bus company to a group of persons pursuant to a common purpose:

(a) under a single contract;

(b) at a fixed charge in accordance with the bus company's tariff; and

(c) to give the group of persons the exclusive use of the passenger bus, coach, or other motor vehicle, and a driver to travel together to one or more specified destinations.

(21) "Church" means a building:

(a) set apart for worship;

(b) in which religious services are held;

(c) with which clergy is associated; and

(d) that is tax exempt under the laws of this state.

(22) "Commission" means the Alcoholic Beverage Services Commission created in Section 32B-2-201.

(23) "Commissioner" means a member of the commission.

(24) "Community location" means:

(a) a public or private school as defined in Subsection (118);

(b) a church;

(c) a public library;

(d) a public playground; or

(e) a public park.

(25) "Community location governing authority" means:

(a) the governing body of the community location; or

(b) if the commission does not know who is the governing body of a community location, a person who appears to the commission to have been given on behalf of the community location the authority to prohibit an activity at the community location.

(26) "Consent of the local authority" means a written document in which a local authority gives consent to the commission to consider issuing a license, permit, or package agency within the boundaries of the local authority.

(27) "Container" means a receptacle that contains an alcoholic product, including:

(a) a bottle;

(b) a vessel; or

(c) a similar item.

(28) "Controlled group of manufacturers" means as the commission defines by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(29) "Convention center" means a facility that is:

(a) in total at least 30,000 square feet; and

(b) otherwise defined as a "convention center" by the commission by rule.

(30)

(a) "Counter" means a surface or structure in a dining area of a licensed premises where seating is provided to a patron for service of food.

(b) "Counter" does not include a dispensing structure.

(31) "Crime involving moral turpitude" means the same as the commission defines that term by rule.

(32) "Department" means the Department of Alcoholic Beverage Services created in Section 32B-2-203.

(33) "Department compliance officer" means an individual who is:

(a) an auditor or inspector; and

(b) employed by the department.

(34) "Department sample" means liquor that is placed in the possession of the department for testing, analysis, and sampling.

(35) "Dining club license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the commission as a dining club license.

(36) "Director," unless the context requires otherwise, means the director of the department.

(37) "Disciplinary proceeding" means an adjudicative proceeding permitted under this title:

(a) against a person subject to administrative action; and

(b) that is brought on the basis of a violation of this title.

(38)

(a) Subject to Subsection (38)(b), "dispense" means:

(i) drawing an alcoholic product; and

(ii) using the alcoholic product at the location from which it was drawn to mix or prepare an alcoholic product to be furnished to a patron of the retail licensee.

(b) The definition of "dispense" in this Subsection (38) applies only to:

(i) a full-service restaurant license;

(ii) a limited-service restaurant license;

(iii) a reception center license;

(iv) a beer-only restaurant license;

(v) a bar license;

(vi) an on-premise beer retailer;

(vii) an airport lounge license;

(viii) an on-premise banquet license; and

(ix) a hospitality amenity license.

(39) "Dispensing structure" means a surface or structure on a licensed premises:

(a) where an alcoholic product is dispensed; or

(b) from which an alcoholic product is served.

(40) "Distillery manufacturing license" means a license issued in accordance with Chapter 11, Part 4, Distillery Manufacturing License.

(41) "Distressed merchandise" means an alcoholic product in the possession of the department that is saleable, but for some reason is unappealing to the public.

(42) "Domestic airport" means an airport that:

(a) has at least 15,000 commercial airline passenger boardings in any five-year period;

(b) receives scheduled commercial passenger aircraft service; and

(c) is not an international airport.

(43) "Equity license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the commission as an equity license.

(44) "Event permit" means:

(a) a single event permit; or

(b) a temporary beer event permit.

(45) "Exempt license" means a license exempt under Section 32B-1-201 from being considered in determining the total number of retail licenses that the commission may issue at any time.

(46)

(a) "Flavored malt beverage" means a beverage:

(i) that contains at least .5% alcohol by volume;

(ii) for which the producer is required to file a formula for approval with the federal Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 because the beverage is treated by processing, filtration, or another method of manufacture that is not generally recognized as a traditional process in the production of a beer, ale, porter, stout, lager, or malt liquor; and

(iii) for which the producer is required to file a formula for approval with the federal Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 because the beverage includes an ingredient containing alcohol.

(b) "Flavored malt beverage" may contain a propylene glycol-, ethyl alcohol-, or ethanol-based flavoring agent that contributes to the overall alcohol content of the beverage.

(c) "Flavored malt beverage" does not include beer or heavy beer.

(d) "Flavored malt beverage" is considered liquor for purposes of this title.

(47) "Fraternal license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 4, Bar Establishment License, that is designated by the commission as a fraternal license.

(48) "Full-service restaurant license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-Service Restaurant License.

(49)

(a) "Furnish" means by any means to provide with, supply, or give an individual an alcoholic product, by sale or otherwise.

(b) "Furnish" includes to:

(i) serve;

(ii) deliver; or

(iii) otherwise make available.

(50) "Guest" means an individual who meets the requirements of Subsection 32B-6-407(9).

(51) "Hard cider" means the same as that term is defined in 26 U.S.C. Sec. 5041.

(52) "Health care practitioner" means:

(a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;

(b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;

(c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;

(d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice Act;

(e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b, Nurse Practice Act;

(f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy Practice Act;

(g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational Therapy Practice Act;

(h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;

(i) a mental health professional licensed under Title 58, Chapter 60, Mental Health Professional Practice Act;

(j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;

(k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical Practice Act;

(l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental Hygienist Practice Act; and

(m) a physician assistant licensed under Title 58, Chapter 70a, Utah Physician Assistant Act.

(53)

(a) "Heavy beer" means a product that:

(i)

(A) contains more than 5% alcohol by volume;

(B) contains at least .5% of alcohol by volume and no more than 5% of alcohol by volume or 4% by weight, and a propolyne glycol-, ethyl alcohol-, or ethanol-based flavoring agent that contributes more than 10% of the overall alcohol content of the product; or

(C) contains at least .5% of alcohol by volume and no more than 5% of alcohol by volume or 4% by weight, and has a label or packaging that is rejected under Subsection 32B-1-606(3)(b); and

(ii) is obtained by fermentation, infusion, or decoction of:

(A) malt; or

(B) a malt substitute.

(b) "Heavy beer" may, if the heavy beer contains more than 5% alcohol by volume, contain a propolyne glycol-, ethyl alcohol-, or ethanol-based flavoring agent that contributes to the overall alcohol content of the heavy beer.

(c) "Heavy beer" does not include:

(i) a flavored malt beverage;

(ii) a product that contains alcohol derived from:

(A) except as provided in Subsections (53)(a)(i)(B) and (53)(b), spirituous liquor; or

(B) wine; or

(iii) a product that contains an additive masking or altering a physiological effect of alcohol, including kratom, kava, cannabidiol, or natural or synthetic tetrahydrocannabinol.

(d) "Heavy beer" is considered liquor for the purposes of this title.

(54) "Hospitality amenity license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 10, Hospitality Amenity License.

(55)

(a) "Hotel" means a commercial lodging establishment that:

(i) offers at least 30 rooms as temporary sleeping accommodations for compensation;

(ii) is capable of hosting conventions, conferences, and food and beverage functions under a banquet contract; and

(iii)

(A) has adequate kitchen or culinary facilities on the premises to provide complete meals;

(B) has at least 1,000 square feet of function space consisting of meeting or dining rooms that can be reserved for a banquet and can accommodate at least 75 individuals; or

(C) if the establishment is located in a small or unincorporated locality, has an appropriate amount of function space consisting of meeting or dining rooms that can be reserved for private use under a banquet contract, as determined by the commission.

(b) "Hotel" includes a commercial lodging establishment that:

(i) meets the requirements under Subsection (55)(a); and

(ii) has one or more privately owned dwelling units.

(56) "Hotel license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 8b, Hotel License Act.

(57) "Identification card" means an identification card issued under Title 53, Chapter 3, Part 8, Identification Card Act.

(58) "Industry representative" means an individual who is compensated by salary, commission, or other means for representing and selling an alcoholic product of a manufacturer, supplier, or importer of liquor.

(59) "Industry representative sample" means liquor that is placed in the possession of the department for testing, analysis, and sampling by a local industry representative on the premises of the department to educate the local industry representative of the quality and characteristics of the product.

(60)

(a) "Interdicted person" means a person to whom the sale, offer for sale, or furnishing of an alcoholic product is prohibited by:

(i) law; or

(ii) court order.

(b) "Interdicted person" includes a person who voluntarily obtains a driver license certificate under Section 53-3-236 or an identification card under Section 53-3-805 with an interdicted person identifier.

(61) "International airport" means an airport:

(a) with a United States Customs and Border Protection office on the premises of the airport; and

(b) at which international flights may enter and depart.

(62) "Intoxicated" or "intoxication" means that

an individual exhibits plain and easily observable outward manifestations of behavior or physical signs produced by or as a result of the use of:

(a) an alcoholic product;

(b) a controlled substance;

(c) a substance having the property of releasing toxic vapors; or

(d) a combination of products or substances described in Subsections (62)(a) through (c).

(63) "Investigator" means an individual who is:

(a) a department compliance officer; or

(b) a nondepartment enforcement officer.

(64) "License" means:

(a) a retail license;

(b) a sublicense;

(c) a license issued in accordance with Chapter 7, Part 4, Off-premise Beer Retailer State License;

(d) a license issued in accordance with Chapter 11, Manufacturing and Related Licenses Act;

(e) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;

(f) a license issued in accordance with Chapter 13, Beer Wholesaling License Act; or

(g) a license issued in accordance with Chapter 17, Liquor Transport License Act.

(65) "Licensee" means a person who holds a license.

(66) "Limited-service restaurant license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-Service Restaurant License.

(67) "Limousine" means a motor vehicle licensed by the state or a local authority, other than a bus or taxicab:

(a) in which the driver and a passenger are separated by a partition, glass, or other barrier;

(b) that is provided by a business entity to one or more individuals at a fixed charge in accordance with the business entity's tariff; and

(c) to give the one or more individuals the exclusive use of the limousine and a driver to travel to one or more specified destinations.

(68)

(a)

(i) "Liquor" means a liquid that:

(A) is:

(I) alcohol;

(II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;

(III) a combination of liquids a part of which is spirituous, vinous, or fermented; or

(IV) other drink or drinkable liquid; and

(B)

(I) contains at least .5% alcohol by volume; and

(II) is suitable to use for beverage purposes.

(ii) "Liquor" includes:

(A) heavy beer;

(B) wine; and

(C) a flavored malt beverage.

(b) "Liquor" does not include beer.

(69) "Liquor Control Fund" means the enterprise fund created by Section 32B-2-301.

(70) "Liquor transport license" means a license issued in accordance with Chapter 17, Liquor Transport License Act.

(71) "Liquor warehousing license" means a license that is issued:

(a) in accordance with Chapter 12, Liquor Warehousing License Act; and

(b) to a person, other than a licensed manufacturer, who engages in the importation for storage, sale, or distribution of liquor regardless of amount.

(72) "Local authority" means:

(a) for premises that are located in an unincorporated area of a county, the governing body of a county;

(b) for premises that are located in an incorporated city or town, the governing body of the city or town;

(c) the Point of the Mountain State Land Authority created in Section 11-59-201; or

(d) for premises that are located in a project area as defined in Section 63H-1-102 and in a project area plan adopted by the Military Installation Development Authority under Title 63H, Chapter 1, Military Installation Development Authority Act, the Military Installation Development Authority.

(73) "Lounge or bar area" means the same as the commission defines that term by rule.

(74) "Malt substitute" means:

(a) rice;

(b) grain;

(c) bran;

(d) glucose;

(e) sugar; or

(f) molasses.

(75) "Manufacture" means to distill, brew, rectify, mix, compound, process, ferment, or otherwise make an alcoholic product for personal use or for sale or distribution to others.

(76) "Markup cost" means the amount a person pays to the department for an alcoholic product in accordance with Section 32B-2-304.

(77) "Member" means an individual who, after paying regular dues, has full privileges in an equity licensee or fraternal licensee.

(78)

(a) "Military installation" means a base, air field, camp, post, station, yard, center, or homeport facility for a ship:

(i)

(A) under the control of the United States Department of Defense; or

(B) of the National Guard;

(ii) that is located within the state; and

(iii) including a leased facility.

(b) "Military installation" does not include a facility used primarily for:

(i) civil works;

(ii) a rivers and harbors project; or

(iii) a flood control project.

(79) "Minibar" means an area of a hotel guest room where one or more alcoholic products are kept and offered for self-service sale or consumption.

(80) "Minor" means an individual under 21 years old.

(81) "Nondepartment enforcement agency" means an agency that:

(a)

(i) is a state agency other than the department; or

(ii) is an agency of a county, city, or town; and

(b) has a responsibility to enforce one or more provisions of this title.

(82) "Nondepartment enforcement officer" means an individual who is:

(a) a peace officer, examiner, or investigator; and

(b) employed by a nondepartment enforcement agency.

(83)

(a) "Off-premise beer retailer" means a beer retailer who is:

(i) licensed in accordance with Chapter 7, Off-Premise Beer Retailer Act; and

(ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's premises.

(b) "Off-premise beer retailer" does not include an on-premise beer retailer.

(84) "Off-premise beer retailer state license" means a state license issued in accordance with Chapter 7, Part 4, Off-premise Beer Retailer State License.

(85) "On-premise banquet license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 6, On-Premise Banquet License.

(86) "On-premise beer retailer" means a beer retailer who is:

(a) authorized to sell, offer for sale, or furnish beer under a license issued in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-Premise Beer Retailer License; and

(b) engaged in the sale of beer to a patron for consumption on the beer retailer's premises:

(i) regardless of whether the beer retailer sells beer for consumption off the licensed premises; and

(ii) on and after March 1, 2012, operating:

(A) as a tavern; or

(B) in a manner that meets the requirements of Subsection 32B-6-703(2)(e)(i).

(87) "Opaque" means impenetrable to sight.

(88) "Package agency" means a retail liquor location operated:

(a) under an agreement with the department; and

(b) by a person:

(i) other than the state; and

(ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package Agency, to sell packaged liquor for consumption off the premises of the package agency.

(89) "Package agent" means a person who holds a package agency.

(90) "Patron" means an individual to whom food, beverages, or services are sold, offered for sale, or furnished, or who consumes an alcoholic product including:

(a) a customer;

(b) a member;

(c) a guest;

(d) an attendee of a banquet or event;

(e) an individual who receives room service;

(f) a resident of a resort; or

(g) a hospitality guest, as defined in Section 32B-6-1002, under a hospitality amenity license.

(91)

(a) "Performing arts facility" means a multi-use performance space that:

(i) is primarily used to present various types of performing arts, including dance, music, and theater;

(ii) contains over 2,500 seats;

(iii) is owned and operated by a governmental entity; and

(iv) is located in a city of the first class.

(b) "Performing arts facility" does not include a space that is used to present sporting events or sporting competitions.

(92) "Permittee" means a person issued a permit under:

(a) Chapter 9, Event Permit Act; or

(b) Chapter 10, Special Use Permit Act.

(93) "Person subject to administrative action" means:

(a) a licensee;

(b) a permittee;

(c) a manufacturer;

(d) a supplier;

(e) an importer;

(f) one of the following holding a certificate of approval:

(i) an out-of-state brewer;

(ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or

(iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or

(g) staff of:

(i) a person listed in Subsections (93)(a) through (f); or

(ii) a package agent.

(94) "Premises" means a building, enclosure, or room used in connection with the storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic product, unless otherwise defined in this title or rules made by the commission.

(95) "Prescription" means an order issued by a health care practitioner when:

(a) the health care practitioner is licensed under Title 58, Occupations and Professions, to prescribe a controlled substance, other drug, or device for medicinal purposes;

(b) the order is made in the course of that health care practitioner's professional practice; and

(c) the order is made for obtaining an alcoholic product for medicinal purposes only.

(96)

(a) "Primary spirituous liquor" means the main distilled spirit in a beverage.

(b) "Primary spirituous liquor" does not include a secondary flavoring ingredient.

(97) "Principal license" means:

(a) a resort license;

(b) a hotel license; or

(c) an arena license.

(98)

(a) "Private event" means a specific social, business, or recreational event:

(i) for which an entire room, area, or hall is leased or rented in advance by an identified group; and

(ii) that is limited in attendance to people who are specifically designated and their guests.

(b) "Private event" does not include an event to which the general public is invited, whether for an admission fee or not.

(99) "Privately sponsored event" means a specific social, business, or recreational event:

(a) that is held in or on the premises of an on-premise banquet licensee; and

(b) to which entry is restricted by an admission fee.

(100)

(a) "Proof of age" means:

(i) an identification card;

(ii) an identification that:

(A) is substantially similar to an identification card;

(B) is issued in accordance with the laws of a state other than Utah in which the identification is issued;

(C) includes date of birth; and

(D) has a picture affixed;

(iii) a valid driver license certificate that:

(A) includes date of birth;

(B) has a picture affixed; and

(C) is issued under Title 53, Chapter 3, Uniform Driver License Act, in accordance with the laws of the state in which it is issued, or in accordance with federal law by the United States Department of State;

(iv) a military identification card that:

(A) includes date of birth; and

(B) has a picture affixed;

(v) a valid passport;

(vi) a valid driver license that:

(A) includes a date of birth;

(B) has a picture affixed; and

(C) is issued under the laws of a country other than the United States; or

(vii) a state-endorsed digital identity issued under Title 63A, Chapter 20, State-Endorsed Digital Identity.

(b) "Proof of age" does not include a driving privilege card issued in accordance with Section 53-3-207.

(101) "Provisions applicable to a sublicense" means:

(a) for a full-service restaurant sublicense, the provisions applicable to a full-service restaurant license under Chapter 6, Part 2, Full-Service Restaurant License;

(b) for a limited-service restaurant sublicense, the provisions applicable to a limited-service restaurant license under Chapter 6, Part 3, Limited-Service Restaurant License;

(c) for a bar establishment sublicense, the provisions applicable to a bar establishment license under Chapter 6, Part 4, Bar Establishment License;

(d) for an on-premise banquet sublicense, the provisions applicable to an on-premise banquet license under Chapter 6, Part 6, On-Premise Banquet License;

(e) for an on-premise beer retailer sublicense, the provisions applicable to an on-premise beer retailer license under Chapter 6, Part 7, On-Premise Beer Retailer License;

(f) for a beer-only restaurant sublicense, the provisions applicable to a beer-only restaurant license under Chapter 6, Part 9, Beer-Only Restaurant License;

(g) for a hospitality amenity license, the provisions applicable to a hospitality amenity license under Chapter 6, Part 10, Hospitality Amenity License; and

(h) for a spa sublicense, the provisions applicable to the sublicense under Chapter 8d, Part 2, Resort Spa Sublicense.

(102)

(a) "Public building" means a building or permanent structure that is:

(i) owned or leased by:

(A) the state; or

(B) a local government entity; and

(ii) used for:

(A) public education;

(B) transacting public business; or

(C) regularly conducting government activities.

(b) "Public building" does not include a building owned by the state or a local government entity when the building is used by a person, in whole or in part, for a proprietary function.

(103) "Public conveyance" means a conveyance that the public or a portion of the public has access to and a right to use for transportation, including an airline, railroad, bus, boat, or other public conveyance.

(104) "Reception center" means a business that:

(a) operates facilities that are at least 5,000 square feet; and

(b) has as its primary purpose the leasing of the facilities described in Subsection (104)(a) to a third party for the third party's event.

(105) "Reception center license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 8, Reception Center License.

(106)

(a) "Record" means information that is:

(i) inscribed on a tangible medium; or

(ii) stored in an electronic or other medium and is retrievable in a perceivable form.

(b) "Record" includes:

(i) a book;

(ii) a book of account;

(iii) a paper;

(iv) a contract;

(v) an agreement;

(vi) a document; or

(vii) a recording in any medium.

(107) "Residence" means a person's principal place of abode within Utah.

(108) "Resident," in relation to a resort, means the same as that term is defined in Section 32B-8-102.

(109) "Resort" means the same as that term is defined in Section 32B-8-102.

(110) "Resort facility" means the same as the commission defines that term by rule.

(111) "Resort license" means a license issued in accordance with Chapter 5, Retail License Act, and Chapter 8, Resort License Act.

(112) "Responsible alcohol service plan" means a written set of policies and procedures that outlines measures to prevent employees from:

(a) over-serving alcoholic beverages to customers;

(b) serving alcoholic beverages to customers who are actually, apparently, or obviously intoxicated; and

(c) serving alcoholic beverages to minors.

(113) "Restaurant" means a business location:

(a) at which a variety of foods are prepared;

(b) at which complete meals are served; and

(c) that is engaged primarily in serving meals.

(114) "Restaurant license" means one of the following licenses issued under this title:

(a) a full-service restaurant license;

(b) a limited-service restaurant license; or

(c) a beer-only restaurant license.

(115) "Restaurant venue" means a room within a restaurant that:

(a) is located on the licensed premises of a restaurant licensee;

(b) is separated from the area within the restaurant for a patron's consumption of food by a permanent, opaque, floor-to-ceiling wall such that the inside of the room is not visible to a patron in the area within the restaurant for a patron's consumption of food; and

(c)

(i) has at least 1,000 square feet that:

(A) may be reserved for a banquet; and

(B) accommodates at least 75 individuals; or

(ii) if the restaurant is located in a small or unincorporated locality, has an appropriate amount of space, as determined by the commission, that may be reserved for a banquet.

(116) "Retail license" means one of the following licenses issued under this title:

(a) a full-service restaurant license;

(b) a master full-service restaurant license;

(c) a limited-service restaurant license;

(d) a master limited-service restaurant license;

(e) a bar establishment license;

(f) an airport lounge license;

(g) an on-premise banquet license;

(h) an on-premise beer license;

(i) a reception center license;

(j) a beer-only restaurant license;

(k) a hospitality amenity license;

(l) a resort license;

(m) a hotel license; or

(n) an arena license.

(117) "Room service" means furnishing an alcoholic product to a person in a guest room or privately owned dwelling unit of a:

(a) hotel; or

(b) resort facility.

(118)

(a) "School" means a building in which any part is used for more than three hours each weekday during a school year as a public or private:

(i) elementary school;

(ii) secondary school; or

(iii) kindergarten.

(b) "School" does not include:

(i) a nursery school;

(ii) a day care center;

(iii) a trade and technical school;

(iv) a preschool;

(v) a home school;

(vi) a home-based microschool as defined in Section 53G-6-201; or

(vii) a micro-education entity as defined in Section 53G-6-201.

(119) "Secondary flavoring ingredient" means any spirituous liquor added to a beverage for additional flavoring that is different in type, flavor, or brand from the primary spirituous liquor in the beverage.

(120) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby, for consideration, an alcoholic product is either directly or indirectly transferred, solicited, ordered, delivered for value, or by a means or under a pretext is promised or obtained, whether done by a person as a principal, proprietor, or as staff, unless otherwise defined in this title or the rules made by the commission.

(121) "Serve" means to place an alcoholic product before an individual.

(122) "Sexually oriented entertainer" means a person who while in a state of seminudity appears at or performs:

(a) for the entertainment of one or more patrons;

(b) on the premises of:

(i) a bar licensee; or

(ii) a tavern;

(c) on behalf of or at the request of the licensee described in Subsection (122)(b);

(d) on a contractual or voluntary basis; and

(e) whether or not the person is designated as:

(i) an employee;

(ii) an independent contractor;

(iii) an agent of the licensee; or

(iv) a different type of classification.

(123) "Shared seating area" means the licensed premises of two or more restaurant licensees that the restaurant licensees share as an area for alcoholic beverage consumption in accordance with Subsection 32B-5-207(3).

(124) "Single event permit" means a permit issued in accordance with Chapter 9, Part 3, Single Event Permit.

(125) "Small brewer" means a brewer who manufactures less than 60,000 barrels of beer, heavy beer, and flavored malt beverage per year, as the department calculates by:

(a) if the brewer is part of a controlled group of manufacturers, including the combined volume totals of production for all breweries that constitute the controlled group of manufacturers; and

(b) excluding beer, heavy beer, or flavored malt beverage the brewer:

(i) manufactures that is unfit for consumption as, or in, a beverage, as the commission determines by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and

(ii) does not sell for consumption as, or in, a beverage.

(126) "Small or unincorporated locality" means:

(a) a city of the third, fourth, or fifth class, as classified under Section 10-2-301;

(b) a town, as classified under Section 10-2-301; or

(c) an unincorporated area in a county of the third, fourth, or fifth class, as classified under Section 17-60-104.

(127) "Spa sublicense" means a sublicense:

(a) to a resort license or hotel license; and

(b) that the commission issues in accordance with Chapter 8d, Part 2, Resort Spa Sublicense.

(128) "Special use permit" means a permit issued in accordance with Chapter 10, Special Use Permit Act.

(129)

(a) "Spirituous liquor" means liquor that is distilled.

(b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by 27 U.S.C. Sec. 211 and 27 C.F.R. Secs. 5.11 through 5.23.

(130) "Sports center" means the same as the commission defines that term by rule.

(131)

(a) "Staff" means an individual who engages in activity governed by this title:

(i) on behalf of a business, including a package agent, licensee, permittee, or certificate holder;

(ii) at the request of the business, including a package agent, licensee, permittee, or certificate holder; or

(iii) under the authority of the business, including a package agent, licensee, permittee, or certificate holder.

(b) "Staff" includes:

(i) an officer;

(ii) a director;

(iii) an employee;

(iv) personnel management;

(v) an agent of the licensee, including a managing agent;

(vi) an operator; or

(vii) a representative.

(132) "State of nudity" means:

(a) the appearance of:

(i) the nipple or areola of a female human breast;

(ii) a human genital;

(iii) a human pubic area; or

(iv) a human anus; or

(b) a state of dress that fails to opaquely cover:

(i) the nipple or areola of a female human breast;

(ii) a human genital;

(iii) a human pubic area; or

(iv) a human anus.

(133) "State of seminudity" means a state of dress in which opaque clothing covers no more than:

(a) the nipple and areola of the female human breast in a shape and color other than the natural shape and color of the nipple and areola; and

(b) the human genitals, pubic area, and anus:

(i) with no less than the following at its widest point:

(A) four inches coverage width in the front of the human body; and

(B) five inches coverage width in the back of the human body; and

(ii) with coverage that does not taper to less than one inch wide at the narrowest point.

(134)

(a) "State store" means a facility for the sale of packaged liquor:

(i) located on premises owned or leased by the state; and

(ii) operated by a state employee.

(b) "State store" does not include:

(i) a package agency;

(ii) a licensee; or

(iii) a permittee.

(135)

(a) "Storage area" means an area on licensed premises where the licensee stores an alcoholic product.

(b) "Store" means to place or maintain in a location an alcoholic product.

(136) "Sublicense" means:

(a) any of the following licenses issued as a subordinate license to, and contingent on the issuance of, a principal license:

(i) a full-service restaurant license;

(ii) a limited-service restaurant license;

(iii) a bar establishment license;

(iv) an on-premise banquet license;

(v) an on-premise beer retailer license;

(vi) a beer-only restaurant license; or

(vii) a hospitality amenity license; or

(b) a spa sublicense.

(137) "Supplier" means a person who sells an alcoholic product to the department.

(138) "Tavern" means an on-premise beer retailer who is:

(a) issued a license by the commission in accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-Premise Beer Retailer License; and

(b) designated by the commission as a tavern in accordance with Chapter 6, Part 7, On-Premise Beer Retailer License.

(139) "Temporary beer event permit" means a permit issued in accordance with Chapter 9, Part 4, Temporary Beer Event Permit.

(140) "Temporary domicile" means the principal place of abode within Utah of a person who does not have a present intention to continue residency within Utah permanently or indefinitely.

(141) "Translucent" means a substance that allows light to pass through, but does not allow an object or person to be seen through the substance.

(142) "Unsaleable liquor merchandise" means a container that:

(a) is unsaleable because the container is:

(i) unlabeled;

(ii) leaky;

(iii) damaged;

(iv) difficult to open; or

(v) partly filled;

(b)

(i) has faded labels or defective caps or corks;

(ii) has contents that are:

(A) cloudy;

(B) spoiled; or

(C) chemically determined to be impure; or

(iii) contains:

(A) sediment; or

(B) a foreign substance; or

(c) is otherwise considered by the department as unfit for sale.

(143)

(a) "Wine" means an alcoholic product obtained by the fermentation of the natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not another ingredient is added.

(b) "Wine" includes:

(i) an alcoholic beverage defined as wine under 27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 4.10; and

(ii) hard cider.

(c) "Wine" is considered liquor for purposes of this title, except as otherwise provided in this title.

(144) "Winery manufacturing license" means a license issued in accordance with Chapter 11, Part 3, Winery Manufacturing License.

§ 32B-1-103 Policy.

The policies of the state are as follows:

(1) This title shall be administered in a manner that is nonpartisan and free of partisan political influence.

(2) Alcoholic product control shall be operated as a public business using sound management principles and practices. This public business shall:

(a) be governed by a commission;

(b) be operated by a department; and

(c) function with the intent of servicing the public demand for alcoholic products.

(3) The commission and department may not promote or encourage the sale or consumption of alcoholic products.

(4) The commission shall conduct, license, and regulate the sale of alcoholic products in a manner and at prices that:

(a) reasonably satisfy the public demand and protect the public interest, including the rights of citizens who do not wish to be involved with alcoholic products; and

(b) will promote the reduction of the harmful effects of:

(i) overconsumption of alcoholic products by adults; and

(ii) consumption of alcoholic products by minors.

§ 32B-1-104 Exercise of police powers -- Severability.

(1)

(a) This title is an exercise of the police powers of the state for the protection of the public health, peace, safety, welfare, and morals, and regulates the storage, sale, offer for sale, furnishing, consumption, manufacture, and distribution of an alcoholic product.

(b) This title governs alcoholic product control unless otherwise provided in this title.

(2)

(a) A licensee or permittee has the rights and privileges described in this title that are applicable to the licensee's or permittee's license or permit.

(b) A licensee or permittee may engage in an activity related to the storage, sale, offer for sale, furnishing, consumption, manufacture, or distribution of an alcoholic product only if the activity is expressly permitted under this title or a rule authorized under this title and made by the commission.

(3) The department and the commission:

(a) shall implement and enforce the provisions of this title in accordance with the express language of the provisions of this title and in a manner consistent with the policy described in Section 32B-1-103; and

(b) may not waive any provision of this title.

(4) If a provision of this title or the application of a provision to a person or circumstance is held invalid, the remainder of this title shall be given effect without the invalid provision or application. The provisions of this title are severable.

Part 2 Miscellaneous Provisions

§ 32B-1-201 Restrictions on number of retail licenses that may be issued -- Determining population -- Exempt licenses.

(1) As used in this section:

(a) "Alcohol-related law enforcement officer" means a law enforcement officer employed by the Department of Public Safety that has as a primary responsibility:

(i) the enforcement of this title; or

(ii) the enforcement of Title 41, Chapter 6a, Part 5, Driving Under the Influence and Reckless Driving.

(b) "Enforcement ratio" is the number calculated as follows:

(i) determine the quotient equal to the sum of the total number of quota retail licenses available and the total number of licensed premises operating under a master full-service restaurant license or under a master limited-service restaurant license divided by the total number of alcohol-related law enforcement officers; and

(ii) round the number determined in accordance with Subsection (1)(b)(i) up to the nearest whole number.

(c) "Quota retail license" means:

(i) a full-service restaurant license;

(ii) a limited-service restaurant license;

(iii) a bar establishment license;

(iv) an on-premise banquet license;

(v) an on-premise beer retailer operating as a tavern; and

(vi) a reception center license.

(d) "Total number of alcohol-related law enforcement officers" means the total number of positions designated as alcohol-related law enforcement officers that are funded as of a specified date as certified by the Department of Public Safety to the department.

(e) "Total number of quota retail licenses available" means the number calculated by:

(i) determining as of a specified date for each quota retail license the number of licenses that the commission may not exceed calculated by dividing the population of the state by the number specified in the relevant provision for the quota retail license; and

(ii) adding together the numbers determined under Subsection (1)(e)(i).

(2)

(a) Beginning on July 1, 2012, the department shall annually determine the enforcement ratio as of July 1 of that year.

(b) If, beginning on July 1, 2012, the enforcement ratio is greater than 52, the commission may not issue a quota retail license for the 12-month period beginning on the July 1 for which the enforcement ratio is greater than 52.

(c) Notwithstanding Subsection (2)(b), the commission may issue a quota retail license during the 12-month period described in Subsection (2)(b) beginning on the day on which a sufficient number of alcohol-related law enforcement officers are employed so that if the enforcement ratio is calculated, the enforcement ratio would be equal to or less than 52.

(d) Once the Department of Public Safety certifies under Subsection (1)(d) the total number of positions designated as alcohol-related law enforcement officers that are funded as of July 1, the Department of Public Safety may not use the funding for the designated alcohol-related law enforcement officers for a purpose other than funding those positions.

(3) For purposes of determining the number of state stores that the commission may establish or the number of package agencies or retail licenses that the commission may issue, the commission shall determine population by:

(a) the most recent United States decennial or special census; or

(b) another population determination made by the United States or state governments.

(4) The commission may not consider a retail license that meets the following conditions in determining the total number of licenses available for that type of retail license that the commission may issue at any time:

(a) the retail license was issued to a club licensee designated as a dining club as of July 1, 2011; and

(b) the dining club license is converted to another type of retail license in accordance with Section 32B-6-409.

§ 32B-1-202 Proximity to community location.

(1) As used in this section:

(a) "Designated project area zone" means the area that is:

(i) bounded by:

(A) South Temple Street;

(B) 100 South Street;

(C) West Temple Street; and

(D) 400 West Street; and

(ii) within a project area as defined in Section 63N-23-801.

(b)

(i) "Outlet" means:

(A) a state store;

(B) a package agency; or

(C) a retail licensee.

(ii) "Outlet" does not include:

(A) an airport lounge licensee; or

(B) a restaurant.

(c) "Restaurant" means:

(i) a full-service restaurant licensee;

(ii) a limited-service restaurant licensee;

(iii) a beer-only restaurant licensee; or

(iv) a restaurant venue on-premise banquet licensee.

(2)

(a) Except as otherwise provided in this section or Section 32B-1-202.1, the commission may not issue a license for an outlet if, on the date the commission takes final action to approve or deny the application, there is a community location:

(i) within 600 feet of the proposed outlet, as measured from the nearest patron entrance of the proposed outlet by following the shortest route of ordinary pedestrian travel to the property boundary of the community location; or

(ii) within 200 feet of the proposed outlet, measured in a straight line from the nearest patron entrance of the proposed outlet to the nearest property boundary of the community location.

(b) Except as otherwise provided in this section or Section 32B-1-202.1, the commission may not issue a license for a restaurant if, on the date the commission takes final action to approve or deny the application, there is a community location:

(i) within 300 feet of the proposed restaurant, as measured from the nearest patron entrance of the proposed restaurant by following the shortest route of ordinary pedestrian travel to the property boundary of the community location; or

(ii) within 200 feet of the proposed restaurant, measured in a straight line from the nearest patron entrance of the proposed restaurant to the nearest property boundary of the community location.

(3)

(a) For an outlet or a restaurant that holds a license on May 9, 2017, and operates under a previously approved variance to one or more proximity requirements in effect before May 9, 2017, subject to the other provisions of this title, that outlet or restaurant, or another outlet or restaurant with the same type of license as that outlet or restaurant, may operate under the previously approved variance regardless of whether:

(i) the outlet or restaurant changes ownership;

(ii) the property on which the outlet or restaurant is located changes ownership; or

(iii) there is a lapse in the use of the property as an outlet or a restaurant with the same type of license, unless during the lapse, the property is used for a different purpose.

(b) An outlet or a restaurant that has continuously operated at a location since before January 1, 2007, is considered to have a previously approved variance.

(4) An outlet or restaurant that holds a license on May 12, 2020, and operates in accordance with the proximity requirements in effect at the time the commission issued the license or operates under a previously approved variance described in Subsection (3), subject to the other provisions of this title, that outlet or restaurant or an outlet or a restaurant with the same type of license as that outlet or restaurant may operate at the premises regardless of whether:

(a) the outlet or restaurant changes ownership;

(b) the property on which the outlet or restaurant is located changes ownership; or

(c) there is a lapse of one year or less in the use of the property as an outlet or a restaurant with the same type of license, unless during the lapse the property is used for a different purpose.

(5)

(a) If, after an outlet or a restaurant obtains a license under this title, a person establishes a community location on a property that puts the outlet or restaurant in violation of the proximity requirements in effect at the time the license is issued or a previously approved variance described in Subsection (3), subject to the other provisions of this title, that outlet or restaurant, or an outlet or a restaurant with the same type of license as that outlet or restaurant, may operate at the premises regardless of whether:

(i) the outlet or restaurant changes ownership;

(ii) the property on which the outlet or restaurant is located changes ownership; or

(iii) there is a lapse in the use of the property as an outlet or a restaurant with the same type of license, unless during the lapse the property is used for a different purpose.

(b) The provisions of this Subsection (5) apply regardless of when the outlet's or restaurant's license is issued.

(6) The proximity requirements described in Subsection (2) do not apply:

(a) if the proposed outlet or proposed restaurant and the community location are located within the boundaries of a designated project area zone; or

(b) if a local authority includes in the consent of the local authority an acknowledgment and authorization of the outlet's or the restaurant's proximity to a public park, including any connected trail system, if the public park and connected trail system are:

(i) at least 12 acres in size;

(ii) on land the state owns; and

(iii) managed by the Point of the Mountain State Land Authority created in Section 11-59-201.

(7)

(a) Subject to Subsection (7)(b), the commission may issue a license to a restaurant that does not meet the proximity requirements of Subsection (2), if a local authority:

(i) includes in the consent of the local authority an acknowledgment and authorization of the restaurant's proximity to a community location; and

(ii) subject to Subsection (8), at least 30 days before the day on which the local authority issues the consent of the local authority, holds a public meeting in which the local authority shall give the public the opportunity to comment on the proposed location of the restaurant.

(b) Subsection (7)(a) does not apply if the community location is a church or school.

(8) In addition to the meeting requirement described in Subsection (7)(a)(ii), if the local authority is the Point of the Mountain State Land Authority created in Section 11-59-201, before the day on which the local authority holds the public meeting described in Subsection (7)(a)(ii), the municipality in which the local authority is located shall hold a separate public meeting in which the municipality shall give the public the opportunity to comment on the proposed location of the restaurant.

(9) Nothing in this section prevents the commission from considering the proximity of an educational, religious, and recreational facility, or any other relevant factor in reaching a decision on a proposed location of an outlet.

§ 32B-1-202.1 Proximity for certain hotel and arena licensees.

(1) As used in this section, "hotel" means the same as that term is defined in Section 32B-8b-102.

(2) The commission may issue a hotel license for a proposed location that does not meet the proximity requirements under Section 32B-1-202, if:

(a)

(i) the proposed hotel is:

(A) located in a city classified as a city of the first class under Section 10-2-301;

(B) within 650 feet of two community locations, as measured from the nearest patron entrance of the proposed hotel by following the shortest route of ordinary pedestrian travel to the property boundary of each community location;

(C) not within 300 feet of a community location, as measured from the nearest patron entrance of the proposed hotel by following the shortest route of ordinary pedestrian travel to the property boundary of the community location; and

(D) not within 200 feet of a community location, as measured in a straight line from the nearest patron entrance of the proposed hotel to the nearest property boundary of the community location; or

(ii) the community location is not a school or church, a local authority:

(A) includes in the consent of the local authority an acknowledgment and authorization of the hotel's proximity to a community location; and

(B) subject to Subsection (5), at least 30 days before the day on which the local authority issues the consent of the local authority, holds a public meeting in which the local authority shall give the public the opportunity to comment on the proposed location of the hotel;

(b) the proposed sublicensed premises of a bar establishment sublicense under the hotel license:

(i) is on the second or higher floor of a hotel;

(ii) is not accessible at street level; and

(iii) is only accessible to an individual who passes through another area of the hotel in which the bar establishment sublicense is located; and

(c) the applicant meets all other criteria under this title for the hotel license.

(3) The commission may issue authority to operate as a package agency to a hotel licensee who meets the requirements described in Subsection (2).

(4)

(a) The commission may issue an arena license for a proposed location that does not meet the proximity requirements described in Section 32B-1-202, if, on the day before the day on which the commission issues the license, each proposed sublicense of the arena license:

(i) operates as an outlet or restaurant; and

(ii)

(A) operates on the proposed sublicense premises under a variance to one or more proximity requirements in accordance with Section 32B-1-202; or

(B) has been in operation on the proposed sublicense premises for at least 10 years.

(b) After the commission issues an arena license in accordance with Subsection (4)(a), the commission may not issue the arena licensee an additional sublicense.

(5) In addition to the meeting requirement described in Subsection (2)(a)(ii)(B), if the local authority is the Point of the Mountain State Land Authority created in Section 11-59-201, before the day on which the local authority holds the public meeting described in Subsection (2)(a)(ii)(B), the municipality in which the local authority is located shall hold a separate public meeting in which the municipality shall give the public the opportunity to comment on the proposed location of the hotel.

§ 32B-1-203 Licensee compliance with other laws.

(1) A licensee and a person applying for a license shall comply with the applicable federal and state laws pertaining to payment of taxes and contributions to unemployment and insurance funds to which the licensee or person may be subject.

(2) The commission:

(a) may not issue a license to a person who violates this section; and

(b) may suspend, revoke, or not renew the license of a licensee who violates this section.

§ 32B-1-204 Powers of local authority.

(1) If this title expressly addresses an issue related to alcoholic product control in this state, a local authority may not regulate in relation to that issue except when a local authority is expressly granted regulatory authority to regulate the issue by this title.

(2) If this title does not expressly address an issue related to alcoholic product control, a local authority may regulate that issue if the regulation:

(a) is of the sale, offer for sale, furnishing, or consumption of an alcoholic product; and

(b) does not conflict with this title.

§ 32B-1-205 Falsifying or taking other actions with records prohibited.

(1) A person required to make or maintain a record under this title or rules of the commission, or a person acting for that person, may not knowingly forge, falsify, alter, cancel, destroy, conceal, or remove the record for the purpose of deceiving the commission, a commissioner, the director, the department, a department employee, or a law enforcement officer.

(2) A violation of this section may result in:

(a) disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, if the person who violates this section is a person subject to administrative action; or

(b) criminal prosecution if the violation is a criminal offense under Chapter 4, Criminal Offenses and Procedure Act.

§ 32B-1-206 Advertising prohibited -- Exceptions.

(1)

(a) The department may not advertise liquor, except:

(i) the department may provide for an appropriate sign in the window or on the front of a state store or package agency denoting that it is a state authorized liquor retail facility;

(ii) the department or a package agency may provide a printed price list to the public;

(iii) the department may authorize the use of price posting and floor stacking of liquor within a state store;

(iv) subject to Subsection (1)(b), the department may provide a listing of the address and telephone number of a state store in one or more printed or electronic directories available to the general public; and

(v) subject to Subsection (1)(b), a package agency may provide a listing of its address and telephone number in one or more printed or electronic directories available to the general public.

(b) A listing under Subsection (1)(a)(iv) or (v) in the business or yellow pages of a telephone directory may not be displayed in an advertisement or other promotional format.

(2)

(a) The department may not advertise an alcoholic product on a billboard.

(b) A package agency may not advertise an alcoholic product on a billboard, except to the extent allowed by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(3)

(a) The department may not display liquor or a price list in a window or showcase visible to passersby.

(b) A package agency may not display liquor or a price list in a window or showcase visible to passersby, except to the extent allowed by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(4) A public transit district, as defined in Section 17B-2a-802, may not allow advertising on a transit vehicle, as defined in Section 17B-2a-802, that promotes an alcoholic product.

(5) Advertising of an alcoholic product may not:

(a) promote the intoxicating effects of alcohol; or

(b) emphasize the high alcohol content of the alcoholic product.

(6) Except to the extent prohibited by this title, the advertising of an alcoholic product is allowed under guidelines established by the commission by rule.

(7) The advertising or use of any means or media to offer an alcoholic product to the general public without charge is prohibited.

§ 32B-1-207 Calculation of ratio of gross receipts of food to alcoholic product.

In calculating the annual gross receipts of a retail license or sublicense for purposes of determining the percentage of gross receipts from the sale, offer for sale, or furnishing of food or an alcoholic product, a retail licensee may not include in the calculation the money from the sale of:

(1) a bottle of wine by the retail licensee or under a sublicense that is in excess of $175;

(2) an individual portion of wine, as described in Subsection 32B-5-304(2)(a), by the retail licensee or under a sublicense that is in excess of $30; or

(3) an individual portion of spirituous liquor, as described in Subsection 32B-5-304(1), by the retail licensee or under a sublicense that is in excess of $30.

§ 32B-1-208 Percentage lease agreements.

(1) As used in this section:

(a) "Percentage lease agreement" means a lease agreement in which the lessee:

(i) is a retail licensee; and

(ii) pays the lessor:

(A) a base rent; and

(B) percentage rent.

(b) "Percentage rent" means a percentage:

(i) agreed upon between a lessor and lessee; and

(ii) of the total sales revenue that:

(A) exceed a fixed dollar amount of sales revenue; and

(B) the lessee earns while doing business on the rental premises.

(2)

(a) The parties to a percentage lease agreement shall submit a copy of the percentage lease agreement to the department.

(b) If there is a material change to the percentage lease agreement submitted to the department under Subsection (2)(a), the parties to the percentage lease agreement shall promptly submit a copy of the changed percentage lease agreement to the department.

(3) If a percentage lease agreement requires a retail licensee to pay the lessor a percentage rent of 6% or less, the department may not conduct any further investigation into the percentage lease agreement.

(4) The commission shall make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing:

(a) the maximum percentage of revenue from alcohol sales a percentage lease agreement may require; and

(b) the procedure for submitting a percentage lease agreement under Subsection (2).

(5)

(a) The provisions of this section do not apply to a percentage lease agreement in which the lessee is an airport lounge licensee.

(b) Nothing in this title prohibits an airport lounge licensee from entering into a percentage lease agreement, regardless of the percentage rent specified in the percentage lease agreement.

Part 3 Qualifications and Background

§ 32B-1-301 Title.

This part is known as "Qualifications and Background."

§ 32B-1-302 Definitions.

Reserved

§ 32B-1-303 Qualifications related to employment with the department.

(1) The department may not employ a person if that person has been convicted of:

(a) within seven years before the day on which the department employs the person, a felony under a federal law or state law;

(b) within four years before the day on which the department employs the person:

(i) a violation of a federal law, state law, or local ordinance concerning the sale, offer for sale, warehousing, manufacture, distribution, transportation, or adulteration of an alcoholic product; or

(ii) a crime involving moral turpitude; or

(c) on two or more occasions within the five years before the day on which the department employs the person, driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs.

(2) The director may terminate a department employee or take other disciplinary action consistent with Title 63A, Chapter 17, Utah State Personnel Management Act, if:

(a) after the day on which the department employs the department employee, the department employee is found to have been convicted of an offense described in Subsection (1) before being employed by the department; or

(b) on or after the day on which the department employs the department employee, the department employee:

(i) is convicted of an offense described in Subsection (1)(a) or (b); or

(ii)

(A) is convicted of driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs; and

(B) was convicted of driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs within five years before the day on which the person is convicted of the offense described in Subsection (2)(b)(ii)(A).

(3) The director may immediately suspend a department employee for the period during which a criminal matter is being adjudicated if the department employee:

(a) is arrested on a charge for an offense described in Subsection (1)(a) or (b); or

(b)

(i) is arrested on a charge for the offense of driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs; and

(ii) was convicted of driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs within five years before the day on which the person is arrested on a charge described in Subsection (3)(b)(i).

§ 32B-1-304 Qualifications for a package agency, license, or permit -- Minors.

(1)

(a) Except as provided in Subsection (7), the commission may not issue a package agency, license, or permit to a person who has been convicted of:

(i) within seven years before the day on which the commission issues the package agency, license, or permit, a felony under a federal law or state law;

(ii) within four years before the day on which the commission issues the package agency, license, or permit:

(A) a violation of a federal law, state law, or local ordinance concerning the sale, offer for sale, warehousing, manufacture, distribution, transportation, or adulteration of an alcoholic product; or

(B) a crime involving moral turpitude; or

(iii) on two or more occasions within the five years before the day on which the package agency, license, or permit is issued, driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs.

(b) If the person is a partnership, corporation, or limited liability company, the proscription under Subsection (1)(a) applies if any of the following has been convicted of an offense described in Subsection (1)(a):

(i) a partner;

(ii) a managing agent;

(iii) a manager;

(iv) an officer;

(v) a director;

(vi) a stockholder who holds at least 20% of the total issued and outstanding stock of the corporation; or

(vii) a member who owns at least 20% of the limited liability company.

(c) Except as provided in Subsection (7), the proscription under Subsection (1)(a) applies if a person who is employed to act in a supervisory or managerial capacity for a package agency, licensee, or permittee has been convicted of an offense described in Subsection (1)(a).

(2) Except as described in Section 32B-8-501, the commission may immediately suspend or revoke a package agency, license, or permit, and terminate a package agency agreement, if a person described in Subsection (1):

(a) after the day on which the package agency, license, or permit is issued, is found to have been convicted of an offense described in Subsection (1)(a) before the package agency, license, or permit is issued; or

(b) on or after the day on which the package agency, license, or permit is issued:

(i) is convicted of an offense described in Subsection (1)(a)(i) or (ii); or

(ii)

(A) is convicted of driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs; and

(B) was convicted of driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs within five years before the day on which the person is convicted of the offense described in Subsection (2)(b)(ii)(A).

(3) Except as described in Section 32B-8-501, the director may take emergency action by immediately suspending the operation of the package agency, licensee, or permittee for the period during which a criminal matter is being adjudicated if a person described in Subsection (1):

(a) is arrested on a charge for an offense described in Subsection (1)(a)(i) or (ii); or

(b)

(i) is arrested on a charge for the offense of driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs; and

(ii) was convicted of driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs within five years before the day on which the person is arrested on a charge described in Subsection (3)(b)(i).

(4)

(a)

(i) The commission may not issue a package agency, license, or permit to a person who has had any type of agency, license, or permit issued under this title revoked within the last three years.

(ii) The commission may not issue a package agency, license, or permit to a partnership, corporation, or limited liability company if a partner, managing agent, manager, officer, director, stockholder who holds at least 20% of the total issued and outstanding stock of the corporation, or member who owns at least 20% of the limited liability company is or was:

(A) a partner or managing agent of a partnership that had any type of agency, license, or permit issued under this title revoked within the last three years;

(B) a managing agent, officer, director, or stockholder who holds or held at least 20% of the total issued and outstanding stock of any corporation that had any type of agency, license, or permit issued under this title revoked within the last three years; or

(C) a manager or member who owns or owned at least 20% of a limited liability company that had any type of agency, license, or permit issued under this title revoked within the last three years.

(b) The commission may not issue a package agency, license, or permit to a partnership, corporation, or limited liability company if any of the following had any type of agency, license, or permit issued under this title revoked while acting in that person's individual capacity within the last three years:

(i) a partner or managing agent of a partnership;

(ii) a managing agent, officer, director, or stockholder who holds at least 20% of the total issued and outstanding stock of a corporation; or

(iii) a manager or member who owns at least 20% of a limited liability company.

(c) The commission may not issue a package agency, license, or permit to a person acting in an individual capacity if that person was:

(i) a partner or managing agent of a partnership that had any type of agency, license, or permit issued under this title revoked within the last three years;

(ii) a managing agent, officer, director, or stockholder who held at least 20% of the total issued and outstanding stock of a corporation that had any type of agency, license, or permit issued under this title revoked within the last three years; or

(iii) a manager or member who owned at least 20% of the limited liability company that had any type of agency, license, or permit issued under this title revoked within the last three years.

(5)

(a) The commission may not issue a package agency, license, or permit to a minor.

(b) The commission may not issue a package agency, license, or permit to a partnership, corporation, or limited liability company if any of the following is a minor:

(i) a partner or managing agent of the partnership;

(ii) a managing agent, officer, director, or stockholder who holds at least 20% of the total issued and outstanding stock of the corporation; or

(iii) a manager or member who owns at least 20% of the limited liability company.

(c) For purposes of Subsection (5)(b), the commission may not consider a minor's position with or ownership interest in an entity that has an ownership interest in the entity that is applying for the package agency, license, or permit unless the minor would exercise direct decision-making control over the package agency, license, or permit.

(6) Except as described in Section 32B-8-501, if a package agent, licensee, or permittee no longer possesses the qualifications required by this title for obtaining a package agency, license, or permit, the commission may terminate the package agency agreement, or revoke the license or permit.

(7)

(a) If the licensee is a resort licensee:

(i) Subsection (1)(a) only applies if an individual listed in Subsection (1)(b) engages in the management of the resort, as the commission defines in rule; and

(ii) Subsection (1)(c) only applies to an individual employed to act in a supervisory or managerial capacity for the resort licensee or in relation to a sublicense of the resort license.

(b) If the permittee is a public service permittee under Chapter 10, Special Use Permit Act:

(i) Subsection (1)(a) only applies if an individual listed in Subsection (1)(b) engages in the management of the public service permittee, as the commission defines in rule; and

(ii) Subsection (1)(c) only applies to an individual employed to act in a supervisory or managerial capacity for the public service permittee.

§ 32B-1-305 Requirement for a background check.

(1) The department shall require an individual listed in Subsection (2), in accordance with this part, to:

(a) provide a signed waiver from the individual whose fingerprints may be registered in the Federal Bureau of Investigation Rap Back system that notifies the signee:

(i) that a criminal history background check will be conducted;

(ii) who will see the information; and

(iii) how the information will be used;

(b) submit to a background check in a form acceptable to the department; and

(c) consent to a background check by:

(i) the Utah Bureau of Criminal Identification; and

(ii) the Federal Bureau of Investigation.

(2) The following shall comply with Subsection (1):

(a) an individual applying for employment with the department if:

(i) the department makes the decision to offer the individual employment with the department; and

(ii) once employed, the individual will receive benefits;

(b) an individual applying to the commission to operate a package agency;

(c) an individual applying to the commission for a license, unless the license is an off-premise beer retailer state license;

(d) an individual who with regard to an entity that is applying to the commission to operate a package agency or for a license is:

(i) a partner;

(ii) a managing agent;

(iii) a manager;

(iv) an officer;

(v) a director;

(vi) a stockholder who holds at least 20% of the total issued and outstanding stock of a corporation;

(vii) a member who owns at least 20% of a limited liability company; or

(viii) an individual employed to act in a supervisory or managerial capacity; or

(e) an individual who becomes involved with an entity that operates a package agency or holds a license, if the individual is in a capacity listed in Subsection (2)(d) on or after the day on which the entity:

(i) is approved to operate a package agency; or

(ii) is licensed by the commission.

(3)

(a) Except as provided in Subsection (3)(b), the commission may not require an individual to comply with Subsection (1) based on the individual's position with or ownership interest in an entity that has an ownership interest in the entity that is applying for the package agency or license.

(b) The commission may require an individual described in Subsection (3)(a) to comply with Subsection (1) if the individual exercises direct decision making control over the day-to-day operations of the package agency or licensee.

(4) The department shall require compliance with Subsection (2)(e) as a condition of an entity's:

(a) continued operation of a package agency; or

(b) renewal of a license.

(5) The department may require as a condition of continued employment that a department employee:

(a) submit to a background check in a form acceptable to the department; and

(b) consent to a fingerprint criminal background check by:

(i) the Utah Bureau of Criminal Identification; and

(ii) the Federal Bureau of Investigation.

§ 32B-1-306 Use of information from a criminal background check.

The commission or department may use information obtained pursuant to Section 32B-1-305 only for one or more of the following purposes:

(1) enforcing this title;

(2) determining whether an individual is convicted of any of the following offenses that disqualify the individual under this title from acting in a capacity described in Subsection 32B-1-305(2):

(a) within the previous seven years, a felony under federal law or state law;

(b) within the previous four years:

(i) a violation of a federal law, state law, or local ordinance concerning the sale, offer for sale, warehousing, manufacture, distribution, transportation, or adulteration of an alcoholic product; or

(ii) a crime involving moral turpitude; or

(c) on two or more occasions within the previous five years, driving under the influence of alcohol, drugs, or the combined influence of alcohol and drugs;

(3) determining whether an individual fails to accurately disclose the individual's criminal history on an application or document filed with the department or commission;

(4) approving or denying an application for employment with the department;

(5) taking disciplinary action against a department employee, including possible termination of employment;

(6) issuing or denying an application to operate a package agency;

(7) issuing or denying an application for a license;

(8) issuing or denying the renewal of a package agency agreement;

(9) issuing or denying the renewal of a license;

(10) suspending the operation of a package agency;

(11) terminating a package agency contract; or

(12) suspending or revoking a license.

§ 32B-1-307 Background check procedure.

(1)

(a) An individual described in Subsections 32B-1-305(2)(b) through (e) shall submit to a background check in a form acceptable to the department, including submitting fingerprints, at the expense of the individual.

(b) The department shall pay the expense of obtaining a background check, including obtaining fingerprints, required of:

(i) an individual applying for employment with the department; or

(ii) a department employee.

(2)

(a) The department shall establish a procedure for obtaining and evaluating relevant information from a criminal history record maintained by the Utah Bureau of Criminal Identification pursuant to Title 53, Chapter 10, Part 2, Bureau of Criminal Identification, for a purpose outlined in Section 32B-1-306.

(b) An individual described in Subsections 32B-1-305(2)(b) through (e) shall pay to the department the expense of obtaining the criminal history record described in Subsection (2)(a).

(c) The department shall pay the expense of obtaining the criminal history record required for:

(i) an individual applying for employment with the department; or

(ii) a department employee.

(3)

(a) The department shall submit fingerprints obtained under Subsection (1) of an individual to the Utah Bureau of Criminal Identification to be forwarded to the Federal Bureau of Investigation for a nationwide criminal history record check.

(b) An individual described in Subsections 32B-1-305(2)(b) through (e) shall pay to the department the expense of obtaining the criminal history record described in Subsection (3)(a).

(c) The department shall pay the expense of obtaining the criminal history record required for:

(i) an individual applying for employment with the department; or

(ii) a department employee.

(4)

(a) The Utah Bureau of Criminal Identification:

(i) shall check the fingerprints submitted under Subsection (1) against the applicable state and regional criminal records databases and submit the fingerprints to national criminal records databases;

(ii) shall maintain a separate file of fingerprints submitted under Subsection (1) for search by future submissions to the state and regional records databases, including latent prints, and notify the department when a new entry is made against a person whose fingerprints are held in the separate file;

(iii) shall release to the department all information received in response to the department's request; and

(iv) may request that the fingerprints be retained in the Federal Bureau of Investigation Rap Back system for search by future submissions to national criminal records databases, including latent prints.

(b) The department shall establish a privacy risk mitigation strategy to ensure that the department only receives notifications for individuals with whom the department maintains a regulatory or employment relationship.

(5) The department shall pay the Utah Bureau of Criminal Identification the costs incurred in providing the department criminal background information.

(6)

(a) The following may not disseminate a criminal history record obtained under this part to any person except for a purpose described in Section 32B-1-306:

(i) the commission;

(ii) a commissioner;

(iii) the director;

(iv) the department; or

(v) a department employee.

(b)

(i) Notwithstanding Subsection (6)(a), a criminal history record obtained under this part may be provided by the department to the individual who is the subject of the criminal history record.

(ii) The department shall provide an individual who is the subject of a criminal history record and who requests the criminal history record an opportunity to:

(A) review the criminal history record; and

(B) respond to information in the criminal history record.

(7) If an individual described in Subsection 32B-1-305(2) is determined to be disqualified under Subsection 32B-1-306(2), the department shall provide the individual with:

(a) notice of the reason for the disqualification; and

(b) an opportunity to respond to the disqualification.

Part 4 Proof of Age Act

§ 32B-1-401 Title.

This part is known as the "Proof of Age Act."

§ 32B-1-402 Definitions.

As used in this part:

(1) "Authorized person" means a person authorized by law to sell or otherwise handle an alcoholic product.

(2) "Restricted area" means a place where an alcoholic product is sold or consumed, but where under this title a minor is not permitted.

(3) "Statement of age" means a statement signed under Section 32B-1-405 verifying the age of the person signing the statement.

§ 32B-1-403 Unlawful transfer or use of proof of age -- False information.

(1)

(a) It is unlawful for a person to transfer that person's proof of age to another person to aid that person:

(i) in procuring an alcoholic product;

(ii) in gaining admittance to a restricted area; or

(iii) in obtaining employment that under this title may not be obtained by a minor.

(b) A person who permits that person's proof of age to be used by another for a purpose stated in Subsection (1)(a) is guilty of a class B misdemeanor.

(2)

(a) It is unlawful for a person to use a proof of age containing false information with the intent to:

(i) procure an alcoholic product;

(ii) gain admittance to a restricted area; or

(iii) obtain employment that under this title may not be obtained by a minor.

(b) Except as provided in Section 32B-4-411, a person who violates this Subsection (2) is guilty of a class A misdemeanor.

§ 32B-1-404 Presentation of proof of age upon request.

(1) To obtain one or more of the following, an individual shall present proof of age at the request of a person listed in Subsection (2):

(a) an alcoholic product;

(b) admittance to a restricted area; or

(c) employment that under this title may not be obtained by a minor.

(2) To determine whether the individual described in Subsection (1) is 21 years of age, the following may request a person described in Subsection (1) to present proof of age:

(a) an authorized person;

(b) a peace officer;

(c) a representative of the State Bureau of Investigation of the Department of Public Safety, established in Section 53-10-301; or

(d) an authorized department employee.

§ 32B-1-405 Additional requirements when age is in question.

(1)

(a) In addition to requesting the presentation of proof of age under Section 32B-1-404, an authorized person shall require an individual whose age is in question to sign a statement of age on the form provided under Subsection (1)(b) that includes:

(i) the date the statement of age is signed; and

(ii) the number assigned to the individual's proof of age by the issuing authority.

(b) At the request of a retail licensee, the commissioner of public safety shall provide to a retail licensee the form for the statement of age described in this Subsection (1).

(2)

(a) An authorized person shall:

(i) file in alphabetical order a statement of age obtained under Subsection (1) by no later than the close of business on the day on which the statement of age is executed; and

(ii) maintain a statement of age on file for three years.

(b) A statement of age is subject to examination by:

(i) a peace officer;

(ii) a representative of the State Bureau of Investigation of the Department of Public Safety, established in Section 53-10-301; or

(iii) an authorized department employee.

§ 32B-1-406 Acceptance of identification.

(1) An authorized person may accept as evidence of the legal age of the individual presenting the following:

(a) proof of age; or

(b) if a statement of age is required under Section 32B-1-405:

(i) proof of age; and

(ii) a statement of age.

(2) A statement of age, if properly completed, signed, and filed in accordance with Section 32B-1-405, may be offered as a defense in a case when there is at issue the legality of:

(a) selling, offering for sale, or furnishing an alcoholic product to the individual who signed the statement of age;

(b) admitting the individual who signed the statement of age into a restricted area; or

(c) allowing the individual who signed the statement of age to be employed in employment that under this title may not be obtained by a minor.

(3) An authorized person may not accept a driving privilege card issued in accordance with Section 53-3-207 as evidence of the legal age of an individual.

§ 32B-1-407 Verification of proof of age by applicable licensees.

(1) As used in this section, "applicable licensee" means:

(a) a bar;

(b) a tavern;

(c) a full-service restaurant;

(d) a limited-service restaurant;

(e) a beer-only restaurant; or

(f) an off-premise beer retailer selling, offering for sale, or furnishing beer as described in Subsection 32B-7-202(8).

(2) Notwithstanding any other provision of this part, an applicable licensee shall require that an authorized person for the applicable licensee verify proof of age as provided in this section.

(3)

(a) An authorized person is required to verify proof of age under this section before an individual who appears to be 35 years old or younger procures an alcoholic product on the premises of a full-service restaurant licensee, a limited-service restaurant licensee, or a beer-only restaurant licensee.

(b) An authorized person is required to verify proof of age under this section before an individual:

(i) gains admittance to the premises of a bar licensee or tavern; or

(ii) purchases beer from an off-premise beer retailer as described in Subsection 32B-7-202(8).

(c) When verifying proof of age under this Subsection (3), an authorized person shall verify that:

(i) the individual's age on the proof of age is at least 21 years old;

(ii) the picture on the proof of age matches the individual; and

(iii) if the proof of age is a driver license issued by this state, that the individual is not an interdicted person.

(4) To comply with Subsection (3), an authorized person shall:

(a) request that the individual present proof of age; and

(b)

(i) verify the validity of the proof of age electronically under the verification program created in Subsection (5); or

(ii) if the proof of age cannot be electronically verified as provided in Subsection (4)(b)(i), request that the individual comply with a process established by the commission by rule.

(5)

(a) The commission shall establish by rule an electronic verification program that includes the following:

(i) the specifications for the technology used by the applicable licensee to electronically verify proof of age, including that the technology display to the person described in Subsection (2) no more than the following for the individual who presents the proof of age:

(A) the name;

(B) the age;

(C) the number assigned to the individual's proof of age by the issuing authority;

(D) the birth date;

(E) the gender; and

(F) the status and expiration date of the individual's proof of age; and

(ii) the security measures that shall be used by an applicable licensee to ensure that information obtained under this section is:

(A) used by the applicable licensee only for purposes of verifying proof of age in accordance with this section; and

(B) retained by the applicable licensee for seven days after the day on which the applicable licensee obtains the information.

(b) The commission shall ensure that the electronic verification program described in Subsection (5)(a) includes technology that can determine the validity of a state issued identification card from the barcode located on the back of the state issued identification card by:

(i) comparing the card's barcode to the other legitimate barcodes; or

(ii) identifying patterns within legitimate state issued identification cards.

(6)

(a) An applicable licensee may not disclose information obtained under this section except as provided under this title.

(b) Information obtained under this section is considered a record for any purpose under Chapter 5, Part 3, Retail Licensee Operational Requirements.

(7)

(a) If, after an authorized person requests that an individual present proof of age in accordance with Subsection (4), the authorized person determines that the proof of age the individual presents is fake or the electronic verification program described in Subsection (5) determines that the proof of age is fake, the authorized person may, subject to Subsection (7)(b):

(i) if the proof of age is a physical proof of age, temporarily confiscate the proof of age; and

(ii) call law enforcement and request that law enforcement verify the validity of the proof of age.

(b) When an authorized person calls law enforcement in accordance with this Subsection (7):

(i) if law enforcement is unavailable to verify the validity of the proof of age within 30 minutes, the authorized person shall immediately return the proof of age to the individual; or

(ii) if law enforcement is available to verify the validity of the proof of age within 30 minutes, the authorized person may maintain control over the proof of age until law enforcement arrives to verify the proof of age.

§ 32B-1-408 Penalty.

(1) Unless otherwise provided in this title, including Section 32B-4-411, a person who violates this part is guilty of a class B misdemeanor.

(2) A person is not subject to a penalty for a violation of this part if it is proved to the commission or the court hearing the matter that the person charged with the violation acted in good faith.

Part 5 Attire, Conduct, and Entertainment Act

§ 32B-1-501 Title.

This part is known as the "Attire, Conduct, and Entertainment Act."

§ 32B-1-502 Purpose -- Application to other laws.

(1) This part establishes reasonable and uniform time, place, and manner of operation requirements relating to attire, conduct, and sexually oriented entertainers on premises or at an event at which an alcoholic product is sold, offered for sale, furnished, or allowed to be consumed under a retail license or permit issued by the commission so as to:

(a) reduce the adverse secondary effects that the attire, conduct, and sexually oriented entertainers may have upon communities of this state; and

(b) protect the health, peace, safety, welfare, and morals of the residents of communities of this state.

(2) Nothing in this part allows the showing or display of any matter that is contrary to:

(a) applicable federal or state statutes prohibiting obscenity; or

(b) state statutes relating to lewdness or indecent public displays.

(3) A local authority may be more restrictive of attire, conduct, or sexually oriented entertainers of the type prohibited in this part.

§ 32B-1-503 Definitions.

Reserved

§ 32B-1-504 General requirements on attire and conduct.

(1) As used in this section, "obscene" means that:

(a) the average individual, applying contemporary community standards, would find the conduct or material, taken as a whole, appeals to the prurient interest;

(b) the conduct or material depicts or describes sexual conduct in a patently offensive way; and

(c) the conduct or material, taken as a whole, lacks serious literary, artistic, political, or scientific value.

(2) The following attire and conduct on premises or at an event regulated by the commission under this title are considered contrary to the public health, peace, safety, welfare, and morals, and are prohibited:

(a) employing or using a person in the sale, offer for sale, or furnishing of an alcoholic product while the person is in:

(i) a state of nudity;

(ii) a state of seminudity; or

(iii) performance attire or clothing that exposes to view any portion of:

(A) the female breast below the top of the areola; or

(B) the cleft of the buttocks;

(b) employing or using the services of a person to mingle with patrons while the person is in:

(i) a state of nudity;

(ii) a state of seminudity; or

(iii) performance attire or clothing that exposes to view any portion of:

(A) the female breast below the top of the areola; or

(B) the cleft of the buttocks;

(c) encouraging or permitting a person to:

(i) engage in or simulate an act of:

(A) sexual intercourse;

(B) masturbation;

(C) sodomy;

(D) bestiality;

(E) oral copulation;

(F) flagellation; or

(G) a sexual act that is prohibited by Utah law; or

(ii) caress or fondle the breast, anus, or genitals of any other person;

(d) permitting a person to wear or use a device or covering that:

(i) is exposed to view; and

(ii) simulates all or any portion of the human genitals, anus, pubic area, or female breast;

(e) permitting a person to use an artificial device or inanimate object to depict an act prohibited by this section;

(f) permitting a person to remain on premises or at an event who exposes to public view any portion of that person's:

(i) genitals, pubic area, or anus; or

(ii) in the case of a female, the areola and nipple of the breast; or

(g) showing a film, still picture, electronic reproduction, or other visual reproduction depicting conduct or material that is obscene or in violation of other state or federal law regarding pornography or obscenity.

(3) Subsection (2) does not apply to artistic expression that:

(a) when taken as a whole, has serious literary, artistic, political, or scientific value;

(b) is not in violation of state or federal law regarding pornography or obscenity; and

(c) occurs on premises or at an event regulated by the commission under this title that is not predominantly used for performances by sexually oriented entertainers.

§ 32B-1-505 Sexually oriented entertainer.

(1) Subject to the requirements of this part, live entertainment is permitted on premises or at an event regulated by the commission.

(2) Notwithstanding Subsection (1), a retail licensee or permittee may not permit a person to:

(a) appear or perform in a state of nudity;

(b) perform or simulate an act of:

(i) sexual intercourse;

(ii) masturbation;

(iii) sodomy;

(iv) bestiality;

(v) oral copulation;

(vi) flagellation; or

(vii) a sexual act that is prohibited by Utah law; or

(c) touch, caress, or fondle the breast, buttocks, anus, or genitals.

(3) A sexually oriented entertainer may perform in a state of seminudity:

(a) only in:

(i) a tavern; or

(ii) a bar license premises; and

(b) only if:

(i) the windows, doors, and other apertures to the premises are darkened or otherwise constructed to prevent anyone outside the premises from seeing the performance; and

(ii) the outside entrance doors of the premises remain unlocked.

(4) A sexually oriented entertainer may perform only upon a stage or in a designated performance area that is:

(a) approved by the commission in accordance with rules made by the commission;

(b) configured so as to preclude a patron from:

(i) touching the sexually oriented entertainer; or

(ii) placing any money or object on or within the performance attire or the person of the sexually oriented entertainer; and

(c) configured so as to preclude the sexually oriented entertainer from touching a patron.

(5) A sexually oriented entertainer may not touch a patron:

(a) during the sexually oriented entertainer's performance; or

(b) while the sexually oriented entertainer is dressed in performance attire.

(6) A sexually oriented entertainer, while in the portion of the premises used by patrons, shall be dressed in opaque clothing which covers and conceals the sexually oriented entertainer's performance attire from the top of the breast to the knee.

(7) A patron may not be on the stage or in the performance area while a sexually oriented entertainer is appearing or performing on the stage or in the performance area.

(8) A patron may not:

(a) touch a sexually oriented entertainer:

(i) during the sexually oriented entertainer's performance; or

(ii) while the sexually oriented entertainer is dressed in performance attire; or

(b) place money or any other object on or within the performance attire or the person of the sexually oriented entertainer.

(9) A minor may not be on premises described in Subsection (3).

(10) A person who appears or performs for the entertainment of patrons on premises or at an event regulated by the commission that is not a tavern or bar licensee:

(a) may not appear or perform in a state of nudity or a state of seminudity; and

(b) may appear or perform in opaque clothing that completely covers the person's genitals, pubic area, and anus if the covering:

(i) is not less than the following at its widest point:

(A) four inches coverage width in the front of the human body; and

(B) five inches coverage width in the back of the human body;

(ii) does not taper to less than one inch wide at the narrowest point; and

(iii) if covering a female, completely covers the breast below the top of the areola.

§ 32B-1-506 Compliance -- Administrative enforcement.

(1) A retail licensee, a permittee, and staff of a licensee or permittee shall comply with this part.

(2) Failure to comply with this part may result in a disciplinary proceeding pursuant to Chapter 3, Disciplinary Actions and Enforcement Act, against:

(a) a licensee or permittee;

(b) staff of the licensee or permittee;

(c) both a licensee and staff of the licensee; or

(d) both a permittee and staff of the permittee.

Part 6 Malted Beverage Act

§ 32B-1-601 Title.

This part is known as the "Malted Beverage Act."

§ 32B-1-602 Definitions.

As used in this part:

(1) "Malted beverage" means:

(a) beer;

(b) a flavored malt beverage; and

(c) heavy beer.

(2) "Packaging" means the outer packaging that is visible to a consumer such as a carton, case, or other wrapper of a container.

§ 32B-1-603 Power of the commission and department to classify flavored malt beverages.

(1) The commission and department shall regulate a flavored malt beverage as liquor.

(2)

(a) The department shall make available to the public on the Internet a list of the flavored malt beverages authorized to be sold in this state as liquor.

(b) The list described in Subsection (2)(a) shall be updated at least quarterly.

(3)

(a) A manufacturer shall file, under penalty of perjury, a report with the department listing each flavored malt beverage manufactured by the manufacturer that the manufacturer wants to distribute in this state subject to the manufacturer holding:

(i) a brewery manufacturing license issued in accordance with Chapter 11, Part 5, Brewery Manufacturing License; or

(ii) a certificate of approval.

(b) A manufacturer may not distribute or sell in this state a flavored malt beverage if the manufacturer does not list the flavored malt beverage in a filing with the department in accordance with this Subsection (3) before distributing or selling the flavored malt beverage.

(4) The department may require a manufacturer of a flavored malt beverage to provide the department with a copy of the following filed with the federal Alcohol and Tobacco Tax and Trade Bureau, pursuant to 27 C.F.R. Sec. 25.55:

(a) a statement of process; or

(b) a formula.

(5)

(a) A manufacturer of an alcoholic product that the department is classifying or proposes to classify as a flavored malt beverage may submit evidence to the department that the manufacturer's alcoholic product should not be treated as a flavored malt beverage under this section because the alcoholic product is beer or heavy beer.

(b) The department shall review the evidence submitted by the manufacturer under this Subsection (5).

(c) The department shall make available to the public on the Internet a list of the alcoholic products authorized under this Subsection (5) to be sold as beer in this state.

(d) A decision of the department under this Subsection (5) may be appealed to the commission.

§ 32B-1-603.5 Requirements for beer flavorings -- Procedure for approval -- Department review.

(1) A manufacturer of a beer that contains a propylene glycol-, ethyl alcohol-, or ethanol-based flavoring agent as described in Subsection 32B-1-102(12)(b)(iii) may not sell or distribute the beer in the state unless the manufacturer obtains:

(a) the department's approval to sell or distribute the beer under this section; and

(b) the department's approval of the label and packaging of the beer under Sections 32B-1-604 through 32B-1-606.

(2)

(a) To obtain approval to sell or distribute a beer that contains a propylene glycol-, ethyl alcohol-, or ethanol-based flavoring agent as described in Subsection 32B-1-102(12)(b)(iii), the manufacturer of the beer shall submit an application to the department for approval.

(b) The application shall require:

(i) a copy of:

(A) the statement of process and formula filed with the federal Alcohol and Tobacco Tax and Trade Bureau under 27 C.F.R. Sec. 25.55 for the beer; and

(B) the formula approval from the federal Alcohol and Tobacco Tax and Trade Bureau for the beer;

(ii) a complete list of each propylene glycol-, ethyl alcohol-, or ethanol-based flavoring agent in the beer;

(iii) a description of the total amount of alcohol each propylene glycol-, ethyl alcohol-, or ethanol-based flavoring agent contributes to the beer; and

(iv) other information required by the department to determine whether the beer complies with Subsection 32B-1-102(12)(b)(iii).

(3) The department may:

(a) assess a fee established under Section 63J-1-504 for reviewing an application for approval under this section; and

(b) approve a manufacturer's application to sell or distribute a beer that contains a propylene glycol-, ethyl alcohol-, or ethanol-based flavoring agent after determining that the beer complies with Subsection 32B-1-102(12)(b)(iii).

(4) If a manufacturer of a beer revises the formula for the beer that the department approved for sale or distribution, the manufacturer shall obtain the department's approval for the revised formula before selling or distributing the beer.

(5)

(a) The department may revoke a previous approval under this section upon determining that the beer is not in compliance with this title or the rules of the commission.

(b) The department shall notify the manufacturer that applied for an approval under this section at least 30 business days before the day on which the approval is revoked.

(c) Within 20 business days after the day on which a manufacturer receives the notice under Subsection (5)(b), the manufacturer may present a written argument or evidence to the department regarding why the revocation should not occur.

(6)

(a) A manufacturer that applies for approval under this section may appeal a denial or revocation of the approval to the commission.

(b) During the period in which a manufacturer appeals a denial or revocation to the commission under Subsection (6)(a), the denial or revocation remains in force.

§ 32B-1-604 Requirements for labeling and packaging -- Authority of the commission and department.

(1) A manufacturer may not distribute or sell a malted beverage:

(a) unless the label and packaging of the malted beverage:

(i) complies with the federal label requirements of 27 C.F.R. Parts 7, 13, and 16; and

(ii) clearly gives notice to the public that the malted beverage is an alcoholic product; and

(b) until the day on which the department in accordance with this title and rules of the commission approves the label and packaging of the malted beverage.

(2) The department shall review the label and packaging of a malted beverage to ensure that the label and packaging meet the requirements of Subsection (1)(a).

