Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 456 Second Substitute (2018GS)

Sponsor

Rep. Wilson, B.

Final action

Governor Signed 3/19/2018

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms and modifies defined terms;
• clarifies the appropriate measurement point for determining proximity to a community location;
• addresses the standard for demonstrating a previously approved variance for purposes of proximity to a community location;
• requires electronic age verification of certain individuals who are within 10 feet of a grandfathered bar structure;
• clarifies and amends labeling requirements for certain malted beverages;
• allows the Alcoholic Beverage Control Advisory Board to meet at the chair's discretion;
• modifies the days on which certain package agencies located at a manufacturing facility may operate;
• modifies the circumstances under which a retail licensee shall submit a responsible alcohol service plan to the department;
• addresses expungement of a record related to a violation of a provision of the Alcoholic Beverage Control Act;
• amends the requirements related to when a retail manager or an off-premise retail manager must complete a department training program;
• amends the requirements related to voting rights to obtain an equity license;
• modifies the circumstances under which a person may hold two retail licenses for the same premises or room;
• addresses the circumstances under which a hotel licensee or a resort licensee may have two sublicenses in the same room;

Every vote on this bill

Bill text

ALCOHOL AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Brad R. Wilson
Senate Sponsor: 
Jerry W. Stevenson
LONG TITLE
General Description:
This bill modifies provisions related to the regulation of alcoholic beverages.
Highlighted Provisions:
This bill:
▸ defines terms and modifies defined terms;
▸ clarifies the appropriate measurement point for determining proximity to a
community location;
▸ addresses the standard for demonstrating a previously approved variance for
purposes of proximity to a community location;
▸ requires electronic age verification of certain individuals who are within 10 feet of a
grandfathered bar structure;
▸ clarifies and amends labeling requirements for certain malted beverages;
▸ allows the Alcoholic Beverage Control Advisory Board to meet at the chair's
discretion;
▸ modifies the days on which certain package agencies located at a manufacturing
facility may operate;
▸ modifies the circumstances under which a retail licensee shall submit a responsible
alcohol service plan to the department;
▸ addresses expungement of a record related to a violation of a provision of the
Alcoholic Beverage Control Act;
▸ amends the requirements related to when a retail manager or an off-premise retail
manager must complete a department training program;
▸ amends the requirements related to voting rights to obtain an equity license;
▸ modifies the circumstances under which a person may hold two retail licenses for
the same premises or room;
▸ addresses the circumstances under which a hotel licensee or a resort licensee may
have two sublicenses in the same room;
▸ allows a patron to transport beer between two adjacent licensed premises located in
a sports center with a minimum seating capacity;
▸ provides that a restaurant licensee may employ a minor who is at least 18 years of
age to bus tables;
▸ provides an exemption from certain dispensing area requirements for small
restaurant licensees;
▸ repeals the requirement for restaurant licensees to display a sign stating the
restaurant's license type;
▸ allows a dining club licensee to convert to a full-service restaurant license or a bar
license before July 1, 2018;
▸ increases the number of airport lounge licenses the commission may issue;
▸ provides that the Department of Alcoholic Beverage Control shall study issues
related to the use of banquet catering contracts and report to the Business and Labor
Interim Committee;
▸ modifies the off-premise beer retailer state license fee for a person who operates an
off-premise beer retailer on July 1, 2018;
▸ extends the time for a business entity to transfer a retail license following a change
in ownership;
▸ modifies the operational requirements for a hotel license and for a sublicense related
to calculating the percentage of gross receipts from the sale of food;
▸ addresses the grades in which an LEA may offer the Underage Drinking Prevention
Program to students; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
32B-1-102
, as last amended by Laws of Utah 2017, Chapter 455
32B-1-202
, as last amended by Laws of Utah 2017, Chapters 455, 471 and last
amended by Coordination Clause, Laws of Utah 2017, Chapter 471
32B-1-407
, as last amended by Laws of Utah 2017, Chapter 455
32B-1-606
, as last amended by Laws of Utah 2017, Chapter 455
32B-2-210
, as last amended by Laws of Utah 2017, Chapter 455
32B-2-605
, as last amended by Laws of Utah 2016, Chapter 80
32B-3-102
, as last amended by Laws of Utah 2017, Chapter 455
32B-3-205
, as last amended by Laws of Utah 2017, Chapter 455
32B-4-415
, as last amended by Laws of Utah 2017, Chapter 455
32B-5-202
, as last amended by Laws of Utah 2017, Chapter 455
32B-5-207
, as enacted by Laws of Utah 2017, Chapter 455
32B-5-307
, as last amended by Laws of Utah 2017, Chapter 455
32B-5-308
, as last amended by Laws of Utah 2011, Chapter 307
32B-5-405
, as enacted by Laws of Utah 2017, Chapter 455
32B-5-406
, as enacted by Laws of Utah 2017, Chapter 455
32B-6-202
, as last amended by Laws of Utah 2017, Chapter 455
32B-6-205
, as last amended by Laws of Utah 2017, Chapter 455
32B-6-205.2
, as enacted by Laws of Utah 2017, Chapter 455
32B-6-302
, as last amended by Laws of Utah 2017, Chapter 455
32B-6-305
, as last amended by Laws of Utah 2017, Chapter 455
32B-6-305.2
, as enacted by Laws of Utah 2017, Chapter 455
32B-6-403
, as last amended by Laws of Utah 2017, Chapter 455
32B-6-404
, as last amended by Laws of Utah 2017, Chapter 455
32B-6-404.1
, as enacted by Laws of Utah 2017, Chapter 455
32B-6-406
, as last amended by Laws of Utah 2017, Chapter 455
32B-6-409
, as enacted by Laws of Utah 2011, Chapter 334
32B-6-503
, as last amended by Laws of Utah 2011, Chapter 334
32B-6-605
, as last amended by Laws of Utah 2011, Chapters 307 and 334
32B-6-902
, as last amended by Laws of Utah 2017, Chapter 455
32B-6-905
, as last amended by Laws of Utah 2017, Chapter 455
32B-6-905.1
, as enacted by Laws of Utah 2017, Chapter 455
32B-7-202
, as last amended by Laws of Utah 2017, Chapter 455
32B-7-401
, as enacted by Laws of Utah 2017, Chapter 455
32B-8a-202
, as last amended by Laws of Utah 2016, Chapter 82
32B-8a-203
, as last amended by Laws of Utah 2016, Chapter 82
32B-8b-102
, as last amended by Laws of Utah 2017, Chapter 455
32B-8b-301
, as enacted by Laws of Utah 2016, Chapter 80
32B-8b-302
, as enacted by Laws of Utah 2016, Chapter 80
53F-9-304
, as renumbered and amended by Laws of Utah 2018, Chapter 2
53G-10-406
, as renumbered and amended by Laws of Utah 2018, Chapter 3
62A-15-401
, as last amended by Laws of Utah 2017, Chapter 455
63I-2-232
, as last amended by Laws of Utah 2017, Chapter 455
ENACTS:
32B-6-205.4
, Utah Code Annotated 1953
32B-6-305.4
, Utah Code Annotated 1953
32B-6-605.1
, Utah Code Annotated 1953
32B-6-905.3
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
32B-1-102
 is amended to read:
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 with a United States Customs office on the
premises of the international 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) 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 5, Part 4, Alcohol Training and Education Act; and
(b) described in Section 
62A-15-401
.
(6) "Banquet" means an event:
(a) that is held at one or more designated locations approved by the commission in or
on the premises of a:
(i) hotel;
(ii) resort facility;
(iii) sports center; or
(iv) convention center;
(b) for which there is a contract:
(i) between a person operating a facility listed in Subsection (6)(a) and another person;
and
(ii) under which the person operating a facility listed in Subsection (6)(a) is required to
provide an alcoholic product at the event; and
(c) at which food and alcoholic products may be sold, offered for sale, or furnished.
(7) "Bar structure" means a surface or structure on a licensed premises if on or at any
place of the surface or structure an alcoholic product is:
(a) stored; or
(b) dispensed.
(8) (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.
(9) " Bar license" means a license issued in accordance with Chapter 5, Retail License
Act, and Chapter 6, Part 4, Bar Establishment License.
(10) (a) Subject to Subsection (10)(d), "beer" means a product that:
(i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
volume or 3.2% by weight; and
(ii) is obtained by fermentation, infusion, or decoction of malted grain.
(b) "Beer" may or may not contain hops or other vegetable products.
(c) "Beer" includes a product that:
(i) contains alcohol in the percentages described in Subsection (10)(a); and
(ii) is referred to as:
(A) beer;
(B) ale;
(C) porter;
(D) stout;
(E) lager; or
(F) a malt or malted beverage.
(d) "Beer" does not include a flavored malt beverage.
(11) "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.
(12) "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.
(13) "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.
(14) "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.
(15) "Brewer" means a person engaged in manufacturing:
(a) beer;
(b) heavy beer; or
(c) a flavored malt beverage.
(16) "Brewery manufacturing license" means a license issued in accordance with
Chapter 11, Part 5, Brewery Manufacturing License.
(17) "Certificate of approval" means a certificate of approval obtained from the
department under Section 
32B-11-201
.
(18) "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.
(19) "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.
(20) "Commission" means the Alcoholic Beverage Control Commission created in
Section 
32B-2-201
.
(21) "Commissioner" means a member of the commission.
(22) "Community location" means:
(a) a public or private school;
(b) a church;
(c) a public library;
(d) a public playground; or
(e) a public park.
(23) "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.
(24) "Container" means a receptacle that contains an alcoholic product, including:
(a) a bottle;
(b) a vessel; or
(c) a similar item.
(25) "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.
(26) (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.
(27) "Department" means the Department of Alcoholic Beverage Control created in
Section 
32B-2-203
.
(28) "Department compliance officer" means an individual who is:
(a) an auditor or inspector; and
(b) employed by the department.
(29) "Department sample" means liquor that is placed in the possession of the
department for testing, analysis, and sampling.
(30) "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.
(31) "Director," unless the context requires otherwise, means the director of the
department.
(32) "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.
(33) (a) Subject to Subsection (33)(b), "dispense" means:
(i) drawing [
of
] an alcoholic product[
:
]
; and
[
(A) from an area where it is stored; or
]
[
(B) as provided in Subsection 
32B-6-205
(12)(b)(ii), 
32B-6-305
(12)(b)(ii),
32B-6-805
(15)(b)(ii), or 
32B-6-905
(12)(b)(ii); and
]
(ii) using the alcoholic product [
described in Subsection (33)(a)(i) on the premises of
the licensed premises
] 
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 (33) applies only to:
(i) a full-service restaurant license;
(ii) a limited-service restaurant license;
(iii) a reception center license; and
(iv) a beer-only restaurant license.
(34) "Dispensing structure" means a surface or structure on a licensed premises:
(a) where an alcoholic product is [
stored or
] dispensed; or
(b) from which an alcoholic product is served.
(35) "Distillery manufacturing license" means a license issued in accordance with
Chapter 11, Part 4, Distillery Manufacturing License.
(36) "Distressed merchandise" means an alcoholic product in the possession of the
department that is saleable, but for some reason is unappealing to the public.
(37) "Educational facility" includes:
(a) a nursery school;
(b) an infant day care center; and
(c) a trade and technical school.
(38) "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.
(39) "Event permit" means:
(a) a single event permit; or
(b) a temporary beer event permit.
(40) "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.
(41) (a) "Flavored malt beverage" means a beverage:
(i) that contains at least .5% alcohol by volume;
(ii) that 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 as described in 27
C.F.R. Sec. 25.55;
(iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
extract; and
(iv) (A) for which the producer is required to file a formula for approval with the
federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
(B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
(b) "Flavored malt beverage" is considered liquor for purposes of this title.
(42) "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.
(43) "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.
(44) (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.
(45) "Guest" means an individual who meets the requirements of Subsection
32B-6-407
(9).
(46) "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, Physician Assistant Act.
(47) (a) "Heavy beer" means a product that:
(i) contains more than 4% alcohol by volume; and
(ii) is obtained by fermentation, infusion, or decoction of malted grain.