(3) Except as otherwise required under Section 32B-1-606, a manufacturer may comply with the requirement of Subsection (1)(a)(ii) by including on a label and packaging for a malted beverage any of the following terms in obvious and clearly visible contrast to the background of the text:

(a) beer;

(b) ale;

(c) porter;

(d) stout;

(e) lager;

(f) lager beer;

(g) hard seltzer;

(h) spiked seltzer; or

(i) another class or type designation commonly applied to a malted beverage that conveys by a recognized term that the product contains alcohol.

§ 32B-1-605 General procedure for approval.

(1) To obtain approval of the label and packaging of a malted beverage, the manufacturer of the malted beverage shall submit an application to the department for approval.

(2) The application described in Subsection (1) shall be on a form approved by the department and include the following for each brand and label for which the manufacturer seeks approval:

(a)

(i) a copy of a federal certificate of label approval from the United States Department of Treasury, Alcohol and Tobacco Tax and Trade Bureau; or

(ii) if the United States Department of Treasury, Alcohol and Tobacco Tax and Trade Bureau does not require label approval, a copy of formula approval from the United States Department of Treasury, Alcohol and Tobacco Tax and Trade Bureau;

(b) a complete set of original labels for each size of container of the malted beverage;

(c) a description of the size of the container on which a label will be placed;

(d) a description of each type of container of the malted beverage; and

(e) a description of any packaging for the malted beverage.

(3) The department may assess a reasonable fee for reviewing a label and packaging for approval.

(4)

(a) The department shall notify a manufacturer within 30 days after the day on which the manufacturer submits a complete application whether the label and packaging is approved or denied.

(b) If the department determines that an unusual circumstance requires additional time, the department may extend the time period described in Subsection (4)(a).

(5) A manufacturer shall obtain the approval of the department of a revision of a previously approved label and packaging before a malted beverage using the revised label and packaging may be distributed or sold in this state.

(6)

(a) The department may revoke a label and packaging previously approved upon a finding that the label and packaging is not in compliance with this title or rules of the commission.

(b) The department shall notify the manufacturer who applied for an approved label and packaging at least 30 business days before the day on which the label and packaging approval is considered revoked.

(c) Within 20 business days after the day on which a manufacturer receives the notice under Subsection (6)(b), the manufacturer may present written argument or evidence to the department on why the revocation should not occur.

(7)

(a) A manufacturer that applies for approval of a label and packaging may appeal a denial or revocation of a label and packaging approval to the commission.

(b) During the period in which a manufacturer appeals a denial or revocation of a label and packaging approval to the commission, as permitted under Subsection (7)(a), the denial or revocation shall remain in force.

§ 32B-1-606 Special procedure for approval of labeling and packaging for certain malted beverages.

(1) A manufacturer of a malted beverage may not distribute or sell the malted beverage in the state until the day on which the manufacturer receives approval of the labeling and packaging of the malted beverage from the department in accordance with:

(a) Sections 32B-1-604 and 32B-1-605; and

(b) this section, if the malted beverage is labeled or packaged in a manner that is:

(i) similar to a label or packaging used for a nonalcoholic beverage; or

(ii) likely to confuse or mislead a patron to believe the malted beverage is a nonalcoholic beverage.

(2) The department may not approve the labeling and packaging of a malted beverage described in Subsection (1) unless, in addition to the requirements of Section 32B-1-604, the labeling and packaging complies with the following:

(a) the front of the label on the malted beverage bears a prominently displayed label or a firmly affixed sticker that provides the following information in a font that measures at least three millimeters high and is in obvious and clearly visible contrast to the background of the text:

(i) the statement:

(A) "alcoholic beverage"; or

(B) "contains alcohol"; and

(ii) the alcohol content of the malted beverage, if the alcohol content is not otherwise provided:

(A) in a serving facts statement on the container; and

(B) in a format allowed by the Federal Alcohol and Tobacco Tax Trade Bureau;

(b) the packaging of the malted beverage prominently includes, either imprinted on the packaging or imprinted on a sticker firmly affixed to the packaging in a font that measures at least three millimeters high and is in obvious and clearly visible contrast to the background of the text, the statement:

(i) "alcoholic beverage"; or

(ii) "contains alcohol";

(c) a statement required under Subsection (2)(a) or (b) appears in a format required under rule made by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and

(d) a statement of alcohol content required under Subsection (2)(a)(ii):

(i) states the alcohol content as a percentage of alcohol by volume or by weight; and

(ii) is in a format required under rule made by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(3) The department:

(a) may reject a label or packaging for a malted beverage that appears designed to obscure the information required under Subsection (2); and

(b) shall reject a label or packaging for a malted beverage to be sold by an off-premise beer retailer if the label or packaging for the malted beverage complies with Subsection (2) but remains so similar to a label or packaging used on a well-known or widely available nonalcoholic beverage that the label or packaging for the malted beverage is likely to confuse or mislead a patron to believe the malted beverage is a nonalcoholic beverage.

(4) To determine whether a malted beverage is described in Subsection (1) and subject to this section, the department may consider in addition to other factors one or more of the following factors:

(a) whether the coloring, carbonation, and packaging of the malted beverage:

(i) is similar to those of a nonalcoholic beverage or product; or

(ii) can be confused with a nonalcoholic beverage;

(b) whether the malted beverage possesses a character and flavor distinctive from a traditional malted beverage;

(c) whether the malted beverage:

(i) is prepackaged;

(ii) contains high levels of caffeine and other additives; and

(iii) is marketed as a beverage that is specifically designed to provide energy;

(d) whether the malted beverage contains added sweetener or sugar substitutes; or

(e) whether the malted beverage contains an added fruit flavor or other flavor that masks the taste of a traditional malted beverage.

§ 32B-1-607 Rulemaking authority.

(1) The commission may adopt rules necessary to implement this part.

(2) Notwithstanding Subsections 32B-1-102(13) and (52), in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules that allow for a tolerance in the alcohol content of beer or heavy beer as follows:

(a) up to 0.18% above or below when measured by volume; or

(b) up to 0.15% above or below when measured by weight.

§ 32B-1-608 Disciplinary proceeding for violation.

A person who violates this part:

(1) is subject to a disciplinary proceeding under Chapter 3, Disciplinary Actions and Enforcement Act; and

(2) may be subject to penalties under Chapter 4, Criminal Offenses and Procedure Act.

Part 7 Alcohol Training and Education Act

§ 32B-1-701 Definitions.

As used in this part:

(1) "Off-premise retail manager" means an individual who manages operations at a premises that is licensed under Chapter 7, Off-Premise Beer Retailer Act.

(2)

(a) "Off-premise retail staff" means an individual who sells beer at a premises that is licensed under Chapter 7, Off-Premise Beer Retailer Act.

(b) "Off-premise retail staff" does not include an off-premise retail manager.

(3) "Retail manager" means an individual who:

(a) manages operations at a premises that is licensed under Chapter 5, Retail License Act; or

(b) supervises the furnishing of an alcoholic product at a premises that is licensed under Chapter 5, Retail License Act.

(4)

(a) "Retail staff" means an individual who serves an alcoholic product at a premises licensed under Chapter 5, Retail License Act.

(b) "Retail staff" does not include a retail manager.

§ 32B-1-702 Alcohol training and education -- Revocation, suspension, or nonrenewal of retail license.

(1) The commission may suspend, revoke, or not renew a license of a retail licensee if any of the following individuals fail to complete an alcohol training and education seminar:

(a) a retail manager; or

(b) retail staff.

(2) A city, town, or county in which a retail licensee conducts business may suspend, revoke, or not renew the business license of the retail licensee if a retail manager or retail staff fails to complete an alcohol training and education seminar.

(3) A local authority that issues an off-premise beer retailer license to a business that is engaged in the retail sale of beer for consumption off the beer retailer's premises may immediately suspend the off-premise beer retailer license if any of the following individuals fails to complete an alcohol training and education seminar:

(a) an off-premise retail manager; or

(b) off-premise retail staff.

§ 32B-1-703 Alcohol training and education for off-premise consumption.

(1)

(a) A local authority that issues an off-premise beer retailer license to a business to sell beer at retail for off-premise consumption shall require the following to have a valid record that the individual completed an alcohol training and education seminar in the time periods required by Subsection (1)(b):

(i) an off-premise retail manager; or

(ii) off-premise retail staff.

(b) If an individual on the date the individual becomes staff to an off-premise beer retailer does not have a valid record that the individual has completed an alcohol training and education seminar for purposes of this part, the individual shall complete an alcohol training and education seminar in accordance with Section 26B-5-205 before the day on which the individual begins work as staff of an off-premise beer retailer.

(c) An off-premise beer retailer may not permit an individual who is not in compliance with Subsection (1)(b) to:

(i) directly supervise the sale of beer to a customer for consumption off the premises of the off-premise beer retailer; or

(ii) sell beer to a customer for consumption off the premises of the off-premise beer retailer.

(2) A licensee that violates this section is subject to Section 32B-1-702.

§ 32B-1-704 Department training programs.

(1) The department shall develop the following training programs that are provided either in-person or online:

(a) a training program for retail managers that addresses:

(i) the statutes and rules that govern alcohol sales and consumption in the state;

(ii) the requirements for operating as a retail licensee;

(iii) using compliance assistance from the department; and

(iv) any other topic the department determines beneficial to a retail manager; and

(b) a training program for an individual employed by a retail licensee or an off-premise beer retailer who violates a provision of this title related to the sale, service, or furnishing of an alcoholic beverage to an intoxicated individual or a minor, that addresses:

(i) the statutes and rules that govern the most common types of violations under this title;

(ii) how to avoid common violations; and

(iii) any other topic the department determines beneficial to the training program.

(2) The department shall develop a training program for off-premise retail managers that is provided either in-person or online and addresses:

(a) the statutes and rules that govern sales at an off-premise beer retailer;

(b) the requirements for operating an off-premise beer retailer;

(c) using compliance assistance from the department; and

(d) any other topic the department determines beneficial to an off-premise retail manager.

(3) The department shall develop a training program for an authorized person, as that term is defined in Section 32B-1-402, to properly verify whether an individual is an interdicted person.

(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and the provisions of this section, the department shall make rules to develop and implement the training programs described in this section, including rules that establish:

(a) the requirements for each training program described in this section;

(b) measures that accurately identify each individual who takes and completes a training program;

(c) measures that ensure an individual taking a training program is focused and actively engaged in the training material throughout the training program;

(d) a record that certifies that an individual has completed a training program; and

(e) a fee for participation in a training program to cover the department's cost of providing the training program.

(5)

(a) Each retail manager shall complete the training described in Subsection (1)(a) no later than the later of:

(i) 30 days after the day on which the retail manager is hired; or

(ii) the day on which the retail licensee obtains a retail license.

(b) Each off-premise retail manager shall complete the training described in Subsection (2) no later than the later of:

(i) 30 days after the day on which the off-premise retail manager is hired; or

(ii) 30 days after the day on which the off-premise beer retailer obtains an off-premise beer retailer state license.

(c)

(i) If the commission finds that a retail licensee violated a provision of this title related to the sale, service, or furnishing of an alcoholic beverage to an intoxicated individual or a minor for a second time within 36 consecutive months after the day on which the first violation was adjudicated, the violator, all retail staff, and each retail manager shall complete the training program described in Subsection (1)(b).

(ii) If the commission finds that an off-premise beer retailer violated a provision of this title related to the sale, service, or furnishing of an alcoholic beverage to an intoxicated individual or a minor for a second time within 36 consecutive months after the day on which the first violation was adjudicated, the violator and each off-premise retail manager shall complete the training program described in Subsection (1)(b).

(6) If an individual fails to complete a required training program under this section:

(a) the commission may suspend, revoke, or not renew the retail license or off-premise beer retailer state license;

(b) a city, town, or county in which the retail licensee or off-premise beer retailer is located may suspend, revoke, or not renew the retail licensee's or off-premise beer retailer's business license; or

(c) a local authority may suspend, revoke, or not renew the off-premise beer retailer's license.

§ 32B-1-705 Tracking certain enforcement actions.

(1) For each violation of a provision of this title involving the sale of an alcoholic product to a minor that staff of a retail licensee or off-premise beer retailer commits, the commission shall:

(a) maintain a record of the violation until the record is expunged in accordance with Subsection (3);

(b) include in the record described in Subsection (1)(a):

(i) the name of the individual who committed the violation;

(ii) the name of the retail licensee or off-premise beer retailer; and

(iii) the date of the adjudication of the violation; and

(c) provide the information described in Subsection (1)(b) to the Department of Public Safety within 30 days after the day on which the violation is adjudicated.

(2)

(a) The Department of Public Safety shall develop and operate a system to collect, analyze, maintain, track, and disseminate the information that the Department of Public Safety receives in accordance with Subsection (1).

(b) The Department of Public Safety shall make the system described in Subsection (2)(a) available to:

(i) assist the commission in assessing penalties under this title; and

(ii) inform a retail licensee or off-premise beer retailer of an individual who has a violation history in the system.

(3) The commission and the Department of Public Safety shall expunge each record in the system described in Subsection (2) that relates to an individual if the individual does not violate a provision of this title related to the sale of an alcoholic product to a minor for a period of 36 consecutive months from the day on which the individual's last violation related to the sale of an alcoholic product to a minor was adjudicated.

Chapter 2 Alcoholic Beverage Services Administration Act

Part 1 General Provisions

§ 32B-2-101 Title.

This chapter is known as the "Alcoholic Beverage Services Administration Act."

§ 32B-2-102 Definitions.

Reserved

Part 2 Organization and Operations of Commission and Department

§ 32B-2-201 Alcoholic Beverage Services Commission created.

(1)

(a) There is created the "Alcoholic Beverage Services Commission."

(b) The commission is the governing board over the department.

(2) The commission is composed of seven part-time commissioners appointed by the governor with the advice and consent of the Senate in accordance with Title 63G, Chapter 24, Part 2, Vacancies.

(3)

(a) Except as required by Subsection (3)(b), as terms of commissioners expire, the governor shall appoint each new commissioner or reappointed commissioner to a four-year term.

(b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of no more than three commissioners expire in a fiscal year.

(4)

(a) When a vacancy occurs on the commission for any reason, the governor shall appoint a replacement for the unexpired term with the advice and consent of the Senate.

(b) Unless removed in accordance with Subsection (6), a commissioner shall remain on the commission after the expiration of a term until a successor is appointed by the governor, with the advice and consent of the Senate.

(5) A commissioner shall take the oath of office.

(6)

(a) The governor may remove a commissioner from the commission for cause, neglect of duty, inefficiency, or malfeasance after a public hearing conducted by:

(i) the governor; or

(ii) an impartial hearing examiner appointed by the governor to conduct the hearing.

(b) At least 10 days before the hearing described in Subsection (6)(a), the governor shall provide the commissioner notice of:

(i) the date, time, and place of the hearing; and

(ii) the alleged grounds for the removal.

(c) The commissioner shall have an opportunity to:

(i) attend the hearing;

(ii) present witnesses and other evidence; and

(iii) confront and cross examine witnesses.

(d) After a hearing under this Subsection (6):

(i) the person conducting the hearing shall prepare written findings of fact and conclusions of law; and

(ii) the governor shall serve a copy of the prepared findings and conclusions upon the commissioner.

(e) If a hearing under this Subsection (6) is held before a hearing examiner, the hearing examiner shall issue a written recommendation to the governor in addition to complying with Subsection (6)(d).

(f) A commissioner has five days from the day on which the commissioner receives the findings and conclusions described in Subsection (6)(d) to file written objections to the recommendation before the governor issues a final order.

(g) The governor shall:

(i) issue the final order under this Subsection (6) in writing; and

(ii) serve the final order upon the commissioner.

(7) A commissioner may not receive compensation or benefits for the commissioner's service, but may receive per diem and travel expenses in accordance with:

(a) Section 63A-3-106;

(b) Section 63A-3-107; and

(c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.

(8)

(a)

(i) The governor shall annually appoint the chair of the commission.

(ii) A commissioner serves as chair to the commission at the pleasure of the governor.

(iii) If removed as chair, the commissioner continues to serve as a commissioner unless removed as a commissioner under Subsection (6).

(b) The commission shall elect:

(i) another commissioner to serve as vice chair; and

(ii) other commission officers as the commission considers advisable.

(c) A commissioner elected under Subsection (8)(b) shall serve in the office to which the commissioner is elected at the pleasure of the commission.

(9)

(a) Each commissioner has equal voting rights on a commission matter when in attendance at a commission meeting.

(b) Four commissioners is a quorum for conducting commission business.

(c) A majority vote of the quorum present at a meeting is required for the commission to act.

(d) A commissioner shall comply with the conflict of interest provisions described in Title 63G, Chapter 24, Part 3, Conflicts of Interest.

(10)

(a) The commission shall meet at least monthly, but may hold other meetings at times and places as scheduled by:

(i) the commission;

(ii) the chair; or

(iii) three commissioners upon filing a written request for a meeting with the chair.

(b)

(i) Notice of the time and place of a commission meeting shall be given to each commissioner, and to the public in compliance with Title 52, Chapter 4, Open and Public Meetings Act.

(ii) A commission meeting is open to the public, except for a commission meeting or portion of a commission meeting that is closed by the commission as authorized by Sections 52-4-204 and 52-4-205.

§ 32B-2-201.5 Commission subcommittee -- Chair's oversight responsibilities.

(1) There is created within the commission two subcommittees consisting of members of the commission and known as the:

(a) "Compliance, Licensing, and Enforcement Subcommittee"; and

(b) "Operations and Procurement Subcommittee."

(2) A subcommittee shall have four members, including the chair of the commission. The chair of the commission shall appoint the members to a subcommittee.

(3) The director shall consult with the chair of the commission over:

(a) the internal affairs of the department; and

(b) subject to Section 32B-2-207, hiring and firing of upper management of the department.

(4) The commission by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, shall establish the duties of the subcommittees created under this section.

§ 32B-2-202 Powers and duties of the commission.

(1) The commission shall:

(a) consistent with the policy established by the Legislature by statute, act as a general policymaking body on the subject of alcoholic product control;

(b) adopt and issue policies, rules, and procedures;

(c) set policy by written rules that establish criteria and procedures for:

(i) issuing, denying, not renewing, suspending, or revoking a package agency, license, permit, or certificate of approval; and

(ii) determining the location of a state store, package agency, or retail licensee;

(d) decide within the limits, and under the conditions imposed by this title, the number and location of state stores, package agencies, and retail licensees in the state;

(e) issue, deny, suspend, revoke, or not renew the following package agencies, licenses, sublicenses, permits, or certificates of approval for the purchase, storage, sale, offer for sale, furnishing, consumption, manufacture, and distribution of an alcoholic product:

(i) a package agency;

(ii) a full-service restaurant license;

(iii) a master full-service restaurant license;

(iv) a limited-service restaurant license;

(v) a master limited-service restaurant license;

(vi) a bar establishment license;

(vii) an airport lounge license;

(viii) an on-premise banquet license;

(ix) a resort license, which includes four or more sublicenses;

(x) an on-premise beer retailer license;

(xi) a reception center license;

(xii) a beer-only restaurant license;

(xiii) a hotel license, which includes three or more sublicenses;

(xiv) an arena license, which includes three or more sublicenses;

(xv) a hospitality amenity license;

(xvi) subject to Subsection (5), a single event permit;

(xvii) subject to Subsection (5), a temporary beer event permit;

(xviii) a special use permit;

(xix) a manufacturing license;

(xx) a liquor warehousing license;

(xxi) a beer wholesaling license;

(xxii) a liquor transport license;

(xxiii) an off-premise beer retailer state license;

(xxiv) a master off-premise beer retailer state license;

(xxv) one of the following that holds a certificate of approval:

(A) an out-of-state brewer;

(B) an out-of-state importer of beer, heavy beer, or flavored malt beverages; and

(C) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; and

(xxvi) a spa sublicense;

(f) issue, deny, suspend, or revoke the following conditional licenses:

(i) a conditional retail license as defined in Section 32B-5-205; and

(ii) a conditional off-premise beer retailer state license as defined in Section 32B-7-406;

(g) prescribe the duties of the department in assisting the commission in issuing a package agency, license, permit, or certificate of approval under this title;

(h) to the extent a fee is not specified in this title, establish a fee allowed under this title in accordance with Section 63J-1-504;

(i) subject to Section 32B-2-213, fix prices at which liquor is sold that are the same at all state stores, package agencies, and retail licensees;

(j) issue and distribute price lists showing the price to be paid by a purchaser for each class, variety, or brand of liquor kept for sale by the department;

(k)

(i) require the director to follow sound management principles; and

(ii) require periodic reporting from the director to ensure that:

(A) sound management principles are being followed; and

(B) policies established by the commission are being observed;

(l)

(i) receive, consider, and act in a timely manner upon the reports, recommendations, and matters submitted by the director to the commission; and

(ii) do the things necessary to support the department in properly performing the department's duties;

(m) obtain temporarily and for special purposes the services of an expert or person engaged in the practice of a profession, or a person who possesses a needed skill if:

(i) considered expedient; and

(ii) approved by the governor;

(n) prescribe by rule the conduct, management, and equipment of premises upon which an alcoholic product may be stored, sold, offered for sale, furnished, or consumed;

(o) make rules governing the credit terms of beer sales within the state to retail licensees; and

(p) in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, take disciplinary action against a person subject to administrative action.

(2) Consistent with the policy established by the Legislature by statute, the power of the commission to do the following is plenary, except as otherwise provided by this title, and not subject to review:

(a) establish a state store;

(b) issue authority to act as a package agent or operate a package agency; and

(c) issue, deny, or deem forfeit a license, permit, or certificate of approval.

(3)

(a) Subject to Subsections (3)(b) and (c), the commission may make rules permitting and establishing the parameters of a late license renewal.

(b) The commission may not allow for the late renewal of a license after the later of:

(i) the tenth day of the month after the month in which the license type is required to be renewed; or

(ii) if the tenth day of the month after the month in which the license type is required to be renewed falls on a Saturday, Sunday, or state or federal holiday, the first business day after the Saturday, Sunday, or holiday.

(c) The fee for a late license renewal is $300.

(4) If the commission is authorized or required to make a rule under this title, the commission shall make the rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(5) Notwithstanding Subsections (1)(e)(xvi) and (xvii), the director or deputy director may issue an event permit in accordance with Chapter 9, Event Permit Act.

§ 32B-2-203 Department of Alcoholic Beverage Services created.

(1) There is created the Department of Alcoholic Beverage Services. The department is governed by the commission.

(2) The director of alcoholic beverage services appointed under Section 32B-2-205 shall administer the department.

(3) The director shall allocate the duties within the department into the divisions, bureaus, sections, offices, and committees as the director considers necessary for the administration of this title.

(4) The department shall cooperate with any other recognized agency in the administration of this title and in the enforcement of a policy or rule of the commission or policy of the director.

§ 32B-2-204 Powers and duties of the department -- Immunity.

(1) The department shall control liquor merchandise inventory including:

(a) listing and delisting a product;

(b) the procedures for testing a new product;

(c) purchasing policy;

(d) turnover requirements for a regularly coded product to be continued; and

(e) the disposition of discontinued, distressed, or unsaleable merchandise.

(2)

(a) The department shall report to the governor on the administration of this title:

(i) as the governor may require; and

(ii) annually by no later than November 30, for the fiscal year ending June 30 of the year in which the report is made.

(b) A report under this Subsection (2) shall contain:

(i) a statement of the nature and amount of the business transacted by the department during the year;

(ii) a statement of the department's assets and liabilities including a profit and loss account, and other accounts and matters necessary to show the results of operations of the department for the year;

(iii) general information on the application of this title in the state; and

(iv) any other information requested by the governor.

(c) The department shall submit a copy of a report described in this Subsection (2) to the Legislature.

(3) The department shall maintain insurance against loss on each motor vehicle operated by it on any public highway. A motor vehicle shall be covered for:

(a) liability imposed by law upon the department for damages from bodily injuries suffered by one or more persons by reason of the ownership, maintenance, or use of the motor vehicle; and

(b) liability or loss from damage to or destruction of property of any description, including liability of the department for the resultant loss of use of the property, which results from accident due to the ownership, maintenance, or use of the motor vehicle.

(4)

(a) The department may sue, be sued, and defend in a proceeding, in a court of law or otherwise, in the name of the department.

(b) An action may not be taken:

(i) against the commission; or

(ii) in the name of a commissioner.

(5) The department is liable to respond in damages in a case if a private corporation under the same circumstances would be liable.

(6)

(a) Title 63G, Chapter 7, Governmental Immunity Act of Utah, applies in an action commenced against the department for damages sustained as a result of department ownership, maintenance, or use of a motor vehicle under Subsections (4) and (5).

(b) In an action described in Subsection (6)(a), the commission and each commissioner are immune from suit.

(7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department may make rules related to measuring the alcohol content of beer.

§ 32B-2-205 Director of alcoholic beverage services.

(1)

(a) In accordance with Subsection (1)(b), the governor, with the advice and consent of the Senate, shall appoint a director of alcoholic beverage services to a four-year term. The director may be appointed to more than one four-year term. The director is the administrative head of the department.

(b)

(i) The governor shall appoint the director from nominations made by the commission.

(ii) The commission shall submit the nomination of three individuals to the governor for appointment of the director.

(iii) By no later than 30 calendar days from the day on which the governor receives the three nominations submitted by the commission, the governor may:

(A) appoint the director; or

(B) reject the three nominations.

(iv) If the governor rejects the nominations or fails to take action within the 30-day period, the commission shall nominate three different individuals from which the governor may appoint the director or reject the nominations until such time as the governor appoints the director.

(v) The governor may reappoint the director without seeking nominations from the commission.

(vi) The governor's reappointment of the director under Subsection (1)(b)(v) shall be made with the advice and consent of the Senate.

(c)

(i) If there is a vacancy in the position of director, during the nomination process described in Subsection (1)(b), the governor may unilaterally appoint an interim director for a period of up to 30 calendar days.

(ii) If a director is not appointed within the 30-day period, the interim director may continue to serve beyond the 30-day period, subject to the advice and consent of the Senate at the next scheduled time for the Senate giving consent to appointments of the governor.

(iii) Except that if the Senate does not act on the consent to the appointment of the interim director within 60 days of the end of the initial 30-day period, the interim director may continue as the interim director.

(d) The director may be terminated by:

(i) the commission by a vote of four commissioners; or

(ii) the governor after consultation with the commission.

(e) The director may not be a commissioner.

(f) The director shall:

(i) be qualified in administration;

(ii) be knowledgeable by experience and training in the field of business management; and

(iii) possess any other qualification prescribed by the commission.

(2) The governor shall establish the director's compensation within the salary range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.

(3) The director shall:

(a) carry out the policies of the commission;

(b) carry out the policies of the department;

(c) fully inform the commission of the operations and administrative activities of the department; and

(d) assist the commission in the proper discharge of the commission's duties.

§ 32B-2-206 Powers and duties of the director.

Subject to the powers and responsibilities of the commission under this title, the director:

(1)

(a) shall prepare and propose to the commission general policies, rules, and procedures governing the administrative activities of the department; and

(b) may submit other recommendations to the commission as the director considers in the interest of the commission's or the department's business;

(2) within the general policies, rules, and procedures of the commission, shall:

(a) provide day-to-day direction, coordination, and delegation of responsibilities in the administrative activities of the department's business; and

(b) make internal department policies and procedures relating to:

(i) department personnel matters; and

(ii) the day-to-day operation of the department;

(3) subject to Section 32B-2-207, shall appoint or employ personnel as considered necessary in the administration of this title, and with regard to the personnel shall:

(a) prescribe the conditions of employment;

(b) define the respective duties and powers; and

(c) fix the remuneration in accordance with Title 63A, Chapter 17, Utah State Personnel Management Act;

(4) shall establish and secure adherence to a system of reports, controls, and performance in matters relating to personnel, security, department property management, and operation of:

(a) a department office;

(b) a warehouse;

(c) a state store; and

(d) a package agency;

(5) within the policies, rules, and procedures approved by the commission and provisions of law, shall purchase, store, keep for sale, sell, import, and control the storage, sale, furnishing, transportation, or delivery of an alcoholic product;

(6) shall prepare for commission approval:

(a) recommendations regarding the location, establishment, relocation, and closure of a state store or package agency;

(b) recommendations regarding the issuance, denial, nonrenewal, suspension, or revocation of a license, permit, or certificate of approval;

(c) an annual budget, proposed legislation, and reports as required by law and sound business principles;

(d) plans for reorganizing divisions of the department and the functions of the divisions;

(e) manuals containing commission and department policies, rules, and procedures;

(f) an inventory control system;

(g) any other report or recommendation requested by the commission;

(h) rules described in Subsection 32B-2-202(1)(o) governing the credit terms of the sale of beer;

(i) rules governing the calibration, maintenance, and regulation of a calibrated metered dispensing system;

(j) rules governing the display of a list of types and brand names of liquor furnished through a calibrated metered dispensing system;

(k) price lists issued and distributed showing the price to be paid for each class, variety, or brand of liquor kept for sale at a state store, package agency, or retail licensee;

(l) policies or rules prescribing the books of account maintained by the department and by a state store, package agency, or retail licensee; and

(m) a policy prescribing the manner of giving and serving a notice required by this title or rules made under this title;

(7) shall make available through the department to any person, upon request, a copy of a policy made by the director;

(8) shall make and maintain a current copy of a manual that contains the rules and policies of the commission and department available for public inspection;

(9)

(a) after consultation with the governor, shall determine whether an alcoholic product should not be sold, offered for sale, or otherwise furnished in an area of the state during a period of emergency that is proclaimed by the governor to exist in that area; and

(b) shall issue a necessary public announcement or policy with respect to the determination described in Subsection (9)(a);

(10) issue event permits in accordance with Chapter 9, Event Permit Act; and

(11) shall perform any other duty required by the commission or by law.

§ 32B-2-207 Department employees -- Requirements.

(1) As used in this section, "upper management" means a deputy director or other Schedule AD, AR, or AS employee of the department, as defined in Section 63A-17-301.

(2)

(a) Subject to this title, including the requirements of Chapter 1, Part 3, Qualifications and Background, the director may prescribe the qualifications of a department employee.

(b) The director may hire an employee who is upper management only with the approval of four commissioners voting in an open meeting.

(c) Except as provided in Section 32B-1-303, the director may dismiss an employee who is upper management after consultation with the chair of the commission.

(3)

(a) A person who seeks employment with the department shall file with the department an application under oath or affirmation in a form prescribed by the commission.

(b) Upon receiving an application, the department shall determine whether the individual is:

(i) of good moral character; and

(ii) qualified for the position sought.

(c) The department shall select an individual for employment or advancement with the department in accordance with Title 63A, Chapter 17, Utah State Personnel Management Act.

(4) The following are not considered a department employee:

(a) a package agent;

(b) a licensee;

(c) a staff member of a package agent; or

(d) staff of a licensee.

(5) The department may not employ a minor to:

(a) work in:

(i) a state store; or

(ii) a department warehouse; or

(b) engage in an activity involving the handling of an alcoholic product.

(6) The department shall ensure that any training or certification required of a public official or public employee, as those terms are defined in Section 63G-22-102, complies with Title 63G, Chapter 22, State Training and Certification Requirements, if the training or certification is required:

(a) under this title;

(b) by the department; or

(c) by an agency or division within the department.

§ 32B-2-208 Services of State Health Laboratory.

The State Health Laboratory shall make its services available to the department when necessary. The department shall pay for the services from the Liquor Control Fund to the Department of Health and Human Services.

§ 32B-2-209 Prohibited interests, relationships, and actions.

(1) As used in this section:

(a) "Applicable department employee" means a department employee who is:

(i) designated as a deputy or assistant director;

(ii) a chief administrative officer of a division within the department;

(iii) a department compliance officer; or

(iv) an employee directly performing purchasing, licensing, or compliance functions of the department.

(b) "Immediate family" means an individual's:

(i) spouse; or

(ii) child who is younger than 18 years of age.

(c) "Permit" does not include:

(i) an industrial or manufacturing use permit;

(ii) a scientific or educational use permit; or

(iii) a religious wine use permit.

(2) In addition to being subject to Title 67, Chapter 16, Utah Public Officers' and Employees' Ethics Act, an individual who is a commissioner, the director, or an applicable department employee may not:

(a) have a pecuniary interest, whether as the holder of stock or other securities other than a mutual fund, in a person who applies for or holds a package agency, license, or permit under this title;

(b) otherwise have a conflict of interest with a person who applies for or holds a package agency, license, or permit under this title;

(c) have an office, position, or relationship, or be engaged in a business or avocation that interferes or is incompatible with the effective and objective fulfillment of the duties of office or employment;

(d) have a direct business relationship with a person subject to administrative action under this title;

(e) accept a gift, gratuity, emolument, or employment from:

(i) a person who applies for or holds a package agency, license, or permit under this title; or

(ii) an officer, agent, or employee of a person who applies for or holds a package agency, license, or permit under this title, except that a commissioner, the director, or an applicable department employee may accept a gift from an officer, agent, or employee if the gift is equal to or less than $50; or

(f) solicit, suggest, request, or recommend, directly or indirectly, the appointment of any person to any office or employment with a person who applies for or holds a package agency, license, or permit under this title.

(3) An immediate family member of a commissioner, the director, or an applicable department employee may not:

(a) have a pecuniary interest, whether as the holder of stock or other securities other than a mutual fund, in a person who applies for or holds a package agency, license, or permit under this title;

(b) otherwise have a conflict of interest with a person who applies for or holds a package agency, license, or permit under this title;

(c) have an office, position, or relationship, or be engaged in a business or avocation that interferes or is incompatible with the effective and objective fulfillment of the duties of office or employment of the commissioner, director, or applicable department employee for whom the person is immediate family;

(d) accept a gift, gratuity, emolument, or employment from:

(i) a person who applies for or holds a package agency, license, or permit under this title; or

(ii) an officer, agent, or employee of a person who applies for or holds a package agency, license, or permit under this title, except that an immediate family member may accept a gift from an officer, agent, or employee if the gift is equal to or less than $50; or

(e) solicit, suggest, request, or recommend, directly or indirectly, the appointment of any person to any office or employment with a person who applies for or holds a package agency, license, or permit under this title.

(4) An officer, agent, attorney, or employee of a person who applies for or holds a package agency, license, or permit under this title may not directly or indirectly solicit, request, or recommend to the governor, any state senator, the commission, or the department the appointment of any person:

(a) as a commissioner;

(b) as director of the department; or

(c) to a department staff position.

(5)

(a) A commissioner shall disclose during a meeting of the commission a potential violation of this section, including the existence and nature of a professional, financial, business, or personal interest with a person who holds, or an applicant for, a package agency, license, or permit issued under this title that may result in a violation of this section.

(b) After a commissioner makes a disclosure under Subsection (5)(a):

(i) the commission may, by motion, determine whether there is a potential violation of this section;

(ii) if the commission determines that there is a potential violation of this section:

(A) the commission shall notify the governor; and

(B) the commissioner may not vote on any matter that would result in the potential violation of this section; and

(iii) if the commission determines that there is not a potential violation of this section, a commissioner may elect whether to vote on the issue that gives rise to the disclosure under Subsection (5)(a).

(c) The commission shall record any declaration of a potential violation of this section in the minutes of the meeting.

§ 32B-2-211 Review and audit of commission rules.

(1)

(a) In 2019 and every third year thereafter, the Legislature's general counsel shall review each current rule made by the commission for compliance with current statute.

(b) On or before December 15 of each year in which the Legislature's general counsel completes a compliance review described in Subsection (1)(a), the Legislature's general counsel shall prepare and submit a report to the president of the Senate and the speaker of the House of Representatives that describes the Legislature's general counsel's findings.

(2)

(a) Subject to the prioritization of the Audit Subcommittee created in Section 36-12-8, the Office of the Legislative Auditor General may review one or more current practices of the commission or the department for compliance with current statute or rule.

(b) Following a review described in Subsection (2)(a), the Office of the Legislative Auditor General shall prepare and submit a report to the Audit Subcommittee that describes the Office of the Legislative Auditor General's findings and recommendations.

§ 32B-2-212 Division of Consumer Purchasing.

There is created with the department the Division of Consumer Purchasing to establish and administer:

(1) the wine subscription program described in Part 7, Wine Subscription Program; and

(2) the consumer purchasing system described in Part 8, Consumer Purchasing System.

§ 32B-2-213 Round up program -- Rounding for cash transactions.

(1) The department may:

(a) establish a round up program under which an individual who makes a purchase at a state store may elect to round the purchase price up to the nearest dollar; and

(b) if necessary to make exact change for a cash purchase of liquor at a state store, round the total price of the liquor up or down to the nearest five cents after applicable taxes are applied.

(2) The department shall deposit money the department collects under Subsection (1)(a) into the Pamela Atkinson Homeless Account created in Section 35A-16-301.

(3) If necessary to make exact change for a cash purchase of liquor, a package agency, a retail licensee, or a permittee may round the total price of the liquor up or down to the nearest five cents after applicable taxes are applied.

Part 3 Fiscal Matters

§ 32B-2-301 State property -- Liquor Control Fund -- Money to be retained by department -- Department building process.

(1) As used in this section, "base budget" means the same as that term is defined in legislative rule.

(2) The following are property of the state:

(a) the money received in the administration of this title, except as otherwise provided; and

(b) property acquired, administered, possessed, or received by the department.

(3)

(a) There is created an enterprise fund known as the "Liquor Control Fund."

(b) Except as provided in Sections 32B-2-304, 32B-2-305, and 32B-2-306, the department shall deposit the following into the Liquor Control Fund:

(i) money received in the administration of this title; and

(ii) money received from the markup described in Section 32B-2-304.

(c) The department may draw from the Liquor Control Fund only to the extent appropriated by the Legislature or provided by statute.

(d) The net position of the Liquor Control Fund may not fall below zero.

(4)

(a) Notwithstanding Subsection (3)(c), the department may draw by warrant from the Liquor Control Fund without an appropriation for an expenditure that is directly incurred by the department:

(i) to purchase an alcoholic product;

(ii) to transport an alcoholic product from the supplier to a warehouse of the department; or

(iii) for variances related to an alcoholic product, including breakage or theft.

(b) If the balance of the Liquor Control Fund is not adequate to cover a warrant that the department draws against the Liquor Control Fund, to the extent necessary to cover the warrant, the cash resources of the General Fund may be used.

(5) The department's base budget shall include as an appropriation from the Liquor Control Fund:

(a) credit card related fees paid by the department;

(b) package agency compensation;

(c) the department's costs of shipping and warehousing alcoholic products; and

(d) the amount needed, as the Division of Human Resource Management determines, to make the median department salary in the previous fiscal year equal the median market salary in the previous fiscal year for the following positions:

(i) state store manager or equivalent;

(ii) state store assistant manager or equivalent;

(iii) full-time sales clerk at a state store or equivalent;

(iv) part-time sales clerk at a state store or equivalent;

(v) department warehouse manager or equivalent;

(vi) department warehouse assistant manager or equivalent;

(vii) full-time department warehouse worker or equivalent; and

(viii) part-time department warehouse worker or equivalent.

(6)

(a) The Division of Finance shall transfer annually from the Liquor Control Fund to the General Fund a sum equal to the amount of net profit earned from the sale of liquor since the preceding transfer of money under this Subsection (6), adjusted for amounts needed for cash operations.

(b) After each fiscal year, the Division of Finance shall transfer the amount calculated under Subsection (6)(a) on or before September 30.

(c) The Division of Finance may make year-end closing entries in the Liquor Control Fund to comply with Subsection 51-5-6(2).

(7)

(a) By the end of each day, the department shall:

(i) make a deposit to a qualified depository, as defined in Section 51-7-3; and

(ii) report the deposit to the state treasurer.

(b) A commissioner or department employee is not personally liable for a loss caused by the default or failure of a qualified depository.

(c) Money deposited in a qualified depository is entitled to the same priority of payment as other public funds of the state.

(8) Before the Division of Finance makes the transfer described in Subsection (6), the department may retain each fiscal year from the Liquor Control Fund $1,000,000 that the department may use for:

(a) capital equipment purchases;

(b) salary increases for department employees;

(c) performance awards for department employees; or

(d) information technology enhancements because of changes or trends in technology.

§ 32B-2-302 Exempt from Division of Finance -- Application of procurement -- External audits.

(1)

(a) The laws that govern the Division of Finance are not applicable to the department in the purchase and sale of an alcoholic product.

(b) The department is exempt from Title 63G, Chapter 6a, Utah Procurement Code, for the purchase of an alcoholic product. The department is subject to Title 63G, Chapter 6a, Utah Procurement Code, for any purchase other than for an alcoholic product.

(2) The state auditor shall:

(a) annually perform a financial audit of the department's accounts; and

(b) determine the scope and focus of the financial audit in an open meeting of the commission before the audit commences.

(3) Every two years, beginning for fiscal year 2013-14, the state auditor shall conduct an audit of the department's:

(a) management operations, best practices, and efficiency; and

(b) ethics and statutory compliance.

(4) In addition to complying with Subsections (2) and (3), the state auditor may engage in an activity related to the department or commission allowed under Utah Constitution, Article VII, Section 15 or Title 67, Chapter 3, Auditor.

(5) The state auditor shall forward an audit report issued under Subsection (2) or (3) to the following by no later than 30 days after the day on which the audit report is made:

(a) the governor;

(b) the Legislative Management Committee;

(c) the director; and

(d) the legislative auditor general.

§ 32B-2-302.5 Internal audits.

(1) In accordance with Title 63I, Chapter 5, Utah Internal Audit Act, the department shall conduct various types of auditing procedures through an internal audit division.

(2) The internal audit division:

(a) is placed directly under the director of the department;

(b) shall report directly to the director of the department; and

(c) is responsible for:

(i) conducting and verifying each internal audit and review within the department; and

(ii) implementing audit procedures that meet or exceed generally accepted auditing standards.

(3) The chair of the commission or the commission may:

(a) propose internal auditing policies; or

(b) recommend or make additions or modifications to the internal audit division's annual internal audit plan.

(4) Subject to this section, the director of the internal audit division shall have the powers and duties described in Section 63I-5-401 or any other duty prescribed by the chair of the commission or the director of the department.

(5)

(a) Once an internal audit is completed, the internal audit director shall provide an internal audit report to the director, the chair of the commission, and the other commissioners.

(b) Within five business days of receipt of the internal audit, the director shall prepare a written response and deliver it to the chair of the commission and the other commissioners.

(c) Within 120 calendar days after the day on which the director of the department receives an internal audit under Subsection (5)(a), the director of the department shall prepare a report to the chair of the commission and other commissioners describing:

(i) steps taken to implement the recommendations of the internal audit; or

(ii) a detailed explanation of why recommendations have not been implemented.

(d) After receiving a response or report under this Subsection (5), the chair of the commission or the commission may request that the director of the department or the director of the internal audit division provide additional information regarding the audit findings.

(e) The director of the department shall make a response or report described in Subsections (5)(a) through (c) available to the following upon request:

(i) the governor;

(ii) the legislative auditor general; and

(iii) the Legislative Management Committee.

§ 32B-2-303 Purchase of liquor.

(1) The department may only:

(a) purchase or stock spirituous liquor in a container smaller than 200 milliliters for the purpose of furnishing the spirituous liquor to a public service permittee issued a permit under Chapter 10, Part 3, Public Service Permit; and

(b) furnish spirituous liquor in a container smaller than 200 milliliters to a public service permittee issued a permit under Chapter 10, Part 3, Public Service Permit.

(2)

(a) An order by the department for the purchase of liquor, or a cancellation by the department of an order of liquor:

(i) shall be executed in writing by the department; and

(ii) is not valid or binding unless executed in writing.

(b) The department shall maintain a copy of an order or cancellation on file for at least three years.

(c) An electronic record satisfies Subsections (2)(a) and (b) pursuant to Title 46, Chapter 4, Uniform Electronic Transactions Act.

§ 32B-2-304 Liquor price -- Remittance of markup -- School lunch program.

(1) For purposes of this section:

(a)

(i) "Landed case cost" means the sum of:

(A) the cost of the product;

(B) inbound shipping costs the department incurs; and

(C) case handling costs the department incurs.

(ii) "Landed case cost" does not include the outbound shipping cost from a warehouse of the department to a state store.

(b) "Proof gallon" means the same as that term is defined in 26 U.S.C. Sec. 5002.

(2) Except as provided in Subsections (3), (4), and (7):

(a) spirituous liquor sold by the department within the state shall be marked up in an amount not less than 88.5% above the landed case cost to the department;

(b) wine sold by the department within the state shall be marked up in an amount not less than 88.5% above the landed case cost to the department;

(c) heavy beer sold by the department within the state shall be marked up in an amount not less than 66.5% above the landed case cost to the department; and

(d) a flavored malt beverage sold by the department within the state shall be marked up in an amount not less than 88.5% above the landed case cost to the department.

(3)

(a) Liquor sold by the department to a military installation in Utah shall be marked up in an amount not less than 17% above the landed case cost to the department.

(b) Except for spirituous liquor sold by the department to a military installation in Utah, spirituous liquor that is sold by the department within the state shall be marked up 49% above the landed case cost to the department if:

(i) the spirituous liquor is manufactured by a manufacturer producing less than 30,000 proof gallons of spirituous liquor in a calendar year; and

(ii) the manufacturer applies to the department for a reduced markup.

(c) Except for wine sold by the department to a military installation in Utah, wine that is sold by the department within the state shall be marked up 49% above the landed case cost to the department if:

(i)

(A) except as provided in Subsection (3)(c)(i)(B), the wine is manufactured by a manufacturer producing less than 20,000 gallons of wine in a calendar year; or

(B) for hard cider, the hard cider is manufactured by a manufacturer producing less than 620,000 gallons of hard cider in a calendar year; and

(ii) the manufacturer applies to the department for a reduced markup.

(d) Except for heavy beer sold by the department to a military installation in Utah, heavy beer that is sold by the department within the state shall be marked up 32% above the landed case cost to the department if:

(i) a small brewer manufactures the heavy beer; and

(ii) the small brewer applies to the department for a reduced markup.

(e) The department shall:

(i) for purposes of Subsections (3)(b) and (c), calculate the production amount of a manufacturer:

(A) by, if the manufacturer is part of a controlled group of manufacturers, including the combined volume totals of spirituous liquor, wine, or cider, as applicable, for all manufacturers that constitute the controlled group of manufacturers; and

(B) without considering the manufacturer's production of any other type of alcoholic product; and

(ii) verify that a manufacturer meets a production amount described in Subsection (3)(b) or (c) and the production amount of a small brewer under a federal or other verifiable production report.

(f) A manufacturer seeking to obtain a reduced markup under Subsection (3)(b), (c), or (d), shall provide to the department any documentation or information the department determines necessary to determine if the manufacturer is part of a controlled group of manufacturers.

(g) The department may, at any time, revoke a reduced markup granted to a manufacturer under Subsection (3)(b), (c), or (d), if the department determines the manufacturer no longer qualifies for the reduced markup.

(4) Wine the department purchases on behalf of a subscriber through the wine subscription program established in Section 32B-2-702 shall be marked up not less than 88.5% above the cost of the subscription for the interval in which the wine is purchased.

(5) The department shall deposit 10% of the total gross revenue from sales of liquor with the state treasurer to be credited to the Uniform School Fund and used to support the school meals program administered by the State Board of Education under Section 53E-3-510.

(6)

(a) Each month, the department shall collect from each package agency located at a manufacturing facility owned or operated by a person licensed under Chapter 11, Manufacturing and Related Licenses Act, 12.295% of the package agency's reported monthly revenue and deposit the money as follows:

(i) 1.695% of the reported monthly revenue into the Alcoholic Beverage Control Act Enforcement Fund;

(ii) 10% of the reported monthly revenue into the Uniform School Fund and used to support the school meals program administered by the State Board of Education under Section 53E-3-510; and

(iii) 0.60% of the reported monthly revenue into the Underage Drinking Prevention Media and Education Campaign Restricted Account.

(b) The department may collect a fee established in accordance with Section 63J-1-504 from a package agency described in this subsection to cover the costs of regulation.

(7) This section does not prohibit the department from:

(a) selling discontinued items at a discount; or

(b) rounding the price of liquor in accordance with Section 32B-2-213.

(8) The Legislature shall annually appropriate to support substance use disorder treatment services, an amount equal to the revenue generated from a 0.5% markup above the landed case cost to the department on spirituous liquor.

§ 32B-2-305 Alcoholic Beverage Control Act Enforcement Fund.

(1) As used in this section:

(a) "Alcohol-related law enforcement officer" means the same as that term is defined in Section 32B-1-201.

(b) "Drug-related law enforcement officer" means a law enforcement officer employed by the Department of Public Safety who has enforcement of drug-related offenses as a primary responsibility.

(c) "Enforcement ratio" means the same as that term is defined in Section 32B-1-201.

(d) "Fund" means the Alcoholic Beverage Control Act Enforcement Fund created in this section.

(e) "SBI drug-related law enforcement officer" means a law enforcement officer employed by the State Bureau of Investigation within the Department of Public Safety who has investigation of drug-related offenses as a primary responsibility.

(f) "Social worker" means an individual licensed under Title 58, Chapter 60, Part 2, Social Worker Licensing Act, and employed by the Department of Public Safety who has provision of caseworker services to individuals under 21 years old as a primary responsibility.

(2) There is created an expendable special revenue fund known as the "Alcoholic Beverage Control Act Enforcement Fund."

(3)

(a) The fund consists of:

(i) deposits made under Subsection (4);

(ii) deposits made under Section 59-15-109; and

(iii) interest earned on the fund.

(b)

(i) The fund shall earn interest.

(ii) Interest on the fund shall be deposited into the fund.

(4) After the deposit made under Section 32B-2-304 for the school lunch program, the department shall deposit 1.695% of the total gross revenue from the sale of liquor with the state treasurer to be credited to the fund.

(5) The deposits made under Subsection (4) and Section 59-15-109 shall be:

(a) used by the Department of Public Safety as provided in Subsection (6); and

(b) reallocated to the General Fund as described in Subsection (7).

(6)

(a) The Department of Public Safety shall expend money from the fund to:

(i) supplement appropriations by the Legislature so that the Department of Public Safety maintains a sufficient number of alcohol-related law enforcement officers such that each year the enforcement ratio as of July 1 is equal to or less than the number specified in Section 32B-1-201; and

(ii) maintain at least:

(A) 10 drug-related law enforcement officers;

(B) eight SBI drug-related law enforcement officers;

(C) two social workers; and

(D) three additional alcohol-related law enforcement officers who are dedicated to compliance or enforcement of this title.

(b) Four of the alcohol-related law enforcement officers described in Subsection (6)(a)(i) shall have as a primary focus the enforcement of this title in relationship to restaurants.

(7) For fiscal year 2023, the Division of Finance shall deposit into the General Fund $3 million of unspent money in the fund.

§ 32B-2-306 Underage drinking prevention media and education campaign.

(1) As used in this section, "restricted account" means the Underage Drinking Prevention Media and Education Campaign Restricted Account created in this section.

(2)

(a) There is created a restricted account within the General Fund known as the "Underage Drinking Prevention Media and Education Campaign Restricted Account."

(b) The restricted account consists of:

(i) deposits made under Subsection (3); and

(ii) interest earned on the restricted account.

(3) The department shall deposit 0.6% of the total gross revenue from sales of liquor with the state treasurer, as determined by the total gross revenue collected for the fiscal year two years preceding the fiscal year for which the deposit is made, to be credited to the restricted account and to be used by the department as provided in Subsection (5).

(4) The department shall:

(a) provide ongoing oversight of a media and education campaign funded under this section;

(b) create guidelines for how money appropriated for a media and education campaign can be used; and

(c) include in the guidelines that a media and education campaign funded under this section is carefully researched and developed, and appropriate for target groups.

(5)

(a) Subject to appropriation from the Legislature, the department shall expend money from the restricted account to direct and fund one or more media and education campaigns designed to reduce underage drinking.

(b) The department shall:

(i) prepare a plan detailing the intended use of the money appropriated under this section;

(ii) conduct the media and education campaign in accordance with the guidelines created by the department under Subsection (4)(b); and

(iii) coordinate and maintain ongoing communications and collaboration with public entities and private organizations to reduce underage drinking.

(c) The department shall annually, no later than October 1 for the fiscal year ending on June 30 of that calendar year, report to the Utah Behavioral Health Commission on:

(i) the media and education campaign, including the campaign's impact; and

(ii) the results of the efforts to reduce underage drinking.

§ 32B-2-307 State Store Land Acquisition and Building Construction Fund.

(1) As used in this section, "fund" means the State Store Land Acquisition and Building Construction Fund created in this section.

(2) There is created an enterprise fund known as the State Store Land Acquisition and Building Construction Fund.

(3) The fund is funded from the following sources:

(a) appropriations made to the fund by the Legislature;

(b) in accordance with Subsection (6)(a), proceeds from revenue bonds authorized by Title 63B, Bonds;

(c) subject to Subsection (7)(b), repayments to the fund; and

(d) the interest described in Subsection (4).

(4)

(a) The fund shall earn interest.

(b) Interest earned on the fund shall be deposited into the fund.

(5) Subject to Subsection (6), the department may use the money deposited into the fund:

(a) for construction of new state stores, including to purchase or lease property; and

(b) for maintenance or renovation of existing state stores or facilities.

(6)

(a) Before the department spends or commits money from the fund, the department shall:

(i) present to the Transportation and Infrastructure Appropriations Subcommittee a description of how the department will spend the money; and

(ii) if the department intends to spend or commit money from the fund for construction of a new state store:

(A) receive approval from the Division of Facilities Construction and Management, created in Section 63A-5b-301; and

(B) receive authorization in an appropriations act.

(b) Following a presentation described in Subsection (6)(a)(i), the Transportation and Infrastructure Appropriations Subcommittee shall recommend whether the department spend the money in accordance with the department's presentation.

(7)

(a) If the department uses money in the fund for a purpose described in Subsection (5), and subsequently issues a revenue bond for that purpose, the department shall repay the money with proceeds from the revenue bond.

(b) If the department uses money from the fund for a purpose described in Subsection (5), and subsequently uses, instead of issuing bonds, cash funding appropriated by the Legislature to fund that purpose, the department shall reimburse the fund:

(i) with proceeds from liquor revenue in the Liquor Control Fund, created in Section 32B-2-301, on a long-term payment schedule set by the state treasurer; and

(ii) before the transfer described in Subsection 32B-2-301(7).

(8)

(a) If the department uses money from the fund that the Legislature appropriated as a loan to be used for the purposes described in Subsection (5), the department shall repay the money with proceeds from liquor revenue in the Liquor Control Fund, created in Section 32B-2-301:

(i) with interest at prevailing municipal revenue bond rates for the state of Utah at the time of loan origination minus 50 basis points; and

(ii) on a term not to exceed 15 years.

(b) The department shall make each payment under Subsection (8)(a) before the transfer described in Subsection 32B-2-301(7).

Part 4 Alcoholic Beverage and Substance Abuse Enforcement and Treatment Restricted Account Act

§ 32B-2-401 Title.

This part is known as the "Alcoholic Beverage and Substance Abuse Enforcement and Treatment Restricted Account Act."

§ 32B-2-402 Definitions -- Calculations.

(1) As used in this part:

(a) "Account" means the Alcoholic Beverage and Substance Abuse Enforcement and Treatment Restricted Account created in Section 32B-2-403.

(b) "Alcohol-related offense" means:

(i) a violation of:

(A) Section 41-6a-502; or

(B) an ordinance that complies with the requirements of:

(I) Subsection 41-6a-510(1); or

(II) Section 76-5-207; or

(ii) an offense involving the illegal:

(A) sale of an alcoholic product;

(B) consumption of an alcoholic product;

(C) distribution of an alcoholic product;

(D) transportation of an alcoholic product; or

(E) possession of an alcoholic product.

(c) "Annual conviction time period" means the time period that:

(i) begins on July 1 and ends on June 30; and

(ii) immediately precedes the fiscal year for which an appropriation under this part is made.

(d) "Behavioral Health Commission" means the Utah Behavioral Health Commission created in Section 26B-5-702.

(e) "Municipality" means a city or town.

(f)

(i) "Prevention" is as defined by rule, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, by the Division of Integrated Healthcare within the Department of Health and Human Services.

(ii) In defining the term "prevention," the Division of Substance Abuse and Mental Health shall:

(A) include only evidence-based or evidence-informed programs; and

(B) provide for coordination with local substance abuse authorities designated to provide substance abuse services in accordance with Section 17-77-201.

(2) For purposes of Subsection 32B-2-404(1)(b)(iii), the number of premises located within the limits of a municipality or county:

(a) is the number determined by the department to be so located;

(b) includes the aggregate number of premises of the following:

(i) a state store;

(ii) a package agency; and

(iii) a retail licensee; and

(c) for a county, consists only of the number located within an unincorporated area of the county.

(3) The department shall determine:

(a) a population figure according to the most current population estimate prepared by the Utah Population Committee;

(b) a county's population for the 25% distribution to municipalities and counties under Subsection 32B-2-404(1)(b)(i) only with reference to the population in the unincorporated areas of the county; and

(c) a county's population for the 25% distribution to counties under Subsection 32B-2-404(1)(b)(iv) only with reference to the total population in the county, including that of a municipality.

(4)

(a) A conviction occurs in the municipality or county that actually prosecutes the offense to judgment.

(b) If a conviction is based upon a guilty plea, the conviction is considered to occur in the municipality or county that, except for the guilty plea, would have prosecuted the offense.

§ 32B-2-403 Alcoholic Beverage and Substance Abuse Enforcement and Treatment Restricted Account created.

(1)

(a) There is created in the General Fund a restricted account known as the "Alcoholic Beverage and Substance Abuse Enforcement and Treatment Restricted Account."

(b) The account is funded from:

(i) money deposited by the state treasurer in accordance with Section 59-15-109;

(ii) appropriations made to the account by the Legislature; and

(iii) interest described in Subsection (1)(c).

(c) Interest earned on the account shall be deposited into the account.

(2)

(a) Consistent with the policies provided in Subsection 32B-1-103(4)(b), money in the account shall be used for statewide public purposes, including promoting the reduction of the harmful effects of substance abuse, overconsumption of alcoholic products by an adult, and alcohol consumption by minors, by exclusively funding programs or projects related to prevention, treatment, detection, prosecution, and control of violations of this title and other offenses in which alcohol or substance abuse is a contributing factor except as provided in Subsection (2)(b).

(b) The portion distributed under this part to a county may also be used for the confinement or treatment of persons arrested for or convicted of offenses in which alcohol or substance abuse is a contributing factor.

(c) A municipality or county entitled to receive money shall use the money exclusively as required by this Subsection (2).

(3) The appropriations provided for under Section 32B-2-404 are:

(a) intended to supplement the budget of the appropriate agencies of each municipality and county within the state to enable the municipalities and counties to more effectively fund the programs and projects described in Subsection (2); and

(b) not intended to replace money that would otherwise be allocated for the programs and projects in Subsection (2).

(4) It is the intent of the Legislature that the appropriations distributed under this part be used to fund a balanced approach to reducing the harmful effects of substance abuse, overconsumption of alcoholic products by adults, and alcohol consumption by minors. To this end, the Legislature encourages municipalities and counties receiving money under this part to use the most effective formula allocation to fund evidence-based and evidence-informed prevention programs.

§ 32B-2-404 Alcoholic Beverage and Substance Abuse Enforcement and Treatment Restricted Account distribution.

(1)

(a) The money deposited into the account under Section 32B-2-403 shall be distributed to municipalities and counties:

(i) to the extent appropriated by the Legislature, except that the Legislature shall appropriate each fiscal year an amount equal to at least the amount deposited in the account in accordance with Section 59-15-109; and

(ii) as provided in this Subsection (1).

(b) The amount appropriated from the account shall be distributed as follows:

(i) 25% to municipalities and counties on the basis of the percentage of the state population residing in each municipality and county;

(ii) 30% to municipalities and counties on the basis of each municipality's and county's percentage of the statewide convictions for all alcohol-related offenses;

(iii) 20% to municipalities and counties on the basis of the percentage of the following in the state that are located in each municipality and county:

(A) state stores;

(B) package agencies;

(C) retail licensees; and

(D) off-premise beer retailers; and

(iv) 25% to the counties for confinement and treatment purposes authorized by this part on the basis of the percentage of the state population located in each county.

(c)

(i) Except as provided in Subsection (1)(c)(ii), if a municipality does not have a law enforcement agency:

(A) the municipality may not receive money under this part; and

(B) the State Tax Commission:

(I) may not distribute the money the municipality would receive but for the municipality not having a law enforcement agency to that municipality; and

(II) shall distribute the money that the municipality would have received but for it not having a law enforcement agency to the county in which the municipality is located for use by the county in accordance with this part.

(ii) If the Behavioral Health Commission, before July 1, 2029, or the department, on or after July 1, 2029, finds that a municipality described in Subsection (1)(c)(i) demonstrates that the municipality can use the money that the municipality is otherwise eligible to receive in accordance with this part, the Behavioral Health Commission, before July 1, 2029, or the department, on or after July 1, 2029, may direct the State Tax Commission to distribute the money to the municipality.

(2) To determine the distribution required by Subsection (1)(b)(ii), the State Tax Commission shall annually:

(a) for an annual conviction time period:

(i) multiply by two the total number of convictions in the state obtained during the annual conviction time period for violation of:

(A) Section 41-6a-502; or

(B) an ordinance that complies with the requirements of Subsection 41-6a-510(1) or Section 76-5-207; and

(ii) add to the number calculated under Subsection (2)(a)(i) the number of convictions obtained during the annual conviction time period for the alcohol-related offenses other than the alcohol-related offenses described in Subsection (2)(a)(i);

(b) divide an amount equal to 30% of the appropriation for that fiscal year by the sum obtained in Subsection (2)(a); and

(c) multiply the amount calculated under Subsection (2)(b), by the number of convictions obtained in each municipality and county during the annual conviction time period for alcohol-related offenses.

(3) By not later than September 1 each year:

(a) the state court administrator shall certify to the State Tax Commission the number of convictions obtained for alcohol-related offenses in each municipality or county in the state during the annual conviction time period; and

(b) the Behavioral Health Commission, before July 1, 2029, or the department, on or after July 1, 2029, shall notify the State Tax Commission of any municipality that does not have a law enforcement agency.

(4) By not later than December 1 of each year, the Behavioral Health Commission, before July 1, 2029, or the department, on or after July 1, 2029, shall notify the State Tax Commission for the fiscal year of appropriation of:

(a) a municipality that may receive a distribution under Subsection (1)(c)(ii);

(b) a county that may receive a distribution allocated to a municipality described in Subsection (1)(c)(i);

(c) a municipality or county that may not receive a distribution because the Behavioral Health Commission, before July 1, 2029, or the department, on or after July 1, 2029, has suspended the payment under Subsection 32B-2-405(2)(a); and

(d) a municipality or county that receives a distribution because the suspension of payment has been cancelled under Subsection 32B-2-405(2).

(5)

(a) By not later than January 1 of the fiscal year of appropriation, the State Tax Commission shall annually distribute to each municipality and county the portion of the appropriation that the municipality or county is eligible to receive under this part, except for any municipality or county that the Behavioral Health Commission, before July 1, 2029, or the department, on or after July 1, 2029, notifies the State Tax Commission in accordance with Subsection (4) may not receive a distribution in that fiscal year.

(b)

(i) The Behavioral Health Commission, before July 1, 2029, or the department, on or after July 1, 2029, shall prepare forms for use by a municipality or county in applying for a distribution under this part.

(ii) A form described in this Subsection (5) may require the submission of information the Behavioral Health Commission, before July 1, 2029, or the department, on or after July 1, 2029, considers necessary to enable the State Tax Commission to comply with this part.

§ 32B-2-405 Reporting by municipalities and counties -- Grants.

(1) A municipality or county that receives money under this part during a fiscal year shall by no later than October 1 following the fiscal year:

(a) report to the Behavioral Health Commission, before July 1, 2029, or the department, on or after July 1, 2029:

(i) the programs or projects of the municipality or county that receive money under this part;

(ii) if the money for programs or projects were exclusively used as required by Subsection 32B-2-403(2);

(iii) indicators of whether the programs or projects that receive money under this part are effective; and

(iv) if money received under this part was not expended by the municipality or county; and

(b) provide the Behavioral Health Commission, before July 1, 2029, or the department, on or after July 1, 2029, a statement signed by the chief executive officer of the county or municipality attesting that the money received under this part was used in addition to money appropriated or otherwise available for the county's or municipality's law enforcement and was not used to supplant that money.

(2) The Behavioral Health Commission, before July 1, 2029, may, by a majority vote, or the department, on or after July 1, 2029, may:

(a) suspend future payments under Subsection 32B-2-404(4) to a municipality or county that:

(i) does not file a report that meets the requirements of Subsection (1); or

(ii) the Behavioral Health Commission, before July 1, 2029, or the department, on or after July 1, 2029, finds does not use the money as required by Subsection 32B-2-403(2) on the basis of the report filed by the municipality or county under Subsection (1); and

(b) cancel a suspension under Subsection (2)(a).

(3) The State Tax Commission shall notify the Behavioral Health Commission, before July 1, 2029, or the department, on or after July 1, 2029, of the balance of any undistributed money after the annual distribution under Subsection 32B-2-404(5).

(4)

(a) Subject to the requirements of this Subsection (4), the Behavioral Health Commission, before July 1, 2029, or the department, on or after July 1, 2029, shall award the balance of undistributed money under Subsection (3):

(i) as prioritized by majority vote of the Behavioral Health Commission, before July 1, 2029, or by the department, on or after July 1, 2029; and

(ii) as grants to:

(A) a county;

(B) a municipality;

(C) the department;

(D) the Department of Health and Human Services;

(E) the Department of Public Safety; or

(F) the State Board of Education.

(b) By not later than May 30 of the fiscal year of the appropriation, the Behavioral Health Commission, before July 1, 2029, or the department, on or after July 1, 2029, shall notify the State Tax Commission of grants awarded under this Subsection (4).

(c) The State Tax Commission shall make payments of a grant:

(i) upon receiving notice as provided under Subsection (4)(b); and

(ii) by not later than June 30 of the fiscal year of the appropriation.

(d) An entity that receives a grant under this Subsection (4) shall use the grant money exclusively for programs or projects described in Subsection 32B-2-403(2).

Part 5 State Store

§ 32B-2-501 Commission's power to establish a state store.

(1) The commission may establish state stores in the numbers and at places, owned or leased by the department, that the commission considers proper for the sale of liquor by employees of the state, in accordance with this title and the rules made under this title.

(2) The commission may not establish a total number of state stores that at any time exceeds the number determined by dividing the population of the state by 48,000.

(3) The commission may not establish a state store at premises that do not meet the proximity requirements of Section 32B-1-202.

(4) An employee of a state store is considered a department employee and shall meet the qualification requirements for employment in Sections 32B-1-303 and 32B-2-207.

(5)

(a) The commission shall ensure that signage installed or replaced at or near a state store, on or after May 11, 2010, complies with Subsection (5)(b) if the signage is:

(i) attached to the exterior of the premises of a state store; or

(ii) not attached to the premises of a state store, but otherwise alerts or directs a person to the location of a state store.

(b) Signage described in Subsection (5)(a) shall contain the following words in the size of lettering required by Subsection (5)(c):

(i) "state"; or

(ii) "State of Utah."

(c) The text described in Subsection (5)(b) shall be in lettering that is equal to or larger than the size of any text on the same signage that refers to "liquor" or "wine."

§ 32B-2-502 Commission and department duties before establishing a state store.

(1)

(a) Before the commission may establish a state store, the department shall conduct an investigation and may hold public hearings to gather information and make recommendations to the commission to assure appropriate service to the general population of the state.

(b) The department shall forward the information and recommendations described in Subsection (1)(a) to the commission to aid in the commission's determination.

(2) Before establishing a state store, the commission shall:

(a) determine that the local authority of the locality where the state store will be located is consulted;

(b) determine that the state store complies with the zoning ordinances of the locality where the state store will be located;

(c) consider the locality within which the proposed state store will be located including:

(i) economic factors, such as:

(A) bid price;

(B) lease terms;

(C) operating costs; and

(D) local taxes;

(ii) physical characteristics, such as:

(A) condition of the premises;

(B) space availability;

(C) parking;

(D) common areas;

(E) conformance to building and safety codes;

(F) delivery access; and

(G) expandability; and

(iii) operational factors, such as:

(A) tourist traffic;

(B) access to the public;

(C) demographics;

(D) population to be served;

(E) the nature of surrounding establishments;

(F) proximity to and density of other state stores, package agencies, and retail licensees;

(G) proximity to residential communities; and

(H) proximity to educational, religious, and recreational facilities; and

(d) consider any other factor the commission considers necessary.

§ 32B-2-503 Operational requirements for a state store.

(1)

(a) A state store shall display in a prominent place in the store a sign in large letters that consists of text in the following order:

(i) a header that reads: "WARNING";

(ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy can cause birth defects and permanent brain damage for the child.";

(iii) a statement in smaller font that reads: "Call the Utah Department of Health and Human Services at [insert most current toll-free number] with questions or for more information.";

(iv) a header that reads: "WARNING"; and

(v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah."

(b)

(i) The text described in Subsections (1)(a)(i) through (iii) shall be in a different font style than the text described in Subsections (1)(a)(iv) and (v).

(ii) The warning statements in the sign described in Subsection (1)(a) shall be in the same font size.

(c) The Department of Health and Human Services shall work with the commission and department to facilitate consistency in the format of a sign required under this section.

(2) Except as provided in Section 32B-2-213, a state store shall sell, offer for sale, or furnish liquor at a price fixed by the commission.

(3) A state store may not sell, offer for sale, or furnish liquor to:

(a) a minor;

(b) a person actually, apparently, or obviously intoxicated;

(c) a known interdicted person; or

(d) a known habitual drunkard.

(4)

(a) A state store employee may not:

(i) consume an alcoholic product on the premises of a state store; or

(ii) allow any person to consume an alcoholic product on the premises of a state store.

(b) A violation of this Subsection (4) is a class B misdemeanor.

(5)

(a) Sale or delivery of liquor may not be made on or from the premises of a state store, and a state store may not be kept open for the sale of liquor:

(i) on Sunday; or

(ii) on a state or federal legal holiday.

(b) Sale or delivery of liquor may be made on or from the premises of a state store, and a state store may be open for the sale of liquor, only on a day and during hours that the commission directs by rule or order.

(6)

(a) A minor may not be admitted into, or be on the premises of, a state store unless accompanied by a person who is:

(i) 21 years old or older; and

(ii) the minor's parent, legal guardian, or spouse.

(b) A state store employee that has reason to believe that a person who is on the premises of a state store is under 21 years old and is not accompanied by a person described in Subsection (6)(a) may:

(i) ask the suspected minor for proof of age;

(ii) ask the person who accompanies the suspected minor for proof of age; and

(iii) ask the suspected minor or the person who accompanies the suspected minor for proof of parental, guardianship, or spousal relationship.

(c) A state store employee shall refuse to sell liquor to the suspected minor and to the person who accompanies the suspected minor into the state store if the suspected minor or person fails to provide information specified in Subsection (6)(b).

(d) A state store employee shall require a suspected minor and the person who accompanies the suspected minor into the state store to immediately leave the premises of the state store if the suspected minor or person fails to provide information specified in Subsection (6)(b).

(7)

(a) A state store may not sell, offer for sale, or furnish liquor except in a sealed container.

(b) A person may not open a sealed container on the premises of a state store.

(8) On or after October 1, 2011, a state store may not sell, offer for sale, or furnish heavy beer in a sealed container that exceeds two liters.

(9) A state store may not sell, offer for sale, or furnish:

(a) liquor that is intended to be frozen and consumed in a manner other than as a beverage, including liquor in the form of a freeze pop, popsicle, ice cream, or sorbet; or

(b) liquor that contains more than 80% alcohol by volume.

(10)

(a) Before the sale or furnishing of an alcoholic product to an individual, a state store shall require that the individual provide proof of age.

(b) If the proof of age provided required by Subsection (10)(a) is a Utah driver license or an identification card, the state store shall verify that the individual is not an interdicted person.

§ 32B-2-504 Delivery of liquor to state store.

(1) Liquor to be sold from a state store may be transported from a warehouse authorized by the department to the state store if transported by a person authorized by the department to transport the liquor to the state store, including a common carrier.

(2) A person, while in or about a vehicle in which liquor is being transported, may not open, break, or allow to be opened or broken, a container containing liquor.

(3) A person may not drink, use, or allow to be drunk or used, liquor while it is in transit under this section.

§ 32B-2-505 Reporting requirements -- Building plan and market survey required -- Department performance measures.

(1) In 2018 and each year thereafter, the department shall present a five-year building plan to the Transportation and Infrastructure Appropriations Subcommittee that describes the department's anticipated property acquisition, building, and remodeling for the five years following the day on which the department presents the five-year building plan.

(2)

(a) In 2018 and every other year thereafter, the department shall complete a market survey to inform the department's five-year building plan described in Subsection (1).

(b) The department shall:

(i) provide a copy of each market survey to the Transportation and Infrastructure Appropriations Subcommittee and the Business and Labor Interim Committee; and

(ii) upon request, appear before the Transportation and Infrastructure Appropriations Subcommittee to present the results of the market survey.

(3) For fiscal year 2018-19 and each fiscal year thereafter, before the fiscal year begins, the Governor's Office of Planning and Budget, in consultation with the department and the Office of the Legislative Fiscal Analyst, shall establish performance measures and goals to evaluate the department's operations during the fiscal year.

(4)

(a) The department may not submit a request to the Division of Facilities Construction and Management for a capital development project unless the department first obtains approval from the Governor's Office of Planning and Budget.

(b) In determining whether to grant approval for a request described in Subsection (4)(a), the Governor's Office of Planning and Budget shall evaluate the extent to which the department met the performance measures and goals described in Subsection (3) during the previous fiscal year.

Part 6 Package Agency

§ 32B-2-601 Commission's power to issue package agency.

(1)

(a) The commission may, when the commission considers proper, issue authority to operate as a package agency by directing the department to enter into a package agency agreement with a person to sell, offer for sale, or furnish liquor in sealed containers from premises other than those owned or leased by the state.

(b) The commission shall authorize a person to operate a package agency by issuing a record that designates the person in charge of the package agency as a "package agent."

(2)

(a) Subject to this Subsection (2), the commission may not issue a total number of package agencies that at any time exceeds the number determined by dividing the population of the state by 18,000.

(b)

(i) The commission may issue a seasonal package agency in an area the commission considers proper.

(ii) A seasonal package agency shall be for a period of six consecutive months.

(iii) A seasonal package agency issued for operation during a summer time period is known as a "Seasonal A" package agency. The period of operation for a Seasonal A package agency shall:

(A) begin on May 1; and

(B) end on October 31.

(iv) A seasonal package agency issued for operation during a winter time period is known as a "Seasonal B" package agency. The period of operation for a Seasonal B package agency shall:

(A) begin on November 1; and

(B) end on April 30.

(v) In determining the number of package agencies that the commission may issue under this section:

(A) a seasonal package agency is counted as one-half of one package agency; and

(B) each Seasonal A package agency shall be paired with a Seasonal B package agency.

(c)

(i) If the location, design, and construction of a hotel may require more than one package agency sales location to serve the public convenience, the commission may authorize a single package agent to sell liquor at as many as three locations within the hotel under one package agency if:

(A) the hotel has a minimum of 150 guest rooms; and

(B) all locations under the package agency are:

(I) within the same hotel; and

(II) on premises that are managed or operated, and owned or leased, by the package agent.

(ii) A facility other than a hotel shall have a separate package agency for each location where liquor may be sold, offered for sale, or furnished.

(3)

(a) A package agent, under the direction of the department, is responsible for implementing and enforcing this title and the rules adopted under this title to the extent this title and the rules relate to the conduct of the package agency and a package agency's sale of liquor.

(b) A package agent may not be a state employee. A package agent may not be construed to be a state employee or otherwise entitled to any benefit of employment from the state.

(c) A package agent, when selling liquor from a package agency, is considered an agent of the state only to the extent specifically expressed in the package agency agreement.

(4) The commission may prescribe by rule one or more types of package agencies issued under this part that are consistent with this title.

§ 32B-2-602 Application and renewal requirements for a package agency.

(1) Before a person may store, sell, offer for sale, or furnish liquor in a sealed container on its premises under a package agency, the person shall first obtain a package agency issued by the commission in accordance with this part.

(2) To obtain a package agency, a person seeking to be the package agent under this part shall submit to the department:

(a) a written application in a form prescribed by the department;

(b) a nonrefundable application fee of $125;

(c) written consent of the local authority;

(d) evidence of proximity to any community location, with proximity requirements being governed by Section 32B-1-202;

(e) a bond as specified by Section 32B-2-604;

(f) a floor plan of the premises, including a description and highlighting of that part of the premises in which the person proposes that the package agency be located;

(g) evidence that the package agency is carrying public liability insurance in an amount and form satisfactory to the department;

(h) a signed consent form stating that the package agent permits any authorized representative of the commission, department, or any law enforcement officer to have unrestricted right to enter the premises of the package agency;

(i) if the person applying is an entity, verification that a person who signs the package agency application is authorized to sign on behalf of the entity; and

(j) any other information the commission or department may require.

(3) The commission may not issue a package agency to a person who is disqualified under Section 32B-1-304.

(4) The commission may not issue a package agency for premises that do not meet the proximity requirements of Section 32B-1-202.

(5) For the renewal of a package agency agreement, the package agent shall submit to the department any information the commission or department may require.

§ 32B-2-603 Commission and department duties before issuing a package agency.

(1)

(a) Before the commission may issue a package agency, the department shall conduct an investigation and may hold public hearings to gather information and make recommendations to the commission to assure appropriate service to the general population of the state.

(b) The department shall forward the information and recommendations described in Subsection (1)(a) to the commission to aid in the commission's determination.

(2) Before issuing a package agency, the commission shall:

(a) determine that the person filed a complete application and is in compliance with Section 32B-2-602;

(b) determine that the person is not disqualified under Section 32B-1-304;

(c) determine that the package agency premises complies with the zoning ordinances of the locality where the package agency will be located;

(d) consider the locality within which the proposed package agency will be located, including:

(i) physical characteristics, such as:

(A) condition of the premises;

(B) square footage;

(C) parking; and

(D) delivery access; and

(ii) operational factors, such as:

(A) tourist traffic;

(B) access to the public;

(C) demographics;

(D) population to be served;

(E) the nature of surrounding establishments;

(F) proximity to and density of other state stores, package agencies, and retail licensees;

(G) proximity to residential communities; and

(H) the extent of and proximity to educational, religious, and recreational facilities;

(e) consider the person's ability to manage and operate a package agency, including:

(i) management experience;

(ii) past retail liquor experience;

(iii) the type of establishment or business in which the package agency may be located;

(iv) hours of operation; and

(v) ability to maintain inventory levels as set by the department; and

(f) consider any other factor the commission considers necessary.

§ 32B-2-604 Bond related to package agency.

(1)

(a) A package agent who has a consignment liquor inventory owned by the state shall post a:

(i) consignment surety bond:

(A) payable to the department; and

(B) in the amount of the consignment inventory; and

(ii) cash or surety bond:

(A) payable to the department; and

(B) in the penal amount of at least $1,000, as the department determines.

(b) A package agent who has a consignment liquor inventory shall ensure that a consignment surety bond is conditioned upon a package agent's return of the unsold consignment liquor inventory at the termination of a package agency agreement.

(2) A package agent that owns the package agency's liquor inventory shall post a cash bond or surety bond:

(a) in the penal amount of at least $1,000, as the department determines; and

(b) payable to the department.

(3) A package agent shall procure and maintain the bond required under this section for as long as the package agent continues to operate as a package agent.

(4) A bond required under this section shall be:

(a) in a form approved by the attorney general; and

(b) conditioned upon the package agent's faithful compliance with this title, the rules of the commission, and the package agency agreement.

(5)

(a) If a surety bond posted by a package agency under this section is canceled due to the package agent's or package agency's negligence, the department may assess a $300 reinstatement fee.

(b) No part of a bond posted by a package agent under this section may be withdrawn:

(i) during the period the package agency is in effect; or

(ii) while a revocation of the package agency is pending against the package agent.

(6)

(a) A bond posted under this section by a package agent may be forfeited if the package agency is revoked.

(b) Notwithstanding Subsection (6)(a), the department may make a claim against a bond posted by a package agent for money owed the department under this title without the commission first revoking the package agency.

§ 32B-2-605 Operational requirements for package agency.

(1)

(a) A person may not operate a package agency until a package agency agreement is entered into by the package agent and the department.

(b) A package agency agreement shall state the conditions of operation by which the package agent and the department are bound.

(c)

(i) If a package agent or staff of the package agent violates this title, rules under this title, or the package agency agreement, the department may take any action against the package agent that is allowed by the package agency agreement.

(ii) An action against a package agent is governed solely by its package agency agreement and may include suspension or revocation of the package agency.

(iii) A package agency agreement shall provide procedures to be followed if a package agent fails to pay money owed to the department including a procedure for replacing the package agent or operator of the package agency.

(iv) A package agency agreement shall provide that the package agency is subject to covert investigations for selling an alcoholic product to a minor.

(v) Notwithstanding that this part refers to "package agency" or "package agent," staff of the package agency or package agent is subject to the same requirement or prohibition.

(2)

(a) A package agency shall be operated by an individual who is either:

(i) the package agent; or

(ii) an individual designated by the package agent.

(b) An individual who is a designee under this Subsection (2) shall be:

(i) an employee of the package agent; and

(ii) responsible for the operation of the package agency.

(c) The conduct of the designee is attributable to the package agent.

(d) A package agent shall submit the name of the person operating the package agency to the department for the department's approval.

(e) A package agent shall state the name and title of a designee on the application for a package agency.

(f) A package agent shall:

(i) inform the department of a proposed change in the individual designated to operate a package agency; and

(ii) receive prior approval from the department before implementing the change described in this Subsection (2)(f).

(g) Failure to comply with the requirements of this Subsection (2) may result in the immediate termination of a package agency agreement.

(3)

(a) A package agent shall display in a prominent place in the package agency the record issued by the commission that designates the package agency.

(b) A package agent that displays or stores liquor at a location visible to the public shall display in a prominent place in the package agency a sign in large letters that consists of text in the following order:

(i) a header that reads: "WARNING";

(ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy can cause birth defects and permanent brain damage for the child.";

(iii) a statement in smaller font that reads: "Call the Utah Department of Health and Human Services at [insert most current toll-free number] with questions or for more information.";

(iv) a header that reads: "WARNING"; and

(v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah."

(c)

(i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different font style than the text described in Subsections (3)(b)(iv) and (v).

(ii) The warning statements in the sign described in Subsection (3)(b) shall be in the same font size.

(d) The Department of Health and Human Services shall work with the commission and department to facilitate consistency in the format of a sign required under this section.

(4) A package agency may not display liquor or a price list in a window or showcase that is visible to passersby.

(5)

(a) A package agency may not purchase liquor from a person except from the department.

(b) At the discretion of the department, the department may provide liquor to a package agency for sale on consignment.

(6) A package agency may not store, sell, offer for sale, or furnish liquor in a place other than as designated in the package agent's application, unless the package agent first applies for and receives approval from the department for a change of location within the package agency premises.

(7)

(a) Except as provided in Subsection (7)(b) and Section 32B-2-213, a package agency shall sell, offer for sale, or furnish liquor at a price fixed by the commission.

(b) A package agency may provide as room service one alcoholic product free of charge per guest reservation, per guest room, if:

(i) the package agency is the type of package agency that authorizes the package agency to sell, offer for sale, or furnish an alcoholic product as part of room service;

(ii) staff of the package agency provides the alcoholic product:

(A) in person; and

(B) only to an adult guest in the guest room;

(iii) staff of the package agency does not leave the alcoholic product outside a guest room for retrieval by a guest; and

(iv) the alcoholic product:

(A) is not a spirituous liquor; and

(B) is in an unopened container not to exceed 750 milliliters.

(8) A package agency may not sell, offer for sale, or furnish liquor to:

(a) a minor;

(b) a person actually, apparently, or obviously intoxicated;

(c) a known interdicted person; or

(d) a known habitual drunkard.

(9)

(a) A package agency may not employ a minor to handle liquor.

(b)

(i) Staff of a package agency may not:

(A) consume an alcoholic product on the premises of a package agency; or

(B) allow any person to consume an alcoholic product on the premises of a package agency.

(ii) Violation of this Subsection (9)(b) is a class B misdemeanor.

(10)

(a) A package agency may not close or cease operation for a period longer than 72 hours, unless:

(i) the package agency notifies the department in writing at least seven days before the day on which the package agency closes or ceases operation; and

(ii) the closure or cessation of operation is first approved by the department.

(b) Notwithstanding Subsection (10)(a), in the case of emergency closure, a package agency shall immediately notify the department by telephone.

(c)

(i) The department may authorize a closure or cessation of operation for a period not to exceed 60 days.

(ii) The department may extend the initial period described in Subsection (10)(c)(i) an additional 30 days upon written request of the package agency and upon a showing of good cause.

(iii) A closure or cessation of operation may not exceed a total of 90 days without commission approval.

(d) The notice required by Subsection (10)(a) shall include:

(i) the dates of closure or cessation of operation;

(ii) the reason for the closure or cessation of operation; and

(iii) the date on which the package agency will reopen or resume operation.

(e) Failure of a package agency to provide notice and to obtain department authorization before closure or cessation of operation results in an automatic termination of the package agency agreement effective immediately.

(f) Failure of a package agency to reopen or resume operation by the approved date results in an automatic termination of the package agency agreement effective on that date.

(11) A package agency may not transfer the package agency's operations from one location to another location without prior written approval of the commission.

(12)

(a) A person, having been issued a package agency, may not sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the package agency to another person, whether for monetary gain or not.

(b) A package agency has no monetary value for any type of disposition.

(13)

(a) Subject to the other provisions of this Subsection (13):

(i) sale or delivery of liquor may not be made on or from the premises of a package agency, and a package agency may not be kept open for the sale of liquor:

(A) on Sunday; or

(B) on a state or federal legal holiday; and

(ii) sale or delivery of liquor may be made on or from the premises of a package agency, and a package agency may be open for the sale of liquor, only on a day and during hours that the commission directs by rule or order.

(b) A package agency located at a manufacturing facility is not subject to Subsection (13)(a) if:

(i) the package agency is located at a manufacturing facility licensed in accordance with Chapter 11, Manufacturing and Related Licenses Act; and

(ii) the package agency only sells an alcoholic product produced at the manufacturing facility.

(c)

(i) Subsection (13)(a) does not apply to a package agency held by the following if the package agent that holds the package agency to sell liquor at a resort or hotel does not sell liquor in a manner similar to a state store:

(A) a resort licensee; or

(B) a hotel licensee.

(ii) The commission may by rule define what constitutes a package agency that sells liquor "in a manner similar to a state store."

(14)

(a) Except to the extent authorized by commission rule, a minor may not be admitted into, or be on the premises of, a package agency unless accompanied by a person who is:

(i) 21 years old or older; and

(ii) the minor's parent, legal guardian, or spouse.

(b) A package agent or staff of a package agency that has reason to believe that a person who is on the premises of a package agency is under 21 years old and is not accompanied by a person described in Subsection (14)(a) may:

(i) ask the suspected minor for proof of age;

(ii) ask the person who accompanies the suspected minor for proof of age; and

(iii) ask the suspected minor or the person who accompanies the suspected minor for proof of parental, guardianship, or spousal relationship.

(c) A package agent or staff of a package agency shall refuse to sell liquor to the suspected minor and to the person who accompanies the suspected minor into the package agency if the minor or person fails to provide any information specified in Subsection (14)(b).

(d) A package agent or staff of a package agency shall require the suspected minor and the person who accompanies the suspected minor into the package agency to immediately leave the premises of the package agency if the minor or person fails to provide information specified in Subsection (14)(b).

(15)

(a) A package agency shall sell, offer for sale, or furnish liquor in a sealed container.

(b) A person may not open a sealed container on the premises of a package agency.

(c) Notwithstanding Subsection (15)(a), a package agency may sell, offer for sale, or furnish liquor in other than a sealed container:

(i) if the package agency is the type of package agency that authorizes the package agency to sell, offer for sale, or furnish the liquor as part of room service;

(ii) if the liquor is sold, offered for sale, or furnished as part of room service; and

(iii) subject to:

(A) staff of the package agency providing the liquor in person only to an adult guest in the guest room or privately owned dwelling unit;

(B) staff of the package agency not leaving the liquor outside a guest room or privately owned dwelling unit for retrieval by a guest or resident; and

(C) the same limits on the portions in which an alcoholic product may be sold by a retail licensee under Section 32B-5-304.

(16) A package agency may not sell, offer for sale, or furnish:

(a) heavy beer in a sealed container that exceeds two liters; or

(b) liquor that contains more than 80% alcohol by volume.

(17) The department may pay or otherwise remunerate a package agent on any basis, including sales or volume of business done by the package agency.

(18) The commission may prescribe by policy or rule general operational requirements of a package agency that are consistent with this title and relate to:

(a) physical facilities;

(b) conditions of operation;

(c) hours of operation;

(d) inventory levels;

(e) payment schedules;

(f) methods of payment;

(g) premises security; and

(h) any other matter considered appropriate by the commission.

(19) A package agency may not maintain a minibar.

(20)

(a) Before the sale or furnishing of an alcoholic product to an individual, a package agency shall require that the individual provide proof of age.

(b) If the proof of age provided required by Subsection (20)(a) is a Utah driver license or an identification card, the package agency shall verify that the individual is not an interdicted person.

§ 32B-2-606 Delivery of liquor to package agency.

(1) Liquor to be sold from a package agency may be transported from a warehouse or state store authorized by the department to the package agency if transported by a person authorized by the department to transport the liquor to the package agency, including a common carrier.

(2) A person, while in or about a vehicle in which liquor is being transported, may not open, break, or allow to be opened or broken, a container containing liquor.

(3) A person may not drink, use, or allow to be drunk or used, any liquor while the liquor is in transit under this section.

§ 32B-2-607 Return of inventory by package agent.

A package agent shall immediately return to the department liquor previously received from the department on consignment that remains unsold at the time the package agent's package agency agreement terminates or the liquor is subject to immediate seizure by the department.

Part 7 Wine Subscription Program

§ 32B-2-701 Definitions.

As used in this part:

(1) "Division" means the Division of Consumer Purchasing created in Section 32B-2-212.

(2) "Subscriber" means an individual who subscribes to a wine subscription as described in Subsection 32B-2-702(2).

(3) "Subscription program" means the wine subscription program established in Section 32B-2-702.

(4) "Wine subscription" means an arrangement in which a customer pays a recurring price at regular intervals for a product that involves the shipment or transportation of wine.

(5) "Wine subscription business" means a person that:

(a) sells or offers for sale a wine subscription; and

(b) contracts with the department to participate in the subscription program.

§ 32B-2-702 Wine subscription program.

(1) The division shall establish and administer a wine subscription program as described in this part.

(2) The subscription program shall permit an individual to subscribe to a wine subscription that a wine subscription business sells or offers for sale by:

(a) enrolling in the wine subscription program in a manner the division prescribes;

(b) authorizing the division to purchase the wine subscription in the individual's name;

(c) paying the division, in a manner the division prescribes:

(i) the price of the wine subscription;

(ii) in addition to any tax, the markup described in Subsection 32B-2-304(4); and

(iii) a fee the division charges in accordance with Subsection 32B-2-703(1); and

(d) designating the state store or package agency at which the individual would prefer to collect the wine.

(3) The division shall:

(a) designate by contract with a wine subscription business the department warehouse to which the wine subscription business ships or transports wine under the subscription program;

(b) deliver wine purchased through the subscription program to the appropriate state store or package agency; and

(c) notify a subscriber when wine purchased through the subscription program is ready for the subscriber to collect from the state store or package agency described in Subsection (3)(b).

§ 32B-2-703 Fees -- Rulemaking.

(1) The division may charge a fee as part of the subscription program:

(a) in accordance with Section 63J-1-504; and

(b) to cover costs to the division for administering the subscription program.

(2) The commission may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for the administration of this part, including rules designating which package agencies may receive from the division wines that are purchased through the subscription program.

Part 8 Consumer Purchasing System

§ 32B-2-801 Definitions.

As used in this part:

(1) "Consumer purchasing system" means the consumer purchasing system established in Section 32B-2-802.

(2) "Division" means the Division of Consumer Purchasing created in Section 32B-2-212.

§ 32B-2-802 Consumer purchasing system.

(1) The division shall establish and administer a consumer purchasing system that:

(a) allows a person to:

(i) order an alcoholic product from an approved vendor through the division; and

(ii) pick up an alcoholic product ordered as described in Subsection (1)(a)(i) from a state store or package agency; and

(b) requires a person ordering an alcoholic product as described in Subsection (1)(a) to, at the time the order is made:

(i) designate a state store or package agency at which the person would prefer to collect the alcoholic product; and

(ii) pay the division for the alcoholic product order in full, including:

(A) the cost of the alcoholic product; and

(B) in addition to any tax, the markup described in Section 32B-2-304.

(2) The division shall:

(a) ensure that an alcoholic product ordered through the consumer purchasing system is shipped or transported to a department warehouse;

(b) deliver an alcoholic product ordered through the consumer purchasing system to the appropriate state store or package agency;

(c) notify the person who ordered an alcoholic product through the consumer purchasing system when the alcoholic product is ready for the person to collect; and

(d) administer the consumer purchasing system in a manner that:

(i) is efficient;

(ii) ensures timely delivery of alcoholic products; and

(iii) frequently updates a person who orders an alcoholic product through the consumer purchasing system on the status of the order.

(3) The division may not require that a person order a specific quantity of an alcoholic product that is:

(a) different than a quantity the vendor offers for sale; or

(b) larger than the smallest quantity the vendor offers for sale.

§ 32B-2-803 Rulemaking.

The commission may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to carry out the provisions of this part.

Chapter 3 Disciplinary Actions and Enforcement Act

Part 1 General Provisions

§ 32B-3-101 Title.

This chapter is known as the "Disciplinary Actions and Enforcement Act."

§ 32B-3-102 Definitions.

As used in this chapter:

(1) "Aggravating circumstances" means:

(a) prior warnings about compliance problems;

(b) a prior violation history;

(c) a lack of written policies governing employee conduct;

(d) multiple violations during the course of an investigation;

(e) efforts to conceal a violation;

(f) an intentional violation;

(g) the violation involved more than one patron or employee; or

(h) a violation that results in injury or death.

(2) "Final adjudication" means an adjudication for which a final judgment or order is issued that:

(a) is not appealed, and the time to appeal the judgment has expired; or

(b) is appealed, and is affirmed, in whole or in part, on appeal.

(3) "Mitigating circumstances" means:

(a) no prior violation history for the licensee or permittee;

(b) no prior violation history for the individual who committed the violation;

(c) motive for the individual who engaged in or allowed the violation to retaliate against the licensee or permittee; or

(d) extraordinary cooperation with the investigation of the violation that demonstrates that the licensee or permittee and the individual who committed the violation accept responsibility for the violation.

Part 2 Disciplinary Proceedings

§ 32B-3-201 Nature of adjudicative proceedings under title.

(1) An adjudicative proceeding under this title, including a disciplinary proceeding, is a civil action, notwithstanding whether at issue in the adjudicative proceeding is a violation of statute that can be prosecuted criminally.

(2) Unless specifically adopted in this title, a procedure or principle that is applicable to a criminal proceeding does not apply to an adjudicative proceeding permitted under this title including:

(a) Title 76, Chapter 1, General Provisions;

(b) Title 76, Chapter 2, Principles of Criminal Responsibility;

(c) Title 76, Chapter 3, Punishments; and

(d) Title 76, Chapter 4, Inchoate Offenses.

(3)

(a) The burden of proof in an adjudicative proceeding under this title is by a preponderance of the evidence.

(b) If the subject of an adjudicative proceeding under this title asserts an affirmative defense, the subject has the burden of proof to establish the affirmative defense by the preponderance of the evidence.

(4) In an adjudicative proceeding under this title, to find a violation of this title the commission:

(a) is required to determine whether the conduct that constitutes the violation occurred; and

(b) is not required to make a finding of knowledge or intent unless knowledge or intent is expressly made an element of the violation by statute.

§ 32B-3-202 Timing of reporting violations.

(1) The department or the commission may not take administrative action against a person subject to administrative action before:

(a) a nondepartment enforcement agency or enforcement officer or a department compliance officer submits to the department a report:

(i) containing facts that could support a finding that the person subject to administrative action violated this title or a commission rule; and

(ii) no more than eight business days after the day on which the nondepartment enforcement agency or officer or the compliance officer completes the investigation containing the facts described in Subsection (1)(a)(i); and

(b) subject to Subsection (5), the department notifies the person subject to administrative action, no more than eight business days after the day on which the department receives the report described in Subsection (1)(a), that the commission or department:

(i) received the report described in Subsection (1)(a); and

(ii) may initiate or maintain a disciplinary proceeding on the basis, in whole or in part, on the facts contained in the report described in Subsection (1)(a).

(2)

(a) The department may provide the notice required under this section orally, if after the oral notification the department provides written notification.

(b) The department may provide the written notification described in Subsection (2)(a) outside the time periods required under this section.

(3) The department shall maintain a record of a notification required under this section that includes:

(a) the name of the person notified;

(b) the date of the notification; and

(c) the type of notification given.

(4)

(a) The department may issue an order to show cause if the department receives a report described in Subsection (1)(a), containing facts that could support a finding that the person subject to administrative action violated:

(i) this title regarding necessary licensing requirements; or

(ii) a commission rule regarding necessary licensing requirements.

(b) A necessary licensing requirement described in Subsection (4)(a) includes:

(i) maintaining an approved, licensed premise;

(ii) maintaining insurance;

(iii) maintaining a bond;

(iv) following the requirements in Section 32B-1-304, regarding qualifications;

(v) maintaining required store hours;

(vi) failing to utilize the license issued; or

(vii) transferring a license in violation of Chapter 18, Change of Alcohol License or Location Act.

(c) The department's issuance of an order to show cause in accordance with this Subsection (4):

(i) does not initiate a disciplinary proceeding; and

(ii) is not subject to Title 63G, Chapter 4, Administrative Procedures Act.

(5) The department is not required to provide notice as described in Subsection (1)(b) if the person subject to administrative action is staff.

§ 32B-3-203 Initiating a disciplinary proceeding.

Subject to Section 32B-3-202:

(1) Subject to Subsection (3), the department shall initiate a disciplinary proceeding described in Subsection (2) if the department:

(a) receives a report from an investigator alleging that a person subject to administrative action violated this title or the rules of the commission;

(b) receives notice of criminal proceedings against a person subject to administrative action on the basis of an alleged violation of this title;

(c) receives notice of civil proceedings in accordance with Chapter 15, Alcoholic Product Liability Act, against a person subject to administrative action on the basis of an alleged violation of this title; or

(d) otherwise becomes aware that a person subject to administrative action on the basis of an alleged violation of this title may have violated this title or commission rule.

(2) Subject to Subsection (3), if a condition in Subsection (1) is met, the department shall:

(a) initiate a disciplinary proceeding to determine:

(i) whether a person subject to administrative action violated this title or rules of the commission; and

(ii) if a violation is found, the appropriate sanction to be imposed; and

(b) refer the matter to the State Bureau of Investigation, created in Section 53-10-301.

(3) The department is not required to initiate a disciplinary proceeding described in Subsection (2) if after reviewing the information described in Subsection (1), the department determines:

(a) that there is no basis for initiating a disciplinary proceeding; or

(b) in consultation with the prosecutor, law enforcement, or plaintiff's counsel, as applicable, that initiating a disciplinary proceeding would pose a significant risk of interfering with a criminal or civil proceeding.

(4)

(a) Unless waived by the respondent, a disciplinary proceeding shall be held:

(i) if required by law;

(ii) before revoking or suspending a license, permit, or certificate of approval issued under this title; or

(iii) before imposing a fine against a person subject to administrative action.

(b) Inexcusable failure of a respondent to appear at a scheduled disciplinary proceeding hearing after receiving proper notice is an admission of the charged violation.

(c) The validity of a disciplinary proceeding is not affected by the failure of a person to attend or remain in attendance.

§ 32B-3-204 Disciplinary proceeding procedure.

(1)

(a) Subject to Section 32B-3-202, the following may conduct an adjudicative proceeding to inquire into a matter necessary and proper for the administration of this title and rules adopted under this title:

(i) the commission;

(ii) a hearing examiner appointed by the commission to conduct a suspension, non-renewal, or revocation hearing required by law;

(iii) the director; and

(iv) the department.

(b) Except as provided in this section or Section 32B-2-605, a person described in Subsection (1)(a) shall comply with Title 63G, Chapter 4, Administrative Procedures Act, in an adjudicative proceeding.

(c) Except when otherwise provided by law, an adjudicative proceeding before the commission or a hearing examiner appointed by the commission shall be:

(i) video or audio recorded; and

(ii) subject to Subsection (3)(b), conducted in accordance with Title 52, Chapter 4, Open and Public Meetings Act.

(d) A person listed in Subsection (1)(a) shall conduct an adjudicative proceeding concerning departmental personnel in accordance with Title 63A, Chapter 17, Utah State Personnel Management Act.

(e) A hearing that is informational, fact gathering, and nonadversarial in nature shall be conducted in accordance with rules, policies, and procedures made by the commission, director, or department.

(2)

(a) Subject to Section 32B-3-202, a disciplinary proceeding shall be conducted under the authority of the commission, which is responsible for rendering a final decision and order on a disciplinary matter.

(b)

(i) The commission may appoint a necessary officer, including a hearing examiner, from within or without the department, to administer the disciplinary proceeding process.

(ii) A hearing examiner appointed by the commission:

(A) may conduct a disciplinary proceeding hearing on behalf of the commission; and

(B) shall submit to the commission a report including:

(I) findings of fact determined on the basis of a preponderance of the evidence presented at the hearing;

(II) conclusions of law; and

(III) recommendations.

(iii) A report of a hearing examiner under this Subsection (2)(b) may not recommend a penalty more severe than that initially sought by the department in the notice of agency action.

(iv) A copy of a hearing examiner report under this Subsection (2)(b) shall be served upon the respective parties.

(v) Before final commission action, the commission shall give a respondent and the department reasonable opportunity to file a written objection to a hearing examiner report.

(3)

(a) The commission or an appointed hearing examiner shall preside over a disciplinary proceeding hearing.

(b) A disciplinary proceeding hearing may be closed only after the commission or hearing examiner makes a written finding that the public interest in an open hearing is clearly outweighed by factors enumerated in the closure order.

(c)

(i) The commission or an appointed hearing examiner as part of a disciplinary proceeding hearing may:

(A) administer an oath or affirmation;

(B) take evidence, including evidence provided in relation to an order to show cause the department issued in accordance with Section 32B-3-202;

(C) take a deposition within or without this state; and

(D) require by subpoena from a place within this state:

(I) the testimony of a person at a hearing; and

(II) the production of a record or other evidence considered relevant to the inquiry.

(ii) A person subpoenaed in accordance with this Subsection (3)(c) shall testify and produce a record or tangible thing as required in the subpoena.

(iii) A witness subpoenaed, called to testify, or called to produce evidence who claims a privilege against self-incrimination may not be compelled to testify, but the commission or the hearing examiner shall file a written report with the county attorney or district attorney in the jurisdiction where the privilege is claimed or where the witness resides setting forth the circumstance of the claimed privilege.

(iv)

(A) A person is not excused from obeying a subpoena without just cause.

(B) A district court within the judicial district in which a person alleged to be guilty of willful contempt of court or refusal to obey a subpoena is found or resides, upon application by the party issuing the subpoena, may issue an order requiring the person to:

(I) appear before the issuing party; and

(II)

(Aa) produce documentary evidence if so ordered; or

(Bb) give evidence regarding the matter in question.

(C) Failure to obey an order of the court may be punished by the court as contempt.

(d) In a case heard by the commission, the commission shall issue its final decision and order in accordance with Subsection (2).

(4)

(a) The commission shall:

(i) render a final decision and order on a disciplinary action; and

(ii) cause its final order to be prepared in writing, issued, and served on all parties.

(b) An order of the commission is final on the date the order is issued.

(c) The commission, after the commission renders its final decision and order, may require the director to prepare, issue, and cause to be served on the parties the final written order on behalf of the commission.

(5)

(a) If a respondent requests a disciplinary proceeding hearing, the hearing held by the commission or a hearing examiner appointed by the commission shall proceed formally in accordance with Sections 63G-4-204 through 63G-4-209 if:

(i) the alleged violation poses, or potentially poses, a grave risk to public safety, health, and welfare;

(ii) the alleged violation involves:

(A) selling or furnishing an alcoholic product to a minor;

(B) attire, conduct, or entertainment prohibited by Chapter 1, Part 5, Attire, Conduct, and Entertainment Act;

(C) fraud, deceit, willful concealment, or misrepresentation of the facts by or on behalf of the respondent;

(D) interfering or refusing to cooperate with:

(I) an authorized official of the department or the state in the discharge of the official's duties in relation to the enforcement of this title; or

(II) a peace officer in the discharge of the peace officer's duties in relation to the enforcement of this title;

(E) an unlawful trade practice under Chapter 4, Part 7, Trade Practices Act;

(F) unlawful importation of an alcoholic product; or

(G) unlawful supply of liquor by a liquor industry member, as defined in Section 32B-4-702, to a person other than the department or a military installation, except to the extent permitted by this title; or

(iii) the department determines to seek in a disciplinary proceeding hearing:

(A) an administrative fine exceeding $3,000;

(B) a suspension of a license, permit, or certificate of approval of more than 10 days; or

(C) a revocation of a license, permit, or certificate of approval.

(b) If a respondent does not request a disciplinary proceeding hearing, a hearing shall proceed informally unless it is designated as a formal proceeding pursuant to rules adopted by the commission in accordance with Subsection (5)(c).

(c) The commission shall make rules to provide a procedure to implement this Subsection (5).

(6)

(a) If the department recommends nonrenewal of a license, the department shall notify the licensee of the recommendation at least 15 days before the commission takes action on the nonrenewal.

(b) Notwithstanding Subsection (2), the commission shall appoint a hearing examiner to conduct an adjudicative hearing in accordance with this section if the licensee files a request for a hearing within 10 days of receipt of the notice under Subsection (6)(a).

§ 32B-3-205 Penalties.

(1) If the commission is satisfied that a person subject to administrative action violates this title or the commission's rules, in accordance with Title 63G, Chapter 4, Administrative Procedures Act, the commission may:

(a) suspend or revoke the person's license, permit, or certificate of approval;

(b) subject to Subsection (2), impose a fine against the person, including individual staff of a licensee, permittee, or certificate holder;

(c) assess the administrative costs of a disciplinary proceeding to the person if the person is a licensee, permittee, or certificate holder; or

(d) take a combination of actions described in this Subsection (1).

(2)

(a) A fine imposed may not exceed $25,000 in the aggregate for:

(i) a single notice of agency action; or

(ii) a single action against a package agency.

(b) The commission shall by rule establish a schedule setting forth a range of fines for each violation.

(c) When a presiding officer imposes a fine, the presiding officer shall consider any aggravating circumstances or mitigating circumstances in deciding where within the applicable range to set the fine.

(3) The department shall transfer the costs assessed under this section into the General Fund in accordance with Section 32B-2-301.

(4)

(a) If a license or permit is suspended under this section, the licensee or permittee shall prominently display a sign provided by the department:

(i) during the suspension; and

(ii) at the entrance of the premises of the licensee or permittee.

(b) The sign required by this Subsection (4) shall:

(i) read "The Utah Alcoholic Beverage Services Commission has suspended the alcoholic product license or permit of this establishment. An alcoholic product may not be sold, offered for sale, furnished, or consumed on these premises during the period of suspension."; and

(ii) include the dates of the suspension period.

(c) A licensee or permittee may not remove, alter, obscure, or destroy a sign required to be displayed under this Subsection (4) during the suspension period.

(5)

(a) If a license or permit is revoked, the commission may order the revocation of a bond posted by the licensee or permittee under this title.

(b) Notwithstanding Subsection (5)(a), the department may make a claim against a bond posted by a licensee or permittee for money owed the department under this title without the commission first revoking the license or permit.

(6) A licensee or permittee whose license or permit is revoked may not reapply for a license or permit under this title for three years from the date on which the license or permit is revoked.

(7) If a staff member of a licensee, permittee, or certificate holder is found to have violated this title, in addition to imposing another penalty authorized by this title, the commission may prohibit the staff member from handling, selling, furnishing, distributing, manufacturing, wholesaling, or warehousing an alcoholic product in the course of acting as staff with a licensee, permittee, or certificate holder under this title for a period determined by the commission.

(8)

(a) If the commission makes the finding described in Subsection (8)(b), in addition to other penalties prescribed by this title, the commission may order:

(i) the removal of an alcoholic product of the manufacturer's, supplier's, or importer's from the department's sales list; and

(ii) a suspension of the department's purchase of an alcoholic product described in Subsection (8)(a)(i) for a period determined by the commission.

(b) The commission may take the action described in Subsection (8)(a) if:

(i) a manufacturer, supplier, or importer of liquor or its staff or representative violates this title; and

(ii) the manufacturer, supplier, or importer:

(A) directly commits the violation; or

(B) solicits, requests, commands, encourages, or intentionally aids another to engage in the violation.

(9) If the commission makes a finding that the brewer holding a certificate of approval violates this title or rules of the commission, the commission may take an action against the brewer holding a certificate of approval that the commission could take against a licensee including:

(a) suspension or revocation of the certificate of approval; and

(b) imposition of a fine.

(10) Notwithstanding the other provisions of this title, the commission may not order a disciplinary action or fine in accordance with this section if the disciplinary action or fine is ordered on the basis of a violation:

(a) of a provision in this title related to intoxication or becoming intoxicated; and

(b) if the violation is first investigated by a law enforcement officer, as defined in Section 53-13-103, who has not received training regarding the requirements of this title related to responsible alcoholic product sale or service.

(11) The commission shall expunge each record that relates to an individual's violation of a provision of this title, if the individual does not violate a provision of this title for a period of 36 consecutive months from the day on which the individual's last violation was adjudicated.

§ 32B-3-206 Dishonored checks.

(1) If a check issued in payment of a fee or cost authorized or required by this title is returned to the department as dishonored:

(a) the department may assess a service charge in an amount set by commission rule against the person on whose behalf the check was tendered;

(b) if the check that is returned to the department is from a package agent, licensee, or permittee, the commission may:

(i) suspend or revoke the license or permit; or

(ii) suspend or terminate the operation of the package agency;

(c) the department may require that the person who payed with the dishonored check only pay money owed to the department under this title with cash for the time period determined by the department; or

(d) the department or commission may take a combination of actions as provided in this Subsection (1).

(2)

(a) If a license or permit is revoked under this section, the commission may require the forfeiture of the bond of the licensee or permittee.

(b) Notwithstanding Subsection (2)(a), the department may make a claim against a bond posted by a licensee or permittee for money owed the department under this title without the commission first revoking the license or permit.

(3)

(a) If the operation of a package agency is terminated under this section and the department has posted a bond for the package agency, the commission may require the forfeiture of the bond.

(b) Notwithstanding Subsection (3)(a), the department may make a claim against a bond posted for a package agency without the commission first terminating the operation of the package agency.

§ 32B-3-207 Judicial review -- Enforcement.

(1) In a disciplinary proceeding, a respondent found in a final order of the commission to have violated this title or rules of the commission made under this title may seek judicial review in a court of competent jurisdiction pursuant to the judicial review provisions of Sections 63G-4-401 through 63G-4-405.

(2) Notwithstanding Subsection 63G-4-403(4)(g), an appellate court may not grant relief on the basis that a finding of fact by the commission in a formal disciplinary proceeding is not supported, if the commission's finding of fact is supported by any evidence of substance in the record of the formal disciplinary proceeding when viewed in light of the whole record before the court.

(3) In addition to another remedy provided by law, the commission may seek enforcement of a commission order in a disciplinary proceeding by seeking civil enforcement in a state district court in accordance with Section 63G-4-501.

Part 3 Nuisance Retail Licensee Act

§ 32B-3-301 Title.

This part is known as the "Nuisance Retail Licensee Act."

§ 32B-3-302 Definitions.

As used in this part:

(1) "Nuisance activity" means:

(a) a judicial finding that a licensed establishment is a nuisance under Section 32B-4-208; or

(b) an act described in Section 32B-3-303.

(2) "Objecting governmental entity" means:

(a) a local government entity;

(b) a prosecutor's office; or

(c) a law enforcement agency.

§ 32B-3-303 Acts making a person subject to this part.

(1) One or more of the following acts constitute a nuisance activity:

(a) a single felony conviction within the last two years of:

(i) a retail licensee; or

(ii) supervisory or managerial level staff of the retail licensee;

(b) a single conviction for an offense described in Title 58, Chapter 37, Controlled Substances, or Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances, or an offense described in a statute previously in effect in this state that is the same or substantially the same as a conviction for an offense described in Title 58, Chapter 37, Controlled Substances, or Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances:

(i)

(A) of a retail licensee; or

(B) of staff of the retail licensee;

(ii) within the last two years; and

(iii) made on the basis of an act that occurs on the licensed premises;

(c) three or more convictions of patrons of a retail licensee for an offense described in Title 58, Chapter 37, Controlled Substances, or Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances, or an offense described in a statute previously in effect in this state that is the same or substantially the same as a conviction for an offense described in Title 58, Chapter 37, Controlled Substances, or Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances, if:

(i) the convictions are made on the basis of an act that occurs on the licensed premises; and

(ii) there is evidence that the retail licensee knew or should have known of the illegal activity;

(d) a single conviction within the last two years of a retail licensee or staff of the retail licensee that is made on the basis of:

(i) pornographic and harmful materials:

(A) that violate Title 76, Chapter 5c, Pornographic and Harmful Materials and Performances; and

(B) if the violation occurs on the licensed premises;

(ii) prostitution;

(iii) engaging in or permitting gambling, as defined and proscribed in Title 76, Chapter 9, Part 14, Gambling, on the licensed premises;

(iv) having any fringe gaming device, video gaming device, or gambling device or record as defined in Section 76-9-1401 on the licensed premises;

(v) on the licensed premises engaging in or permitting a contest, game, gaming scheme, or gaming device that requires the risking of something of value for a return or for an outcome when the return or outcome is based upon an element of chance, excluding the playing of an amusement device that confers only an immediate and unrecorded right of replay not exchangeable for value;

(vi) a disturbance of the peace that occurs on the licensed premises; or

(vii) disorderly conduct that occurs on the licensed premises; or

(e) three or more adjudicated violations of this title within the last two years by a retail licensee or by staff of the retail licensee that result in a criminal citation or an administrative referral to the department relating to:

(i) the sale, offer for sale, or furnishing of an alcoholic product to a minor;

(ii) the sale, offer for sale, or furnishing of an alcoholic product to a person actually, apparently, or obviously intoxicated;

(iii) the sale, offer for sale, or furnishing of an alcoholic product after the lawful hours for the sale or furnishing; or

(iv) acts or conduct on the licensed premises contrary to the public welfare and morals involving lewd acts or lewd entertainment prohibited by this title.

(2) For purposes of Subsection (1), in the case of a retail licensee that is a partnership, corporation, or limited liability company, a conviction under Subsection (1)(c) includes a conviction of any of the following for an offense described in Subsection (1)(c):

(a) a partner;

(b) a managing agent;

(c) a manager;

(d) an officer;

(e) a director;

(f) a stockholder who holds at least 20% of the total issued and outstanding stock of a corporate retail licensee; or

(g) a member who owns at least 20% of a limited liability company retail licensee.

§ 32B-3-304 Rulemaking.

In accordance with this chapter, the commission may make rules that govern the filing under this chapter of:

(1) a formal objection to the renewal of a retail license; and

(2) a request for hearing filed by a retail licensee.

§ 32B-3-305 Commission to prohibit nuisance activity by licensee -- License not renewed.

(1) In accordance with Section 32B-1-104, the commission shall require a retail licensee as a condition of being licensed under this title to operate in a manner so as not to endanger the public health, peace, safety, welfare, or morals of the community.

(2)

(a) In accordance with Title 63G, Chapter 4, Administrative Procedures Act, and Sections 32B-3-306 and 32B-3-307, the commission may deny the renewal of a retail license if:

(i) a formal objection to the renewal is filed; and

(ii) the commission determines that the retail licensee has engaged in a nuisance activity to such an extent that the nuisance activity has adversely impacted the public health, peace, safety, welfare, or morals of the neighboring community of the licensed premises.

(b) In making a determination under this Subsection (2), the commission may consider:

(i) the type of nuisance activity in which a retail licensee engages;

(ii) the frequency or pattern of the nuisance activity; and

(iii) the retail licensee's notice of and failure to abate or correct the nuisance activity.

§ 32B-3-306 Formal objections to renewal.

(1) The department shall notify governmental entities that in accordance with this part an objecting governmental entity may file with the commission an objection to the renewal of a retail licensee's license in the objecting governmental entity's community.

(2) The department or an objecting governmental entity may file with the commission a formal objection to a retail license being renewed by the commission if the formal objection:

(a) is filed on the basis of a nuisance activity;

(b) is filed no later than 60 days before the expiration date of the retail licensee's license; and

(c) states with particularity all relevant facts and circumstances relating to the nuisance activity that forms the basis for the formal objection.

§ 32B-3-307 Hearing on formal objections to renewal.

(1) Upon receipt of a formal objection that meets the requirements of Section 32B-3-306, the department shall:

(a) issue a notice of agency action; and

(b) serve on the retail licensee no later than 30 days before the expiration of the retail licensee's license:

(i) the notice of agency action; and

(ii) a copy of the formal objection.

(2)

(a) A retail licensee against whom a notice of agency action is served under Subsection (1) may request a hearing.

(b) The request for hearing described in Subsection (2)(a) shall be:

(i) in writing; and

(ii) filed with the commission within 10 days of the day on which the notice of agency action is served on the retail licensee.

(c) If a retail licensee fails to file a request for hearing in accordance with this Subsection (2), the commission may not renew the license of the retail licensee.

(3)

(a) Upon receipt of a request for hearing meeting the requirements of Subsection (2), the department shall immediately schedule a hearing that shall be:

(i) held no later than 10 days before the expiration date of the retail licensee's license; and

(ii) electronically recorded by the department.

(b) The retail licensee or an objecting governmental entity, at its own expense, may have a reporter approved by the department prepare a transcript from the department's record of the hearing.

(c)

(i) The department shall present information at the hearing that supports a finding that a nuisance activity occurred.

(ii) The information described in Subsection (3)(c)(i) shall be made a part of the record of the hearing.

(d) A retail licensee shall:

(i) have the opportunity to challenge or explain whether any of the nuisance activity that forms the basis for the formal objection occurred; and

(ii) be permitted to:

(A) testify;

(B) present evidence; and

(C) comment on the issues at the hearing.

(4)

(a) A hearing held under this part shall be conducted under the authority of the commission.

(b) The commission is responsible for rendering a final order on whether a retail licensee's license shall be renewed.

(c) Notwithstanding Subsections (4)(a) and (b), the commission may appoint a necessary hearing examiner to administer the hearing process.

(d) The commission or the hearing examiner appointed by the commission shall serve as the presiding officer at a hearing held under this section.

(e) The presiding officer at a hearing held under this section:

(i) shall evaluate:

(A) the information presented at the hearing in support of the formal objection; and

(B) any explanation and evidence offered by the retail licensee; and

(ii) may consider such factors as:

(A) the length of time the retail licensee has operated the licensed premises;

(B) the condition of the licensed premises;

(C) whether the retail licensee knew or should have known of the nuisance activity in question;

(D) whether the retail licensee failed to:

(I) make a substantial effort to correct the nuisance activity; and

(II) work with law enforcement to curtail the nuisance activity;

(E) whether the nuisance activity has been ongoing or temporary;

(F) whether the retail licensee or the retail licensee's staff:

(I) initiated contact with the law enforcement agency on the nuisance activity; and

(II) cooperated with the law enforcement agency's investigation; and

(G) whether prior efforts to stop the nuisance activity by the community or the retail licensee have been unsuccessful.

(5) An order issued under this section shall:

(a) be based on the evidence presented at the hearing; and

(b) state whether:

(i) the continued operation of the licensed premises will endanger the public health, peace, safety, welfare, or morals of the community; and

(ii) the retail license should or should not be renewed.

(6)

(a) If the presiding officer is a hearing examiner appointed by the commission, the hearing officer shall issue a signed order in writing that:

(i) complies with Subsection (5);

(ii) recommends to the commission whether the retail license should or should not be renewed;

(iii) states the reasons for the hearing officer's decision; and

(iv) notifies the retail licensee and the objecting governmental entity that the hearing examiner's order will be considered by the commission at the next regularly scheduled meeting of the commission.

(b) The department shall promptly mail a copy of the hearing examiner's order to:

(i) the retail licensee; and

(ii) any objecting governmental entity.

(c) The commission at its next regularly scheduled meeting after receipt of a hearing examiner's order, shall decide whether to renew or not renew the retail license on the basis of:

(i) the record and evidence presented at the hearing; and

(ii) the hearing examiner's recommendation.

(7)

(a) As an alternative to ordering that a retail license not be renewed under this section, the commission may conditionally renew a retail license by requiring that:

(i) the retail licensee and the licensed premises be closely monitored during the licensing year by:

(A) the department;

(B) local government officials; and

(C) law enforcement; and

(ii) the matter be reviewed before the next renewal period.

(b) The commission may conditionally renew a retail license contingent on a person listed in Subsection (7)(b)(ii) divesting all interest in the retail licensed business if:

(i) the retail licensee is a partnership, corporation, or limited liability company; and

(ii) the formal objection filed under this section if filed solely on the basis of a felony conviction:

(A) of:

(I) a partner;

(II) a managing agent;

(III) a manager;

(IV) an officer;

(V) a director;

(VI) a stockholder who holds at least 20% of the total issued and outstanding stock of a corporate licensee; or

(VII) a member who owns at least 20% of a limited liability company licensee; and

(B) for illegal activity that occurred off of the licensed premises.

(8)

(a) In accordance with this section, the commission shall issue a written order setting forth the commission's decision and the reason for the commission's decision.

(b) The order described in Subsection (8)(a) is considered final on the date the order becomes effective.

(c) The department shall serve a copy of the order on the retail licensee.

(9) A retail licensee whose retail license is not renewed by order of the commission may seek judicial review under the procedures provided in Section 32B-3-207.

(10) A retail licensee whose retail license is not renewed may not reapply for a license under this title for three years from the date the retail license is not renewed.

Chapter 4 Criminal Offenses and Procedure Act

Part 1 General Provisions

§ 32B-4-101 Title.

This chapter is known as the "Criminal Offenses and Procedure Act."

§ 32B-4-102 Definitions.

As used in this chapter, "capitol hill complex" means capitol hill, as defined in Section 63O-1-101.

Part 2 Criminal Procedure

§ 32B-4-201 Applicability of criminal procedure statutes and rules.

Except as otherwise provided in this title, the procedure in a criminal case arising under this title is governed by Title 77, Criminal Procedure, and any other rules adopted by the Utah Supreme Court.

§ 32B-4-202 Duties to enforce this title.

It is the duty of the following to diligently enforce this title in their respective capacities:

(1) the governor;

(2) a commissioner;

(3) the director;

(4) an official, inspector, or department employee;

(5) a prosecuting official of the state or its political subdivisions;

(6) a county, city, or town;

(7) a peace officer, sheriff, deputy sheriff, constable, marshal, or law enforcement official;

(8) a state health official; and

(9) a clerk of the court.

§ 32B-4-203 Authority to inspect.

(1)

(a) This Subsection (1) applies to:

(i) a commissioner;

(ii) an authorized representative of the commission or department; or

(iii) a law enforcement or peace officer.

(b) An individual described in Subsection (1)(a):

(i) shall be given access, ingress, and egress to and from premises or a conveyance used in the storage, sale, furnishing, manufacture, or transportation of an alcoholic product;

(ii) may open a container containing, or supposed to contain, an article sold, or exposed for sale, held in possession, or manufactured with intent to sell in violation of this title or commission rules; and

(iii) may inspect the contents and take samples of the contents for analysis from a container described in this Subsection (1).

(2) The following shall assist, when requested by a person described in Subsection (1), in tracing, finding, or discovering the presence of an article prohibited by this title or commission rules to the extent assistance would not infringe upon the person's federal and state constitutional rights:

(a) a dealer;

(b) a clerk;

(c) a bookkeeper;

(d) an express agent;

(e) a railroad or airline official;

(f) a common or other carrier; and

(g) an employee of a person listed in this Subsection (2).

§ 32B-4-204 Arrests.

(1) Except as otherwise provided in this chapter, an arrest of a person for a violation of this title shall be made in accordance with:

(a) Title 77, Chapter 7, Arrest, by Whom, and How Made; and

(b) Rules 6 and 7, Utah Rules of Criminal Procedure.

(2) A summons in lieu of a warrant of arrest shall be in accordance with Rule 6, Utah Rules of Criminal Procedure.

§ 32B-4-205 Prosecutions.

(1)

(a) A prosecution for a violation of this title shall be in the name of the state.

(b) A criminal action for violation of a county or municipal ordinance enacted in furtherance of this title shall be in the name of the governmental entity involved.

(2)

(a) A prosecution for violation of this title shall be brought by the county attorney of the county or district attorney of the prosecution district where the violation occurs. If a county attorney or district attorney fails to initiate or diligently pursue a prosecution authorized and warranted under this title, the attorney general shall exercise supervisory authority over the county attorney or district attorney to ensure prosecution is initiated and diligently pursued.

(b) If a violation occurs within a city or town, prosecution may be brought by either the county, district, or city attorney, notwithstanding any provision of law limiting the powers of a city attorney.

(c) A city or town prosecutor has the responsibility of initiating and diligently pursuing prosecutions for a violation of a local ordinance enacted in furtherance of this title or commission rules.

(3) Notwithstanding Section 76-1-201, a prosecuting attorney shall commence a prosecution by the return of an indictment or the filing of an information in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, in the county in which the offense occurs or where the premises are located upon which an alcoholic product is seized, if the offense involves an alcoholic product.

(4)

(a) Unless otherwise provided by law, an information may not be filed charging the commission of a felony or class A misdemeanor under this title unless authorized by a prosecuting attorney.

(b) This Subsection (4) does not apply if the magistrate has reasonable cause to believe that the person to be charged may avoid apprehension or escape before approval can be obtained.

(5)

(a) In describing an offense respecting the sale, keeping for sale, or other disposal of an alcoholic product, or the possessing, keeping, purchasing, consumption, or giving of an alcoholic product in an information, indictment, summons, judgment, warrant, or proceeding under this title, it is sufficient to state the possessing, purchasing, keeping, sale, keeping for sale, giving, consumption, or disposal of the alcoholic product without stating:

(i) the name or kind of alcoholic product;

(ii) the price of the alcoholic product;

(iii) any person to whom the alcoholic product is sold or disposed of;

(iv) by whom the alcoholic product is taken or consumed; or

(v) from whom the alcoholic product is purchased or received.

(b) It is not necessary to state the quantity of alcoholic product possessed, purchased, kept, kept for sale, sold, given, consumed, or disposed of, except in the case of an offense when the quantity is essential, and then it is sufficient to allege the sale or disposal of more or less than the quantity.

(6) If an offense is committed under a local ordinance enacted to carry out this title, it is sufficient if the charging document refers to the chapter and section of the ordinance under which the offense is committed.

§ 32B-4-206 Disposition of fines and forfeitures.

Except when otherwise provided, a fine or forfeiture levied under this title shall be paid to the county treasurer of the county in which the prosecution occurred.

§ 32B-4-207 Right of appeal.

In a case arising under this title, the commission or the state has the right of appeal as to a question of law.

§ 32B-4-208 Nuisances.

(1) As used in this section, "nuisance" means:

(a) a room, house, building, structure, place, aircraft, vehicle, vessel, or other conveyance where an alcoholic product is possessed, purchased, used, kept, stored, sold, offered for sale, furnished, given, received, warehoused, manufactured, distributed, shipped, carried, transported, or adulterated in violation of this title; or

(b) an alcoholic product, container, equipment, or other property kept or used in maintaining an item or property described in Subsection (1)(a).

(2) A person who maintains or assists in maintaining a nuisance is guilty of a class B misdemeanor.

(3) If a person has knowledge that, or has reason to believe that the person's room, house, building, structure, place, aircraft, vehicle, vessel, or other conveyance is occupied or used as a nuisance, or allows it to be occupied or used as a nuisance, the nuisance property is subject to a lien for and may be sold to pay the fines and costs assessed against the person guilty of the common nuisance. This lien may be enforced by action in a court having jurisdiction.

(4)

(a) The department shall bring an action to abate a nuisance in the name of the department in a court having jurisdiction.

(b) An action brought under this Subsection (4) is an action in equity.

(c) The department may not be required to post a bond to initiate an action under this Subsection (4).

(d) A court may issue:

(i) if it appears that a nuisance exists, a temporary writ of injunction restraining the defendant from conducting or permitting the continuance of the nuisance until the conclusion of the trial; and

(ii) an order restraining the defendant and any other person from removing or interfering with an alcoholic product, container, equipment, or other property kept or used in violation of this title or commission rules.

(e) In an action to abate or enjoin a nuisance, the court need not find that the property involved is being unlawfully used at the time of the hearing.

(f) On finding that a material allegation of a petition or complaint is true, the court shall order that an alcoholic product may not be possessed, purchased, used, kept, stored, sold, offered for sale, furnished, given, received, warehoused, manufactured, distributed, shipped, carried, transported, or adulterated, in any portion of the room, house, building, structure, place, aircraft, vehicle, vessel, or other conveyance.

(g) Upon judgment of a court ordering abatement of the nuisance, the court may order that the premises or conveyance in question may not be occupied or used for any purpose for one year, except under Subsection (4)(h).

(h) A court may permit premises or conveyance described in Subsection (4)(g) to be occupied or used:

(i) if its owner, lessee, tenant, or occupant gives bond in an appropriate amount with sufficient surety, approved by the court, payable to the state;

(ii) on the condition that an alcoholic product will not be present in or on the premises or the conveyance; and

(iii) on the condition that payment of the fines, costs, and damages assessed for violation of this title or commission rules will be made.

(5) If a tenant of the premises uses the premises or any part of the premises in maintaining a nuisance, or knowingly permits use by another, the lease is void and the right to possession reverts to the owner or lessor who is entitled to the remedy provided by law for forcible detention of the premises.

(6) A person is guilty of assisting in maintaining a nuisance as provided in Section 76-9-1305, if that person:

(a) knowingly permits a building or premises owned or leased by the person, or under the person's control, or any part of a building or premises, to be used in maintaining a nuisance; or

(b) after being notified in writing by a prosecutor or other citizen of the unlawful use, fails to take all proper measures to:

(i) abate the nuisance; or

(ii) remove the one or more persons from the premises.

§ 32B-4-209 Lawful detention.

(1)

(a) To inform a peace officer of a suspected violation and subject to the requirements of Subsection (1)(c), a person described in Subsection (1)(b) may:

(i) detain a person; and

(ii) hold any form of identification presented by the person.

(b) The following may take an action described in Subsection (1)(a):

(i) a state store employee;

(ii) a package agent;

(iii) a licensee or permittee;

(iv) a beer retailer; or

(v) staff of a person described in Subsections (1)(b)(ii) through (iv).

(c) A person described in Subsection (1)(b) may take an action described in Subsection (1)(a) only:

(i) if that person has reason to believe that the person against whom the action is taken is:

(A) in a facility where liquor or beer is sold; and

(B) in violation of Section 32B-4-409, 32B-4-412, or 32B-4-413;

(ii) in a reasonable manner; and

(iii) for a reasonable length of time.

(2) Unless the detention is unreasonable under all circumstances, the detention or failure to detain does not create criminal or civil liability for:

(a) false arrest;

(b) false imprisonment;

(c) slander; or

(d) unlawful detention.

Part 3 Criminal Offenses in General

§ 32B-4-301 Applicability of Title 76, Criminal Offenses.

Except as otherwise provided, Title 76, Chapter 1, General Provisions, Chapter 2, Principles of Criminal Responsibility, Chapter 3, Punishments, and Chapter 4, Inchoate Offenses, apply to the prosecution of a criminal offense defined in this chapter or expressly identified as a criminal offense in this title.

§ 32B-4-302 Criminal responsibility for conduct of another.

In addition to Title 76, Chapter 2, Part 2, Criminal Responsibility for Conduct of Another, the following principles apply to a violation of this title:

(1)

(a) If a violation of this title is committed by a person in the employ of the occupant of premises in which the offense is committed, or by a person who is required by the occupant to be or remain in or upon the premises, or to act in any way for the occupant, notwithstanding the fact that the offense is committed by a person who is not proved to have committed it under or by the direction of the occupant, the occupant is:

(i) prima facie considered a party to the offense committed; and

(ii) liable as a principal offender.

(b) This section does not relieve the person actually committing the offense from liability.

(2)

(a) If a violation of this title is committed by a corporation, association, partnership, or limited liability company, an officer or agent of the corporation or association, a partner of the partnership, or a manager or member of the limited liability company in charge of the premises in which the offense is committed is:

(i) prima facie considered a party to the offense committed; and

(ii) personally liable to the penalties prescribed for the offense as a principal offender.

(b) This section does not relieve the corporation, association, partnership, or limited liability company, or the person who actually committed the offense from liability.

§ 32B-4-303 Special burdens of proof -- Inferences and presumptions.

(1) In a prosecution of an offense defined in this title or in a proceeding brought to enforce this title:

(a) it is not necessary that the state or commission establish:

(i) the precise description or quantity of an alcoholic product; or

(ii) the precise consideration, if any, given or received for an alcoholic product;

(b) there is an inference, absent proof to the contrary, that an alcoholic product in question is an alcoholic product if the witness describes it:

(i) as an alcoholic product;

(ii) by a name that is commonly applied to an alcoholic product; or

(iii) as intoxicating;

(c) if it is alleged that an entity for which a record is required to be filed with the Division of Corporations and Commercial Code to be organized or conduct business in this state has violated this title, the fact of the entity is presumed absent proof to the contrary;

(d) a record signed or purporting to be signed by a state chemist, assistant state chemist, or state crime laboratory chemist, as to the analysis or ingredients of an alcoholic product is:

(i) prima facie evidence:

(A) of the facts stated in that record; and

(B) of the authority of the person giving or making the record; and

(ii) admissible in evidence without proof of appointment or signature absent proof to the contrary; and

(e) a copy of an entry made in a record of the United States internal revenue collector, certified by the collector or a qualified notary public, showing the payment of the United States internal revenue special tax for the manufacture or sale of an alcoholic product is prima facie evidence of the manufacture or sale by the party named in the entry within the period set forth in the record.

(2)

(a) In proving the unlawful purchase, sale, gift, or disposal, gratuitous or otherwise, or consumption of an alcoholic product, it is not necessary that the state or commission establish that money or other consideration actually passed or that an alcoholic product is actually consumed if the court or trier of fact is satisfied that:

(i) a transaction in the nature of a purchase, sale, gift, or disposal actually occurs; or

(ii) consumption of an alcoholic product is about to occur.

(b) Proof of consumption or intended consumption of an alcoholic product on premises on which consumption is prohibited, by some person not authorized to consume an alcoholic product on those premises, is evidence that an alcoholic product is sold, given to, or purchased by the person consuming, about to consume, or carrying away the alcoholic product as against the occupant of the premises.

(3) For purposes of a provision applicable under this chapter to a retail licensee or staff of a retail licensee, the provision is applicable to a resort licensee or hotel licensee or a person operating under a sublicense of the resort licensee or hotel licensee.

(4) Notwithstanding the other provisions of this chapter, a criminal offense identified in this title as a criminal offense may not be enforced under this chapter if the criminal offense relates to a violation:

(a) of a provision in this title related to intoxication or becoming intoxicated; and

(b) if the violation is first investigated by a law enforcement officer, as defined in Section 53-13-103, who has not received training regarding the requirements of this title related to responsible alcoholic product sale or furnishing.

§ 32B-4-304 Violation of title a misdemeanor.

(1) Unless otherwise provided in this title, a person is guilty of a class B misdemeanor if that person violates:

(a) this chapter; or

(b) a provision of this title that is expressly identified as a criminal offense.

(2) This section is not applicable to an adjudicative proceeding under Chapter 3, Disciplinary Actions and Enforcement Act, but only:

(a) makes a violation described in Subsection (1) a criminal offense; and

(b) establishes a penalty for a violation described in Subsection (1) that is prosecuted criminally.

§ 32B-4-305 Additional criminal penalties.

(1)

(a) As used in this section, "business entity" means a corporation, partnership, association, limited liability company, or similar entity.

(b) In addition to the penalties provided in Title 76, Chapter 3, Punishments, this section applies.

(2) Upon a defendant's conviction of an offense defined in this title, the court may order the defendant to pay restitution or costs in accordance with Subsection 76-3-201(4).

(3)

(a) Upon a business entity's conviction of an offense defined in this title, and a failure of the business entity to pay a fine imposed upon it:

(i) if the business entity is a domestic business entity, the powers, rights, and privileges of the business entity may be suspended or revoked; and

(ii) if the business entity is a foreign business entity, it forfeits its right to do intrastate business in this state.

(b) The department shall transmit the name of a business entity described in Subsection (3)(a) to the Division of Corporations and Commercial Code. Upon receipt of the information, the Division of Corporations and Commercial Code shall immediately record the action in a manner that makes the information available to the public.

(c) A suspension, revocation, or forfeiture under this Subsection (3) is effective from the day on which the Division of Corporations and Commercial Code records the information.

(d) A certificate of the Division of Corporations and Commercial Code is prima facie evidence of a suspension, revocation, or forfeiture.

(e) This section may not be construed as affecting, limiting, or restricting a proceeding that otherwise may be taken for the imposition of any other punishment or the modes of enforcement or recovery of fines or penalties.

(4)

(a) Upon the conviction of a business entity required to have a business license to operate the business entity's activities, or upon the conviction of any of the business entity's staff of any offense defined in this title, with the knowledge, consent, or acquiescence of the business entity, the department shall forward a copy of the judgment of conviction to the appropriate governmental entity responsible for issuing and revoking the business license.

(b) A governmental entity that receives a copy of a judgment under this Subsection (4) may institute appropriate proceedings to revoke the business license.

(c) Upon revocation under this Subsection (4), a governmental entity may not issue a business license to the business entity for at least one year from the date of revocation.

(d) Upon the conviction for a second or other offense, the governmental entity may not issue a business license for at least two years from the date of revocation.

(5)

(a) Upon conviction of one of the following of an offense defined in this title, the department shall forward a certified copy of the judgment of conviction to the Division of Professional Licensing:

(i) a health care practitioner; or

(ii) an individual licensed as a veterinarian under Title 58, Chapter 28, Veterinary Practice Act.

(b) The Division of Professional Licensing may bring a proceeding in accordance with Title 58, Occupations and Professions, to revoke the license issued under Title 58, Occupations and Professions, of an individual described in Subsection (5)(a).

(c) Upon revocation of a license under Subsection (5)(b):

(i) the Division of Professional Licensing may not issue a license to the individual under Title 58, Occupations and Professions, for at least one year from the date of revocation; and

(ii) if the individual is convicted of a second or subsequent offense, the Division of Professional Licensing may not issue a license to the individual under Title 58, Occupations and Professions, for at least two years from the date of revocation.

Part 4 Sale, Purchase, Possession, and Consumption

§ 32B-4-401 Unlawful sale or furnishing.

(1) It is unlawful for a retail licensee, a permittee, or staff of a retail licensee or permittee to keep for sale, or to directly or indirectly, sell, offer for sale, or furnish to another, an alcoholic product, except as otherwise provided by this title.

(2) It is unlawful for a person in the business of selling liquor, a manufacturer, a supplier, an importer of liquor, or staff of the person, manufacturer, supplier, or importer to sell, ship, transport, or cause to be sold, shipped, or transported liquor from an out-of-state location directly or indirectly into this state except to the extent authorized by this title to:

(a) the department;

(b) a military installation;

(c) a holder of a special use permit, to the extent authorized in the special use permit; or

(d) a liquor warehouser licensee licensed to distribute and transport liquor to:

(i) the department; or

(ii) an out-of-state wholesaler or retailer.

(3)

(a) It is unlawful for a person in the business of selling beer, a manufacturer, a supplier, an importer of beer, or staff of the person, manufacturer, or importer to sell, ship, transport, or cause to be sold, shipped, or transported beer from an out-of-state location directly or indirectly into this state except to the extent authorized by this title to:

(i) a beer wholesaler licensee;

(ii) a military installation; or

(iii) a holder of a special use permit, to the extent authorized in the special use permit.

(b) Subsection (3)(a) does not preclude a small brewer that holds a certificate of approval from selling, shipping, or transporting beer to the extent authorized by Subsection 32B-11-503(5) directly to:

(i) a beer retailer; or

(ii) an event permittee.

(4)

(a) It is unlawful for a manufacturer, supplier, or importer of liquor in this state, or staff of the manufacturer, supplier, or importer to sell, ship, transport, or cause to be sold, shipped, or transported liquor directly or indirectly to a person in this state except to the extent authorized by this title to:

(i) the department;

(ii) a military installation;

(iii) a holder of a special use permit, to the extent authorized in the special use permit; or

(iv) a liquor warehouser licensee who is licensed to distribute and transport liquor to:

(A) the department; or

(B) an out-of-state wholesaler or retailer.

(b) Subsection (4)(a) does not preclude a winery manufacturing licensee located in this state from selling wine to a person on its winery premises:

(i) to the extent authorized by Subsection 32B-11-303(4); or

(ii) under a package agency issued by the commission on the winery premises.

(c) Subsection (4)(a) does not preclude a distillery manufacturing licensee located in this state from selling liquor on its distillery premises:

(i) to the extent authorized in Subsection 32B-11-403(5); or

(ii) under a package agency issued by the commission on the distillery premises.

(d) Subsection (4)(a) does not preclude a brewery manufacturing licensee located in this state from selling heavy beer or flavored malt beverages on its brewery premises:

(i) to the extent authorized under Subsection 32B-11-503(4); or

(ii) under a package agency issued by the commission on its brewery premises.

(5)

(a) It is unlawful for a manufacturer, supplier, or importer of beer in this state, or staff of the manufacturer, supplier, or importer to sell, ship, transport, or cause to be sold, shipped, or transported beer directly or indirectly to a person in this state except to the extent authorized by this title to:

(i) a beer wholesaler licensee;

(ii) a military installation; or

(iii) a holder of a special use permit, to the extent authorized in the special use permit.

(b) Subsection (5)(a) does not preclude:

(i) a small brewer who is a brewery manufacturing licensee located in this state from selling, shipping, and transporting beer to the extent authorized by Subsection 32B-11-503(5) directly to one of the following in this state:

(A) a beer retailer; or

(B) an event permittee; or

(ii) a brewery manufacturing licensee from selling beer to a person on its manufacturing premises under Subsection 32B-11-503(4)(c).

(6) It is unlawful for a person other than a person described in Subsection (2) or (3) to sell, ship, transport, or cause to be sold, shipped, or transported an alcoholic product from an out-of-state location directly or indirectly into this state, except as otherwise provided by this title.

(7) It is unlawful for a person in this state other than a person described in Subsection (4) or (5) to sell, ship, transport, or cause to be sold, shipped, or transported an alcoholic product directly or indirectly to another person in this state, except as otherwise provided by this title.

(8)

(a) A violation of Subsection (1) is a class B misdemeanor, except when otherwise provided by this title.

(b) A violation of Subsection (2), (3), (4), or (5) is a third degree felony.

(c) A violation of Subsection (6) or (7) is a class B misdemeanor.

§ 32B-4-402 Unauthorized sale, offer for sale, or furnishing.

A person authorized by this title to sell an alcoholic product and staff of that person may not sell, offer for sale, or furnish, an alcoholic product in any place, or at any day or time other than as authorized by this title or the rules of the commission.

§ 32B-4-403 Unlawful sale, offer for sale, or furnishing to minor.

(1) A person may not sell, offer for sale, or furnish an alcoholic product to a minor.

(2)

(a)

(i) Except as provided in Subsection (3), a person is guilty of a class B misdemeanor if the person who violates Subsection (1) negligently or recklessly fails to determine whether the recipient of the alcoholic product is a minor.

(ii) As used in this Subsection (2)(a), "negligently" means with simple negligence.

(b) Except as provided in Subsection (3), a person is guilty of a class A misdemeanor if the person who violates Subsection (1) knows the recipient of the alcoholic product is a minor.

(3) This section does not apply to the furnishing of an alcoholic product to a minor in accordance with this title:

(a) for medicinal purposes by:

(i) the parent or guardian of the minor; or

(ii) the health care practitioner of the minor, if the health care practitioner is authorized by law to write a prescription; or

(b) as part of a religious organization's religious services.

§ 32B-4-404 Unlawful sale, offer for sale, or furnishing to intoxicated person.

(1) A person may not sell, offer for sale, or furnish an alcoholic product directly to:

(a) a person who is actually or apparently intoxicated; or

(b) a person whom the person furnishing the alcoholic product knows or should know from the circumstances is actually or apparently intoxicated.

(2)

(a) A person who negligently or recklessly violates Subsection (1) is guilty of a class B misdemeanor.

(b) A person who knowingly violates Subsection (1) is guilty of a class A misdemeanor.

(3) As used in Subsection (2)(a), "negligently" means with simple negligence.

§ 32B-4-405 Unlawful sale, offer for sale, or furnishing to interdicted person.

(1) A person may not sell, offer for sale, or furnish an alcoholic product to a known interdicted person.

(2) This section does not apply to the sale, offer for sale, or furnishing of an alcoholic product to an interdicted person:

(a) under an order of a health care practitioner who is authorized by law to write a prescription; or

(b) administered by a hospital or health care practitioner authorized by law to administer the alcoholic product for medicinal purposes.

§ 32B-4-406 Unlawful sale, offer for sale, or furnishing of an alcoholic product.

(1) Except as provided in Subsection (2):

(a) a person may not sell, offer for sale, or furnish beer to the general public in a container that exceeds two liters; and

(b) a person may not purchase or possess beer in a container that exceeds two liters.

(2)

(a) A retail licensee may sell, offer for sale, or furnish beer on draft subject to the requirements of Section 32B-5-304.

(b) A retail licensee may purchase or possess beer in a container that exceeds two liters to be dispensed on draft for consumption subject to the requirements of Section 32B-5-304.

(c) A beer wholesaler licensee may sell, offer for sale, or furnish beer in a container that exceeds two liters to a retail licensee described in Subsection (2)(a).

(3) On or after October 1, 2011:

(a) A person may not sell, offer for sale, or furnish heavy beer in a container that exceeds two liters.

(b) A person may not purchase or possess heavy beer in a container that exceeds two liters.

§ 32B-4-407 Unlawful sale, offer for sale, or furnishing during emergency.

During a period of emergency proclaimed by the governor to exist in an area of the state, it is unlawful for a person to sell, offer for sale, or furnish an alcoholic product in that area if the director publicly announces and directs that in that area a person may not sell, offer for sale, or furnish an alcoholic product in that area during the period of emergency.

§ 32B-4-408 Unlawful purchase or acceptance.

(1) It is unlawful for a person or the person's staff to purchase, take, or accept an alcoholic product from another person, except as provided by this title or the rules of the commission adopted under this title.

(2) An act is unlawful under Subsection (1) if it is taken:

(a) directly or indirectly; or

(b) upon a pretense or device.

§ 32B-4-409 Unlawful purchase, possession, consumption by minor -- Measurable amounts in body.

(1) Unless specifically authorized by this title, it is unlawful for a minor to:

(a) purchase an alcoholic product;

(b) attempt to purchase an alcoholic product;

(c) solicit another person to purchase an alcoholic product;

(d) possess an alcoholic product;

(e) consume an alcoholic product; or

(f) have measurable blood, breath, or urine alcohol concentration in the minor's body.

(2) It is unlawful for the purpose of purchasing or otherwise obtaining an alcoholic product for a minor for:

(a) a minor to misrepresent the minor's age; or

(b) any other person to misrepresent the age of a minor.

(3) It is unlawful for a minor to possess or consume an alcoholic product while riding in a limousine or chartered bus.

(4)

(a) If a minor is found by a court to have violated this section and the violation is the minor's first violation of this section, the court may:

(i) order the minor to complete a screening as defined in Section 41-6a-501;

(ii) order the minor to complete an assessment as defined in Section 41-6a-501 if the screening indicates an assessment to be appropriate; and

(iii) order the minor to complete an educational series as defined in Section 41-6a-501 or substance use disorder treatment as indicated by an assessment.

(b) If a minor is found by a court to have violated this section and the violation is the minor's second or subsequent violation of this section, the court shall:

(i) order the minor to complete a screening as defined in Section 41-6a-501;

(ii) order the minor to complete an assessment as defined in Section 41-6a-501 if the screening indicates an assessment to be appropriate; and

(iii) order the minor to complete an educational series as defined in Section 41-6a-501 or substance use disorder treatment as indicated by an assessment.

(5)

(a) When a minor who is at least 18 years old, but younger than 21 years old, is found by a court to have violated this section, except as provided in Section 32B-4-411, the court hearing the case shall suspend the minor's driving privileges under Section 53-3-219.

(b) Notwithstanding the provision in Subsection (5)(a), the court may reduce the suspension period required under Section 53-3-219 if:

(i) the violation is the minor's first violation of this section; and

(ii)

(A) the minor completes an educational series as defined in Section 41-6a-501; or

(B) the minor demonstrates substantial progress in substance use disorder treatment.

(c) Notwithstanding the requirement in Subsection (5)(a) and in accordance with the requirements of Section 53-3-219, the court may reduce the suspension period required under Section 53-3-219 if:

(i) the violation is the minor's second or subsequent violation of this section;

(ii) the minor has completed an educational series as defined in Section 41-6a-501 or demonstrated substantial progress in substance use disorder treatment; and

(iii)

(A) the person is 18 years old or older and provides a sworn statement to the court that the person has not unlawfully consumed alcohol or drugs for at least a one-year consecutive period during the suspension period imposed under Subsection (5)(a); or

(B) the person is under 18 years old and has the person's parent or legal guardian provide an affidavit or sworn statement to the court certifying that to the parent or legal guardian's knowledge the person has not unlawfully consumed alcohol or drugs for at least a one-year consecutive period during the suspension period imposed under Subsection (5)(a).

(6) When a minor who is younger than 18 years old is found by the court to have violated this section, Section 80-6-707 applies to the violation.

(7) Notwithstanding Subsections (5)(a) and (b), if a minor is adjudicated under Section 80-6-701, the court may only order substance use disorder treatment or an educational series if the minor has an assessed need for the intervention on the basis of the results of a validated assessment.

(8) When a court issues an order suspending a person's driving privileges for a violation of this section, the Driver License Division shall suspend the person's license under Section 53-3-219.

(9) When the Department of Public Safety receives the arrest or conviction record of a person for a driving offense committed while the person's license is suspended pursuant to this section, the Department of Public Safety shall extend the suspension for an additional like period of time.

(10) This section does not apply to a minor's consumption of an alcoholic product in accordance with this title:

(a) for medicinal purposes if:

(i) the minor is at least 18 years old; or

(ii) the alcoholic product is furnished by:

(A) the parent or guardian of the minor; or

(B) the minor's health care practitioner, if the health care practitioner is authorized by law to write a prescription; or

(b) as part of a religious organization's religious services.

§ 32B-4-410 Unlawful admittance or attempt to gain admittance by minor.

(1) It is unlawful for a minor to gain admittance or attempt to gain admittance to the premises of:

(a) a tavern; or

(b) a bar licensee, except to the extent authorized by Section 32B-6-406.1.

(2) A minor who violates this section is guilty of a class C misdemeanor.

(3)

(a) If a minor is found by a court to have violated this section and the violation is the minor's first violation of this section, the court may:

(i) order the minor to complete a screening as defined in Section 41-6a-501;

(ii) order the minor to complete an assessment as defined in Section 41-6a-501 if the screening indicates an assessment to be appropriate; and

(iii) order the minor to complete an educational series as defined in Section 41-6a-501 or substance use disorder treatment as indicated by an assessment.

(b) If a minor is found by a court to have violated this section and the violation is the minor's second or subsequent violation of this section, the court shall:

(i) order the minor to complete a screening as defined in Section 41-6a-501;

(ii) order the minor to complete an assessment as defined in Section 41-6a-501 if the screening indicates an assessment to be appropriate; and

(iii) order the minor to complete an educational series as defined in Section 41-6a-501 or substance use disorder treatment as indicated by an assessment.

(4)

(a) When a minor who is at least 18 years old, but younger than 21 years old, is found by a court to have violated this section, except as provided in Section 32B-4-411, the court hearing the case shall suspend the minor's driving privileges under Section 53-3-219.

(b) Notwithstanding Subsection (4)(a), the court may reduce the suspension period required under Section 53-3-219 if:

(i) the violation is the minor's first violation of this section; and

(ii)

(A) the minor completes an educational series as defined in Section 41-6a-501; or

(B) the minor demonstrates substantial progress in substance use disorder treatment.

(c) Notwithstanding Subsection (4)(a) and in accordance with Section 53-3-219, the court may reduce the suspension period required under Section 53-3-219 if:

(i) the violation is the minor's second or subsequent violation of this section;

(ii) the minor has completed an educational series as defined in Section 41-6a-501 or demonstrated substantial progress in substance use disorder treatment; and

(iii)

(A) the person is 18 years old or older and provides a sworn statement to the court that the person has not unlawfully consumed alcohol or drugs for at least a one-year consecutive period during the suspension period imposed under Subsection (4)(a); or

(B) the person is under 18 years old and has the person's parent or legal guardian provide an affidavit or sworn statement to the court certifying that to the parent or legal guardian's knowledge the person has not unlawfully consumed alcohol or drugs for at least a one-year consecutive period during the suspension period imposed under Subsection (4)(a).

(5) When a minor who is younger than 18 years old is found by a court to have violated this section, Section 80-6-707 applies to the violation.

(6) Notwithstanding Subsections (3)(a) and (b), if a minor is adjudicated under Section 80-6-701, the court may only order substance use disorder treatment or an educational series if the minor has an assessed need for the intervention on the basis of the results of a validated assessment.

(7) When a court issues an order suspending a person's driving privileges for a violation of this section, the Driver License Division shall suspend the person's license under Section 53-3-219.

(8) When the Department of Public Safety receives the arrest or conviction record of a person for a driving offense committed while the person's license is suspended pursuant to this section, the Department of Public Safety shall extend the suspension for an additional like period of time.

§ 32B-4-411 Minor's unlawful use of proof of age.

(1) As used in this section, "proof of age violation" means a violation by a minor of:

(a) Chapter 1, Part 4, Proof of Age Act; or

(b) if as part of the violation the minor uses a proof of age in violation of Chapter 1, Part 4, Proof of Age Act:

(i) Section 32B-4-409; or

(ii) Section 32B-4-410.

(2) If a court finds a minor engaged in a proof of age violation, notwithstanding the penalties provided for in Subsection (1):

(a)

(i) for a first violation, the minor is guilty of a class B misdemeanor;

(ii) for a second violation, the minor is guilty of a class A misdemeanor; and

(iii) for a third or subsequent violation, the minor is guilty of a class A misdemeanor, except that the court may impose:

(A) a fine of up to $5,000;

(B) screening, assessment, or substance use disorder treatment, as defined in Section 41-6a-501;

(C) an educational series, as defined in Section 41-6a-501;

(D) alcoholic product related community service or compensatory service work program hours;

(E) fees for restitution and treatment costs;

(F) defensive driver education courses; or

(G) a combination of these penalties;

(b)

(i) for a minor who is younger than 18 years old:

(A) the court may forward to the Driver License Division a record of an adjudication under Section 80-6-701, for a violation under this section; and

(B) the provisions regarding suspension of a driver license under Section 80-6-707 apply; and

(ii) for a minor who is at least 18 years old, but younger than 21 years old:

(A) the court shall forward to the Driver License Division a record of conviction for a violation under this section; and

(B) the Driver License Division shall suspend the person's license under Section 53-3-220; and

(c) notwithstanding Subsection (2)(a), if a minor is adjudicated under Section 80-6-701, the court may order:

(i) substance use disorder treatment or an educational series only if the minor has an assessed need for the intervention based on the results of a validated assessment; and

(ii) a fine, fee, service hours, or costs in accordance with Section 80-6-709.

(3)

(a) Notwithstanding Subsection (2)(b), the court may reduce the suspension period under Subsection 53-3-220(1)(e) or 80-6-707(4)(a)(ii)(A) if:

(i) the violation is the minor's first violation of this section; and

(ii)

(A) the minor completes an educational series as defined in Section 41-6a-501; or

(B) the minor demonstrates substantial progress in substance use disorder treatment.