(b) "Heavy beer" is considered liquor for the purposes of this title.
(48) "Hotel" is as defined by the commission by rule.
(49) "Hotel license" means a license issued in accordance with Chapter 5, Retail
License Act, and Chapter 8b, Hotel License Act.
(50) "Identification card" means an identification card issued under Title 53, Chapter 3,
Part 8, Identification Card Act.
(51) "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.
(52) "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.
(53) "Interdicted person" means a person to whom the sale, offer for sale, or furnishing
of an alcoholic product is prohibited by:
(a) law; or
(b) court order.
(54) "Intoxicated" means that a person:
(a) is significantly impaired as to the person's mental or physical functions as a result of
the use of:
(i) an alcoholic product;
(ii) a controlled substance;
(iii) a substance having the property of releasing toxic vapors; or
(iv) a combination of Subsections (54)(a)(i) through (iii); and
(b) exhibits plain and easily observed outward manifestations of behavior or physical
signs produced by the overconsumption of an alcoholic product.
(55) "Investigator" means an individual who is:
(a) a department compliance officer; or
(b) a nondepartment enforcement officer.
(56) "Invitee" means the same as that term is defined in Section 
32B-8-102
.
(57) "License" means:
(a) a retail license;
(b) a license issued in accordance with Chapter 11, Manufacturing and Related
Licenses Act;
(c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
or
(d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act.
(58) "Licensee" means a person who holds a license.
(59) "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.
(60) "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.
(61) (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.
(62) "Liquor Control Fund" means the enterprise fund created by Section 
32B-2-301
.
(63) "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.
(64) "Local authority" means:
(a) for premises that are located in an unincorporated area of a county, the governing
body of a county; or
(b) for premises that are located in an incorporated city, town, or metro township, the
governing body of the city, town, or metro township.
(65) "Lounge or bar area" is as defined by rule made by the commission.
(66) "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.
(67) "Member" means an individual who, after paying regular dues, has full privileges
in an equity licensee or fraternal licensee.
(68) (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.
(69) "Minor" means an individual under the age of 21 years.
(70) "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, town, or metro township; and
(b) has a responsibility to enforce one or more provisions of this title.
(71) "Nondepartment enforcement officer" means an individual who is:
(a) a peace officer, examiner, or investigator; and
(b) employed by a nondepartment enforcement agency.
(72) (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.
(73) "Off-premise beer retailer state license" means a state license issued in accordance
with Chapter 7, Part 4, Off-Premise Beer Retailer State License.
(74) "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.
(75) "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).
(76) "Opaque" means impenetrable to sight.
(77) "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.
(78) "Package agent" means a person who holds a package agency.
(79) "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;
(g) a public customer under a resort spa sublicense, as defined in Section 
32B-8-102
;
or
(h) an invitee.
(80) "Permittee" means a person issued a permit under:
(a) Chapter 9, Event Permit Act; or
(b) Chapter 10, Special Use Permit Act.
(81) "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 (81)(a) through (f); or
(ii) a package agent.
(82) "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.
(83) "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.
(84) (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.
(85) (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:
(I) under Title 53, Chapter 3, Uniform Driver License Act; or
(II) in accordance with the laws of the state in which it is issued;
(iv) a military identification card that:
(A) includes date of birth; and
(B) has a picture affixed; or
(v) a valid passport.
(b) "Proof of age" does not include a driving privilege card issued in accordance with
Section 
53-3-207
.
(86) (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.
(87) "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.
(88) "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
(88)(a) to a third party for the third party's event.
(89) "Reception center license" means a license issued in accordance with Chapter 5,
Retail License Act, and Chapter 6, Part 8, Reception Center License.
(90) (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.
(91) "Residence" means a person's principal place of abode within Utah.
(92) "Resident," in relation to a resort, means the same as that term is defined in
Section 
32B-8-102
.
(93) "Resort" means the same as that term is defined in Section 
32B-8-102
.
(94) "Resort facility" is as defined by the commission by rule.
(95) "Resort license" means a license issued in accordance with Chapter 5, Retail
License Act, and Chapter 8, Resort License Act.
(96) "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.
(97) "Restaurant" means a business location:
(a) at which a variety of foods are prepared;
(b) at which complete meals are served [
to the general public
]; and
(c) that is engaged primarily in serving meals [
to the general public
].
(98) "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 resort license; or
(l) a hotel license.
(99) "Room service" means furnishing an alcoholic product to a person in a guest room
of a:
(a) hotel; or
(b) resort facility.
(100) (a) "School" means a building used primarily for the general education of minors.
(b) "School" does not include an educational facility.
(101) "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.
(102) "Serve" means to place an alcoholic product before an individual.
(103) "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 (103)(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.
(104) "Single event permit" means a permit issued in accordance with Chapter 9, Part
3, Single Event Permit.
(105) "Small brewer" means a brewer who manufactures less than 60,000 barrels of
beer, heavy beer, and flavored malt beverages per year.
(106) "Special use permit" means a permit issued in accordance with Chapter 10,
Special Use Permit Act.
(107) (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. Sec. 5.11 through 5.23.
(108) "Sports center" is as defined by the commission by rule.
(109) (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.
(110) "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.
(111) "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.
(112) (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.
(113) (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 [
from which a
person draws to prepare an alcoholic product to be furnished to a patron, except as provided in
Subsection 
32B-6-205
(12)(b)(ii), 
32B-6-305
(12)(b)(ii), 
32B-6-805
(15)(b)(ii), or
32B-6-905
(12)(b)(ii)
].
(114) "Sublicense" means the same as that term is defined in Section 
32B-8-102
 or
32B-8b-102
.
(115) "Supplier" means a person who sells an alcoholic product to the department.
(116) "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.
(117) "Temporary beer event permit" means a permit issued in accordance with
Chapter 9, Part 4, Temporary Beer Event Permit.
(118) "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.
(119) "Translucent" means a substance that allows light to pass through, but does not
allow an object or person to be seen through the substance.
(120) "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.
(121) (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" is considered liquor for purposes of this title, except as otherwise provided
in this title.
(122) "Winery manufacturing license" means a license issued in accordance with
Chapter 11, Part 3, Winery Manufacturing License.
Section 2. Section 
32B-1-202
 is amended to read:
32B-1-202.
Proximity to community location.
(1) As used in this section:
(a) (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.
(b) "Restaurant" means:
(i) a full-service restaurant licensee;
(ii) a limited-service restaurant licensee; or
(iii) a beer-only restaurant licensee. 
(2) (a) 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) 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:
[
(a)
] 
(i)
 the outlet or restaurant changes ownership;
[
(b)
] 
(ii)
 the property on which the outlet or restaurant is located changes ownership; or
[
(c)
] 
(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) (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 (4) apply regardless of when the outlet's or
restaurant's license is issued.
(5) 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.
Section 3. Section 
32B-1-407
 is amended to read:
32B-1-407.
Verification of proof of age by applicable licensees.
(1) As used in this section, "applicable licensee" means:
(a) a dining club;
(b) a bar;
(c) a tavern;
(d) a full-service restaurant;
(e) a limited-service restaurant; or
(f) a beer-only restaurant. 
(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) An authorized person is required to verify proof of age under this section before an
individual who appears to be 35 years of age or younger:
(a) gains admittance to the premises of a bar licensee or tavern;
(b) procures an alcoholic product on the premises of a dining club licensee; [
or
]
(c) procures an alcoholic product in a dispensing area in the premises of a full-service
restaurant licensee, a limited-service restaurant licensee, or a beer-only restaurant licensee[
.
]
; or
(d) on or after July 1, 2018, procures an alcoholic product within 10 feet of a
grandfathered bar structure.
(4) To comply with Subsection (3), an authorized person shall:
(a) request 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) The commission shall establish by rule an electronic verification program that
includes the following:
(a) 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:
(i) the name;
(ii) the age;
(iii) the number assigned to the individual's proof of age by the issuing authority;
(iv) the birth date;
(v) the gender; and
(vi) the status and expiration date of the individual's proof of age; and
(b) the security measures that shall be used by an applicable licensee to ensure that
information obtained under this section is:
(i) used by the applicable licensee only for purposes of verifying proof of age in
accordance with this section; and
(ii) retained by the applicable licensee for seven days after the day on which the
applicable licensee obtains the information.
(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.
Section 4. Section 
32B-1-606
 is amended to read:
32B-1-606.
Special procedure 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 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:
(i) the statement:
(A) "alcoholic beverage"; or
(B) "contains alcohol"; and
(ii) the alcohol content of the [
flavored malt
] 
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 front of
] 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, the statement:
(i) "alcoholic beverage"; or
(ii) "contains alcohol";
(c) a statement required by Subsection (2)(a) or (b) appears in a format required by rule
made by the commission; and
(d) a statement of alcohol content required by 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 by rule made by the commission.
(3) The department may reject a label or packaging that appears designed to obscure
the information required by Subsection (2).
(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.
Section 5. Section 
32B-2-210
 is amended to read:
32B-2-210.
Alcoholic Beverage Control Advisory Board.
(1) There is created within the department an advisory board known as the "Alcoholic
Beverage Control Advisory Board."
(2) The advisory board shall consist of eight voting members and one nonvoting
member as follows:
(a) four voting members appointed by the commission:
(i) one of whom represents the retail alcohol industry;
(ii) one of whom represents the wholesale alcohol industry;
(iii) one of whom represents the alcohol manufacturing industry; and
(iv) one of whom represents the restaurant industry;
(b) two voting members appointed by the commission, each of whom represents an
organization that addresses alcohol or drug abuse prevention, alcohol or drug related
enforcement, or alcohol or drug related education;
(c) the director of the Division of Substance Abuse and Mental Health or the director's
designee who serves as a voting member; 
(d) the chair of the Utah Substance Use and Mental Health Advisory Council, or the
chair's designee, who serves as a voting member; and
(e) the chair of the commission or the chair's designee from the members of the
commission, who serves as a nonvoting member.
(3) (a) Except as required by Subsection (3)(b), as terms of current voting members of
the advisory board expire, the commission shall appoint each new member or reappointed
member to a four-year term beginning July 1 and ending June 30.
(b) Notwithstanding the requirements of Subsection (3)(a), the commission shall, at the
time of appointment or reappointment, adjust the length of terms to ensure that the terms of
voting advisory board members are staggered so that approximately half of the advisory board
is appointed every two years.
(c) No two members of the board may be employed by the same company or nonprofit
organization.
(4) (a) When a vacancy occurs in the membership for any reason, the commission shall
appoint a replacement for the unexpired term.
(b) The commission shall terminate the term of a voting advisory board member who
ceases to be representative as designated by the member's original appointment.
(5) The advisory board shall meet [
no more than quarterly
] as called by the chair for
the purpose of advising the commission and the department, with discussion limited to
administrative rules made under this title.
(6) The chair of the commission or the chair's designee shall serve as the chair of the
advisory board and call the necessary meetings.
(7) (a) Five members of the board constitute a quorum of the board.
(b) An action of the majority when a quorum is present is the action of the board.
(8) The department shall provide staff support to the advisory board.
(9) A member may not receive compensation or benefits for the member'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
.
Section 6. Section 
32B-2-605
 is amended to read:
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 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 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, liquor may be provided by the department 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 package agency may not sell, offer for sale, or furnish liquor except at a price
fixed by the commission.
(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
closing; 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 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 its 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.
(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;
(ii) the manufacturing facility licensed in accordance with Chapter 11, Manufacturing
and Related Licenses Act, holds:
(A) a full-service restaurant license;
(B) a limited-service restaurant license;
(C) a beer-only restaurant license; [
or
]
(D) 
a
 dining club license; 
or
(E) a bar license;
(iii) the restaurant [
or
]
,
 dining club
, or bar
 is located at the manufacturing facility;
(iv) the restaurant [
or
]
,
 dining club
, or bar
 sells an alcoholic product produced at the
manufacturing facility;
(v) the manufacturing facility:
(A) owns the restaurant [
or
]
,
 dining club
, or bar
; or
(B) operates the restaurant [
or
]
,
 dining club
, or bar
;
(vi) the package agency only sells an alcoholic product produced at the manufacturing
facility; and
(vii) the package agency's days and hours of sale are the same as the days and hours of
sale at the restaurant [
or
]
,
 dining club
, or bar
.