(b) Notwithstanding the requirement in Subsection (2)(b), the court may reduce the suspension period under Subsection 53-3-220(1)(e) or 80-6-707(4)(a)(ii)(B) if:

(i) the violation is the minor's second or subsequent violation of this section;

(ii) the person has completed an educational series as defined in Section 41-6a-501 or demonstrated substantial progress in substance use disorder treatment; and

(iii)

(A) the person is 18 years old or older and provides a sworn statement to the court that the person has not unlawfully consumed alcohol or drugs for at least a one-year consecutive period during the suspension period imposed under Subsection 53-3-220(1)(e) or 80-6-707(4)(b)(ii)(A); or

(B) the minor is under 18 years old and has the minor's parent or legal guardian provide an affidavit or sworn statement to the court certifying that to the parent or legal guardian's knowledge the minor has not unlawfully consumed alcohol or drugs for at least a one-year consecutive period during the suspension period imposed under Subsection 53-3-220(1)(e) or 80-6-707(4)(b)(ii)(B).

(4) When the Department of Public Safety receives the arrest or conviction record of an individual for a driving offense committed while the individual's license is suspended pursuant to this section, the Department of Public Safety shall extend the suspension for an additional like period of time.

(5) A court may not fail to enter a judgment of conviction under this section under a plea in abeyance agreement.

§ 32B-4-412 Unlawful purchase by intoxicated person.

A person may not purchase an alcoholic product if the person is intoxicated.

§ 32B-4-413 Unlawful purchase by interdicted person.

A person may not purchase or possess an alcoholic product if that person is an interdicted person, except:

(1) under an order of a health care practitioner who is authorized by law to write a prescription; or

(2) when administered by a hospital or health care practitioner authorized by law to administer the alcoholic product for medicinal purposes.

§ 32B-4-414 Unlawful possession -- Exceptions.

A person may not possess liquor within this state unless authorized by this title or the rules of the commission, except that:

(1) a person who clears United States Customs when entering this country may possess for personal consumption and not for sale or resale, a maximum of nine liters of liquor purchased from without the United States;

(2) a person who enters this state may possess for personal consumption and not for sale or resale, a maximum of nine liters of liquor purchased from without the state;

(3) a person who moves the person's residence to this state from outside of this state may possess for personal consumption and not for sale or resale, liquor previously purchased outside the state and brought into this state during the move;

(4) a person who inherits liquor as a beneficiary of an estate that is located outside the state, may possess the liquor and transport or cause the liquor to be transported into the state if the person provides sufficient documentation to the department to establish the person's legal right to the liquor as a beneficiary; or

(5) a person may transport or possess liquor if:

(a) the person transports or possesses the liquor:

(i) for personal household use and consumption; and

(ii) not for:

(A) sale;

(B) resale;

(C) gifting to another; or

(D) consumption on premises licensed by the commission;

(b) the liquor is purchased from a store or facility on a military installation; and

(c) the maximum amount the person transports or possesses under this Subsection (5) is:

(i) two liters of:

(A) spirituous liquor;

(B) wine; or

(C) a combination of spirituous liquor and wine; and

(ii)

(A) one case of heavy beer that does not exceed 288 ounces; or

(B) one case of a flavored malt beverage that does not exceed 288 ounces.

§ 32B-4-415 Unlawful bringing onto premises for consumption.

(1) Except as provided in Subsection (4) and Section 32B-5-307, a person may not bring an alcoholic product for on-premise consumption onto the premises of:

(a) a retail licensee or person required to be licensed under this title as a retail licensee;

(b) an establishment that conducts a business similar to a retail licensee;

(c) an event where an alcoholic product is sold, offered for sale, or furnished under a single event permit or temporary beer event permit issued under this title;

(d) an establishment open to the general public; or

(e) the capitol hill complex.

(2) Except as provided in Subsection (4) and Section 32B-5-307, the following may not allow a person to bring onto its premises an alcoholic product for on-premise consumption or allow consumption of an alcoholic product brought onto its premises in violation of this section:

(a) a retail licensee or a person required to be licensed under this title as a retail licensee;

(b) an establishment that conducts a business similar to a retail licensee;

(c) a single event permittee or temporary beer event permittee;

(d) an establishment open to the general public;

(e) the State Capitol Preservation Board created in Section 63O-2-201; or

(f) staff of a person listed in Subsections (2)(a) through (e).

(3) Except as provided in Subsection (4)(c)(i)(A), a person may not consume an alcoholic product in a limousine or chartered bus if the limousine or chartered bus drops off a passenger at:

(a) a location from which the passenger departs in a private vehicle; or

(b) the capitol hill complex.

(4)

(a) A person may bring bottled wine onto the premises of the following and consume the wine pursuant to Section 32B-5-307:

(i) a full-service restaurant licensee;

(ii) a limited restaurant licensee;

(iii) a bar establishment licensee; or

(iv) a person operating under a spa sublicense.

(b) A passenger of a limousine may bring onto, possess, and consume an alcoholic product in the limousine if:

(i) the travel of the limousine begins and ends at:

(A) the residence of the passenger;

(B) the hotel of the passenger, if the passenger is a registered guest of the hotel; or

(C) the temporary domicile of the passenger;

(ii) the driver of the limousine is separated from the passengers by partition or other means approved by the department; and

(iii) the limousine is not located on the capitol hill complex.

(c) A passenger of a chartered bus may bring onto, possess, and consume an alcoholic product on the chartered bus:

(i)

(A) but may consume only during travel to a specified destination of the chartered bus and not during travel back to the place where the travel begins; or

(B) if the travel of the chartered bus begins and ends at:

(I) the residence of the passenger;

(II) the hotel of the passenger, if the passenger is a registered guest of the hotel; or

(III) the temporary domicile of the passenger;

(ii) if the chartered bus has a nondrinking designee other than the driver traveling on the chartered bus to monitor consumption; and

(iii) if the chartered bus is not located on the capitol hill complex.

(5) A person may bring onto any premises, possess, and consume an alcoholic product at a private event.

(6) Notwithstanding Subsection (5), private and public facilities may prohibit the possession or consumption of alcohol on their premises.

(7) The restrictions of Subsections (2) and (3) apply to a resort licensee or hotel licensee or person operating under a sublicense in relationship to:

(a) the boundary of a resort building, as defined in Section 32B-8-102, or the boundary of a hotel, as defined in Section 32B-8b-102, in an area that is open to the public; or

(b) except as provided in Subsection (4), sublicensed premises.

§ 32B-4-416 Unlawful permitting of consumption by minor.

(1) A person may not permit a minor to consume an alcoholic product in a chartered bus or limousine of which the person is the owner or operator.

(2) A violation of Subsection (1) is an infraction.

§ 32B-4-417 Unlawful possession by licensee or permittee.

Except as authorized by Section 32B-4-415, other provisions of this title, or the rules of the commission, a licensee or permittee may not possess, store, or allow consumption of liquor on its premises if the liquor is not purchased from:

(1) the department;

(2) a state store; or

(3) a package agency.

§ 32B-4-418 Unlawful storage.

It is unlawful for a person to store:

(1) liquor on premises for which the person is authorized to sell beer for on-premise consumption, but for which the person is not licensed under this title to sell liquor; or

(2) an alcoholic beverage for sale on premises for which the person is not licensed or otherwise authorized under this title to sell the alcoholic beverage.

§ 32B-4-419 Unlawful permitting of intoxication.

(1) A person may not permit another person to become intoxicated or an intoxicated person to consume an alcoholic product in:

(a) premises of which the person is the owner, tenant, or occupant; or

(b) a chartered bus or limousine of which the person is the owner or operator.

(2) A violation of Subsection (1) is a class C misdemeanor.

§ 32B-4-420 Unlawful adulteration.

(1) For purposes of this section, "tamper" means to do one or more of the following to the contents of a container:

(a) fortify;

(b) adulterate;

(c) contaminate;

(d) dilute;

(e) change its character or purity; or

(f) otherwise change.

(2) A person may not, for any purpose, mix or allow to be mixed with an alcoholic product sold or supplied by the person as a beverage any of the following:

(a) a drug;

(b) methylic alcohol;

(c) a crude, unrectified, or impure form of ethylic alcohol; or

(d) another deleterious substance.

(3)

(a) The following may not engage in an act listed in Subsection (3)(b):

(i) a package agent;

(ii) a retail licensee;

(iii) a permittee;

(iv) a beer wholesaler licensee;

(v) a liquor warehouser licensee;

(vi) a supplier; or

(vii) an importer.

(b) A person listed in Subsection (3)(a) may not:

(i) tamper with the contents of a container of alcoholic product as originally marketed by a manufacturer;

(ii) refill or partly refill with any substance the contents of an original container of alcoholic product as originally marketed by a manufacturer;

(iii) misrepresent the brand of an alcoholic product sold or offered for sale; or

(iv) sell or furnish a brand of alcoholic product that is not the same as that ordered by a purchaser without first advising the purchaser of the difference.

§ 32B-4-421 Unlawful consumption in public place.

(1) A person may not consume liquor in a public building, park, or stadium, except as provided by this title.

(2) A violation of this section is a class C misdemeanor.

§ 32B-4-422 Unlawful dispensing.

(1) A retail licensee licensed under this title to sell, offer for sale, or furnish spirituous liquor for consumption on the licensed premises, or staff of the retail licensee may not:

(a) sell, offer for sale, or furnish a primary spirituous liquor to a person on the licensed premises except in a quantity that does not exceed 1.5 ounces per beverage dispensed through a calibrated metered dispensing system approved by the department;

(b) sell, offer for sale, or furnish more than a total of 2.5 ounces of spirituous liquor per beverage;

(c) allow a person on the licensed premises to have more than a total of 2.5 ounces of spirituous liquor at a time; or

(d)

(i) except as provided in Subsection (1)(d)(ii), allow a person to have more than two spirituous liquor beverages at a time; or

(ii) allow a person on the premises of the following to have more than one spirituous liquor beverage at a time:

(A) a full-service restaurant licensee;

(B) a person operating under a full-service restaurant sublicense;

(C) an on-premise banquet licensee;

(D) a person operating under an on-premise banquet sublicense;

(E) a single event permittee; or

(F) a hospitality amenity licensee.

(2) A violation of this section is a class C misdemeanor.

§ 32B-4-423 Immunity regarding alcohol consumption offenses when seeking emergency aid for another person.

(1) A law enforcement officer may not cite or arrest a person solely because of a person's violation of a provision under Subsection (2) if the officer came into contact with the person because:

(a) the person had requested or acted in concert with another person to request emergency medical assistance for a third party who reasonably appeared to be in need of medical care due to the consumption of alcohol;

(b) the officer was responding to the request for emergency medical assistance;

(c) the person provided to the officer the person's name and identifying information as requested by the officer;

(d) the person remained at the location where the third party was located until emergency medical response personnel arrived at the location; and

(e) the person cooperated with the emergency medical assistance personnel and law enforcement officers at the location.

(2) Offenses referred to in Subsection (1) are violations of:

(a) Section 32B-4-403 regarding the unlawful sale, offer for sale, or furnishing of alcohol to a minor;

(b) Subsection 32B-4-409(1) regarding the unlawful purchase, possession, or consumption of alcohol by a minor; and

(c) Subsection 76-9-110(2) regarding intoxication when the offense involves consumption of alcohol.

(3) An officer who declines to cite or arrest a person while acting in good faith under Subsection (1) is not civilly liable.

§ 32B-4-424 Powdered or vaporized alcohol.

(1) As used in this section:

(a) "Powdered alcohol" means a product that is in a powdered or crystalline form and contains any amount of alcohol.

(b) "Vaporized alcohol" means a product created by mixing alcohol with pure oxygen or another gas to produce a vaporized product for the purpose of consumption through inhalation.

(2) It is unlawful for a person to use, offer for use, purchase, offer to purchase, sell, offer to sell, furnish, or possess for human consumption powdered alcohol or vaporized alcohol.

(3) It is unlawful for a holder of a retail license to use powdered alcohol or vaporized alcohol as an alcoholic product.

(4) This section does not apply to the use of powdered alcohol or vaporized alcohol for a commercial use specifically approved by state law or bona fide research purposes by a:

(a) health care practitioner that operates primarily for the purpose of conducting scientific research;

(b) department, commission, board, council, agency, institution, division, office, committee, authority, laboratory, library, unit, bureau, panel, or other administrative unit of the state, including an institution of higher education listed in Section 53H-1-102;

(c) private college or university research facility; or

(d) pharmaceutical or biotechnology company.

Part 5 Operations

§ 32B-4-501 Operating without a license or permit.

(1) A person may not operate the following businesses without first obtaining a license under this title if the business allows a person to purchase or consume an alcoholic product on the premises of the business:

(a) a restaurant;

(b) an airport lounge;

(c) a business operated in the same manner as a bar establishment licensee;

(d) a resort;

(e) a business operated to sell, offer for sale, or furnish beer for on-premise consumption;

(f) a business operated as an on-premise banquet licensee;

(g) a hotel;

(h) an arena; or

(i) a business similar to one listed in Subsections (1)(a) through (h).

(2) A person conducting an event that is open to the general public may not directly or indirectly sell, offer for sale, or furnish an alcoholic product to a person attending the event without first obtaining an event permit under this title.

(3) A person conducting a private event may not directly or indirectly sell or offer for sale an alcoholic product to a person attending the private event without first obtaining an event permit under this title.

(4) A person may not operate the following businesses in this state without first obtaining a license under this title:

(a) a winery manufacturer;

(b) a distillery manufacturer;

(c) a brewery manufacturer;

(d) a local industry representative of:

(i) a manufacturer of an alcoholic product;

(ii) a supplier of an alcoholic product; or

(iii) an importer of an alcoholic product;

(e) a liquor warehouser; or

(f) a beer wholesaler.

(5) A person may not operate a public conveyance in this state without first obtaining a public service permit under this title if that public conveyance allows a person to purchase or consume an alcoholic product:

(a) on the public conveyance; or

(b) on the premises of a hospitality room located within a depot, terminal, or similar facility at which a service is provided to a patron of the public conveyance.

§ 32B-4-502 Storing or possessing pursuant to federal stamp.

(1) Except as otherwise provided by this title, it is unlawful for a person who holds a stamp issued by the Bureau of Internal Revenue of the United States as a retail dealer in fermented malt liquor, or the person's operator or staff, to possess, hold, or store liquor in or on premises described in the stamp while the stamp remains in effect unless that person is:

(a) acting for the commission; or

(b) licensed under this title.

(2) This section may not be construed to prevent a person from possessing and consuming, but not storing, liquor on premises described by the fermented malt liquor stamp, if that person is not:

(a) an owner or operator of a retail dealer described in Subsection (1); or

(b) a staff member of either the owner or operator.

§ 32B-4-503 Tampering with a record.

(1) It is unlawful for a person who has custody of a record required to be filed or deposited with the commission or the department under this title to:

(a) steal, falsify, alter, willfully destroy, mutilate, deface, remove, or conceal in whole or in part that record; or

(b) knowingly permit another person to take an action described in Subsection (1)(a).

(2)

(a) Except as provided in Subsection (2)(b), a person is guilty of a class B misdemeanor.

(b) A person who violates Subsection (1) is guilty of a third degree felony if that person is a commissioner, the director, or a department employee.

§ 32B-4-504 Making false statements.

(1)

(a) A person who makes a false material statement under oath or affirmation in an official proceeding before the commission or the department is guilty of a second degree felony.

(b) As used in Subsection (1)(a), "material" statement is as defined in Section 76-8-501.

(2) A person is guilty of a class B misdemeanor if that person knowingly:

(a) makes a false statement under oath or affirmation in an official proceeding before the commission or the department;

(b) makes a false statement with a purpose to mislead a public servant in performing that public servant's official functions under this title;

(c) makes a false statement and the statement is required by this title to be sworn or affirmed before a notary or other person authorized to administer oaths;

(d) makes a false written statement on or pursuant to a record required by this title;

(e) creates a false impression in a record required by this title by omitting information necessary to prevent a statement in them from being misleading;

(f) makes a false written statement with intent to deceive a public servant in the performance of that public servant's official functions under this title; or

(g) submits or invites reliance on a record required under this title which that person knows to lack authenticity.

(3) A person is not guilty under Subsection (2) if that person retracts the falsification before it becomes apparent that the falsification is or will be exposed.

§ 32B-4-505 Obstructing a search, official proceeding, or investigation.

(1) A person who is in the premises or has charge over premises may not refuse or fail to admit to the premises or obstruct the entry of any of the following who demands entry when acting under this title:

(a) a commissioner;

(b) an authorized representative of the commission or department; or

(c) a law enforcement officer.

(2) A person who is in the premises or has charge of the premises may not interfere with any of the following who is conducting an investigation under this title at the premises:

(a) a commissioner;

(b) an authorized representative of the commission or department; or

(c) a law enforcement officer.

(3) After receiving written notice of an official proceeding or investigation under Chapter 15, Alcoholic Product Liability Act, or a criminal proceeding or investigation for a violation of Section 41-6a-502 or 41-6a-517, a person may not knowingly alter, destroy, conceal, or remove a record that is relevant to the official proceeding or investigation.

(4) A person who believes that an official proceeding or investigation is pending or about to be instituted under this title may not:

(a) alter, destroy, conceal, or remove a record with a purpose to impair the record's verity or availability in the proceeding or investigation; or

(b) make, present, or use anything that the person knows to be false with the purpose to deceive any of the following who may be engaged in the proceeding or investigation:

(i) a commissioner;

(ii) an authorized representative of the commission or department;

(iii) a law enforcement officer; or

(iv) another person.

(5)

(a) Except as provided in Subsection (5)(b), a violation of Subsection (1), (2), or (3) is a class B misdemeanor.

(b) A violation of Subsection (3) is a class A misdemeanor if the record is relevant to an official proceeding or investigation for a violation of Section 32B-4-404.

(c) A violation of Subsection (4) is a class A misdemeanor.

§ 32B-4-508 Offering or soliciting bribe, gift, or profits.

(1) If a person sold, sells, offered for sale, or offers to sell an alcoholic product to the commission or department, that person may not offer, make, tender, or in any way deliver or transfer to a commissioner, the director, a department employee, or a law enforcement officer responsible for the enforcement of this title the following:

(a) a bribe;

(b) a gift, as defined in Section 67-16-5; or

(c) a share of profits.

(2) A commissioner, the director, a department employee, or a law enforcement officer responsible for the enforcement of this title may not knowingly solicit, receive, accept, take, or seek, directly or indirectly, any of the following from a person who sold, sells, offered for sale, or offers to sell an alcoholic product:

(a) a commission;

(b) compensation, as defined in Section 67-16-3;

(c) a gift, as defined in Section 67-16-5; or

(d) a loan.

(3) A violation of this section is punishable under Section 67-16-12.

§ 32B-4-509 Forgery.

(1)

(a) A person who with a purpose to defraud the commission or the department, or who with knowledge that the person is facilitating a fraud to be perpetrated by anyone, forges a record required under this title, is guilty of forgery as provided under Section 76-6-501.

(b) A violation of Subsection (1)(a) is a second degree felony.

(2) A person who with intent to defraud the commission or the department knowingly possesses a record that is a forgery as defined in Section 76-6-501 is guilty of a third degree felony.

Part 6 Transportation and Distribution

§ 32B-4-601 Unlawful removal from conveyance or diversion of shipment.

(1) It is unlawful for a person transporting an alcoholic product, including a motor carrier, in interstate or other commerce intended for, or consigned to, or claimed to be intended for or consigned to a person outside of this state, to remove or to permit a person to remove the alcoholic product or any part of the alcoholic product from the conveyance in which it is carried while within this state.

(2) Notwithstanding Subsection (1), removal of an alcoholic product from a conveyance may be allowed if the person described in Subsection (1) notifies the department in writing at least 24 hours before the intended removal and complies with the instructions given by the department.

(3) It is unlawful for a person to receive for storage or another purpose, or to possess an alcoholic product, that is removed from a vehicle or other conveyance in violation of this section.

(4) It is unlawful for a person, including a motor vehicle, to divert to any place within this state, or to deliver to any person in this state, an alcoholic product that is consigned for shipment to any place without this state, unless the person:

(a) first notifies the department in writing at least 24 hours before the intended diversion or delivery; and

(b) complies with the instructions given by the department.

(5) Upon receiving a notice under Subsection (2) or (4), the department shall take precautions as necessary to ensure compliance with the laws of this state relating to an alcoholic product.

§ 32B-4-602 Unlawful transportation.

(1) It is unlawful for a person, including a motor carrier, or staff of the person to order or purchase an alcoholic product or to cause an alcoholic product to be shipped, carried, or transported into this state, or from one place to another within this state except as otherwise authorized by this title.

(2) This section does not prohibit a person, including a motor carrier, from:

(a) transporting an alcoholic product in the course of export from the state; or

(b) transporting an alcoholic product across any part of this state while in transit pursuant to a bona fide consignment of the alcoholic product to a person outside of this state.

§ 32B-4-603 Carriers' records.

(1)

(a) A person, including a motor carrier, transporting an alcoholic product into or within this state shall make and maintain a record in which is entered, immediately on the receipt of an alcoholic product:

(i) the name of every person to whom the alcoholic product is consigned;

(ii) the amount and kind of alcoholic product received; and

(iii) the date when the alcoholic product is delivered.

(b)

(i) Except as provided in Subsection (1)(b)(ii), a consignee shall sign the consignee's name.

(ii) If the consignee is a corporation, partnership, or limited liability company, an agent authorized in writing shall sign the record described in Subsection (1)(a).

(2) A person described in Subsection (1) shall make the record open to inspection by an authorized official of the state or local authority at any time during the person's business hours.

(3) A record under this section constitutes prima facie evidence of the facts stated in the record and is admissible as evidence in a court proceeding to enforce this title.

Part 7 Trade Practices Act

§ 32B-4-701 Title.

This part is known as the "Trade Practices Act."

§ 32B-4-702 Definitions.

As used in this part:

(1)

(a) For purposes of Section 32B-4-703, "exclusion" is as defined in 27 C.F.R. Sec. 8.51 through 8.54.

(b) For purposes of Section 32B-4-704, "exclusion" is as defined in 27 C.F.R. Sec. 6.151 through 6.153.

(2)

(a) "Industry member" means:

(i) an alcoholic product manufacturer;

(ii) a producer;

(iii) a supplier;

(iv) an importer;

(v) a wholesaler;

(vi) a bottler;

(vii) a warehouser and bottler; or

(viii) for a person described in Subsections (2)(a)(i) through (vii), any of its:

(A) affiliates;

(B) subsidiaries;

(C) officers;

(D) directors;

(E) partners;

(F) agents;

(G) employees; or

(H) representatives.

(b) "Industry member" does not include:

(i) the commission;

(ii) a commissioner;

(iii) the director;

(iv) the department; or

(v) a department employee.

(3) "Product" means an alcoholic product or item associated with an alcoholic product.

(4) "Retailer" means:

(a) the holder of a license or permit issued by the commission or by a local authority to allow the holder to engage in the sale of an alcoholic product to a patron whether for consumption on or off the premises; or

(b) an agent, officer, director, shareholder, partner, or employee of a holder described in Subsection (4)(a).

§ 32B-4-703 Exclusive outlets.

(1) It is unlawful for an industry member, directly or indirectly, or through an affiliate, to require, by agreement or otherwise, that the department or a retailer purchase a product from the industry member or the department to the exclusion in whole or in part of a product that is sold or offered for sale by another person.

(2)

(a) Subsection (1) applies only to a transaction between:

(i) one or more industry members; and

(ii)

(A) the department; or

(B) one or more retailers.

(b) Subsection (1) does not apply to a transaction between two or more industry members, including between a manufacturer and a wholesaler.

(3) Subsection (1) includes purchases coerced by an industry member through an act or threat of physical or economic harm, as well as through a voluntary industry member-retailer purchase agreement.

(4)

(a) Subsection (1) includes a contract or agreement, written or unwritten, that has the effect of requiring the department or retailer to purchase an alcoholic product from the industry member beyond a single sales transaction.

(b) Examples of a contract or agreement described in Subsection (4)(a) include:

(i) an advertising contract between an industry member and a retailer with the express or implied requirement of the purchase of the advertiser's product; or

(ii) a sales contract awarded on a competitive bid basis that has the effect of prohibiting the department or retailer from purchasing from another industry member by:

(A) requiring that the retailer purchase a product or line of products exclusively from the industry member for the period of the agreement; or

(B) requiring that the retailer purchase a specific or minimum quantity during the period of the agreement.

(5)

(a) Subsection (1) includes a contract, agreement, or other arrangement between an industry member and a third party nonretailer that requires the department or a retailer to purchase the industry member's product to the exclusion in whole or in part of a product sold or offered for sale by another person.

(b) This Subsection (5) applies whether a contract, agreement, or other arrangement originates with the industry member or the third party.

(c) Examples of a contract, agreement, or other arrangement described in this Subsection (5) include:

(i) a contract, agreement, or arrangement:

(A) with a third party, such as a ball club or municipal or private corporation, that is not a retailer;

(B) under which the third party leases the concession rights and is able to control the purchasing decisions of a retailer; and

(C) that requires the retailer to purchase the industry member's product to the exclusion in whole or in part of a product sold or offered for sale by another person; or

(ii) a contract, agreement, or arrangement with a third party nonretailer that requires a retailer to purchase the industry member's product to the exclusion in whole or in part of a product sold or offered for sale by another person in return for which the third party provides a service or other thing of value such as:

(A) sponsoring radio or television broadcasting;

(B) paying for advertising; or

(C) providing other services or things of value.

§ 32B-4-704 Tied house -- Prohibitions.

(1)

(a) It is unlawful for an industry member, directly or indirectly, or through an affiliate, to induce a retailer to purchase an alcoholic product from the industry member or from the department to the exclusion in whole or in part of a product sold or offered for sale by another person by acquiring or holding an interest in a license with respect to the premises of a retailer, except when the license is held by a retailer that is completely owned by the industry member.

(b) Interest in a retail license includes an interest acquired by a corporate official, partner, employee, or other representative of the industry member.

(c) An interest in a retail license acquired by a separate corporation in which the industry member or the industry member's officials hold ownership or are otherwise affiliated is an interest in a retail license.

(d) Less than complete ownership of a retail business by an industry member constitutes an interest in a retail license within the meaning of Subsection (1)(a).

(2)

(a) It is unlawful for an industry member, directly or indirectly, or through an affiliate, to induce a retailer to purchase an alcoholic product from the industry member or from the department to the exclusion in whole or in part of a product sold or offered for sale by another person by acquiring an interest in real or personal property owned, occupied, or used by the retailer in the conduct of the retailer's business.

(b) For purposes of Subsection (2)(a):

(i) "interest" does not include complete ownership of a retail business by an industry member;

(ii) interest in retail property includes an interest acquired by a corporate official, partner, employee, or other representative of the industry member;

(iii) any interest in a retail license acquired by a separate corporation in which the industry member or its officials hold ownership or are otherwise affiliated is an interest in the retailer's property;

(iv) less than complete ownership of a retail business by an industry member constitutes an interest in retail property;

(v) the acquisition of a mortgage on a retailer's real or personal property by an industry member constitutes an interest in the retailer's property; and

(vi) the renting of display space by an industry member at a retail establishment constitutes an interest in the retailer's property.

(3)

(a) Subject to Section 32B-4-705, it is unlawful for an industry member, directly or indirectly, or through an affiliate, to induce a retailer to purchase an alcoholic product from the industry member or from the department to the exclusion in whole or in part of a product sold or offered for sale by another person by furnishing, giving, renting, lending, or selling to the retailer equipment, a fixture, a sign, supplies, money, a service, or other thing of value.

(b)

(i) For purposes of this Subsection (3), indirect inducement includes:

(A) furnishing a thing of value to a third party when the benefit resulting from the thing of value flows to an individual retailer; and

(B) making a payment for advertising to a retailer association or a display company when the resulting benefits flow to an individual retailer.

(ii) Notwithstanding Subsection (3)(b)(i), an indirect inducement does not arise if:

(A) the thing of value is furnished to a retailer by the third party without the knowledge or intent of the industry member; or

(B) the industry member does not reasonably foresee that the thing of value would be furnished to a retailer.

(c) Anything that may lawfully be furnished, given, rented, lent, or sold by industry members to retailers under Section 32B-4-705 may be furnished directly by a third party to a retailer.

(d)

(i) A transaction in which equipment is sold to a retailer by an industry member, except as provided in Section 32B-4-705, is the selling of equipment within the meaning of Subsection (3)(a) regardless of how the equipment is sold.

(ii) The negotiation by an industry member of a special price to a retailer for equipment from an equipment company is the furnishing of a thing of value within the meaning of Subsection (3)(a).

(e) The furnishing of free warehousing by delaying delivery of an alcoholic product beyond the time that payment for the product is received, or if a retailer is purchasing on credit, delaying final delivery of products beyond the close of the period of time for which credit is lawfully extended, is the furnishing of a service or thing of value within the meaning of Subsection (3)(a).

(f) A financial, legal, administrative, or influential assistance given a retailer by an industry member in the retailer's acquisition of the retailer's license is the furnishing of a service or thing of value within the meaning of Subsection (3)(a).

(4) It is unlawful for an industry member, directly or indirectly, or through an affiliate, to induce a retailer to purchase an alcoholic product from the industry member or from the department to the exclusion in whole or in part of a product sold or offered for sale by another person by paying or crediting the retailer for an advertising, display, or distribution service:

(a) as defined in and to the extent restricted by 27 C.F.R. Sec. 6.51 through 6.56; and

(b) subject to the exceptions:

(i) for newspaper cuts listed in 27 C.F.R. Sec. 6.92; and

(ii) for advertising services listed in 27 C.F.R. Sec. 6.98.

(5) It is unlawful for an industry member, directly or indirectly, or through an affiliate, to induce a retailer to purchase an alcoholic product from the industry member or from the department to the exclusion in whole or in part of a product sold or offered for sale by another person by guaranteeing a loan or the repayment of a financial obligation of the retailer.

(6)

(a) It is unlawful for an industry member, directly or indirectly, or through an affiliate, to induce a retailer to purchase beer from the industry member to the exclusion in whole or in part of a beer product sold or offered for sale by another person by extending to a retailer credit for a period in excess of 15 days from the date of delivery to the date of full legal discharge from all indebtedness arising from the transaction by the retailer paying cash or its equivalent, unless:

(i) beer purchased or delivered during the first 15 days of any month is paid for in cash or its equivalent on or before the 25th day of the same month; and

(ii) beer purchased or delivered after the 15th day of any month is paid for in cash or its equivalent on or before the 10th day of the next succeeding month.

(b) A first party in-state check is considered cash payment if the check is:

(i) honored on presentment; and

(ii) received under the terms prescribed in Subsection (6)(a).

(c) An extension of credit for product purchased by an industry member to a retailer whose account is in arrears does not constitute a violation of Subsection (6)(a) if the retailer pays in advance or on delivery an amount equal to or greater than the value of each order, regardless of the manner in which the industry member applies the payment in its records.

(7)

(a) It is unlawful for an industry member, directly or indirectly, or through an affiliate, to induce a retailer to purchase an alcoholic product from the industry member or from the department to the exclusion in whole or in part of a product sold or offered for sale by another person by requiring:

(i) the department to take and dispose of a certain quota of a product; or

(ii) a beer retailer to take and dispose of a certain quota of a beer product.

(b)

(i) It is an unlawful means to induce to require:

(A) the department to purchase one product in order to purchase another product; or

(B) a beer retailer to purchase one beer product in order to purchase another beer product.

(ii) This Subsection (7)(b) includes:

(A) the requirement to take a minimum quantity of a product in standard packaging in order to obtain the same product in some type of premium container such as:

(I) a distinctive decanter; or

(II) a wooden or tin box; or

(B) combination sales if one or more products may be purchased only in combination with another product and not individually.

(c) This Subsection (7) does not preclude the selling, at a special combination price, of two or more kinds or brands of products so long as the department or beer retailer:

(i) has the option of purchasing either product at the usual price; and

(ii) is not required to purchase a product the department or beer retailer does not want.

(d) An industry member may package and distribute an alcoholic product in combination with other nonalcoholic items.

(e) A combination package shall be designed to be delivered intact to the consumer and the additional cost incurred by the industry member shall be included in the cost to the department or beer retailer.

§ 32B-4-705 Exclusions from tied house prohibitions.

(1) Notwithstanding Subsection 32B-4-704(3), a thing of value may be furnished by an industry member to a retailer under the conditions and within the limitations prescribed in:

(a) this section; and

(b) the applicable federal laws cited in this section.

(2) The following may be furnished by an industry member:

(a) a product display as provided in 27 C.F.R. Sec. 6.83;

(b) point of sale advertising material or a consumer advertising specialty as provided in 27 C.F.R. Sec. 6.84;

(c) a thing of value to a temporary retailer to the extent allowed in 27 C.F.R. Sec. 6.85;

(d) equipment and supplies as provided in 27 C.F.R. Sec. 6.88;

(e) combination packaging as provided in 27 C.F.R. Sec. 6.93;

(f) an educational seminar as provided in 27 C.F.R. Sec. 6.94;

(g) a consumer promotion as provided in 27 C.F.R. Sec. 6.96;

(h) an advertising service as provided in 27 C.F.R. Sec. 6.98;

(i) stocking, rotation, and pricing service as provided in 27 C.F.R. Sec. 6.99;

(j) merchandise as provided in 27 C.F.R. Sec. 6.101; and

(k) an outside sign as provided in 27 C.F.R. Sec. 6.102.

(3) The following exceptions provided in federal law are not applicable:

(a) the exception for a sample as provided in 27 C.F.R. Sec. 6.91;

(b) the exception for a consumer tasting or sampling at a retail establishment as provided in 27 C.F.R. Sec. 6.95; and

(c) the exception for participation in a retailer association activity provided in 27 C.F.R. Sec. 6.100.

(4) To the extent required by 27 C.F.R. Sec. 6.81(b) an industry member shall maintain a record:

(a) of an item furnished to a retailer;

(b) on the premises of the industry member; and

(c) for a three-year period.

(5) A sample of liquor may be provided to the department under the following conditions:

(a) With the department's permission, an industry member may submit a department sample to the department for product testing, analysis, and sampling.

(b) No more than two department samples of a particular type, vintage, and production lot of a particular branded product may be submitted to the department for department testing, analysis, and sampling within a consecutive 120-day period.

(c)

(i) A department sample may not exceed 1 liter.

(ii) Notwithstanding Subsection (5)(c)(i), a department sample of the following may not exceed 1.5 liters unless that exact alcoholic product is only commercially packaged in a larger size, not to exceed 5 liters:

(A) wine;

(B) heavy beer; or

(C) a flavored malt beverage.

(d) A department sample submitted to the department:

(i) shall be shipped prepaid by the industry member by common carrier; and

(ii) may not be shipped by United States mail directly to the department's central administrative warehouse office.

(e) A department sample may not be shipped to any other location within the state.

(f) The industry member shall submit with a department sample submitted to the department a letter from the industry member that clearly:

(i) identifies the product as a "department sample"; and

(ii) states the FOB case price of the product.

(g)

(i) The department may transfer a listed item from current stock:

(A) for use as a comparison control sample; or

(B) to verify product spoilage as considered appropriate.

(ii) The department shall charge back a sample transferred under this Subsection (5)(g) to the respective industry member.

(h) The department shall:

(i) account for, label, and record a department sample received or transferred;

(ii) account for the department sample's disposition; and

(iii) maintain a record of the sample and its disposition for a two-year period.

(i) The department shall affix to each container of a department sample a label clearly identifying the product as a "department sample."

(j) The department shall dispose of a department sample delivered to the department or transferred from the department's current stock in one of the following ways as chosen by the department:

(i) test and analyze the department sample, with the remaining contents destroyed under controlled and audited conditions established by the department;

(ii) destroy the entire contents of the department sample under controlled and audited conditions established by the department; or

(iii) add the department sample to the inventory of the department for sale to the public.

(k) A person other than an authorized department official may not be in possession of a department sample except as otherwise provided.

(l) The department shall handle a liquor item received by the department from a supplier that is not designated as a sample by the supplier, but that is an item not specifically listed on a department purchase order, in accordance with this Subsection (5).

(m) The department may not use its money to pay freight or charges on a sample or a liquor item:

(i) shipped to the department by a supplier; and

(ii) not listed on a department purchase order.

(6) A sample of beer may be provided by a beer industry member to a retailer under the conditions listed in this Subsection (6).

(a) A sample of beer may be provided by an industry member only to a retailer who has not purchased the brand of beer from that industry member within the last 12 months.

(b) For each retailer, the industry member may give not more than three gallons of any brand of beer, except that if a particular product is not available in a size within the quantity limitation, an industry member may furnish the next largest size.

(7) An educational seminar may involve an industry member under the conditions listed in this Subsection (7).

(a) An industry member may provide or participate in an educational seminar:

(i) involving:

(A) the department;

(B) a retailer;

(C) a holder of a scientific or educational special use permit;

(D) another industry member; or

(E) an employee of a person listed in Subsections (7)(a)(i)(A) through (D); and

(ii) regarding a topic such as:

(A) merchandising and product knowledge;

(B) use of equipment; and

(C) a tour of an alcoholic product manufacturing facility.

(b) An industry member may not pay the expenses of or compensate a person who is a department employee, a retailer, or a permittee for attending a seminar or tour described in Subsection (7)(a).

(8)

(a) A liquor industry member may conduct a tasting of a liquor product of the industry member:

(i) for the department, at the department's request; and

(ii) for a licensed industry representative, but only at the department's central administrative warehouse office.

(b) A liquor industry member may only use a department sample or industry representative sample when conducting a tasting of the industry member's liquor product.

(c) A beer industry member may conduct a tasting of a beer product for a beer retailer either at:

(i) the industry member's premises; or

(ii) a retail establishment.

(d) Except to the extent authorized by commission rule, an alcoholic product industry member may not conduct tasting or sampling activities with:

(i) a retailer; or

(ii) a member of the general public.

(9) A beer industry member may participate in a beer retailer association activity to the extent authorized by 27 C.F.R. Sec. 6.100.

(10)

(a) An industry member may contribute to a charitable, civic, religious, fraternal, educational, or community activity, except the contribution may not be given to influence a retailer in the selection of a product that may be sold at the activity.

(b) An industry member or retailer violates this Subsection (10) if:

(i) the industry member's contribution influences, directly or indirectly, the retailer in the selection of a product; and

(ii) a competitor's product is excluded in whole or in part from sale at the activity.

(11)

(a) An industry member may lease or furnish equipment listed in Subsection (11)(b) to a retailer if:

(i) the equipment is leased or furnished for a special event;

(ii) a reasonable rental or service fee is charged for the equipment; and

(iii) the period for which the equipment is leased or furnished does not exceed 30 days.

(b) This Subsection (11) applies to the following equipment:

(i) a picnic pump;

(ii) a cold plate;

(iii) a tub;

(iv) a keg box;

(v) a refrigerated trailer;

(vi) a refrigerated van; or

(vii) a refrigerated draft system.

(12)

(a) A liquor industry member may assist the department in:

(i) ordering, shipping, and delivering merchandise;

(ii) new product notification;

(iii) listing and delisting information;

(iv) price quotations;

(v) product sales analysis;

(vi) shelf management; and

(vii) an educational seminar.

(b)

(i) A liquor industry member may, to acquire a new listing:

(A) solicit an order from the department; and

(B) submit to the department a sample of the liquor industry member's products under Subsection (5) and price lists.

(ii)

(A) An industry member is confined to the customer areas when the industry member visits a state store or package agency unless otherwise approved.

(B) An industry member is confined to the office area of a state warehouse when the industry member visits a state warehouse unless otherwise approved.

(13) A beer industry member may assist a beer retailer in:

(a) ordering, shipping, and delivering beer merchandise;

(b) new product notification;

(c) listing and delisting information;

(d) price quotations;

(e) product sales analysis;

(f) shelf management; and

(g) an educational seminar.

(14) A beer industry member may, to acquire a new listing:

(a) solicit an order from a beer retailer; and

(b) submit to a beer retailer a sample of the beer industry member's beer products under Subsection (5) and price lists.

§ 32B-4-706 Commercial bribery.

This section adopts and makes applicable to an industry member, including a beer industry member, doing business in this state, 27 U.S.C. Sec. 205(c) and 27 C.F.R. Sec. 10.1 through 10.54, which make it unlawful for an industry member, directly or indirectly, or through an affiliate, to induce a wholesaler or retailer engaged in the sale of an alcoholic product to purchase the industry member's products, to the complete or partial exclusion of alcoholic beverages sold or offered for sale by other persons, by commercial bribery, or by offering or giving a bonus, premium, compensation, or other thing of value, to any officer, employee, or representative of the wholesaler or retailer.

§ 32B-4-707 Consignment sale.

(1) This section adopts and makes applicable to an industry member, including a beer industry member, doing business in this state, 27 U.S.C. Sec. 205(d) and 27 C.F.R. Sec. 11.1 through 11.46, which make it unlawful for an industry member, directly or indirectly, or through an affiliate to sell, offer for sale, or contract to sell to any wholesaler or retailer engaged in the sale of an alcoholic product, or for any wholesaler or retailer to purchase, offer to purchase, or contract to purchase any of those products on consignment or under conditional sale or with the privilege of return or on any basis otherwise than a bona fide sale, or where any part of the transaction involves, directly or indirectly, the acquisition by that person from the wholesaler or retailer or that person's agreement to acquire from the wholesaler or retailer other alcoholic beverages, if the sale, purchase, offer, or contract is made in the course of interstate or foreign commerce, or if the person or wholesaler or retailer engages in such practice to an extent so as substantially to restrain or prevent transactions in interstate or foreign commerce in any of those products or if the direct effect of the sale, purchase, offer, or contract is to prevent, deter, hinder, or restrict other persons from selling or offering for sale any of those products to the wholesaler or retailer in interstate or foreign commerce.

(2) This section does not apply to a transaction involving solely the bona fide return of merchandise for ordinary and usual commercial reasons arising after the merchandise has been sold.

§ 32B-4-708 Unlawful act involving consumers.

(1)

(a) It is unlawful for an industry member, directly or indirectly, or through an affiliate, to give away any of its product to a person except for testing, analysis, and sampling purposes by the department or local industry representative licensee to the extent authorized by this title.

(b) This Subsection (1) does not preclude an industry member from serving its product to others at a private event hosted by the industry member in the industry member's home or elsewhere so long as the product is not served:

(i) as part of a promotion of the industry member's product; or

(ii) as a subterfuge to provide a sample to a person for product testing, analysis, or sampling purposes.

(2) It is unlawful for an industry member or retailer, directly or indirectly, or through an affiliate, to engage in an advertisement or promotional scheme that requires the purchase or sale of an alcoholic product, or consumption of an alcoholic product, in order to participate in a promotion, program, or other activity.

(3) It is unlawful for an industry member or retailer, directly or indirectly, or through an affiliate, to pay, give, or deliver to a person money or any other thing of value, including a rebate, refund, or prize, on the basis of the purchase, display, use, sale, or consumption of an alcoholic product.

(4) It is unlawful for an industry member or retailer to sponsor or underwrite an athletic, theatrical, scholastic, artistic, or scientific event that:

(a) overtly promotes the consumption of a product;

(b) offers a product to the general public without charge; or

(c) takes place on the premises of a school, college, university, or other educational institution.

Chapter 5 Retail License Act

Part 1 General Provisions

§ 32B-5-101 Title.

This chapter is known as the "Retail License Act."

§ 32B-5-102 Definitions.

Reserved.

Part 2 Retail Licensing Process

§ 32B-5-201 Application requirements for retail license.

(1)

(a) Before a person may store, sell, offer for sale, furnish, or permit consumption of an alcoholic product on licensed premises as a retail licensee, the person shall first obtain a retail license issued by the commission, notwithstanding whether the person holds a local license or a permit issued by a local authority.

(b) Violation of this Subsection (1) is a class B misdemeanor.

(2) To obtain a retail license under this title, a person shall submit to the department:

(a) a written application in a form prescribed by the department;

(b) a nonrefundable application fee in the amount specified in the relevant chapter or part for the type of retail license for which the person is applying;

(c) an initial license fee:

(i) in the amount specified in the relevant chapter or part for the type of retail license for which the person is applying; and

(ii) that is refundable if a retail license is not issued;

(d) written consent of the local authority, including, if applicable, consent for each proposed sublicense;

(e) a copy of:

(i) every license the local authority requires, including the person's current business license; and

(ii) if the person is applying for a principal license, the current business license for each proposed sublicense, except if the local authority determines that the business license for a proposed sublicense is included in the person's current business license;

(f) evidence of the proposed retail licensee's proximity to any community location, with proximity requirements being governed by Section 32B-1-202;

(g) a bond as specified by Section 32B-5-204;

(h) a floor plan, and boundary map where applicable, of the premises of the retail license and each, if any, accompanying sublicense, including any:

(i) consumption area; and

(ii) area where the person proposes to store, sell, offer for sale, or furnish an alcoholic beverage;

(i) evidence that the retail licensee carries public liability insurance in an amount and form satisfactory to the department;

(j) evidence that the retail licensee carries dramshop insurance coverage of at least:

(i) $1,000,000 per occurrence and $2,000,000 in the aggregate;

(ii) if the retail licensee is a hotel licensee or a resort licensee, $1,000,000 per occurrence and $2,000,000 in the aggregate to cover both the principal license and all accompanying sublicenses; or

(iii) if the retail licensee is an arena licensee, $10,000,000 per occurrence and $20,000,000 in the aggregate to cover both the arena license and all accompanying sublicenses;

(k) a signed consent form stating that the retail licensee will permit any authorized representative of the commission, department, or any law enforcement officer to have unrestricted right to enter:

(i) the premises of the retail licensee; and

(ii) if applicable, the premises of each of the retail licensee's accompanying sublicenses;

(l) if the person is an entity, proper verification evidencing that a person who signs the application is authorized to sign on behalf of the entity;

(m) a responsible alcohol service plan;

(n) evidence that each individual the person has hired to work as a retail manager, as defined in Section 32B-1-701, has completed the alcohol training and education seminar as required under Chapter 1, Part 7, Alcohol Training and Education Act; and

(o) any other information the commission or department may require.

(3) The commission may not issue a retail license to a person who:

(a) is disqualified under Section 32B-1-304; or

(b) is not lawfully present in the United States.

(4) Unless otherwise provided in the relevant chapter or part for the type of retail license for which the person is applying, the commission may not issue a retail license to a person if the proposed licensed premises does not meet the proximity requirements of Section 32B-1-202.

(5) Subject to Subsection (6), the commission may not deny an application for a retail license, an application for a conditional retail license under Section 32B-5-205, or an application for a sublicense under Chapter 8d, Sublicense Act, if:

(a) the applicant satisfies the requirements of this chapter and Chapter 6, Specific Retail License Act; and

(b) for a retail license or a conditional retail license, granting the retail license or the conditional retail license would not cause the commission to exceed the maximum number of licenses of that retail license type that the commission is authorized to issue under this chapter.

(6)

(a) The commission may deny an application for a retail license, an application for a conditional retail license under Section 32B-5-205, or an application for a sublicense under Chapter 8d, Sublicense Act, if the commission determines:

(i) that the applicant's violation history warrants the denial; or

(ii) after considering a factor described in Subsections 32B-5-203(2)(c) through (f) or (3), a denial of the application is warranted.

(b) The commission, when making a determination under this Subsection (6), shall:

(i) treat applicants with substantially similar violation histories consistently; and

(ii) consider the factors described in Subsections 32B-5-203(2)(c) through (f) or (3) consistently.

§ 32B-5-202 Renewal requirements.

(1) A retail license expires each year on the day specified in the relevant chapter or part for that type of retail license.

(2)

(a) To renew a person's retail license, a retail licensee shall, on or before the day specified in the relevant chapter or part for the type of retail license that the person seeks to renew, submit:

(i) a completed renewal application in a form prescribed by the department;

(ii) a renewal fee in the amount specified in the relevant chapter or part for the type of retail license that the person seeks to renew;

(iii) a responsible alcohol service plan if, since the retail licensee's most recent application or renewal, the retail licensee:

(A) made substantial changes to the retail licensee's responsible alcohol service plan; or

(B) violated a provision of this chapter; and

(iv) a certification in a form prescribed by the department of the retail licensee's compliance with Section 32B-5-302.

(b) The department may audit a retail licensee's responsible alcohol service plan.

(3) Failure to meet the renewal requirements results in an automatic forfeiture of the retail license effective on the day on which the existing retail license expires.

§ 32B-5-203 Commission and department duties before issuing a retail license.

(1)

(a) Before the commission may issue a retail license, the department shall conduct an investigation and may hold public hearings to gather information and make recommendations to the commission as to whether a retail license and, if applicable, each accompanying sublicense should be issued.

(b) The department shall forward the information and recommendations described in Subsection (1)(a) to the commission to aid in the commission's determination.

(2) Before issuing a retail license, the commission shall:

(a) determine that the person filed a complete application and is in compliance with:

(i) Section 32B-5-201; and

(ii) the specific licensing requirements specified in the relevant chapter or part for the type of retail license for which the person is applying;

(b) determine that the person and, if applicable, each of the person's accompanying sublicenses is not disqualified under Section 32B-1-304;

(c) consider the locality within which the proposed licensed premises and, if applicable, each proposed sublicensed premises is located, including:

(i) physical characteristics such as:

(A) condition of the licensed or sublicensed premises;

(B) square footage; and

(C) parking availability; and

(ii) operational factors such as:

(A) tourist traffic;

(B) demographics;

(C) population to be served;

(D) proximity to and density of other state stores, package agencies, and retail licensees; and

(E) the extent of and proximity to any community location;

(d) consider the person's ability to manage and operate a retail license, and if applicable the ability of each individual who will act in a supervisory or managerial capacity for each accompanying sublicense to supervise or manage a sublicense, of the type for which the person is applying, including:

(i) management experience;

(ii) past retail alcoholic product experience; and

(iii) the type of management scheme to be used by the retail licensee or accompanying sublicensee;

(e) consider the nature or type of retail licensee operation, and if applicable each proposed accompanying sublicensee's operation, of the proposed retail licensee, including:

(i) the type of menu items that will be offered and emphasized;

(ii) whether the retail licensee or the retail licensee's accompanying sublicensee will emphasize service to an adult clientele or to minors;

(iii) the proposed hours of operation;

(iv) the seating capacity of the premises; and

(v) the estimated gross sales of food items; and

(f) consider any other factor the commission considers necessary.

(3) The commission shall determine whether an applicant under this section has an adequate kitchen or culinary facilities by considering:

(a) the type of retail license or sublicense for which the person is applying;

(b) the purpose of the proposed retail license or sublicense; and

(c) the locality within which the proposed licensed or sublicensed premises is located.

§ 32B-5-204 Bond for retail license.

(1)

(a) A retail licensee shall post a cash bond or surety bond:

(i) in the amount specified in the relevant chapter or part for the type of retail license for which the person is applying; and

(ii) payable to the department.

(b) A retail licensee shall procure and maintain the bond required under this section for as long as the retail licensee continues to operate as a retail licensee.

(2) A bond required under this section shall be:

(a) in a form approved by the attorney general; and

(b) conditioned upon the retail licensee's faithful compliance with this title and the rules of the commission.

(3)

(a) If a surety bond posted by a retail licensee under this section is canceled due to the retail licensee's negligence, the department may assess a $300 reinstatement fee.

(b) No part of a bond posted by a retail licensee under this section may be withdrawn:

(i) during the period the retail license is in effect; or

(ii) while a revocation proceeding is pending against the retail licensee.

(4)

(a) A bond posted under this section by a retail licensee may be forfeited if the retail license is revoked.

(b) Notwithstanding Subsection (4)(a), the department may make a claim against a bond posted by a retail licensee for money owed the department under this title without the commission first revoking the retail license.

§ 32B-5-205 Conditional retail license.

(1) As used in this section:

(a) "Conditional retail license" means a retail license that:

(i) conditions the holder's ability to obtain a valid retail license on the person submitting to the department:

(A) a copy of every license or permit the local authority requires for the valid retail license, including the holder's current business license;

(B) a bond;

(C) evidence that the person carries public liability insurance;

(D) evidence that the person carries dramshop insurance;

(E) evidence that each individual the conditional retail licensee has hired to work as a retail manager, as defined in Section 32B-1-701, has completed the alcohol training and education seminar as required under Chapter 1, Part 7, Alcohol Training and Education Act; or

(F) any other information the department or commission may require for licensure; and

(ii) provides that the holder will be issued a valid retail license if the holder complies with the requirements of Subsection (3).

(b) "Valid retail license" means a retail license issued pursuant to this part under which the holder is permitted to sell, offer for sale, furnish, or allow the consumption of an alcoholic product on the holder's licensed premises.

(2) Subject to the requirements of this section, the commission may issue a conditional retail license to a person if the person:

(a) meets each requirement to obtain the retail license for which the person is applying, except a requirement to submit to the department:

(i) a copy of every license or permit the local authority requires for the retail license, including the person's current business license;

(ii) a bond;

(iii) evidence that the person carries public liability insurance;

(iv) evidence that the person carries dramshop insurance coverage;

(v) evidence that each individual the conditional retail licensee has hired to work as a retail manager, as defined in Section 32B-1-701, has completed the alcohol training and education seminar as required under Chapter 1, Part 7, Alcohol Training and Education Act; or

(vi) a menu; and

(b) agrees not to sell, offer for sale, furnish, or allow the consumption of an alcoholic product on the conditional retail licensee's licensed premises before obtaining a valid retail license.

(3)

(a) A conditional retail license becomes a valid retail license on the day on which the department notifies the person who holds the conditional retail license that the department finds that the person has complied with Subsection (3)(b).

(b) For a conditional retail license to become a valid retail license, a person who holds the conditional retail license shall:

(i) submit to the department:

(A) a copy of every license or permit the local authority requires for the retail license, including the person's current business license;

(B) a bond as specified by Section 32B-5-204;

(C) evidence that the conditional retail licensee carries public liability insurance in an amount and form satisfactory to the department;

(D) evidence that the conditional retail licensee carries dramshop insurance coverage as specified in Section 32B-5-201;

(E) evidence that each individual the conditional retail licensee has hired to work as a retail manager, as defined in Section 32B-1-701, has completed an alcohol training and education seminar as required under Chapter 1, Part 7, Alcohol Training and Education Act; and

(F) any other information the department or commission may require; and

(ii) provide to the department evidence satisfactory to the department that:

(A) there has been no change in the information submitted to the commission as part of the person's application for a retail license; and

(B) the person continues to qualify for the retail license.

(4)

(a) A conditional retail license expires 18 months after the day on which the commission issues the conditional retail license, unless the conditional retail license becomes a valid retail license before that day.

(b) Notwithstanding Subsection (4)(a), the commission may extend the time period of a conditional retail license an additional six months if the holder of the conditional license can show to the satisfaction of the commission that the holder of the conditional license:

(i) has an active building permit related to the licensed premises; and

(ii) is engaged in a good faith effort to pursue completion within the six-month period.

§ 32B-5-206 Seasonal retail license.

(1) If authorized in the relevant part under Chapter 6, Specific Retail License Act, for the type of retail license, the commission may in accordance with this section issue a seasonal retail license located in an area the commission considers proper.

(2)

(a) A seasonal retail license shall be for a period of six consecutive months.

(b) A seasonal retail license issued for operation during a summer time period is known as a "Seasonal A" retail license. The period of operation for a Seasonal A retail license:

(i) begins on May 1; and

(ii) ends on October 31.

(c) A seasonal retail license issued for operation during a winter time period is known as a "Seasonal B" retail license. The period of operation for a Seasonal B retail license:

(i) begins on November 1; and

(ii) ends on April 30.

(3) In determining the number of each type of retail license that the commission may issue under the relevant part under Chapter 6, Specific Retail License Act:

(a) a seasonal retail license is counted as one-half of one retail license of the specific type of retail license; and

(b) each Seasonal A retail license shall be paired with a Seasonal B retail license of the same type of retail license.

§ 32B-5-207 Multiple retail licenses on same premises.

(1) As used in this section, "license" means:

(a) a retail license; or

(b) a sublicense.

(2) Except as provided in Subsection (3), the commission may not issue and one or more licensees may not hold more than one type of license for the same premises.

(3)

(a) The commission may issue and one or more licensees may hold more than one type of license for the same premises if:

(i) the applicant or licensee satisfies the requirements for each license;

(ii) the types of licenses issued or held are two or more of the following:

(A) a restaurant license;

(B) an on-premise beer retailer license that is not a tavern;

(C) an on-premise banquet license or a reception center license; and

(D) a hospitality amenity license; and

(iii) the licenses do not operate at the same time on the same day.

(b) The commission may issue and two or more restaurant licensees may share an area of each restaurant licensee's licensed premises designated for alcoholic beverage consumption, if:

(i) the applicants or licensees satisfy the requirements for each license; and

(ii) the only shared premises between the issued or held restaurant licenses is the area for alcoholic beverage consumption.

(c) The commission may issue and two or more licensees may share a kitchen or culinary facilities located in or on one or more of the licensees' licensed premises, if:

(i) the types of licenses issued or held are two or more sublicenses of a principal licensee:

(A) one of which is an on-premise banquet sublicense; and

(B) one of which is a restaurant license that is a sublicense, an on-premise beer retailer sublicense that is not a tavern, or a bar sublicense; or

(ii)

(A) the same person applies for or holds each license;

(B) the licensed premises are each owned or leased by the same person and located in the same building; and

(C) the only shared premises between the issued or held licenses is the kitchen or culinary facilities area, including any pathway necessary to transport an item to and from the area.

(4) When one or more licensees hold more than one type of license for the same premises under Subsection (3)(a), the one or more licensees shall post in a conspicuous location at the entrance of the room a sign that:

(a) measures 8-1/2 inches by 11 inches; and

(b) states whether the premises is currently operating as:

(i) a restaurant;

(ii) an on-premise beer retailer that is not a tavern;

(iii) a banquet or a reception center; or

(iv) a hospitality amenity.

(5) When two or more restaurant licensees share an area of each restaurant licensee's licensed premises designated for alcoholic beverage consumption in accordance with Subsection (3)(b), each licensee shall:

(a) maintain control over the licensee's patrons; and

(b) use a visual marker to clearly identify which licensee served each patron.

(6)

(a) For purposes of Subsection (3)(a), the commission may not issue and one or more licensees may not hold a bar license or a tavern license in the same room as a restaurant license.

(b) For purposes of Subsection (6)(a), two licenses are not considered in the same room if:

(i) each shared permanent wall between the premises licensed as a bar or a tavern and the premises licensed as a restaurant measures at least eight feet high;

(ii) the premises for each license has a separate entryway that does not require a patron to pass through the premises licensed as a bar or a tavern to access the premises licensed as a restaurant; and

(iii) if a patron must pass through the premises licensed as a restaurant to access the entryway to the premises licensed as a bar or a tavern, a patron on the premises licensed as a restaurant cannot see a dispensing structure on the premises licensed as a bar or a tavern.

(7)

(a) The commission may issue more than one type of sublicense to a resort licensed under Chapter 8, Resort License Act, or a hotel licensed under Chapter 8b, Hotel License Act, for the same room if the sublicensed premises are clearly delineated by one or more permanent physical structures, such as a wall or other architectural feature, that separate the sublicensed premises.

(b) A patron may not transport an alcoholic beverage between two sublicensed premises located in the same room in accordance with Subsection (7)(a).

(c) Notwithstanding any provision to the contrary, a minor may momentarily pass through a sublicensed premises that is a bar to reach another location where a minor may lawfully be, if there is no practical alternative route to the location.

Part 3 Retail Licensee Operational Requirements

§ 32B-5-301 General operational requirements.

(1)

(a) A retail licensee and staff of a retail licensee shall comply with this title and the rules of the commission, including the relevant chapter or part for the specific type of retail license.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a retail licensee;

(ii) individual staff of a retail licensee; or

(iii) both a retail licensee and staff of the retail licensee.

(2)

(a) If there is a conflict between this part and the relevant chapter or part for the specific type of retail license, the relevant chapter or part for the specific type of retail license governs.

(b) Notwithstanding that this part refers to "liquor" or an "alcoholic product," a retail licensee may only sell, offer for sale, furnish, or allow the consumption of an alcoholic product specifically authorized by the relevant chapter or part for the retail licensee's specific type of retail license.

(c) Notwithstanding that this part or the relevant chapter or part for a specific retail licensee refers to "retail licensee," staff of the retail licensee is subject to the same requirement or prohibition.

(3)

(a) A retail licensee shall display in a prominent place in the licensed premises the retail license that is issued by the department.

(b) A retail licensee shall display in a prominent place a sign in large letters that consists of text in the following order:

(i) a header that reads: "WARNING";

(ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy can cause birth defects and permanent brain damage for the child.";

(iii) a statement in smaller font that reads: "Call the Utah Department of Health and Human Services at [insert most current toll-free number] with questions or for more information.";

(iv) a header that reads: "WARNING"; and

(v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah."

(c)

(i) The text described in Subsections (3)(b)(i) through (iii) shall be in a different font style than the text described in Subsections (3)(b)(iv) and (v).

(ii) The warning statements in the sign described in Subsection (3)(b) shall be in the same font size.

(d) The Department of Health and Human Services shall work with the commission and department to facilitate consistency in the format of a sign required under this section.

(4) A retail licensee may not on the licensed premises:

(a) engage in or permit any form of gambling, as defined in Section 76-9-1401, or fringe gambling, as defined in Section 76-9-1401;

(b) have any fringe gaming device, video gaming device, or gambling device or record as defined in Section 76-9-1401; or

(c) engage in or permit a contest, game, gaming scheme, or gaming device that requires the risking of something of value for a return or for an outcome when the return or outcome is based upon an element of chance, excluding the playing of an amusement device that confers only an immediate and unrecorded right of replay not exchangeable for value.

(5) A retail licensee may not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37, Controlled Substances, or Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances, or Part 3, Offenses Concerning Drug Paraphernalia:

(a) sell, distribute, possess, or use a controlled substance, as defined in Section 58-37-101; or

(b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in Section 76-18-301.

(6) Upon the presentation of credentials, at any time during which a retail licensee is open for the transaction of business, the retail licensee shall immediately:

(a) admit a commissioner, authorized department employee, or law enforcement officer to the retail licensee's premises; and

(b) permit, without hindrance or delay, the person described in Subsection (6)(a) to inspect completely:

(i) the entire premises of the retail licensee; and

(ii) the records of the retail licensee.

(7) An individual may not consume an alcoholic product on the licensed premises of a retail licensee on any day during the period:

(a) beginning one hour after the time of day that the period during which a retail licensee may not sell, offer for sale, or furnish an alcoholic product on the licensed premises begins; and

(b) ending at the time specified in the relevant chapter or part for the retail licensee's specific type of retail license when the retail licensee may first sell, offer for sale, or furnish an alcoholic product on the licensed premises on that day.

(8) An employee of a retail licensee who sells, offers for sale, or furnishes an alcoholic product to a patron shall wear an identification badge.

(9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules:

(a) related to the requirement described in Subsection (8); and

(b) for dispensing systems and dispensing areas of restaurant licensees, bar licensees, and taverns, establishing standards:

(i) in accordance with the provisions of this title; and

(ii) prohibiting a dispensing system to remain at a patron's table.

§ 32B-5-302 Recordkeeping -- Retention.

(1)

(a) A retail licensee shall make and maintain a record showing in detail:

(i) quarterly expenditures made separately for:

(A) malt or brewed beverages;

(B) liquor;

(C) set-ups;

(D) food; and

(E) any other item required by the department; and

(ii) sales made separately for:

(A) malt or brewed beverages;

(B) set-ups;

(C) food; and

(D) any other item required by the department.

(b) A retail licensee shall make and maintain a record required by Subsection (1)(a):

(i) in a form approved by the department; and

(ii) current for each three-month period.

(c) A retail licensee shall support an expenditure by:

(i) a delivery ticket;

(ii) an invoice;

(iii) a receipted bill;

(iv) a canceled check;

(v) a petty cash voucher; or

(vi) other sustaining datum or memorandum.

(d) In addition to a record required under Subsection (1)(a), a retail licensee shall make and maintain any other record the department may require.

(2) After receiving written notice of an official proceeding or investigation under Chapter 15, Alcoholic Product Liability Act, or a criminal proceeding or investigation for a violation of Section 41-6a-502 or 41-6a-517, a retail licensee shall retain a record that is relevant to the proceeding or investigation, including any video surveillance, for a period of at least two years after the day on which the notice is received.

(3)

(a) A record of a retail licensee is subject to inspection by an authorized representative of the commission or the department.

(b) A retail licensee shall allow the department, through an auditor or examiner of the department, to audit the records of the retail licensee at times the department considers advisable.

(4) Sections 32B-1-205 and 32B-4-505 apply to a record required to be made or maintained in accordance with this section.

§ 32B-5-303 Purchase and storage of an alcoholic product by a retail licensee.

(1)

(a) A retail licensee may not purchase liquor except from a state store or package agency.

(b) A retail licensee may transport liquor purchased from a state store or package agency from the place of purchase to the licensed premises.

(c) A retail licensee shall pay for liquor in accordance with rules the commission establishes.

(2)

(a)

(i) A retail licensee may not purchase, acquire, possess for the purpose of resale, or sell beer except beer that the retail licensee purchases from:

(A) a beer wholesaler licensee; or

(B) a small brewer that manufactures the beer.

(ii) A violation of this Subsection (2)(a) is a class A misdemeanor.

(b)

(i) If a retail licensee purchases beer under Subsection (2)(a) from a beer wholesaler licensee, the retail licensee shall purchase beer only from a beer wholesaler licensee that the manufacturer designates to sell beer in the geographical area in which the retail licensee is located, unless the department authorizes an alternate wholesaler to sell to the retail licensee as provided in Section 32B-13-301.

(ii) A violation of Subsection (2)(b) is a class B misdemeanor.

(3) A retail licensee may not store, sell, offer for sale, or furnish an alcoholic product in a place other than as designated in the retail licensee's application, unless the retail licensee first applies for and receives approval from the department for a change of location within the licensed premises.

§ 32B-5-304 Portions in which alcoholic product may be sold.

(1)

(a) A retail licensee may sell, offer for sale, or furnish spirituous liquor that is a primary spirituous liquor only in a quantity that does not exceed 1.5 ounces per beverage dispensed through a calibrated metered dispensing system approved by the department in accordance with commission rules adopted under this title.

(b) A retail license is not required to dispense spirituous liquor through a calibrated metered dispensing system if the spirituous liquor is:

(i) a secondary flavoring ingredient;

(ii) used as a flavoring on a dessert;

(iii) used to set aflame a food dish, drink, or dessert;

(iv) in a beverage that:

(A) is served to a patron in the original container;

(B) is not more than 12 ounces;

(C) contains no more than 10% alcohol by volume or 8% by weight; and

(D) is in a container that has the alcohol by volume percentage on the front label and in a font that measures at least three millimeters high; or

(v) in a beverage that:

(A) is served to a patron by pouring the beverage from the original sealed container, into a different container as required under Subsection 32B-8d-104(5)(b);

(B) is not more than 12 ounces;

(C) contains no more than 10% alcohol by volume or 8% by weight; and

(D) originates from a container that has the alcohol by volume percentage on the front label and in a font that measures at least three millimeters high.

(c) A retail licensee that dispenses spirituous liquor that is a secondary flavoring ingredient shall:

(i) designate a location where the retail licensee stores secondary flavoring ingredients on the floor plan the retail licensee submits to the department; and

(ii) clearly and conspicuously label each secondary flavoring ingredient's container "flavorings."

(d)

(i) A patron may have no more than 2.5 ounces of spirituous liquor at a time.

(ii) Subsection (1)(d)(i) does not apply to a beverage described in Subsection (1)(b)(iv).

(2)

(a)

(i) A retail licensee may sell, offer for sale, or furnish wine by the glass or in an individual portion that does not exceed 5 ounces per glass or individual portion.

(ii) A retail licensee may sell, offer for sale, or furnish an individual portion of wine to a patron in more than one glass if the total amount of wine does not exceed 5 ounces.

(b)

(i) Except as provided in Subsection (6), a retail licensee may sell, offer for sale, or furnish wine in a container not exceeding 1.5 liters at a price fixed by the commission to a table of four or more persons.

(ii) Except as provided in Subsection (6), a retail licensee may sell, offer for sale, or furnish wine in a container not to exceed 750 milliliters at a price fixed by the commission to a table of less than four persons.

(c) Notwithstanding Subsections (2)(a) and (b), a retail licensee may sell, offer for sale, or furnish hard cider that contains no more than 5% of alcohol by volume in a sealed container not to exceed 16 ounces.

(3)

(a) Except as provided in Subsection (6), a retail licensee may sell, offer for sale, or furnish heavy beer in an original container at a price fixed by the commission, except that the original container may not exceed one liter.

(4) Except as provided in Subsection (6), a retail licensee may sell, offer for sale, or furnish a flavored malt beverage in an original container at a price fixed by the commission, except that the original container may not exceed one liter.

(5)

(a)

(i) Subject to Subsection (5)(a)(ii), a retail licensee may sell, offer for sale, or furnish beer for on-premise consumption:

(A) in an open original container; and

(B) in a container on draft.

(ii) A retail licensee may not sell, offer for sale, or furnish beer under Subsection (5)(a)(i):

(A) in a size of container that exceeds two liters; or

(B) to an individual patron in a size of container that exceeds one liter.

(b) A retail licensee may sell, offer for sale, or furnish beer for off-premise consumption:

(i) in a sealed container; and

(ii) in a size of container that does not exceed two liters.

(c) A retail licensee may sell, offer for sale, or furnish a flight of beer to an individual patron if the total amount of beer does not exceed 16 ounces.

(6) This section does not prohibit a retail licensee from rounding the price of liquor in accordance with Section 32B-2-213.

§ 32B-5-305 Pricing of alcoholic product -- Other charge.

(1) Except as provided in Section 32B-2-213, a retail licensee:

(a) may sell, offer for sale, or furnish liquor only at a price fixed by the commission; and

(b) may not sell an alcoholic product at a discount price on any date or at any time.

(2)

(a) A retail licensee may not sell, offer for sale, or furnish an alcoholic product at less than the cost of the alcoholic product to the retail licensee.

(b) A retail licensee may not sell, offer for sale, or furnish an alcoholic product at a special or reduced price that encourages overconsumption or intoxication.

(c) A retail licensee may not sell, offer for sale, or furnish an alcoholic product at a special or reduced price for only certain hours of the retail licensee's business day, such as a "happy hour."

(d) A retail licensee may not sell, offer for sale, or furnish more than one alcoholic product for the price of a single alcoholic product.

(e) A retail licensee may not sell, offer for sale, or furnish an indefinite or unlimited number of alcoholic products during a set period for a fixed price.

(f) A retail licensee may not engage in a promotion involving or offering a free alcoholic product to the general public.

(3) As authorized by commission rule, a retail licensee may charge a patron for providing:

(a) a service related to liquor purchased at the licensed premises; or

(b) wine service performed for wine carried in by a patron in accordance with Section 32B-5-307.

§ 32B-5-306 Purchasing or selling alcoholic product.

(1) A retail licensee may not sell, offer for sale, or furnish an alcoholic product to:

(a) a minor;

(b) a person actually, apparently, or obviously intoxicated;

(c) a known interdicted person; or

(d) a known habitual drunkard.

(2)

(a) A patron may only purchase an alcoholic product in the licensed premises of a retail licensee from and be served by an individual who is:

(i) staff of the retail licensee; and

(ii) designated and trained by the retail licensee to sell and serve an alcoholic product.

(b) An individual may sell, offer for sale, or furnish an alcoholic product to a patron only if the individual is:

(i) staff of the retail licensee; and

(ii) designated and trained by the retail licensee to sell and serve an alcoholic product.

(c) Notwithstanding Subsection (2)(a) or (b), a patron who purchases bottled wine from staff of the retail licensee or carries bottled wine onto the retail licensee's premises in accordance with Section 32B-5-307 may thereafter serve wine from the bottle to the patron or others at the patron's table.

(3) The following may not purchase an alcoholic product for a patron:

(a) a retail licensee; or

(b) staff of a retail licensee.

(4) After a retail licensee closes the retail licensee's business at the licensed premises, the retail licensee may transfer the retail licensee's inventory of alcoholic product from that premises to another premises licensed under this chapter that is owned by the same retail licensee.

§ 32B-5-307 Bringing alcoholic product onto or removing alcoholic product from premises.

(1) Except as provided in Subsections (3), (4), (6), and (7):

(a) an individual may not bring onto the licensed premises of a retail licensee an alcoholic product for on-premise consumption;

(b) a retail licensee may not allow a person to:

(i) bring onto licensed premises an alcoholic product for on-premise consumption; or

(ii) consume an alcoholic product brought onto the licensed premises by a person other than the retail licensee; and

(c) a retail licensee may not sell, offer for sale, or furnish an alcoholic product through a window or door to a location off the licensed premises or to a vehicular traffic area.

(2) Except as provided in Subsections (3), (4), (6), and (7) and Subsection 32B-4-415(5):

(a) an individual may not carry from the licensed premises of a retail licensee an open container that:

(i) is used primarily for drinking purposes; and

(ii) contains an alcoholic product;

(b) a retail licensee may not permit a patron to carry from the licensed premises an open container described in Subsection (2)(a); and

(c)

(i) an individual may not carry from the licensed premises of a retail licensee a sealed container of liquor that has been purchased from the retail licensee; and

(ii) a retail licensee may not permit a patron to carry from the licensed premises of the retail licensee a sealed container of liquor that has been purchased from the retail licensee.

(3)

(a) A patron may bring a bottled wine onto the premises of a retail licensee for on-premise consumption if:

(i) permitted by the retail licensee; and

(ii) the retail licensee is authorized to sell, offer for sale, or furnish wine.

(b) If a patron carries bottled wine onto the licensed premises of a retail licensee, the patron shall deliver the bottled wine to a server or other representative of the retail licensee upon entering the licensed premises.

(c) A retail licensee authorized to sell, offer for sale, or furnish wine, may provide a wine service for a bottled wine carried onto the licensed premises in accordance with this Subsection (3) or a bottled wine purchased at the licensed premises.

(d) A patron may remove from a licensed premises the unconsumed contents of a bottle of wine purchased at the licensed premises, or brought onto the licensed premises in accordance with this Subsection (3), only if before removal the bottle is recorked or recapped.

(4) Neither a patron nor a retail licensee violates this section if:

(a) the patron is in shared seating; and

(b) the patron purchased the patron's alcoholic beverage from a restaurant licensee whose licensed premises include the shared seating area the patron is in.

(5)

(a) A patron may carry from a retail licensee's licensed premises a sealed container of beer that has been purchased from the retail licensee.

(b) A retail licensee may permit a patron to carry from the retail licensee's licensed premises a sealed container of beer that has been purchased from the retail licensee.

(6) A patron may transport beer between the licensed areas of a facility with both an on-premise beer retailer license and an on-premise banquet license if the patron transports the beer to and from an area of each licensed premises:

(a) if the premises are contiguous; and

(b) where the consumption of beer is permitted.

(7) A patron may transport an alcoholic beverage from a bar establishment licensee to a restaurant licensee if:

(a) the bar establishment licensee is adjacent to the restaurant licensee;

(b) the distance between the bar and the restaurant licensee is no more than 35 feet;

(c) the bar establishment licensee and the restaurant licensee are under the same ownership;

(d) an employee of the bar establishment licensee escorts the patron to the restaurant licensee; and

(e) the patron does not enter, cross, or otherwise use a public walkway to transport the alcoholic beverage to the restaurant licensee.

§ 32B-5-308 Requirements on staff or others on premises -- Employing a minor.

(1) As used in this section, "straw test" means a technique used by staff of a retail licensee to taste liquor to ensure the quality, flavor, and alcohol content of the liquor by:

(a) dipping the straw into the liquor;

(b) removing the straw in a manner that a small amount of liquor remains in the straw; and

(c) tasting the small amount of liquor from the straw.

(2) Except as provided in Subsection (5), staff of a retail licensee, while on duty, may not:

(a) consume an alcoholic product; or

(b) be intoxicated.

(3)

(a) A retail licensee may not employ a minor to sell, offer for sale, furnish, or dispense an alcoholic product.

(b) Notwithstanding Subsection (3)(a), unless otherwise prohibited in the provisions related to the specific type of retail license, a retail licensee may employ a minor who is at least 16 years old to enter the sale at a cash register or other sales recording device.

(4) A full-service restaurant licensee, limited-service restaurant licensee, or beer-only restaurant licensee may employ a minor who is at least 16 years old to bus tables, including containers that contain an alcoholic product.

(5) A staff member of a retail licensee may conduct a straw test if the staff member is not a minor.

§ 32B-5-309 Ceasing operation.

(1) Except as provided in Subsection (8), a retail licensee may not close or cease operation for a period longer than 240 hours, unless:

(a) the retail licensee notifies the department in writing at least seven days before the day on which the retail licensee closes or ceases operation; and

(b) the closure or cessation of operation is first approved by the department.

(2) Notwithstanding Subsection (1), in the case of emergency closure, a retail licensee shall immediately notify the department by telephone.

(3)

(a) The department may authorize an initial closure or cessation of operation of a retail licensee for a period not to exceed 60 days.

(b) Upon written request of the retail licensee and a showing of good cause, the department may extend the initial period described in Subsection (3)(a) for a period not to exceed the greater of:

(i) 30 days; or

(ii) the number of days until the day on which the commission holds the commission's next regularly scheduled meeting.

(4) A closure or cessation of operation may not exceed the time limits described in Subsection (3) without commission approval.

(5) A notice required under this section shall include:

(a) the dates of closure or cessation of operation;

(b) the reason for the closure or cessation of operation; and

(c) the date on which the retail licensee will reopen or resume operation.

(6) If a retail licensee fails to provide notice and to obtain department approval before closure or cessation of operation, the commission may:

(a) suspend, revoke, or deem forfeited the retail license; or

(b) deem the unused portion of the retail license fee for the remainder of the retail license year forfeited.

(7) If a retail licensee fails to reopen or resume operation by the date approved under Subsections (3) and (4), the commission may:

(a) suspend, revoke, or deem forfeited the retail license; or

(b) deem the unused portion of the retail license fee for the remainder of the retail license year forfeited.

(8) This section does not apply to:

(a) an on-premise beer retailer who is not a tavern;

(b) an airport lounge licensee; or

(c) a hospitality amenity licensee.

(9) For purposes of this section, the department may not base a determination that a retail licensee has ceased operation solely upon the retail licensee's lack of sales.

§ 32B-5-311 Use of breathalyzers.

(1) As used in this section:

(a) "Breathalyzer" means:

(i) a device that uses electromechanical fuel cell sensor technology in the blood alcohol content testing process; or

(ii) a single-use, disposable alcohol breath tester that is cleared with the United States Food and Drug Administration as a Class 1 medical device with at least 99.8% accuracy and having a detection cut-off of 0.08 relative percent blood alcohol concentration.

(b) "Calibration" means the manual setting of specific levels on a breathalyzer by a person trained to reset the device to ensure as accurate results as possible.

(c)

(i) "Financial transaction card" means a card, code, or other means of access to a person's account issued to a person that allows the person to obtain, purchase, or receive goods, services, money, or anything else of value.