(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 of age 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 the age of 21 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;
(B) staff of the package agency not leaving the liquor outside a guest room for retrieval
by a guest; 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) On or after October 1, 2011, a package agency may not sell, offer for sale, or
furnish heavy beer in a sealed container that exceeds two liters.
(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.
Section 7. Section 
32B-3-102
 is amended to read:
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.
Section 8. Section 
32B-3-205
 is amended to read:
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 commission 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 Control 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.
Section 9. Section 
32B-4-415
 is amended to read:
32B-4-415.
Unlawful bringing onto premises for consumption.
(1) Except as provided in Subsection (4) 
and Subsection 
32B-5-307
(4)
, 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 Subsection 
32B-5-307
(4)
, 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 
63C-9-201
; 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 resort 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 or boundary of a hotel in an area that is open to
the public; or
(b) except as provided in Subsection (4), a sublicense premises.
Section 10. Section 
32B-5-202
 is amended to read:
32B-5-202.
Renewal requirements.
(1) A retail license expires each year on the day specified in the relevant part under
Chapter 6, Specific Retail License Act, for that type of retail license.
(2) 
(a)
 To renew a person's retail license, a retail licensee shall, by no later than the day
specified in the relevant part under Chapter 6, Specific Retail License Act, for the type of retail
license that is being renewed, submit:
[
(a)
] 
(i)
 a completed renewal application [
that includes a responsible alcohol service
plan to the department
] in a form prescribed by the department; and
[
(b)
] 
(ii)
 a renewal fee in the amount specified in the relevant part under Chapter 6,
Specific Retail License Act, for the type of retail license that is being renewed.
(b) A retail licensee shall submit a responsible alcohol service plan as part of the retail
licensee's renewal application if, since the retail licensee's most recent application or renewal,
the retail licensee:
(i) made substantial changes to the retail licensee's responsible alcohol service plan; or
(ii) violated a provision of this chapter.
(c) 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 date the existing retail license expires.
Section 11. Section 
32B-5-207
 is amended to read:
32B-5-207.
Multiple retail licenses on same premises.
(1) As used in this section, "sublicense premises" means the same as that term is
defined in Sections 
32B-8-102
 and 
32B-8b-102
.
[
(1) (a) (i)
] 
(2) (a)
 The commission may not issue and one or more licensees may not
hold more than one type of retail license for the same [
room
] 
premises
.
[
(ii) The commission may define "room" by rule made in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act.
]
(b) Notwithstanding Subsection [
(1)
] 
(2)
(a), the commission may issue and one or
more licensees may hold more than one type of retail license for the same [
room
] 
premises
 if:
(i) the applicant or licensee satisfies the requirements for each retail license;
(ii) the types of retail 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; and
(C) an on-premise banquet license or a reception center license; and
(iii) the retail licenses do not operate at the same time on the same day.
[
(2)
] 
(3)
 When one or more licensees hold more than one type of retail license for the
same [
room
] 
premises
 under Subsection [
(1)
] 
(2)
(b), 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; or
(iii) a banquet or a reception center.
(4) (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 (4)(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.
[
(3)
] 
(5)
 (a) If, on May 9, 2017, one or more licensees hold more than one type of retail
license [
for the same room
] in violation of Subsection [
(1)
] 
(2) or (4)
, the one or more licensees
may operate under the different types of retail licenses through June 30, 2018.
(b) A licensee may not operate in violation of Subsection [
(1)
] 
(2) or (4)
 on or after
July 1, 2018.
(c) Before July 1, 2018, each licensee described in Subsection [
(3)
] 
(5)
(a) shall notify
the commission of each retail license that the licensee will surrender effective July 1, 2018, to
comply with the provisions of Subsection [
(1)
] 
(2) or (4)
.
(d) The commission shall establish by rule, made in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act, a procedure by which a licensee surrenders a
retail license under this Subsection [
(3)
] 
(5)
.
(6) (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 sublicense premises are clearly delineated by one or more permanent
physical structures, such as a wall or other architectural feature, that separate the sublicense
premises.
(b) A patron may not transport an alcoholic beverage between two sublicense premises
located in the same room in accordance with Subsection (6)(a).
(c) Notwithstanding any provision to the contrary, a minor may momentarily pass
through a sublicense 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.
Section 12. Section 
32B-5-307
 is amended to read:
32B-5-307.
Bringing alcoholic product onto or removing alcoholic product from
premises.
(1) Except as provided in Subsection (3):
(a) A person 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.
(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 [
Subsection (3)
] 
Subsections (3), (4), and 
32B-4-415
(5)
:
(a) a person may not carry from a 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) Except as provided in Subsection (3)(d) or Subsection 
32B-4-415
(5):
]
(c)
 (i) a person may not carry from a 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 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) A patron may transport beer between the premises of an on-premise banquet license
and an on-premise beer retailer license that is not a tavern, and consume the beer on either
licensed premises, if the licensed premises are:
(a) immediately adjacent to one another; and
(b) located in a sports center that has a seating capacity of at least 6,500.
Section 13. Section 
32B-5-308
 is amended to read:
32B-5-308.
Requirements on staff or others on premises -- Employing a minor.
(1) Staff of a retail licensee, while on duty, may not:
(a) consume an alcoholic product; or
(b) be intoxicated.
(2) (a) A retail licensee may not employ a minor to sell, offer for sale, furnish, or
dispense an alcoholic product.
(b) Notwithstanding Subsection (2)(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 of age to enter the sale at a cash register or other sales recording device.
(3) A full-service restaurant licensee, limited-service restaurant licensee, or beer-only
restaurant licensee may employ a minor who is at least 18 years of age to bus tables, including
containers that contain an alcoholic product.
Section 14. Section 
32B-5-405
 is amended to read:
32B-5-405.
Department training programs.
(1) No later than January 1, 2018, 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) No later than January 1, 2019, 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) 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.
(4) (a) Except as provided in Subsection (5), each retail manager shall[
: (i)
] complete
the training described in Subsection (1)(a) no later than the earlier of:
[
(A)
] 
(i)
days after the day on which the retail manager is hired; or
[
(B)
] 
(ii)
 before the day on which the retail licensee obtains a retail license under this
chapter[
; and
]
.
[
(ii) retake the training program described in Subsection (1)(a) once every three years.
]
(b) Except as provided in Subsection (5), each off-premise retail manager shall[
: (i)
] 
complete the training described in Subsection (2) no later than the earlier of:
[
(A)
] 
(i)
days after the day on which the off-premise retail manager is hired; or
[
(B)
] 
(ii)
 before the day on which the off-premise beer retailer obtains an off-premise
beer retailer state license[
; and
]
.
[
(ii) retake the training program described in Subsection (2) once every three years.
]
(c) (i) If the commission finds that [
an individual employed by
] 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 [
while employed by the
same retail licensee
] 
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 individual employed by
] 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 [
while employed by the
same off-premise beer retailer
] 
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).
(5) 
(a)
 For a person who holds a retail license on January 1, 2018, each retail manager
shall complete the training program described in Subsection (1)(a) for the first time as a
condition of renewing the licensee's retail license in 2018.
(b) For a person who holds an off-premise beer retailer state license on January 1,
2019, each off-premise retail manager shall complete the training program described in
Subsection (1)(b) for the first time as a condition of renewing the licensee's off-premise beer
retailer state license in 2019.
(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, metro township, 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.
Section 15. Section 
32B-5-406
 is amended to read:
32B-5-406.
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 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; 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 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 was last found to have
violated a provision of this title related to the sale of an alcoholic product to a minor
]
individual's last violation related to the sale of an alcoholic product to a minor was adjudicated
. 
Section 16. Section 
32B-6-202
 is amended to read:
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 [
any area
where alcoholic product is dispensed to
] the dining area and any waiting area[
, measured from
the point of the area where alcoholic product is dispensed that is closest to the dining area or
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) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
full-service restaurant licensee that:
(i) as of May 11, 2009, has:
(A) patron seating at the bar structure;
(B) a partition at one or more locations on the bar structure that is along:
(I) the width of the bar structure; or
(II) the length of the bar structure; and
(C) facilities for the dispensing or storage of an alcoholic product:
(I) on the portion of the bar structure that is separated by the partition described in
Subsection (3)(a)(i)(B); or
(II) if the partition as described in Subsection (3)(a)(i)(B)(II) is adjacent to the bar
structure in a manner visible to a patron sitting at the bar structure;
(ii) is not operational as of May 12, 2009, if:
(A) a person applying for a full-service restaurant license:
(I) has as of May 12, 2009, a building permit to construct the restaurant;
(II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
defined by rule made by the commission; and
(III) is issued the full-service restaurant license by no later than December 31, 2009;
and
(B) once constructed, the licensed premises has a bar structure described in Subsection
(3)(a)(i);
(iii) as of May 12, 2009, has no patron seating at the bar structure; or
(iv) is not operational as of May 12, 2009, if:
(A) a person applying for a full-service restaurant license:
(I) has as of May 12, 2009, a building permit to construct the restaurant;
(II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
defined by rule made by the commission; and
(III) is issued a full-service restaurant license by no later than December 31, 2009; and
(B) once constructed, the licensed premises has a bar structure with no patron seating.
(b) "Grandfathered bar structure" does not include a grandfathered bar structure
described in Subsection (3)(a) on or after the day on which a restaurant remodels the
grandfathered bar structure, as defined by rule made by the commission.
(c) Subject to Subsection (3)(b), a grandfathered bar structure remains a grandfathered
bar structure notwithstanding whether a restaurant undergoes a change of ownership.
(4) "Seating grandfathered bar structure" means:
(a) a grandfathered bar structure described in Subsection (3)(a)(i) or (ii); or
(b) a bar structure grandfathered under Section 
32B-6-409
.
(5) "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.
[
(5)
] 
(6)
 "Waiting area" includes a lobby. 
Section 17. Section 
32B-6-205
 is amended to read:
32B-6-205.
Specific operational requirements for a full-service restaurant license
-- Before 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 as provided in 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) In addition to complying with Subsection 
32B-5-301
(3), a full-service restaurant
licensee shall[
: (a)
] display in a prominent place in the restaurant a list of the types and brand
names of liquor being furnished through the full-service restaurant licensee's calibrated metered
dispensing system[
; and
]
.
[
(b) display in a conspicuous place at the entrance to the licensed premises a sign
approved by the commission that:
]
[
(i) measures at least 8-1/2 inches long and 11 inches wide; and
]
[
(ii) clearly states that the full-service restaurant licensee is a restaurant and not a bar.
]
(3) In addition to complying with Section 
32B-5-303
, a full-service restaurant licensee
shall store an alcoholic product in a storage area described in Subsection (12)(a).
(4) (a) An individual who serves an alcoholic product in a full-service restaurant
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) A person's willingness to serve an alcoholic product may not be made a condition
of employment as a server with a full-service restaurant licensee.
(6) (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.
(7) A full-service restaurant licensee shall maintain at least 70% of its total restaurant
business from the sale of food, which does not include:
(a) mix for an alcoholic product; or
(b) a service charge.
(8) (a) A full-service restaurant licensee may not sell, offer for sale, or furnish an
alcoholic product except after the full-service restaurant licensee confirms that the patron has
the intent to order food prepared, sold, and furnished at the licensed premises.
(b) A full-service restaurant licensee shall maintain on the licensed premises adequate
culinary facilities for food preparation and dining accommodations.
(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 patron may consume an alcoholic product only :
(a) at:
(i) the patron's table;
(ii) a counter; or
(iii) a seating grandfathered bar structure ; and
(b) where food is served.
(11) (a) A full-service restaurant 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 that is not a seating grandfathered bar structure.
(b) At a seating grandfathered bar structure a patron who is 21 years of age or older
may:
(i) sit;
(ii) be furnished an alcoholic product; and
(iii) consume an alcoholic product.
(c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
full-service restaurant licensee may not permit a minor to, and a minor may not:
(i) sit; or
(ii) consume food or beverages.
(d) (i) A minor may be at a seating grandfathered bar structure if the minor is
employed by a full-service restaurant licensee:
(A) as provided in Subsection 
32B-5-308
(2); or
(B) to perform maintenance and cleaning services during an hour when the full-service
restaurant licensee is not open for business.
(ii) A minor may momentarily pass by a seating grandfathered bar structure without
remaining or sitting at the bar structure en route to an area of a full-service restaurant licensee's
premises in which the minor is permitted to be.
(12) 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 grandfathered bar structure;
(ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
12, 2009; or
(iii) 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 storage or dispensing of
an alcoholic product are:
(I) not readily visible to a patron; and
(II) not accessible by a patron; and
(B) apart from an area used:
(I) for dining;
(II) for staging; or
(III) as a lobby or waiting area;
(b) the full-service restaurant licensee uses an alcoholic product that is:
(i) stored in an area described in Subsection (12)(a); or
(ii) in an area not described in Subsection (12)(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 (12)(a) before
it is opened; and (C) once opened, the container is stored in an area described in Subsection
(12)(a); and
(c) any instrument or equipment used to dispense alcoholic product is located in an
area described in Subsection (12)(a). 
(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) Beginning on July 1, 2018, a minor may not sit, remain, or consume food or
beverages within 10 feet of a grandfathered bar structure, unless:
(a) seating within 10 feet of the grandfathered bar structure is the only seating available
in the licensed premises; and
(b) the minor is accompanied by an individual who is 21 years of age or older.
(15) Except as provided in Subsection 
32B-6-205.2
[
(18)
]
(16)
 and Section
32B-6-205.3
, the provisions of this section apply before July 1, 2018. 
Section 18. Section 
32B-6-205.2
 is amended to read:
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) In addition to complying with Subsection 
32B-5-301
(3), a full-service restaurant
licensee shall display in a conspicuous place at the entrance to the licensed premises a sign
approved by the commission that:
]
[
(a) measures at least 8-1/2 inches long and 11 inches wide; and
]
[
(b) clearly states that the full-service restaurant licensee is a restaurant and not a bar.
]
[
(3) In addition to complying with Section 
32B-5-303
, a full-service restaurant licensee
shall store an alcoholic product in a storage area described in Subsection (13) (a).
]
[
(4)
] 
(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 [
(4)
] 
(2)
 shall state the type and amount
of each alcoholic product ordered or consumed.
[
(5)
] 
(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.
[
(6)
] 
(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. 
[
(7)
] 
(5)
 A full-service restaurant licensee shall maintain at least 70% of the
full-service restaurant licensee's total restaurant business from the sale of food, which does not
include:
(a) mix for an alcoholic product; or
(b) a service charge.
[
(8)
] 
(6)
 (a) A full-service restaurant licensee may not [
sell, offer for sale, or
] furnish
an alcoholic product except after:
(i) the patron to whom the full-service restaurant licensee [
sells, offers for sale, or
]
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 [
(8)
] 
(6)
(b), consume the food at the same
location where the patron is seated and [
sold, offered for sale, or
] 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) If the patron does not finish the patron's alcoholic product before moving to a seat
in the dining area, an employee of the full-service restaurant licensee who is qualified to sell
and serve an alcoholic product under Section 
32B-5-306
 shall transport any unfinished portion
of the patron's alcoholic product to the patron's seat in the dining area.
(iii) For purposes of Subsection [
(8)
] 
(6)
(b)(i) a single portion of wine is 5 ounces or
less.
(c) A full-service restaurant licensee shall maintain on the licensed premises adequate
culinary facilities for food preparation and dining accommodations.
[
(9)
] 
(7)
 A patron may consume an alcoholic product 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.
[
(10)
] 
(8)
 (a) Subject to the other provisions of this Subsection [
(10)
] 
(8)
, 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 [
(10)
] 
(8)
(a).
[
(11)
] 
(9)
 In accordance with the provisions of this section, an individual who is at
least 21 years of age may consume food and beverages in a dispensing area.
[
(12)
] 
(10)
 (a) Except as provided in Subsection [
(12)
] 
(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 employed by the full-service
restaurant licensee:
(A) in accordance with Subsection 
32B-5-308
(2); or
(B) to perform maintenance and cleaning services 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.
[
(13)
] 
(11)
 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 [
storage or
] 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 lobby or 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) the full-service restaurant licensee uses an alcoholic product that is stored in an
area described in Subsection (13) (a) or in accordance with Section 
32B-5-303
; and
]
[
(c)
] 
(b)
 any instrument or equipment used to dispense alcoholic product is located in
an area described in Subsection [
(13)
] 
(11)
(a).
[
(14)
] 
(12)
 (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.
[
(15)
] 
(13)
 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.
[
(16)
] 
(14)
 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.
[
(17)
] 
(15)
 (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 Section 
32B-5-302
; 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 each calendar year.
[
(18)
] 
(16)
 (a) In accordance with Section 
32B-6-205.3
, a full-service restaurant
licensee:
(i) may comply with the provisions of this section beginning on or after July 1, 2017;
and
(ii) shall comply with the provisions of this section:
(A) for a full-service restaurant licensee that does not have a grandfathered bar
structure, on and after July 1, 2018; or
(B) for a full-service restaurant licensee that has a grandfathered bar structure, on and
after July 1, 2022.
(b) A full-service restaurant licensee that elects to comply with the provisions of this
section before the latest applicable date described in Subsection [
(18)
] 
(16)
(a)(ii):
(i) shall comply with each provision of this section; and
(ii) is not required to comply with the provisions of Section 
32B-6-205
.
Section 19. Section 
32B-6-205.4
 is enacted to read:
 32B-6-205.4.
Small full-service restaurant licensee -- Exemption.
(1) Notwithstanding the provisions of Section 
32B-6-205
 or 
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 of age 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
(5); 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.
Section 20. Section 
32B-6-302
 is amended to read:
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 [
any area
where alcoholic product is dispensed to
] the dining area and any waiting area[
, measured from
the point of the area where alcoholic product is dispensed that is closest to the dining area or
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) (a) "Grandfathered bar structure" means a bar structure in a licensed premises of a
limited-service restaurant licensee that:
(i) as of May 11, 2009, has:
(A) patron seating at the bar structure;
(B) a partition at one or more locations on the bar structure that is along:
(I) the width of the bar structure; or
(II) the length of the bar structure; and
(C) facilities for the dispensing or storage of an alcoholic product:
(I) on the portion of the bar structure that is separated by the partition described in
Subsection (3)(a)(i)(B); or
(II) if the partition as described in Subsection (3)(a)(i)(B)(II) is adjacent to the bar
structure in a manner visible to a patron sitting at the bar structure;
(ii) is not operational as of May 12, 2009, if:
(A) a person applying for a limited-service restaurant license:
(I) has as of May 12, 2009, a building permit to construct the restaurant;
(II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
defined by rule made by the commission; and
(III) is issued the limited-service restaurant license by no later than December 31,
2009; and
(B) once constructed, the licensed premises has a bar structure described in Subsection
(3)(a)(i);
(iii) as of May 12, 2009, has no patron seating at the bar structure; or
(iv) is not operational as of May 12, 2009, if:
(A) a person applying for a limited-service restaurant license:
(I) has as of May 12, 2009, a building permit to construct the restaurant;
(II) is as of May 12, 2009, actively engaged in the construction of the restaurant, as
defined by rule made by the commission; and
(III) is issued a limited-service restaurant license by no later than December 31, 2009;
and
(B) once constructed, the licensed premises has a bar structure with no patron seating.
(b) "Grandfathered bar structure" does not include a grandfathered bar structure
described in Subsection (3)(a) on or after the day on which a restaurant remodels the
grandfathered bar structure, as defined by rule made by the commission.
(c) Subject to Subsection (3)(b), a grandfathered bar structure remains a grandfathered
bar structure notwithstanding whether a restaurant undergoes a change of ownership.
(4) "Seating grandfathered bar structure" means:
(a) a grandfathered bar structure described in Subsection (3)(a)(i) or (ii); or
(b) a bar structure grandfathered under Section 
32B-6-409
.
(5) "Small limited-service restaurant licensee" means a limited-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.
[
(5)
] 
(6)
 "Waiting area" includes a lobby. 
[
(6)
] 
(7)
 "Wine" includes an alcoholic beverage defined as wine under 27 U.S.C. Sec.
211 and 27 C.F.R. Sec. 4.10, including the following alcoholic beverages made in the manner
of wine containing not less than 7% and not more than 24% of alcohol by volume:
(a) sparkling and carbonated wine;
(b) wine made from condensed grape must;
(c) wine made from other agricultural products than the juice of sound, ripe grapes;
(d) imitation wine;
(e) compounds sold as wine;
(f) vermouth;
(g) cider;
(h) perry; and
(i) sake.
Section 21. Section 
32B-6-305
 is amended to read:
32B-6-305.
Specific operational requirements for a limited-service restaurant
license -- Before 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 as provided in 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) A limited-service restaurant licensee on the licensed premises may not sell, offer
for sale, furnish, or allow consumption of:
(i) spirituous liquor; or
(ii) a flavored malt beverage.
(b) A product listed in Subsection (2)(a) may not be on the premises of a
limited-service restaurant licensee except for use:
(i) as a flavoring on a dessert; and
(ii) in the preparation of a flaming food dish, drink, or dessert.
(3) In addition to complying with Section 
32B-5-303
, a limited-service restaurant
licensee shall store an alcoholic product in a storage area described in Subsection (12)(a).
(4) (a) An individual who serves an alcoholic product in a limited-service restaurant
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) A person's willingness to serve an alcoholic product may not be made a condition
of employment as a server with a limited-service restaurant licensee.
(6) (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 beings at 11:30 a.m. and ends at 12:59 a.m.; or
(ii) on a weekend or 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.
(7) A limited-service restaurant licensee shall maintain at least 70% of its total
restaurant business from the sale of food, which does not include a service charge.
(8) (a) A limited-service restaurant licensee may not sell, offer for sale, or furnish an
alcoholic product except after the limited-service restaurant licensee confirms that the patron
has the intent to order food prepared, sold, and furnished at the licensed premises.
(b) A limited-service restaurant licensee shall maintain on the licensed premises
adequate culinary facilities for food preparation and dining accommodations.
(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) An individual portion of wine is considered to be one alcoholic product under
Subsection (9)(a).
(10) A patron may consume an alcoholic product only:
(a) at:
(i) the patron's table;
(ii) a counter; or
(iii) a seating grandfathered bar structure; and
(b) where food is served.
(11) (a) A limited-service restaurant 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 that is not a seating grandfathered bar structure.
(b) At a seating grandfathered bar structure a patron who is 21 years of age or older
may:
(i) sit;
(ii) be furnished an alcoholic product; and
(iii) consume an alcoholic product.
(c) Except as provided in Subsection (11)(d), at a seating grandfathered bar structure a
limited-service restaurant licensee may not permit a minor to, and a minor may not:
(i) sit; or
(ii) consume food or beverages.
(d) (i) A minor may be at a seating grandfathered bar structure if the minor is
employed by a limited-service restaurant licensee:
(A) as provided in Subsection 
32B-5-308
(2); or
(B) to perform maintenance and cleaning services during an hour when the
limited-service restaurant licensee is not open for business.
(ii) A minor may momentarily pass by a seating grandfathered bar structure without
remaining or sitting at the bar structure en route to an area of a limited-service restaurant
licensee's premises in which the minor is permitted to be.