(ii) "Financial transaction card" includes:

(A) a credit card;

(B) a credit plate;

(C) a bank services card;

(D) a banking card;

(E) a check guarantee card;

(F) a debit card;

(G) a telephone credit card; or

(H) a device for access as defined in Section 7-16a-102.

(2) If a retail licensee voluntarily installs, or sells or otherwise provides, a breathalyzer on its premises:

(a) the breathalyzer may not store financial transaction card data or associate breathalyzer results with financial transaction card data;

(b) for a breathalyzer described in Subsection (1)(a)(i):

(i) the breathalyzer shall collect data that can be downloaded by a third-party that performs the calibration of the breathalyzer, except that the downloaded information may not be used for any purpose other than calibration;

(ii) the retail licensee shall ensure that a breathalyzer installed inside of the licensed premises is calibrated by a third-party the sooner of every:

(A) 30 days; or

(B) 300 uses;

(iii) the owner of the breathalyzer shall annually report to the department compliance with the calibration requirements of this section for the breathalyzer; and

(iv) the breathalyzer may be able to be shut down remotely; and

(c) the retail licensee shall post in a conspicuous location by the breathalyzer:

(i) a notice to the user of the breathalyzer that the timing of when a breathalyzer test is taken may affect the results of the breathalyzer test; and

(ii) a notice that states: "The National Transportation Safety Board has found that crash risk is consistently and significantly elevated by the time an individual reaches a blood alcohol content of 0.05."

(3) Data from a breathalyzer installed in the licensed premises of, or sold or otherwise provided by, a retail licensee may not be used for enforcement purposes.

(4) If a retail licensee or owner of the breathalyzer violates this section, the department may require the retail licensee to remove the installed breathalyzer described in Subsection (1)(a)(i) or not sell or otherwise provide a breathalyzer described in Subsection (1)(a)(ii).

Chapter 6 Specific Retail License Act

Part 1 General Provisions

§ 32B-6-101 Title.

This chapter is known as the "Specific Retail License Act."

§ 32B-6-102 Definitions.

Reserved

Part 2 Full-Service Restaurant License

§ 32B-6-201 Title.

This part is known as "Full-service Restaurant License."

§ 32B-6-202 Definitions.

As used in this part:

(1)

(a) "Dining area" means an area in the licensed premises of a full-service restaurant licensee that is primarily used for the service and consumption of food by one or more patrons.

(b) "Dining area" does not include a dispensing area.

(2)

(a) "Dispensing area" means an area in the licensed premises of a full-service restaurant licensee where a dispensing structure is located and that:

(i) is physically separated from the dining area and any waiting area by a structure or other barrier that prevents a patron seated in the dining area or a waiting area from viewing the dispensing of alcoholic product;

(ii) except as provided in Subsection (2)(b), measures at least 10 feet from the dining area and any waiting area to the nearest edge of the dispensing structure; or

(iii) is physically separated from the dining area and any waiting area by a permanent physical structure that complies with the provisions of Title 15A, State Construction and Fire Codes Act, and, to the extent allowed under Title 15A, State Construction and Fire Codes Act, measures:

(A) at least 42 inches high; and

(B) at least 60 inches from the inside edge of the barrier to the nearest edge of the dispensing structure.

(b) "Dispensing area" does not include any area described in Subsection (2)(a)(ii) that is less than 10 feet from an area where alcoholic product is dispensed, but from which a patron seated at a table or counter cannot view the dispensing of alcoholic product.

(3) "Small full-service restaurant licensee" means a converted full-service restaurant licensee as defined in Section 32B-6-404.1 or a full-service restaurant licensee that has a grandfathered bar structure, whose dispensing area includes more than 45% of the available seating for patrons on the licensed premises, excluding outdoor seating:

(a) when measured in accordance with Subsection (2)(a)(ii); and

(b) based on the licensee's floor plan on file with the department on July 1, 2017.

(4) "Waiting area" includes a lobby.

§ 32B-6-203 Commission's power to issue full-service restaurant license.

(1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product on the person's premises as a full-service restaurant, the person shall first obtain a full-service restaurant license from the commission in accordance with this part.

(2) The commission may issue a full-service restaurant license to establish full-service restaurant licensed premises at places and in numbers the commission considers proper for the storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises operated as a full-service restaurant.

(3) Subject to Section 32B-1-201:

(a) the commission may not issue a total number of full-service restaurant licenses that at any time exceeds the sum of:

(i) 30; and

(ii) the number determined by dividing the population of the state by:

(A) before July 1, 2024, 4,467;

(B) in fiscal year 2025, 4,281;

(C) in fiscal year 2026, 4,095;

(D) in fiscal year 2027, 3,909;

(E) in fiscal year 2028, 3,723;

(F) in fiscal year 2029, 3,537;

(G) in fiscal year 2030, 3,351; and

(H) in fiscal year 2031, and in each fiscal year thereafter, 3,167;

(b) the commission may issue a seasonal full-service restaurant license in accordance with Section 32B-5-206; and

(c)

(i) if the location, design, and construction of a hotel may require more than one full-service restaurant sales location within the hotel to serve the public convenience, the commission may authorize the sale, offer for sale, or furnishing of an alcoholic product at as many as three full-service restaurant locations within the hotel under one full-service restaurant license if:

(A) the hotel has a minimum of 150 guest rooms; and

(B) the locations under the full-service restaurant license are:

(I) within the same hotel; and

(II) on premises that are managed or operated, and owned or leased, by the full-service restaurant licensee; and

(ii) except for a hotel, a facility shall have a separate full-service restaurant license for each full-service restaurant where an alcoholic product is sold, offered for sale, or furnished.

(4) Except as otherwise provided in Section 32B-1-202, the commission may not issue a full-service restaurant license for premises that do not meet the proximity requirements of Subsection 32B-1-202(2).

(5)

(a) To be licensed as a full-service restaurant, a person shall maintain at least 70% of the person's gross revenues from the sale of food.

(b) A person complies with Subsection (5)(a) if the percentage calculated by dividing the person's annual markup cost by the sum of the person's annual gross revenues from food sales and the person's annual markup cost does not exceed 30%.

§ 32B-6-204 Specific licensing requirements for full-service restaurant license.

(1) To obtain a full-service restaurant license a person shall comply with Chapter 5, Part 2, Retail Licensing Process.

(2)

(a) A full-service restaurant license expires on October 31 of each year.

(b) To renew a person's full-service restaurant license, a person shall comply with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.

(3)

(a) The nonrefundable application fee for a full-service restaurant license is $330.

(b)

(i) The initial license fee for a full-service restaurant license is $2,200.

(ii) The department shall prorate the $2,200 initial license fee for the period that begins the day on which the initial license fee is paid and ends the day on which the full-service restaurant license expires.

(c) The renewal fee for a full-service restaurant license is $1,650.

(4) The bond amount required for a full-service restaurant license is the penal sum of $10,000.

§ 32B-6-205.2 Specific operational requirements for a full-service restaurant license -- On and after July 1, 2018, or July 1, 2022.

(1)

(a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational Requirements, a full-service restaurant licensee and staff of the full-service restaurant licensee shall comply with this section.

(b) Failure to comply with Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a full-service restaurant licensee;

(ii) individual staff of a full-service restaurant licensee; or

(iii) both a full-service restaurant licensee and staff of the full-service restaurant licensee.

(2)

(a) An individual who serves an alcoholic product in a full-service restaurant licensee's premises shall make a beverage tab for each table or group that orders or consumes an alcoholic product on the premises.

(b) A beverage tab described in this Subsection (2) shall state the type and amount of each alcoholic product ordered or consumed.

(3) A full-service restaurant licensee may not make an individual's willingness to serve an alcoholic product a condition of employment with a full-service restaurant licensee.

(4)

(a) A full-service restaurant licensee may sell, offer for sale, or furnish liquor at the licensed premises during the following time periods only:

(i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or

(ii) on a weekend or a state or federal legal holiday or for a private event, during the period that begins at 10:30 a.m. and ends at 11:59 p.m.

(b) A full-service restaurant licensee may sell, offer for sale, or furnish beer at the licensed premises during the following time periods only:

(i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or

(ii) on a weekend or a state or federal legal holiday or for a private event, during the period that begins at 10:30 a.m. and ends at 12:59 a.m.

(5)

(a) A full-service restaurant licensee may not furnish an alcoholic product for on-premise consumption except after:

(i) the patron to whom the full-service restaurant licensee furnishes the alcoholic product is seated at:

(A) a table that is located in a dining area or a dispensing area;

(B) a counter that is located in a dining area or a dispensing area; or

(C) a dispensing structure that is located in a dispensing area; and

(ii) the full-service restaurant licensee confirms that the patron intends to:

(A) order food prepared, sold, and furnished at the licensed premises; and

(B) except as provided in Subsection (5)(b), consume the food at the same location where the patron is seated and furnished the alcoholic product.

(b)

(i) While a patron waits for a seat at a table or counter in the dining area of a full-service restaurant licensee, the full-service restaurant licensee may sell, offer for sale, or furnish to the patron one drink that contains a single portion of an alcoholic product as described in Section 32B-5-304 if:

(A) the patron is in a dispensing area and seated at a table, counter, or dispensing structure; and

(B) the full-service restaurant licensee first confirms that after the patron is seated in the dining area, the patron intends to order food prepared, sold, and furnished at the licensed premises.

(ii)

(A) Subject to Subsection (5)(b)(ii)(B), if the patron does not finish the patron's alcoholic product before moving to a seat in the dining area, the patron may transport any unfinished portion of the patron's alcoholic product to the patron's seat in the dining area.

(B) An employee of the full-service restaurant licensee shall escort a patron who transports an unfinished portion of the patron's alcoholic product to the patron's seat in the dining area.

(iii) For purposes of Subsection (5)(b)(i) a single portion of wine is five ounces or less.

(c) Notwithstanding Section 32B-5-307, a full-service restaurant licensee may not furnish beer for off-premise consumption except after the patron consumes on the licensed premises food prepared, sold, and furnished at the licensed premises.

(d) A full-service restaurant licensee shall maintain on the licensed premises adequate culinary facilities for food preparation and dining accommodations.

(6) A patron may consume an alcoholic product on the full-service restaurant licensee's licensed premises only if the patron is seated at:

(a) a table that is located in a dining area or dispensing area;

(b) a counter that is located in a dining area or dispensing area; or

(c) a dispensing structure located in a dispensing area.

(7)

(a) Subject to the other provisions of this Subsection (7), a patron may not have more than two alcoholic products of any kind at a time before the patron.

(b) A patron may not have more than one spirituous liquor drink at a time before the patron.

(c) An individual portion of wine is considered to be one alcoholic product under Subsection (7)(a).

(8) In accordance with the provisions of this section, an individual who is at least 21 years old may consume food and beverages in a dispensing area.

(9)

(a) Except as provided in Subsection (9)(b), a minor may not sit, remain, or consume food or beverages in a dispensing area.

(b)

(i) A minor may be in a dispensing area if the minor is:

(A) at least 16 years old and working as an employee of the full-service restaurant licensee; or

(B) performing maintenance and cleaning services as an employee of the full-service restaurant licensee when the full-service restaurant licensee is not open for business.

(ii) If there is no alternative route available, a minor may momentarily pass through a dispensing area without remaining or sitting in the dispensing area en route to an area of the full-service restaurant licensee's premises in which the minor is permitted to be.

(10) Except as provided in Subsection 32B-5-307(3), a full-service restaurant licensee may dispense an alcoholic product only if:

(a) the alcoholic product is dispensed from:

(i) a dispensing structure that is located in a dispensing area;

(ii) an area that is:

(A) separated from an area for the consumption of food by a patron by a solid, translucent, permanent structural barrier such that the facilities for the dispensing of an alcoholic product are not readily visible to a patron and not accessible by a patron; and

(B) apart from an area used for dining, for staging, or as a waiting area; or

(iii) the premises of a bar licensee that is:

(A) owned by the same person or persons as the full-service restaurant licensee; and

(B) located immediately adjacent to the premises of the full-service restaurant licensee; and

(b) any instrument or equipment used to dispense alcoholic product is located in an area described in Subsection (10)(a).

(11)

(a) A full-service restaurant licensee may have more than one dispensing area in the licensed premises.

(b) Each dispensing area in a licensed premises may satisfy the requirements for a dispensing area under Subsection 32B-6-202(2)(a)(i), (ii), or (iii), regardless of how any other dispensing area in the licensed premises satisfies the requirements for a dispensing area.

(12) A full-service restaurant licensee may not:

(a) transfer, dispense, or serve an alcoholic product on or from a movable cart; or

(b) display an alcoholic product or a product intended to appear like an alcoholic product by moving a cart or similar device around the licensed premises.

(13) A full-service restaurant licensee may state in a food or alcoholic product menu a charge or fee made in connection with the sale, service, or consumption of liquor, including:

(a) a set-up charge;

(b) a service charge; or

(c) a chilling fee.

(14)

(a) In addition to the requirements described in Section 32B-5-302, a full-service restaurant licensee shall maintain each of the following records for at least three years:

(i) a record required by Subsection 32B-5-302(1); and

(ii) a record that the commission requires a full-service restaurant licensee to use or maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(b) The department shall audit the records of a full-service restaurant licensee at least once annually.

(15) A full-service restaurant licensee may lease to a patron of the full-service restaurant licensee a locked storage space:

(a) that the commission considers proper for the storage of wine; and

(b) for the storage of wine that:

(i) the patron purchases from the full-service restaurant licensee; and

(ii) only the full-service restaurant licensee or staff of the full-service restaurant licensee may remove from the locker for the patron's use in accordance with this title, including:

(A) service and consumption on licensed premises as described in Section 32B-5-306; or

(B) removal from the full-service retail licensee's licensed premises in accordance with Section 32B-5-307.

§ 32B-6-205.4 Small full-service restaurant licensee -- Exemption.

(1) Notwithstanding the provisions of Section 32B-6-205.2 and subject to Subsection (2), a minor may sit, remain, or consume food or beverages in the dispensing area of a small full-service restaurant licensee if:

(a) seating in the dispensing area is the only seating available for patrons on the licensed premises;

(b) the minor is accompanied by an individual who is 21 years old or older; and

(c) the small full-service restaurant licensee applies for and obtains approval from the department to seat minors in the dispensing area in accordance with this section.

(2) A minor may not sit, remain, or consume food or beverages at a dispensing structure.

(3) The department shall:

(a) grant an approval described in Subsection (1)(c) if the small full-service restaurant licensee demonstrates that the small full-service restaurant licensee meets the requirements described in Subsection 32B-6-202(3); and

(b) for each application described in Subsection (1)(c) that the department receives on or before May 8, 2018, act on the application on or before July 1, 2018.

§ 32B-6-206 Master full-service restaurant license.

(1)

(a) The commission may issue a master full-service restaurant license that authorizes a person to store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product on premises at multiple locations as full-service restaurants if the person applying for the master full-service restaurant license:

(i) owns each of the full-service restaurants;

(ii) except for the fee requirements, establishes to the satisfaction of the commission that each location of a full-service restaurant under the master full-service restaurant license separately meets the requirements of this part; and

(iii) the master full-service restaurant license includes at least five full-service restaurant locations.

(b) The person seeking a master full-service restaurant license shall designate which full-service restaurant locations the person seeks to have under the master full-service restaurant license.

(c) A full-service restaurant location under a master full-service restaurant license is considered separately licensed for purposes of this title, except as provided in this section.

(2) A master full-service restaurant license and each location designated under Subsection (1) are considered a single full-service restaurant license for purposes of Subsection 32B-6-203(3)(a).

(3)

(a) A master full-service restaurant license expires on October 31 of each year.

(b) To renew a person's master full-service restaurant license, a person shall comply with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.

(4)

(a) The nonrefundable application fee for a master full-service restaurant license is $330.

(b)

(i) The initial license fee for a master full-service restaurant license is $5,000 plus a separate initial license fee for each newly licensed full-service restaurant location under the master full-service restaurant license determined in accordance with Subsection 32B-6-204(3)(b).

(ii) The department shall prorate the $5,000 initial license fee for the period that begins the day on which the initial license fee is paid and ends the day on which the master full-service restaurant license expires.

(c) To renew a master full-service restaurant license the master full-service restaurant licensee shall pay a separate renewal fee for each full-service restaurant location under the master full-service restaurant license in accordance with Subsection 32B-6-204(3)(c).

(5) A new location may be added to a master full-service restaurant license after the master full-service restaurant license is issued if:

(a) the master full-service restaurant licensee pays a nonrefundable application fee of $330; and

(b) including payment of the initial license fee, the location separately meets the requirements of this part.

(6)

(a) A master full-service restaurant licensee shall notify the department of a change in the persons managing a location covered by a master full-service restaurant license:

(i) immediately, if the management personnel is not management personnel at a location covered by the master full-service restaurant licensee at the time of the change; or

(ii) within 30 days of the change, if the master full-service restaurant licensee is transferring management personnel from one location to another location covered by the master full-service restaurant licensee.

(b) A location covered by a master full-service restaurant license shall keep the location's own records on the location's premises so that the department may audit the records.

(c) A master full-service restaurant licensee may not transfer alcoholic products between different locations covered by the master full-service restaurant license.

(7) If there is a violation of this title at a location covered by a master full-service restaurant license, the violation may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(a) the single location under a master full-service restaurant license;

(b) individual staff of the location under the master full-service restaurant license; or

(c) a combination of persons or locations described in Subsections (7)(a) and (b).

(8) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish how a person may apply for a master full-service restaurant license under this section.

Part 3 Limited-Service Restaurant License

§ 32B-6-301 Title.

This part is known as "Limited-service Restaurant License."

§ 32B-6-302 Definitions.

As used in this part:

(1)

(a) "Dining area" means an area in the licensed premises of a limited-service restaurant licensee that is primarily used for the service and consumption of food by one or more patrons.

(b) "Dining area" does not include a dispensing area.

(2)

(a) "Dispensing area" means an area in the licensed premises of a limited-service restaurant licensee where a dispensing structure is located and that:

(i) is physically separated from the dining area and any waiting area by a structure or other barrier that prevents a patron seated in the dining area or a waiting area from viewing the dispensing of alcoholic product;

(ii) except as provided in Subsection (2)(b), measures at least 10 feet from the dining area and any waiting area to the nearest edge of the dispensing structure; or

(iii) is physically separated from the dining area and any waiting area by a permanent physical structure that complies with the provisions of Title 15A, State Construction and Fire Codes Act, and, to the extent allowed under Title 15A, State Construction and Fire Codes Act, measures:

(A) at least 42 inches high; and

(B) at least 60 inches from the inside edge of the barrier to the nearest edge of the dispensing structure.

(b) "Dispensing area" does not include any area described in Subsection (2)(a)(ii) that is less than 10 feet from an area where alcoholic product is dispensed, but from which a patron seated at a table or counter cannot view the dispensing of alcoholic product.

(3) "Small limited-service restaurant licensee" means a limited-service restaurant licensee whose dispensing area includes more than 45% of the available seating for patrons on the licensed premises, excluding outdoor seating:

(a) when measured in accordance with Subsection (2)(a)(ii); and

(b) based on the licensee's floor plan on file with the department on July 1, 2017.

(4) "Waiting area" includes a lobby.

§ 32B-6-303 Commission's power to issue limited-service restaurant license.

(1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of wine, heavy beer, or beer on its premises as a limited-service restaurant, the person shall first obtain a limited-service restaurant license from the commission in accordance with this part.

(2)

(a) The commission may issue a limited-service restaurant license to establish limited-service restaurant licensed premises at places and in numbers the commission considers proper for the storage, sale, offer for sale, furnishing, and consumption of wine, heavy beer, or beer on premises operated as a limited-service restaurant.

(b) A person may not sell, offer for sale, furnish, or allow the consumption of the following on the licensed premises of a limited-service restaurant licensee:

(i) spirituous liquor; or

(ii) a flavored malt beverage.

(3) Subject to Section 32B-1-201:

(a) The commission may not issue a total number of limited-service restaurant licenses that at any time exceeds the number determined by dividing the population of the state by 6,817.

(b) The commission may issue a seasonal limited-service restaurant license in accordance with Section 32B-5-206.

(c)

(i) If the location, design, and construction of a hotel may require more than one limited-service restaurant sales location within the hotel to serve the public convenience, the commission may authorize the sale of wine, heavy beer, and beer at as many as three limited-service restaurant locations within the hotel under one limited-service restaurant license if:

(A) the hotel has a minimum of 150 guest rooms; and

(B) the locations under the limited-service restaurant license are:

(I) within the same hotel; and

(II) on premises that are managed or operated, and owned or leased, by the limited-service restaurant licensee.

(ii) A facility other than a hotel shall have a separate limited-service restaurant license for each limited-service restaurant where wine, heavy beer, or beer is sold, offered for sale, or furnished.

(4) Except as otherwise provided in Section 32B-1-202, the commission may not issue a limited-service restaurant license for premises that do not meet the proximity requirements of Subsection 32B-1-202(2).

(5)

(a) To be licensed as a limited-service restaurant, a person shall maintain at least 70% of the person's gross revenues from the sale of food.

(b) A person complies with Subsection (5)(a) if the percentage calculated by dividing the person's annual markup cost by the sum of the person's annual gross revenues from food sales and the person's annual markup cost does not exceed 30%.

§ 32B-6-304 Specific licensing requirements for limited-service restaurant license.

(1) To obtain a limited-service restaurant license a person shall comply with Chapter 5, Part 2, Retail Licensing Process.

(2)

(a) A limited-service restaurant license expires on October 31 of each year.

(b) To renew a person's limited-service restaurant license, a person shall comply with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.

(3)

(a) The nonrefundable application fee for a limited-service restaurant license is $330.

(b)

(i) The initial license fee for a limited-service restaurant license is $1,275.

(ii) The department shall prorate the $1,275 initial license fee for the period that begins the day on which the initial license fee is paid and ends the day on which the limited-service restaurant license expires.

(c) The renewal fee for a limited-service restaurant license is $750.

(4) The bond amount required for a limited-service restaurant license is the penal sum of $5,000.

§ 32B-6-305.2 Specific operational requirements for a limited-service restaurant license -- On and after July 1, 2018, or July 1, 2022.

(1)

(a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational Requirements, a limited-service restaurant licensee and staff of the limited-service restaurant licensee shall comply with this section.

(b) Failure to comply with Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a limited-service restaurant licensee;

(ii) individual staff of a limited-service restaurant licensee; or

(iii) both a limited-service restaurant licensee and staff of the limited-service restaurant licensee.

(2)

(a) An individual who serves an alcoholic product in a limited-service restaurant licensee's premises shall make a beverage tab for each table or group that orders or consumes an alcoholic product on the premises.

(b) A beverage tab described in this Subsection (2) shall state the type and amount of each alcoholic product ordered or consumed.

(3) A limited-service restaurant licensee may not make an individual's willingness to serve an alcoholic product a condition of employment with a limited-service restaurant licensee.

(4)

(a) A limited-service restaurant licensee may sell, offer for sale, or furnish wine or heavy beer at the licensed premises during the following time periods only:

(i) on a weekday, during the period that begins at 11:30 a.m. and ends at 11:59 p.m.; or

(ii) on a weekend or a state or federal legal holiday or for a private event, during the period that begins at 10:30 a.m. and ends at 11:59 p.m.

(b) A limited-service restaurant licensee may sell, offer for sale, or furnish beer at the licensed premises during the following time periods only:

(i) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or

(ii) on a weekend or a state or federal legal holiday or for a private event, during the period that begins at 10:30 a.m. and ends at 12:59 a.m.

(5)

(a) A limited-service restaurant licensee may not furnish an alcoholic product for on-premise consumption except after:

(i) the patron to whom the limited-service restaurant licensee furnishes the alcoholic product is seated at:

(A) a table that is located in a dining area or a dispensing area;

(B) a counter that is located in a dining area or a dispensing area; or

(C) a dispensing structure that is located in a dispensing area; and

(ii) the limited-service restaurant licensee confirms that the patron intends to:

(A) order food prepared, sold, and furnished at the licensed premises; and

(B) except as provided in Subsection (5)(b), consume the food at the same location where the patron is seated and furnished the alcoholic product.

(b)

(i) While a patron waits for a seat at a table or counter in the dining area of a limited-service restaurant licensee, the limited-service restaurant licensee may sell, offer for sale, or furnish to the patron one drink that contains a single portion of an alcoholic product as described in Section 32B-5-304 if:

(A) the patron is in a dispensing area and seated at a table, counter, or dispensing structure; and

(B) the limited-service restaurant licensee first confirms that after the patron is seated in the dining area, the patron intends to order food prepared, sold, and furnished at the licensed premises.

(ii)

(A) Subject to Subsection (5)(b)(ii)(B), if the patron does not finish the patron's alcoholic product before moving to a seat in the dining area, the patron may transport any unfinished portion of the patron's alcoholic product to the patron's seat in the dining area.

(B) An employee of the limited-service restaurant licensee shall escort a patron who transports an unfinished portion of the patron's alcoholic product to the patron's seat in the dining area.

(iii) For purposes of Subsection (5)(b)(i) a single portion of wine is 5 ounces or less.

(c) Notwithstanding Section 32B-5-307, a limited-service restaurant licensee may not furnish beer for off-premise consumption except after the patron consumes on the licensed premises food prepared, sold, and furnished at the licensed premises.

(d) A limited-service restaurant licensee shall maintain on the licensed premises adequate culinary facilities for food preparation and dining accommodations.

(6) A patron may consume an alcoholic product on the limited-service restaurant licensee's licensed premises only if the patron is seated at:

(a) a table that is located in a dining area or a dispensing area;

(b) a counter that is located in a dining area or a dispensing area; or

(c) a dispensing structure located in a dispensing area.

(7)

(a) Subject to the other provisions of this Subsection (7), a patron may not have more than two alcoholic products of any kind at a time before the patron.

(b) An individual portion of wine is considered to be one alcoholic product under Subsection (7)(a).

(8) In accordance with the provisions of this section, an individual who is at least 21 years old may consume food and beverages in a dispensing area.

(9)

(a) Except as provided in Subsection (9)(b), a minor may not sit, remain, or consume food or beverages in a dispensing area.

(b)

(i) A minor may be in a dispensing area if the minor is:

(A) at least 16 years old and working as an employee of the limited-service restaurant licensee; or

(B) performing maintenance and cleaning services as an employee of the limited-service restaurant licensee when the limited-service restaurant licensee is not open for business.

(ii) If there is no alternative route available, a minor may momentarily pass through a dispensing area without remaining or sitting in the dispensing area en route to an area of the limited-service restaurant licensee's premises in which the minor is permitted to be.

(10) Except as provided in Subsection 32B-5-307(3), a limited-service restaurant licensee may dispense an alcoholic product only if:

(a) the alcoholic product is dispensed from:

(i) a dispensing structure that is located in a dispensing area;

(ii) an area that is:

(A) separated from an area for the consumption of food by a patron by a solid, translucent, permanent structural barrier such that the facilities for the dispensing of an alcoholic product are not readily visible to a patron and not accessible by a patron; and

(B) apart from an area used for dining, for staging, or as a waiting area; or

(iii) the premises of a bar licensee that is:

(A) owned by the same person or persons as the limited-service restaurant licensee; and

(B) located immediately adjacent to the premises of the limited-service restaurant licensee; and

(b) any instrument or equipment used to dispense alcoholic product is located in an area described in Subsection (10)(a).

(11)

(a) A limited-service restaurant licensee may have more than one dispensing area in the licensed premises.

(b) Each dispensing area in a licensed premises may satisfy the requirements for a dispensing area under Subsection 32B-6-202(2)(a)(i), (ii), or (iii), regardless of how any other dispensing area in the licensed premises satisfies the requirements for a dispensing area.

(12) A limited-service restaurant licensee may not:

(a) transfer, dispense, or serve an alcoholic product on or from a movable cart; or

(b) display an alcoholic product or a product intended to appear like an alcoholic product by moving a cart or similar device around the licensed premises.

(13) A limited-service restaurant licensee may state in a food or alcoholic product menu a charge or fee made in connection with the sale, service, or consumption of wine or heavy beer, including:

(a) a set-up charge;

(b) a service charge; or

(c) a chilling fee.

(14)

(a) In addition to the requirements described in Section 32B-5-302, a limited-service restaurant licensee shall maintain each of the following records for at least three years:

(i) a record required by Subsection 32B-5-302(1); and

(ii) a record that the commission requires a limited-service restaurant licensee to use or maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(b) The department shall audit the records of a limited-service restaurant licensee at least once each calendar year.

§ 32B-6-305.4 Small limited-service restaurant licensee -- Exemption.

(1) Notwithstanding the provisions of Section 32B-6-305.2 and subject to Subsection (2), a minor may sit, remain, or consume food or beverages in the dispensing area of a small limited-service restaurant licensee if:

(a) seating in the dispensing area is the only seating available for patrons on the licensed premises;

(b) the minor is accompanied by an individual who is 21 years of age or older; and

(c) the small limited-service restaurant licensee applies for and obtains approval from the department to seat minors in the dispensing area in accordance with this section.

(2) A minor may not sit, remain, or consume food or beverages at a dispensing structure.

(3) The department shall:

(a) grant an approval described in Subsection (1)(c) if the small limited-service restaurant licensee demonstrates that the small limited-service restaurant licensee meets the requirements described in Subsection 32B-6-302(3); and

(b) for each application described in Subsection (1)(c) that the department receives on or before May 8, 2018, act on the application on or before July 1, 2018.

§ 32B-6-306 Master limited-service restaurant license.

(1)

(a) The commission may issue a master limited-service restaurant license that authorizes a person to store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product on premises at multiple locations as limited-service restaurants if the person applying for the master limited-service restaurant license:

(i) owns each of the limited-service restaurants;

(ii) except for the fee requirements, establishes to the satisfaction of the commission that each location of a limited-service restaurant under the master limited-service restaurant license separately meets the requirements of this part; and

(iii) the master limited-service restaurant includes at least five limited-service restaurant locations.

(b) The person seeking a master limited-service restaurant license shall designate which limited-service restaurant locations the person seeks to have under the master limited-service restaurant license.

(c) A limited-service restaurant location under a master limited-service restaurant license is considered separately licensed for purposes of this title, except as provided in this section.

(2) A master limited-service restaurant license and each location under Subsection (1) are considered a single limited-service restaurant license for purposes of Subsection 32B-6-303(3)(a).

(3)

(a) A master limited-service restaurant license expires on October 31 of each year.

(b) To renew a person's master limited-service restaurant license, a person shall comply with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.

(4)

(a) The nonrefundable application fee for a master limited-service restaurant license is $330.

(b)

(i) The initial license fee for a master limited-service restaurant license is $5,000 plus a separate initial license fee for each newly licensed limited-service restaurant license under the master limited-service restaurant license determined in accordance with Subsection 32B-6-304(3)(b).

(ii) The department shall prorate the $5,000 initial license fee for the period that begins the day on which the initial license fee is paid and ends the day on which the master limited-service restaurant license expires.

(c) The renewal fee for a master limited-service restaurant license is $500 plus a separate renewal fee for each limited-service license under the master limited-service restaurant license determined in accordance with Subsection 32B-6-304(3)(c).

(5) A new location may be added to a master limited-service restaurant license after the master limited-service restaurant license is issued if:

(a) the master limited-service restaurant licensee pays a nonrefundable application fee of $330; and

(b) including payment of the initial license fee, the location separately meets the requirements of this part.

(6)

(a) A master limited-service restaurant licensee shall notify the department of a change in the persons managing a location covered by a master limited-service restaurant license:

(i) immediately, if the management personnel is not management personnel at a location covered by the master limited-service restaurant licensee at the time of the change; or

(ii) within 30 days of the change, if the master limited-service restaurant licensee is transferring management personnel from one location to another location covered by the master limited-service restaurant licensee.

(b) A location covered by a master limited-service restaurant license shall keep its own records on its premises so that the department may audit the records.

(c) A master limited-service restaurant licensee may not transfer alcoholic products between different locations covered by the master limited-service restaurant license.

(7)

(a) If there is a violation of this title at a location covered by a master limited-service restaurant license, the violation may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) the single location under a master limited-service restaurant license;

(ii) individual staff of the location under the master limited-service restaurant license; or

(iii) a combination of persons or locations described in Subsections (7)(a)(i) and (ii).

(b) In addition to disciplinary action under Subsection (7)(a), disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, may be taken against a master limited-service restaurant licensee or individual staff of the master limited-service restaurant licensee if during a period beginning on November 1 and ending October 31:

(i) at least 25% of the locations covered by the master limited-service restaurant license have been found by the commission to have committed a serious or grave violation of this title, as defined by rule made by the commission; or

(ii) at least 50% of the locations covered by the master limited-service restaurant license have been found by the commission to have violated this title.

(8) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish how a person may apply for a master limited-service restaurant license under this section.

Part 4 Bar Establishment License

§ 32B-6-401 Title.

This part is known as "Bar Establishment License."

§ 32B-6-402 Definitions.

Reserved

§ 32B-6-403 Commission's power to issue bar establishment license.

(1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product on the person's premises as a bar establishment licensee, the person shall first obtain a bar establishment license from the commission in accordance with this part.

(2) The commission may issue a bar establishment license to establish bar establishment licensed premises at places and in numbers the commission considers proper for the storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises operated by a bar establishment licensee.

(3) Subject to Section 32B-1-201:

(a) the commission may not issue a total number of bar establishment licenses that at any time exceeds the sum of:

(i) 15; and

(ii) the number determined by dividing the population of the state by:

(A) before fiscal July 1, 2024, 10,200;

(B) in fiscal year 2025, 9,778;

(C) in fiscal year 2026, 9,356;

(D) in fiscal year 2027, 8,934;

(E) in fiscal year 2028, 8,512;

(F) in fiscal year 2029, 8,090;

(G) in fiscal year 2030, 7,668; and

(H) in fiscal year 2031, and in each fiscal year thereafter, 7,246;

(b) the commission may issue a seasonal bar establishment license in accordance with Section 32B-5-206 to a bar licensee;

(c) the commission may authorize as many as three bar establishment license locations within a hotel under one bar establishment license if:

(i) the location, design, and construction of the hotel requires more than one bar license location within the hotel to serve the public convenience;

(ii) the hotel has a minimum of 150 guest rooms;

(iii) all locations under the bar establishment license are:

(A) within the same hotel; and

(B) on premises that are managed or operated, and owned or leased, by the bar establishment licensee;

(d) the commission may authorize up to five dispensing locations under one equity license if the locations under the equity license:

(i) are located on premises managed or operated, and owned or leased, by the equity licensee;

(ii) the locations are under the same leadership or management; and

(iii) an individual who is a member of at least one location that the equity licensee operates has access to all locations the equity licensee operates;

(e) except for a facility operating in accordance with Subsection (3)(d) or a hotel, a facility shall have a separate bar establishment license for each bar establishment license location where an alcoholic product is sold, offered for sale, or furnished;

(f) when a business establishment undergoes a change of ownership, the commission may issue a bar establishment license to the new owner of the business establishment notwithstanding that there is no bar establishment license available under Subsection (3)(a) if:

(i) the primary business activity at the business establishment before and after the change of ownership is not the sale, offer for sale, or furnishing of an alcoholic product;

(ii) before the change of ownership there are two or more licensed premises on the business establishment that operate under a retail license, with at least one of the retail licenses being a bar establishment license;

(iii) subject to Subsection (3)(g) the licensed premises of the bar establishment license issued under this Subsection (3)(f) is at the same location where the bar establishment license licensed premises was located before the change of ownership; and

(iv) the person who is the new owner of the business establishment qualifies for the bar establishment license, except for there being no bar establishment license available under Subsection (3)(a); and

(g) if a bar establishment licensee of a bar establishment license issued under Subsection (3)(f) requests a change of location, the bar establishment licensee may retain the bar establishment license after the change of location only if on the day on which the bar establishment licensee seeks a change of location a bar establishment license is available under Subsection (3)(a).

§ 32B-6-404 Types of bar license.

(1) To obtain an equity license, in addition to meeting the other requirements of this part, a person shall:

(a) whether incorporated or unincorporated:

(i) be organized and operated solely for a social, recreational, patriotic, or fraternal purpose;

(ii) have members;

(iii) limit access to its licensed premises to a member or a guest of the member; and

(iv) desire to maintain premises upon which an alcoholic product may be stored, sold to, offered for sale to, furnished to, and consumed by a member or a guest of a member;

(b) except as provided in Subsection (8), own, maintain, or operate a substantial recreational facility in conjunction with a club house such as:

(i) a golf course; or

(ii) a tennis facility;

(c) have at least 50% of the total membership having an equal share of the equity of the entity or a right to redemption or refund at the equal value; and

(d) if there is more than one class of membership, have at least one class of membership that entitles each member in that class to an equal share of the equity of the entity or a right to redemption or refund at the equal value.

(2) To obtain a fraternal license, in addition to meeting the other requirements of this part, a person shall:

(a) whether incorporated or unincorporated:

(i) be organized and operated solely for a social, recreational, patriotic, or fraternal purpose;

(ii) have members;

(iii) limit access to its licensed premises to a member or a guest of the member; and

(iv) desire to maintain premises upon which an alcoholic product may be stored, sold to, offered for sale to, furnished to, and consumed by a member or a guest of a member;

(b) have no capital stock;

(c) exist solely for:

(i) the benefit of its members and their beneficiaries; and

(ii) a lawful social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic, or religious purpose for the benefit of its members or the public, carried on through voluntary activity of its members in their local lodges;

(d) have a representative form of government;

(e) have a lodge system in which:

(i) there is a supreme governing body;

(ii) subordinate to the supreme governing body are local lodges, however designated, into which individuals are admitted as members in accordance with the laws of the fraternal;

(iii) the local lodges are required by the laws of the fraternal to hold regular meetings at least monthly; and

(iv) the local lodges regularly engage in one or more programs involving member participation to implement the purposes of Subsection (2)(c); and

(f) own or lease a building or space in a building used for lodge activities.

(3) To obtain a dining club license, in addition to meeting the other requirements of this part, a person shall:

(a) maintain at least the following percentages of its total club business from the sale of food, not including mix for alcoholic products, or service charges:

(i) for a dining club license that is issued as an original license on or after July 1, 2011, 60%; and

(ii) for a dining club license that is issued on or before June 30, 2011:

(A) 50% on or before June 30, 2012; and

(B) 60% on and after July 1, 2012; and

(b) obtain a determination by the commission that the person will operate as a dining club licensee, as part of which the commission may consider:

(i) the square footage and seating capacity of the premises;

(ii) what portion of the square footage and seating capacity will be used for a dining area in comparison to the portion that will be used as a lounge or bar area;

(iii) whether full meals including appetizers, main courses, and desserts are served;

(iv) whether the person will maintain adequate on-premise culinary facilities to prepare full meals, except a person who is located on the premise of a hotel or resort facility may use the culinary facilities of the hotel or resort facility;

(v) whether the entertainment provided at the premises is suitable for minors; and

(vi) the club management's ability to manage and operate a dining club license including:

(A) management experience;

(B) past dining club licensee or restaurant management experience; and

(C) the type of management scheme used by the dining club license.

(4) To obtain a bar license, a person is required to meet the requirements of this part except those listed in Subsection (1), (2), or (3).

(5)

(a) At the time that the commission issues a bar establishment license, the commission shall designate the type of bar establishment license for which the person qualifies.

(b) If requested by a bar establishment licensee, the commission may approve a change in the type of bar establishment license in accordance with rules made by the commission.

(6) To the extent not prohibited by law, this part does not prevent a dining club licensee or bar licensee from restricting access to the licensed premises on the basis of an individual:

(a) paying a fee; or

(b) agreeing to being on a list of individuals who have access to the licensed premises.

(7)

(a)

(i) On or after July 1, 2017, the commission may not issue or renew a dining club license.

(ii) No later than July 1, 2018, the department shall convert each dining club license to a full-service restaurant license or a bar license in accordance with the provisions of this Subsection (7).

(b)

(i)

(A) A person licensed as a dining club on July 1, 2017, shall notify the department no later than May 31, 2018, whether the person elects to be licensed as a full-service restaurant or a bar.

(B) No later than July 1, 2018, the department shall convert a dining club license to a full-service restaurant license or a bar license in accordance with the dining club licensee's election under Subsection (7)(b)(i)(A).

(ii) If a dining club licensee fails to timely notify the department in accordance with Subsection (7)(b)(i), the dining club license is automatically converted to a full-service restaurant license on July 1, 2018.

(c) Subject to Section 32B-6-404.1, after a dining club license converts to a full-service restaurant license or a bar license, the retail licensee shall operate under the provisions that govern the full-service restaurant license or the bar license, as applicable.

(d) After a dining club license converts to a full-service restaurant license or a bar license in accordance with this Subsection (7):

(i) the full-service restaurant license is not considered in determining the total number of full-service restaurant licenses available under Section 32B-6-203; or

(ii) the bar license is not considered in determining the total number of bar establishment licenses available under Section 32B-6-403.

(e) Except as provided in Subsections (7)(a) and (b), before July 1, 2018, the commission may not issue a full-service restaurant license, a limited-service restaurant license, or a beer-only restaurant license to a person who holds a dining club license on May 9, 2017, for the same premises.

(f) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules establishing a procedure by which a dining club licensee elects and converts to a full-service restaurant licensee or a bar licensee under this Subsection (7).

(8) Subsection (1)(b) does not apply to a person who renews an equity license issued before January 1, 2020, if the person did not meet the requirements under Subsection (1)(b) at the time the equity license was issued.

§ 32B-6-405 Specific licensing requirements for bar establishment license.

(1) To obtain a bar establishment license, in addition to complying with Chapter 5, Part 2, Retail Licensing Process, a person shall submit with the written application:

(a)

(i) a statement as to whether the person is seeking to qualify as:

(A) an equity licensee;

(B) a fraternal licensee;

(C) a dining club licensee; or

(D) a bar licensee; and

(ii) evidence that the person meets the requirements for the type of bar establishment license for which the person is applying;

(b) evidence that the person operates a premises where a variety of food is prepared and served in connection with dining accommodations; and

(c) if the person is applying for an equity license or fraternal license, a copy of the entity's bylaws or house rules, and an amendment to those records.

(2) The commission may refuse to issue a bar establishment license to a person for an equity license or fraternal license if the commission determines that a provision of the person's bylaws or house rules, or amendments to those records is not:

(a) reasonable; and

(b) consistent with:

(i) the declared nature and purpose of the bar establishment licensee; and

(ii) the purposes of this part.

(3)

(a) A bar establishment license expires on June 30 of each year.

(b) To renew a bar establishment license, a person shall comply with the requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than May 31.

(4)

(a) The nonrefundable application fee for a bar establishment license is $300.

(b)

(i) The initial license fee for a bar establishment license is $2,750.

(ii) The department shall prorate the $2,750 initial license fee based on the number of months out of a year the bar establishment licensee is licensed before the day on which the bar establishment license expires.

(c) The renewal fee for a bar establishment license is $2,000.

(5) The bond amount required for a bar establishment license is the penal sum of $10,000.

§ 32B-6-406 Specific operational requirements for a bar establishment license.

(1)

(a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational Requirements, a bar establishment licensee and staff of the bar establishment licensee shall comply with this section.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a bar establishment licensee;

(ii) individual staff of a bar establishment licensee; or

(iii) both a bar establishment licensee and staff of the bar establishment licensee.

(2) In addition to complying with Subsection 32B-5-301(3), a bar licensee shall display in a conspicuous place at the entrance to the licensed premises a sign that:

(a) measures at least 8-1/2 inches long and 11 inches wide; and

(b) clearly states that the bar licensee is a bar and that no one under 21 years old is allowed.

(3)

(a) In addition to complying with Section 32B-5-302, a bar establishment licensee shall maintain for a minimum of three years:

(i) a record required by Subsection 32B-5-302(1); and

(ii) a record maintained or used by the bar establishment licensee, as the department requires.

(b) Section 32B-1-205 applies to a record required to be made, maintained, or used in accordance with this Subsection (3).

(c) The department shall audit the records of a bar establishment licensee at least once annually.

(4)

(a) A bar establishment licensee may not sell, offer for sale, or furnish liquor on the licensed premises on any day during a period that:

(i) begins at 1 a.m.; and

(ii) ends at 9:59 a.m.

(b) A bar establishment licensee may sell, offer for sale, or furnish beer during the hours specified in Part 7, On-Premise Beer Retailer License, for an on-premise beer retailer license.

(c)

(i) Notwithstanding Subsections (4)(a) and (b), a bar establishment licensee shall keep its licensed premises open for one hour after the bar establishment licensee ceases the sale and furnishing of an alcoholic product during which time a patron of the bar establishment licensee may finish consuming:

(A) a single drink containing spirituous liquor;

(B) except as provided in Subsection (4)(c)(i)(C), a single serving of wine not exceeding five ounces;

(C) a single serving not exceeding 16 ounces of hard cider that is furnished in a sealed container and contains no more than 5% of alcohol by volume;

(D) a single serving of heavy beer;

(E) a single serving not exceeding 26 ounces of beer; or

(F) a single serving of a flavored malt beverage.

(ii) A bar establishment licensee is not required to remain open:

(A) after all patrons have vacated the premises; or

(B) during an emergency.

(5)

(a) A minor:

(i) may not be admitted into, use, or be in the licensed premises of:

(A) a dining club licensee unless accompanied by an individual who is 21 years old or older; or

(B) a bar licensee, except to the extent provided for under Section 32B-6-406.1;

(ii) may only be admitted into, use, or be in the lounge or bar area of an equity licensee's or fraternal licensee's licensed premises:

(A) when accompanied by an individual who is 21 years old or older; and

(B) momentarily while en route to another area of the licensee's premises; and

(iii) may not remain or sit in the lounge or bar area of an equity licensee's or fraternal licensee's licensed premises.

(b) Notwithstanding Section 32B-5-308, a bar establishment licensee may not employ a minor to:

(i) work in a lounge or bar area of an equity licensee, fraternal licensee, or dining club licensee; or

(ii) handle an alcoholic product.

(c) Notwithstanding Section 32B-5-308, a minor may not be employed on the licensed premises of a bar licensee.

(d) Nothing in this part or Section 32B-5-308 precludes a local authority from being more restrictive of a minor's admittance to, use of, or presence on the licensed premises of a bar establishment licensee.

(6) A bar establishment licensee shall have food available at all times when an alcoholic product is sold, offered for sale, furnished, or consumed on the licensed premises.

(7)

(a) Subject to the other provisions of this Subsection (7), a patron may not have more than two alcoholic products of any kind at a time before the patron.

(b) A patron may not have two spirituous liquor drinks before the bar establishment licensee patron if one of the spirituous liquor drinks consists only of the primary spirituous liquor for the other spirituous liquor drink.

(c) An individual portion of wine is considered to be one alcoholic product under Subsection (7)(a).

(8) A bar establishment licensee shall have available on the premises for a patron to review at the time that the patron requests it, a written alcoholic product price list or a menu containing the price of an alcoholic product sold, offered for sale, or furnished by the bar establishment licensee including:

(a) a set-up charge;

(b) a service charge; or

(c) a chilling fee.

(9) Subject to Section 32B-5-309, a bar establishment licensee may not temporarily rent or otherwise temporarily lease its premises to a person unless:

(a) the person to whom the bar establishment licensee rents or leases the premises agrees in writing to comply with this title as if the person is the bar establishment licensee, except for a requirement related to making or maintaining a record; and

(b) the bar establishment licensee takes reasonable steps to ensure that the person complies with this section as provided in Subsection (9)(a).

(10) If a bar establishment licensee is an equity licensee or fraternal licensee, the bar establishment licensee shall comply with Section 32B-6-407.

(11) If a bar establishment licensee is a dining club licensee or bar licensee, the bar establishment licensee shall comply with Section 32B-1-407.

(12)

(a) A bar establishment licensee shall own or lease premises suitable for the bar establishment licensee's activities.

(b) A bar establishment licensee may not maintain licensed premises in a manner that barricades or conceals the bar establishment licensee's operation.

§ 32B-6-406.1 Specific operational restrictions related to dance or concert hall.

(1) A minor who is at least 18 years old may be admitted into, use, or be on the premises of a dance or concert hall if:

(a) the dance or concert hall is located:

(i) on the licensed premises of a bar licensee; or

(ii) on the property that immediately adjoins the licensed premises of and is operated by a bar licensee; and

(b) the bar licensee holds a permit to operate a dance or concert hall that was issued on or before May 11, 2009:

(i) on the basis of the operational requirements described in Subsection (2); and

(ii) when the bar licensee was licensed as a class D private club.

(2) A bar licensee that holds a dance or concert hall permit shall operate in such a way that:

(a) the bar licensee's lounge, dispensing structure, or other area for alcoholic product consumption is:

(i) not accessible to a minor;

(ii) clearly defined; and

(iii) separated from the dance or concert hall area by one or more walls, multiple floor levels, or other substantial physical barriers;

(b) a dispensing structure or area where alcoholic product is dispensed is not visible to a minor;

(c) consumption of an alcoholic product may not occur in:

(i) the dance or concert hall area; or

(ii) an area of the bar license premises accessible to a minor;

(d) the bar licensee maintains sufficient security personnel to prevent the passing of beverages from the bar licensee's lounge, dispensing structure, or other area for alcoholic product consumption to:

(i) the dance or concert hall area; or

(ii) an area of the bar licensee premises accessible to a minor;

(e) there are one or more separate entrances, exits, and restroom facilities from the bar licensee's lounge, dispensing structure, or other area for alcoholic product consumption than for:

(i) the dance or concert hall area; or

(ii) an area accessible to a minor; and

(f) the bar licensee complies with any other requirements imposed by the commission by rule.

(3)

(a) A minor under 18 years old who is accompanied at all times by a parent or legal guardian may be admitted into, use, or be on the premises of a concert hall described in Subsection (1) if:

(i) the requirements of Subsection (2) are met; and

(ii) signage, product, and dispensing equipment containing recognition of an alcoholic product is not visible to the minor.

(b) A minor under 18 years old but who is 14 years old or older who is not accompanied by a parent or legal guardian may be admitted into, use, or be on the premises of a concert hall described in Subsection (1) if:

(i) the requirements of Subsections (2) and (3)(a) are met; and

(ii) there is no alcoholic product, sales, furnishing, or consumption on the premises of the bar licensee.

(4) The commission may suspend or revoke a dance or concert permit issued to a bar licensee and suspend or revoke the license of the bar licensee if:

(a) the bar licensee fails to comply with the requirements in this section;

(b) the bar licensee sells, offers for sale, or furnishes an alcoholic product to a minor;

(c) the bar licensee or a supervisory or managerial level staff of the bar licensee is convicted of an offense described in Title 58, Chapter 37, Controlled Substances, or Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances, or an offense described in a statute previously in effect in this state that is the same or substantially the same as a conviction for an offense described in Title 58, Chapter 37, Controlled Substances, or Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances, on the basis of an activity that occurs on:

(i) the licensed premises; or

(ii) the dance or concert hall that is located on property that immediately adjoins the licensed premises of and is operated by the bar licensee;

(d) there are three or more convictions of patrons of the bar licensee for an offense described in Title 58, Chapter 37, Controlled Substances, or Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances, or an offense described in a statute previously in effect in this state that is the same or substantially the same as a conviction for an offense described in Title 58, Chapter 37, Controlled Substances, or Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances, on the basis of activities that occur on:

(i) the licensed premises; or

(ii) the dance or concert hall that is located on property that immediately adjoins the licensed premises of and is operated by the bar licensee;

(iii) there is more than one conviction:

(A) of:

(I) the bar licensee;

(II) staff of the bar licensee;

(III) an entertainer contracted by the bar licensee; or

(IV) a patron of the bar licensee; and

(B) made on the basis of a lewd act or lewd entertainment prohibited by this title that occurs on:

(I) the licensed premises; or

(II) the dance or concert hall that is located on property that immediately adjoins the licensed premises of and is operated by the bar licensee; or

(e) the commission finds acts or conduct contrary to the public welfare and morals involving lewd acts or lewd entertainment prohibited by this title that occurs on:

(i) the licensed premises; or

(ii) the dance or concert hall that is located on property that immediately adjoins the licensed premises of and is operated by the bar licensee.

(5) Nothing in this section prohibits a bar licensee from selling, offering for sale, or furnishing an alcoholic product in a dance or concert area located on the bar licensed premises on days and times when the bar licensee does not allow a minor into those areas.

§ 32B-6-407 Specific operational requirements for equity license or fraternal license.

(1) As used in this section, "equity or fraternal licensee" means an equity licensee or fraternal licensee.

(2)

(a) An equity or fraternal licensee shall have a governing body that:

(i) consists of three or more members of the equity or fraternal licensee; and

(ii) holds regular meetings to:

(A) review membership applications; and

(B) conduct other business as required by the bylaws or house rules of the equity or fraternal licensee.

(b)

(i) An equity or fraternal licensee shall maintain a minute book that is posted currently by the equity or fraternal licensee.

(ii) The minute book required by this Subsection (2) shall contain the minutes of a regular or special meeting of the governing body.

(3) An equity or fraternal licensee may admit an individual as a member only on written application signed by the person, subject to:

(a) the person paying an application fee; and

(b) investigation, vote, and approval of a quorum of the governing body.

(4) An equity or fraternal licensee shall:

(a) record an admission of a member in the official minutes of a regular meeting of the governing body; and

(b) whether approved or disapproved, file an application as a part of the official records of the equity or fraternal licensee.

(5) The spouse of a member of an equity or fraternal licensee has the rights and privileges of the member:

(a) to the extent permitted by the bylaws or house rules of the equity or fraternal licensee; and

(b) except to the extent restricted by this title.

(6) A minor child of a member of an equity or fraternal licensee has the rights and privileges of the member:

(a) to the extent permitted by the bylaws or house rules of the equity or fraternal licensee; and

(b) except to the extent restricted by this title.

(7) An equity or fraternal licensee shall maintain:

(a) a current and complete membership record showing:

(i) the date of application of a proposed member;

(ii) a member's address;

(iii) the date the governing body approved a member's admission;

(iv) the date initiation fees and dues are assessed and paid; and

(v) the serial number of the membership card issued to a member;

(b) a membership list; and

(c) a current record indicating when a member is removed as a member or resigns.

(8)

(a) An equity or fraternal licensee shall have bylaws or house rules that include provisions respecting the following:

(i) standards of eligibility for members;

(ii) limitation of members, consistent with the nature and purpose of the equity or fraternal licensee;

(iii) the period for which dues are paid, and the date upon which the period expires;

(iv) provisions for removing a member from the equity or fraternal licensee's membership for the nonpayment of dues or other cause;

(v) provisions for guests; and

(vi) application fees and membership dues.

(b) An equity or fraternal licensee shall maintain a current copy of the equity or fraternal licensee's current bylaws and current house rules.

(c) An equity or fraternal licensee shall maintain its bylaws or house rules, and any amendments to those records, on file with the department at all times.

(9) An equity or fraternal licensee may, in its discretion, allow an individual to be admitted to or use the licensed premises as a guest subject to the following conditions:

(a) the individual is allowed to use the equity or fraternal licensee premises only to the extent permitted by the equity or fraternal licensee's bylaws or house rules;

(b) the individual shall be previously authorized by a member of the equity or fraternal licensee who agrees to host the individual as a guest;

(c) the individual has only those privileges derived from the individual's host for the duration of the individual's visit to the equity or fraternal licensee premises; and

(d) an equity or fraternal licensee or staff of the equity or fraternal licensee may not enter into an agreement or arrangement with a member of the equity or fraternal licensee to indiscriminately host a member of the general public into the equity or fraternal licensee premises as a guest.

(10) Notwithstanding Subsection (9), an individual may be allowed as a guest in an equity or fraternal licensed premises without a host if:

(a)

(i) the equity or fraternal licensee is an equity licensee; and

(ii) the individual is a member of an equity licensee that has reciprocal guest privileges with the equity licensee for which the individual is a guest;

(b)

(i) the equity or fraternal licensee is a fraternal licensee; and

(ii) the individual is a member of the same fraternal organization as the fraternal licensee for which the individual is a guest; or

(c)

(i) the equity or fraternal licensee is a fraternal licensee that holds the fraternal license on July 1, 2013;

(ii) the equity or fraternal licensee's bylaws permit guests in the equity or fraternal licensed premises without a host except that a minor may not be admitted as a guest without a host; and

(iii) the equity or fraternal licensee maintains 60% of its total business from the sale of food, not including mix for alcoholic products, or service charges.

(11) Unless the patron is a member or guest, an equity or fraternal licensee may not:

(a) sell, offer for sale, or furnish an alcoholic product to the patron; or

(b) allow the patron to be admitted to or use the licensed premises.

(12) A minor may not be a member, officer, director, or trustee of an equity or fraternal licensee.

§ 32B-6-408 Information obtained by investigator.

(1) Subject to Subsection (2), if an investigator is permitted by another provision of this title to inspect a record of a bar establishment licensee, in addition to any other rights under this title, the investigator may inspect, have a copy of, or otherwise review any record of the bar establishment licensee that is a visual recording of the operations of the bar establishment licensee.

(2) An investigator who is a peace officer may not inspect, have a copy of, or otherwise review a visual recording described in Subsection (1) without probable cause.

Part 5 Airport Lounge License

§ 32B-6-501 Title.

This part is known as "Airport Lounge License."

§ 32B-6-502 Definitions.

As used in this chapter, "total passengers" means the number of total passengers in a calendar year that is reported in the most current comprehensive annual financial report for the airport in which an airport lounge is located.

§ 32B-6-503 Commission's power to issue airport lounge license.

(1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product on its premises as an airport lounge licensee, the person shall first obtain an airport lounge license from the commission in accordance with this part.

(2) Subject to Subsection (3), the commission may issue an airport lounge license:

(a) to establish airport lounge licensed premises beyond the security point at an international airport or a domestic airport; and

(b) in the numbers the commission considers proper for the storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on licensed premises operated as an airport lounge.

(3)

(a) The commission may not issue more than 26 airport lounge licenses for an international airport at any time.

(b) The commission may not issue a total number of domestic airport airport lounge licenses that at any time exceeds three.

§ 32B-6-504 Specific licensing requirements for airport lounge license.

(1) To obtain an airport lounge license, in addition to complying with Chapter 5, Part 2, Retail Licensing Process, a person shall submit with the written application:

(a) both the written consent of the local authority and the written consent of the airport authority; and

(b) a copy of the sign proposed to be used by the airport lounge licensee on its licensed premises to inform the public that alcoholic products are sold and consumed on the licensed premises.

(2)

(a) An airport lounge license expires on October 31 of each year.

(b) To renew a person's airport lounge license, a person shall comply with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.

(3)

(a) The nonrefundable application fee for an airport lounge license is $300.

(b)

(i) The initial license fee for an airport lounge license is $8,000.

(ii) The department shall prorate the $8,000 initial license fee for the period that begins the day on which the initial license fee is paid and ends the day on which the airport lounge license expires.

(c) The renewal fee for an airport lounge license is $6,000.

(4) The bond amount required for an airport lounge license is the penal sum of $10,000.

(5) An airport lounge license is not subject to the proximity requirements of Section 32B-1-202.

§ 32B-6-505 Specific operational requirements for an airport lounge license.

(1)

(a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational Requirements, an airport lounge licensee and staff of the airport lounge licensee shall comply with this section.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) an airport lounge licensee;

(ii) individual staff of an airport lounge licensee; or

(iii) both an airport lounge licensee and staff of the airport lounge licensee.

(2) In addition to complying with Subsection 32B-5-301(3), an airport lounge licensee shall display in a prominent place in the airport lounge:

(a) a list of the types and brand names of liquor being furnished through airport lounge licensee's calibrated metered dispensing system; and

(b) a sign to inform the public that alcoholic products are sold and consumed on the licensed premises.

(3) Notwithstanding Section 32B-5-307:

(a) An airport lounge licensee may not permit a patron to bring a bottled wine onto the premises of the retail licensee.

(b) An airport lounge licensee may not permit a patron to remove an alcoholic product from the licensed premises.

(4)

(a) A server of an alcoholic product in an airport lounge licensee's premises shall make a written beverage tab for each table or group that orders or consumes an alcoholic product on the premises.

(b) A beverage tab required by this Subsection (4) shall list the type and amount of an alcoholic product ordered or consumed.

(5) An airport lounge licensee may not sell, offer for sale, or furnish an alcoholic product at an airport lounge on any day during a period that:

(a) begins at midnight; and

(b) ends at 7:59 a.m.

(6)

(a) Subject to the other provisions of this Subsection (6), a patron may not have more than two alcoholic products of any kind at a time before the patron.

(b) A patron may not have two spirituous liquor drinks before the patron if one of the spirituous liquor drinks consists only of the primary spirituous liquor for the other spirituous liquor drink.

(c) An individual portion of wine is considered to be one alcoholic product under this Subsection (6).

(7) An airport lounge licensee may state in a food or alcoholic product menu a charge or fee made in connection with the sale, furnishing, or consumption of liquor menu including:

(a) a set-up charge;

(b) a service charge; or

(c) a chilling fee.

(8) An airport lounge liquor licensee's premises may not be leased for a private event.

Part 6 On-Premise Banquet License

§ 32B-6-601 Title.

This part is known as "On-premise Banquet License."

§ 32B-6-602 Definitions.

Reserved

§ 32B-6-603 Commission's power to issue on-premise banquet license -- Contracts as host.

(1)

(a) Before a person may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product in connection with the person's banquet and room service activities at one of the following, the person shall first obtain an on-premise banquet license in accordance with this part:

(i) a hotel;

(ii) a resort facility;

(iii) a sports center;

(iv) a convention center;

(v) a performing arts facility;

(vi) an arena;

(vii) a restaurant venue; or

(viii) an amphitheater.

(b) This part does not prohibit an alcoholic product on the premises of a person listed in Subsection (1)(a) to the extent otherwise permitted by this title.

(c) This section does not prohibit a person who applies for an on-premise banquet license to also apply for a package agency if otherwise qualified.

(2) The commission may issue an on-premise banquet license to establish on-premise banquet licensees in the numbers the commission considers proper for the storage, sale, offer for sale, furnishing, and consumption of an alcoholic product at a banquet or as part of room service activities operated by an on-premise banquet licensee.

(3) Subject to Section 32B-1-201, the commission:

(a) may not issue a total number of restaurant venue on-premise banquet licenses that at any time exceeds 25; and

(b) may not issue a total number of on-premise banquet licenses that at any time exceeds the number determined by dividing the population of the state by 28,765.

(4) Pursuant to a contract between the host of a banquet and an on-premise banquet licensee:

(a) the host of the banquet may request an on-premise banquet licensee to provide an alcoholic product served at the banquet; and

(b) an on-premise banquet licensee may provide an alcoholic product served at the banquet.

(5) At a banquet, an on-premise banquet licensee may furnish an alcoholic product:

(a) without charge to a patron at a banquet, except that the host of the banquet shall pay for an alcoholic product furnished at the banquet; or

(b) with a charge to a patron at the banquet.

(6) To be licensed as an on-premise banquet, a person shall maintain at least 50% of the person's total annual banquet gross receipts from the sale of food, which does not include:

(a) mix for an alcoholic product; or

(b) a charge in connection with the furnishing of an alcoholic product.

§ 32B-6-604 Specific licensing requirements for an on-premise banquet license.

(1) To obtain an on-premise banquet license a person shall comply with Chapter 5, Part 2, Retail Licensing Process.

(2)

(a) An on-premise banquet license expires on October 31 of each year.

(b) To renew a person's on-premise banquet license, a person shall comply with the requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.

(3)

(a) The nonrefundable application fee for an on-premise banquet license is $300.

(b)

(i) The initial license fee for an on-premise banquet license is $750.

(ii) The department shall prorate the $750 initial license fee for the period that begins the day on which the initial license fee is paid and ends the day on which the on-premise banquet license expires.

(c) The renewal fee for an on-premise banquet license is $750.

(4) The bond amount required for an on-premise banquet license is the penal sum of $10,000.

(5) Notwithstanding the other provisions of this part, if an applicant is a state agency or political subdivision of the state it is not required to:

(a) pay an application fee, initial license fee, or renewal fee;

(b) obtain the written consent of the local authority;

(c) submit a copy of the applicant's current business license; or

(d) post a bond as specified by Section 32B-5-204.

(6) Notwithstanding Subsection 32B-5-303(3), the department may approve one or more additional locations in accordance with Subsection (7), in or on the licensed premises of an on-premise banquet licensee from which the on-premise banquet licensee may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product that is not included in its original application only:

(a) upon proper application by an on-premise banquet licensee; and

(b) in accordance with guidelines approved by the commission.

(7) The department may approve one or more additional locations under Subsection (6), whether or not the locations are contiguous to one another or to the location included in the original application for the on-premise banquet licensee.

§ 32B-6-605 Specific operational requirements for on-premise banquet license.

(1)

(a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational Requirements, an on-premise banquet licensee and staff of the on-premise banquet licensee shall comply with this section.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) an on-premise banquet licensee;

(ii) individual staff of an on-premise banquet licensee; or

(iii) both an on-premise banquet licensee and staff of the on-premise banquet licensee.

(2) An on-premise banquet licensee shall comply with Subsections 32B-5-301(4) and (5) for the entire premises of the hotel, resort facility, sports center, convention center, performing arts facility, arena, restaurant venue, or amphitheater that is the basis for the on-premise banquet license.

(3)

(a) For the purpose described in Subsection (3)(b), an on-premise banquet licensee shall provide the department with advance notice of a scheduled banquet in accordance with rules made by the commission.

(b) Any of the following may conduct a random inspection of a banquet:

(i) an authorized representative of the commission or the department; or

(ii) a law enforcement officer.

(4)

(a) An on-premise banquet licensee is not subject to Subsection 32B-5-302(1), but shall make and maintain the records described in Subsection 32B-5-302(2) and the records the commission or department requires.

(b) Section 32B-1-205 applies to a record required to be made or maintained in accordance with this Subsection (4).

(5)

(a) Except as otherwise provided in this title, an on-premise banquet licensee may sell, offer for sale, or furnish an alcoholic product at a banquet only for consumption at the location of the banquet.

(b) Notwithstanding Section 32B-5-307 and except as otherwise provided in this title:

(i) a person at a banquet other than the on-premise banquet licensee or staff of the on-premise banquet licensee, may not remove an alcoholic product from the premises of the banquet; and

(ii) a patron at a banquet may not bring an alcoholic product into or onto the premises of the banquet.

(6)

(a) An on-premise banquet licensee may not leave an unsold alcoholic product at the banquet following the conclusion of the banquet.

(b) At the conclusion of a banquet, an on-premise banquet licensee shall:

(i) destroy an opened and unused alcoholic product that is not saleable, under conditions the department establishes; and

(ii) return to the on-premise banquet licensee's approved storage area any:

(A) opened and unused alcoholic product that is saleable; and

(B) unopened container of an alcoholic product.

(c) Except as provided in Subsection (6)(b) with regard to an open or sealed container of an alcoholic product not sold or consumed at a banquet, an on-premise banquet licensee:

(i) shall store the alcoholic product in the on-premise banquet licensee's approved storage area; and

(ii) may use the alcoholic product at more than one banquet.

(7) Notwithstanding Section 32B-5-308, an on-premise banquet licensee may not employ a minor to sell, furnish, or dispense an alcoholic product in connection with the on-premise banquet licensee's banquet and room service activities.

(8) An on-premise banquet licensee:

(a) may provide room service in portions described in Section 32B-5-304;

(b) may not sell, offer for sale, or furnish an alcoholic product at a banquet or in connection with room service any day during a period that:

(i) begins at 1 a.m.; and

(ii) ends at 9:59 a.m.; and

(c) notwithstanding Section 32B-5-305, may provide as room service one alcoholic product free of charge per guest reservation, per guest room, if the alcoholic product:

(i) is not a spirituous liquor; and

(ii) is in an unopened container not to exceed 750 milliliters.

(9)

(a) Subject to the other provisions of this Subsection (9), a patron may not have more than two alcoholic products of any kind at a time before the patron.

(b) A patron may not have more than one spirituous liquor drink at a time before the patron.

(c) An individual portion of wine is considered to be one alcoholic product under Subsection (9)(a).

(10)

(a) An on-premise banquet licensee shall supervise and direct a person involved in the sale, offer for sale, or furnishing of an alcoholic product.

(b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product shall complete an alcohol training and education seminar.

(11) A staff person of an on-premise banquet licensee shall remain at the banquet at all times when an alcoholic product is sold, offered for sale, furnished, or consumed at the banquet.

(12)

(a) Room service of an alcoholic product to a guest room or privately owned dwelling unit of a hotel or resort facility shall be provided in person by staff of an on-premise banquet licensee only to an adult guest in the guest room or privately owned dwelling unit.

(b) An alcoholic product may not be left outside a guest room or privately owned dwelling unit for retrieval by a guest or resident.

(13) An on-premise banquet licensee may not maintain a minibar.

Part 7 On-Premise Beer Retailer License

§ 32B-6-701 Title.

This part is known as "On-premise Beer Retailer License."

§ 32B-6-702 Definitions.

As used in this part:

(1) "Commission-approved activity" means a leisure activity that:

(a) the commission approves by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and

(b) does not involve the use of a dangerous weapon.

(2)

(a) "Recreational amenity" means:

(i) a billiard parlor;

(ii) a pool parlor;

(iii) a bowling facility;

(iv) a golf course;

(v) miniature golf;

(vi) a golf driving range;

(vii) a tennis club;

(viii) a sports facility that hosts professional sporting events and has a seating capacity equal to or greater than 2,500;

(ix) a concert venue that has a seating capacity equal to or greater than 2,500;

(x) one of the following if owned by a government agency:

(A) a convention center;

(B) a fair facility;

(C) an equestrian park;

(D) a theater; or

(E) a concert venue;

(xi) an amusement park:

(A) with one or more permanent amusement rides; and

(B) located on at least 50 acres;

(xii) a ski resort;

(xiii) a venue for live entertainment if the venue:

(A) is not regularly open for more than five hours on any day;

(B) is operated so that food is available whenever beer is sold, offered for sale, or furnished at the venue; and

(C) is operated so that no more than 15% of its total annual receipts are from the sale of beer;

(xiv) concessions operated within the boundary of a park administered by the:

(A) Division of State Parks; or

(B) National Parks Service;

(xv) a facility or venue that is a recreational amenity for a person licensed under this part before May 12, 2020;

(xvi) a venue for karaoke; or

(xvii) an enterprise developed around a commission-approved activity.

(b) "Recreational amenity" does not include an item described in Subsection (2)(a), if the item is tangential to an enterprise or activity that is not included in Subsection (2)(a).

§ 32B-6-703 Commission's power to issue on-premise beer retailer license.

(1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of beer on the premises as an on-premise beer retailer, the person shall first obtain an on-premise beer retailer license from the commission in accordance with this part.

(2)

(a) The commission may issue an on-premise beer retailer license to establish on-premise beer retailer licensed premises at places and in numbers as the commission considers proper for the storage, sale, offer for sale, furnishing, and consumption of beer on premises operated as an on-premise beer retailer.

(b) At the time that the commission issues an on-premise beer retailer license, the commission shall designate whether the on-premise beer retailer is a tavern.

(c) The commission may change its designation of whether an on-premise beer retailer is a tavern in accordance with rules made by the commission.

(d)

(i) In determining whether an on-premise beer retailer is a tavern, the commission shall determine whether the on-premise beer retailer will engage primarily in the retail sale of beer for consumption on the establishment's premises.

(ii) In making a determination under this Subsection (2)(d), the commission shall consider:

(A) whether the on-premise beer retailer will operate as one of the following:

(I) a beer bar;

(II) a parlor;

(III) a lounge;

(IV) a cabaret; or

(V) a nightclub;

(B) if the on-premise beer retailer will operate as described in Subsection (2)(d)(ii)(A):

(I) whether the on-premise beer retailer will sell food in the establishment; and

(II) if the on-premise beer retailer sells food, whether the revenue from the sale of beer will exceed the revenue of the sale of food;

(C) whether full meals including appetizers, main courses, and desserts will be served;

(D) the square footage and seating capacity of the premises;

(E) what portion of the square footage and seating capacity will be used for a dining area in comparison to the portion that will be used as a lounge or bar area;

(F) whether the person will maintain adequate on-premise culinary facilities to prepare full meals, except a person that is located on the premises of a hotel or resort facility may use the culinary facilities of the hotel or resort facility;

(G) whether the entertainment provided on the premises of the beer retailer will be suitable for minors; and

(H) the beer retailer management's ability to manage and operate an on-premise beer retailer license including:

(I) management experience;

(II) past beer retailer management experience; and

(III) the type of management scheme that will be used by the beer retailer.

(e)

(i) To be licensed as an on-premise beer retailer that is not a tavern, a person shall:

(A) own or operate a recreational amenity and maintain at least 70% of the person's total gross revenues from business directly related to the recreational amenity on or directly adjoining the licensed premises of the beer retailer, except that a person may include gross revenue from business directly related to a recreational amenity that is owned or operated by a political subdivision if the person has a contract meeting the requirements of Subsection (2)(e)(iii) with the political subdivision;

(B) own or operate a recreational amenity on or directly adjoining the licensed premises of the beer retailer and maintain at least 70% of the person's total gross revenues from the sale of food; or

(C) if the licensed premises of the on-premise beer retailer is on or directly adjoining a ski resort on January 1, 2021, obtain the consent of the ski resort to operate as an on-premise beer retailer that is not a tavern and maintain at least 70% of the person's total gross revenues from the sale of food.

(ii) The commission may not license a person as an on-premise beer retailer if the person does not:

(A) meet the requirements of Subsection (2)(e)(i); or

(B) operate as a tavern.

(iii) A contract described in Subsection (2)(e)(i)(A) shall:

(A) allow the beer retailer to include the total gross revenue from operations of the recreational amenity in the beer retailer's total gross receipts for purposes of Subsection (2)(e)(i)(A); and

(B) give the department the authority to audit financial information of the political subdivision to the extent necessary to confirm that the requirements of Subsection (2)(e)(i)(A) are met.

(3) Subject to Section 32B-1-201:

(a) the commission may not issue a total number of on-premise beer retailer licenses that are taverns that at any time exceeds the number determined by dividing the population of the state by 73,666; and

(b) the commission may issue a seasonal on-premise beer retailer license for a tavern in accordance with Section 32B-5-206.

(4)

(a) Unless otherwise provided in Subsection (4)(b):

(i) only one on-premise beer retailer license is required for each building or resort facility owned or leased by the same person; and

(ii) a separate license is not required for each retail beer dispensing location in the same building or on the same resort premises owned or operated by the same person.

(b)

(i) Subsection (4)(a) applies only if each retail beer dispensing location in the building or resort facility operates in the same manner.

(ii) If each retail beer dispensing location does not operate in the same manner:

(A) one on-premise beer retailer license designated as a tavern is required for the locations in the same building or on the same resort premises that operate as a tavern; and

(B) one on-premise beer retailer license is required for the locations in the same building or on the same resort premises that do not operate as a tavern.

§ 32B-6-704 Local authority to issue a license.

(1) A local authority may issue a license to operate as an on-premise beer retailer, subject to:

(a) the requirement under this part that a person obtain an on-premise beer retailer license issued by the commission to operate as an on-premise beer retailer; and

(b) subject to Title 11, Chapter 10, Business Allowing Consumption of Liquor on Premises.

(2) For a violation of this title, rules of the commission, or a local ordinance, a local authority may suspend or revoke a business license described in Subsection (1).

(3)

(a) If the commission suspends or revokes an on-premise beer retailer license issued by the commission under this title, the on-premise beer retailer may not continue to operate under a license issued by a local authority.

(b) If a local authority suspends or revokes a business license described in Subsection (1), an on-premise beer retailer may not continue to operate under the on-premise beer retailer license issued by the commission.

(4) A person issued a business license issued by a local authority as described in Subsection (1) shall comply with this title, including a provision related to the storage, sale, offer for sale, furnishing, consumption, warehousing, or distribution of beer.

§ 32B-6-705 Specific licensing requirements for on-premise beer retailer license.

(1) To obtain an on-premise beer retailer license a person shall comply with Chapter 5, Part 2, Retail Licensing Process, except that an on-premise beer retailer is required to carry dramshop insurance coverage in accordance with Section 32B-5-201 only if the on-premise beer retailer sells more than $5,000 of beer annually.

(2)

(a) An on-premise beer retailer license expires on the last day of February each year.

(b) To renew a person's on-premise beer retailer license, a person shall comply with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than January 31.

(3)

(a) The nonrefundable application fee for an on-premise beer retailer license is $300.

(b)

(i)

(A) The initial license fee for an on-premise beer retailer license that is not a tavern is $300.

(B) The department shall prorate the $300 initial license fee for the period that begins the day on which the initial license fee is paid and ends the day on which the on-premise beer retailer license expires.

(ii)

(A) The initial license fee for an on-premise beer retailer license that is a tavern is $1,500.

(B) The department shall prorate the $1,500 initial license fee for the period that begins the day on which the initial license fee is paid and ends the day on which the on-premise beer retailer license expires.

(c)

(i) The renewal fee for an on-premise beer retailer license that is not a tavern is $350.

(ii) The renewal fee for an on-premise beer retailer license that is a tavern is $1,250.

(4) The bond amount required for an on-premise beer retailer license is the penal sum of $5,000.

(5) Notwithstanding the other provisions of this part, if an applicant is a state agency or political subdivision of the state it is not required to:

(a) pay an application fee, initial license fee, or renewal fee;

(b) obtain the written consent of the local authority;

(c) submit a copy of the applicant's current business license; or

(d) post a bond as specified by Section 32B-5-204.

§ 32B-6-706 Specific operational requirements for on-premise beer retailer license.

(1)

(a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational Requirements, an on-premise beer retailer and staff of the on-premise beer retailer shall comply with this section.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) an on-premise beer retailer;

(ii) individual staff of an on-premise beer retailer; or

(iii) both an on-premise beer retailer and staff of the on-premise beer retailer.

(2)

(a) An on-premise beer retailer is not subject to Subsection 32B-5-302(1), but shall make and maintain the records described in Subsection 32B-5-302(2) and the records the department requires.

(b) Section 32B-1-205 applies to a record required to be made or maintained in accordance with this Subsection (2).

(3) Notwithstanding Section 32B-5-303, an on-premise beer retailer may not store or sell liquor on its licensed premises.

(4)

(a) An on-premise beer retailer may not sell, offer for sale, or furnish beer at the on-premise beer retailer's licensed premises during a period that:

(i) begins at 1 a.m.; and

(ii) ends at 9:59 a.m.

(b)

(i) Notwithstanding Subsection (4)(a), a tavern shall remain open for one hour after the tavern ceases the sale and furnishing of beer during which time a patron of the tavern may finish consuming a single serving of beer not exceeding 26 ounces.