(12) 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 grandfathered bar structure;
(ii) an area adjacent to a grandfathered bar structure that is visible to a patron sitting at
the grandfathered bar structure if that area is used to dispense an alcoholic product as of May
12, 2009; or
(iii) 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 storage or dispensing of
an alcoholic product are:
(I) not readily visible to a patron; and
(II) not accessible by a patron; and
(B) apart from an area used:
(I) for dining;
(II) for staging; or
(III) as a lobby or waiting area;
(b) the limited-service restaurant licensee uses an alcoholic product that is:
(i) stored in an area described in Subsection (12)(a); or
(ii) in an area not described in Subsection (12)(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 (12)(a) before it 
is opened; and
(C) once opened, the container is stored in an area described in Subsection (12)(a); and
(c) any instrument or equipment used to dispense alcoholic product is located in an
area described in Subsection (12)(a). 
(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) In addition to complying with Subsection 
32B-5-301
(3), a limited-service
restaurant licensee shall display in a conspicuous place at the entrance to the licensed premises
a sign approved by the commission that:
]
[
(a) measures at least 8-1/2 inches long and 11 inches wide; and
]
[
(b) clearly states that the limited-service restaurant licensee is a restaurant and not a
bar.
]
[
(15)
] 
(14)
 Beginning on July 1, 2018, a minor may not sit, remain, or consume food or
beverages within 10 feet of a grandfathered bar structure, unless:
(a) seating within 10 feet of the grandfathered bar structure is the only seating available
in the licensed premises; and
(b) the minor is accompanied by an individual who is 21 years of age or older.
[
(16)
] 
(15)
 Except as provided in Subsection 
32B-6-305.2
[
(18)
]
(16)
 and Section
32B-6-305.3
, the provisions of this section apply before July 1, 2018. 
Section 22. Section 
32B-6-305.2
 is amended to read:
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) In addition to complying with Subsection 
32B-5-301
(3), a limited-service
restaurant licensee shall display in a conspicuous place at the entrance to the licensed premises
a sign approved by the commission that:
]
[
(a) measures at least 8-1/2 inches long and 11 inches wide; and
]
[
(b) clearly states that the limited-service restaurant licensee is a restaurant and not a
bar.
]
[
(3) In addition to complying with Section 
32B-5-303
, a limited-service restaurant
licensee shall store an alcoholic product in a storage area described in Subsection (13) (a).
]
[
(4)
] 
(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 [
(4)
] 
(2)
 shall state the type and amount
of each alcoholic product ordered or consumed.
[
(5)
] 
(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.
[
(6)
] 
(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. 
[
(7)
] 
(5)
 A limited-service restaurant licensee shall maintain at least 70% of the
limited-service restaurant licensee's total restaurant business from the sale of food, which does
not include a service charge.
[
(8)
] 
(6)
 (a) A limited-service restaurant licensee may not [
sell, offer for sale, or
]
furnish an alcoholic product except after:
(i) the patron to whom the limited-service restaurant licensee [
sells, offers for sale, or
]
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 [
(8)
] 
(6)
(b), consume the food at the same
location where the patron is seated and [
sold, offered for sale, or
] 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) If the patron does not finish the patron's alcoholic product before moving to a seat
in the dining area, an employee of the limited-service restaurant licensee who is qualified to
sell and serve an alcoholic product under Section 
32B-5-306
 shall transport any unfinished
portion of the patron's alcoholic product to the patron's seat in the dining area.
(iii) For purposes of Subsection [
(8)
] 
(6)
(b)(i) a single portion of wine is 5 ounces or
less.
(c) A limited-service restaurant licensee shall maintain on the licensed premises
adequate culinary facilities for food preparation and dining accommodations.
[
(9)
] 
(7)
 A patron may consume an alcoholic product 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.
[
(10)
] 
(8)
 (a) Subject to the other provisions of this Subsection [
(10)
] 
(8)
, 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)
] 
(8)
(a).
[
(11)
] 
(9)
 In accordance with the provisions of this section, an individual who is at
least 21 years of age may consume food and beverages in a dispensing area.
[
(12)
] 
(10)
 (a) Except as provided in Subsection [
(12)
] 
(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 employed by the
limited-service restaurant licensee:
(A) in accordance with Subsection 
32B-5-308
(2); or
(B) to perform maintenance and cleaning services 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.
[
(13)
] 
(11)
 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 [
storage or
] 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 lobby or 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) the limited-service restaurant licensee uses an alcoholic product that is stored in an
area described in Subsection (13) (a) or in accordance with Section 
32B-5-303
; and
]
[
(c)
] 
(b)
 any instrument or equipment used to dispense alcoholic product is located in
an area described in Subsection [
(13)
] 
(11)
(a).
[
(14)
] 
(12)
 (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.
[
(15)
] 
(13)
 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.
[
(16)
] 
(14)
 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.
[
(17)
] 
(15)
 (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 Section 
32B-5-302
; 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.
[
(18)
] 
(16)
 (a) In accordance with Section 
32B-6-305.3
, a limited-service restaurant
licensee:
(i) may comply with the provisions of this section beginning on or after July 1, 2017;
and
(ii) shall comply with the provisions of this section:
(A) for a limited-service restaurant licensee that does not have a grandfathered bar
structure, on and after July 1, 2018; or
(B) for a limited-service restaurant licensee that has a grandfathered bar structure, on
and after July 1, 2022.
(b) A limited-service restaurant licensee that elects to comply with the provisions of
this section before the latest applicable date described in Subsection [
(18)
] 
(16)
(a)(ii):
(i) shall comply with each provision of this section; and
(ii) is not required to comply with the provisions of Section 
32B-6-305
.
Section 23. Section 
32B-6-305.4
 is enacted to read:
 32B-6-305.4.
Small limited-service restaurant licensee -- Exemption.
(1) Notwithstanding the provisions of Section 
32B-6-305
 or 
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
(5); 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.
Section 24. Section 
32B-6-403
 is amended to read:
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 its 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) (i) before July 1, 2018, the commission may not issue a total number of bar
establishment licenses that at any time exceeds the number determined by dividing the
population of the state by 7,850; and
(ii) beginning on July 1, 2018, the commission may not issue a total number of bar
establishment licenses that at any time exceeds the number determined by dividing the
population of the state by [
10,538
] 
10,200
;
(b) the commission may issue a seasonal bar establishment license in accordance with
Section 
32B-5-206
 to:
(i) a dining club licensee; or
(ii) a bar licensee;
(c) (i) if the location, design, and construction of a hotel may require more than one
dining club license or bar license location within the hotel to serve the public convenience, the
commission may authorize as many as three bar establishment license locations within the
hotel under one bar establishment license if:
(A) the hotel has a minimum of 150 guest rooms;
(B) all locations under the bar establishment license are:
(I) within the same hotel; and
(II) on premises that are managed or operated, and owned or leased, by the bar
establishment licensee; and
(C) the locations under the bar establishment license operate under the same type of bar
establishment license; and
(ii) a facility other than a hotel shall have a separate bar establishment license for each
bar establishment license location where an alcoholic product is sold, offered for sale, or
furnished;
(d) 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)(e), the licensed premises of the bar establishment license
issued under this Subsection (3)(d) 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
(e) if a bar establishment licensee of a bar establishment license issued under
Subsection (3)(d) 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).
Section 25. Section 
32B-6-404
 is amended to read:
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) 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[
:(i) full voting rights; and (ii)
] 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[
:(i) full voting rights; and (ii)
] 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) [
Effective
] 
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 [
effective July 1, 2018,
] the person elects to be
licensed as a full-service restaurant or a bar.
(B) [
Effective
] 
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) [
Before
] 
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).
Section 26. Section 
32B-6-404.1
 is amended to read:
32B-6-404.1.
Transition from dining club license to full-service restaurant license.
(1) As used in this section:
(a) "Converted full-service restaurant licensee" means a dining club licensee that
converts to a full-service restaurant licensee on 
or before
 July 1, 2018, in accordance with
Subsection 
32B-6-404
(7).
(b) "Grandfathered bar structure" means the same as that term is defined in Section
32B-6-202
.
(2) (a) Except as provided in Subsection (2)(c)[
, beginning on July 1, 2018
] 
and subject
to the provisions of this section
, a converted full-service restaurant licensee shall operate under
the provisions that govern a full-service restaurant licensee that has a grandfathered bar
structure.
(b) For purposes of applying the provisions that govern a full-service restaurant
licensee with a grandfathered bar structure, a converted full-service restaurant licensee's bar
structure is considered a grandfathered bar structure.
(c) The provisions of Section 
32B-6-205.3
 do not apply to a converted full-service
restaurant licensee.
(3) (a) A converted full-service restaurant licensee shall comply with the provisions of
Section 
32B-6-205.2
 on or before the earlier of:
(i) July 1, 2022;
(ii) the date on which the converted full-service restaurant licensee remodels, as
defined by commission rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, the converted full-service restaurant licensee's bar structure or
dining area; or
(iii) the date on which the converted full-service restaurant licensee experiences a
change of ownership described in Subsection 
32B-8a-202
(1).
(b) Before a converted full-service restaurant licensee changes the converted
full-service restaurant licensee's approved location for storage, dispensing, or consumption to
comply with the provisions of Section 
32B-6-205.2
, the converted full-service restaurant
licensee shall submit an application for approval to the department in accordance with
Subsection 
32B-5-303
(3).
(c) A converted full-service restaurant licensee that cannot comply with the provisions
of Section 
32B-6-205.2
 without a change to the converted full-service restaurant licensee's
approved location for storage, dispensing, or consumption shall submit an application for
approval described in Subsection (3)(b) on or before May 1, 2022.
(4) (a) Notwithstanding any provision to the contrary, a converted full-service
restaurant licensee shall maintain at least the following percentage of the converted full-service
restaurant licensee's total restaurant business from the sale of food:
(i) beginning [
July 1, 2018
] 
the day on which the licensee becomes a converted
full-service restaurant licensee
, and ending June 30, 2019, 64%;
(ii) beginning July 1, 2019, and ending June 30, 2020, 68%; and
(iii) on and after July 1, 2021, 70%.
(b) For purposes of Subsection (4)(a), a converted full-service restaurant licensee's
restaurant business from the sale of food does not include:
(i) mix for an alcoholic product; or
(ii) a service charge.
Section 27. Section 
32B-6-406
 is amended to read:
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 [
approved by the
commission
] 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 [
not a restaurant
] 
that no one under
years of age 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 Section 
32B-5-302
; 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) a single serving of wine not exceeding five ounces;
(C) a single serving of heavy beer;
(D) a single serving of beer not exceeding 26 ounces; or
(E) 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 may not be admitted into, use, or be in:
(i) a lounge or bar area of the premises of:
(A) an equity licensee;
(B) a fraternal licensee; or
(C) a dining club licensee; or
(ii) the premises of:
(A) a dining club licensee unless accompanied by an individual who is 21 years of age
or older; or
(B) a bar licensee, except to the extent provided for under Section 
32B-6-406.1
.
(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.
Section 28. Section 
32B-6-409
 is amended to read:
32B-6-409.
Conversion from dining club license to different type of retail license.
(1) In accordance with this section, a dining club licensee may convert its dining club
license to a different type of retail license, including a different type of club license during the
time period:
(a) beginning on July 1, 2011; and
(b) ending on June 30, 2013.
(2) A dining club licensee may convert its dining license only to a retail license for
which the dining club licensee qualifies.
(3) The commission shall provide a procedure for a dining club to convert to a different
type of retail license as provided in this section by rule made in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act.
(4) After a dining club license is converted to another type of retail license, the retail
licensee shall operate under the provisions relevant to the type of retail license held by the retail
licensee[
, except that, in accordance with Section 
32B-1-201
, the retail license is not
considered in determining the total number of licenses available for that type of retail license
].
(5) If a dining club license is converted to full-service restaurant license,
limited-service restaurant license, or beer-only restaurant license, the bar structure of the dining
club is considered:
(a) a seating grandfathered bar structure for purposes of a full-service restaurant license
or a limited-service restaurant license; or
(b) a grandfathered bar structure for purposes of a beer-only restaurant license.
Section 29. Section 
32B-6-503
 is amended to read:
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) The commission may issue an airport lounge license to establish airport lounge
licensed premises beyond the security point at an international airport and 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 a total number of airport lounge licenses for an
international airport that at any time exceed one airport lounge license for each [
2,500,000
]
1,750,000
 of total passengers at the international airport.
(b) Notwithstanding Subsection (3)(a), the commission may not reduce the total
number of airport lounge licenses unless:
(i) the commission determines that the number of total passengers is reduced by more
than 25% from the last day on which the commission determined the total number of airport
lounge licenses allowed for that international airport under this Subsection (3); and
(ii) the reduction can be accomplished without the international airport terminating a
lease for an airport lounge before:
(A) the expiration of the lease;
(B) the airport lounge undergoes a change of ownership; or
(C) the airport lounge ceases operations.
Section 30. Section 
32B-6-605
 is amended to read:
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, or convention center 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 Section 
32B-5-302
, but shall
make and maintain 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) [
A
] 
Except as provided in Subsection 
32B-5-307
(4), a
 host of a banquet, a patron,
or a person 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.
(c) Notwithstanding [
Section 
32B-5-307
] 
Subsection 
32B-5-307
(3) and except as
provided in Subsection 
32B-5-307
(4)
, a patron at a banquet may not bring an alcoholic product
into or onto, or remove an alcoholic product from, the premises of a 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 established by the department; and
(ii) return to the on-premise banquet licensee's approved locked 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
locked 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 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:
(a) begins at 1 a.m.; and
(b) ends at 9:59 a.m.
(9) An on-premise banquet licensee shall maintain at least 50% of its total annual
banquet gross receipts from the sale of food, not including:
(a) mix for an alcoholic product; and
(b) a charge in connection with the furnishing of an alcoholic product.
(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) 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 (10)(a).
(11) (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.
(12) 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.
(13) (a) Room service of an alcoholic product to a guest room 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.
(b) An alcoholic product may not be left outside a guest room for retrieval by a guest.
Section 31. Section 
32B-6-605.1
 is enacted to read:
 32B-6-605.1.
Department study -- Rulemaking authority.
(1) The department shall:
(a) study the use of banquet catering contracts and the operation of on-premise banquet
licenses under the provisions of this part; and
(b) no later than November 30, 2018, submit a written report to the Business and Labor
Interim Committee that:
(i) identifies any issues the department discovers during the study described in
Subsection (1)(a); and
(ii) recommends possible legislative solutions to the issues, if any.
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules establishing:
(a) required terms in a contract between the host of a banquet and an on-premise
banquet licensee; and
(b) size requirements for a location of a banquet.
Section 32. Section 
32B-6-902
 is amended to read:
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 [
any area
where beer is dispensed to
] the dining area and any waiting area[
, measured from the point of
the area where beer is dispensed that is closest to the dining area or 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 alcoholic product is dispensed, but from which a
patron seated at a table or counter cannot view the dispensing of alcoholic product.
(c) "Grandfathered bar structure" means a bar structure in a licensed premises of a
beer-only restaurant licensee that:
(i) was licensed as an on-premise beer retailer as of August 1, 2011, and as of August
1, 2011:
(A) is operational;
(B) has facilities for the dispensing or storage of an alcoholic product that do not meet
the requirements of Subsection 
32B-6-905
(12)(a)(ii); and
(C) in accordance with Subsection 
32B-6-703
(2)(e), notifies the department that
effective March 1, 2012, the on-premise beer retailer licensee will seek to be licensed as a
beer-only restaurant; or
(ii) is a bar structure grandfathered under Section 
32B-6-409
.
(d) "Grandfathered bar structure" does not include a grandfathered bar structure
described in Subsection (1)(a) on or after the day on which a restaurant remodels the
grandfathered bar structure, as defined by rule made by the commission.
(e) "Small beer-only restaurant licensee" means a beer-only 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:
(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.
[
(e)
] 
(f)
 "Waiting area" includes a lobby. 
(2) Subject to Subsection (1)(d), a grandfathered bar structure remains a grandfathered
bar structure notwithstanding whether a restaurant undergoes a change of ownership.
Section 33. Section 
32B-6-905
 is amended to read:
32B-6-905.
Specific operational requirements for a beer-only restaurant license --
Before 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 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-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; and
(ii) in the preparation of a flaming food dish, drink, or dessert.
(3) In addition to complying with Section 
32B-5-303
, a beer-only restaurant licensee
shall store beer in a storage area described in Subsection (12)(a).
(4) (a) An individual who serves beer in a beer-only restaurant 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
beer ordered or consumed.
(5) A person's willingness to serve beer may not be made a condition of employment as
a server with a beer-only restaurant licensee.
(6) 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.
(7) A beer-only restaurant licensee shall maintain at least 70% of its total restaurant
business from the sale of food, which does not include a service charge.
(8) (a) A beer-only restaurant may not sell, offer for sale, or furnish beer except after
the beer-only restaurant licensee confirms that the patron has the intent to order food prepared,
sold, and furnished at the licensed premises.
(b) A beer-only restaurant shall maintain on the licensed premises adequate culinary
facilities for food preparation and dining accommodations.
(9) A patron may not have more than two beers at a time before the patron.
(10) A patron may consume a beer only:
(a) at:
(i) the patron's table;
(ii) a grandfathered bar structure; or
(iii) a counter; and
(b) where food is served.
(11) (a) A beer-only restaurant licensee may not sell, offer for sale, or furnish a beer to
a patron, and a patron may not consume an alcoholic product at a bar structure.
(b) Notwithstanding Subsection (11)(a), at a grandfathered bar structure, a patron who
is 21 years of age or older may:
(i) sit;
(ii) be furnished a beer; and
(iii) consume a beer.
(c) Except as provided in Subsection (11)(d), at a grandfathered bar structure, a
beer-only restaurant licensee may not permit a minor to, and a minor may not:
(i) sit; or
(ii) consume food or beverages.
(d) (i) A minor may be at a grandfathered bar structure if the minor is employed by a
beer-only restaurant licensee:
(A) as provided in Subsection 
32B-5-308
(2); or
(B) to perform maintenance and cleaning services during an hour when the beer-only
restaurant licensee is not open for business.
(ii) A minor may momentarily pass by a grandfathered bar structure without
remaining or sitting at the bar structure en route to an area of a beer-only restaurant licensee's
premises in which the minor is permitted to be.
(12) A beer-only restaurant licensee may dispense a beer only if:
(a) the beer is dispensed from an area that is:
(i) a grandfathered bar structure; or
(ii) 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 not readily visible to a patron, not accessible by a patron, and apart
from an area used for dining, for staging, or as a lobby or waiting area;
(b) the beer-only restaurant licensee uses a beer that is:
(i) stored in an area described in Subsection (12)(a); or
(ii) in an area not described in Subsection (12)(a) on the licensed premises and:
(A) immediately before the beer is dispensed it is in an unopened container;
(B) the unopened container is taken to an area described in Subsection (12)(a) before it 
is opened; and
(C) once opened, the container is stored in an area described in Subsection (12)(a) ; and
(c) any instrument or equipment used to dispense the beer is located in an area
described in Subsection (12)(a).
[
(13) In addition to complying with Subsection 
32B-5-301
(3), a beer-only restaurant
licensee shall display in a conspicuous place at the entrance to the licensed premises a sign
approved by the commission that:
]
[
(a) measures at least 8-1/2 inches long and 11 inches wide; and
]
[
(b) clearly states that the beer-only restaurant licensee is a restaurant and not a bar.
]
[
(14)
] 
(13)
 Beginning on July 1, 2018, a minor may not sit, remain, or consume food or
beverages within 10 feet of a grandfathered bar structure, unless:
(a) seating within 10 feet of the grandfathered bar structure is the only seating available
in the licensed premises; and
(b) the minor is accompanied by an individual who is 21 years of age or older.
[
(15)
] 
(14)
 Except as provided in Subsection 
32B-6-905.1
[
(18)
]
(16)
 and Section
32B-6-905.2
, the provisions of this section apply before July 1, 2018. 
Section 34. Section 
32B-6-905.1
 is amended to read:
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; and
(ii) in the preparation of a flaming food dish, drink, or dessert.
[
(3) In addition to complying with Section 
32B-5-303
, a beer-only restaurant licensee
shall store beer in a storage area described in Subsection (13)(a).
]
[
(4)
] 
(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 an alcoholic product
on the premises.
(b) A beverage tab described in this Subsection [
(4)
] 
(3)
 shall state the type and amount
of each alcoholic product ordered or consumed.
[
(5)
] 
(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.
[
(6)
] 
(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. 
[
(7)
] 
(6)
 A beer-only restaurant licensee shall maintain at least 70% of the beer-only
restaurant licensee's total restaurant business from the sale of food, which does not include a
service charge.
[
(8)
] 
(7)
 (a) A beer-only restaurant licensee may not [
sell, offer for sale, or
] furnish
beer except after:
(i) the patron to whom the beer-only restaurant licensee [
sells, offers for sale, or
]
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 [
(8)
] 
(7)
(b), consume the food at the same
location where the patron is seated and [
sold, offered for sale, or
] 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) If the patron does not finish the patron's beer before moving to a seat in the dining
area, an employee of the beer-only restaurant licensee who is qualified to sell and serve an
alcoholic product under Section 
32B-5-306
 shall transport any unfinished portion of the
patron's beer to the patron's seat in the dining area.
(c) A beer-only restaurant licensee shall maintain on the licensed premises adequate
culinary facilities for food preparation and dining accommodations.
[
(9)
] 
(8)
 A patron may consume a beer 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.
[
(10)
] 
(9)
 A patron may not have more than two beers at a time before the patron.
[
(11)
] 
(10)
 In accordance with the provisions of this section, an individual who is at
least 21 years of age may consume food and beverages in a dispensing area.
[
(12)
] 
(11)
 (a) Except as provided in Subsection [
(12)
] 
(11)
(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 employed by the beer-only
restaurant licensee:
(A) in accordance with Subsection 
32B-5-308
(2); or
(B) to perform maintenance and cleaning services 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.
[
(13)
] 
(12)
 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 [
storage or
] dispensing
of an alcoholic product are not readily visible to a patron, not accessible by a patron; and
(B) apart from an area used for dining, for staging, or as a lobby or 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) the beer-only restaurant licensee uses a beer that is stored in an area described in
Subsection (13)(a) or in accordance with Section 
32B-5-303
; and
]
[
(c)
] 
(b)
 any instrument or equipment used to dispense the beer is located in an area
described in Subsection [
(13)
] 
(12)
(a).
[
(14)
] 
(13)
 (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-6-202
] 
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.
[
(15)
] 
(14)
 A beer-only restaurant licensee may not transfer, dispense, or serve beer on
or from a movable cart.
[
(16)
] 
(15)
 (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 Section 
32B-5-302
; 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 each calendar year.
[
(17) A beer-only restaurant licensee shall display in a conspicuous place at the
entrance to the licensed premises a sign approved by the commission that:
]
[
(a) measures at least 8-1/2 inches long and 11 inches wide; and
]
[
(b) clearly states that the beer-only restaurant licensee is a restaurant and not a bar.
]
[
(18)
] 
(16)
 (a) In accordance with Section 
32B-6-905.2
, a beer-only restaurant licensee:
(i) may comply with the provisions of this section beginning on or after July 1, 2017;
and
(ii) shall comply with the provisions of this section:
(A) for a beer-only restaurant licensee that does not have a grandfathered bar structure,
on and after July 1, 2018; or
(B) for a beer-only restaurant licensee that has a grandfathered bar structure, on and
after July 1, 2022.
(b) A beer-only restaurant licensee that elects to comply with the provisions of this
section before the latest applicable date described in Subsection [
(18)
] 
(16)
(a)(ii):
(i) shall comply with each provision of this section; and
(ii) is not required to comply with the provisions of Section 
32B-6-905
.
Section 35. Section 
32B-6-905.3
 is enacted to read:
 32B-6-905.3.
Small beer-only restaurant licensee -- Exemption.
(1) Notwithstanding the provisions of Section 
32B-6-905
 or 
32B-6-905.2
 and subject
to Subsection (2), 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)(e); 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.
Section 36. Section 
32B-7-202
 is amended to read:
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) 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) 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.