(ii) A tavern is not required to remain open:

(A) after all patrons have vacated the premises; or

(B) during an emergency.

(5) Notwithstanding Section 32B-5-308, a minor may not be on the premises of a tavern.

(6)

(a)

(i) An on-premise beer retailer may not purchase, acquire, possess for the purpose of resale, or sell beer except beer that the on-premise beer retailer lawfully purchases from:

(A) a beer wholesaler licensee; or

(B) a small brewer that manufactures the beer.

(ii) Violation of Subsection (6)(a)(i) is a class A misdemeanor.

(b)

(i) If an on-premise beer retailer purchases beer under this Subsection (6) from a beer wholesaler licensee, the on-premise beer retailer shall purchase beer only from a beer wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area in which the on-premise beer retailer is located, unless an alternate wholesaler is authorized by the department to sell to the on-premise beer retailer as provided in Section 32B-13-301.

(ii) Violation of Subsection (6)(b)(i) is a class B misdemeanor.

(7) A tavern shall comply with Section 32B-1-407.

§ 32B-6-707 Application of part to other retail license type.

(1) A retail licensee who is not an on-premise beer retailer, but who sells, offers for sale, or furnishes beer pursuant to a different part under this chapter:

(a) may sell, offer for sale, or furnish beer without obtaining a separate on-premise beer retailer license from the commission; and

(b) shall comply with the operational requirements under this part that apply to an on-premise beer retailer, except when a requirement of this part is inconsistent with or less restrictive than an operational requirement under the relevant part under this chapter for the type of retail license.

(2) Failure of a retail licensee or staff of the retail licensee to comply with a requirement of this part may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(a) a retail licensee;

(b) individual staff of a retail licensee; or

(c) both a retail licensee and staff of the retail licensee.

§ 32B-6-708 Information obtained by investigator.

(1) Subject to Subsection (2), if an investigator is permitted by another provision of this title to inspect a record of an on-premise beer retailer that is a tavern, in addition to any other rights under this title, the investigator may inspect, have a copy of, or otherwise review any record of the tavern that is a visual recording of the operations of the tavern.

(2) An investigator who is a peace officer may not inspect, have a copy of, or otherwise review a visual recording described in Subsection (1) without probable cause.

Part 8 Reception Center License

§ 32B-6-801 Title.

This part is known as "Reception Center License."

§ 32B-6-802 Definitions.

Reserved

§ 32B-6-803 Commission's power to issue reception center license.

(1) Before a person may store, sell, offer for sale, or furnish an alcoholic product on the person's premises as a reception center, the person shall first obtain a reception center license from the commission in accordance with this part.

(2) The commission may issue a reception center license to establish reception center licensed premises at places and in numbers the commission considers proper for the storage, sale, offer for sale, furnishing, and consumption of an alcoholic product on premises operated as a reception center.

(3) Subject to Section 32B-1-201, the commission may not issue a total number of reception center licenses that at any time exceeds the sum of:

(a) a number determined by dividing the population of the state by 251,693; and

(b) four.

(4) The commission may not issue a reception center license for premises that do not meet the proximity requirements of Section 32B-1-202.

(5)

(a) To be licensed as a reception center, a person shall maintain at least 70% of the person's gross revenues from the sale of food.

(b) A person complies with Subsection (5)(a) if the percentage calculated by dividing the person's annual markup cost by the sum of the person's annual gross revenues from food sales and the person's annual markup cost does not exceed 30%.

§ 32B-6-804 Specific licensing requirements for reception center license.

(1) To obtain a reception center license a person shall comply with Chapter 5, Part 2, Retail Licensing Process.

(2)

(a) A reception center license expires on October 31 of each year.

(b) To renew a person's reception center license, a person shall comply with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.

(3)

(a) The nonrefundable application fee for a reception center license is $300.

(b)

(i) The initial license fee for a reception center license is $750.

(ii) The department shall prorate the $750 initial license fee for the period that begins the day on which the initial license fee is paid and ends the day on which the reception center license expires.

(c) The renewal fee for a reception center license is $750.

(4) The bond amount required for a reception center license is the penal sum of $10,000.

§ 32B-6-805 Specific operational requirements for a reception center license.

(1)

(a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational Requirements, a reception center licensee and staff of the reception center licensee shall comply with this section.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a reception center licensee;

(ii) individual staff of a reception center licensee; or

(iii) both a reception center licensee and staff of the reception center licensee.

(2) In addition to complying with Section 32B-5-303, a reception center licensee shall store an alcoholic product in a storage area described in Subsection (14)(a).

(3)

(a) For the purpose described in Subsection (3)(b), a reception center licensee shall provide the following with advance notice of a scheduled event in accordance with rules the commission makes:

(i) the department; and

(ii) the local law enforcement agency responsible for the enforcement of this title in the jurisdiction where the reception center is located.

(b) Any of the following may conduct a random inspection of an event:

(i) an authorized representative of the commission or the department; or

(ii) a law enforcement officer.

(4)

(a) Except as otherwise provided in this title, a reception center licensee may sell, offer for sale, or furnish an alcoholic product at an event only for consumption at the reception center's licensed premises.

(b) A host of an event, a patron, or a person other than the reception center licensee or staff of the reception center licensee, may not remove an alcoholic product from the reception center's licensed premises.

(c) Notwithstanding Section 32B-5-307, a patron at an event may not bring an alcoholic product into or onto, or remove an alcoholic product from, the reception center.

(5)

(a) A reception center licensee may not leave an unsold alcoholic product at an event following the conclusion of the event.

(b) At the conclusion of an event, a reception center licensee shall:

(i) destroy an opened and unused alcoholic product that is not saleable, under conditions the department establishes; and

(ii) return to the reception center licensee's approved storage area any:

(A) opened and unused alcoholic product that is saleable; and

(B) unopened container of an alcoholic product.

(c) Except as provided in Subsection (5)(b) with regard to an open or sealed container of an alcoholic product not sold or consumed at an event, a reception center licensee:

(i) shall store the alcoholic product in accordance with Subsection (2); and

(ii) may use the alcoholic product at more than one event.

(6) Notwithstanding Section 32B-5-308, a reception center licensee may not employ a minor in connection with an event at the reception center at which food is not made available.

(7) A person's willingness to serve an alcoholic product may not be made a condition of employment as a server with a reception center licensee.

(8) A reception center licensee may not sell, offer for sale, or furnish an alcoholic product at the licensed premises on any day during the period that:

(a) begins at 1 a.m.; and

(b) ends at 9:59 a.m.

(9) A reception center licensee may not sell, offer for sale, or furnish an alcoholic product at an event at which a minor is present unless the reception center licensee makes food available at all times when an alcoholic product is sold, offered for sale, furnished, or consumed during the event.

(10)

(a) Subject to the other provisions of this Subsection (10), a patron may not have more than two alcoholic products of any kind at a time before the patron.

(b) An individual portion of wine is considered to be one alcoholic product under Subsection (10)(a).

(11)

(a) A reception center licensee shall supervise and direct a person involved in the sale, offer for sale, or furnishing of an alcoholic product.

(b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product shall complete an alcohol training and education seminar.

(12) A staff person of a reception center licensee shall remain at an event at all times when an alcoholic product is sold, offered for sale, furnished, or consumed at the event.

(13) A reception center licensee may not sell, offer for sale, or furnish an alcoholic product to a patron, and a patron may not consume an alcoholic product at a bar structure.

(14) Except as provided in Subsection (15), a reception center licensee may dispense an alcoholic product only if:

(a) the alcoholic product is dispensed from an area that is:

(i) separated from an area for the consumption of food by a patron by a solid, translucent, permanent structural barrier such that the facilities for the storage or dispensing of an alcoholic product are:

(A) not readily visible to a patron; and

(B) not accessible by a patron; and

(ii) apart from an area used:

(A) for staging; or

(B) as a lobby or waiting area;

(b) the reception center licensee uses an alcoholic product that is:

(i) stored in an area described in Subsection (14)(a); or

(ii) in an area not described in Subsection (14)(a) on the licensed premises and:

(A) immediately before the alcoholic product is dispensed it is in an unopened container;

(B) the unopened container is taken to an area described in Subsection (14)(a) before it is opened; and

(C) once opened, the container is stored in an area described in Subsection (14)(a); and

(c) any instrument or equipment used to dispense an alcoholic product is located in an area described in Subsection (14)(a).

(15) A reception center licensee may dispense an alcoholic product from a mobile serving area that:

(a) is moved only by staff of the reception center licensee;

(b) is capable of being moved by only one individual; and

(c) is no larger than six feet long and 30 inches wide.

(16)

(a) A reception center licensee may not have an event on the licensed premises unless the event:

(i) is in accordance with a contract between a third party host of the event and the reception center licensee under which the reception center licensee provides an alcoholic product sold, offered for sale, or furnished at an event; or

(ii) is a private event.

(b) At an event, a reception center licensee may furnish an alcoholic product:

(i) without charge to a patron, except that the third party host of the event shall pay for an alcoholic product furnished at the event; or

(ii) with a charge to a patron at the event.

(c) The commission may by rule define what constitutes a "third-party host" for purposes of this Subsection (16) so that a reception center licensee and the third-party host are not owned by or operated by the same persons, except that the rule shall permit a reception center licensee to host an event for an immediate family member of the reception center licensee.

(17) A reception center licensee shall have culinary facilities that are:

(a) adequate to prepare a full meal; and

(b)

(i) located on the licensed premises; or

(ii) under the same control as the reception center licensee.

(18)

(a) Except as provided in Subsection (18)(b), a reception center licensee may not operate an event:

(i) that is open to the general public; and

(ii) at which an alcoholic product is sold or offered for sale.

(b) A reception center licensee may operate an event described in Subsection (18)(a) if the event is hosted:

(i) at the reception center no more frequently than once a calendar year; and

(ii) by a nonprofit organization that is organized and qualified under Section 501(c), Internal Revenue Code.

Part 9 Beer-Only Restaurant License

§ 32B-6-901 Title.

This part is known as "Beer-only Restaurant License."

§ 32B-6-902 Definitions.

(1) As used in this part:

(a)

(i) "Dining area" means an area in the licensed premises of a beer-only restaurant licensee that is primarily used for the service and consumption of food by one or more patrons.

(ii) "Dining area" does not include a dispensing area.

(b)

(i) "Dispensing area" means an area in the licensed premises of a beer-only restaurant licensee where a dispensing structure is located and that:

(A) is physically separated from the dining area and any waiting area by a structure or other barrier that prevents a patron seated in the dining area or a waiting area from viewing the dispensing of beer;

(B) except as provided in Subsection (1)(b)(ii), measures at least 10 feet from the dining area and any waiting area to the nearest edge of the dispensing structure; or

(C) is physically separated from the dining area and any waiting area by a permanent physical structure that complies with the provisions of Title 15A, State Construction and Fire Codes Act, and, to the extent allowed under Title 15A, State Construction and Fire Codes Act, measures at least 42 inches high, and at least 60 inches from the inside edge of the barrier to the nearest edge of the dispensing structure.

(ii) "Dispensing area" does not include any area described in Subsection (1)(b)(i)(B) that is less than 10 feet from an area where beer is dispensed, but from which a patron seated at a table or counter cannot view the dispensing of beer.

(c) "Small beer-only restaurant licensee" means a beer-only restaurant licensee whose dispensing area includes more than 45% of the available seating for patrons on the licensed premises, excluding outdoor seating:

(i) when measured in accordance with Subsection (1)(b)(i)(B); and

(ii) based on the licensee's floor plan on file with the department on July 1, 2017.

(d) "Waiting area" includes a lobby.

§ 32B-6-903 Commission's power to issue beer-only restaurant license.

(1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of beer on its premises as a beer-only restaurant, the person shall first obtain a beer-only restaurant license from the commission in accordance with this part.

(2)

(a) The commission may issue a beer-only restaurant license to establish beer-only restaurant licensed premises at places and in numbers the commission considers proper for the storage, sale, offer for sale, furnishing, and consumption of beer on premises operated as a beer-only restaurant.

(b) A person may not sell, offer for sale, furnish, or allow the consumption of liquor on the licensed premises of a beer-only restaurant licensee.

(3)

(a) Only one beer-only restaurant license is required for each building or resort facility owned or leased by the same person.

(b) A separate license is not required for each beer-only restaurant license dispensing location in the same building or on the same resort premises owned or operated by the same person.

(4) Except as otherwise provided in Section 32B-1-202, the commission may not issue a beer-only restaurant license for premises that do not meet the proximity requirements of Subsection 32B-1-202(2).

(5)

(a) To be licensed as a beer-only restaurant, a person shall maintain at least 70% of the person's gross revenues from the sale of food.

(b) A person complies with Subsection (5)(a) if the percentage calculated by dividing the person's annual markup cost by the sum of the person's annual gross revenues from food sales and the person's annual markup cost does not exceed 30%.

§ 32B-6-904 Specific licensing requirements for beer-only restaurant license.

(1) To obtain a beer-only restaurant license a person shall comply with Chapter 5, Part 2, Retail Licensing Process.

(2)

(a) A beer-only restaurant license expires the last day of February of each year.

(b) To renew a person's beer-only restaurant license, a person shall comply with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than January 31.

(3)

(a) The nonrefundable application fee for a beer-only restaurant license is $330.

(b)

(i) The initial license fee for a beer-only restaurant license is $825.

(ii) The department shall prorate the $825 initial license fee for the period that begins the day on which the initial license fee is paid and ends the day on which the beer-only restaurant license expires.

(c) The renewal fee for a beer-only restaurant license is $605.

(4) The bond amount required for a beer-only restaurant license is the penal sum of $5,000.

§ 32B-6-905.1 Specific operational requirements for a beer-only restaurant license -- On and after July 1, 2018, or July 1, 2022.

(1)

(a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational Requirements, a beer-only restaurant licensee and staff of the beer-only restaurant licensee shall comply with this section.

(b) Failure to comply with Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a beer-only restaurant licensee;

(ii) individual staff of a beer-only restaurant licensee; or

(iii) both a beer-only restaurant licensee and staff of the beer-only restaurant licensee.

(2)

(a) A beer-only restaurant licensee on the licensed premises may not sell, offer for sale, furnish, or allow consumption of liquor.

(b) Liquor may not be on the premises of a beer-only restaurant licensee except for use:

(i) as a flavoring on a dessert; or

(ii) in the preparation of a flaming food dish, drink, or dessert.

(3)

(a) An individual who serves beer in a beer-only restaurant licensee's premises shall make a beverage tab for each table or group that orders or consumes beer on the premises.

(b) A beverage tab described in this Subsection (3) shall state the type and amount of each beer ordered or consumed.

(4) A beer-only restaurant licensee may not make an individual's willingness to serve beer a condition of employment as a server with a beer-only restaurant licensee.

(5) A beer-only restaurant licensee may sell, offer for sale, or furnish beer at the licensed premises during the following time periods only:

(a) on a weekday, during the period that begins at 11:30 a.m. and ends at 12:59 a.m.; or

(b) on a weekend or a state or federal legal holiday or for a private event, during the period that begins at 10:30 a.m. and ends at 12:59 a.m.

(6)

(a) A beer-only restaurant licensee may not furnish beer for on-premise consumption except after:

(i) the patron to whom the beer-only restaurant licensee furnishes the beer is seated at:

(A) a table that is located in a dining area or a dispensing area;

(B) a counter that is located in a dining area or a dispensing area; or

(C) a dispensing structure that is located in a dispensing area; and

(ii) the beer-only restaurant licensee confirms that the patron intends to:

(A) order food prepared, sold, and furnished at the licensed premises; and

(B) except as provided in Subsection (6)(b), consume the food at the same location where the patron is seated and furnished the beer.

(b)

(i) While a patron waits for a seat at a table or counter in the dining area of a beer-only restaurant licensee, the beer-only restaurant licensee may sell, offer for sale, or furnish to the patron one portion of beer as described in Section 32B-5-304 if:

(A) the patron is in a dispensing area and seated at a table, counter, or dispensing structure; and

(B) the beer-only restaurant licensee first confirms that after the patron is seated in the dining area, the patron intends to order food prepared, sold, and furnished at the licensed premises.

(ii)

(A) Subject to Subsection (6)(b)(ii)(B), if the patron does not finish the patron's beer before moving to a seat in the dining area, the patron may transport any unfinished portion of the patron's beer to the patron's seat in the dining area.

(B) An employee of the beer-only restaurant licensee shall escort a patron who transports an unfinished portion of the patron's beer to the patron's seat in the dining area.

(c) Notwithstanding Section 32B-5-307, a beer-only restaurant licensee may not furnish beer for off-premise consumption except after the patron consumes on the licensed premises food prepared, sold, and furnished at the licensed premises.

(d) A beer-only restaurant licensee shall maintain on the licensed premises adequate culinary facilities for food preparation and dining accommodations.

(7) A patron may consume a beer on the beer-only licensee's licensed premises only at:

(a) a table that is located in a dining area or a dispensing area;

(b) a counter that is located in a dining area or a dispensing area; or

(c) a dispensing structure located in a dispensing area.

(8) A patron may not have more than two beers at a time before the patron.

(9) In accordance with the provisions of this section, an individual who is at least 21 years old may consume food and beverages in a dispensing area.

(10)

(a) Except as provided in Subsection (10)(b), a minor may not sit, remain, or consume food or beverages in a dispensing area.

(b)

(i) A minor may be in a dispensing area if the minor is:

(A) at least 16 years old and working as an employee of the beer-only restaurant licensee; or

(B) performing maintenance and cleaning services as an employee of the beer-only restaurant licensee when the beer-only restaurant licensee is not open for business.

(ii) If there is no alternative route available, a minor may momentarily pass through a dispensing area without remaining or sitting in the dispensing area en route to an area of the beer-only restaurant licensee's premises in which the minor is permitted to be.

(11) A beer-only restaurant licensee may dispense a beer only if:

(a) the beer is dispensed from:

(i) a dispensing structure that is located in a dispensing area;

(ii) an area that is:

(A) separated from an area for the consumption of food by a patron by a solid, translucent, permanent structural barrier such that the facilities for the dispensing of an alcoholic product are not readily visible to a patron and not accessible by a patron; and

(B) apart from an area used for dining, for staging, or as a waiting area; or

(iii) the premises of a bar licensee that is:

(A) owned by the same person or persons as the beer-only restaurant licensee; and

(B) located immediately adjacent to the premises of the beer-only restaurant licensee; and

(b) any instrument or equipment used to dispense the beer is located in an area described in Subsection (11)(a).

(12)

(a) A beer-only restaurant licensee may have more than one dispensing area in the licensed premises.

(b) Each dispensing area in a licensed premises may satisfy the requirements for a dispensing area under Subsection 32B-6-902(1)(b)(i)(A), (B), or (C), regardless of how any other dispensing area in the licensed premises satisfies the requirements for a dispensing area.

(13) A beer-only restaurant licensee may not transfer, dispense, or serve beer on or from a movable cart.

(14)

(a) In addition to the requirements described in Section 32B-5-302, a beer-only restaurant licensee shall maintain each of the following records for at least three years:

(i) a record required by Subsection 32B-5-302(1); and

(ii) a record that the commission requires a beer-only restaurant licensee to use or maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(b) The department shall audit the records of a beer-only restaurant licensee at least once annually.

§ 32B-6-905.3 Small beer-only restaurant licensee -- Exemption.

(1) A minor may sit, remain, or consume food or beverages in the dispensing area of a small beer-only restaurant licensee if:

(a) seating in the dispensing area is the only seating available for patrons on the licensed premises;

(b) the minor is accompanied by an individual who is 21 years of age or older; and

(c) the small beer-only restaurant licensee applies for and obtains approval from the department to seat minors in the dispensing area in accordance with this section.

(2) A minor may not sit, remain, or consume food or beverages at a dispensing structure.

(3) The department shall:

(a) grant an approval described in Subsection (1)(c) if the small beer-only restaurant licensee demonstrates that the small beer-only restaurant licensee meets the requirements described in Subsection 32B-6-902(1)(c); and

(b) for each application described in Subsection (1)(c) that the department receives on or before May 8, 2018, act on the application on or before July 1, 2018.

Part 10 Hospitality Amenity License

§ 32B-6-1001 Hospitality Amenity License.

This part is known as "Hospitality Amenity License."

§ 32B-6-1002 Definitions.

As used in this part:

(1) "Hospitality guest" means an individual:

(a)

(i) who is a resident of a resort;

(ii) for whom a resident of a resort provides lodging accommodations for compensation;

(iii) for whom a hotel provides lodging accommodations for compensation; or

(iv) for whom a resort provides lodging accommodations for compensation; and

(b) who is at least 21 years of age.

(2) "Boundary of a hotel" means the physical boundary of one or more contiguous parcels of real property owned or managed by the same person and on which a hotel is located.

(3) "Boundary of a resort building" means the same as that term is defined in Section 32B-8-102.

(4) "Hotel" means a commercial lodging establishment that offers at least 40 rooms as temporary sleeping accommodations for compensation.

§ 32B-6-1003 Commission's power to issue hospitality amenity license.

(1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product on the person's premises as a hospitality amenity licensee, the person shall first obtain a hospitality amenity license from the commission in accordance with this part.

(2)

(a) The commission may only issue a hospitality amenity license to a hotel or a resort.

(b) Beginning November 1, 2020, the commission may issue a hospitality amenity license to establish hospitality amenity licensed premises at places and in numbers the commission considers proper for the storage, sale, offer for sale, furnishing, and consumption of alcoholic products on premises operated as a hospitality amenity licensee.

(3) The commission may authorize the sale of an alcoholic product at as many as three hospitality amenity locations within the boundary of a hotel or the boundary of a resort building under one hospitality amenity license if:

(a) the hotel or resort has a minimum of 150 rooms for temporary sleeping accommodations; and

(b) the commission determines the location, design, and construction of the hotel or resort requires more than one hospitality amenity location within the hotel or resort to serve the public convenience.

(4) Except as otherwise provided in Section 32B-1-202, the commission may not issue a hospitality amenity license for premises that do not meet the proximity requirements of Subsection 32B-1-202(2).

§ 32B-6-1004 Specific licensing requirements for a hospitality amenity license.

(1) To obtain a hospitality amenity license a person shall comply with Chapter 5, Part 2, Retail Licensing Process.

(2)

(a) A hospitality amenity license expires on October 31 of each year.

(b) To renew a person's hospitality amenity license, a person shall comply with the renewal requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.

(3)

(a) The nonrefundable application fee for a hospitality amenity license is $330.

(b)

(i) The initial license fee for a hospitality amenity license is $2,000.

(ii) The department shall prorate the $2,000 initial license fee for the period that begins the day on which the initial license fee is paid and ends the day on which the hospitality amenity license expires.

(c) The renewal fee for a hospitality amenity license is $1,000.

(4) The bond amount required for a hospitality amenity license is the penal sum of $10,000.

(5) Notwithstanding Subsection 32B-5-303(3), the commission may approve an additional location in or on the licensed premises of a hospitality amenity licensee from which the hospitality amenity licensee may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product that is not included in the person's original application only:

(a) upon proper application by a hospitality amenity licensee; and

(b) in accordance with guidelines the commission approves.

§ 32B-6-1005 Specific operational requirements for hospitality amenity license.

(1)

(a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational Requirements, a hospitality amenity licensee and staff of the hospitality amenity licensee shall comply with this section.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) the hospitality amenity licensee;

(ii) individual staff of the hospitality amenity licensee; or

(iii) both the hospitality amenity licensee and staff of the hospitality amenity licensee.

(2)

(a) A hospitality amenity licensee may sell, offer for sale, or furnish an alcoholic product:

(i) to a hospitality guest; and

(ii) for consumption in or on the hospitality amenity licensee's licensed premises.

(b)

(i) A hospitality amenity licensee may sell, offer for sale, or furnish an alcoholic product that is not spirituous liquor in or on:

(A) licensed premises physically separated from an area to which a hospitality guest or the public has access by a permanent or temporary structure or barrier; or

(B) licensed premises described in Subsection (2)(b)(ii).

(ii) A hospitality amenity licensee may sell, offer for sale, or furnish spirituous liquor in or on licensed premises that:

(A) allows access only through the use of a key or code; and

(B) fills the entirety of a physically and permanently enclosed area within the hotel or resort.

(c) Spirituous liquor may not be in or on the licensed premises described in Subsection (2)(b)(i)(A) of a hospitality amenity licensee, except for use:

(i) as a flavoring on a dessert; and

(ii) in the preparation of a flaming food dish or dessert.

(d) A hospitality amenity licensee may not allow self-service of an alcoholic product in or on the hospitality amenity licensee's licensed premises.

(3)

(a) Subject to Subsections (3)(b) and (c), a hospitality guest may not have more than two alcoholic products of any kind at a time before the hospitality guest.

(b) A hospitality guest may not have more than one spirituous liquor drink at a time before the hospitality guest.

(c) An individual portion of wine is considered to be one alcoholic product under Subsection (3)(a).

(4) A hospitality amenity licensee shall make food available at all times that the licensee sells, offers for sale, furnishes, or allows the consumption of an alcoholic product on the licensed premises.

(5)

(a) A hospitality amenity licensee may not sell, offer for sale, or furnish an alcoholic product any day during a period that:

(i) begins at 1:00 a.m.; and

(ii) ends at 9:59 a.m.

(b) A hospitality amenity licensee shall remain open for one hour after the licensee ceases to sell and furnish an alcoholic product, during which time a hospitality guest in or on the hospitality amenity licensed premises may finish consuming:

(i) a single drink containing spirituous liquor;

(ii) except as provided in Subsection (5)(b)(iii), a single serving of wine not exceeding five ounces;

(iii) a single serving not exceeding 16 ounces of hard cider that is furnished in a sealed container and contains no more than 5% of alcohol by volume;

(iv) a single serving of heavy beer;

(v) a single serving not exceeding 26 ounces of beer; or

(vi) a single serving of a flavored malt beverage.

(c) A hospitality amenity licensee is not required to remain open:

(i) after all individuals have vacated the licensee's licensed premises; or

(ii) during an emergency.

(6)

(a) Notwithstanding Section 32B-5-305, a hospitality amenity licensee may provide a hospitality guest up to two single servings of an alcoholic product free of charge or at a reduced rate, if:

(i) the alcoholic product is not a spirituous liquor; and

(ii) the hospitality amenity licensee offers the alcohol product:

(A) to all hospitality guests;

(B) during a specific time; and

(C) on the hospitality amenity licensee's licensed premises.

(b) Before a hospitality amenity licensee provides an alcoholic product free of charge or at a reduced rate as described in Subsection (6)(a), the licensee shall provide the department with advance notice of the event, in accordance with commission rules that permit a licensee to provide a single notice for a reoccurring event or multiple events.

(7) A hospitality amenity licensee may permit a hospitality guest to purchase an alcoholic product through a charge to the hospitality guest's lodging accommodations.

(8)

(a) Notwithstanding Section 32B-5-307, a hospitality guest, or a person other than the hospitality amenity licensee or staff of the hospitality amenity licensee, may not remove an alcoholic product from the hospitality amenity licensee's licensed premises.

(b) Notwithstanding Subsection 32B-5-307(3), a hospitality guest may not bring an alcoholic product within the hospitality amenity licensee's licensed premises.

(9) A hospitality amenity licensee shall display at each entrance to the licensee's licensed premises a conspicuous sign that:

(a) measures at least 8-1/2 inches long and 11 inches wide; and

(b) clearly states that entry is limited to individuals who are hospitality guests, as defined in this title.

(10) A hospitality amenity licensee may not permit a minor to enter the licensee's licensed premises at any time during which an alcoholic product is sold, offered for sale, furnished, or consumed, unless the minor is accompanied at all times on the licensed premises by a hospitality guest.

(11) A staff person of a hospitality amenity licensee shall remain on the licensed premises at all times when an alcoholic product is sold, offered for sale, furnished, or consumed in or on the licensed premises.

(12) A hospitality amenity licensee may transfer an alcoholic product to or from another licensee within the boundary of the hotel or within the boundary of the resort building, if:

(a) the hospitality amenity licensee and each licensee involved in the transfer tracks the transfer of the alcoholic product; and

(b) the alcoholic product is in a sealed, unopened container.

(13)

(a) In addition to the requirements described in Section 32B-5-302, a hospitality amenity licensee shall maintain each of the following records for at least three years:

(i) a record required under Subsection 32B-5-302(1); and

(ii) a record that the commission requires a hospitality amenity licensee to use or maintain under a rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(b) The department shall audit the records of a hospitality amenity licensee at least once annually.

Chapter 7 Off-Premise Beer Retailer Act

Part 1 General Provisions

§ 32B-7-101 Title.

This chapter is known as the "Off-premise Beer Retailer Act."

§ 32B-7-102 Definitions.

Reserved

Part 2 Off-Premise Beer Retailer Local Authority

§ 32B-7-201 State and local licensing -- Limitations.

(1) Subject to the other provisions of this title, a local authority may:

(a) tax or prohibit the retail sale of beer;

(b) subject to this part, issue, suspend, and revoke a local license to sell beer at retail for off-premise consumption;

(c) establish proximity requirements for establishing premises where beer is sold at retail for off-premise consumption in relation to any community location; and

(d) otherwise regulate the retail sale of beer for off-premise consumption subject to the requirements of Section 32B-7-202 and Part 3, Off-Premise Beer Retailer Enforcement Act.

(2) A local authority may not issue to a minor a local license to sell beer at retail for off-premise consumption.

§ 32B-7-202 General operational requirements for off-premise beer retailer.

(1)

(a) An off-premise beer retailer or staff of the off-premise beer retailer shall comply with the provisions of this title and any applicable rules made by the commission.

(b) Failure to comply with this section may result in a suspension or revocation of a local license and, on or after July 1, 2018, disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act.

(2)

(a)

(i) An off-premise beer retailer may not purchase, acquire, possess for the purpose of resale, or sell beer, except beer that the off-premise beer retailer lawfully purchases from:

(A) a beer wholesaler licensee; or

(B) a small brewer that manufactures the beer.

(ii) A violation of Subsection (2)(a)(i) is a class A misdemeanor.

(b)

(i) If an off-premise beer retailer purchases beer under this Subsection (2) from a beer wholesaler licensee, the off-premise beer retailer shall purchase beer only from a beer wholesaler licensee who is designated by the manufacturer to sell beer in the geographical area in which the off-premise beer retailer is located, unless an alternate wholesaler is authorized by the department to sell to the off-premise beer retailer as provided in Section 32B-13-301.

(ii) A violation of Subsection (2)(b)(i) is a class B misdemeanor.

(3) An off-premise beer retailer may not possess, sell, offer for sale, or furnish beer in a container larger than two liters.

(4)

(a) Staff of an off-premise beer retailer, while on duty, may not:

(i) consume an alcoholic product; or

(ii) be intoxicated.

(b) A minor may not sell beer on the licensed premises of an off-premise beer retailer unless:

(i) the sale is done under the supervision of a person 21 years old or older who is on the licensed premises; and

(ii) the minor is at least 16 years old.

(5) An off-premise beer retailer may not sell, offer for sale, or furnish an alcoholic product to:

(a) a minor;

(b) a person actually, apparently, or obviously intoxicated;

(c) a known interdicted person; or

(d) a known habitual drunkard.

(6)

(a) Subject to the other provisions of this Subsection (6), an off-premise beer retailer shall:

(i) display all beer accessible by and visible to a patron in no more than two locations on the retail sales floor, each of which is:

(A) a display cabinet, cooler, aisle, floor display, or room where beer is the only beverage displayed; and

(B) not adjacent to a display of nonalcoholic beverages, unless the location is a cooler with a door from which the nonalcoholic beverages are not accessible, or the beer is separated from the display of nonalcoholic beverages by a display of one or more nonbeverage products or another physical divider; and

(ii) display a sign in the area described in Subsection (6)(a)(i) that:

(A) is prominent;

(B) is easily readable by a consumer;

(C) meets the requirements for format established by the commission by rule; and

(D) reads in print that is no smaller than .5 inches, bold type, "These beverages contain alcohol. Please read the label carefully."

(b) Notwithstanding Subsection (6)(a), a nonalcoholic beer may be displayed with beer if the nonalcoholic beer is labeled, packaged, or advertised as a nonalcoholic beer.

(c) The requirements of this Subsection (6) apply to beer notwithstanding that it is labeled, packaged, or advertised as:

(i) a malt cooler; or

(ii) a beverage that may provide energy.

(d) A violation of this Subsection (6) is an infraction.

(e)

(i) Except as provided in Subsection (6)(e)(ii), the provisions of Subsection (6)(a)(i) apply on and after May 9, 2017.

(ii) For a beer retailer that operates two or more off-premise beer retailers, the provisions of Subsection (6)(a)(i) apply on and after August 1, 2017.

(7)

(a) Staff of an off-premise beer retailer who directly supervises the sale of beer or who sells beer to a patron for consumption off the premises of the off-premise beer retailer shall wear a unique identification badge:

(i) on the front of the staff's clothing;

(ii) visible above the waist;

(iii) bearing the staff's:

(A) first or last name;

(B) initials; or

(C) unique identification in letters or numbers; and

(iv) with the number or letters on the unique identification badge being sufficiently large to be clearly visible and identifiable while engaging in or directly supervising the retail sale of beer.

(b) An off-premise beer retailer shall make and maintain a record of each current staff's unique identification badge assigned by the off-premise beer retailer that includes the staff's:

(i) full name;

(ii) address; and

(iii)

(A) driver license number; or

(B) similar identification number.

(c) An off-premise beer retailer shall make available a record required to be made or maintained under this Subsection (7) for immediate inspection by:

(i) a peace officer;

(ii) a representative of the local authority that issues the off-premise beer retailer license; or

(iii) for an off-premise beer retailer state license, a representative of the commission or department.

(d) A local authority may impose a fine of up to $250 against an off-premise beer retailer that does not comply or require the off-premise beer retailer's staff to comply with this Subsection (7).

(8)

(a) An off-premise beer retailer may sell, offer for sale, or furnish beer:

(i) at a drive-through window;

(ii) at a drive-up loading area, if the drive-up loading area is contiguous to the off-premise beer retailer's licensed premises; or

(iii) subject to Subsection (8)(b), at a designated parking stall.

(b)

(i) An off-premise beer retailer shall ensure that a parking stall described in Subsection (8)(a)(iii) is:

(A) located on property that the off-premise beer retailer owns or has a legal right to occupy;

(B) designated for picking up pre-ordered items from the off-premise beer retailer; and

(C) labeled in a conspicuous manner that communicates the purpose described in Subsection (8)(b)(i)(B).

(ii) An off-premise beer retailer may not sell, offer for sale, or furnish beer at a designated parking stall described in Subsection (8)(a)(iii) unless:

(A) the off-premise beer retailer ensures that the individual purchasing the beer purchases the beer before parking in the designated parking stall;

(B) the off-premise beer retailer delivers the beer directly from the off-premise beer retailer's licensed premises to the designated parking stall;

(C) at the designated parking stall, staff of the off-premise beer retailer verifies the purchaser's age in accordance with Section 32B-1-407; and

(D) the off-premise beer retailer maintains video surveillance of the designated parking stall.

(c) Nothing in this Subsection (8) modifies the other requirements of this section.

(d) Staff of an off-premise beer retailer that sells, offers for sale, or furnishes beer in accordance with this Subsection (8) shall comply with the training requirements described in Section 32B-1-703.

(9) An off-premise beer retailer may not on the licensed premises:

(a) engage in or permit any form of:

(i) gambling, as defined in Section 76-9-1401; or

(ii) fringe gambling, as defined in Section 76-9-1401;

(b) have any fringe gaming device, video gaming device, or gambling device or record as defined in Section 76-9-1401; or

(c) engage in or permit a contest, game, gaming scheme, or gaming device that requires the risking of something of value for a return or for an outcome when the return or outcome is based upon an element of chance, excluding the playing of an amusement device that confers only an immediate and unrecorded right of replay not exchangeable for value.

(10) An off-premise beer retailer may not knowingly allow a person on the licensed premises to, in violation of Title 58, Chapter 37, Controlled Substances, or Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances, or Part 3, Offenses Concerning Drug Paraphernalia:

(a) sell, distribute, possess, or use a controlled substance, as defined in Section 58-37-101; or

(b) use, deliver, or possess, with the intent to deliver, drug paraphernalia, as defined in Section 76-18-301.

(11) An off-premise beer retailer may not sell, offer for sale, or furnish a beer that is intended to be frozen and consumed in a manner other than as a beverage, including beer in the form of a freeze pop, popsicle, ice cream, or sorbet.

(12)

(a) Before the sale or furnishing of an alcoholic product to an individual, an off-premise beer retailer shall require that the individual provide proof of age.

(b) If the proof of age provided required by Subsection (12)(a) is a Utah driver license or an identification card, the off-premise beer retailer shall verify that the individual is not an interdicted person.

Part 3 Off-Premise Beer Retailer Enforcement Act

§ 32B-7-301 Title.

This part is known as the "Off-premise Beer Retailer Enforcement Act."

§ 32B-7-302 Definitions.

Reserved

§ 32B-7-305 Tracking of enforcement actions -- Costs of enforcement actions.

(1) The Department of Public Safety shall administer a program to reimburse a municipal or county law enforcement agency:

(a) for the actual costs of an alcohol-related compliance check investigation conducted in accordance with Section 77-39-101 on the premises of an off-premise beer retailer;

(b) for administrative costs associated with reporting the compliance check investigation described in Subsection (1)(a);

(c) if the municipal or county law enforcement agency completes and submits to the Department of Public Safety a report within 90 days after the day on which the compliance check investigation described in Subsection (1)(a) occurs in a format required by the Department of Public Safety; and

(d) in the order that the municipal or county law enforcement agency submits the report required by Subsection (1)(c) until the amount allocated by the Department of Public Safety to reimburse a municipal or county law enforcement agency is spent.

(2) By no later than October 1 of each year, the Department of Public Safety shall report to the Utah Behavioral Health Commission on the compliance check investigations:

(a) funded during the previous fiscal year; and

(b) reimbursed under Subsection (1).

Part 4 Off-premise Beer Retailer State License

§ 32B-7-401 Commission's power to issue off-premise beer retailer state license.

(1) Beginning on July 1, 2018, and except as provided in Subsection (3), before a person may purchase, store, sell, or offer for sale beer for consumption off the person's premises, the person shall obtain an off-premise beer retailer state license in accordance with this part.

(2) The commission may issue an off-premise beer retailer state license for the retail sale of beer for consumption off the beer retailer's premises.

(3)

(a) Subject to Subsection (3)(b), a person who operates as an off-premise beer retailer on July 1, 2018, shall submit an application for an off-premise beer retailer state license on or before May 31, 2019.

(b) In addition to the fees described in Section 32B-7-402, a person described in Subsection (3)(a) who submits an application for an off-premise beer retailer state license after March 1, 2019, shall submit with the person's application a fee in the following amount:

(i) $150, if the person submits the application after March 1, 2019, and on or before April 15, 2019; or

(ii) $300, if the person submits the application after April 15, 2019, and on or before May 31, 2019.

§ 32B-7-402 Application for off-premise beer retailer state license -- Qualifications.

To obtain an off-premise beer retailer state license, a person shall submit to the department:

(1) a written application in a form prescribed by the department;

(2) a nonrefundable application fee of $75;

(3) an initial license fee of $250 that is refundable if the commission does not issue the off-premise beer retailer state license;

(4) written consent of the local authority;

(5) a copy of the person's current business license;

(6) a floor plan of the premises that outlines the location of each beer display;

(7) a signed consent form stating the person will permit any authorized representative of the commission or the department or any law enforcement officer to have unrestricted right to enter the licensed premises;

(8) if the person is an entity, proper verification evidencing that the individual who signs the application is authorized to sign on behalf of the entity; and

(9) any other information that the commission or department requires.

§ 32B-7-403 Renewal of off-premise beer retailer state license.

(1) An off-premise beer retailer state license expires on the last day of February each year.

(2) To renew an off-premise beer retailer state license, an off-premise beer retailer state licensee shall, no later than January 31, submit:

(a) a completed renewal application to the department in a form prescribed by the department; and

(b) a renewal fee of $175.

(3) An off-premise beer retailer state licensee automatically forfeits the off-premise beer retailer state license if the off-premise beer retailer state licensee fails to satisfy the renewal requirements described in this section.

§ 32B-7-404 Duties of commission and department before issuing off-premise beer retailer state license.

(1)

(a) Before the commission issues an off-premise beer retailer state license, the department shall conduct an investigation and may hold one or more public hearings to gather information and make recommendations to the commission regarding whether the commission should issue an off-premise beer retailer state license.

(b) The department shall forward the information the department gathers and the department's recommendations to the commission.

(2) Before the commission issues an off-premise beer retailer state license, the commission shall:

(a) determine that the person filed a complete application and is in compliance with the provisions of this chapter;

(b) determine that the person is not disqualified under Section 32B-1-304;

(c) consider the physical characteristics of the premises where the beer is displayed; and

(d) consider any other factor that the commission considers necessary.

§ 32B-7-405 Notifying department of change of ownership.

The commission may suspend or revoke an off-premise beer retailer state license if an off-premise beer retailer state licensee does not immediately notify the department of a change in:

(1) ownership of the licensee's business;

(2) for a corporate owner, a shareholder holding at least 20% of the total issued and outstanding stock of the corporation; or

(3) for a limited liability company, a member owning at least 20% of the limited liability company.

§ 32B-7-406 Conditional off-premise beer retailer state license.

(1) As used in this section, "conditional off-premise beer retailer state license" means an off-premise beer retailer state license that conditions the holder's ability to purchase, store, sell, or offer for sale beer for consumption off the holder's licensed premises on the holder submitting to the department a copy of the holder's current business license.

(2) In accordance with the provisions of this section, the commission may issue a conditional off-premise beer retailer state license to a person if the person:

(a) meets the requirements to obtain an off-premise beer retailer state license, except the requirement to submit a copy of the person's current business license; and

(b) agrees not to purchase, store, sell, or offer for sale beer for consumption off the person's licensed premises before obtaining an off-premise beer retailer state license.

(3)

(a) For a conditional off-premise beer retailer state license to become an off-premise beer retailer state license, a person who holds the conditional off-premise beer retailer state license shall:

(i) submit to the department a copy of the person's current business license; and

(ii) provide to the department evidence satisfactory to the department that:

(A) there has been no change in the information submitted to the commission as part of the person's application for an off-premise beer retailer state license; and

(B) the person continues to qualify for an off-premise beer retailer state license.

(b) A conditional off-premise beer retailer state license becomes an off-premise beer retailer state license on the day on which the department notifies the person who holds the conditional off-premise beer retailer state license that the department finds that the person has complied with Subsection (3)(a).

(4)

(a) A conditional off-premise beer retailer state license expires nine months after the day on which the commission issues the conditional off-premise beer retailer state license, unless the conditional off-premise beer retailer state license becomes an off-premise beer retailer state license before that day.

(b) Notwithstanding Subsection (4)(a), the commission may extend the expiration date of a conditional off-premise beer retailer state license by three months if the holder demonstrates to the satisfaction of the commission that the holder:

(i) has an active building permit related to the licensed premises; and

(ii) is engaged in a good faith effort to pursue completion within the three-month period.

§ 32B-7-407 Licensing at certain package agencies.

(1) Subject to Subsection (2), the commission may issue an off-premise beer retailer state license for a premises that is a package agency located at a brewery manufacturing facility.

(2) An off-premise beer retailer state licensee described in Subsection (1) may not sell beer:

(a) other than beer that is the product of the brewery manufacturing licensee that holds the package agency located on the premises; or

(b) at a time other than a time a package agency may sell liquor under Subsection 32B-2-605(13).

§ 32B-7-408 Master off-premise beer retailer state license.

(1)

(a) The commission may issue a master off-premise beer retailer state license that authorizes a person to store, sell, or offer for sale beer for consumption off the person's premises at multiple locations as off-premise beer retailers if the person applying for the master off-premise beer retailer state license:

(i) owns each of the off-premise beer retailers;

(ii) except for the fee requirements, establishes to the satisfaction of the commission that each location of an off-premise beer retailer under the master off-premise beer retailer state license separately meets the requirements of this part; and

(iii) the master off-premise beer retailer state license includes at least five off-premise beer retailer locations.

(b) The person seeking a master off-premise beer retailer state license shall designate which off-premise beer retailer locations the person seeks to have under the master off-premise beer retailer state license.

(c) An off-premise beer retailer location under a master off-premise beer retailer state license is considered separately licensed for purposes of this title.

(2)

(a) A master off-premise beer retailer state license expires on the last day of February each year.

(b) To renew a person's master off-premise beer retailer state license, a person shall comply with the renewal requirements of Section 32B-7-403 by no later than January 31 of the year in which the off-premise beer retailer state license expires.

(3)

(a) The nonrefundable application fee for a master off-premise beer retailer state license is $75.

(b) The initial license fee for a master off-premise beer retailer state license is:

(i) $1,100 plus a separate initial license fee for each newly licensed off-premise beer retailer state license under the master off-premise beer retailer state license determined in accordance with Subsection 32B-7-402(3); and

(ii) refundable if the commission does not issue the master off-premise beer retailer state license.

(c) The renewal fee for a master off-premise beer retailer state license is $300 plus a separate renewal fee for each off-premise beer retailer state license under the master off-premise beer retailer state license determined in accordance with Subsection 32B-7-403(2)(b).

(4) A new location may be added to a master off-premise beer retailer state license after the master off-premise beer retailer state license is issued if, including payment of the initial license fee, the location separately meets the requirements of this part.

(5)

(a) A master off-premise beer retailer state licensee shall notify the department of a change in the persons managing a location covered by a master off-premise beer retailer state license:

(i) immediately, if the management personnel is not management personnel at a location covered by the master off-premise beer retailer state license at the time of the change; or

(ii) within 30 days of the change, if the off-premise beer retailer state licensee is transferring management personnel from one location to another location covered by the master off-premise beer retailer state license.

(b) A location covered by a master off-premise beer retailer state license shall keep its own records on its premises so that the department may audit the records.

(c) A master off-premise beer retailer state licensee may not transfer beer between different locations covered by the master off-premise beer retailer state license.

(6)

(a) If there is a violation of this title at a location covered by a master off-premise beer retailer state license, the violation may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) the single location under the master off-premise beer retailer state license;

(ii) individual staff of the location under the master off-premise beer retailer state license; or

(iii) a combination of persons or locations described in Subsections (6)(a)(i) and (ii).

(b) In addition to disciplinary action under Subsection (6)(a), disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, may be taken against a master off-premise beer retailer state licensee or individual staff of the master off-premise beer retailer state licensee if during a period beginning on March 1 and ending the last day of February:

(i) at least 25% of the locations covered by the master off-premise beer retailer state license have been found by the commission to have committed a serious or grave violation of this title, as defined by rule made by the commission; or

(ii) at least 50% of the locations covered by the master off-premise beer retailer state license have been found by the commission to have violated this title.

(7) The commission may make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish how a person may apply for a master off-premise beer retailer state license under this section.

§ 32B-7-409 Multiple licenses on same premises.

(1) Except as provided in Subsection (2), the commission may not issue and one or more licensees may not hold an off-premise beer retailer state license for the same licensed premises or adjacent licensed premises as a retail licensee, unless the licensed premises:

(a) are separated by a permanent, opaque, floor-to-ceiling wall;

(b) each have a separate entrance to the licensed premises; and

(c) each have separate restroom facilities on the licensed premises.

(2)

(a) The commission may issue and an off-premise beer retailer state licensee may hold more than one type of license for the same licensed premises or adjacent licensed premises, if:

(i) a manufacturing licensee is located on or adjacent to the licensed premises; and

(ii) a package agency is located on or adjacent to the licensed premises.

(b) Notwithstanding Subsection (1), the commission may issue an off-premise beer retailer state license to a hotel or resort.

Chapter 8 Resort License Act

Part 1 General Provisions

§ 32B-8-101 Title.

This chapter is known as the "Resort License Act."

§ 32B-8-102 Definitions.

As used in this chapter:

(1) "Boundary of a resort building" means the physical boundary of the real property reasonably related to a resort building and any structure or improvement to that land as determined by the commission.

(2) "Designated conveyance area" means a route within a hotel or resort:

(a) that connects one or more of the following:

(i) the premises of a bar establishment sublicensee;

(ii) the premises of a hospitality amenity sublicensee;

(iii) the premises of an on-premise banquet sublicensee; or

(iv) a guest's room; and

(b) that does not begin, end, or pass through a pool area or other recreation area, a designated business center, or a sublicensed premises not described in Subsection (2)(a).

(3) "Dwelling" means a portion of a resort building:

(a) owned by one or more individuals;

(b) that is used or designated for use as a residence by one or more persons; and

(c) that may be rented, loaned, leased, or hired out for a period of no longer than 30 consecutive days by a person who uses it for a residence.

(4) "Engaged in the management of the resort" may be defined by the commission by rule.

(5) "Resident" means an individual who:

(a) owns a dwelling located within a resort building; or

(b) rents lodging accommodations for 30 consecutive days or less from:

(i) an owner of a dwelling described in Subsection (5)(a); or

(ii) the resort licensee.

(6) "Resort" means a location:

(a) on which is located one resort building; and

(b) that is affiliated with a ski area that physically touches the boundary of the resort building.

(7) "Resort building" means a building:

(a) that is primarily operated to provide dwellings or lodging accommodations;

(b) that has at least 150 units that consist of a dwelling or lodging accommodations;

(c) that consists of at least 400,000 square feet:

(i) including only the building itself; and

(ii) not including areas such as above ground surface parking; and

(d) of which at least 50% of the units described in Subsection (7)(b) consist of dwellings owned by a person other than the resort licensee.

Part 2 Resort Licensing Process

§ 32B-8-201 Commission's power to issue a resort license.

(1) Before a person as a resort under a single license may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product on sublicense premises, the person shall first obtain a resort license from the commission in accordance with this part.

(2)

(a) The commission may issue to a person a resort license to allow the storage, sale, offer for sale, furnishing, and consumption of an alcoholic product in connection with a resort designated in the resort license if the person operates at least four sublicenses under the resort license.

(b) A resort license shall:

(i) consist of:

(A) a general resort license; and

(B) four or more sublicenses; and

(ii) designate the boundary of the resort building, each sublicense, and each designated conveyance area.

(c) This chapter does not prohibit an alcoholic product in or on the boundary of the resort building to the extent otherwise permitted by this title.

(3) The commission may not issue a total number of resort licenses that at any time totals more than eight.

§ 32B-8-202 Specific licensing requirements for resort license.

(1) To obtain a resort license, in addition to complying with Chapter 5, Part 2, Retail Licensing Process, a person shall submit with the person's written application:

(a) evidence:

(i) of proximity of the resort building to any community location;

(ii) that each proposed sublicensed premises is entirely within the boundaries of the resort building; and

(iii) that the building designated in the application as the resort building qualifies as a resort building;

(b) a description and boundary map of the resort building;

(c) a description, floor plan, and boundary map of each proposed designated conveyance area; and

(d) a signed consent form stating that the resort licensee will permit any authorized representative of the commission or department, or any law enforcement officer, to have an unrestricted right to enter any proposed designated conveyance area.

(2)

(a) A resort license expires on October 31 of each year.

(b) To renew a person's resort license, the person shall comply with the requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.

(3)

(a) The nonrefundable application fee for a resort license is $300.

(b) The initial license fee for a resort license is calculated as follows:

(i) if four sublicenses are being applied for under the resort license, $10,000; or

(ii) if more than four sublicenses are being applied for under the resort license, the sum of:

(A) $10,000; and

(B) $2,000 for each sublicense in excess of four sublicenses for which the person is applying.

(c) The renewal fee for a resort license is $1,000 for each sublicense under the resort license.

(4)

(a) The bond amount required for a resort license is the penal sum of $25,000, covering each sublicense and each designated conveyance area under the resort license.

(b) A resort licensee is not required to have a separate bond for each sublicenseor each designated conveyance area.

(5) The commission may not issue a resort license for a resort building that does not meet the proximity requirements of Section 32B-1-202.

(6) In accordance with Subsection 32B-8d-103(4), a resort licensee may request to add a sublicense after the commission issues the resort licensee's resort license.

(7)

(a) A resort licensee may request to add a designated conveyance area after the commission issues the resort licensee's resort license.

(b) If a resort licensee seeks to add a designated conveyance area under Subsection (7)(a), the resort licensee shall submit to the department:

(i) the information and evidence described in Subsections (1)(a)(iii), (1)(c), and (1)(d); and

(ii) if the resort licensee is an entity, proper verification evidencing that the person who signs the submission is authorized to sign on behalf of the entity.

Part 4 Operational Requirements

§ 32B-8-401 Specific operational requirements for resort license.

(1)

(a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational Requirements, a resort licensee, staff of the resort licensee, and a sublicensee or a person otherwise operating under a sublicense shall comply with this section.

(b) Subject to Section 32B-8-502, failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) the resort licensee;

(ii) individual staff of the resort licensee;

(iii) a sublicensee or person otherwise operating under a sublicense of the resort licensee;

(iv) individual staff of a sublicensee or person otherwise operating under a sublicense of the resort licensee; or

(v) any combination of the persons listed in Subsections (1)(b)(i) through (iv).

(2)

(a) A resort licensee may not sell, offer for sale, or furnish an alcoholic product except:

(i) on sublicensed premises;

(ii) pursuant to a permit issued under this title;

(iii) under a package agency agreement with the department, subject to Chapter 2, Part 6, Package Agency; or

(iv) through room service.

(b) A resort licensee who sells, offers for sale, or furnishes an alcoholic product as provided in Subsection (2)(a), shall sell, offer for sale, or furnish the alcoholic product:

(i) if on a sublicense premises, in accordance with the operational requirements described in Section 32B-8d-104;

(ii) if under a permit issued under this title, in accordance with the operational requirements under the provisions applicable to the permit;

(iii) if as a package agency, in accordance with the contract with the department and Chapter 2, Part 6, Package Agency; and

(iv) if through room service, in accordance with Subsection (6).

(3)

(a) To be licensed as a resort licensee, a person shall maintain at least 70% of the person's gross revenues related to the sale of food or beverages for the resort licensee and each of the resort licensee's sublicenses from the sale of food.

(b) A person complies with Subsection (3)(a) if the percentage calculated by dividing the person's annual markup cost by the sum of the person's annual gross revenues from food sales and the person's annual markup cost does not exceed 30%.

(4)

(a) A resort licensee shall supervise and direct a person involved in the sale, offer for sale, or furnishing of an alcoholic product under a resort license.

(b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product under a resort license shall complete the alcohol training and education seminar.

(5) A resort licensee shall:

(a) in accordance with commission rule, establish and maintain signage that clearly identifies each designated conveyance area and conspicuously states that a patron may not take an alcoholic beverage beyond the designated conveyance area except as otherwise provided in this chapter;

(b) ensure that an alcoholic beverage is not left unattended in a designated conveyance area; and

(c) ensure that each patron complies with the requirements of Subsection 32B-8d-104(5)(b)(ii).

(6)

(a) Staff of the resort licensee shall provide room service of an alcoholic product to a lodging accommodation of a resort licensee in person only to an adult occupant in the lodging accommodation.

(b) An alcoholic product may not be left outside a lodging accommodation for retrieval by an occupant.

Part 5 Enforcement

§ 32B-8-501 Enforcement of qualifications for resort license or sublicense.

(1) The commission or department may not take an action described in Subsection (2) with regard to a resort license unless the person who is found not to meet the qualifications of Subsection 32B-1-304(1) is one of the following who is engaged in the management of the resort:

(a) a partner;

(b) a managing agent;

(c) a manager;

(d) an officer;

(e) a director;

(f) a stockholder who holds at least 20% of the total issued and outstanding stock of the corporation;

(g) a member who owns at least 20% of the limited liability company; or

(h) a person employed to act in a supervisory or managerial capacity for the resort licensee.

(2) Subsection (1) applies to:

(a) the commission immediately suspending or revoking a resort license, if after the day on which the resort license is issued, a person described in Subsection 32B-1-304(7)(a)(i):

(i) is found to have been convicted of an offense described in Subsection 32B-1-304(1)(a) before the commission issues the resort license; or

(ii) on or after the day on which the commission issues the resort license:

(A) is convicted of an offense described in Subsection 32B-1-304(1)(a)(i) or (ii); or

(B)

(I) is convicted of driving under the influence of alcohol, a drug, or the combined influence of alcohol and a drug; and

(II) was convicted of driving under the influence of alcohol, a drug, or the combined influence of alcohol and a drug within five years before the day on which the person is convicted of the offense described in Subsection (2)(b)(ii)(A);

(b) the director taking an emergency action by immediately suspending the operation of a resort license in accordance with Title 63G, Chapter 4, Administrative Procedures Act, for the period during which the criminal matter is being adjudicated if a person described in Subsection 32B-1-304(7)(a):

(i) is arrested on a charge for an offense described in Subsection 32B-1-304(1)(a)(i) or (ii); or

(ii)

(A) is arrested on a charge for the offense of driving under the influence of alcohol, a drug, or the combined influence of alcohol and a drug; and

(B) was convicted of driving under the influence of alcohol, a drug, or the combined influence of alcohol and a drug within five years before the day on which the person is arrested on a charge described in Subsection (2)(b)(ii)(A); and

(c) the commission suspending or revoking a resort license because a person to whom the commission issues a resort license under this chapter no longer possesses the qualifications required by this title for obtaining the resort license.

(3) This section does not prevent the commission from suspending or revoking a sublicense that is part of a resort license if a person employed to act in a supervisory or managerial capacity for a sublicense no longer meets the qualification requirements in the provisions applicable to the sublicense.

§ 32B-8-502 Enforcement of operational requirements for resort license or sublicense.

(1)

(a) Except as provided in Subsection (2), failure by a person described in Subsection (1)(b) to comply with this chapter or Chapter 8d, Sublicense Act, may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a resort licensee;

(ii) individual staff of a resort licensee;

(iii) a sublicense or person otherwise operating under a sublicense;

(iv) individual staff of a sublicense or person otherwise operating under a sublicense; or

(v) any combination of the persons listed in Subsections (1)(a)(i) through (iv).

(b) This Subsection (1) applies to:

(i) a resort licensee;

(ii) a sublicense or person operating under a sublicense of a resort license; or

(iii) staff of a resort licensee or sublicensee or other person operating under a sublicense of a resort license.

(2)

(a) Notwithstanding the other provisions of this title, if the failure to comply with this chapter described in Subsection (1) relates to a sale, offer for sale, or furnishing of an alcoholic product on sublicensed premises, a resort licensee or an individual member of the resort licensee's management personnel is subject to a sanction described in Subsection (1), only if the commission finds that:

(i) during the three years before the day on which the commission makes the finding, there are three or more disciplinary proceedings against any sublicensee or person operating under a sublicense of the resort licensee for failure to comply with an operational requirement applicable to the sublicense; and

(ii) the resort licensee has not taken reasonable steps to prevent persons operating under a sublicense of the resort licensee from failing to comply with operational requirements applicable to the sublicense.

(b) This Subsection (2) applies if the three or more disciplinary proceedings described in Subsection (2)(a) are against:

(i) the same person operating under a sublicense of the resort licensee; or

(ii) two or more different persons operating under a sublicense of the resort licensee.

Chapter 8b Hotel License Act

Part 1 General Provisions

§ 32B-8b-101 Title.

This chapter is known as the "Hotel License Act."

§ 32B-8b-102 Definitions.

As used in this chapter:

(1) "Boundary of a hotel" means the physical boundary of one or more contiguous parcels of real property owned or managed by the same person and on which a hotel is located.

(2) "Designated conveyance area" means a route within a hotel or resort:

(a) that connects one or more of the following by the most direct route possible:

(i) the premises of a bar establishment sublicensee;

(ii) the premises of a hospitality amenity sublicensee;

(iii) the premises of an on-premise banquet sublicensee; or

(iv) a guest's room; and

(b) does not begin, end, or pass through a pool area or other recreation area, a designated business center, or a sublicensed premises not described in Subsection (2)(a).

(3) "Hotel" means one or more buildings that:

(a) comprise a hotel, as defined by the commission;

(b) are owned or managed by the same person or by a person who has a majority interest in or can direct or exercise control over the management or policy of the person who owns or manages any other building under the hotel license within the boundary of the hotel;

(c) primarily operate to provide lodging accommodations;

(d) have on-premise banquet space and provide on-premise banquet service within the boundary of the hotel meeting the requirements of this title;

(e) have a restaurant or bar establishment within the boundary of the hotel meeting the requirements of this title; and

(f) have at least 30 rooms as temporary sleeping accommodations for compensation.

Part 2 Hotel Licensing Process

§ 32B-8b-201 Commission's power to issue a hotel license.

(1) Before a person as a hotel under a single license may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product on sublicense premises, the person shall first obtain a hotel license from the commission in accordance with this part.

(2)

(a) The commission may issue to a person a hotel license to allow the storage, sale, offer for sale, furnishing, and consumption of an alcoholic product in connection with a hotel designated in the hotel license if the person operates at least three sublicenses under the hotel license:

(i) one of which is an on-premise banquet license; and

(ii) one of which is:

(A) a full-service restaurant sublicense;

(B) a limited-service restaurant sublicense;

(C) a beer-only restaurant sublicense; or

(D) a bar establishment sublicense.

(b) A hotel license shall:

(i) consist of:

(A) a general hotel license; and

(B) three or more sublicenses meeting the requirements of Subsection (2)(a); and

(ii) designate the boundary of the hotel, sublicenses, and each designated conveyance area.

(c) This chapter does not prohibit an alcoholic product on the boundary of the hotel to the extent otherwise permitted by this title.

(3) The commission may not issue a total number of hotel licenses that at any time totals more than 80.

§ 32B-8b-202 Specific licensing requirements for hotel license.

(1) To obtain a hotel license, in addition to complying with Chapter 5, Part 2, Retail Licensing Process, a person shall submit with the person's written application:

(a) evidence:

(i) of proximity of each building under the hotel license to any community location;

(ii) that each proposed sublicensed premises is entirely within the boundary of the hotel; and

(iii) that each building designated in the application as a building under the hotel license qualifies to be under the hotel license;

(b) a description and boundary map of the hotel;

(c) a description, floor plan, and boundary map of each proposed designated conveyance area; and

(d) a signed consent form stating that the hotel licensee will permit any authorized representative of the commission or department, or any law enforcement officer, to have an unrestricted right to enter any proposed designated conveyance area.

(2)

(a) A hotel license expires on October 31 of each year.

(b) To renew a person's hotel license, the person shall comply with the requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.

(3)

(a) The nonrefundable application fee for a hotel license is $500.

(b) The initial license fee for a hotel license is calculated as follows:

(i) if three sublicenses are being applied for under the hotel license, $5,000; or

(ii) if more than three sublicenses are being applied for under the hotel license, the sum of:

(A) $5,000; and

(B) $2,000 for each sublicense in excess of three sublicenses for which the person is applying.

(c) The renewal fee for a hotel license is $1,000 for each sublicense under the hotel license.

(4)

(a) The bond amount required for a hotel license is the penal sum of $10,000, covering each sublicense and each designated conveyance area under the hotel license.

(b) A hotel licensee is not required to have a separate bond for each sublicense or each designated conveyance area.

(5) The commission may not issue a hotel license that includes a building under the hotel license that does not meet the proximity requirements of Section 32B-1-202.

(6) In accordance with Subsection 32B-8d-103(4), a hotel licensee may request to add a sublicense after the commission issues the hotel licensee's hotel license.

(7)

(a) A hotel licensee may request to add a designated conveyance area after the commission issues the hotel licensee's hotel license.

(b) If a hotel licensee seeks to add a designated conveyance area under Subsection (7)(a), the hotel licensee shall submit to the department:

(i) the information and evidence described in Subsections (1)(a)(iii), (1)(c), and (1)(d); and

(ii) if the hotel licensee is an entity, proper verification evidencing that the person who signs the submission is authorized to sign on behalf of the entity.

Part 3 Operational Requirements

§ 32B-8b-301 Specific operational requirements for hotel license.

(1)

(a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational Requirements, a hotel licensee, staff of the hotel licensee, and a sublicensee or person otherwise operating under a sublicense shall comply with this section.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) the hotel licensee;

(ii) individual staff of the hotel licensee;

(iii) a sublicensee or person otherwise operating under a sublicense of the hotel licensee;

(iv) individual staff of a sublicensee or person otherwise operating under a sublicense of the hotel licensee; or

(v) any combination of the persons listed in this Subsection (1)(b).

(2)

(a) A hotel licensee may not sell, offer for sale, or furnish an alcoholic product except:

(i) on sublicensed premises;

(ii) in accordance with a permit issued under this title;

(iii) under a package agency agreement with the department, subject to Chapter 2, Part 6, Package Agency; or

(iv) through room service.

(b) A hotel licensee who sells, offers for sale, or furnishes an alcoholic product as provided in Subsection (2)(a) shall sell, offer for sale, or furnish the alcoholic product:

(i) if on sublicensed premises, in accordance with the operational requirements described in Section 32B-8d-104;

(ii) if under a permit issued under this title, in accordance with the operational requirements under the provisions applicable to the permit;

(iii) if as a package agency, in accordance with the contract with the department and Chapter 2, Part 6, Package Agency; and

(iv) if through room service, in accordance with Subsection (5).

(c) Notwithstanding the other provisions of this Subsection (2) and except as provided in Section 32B-8d-104, a hotel licensee may not permit a patron to carry an alcoholic product off the premises of a sublicense in violation of Section 32B-5-307, off an area designated under a permit, or off a designated conveyance area.

(3) A hotel licensee shall supervise and direct a person involved in the sale, offer for sale, or furnishing of an alcoholic product under a hotel license.

(4)

(a) A hotel licensee shall:

(i) in accordance with commission rule, establish and maintain signage that clearly identifies each designated conveyance area and conspicuously states that a patron may not take an alcoholic beverage beyond the designated conveyance area except as otherwise provided in this chapter;

(ii) ensure that an alcoholic beverage is not left unattended in a designated conveyance area; and

(iii) ensure that each patron complies with the requirements of Subsection 32B-8d-104(5)(b)(ii).

(b) In accordance with Subsection (2), a hotel licensee may not sell, offer for sale, or furnish an alcoholic product in a designated conveyance area.

(5)

(a) Staff of the hotel licensee shall provide room service of an alcoholic product to a lodging accommodation of a hotel licensee in person only to an adult occupant in the lodging accommodation.

(b) An alcoholic product may not be left outside a lodging accommodation for retrieval by an occupant.

(6)

(a) To be licensed as a hotel licensee, a person shall maintain at least 70% of the person's gross revenues related to the sale of food or beverages for the hotel licensee and each of the hotel licensee's sublicenses from the sale of food.

(b) A person complies with Subsection (6)(a) if the percentage calculated by dividing the hotel's and each of the hotel's sublicense's annual markup cost by the sum of the the hotel's and each of the hotel's sublicense's annual gross revenues from food sales and the hotel's and each of the hotel's sublicense's annual markup cost does not exceed 30%.

Part 4 Enforcement

§ 32B-8b-401 Enforcement of operational requirements for hotel license or sublicense.

(1) Failure by a person described in Subsection (2) to comply with this chapter or Chapter 8d, Sublicense Act, may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(a) the hotel licensee;

(b) individual staff of the hotel licensee;

(c) a sublicensee or person otherwise operating under a sublicense of the hotel licensee;

(d) individual staff of a sublicensee or person otherwise operating under a sublicense of the hotel licensee; or

(e) any combination of the persons listed in this Subsection (1).

(2) Subsection (1) applies to:

(a) a hotel licensee;

(b) a sublicensee or person operating under a sublicense of a hotel licensee; or

(c) staff of a hotel licensee or sublicensee or other person operating under a sublicense of a hotel licensee.

Chapter 8c Arena License Act

§ 32B-8c-101 Title.

This chapter is known as the "Arena License Act."

§ 32B-8c-102 Definitions.

Reserved

§ 32B-8c-201 Commission's power to issue an arena license.

(1) Before a person as an arena under a single license may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product on sublicensed premises, the person shall first obtain an arena license from the commission in accordance with this part.

(2)

(a) Beginning November 1, 2020, the commission may issue to a person an arena license to allow the storage, sale, offer for sale, furnishing, and consumption of an alcoholic product in connection with the arena designated in the arena license, if the person operates at least three sublicenses under the arena license, including:

(i) one of which is an on-premise banquet sublicense;

(ii) one of which is:

(A) a full-service restaurant sublicense;

(B) a limited-service restaurant sublicense;

(C) a beer-only restaurant sublicense; or

(D) a bar establishment sublicense; and

(iii) one of which is an on-premise beer retailer sublicense that is not a tavern.

(b) An arena license shall:

(i) consist of:

(A) a general arena license; and

(B) three or more sublicenses meeting the requirements of Subsection (2)(a); and

(ii) designate the enclosed building that is the arena.

(c) This chapter does not prohibit an alcoholic product in an arena to the extent otherwise permitted by this title.

(3) The commission may not issue a total number of arena licenses that at any time totals more than 10.

§ 32B-8c-202 Specific licensing requirements for arena license.

(1) To obtain an arena license, in addition to complying with Chapter 5, Part 2, Retail Licensing Process, a person shall submit with the person's written application:

(a) evidence:

(i) of proximity of the arena to any community location;

(ii) that each proposed sublicense premises is entirely within the arena; and

(iii) that the building designated in the application as the arena qualifies as an arena; and

(b) a description and map of the arena.

(2)

(a) An arena license expires on October 31 of each year.

(b) To renew a person's arena license, the person shall comply with the requirements of Chapter 5, Part 2, Retail Licensing Process, by no later than September 30.

(3)

(a) The nonrefundable application fee for an arena license is $500.

(b) The initial license fee for an arena license is calculated as follows:

(i) if the person applies for three sublicenses under the arena license, $5,000; or

(ii) if the person applies for more than three sublicenses under the arena license, the sum of:

(A) $5,000; and

(B) $1,000 for each sublicense in excess of three sublicenses for which the person applies.

(c) The renewal fee for an arena license is $1,000 plus $1,000 for each sublicense under the arena license.

(4)

(a) The bond amount required for an arena license is the penal sum of $100,000.

(b) An arena licensee is not required to have a separate bond for each sublicense, except that the aggregate of the bonds posted by the arena licensee shall cover each sublicense under the arena license.

(5) Except as prohibited in Subsection 32B-1-202.1(4), an arena may request to add a sublicense after the commission issues the arena licensee's arena license, in accordance with Subsection 32B-8d-103(4).

§ 32B-8c-301 Specific operational requirements for arena license.

(1)

(a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational Requirements, an arena licensee, staff of the arena licensee, and a sublicensee or person otherwise operating under a sublicense shall comply with this section.

(b) Failure to comply as provided in Subjection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) the arena licensee;

(ii) individual staff of the arena licensee;

(iii) a sublicensee or person otherwise operating under a sublicense of the arena licensee;

(iv) individual staff of a sublicensee or person otherwise operating under a sublicense; or

(v) any combination of the persons listed in Subsections (1)(b)(i) through (iv).

(2)

(a) An arena licensee may not sell, offer for sale, or furnish an alcoholic product except:

(i) on sublicensed premises;

(ii) in accordance with a permit issued under this title; or

(iii) under a package agency agreement with the department, subject to Chapter 2, Part 6, Package Agency.

(b) An arena licensee who sells, offers for sale, or furnishes an alcoholic product as provided in Subsection (2)(a) shall sell, offer for sale, or furnish the alcoholic product:

(i) if on sublicensed premises, in accordance with the operational requirements described in Section 32B-8d-104;

(ii) if under a permit issued under this title, in accordance with the operational requirements under the provisions applicable to the permit; and

(iii) if as a package agency, in accordance with the contract with the department and Chapter 2, Part 6, Package Agency.

(3)

(a) To be licensed as an arena licensee, a person shall maintain at least 70% of the person's gross revenues related to the sale of food or beverages for the arena licensee and each of the arena licensee's sublicenses from the sale of food.

(b) A person complies with Subsection (3)(a) if the percentage calculated by dividing the arena's and each of the arena's sublicense's annual markup cost by the sum of the the arena's and each of the arena's sublicense's annual gross revenues from food sales and the arena's and each of the arena's sublicense's annual markup cost does not exceed 30%.

(4) An arena licensee shall, directly or indirectly, supervise and direct a person involved in the sale, offer for sale, or furnishing of an alcoholic product under an arena license.

§ 32B-8c-401 Enforcement.

(1) Failure by a person described in Subsection (2) to comply with this chapter or Chapter 8d, Sublicense Act, may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(a) the arena licensee;

(b) individual staff of the arena licensee;

(c) a sublicensee or a person otherwise operating under a sublicense of the arena licensee;

(d) individual staff of a sublicensee or person otherwise operating under a sublicense of the arena licensee; or

(e) any combination of the persons listed in Subsections (1)(a) through (d).

(2) Subsection (1) applies to:

(a) an arena licensee;

(b) a sublicensee or person operating under a sublicense of an arena licensee;

(c) staff of an arena licensee or sublicensee or other person operating under a sublicense of the arena licensee.

Chapter 8d Sublicense Act

Part 1 General Provisions

§ 32B-8d-101 Title.

This chapter is known as the "Sublicense Act."

§ 32B-8d-102 Definitions.

As used in this chapter:

(1) "Boundary of a hotel" means the same as that term is defined in Section 32B-8b-102.

(2) "Boundary of a resort building" means the same as that term is defined in Section 32B-8b-102.

(3) "Hotel" means the same as that term is defined in Section 32B-8b-102.

(4) "Resort building" means the same as that term is defined in Section 32B-8-102.

(5) "Spa" means a spa:

(a) as the commission defines by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and

(b) that is within the:

(i) boundary of a resort building; or

(ii) boundary of a hotel.

§ 32B-8d-103 Commission's power to issue a sublicense.

(1) Before a person as a sublicensee may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product on sublicensed premises, the person shall first obtain a sublicense from the commission in accordance with:

(a) this chapter;

(b) Chapter 8, Resort License Act;

(c) Chapter 8b, Hotel License Act; and

(d) Chapter 8c, Arena License Act.

(2)

(a) The commission may issue to a person a sublicense to allow the storage, sale, offering for sale, furnishing, or consumption of an alcoholic product on the premises of the sublicense, if the person is:

(i) a principal licensee; or

(ii) a person seeking a principal license, contingent on the issuance of the principal license.

(b) The commission may not:

(i) issue a sublicense that is separate from a principal license; or

(ii) issue a single sublicense that covers more than one outlet in or on the boundaries of the principal licensee.

(3) When determining the total number of licenses the commission has issued for each type of retail license, the commission may not include a sublicense as one of the retail licenses issued under the provisions applicable to that sublicense.

(4) If a principal licensee seeks to add a sublicense after the commission issues the person's principal license, the principal licensee shall file with the department:

(a) a nonrefundable $300 application fee;

(b) an initial license fee of $2,250, which the commission shall refund if the commission does not issue the proposed sublicense;

(c) written consent of the local authority;

(d) a copy of:

(i) the principal licensee's current business; and

(ii) the proposed sublicensee's current business license, if the relevant political subdivision determines that the proposed sublicensee's business license is separate from the principal licensee's business license;

(e) evidence that the proposed sublicensed premises is entirely within the boundary of the principal license;

(f) a description, floor plan, and boundary map of the proposed sublicensed premises designating:

(i) each location at which the principal licensee proposes that an alcoholic product be stored; and

(ii) each location from which the principal licensee proposes that an alcoholic product be sold, furnished, or consumed;

(g) evidence that the principal licensee carries:

(i) public liability insurance in an amount and form satisfactory to the department; and

(ii) dramshop insurance coverage in the amount required by Section 32B-5-201 that covers the proposed sublicense;

(h) a signed consent form stating that the principal licensee will permit any authorized representative of the commission or department, or any law enforcement officer, to have an unrestricted right to enter the proposed sublicensed premises;

(i) if the principal licensee is an entity, proper verification evidencing that a person who signs the application is authorized to sign on behalf of the entity; and

(j) any other information the commission or department may require.

§ 32B-8d-104 General operational requirements for a sublicense.

(1) Except as provided in Subsections (2) through (5), a person operating under a sublicense is subject to the operational requirements under the provisions applicable to the sublicense.

(2) Notwithstanding a requirement in the provisions applicable to the sublicense, a person operating under the sublicense is not subject to a requirement that a certain percentage of the gross receipts for the sublicense be from the sale of food, except to the extent that the gross receipts for the sublicense are included in calculating the percentages under Subsections 32B-8-401(3), 32B-8b-301(6), and 32B-8c-301(3).

(3) Notwithstanding Section 32B-5-307,a patron may transport beer between the sublicensed premises of an arena licensee's accompanying sublicenses, if the patron transports the beer from and to an area of each sublicensed premises:

(a) that is adjacent to the other; and

(b) where the consumption of beer is permitted.

(4) Notwithstanding Section 32B-5-307, staff of a sublicensee or person otherwise operating under a sublicense of a hotel licensee or a resort licensee may transport an alcoholic beverage from and to sublicensed premises of the hotel license or resort license, if:

(a) the sublicensee is:

(i) a full-service restaurant sublicensee;

(ii) a limited-service restaurant sublicensee;

(iii) a bar establishment sublicensee;

(iv) a beer-only restaurant sublicensee; or

(v) an on-premise beer retailer sublicensee;

(b) the individual staff carries the alcoholic beverage:

(i) from the sublicensed premises of a sublicensee described in Subsection (4)(a);

(ii) briefly through an unlicensed area or briefly through sublicensed premises on which the type of alcoholic beverage that the individual staff carries is permitted; and

(iii) to the sublicensed premises of a sublicensee described in Subsection (4)(a); and

(c) the individual staff at all times stays within:

(i) the boundary of the hotel; or

(ii) the boundary of the resort building.

(5)

(a) Notwithstanding Section 32B-5-307, 32B-6-605, or 32B-6-1005, a patron may transport an alcoholic beverage between any of the following locations, if the patron lawfully obtained the alcoholic beverage on the premises of a sublicensee described in Subsections (5)(a)(i) through (iv) and complies with Subsection (5)(b):

(i) a bar establishment sublicensee's sublicensed premises;

(ii) a hospitality amenity sublicensee's sublicensed premises;

(iii) an on-premise banquet sublicensee's sublicensed premises; and

(iv) a guest room.

(b) A patron may transport an alcoholic beverage in accordance with Subsection (5)(a) only if:

(i) the patron travels exclusively within a designated conveyance area as defined in Section 32B-8-102 or 32B-8b-102; and

(ii) the alcoholic beverage:

(A) is not in the alcoholic beverage's original container; and

(B) is in an opaque or solid color container that is readily identifiable as intended for use in a designated conveyance area.

(6) Except as provided in Section 32B-8-502, for purposes of interpreting an operational requirement imposed by the provisions applicable to a sublicense:

(a) a requirement imposed on a sublicensee or person operating under a sublicense applies to the principal licensee; and

(b) a requirement imposed on staff of a sublicensee or person operating under a sublicense applies to staff of the principal licensee.