[
(4)
] 
(b)
 A minor may not sell beer on the licensed premises of an off-premise beer
retailer unless:
[
(a)
] 
(i)
 the sale is done under the supervision of a person 21 years of age or older who
is on the licensed premises; and
[
(b)
] 
(ii)
 the minor is at least 16 years of age.
(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.
[
(5)
] 
(6)
 (a) Subject to the other provisions of this Subsection [
(5)
] 
(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 [
(5)
] 
(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 [
(5)
] 
(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 [
(5)
] 
(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 [
(5)
] 
(6)
 is an infraction.
(e) (i) Except as provided in Subsection [
(5)
] 
(6)
(e)(ii), the provisions of Subsection
[
(5)
] 
(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 [
(5)
] 
(6)
(a)(i) apply on and after August 1, 2017.
[
(6)
] 
(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 [
(6)
] 
(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 its staff to comply with this Subsection [
(6)
] 
(7)
.
Section 37. Section 
32B-7-401
 is amended to read:
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) A person who operates as an off-premise beer retailer on July 1, 2018, shall
[
obtain
] 
submit an application for
 an off-premise beer retailer state license on or before March
1, 2019.
[
(b) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission shall establish a deadline for each off-premise beer retailer described in
Subsection (3)(a) to submit to the department an application for an off-premise beer retailer
state license.
]
[
(ii) The commission shall act upon each timely application submitted in accordance
with this Subsection (3) on or before February 28, 2019.
]
[
(c) An off-premise beer retailer described in Subsection (3)(a) may continue to operate
without an off-premise beer retailer state license through February 28, 2019.
]
Section 38. Section 
32B-8a-202
 is amended to read:
32B-8a-202.
Effect of transfer of ownership of business entity.
(1) (a) When the ownership of 51% or more of the shares of stock of a corporation is
acquired by or transferred to one or more persons who did not hold the ownership of 51% of
those shares of stock on the date a retail license is issued to the corporation, the corporation
shall comply with this chapter to transfer the retail license to the corporation as if the
corporation is newly constituted.
(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 acquired by or transferred to 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 date a retail license is issued to the limited partnership,
the limited partnership shall comply with this chapter to transfer the retail license to the limited
partnership as if the limited partnership is newly constituted.
(c) When the ownership of 51% or more of the interests in a limited liability company
is acquired by or transferred to 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 date a retail license is
issued to the limited liability company, the limited liability company shall comply with this
chapter to transfer the retail license to the limited liability company as if the limited liability
company is newly constituted.
(2) [
If a
] 
A
 business entity [
fails to
] 
shall
 comply with this section within [
] 
 days
[
of
] 
after
 the day on which the event described in Subsection (1) occurs[
, the business entity's
retail license is automatically forfeited
].
Section 39. Section 
32B-8a-203
 is amended to read:
32B-8a-203.
Operational requirements for transferee.
(1) (a) A transferee shall begin operations of the retail license within 30 days from the
day on which a transfer is approved by the commission, except that:
(i) the department may grant an extension of this time period not to exceed 30 days;
and
(ii) after the extension is authorized by the department under Subsection (1)(a)(i), the
commission may grant one or more additional extensions not to exceed, in the aggregate, seven
months from the day on which the commission approves the transfer, if the transferee can
demonstrate to the commission that the transferee:
(A) cannot begin operations because the transferee is improving the licensed premises;
(B) has obtained a building permit for the improvements described in Subsection
(1)(a)(ii)(A); and
(C) is working expeditiously to complete the improvements to the licensed premises.
(b) A transferee is considered to have begun operations of the retail license if the
transferee:
(i) has a licensed premises that is open [
to the public
] 
for business
;
(ii) sells, offers for sale, or furnishes alcoholic products to a patron on the licensed
premises described in Subsection (1)(b)(i); and
(iii) has a valid business license.
(2) If a transferee fails to begin operations of the retail license within the time period
required by Subsection (1), the following are automatically forfeited effective immediately:
(a) the retail license; and
(b) the retail license fee.
(3) A transferee shall begin operations of the retail license at the location to which the
transfer applies before the transferee may seek a transfer of the retail license to a different
location.
(4) 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
.
Section 40. Section 
32B-8b-102
 is amended to read:
32B-8b-102.
Definitions.
As used in this chapter:
(1) "Boundary of a hotel" means the physical boundary of [
the
] 
one or more
 contiguous
parcels of real estate owned 
or managed
 by the same person 
and
 on which 
a hotel
 is located
[
one or more buildings and any structure or improvement to that real estate as determined by
the commission
].
(2) "Hotel" means one or more buildings that:
(a) [
constitute
] 
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 [
and
] 
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) provide room service within the boundary of the hotel meeting the requirements of
this title;
(e) have on-premise banquet space and provide on-premise banquet service within the
boundary of the hotel meeting the requirements of this title;
(f) have a restaurant or bar establishment within the boundary of the hotel meeting the
requirements of this title; and
(g) have at least 40 guest rooms.
(3) "Provisions applicable to a sublicense" means:
(a) for a full-service restaurant sublicense, Chapter 6, Part 2, Full-Service Restaurant
License;
(b) for a limited-service restaurant sublicense, Chapter 6, Part 3, Limited-Service
Restaurant License;
(c) for a bar establishment sublicense, Chapter 6, Part 4, Bar Establishment License;
(d) for an on-premise banquet sublicense, Chapter 6, Part 6, On-Premise Banquet
License;
(e) for an on-premise beer retailer sublicense, Chapter 6, Part 7, On-Premise Beer
Retailer License; and
(f) for a beer-only restaurant sublicense, Chapter 6, Part 9, Beer-Only Restaurant
License.
(4) "Sublicense" means:
(a) a full-service restaurant sublicense;
(b) a limited-service restaurant sublicense;
(c) a bar establishment sublicense;
(d) an on-premise banquet sublicense;
(e) an on-premise beer retailer sublicense; and
(f) a beer-only restaurant sublicense.
(5) "Sublicense premises" means a building, enclosure, or room used pursuant to a
sublicense in connection with the storage, sale, furnishing, or consumption of an alcoholic
product, unless otherwise defined in this title or in the rules made by the commission[
, except
that sublicense premises may have only one sublicense within a room or an enclosure that is
separate from a room
].
Section 41. Section 
32B-8b-301
 is amended to read:
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 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) a hotel licensee;
(ii) individual staff of a hotel licensee;
(iii) a person otherwise operating under a sublicense;
(iv) individual staff of a person otherwise operating under a sublicense; 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 a sublicense premises;
(ii) pursuant to 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) 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) 
except as provided in Section 
32B-8b-302
,
 if on a sublicense premises, in
accordance with the operational requirements under the provisions applicable to the sublicense;
(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.
(c) Notwithstanding the other provisions of this Subsection (2), 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
 or off an area designated under a permit.
(3) A hotel licensee shall comply with Subsections 
32B-5-301
(4) and (5) within the
boundary of the hotel.
(4) 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.
(5) (a) Room service of an alcoholic product to a lodging accommodation of a hotel
licensee shall be provided in person by staff of a hotel licensee 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 hotel licensee shall operate in a manner so that at least 70% of the annual
aggregate of the gross receipts related to the sale of food or beverages for the hotel license and
each of the hotel license's sublicenses is from the sale of food, not including:
(a) mix for an alcoholic product; and
(b) a charge in connection with the service of an alcoholic product.
Section 42. Section 
32B-8b-302
 is amended to read:
32B-8b-302.
Specific operational requirements for a sublicense.
(1) [
A
] 
Except as provided in Subsection (2), a
 person operating under a sublicense is
subject to the operational requirements under the provisions applicable to the sublicense.
(2) A person operating under a 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
the gross receipts for the sublicense are included in calculating the percentages under
Subsection 
32B-8-401
(4).
[
(2)
] 
(3)
 For purposes of interpreting an operational requirement imposed by the
provisions applicable to a sublicense:
(a) a requirement imposed on a person operating under a sublicense applies to the hotel
licensee; and
(b) a requirement imposed on staff of a person operating under a sublicense applies to
staff of the hotel licensee.
Section 43. Section 
53F-9-304
 is amended to read:
53F-9-304.
Underage Drinking Prevention Program Restricted Account.
(1) As used in this section, "account" means the Underage Drinking Prevention
Program Restricted Account created in this section.
(2) There is created within the Education Fund a restricted account known as the
"Underage Drinking Prevention Program Restricted Account."
(3) (a) Before the Department of Alcoholic Beverage Control [
remits
] 
deposits
 any
portion of the markup collected under Section 
32B-2-304
 [
to the State Tax Commission, the
department
] 
into the Liquor Control Fund in accordance with Section 
32B-2-301
, the
Department of Alcoholic Beverage Control
 shall deposit into the account:
(i) for the fiscal year that begins July 1, 2017, $1,750,000; or
(ii) for each fiscal year that begins on or after July 1, 2018, an amount equal to the
amount that the [
department
] 
Department of Alcoholic Beverage Control
 deposited into the
account during the preceding fiscal year increased or decreased by a percentage equal to the
percentage difference between the Consumer Price Index for the 
second
 preceding calendar
year and the Consumer Price Index for 
the preceding
 calendar year [
].
(b) For purposes of this Subsection (3), the department shall calculate the Consumer
Price Index in accordance with 26 U.S.C. Secs. 1(f)(4) and 1(f)(5).
(4) The account shall be funded:
(a) in accordance with Subsection (3);
(b) by appropriations made to the account by the Legislature; and
(c) by interest earned on money in the account.
(5) The State Board of Education shall use money in the account for the Underage
Drinking Prevention Program described in Section 
53G-10-406
.
Section 44. Section 
53G-10-406
 is amended to read:
53G-10-406.
Underage Drinking Prevention Program -- State Board of Education
rules.
(1) As used in this section:
(a) "Advisory council" means the Underage Drinking Prevention Program Advisory
Council created in this section.
(b) "Board" means the State Board of Education.
(c) "LEA" means:
(i) a school district;
(ii) a charter school; or
(iii) the Utah Schools for the Deaf and the Blind.
(d) "Program" means the Underage Drinking Prevention Program created in this
section.
(e) "School-based prevention [
presentation
] 
program
" means an evidence-based
program intended for students aged 13 and older that:
(i) is aimed at preventing underage consumption of alcohol;
(ii) is delivered by methods that engage students in storytelling and visualization;
(iii) addresses the behavioral risk factors associated with underage drinking; and
(iv) provides practical tools to address the dangers of underage drinking.
(2) There is created the Underage Drinking Prevention Program that consists of:
(a) a school-based prevention [
presentation
] 
program
 for students in grade 
or
 8; and
(b) a school-based prevention [
presentation
] 
program
 for students in grade 
or
that
increases awareness of the dangers of driving under the influence of alcohol.
(3) (a) Beginning with the 2018-19 school year, an LEA shall offer the program each
school year to each student in grade 
or
and grade 
or
 10.
(b) An LEA shall select from the providers qualified by the board under Subsection (6)
to offer the program.
(4) The board shall administer the program with input from the advisory council.
(5) There is created the Underage Drinking Prevention Program Advisory Council
comprised of the following members:
(a) the executive director of the Department of Alcoholic Beverage Control or the
executive director's designee;
(b) the executive director of the Department of Health or the executive director's
designee;
(c) the director of the Division of Substance Abuse and Mental Health or the director's
designee;
(d) the director of the Division of Child and Family Services or the director's designee;
(e) the director of the Division of Juvenile Justice Services or the director's designee;
(f) the state superintendent of public instruction or the state superintendent of public
instruction's designee; and
(g) two members of the State Board of Education, appointed by the chair of the State
Board of Education.
(6) (a) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the board
shall qualify one or more providers to provide the program to an LEA.
(b) In selecting a provider described in Subsection (6)(a), the board shall consider:
(i) whether the provider's program complies with the requirements described in this
section;
(ii) the extent to which the provider's underage drinking prevention program aligns
with core standards for Utah public schools; and
(iii) the provider's experience in providing a program that is effective at reducing
underage drinking.