§ 32B-8d-105 Enforcement of operational requirements.

(1) Except as provided in Subsection 32B-8-502(2) and in addition to Subsection (2), failure by a person to comply with this chapter or an operational requirement under a provision applicable to a sublicense may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(a) a principal licensee;

(b) individual staff of a principal licensee;

(c) a sublicensee or person otherwise operating under a sublicense;

(d) individual staff of a sublicensee or person otherwise operating under a sublicense; or

(e) any combination of the persons listed in Subsections (1)(a) through (d).

(2) An operational requirement applicable to a sublicensee or person operating under a sublicense is enforced as provided by the provisions applicable to the sublicense.

Part 2 Resort Spa Sublicense

§ 32B-8d-201 Title.

This part is known as " Spa Sublicense."

§ 32B-8d-202 Commission's power to issue a spa sublicense.

(1) Before a person may store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product on the person's premises as a spa sublicensee, a resort licensee, a hotel licensee, or a person applying for a resort license or a hotel license shall first obtain a spa sublicense from the commission in accordance with this part.

(2) The commission may only issue a spa sublicense to:

(a) a resort licensee;

(b) a hotel licensee;

(c) a person applying for a resort license, contingent on the issuance of the resort license; or

(d) a person applying for a hotel license, contingent on the issuance of the hotel license.

(3) A spa sublicense premises shall fall entirely within the:

(a) boundary of a resort building that is part of the resort to which the spa sublicense is connected; or

(b) boundary of a hotel that is part of the hotel to which the spa sublicense is connected.

§ 32B-8d-203 Specific licensing requirements for spa sublicense.

(1)

(a) In accordance with Subsection 32B-8d-103(2), a person may not file a written application with the department to obtain a spa sublicense that is separate from the person's application for a resort license or a hotel license, unless the person seeks the spa sublicense after the commission issues the person a resort license or a hotel license.

(b) If a resort licensee or a hotel licensee seeks to add a spa sublicense after the licensee's resort license or hotel license is issued, the licensee shall comply with Subsection 32B-8d-103(4).

(2)

(a) A spa sublicense expires on October 31 of each year.

(b) To renew a spa sublicense, the corresponding resort licensee or hotel licensee shall renew the spa sublicense as part of renewing the licensee's resort license or hotel license.

(c)

(i) Failure of a resort licensee to meet the renewal requirements for a resort license results in an automatic forfeiture of the spa sublicense effective the day on which the resort license expires.

(ii) Failure of a hotel licensee to meet the renewal requirements for a hotel license results in an automatic forfeiture of the spa sublicense effective the day on which the hotel license expires.

§ 32B-8d-204 Specific qualifications for a spa sublicense.

(1) A person employed to act in a supervisory or managerial capacity for the spa sublicense is subject to qualification requirements of Section 32B-1-304 for licensees.

(2) If a person no longer possesses the qualifications required by Section 32B-1-304 for obtaining the spa sublicense or the corresponding resort license or hotel license, the commission may suspend or revoke the spa sublicense that is part of the resort license or hotel license.

§ 32B-8d-205 Specific operational requirements for a spa sublicense.

(1)

(a) In addition to complying with Chapter 5, Part 3, Retail Licensee Operational Requirements, a resort licensee, staff of the resort licensee, a hotel licensee, and staff of the hotel licensee, shall comply with this section.

(b) A spa sublicensee or a person otherwise operating under a spa sublicense and staff of a spa sublicensee or a person otherwise operating under a spa sublicense shall comply with:

(i) Chapter 5, Part 3, Retail Licensee Operational Requirements as if the spa sublicensee is a retail licensee, unless a provision conflicts with this chapter; and

(ii) this chapter.

(c) Subject to Section 32B-8-502, failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a resort licensee;

(ii) staff of a resort licensee;

(iii) a hotel licensee;

(iv) staff of a hotel licensee;

(v) a spa sublicensee or person otherwise operating under a spa sublicense;

(vi) individual staff of a spa sublicensee or person otherwise operating under a spa sublicense; or

(vii) any combination of the persons listed in Subsections (1)(c)(i) through (vi).

(2)

(a) For purposes of the spa sublicense, the corresponding resort licensee or hotel licensee shall ensure that a record is maintained or used for the spa sublicense:

(i) as the department requires; and

(ii) for a minimum period of three years.

(b) A spa sublicensee record is subject to inspection by an authorized representative of the commission and the department.

(c) A resort licensee or a hotel licensee shall allow the department, through a compliance officer of the department, to audit the records for a spa sublicense at the times the department considers advisable.

(d) The department shall audit the records for a spa sublicense at least once annually.

(e) Section 32B-1-205 applies to a record required to be made, maintained, or used in accordance with this Subsection (2).

(3)

(a) A spa sublicensee or person operating under a spa sublicense may not sell, offer for sale, or furnish liquor at a spa during a period that:

(i) begins at 1 a.m.; and

(ii) ends at 9:59 a.m.

(b) A spa sublicensee or person operating under a spa sublicense may sell, offer for sale, or furnish beer during the hours specified in Chapter 6, Part 7, On-Premise Beer Retailer License, for an on-premise beer retailer.

(c)

(i) Notwithstanding Subsections (3)(a) and (b), a spa shall remain open for one hour after the spa ceases the sale and furnishing of an alcoholic product during which time a person at the spa may finish consuming:

(A) a single drink containing spirituous liquor;

(B) except as provided in Subsection (3)(c)(i)(C), a single serving of wine not exceeding five ounces;

(C) a single serving not exceeding 16 ounces of hard cider that is furnished in a sealed container and contains no more than 5% of alcohol by volume;

(D) a single serving of heavy beer;

(E) a single serving not exceeding 26 ounces of beer; or

(F) a single serving of a flavored malt beverage.

(ii) A spa is not required to remain open:

(A) after all individuals have vacated the spa sublicensee's sublicensed premises; or

(B) during an emergency.

(4)

(a) A minor may not be admitted into, use, or be on the sublicensed premises of a spa sublicense unless accompanied by an individual 21 years old or older.

(b) A minor permitted under Subsection (4)(a) to be admitted into, use, or be on the sublicensed premises of a spa sublicense:

(i) may only be admitted into or be on a lounge or bar area of the spa sublicensee's sublicensed premises momentarily while en route to another area of the spa; and

(ii) may not remain or sit in the lounge or bar area of the spa sublicensee's sublicensed premises.

(5) A spa sublicensee shall have food available at all times when an alcoholic product is sold, offered for sale, furnished, or consumed on the spa sublicensee's sublicensed premises.

(6)

(a) Subject to the other provisions of this Subsection (6), a patron may not have more than two alcoholic products of any kind at a time before the patron.

(b) A spa patron may not have two spirituous liquor drinks before the spa patron if one of the spirituous liquor drinks consists only of the primary spirituous liquor for the other spirituous liquor drink.

(c) An individual portion of wine is considered to be one alcoholic product under this Subsection (6).

(7)

(a) An alcoholic product may only be consumed at a table or counter.

(b) An alcoholic product may not be served to or consumed by a patron at a dispensing structure.

(8)

(a) A spa sublicensee or person operating under a spa sublicense shall have available on the spa sublicense's sublicensed premises for a patron to review at the time that the patron requests it, a written alcoholic product price list or a menu containing the price of an alcoholic product sold or furnished by the spa sublicensee including:

(i) a set-up charge;

(ii) a service charge; or

(iii) a chilling fee.

(b) A charge or fee made in connection with the sale, service, or consumption of liquor may be stated in food or alcoholic product menus including:

(i) a set-up charge;

(ii) a service charge; or

(iii) a chilling fee.

(9)

(a) A resort licensee or hotel licensee shall own or lease premises suitable for the spa sublicense's activities.

(b) A resort licensee or hotel licensee may not maintain premises in a manner that barricades or conceals the spa sublicense's operation.

(10) Subject to the other provisions of this section, a spa sublicensee or person operating under a spa sublicense may not sell an alcoholic product to or allow an individual to be admitted to or use the spa sublicensee's sublicensed premises other than:

(a) a resident; or

(b) a customer.

Chapter 9 Event Permit Act

Part 1 General Provisions

§ 32B-9-101 Title.

This chapter is known as the "Event Permit Act."

§ 32B-9-102 Definitions.

As used in this chapter:

(1) "Single event permit" means an event permit issued in accordance with Part 3, Single Event Permit.

(2) "Temporary beer event permit" means an event permit issued in accordance with Part 4, Temporary Beer Event Permit.

Part 2 Event Permitting General Provisions

§ 32B-9-201 Application requirements for event permit.

(1) To obtain an event permit, a person shall submit to the department:

(a) a written application in a form that the department prescribes;

(b) an event permit fee:

(i) in the amount specified in the relevant part under this chapter for the type of event permit for which the person is applying; and

(ii) that is refundable if an event permit is not issued;

(c) written consent of the local authority;

(d) a bond as specified by Section 32B-9-203;

(e) the times, dates, location, estimated attendance, nature, and purpose of the event;

(f) a description or floor plan designating:

(i) the area in which the person proposes that an alcoholic product be stored;

(ii) the site from which the person proposes that an alcoholic product be sold, offered for sale, or furnished; and

(iii) the area in which the person proposes that an alcoholic product be allowed to be consumed;

(g) a signed consent form stating that the event permittee will permit any authorized representative of the commission, department, or any law enforcement officer to have unrestricted right to enter the premises during the event;

(h) if the person is an entity, proper verification evidencing that a person who signs the application is authorized to sign on behalf of the entity; and

(i) any other information as the commission or department may require.

(2) If a person substantially changes the person's application under Subsection (1) after the person initially submits the application, the person shall pay to the department a fee:

(a) in an amount the department prescribes in accordance with Section 63J-1-504; and

(b) that is nonrefundable, regardless of whether the department issues an event permit.

(3) An entity applying for a permit need not meet the requirements of Subsections (1)(b), (c), and (d) if the entity is:

(a) a state agency; or

(b) a political subdivision of the state.

(4) The director may not issue an event permit to a person who is disqualified under Section 32B-1-304.

(5)

(a) The proximity requirements of Section 32B-1-202 do not apply to an event permit.

(b) Notwithstanding Subsection (5)(a), nothing in this section prevents the director or the commission from considering the proximity of an educational, religious, or recreational facility, or any other relevant factor in deciding whether to issue an event permit.

§ 32B-9-202 Duties before issuing event permit.

(1)

(a) Before the director may issue an event permit, the department shall conduct an investigation and may hold public hearings to gather information and make recommendations to the director as to whether the director should issue an event permit.

(b) The department shall provide the information and recommendations described in Subsection (1)(a) to the director to aid in the director's determination.

(2) Before issuing an event permit, the director shall:

(a) determine that the person filed a complete application and is in compliance with:

(i) Section 32B-9-201; and

(ii) the relevant part under this chapter for the type of event permit for which the person is applying;

(b) determine that the person is not disqualified under Section 32B-1-304;

(c) consider the purpose of the organization or its local lodge, chapter, or other local unit;

(d) consider the times, dates, location, estimated attendance, nature, and purpose of the event;

(e) to minimize the risk of minors being sold or furnished alcohol or adults being overserved alcohol at the event, determine that adequate and appropriate control measures and adequate and appropriate enforcement measures are in place at the event to assure that minors will not be sold or furnished alcohol and that adults will not be overserved, except that adequate and appropriate control and enforcement measures may be different for small, large, indoor, or outdoor events;

(f) determine that the event permit is not being sought by the person as a means to circumvent other applicable requirements of this title, notwithstanding that the applicant may hold one or more licenses issued under this title;

(g) consider, for the period of three years before the date of the event, the violation history of:

(i) the applicant; and

(ii) the venue where the event will be held; and

(h) consider any other factor the director considers necessary.

(3)

(a)

(i) The director may at any time refer an application for an event permit directly to the commission for a determination as to whether an event permit should be issued or denied.

(ii) For purposes of this title, an event permit issued by the commission is to be treated the same as an event permit issued by the director.

(b) If the commission finds that an event permit was improperly issued or that the permittee has violated this chapter, the commission may take any action permitted under this title.

(4) Once the director issues an event permit, the department shall send a copy of the approved application and the event permit by written or electronic means to the state and local law enforcement authorities at least three days before the event.

(5) The director shall provide the commission a monthly report of the actions taken by the director under this part.

(6) If authorized by the director, the deputy director may act on behalf of the director for purposes of issuing an event permit under this chapter.

§ 32B-9-203 Bond for event permit.

(1)

(a) A person applying for an event permit shall post a surety bond:

(i) in the amount specified in this chapter for the type of event permit for which the person is applying; and

(ii) payable to the department.

(b) An event permittee shall procure and maintain a bond required under this section for as long as the event permit is in effect.

(2) A bond posted by an event permittee under this section shall be:

(a) in a form approved by the attorney general; and

(b) conditioned upon the event permittee's faithful compliance with this title and the rules of the commission.

(3) No part of a bond posted by an event permittee under this section may be withdrawn during the period the event permit is in effect.

(4)

(a) A bond posted by an event permittee under this section may be forfeited if the event permit is revoked.

(b) Notwithstanding Subsection (4)(a), the department may make a claim against a bond posted by an event permittee for money owed the department under this title without the commission first revoking the event permit.

§ 32B-9-204 General operational requirements for an event permit.

(1)

(a) An event permittee and a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic product at an event for which an event permit is issued, shall comply with this title and rules of the commission.

(b) Failure to comply as provided in Subsection (1)(a):

(i) may result in:

(A) disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(I) an event permittee;

(II) a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic product at the event; or

(III) any combination of the persons listed in this Subsection (1)(b);

(B) immediate revocation of the event permit;

(C) forfeiture of a bond; or

(D) immediate seizure of an alcoholic product present at the event; and

(ii) if the event permit is revoked, disqualifies the event permittee from applying for an event permit for a period of three years from the date of revocation of the event permit.

(c) An alcoholic product seized under this Subsection (1) shall be returned to the event permittee after an event if forfeiture proceedings are not instituted under Section 32B-4-206.

(2)

(a) If there is a conflict between this part and the relevant part under this chapter for the specific type of special use permit held by the special use permittee, the relevant part governs.

(b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," an event permittee may only sell, offer for sale, or furnish an alcoholic product specified in the relevant part under this chapter for the type of event permit that is held by the event permittee.

(c) Notwithstanding that this part or the relevant part under this chapter for the type of event permit held by an event permittee refers to "event permittee," a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic product at the event for which the event permit is issued is subject to the same requirement or prohibition.

(3) An event permittee shall display a copy of the event permit in a prominent place in the area in which an alcoholic product is sold, offered for sale, furnished, and consumed.

(4) An event permittee may not on the premises of the event:

(a) engage in or allow any form of gambling, as defined in Section 76-9-1401, or fringe gambling, as defined in Section 76-9-1401;

(b) have any fringe gaming device, video gaming device, or gambling device or record as defined in Section 76-9-1401; or

(c) engage in or permit a contest, game, gaming scheme, or gaming device that requires the risking of something of value for a return or for an outcome when the return or outcome is based upon an element of chance, excluding the playing of an amusement device that confers only an immediate and unrecorded right of replay not exchangeable for value.

(5) An event permittee may not knowingly allow a person at an event to, in violation of Title 58, Chapter 37, Controlled Substances, or Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances, or Part 3, Offenses Concerning Drug Paraphernalia:

(a) sell, distribute, possess, or use a controlled substance, as defined in Section 58-37-101; or

(b) use, deliver, or possess with the intent to deliver drug paraphernalia, as defined in Section 76-18-301.

(6) An event permittee may not sell, offer for sale, or furnish beer except beer purchases from:

(a) a beer wholesaler licensee;

(b) a beer retailer; or

(c) a small brewer.

(7) An event permittee may not store, sell, offer for sale, furnish, or allow the consumption of an alcoholic product purchased for an event in a location other than that described in the application and designated on the event permit unless the event permittee first applies for and receives approval from the director for a change of location.

(8)

(a) Subject to Subsection (8)(b), an event permittee may sell, offer for sale, or furnish beer for on-premise consumption:

(i) in an open original container; and

(ii) in a container on draft.

(b) An event permittee may not sell, offer for sale, or furnish beer sold in accordance with Subsection (8)(a):

(i) in a size of container that exceeds two liters; or

(ii) to an individual patron in a size of container that exceeds one liter.

(9)

(a) An event permittee may not sell or offer for sale an alcoholic product at less than the cost of the alcoholic product to the event permittee.

(b) An event permittee may not sell an alcoholic product at a discount price on any date or at any time.

(c) An event permittee may not sell or offer for sale an alcoholic product at a price that encourages overconsumption or intoxication.

(d) An event permittee may not sell or offer for sale an alcoholic product at a special or reduced price for only certain hours of the day of an event.

(e) An event permittee may not sell, offer for sale, or furnish more than one alcoholic product at the price of a single alcoholic product.

(f) An event permittee, or a person operating, selling, offering, or furnishing an alcoholic product under an event permit, may not sell, offer for sale, or furnish an indefinite or unlimited number of alcoholic products during a set period for a fixed price, unless:

(i) the alcoholic product is served to a patron at a seated event;

(ii) food is available whenever the alcoholic product is sold, offered for sale, or furnished; and

(iii) no person advertises that at the event a person may be sold or furnished an indefinite or unlimited number of alcoholic products during a set period for a fixed price.

(g) An event permittee may not engage in a public promotion involving or offering a free alcoholic product to the general public.

(10) An event permittee may not sell, offer for sale, or furnish an alcoholic product to:

(a) a minor;

(b) a person actually, apparently, or obviously intoxicated;

(c) a known interdicted person; or

(d) a known habitual drunkard.

(11)

(a) An alcoholic product is considered under the control of the event permittee during an event.

(b) A patron at an event may not bring an alcoholic product onto the premises of the event.

(12) An event permittee may not permit a patron to carry from the premises an open container that:

(a) is used primarily for drinking purposes; and

(b) contains an alcoholic product.

(13)

(a) A person involved in the storage, sale, or furnishing of an alcoholic product at an event is considered under the supervision and direction of the event permittee.

(b) A person involved in the sale, offer for sale, or furnishing of an alcoholic product at an event may not, while on duty:

(i) consume an alcoholic product; or

(ii) be intoxicated.

(14) A minor may not handle, sell, offer for sale, or furnish an alcoholic product at an event.

(15) The location specified in an event permit may not be changed without prior written approval of the commission.

(16) An event permittee may not sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the event permit to another person whether for monetary gain or not.

(17)

(a) An event permittee may not sell, offer for sale, furnish, or allow the consumption of an alcoholic product during a period that:

(i) begins at 1 a.m.; and

(ii) ends at 9:59 a.m.

(b) This Subsection (17) does not preclude a local authority from being more restrictive with respect to the hours of sale, offer for sale, furnishing, or consumption of an alcoholic product at an event.

(18) A patron may have no more than one alcoholic product of any kind at a time before the patron.

(19)

(a) An event permittee shall display, in a prominent place, a sign in large letters that consists of text in the following order:

(i) a header that reads: "WARNING";

(ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy can cause birth defects and permanent brain damage for the child.";

(iii) a statement in smaller font that reads: "Call the Utah Department of Health and Human Services at [insert most current toll-free number] with questions or for more information.";

(iv) a header that reads: "WARNING"; and

(v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah."

(b)

(i) The text described in Subsections (19)(a)(i) through (iii) shall be in a different font style than the text described in Subsections (19)(a)(iv) and (v).

(ii) The warning statements in the sign described in Subsection (19)(a) shall be in the same font size.

(c) The Department of Health and Human Services shall work with the commission and department to facilitate consistency in the format of a sign required under this section.

Part 3 Single Event Permit

§ 32B-9-301 Title.

This part is known as "Single Event Permit."

§ 32B-9-302 Definitions.

As used in this part:

(1) "120 hour single event permit" means a single event permit that authorizes under this part the storage, sale, offering for sale, furnishing, and consumption of liquor for a period not to exceed 120 consecutive hours.

(2) "72 hour single event permit" means a single event permit that authorizes under this part the storage, sale, offering for sale, furnishing, and consumption of liquor for a period not to exceed 72 consecutive hours.

(3) "Single event permit" means:

(a) a 120 hour single event permit; and

(b) a 72 hour single event permit.

§ 32B-9-303 Director's power to issue single event permit.

(1) Before a person may sell, offer for sale, or furnish liquor at retail for on-premise consumption at an event, the person shall first obtain a single event permit from the director in accordance with this part.

(2)

(a) Subject to Subsection (5), the director may issue a single event permit to any of the following that is conducting a convention, civic, or community enterprise, a bona fide:

(i) partnership;

(ii) corporation;

(iii) limited liability company;

(iv) religious organization;

(v) political organization;

(vi) incorporated association;

(vii) recognized subordinate lodge, chapter, or other local unit of an entity described in this Subsection (2)(a);

(viii) state agency; or

(ix) political subdivision of the state.

(b) The director may not issue a single event permit to an entity that has not been in existence as a bona fide entity for at least one year before the day on which the entity applies for a single event permit.

(3)

(a) A single event permit may authorize:

(i) the storage, sale, offering for sale, furnishing, and consumption of liquor at an event at which the storage, sale, offering for sale, furnishing, or consumption of liquor is otherwise prohibited by this title under either:

(A) a 120 hour single event permit; or

(B) a 72 hour single event permit; and

(ii) the storage, sale, offer for sale, furnishing, and consumption of beer at the same event for the period that the storage, sale, offer for sale, furnishing, or consumption of liquor is authorized under Subsection (3)(a)(i) for the single event permit.

(b) The single event permit shall state in writing whether the single event permit is:

(i) a 120 hour single event permit; or

(ii) a 72 hour single event permit.

(4) The director may not issue more than:

(a) four single event permits in any one calendar year to the same person listed in Subsection (2) if one or more of the single event permits is a 120 hour single event permit; or

(b) 24 single event permits in any one calendar year to the same person listed in Subsection (2) if each of the single event permits issued to that person is a 72 hour single event permit.

(5) Before the director issues or denies the issuance of a single event permit under this section, the director shall comply with Section 32B-9-202.

§ 32B-9-304 Specific permitting requirements for single event permit.

(1) To obtain a single event permit, in addition to complying with Part 2, Event Permitting General Provisions, an entity described in Subsection 32B-9-303(2)(a) shall state in its written application:

(a) the purpose of the entity described in Subsection 32B-9-303(2)(a);

(b) the time period under Subsection 32B-9-303(3)(a)(i)(A) or (B) for which the entity is applying; and

(c) if submitting the first request for a single event permit in a calendar year, whether it is requesting to be under Subsection 32B-9-303(4)(a) or (b).

(2) The application fee for a single event permit is $125.

(3) The bond amount required for a single event permit is the penal sum of $1,000.

§ 32B-9-305 Specific operational requirements for single event permit.

(1)

(a) In addition to complying with Section 32B-9-204, a single event permittee or a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic product at the event shall comply with this section.

(b) Failure to comply as provided in Subsection (1)(a):

(i) may result in:

(A) disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(I) a single event permittee;

(II) a person involved in the storage, sale, offer for sale, or furnishing of an alcoholic product at the event; or

(III) any combination of persons listed in this Subsection (1)(b);

(B) immediate revocation of the single event permit;

(C) forfeiture of a bond; or

(D) immediate seizure of an alcoholic product present at the event; and

(ii) if the single event permit is revoked, disqualifies the single event permittee from applying for a single event permit or temporary beer event permit for a period of three years from the date of revocation of the single event permit.

(c) An alcoholic product seized under this Subsection (1) shall be returned to the single event permittee after an event if forfeiture proceedings are not instituted under Section 32B-4-206.

(2)

(a) A single event permittee shall make and maintain an expense and revenue ledger or record showing:

(i) expenditures made for:

(A) liquor;

(B) beer;

(C) set-ups; and

(D) an ingredient or component of an alcoholic product other than a set-up; and

(ii) the revenue from the sale of an alcoholic product.

(b) Section 32B-1-205 applies to a record required to be made or maintained in accordance with this Subsection (2).

(3) A single event permittee shall purchase liquor stored, sold, offered for sale, furnished, or consumed at an event from a state store or package agency.

(4)

(a) A single event permittee may not sell, offer for sale, or furnish a primary spirituous liquor in a quantity that exceeds 1.5 ounces per beverage, except that additional spirituous liquor may be used in a beverage if:

(i) used as a secondary flavoring ingredient;

(ii) used in conjunction with the primary spirituous liquor;

(iii) the secondary ingredient is not the only spirituous liquor in the beverage; and

(iv) subject to Subsection 32B-9-204(18):

(A) a patron has no more than 2.5 ounces of spirituous liquor at a time before the patron; and

(B) a patron has no more than one spirituous liquor drink at a time before the patron.

(b) Spirituous liquor need not be dispensed through a calibrated metered dispensing system.

(5)

(a) A single event permittee may sell, offer for sale, or furnish wine by the glass or an individual portion, except that a glass or individual portion may not exceed five ounces.

(b) A single event permittee may furnish an individual portion served to a patron in more than one glass if the total amount of wine does not exceed five ounces.

(c) An individual portion of wine is considered to be one alcoholic product under Subsection 32B-9-204(18).

(d) Except as provided in Subsection (10), a single event permittee may sell, offer for sale, or furnish wine in a container not exceeding 1.5 liters at a price fixed by the commission.

(6) Except as provided in Subsection (10), a single event permittee may sell, offer for sale, or furnish heavy beer in an original container at a price fixed by the commission, except that the original container may not exceed one liter.

(7) Except as provided in Subsection (10), a single event permittee may sell, offer for sale, or furnish a flavored malt beverage in an original container at a price fixed by the commission, except that the original container may not exceed one liter.

(8) Except as provided in Subsection (10), a single event permittee may sell liquor only at a price fixed by the commission.

(9) A single event permittee may perform a service and assess a service charge as authorized by commission rule for liquor purchased at an event.

(10) This section does not prohibit a single event permittee from rounding the price of liquor in accordance with Section 32B-2-213.

Part 4 Temporary Beer Event Permit

§ 32B-9-401 Title.

This part is known as "Temporary Beer Event Permit."

§ 32B-9-402 Definitions.

Reserved

§ 32B-9-403 Director's power to issue temporary beer event permit.

(1) Before a person may sell, offer for sale, or furnish beer at retail for on-premise consumption at an event, the person shall obtain in accordance with this part:

(a) a single event permit; or

(b)

(i) a temporary beer event permit; and

(ii)

(A) a beer permit issued by the local authority as provided in Section 32B-9-404; or

(B) written consent of the local authority to sell beer at retail for on-premise consumption at the event.

(2)

(a) Subject to Subsection (4), the director may issue a temporary beer event permit to allow the sale, offering for sale, or furnishing of beer for on-premise consumption only at an event that does not last longer than 30 days.

(b) A temporary beer event permit authorizes, for a period not to exceed 30 days, the storage, sale, offer for sale, furnishing, and consumption of beer at an event.

(c) If a person obtains a temporary beer event permit for an event that lasts no longer than 30 days, an on-premise beer retailer license is not required for the sale of beer at the event.

(3)

(a) The director may not issue a temporary beer event permit to a person if the aggregate of the days that the person is authorized to store, sell, offer for sale, or furnish an alcoholic product under a temporary beer event permit will exceed a total of 90 days in any one calendar year.

(b) The director may not issue, and a person may not obtain, a temporary beer event permit to avoid or attempt to avoid the requirement to be licensed under Chapter 6, Part 7, On-Premise Beer Retailer License.

(4) Before the director issues or denies the issuance of a temporary beer event permit under this section, the director shall comply with Section 32B-9-202.

§ 32B-9-404 Local authority's power to issue temporary beer event permit.

(1) A local authority may issue, suspend, and revoke a temporary permit to sell, offer for sale, or furnish beer for on-premise consumption at an event, except that the local authority may not issue a temporary permit if the event lasts longer than 30 days.

(2) Suspension or revocation of a temporary beer event permit issued under Section 32B-9-403 or a temporary permit issued by a local authority under this section prohibits the temporary beer event permittee who has a permit suspended or revoked by either the commission or local authority from continuing to operate under the other state or local permit.

§ 32B-9-405 Specific permitting requirements for temporary beer event permit issued by commission.

(1) To obtain a temporary beer event permit, in addition to complying with Part 2, Event Permitting General Provisions, a person shall state in the person's written application the purpose of the event for which the person seeks a temporary beer event permit.

(2) The application fee for a beer permit is $100.

(3) The bond amount required for a beer permit is the penal sum of $500.

§ 32B-9-406 Specific operational requirements for temporary beer event permit.

(1)

(a) In addition to complying with the requirements of Section 32B-9-204, a temporary beer event permittee or a person involved in the storage, sale, offer for sale, or furnishing of beer at the event shall comply with this section.

(b) Failure to comply as provided in Subsection (1)(a):

(i) may result in:

(A) disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(I) a temporary beer event permittee;

(II) a person involved in the storage, sale, offer for sale, or furnishing of beer at the event; or

(III) any combination of persons listed in this Subsection (1)(b);

(B) immediate revocation of the temporary beer event permit;

(C) forfeiture of a bond; or

(D) immediate seizure of beer present at the event; and

(ii) if the temporary beer event permit is revoked, disqualifies the temporary beer event permittee from applying for a temporary beer event permit or single event permit for a period of three years from the date of revocation of the temporary beer event permit.

(c) Beer seized under this Subsection (1) shall be returned to the event permittee after an event if forfeiture proceedings are not instituted under Section 32B-4-206.

(2) A temporary beer event permittee may not sell, offer for sale, or furnish an alcoholic product other than beer pursuant to a temporary beer event permit.

(3)

(a) A temporary beer event permittee shall make and maintain an expense and revenue ledger or record showing:

(i) expenditures made for beer; and

(ii) the revenue from sale of beer.

(b) Section 32B-1-205 applies to a record required to be made or maintained in accordance with this Subsection (3).

Chapter 10 Special Use Permit Act

Part 1 General Provisions

§ 32B-10-101 Title.

This chapter is known as the "Special Use Permit Act."

§ 32B-10-102 Definitions.

As used in this chapter, "special use permit" means a special use permit issued under this chapter, including:

(1) a religious wine use permit;

(2) an industrial or manufacturing use permit;

(3) a scientific or educational use permit; and

(4) a public service permit.

Part 2 Special Use Permitting General Provisions

§ 32B-10-201 Commission's power to issue special use permit.

(1) Before a person may purchase, use, store, sell, offer for sale, allow consumption, or manufacture an alcoholic product in a manner that requires a special use permit, the person shall first obtain a special use permit in accordance with this chapter.

(2)

(a) The commission may issue a special use permit for the purchase, use, storage, sale, offer for sale, consumption, or manufacture of an alcoholic product for a limited purpose specified by this chapter and the rules of the commission.

(b) A special use permit authorizes the special use permittee to purchase, use, store, sell, offer for sale, consume, or manufacture an alcoholic product only in the quantity, in a type, and for a purpose stated in the special use permit.

§ 32B-10-202 Application for special use permit -- Qualifications.

(1) To obtain a special use permit, a person shall submit to the department:

(a) a written application in a form prescribed by the department;

(b) a nonrefundable application fee, if required by the relevant part of this chapter applicable to the type of special use permit for which the person applies;

(c) an initial permit fee:

(i) if required by the relevant part of this chapter applicable to the type of special use permit for which the person applies; and

(ii) that is refundable if a special use permit is not issued;

(d) a one-time special use permit fee if required by a section of this chapter:

(i) applicable to the type of special use permit for which the person applies; and

(ii) that is refundable if a special use permit is not issued;

(e) a statement of the purpose for which the person applies for the special use permit;

(f) a description of the types of alcoholic product the person intends to use under authority of the special use permit;

(g) written consent of the local authority;

(h) if required, a bond as provided in Section 32B-10-205;

(i) a floor plan of the immediate area within the premises in which the person proposes that an alcoholic product will be used, mixed, stored, sold, or consumed if required by the relevant part of this chapter applicable to the type of special use permit for which the person applies;

(j) a signed consent form stating that the special use permittee will permit any authorized representative of the commission, department, or any other law enforcement officer to have unrestricted right to enter the special use permittee's premises;

(k) if the person is an entity, proper verification evidencing that a person who signs the application is authorized to sign on behalf of the entity; and

(l) any other information the commission or department may require.

(2)

(a) The commission may issue a special use permit only to a person who qualifies as follows:

(i) the commission may issue a religious wine use permit to a religious organization;

(ii) the commission may issue an industrial or manufacturing use permit to a person engaged in an industrial or manufacturing pursuit;

(iii) the commission may issue a scientific or educational use permit to a person engaged in a scientific or educational pursuit; and

(iv) the commission may issue a public service permit to:

(A) an operator of an airline, railroad, or other public conveyance; or

(B) an entity with authorization from an international airport to establish and operate a hospitality room at the international airport.

(b) The commission may not issue a special use permit to a person who is disqualified under Section 32B-1-304.

(c) If a person to whom a special use permit is issued no longer possesses the qualifications required by this title for obtaining that special use permit, the commission may suspend or revoke that special use permit.

§ 32B-10-203 Renewal of special use permit.

(1) A special use permit expires on December 31 of each year unless otherwise provided on the special use permit.

(2) To renew a renewable special use permit, a person shall submit a completed renewal application to the department:

(a) no later than November 30; and

(b) in a form prescribed by the department.

(3) Failure to meet the renewal requirements results in an automatic forfeiture of the special use permit, effective on the date the existing special use permit expires.

§ 32B-10-204 Duties of commission and department before issuing special use permit.

(1)

(a) Before the commission issues a special use permit, the department shall conduct an investigation and may hold public hearings to gather information and make recommendations to the commission as to whether a special use permit should be issued.

(b) The department shall forward the information it gathers and its recommendations to the commission to aid in the commission's determination.

(2) Before issuing a special use permit, the commission shall:

(a) determine that the person filed a complete application and is in compliance with:

(i) Section 32B-10-202; and

(ii) the relevant part under this chapter that applies to the special use permit for which the person is applying;

(b) determine that the person is not disqualified under Section 32B-1-304;

(c) consider the physical characteristics of the premises where an alcoholic product is proposed to be used, mixed, stored, sold, offered for sale, or furnished such as:

(i) the condition of the premises;

(ii) public visibility; and

(iii) safety considerations;

(d) consider the person's ability to properly use the special use permit within the requirements of this title and the commission rules including:

(i) the proposed use of the special use permit; and

(ii) the nature and type of person making use of the special use permit;

(e) consider specific factors regarding the specific type of special use permit sought by the person;

(f) approve of the location and equipment used by the person to distill alcohol for experimental testing purposes or use as a fuel; and

(g) consider any other factor the commission considers necessary.

§ 32B-10-205 Bond for special use permit.

(1) A special use permittee shall post a cash bond or surety bond only if the relevant part under this chapter for the type of special use permit requires posting of a bond.

(2)

(a) If a special use permittee is required to post a bond as provided in Subsection (1), the special use permittee shall procure and maintain the bond for as long as the special use permittee continues to operate under the special use permit.

(b) A bond required under this section shall be:

(i) in a form approved by the attorney general; and

(ii) conditioned upon the special use permittee's faithful compliance with this title and the rules of the commission.

(3) If a surety bond posted by a special use permittee under this section is canceled due to a special use permittee's negligence, the department may assess a $300 reinstatement fee.

(4) No part of a bond posted by a special use permittee under this section may be withdrawn during the period that the special use permit is in effect.

(5)

(a) A bond posted by a special use permittee under this section may be forfeited if the special use permit is revoked.

(b) Notwithstanding Subsection (5)(a), the department may make a claim against a bond posted by a special use permittee for money owed the department under this title without the commission first revoking the special use permit.

§ 32B-10-206 General operational requirements for special use permit.

(1)

(a) A special use permittee and staff of the special use permittee shall comply with this title and rules of the commission, including the relevant part of the chapter that applies to the type of special use permit held by the special use permittee.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a special use permittee;

(ii) individual staff of a special use permittee; or

(iii) a special use permittee and staff of the special use permittee.

(c) The commission may suspend or revoke a special use permit with or without cause.

(2)

(a) If there is a conflict between this part and the relevant part under this chapter for the specific type of special use permit, the relevant part under this chapter governs.

(b) Notwithstanding that this part may refer to "liquor" or an "alcoholic product," a special use permittee may only purchase, use, store, sell, offer for sale, allow consumption, or manufacture an alcoholic product authorized for the special use permit that is held by the special use permittee.

(c) Notwithstanding that this part or the relevant part under this chapter for the type of special use permit held by a special use permittee refers to "special use permittee," a person involved in the purchase, use, storage, sale, offering for sale, allowing consumption, or manufacture of an alcoholic product for which the special use permit is issued is subject to the same requirement or prohibition.

(3)

(a) A special use permittee shall make and maintain a record, as required by commission rule, of any alcoholic product purchased, used, sold, or manufactured.

(b) Section 32B-1-205 applies to a record required to be made or maintained in accordance with this Subsection (3).

(4)

(a) Except as otherwise provided in this title, a special use permittee may not purchase liquor except from a state store or package agency.

(b) A special use permittee may transport liquor purchased by the special use permittee in accordance with this Subsection (4) from the place of purchase to the special use permittee's premises.

(c) A special use permittee shall purchase liquor at prices set by the commission.

(d) When authorized by a special use permit, a special use permittee may purchase and receive an alcoholic product directly from a manufacturer for a purpose that is industrial, educational, scientific, or manufacturing.

(e) A health care facility may purchase and receive an alcoholic product directly from a manufacturer for use at the health care facility.

(5) A special use permittee may not use, mix, store, sell, offer for sale, furnish, manufacture, or allow consumption of an alcoholic product in a location other than as designated in a special use permittee's:

(a) application; or

(b) change of location request, as described in Section 32B-10-305, if:

(i) the special use permittee is a public service permittee; and

(ii) the commission approved the special use permittee's change in location request.

(6) Except as otherwise provided, a special use permittee may not sell, offer for sale, or furnish an alcoholic product to:

(a) a minor;

(b) a person actually, apparently, or obviously intoxicated;

(c) a known interdicted person; or

(d) a known habitual drunkard.

(7) A special use permittee may not employ a minor to handle an alcoholic product.

(8)

(a) The location specified in a special use permit may not be transferred from one location to another location, except as provided in Chapter 18, Part 3, Alcohol License Change of Location.

(b) A special use permittee may not sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the permit to another person whether for monetary gain or not, except as provided in Chapter 18, Part 2, Alcohol License Changes of Ownership.

(9) A special use permittee may not purchase, use, mix, store, sell, offer for sale, furnish, consume, or manufacture an alcoholic product for a purpose other than that authorized by the special use permit.

(10) The commission may prescribe by policy or rule consistent with this title, the general operational requirements of a special use permittee relating to:

(a) physical facilities;

(b) conditions of purchase, use, storage, sale, consumption, or manufacture of an alcoholic product;

(c) purchase, storage, and sales quantity limitations; and

(d) other matters considered appropriate by the commission.

§ 32B-10-207 Notifying department of change of ownership.

The commission may suspend or revoke a special use permit if a special use permittee does not immediately notify the department of a change in:

(1) ownership of the permittee's business;

(2) for a corporate owner, the:

(a) corporate officers or directors; or

(b) shareholders holding at least 20% of the total issued and outstanding stock of the corporation; or

(3) for a limited liability company:

(a) managers; or

(b) members owning at least 20% of the limited liability company.

Part 3 Public Service Permit

§ 32B-10-301 Title.

This part is known as "Public Service Permit."

§ 32B-10-302 Definitions.

As used in this part, "hospitality room" means a room or facility:

(1) that a public service permittee operates; and

(2) in which an alcoholic product is sold, offered for sale, furnished, or consumed.

§ 32B-10-303 Specific application and renewal requirements for public service permit.

(1) To obtain a public service permit, in addition to complying with Section 32B-10-202, a person shall submit to the department:

(a) a statement of the total of regularly numbered flights, trains, buses, boats, or other types of public conveyance for which the person plans to use the special use permit;

(b) a floor plan of any room or facility in which the person plans to establish a hospitality room; and

(c) evidence of proximity of a proposed hospitality room to:

(i) the arrival and departure area used by a person traveling on the person's airline, railroad, bus, boat, or other public conveyance; or

(ii) if the applicant is a person described in Subsection 32B-10-202(2)(a)(iv)(B), the arrival and departure area of another person's airline.

(2)

(a) The nonrefundable application fee for a public service permit is $75.

(b) The initial permit fee for a public service permit is $250.

(c) The bond amount required for a public service permittee is the penal sum of $1,000.

(3)

(a) To renew a public service permit, a person shall comply with Section 32B-10-203.

(b)

(i) Except as provided in Subsection (3)(b)(ii), the renewal fee for a public service permit is $30 for each regularly numbered passenger airplane flight, passenger train, bus, boat, or any other regularly scheduled public conveyance upon which an alcoholic product is sold, offered for sale, or furnished.

(ii) For an applicant described in Subsection 32B-10-202(2)(a)(iv)(B), the renewal fee for a public service permit is $5,000.

§ 32B-10-304 Specific operational requirements for a public service permit.

(1)

(a) In addition to complying with Section 32B-10-206, a public service permittee and staff of the public service permittee shall comply with this section.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a public service permittee;

(ii) individual staff of a public service permittee; or

(iii) both a public service permittee and staff of the public service permittee.

(2)

(a) A public service permittee described in Subsection 32B-10-202(2)(a)(iv)(A) whose public conveyances operate on an interstate basis may do the following:

(i) purchase an alcoholic product outside of the state;

(ii) bring an alcoholic product purchased outside of the state into the state; and

(iii) sell, offer for sale, and furnish an alcoholic product purchased outside of the state to a passenger traveling on the public service permittee's public conveyance for consumption while en route on the public conveyance.

(b) A public service permittee described in Subsection 32B-10-202(2)(a)(iv)(A) whose public conveyance operates solely within the state:

(i) may sell, offer for sale, or furnish an alcoholic product to a passenger traveling on the public service permittee's public conveyance for consumption while en route on the public conveyance; and

(ii) shall purchase:

(A) liquor from a state store or package agency; and

(B) beer from a beer wholesaler licensee.

(c) A public service permittee described in Subsection 32B-10-202(2)(a)(iv)(B):

(i) may sell, offer for sale, or furnish an alcoholic product to a patron at the public service permittee's hospitality room; and

(ii) shall purchase:

(A) liquor from a state store or package agency; and

(B) beer from a beer wholesaler licensee.

(3)

(a) A public service permittee may establish a hospitality room, if:

(i)

(A) the room is located within a depot, terminal, or similar facility adjacent to and servicing the public service permittee's airline, railroad, bus, boat, or other public conveyance; or

(B) the room is located within a terminal at an international airport and servicing another public service permittee's airline;

(ii) the room is completely enclosed and the interior is not visible to the public;

(iii) the sale, offer for sale, or furnishing of an alcoholic product is made only to a person:

(A) then in transit using the public service permittee's airline, railroad, bus line, or other public conveyance or, for a public service permittee described in Subsection (2), another public service permittee's airline; and

(B) holding a valid boarding pass or similar travel document issued by a public service permittee; and

(iv)

(A) liquor is purchased from:

(I) a state store; or

(II) a package agency; and

(B) beer is purchased from a beer wholesaler licensee.

(b)

(i) A public service permittee operating a hospitality room shall display in a prominent place in the hospitality room, a sign in large letters that consists of text in the following order:

(A) a header that reads: "WARNING";

(B) a warning statement that reads: "Drinking alcoholic beverages during pregnancy can cause birth defects and permanent brain damage for the child.";

(C) a statement in smaller font that reads: "Call the Utah Department of Health at [insert most current toll-free number] with questions or for more information.";

(D) a header that reads: "WARNING"; and

(E) a warning statement that reads: "Driving under the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah."

(ii)

(A) The text described in Subsections (3)(b)(i)(A) through (C) shall be in a different font style than the text described in Subsections (3)(b)(i)(D) and (E).

(B) The warning statements in the sign described in Subsection (3)(b)(i) shall be in the same font size.

(iii) The Department of Health shall work with the commission and department to facilitate consistency in the format of a sign required under this section.

(c) A hospitality room shall be operated in accordance with this chapter and rules adopted by the commission.

§ 32B-10-305 Change in location request for a public service permit.

(1) A public service permittee operating at an international airport may request a change in location within the international airport, if the international airport requires the public service permittee to relocate to another location within the international airport.

(2) To request a change in location, a public service permittee described in Subsection (1) shall, in a manner prescribed by the department, submit to the department:

(a) a statement of the total number of regularly numbered flights for which the public service permittee plans to use the special use permit;

(b) a floor plan of any room or facility in which the public service permittee plans to establish a hospitality room;

(c) evidence of the proximity of each proposed hospitality room to the arrival and departure area used by a person traveling the public service permittee's airline; and

(d) any other information the department requires.

(3)

(a) Before approving a public service permittee's request to change location at an international airport, the commission shall:

(i) determine that the public service permittee filed a complete change in location request, as described in Subsection (2);

(ii) determine that the public service permittee is in compliance with this chapter and part;

(iii) consider the physical characteristics of the premises where an alcoholic product is proposed to be used, mixed, stored, sold, offered for sale, or furnished, including:

(A) the conditions of the premises;

(B) public visibility; and

(C) safety considerations; and

(iv) consider any other factor the commission considers necessary.

(b) The commission may delegate to the department:

(i) the authority to approve a change in location for a public service permittee at an international airport; and

(ii) the duties described in this Subsection (3).

(4) Upon commission approval of the public service permittee's request to change location, the public service permittee shall move to the newly approved location within the international airport.

Part 4 Industrial or Manufacturing Use Permit

§ 32B-10-401 Title.

This part is known as "Industrial or Manufacturing Use Permit."

§ 32B-10-402 Definitions.

Reserved

§ 32B-10-403 Specific application requirements for industrial or manufacturing use permit.

(1) To obtain an industrial or manufacturing use permit, in addition to complying with Section 32B-10-202, a person shall submit to the department:

(a) a floor plan of the immediate area within the premises in which the person proposes that an alcoholic product be used, mixed, stored, sold, offered for sale, furnished, or consumed; and

(b) if the person is applying for an industrial or manufacturing use permit to produce gasohol or any alcoholic product, evidence that the person has:

(i) an approved Notice of Registration of Distilled Spirits Plant; and

(ii) the appropriate permit from the federal Alcohol and Tobacco Tax and Trade Bureau.

(2)

(a) The nonrefundable application fee for an industrial or manufacturing use permit is $75.

(b) The one-time special use permit fee for an industrial or manufacturing use permit is $250.

(c) The bond amount required for an industrial or manufacturing use permit is the penal sum of $1,000.

§ 32B-10-404 Specific operational requirements for industrial or manufacturing use permit.

(1)

(a) In addition to complying with Section 32B-10-206, an industrial or manufacturing use permittee and staff of the industrial or manufacturing use permittee shall comply with this section.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) an industrial or manufacturing use permittee;

(ii) individual staff of an industrial or manufacturing use permittee; or

(iii) an industrial or manufacturing use permittee and staff of the industrial or manufacturing use permittee.

(2) An industrial or manufacturing use permittee may produce for lawful use and sale the following:

(a) vinegar;

(b) preserved nonintoxicating cider;

(c) a food preparation;

(d) a United States Pharmacopoeia or national formulary preparation in conformity with Title 58, Chapter 17b, Pharmacy Practice Act, Title 58, Chapter 37, Controlled Substances, Title 58, Chapter 37c, Controlled Substance Precursors, and Title 76, Chapter 18, Part 2, Offenses Concerning Controlled Substances, Part 3, Offenses Concerning Drug Paraphernalia, and Part 4, Offenses Concerning Imitation Controlled Substances, if the preparation:

(i) conforms to standards established by:

(A) the Department of Agriculture and Food; and

(B) the Department of Health and Human Services; and

(ii) contains no more alcohol than is necessary to preserve or extract the medicinal, flavoring, or perfumed properties of the treated substances; and

(e) wood and denatured alcohol if manufactured in compliance with the formulas and regulations under Title 27, C.F.R. Parts 19, 20, and 21.

(3)

(a) An industrial or manufacturing use permittee that produces patent or proprietary medicines containing alcohol may sell or offer for sale the medicines in the original and unbroken container if the medicine contains sufficient medication to prevent its use as an alcoholic product.

(b) An industrial or manufacturing use permittee described in this Subsection (3) shall, upon request by the department, provide a sufficient sample of the medicine to enable the department to have the medicine analyzed for purposes of this section.

Part 5 Scientific or Educational Use Permit

§ 32B-10-501 Title.

This part is known as "Scientific or Educational Use Permit."

§ 32B-10-502 Definitions.

Reserved

§ 32B-10-503 Specific application requirements for scientific or educational use permit.

(1) To obtain a scientific or educational use permit, a person shall comply with Section 32B-10-202.

(2) The one-time special use permit fee for a scientific or educational use permit is $125.

Part 6 Religious Use of Alcoholic Products

§ 32B-10-601 Title.

This part is known as "Religious Use of Alcoholic Products."

§ 32B-10-602 Definitions.

Reserved

§ 32B-10-603 Specific application requirements for religious wine use permit.

(1) To purchase an alcoholic product from the department at the department's cost plus freight charges, a religious organization shall obtain a religious wine use permit.

(2) To obtain a religious wine permit, a person shall comply with Section 32B-10-202.

(3) The one-time special use permit fee for a religious wine use permit is $125.

§ 32B-10-604 Specific operational requirements for religious wine use permit.

(1)

(a) In addition to complying with Section 32B-10-206, a religious wine permittee and staff of the religious wine permittee shall comply with this section.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a religious wine permittee;

(ii) individual staff of a religious wine permittee; or

(iii) a religious wine permittee and staff of the religious wine permittee.

(2) A religious wine use permittee may purchase wine from a state store as the department may designate at the department's cost plus freight charges.

(3) A religious wine use permittee may not use wine purchased under a religious wine use permit for a purpose other than a religious purpose.

§ 32B-10-605 Religious organization exemption.

(1) A religious organization that provides or allows to be provided an alcoholic product to a person as part of the religious organization's religious services:

(a) does not violate this title by providing or allowing the provision of an alcoholic product as part of a religious service; and

(b) is not required to hold a license or special use permit to provide or allow the provision of an alcoholic product for religious services.

(2) This exemption does not exempt a religious organization from complying with this title with respect to an alcoholic product purchased by the religious organization for a purpose other than the purpose stated in Subsection (1).

Part 7 Health Care Facility or Practitioner Use of Alcoholic Products

§ 32B-10-701 Title.

This part is known as "Health Care Facility or Practitioner Use of Alcoholic Products."

§ 32B-10-702 Definitions.

As used in this part, "health care facility" means a facility that is licensed by the Department of Health and Human Services under Title 26B, Chapter 2, Part 2, Health Care Facility Licensing and Inspection.

§ 32B-10-703 Health care facility exemption.

(1)

(a) This Subsection (1) applies to a health care facility that administers or allows to be administered an alcoholic product to a patient of the health care facility if the alcoholic product is prescribed by a person licensed by the state to write a prescription.

(b) A health care facility described in Subsection (1)(a):

(i) is not in violation of this title; and

(ii) is not required to hold a license or special use permit to make or allow the administration of an alcoholic product.

(2) This exemption does not apply to an alcoholic product purchased by a health care facility for administration to a patient or a use other than one stated in Subsection (1).

§ 32B-10-704 Health care practitioner exemption.

(1) This section applies to an individual who:

(a)

(i) is a health care practitioner; or

(ii) is a veterinarian licensed under Title 58, Chapter 28, Veterinary Practice Act;

(b) is acting within the scope of individual's professional responsibility; and

(c) in a professional capacity, prescribes, prepares, or administers an alcoholic product to a person being treated or within the scope of the health care practitioner's license authority.

(2) A person described in Subsection (1):

(a) is not in violation of this title; and

(b) is not required to hold any type of license or permit to use an alcoholic product professionally.

Chapter 11 Manufacturing and Related Licenses Act

Part 1 General Provisions

§ 32B-11-101 Title.

This chapter is known as the "Manufacturing and Related Licenses Act."

§ 32B-11-102 Definitions.

As used in this chapter, "manufacturing license" means an alcoholic product manufacturing license issued under this chapter.

Part 2 Manufacturing Licensing General Provisions

§ 32B-11-201 Commission's power to issue a manufacturing license -- Certificates of approval.

(1)

(a) Except as provided in Section 32B-11-202, before a person may manufacture an alcoholic product in this state, the person shall obtain an alcoholic product manufacturing license issued by the commission in accordance with this part.

(b) A separate license is required for each place of storage, sale, and manufacture of an alcoholic product.

(c) A violation of this Subsection (1) is a class B misdemeanor.

(2) The commission may issue an alcoholic product manufacturing license to a manufacturer whose business is located in this state for the storage, sale, and manufacture of an alcoholic product for each type of manufacturing license provided by this chapter.

(3) The types of manufacturing licenses issued under this chapter are known as:

(a) a winery manufacturing license;

(b) a distillery manufacturing license; and

(c) a brewery manufacturing license.

(4)

(a) A brewer located outside the state is not required to be licensed under this chapter.

(b) A brewer described in Subsection (4)(a) shall obtain a certificate of approval from the department before selling or delivering:

(i) beer to a beer wholesaler licensee in this state;

(ii) a flavored malt beverage to:

(A) the department; or

(B) a military installation; or

(iii) if a small brewer, beer to one of the following in the state:

(A) a beer wholesaler licensee;

(B) a beer retailer; or

(C) an event permittee.

(c) To obtain a certificate of approval, a brewer shall submit to the department:

(i) a written application in a form prescribed by the department;

(ii) a nonrefundable $75 application fee;

(iii) an initial certificate of approval fee of $300 that is refundable if a certificate of approval is not issued;

(iv) evidence of authority from the federal Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury to brew beer, heavy beer, or a flavored malt beverage; and

(v) any other information the commission or department may require.

(d)

(i) One of the following shall sign and verify a written application under this Subsection (4) by oath or affirmation:

(A) a partner if the brewer is a partnership; or

(B) an executive officer, manager, or person specifically authorized by a corporation or limited liability company to sign the application.

(ii) A brewer filing an application shall attach to the application written evidence of the authority of the person described in Subsection (4)(d)(i) to sign the application.

(e)

(i) A certificate of approval under this Subsection (4) expires on December 31 of each year.

(ii) A brewer desiring to renew its certificate of approval shall submit to the department by no later than November 30 of the year the certificate of approval expires:

(A) a completed renewal application in the form prescribed by the department; and

(B) a renewal fee of $250.

(iii) Failure to meet the renewal requirements results in an automatic forfeiture of the certificate of approval effective on the date the existing certificate of approval expires.

(5)

(a) An importer or supplier of beer, heavy beer, or flavored malt beverages who is not required to be licensed under this title shall obtain a certificate of approval from the department before selling or delivering:

(i) beer to a beer wholesaler licensee in this state; or

(ii) heavy beer or a flavored malt beverage to:

(A) the department; or

(B) a military installation.

(b) To obtain a certificate of approval, an importer or supplier described in Subsection (5)(a) shall submit to the department:

(i) a written application in a form prescribed by the department;

(ii) a nonrefundable $75 application fee;

(iii) an initial certificate of approval fee of $300 that is refundable if a certificate of approval is not issued;

(iv) evidence of authority from the federal Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury to brew beer, heavy beer, or a flavored malt beverage; and

(v) any other information the commission or department may require.

(c)

(i) One of the following shall sign and verify a written application under this Subsection (5) by oath or affirmation:

(A) a partner if the importer or supplier is a partnership; or

(B) an executive officer, manager, or person specifically authorized by a corporation or limited liability company to sign the application.

(ii) An importer or supplier filing an application under this Subsection (5) shall attach to the application written evidence of the authority of the person described in Subsection (5)(c)(i) to sign the application.

(d)

(i) A certificate of approval under this Subsection (5) expires on December 31 of each year.

(ii) An importer or supplier desiring to renew its certificate of approval shall submit to the department by no later than November 30 of the year the certificate of approval expires:

(A) a completed renewal application in the form prescribed by the department; and

(B) a renewal fee of $250.

(iii) Failure to meet the renewal requirements results in an automatic forfeiture of the certificate of approval effective on the date the existing certificate of approval expires.

(6)

(a) Subject to Subsection (7), a brewer, importer, or supplier required to hold a certificate of approval under this section may not distribute beer in this state except under a written agreement with a beer wholesaler licensee in this state.

(b) An agreement described in Subsection (6)(a) shall:

(i) create a restricted exclusive sales territory that is mutually agreed upon by the persons entering into the agreement;

(ii) designate the one or more brands that may be distributed in the sales territory; and

(iii) set forth the exact geographical area of the sales territory.

(c) A brewer, importer of beer, or supplier of beer may have more than one agreement described in this Subsection (6) if each brand of the brewer, importer, or supplier distributed in the state is covered by one exclusive sales territory.

(d) A brewer, importer of beer, or supplier of beer may not enter into an agreement with more than one beer wholesaler licensee to distribute the same brand of beer in the same sales territory or any portion of the sales territory.

(7) A small brewer is not subject to the requirements of Subsection (6).

§ 32B-11-202 Exemption for manufacture of fermented beverage.

(1) As used in this section, "fermented alcoholic beverage" means:

(a) beer;

(b) heavy beer; or

(c) wine.

(2) An individual may without being licensed under this chapter manufacture a fermented alcoholic beverage if:

(a) the individual ferments the alcoholic beverage:

(i) in the individual's personal residence; or

(ii)

(A) on the premises of a winery manufacturing license or brewery manufacturing license; and

(B) under the supervision of a winery manufacturing licensee or brewery manufacturing licensee;

(b) the individual is 21 years old or older;

(c) the individual manufactures no more than:

(i) 100 gallons in a calendar year, if there is one individual that is 21 years old or older residing in the household; or

(ii) 200 gallons in a calendar year, if there are two or more individuals who are 21 years old or older residing in the household;

(d) the fermented alcoholic beverage is manufactured and used for personal or family use and consumption, including use at an organized event where fermented alcoholic beverages are judged as to taste and quality; and

(e) the fermented alcoholic beverage is not for:

(i) sale or offering for sale; or

(ii) consumption on a licensed premise.

(3) An individual may store a fermented alcoholic beverage manufactured as provided in Subsection (2) in the individual's personal residence.

(4) A fermented alcoholic beverage manufactured in accordance with Subsection (2) may be removed from the premises where it is manufactured:

(a) for personal or family use, including use at an organized event where fermented alcoholic beverages are judged as to taste and quality;

(b) if the fermented alcoholic beverage is transported in compliance with Section 41-6a-526; and

(c) if the fermented alcoholic beverage is removed only in the following quantities:

(i) for personal and family use that is unrelated to an organized event where fermented alcoholic beverages are judged as to taste and quality, the quantity that may be possessed at one time is:

(A) one liter of wine for each individual who is 21 years old or older residing in the household;

(B) 72 ounces of heavy beer for each individual who is 21 years old or older residing in the household; or

(C) 72 ounces of beer for each individual who is 21 years old or older residing in the household; and

(ii) for on-premise consumption at an organized event where fermented alcoholic beverages are judged as to taste and quality, the quantity that may be removed for each organized event is:

(A) one liter of wine for each wine category in which the individual enters, except that the individual may not remove wine for more than three categories for the same organized event;

(B) 72 ounces of heavy beer for each heavy beer category in which the individual enters, except that the individual may not remove heavy beer for more than three categories for the same organized event; or

(C) 72 ounces of beer for each beer category in which the individual enters, except that the individual may not remove beer for more than three categories for the same organized event.

(5) A partnership, corporation, or association may not manufacture a fermented alcoholic beverage under this section for personal or family use and consumption without obtaining a license under this chapter, except that an individual who operates a brewery under this chapter as an individual owner or in partnership with others, may remove beer from the brewery for personal or family use in the amounts described in Subsection (2)(c).

§ 32B-11-203 Application requirements for a manufacturing license.

To obtain an alcoholic product manufacturing license, a person shall submit to the department:

(1) a written application in a form prescribed by the department;

(2) a nonrefundable application fee of $300;

(3) an initial license fee of $3,800:

(a) unless otherwise provided in this chapter; and

(b) that is refundable if a license is not issued;

(4) written consent of the local authority;

(5) a statement of the purpose for which the person has applied for the manufacturing license;

(6) evidence that the person is authorized by the United States to manufacture an alcoholic product;

(7) a bond as specified by Section 32B-11-207;

(8) evidence that the person is carrying public liability insurance in an amount and form satisfactory to the department;

(9) a signed consent form stating that the manufacturing licensee will permit any authorized representative of the commission, department, or any law enforcement officer to have unrestricted right to enter the licensed premises;

(10) if the person is an entity, proper verification evidencing that a person who signs the application is authorized to sign on behalf of the entity; and

(11) any other information the commission or department may require.

§ 32B-11-204 Renewal requirements for a manufacturing license.

(1) A manufacturing license expires on December 31 of each year.

(2) To renew a manufacturing license, a person shall submit by no later than November 30 of the year the license expires:

(a) a completed renewal application to the department, in a form prescribed by the department; and

(b) a renewal fee in the following amount of:

(i) $2,900, except for a wine manufacturing license described in Subsection (2)(b)(ii); or

(ii) $1,400 for a winery manufacturing license if the winery manufacturing licensee produces less than 20,000 gallons of wine in the calendar year preceding the year in which the manufacturing licensee seeks renewal.

(3) Failure to meet the renewal requirements results in an automatic forfeiture of a manufacturing license effective on the date the existing manufacturing license expires.

§ 32B-11-205 Specific qualifications for a manufacturing license.

(1) The commission may not issue a manufacturing license to a person who:

(a) is disqualified under Section 32B-1-304; or

(b) has not met an applicable federal requirement for the operation of a winery, distillery, or brewery.

(2) If a person to whom a manufacturing license is issued under this chapter no longer possesses the qualifications required by this title for obtaining that manufacturing license, the commission may suspend or revoke that manufacturing license.

§ 32B-11-206 Duties of commission and department before issuing manufacturing license.

(1)

(a) Before the commission may issue a manufacturing license, the department shall conduct an investigation and may hold public hearings to gather information and make recommendations to the commission as to whether a manufacturing license should be issued.

(b) The department shall forward to the commission the information and recommendations under Subsection (1)(a) to aid in the commission's determination.

(2) Before issuing a manufacturing license, the commission shall:

(a) determine that the person filed a complete application and is in compliance with:

(i) Sections 32B-11-203 and 32B-11-205; and

(ii) the relevant part under this chapter for the specific type of manufacturing license;

(b) determine that the person is not disqualified under Section 32B-1-304;

(c) consider the physical characteristics of the premises where an alcoholic product is proposed to be stored, mixed, or manufactured such as:

(i) condition of the premises; and

(ii) safety and security considerations;

(d) consider the person's ability to properly use the manufacturing license within the requirements of this title and the commission rules including:

(i) manufacturing capacity;

(ii) extent of product distribution; and

(iii) the nature and type of entity making use of the manufacturing license;

(e) consider any special factor as provided in this chapter that may be unique to the specific type of manufacturing license sought by the person;

(f) approve of the location and equipment used by the person to manufacture an alcoholic product; and

(g) consider any other factor the commission considers necessary.

§ 32B-11-207 Bond for manufacturing license.

(1)

(a) A manufacturing licensee shall post a cash bond or surety bond in the penal sum of $10,000 payable to the department.

(b) A manufacturing licensee shall procure and maintain a bond required by this section for as long as the manufacturing licensee continues to operate as a manufacturing licensee.

(2) A bond posted under this section shall be:

(a) in a form approved by the attorney general; and

(b) conditioned upon a manufacturing licensee's faithful compliance with this title and the rules of the commission.

(3) If a surety bond posted by a manufacturing licensee under this section is cancelled due to a manufacturing licensee's negligence, the department may assess a $300 reinstatement fee.

(4) No part of a bond posted under this section may be withdrawn during the period the manufacturing license is in effect.

(5)

(a) A bond posted by a manufacturing licensee under this section may be forfeited if the manufacturing license is revoked.

(b) Notwithstanding Subsection (5)(a), the department may make a claim against a bond posted by a manufacturing licensee for money owed the department under this title without the commission first revoking the manufacturing license.

§ 32B-11-208 General operational requirements for manufacturing license.

(1)

(a) A manufacturing licensee and staff of the manufacturing licensee shall comply with this title and the rules of the commission, including the relevant part of this chapter applicable to the type of manufacturing license held by the manufacturing licensee.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a manufacturing licensee;

(ii) individual staff of a manufacturing licensee; or

(iii) a manufacturing licensee and staff of the manufacturing licensee.

(2) A manufacturing licensee shall prominently display the manufacturing license on the licensed premises.

(3)

(a) A manufacturing licensee shall make and maintain the records required by the department.

(b) Section 32B-1-205 applies to a record required to be made or maintained in accordance with this Subsection (3).

(4) A manufacturing licensee may not sell liquor within the state except to:

(a) the department; or

(b) a military installation.

(5) A manufacturing license may not be transferred from one location to another location, except as provided in Chapter 18, Part 3, Alcohol License Change of Location.

(6)

(a) A manufacturing licensee may not sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the license to another person, whether for monetary gain or not, except as provided in Chapter 18, Part 2, Alcohol License Changes of Ownership.

(b) A manufacturing license has no monetary value for any type of disposition.

(7) A manufacturing licensee may not advertise the manufacturing licensee's product in violation of this title or any other federal or state law, except that nothing in this title prohibits the advertising or solicitation of an order for industrial alcohol from a holder of a special use permit.

(8) A manufacturing licensee shall from time to time, on request of the department, furnish for analytical purposes a sample of the alcoholic product that the manufacturing licensee has:

(a) for sale; or

(b) in the course of manufacture for sale in this state.

(9) The commission may prescribe by policy or rule, consistent with this title, the general operational requirements of a manufacturing licensee relating to:

(a) physical facilities;

(b) conditions of storage, sale, or manufacture of an alcoholic product;

(c) storage and sales quantity limitations; and

(d) other matters considered appropriate by the commission.

§ 32B-11-209 Notifying department of change in ownership.

The commission may suspend, revoke, or deem forfeited a manufacturing license if the manufacturing licensee does not immediately notify the department of a change in:

(1) ownership of the manufacturing licensee;

(2) for a corporate owner, the:

(a) corporate officers or directors; or

(b) shareholders holding at least 20% of the total issued and outstanding stock of the corporation; or

(3) for a limited liability company:

(a) managers; or

(b) members owning at least 20% of the limited liability company.

§ 32B-11-210 Tasting provided by manufacturing licensee.

(1) As used in this section:

(a) "Parcel" means the same identifiable contiguous unit of property that is treated as separate for valuation or zoning purposes and includes an improvement on that unit of property.

(b) "Taste" means an amount of an alcoholic product provided by a manufacturing licensee for consumption under this section.

(2) A manufacturing licensee may provide for a tasting in accordance with this section.

(3) Before conducting a tasting, the manufacturing licensee shall provide the department:

(a) evidence of proximity to any community location, with proximity requirements being governed by Section 32B-1-202 as if the manufacturing licensee were a retail licensee;

(b) a floor plan, and boundary map where applicable, of the premises of the manufacturing licensee, including any:

(i) consumption area; and

(ii) area where the person proposes to store, sell, offer for sale, or furnish an alcoholic product to be tasted;

(c) evidence that the manufacturing licensee is carrying public liability insurance in an amount and form satisfactory to the department;

(d) evidence that the manufacturing licensee is carrying dramshop insurance coverage in an amount and form satisfactory to the department; and

(e) any other information the commission or department may require.

(4) A manufacturing licensee may not sell, offer for sale, or furnish a taste on any day during the period that:

(a) begins at midnight; and

(b) ends at 10:59 a.m.

(5) A person who serves a taste on behalf of the manufacturing licensee shall complete an alcohol training and education seminar as if the person were employed by a retail licensee.

(6)

(a) A manufacturing licensee shall establish a distinct area for consumption of a taste outside the view of minors on the licensed premises and in which minors are not allowed during the time period when tasting occurs.

(b) The distinct area for consumption for a taste established under this Subsection (6) shall be in the same building as where the manufacturing licensee produces alcoholic product, in a building on the same parcel as the building where the manufacturing licensee produces alcoholic product, or in a patio or similar area immediately adjacent to a building described in this Subsection (6)(b).

(7)

(a) A manufacturing licensee shall have substantial food available that is served on the licensed premises to an individual consuming a taste.

(b) The commission may define what constitutes "substantial food" by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, except that the rule may not require culinary facilities for food preparation that are equivalent to a restaurant or dining club.

(8) A manufacturing licensee shall charge an individual for a taste and may not sell, offer for sale, or furnish a taste at less than the cost of the taste to a retail licensee.

(9)

(a) A manufacturing licensee may provide a taste in more than one container except that the aggregate total of the taste in all of the containers may not exceed:

(i) for a winery manufacturing licensee:

(A) except as provided in Subsection (9)(a)(i)(B), five ounces of wine; or

(B) 16 ounces of hard cider that is furnished in a sealed container and contains no more than 5% of alcohol by volume;

(ii) for a distillery manufacturing licensee, 2.5 ounces of spirituous liquor; or

(iii) for a brewery manufacturing licensee, 16 ounces of beer, heavy beer, or flavored malt beverages.

(b) A manufacturing licensee may not allow an individual to participate in more than one tasting within a calendar day.

(10) A manufacturing licensee may provide a taste of alcoholic product that is:

(a) manufactured by the manufacturing licensee; and

(b) purchased by the manufacturing licensee from:

(i) a state store or package agency; or

(ii) for beer, the off-premise retail licensee described in Subsection 32B-11-503(4)(c).

(11)

(a) A manufacturing licensee shall display in a prominent place in the location where tastes are consumed a sign in large letters that consists of text in the following order:

(i) a header that reads: "WARNING";

(ii) a warning statement that reads: "Drinking alcoholic beverages during pregnancy can cause birth defects and permanent brain damage for the child.";

(iii) a statement in smaller font that reads: "Call the Utah Department of Health and Human Services at [insert most current toll-free number] with questions or for more information.";

(iv) a header that reads: "WARNING"; and

(v) a warning statement that reads: "Driving under the influence of alcohol or drugs is a serious crime that is prosecuted aggressively in Utah."

(b)

(i) The text described in Subsections (11)(a)(i) through (iii) shall be in a different font style than the text described in Subsections (11)(a)(iv) and (v).

(ii) The warning statements in the sign described in Subsection (11)(a) shall be in the same font size.

(c) The Department of Health and Human Services shall work with the commission and department to facilitate consistency in the format of a sign required under this Subsection (11).

(12) A manufacturing licensee shall provide educational information as defined by rule by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, as part of the tasting.

(13) A manufacturing licensee that conducts tastings under a scientific or educational use permit issued by the commission as of May 10, 2016, shall comply with this section by no later than December 31, 2016, in conducting a tasting. In accordance with Subsection 32B-10-206(1)(c), effective no later than January 1, 2017, the commission shall take action on a scientific or educational use permit used by a manufacturing licensee to conduct tastings.

Part 3 Winery Manufacturing License

§ 32B-11-301 Title.

This part is known as "Winery Manufacturing License."

§ 32B-11-302 Definitions.

Reserved

§ 32B-11-303 Specific authority and operational requirements for winery manufacturing license.

(1) A winery manufacturing license allows a winery manufacturing licensee to:

(a) store, manufacture, transport, import, or export wine;

(b) sell wine at wholesale to:

(i) the department; and

(ii) an out-of-state customer who is at least 21 years old, as the state in which the customer is located permits;

(c) purchase liquor for fortifying wine, if the department is notified of the purchase and date of delivery; and

(d) warehouse on the licensed premises liquor that is manufactured or purchased for manufacturing purposes.

(2)

(a) A wine, brandy, wine spirit, or other liquor imported under authority of a winery manufacturing license shall conform to the standards of identity and quality established in the regulations issued under Federal Alcohol Administration Act, 27 U.S.C. Sec. 201 et seq.

(b) The federal definitions, standards of identity, and quality and labeling requirements for wine, in regulations issued under Federal Alcohol Administration Act, 27 U.S.C. Sec. 201 et seq., are adopted to the extent the regulations are not contrary to or inconsistent with the laws of this state.

(3) If considered necessary, the commission or department may require:

(a) the alteration of the plant, equipment, or licensed premises;

(b) the alteration or removal of unsuitable wine-making equipment or material;

(c) a winery manufacturing licensee to clean, disinfect, ventilate, or otherwise improve the sanitary and working conditions of the plant, licensed premises, and wine-making equipment;

(d) that a marc, pomace, or fruit be destroyed, denatured, or removed from the licensed premises because it is considered:

(i) unfit for wine making; or

(ii) as producing or likely to produce an unsanitary condition;

(e) a winery manufacturing licensee to distill or cause to be distilled or disposed of under the department's supervision:

(i) any unsound, poor quality finished wine; or

(ii) unfinished wine that will not be satisfactory when finished; or

(f) that a record pertaining to the grapes and other materials and ingredients used in the manufacture of wine be available to the commission or department upon request.

(4) A winery manufacturing licensee may not permit wine to be consumed on the winery manufacturing licensee's premises, except that:

(a) a winery manufacturing licensee may allow the winery manufacturing licensee's on-duty staff to taste on the licensed premises the alcoholic product that the winery manufacturing licensee manufactures on the winery manufacturing licensee's premises without charge, but only in connection with the on-duty staff's duties of manufacturing the alcoholic product during the manufacturing process and not otherwise;

(b) a winery manufacturing licensee may allow a person who can lawfully purchase wine for wholesale or retail distribution to consume a bona fide sample of the winery manufacturing licensee's product on the licensed premises; and

(c) a winery manufacturing licensee may conduct a tasting as provided in Section 32B-11-210.

Part 4 Distillery Manufacturing License

§ 32B-11-401 Title.

This part is known as "Distillery Manufacturing License."

§ 32B-11-402 Definitions.

Reserved

§ 32B-11-403 Specific authority and operational requirements for distillery manufacturing license.

(1) A distillery manufacturing license allows a distillery manufacturing licensee to:

(a) store, manufacture, transport, import, or export liquor;

(b) sell liquor to:

(i) the department;

(ii) an out-of-state customer who is at least 21 years old, as the state in which the customer is located permits; and

(iii) as provided in Subsection (2);

(c) purchase an alcoholic product for mixing and manufacturing purposes if the department is notified of:

(i) the purchase; and

(ii) the date of delivery;

(d) warehouse on the distillery manufacturing licensee's licensed premises an alcoholic product that the distillery manufacturing licensee manufactures or purchases for manufacturing purposes;

(e) if the distillery manufacturing licensee holds two or more distillery manufacturing licenses under this chapter, transport an alcoholic product from one of the distillery manufacturing licensee's licensed premises to another, if the transportation occurs for the purpose of:

(i) continuing or completing the manufacturing process; or

(ii) storing a bulk container or an alcoholic product that is distilled and packaged in the state, including the transport of an alcoholic product to a package agency located at any of the distillery manufacturing licensee's licensed premises; and

(f) receive samples of an alcoholic product from a person outside the state for the sole purpose of performing tests and analysis, if the distillery manufacturing licensee:

(i) performs the tests and analysis in accordance with 27 C.F.R. Secs. 19.434(a), (c), (d), (e), and (f), Secs. 19.435 through 19.437, and Sec. 19.616;

(ii) keeps records of the samples received, including:

(A) all data required under 27 C.F.R. Sec. 19.616;

(B) a description of the sample; and

(C) the date the distillery manufacturing licensee receives the sample; and

(iii) upon request, provides the records described in Subsection (1)(f)(ii) to the department.

(2)

(a) Subject to the other provisions of this Subsection (2), a distillery manufacturing licensee may directly sell an alcoholic product to a person engaged within the state in:

(i) a mechanical or industrial business that requires the use of an alcoholic product; or

(ii) scientific pursuits that require the use of an alcoholic product.

(b) A person who purchases an alcoholic product under Subsection (2)(a) shall hold a valid special use permit issued in accordance with Chapter 10, Special Use Permit Act, authorizing the use of the alcoholic product.

(c) A distillery manufacturing licensee may sell to a special use permittee described in Subsection (2)(b) an alcoholic product only in the type for which the special use permit provides.

(d) The sale of an alcoholic product under this Subsection (2) is subject to rules prescribed by the department and the federal government.

(3) The federal definitions, standards of identity and quality, and labeling requirements for distilled liquor, in the regulations issued under Federal Alcohol Administration Act, 27 U.S.C. Sec. 201 et seq., are adopted to the extent the regulations are not contrary to or inconsistent with laws of this state.

(4) If considered necessary, the commission or department may require:

(a) the alteration of the plant, equipment, or licensed premises;

(b) the alteration or removal of unsuitable alcoholic product-making equipment or material;

(c) a distillery manufacturing licensee to clean, disinfect, ventilate, or otherwise improve the sanitary and working conditions of the plant, licensed premises, and equipment; or

(d) that a record pertaining to the materials and ingredients used in the manufacture of an alcoholic product be made available to the commission or department upon request.

(5) A distillery manufacturing licensee may not permit an alcoholic product to be consumed on the distillery manufacturing licensee's premises, except that:

(a) a distillery manufacturing licensee may allow the distillery manufacturing licensee's on-duty staff to taste on the licensed premises an alcoholic product that the distillery manufacturing licensee manufactures on the distillery manufacturing licensee's licensed premises without charge, but only in connection with the on-duty staff's duties of manufacturing the alcoholic product during the manufacturing process and not otherwise;

(b) a distillery manufacturing licensee may allow a person who can lawfully purchase an alcoholic product for wholesale or retail distribution to consume a bona fide sample of the distillery manufacturing licensee's product on the licensed premises; and

(c) a distillery manufacturing licensee may conduct a tasting as provided in Section 32B-11-210.

Part 5 Brewery Manufacturing License

§ 32B-11-501 Title.

This part is known as "Brewery Manufacturing License."

§ 32B-11-502 Definitions.

Reserved

§ 32B-11-503 Specific authority and operational requirements for brewery manufacturing license.

(1) A brewery manufacturing license allows a brewery manufacturing licensee to:

(a) store, manufacture, brew, transport, or export beer, heavy beer, and flavored malt beverages;

(b) sell heavy beer and a flavored malt beverage to:

(i) the department;

(ii) a military installation; or

(iii) an out-of-state customer who is at least 21 years old, as the state in which the customer is located permits;

(c) sell beer to a beer wholesaler licensee;

(d) in the case of a small brewer, in accordance with Subsection (5), sell beer manufactured by the small brewer to:

(i) a retail licensee;

(ii) an off-premise beer retailer; or

(iii) an event permittee;

(e) warehouse on the brewery manufacturing licensee's premises an alcoholic product that the brewery manufacturing licensee manufactures or purchases for manufacturing purposes; and

(f) if the brewery manufacturing licensee holds two or more brewery manufacturing licenses, transport beer, heavy beer, or flavored malt beverage from one of the brewery manufacturing licensee's licensed premises to another, if the transportation occurs for the purpose of:

(i) continuing or completing the manufacturing process; or

(ii) transferring the beer, heavy beer, or flavored malt beverage for storage at a licensed premises of the brewery manufacturing licensee that is at a package agency.

(2) A brewery manufacturing licensee may not sell the following to a person within the state except the department or a military installation:

(a) heavy beer; or

(b) a flavored malt beverage.

(3) If considered necessary, the commission or department may require:

(a) the alteration of the plant, equipment, or licensed premises;

(b) the alteration or removal of any unsuitable alcoholic product-making equipment or material;

(c) a brewery manufacturing licensee to clean, disinfect, ventilate, or otherwise improve the sanitary and working conditions of the plant, licensed premises, and equipment; or

(d) that a record pertaining to the materials and ingredients used in the manufacture of an alcoholic product be available to the commission or department upon request.

(4) A brewery manufacturing licensee may not permit any beer, heavy beer, or flavored malt beverage to be consumed on the licensed premises, except that:

(a) a brewery manufacturing licensee may allow the brewery manufacturing licensee's on-duty staff to taste the alcoholic product that the brewery manufacturing licensee manufactures on the brewery manufacturing licensee's premises without charge, but only in connection with the on-duty staff's duties of manufacturing the alcoholic product during the manufacturing process and not otherwise;

(b) a brewery manufacturing licensee may allow a person who can lawfully purchase the following for wholesale or retail distribution to consume a bona fide sample of the brewery manufacturing licensee's product on the licensed premises:

(i) beer;

(ii) heavy beer; or

(iii) a flavored malt beverage;

(c) a brewery manufacturing licensee may operate a retail facility that complies with the requirements of Chapter 7, Part 2, Off-Premise Beer Retailer Local Authority; and

(d) a brewery manufacturing licensee may conduct a tasting as provided in Section 32B-11-210.

(5)

(a) A small brewer shall own, lease, or maintain and control a warehouse facility located in this state for the storage of beer to be sold to a person described in Subsection (1)(d) if the small brewer:

(i)

(A)

(I) is located in this state; and

(II) holds a brewery manufacturing license; or

(B)

(I) is located outside this state; and

(II) holds a certificate of approval to sell beer in this state; and

(ii) sells beer manufactured by the small brewer directly to a person described in Subsection (1)(d).

(b) A small brewer may not sell beer to a person described in Subsection (1)(d) unless the beer:

(i) is manufactured by the small brewer; and

(ii) is first placed in the small brewer's warehouse facility in this state.

(c)

(i) A small brewer warehouse shall make and maintain complete beer importation, inventory, tax, distribution, sales records, and other records as the department and State Tax Commission may require.

(ii) The records described in Subsection (5)(c)(i) are subject to inspection by:

(A) the department; and

(B) the State Tax Commission.

(iii) Section 32B-1-205 applies to a record required to be made or maintained in accordance with this Subsection (5), except that the provision is considered to include an action described in Section 32B-1-205 made for the purpose of deceiving the State Tax Commission, or an official or employee of the State Tax Commission.

(6)

(a) Subject to Subsection (7), a brewery manufacturing licensee may not sell beer in this state except under a written agreement with a beer wholesaler licensee in this state.

(b) An agreement described in Subsection (6)(a) shall:

(i) create a restricted exclusive sales territory that is mutually agreed upon by the persons entering into the agreement;

(ii) designate the one or more brands that may be distributed in the sales territory; and

(iii) set forth the exact geographical area of the sales territory.

(c) A brewery manufacturing licensee may have more than one agreement described in Subsection (6)(a) if each brand of the brewery manufacturing licensee is covered by one exclusive sales territory.

(d) A brewery manufacturing licensee may not enter into an agreement described in Subsection (6)(a) with more than one beer wholesaler licensee to distribute the same brand of beer in the same sales territory or any portion of the sales territory.

(7) A small brewer is not subject to the requirements of Subsection (6).

§ 32B-11-504 Department's authority regarding small-brewer status.

(1) A brewer seeking to obtain small-brewer status shall provide to the department any documentation or information the department determines necessary to determine if the brewer is part of a controlled group of manufacturers.

(2) The department may revoke a brewer's small-brewer status at any time, if the department determines the brewer does not qualify as a small brewer.

Part 6 Local Industry Representative License Act

§ 32B-11-601 Title.

This part is known as the "Local Industry Representative License Act."

§ 32B-11-602 Definitions.

Reserved

§ 32B-11-603 Commission's power to issue local industry representative license.

(1)

(a) Before a person described in Subsection (2) may represent an alcoholic product of a manufacturer, supplier, or importer, the person shall obtain a local industry representative license from the commission in accordance with this part.

(b) A violation of this Subsection (1) is a class B misdemeanor.

(2) The commission may issue a local industry representative license to a person who is:

(a)

(i) an individual resident of Utah;

(ii) a Utah partnership;

(iii) a Utah corporation; or

(iv) a Utah limited liability company; and

(b) employed by a manufacturer, supplier, or importer, to represent a liquor product with the department, a package agency, licensee, or permittee under this title, whether compensated by salary, commission, or another means.

(3) An individual staff member of a local industry representative licensee is not required to be separately licensed.

(4) A local industry representative may represent more than one manufacturer, supplier, or importer at a time.

(5)

(a) A manufacturer, supplier, or importer is not required to use a local industry representative to represent its products with the department, a package agency, licensee, or permittee, except that staff of a manufacturer, supplier, or importer who is not a local industry representative shall register with the department, on a form provided by the department, before the staff represents an alcoholic product while in the state with the department, a package agency, licensee, or permittee.

(b) A manufacturer, supplier, or importer described in Subsection (5)(a) and its staff are subject to the same operational requirements of this part and Chapter 4, Criminal Offenses and Procedure Act.

§ 32B-11-604 Application for local industry representative license.

(1) To obtain a local industry representative license, a person shall submit to the department:

(a) a written application in a form prescribed by the department;

(b) a nonrefundable $75 application fee;

(c) an initial license fee of $125, which is refundable if a local industry representative license is not issued;

(d) verification that the person is:

(i) a resident of Utah;

(ii) a Utah partnership;

(iii) a Utah corporation; or

(iv) a Utah limited liability company;

(e) an affidavit stating the name and address of any manufacturer, supplier, or importer the person will represent;

(f) a signed consent form stating that the local industry representative will permit any authorized representative of the commission, department, or any law enforcement officer to have an unrestricted right to enter, during normal business hours, the specific premises where the local industry representative conducts business;

(g) if the person is an entity, proper verification evidencing that a person who signs the application is authorized to sign on behalf of the entity; and

(h) any other information the commission or department may require.

(2) A local industry representative licensee is not required to pay an additional license fee to represent more than one manufacturer, supplier, or importer.

§ 32B-11-605 Renewal requirements for local industry representative license.

(1) A local industry representative license expires on December 31 of each year.

(2) To renew a local industry representative license, a person shall submit to the department by no later than November 30 of the year the license expires:

(a) a completed renewal application in a form prescribed by the department;

(b) a renewal fee of $125; and

(c) an affidavit stating the name and address of any manufacturer, supplier, or importer the local industry representative licensee represents at the time of submitting the renewal application.

(3) Failure to meet the renewal requirements results in an automatic forfeiture of the local industry representative license effective on the date the existing local industry representative license expires.

§ 32B-11-606 Specific qualifications for local industry representative.

(1) The commission may not issue a local industry representative license to:

(a) a person who is disqualified under Section 32B-1-304; or

(b) unless otherwise provided:

(i) a retail licensee that sells, offers for sale, or furnishes liquor;

(ii) staff of a retail licensee that sells, offers for sale, or furnishes liquor; or

(iii) an individual, partnership, corporation, or limited liability company who holds an interest in a retail licensee that sells, offers for sale, or furnishes liquor.

(2) If a person to whom a local industry representative license is issued under this part no longer possesses the qualifications required by this title for obtaining that local industry representative license, the commission may suspend or revoke that local industry representative license.

§ 32B-11-607 Commission and department duties before issuing local representative license.

(1)

(a) Before the commission may issue a local industry representative license, the department shall conduct an investigation and may hold public hearings to gather information and make recommendations to the commission as to whether a local industry representative license should be issued.

(b) The department shall forward the information and recommendations described in Subsection (1)(a) to the commission to aid in the commission's determination.

(2) Before issuing a local industry representative license, the commission shall:

(a) determine that the person filed a complete application and is in compliance with Sections 32B-11-604 and 32B-11-606;

(b) determine that the person is not disqualified under Section 32B-1-304; and

(c) consider any other factor the commission considers necessary.

§ 32B-11-608 Operational requirements for local industry representative license.

(1)

(a) A local industry representative licensee, staff of the local industry representative licensee, or staff of a manufacturer, supplier, or importer who is conducting business in the state, shall comply with this title and rules of the commission.

(b) If a person knowingly violates Subsection (1)(a):

(i) the violation may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(A) a local industry representative licensee;

(B) individual staff of a local industry representative licensee; or

(C) both a local industry representative licensee and staff of the local industry representative licensee; and

(ii) if the conditions of Subsection (1)(c) are met, the commission may order:

(A) the removal of the manufacturer's, supplier's, or importer's products from the department's sales list; and

(B) a suspension of the department's purchase of those products for a period determined by the commission.

(c) Subsection (1)(b)(ii) applies if the manufacturer, supplier, or importer:

(i) directly commits the violation; or

(ii) solicits, requests, commands, encourages, or intentionally aides another to engage in the violation.

(2) A local industry representative licensee shall display its license in the local industry representative licensee's principal place of business.

(3)

(a) A local industry representative licensee shall maintain on file with the department a current accounts list of the names and addresses of the manufacturers, suppliers, and importers the local industry representative licensee represents.

(b) A local industry representative licensee shall notify the department in writing of a change to its accounts list within 14 days from the date the local industry representative licensee:

(i) acquires the account of a manufacturer, supplier, or importer; or

(ii) loses the account of a manufacturer, supplier, or importer.

(4)

(a) A local industry representative licensee shall make and maintain the records the department requires for at least three years.

(b) Section 32B-1-205 applies to a record required to be made or maintained in accordance with this Subsection (4).

(5) Staff of a local industry representative licensee may not be:

(a) a retail licensee that sells, offers for sale, or furnishes liquor;

(b) staff of a retail licensee that sells, offers for sale, or furnishes liquor; or

(c) a minor.

(6)

(a) A local representative licensee may not sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the license to another person, whether for monetary gain or not.

(b) A local industry representative license has no monetary value for any type of disposition.

(7) A local industry representative licensee, staff of the local industry representative licensee, or staff of a manufacturer, supplier, or importer who is conducting business in the state:

(a) only to the extent authorized by Chapter 4, Criminal Offenses and Procedure Act, may:

(i) assist the department in:

(A) ordering, shipping, and delivering merchandise;

(B) providing new product notification;

(C) obtaining listing and delisting information;

(D) receiving price quotations;

(E) providing product sales analysis;

(F) conducting shelf management; and

(G) conducting educational seminars; and

(ii) to acquire new listings:

(A) solicit orders from the department; and

(B) submit to the department price lists and samples of the products of the manufacturer, supplier, or importer;

(b) may not sell liquor within the state except to:

(i) the department; and

(ii) a military installation;

(c) may not ship or transport, or cause to be shipped or transported, liquor into this state or from one place to another within this state;

(d) may not sell or furnish any liquor to any person within this state other than to:

(i) the department; or

(ii) a military installation;

(e) except as otherwise provided, may not advertise a product the local industry representative licensee represents in violation of this title or any other federal or state law;

(f) shall comply with the trade practices provided in Chapter 4, Part 7, Trade Practices Act; and

(g) may only provide a sample of a product of the manufacturer, supplier, or importer for tasting and sampling purposes as provided in Section 32B-4-705 by the department.

(8) A local industry representative licensee may, to become educated as to the quality and characteristics of a liquor that the licensee represents, taste and analyze an industry representative sample under the conditions listed in this Subsection (8).

(a) A local industry representative licensee may not receive more than two industry representative samples of a particular type, vintage, and production lot of a particular branded product within a consecutive 120-day period.

(b)

(i) An industry representative sample of liquor may not exceed one liter.

(ii) Notwithstanding Subsection (8)(b)(i), an industry representative sample of the following may not exceed 1.5 liters unless that exact product is only commercially packaged in a larger size, not to exceed 5 liters:

(A) wine;

(B) heavy beer; or

(C) a flavored malt beverage.

(c) An industry representative sample may only be of a product not presently listed on the department's sales list.

(d)

(i) An industry representative sample shall be shipped:

(A) prepaid by the manufacturer, supplier, or importer;

(B) by common carrier and not via United States mail; and

(C) directly to the department's central administrative warehouse office.

(ii) An industry representative sample may not be shipped to any other location within the state.

(e) An industry representative sample shall be accompanied by a letter from the manufacturer, supplier, or importer:

(i) clearly identifying the product as an "industry representative sample"; and

(ii) clearly stating:

(A) the FOB case price of the product; and

(B) the name of the local industry representative for whom it is intended.

(f) The department shall assess a reasonable handling, labeling, and storage fee for each industry representative sample received.

(g) The department shall affix to a container a label clearly identifying the product as an "industry representative sample."

(h) The department shall:

(i) account for and record each industry representative sample received;

(ii) account for the industry representative sample's disposition; and

(iii) maintain a record of the industry representative sample and its disposition for a two-year period.

(i) An industry representative sample may not leave the premises of the department's central administrative warehouse office.

(j) A local industry representative licensee's and a local industry representative licensee's staff may, at regularly scheduled days and times established by the department, taste and analyze one or more industry representative samples on the premises of the department's central administrative warehouse office.

(k) The department shall destroy the unused contents of an opened product remaining after a product is sampled under controlled and audited conditions established by the department.

(l) An industry representative sample that is not tasted within 30 days of receipt by the department shall be disposed of at the discretion of the department in one of the following ways:

(i) the contents destroyed under controlled and audited conditions established by the department; or

(ii) added to the inventory of the department for sale to the public.

§ 32B-11-609 Notifying department of change in ownership.

The commission may suspend, revoke, or deem forfeited a local industry representative license if a local industry representative licensee does not notify the department, within 60 days after the day on which the change occurs, of a change in:

(1) ownership of the business;

(2) for a corporate owner, the:

(a) corporate officers or directors; or

(b) shareholders holding at least 20% of the total issued and outstanding stock of the corporation; or

(3) for a limited liability company:

(a) managers; or

(b) members owning at least 20% of the limited liability company.

Chapter 12 Liquor Warehousing License Act

Part 1 General Provisions

§ 32B-12-101 Title.

This chapter is known as the "Liquor Warehousing License Act."

§ 32B-12-102 Definitions.

Reserved

Part 2 Liquor Warehousing License Process

§ 32B-12-201 Commission's power to issue liquor warehousing license.

(1)

(a) Before a person may warehouse, distribute, or transport liquor for resale to a wholesale or retail customer, the person shall first obtain a liquor warehousing license issued by the commission in accordance with this chapter.

(b) A separate liquor warehousing license is required for each warehousing facility.

(c) A violation of this Subsection (1) is a class B misdemeanor.

(2) The commission may issue a liquor warehousing license in accordance with this chapter for the warehousing, distribution, and transportation of liquor.

§ 32B-12-202 Application requirements for liquor warehousing license.

To obtain a liquor warehousing license, a person shall submit to the department:

(1) a written application in a form prescribed by the department;

(2) a nonrefundable $300 application fee;

(3) an initial license fee of $850, which is refundable if a liquor warehousing license is not issued;

(4) written consent of the local authority;

(5) a copy of the person's current business license;

(6) a bond as specified by Section 32B-12-206;

(7) a floor plan of the person's warehouse, including the area in which the person proposes that liquor be stored;

(8) evidence that the person is carrying public liability insurance in an amount and form satisfactory to the department;

(9) a signed consent form stating that the liquor warehousing licensee will permit any authorized representative of the commission, department, or any law enforcement officer to have unrestricted right to enter the licensed premises;

(10) if the person is an entity, proper verification evidencing that a person who signs the application is authorized to sign on behalf of the entity; and

(11) any other information the commission or department may require.

§ 32B-12-203 Renewal requirements for liquor warehousing license.

(1) A liquor warehousing license expires on December 31 of each year.

(2) To renew a liquor warehousing license, a person shall submit to the department by no later than November 30 of the year the license expires:

(a) a completed renewal application in a form prescribed by the department; and

(b) a renewal fee of $1,200.

(3) Failure to meet the renewal requirements results in an automatic forfeiture of the liquor warehousing license effective on the date the existing liquor warehousing license expires.

§ 32B-12-204 Specific qualifications for liquor warehousing license.

(1) The commission may not issue a liquor warehousing license to a person who is disqualified under Section 32B-1-304.

(2) A person, through its staff, or otherwise, either directly or indirectly, may not hold at the same time both a liquor warehousing license and another kind of package agency, license, or permit issued under this title except:

(a) a temporary beer event permit;

(b) a manufacturing license issued in accordance with Chapter 11, Manufacturing and Related Licenses Act; or

(c) a beer wholesaling license issued in accordance with this chapter.

(3) If a person to whom a liquor warehousing license is issued under this chapter no longer possesses the qualifications required by this title for obtaining that liquor warehousing license, the commission may suspend or revoke that liquor warehousing license.

§ 32B-12-205 Duties of commission and department before issuing liquor warehousing license.

(1)

(a) Before the commission may issue a warehousing license or approve a change of location for a licensee's warehouse facility, the department shall conduct an investigation and may hold public hearings to gather information and make recommendations to the commission as to whether a liquor warehousing license should be issued or a change of location granted.

(b) The department shall forward the information and recommendations described in Subsection (1)(a) to the commission to aid in the commission's determination.

(2) Before issuing a liquor warehousing license, the commission shall:

(a) determine that the person filed a complete application and has complied with Sections 32B-12-202 and 32B-12-204;

(b) determine that the person is not disqualified under Section 32B-1-304;

(c) consider the physical characteristics of the premises where the person proposes to warehouse liquor, including:

(i) location;

(ii) proximity to transportation; and

(iii) condition, size, and security of the licensed premises;

(d) consider the person's ability to properly use the liquor warehousing license within the requirements of this title and the commission rules including:

(i) the types of products other than liquor that the person is warehousing;

(ii) the brands of liquor the person intends to warehouse; and

(iii) the means the person intends to use to distribute the liquor; and

(e) consider any other factor the commission considers necessary.

(3) Before approving a liquor warehousing licensee's request to change the location of the licensee's warehouse facility, the commission shall:

(a) determine that the licensee filed a complete change of location application;

(b) consider the physical characteristics of the premises where the licensee proposes to warehouse liquor, including:

(i) location;

(ii) proximity to transportation; and

(iii) condition, size, and security of the licensed premises; and

(c) consider any other factor the commission considers necessary.

§ 32B-12-206 Bond for liquor warehousing license.

(1)

(a) A liquor warehouser licensee shall post a cash bond or surety bond in the penal sum of $10,000 payable to the department.

(b) A liquor warehouser licensee shall procure and maintain the bond required by this section for as long as the liquor warehouser licensee continues to operate as a liquor warehouser licensee.

(2) A bond posted under this section shall be:

(a) in a form approved by the attorney general; and

(b) conditioned upon the liquor warehouser licensee's faithful compliance with this title and the rules of the commission.

(3) If a surety bond posted by a liquor warehouser licensee under this section is canceled due to a liquor warehouser licensee's negligence, the department may assess a $300 reinstatement fee.

(4) No part of a bond posted under this section may be withdrawn during the period the liquor warehousing license is in effect.

(5)

(a) A bond posted by a liquor warehouser licensee may be forfeited if the liquor warehousing license is revoked.

(b) Notwithstanding Subsection (5)(a), the department may make a claim against a bond posted by a liquor warehouser licensee for money owed the department under this title without the commission first revoking the liquor warehousing license.

Part 3 Operational Requirements for Liquor Warehousing License

§ 32B-12-301 General operational requirements for liquor warehousing license.

(1)

(a) A liquor warehouser licensee and staff of the liquor warehouser licensee shall comply with this title and the rules of the commission.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a liquor warehouser licensee;

(ii) individual staff of a liquor warehouser licensee; or

(iii) both a liquor warehouser licensee and staff of the liquor warehouser licensee.

(2)

(a) A liquor warehouser licensee shall make and maintain records required by the department.

(b) Section 32B-1-205 applies to a record required to be made or maintained in accordance with this Subsection (2).

(3) A liquor warehousing license may not be transferred from one location to another location, without prior written approval of the commission.

(4)

(a) A liquor warehouser licensee may not sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the license to another person, whether for monetary gain or not.

(b) A liquor warehousing license has no monetary value for any type of disposition.

(5) A liquor warehouser licensee may not employ a minor to handle an alcoholic product.

(6) Liquor that is warehoused in this state and sold to an out-of-state consignee may be transported out of the state only by a motor carrier regulated under Title 72, Chapter 9, Motor Carrier Safety Act.

(7) Liquor that is warehoused in this state and sold to the department may be transported only by a motor carrier approved by the department.

(8) Liquor transported to or from a liquor warehouser licensee's licensed premises shall be carried in a sealed conveyance that is made available for inspection by the department while en route within the state.

(9) A liquor warehouser licensee may not ship, convey, distribute, or remove liquor from a warehouse in less than a full case lot.

(10) A liquor warehouser licensee may not ship, convey, distribute, or remove liquor from a warehouse to a consignee outside the state that is not licensed as a liquor wholesaler or retailer by the state in which the consignee is domiciled.

(11) A liquor warehouser licensee may not receive, warehouse, distribute, transport, ship, or convey liquor that the commission has not authorized the liquor warehouser licensee to handle through its warehouse.

(12) The commission may prescribe by policy or rule, consistent with this title, the general operational requirements of licensees relating to:

(a) physical facilities;

(b) conditions of storage, distribution, or transport of liquor; and

(c) other matters considered appropriate by the commission.

§ 32B-12-302 Notifying the department of change in ownership.

The commission may suspend, revoke, or deem forfeited a liquor warehousing license if a liquor warehouser licensee does not notify the department, within 60 days after the day on which the change occurs, of a change in:

(1) ownership of the liquor warehouser licensee;

(2) for a corporate owner, the:

(a) corporate officers or directors; or

(b) shareholders holding at least 20% of the total issued and outstanding stock of the corporation; or

(3) for a limited liability company:

(a) managers; or

(b) members owning at least 20% of the limited liability company.

Chapter 13 Beer Wholesaling License Act

Part 1 General Provisions

§ 32B-13-101 Title.

This chapter is known as the "Beer Wholesaling License Act."

§ 32B-13-102 Definitions.

Reserved

Part 2 Beer Wholesaling License Process

§ 32B-13-201 Commission's power to issue beer wholesaling license.

(1)

(a) Before a person may purchase, store, sell, offer for sale, distribute, or import beer to a person who sells at retail or acts in any way as a beer wholesaler, the person shall first obtain a beer wholesaling license issued by the commission in accordance with this chapter.

(b) A violation of Subsection (1)(a) is a class A misdemeanor.

(2)

(a) The commission may issue a beer wholesaling license for the purchase, storage, sale, distribution, transportation, and import of beer.

(b) A beer wholesaling license entitles the beer wholesaler licensee to:

(i) purchase and import beer into the state;

(ii) store beer in an approved warehouse; and

(iii) sell and distribute beer directly to:

(A) a beer retailer; or

(B) an event permittee.

(3) Nothing in this section precludes a small brewer from selling beer the small brewer manufactures directly to:

(a) a retail licensee;

(b) an off-premise beer retailer; or

(c) an event permittee.

§ 32B-13-202 Application requirements for beer wholesaling license.

To obtain a beer wholesaling license, a person shall submit to the department:

(1) a written application in a form prescribed by the department;

(2) a nonrefundable $300 application fee;

(3) an initial license fee of $2,300 that is refundable if a beer wholesaling license is not issued;

(4) written consent of the local authority;

(5) a copy of the person's current business license;

(6) a bond as specified in Section 32B-13-206;

(7) a statement of the brands of beer the person is authorized to sell and distribute;

(8) a statement of the one or more sales territories in which the person is authorized to sell and distribute beer under an agreement required by Section 32B-11-201 or 32B-11-503;

(9) evidence that the person is carrying public liability insurance in an amount and form satisfactory to the department;

(10) a signed consent form stating that the beer wholesaling licensee will permit any authorized representative of the commission, department, or any law enforcement officer to have unrestricted right to enter the licensed premises;

(11) if the person is an entity, proper verification evidencing that a person who signs the application is authorized to sign on behalf of the entity; and

(12) any other information that the commission or department may require.

§ 32B-13-203 Renewal requirements for beer wholesaling license.

(1) A beer wholesaling license expires on December 31 of each year.

(2) To renew a beer wholesaling license, a person shall submit to the department by no later than November 30 of the year the license expires:

(a) a completed renewal application in a form prescribed by the department; and

(b) a renewal fee in the following amount:

| | Case Sales in Previous License Year for the Licensee | Renewal Fee | | | --- | --- | --- | --- | | | | under 500,000 cases | $1,200 | | | | equals or exceeds 500,000 cases but less than 1,000,000 cases | $2,350 | | | | equals or exceeds 1,000,000 cases | $3,500. |

(3) Failure to meet the renewal requirements results in an automatic forfeiture of the beer wholesaling license effective on the date the existing beer wholesaling license expires.

§ 32B-13-204 Specific qualifications for beer wholesaling license.

(1) The commission may not issue a beer wholesaling license to a person who:

(a) is disqualified under Section 32B-1-304; or

(b) does not meet any applicable federal requirement for beer wholesaling.

(2)

(a) The commission may not issue one of the following licenses to a beer wholesaler licensee simultaneously with the beer wholesaling license, and a beer wholesaler licensee may not, directly or indirectly, hold, through a wholly or partially owned subsidiary or otherwise, one of the following licenses:

(i) a brewery manufacturing license; or

(ii) a beer retailer license.

(b) The commission may not issue to a beer retailer, and a beer retailer, directly or indirectly, may not hold, through a wholly or partially owned subsidiary or otherwise, a beer wholesaling license.

(3) If a person to whom a beer wholesaling license is issued under this chapter no longer possesses the qualifications required by this title for obtaining that beer wholesaling license, the commission may suspend or revoke that beer wholesaling license.

§ 32B-13-205 Commission and department duties before issuing beer wholesaling license.

(1)

(a) Before the commission may issue a beer wholesaling license, the department shall conduct an investigation and may hold public hearings to gather information and make recommendations to the commission as to whether a beer wholesaling license should be issued.

(b) The department shall forward the information and recommendations described in Subsection (1)(a) to the commission to aid in the commission's determination.

(2) Before issuing a beer wholesaling license, the commission shall:

(a) determine that the person filed a complete application and is in compliance with Sections 32B-13-202 and 32B-13-204;

(b) determine that the person is not disqualified under Section 32B-1-304;

(c) consider the physical characteristics of the licensed premises where it is proposed that beer be stored by the person, such as:

(i) location;

(ii) proximity to transportation; and

(iii) condition, size, and security of the licensed premises;

(d) consider the person's ability to manage and operate a beer wholesaling operation, including:

(i) management experience;

(ii) past wholesaling experience;

(iii) the brands the person intends to wholesale; and

(iv) the means the person intends to use to distribute beer; and

(e) consider any other factor that the commission considers necessary.

§ 32B-13-206 Bond for a beer wholesaling license.

(1)

(a) A beer wholesaler licensee shall post a cash bond or surety bond in the penal sum of $10,000 payable to the department.

(b) A beer wholesaler licensee shall procure and maintain a bond required by this section for as long as the beer wholesaler licensee continues to operate as a beer wholesaler licensee.

(2) A bond posted under this section shall be:

(a) in a form approved by the attorney general; and

(b) conditioned upon a beer wholesaler licensee's faithful compliance with this title and the rules of the commission.

(3) If a surety bond posted by a beer wholesaler licensee under this section is canceled due to a beer wholesaler licensee's negligence, the department may assess a $300 reinstatement fee.

(4) No part of a bond posted under this section may be withdrawn during the period the beer wholesaling license is in effect.

(5)

(a) A bond posted under this section by a beer wholesaler licensee may be forfeited if the beer wholesaling license is revoked.

(b) Notwithstanding Subsection (5)(a), the department may make a claim against a bond posted by a beer wholesaler licensee for money owed the department under this title without the commission first revoking the beer wholesaling license.

Part 3 Operational Requirements for Beer Wholesaling License

§ 32B-13-301 General operational requirements for beer wholesaling license.

(1)

(a) A beer wholesaler licensee and staff of the beer wholesaler licensee shall comply with this title and the rules of the commission.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a beer wholesaler licensee;

(ii) individual staff of a beer wholesaler licensee; or

(iii) both a beer wholesaler licensee and staff of the beer wholesaler licensee.

(2)

(a) A beer wholesaler licensee shall make and maintain the records required by the department.

(b) Section 32B-1-205 applies to a record required to be made or maintained in accordance with this Subsection (2).

(3) A beer wholesaler licensee may not employ a minor to handle an alcoholic product.

(4) A beer wholesaler licensee may not sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the beer wholesaling license to a person, whether for monetary gain or not, unless it is done:

(a) in accordance with the commission rules; and

(b) after written consent is given by the commission.

(5) A beer wholesaler licensee may not wholesale a beer manufactured within the state by a brewer who is not licensed by the commission as a brewery manufacturing licensee.

(6) A beer wholesaler licensee may not wholesale a beer manufactured out of state by a brewer who has not obtained a certificate of approval from the department.

(7)

(a) A beer wholesaler licensee may not sell or distribute beer to a person within the state except to:

(i) a retail licensee;

(ii) an off-premise beer retailer; or

(iii) an event permittee.

(b) A violation of this Subsection (7) is a class A misdemeanor.

(8)

(a) A beer wholesaler licensee may not sell or distribute a beer to a person who sells the beer at retail outside of a sales territory designated on its application and authorized by an agreement described in Subsection 32B-13-202(8), except that if a beer wholesaler licensee is temporarily unable to supply a person within the beer wholesaler licensee's authorized sales territory, the department may grant temporary authority to another beer wholesaler licensee who distributes the same brand in another sales territory to supply:

(i) a retail licensee; or

(ii) an off-premise beer retailer.

(b) A violation of this Subsection (8) is a class B misdemeanor.

(9)

(a) A beer wholesaler licensee shall own, lease, or otherwise control and maintain a warehouse facility located in this state for the receipt, storage, and further distribution of beer sold by the beer wholesaler licensee to a person within the state.

(b) A beer wholesaler licensee may not sell beer to a person in this state, other than the department, unless the beer is first:

(i) physically removed from the vehicle used to transport the beer from the supplier to the beer wholesaler licensee; and

(ii) delivered into the actual possession and control of the beer wholesaler licensee in its warehouse or other facility.

(10) A beer wholesaler licensee may not sell or distribute an alcoholic product that has not had its label and packaging approved by the department in accordance with Chapter 1, Part 6, Malted Beverage Act.

(11) The commission may prescribe by policy or rule, consistent with this title, the general operational requirements of a beer wholesaling licensee relating to:

(a) physical facilities; and

(b) the conditions of importation, purchase, storage, sale, offering for sale, distribution, or transportation of beer within the state.

§ 32B-13-302 Notifying the department of a change of ownership.

The commission may suspend or revoke a beer wholesaling license if a beer wholesaler licensee does not immediately notify the department of change in:

(1) ownership of the beer wholesaler licensee;

(2) for a corporate owner, the:

(a) corporate officers or directors; or

(b) shareholders holding at least 20% of the total issued and outstanding stock of the corporation; or

(3) for a limited liability company:

(a) managers; or

(b) members owning at least 20% of the limited liability company.

Chapter 14 Utah Beer Industry Distribution Act

Part 1 General Provisions

§ 32B-14-101 Legislative policy.

It is the policy of the Legislature to regulate and control the importation, sale, and distribution of beer within the state in the exercise of its powers under the Twenty-first Amendment to the Constitution of the United States and pursuant to the Utah Constitution.

§ 32B-14-102 Definitions.

As used in this chapter:

(1) "Affected party" means a supplier or wholesaler who is a party to a distributorship agreement that a terminating party seeks to terminate or not renew.

(2)

(a) "Distributorship agreement" means a written agreement between a supplier and a wholesaler under which the wholesaler has the right to purchase, resell, and distribute in a designated geographical area any brand of beer manufactured, imported, or distributed by the supplier.

(b) For purposes of this chapter, a separate agreement between a supplier and a wholesaler is considered to be part of a distributorship agreement if the separate agreement relates to:

(i) the relationship between the supplier and the wholesaler; or

(ii) the duties of either the supplier or the wholesaler under a distributorship agreement.

(3) "Good cause" means the material failure by a supplier or a wholesaler to comply with an essential, reasonable, and lawful requirement imposed by a distributorship agreement if the failure occurs after the supplier or wholesaler acting in good faith provides notice of deficiency and an opportunity to correct in accordance with Part 2, Termination.

(4) "Good faith" means the same as that term is defined in Section 70A-1a-201.

(5) "Retailer" means a beer retailer.

(6) "Sales territory" means the geographic area of distribution and sale responsibility designated by a distributorship agreement.

(7) "Supplier," notwithstanding Section 32B-1-102, means a brewer or other person who sells beer to a wholesaler for resale in this state.

(8) "Terminating party" means a supplier or wholesaler who:

(a) is a party to a distributorship agreement; and

(b) seeks to terminate or not renew the distributorship agreement.

§ 32B-14-103 Modifying statutory requirements not permitted.

(1) Nothing in this chapter is intended to restrict the right of a supplier to contractually require its wholesaler to comply with the supplier's operational standards of performance that are:

(a) consistent with this chapter; and

(b) uniformly established for its wholesalers according to the supplier's good faith business judgment.

(2) Notwithstanding Subsection (1), the requirements of this chapter may not be modified by agreement.

(3) An agreement that by its terms modifies the requirements of this chapter is void and unenforceable to the extent it attempts to modify the requirements of this chapter.

Part 2 Termination

§ 32B-14-201 Termination of distributorship agreements.

(1) Except as provided in Subsection (2) or (3), a supplier or wholesaler may not:

(a) terminate a distributorship agreement; or

(b) fail to renew a distributorship agreement.

(2) A supplier or wholesaler may take an action prohibited by Subsection (1) if:

(a) the supplier or wholesaler has good cause for the action; and

(b) if notification is required by Section 32B-14-202:

(i) the terminating party provides the affected party prior notification in accordance with Section 32B-14-202; and

(ii) the affected party has not eliminated the reasons specified in the notification as the reasons for the action within 90 days after the date the notification is mailed in accordance with Section 32B-14-202.

(3) A supplier may take an action prohibited by Subsection (1) if:

(a) the supplier gives the wholesaler 30 days written notice before termination or nonrenewal;

(b) the supplier discontinues production or discontinues distribution throughout the state of all brands of beer sold by the supplier to the wholesaler; and

(c) the termination or nonrenewal does not violate the distributorship agreement.

§ 32B-14-202 Notice of termination.

(1) Except as provided in Subsection (3), a terminating party may not take an action described in Subsection 32B-14-201(1) unless the terminating party provides prior notification in accordance with Subsection (2) to the affected party.

(2)

(a) A terminating party shall provide the notification required under Subsection (1):

(i) in writing;

(ii) by registered mail, return receipt requested; and

(iii) to the affected party not less than 90 days before the date on which the distributorship agreement will be terminated or not renewed.

(b) A terminating party shall state in the notification required under Subsection (1):

(i) the intention to terminate or not renew;

(ii) the reasons for the termination or nonrenewal; and

(iii) the date, not less than 90 days from the date of mailing, on which the termination or nonrenewal shall take effect if the reasons for the action are not eliminated by that date.

(3) A supplier or wholesaler may take an action described in Subsection 32B-14-201(1) without furnishing prior notification if:

(a) the affected party is insolvent, bankrupt, in dissolution, or in liquidation;

(b) the affected party makes an assignment for the benefit of creditors or similar disposition of substantially all of the assets of the affected party's business; or

(c) the affected party or a person owning more than 10% of the stock or other ownership interest in the affected party:

(i) is convicted of, pleads guilty to, or pleads no contest to a felony under federal law or a law of this state that in the reasonable, good faith judgment of the terminating party materially and adversely affects the good will or business of the terminating party;

(ii) has its license or permit revoked or suspended for a period of 31 days or more; or

(iii) engages in intentional fraudulent conduct in its dealings with the terminating party that in the reasonable, good faith judgment of the terminating party materially and adversely affects the good will or business of the terminating party.

(4) Notwithstanding Subsection (3)(c)(i), a supplier may not take an action under Subsection (3)(c)(i) because of a conviction or plea by an owner of the affected party, if:

(a) any other approved owner of the affected party purchases the ownership interest of the offending owner;

(b) the offending owner was not materially involved in the management of the affected party; and

(c) the purchase described in Subsection (4)(a) is completed within 90 days after the conviction or plea.

(5) Subsection (3)(c)(iii) does not apply to conduct by a non-owner employee or representative of the affected party if the conduct occurred without the prior knowledge or consent of an owner of the affected party.

Part 3 Operational Provisions

§ 32B-14-301 Distributorship agreements in general.

A distributorship agreement may be for a definite or indefinite period.

§ 32B-14-302 Prohibited conduct of supplier.

(1) A supplier may not:

(a) induce or coerce, or attempt to induce or coerce, a wholesaler to engage in an illegal act or course of conduct;

(b) impose a requirement that is discriminatory by its terms or in the methods of enforcement as compared to requirements imposed by the supplier on similarly situated wholesalers;

(c) prohibit a wholesaler from selling a product of another supplier;

(d) fix or maintain the price at which a wholesaler may resell beer;

(e) fail to execute with each wholesaler of its brands a written distributorship agreement;

(f) require a wholesaler to accept delivery of beer or any other item that is not voluntarily ordered by the wholesaler;

(g) restrict or inhibit, directly or indirectly, the right of a wholesaler to participate in an organization representing interests of wholesalers for a lawful purpose;

(h) require a wholesaler to participate in or contribute to a local, regional, or national advertising fund or other promotional activity that:

(i) is not used for an advertising or promotional activity in the wholesaler's sales territory; or

(ii) would require a contribution by the wholesaler in excess of the amounts specified in the distributorship agreement;

(i) retaliate against a wholesaler that files a complaint with the department or the applicable federal agency regarding an alleged violation by the supplier of a state or federal statute or administrative rule;

(j) require without good cause a change in the manager of a wholesaler who has previously been approved by the supplier;

(k) if a wholesaler changes its approved manager, prohibit the change unless the new manager fails to meet the reasonable standards for similarly situated wholesalers of the supplier as stated in the distributorship agreement; or

(l) refuse to deliver a beer product covered by a distributorship agreement to the wholesaler:

(i) in a reasonable quantity; and

(ii) within a reasonable time after receipt of the wholesaler's order.

(2) Notwithstanding Subsection (1)(l), the supplier may refuse to deliver a beer product if the refusal is due to:

(a) the wholesaler's failure to pay the supplier pursuant to the distributorship agreement;

(b) an unforeseeable event beyond the supplier's control;

(c) a work stoppage or delay due to a strike or labor problem;

(d) a bona fide shortage of materials; or

(e) a freight embargo.

§ 32B-14-303 Prohibited conduct of wholesaler.

(1) A wholesaler may not:

(a) induce or coerce, or attempt to induce or coerce, a retailer to engage in an illegal act or course of conduct;

(b) impose a requirement that is discriminatory by its terms or in the methods of enforcement as compared to requirements imposed by the wholesaler on similarly situated retailers;

(c) prohibit a retailer from selling a product of another wholesaler;

(d) fix or maintain the price at which a retailer may resell beer;

(e) require a retailer to accept delivery of beer or any other item that is not voluntarily ordered by the retailer;

(f) restrict or inhibit, directly or indirectly, the right of a retailer to participate in an organization representing interests of retailers for a lawful purpose;

(g) require a retailer to participate in or contribute to a local, regional, or national advertising fund or other promotional activity;

(h) retaliate against a retailer that files a complaint with the department or the applicable federal agency regarding an alleged violation by the wholesaler of a state or federal statute or administrative rule; and

(i) refuse to deliver a beer product carried by the wholesaler to a properly licensed retailer who resides within the wholesaler's sales territory:

(i) in a reasonable quantity; and

(ii) within a reasonable time after receipt of the retailer's order.

(2) Notwithstanding Subsection (1)(i), the wholesaler may refuse to deliver a beer product if the refusal is due to:

(a) the retailer's failure to pay the wholesaler pursuant to Subsection 32B-4-704(6);

(b) an unforeseeable event beyond the wholesaler's control;

(c) a work stoppage or delay due to a strike or labor problem;

(d) a bona fide shortage of materials; or

(e) a freight embargo.

§ 32B-14-304 Sale or transfer of business assets or ownership.

(1) Without the prior written approval of a sale or transfer by the supplier:

(a) a wholesaler may not sell or transfer its business, or any portion of its business, including the distributorship agreement, to a successor in interest; and

(b) the owner of an interest in a wholesaler may not sell or transfer all or part of the owner's interest in the wholesaler to a successor in interest.

(2) A supplier may not unreasonably withhold or delay its approval of a sale or transfer, including the wholesaler's rights and obligations under the terms of the distributorship agreement, if the person to be substituted meets reasonable standards that are imposed:

(a) by the supplier pursuant to the distributorship agreement; and

(b) on other wholesalers of that supplier of the same general class, taking into account the size and location of the sales territory and market to be served.

(3) Notwithstanding Subsection (1), a wholesaler may not violate Subsection 32B-13-301(8).

§ 32B-14-305 Sale or transfer of supplier's business.

(1)

(a) For purposes of this section, "successor" means a supplier who obtains a distribution right of a brand that a wholesaler distributes in this state pursuant to a distributorship agreement with another supplier who previously had the distribution rights of the brand.

(b) For purposes of Subsection (1)(a), the successor may obtain a distribution right:

(i) by any means, including:

(A) merger;

(B) purchase of corporate shares; or

(C) purchase of assets; and

(ii) from:

(A) a supplier; or

(B) a person acting in an official capacity who is not a supplier including a nominee, representative, or fiduciary.

(2)

(a) A successor to a supplier that acquires a supplier's product or brand in this state is bound by the terms and conditions of each distributorship agreement with a wholesaler in this state that was in effect on the date on which the successor receives the assets or rights of the previous supplier.

(b) Notwithstanding Subsection (2)(a), if the requirements of Subsection (2)(c) are met, a successor may contractually require the wholesaler to:

(i) execute a new distributorship agreement; and

(ii) comply with the successor's operational standards of performance.

(c) A successor may impose a requirement under Subsection (2)(b) if:

(i) the operational standards of performance being required are consistent with this chapter;

(ii) the operational standards of performance being required are uniformly imposed by the successor on similarly situated wholesalers; and

(iii) the successor provides the wholesaler at least one year to:

(A) execute a new distributorship agreement; and

(B) comply with the operational standards of performance.

Part 4 Remedies

§ 32B-14-401 Reasonable compensation -- Arbitration.

(1)

(a) If a supplier violates Section 32B-14-201 or 32B-14-304, the supplier is liable to the wholesaler for the sum of:

(i) the laid-in cost of inventory of the affected brands; and

(ii) any diminution in the fair market value of the wholesaler's business with relation to an affected brand.

(b) In determining fair market value, consideration shall be given to all elements of value, including good will and going concern value.

(2)

(a) A distributorship agreement may require that any or all disputes between a supplier and a wholesaler be submitted to binding arbitration.

(b) In the absence of an applicable arbitration provision in a distributorship agreement, either the supplier or the wholesaler may request arbitration if a supplier and a wholesaler are unable to mutually agree on:

(i) whether good cause exists for termination or nonrenewal;

(ii) whether the supplier unreasonably withheld approval of a sale or transfer under Section 32B-14-304; or

(iii) the reasonable compensation to be paid for the value of the wholesaler's business in accordance with Subsection (1).

(c) If a supplier or wholesaler requests arbitration under Subsection (2)(b) and the other party agrees to submit the matter to arbitration, an arbitration panel shall be created with the following members:

(i) one member selected by the supplier in a writing delivered to the wholesaler within 10 business days of the date arbitration was requested under Subsection (2)(b);

(ii) one member selected by the wholesaler in a writing delivered to the supplier within 10 business days of the date arbitration was requested under Subsection (2)(b); and

(iii) one member selected by the two arbitrators appointed under Subsections (2)(c)(i) and (ii).

(d) If the arbitrators fail to choose a third arbitrator under Subsection (2)(c)(iii) within 10 business days of the day on which the arbitrators under Subsections (2)(c)(i) and (ii) are selected, a judge of a district court in the county in which the wholesaler's principal place of business is located shall select the third arbitrator.

(e) Arbitration costs shall be divided equally between the wholesaler and the supplier.

(f) The award of the arbitration panel is binding on the parties unless appealed within 20 days from the date of the award.

(g) Subject to the requirements of this chapter, arbitration and a proceeding on appeal are governed by Title 78B, Chapter 11, Utah Uniform Arbitration Act.

§ 32B-14-402 Judicial remedies.

(1) A supplier or wholesaler who is a party to a distributorship agreement may maintain a civil action against the supplier or wholesaler in a court of competent jurisdiction in the county in which the wholesaler's principal place of business is located if:

(a) the supplier or wholesaler violates this chapter; or

(b)

(i) the supplier and wholesaler are not able to mutually agree on reasonable compensation under Section 32B-14-401; and

(ii) the parties do not agree to submit the matter to arbitration in accordance with Section 32B-14-401 before or within 20 days following service of process on the electing party in the civil action.

(2)

(a) The prevailing party in an action under Subsection (1) shall recover:

(i) actual damages, including the value of the wholesaler's business as specified in Section 32B-14-401 if applicable; and

(ii) reasonable attorney fees and court costs.

(b) In addition to the amount awarded under Subsection (2)(a), the court may grant such relief in law or equity as the court determines to be necessary or appropriate considering the purposes of this chapter.

(3) If either party elects arbitration under Subsection (1)(b)(ii) following service of process, the civil action is stayed pending a decision by the arbitration panel.

Chapter 15 Alcoholic Product Liability Act

Part 1 General Provisions

§ 32B-15-101 Title.

This chapter is known as the "Alcoholic Product Liability Act."

§ 32B-15-102 Definitions.

As used in this chapter:

(1) "Death of a third person" includes recovery for all damages, special and general, resulting from the death, except punitive damages.

(2)

(a) "Injury" includes injury in person, property, or means of support.

(b) "Injury" also includes recovery for intangibles such as:

(i) mental and emotional injuries;

(ii) loss of affection; and

(iii) loss of companionship.

Part 2 Liability

§ 32B-15-201 Liability for injuries and damage resulting from distribution of alcoholic products -- Prima facie evidence.

(1)

(a) Except as provided in Subsections 32B-15-202(2) and (3), a person described in Subsection (1)(b) is liable for:

(i) any and all injury and damage, except punitive damages to:

(A) a third person; or

(B) the heir, as defined in Section 78B-3-105, of the third person; or

(ii) the death of a third person.

(b) A person is liable under Subsection (1)(a) if:

(i) the person directly gives, sells, or otherwise provides an alcoholic product:

(A) to a person described in Subsection (1)(b)(ii); and

(B) as part of the commercial sale, storage, service, manufacture, distribution, or consumption of an alcoholic product;

(ii) those actions cause the intoxication of:

(A) an individual under 21 years old;

(B) an individual who is apparently under the influence of an alcoholic product or drug;

(C) an individual whom the person furnishing the alcoholic product knew or should have known from the circumstances was under the influence of an alcoholic product or drug; or

(D) an individual who is a known interdicted person; and

(iii) the injury or death described in Subsection (1)(a) results from the intoxication of the individual who is provided the alcoholic product.

(c) It is prima facie evidence that a person is liable under Subsection (1)(a) for an injury or death that results from the intoxication of an individual described in Subsection (1)(b)(ii)(B) or (C) if:

(i) the person directly gives, sells, or otherwise provides the individual the last alcoholic product the individual consumes before the injury or death described in Subsection (1)(b)(iii);

(ii) the individual consumes the alcoholic product at the location where the person directly gives, sells, or otherwise provides the individual the alcoholic product;

(iii) the injury or death occurs within 30 minutes after the time at which the individual leaves, and within a 10 mile radius of, the location where the person gives, sells, or otherwise provides the individual the alcoholic product; and

(iv)

(A) the individual is charged with an offense described in Subsection 41-6a-501(2)(a); or

(B) if the individual dies as a result of the event that caused the injury or death, a subsequent chemical test shows that the individual had a blood alcohol concentration of .05 grams or greater at the time of the test.

(2)

(a) A person 21 years old or older who is described in Subsection (2)(b) is liable for:

(i) any and all injury and damage, except punitive damages to:

(A) a third person; or

(B) the heir, as defined in Section 78B-3-105, of the third person; or

(ii) the death of the third person.

(b) A person is liable under Subsection (2)(a) if:

(i) the person directly gives or otherwise provides an alcoholic product to an individual who the person knows or should have known is under 21 years old;

(ii) those actions caused the intoxication of the individual provided the alcoholic product;

(iii) the injury or death described in Subsection (2)(a) results from the intoxication of the individual who is provided the alcoholic product; and

(iv) the person is not liable under Subsection (1), because the person did not directly give or provide the alcoholic product as part of the commercial sale, storage, service, manufacture, distribution, or consumption of an alcoholic product.

(3) This section does not apply to a business licensed in accordance with Chapter 7, Off-Premise Beer Retailer Act, to sell beer at retail only for off-premise consumption.

§ 32B-15-202 Liability for employees -- Employee protected in exercising judgment.

(1)

(a) Except for a violation of Subsection 32B-15-201(2), an employer is liable for the actions of its staff in violation of this chapter.

(b) This Subsection (1) does not apply to a business licensed in accordance with Chapter 7, Off-Premise Beer Retailer Act, to sell beer at retail only for off-premise consumption.

(2) An employer may not sanction or terminate the employment of individual staff of a retail licensee or other establishment serving an alcoholic product as a result of the staff having exercised the staff's independent judgment to refuse to sell an alcoholic product to a person the staff considers to meet one or more of the conditions described in Subsection 32B-15-201(1)(b).

(3) An employer who terminates an employee or imposes sanctions on the employee contrary to this section is considered to have discriminated against that employee and is subject to the conditions and penalties set forth in Title 34A, Chapter 5, Utah Antidiscrimination Act.

§ 32B-15-203 Governmental immunity.

This title does not create civil liability on the part of the following arising out of one of the following's actions in regulating, controlling, authorizing, or otherwise being involved in the sale or other distribution of an alcoholic product:

(1) the state;

(2) a state agency;

(3) a state employee;

(4) the commission;

(5) the department; or

(6) a political subdivision.

Part 3 Civil Action

§ 32B-15-301 Cause of action -- Statute of limitations.

(1)

(a) A person who suffers an injury under Section 32B-15-201 has a cause of action against the person who provided the alcoholic product in violation of Section 32B-15-201.

(b) If a person having rights or liabilities under this chapter dies, the rights or liabilities provided by this chapter survive to or against that person's estate.

(2) The total amount that may be awarded to any person pursuant to a cause of action for injury and damage under this chapter that arises after January 1, 2010, is limited to $1,000,000 and the aggregate amount which may be awarded to all persons injured as a result of one occurrence is limited to $2,000,000.

(3) An action based upon a cause of action under this chapter shall be commenced within two years after the date of the injury and damage.

(4)

(a) Nothing in this chapter precludes any cause of action or additional recovery against the person causing the injury.

(b) A cause of action or additional recovery against the person causing the injury and damage, which action is not brought under this chapter, is exempt from the damage cap in Subsection (2).

(c) A cause of action brought under this chapter is exempt from Sections 78B-5-817 through 78B-5-823.

(5) This section does not apply to a business licensed in accordance with Chapter 7, Off-Premise Beer Retailer Act, to sell beer at retail only for off-premise consumption.

§ 32B-15-302 Action for contribution by provider of an alcoholic product.

(1)

(a) Except as provided in Subsections (2) and (3), a person, as defined under Section 32B-15-201 or Subsection 32B-15-202(1), against whom an award is made under this chapter, may bring a separate cause of action for contribution against any person causing the injury and damage.

(b) The maximum amount for which a person causing the injury and damage may be liable to a person seeking contribution is that percentage or proportion of the damages equivalent to the percentage or proportion of fault attributed to that person causing the injury and damage.

(2) This action for contribution under this section may not be brought against:

(a) a person entitled to recovery as described in Subsection 32B-15-201(1)(a)(i) or (ii); or

(b) a person entitled to recover as described in Subsection 32B-15-201(2)(a)(i) or (ii).

(3) An action for contribution under this section may not diminish the amount of recovery for injury or damages awarded and received to a person entitled to recover as described in Subsection 32B-15-201(1)(a)(i) or (ii) or 32B-15-201(2)(a)(i) or (ii):

(a) in a cause of action brought under this chapter; or

(b) in a separate cause of action for injury and damage that is not brought under this chapter.

Chapter 16 Minor Liability Act

Part 1 General Provisions

§ 32B-16-101 Title.

This chapter is known as the "Minor Liability Act."

§ 32B-16-102 Definitions.

As used in this chapter:

(1) "Applicable fine" means the sum of the following imposed or assessed under this title by the commission for a violation related to a minor:

(a) a fine; and

(b) administrative costs of a disciplinary proceeding.

(2) "Violation related to a minor" means a violation under this title:

(a) that is, in whole or in part, based on a retail licensee, or staff of the retail licensee:

(i) selling, offering for sale, or furnishing an alcoholic product to a minor;

(ii) purchasing or otherwise obtaining an alcoholic product for a minor;

(iii) permitting a minor to consume an alcoholic product;

(iv) permitting a minor to gain admittance to an area into which a minor is not permitted under this title; or

(v) offering or providing employment to a minor that under this title may not be obtained by a minor; and

(b) if as part of the violation the minor uses proof of age in violation of Chapter 1, Part 4, Proof of Age Act.

Part 2 Liability to Retail Licensee

§ 32B-16-201 Liability related to applicable fine.

(1) A minor is liable to a retail licensee in an amount described in Subsection (2) if:

(a) the commission imposes an applicable fine against the retail licensee on the basis of a violation related to a minor; and

(b) the minor, as part of the minor's involvement in the violation described in Subsection (1)(a), uses proof of age in violation of Chapter 1, Part 4, Proof of Age Act.

(2) If the conditions of Subsection (1) are met, a minor is liable to a retail licensee for an amount equal to the sum of:

(a) one-half of the amount of the applicable fine imposed against the retail licensee; and

(b) the costs and attorney fees incurred by the retail licensee under Section 32B-16-301 to collect the amount owed under this section.

Part 3 Civil Action

§ 32B-16-301 Bringing an action.

(1) Subject to the other provisions of this section, a retail licensee to whom a minor is liable under Section 32B-16-201 may bring an action in a court of competent jurisdiction to collect the amount described in Section 32B-16-201.

(2) The action allowed under this section may be brought against:

(a) the minor; or

(b) if the minor is less than 18 years of age, a parent or guardian of the minor.

(3) An action under this chapter may not be commenced more than two years after the day on which the applicable fine is imposed by the commission.

(4) Nothing in this chapter precludes a cause of action or additional recovery against a minor under law other than this chapter.

(5) Notwithstanding the other provisions of this part:

(a) the state or an agency of the state is not liable under this part when a state agency has legal or protective custody of, or has guardianship of a minor at the time:

(i) the minor engages in conduct with regard to a violation related to a minor; or

(ii) an applicable fine is imposed on the retail licensee by the commission; and

(b) a retail licensee may not bring an action against the state or an agency of the state under the circumstances described in Subsection (5)(a).

§ 32B-16-302 Action for contribution.

(1)

(a) Subject to Subsections (2) and (3), a minor liable under Section 32B-16-201 against whom an award is made under this chapter, may bring a separate cause of action for contribution against a person causing the liability under Section 32B-16-201.

(b) The maximum amount for which a person described in Subsection (1)(a) may be liable to a minor seeking contribution is that percentage or proportion of the amount described in Section 32B-16-201 equivalent to the percentage or proportion of fault attributed to that person causing the liability under Section 32B-16-201.

(2) An action for contribution under this section may not be brought against:

(a) the retail licensee to whom the minor is liable; or

(b) staff of the retail licensee.

(3) An action for contribution under this section may not diminish the amount collected by a retail licensee under this chapter.

Chapter 17 Liquor Transport License Act

Part 1 General Provisions

§ 32B-17-101 Title.

This chapter is known as the "Liquor Transport License Act."

§ 32B-17-102 Definitions.

As used in this chapter:

(1) "Airport licensee" means a person who holds a valid:

(a) retail license for premises located at an international airport or domestic airport; or

(b) special use permit for premises located at an international airport or domestic airport.

(2) "Central receiving and distribution center" means a facility that:

(a) operates at an international airport or domestic airport;

(b) receives goods and supplies delivered to the international airport or domestic airport for an airport licensee;

(c) screens the goods and supplies described in Subsection (2)(b) for security purposes; and

(d) distributes the goods and supplies described in Subsection (2)(b) to the airport licensee for whom the goods and supplies were delivered.

Part 2 Liquor Transport License Process

§ 32B-17-201 Commission's power to issue liquor transport license.

(1)

(a) A person who is not a retail licensee shall obtain a liquor transport license issued by the commission in accordance with this chapter before the person may:

(i) pickup liquor on behalf of a retail licensee and deliver the liquor to a retail licensee or a central receiving and distribution center; or

(ii) if the person is a central receiving and distribution center:

(A) pickup liquor on behalf of an airport licensee and deliver the liquor to the central receiving and distribution center's premises; or

(B) receive, screen, store, or deliver alcoholic product as part of the central receiving and distribution center's operations.

(b) A violation of Subsection (1)(a) is a class A misdemeanor.

(2) The commission may issue a liquor transport license for:

(a) the pickup of liquor on behalf of a retail licensee and the delivery of the liquor to the retail licensee or a central receiving and distribution center; or

(b) the receipt, screening, storage, and distribution of alcoholic product by a central receiving and distribution center.

(3) In accordance with this chapter, a liquor transport license entitles the holder to:

(a)

(i) pickup liquor from a package agency or state store on behalf of a retail licensee using the retail licensee's funds; and

(ii) transport and deliver the liquor directly to:

(A) the retail licensee; or

(B) if the retail licensee is an airport licensee, a central receiving and distribution center; or

(b) if the holder is a central receiving and distribution center:

(i)

(A) pickup liquor from a package agency or state store on behalf of an airport licensee using the airport licensee's funds; and

(B) transport the liquor directly to the central receiving and distribution center's premises for screening, storage, and delivery to the airport licensee;

(ii) receive at the central receiving and distribution center's premises:

(A) liquor purchased by or on behalf of an airport licensee and delivered to the central receiving and distribution center by the airport licensee or a liquor transport licensee; or

(B) beer delivered to the central receiving and distribution center for an airport licensee by a beer wholesaler licensee or a small brewer;

(iii) screen and store alcoholic product picked up or received by the central receiving and distribution center; and

(iv) transport and deliver the alcoholic product to the airport licensee.

(4) Nothing in this chapter prohibits a retail licensee from picking up liquor purchased by the retail licensee and transporting the liquor to the retail licensee's licensed premises in accordance with the other provisions of this title.

§ 32B-17-202 Application requirements for liquor transport license.

To obtain a liquor transport license, a person shall submit to the department:

(1) a written application in a form prescribed by the department;

(2) a nonrefundable $300 application fee;

(3) an initial license fee of $2,300 that is refundable if the commission does not issue a liquor transport license;

(4) a copy of the person's current business license;

(5) a bond as specified in Section 32B-17-206;

(6) evidence that the person carries liability insurance in an amount and form satisfactory to the department;

(7) if the person is a central receiving and distribution center:

(a) a floor plan of each premises where the central receiving and distribution center proposes to receive, screen, store, or deliver alcoholic product;

(b) a statement of the number of airport licensees for which the central receiving and distribution center proposes to provide services under the liquor transport license; and

(c) a signed consent form stating that the central receiving and distribution center will permit any authorized representative of the commission or the department or a law enforcement officer to have unrestricted right to enter the central receiving and distribution center's premises, in compliance with applicable federal security procedures; and

(8) any other information the commission or department requires.

§ 32B-17-203 Renewal requirements for liquor transport license.

(1) A liquor transport license expires on May 31 of each year.

(2) To renew a liquor transport license, a person shall submit to the department by no later then April 30 of the year in which the license expires:

(a) a completed renewal application in a form prescribed by the department;

(b) a copy of the person's current business license;

(c) a bond as specified in Section 32B-17-206;

(d) evidence that the person carries liability insurance in an amount and form satisfactory to the department;

(e) if the person is not a central receiving and distribution center, a report that includes the following information for the period since the liquor transport licensee obtained or renewed a liquor transport license:

(i) the number of deliveries the liquor transport licensee made to each type of retail licensee; and

(ii) each state store and each package agency from which the liquor transport licensee picked up liquor as a liquor transport licensee;

(f) if the person is a central receiving and distribution center, a report that includes the following information for the period since the liquor transport licensee obtained or renewed a liquor transport license:

(i) the number of times the liquor transport licensee picked up liquor on behalf of an airport licensee; and

(ii) each state store and each package agency from which the liquor transport licensee picked up liquor on behalf of an airport licensee;

(g) any other information the commission or department requires; and

(h) a $1,200 renewal fee.

(3) Failure to meet the renewal requirements described in this section results in an automatic forfeiture of the liquor transport license effective on the date the existing liquor transport license expires.

§ 32B-17-204 Qualifications for liquor transport license.

(1) The commission may not issue a liquor transport license to a person who is disqualified under Section 32B-1-304.

(2) If a person to whom a liquor transport license is issued under this chapter no longer possesses the qualifications required by this title for obtaining the liquor transport license, the commission may suspend or revoke the person's liquor transport license.

§ 32B-17-205 Commission and department duties before issuing liquor transport license.

(1)

(a) Before the commission may issue a liquor transport license, the department shall conduct an investigation and may hold public hearings to gather information and make recommendations to the commission as to whether a liquor transport license should be issued.

(b) The department shall forward the information and recommendations described in Subsection (1)(a) to the commission to aid in the commission's determination.

(2) Before issuing a liquor transport license, the commission shall:

(a) determine that the person filed a complete application that complies with Sections 32B-17-202 and 32B-17-204;

(b) determine that the person is not disqualified under Section 32B-1-304;

(c) consider the person's ability to manage and operate a liquor transport operation, including:

(i) management experience;

(ii) past related experience; and

(iii) the means the person intends to use to deliver liquor to retail licensees; and

(d) consider any other factor that the commission considers necessary.

§ 32B-17-206 Bond for liquor transport license.

(1)

(a) A liquor transport licensee shall post a cash bond or surety bond in the penal sum of $10,000 payable to the department.

(b) A liquor transport licensee shall procure and maintain a bond in accordance with this section for as long as the liquor transport licensee operates as a liquor transport licensee.

(2) A bond posted under this section shall be:

(a) in a form approved by the attorney general; and

(b) conditioned upon a liquor transport licensee's faithful compliance with this title and the rules of the commission.

(3) If a surety bond posted by a liquor transport licensee under this section is canceled due to the liquor transport licensee's negligence, the department may assess a $300 reinstatement fee.

(4) No part of a bond posted under this section may be withdrawn during the period the liquor transport license is in effect.

(5)

(a) A bond posted under this section may be forfeited if the liquor transport license is revoked.

(b) Notwithstanding Subsection (5)(a), the department may make a claim against a bond posted by a liquor transport licensee for money owed the department under this title without the commission first revoking the liquor transport license.

Part 3 Operational Requirements for Liquor Transport License

§ 32B-17-301 General operational requirements for liquor transport license.

(1)

(a) A liquor transport licensee and staff of the liquor transport licensee shall comply with this title and the rules of the commission.

(b) Failure to comply as provided in Subsection (1)(a) may result in disciplinary action in accordance with Chapter 3, Disciplinary Actions and Enforcement Act, against:

(i) a liquor transport licensee;

(ii) individual staff of a liquor transport licensee; or

(iii) both a liquor transport licensee and staff of the liquor transport licensee.

(2) A liquor transport licensee may not employ a minor to handle an alcoholic product.

(3) A liquor transport licensee may not sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the liquor transport license to a person, regardless of whether done for monetary gain.

(4)

(a) A liquor transport licensee may not deliver alcoholic product to a person within the state except to:

(i) a retail licensee;

(ii) a central receiving and distribution center; or

(iii) if the liquor transport licensee is a central receiving and distribution center, an airport licensee.

(b) A violation of this Subsection (4) is a class A misdemeanor.

(5) Alcoholic product in the possession or control of a liquor transport licensee is the property of the retail licensee or airport licensee whose funds were used to purchase the alcoholic product.

(6) The commission may prescribe by rule, consistent with this title, the general operational requirements of a liquor transport licensee.

§ 32B-17-301.5 Additional operational requirements for liquor transport license held by a central receiving and distribution center.

(1) A liquor transport licensee that is a central receiving and distribution center shall establish a secure process for:

(a) receiving alcoholic product from airport licensees, liquor transport licensees, beer wholesaler licensees, and small brewers at the central receiving and distribution center's premises;

(b) screening and storing alcoholic product the central receiving and distribution center receives or brings to the premises; and

(c) delivering alcoholic product to the airport licensee that owns the alcoholic product.

(2) As part of the secure process described in Subsection (1), the central receiving and distribution center shall:

(a) clearly identify and keep separate each airport licensee's alcoholic product;

(b) maintain alcoholic product in a locked storage area or container at all times except during:

(i) a security screening of the alcoholic product; or

(ii) transportation of the alcoholic product;

(c) notify the receiving airport licensee when screening is complete and alcoholic product is ready for delivery; and

(d) deliver the alcoholic product to the receiving airport licensee.

(3) The commission may prescribe by rule, consistent with this title, the operational requirements of a liquor transport licensee that is a central receiving and distribution center.

§ 32B-17-302 Notifying the department of change of ownership.

The commission may suspend or revoke a liquor transport license if a liquor transport licensee does not immediately notify the department of a change in:

(1) ownership of the liquor transport service;

(2) for a corporate owner:

(a) the corporate officers or directors; or

(b) shareholders holding at least 20% of the total issued and outstanding stock of the corporation; or

(3) for a limited liability company:

(a) the managers; or

(b) the members owing at least 20% of the limited liability company.

Chapter 18 Change of Alcohol License or Location Act

Part 1 General Provisions

§ 32B-18-101 Definitions.

As used in this chapter:

(1)

(a) "Alcohol license" means:

(i) a retail license;

(ii) an off-premise beer retailer state license;

(iii) a brewery manufacturing license;

(iv) a distillery manufacturing license;

(v) a winery manufacturing license;

(vi) a liquor warehousing license; and

(vii) a special use permit that is an industrial or manufacturing use permit.

(b) "Alcohol license" does not include a:

(i) master full-service restaurant license;

(ii) master limited-service restaurant license; or

(iii) master off-premise beer retailer state license.

(2) "Business entity" means a corporation, partnership, limited liability company, sole proprietorship, or similar entity.

(3) "Interim alcoholic beverage management agreement" means a management agreement:

(a) in connection with:

(i) a change of ownership in the entity holding an alcohol license; or

(ii) a transfer of the management of an alcohol license to another entity; and

(b) under which the new owner or new management agrees to perform the operations of the alcohol licensee during the period that:

(i) begins when:

(A) the change of ownership closes; or

(B) the new management agreement is executed; and

(ii) ends on the day after the day on which the commission approves the alcohol license for the new owner.

(4) "Inventory transfer agreement" means an agreement under which an alcohol licensee agrees to sell or otherwise transfer all or part of the alcohol licensee's inventory of alcoholic products.

(5) "Management agreement" means an agreement between two people regarding the operation and management of an alcohol license.

Part 2 Alcohol License Changes of Ownership

§ 32B-18-201 Transferability of an alcohol license.

(1) An alcohol license:

(a) is not ascribed any value in the sale or transfer of a business entity or the business entity's assets;

(b) is neither tangible nor intangible property to the holder of the license; and

(c) is completely separate from other property of an alcohol licensee.

(2) The Legislature may terminate or modify the existence of any type of alcohol license.

(3) Except as provided in this part, a person may not sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the alcohol license to another person whether for monetary gain or not.

§ 32B-18-202 Effect of change of ownership of business entity.

(1)

(a) When the ownership of 51% or more of the shares of stock of a corporation is restructured to include one or more persons who did not hold the ownership of 51% of those shares of stock on the day on which an alcohol license is issued to the corporation, the corporation shall comply with this chapter to reflect the restructuring.

(b) When there is a new general partner or when the ownership of 51% or more of the capital or profits of a limited partnership is restructured to include one or more persons as general or limited partners and who did not hold ownership of 51% or more of the capital or profits of the limited partnership on the day on which an alcohol license is issued to the limited partnership, the limited partnership shall comply with this chapter to reflect the restructuring.

(c) When the ownership of 51% or more of the interests in a limited liability company is restructured to include one or more persons as members who did not hold ownership of 51% or more of the interests in the limited liability company on the day on which an alcohol license is issued to the limited liability company, the limited liability company shall comply with this chapter to reflect the restructuring.

(2) A business entity shall comply with this section within 60 days after the day on which a restructuring of the business entity becomes effective.

§ 32B-18-203 Application -- Approval process.

(1)

(a) A person seeking an alcohol license in accordance with this part that is currently held by another person shall submit to the department:

(i) a written application for a new license in a form prescribed by the department; and

(ii) a fee in accordance with Section 32B-18-207.

(b) If the person seeking an alcohol license as described in Subsection (1) seeks to take over the daily operations of the alcohol license before the commission grants the transfer, the person and the alcohol licensee shall enter into an interim alcoholic beverage management agreement that:

(i) provides for all proceeds from the sale of alcohol, less cost of goods sold, to accrue to the current alcohol licensee;

(ii) provides for the duration of the agreement, that the current alcohol licensee:

(A) shall comply with the requirements of this title that are applicable to the alcohol license; and

(B) in accordance with this title, is subject to disciplinary action by the commission for a violation of this title; and

(iii) the department approves.

(c) If the person seeking an alcohol license as described in Subsection (1) seeks to buy the inventory from the existing licensee, the person and the alcohol licensee shall enter into an inventory transfer agreement that the department approves.

(2) An alcohol licensee seeking to restructure the alcohol licensee's internal ownership of 51% or more shall submit to the department:

(a) a written application in a form prescribed by the department; and

(b) a fee in accordance with Section 32B-18-207.

(3) A person or business entity shall comply with this section within 60 days after the day on which the sale of the business's assets closes or the restructuring of the business entity becomes effective.

(4) In accordance with this section and Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules governing the requirements of an interim alcoholic beverage management agreement.

§ 32B-18-204 Notifying department of change in ownership.

The commission may suspend, revoke, or deem forfeited an alcohol license if the alcohol licensee does not notify the department, within 60 days after the day on which the change occurs, of a change in:

(1) ownership of the business entity holding the alcohol license;

(2) for a corporate owner, the:

(a) corporate officers or directors of the alcohol licensee; or

(b) shareholders holding at least 20% of the total issued and outstanding stock of the corporation; or

(3) for a limited liability company:

(a) managers of the limited liability company; or

(b) members owning at least 20% of the limited liability company.

§ 32B-18-205 Management agreements -- Inventory transfers.

(1)

(a) A management agreement may provide for the sharing of revenue from a business utilizing an alcohol license, including revenue from the sale of an alcoholic product, if, regardless of which party holds the alcohol license, neither the owner nor operator is disqualified from holding the license for a previous violation of this title.

(b) The parties to a management agreement shall submit to the department:

(i) a copy of the management agreement; and

(ii) any other information the department requires.

(c) If there is a material change to the management agreement submitted to the department under Subsection (1)(b), the parties to the management agreement shall submit to the department the following within 30 days after the day on which the change occurs:

(i) a copy of the changed management agreement; and

(ii) any other information the department requires.

(2)

(a) Notwithstanding any other provision of this title, in connection with a change of ownership described in Section 32B-18-202 or an asset sale of an alcohol licensee, the parties to the transaction may enter into an inventory transfer agreement.

(b) The inventory transfer agreement described in Subsection (2)(a) may allow for the transfer of inventory between parties regardless of whether the parties hold or are applying for the same retail license.

(3) In accordance with this section and Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules governing the requirements of:

(a) a management agreement; or

(b) an inventory transfer agreement.

§ 32B-18-206 Operational requirements for change of ownership or location.

(1)

(a) Except as provided in Subsections (1)(b) and (c), operations of an alcohol licensee shall begin within 30 days after the day on which the commission approves a change of ownership for the alcohol license.

(b) The department may grant an extension of the time period described in Subsection (1)(a) for a period not to exceed the greater of:

(i) 30 days; or

(ii) the number of days until the day on which the commission holds the commission's next regularly scheduled commission meeting.

(c) After the department authorizes an extension described in Subsection (1)(b), the commission may grant one or more additional extensions if:

(i) the alcohol licensee demonstrates to the commission that the alcohol licensee cannot begin operations because the alcohol licensee:

(A) is improving the licensed premises;

(B) has obtained a building permit for the improvements described in Subsection (1)(c)(i)(A), if the respective local authority requires a building permit for the improvements; and

(C) is working expeditiously to complete the improvements to the licensed premises; or

(ii) the commission determines that circumstances beyond the control of the alcohol licensee negate the licensee's ability to begin operations in a timely manner.

(2) An alcohol licensee is considered to have begun operations of the alcohol license if the alcohol licensee:

(a) has a licensed premises that is open for business;

(b)

(i) sells, offers for sale, or furnishes an alcoholic product to a patron on the licensed premises described in Subsection (2)(a);

(ii) manufactures an alcoholic product on the licensed premises described in Subsection (2)(a);

(iii) engages in an industrial or manufacturing pursuit containing alcohol on the licensed premises described in Subsection (2)(a); or

(iv) warehouses liquor on the licensed premises described in Subsection (2)(a); and

(c) has a valid business license.

(3) If an alcohol licensee fails to begin operations of the alcohol license within the time period required by Subsection (1), the following are automatically forfeited effective immediately:

(a) the alcohol license; and

(b) the fee described in Section 32B-18-207.

(4)

(a) Except as provided in Subsection (4)(b), if the commission approves a change of ownership, the new owner of the alcohol license shall begin operations of the alcohol license at the location to which the alcohol license applies before the new owner may move the alcohol license to a different location in accordance with Part 3, Alcohol License Change of Location.

(b) Subsection (4)(a) does not apply to a new owner of an alcohol license if the commission determines that a bona fide exigent circumstance exists that warrants a change in location before operations begin.

(5) Notwithstanding Subsection (1), the commission may not issue a conditional license unless the requirements of Section 32B-5-205 are met, except that the time periods required by this section supersede the time period provided in Section 32B-5-205.

§ 32B-18-207 Change fees.

(1) The department shall charge the following fees for a change of ownership under this part:

(a) for a change of ownership of an alcohol license from an alcohol licensee to another person, the change fee equals the initial license fee amount specified in the relevant chapter or part for the type of alcohol license for which the change of ownership occurs; and

(b) for a change of ownership described in Section 32B-18-202, the change fee equals the renewal fee amount specified in the relevant chapter or part for the type of alcohol license for which the change of ownership occurs.

(2) The department shall deposit a fee collected under Subsection (1) into the Liquor Control Fund.

Part 3 Alcohol License Change of Location

§ 32B-18-301 Change of location provisions.

(1) Except as provided in this part, a person may not move an alcohol license from one location to another.

(2) Before an alcohol licensee moves the alcohol licensee's license from one location to another, the alcohol licensee shall submit to the department:

(a) an application for a change of location, in the form the department determines; and

(b) a change of location fee.

(3) Before the commission approves a change of location requested in accordance with this part, the commission shall:

(a) ensure that the new location meets the physical requirements for the type of license for which the change of location is requested, including any proximity requirement; and

(b) consider the locality within which the proposed licensed premises is located, including the relevant factors for the type of license for which the change of location is requested.

§ 32B-18-302 Operational requirements for change of location.

(1)

(a) Except as permitted under Subsections (1)(b) and (c), operations of an alcohol licensee shall begin within 30 days after the day on which the commission approves a change of location for the alcohol license.

(b) The department may grant an extension to the 30 days described in Subsection (1)(a), not to exceed the greater of:

(i) 30 days; or

(ii) the number of days until the next regularly scheduled commission meeting.

(c) After the department authorizes an extension described in Subsection (1)(b), the commission may grant one or more additional extensions, if:

(i) the alcohol licensee demonstrates to the commission that the alcohol licensee cannot begin operations because the alcohol licensee:

(A) is improving the licensed premises;

(B) has obtained a building permit for the improvements described in Subsection (1)(c)(i)(A), if the respective local authority requires a building permit for the improvements; and

(C) is working expeditiously to complete the improvements to the licensed premises; or

(ii) the commission determines that circumstances beyond the control of the alcohol licensee negate the licensee's ability to begin operations in a timely manner.

(2) An alcohol licensee is considered to have begun operations of the alcohol license if the alcohol licensee:

(a) has a licensed premises that is open for business;

(b)

(i) sells, offers for sale, or furnishes an alcoholic product to a patron on the licensed premises described in Subsection (1)(a);

(ii) manufactures an alcoholic product on the licensed premises described in Subsection (2)(a);

(iii) engages in an industrial or manufacturing pursuit containing alcohol on the licensed premises described in Subsection (2)(a); or

(iv) warehouses liquor on the licensed premises described in Subsection (2)(a); and

(c) has a valid business license.

(3) If an alcohol licensee fails to begin operations of the alcohol license within the time period required under Subsection (1), the following are automatically forfeited effective immediately:

(a) the alcohol license; and

(b) the change of location fee.

§ 32B-18-303 Change of location fees.

(1) The department shall charge a $300 fee for a change in location of an alcohol licensee's licensed premises.

(2) The department shall deposit a fee collected under Subsection (1) in the Liquor Control Fund.

Part 4 Prohibited Activities

§ 32B-18-401 License not to be pledged as security -- Prohibited changes, transfers, and moves.

(1) An alcohol licensee may not enter into any agreement under which the alcohol licensee pledges the alcohol license as security for a loan or as security for the fulfillment of any agreement.

(2) An alcohol licensee may not change, transfer, or move an alcohol license except as expressly permitted under this chapter.

§ 32B-18-402 Effect of change, transfer, or move in violation of this chapter.

(1) If an alcohol license is changed, transferred, or moved in violation of this chapter, the commission may:

(a) void the change, transfer, or move; and

(b) require the alcohol license to be forfeited.

(2) Subsection (1) is in addition to any other penalty under this title that is applicable to the person who violates this chapter.