(7) (a) The board shall use money from the Underage Drinking Prevention Program
Restricted Account described in Section 
53F-9-304
 for the program.
(b) The board may use money from the Underage Drinking Prevention Program
Restricted Account to fund up to .5 of a full-time equivalent position to administer the
program.
(8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
board shall make rules that:
(a) beginning with the 2018-19 school year, require an LEA to offer the Underage
Drinking Prevention Program each school year to each student in grade 
or
and grade 
or
10; and
(b) establish criteria for the board to use in selecting a provider described in Subsection
(6).
Section 45. Section 
62A-15-401
 is amended to read:
62A-15-401.
Alcohol training and education seminar.
(1) As used in this part:
(a) "Instructor" means a person that directly provides the instruction during an alcohol
training and education seminar for a seminar provider.
(b) "Licensee" means a person who is:
(i) (A) a new or renewing licensee under Title 32B, Alcoholic Beverage Control Act;
and
(B) engaged in the retail sale of an alcoholic product for consumption on the premises
of the licensee; or
(ii) a business that is:
(A) a new or renewing licensee licensed by a city, town, or county; and
(B) engaged in the retail sale of beer for consumption off the premises of the licensee.
(c) "Off-premise beer retailer" is as defined in Section 
32B-1-102
.
(d) "Seminar provider" means a person other than the division who provides an alcohol
training and education seminar meeting the requirements of this section.
(2) (a) This section applies to:
(i) a retail manager as defined in Section 
32B-5-402
;
(ii) retail staff as defined in Section 
32B-5-402
; and
(iii) an individual who, as defined by division rule:
(A) directly supervises the sale of beer to a customer for consumption off the premises
of an off-premise beer retailer; or
(B) sells beer to a customer for consumption off the premises of an off-premise beer
retailer.
(b) If the individual does not have a valid record that the individual has completed an
alcohol training and education seminar, an individual described in Subsection (2)(a) shall:
(i) (A) complete an alcohol training and education seminar within 30 days of the
following if the individual is described in [
Subsections
] 
Subsection
 (2)(a)(i) [
through (iii)
] 
or
(ii)
:
(I) if the individual is an employee, the day the individual begins employment;
(II) if the individual is an independent contractor, the day the individual is first hired;
or
(III) if the individual holds an ownership interest in the licensee, the day that the
individual first engages in an activity that would result in that individual being required to
complete an alcohol training and education seminar; or
(B) complete an alcohol training and education seminar within the time periods
specified in Subsection 
32B-5-404
(1) if the individual is described in [
Subsections (2)(a)(iv)
and (v)
] 
Subsection (2)(a)(iii)(A) or (B)
; and
(ii) pay a fee:
(A) to the seminar provider; and
(B) that is equal to or greater than the amount established under Subsection (4)(h).
(c) An individual shall have a valid record that the individual completed an alcohol
training and education seminar within the time period provided in this Subsection (2) to engage
in an activity described in Subsection (2)(a).
(d) A record that an individual has completed an alcohol training and education
seminar is valid for:
(i) three years from the day on which the record is issued for an individual described in
Subsection (2)(a)(i)[
,
] 
or
 (ii)[
, or (iii)
]; and
(ii) five years from the day on which the record is issued for an individual described in
Subsection (2)(a)[
(iv) or (v)
]
(iii)(A) or (B)
.
(e) On and after July 1, 2011, to be considered as having completed an alcohol training
and education seminar, an individual shall:
(i) attend the alcohol training and education seminar and take any test required to
demonstrate completion of the alcohol training and education seminar in the physical presence
of an instructor of the seminar provider; or
(ii) complete the alcohol training and education seminar and take any test required to
demonstrate completion of the alcohol training and education seminar through an online course
or testing program that meets the requirements described in Subsection (2)(f).
(f) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, establish one or more requirements for an online course or
testing program described in Subsection (2)(e) that are designed to inhibit fraud in the use of
the online course or testing program. In developing the requirements by rule the division shall
consider whether to require:
(i) authentication that the an individual accurately identifies the individual as taking the
online course or test;
(ii) measures to ensure that an individual taking the online course or test is focused on
training material throughout the entire training period;
(iii) measures to track the actual time an individual taking the online course or test is
actively engaged online;
(iv) a seminar provider to provide technical support, such as requiring a telephone
number, email, or other method of communication that allows an individual taking the online
course or test to receive assistance if the individual is unable to participate online because of
technical difficulties;
(v) a test to meet quality standards, including randomization of test questions and
maximum time limits to take a test;
(vi) a seminar provider to have a system to reduce fraud as to who completes an online
course or test, such as requiring a distinct online certificate with information printed on the
certificate that identifies the person taking the online course or test, or requiring measures to
inhibit duplication of a certificate;
(vii) measures for the division to audit online courses or tests;
(viii) measures to allow an individual taking an online course or test to provide an
evaluation of the online course or test;
(ix) a seminar provider to track the Internet protocol address or similar electronic
location of an individual who takes an online course or test;
(x) an individual who takes an online course or test to use an e-signature; or
(xi) a seminar provider to invalidate a certificate if the seminar provider learns that the
certificate does not accurately reflect the individual who took the online course or test.
(3) (a) A licensee may not permit an individual who is not in compliance with
Subsection (2) to:
(i) serve or supervise the serving of an alcoholic product to a customer for
consumption on the premises of the licensee;
(ii) engage in any activity that would constitute managing operations at the premises of
a licensee that engages in the retail sale of an alcoholic product for consumption on the
premises of the licensee;
(iii) directly supervise the sale of beer to a customer for consumption off the premises
of an off-premise beer retailer; or
(iv) sell beer to a customer for consumption off the premises of an off-premise beer
retailer.
(b) A licensee that violates Subsection (3)(a) is subject to Section 
32B-5-403
.
(4) The division shall:
(a) (i) provide alcohol training and education seminars; or
(ii) certify one or more seminar providers;
(b) establish the curriculum for an alcohol training and education seminar that includes
the following subjects:
(i) (A) alcohol as a drug; and
(B) alcohol's effect on the body and behavior;
(ii) recognizing the problem drinker or signs of intoxication;
(iii) an overview of state alcohol laws related to responsible beverage sale or service,
as determined in consultation with the Department of Alcoholic Beverage Control;
(iv) dealing with the problem customer, including ways to terminate sale or service;
and
(v) for those supervising or engaging in the retail sale of an alcoholic product for
consumption on the premises of a licensee, alternative means of transportation to get the
customer safely home;
(c) recertify each seminar provider every three years;
(d) monitor compliance with the curriculum described in Subsection (4)(b);
(e) maintain for at least five years a record of every person who has completed an
alcohol training and education seminar;
(f) provide the information described in Subsection (4)(e) on request to:
(i) the Department of Alcoholic Beverage Control;
(ii) law enforcement; or
(iii) a person licensed by the state or a local government to sell an alcoholic product;
(g) provide the Department of Alcoholic Beverage Control on request a list of any
seminar provider certified by the division; and
(h) establish a fee amount for each person attending an alcohol training and education
seminar that is sufficient to offset the division's cost of administering this section.
(5) The division shall by rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act:
(a) define what constitutes under this section an individual who:
(i) manages operations at the premises of a licensee engaged in the retail sale of an
alcoholic product for consumption on the premises of the licensee;
(ii) supervises the serving of an alcoholic product to a customer for consumption on the
premises of a licensee;
(iii) serves an alcoholic product to a customer for consumption on the premises of a
licensee;
(iv) directly supervises the sale of beer to a customer for consumption off the premises
of an off-premise beer retailer; or
(v) sells beer to a customer for consumption off the premises of an off-premise beer
retailer;
(b) establish criteria for certifying and recertifying a seminar provider; and
(c) establish guidelines for the manner in which an instructor provides an alcohol
education and training seminar.
(6) A seminar provider shall:
(a) obtain recertification by the division every three years;
(b) ensure that an instructor used by the seminar provider:
(i) follows the curriculum established under this section; and
(ii) conducts an alcohol training and education seminar in accordance with the
guidelines established by rule;
(c) ensure that any information provided by the seminar provider or instructor of a
seminar provider is consistent with:
(i) the curriculum established under this section; and
(ii) this section;
(d) provide the division with the names of all persons who complete an alcohol training
and education seminar provided by the seminar provider;
(e) (i) collect a fee for each person attending an alcohol training and education seminar
in accordance with Subsection (2); and
(ii) forward to the division the portion of the fee that is equal to the amount described
in Subsection (4)(h); and
(f) issue a record to an individual that completes an alcohol training and education
seminar provided by the seminar provider.
(7) (a) If after a hearing conducted in accordance with Title 63G, Chapter 4,
Administrative Procedures Act, the division finds that a seminar provider violates this section
or that an instructor of the seminar provider violates this section, the division may:
(i) suspend the certification of the seminar provider for a period not to exceed 90 days;
(ii) revoke the certification of the seminar provider;
(iii) require the seminar provider to take corrective action regarding an instructor; or
(iv) prohibit the seminar provider from using an instructor until such time that the
seminar provider establishes to the satisfaction of the division that the instructor is in
compliance with Subsection (6)(b).
(b) The division may certify a seminar provider whose certification is revoked:
(i) no sooner than 90 days from the date the certification is revoked; and
(ii) if the seminar provider establishes to the satisfaction of the division that the
seminar provider will comply with this section.
Section 46. Section 
63I-2-232
 is amended to read:
63I-2-232.
Repeal dates -- Title 32B.
(1) Subsection 
32B-1-102
(7) is repealed July 1, 2022. 
[
(2) Subsection 
32B-1-102
(33) (a)(i)(B), the language that states
"
32B-6-205
(12)(b)(ii), 
32B-6-305
(12)(b)(ii)," and ", or 
32B-6-905
(12)(b)(ii)" is repealed July
1, 2022.
]
[
(3) Subsection 
32B-1-102
(114)(b), the language that states "
32B-6-205
(12)(b)(ii),
32B-6-305
(12)(b)(ii)," and ", or 
32B-6-905
(12)(b)(ii)" is repealed July 1, 2022.
]
(2) Subsection 
32B-1-407
(3)(d) is repealed July 1, 2022.
[
(4)
] 
(3)
 Subsection 
32B-1-604
(4) is repealed June 1, 2018.
[
(5)
] 
(4)
 Subsections 
32B-6-202
(3) and (4) are repealed July 1, 2022.
[
(6)
] 
(5)
 Section 
32B-6-205
 is repealed July 1, 2022.
[
(7)
] 
(6)
 Subsection 
32B-6-205.2
[
(17)
]
(15)
 is repealed July 1, 2022.
[
(8)
] 
(7)
 Section 
32B-6-205.3
 is repealed July 1, 2022.
[
(9)
] 
(8)
 Subsections 
32B-6-302
(3) and (4) are repealed July 1, 2022.
[
(10)
] 
(9)
 Section 
32B-6-305
 is repealed July 1, 2022.
[
(11)
] 
(10)
 Subsection 
32B-6-305.2
[
(17)
]
(15)
 is repealed July 1, 2022.
[
(12)
] 
(11)
 Section 
32B-6-305.3
 is repealed July 1, 2022.
[
(13)
] 
(12)
 Section 
32B-6-404.1
 is repealed July 1, 2022.
[
(14)
] 
(13)
 Section 
32B-6-409
 is repealed July 1, 2022.
(14) Section 
32B-6-605.1
 is repealed July 1, 2019.
(15) Subsection 
32B-6-703
(2)(e)(iv) is repealed July 1, 2022.
(16) Subsections 
32B-6-902
(1)(c), (1)(d), and (2) are repealed July 1, 2022.
(17) Section 
32B-6-905
 is repealed July 1, 2022.
(18) Subsection 
32B-6-905.1
[
(17)
]
(16)
 is repealed July 1, 2022.
(19) Section 
32B-6-905.2
 is repealed July 1, 2022.
(20) Section 
32B-7-303
 is repealed March 1, 2019.
(21) Section 
32B-7-304
 is repealed March 1, 2019.
(22) Subsection 
32B-8-402
(1)(b) is repealed July 1, 2022.